cp09-08-20G
Hutchinson City Center
111 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, September 8, 2020
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, September 8, 2020, at 4:00 p.m. in the Council Chambers at the Hutchinson City
Center, I I I Hassan Street SE, Hutchinson, Minnesota for the following purpose:
• REVIEW OF 2021 PRELIMINARY BUDGET AND TAX LEVY
DATED: September 3, 2020
POSTED: City Center
Matthew Jaunich, inistrator
HUTCHINSON CITY COUNCIL
MEETING AGENDA
TUESDAY, SEPTEMBER 8, 2020
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 — New Journey UCC
(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 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
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 ifhe will be acceptingpublic comments during the agenda item ifnot apublic hearing. Ifyou have
a question, concern or comment, please ask to e recognized by the mayor— state your name and address for the record. Please
keep comments under 5 minutes. Individuals wishing to speakfor 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 25, 2020
(b) Budget Workshop Meeting of August 25, 2020
CONSENT AGENDA
(The items listedfor 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
(a) Consideration for Approval of Resolution No. 15207 — Resolution to Sell at Auction Surplus
Property (2004 Ford Explorer)
(b) Consideration for Approval of Purchasing Replacement Portable Radios and Headsets
(c) Claims, Appropriations and Contract Payments
PUBLIC HEARINGS — 6:00 P.M. - NONE
COMMUNICATIONS RE UESTS AND PETITIONS
(T hepurpose oj this portion oj the agenda is to provide the oun— with information necessary to craft wise policy.
Includes items like monthly or annual reports and communications from other entities.)
8. DISCUSSION ON NEW PROPOSED RATE STRUCTURE FOR HUTCHINSON UTILITIES
COMMISSION
CITY COUNCIL AGENDA September 8, 2020
UNFINISHED BUSINESS
NEW BUSINESS
9. APPROVE/DENY RESOLUTION NO. 15206 — RESOLUTION ACCEPTING BID AND
AWARDING CONTRACT FOR SOUTH CENTRAL DRAINAGE ARE IMPROVEMENTS PHASE
2 PROJECT (LETTING NO. 3, PROJECT NO. 20-3)
10. APPROVE/DENY PURCHASE OF "SLAPSHOT" SCULPTURE
GOVERNANCE
(T epurpose o t is portion of the agenda is to deal with organizational development issues, includingpolicies,
performances, and other matters that manage the logistics of the organization. May include monitoring reports,
policy development and governance process items)
11. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) Hutchinson EDA Board Minutes from July 22, 2020
1VHSCELLANEOUS
12. STAFF UPDATES
13. COUNCIL/MAYOR UPDATE
ADJOURNMENT
2
HUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, AUGUST 25, 2020
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)
CALL MEETING TO ORDER — 5:30 P.M.
Mayor Gary Forcier called the meeting to order. Members present were Steve Cook, Chad
Czmowski, Mary Christensen and Dave Sebesta. Members were present via electronic means.
Others present in the Council Chambers were Matt Jaunich, City Administrator, Marc Sebora, City
Attorney and Kent Exner, City Engineer
(a) Approve the Council agenda and any agenda additions and/or corrections
Motion by Christensen, second by Czmowski, to approve agenda as presented. Roll call vote was
taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion
carried unanimously
2. INVOCATION — The invocation was dispensed due to lack of a pastor.
(The invocation is a voluntary expression oftheprivate citizen, to andfor the City Council, and is not intended to affiliate 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
(a) Resolution No. 15202 — Resolution Accepting $100.00 Donation from Judy & Michael
Bragelman to the Hutchinson Police Department towards the Law Enforcement Memorial Park
Fund
Motion by Czmowski, second by Forcier, to approve Resolution No. 15202. Roll call vote was
taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. 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 ifhe will be acceptingpublic comments during the agenda item ifnot apublic hearing. Ifyou 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 speakfor 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 11, 2020
Motion by Cook, second by Sebesta, to approve minutes as presented. Roll call vote was
taken: Cook — aye, Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye.
Motion carried unanimously.
CONSENT AGENDA
(The items listedjor 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)
CITY CO UNCIL MINUTES August 25, 2020
7. APPROVAL OF CONSENT AGENDA
(a) Consideration for Approval of 2020 CARES Act Grant with McLeod County
(b) Consideration for Approval of Resolution No. 15205 — Resolution Adopting Findings of Fact
and Reasons for Approval of a Site Plan Located at 225 Hwy 7 West
(c) Consideration for Approval of Improvement Project Change Orders
1. Change Order No. 6 — Letting No. 2, Project No. 19-02 (South Grade Road Corridor
Improvements)
2. Change Order No. 1 — Letting No. 4, Project No. 20-04 (Airport Area Utility Improvements)
(d) Claims, Appropriations and Contract Payments
Item 7(b) was pulled for separate action. Matt Jaunich, City Administrator, noted that a revised
Resolution has been distributed as there was a typographical error in the Resolution that was in
the Council packet.
Motion by Czmowski, second by Christensen, to approve consent agenda with the exception of
Item 7(b). Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen —
aye; Forcier — aye. Motion carried unanimously.
Item 7(b) had further discussion. Council Member Cook noted that the plans indicate that there
is going to be a fence installed abutting the residential areas that is proposed at six feet and by
ordinance he thought it was to be eight feet. Dan Jochum, Planning Director, clarified that the
fence is to be eight feet in height and it will be. Council Member Cook also spoke about the
loading area located on the northeast side and voiced some concerns with the amount of truck
traffic backing up to the loading area. Mr. Jochum noted that trucks will be making deliveries
approximately once or twice a week to unload in that area and a few smaller trucks on a weekly
basis that deliver food items. Mr. Jochum noted that the typographical error was an address that
has been corrected.
Motion by Cook, second by Sebesta, to approve Item 7(b). Roll call vote was taken: Cook —
aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried
unanimously.
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.)
UNFINISHED BUSINESS
NEW BUSINESS
APPROVE/DENY PROPOSAL FROM CONTEGRITY GROUP FOR CONSTRUCTION
MANAGEMENT SERVICES FOR NEW POLICE FACILITY
2
CITY CO UNCIL MINUTES August 25, 2020
Matt Jaunich, City Administrator, spoke before the Council. Mr. Jaunich noted that, as has been
discussed, it is being proposed to hire construction management services for the new police facility
project. The role of the construction manager is to assist the City from project inception, including
cost estimating and analysis during the design phase, through actual construction and final warranty
closeout. The construction manager will work closely with the architect/engineer and City staff.
Staff conducted five interviews with construction management firms from throughout Minnesota
and it was the consensus of the panel was to recommend that Contegrity Group be hired as the
construction manager. The Contegrity Group comes highly recommended by the McLeod County
Board having worked on their jail project and their current efforts on the government center.
Council Member Cook spoke about the proposed fees and many are fixed, however the construction
management fee is estimated. He proposed that fee having a not to exceed limit. Mr. Jaunich
explained that the construction management fee is based on estimated construction costs and since
that could fluctuate it may be difficult to set a not to exceed figure.
Motion by Cook, second by Forcier, to approve proposal from The Contegrity Group for
construction management services for the next phase of design/build on the new police station.
Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye;
Forcier — aye. Motion carried unanimously.
9. APPROVE/DENY PROPOSAL FROM WOLD ARCHITECTS FOR NEXT PHASE OF DESIGN ON
NEW POLICE FACILITY
Matt Jaunich, City Administrator, noted that staff is ready to move forward with design and
construction efforts on the new police station. Therefore, staff is recommending that the City
Council continue to work with the Wold Architect as the architect/engineer on the project. The
proposal from Wold on providing architectural and engineering services from design through
construction is $417,000 plus reimbursable expenses estimated to be around $15,000.
Motion by Christensen, second by Czmowski, to approve proposal from Wold Architects for the
next phase of design on new police station. Roll call vote was taken: Cook — aye; Czmowski —
aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously.
10. APPROVE/DENY RESOLUTION 15204 — ADOPTING CITY OF HUTCHINSON' S LOGO,
TAGLINE AND USAGE STANDARDS
Matt Jaunich, City Administrator, explained that back in August of 2019, the City Council hired
Chandlerthinks to conduct a marketing and branding study for the City. Work began in September
2019 and recently concluded with their final report that was received by the City in late July of
2020. Mr. Jaunich provided a short presentation on the proposed new logo, tagline and usage
standards. The proposed official tagline for the City is "A City on Purpose". The Resolution
includes a graphic of the logo and the usage standards. Council Members Christensen and Cook
were on the marketing/branding committee and were involved in the development/selection of the
logo, tagline and usage standards.
Motion by Cook, second by Czmowski, to approve Resolution No. 15204. Roll call vote was
CITY CO UNCIL MINUTES August 25, 2020
taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion
carried unanimously.
11. APPROVE/DENY SETTING COUNCIL WORKSHOP FOR SEPTEMBER 22, 2020, AT 4:30 P.M.
FOR ANNUAL UPDATE FROM COALITION OF GREATER MINNESOTA CITIES
Motion by Czmowski, second by Sebesta, to approve setting Council workshop for September 22,
2020, at 4:30 p.m. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye;
Christensen — aye; Forcier — aye. Motion carried unanimously.
GOVERNANCE
(T epurpose o t is portion of the agenda is to deal with organizational development issues, includingpolicies,
performances, and other matters that manage the logistics of the organization. May include monitoring reports,
policy development and governance process items)
12. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
�a) Hutchinson Utilities Commission Minutes from June 24, 2020
b) Hutchinson Housing & Redevelopment Authority Annual Meeting Minutes from August 20,
2019
(c) Hutchinson Housing & Redevelopment Authority Board Meeting Minutes from July 21, 2020
�d) Tall Grass Enforcement Report for June/July 2020
e) Planning Commission Minutes from June 16, 2020
(f) City of Hutchinson Financial Report and Investment Report for July 2020
MISCELLANEOUS
13. STAFF UPDATES
14. COUNCIL/MAYOR UPDATE
Steve Cook — Council Member Cook commented that South Grade Road is looking very nice and
the start to the side streets are looking good as well. He asked that when work begins on the streets
on the east side of the Rec Center, that ash trees are removed as part of the diversification program.
Council Member Cook also mentioned that gravel had been brought down to the South Grade
Road bridge where people fish to level off the area by the stairs. He noted that that was much
appreciated and asked if perhaps more gravel could be placed in other spots in the area. He
suggested that perhaps a plan be put together that could be implemented next year. Matt Jaunich
noted he could speak with the parks department on this matter as it was identified in the parks
master plan to incorporate more fishing opportunities throughout the city. Council Member
commented that the resurfacing of the Hutchinson Mall parking lot looks great and he suggested
that perhaps a thank you letter be sent to them.
Mary Christensen — Council Member Christensen commented that many individuals have
approached her about the City considering putting in a splash pad and she would like staff to review
the possibility and the costs associated with it.
Chad Czmowski — Council Member Czmowski also commented on the South Grade Road work
that has been completed and what a great improvement it is. He also inquired whether or not any
pedestrian crossing lights will be installed on the new crosswalk that was put in on Hwy 15 South at
Echo Drive as the site lines in the area are poor. Mr. Jaunich noted that he does not believe that
pedestrian lights are in the plan, but that perhaps it can be addressed or requested with MnDOT.
Council Member Czmowski mentioned that he also liked the idea of a splash pad and would
suggest looking at spaces on the north side of the river.
Gary Forcier — Mayor Forcier commented that the improvements to the Rec Center look good. He
also reiterated that a splash pad should be researched and considered.
.19
CITY CO UNCIL MINUTES August 25, 2020
ADJOURNMENT
Motion by Czmowski, second by Sebesta, to adjourn at 6:30 p.m. Roll call vote was taken:
Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried
unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator
5
HUTCHINSON CITY COUNCIL
REVIEW OF 2021 PRELIMINARY CAPITAL IMPROVEMENT PLAN
MINUTES
TUESDAY, AUGUST 25, 2020, AT 4:00 PM
CITY CENTER — COUNCIL CHAMBERS
1. Call to Order
Mayor Forcier called the workshop to order at 4:00 p.m. Members present included Mary
Christensen, Steve Cook, Dave Sebesta and Chad Czmowski. Others present were Matt Jaunich,
City Administrator and other city directors.
REVIEW OF 2021 PRELIMINARY CAPITAL IMPROVEMENT PLAN
2. 2021 Preliminary Capital Improvement Plan
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich reviewed the
purpose of a capital improvement plan and the planning that goes into it. A CIP is a document
that realistically projects city needs, outlines means by which those needs can be met and
provides prioritization of those needs. The planning process provides city staff and Council with
a framework to make decisions regarding current and future city needs considering the city's
financial capability. The CIP commits the City to a long term capital plan that ensures that
expenditures can be made to add or replace capital items when needed, without significant
fluctuations in the property tax levy. Capital planning enables the City to maintain a stable
property tax rate, prevent peaks and valleys in its debt retirement program and establish and
thereafter improve its credit rating. The CIP establishes a comprehensive development program
that is used to maximize outside revenue sources and effectively plan for the growth and
maintenance of the city's infrastructure. The plan should be used as a goal, priority and vision -
setting tool. Mr. Jaunich also reviewed how the CIP Plan is built which includes individual City
Council goals and collective Council goals; citizens/business/user feedback to elected officials
(needs, wants, desires of the community); City staff long-term maintenance and replacement
schedules; and state/federal mandates.
Mr. Jaunich began an overview of the five year capital plan document. The proposed plan is
estimated at $57.17 million. The Plan is approximately $2.1 million larger than last year's five-
year plan. The plan has an average CIP cost of $11.4 million. 2021's $14.95 million CIP cost
currently accounts for approximately 30-35% of all budgeted expenses. For comparison
purposes, this year's (2020) general fund budget is $13.45 million. This plan includes costs for a
new police station in 2021/2022.
Mr. Jaunich reviewed that the plan is divided into infrastructure at $18.65 million; Park & Rec at
$3.74 million; Enterprise Funds at $16.86 million; Public Works at $5.92 million; Public Safety
at $10.89 million and General Government at $1.11 million. The make-up of the CIP includes:
New Debt: $18.48 million (amount of money that we need to borrow to pay for capital projects);
Aid/Grants (state aid, federal/state grants, bridge funds, donations): $5.58 million; Enterprise
Funds (Creekside, Liquor Store, Refuse, Water, Sewer, Wastewater, Stormwater): $17.59
million; Taxes (money from our tax levy that gets designated towards capital projects): $11.30
million; Special Assessments (direct costs that will be assigned to property owners adjacent to
projects): $4.09 million; Special Funds/Reserves (rural fire department, cooperative agreements):
$129,392. CIP funding sources for general fund projects include the General Fund from the
Facility Improvements (Capital Projects Fund and $750,000 of LGA is dedicated annually); Fleet
& Equipment (Equipment Replacement Fund, General Fund — annual transfer of $275,000,
current funding is not adequate for "small" and "heavy" fleet needs, additional funding source of
about $327,000/year is needed); and Other Capital Needs — capital expenditures that are not
facility or fleet related (department budgets — tax levy, grants or donations, and other city
funding). Enterprise fund projects are covered by cash flow from operations driven by user
revenue and cash reserves — annually budget approximately 75% of annual net cash flow for
capital expenditures. Debt service payments are funded by revenue from operations.
Infrastructure improvements debt are covered by GO special assessment improvements bonds,
special assessment, municipal state aid for streets, grants, enterprise fund contributions and other
city funding from Capital Projects and Community Improvement. Capital project costs and
funding is reviewed by the Resource Allocation Committee. The Capital Projects Fund funding
sources come from LGA, bonding dollars and grants. The use of these funds are for general fund
capital improvements included in the Facility Plan, miscellaneous infrastructure maintenance
such as trails, sidewalks, parking lots, street lights, sealcoating, etc., and other projects approved
by the City Council. The 2019 year-end unreserved cash balance is $983,219 from this fund.
The Community Improvement Fund funding sources come from retired debt service funds and
donations. The use of these funds are for City Council approved projects and Public Arts
Commission & other public arts projects. The 2019 year-end unreserved cash balance is
$2,256,033 from this fund. The Public Sites Fund funding sources come from park dedication
fees, donations, grants and rent on agricultural land. The use of these funds are for parkland
improvements, tree development, arts, and City Council approved projects. The 2019 year-end
unreserved cash balance is $167,225 from this fund.
Mr. Jaunich noted where the proposed 2021 CIP monies are going to. They include $2.75 million
for infrastructure (Harrington Street SW, Merrill Street SW, Clinton Avenue SW, Church Street
SW, Lyndale Avenue SW, LED light retrofits and other miscellaneous streets); $1.16 million for
Park & Rec (vehicles, East Rink roof, playgrounds); $5.82 million for Enterprise Funds
(Creekside facility/equipment, water/sewer/wastewater/storm water improvements and
equipment); $525,100 for Public Works (interior shop painting, cemetery and street
vehicles/equipment); $4.51 million for Public Safety (new police station, police/fire vehicles,
radio replacements); $177,675 for General Government (Dakota Trail and general facility/IT
upgrades). Mr. Jaunich then reviewed where the proposed 2021 CIP monies are coming from.
They include $3.98 million from New Debt (amount of money that we are planning to borrow to
pay for capital projects next year); $89,600 from Aid/Grants; $5.91 million from Enterprise
Funds; $4.37 million from Taxes (money from our tax levy that is helping to pay for capital
projects next year); and $516,920 from Special Assessments (direct costs that will be assigned to
property owners adjacent to projects).
Mr. Jaunich reviewed the five components of the Plan which include the fleet committee,
facilities committee, Creekside, Resource Allocation Committee and General. Mr. Jaunich
provided an overview of fleet. With regard to light duty fleet there are currently 89 pieces of
light duty equipment such as cars, pickups, skid loaders, etc. Currently $275,000 of CIP funds
are allocated annually for light duty fleet, funded by the general fund. The unreserved fund
balance at the end of 2019 acquisitions is $706,000. In 2020, seven vehicles/equipment have
been recommended for replacement at an estimated gross cost of $228,700. With regard to heavy
duty fleet, the City currently has 21 pieces of heavy duty equipment which are made up of fire
apparatuses, snow equipment, frontend loaders, etc. In 2020, a Zamboni and wheel loader have
been recommended for replacement at an estimated gross cost of $348,891, less a $60,000
donation received for the Zamboni. The City took a significant step in meeting its demand of this
in 2016 with bonding for several large pieces of equipment with a 5-year debt expiring February
1, 2022 and potential capacity to add new debt in 2021 with first principal repayment February 1,
2023. The light duty and heavy duty fleet program is still currently not sustainable with this plan.
The current plan has an annual shortage of roughly $327,000. The Fleet Committee is looking at
bonding/borrowing for future heavy duty fleet and looking at making policy changes in 2020 with
more focus on the Vehicle Condition Index and less focus on expected life, although service is a
major component of the VCI.
Mr. Jaunich provided an update on the facility committee. Overall, the facility planning
concept/funding model with a facility manager has been working well. Construction costs were
increasing, but staff believes we are entering a competitive bidding season. A small project
building repair fund has been established with $50,000 per year set aside to address smaller
facility items such as lighting upgrades, small roof projects, tuck pointing/joint repair, etc.
Facility Committee staff continue to assess condition ratings and develop a project list based on
needs.
Mr. Jaunich reviewed projects that have been completed in 2020 or are near completion. Those
projects include a new roof at the recreation center, City Center ADA sidewalk improvements
and access controls and COVID-19 related improvements. Mr. Jaunich then reviewed a draft
project list for 2021-2025.
Mr. Jaunich also reviewed the 5 Year CIP for both the compost and refuse funds which is just
over $3.7 million. The Compost Fund is about $600,000 cheaper than the previous year's five
year CIP. The walking floor trailers have been removed and the screener replacement was placed
in 2020. No major changes to the Refuse Fund from last year's 5-Year CIP. There is currently
an analysis being completed by a consultant that will help lead discussions for future expenses
and the CIP. This analysis will look at a potentially a new way to run the system and a review of
the source separated organic material curbside program. In addition, staff is planning to renew
the garbage contract in October.
Public Works projects included in the 2021 plan are: Pavement Management Program which
includes Clinton Avenue SW and Lyndale Avenue SW (Harrington to Merrill), Merrill Street
SW/Church Street/Harrington Street SW (South Grade Road to Linden), and Keith Street (South
Grade Road to Neal Avenue); LED Streetlight Retrofits; South Central Storm work; Southfork
Storm Pond; Preliminary Treatment Redesign & EQ System at Wastewater; additional upgrades
to water and wastewater facilities; facility painting and vehicle and equipment replacements. Mr.
Jaunich then noted Public Works CIP highlights slated for 2021-2025.
Mr. Jaunich reviewed project funding limitations/concerns. These include $1.9 million bonding
target limitations; dedicated street sealcoating funding at $125,000/year; infrastructure
maintenance needs at $275,000/year; construction costs; utility funds capacity; municipal state &
federal aid utilization; environmental & infrastructure grant possibilities. Other items to keep in
consideration are long-term funding needs, funding plan for the new police station, funding of
infrastructure improvements, the Compost fund study; funding of water/wastewater/storm sewer
and the impact on rate study; LGA allocation between the general fund and CIP and other
projects/Council needs.
Mr. Jaunich also provided an updated 2020 financial forecast and an update on the current budget
situation. The April projected deficit of $212,000 has turned into a projected surplus of
approximately $157,000 due to approximately $150,000 of CARES funding allocated to the
general fund, Liquor transfer expected to be approximately $100,000 higher, building permit fees
expected to be approximately $26,000 higher, some recreational programming came back online
increasing revenue projections, and reduced employment costs by delaying hirings and
eliminating seasonal hires. Current revenues are expected to be under budget by about $658,000
but will be offset with expenditures being under budget by about $815,000. So far sales tax
revenue hasn't really been affected, but it is still early and a lot can happen between now and
December 31st. Mr. Jaunich noted that the state situation is likely to have more of an impact than
the City's local one and the potential impact on LGA later this year and more likely next year.
3. Adjournment
Motion by Christensen, second by Sebesta, to adjourn the workshop at 5:10 p.m. Roll call vote:
Cook — aye; Christensen — aye; Sebesta — aye; Czmowski — aye; Forcier — aye. Motion carried
unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator
HUTCHINSON CITY COUNCIL Ci=y�f
Request for Board Action 79 =-W
Agenda Item: Approve disposal of surplus equipment by auction
Department: PW/Engineering
LICENSE SECTION
Meeting Date: 9/8/2020
Application Complete N/A
Contact: John Olson
Agenda Item Type:
Presenter: John Olson
Reviewed by Staff ❑
consent Agenda
Time Requested (Minutes): 0
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
Public Works has one piece of surplus equipment:
ENGR-817-SUV
2004 Ford Explorer SUV, VIN: 1 FMZU72K44UB53817 Lic: 904-424
This vehicle was replaced in 2020.
The intent is to offer this unit for sale at an upcoming Fleet & Government Services auction, or other auction
conducted by Fahey. Fahey will be provided with information concerning the equipments' condition.
Proceeds from any sale of the vehicle would be deposited into the Vehicle -Equipment Replacement Fund.
BOARD ACTION REQUESTED:
Declare ENGR-817-SUV as surplus equipment for sale at auction, approval of Resolution
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:
RESOLUTION NO. 15207
RESOLUTION TO SELL AT AUCTION
SURPLUSPROPERTY
WHEREAS, the Hutchinson Public Works Department has accumulated surplus property; and
WHEREAS, the Hutchinson City Code provides pursuant, to Section 91, Subdivision 3,
Paragraph C, for the sale at auction of surplus City property; and
WHEREAS, the Public Works Department has determined that it is in possession of surplus
property.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF HUTCHINSON, MINNESOTA:
That the following surplus City property be sold at auction and proceeds from the sale be
credited to the appropriate account:
1. ENGR-817-SUV
2004 Ford Explorer SUV
VIN: 1 FMZU72K44UB53817
Adopted by the City Council this 8 h day of September, 2020.
Gary Forcier, Mayor
ATTEST:
Matt Jaunich, City Administrator
HUTCHINSON CITY COUNCIL
Ci=y�f
Request for Board Action
79 =-W
Agenda Item: Capital Improvement Project : Purchase Portable Radios and Headsets.
Department: Police
LICENSE SECTION
Meeting Date: 9/8/2020
Application Complete N/A
Contact: Thomas Gifferson
Agenda Item Type:
Presenter: Thomas Gifferson
Reviewed by Staff ✓❑
Consent Agenda
Time Requested (Minutes): 2
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
See attached
BOARD ACTION REQUESTED:
Authorization to purchase replacement portable radios and accessories as part of CIP.
Fiscal Impact: $ 198,401.00 Funding Source: CIP
FTE Impact: Budget Change: Yes
Included in current budget: Yes
PROJECT SECTION:
Total Project Cost: $ 198,401.00
Total City Cost: $ 198,401.00 Funding Source: CIP
Remaining Cost: $ 0.00 Funding Source:
This is a request to authorize the replacement of the Police Department's current portable radios
(Motorola XTS2500) with an upgraded version (Motorola APX6000). The current Motorola portables are
no longer supported by Motorola. This project has been included in the City's Capital Improvement
Plan.
The current radios in use were purchased originally through grant funds from the State of Minnesota
when the ARMER project was originally established in this region. At that time there were two forms of
encryption available to us. ADP encryption which is a Motorola product and was included in the radio at
no cost. The second available encryption was DES encryption. The cost to include that encryption was
approximately $750.00 per radio. The decision at the time was to not purchase additional encryption to
keep the cost of the project down. However, because of that decision we did not, nor did any radio in
McLeod County, have access to State of MN encrypted resources. This poses a problem when we assist
other state agencies and more importantly when other agencies from within the state come to assist us
when it may be needed. Therefore, it makes sense to include those resources now, to improve our
interoperability with other agencies and jurisdictions within the state.
The second part of this project is to purchase communication headsets for the tactical team that are
compatible with the new portable radios. This request is to purchase the headsets from Atlantic Signal.
The cost of the Atlantic Signal headsets is approximately twice the cost of the headsets from Advantage
Police Supply. However, they have greater functionality in regards to safety and communication than
those from Advantage. Therefore the request is for the more expensive option. The two quotes are the
closest we could get to comparing like units, even though the Atlantic Signal is a superior product.
This project was originally budgeted at a cost of 160,000.00; however, some recent information
regarding the State of Minnesota's encrypted resources has become available that no longer makes the
projected cost feasible. When this project was originally budgeted, the plan was to purchase APX 4000
radios with ADP and DES encryption. It has recently come to light that the State of MN is planning on
moving their encrypted resources from DES encryption to AES encryption, a far more robust form of
encryption. Unfortunately the APX 4000 does not have the capability of being programmed with both
DES encryption (the current state standard) and AES encryption (the future state standard). Therefore,
it is necessary to purchase the APX6000 to enable both forms of encryption to be programmed. The
State does not have a firm date for the transition to AES but an estimate of 3yrs was given. The
additional $40,000.00 cost of the project is a direct result of having to purchase the more expensive
radio to ensure we neither buy a radio that is obsolete in three years or buy a radio that we may not be
able to use to its full potential for at least 3 years.
The total cost of the project as quoted is $196,401.20 with an approximate additional $2,000.00 in set-
up fees from our vendor.
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATE FROM 8/20/20 - 9/8/20
Check Date
------------------
08/20/2020
Check
------------
212146
Vendor Name
---------------------------------------------------------
LOGIS
Description
--------------------------------------------------------------------------------
APPLSUP-GIS BASE & NETWORK SERVICES
Amount
-------------------------
9,427.55
08/20/2020
212147
CITIZENS BANK & TRUST CO
HUTCHCOBBLE TIF NOTE PAYMENT
1,329.53
08/28/2020
EFT1285
EFTPS
Payroll 8/9/20 - 8/22/20
66,362.64
08/28/2020
EFT1286
Child Support
Payroll 8/9/20 - 8/22/20
577.29
08/28/2020
EFT1287
MN Dept of Revenue
Payroll 8/9/20 - 8/22/20
12,757.35
08/28/2020
EFT1288
Provident Life
Payroll 8/9/20 - 8/22/20
612.34
08/28/2020
EFT1289
PERA
Payroll 8/9/20 - 8/22/20
53,313.12
08/28/2020
EFT1290
TASC-Flex
Payroll 8/9/20 - 8/22/20
1,491.70
08/28/2020
EFT1291
TASC-H S A
Payroll 8/9/20 - 8/22/20
13,574.13
08/28/2020
EFT1292
ICMA
Payroll 8/9/20 - 8/22/20
3,308.52
08/28/2020
EFT1293
VOYA
Payroll 8/9/20 - 8/22/20
330.00
08/28/2020
EFT1294
MNDCP
Payroll 8/9/20 - 8/22/20
350.00
08/28/2020
212148
MNPEA
Payroll 8/9/20 - 8/22/20
585.00
08/28/2020
212149
Unum Life Insurance
Payroll 8/9/20 - 8/22/20
1,254.05
08/28/2020
212150
LELS Union
Payroll 8/9/20 - 8/22/20
310.00
08/28/2020
212151
HART
Payroll 8/9/20 - 8/22/20
602.54
08/27/2020
212152
JAY MALONE MOTORS
PURCHASE OF (2) 2020 DODGE RAMS 1500- PARKS
37,966.00
09/08/2020
212153
A.M. LEONARD INC
REPAIR& MAINT SUPPLIES -STREETS
600.28
09/08/2020
212154
ACE HARDWARE- 1315
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
618.80
09/08/2020
212155
ACE HARDWARE - 1790
STRIPING PAINT & AIR DUSTERS- FIRE DEPT
38.95
09/08/2020
212156
ALL AM ERICA PRESSURE WASHER MFG
EQUIPMENT PARTS- MULTIPLE DEPTS
269.50
09/08/2020
212157
ALLIED ELECTRONICS INC
DC CONTROL, FUSE, SURGE SUPPRESSOR, FAN - WWTP
1,787.13
09/08/2020
212158
AMERICAN BOTTLING CO
COST OF GOODS SOLD - LIQUOR HUTCH
105.60
09/08/2020
212159
AMERIPRIDE SERVICES
8/24 CLEANING SERVICES - LIQUOR HUTCH
159.18
09/08/2020
212160
ANDERSON CHEMICAL COMPANY
SODIUM HYDROSOFITE -WATER DEPT
2,103.59
09/08/2020
212161
APX CONSTRUCTION GROUP, LLC
PAY APP #4 THRU 7/31/20 - REC CENTER
220,393.63
09/08/2020
212162
ARTHUR J GALLAGHER RISK
INSURANCE BROKER FEE 10/1- 12/31-20
3,500.00
09/08/2020
212163
ARTISAN BEER COMPANY
COST OF GOODS SOLD - LIQUOR HUTCH
384.92
09/08/2020
212164
AUTOVALUE- GLENCOE
EQUIPMENT PARTS - HATS
44.56
09/08/2020
212165
BCA
BACKGROUND CHECK FOR NEW EE - MV
33.25
09/08/2020
212166
BELLBOY CORP
COST OF GOODS SOLD - LIQUOR HUTCH
1,644.30
09/08/2020
212167
BERNICK'S
COST OF GOODS SOLD - LIQUOR HUTCH
311.56
09/08/2020
212168
BLUE VALLEY SOD
PEAT DELIVERED - COMPOST
5,400.00
09/08/2020
212169
BRAUN INTERTEC CORP
TH 15 CONSULTING FEES: THRU 8/21/20
1,170.50
09/08/2020
212170
BREAKTHRU BEVERAGE
COST OF GOODS SOLD - LIQUOR HUTCH
18,506.63
09/08/2020
212171
C & L DISTRIBUTING
COST OF GOODS SOLD - LIQUOR HUTCH
78,523.28
09/08/2020
212172
CANNON RIVER WINERY
COST OF GOODS SOLD - LIQUOR HUTCH
570.00
09/08/2020
212173
CARAHSOFT TECHNOLOGY CORP
LINKEDIN LEARNING - IT
2,070.00
09/08/2020
212174
CARD SERVICES
MISC SUPPLIES - POLICE
7.94
09/08/2020
212175
CARLOS CREEK WINERY
COST OF GOODS SOLD - LIQUOR HUTCH
297.00
09/08/2020
212176
CENTRAL HYDRAULICS
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
103.57
09/08/2020
212177
CENTRAL MCGOWAN
MISC OPERATING SUPPLIES - HATS
733.91
09/08/2020
212178
CHEMISOLV CORP
FERRIC CHLORIDE -WWTP
5,134.50
09/08/2020
212179
CINTAS CORPORATION
CLEANING SUPPLIES & SERVICE - MULTIPLE DEPTS
200.67
09/08/2020
212180
CITY OF SOUTH HAVEN
WATERLESS FIRE HYDRANT HEADS - WATER
100.00
09/08/2020
212181
CLAY COYOTE - MORGAN BAUM
SIGN & AWNING GRANT - EDA
1,000.00
09/08/2020
212182
COBBLESTONE HOTEL & SUITES
PRO -RATED REFUND FOR LIQUOR LICENSE
212.50
09/08/2020
212183
COKER COMPOSTING AND CONSULTING
GROWTH OPTIONS STUDY - REFUSE
3,770.00
09/08/2020
212184
CORNER POST EROSION CONTROL
DE -THATCH & INTER -SEED BOULEVARD - STREETS
200.00
09/08/2020
212185
CREEKSIDE SOILS
BITCON, COFFEE MULCH - PARKS
387.14
09/08/2020
212186
CROW RIVER OFFICIALS ASSN
UMPIRE FEES - REC
720.00
09/08/2020
212187
CROW RIVER PRESS INC
SR NEWSLETTERS -SR CENTER
93.41
09/08/2020
212188
CROW RIVER WINERY
COST OF GOODS SOLD - LIQUOR HUTCH
1,066.80
09/08/2020
212189
CRYSTEEL TRUCK EQUIP
RETROFITKIT- STREETS
179.00
09/08/2020
212190
DELL MARKETING L.P.
DELL MONITOR - IT
269.99
09/08/2020
212191
DPC INDUSTRIES INC
HYDROFLUOROSILICIC ACID - WATER
1,518.00
09/08/2020
212192
DYNA SYSTEMS
SILICONE, WASHERS -WWTP
197.00
09/08/2020
212193
E2 ELECTRICAL SERVICES INC
CONVEYOR REPAIR- REFUSE
265.81
09/08/2020
212194
ECOLAB PEST ELIMINATION
PEST CONTROL SERVICES - MULTIPLE DEPTS
232.10
09/08/2020
212195
ELK RIVER COMPOSTING INC
JUNE COMPOSTING
3,520.00
09/08/2020
212196
EMERGENCY RESPONSE SOLUTIONS LLC
ADDITIONAL COVID SUPPLIES - FIRE DEPT
1,222.23
09/08/2020
212197
FASTENAL COMPANY
REPAIR&MAINTSUPPLIES- MULTIPLEDEPTS
550.21
09/08/2020
212198
FINANCE & COMMERCE
1_31320-03 BIDS - ENGINEERING
297.06
09/08/2020
1212199
FIRST CLASS BUILDERS
UB REFUND
17.69
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATE FROM 8/20/20 - 9/8/20
Check Date
------------------
09/08/2020
Check
------------
212200
Vendor Name
---------------------------------------------------------
FLAGSHIP RECREATION
Description
--------------------------------------------------------------------------------
TRASH RECEPTACLES FOR MAIN STREET PROJ
Amount
-------------------------
17,667.00
09/08/2020
212201
FORBES AUTO VALUE
TIRE REPAIR -WATER
40.00
09/08/2020
212202
FORESTEDGE WINERY
COST OF GOODS SOLD - LIQUOR HUTCH
378.00
09/08/2020
212203
GALLS LLC
UNIFORM SUPPLIES - FIRE DEPT
130.54
09/08/2020
212204
GITCH GEAR LLC
COST OF GOODS SOLD - LIQUOR HUTCH
408.00
09/08/2020
212205
GRAINGER
VARIOUS PARTS & SUPPLIES - WWTP
1,667.05
09/08/2020
212206
GREEN EARTH LAWN CARE INC
RESIDENTIAL LAWN MOWING -STORM WATER
195.00
09/08/2020
212207
HACH COMPANY
COLORIMETER - WATER
1,601.91
09/08/2020
212208
HANSON & VASEK CONSTRUCTION
2020 CONCRETE REPAIRS -STREETS
6,770.00
09/08/2020
212209
HARPER BROOMS
BRUSHES, HANDLES- HATS
494.50
09/08/2020
212210
HAWKINS INC
SODIUM HYDROXIDE -WATER
3,889.25
09/08/2020
212211
HENDERSON, TYLER
UB REFUND
21.78
09/08/2020
212212
HILLYARD / HUTCHINSON
REPAIR, CLEANING & MAINT SUPPLIES - MULTIPLE DEPTS
1,331.84
09/08/2020
212213
HJERPE CONTRACTING
VARIOUS EMERGENCY REPAIRS- MULTIPLE DEPTS
20,184.50
09/08/2020
212214
HUTCH AUTO BODY
2009 F350: REPAIR BOX- PARKS
2,542.44
09/08/2020
212215
HUTCHINSON CHAMBER & TOURISM
JULY 2020 LODGING TAX
7,488.75
09/08/2020
212216
HUTCHINSON LEADER
24 MONTH SUBSCRIPTION - FIRE
105.00
09/08/2020
212217
HUTCHINSON WHOLESALE #1550
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
382.80
09/08/2020
212218
HUTCHINSON WHOLESALE #1551
EQUIPMENT PARTS -COMPOST
127.36
09/08/2020
212219
HUTCHINSON WHOLESALE #1552
GOAL POST SUPPLIES - PARKS
172.48
09/08/2020
212220
HUTCHINSON WHOLESALE #2520
COVID-19 SUPPLIES HAND SANITIZER SPRAY -FIRE DEPT
17.97
09/08/2020
212221
HYDRO KLEAN LLC
PREP FOR SEWER REPAIR, CLEAN & TELEVISE - WWTP
3,260.00
09/08/2020
212222
J & B PALLET, LLC
PALLETS - COMPOST
4,984.00
09/08/2020
212223
JEFFERSON FIRE & SAFETY INC
FIRE GEAR SUSPENDERS - FIRE
442.80
09/08/2020
212224
JOE'S SPORT SHOP
TROPHIES - REC
120.00
09/08/2020
212225
JOHNSON BROTHERS LIQUOR CO.
COST OF GOODS SOLD - LIQUOR HUTCH
43,470.76
09/08/2020
212226
JOHNSON CONTROLS FIRE PROTECTION LP
9/1 - 11/30-20 ALARM & DETECTION MONITORING - EV CTR
202.34
09/08/2020
212227
KAHL, DENNIS
RESIDENTIAL LAWN MOWING -STORM WATER
1,030.00
09/08/2020
212228
KELLER, MATTHEW
REIMB: SAFETY GLASSES- WWTP
100.00
09/08/2020
212229
KERI'S CLEANING & HANDYMAN SERVICES
AUGUST CLEANING - LIQUOR HUTCH
1,507.95
09/08/2020
212230
KOHLS SWEEPING SERVICE
RESTRIPED PARKING LOTS, GARAGE LINES & CURB - FIRE DEPT
295.00
09/08/2020
212231
KONRAD MATERIAL SALES, LLC
5 GALLON TACK - STREETS
615.00
09/08/2020
212232
KOSTERS, MICHAEL
REIMB: PREHIRE PHYSICAL -COMPOST
31.00
09/08/2020
212233
KRUSE, SUSAN
UB REFUND
83.70
09/08/2020
212234
KYLE A WENDLING
COST SHARE WELL SEALING - WATER
500.00
09/08/2020
212235
L & P SUPPLY CO
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
131.60
09/08/2020
212236
LANO EQUIPMENT OF NORWOOD
BOBCAT REPAIR- CEMETERY
2,539.34
09/08/2020
212237
LAUER,TAMMY
FACADE IMPROVEMENT GRANT -EDA
2,483.07
09/08/2020
212238
LEAGUE OF MN CITIES -INS TRUST
2020/2021 INSURANCE RENEWAL
15,621.00
09/08/2020
212239
LOCHER BROTHERS INC
COST OF GOODS SOLD - LIQUOR HUTCH
51,567.80
09/08/2020
212240
LYNDSY HART
REFUND FOR WATERPARK PURCHASE
42.00
09/08/2020
212241
MACQUEEN EQUIP LLC
HOSE CLAMPS - STORM WATER
186.27
09/08/2020
212242
MADDEN GALANTER HANSEN LLP
JULY LEGAL SERVICES - POLICE
153.00
09/08/2020
212243
MARSHALL CONCRETE PRODUCTS
MCP GLOSS CURE/SEAL- PARKS
179.95
09/08/2020
212244
MCLEOD COUNTY HHW
APPLIANCE RECYCLING - WWTP
10.00
09/08/2020
212245
MENARDS HUTCHINSON
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
833.89
09/08/2020
212246
MHSRC/RANGE
EVO/PIT REFRESHER HYBRID - POLICE
1,100.00
09/08/2020
212247
MIDWEST FIRE EQUIPMENT
NEW 3000 GALLON FIRE TANKER TRUCK
10,534.00
09/08/2020
212248
MIDWEST PLAYSCAPES INC.
SAFETY SURFACING - PARKS
3,700.00
09/08/2020
212249
MILLNER HERITAGE VINEYARD & WINERY
COST OF GOODS SOLD - LIQUOR HUTCH
663.60
09/08/2020
212250
MINI BIFF
RENTALS: MULTIPLE LOCATIONS
607.43
09/08/2020
212251
MINNESOTA CHIEFS OF POLICE
ENTRY TESTS - POLICE
436.00
09/08/2020
212252
MINNESOTA DEPT OF HEALTH
Q3 2020 STATE FEE - WATER CONNECTIONS
11,766.00
09/08/2020
212253
MINNESOTA DEPT OF LABOR & INDUSTRY
INSPECTIONS- MULTIPLE DEPTS
300.00
09/08/2020
212254
MINNESOTA VALLEY TESTING LAB
LAB SAMPLE TESTING - MULTIPLEDEPTS
765.60
09/08/2020
212255
MYGUY INC.
TOTAL POWER CLEANER - HATS
586.00
09/08/2020
212256
NORTH CENTRAL UTILITY
SPRING BRAKE- HATS
146.49
09/08/2020
212257
NORTHERN BUSINESS PRODUCTS
OFFICE SUPPLIES - POLICE
736.09
09/08/2020
212258
NORTHERN SAFETY & INDUSTRIAL
SAFETY TAGS - HATS
42.78
09/08/2020
212259
NORTHERN STATES SUPPLY INC
WASHERS, PAINT, LADDER, CONNECTORS - HATS
314.86
09/08/2020
212260
O'REILLYAUTO PARTS
MUSCLE MAGIC- PARKS
36.99
09/08/2020
212261
OK TIRE STORE
TIRES FOR CREEKSIDE LOADER
5,625.60
09/08/2020
212262
OLS RESTORATION, INC
2020 SIGNAL -STREETLIGHT PAINTING
8,825.00
09/08/2020
212263
PAUSTIS WINE COMPANY
COST OF GOODS SOLD - LIQUOR HUTCH
617.08
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATE FROM 8/20/20 - 9/8/20
Check Date
------------------
09/08/2020
Check
------------
212264
Vendor Name
---------------------------------------------------------
PECE RECYCLING LTC
Description
--------------------------------------------------------------------------------
PALLETS-COMPOST
Amount
-------------------------
1,258.75
09/08/2020
212265
PENMAC STAFFING SERVICES, INC.
CREEKSIDE TEMP STAFFING
1,144.95
09/08/2020
212266
PEOPLEREADY INC
CREEKSIDE TEMP STAFFING
3,276.84
09/08/2020
212267
PETERSON, PAT
REFUND: SHELTER RENTAL @ RIVERSIDE PARK
45.00
09/08/2020
212268
PHILLIPS WINE & SPIRITS
COST OF GOODS SOLD - LIQUOR HUTCH
26,060.68
09/08/2020
212269
PIONEER MANUFACTURING CO
BRITE STRIPE - PARKS
2,962.50
09/08/2020
212270
PLUNKETTS PEST CONTROL
SEPT 2020 - AUG 2021 PEST CONTROL SERVICE - LIQUOR HUTCH
709.05
09/08/2020
212271
POSTMASTER
POSTAGE - UB BILLS
1,540.00
09/08/2020
212272
PREMIUM WATERS
5 GALLONS WATER - PARKS
30.99
09/08/2020
212273
PRIEVE LAWN CARE
ROUND UP APPLICATION - LIQUOR HUTCH
80.16
09/08/2020
212274
PRO AUTO MN INC.
MULTIPLE VEHICLE OIL CHANGES
71.72
09/08/2020
212275
QT PETROLEUM ON DEMAND LLC
AIRPORT FUEL CONTROLLER REPAIR PARTS
508.32
09/08/2020
212276
QUALITY FORKLIFT SALES & SERV INC
MULTIPLE REPAIRS -COMPOST
3,003.28
09/08/2020
212277
R & R EXCAVATING
L4P20-04 PAY #1: AIRPORT AREA UTILITY EXT - STREETS
44,509.26
09/08/2020
212278
R & R EXCAVATING & RELIAFUNDS ESCR
1_21319-02 PAY #6: S GRADE RD CORR IMPRV - STREETS
109,849.18
09/08/2020
212279
RAMY TURF PRODUCTS
TURF MIX, PRO -SEEDER -STREETS
1,269.00
09/08/2020
212280
RED BULL DISTRIBUTION COMPANY, INC.
COST OF GOODS SOLD - LIQUOR HUTCH
85.00
09/08/2020
212281
REINER ENTERPRISES INC
CREEKSIDE FREIGHT MULTIPLE LOCATIONS
7,368.61
09/08/2020
212282
REVIER WELDING
COMPOST SCREENER REPAIRS
3,158.56
09/08/2020
212283
RUNNING'S SUPPLY
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
1,090.89
09/08/2020
212284
SAM'S TIRE SERVICE
NEW TIRES FOR COMPOST LOADER
933.20
09/08/2020
212285
SHERWIN WILLIAMS
PAINT- REC
26.94
09/08/2020
212286
SHORT-ELLIOT-HENDRICKSON, INC
CONSULTING SERVICES FOR VARIOUS PROJ THROUGH 7/31/20
5,981.07
09/08/2020
212287
SITEONE LANDSCAPE SUPPLY
HERBICIDE - PARKS
889.51
09/08/2020
212288
SJF MATERIAL HANDLING INC
RACKS, WIRE DECK- WWTP
1,110.35
09/08/2020
212289
SMITH, TYLER & RACHEL
UB REFUND
2.88
09/08/2020
212290
SOUTHERN WINE & SPIRITS OF MN
COST OF GOODS SOLD - LIQUOR HUTCH
30,953.75
09/08/2020
212291
SOUTHWEST CORRIDOR TRANS COALITION
2020 DUES: KENT EXNER
100.00
09/08/2020
212292
STANDARD PRINTING-N-MAILING
POSTAGE - MULTIPLE DEPTS
898.45
09/08/2020
212293
STAPLES ADVANTAGE
OFFICE SUPPLIES - MULTIPLEDEPTS
461.35
09/08/2020
212294
STREICH TRUCKING
CREEKSIDE FREIGHT MULTIPLE LOCATIONS
5,840.00
09/08/2020
212295
STREICHER'S
PANTS -POLICE
639.96
09/08/2020
212296
SUBWAY
DIRECTOR'S PICNIC
791.70
09/08/2020
212297
SUN LIFE FINANCIAL
AUGUST DENTALCLAIMES &ADMIN FEES
10,081.60
09/08/2020
212298
TASC
OCTOBER FLEX & HSA ADMIN FEES
1,497.33
09/08/2020
212299
TEK MECHANICAL
SCHEDULE 80 PVC MIP ADAPTER 1 1/2" - WWTP
14.90
09/08/2020
212300
THOMPSON, MITCHELL
REIMB: MEAL FOR TRAINING
16.56
09/08/2020
212301
TRAVIS, GENORA & GARY
UB REFUND
33.00
09/08/2020
212302
UNITED FARMERS COOP
FUEL- HATS
9,859.87
09/08/2020
212303
VALLEY SALES OF HUTCHINSON
2014 EQUINOX: INSTALL ACCESSORIES - POLICE
121.47
09/08/2020
212304
VIK, BRANDON
REIMB: TRAINING EXPENSES
854.49
09/08/2020
212305
VIKING BEER
COST OF GOODS SOLD - LIQUOR HUTCH
21,371.00
09/08/2020
212306
VIKING COCA COLA
COST OF GOODS SOLD - LIQUOR HUTCH
483.65
09/08/2020
212307
VIKING SIGNS & GRAPHICS INC
NUMBER DECALS - STREETS
60.00
09/08/2020
212308
VINOCOPIA INC
COST OF GOODS SOLD - LIQUOR HUTCH
1,705.16
09/08/2020
212309
WASTE MANAGEMENT OF WI -MN
8/1- 8/15-20 RESIDENTIAL REFUSE
6,524.69
09/08/2020
212310
WATERVILLE FOOD & ICE
COST OF GOODS SOLD - LIQUOR HUTCH
1,293.93
09/08/2020
212311
WELCOME NEIGHBOR
NEW RESIDENT VISITS, PRINTING OF CLIENTS - LIQUOR HUTCH
126.80
09/08/2020
212312
WENINGER, ABBEY
REFUND: RECEPTION CANCELLED DUE TO COVID - EV CTR
1,425.00
09/08/2020
212313
WEST CENTRAL SHREDDING
3 CONSOLES -VARIOUS DEPTS
25.00
09/08/2020
212314
WILSON'S NURSERY INC
TREES -STREETS
1,021.35
09/08/2020
212315
WINE COMPANY, THE
COST OF GOODS SOLD - LIQUOR HUTCH
5,430.30
09/08/2020
212316
WINE MERCHANTS INC
COST OF GOODS SOLD - LIQUOR HUTCH
3,211.52
09/08/2020
212317
WM MUELLER& SONS
3/8"FINE ASPHALT 6.5%-STREETS
864.00
09/08/2020
212318
YESSIKA GONZALEZ
REFUND: CANCELLED DUE TO COVID-19 - REC
30.00
09/08/2020
212319
ZIEGLER INC
FILTERS,ELEMENTS-COMPOSTSCREENER
350.96
Total - Check Disbursements:
I$
1,130,548.59
HUTCHINSON CITY COUNCIL Ci=y�f
Request for Board Action 79 =-W
Agenda Item: Discussion on the New Proposed Rate Structure for Hutchinson Utilities
Department: Administration
LICENSE SECTION
Meeting Date: 9/8/2020
Application Complete N/A
Contact: Matt Jaunich
Agenda Item Type:
Presenter: Jeremy Carter, HUC
Reviewed by Staff ✓❑
Communications, Requests
Time Requested (Minutes): 15
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
On September 2, the City received a notice from Hutchinson Utilities in accordance with Section 11.04 of our Charter
regarding a proposed rate structure change. Included with this Board Action form is a letter from General Manger
Jeremy Carter highlighting the proposed changes along with some additional information regarding what is being
proposed.
Jeremy will be at the meeting on Tuesday to discuss the proposed changes and answer any questions you may have
on what is being proposed. Per Section 11.04 of the City Charter, the City Council has up to 30 days to veto the rate
changes with a 4/5 vote. There is no requirement for the Council to formally accept the rate changes.
Noting that, following the presentation and an opportunity for you to ask some questions, I'll be asking the Council for
a direction on whether or not you would like to formally approve or reject the proposed new rate structure. If there is a
desire to take any action, that would be placed on the September 22 agenda.
BOARD ACTION REQUESTED:
No action needed. Discussion only.
Fiscal Impact: 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:
pO
T
Hutchinson
Utilities
Commission
September 2, 2020
Honorable Mayor Forcier and Council Members
111 Hassan Street SE
Hutchinson, MN 55350
Dear City Council,
225 Michigan Street SE
Hutchinson, MN 55350-1905
320-587-4746 1 Fax 320-587-4721
www.hutchinsonutilities.com
Putting All of Our Energy into Serving You
The purpose of this letter is to provide notice to the City of Hutchinson that on Wednesday August 261", 2020
the Hutchinson Utilities Commission (HUC) approved resolution 20-01 changing the rate structure for another
2 years on all customer classes within the Electric & Natural Gas Divisions. Pursuant to the City of Hutchinson
Charter section 11.04, such veto power shall be exercised, if at all, within 30 days after the council has
received notice of any proposed change in charge and rate.
To recap, on January 171", 2018 Utility Financial Solutions, LLC presented the final results of the Cost of
Service (COS) study to the HUC and the City Council. The results showed HUC was currently and continues
to be in good financial position, appropriately forecasts operational and capital expenses, and that the
financial policies adopted by HUC met benchmarks utilized by Utility Financial Solutions, LLC as part of the
COS study. Based on the COS study results appropriate rate design structures and various +/- bandwidth and
glide paths were approved with a conscious effort on minimizing the impact to customers.
The continued direction of HUC is to stay relatively revenue neutral in the rate design. This means based on
the on -going rate structure designs HUC will not be generating additional revenue. The collection of revenue
between customer classifications will change slightly but not the overall revenue collected. Secondly, HUC
wants to continue to align the various cost components of the utilities more closely with the monthly revenue
components collected on a customer's bill. Finally, HUC's direction is to continue to follow a 6-year glide path
for the Electric division and a 9-year glide path for the Natural Gas division. The purpose of these glide paths
is to achieve moving the various customer classes within each division towards more equitability between
classes.
The first 2-year rate design restructure approved back on May 30th, 2018 accommodated the first 2 years
down the respective glide paths. The adoption of resolution 20-01 continues the second phase or years 3 & 4
of the rate restructure down the respective glide paths. At the conclusion of the 2nd phase of rate restructures
another COS study is anticipated to be completed. Based on the next COS study HUC will determine if the
current glide paths are still the continued course of action or if adjustments need to be made. HUC will
continue to adjust the rates starting October 1 st of each year when energy consumption in both divisions is
typically low to minimize the impact to customers.
In conclusion, please find enclosed the adopted resolution and some additional materials for review. I will plan
to attend the Council meeting on September 81" to answer any questions from the council. However, please
feel free to reach out to me directly if there are questions ahead of time.
Sincerely,
Jeremy J. Carter
General Manager
Hutchinson Utilities Commission
Resolution No. 20-01
A RESOLUTION CHANGING THE HUTCHINSON UTILITIES COMMISSION
RATE STRUCTURE FOR 2020 & 2021 FOR ELECTRIC AND NATURAL GAS DIVISIONS
Be It Resolved by the Hutchinson Utilities Commission:
That the current Electric and Natural Gas Rates paid by customers of the Hutchinson Utilities
Commission be changed as follows:
Electric Division Table -
Current 2020 2021
Residential
Monthly Customer Charge $ 11.70 $ 14.30 $ 16.90
Energy Charge (per KWH) $ 0.08290 $ 0.08070 $ 0.07852
Small General _
Monthly Customer Charge
$
15.80
$ 18.70
$
21.60
Energy Charge
Block 1(0-2000 KWH)
$
0.09052
$ 0.09023
$
0.08994
Block 2 (Excess)
$
0.08314
$ 0.08196
$
0.08078
Large General
Monthly Customer Charge
$
53.80
$ 80.70
$
107.60
Energy Charge (per KWH)
$
0.06637
$ 0.06210
$
0.05783
Demand Charge (per KW)
$
8.00
$ 9.00
$
10.00
Large Industrial
Monthly Customer Charge
$ 150.40
$ 225.60
$ 300.80
Energy Charge (per KWH)
$ 0.05680
$ 0.05477
$ 0.05274
Demand Charge (per KW)
$ 9.00
$ 10.00
$ 11.00
Natural Gas Table -
Residential
Monthly Customer Charge
Gas Commodity Charge ($/MCF)
Commercial
Monthly Customer Charge
Gas Commodity Charge ($/MCF)
Current 2020 2021
$ 11.30 $ 13.70 $ 16.10
$ 8.2447 $ 7.8240 $ 7.4040
$ 48.10 $ 56.40 $ 64.70
$ 8.5282 $ 8.2482 $ 7.9682
Large Industrial
Monthly Customer Charge $ 145.00 $ 215.00 $ 285.00
Gas Commodity Charge ($/MCF) $ 8.0390 $ 7.7950 $ 7.5450
Demand Charge (Max Daily MCF per month) $ 9.0000 $ 8.5000 $ 8.0000
AND BE IT FURTHER RESOLVED, that the General Manager of the Hutchinson Utilities Commission,
Jeremy J Carter, shall provide notice of these rate changes to the City Council of the City of Hutchinson.
Adopted by the Hutchinson Utilities Commission this �(-O — day of
U 2020
Hutchinson Utilities Commission
)P000lp
/
Don Martinez, President
Attest:
oe
Robert Wendorff, Secreta
ELECTRIC RATES
Residential
Monthly Charge
Energy Charge (per Kwh)
Small General
Monthly Charge
Energy Charge (per Kwh) "Block 1"
Energy Charge (per Kwh) "Block 2"
Large General
Monthly Charge
Energy Charge (per Kwh)
Demand Charge (per KW)
Industrial
Monthly Charge
Energy Charge (per Kwh)
Demand Charge (per KW)
NATURAL GAS RATES
Residential
Monthly Charge
Gas Commodity Charge (per MCF)
Commercial
Monthly Charge
Gas Commodity Charge (per MCF)
Large Industrial
Monthly Charge
Gas Commodity Charge (per MCF)
Demand Charge (Max Daily MCF per/month)
INSTITUTED RATES PROPOSED RATE SCHEDULE
COS Rates 10/1/2017 10/1/2018 10/1/2019 10/1/2020 10/1/2021
$ 14.35 $ 6.50 $ 9.10 $ 11.70 $ 14.30 $ 16.90
$ 0.1028 $ 0.08720 $ 0.08504 $ 0.08290 $ 0.08070 $ 0.07852
$ 24.43 $ 10.00 $ 12.90 $ 15.80 $ 18.70 $ 21.60
$ 0.1028 $ 0.09110 $ 0.09081 $ 0.09052 $ 0.09023 $ 0.08994
$ 0.1028 $ 0.08550 $ 0.08432 $ 0.08314 $ 0.08196 $ 0.08078
$ 134.67 $ - $ 26.90 $ 53.80 $ 80.70 $ 107.60
$ 0.05680 $ 0.07370 $ 0.07003 $ 0.06637 $ 0.06210 $ 0.05783
$ 14.72 $ 6.00 $ 7.00 $ 8.00 $ 9.00 $ 10.00
$ 375.96 $ - $ 75.20 $ 150.40 I $ 225.60 $ 300.80
$ 0.0568 $ 0.0610 $ 0.0589 $ 0.0568 $ 0.05477 $ 0.05274
$ 15.86 $ 7.00 $ 8.00 $ 9.00 $ 10.00 $ 11.00
Alternate
10/1/2021
$ 14.30
$ 0.08240
INSTITUTED RATES
PROPOSED RATE SCHEDULE
Alternate
COS Rates 10/1/2017
10/1/2018 10/1/2019
10/1/2020 10/1/2021
10/1/2021
$ 13.81 $ 6.50
$ 8.90 $ 11.30
$
13.70 $ 16.10
$ 13.70
$ 6.24 $ 9.080
$ 8.662 $ 8.244
$
7.824 $ 7.404
$ 7.756
$ 72.87 $ 31.50 $ 39.80 $ 48.10 I $ 56.40 $ 64.70
$ 6.40 $ 9.080 $ 8.803 $ 8.528 $ 8.25 $ 7.97
$ 372.33 $ - $ 75.00 $ 145.00 I $ 215.00 $ 285.00
$ 4.52 $ 8.540 $ 8.284 $ 8.039 $ 7.795 $ 7.545
$ 5.71 $ 10.00 $ 9.50 $ 9.00 $ 8.50 $ 8.00
ELECTRIC RATES Monthly Bill by Energy Usage
RESIDENTIAL IMPACTS All Energy Current 2020 $ 2021$
250
$
33.75
$
35.80
$ 37.86
350
$
42.57
$
44.40
$ 46.24
450
$
51.39
$
53.00
$ 54.62
550
$
60.22
$
61.61
$ 63.01
650
$
69.04
$
70.21
$ 71.39
750
$
77.86
$
78.81
$ 79.77
850
$
86.68
$
87.41
$ 88.16
950
$
95.50
$
96.01
$ 96.54
1,050
$
104.32
$
104.61
$ 104.92
1,150
$
113.14
$
113.21
$ 113.30
Monthly % Change by Energy Usage
All Energy
2020
2021
250
6.1%
5.7%
350
4.3%
4.1%
450
3.1%
3.1%
550
2.3%
2.3%
650
1.7%
1.7%
750
1.2%
1.2%
850
0.8%
0.9%
950
0.5%
0.6%
1,050
0.3%
0.3%
1,150
0.1%
0.1%
Monthly $ Change by Energy Usage
All Energy
2020
2021
250
$
2.05
$ 2.06
350
$
1.83
$ 1.84
450
$
1.61
$ 1.62
550
$
1.39
$ 1.40
650
$
1.17
$ 1.18
750
$
0.95
$ 0.97
850
$
0.73
$ 0.75
950
$
0.51
$ 0.53
1,050
$
0.29
$ 0.31
1,150
$
0.07
$ 0.09
ELECTRIC RATES
Monthly
Bill by Energy
Usage
SMALL GENERAL IMPACTS Energy
Block 1
Block 2
Current
2020 $
2021$
400
400
$
54.13
$
56.92
$ 59.70
700
700
$
79.16
$
81.86
$ 84.56
1,000
1,000
$
111.63
$
114.24
$ 116.85
1,300
1,300
$
140.38
$
142.90
$ 145.43
1,600
1,600
$
169.13
$
171.56
$ 174.00
1,900
1,900
$
197.88
$
200.23
$ 202.58
2,200
2,000
200
$
225.15
$
227.23
$ 229.32
2,500
2,000
500
$
251.69
$
253.42
$ 255.15
2,800
2,000
800
$
278.22
$
279.60
$ 280.97
3,100
2,000
1,100
$
304.76
$
305.78
$ 306.80
Monthly % Change by Energy Usage
All Energy
2020 2021
400
5.1% 4.9%
700
3.4% 3.3%
1,000
2.3% 2.3%
1,300
1.8% 1.8%
1,600
1.4% 1.4%
1,900
1.2% 1.2%
2,200
0.9% 0.9%
2,500
0.7% 0.7%
2,800
0.5% 0.5%
3,100
0.3% 0.3%
Monthly $ Change by Energy Usage
All Energy
2020
2021
400
$
2.78
$ 2.78
700
$
2.70
$ 2.70
1,000
$
2.61
$ 2.61
1,300
$
2.52
$ 2.52
1,600
$
2.44
$ 2.44
1,900
$
2.35
$ 2.35
2,200
$
2.08
$ 2.08
2,500
$
1.73
$ 1.73
2,800
$
1.38
$ 1.38
3,100
$
1.02
$ 1.02
NATURAL GAS RATES Monthly Bill by Energy Usage
RESIDENTIAL IMPACTS MCF Usage Current 2020 $ 2021$
4 $
41.29
$
42.01
$
42.73
5 $
48.79
$
49.09
$
49.39
6 $
56.29
$
56.17
$
56.05
7 $
63.79
$
63.25
$
62.71
8 $
71.28
$
70.32
$
69.36
9 $
78.78
$
77.40
$
76.02
10 $
86.28
$
84.48
$
82.68
11 $
93.78
$
91.56
$
89.34
Monthly % Change by Energy Usage
MCF Usage
2020
2021
4
1.7%
1.7%
5
0.6%
0.6%
6
-0.2%
-0.2%
7
-0.8%
-0.9%
8
-1.3%
-1.4%
9
-1.8%
-1.8%
10
-2.1%
-2.1%
11
-2.4%
-2.4%
Monthly $ Change by Energy Usage
MCF Usage
2020
2021
4
$
0.72
$ 0.72
5
$
0.30
$ 0.30
6
$
(0.12)
$ (0.12)
7
$
(0.54)
$ (0.54)
8
$
(0.96)
$ (0.96)
9
$
(1.38)
$ (1.38)
10
$
(1.80)
$ (1.80)
11
$
(2.22)
$ (2.22)
NATURAL GAS RATES Monthly Bill by Energy Usage
COMMERCIAL IMPACTS MCF Usage Current 2020 $ 2021$
10 $
125.92
$
131.42
$ 136.92
20 $
203.74
$
206.44
$ 209.14
30 $
281.56
$
281.46
$ 281.36
40 $
359.38
$
356.48
$ 353.58
50 $
437.21
$
431.51
$ 425.81
60 $
515.03
$
506.53
$ 498.03
70 $
592.85
$
581.55
$ 570.25
80 $
670.67
$
656.57
$ 642.47
90 $
748.49
$
731.59
$ 714.69
Monthly % Change by Energy Usage
MCF Usage
2020
2021
10
4.4%
4.2%
20
1.3%
1.3%
30
0.0%
0.0%
40
-0.8%
-0.8%
50
-1.3%
-1.3%
60
-1.7%
-1.7%
70
-1.9%
-1.9%
80
-2.1%
-2.1%
90
-2.3%
-2.3%
Monthly $ Change by Energy Usage
MCF Usage
2020
2021
10
$
5.50
$ 5.50
20
$
2.70
$ 2.70
30
$
(0.10)
$ (0.10)
40
$
(2.90)
$ (2.90)
50
$
(5.70)
$ (5.70)
60
$
(8.50)
$ (8.50)
70
$
(11.30)
$ (11.30)
80
$
(14.10)
$ (14.10)
90
$
(16.90)
$ (16.90)
Hutchinson Utilities Commission
Electric Rate Design for 2020
Rate Design Summary
Projected
Projected
Projected
Projected
Revenues Under
Revenues Under
Revenue
Change from
Customer Class
Current Rates
Proposed Rates
Change
Current
Residential
$
5,666,392
$
5,745,256
$
78,864
1.39%
Small General Service
$
1,913,128
$
1,929,507
$
16,379
0.86%
Large General Service
$
7,735,776
$
7,671,343
$
(64,434)
-0.83%
Large Industrial
$
10,170,440
$
10,147,932
$
(22,508)
-0.22%
TOTALS
$
25,485,736
$
25,494,037
$
8,301
0.03%
Hutchinson Utilities Commission
Electric Rate Design for 2021
Rate Design Summary
Projected
Projected
Projected
Projected
Revenues Under
Revenues Under
Revenue
Change from
Customer Class
Current Rates
Proposed Rates
Change
Current
Residential
$
5,745,256
$
5,825,203
$
79,947
1.39%
Small General Service
$
1,929,507
$
1,945,886
$
16,379
0.85%
Large General Service
$
7,671,343
$
7,606,907
$
(64,436)
-0.84%
Large Industrial
$
10,147,932
$
10,125,426
$
(22,506)
-0.22%
TOTALS
$
25,494,037
$
25,503,421
$
9,384
0.04%
Hutchinson Utilities Commission
Natural Gas Rate Design for 2020
Rate Design Summary
Projected Projected Projected Projected
Revenues Under Revenues Under Revenue Change from
Customer Class
Current Rates
Proposed Rates
Change
Current
Residential
$
3,870,540
$
3,842,013
$
(28,527)
-0.74%
Commercial
$
2,912,294
$
2,876,480
$
(35,814)
-1.23%
Industrial
$
406,048
$
391,700
$
(14,348)
-3.53%
Contracted Industrial #1
$
328,345
$
337,902
$
9,557
2.91%
Contracted Industrial #2
$
2,498,157
$
2,586,882
$
88,724
3.55%
TOTALS
$
10,015,385
$
10,034,977
$
19,593
0.20%
Hutchinson Utilities Commission
Natural Gas Rate Design for 2021
Rate Design Summary
Projected
Projected
Projected
Projected
Revenues Under
Revenues Under
Revenue
Change from
Customer Class
Current Rates
Proposed Rates
Change
Current
Residential
$ 3,842,013.40
$ 3,813,785.02
$
(28,228)
-0.73%
Commercial
2,876,480.15
2,840,666.27
$
(35,814)
-1.25%
Industrial
391,700.01
377,051.51
$
(14,649)
-3.74%
Contracted Industrial #1
337,902.39
337,902.39
$
-
0.00%
Contracted Industrial #2
2,586,881.50
2,586,881.50
$
-
0.00%
TOTALS
$ 10,034,977.45
$ 9,956,286.69
$
(78,691)
-0.79%
Average Residential Usage Kwhr's
25DORLESS 251-500 501-75U
Customer #'s 857 1,462 1,541
°h of Total 14% 23% 25%
>= 251, <=375 720
>375, <=500 732
1,452
>= 501, <=625 785
>625, <=750 756
1,541
751-1000 1001-1250 1251-1500
1,151 63T 620
Avg Residential Usage MCF's
3 OR LESS 3.1-5 5.1-7 7.1-9 9.1-11 11.1-13 13.1-15
Customer #'s 790 1,594 1,407 667 308 12T 215
96 of Total 156 31% 286 1396 fi 2°h 4°
>3, <4 695
1594
>5, <6 849
>= 6, <=7 558
1407
Sum
6,258
1 DO%
Sum
5,108
100%
HUTCHINSON CITY COUNCIL Ci=y�f
Request for Board Action 79 =-W
Agenda Item: Project Award for SC Drainage Area Improvements Phase 2 Project (1-3/P20-03)
Department: PW/Eng
LICENSE SECTION
Meeting Date: 9/8/2020
Application Complete N/A
Contact: Kent Exner
Agenda Item Type:
Presenter: Kent Exner
Reviewed by Staff ❑
New Business
Time Requested (Minutes): 10
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
The City received five (5) bids (see attached Bid Tabulation) for the South Central Drainage Area Improvements
Phase 2 project letting on Wednesday, September 2nd. The apparent low bidder is Hjerpe Contracting Inc. of
Hutchinson, MN, with a bid of $715,066.79 (approximately 40% lower than the final Engineer's Estimate of
$1,200,000.00). This project's total cost and associated funding contributions will be incurred by the City's
Stormwater, Water and Wastewater funds per the actual bid item amounts.
The necessary Resolution to award this project is attached, and City staff recommends approving it accordingly.
BOARD ACTION REQUESTED:
Approval of Resolution
Fiscal Impact: 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:
RESOLUTION NO. 15206
RESOLUTION ACCEPTING BID AND AWARDING CONTRACT
LETTING NO. 4/PROJECT NO. 20-04
Whereas, pursuant to an advertisement for bids for the furnishing of all labor and material for the improvement of:
South Central Drainage Area Improvements Phase 2: Harrington Street SW, Merrill Street SW,
Clinton Avenue SW & Lyndale Avenue SW; utility improvements by construction of grading,
aggregate base, storm sewer, sanitary sewer, restoration and appurtenances, and
bids were received, opened and tabulated according to law, and the following bids were received complying with
the advertisement:
Bidder
Total Bid
Hjerpe Contracting Inc of Hutchinson MN
$715,066.79
R & R Excavating Inc of Hutchinson MN
$832,711.42
Widmer Construction LLC of Minnetrista MN
$844,532.50
Schneider Excavating & Grading Inc, Young America MN
$1,003,846.10
Duininck Inc of Prinsburg MN
$1,059,911.00
and whereas, it appears that Hjerpe Contracting Inc. of Hutchinson MN is the lowest responsible bidder;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HUTCHINSON, MINNESOTA:
The mayor and city administrator are hereby authorized and directed to enter into a contract with
Hjerpe Contracting Inc of Hutchinson MN in the amount of $715,066.79 in the name of the City of
Hutchinson, for the improvement contained herein, according to the plans and specifications therefor
approved by the City Council and on file in the office of the City Engineer.
The City Engineer is hereby authorized and directed to return forthwith to all bidders the deposits made
with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be
retained until a contract has been signed, and the deposit of the successful bidder shall be retained until
satisfactory completion of the contract.
Adopted by the Hutchinson City Council this 8th day of September 2020.
Mayor, Gary Forcier
City Administrator, Matthew Jaunich
CITY OF HUTCHINSON, 111 HASSAN ST SE, HUTCHINSON MN 55350 320-234-4209
BID TABULATION - CITY OF HUTCHINSON
LETTING NO. 3/PROJECT NO. 20.03
South Central Drainage Area Improvements - Phase 2
BID OPENING: 09/02/2020 @ 11:00 AM ENGINEER'S ESTIMATE $1,207,610.00 COMPLETION DATE: 1112512020
_
_
_
-
a
Engineer's ESgmne
Hjerpe Contracting Inc
Kurt H Hjerpe
162a6 Hwy 15 S
P O Box 517
Hutchinson MN 55350
Phone: 320-234-8305
Fax: 3213234-7305
estimatingghj.,p -tracti
R & R Excava5 ng, Inc.
Brent Reiner
1149 Hwy 22 South
Hutchinson, MN 55350
Phone 320487-5918
Fax 320487-113"
michelle�rtexcavating.net
Wid-Construction LLC
Tony Vanneninne
9455 Cty Rd 15
Minnetnsta MN 55359
Phone: 952-9554062
Fax: 9524554034
fm
tony.wdmemonst@ntw.
rom
Schneid-Excavating &
G.ding Inc
Bnan Wachholz
405 Central Ave S
PO Box 814
Young Amen- MN 55397
Phone: 952-2924374
Fax: 952467-2563
Duininck Inc
Brady Bumhill
408 61, St
P O Box 208
Pnnsburg MN 56281
Phone 320-978-6011
Fax 320-9]849]8
Bn dyB,§tluininck.-
BID PRICE BID TOTAL
BID PRICE BID TOTAL
BID PRICE
BID TOTAL
BID PRICE
BID TOTAL
BID PRICE BID TO TAL
BIDPRICE I BIDTOTAL
BASE
BID
$1,203,460.45
$715,066.79
$832,711.42
$844,532.50
$1,003,846.10
$1,059,911.00
BASE BID
UNIT
OUANTRY
BID PRICE
BID TOTAL
BID PRICE
BID TOTAL
BID PRICE
BID TOTAL
BID PRICE
BID TOTAL
BID PRICE
BID TOTAL
BID PRICE
BID TOTAL
1
2021501
MOBILIZATION
LUMPSUM
1
$60,00000
$60,0000
$39000
$3,0000
$110456.4
$1104564
$11.000.00
$11,000.00
$47000.00
$47000.00
$900000
$90,000.00
2
2101524
CLEARING
TREE
1
$40000
$40000
$40000
$40000
$2WN
$25000
$1.250.00
$1,250.00
$1000.00
$100000
$100000
$1000.00
3
2101 524
GRUBBING
TREE
1
$250 00
$25000
$100 00
$100 00
$2WN
$250 W
$800 00
$800 00
$250 00
$250 00
$1 00000
$1 000.00
4
2103502
DISCONNECT WATER SERVICE
EACH
3
$850.00
$25500
$8500
$25500
$1651
$496]1
$1.500.00
$45000
$500.00
$150000
$120000
$360000
5
2104502
REMOVE MANHOLE
EACH
13
$350.00
55ao
$20000
z6000
$26]85
3,4820
$450.00
58500
$300.00
390000
$40000
520000
6
2104 502
REMOVE CATCH BASIN
EACH
14
$260.00
$3 6400
$195 00
$2 7300
$128 4]
$1 ]98 58
$250 00
$3 5000
$250 00
$3 50000
$250 00
$3 50000
7
2104502
REMOVE GATE VALVE
EACH
7
$185.00
$12050
$2000
$14000
$14193
$99351
$300.00
$2,1000
$50.00
$35000
$20000
$140005
8
2104502
REMOVE HYDRANT
EACH
3
$900.00
$27000
$42500
$12750
$331.18
$00354
$400.00
$12000
$350.00
$1,05000
$50000
$150000
9
2104502
SALVAGE LIGHTING UNIT
EACH
2
$800 00
$16000
$2500
$5000
$2WN
$58000
$1,500.00
$30000
$1500.00
$3,000.00
$29000
$58000
10
2104.502
SALVAGE SIGN
EACH
6
40 00
$240.00
5000
$300.00
2500
$150 00
125.00
$750.00
100.00
$600.00
5000
$300 00
11
2104.502
SALVAGE MAIL BOX SUPPORT
EACH
1
$5500
$55.00
$6500
$65.00
$SON
$5000
$60.00
$60.00
$100.00
$100.00
$5500
$5500
12
2104.503
SAWING CONCRETE PAVEMENT FULLDEPTH
LIN FT
225
$800
1,800.00
$4.15
933.]5
$331
]4475
$5.50
1237.5
$5.00
1.125.00
$500
1,12500
13
2104.503
SAWN G BITUMIN OUSPAVEM ENT FULL DEPTH
LIN FT
167
$600
1,002.00
$2 00
334.00
$223
3]241
$3 00
50100
$3 00
501.00
$2 00
33400
14
2104.503
REMOVEWATER MAIN
LIN FT
200
$1000
$2,000.00
$1 00
$200.00
$058
$11600
$25.00
$50000
$5.00
$1,000.00
$500
$100000
15
2104.503
REMOVE SEWER PIPE STORM
LIN FT
2057 00
$8 00
$16,456 00
$5 55
$11 416 35
$6 23
$12,815.11
$15.00
$30,855 0
$10.00
$20, 570.00
$1000
$2U 51000
16
2104.503
REMOVE SEWER PIPE SANITARY
LIN FT
874.00
$5.00
$4 3700
$0 01
$8 ]4
$0.14
$122 36
$12.00
$10,4880
$5.00
$4, 370.00
$2 50
$2,185 00
17
2104.503
REMOVECURB&GUTTER
LIN FT
1770.00
$8 00
$14,1 W0
$300
$5,3100RL12
$4,301.1
$6.00
$1062000
$11.00
$19,470.00
$500
$885000
18
2104.504
REMOVE CONCRETE DRIVEWAY PAVEMENT
SO YD
289.00
$15.00
$4 3350
$8 00
$2 312 0
$1 63514
$12.00
$3 468 00
$13.00
$3 757.00
$1000
$2 80000
19
2104.505
REMOVE BITUMINOUS PAVEMENT
SO YD
122.00
$6.00
$]3200
$2 00
$24400
$40870
$1000
$12200
$10.00
$1220.00
$800
$07600
20
2104.518
REMOVE CONCRETE WALK
SO FT
991.00
$4.50
459 5
$0 80
792 80
812 62
$2 50
2 4]] 5
$3.00
2,9]3.00
$1 00
991 00
21
210550]
COMMON EXCAVATION EV
CU YD
2321.00
$15.00
$348150
$980
$22,7458
$31,078.1
$2000
$46,4200
$9.00
$20,889.00
$2000
$46,42005
22
2105 507
SOIL STABILIZATION GRID
SO YD
1035 00
$3.85
$3 984.75
$3 25
$3,363 ]1
$3011 8
$3 50
$3 622 5
$4 50
$4, 657.50
$5 00
$5,175 00
23
2211609
AGGREGATE BASE CV FROM STOCKPILE
TON
468000
$10.00
$46,800.00
$875
$40,95004
$30,6072
$1075
$50,3100
$725
$33,930.00
$1050
$40,14000
24
2112 W4
SUBGRADE PREPARATION
SO YD
1043200
$1 00
$10,432.00
$1 50
$15,6480$1
35
$14,0832
$125
$13,0400
$150
$15648.00
$1 50
$1564800
25
2215.504
FULLDEPTH RECLAMATION
SO YD
10432.00
$1 50
$15648.00
$200
$208640
$959744
$155
$161606
$1.30
$1356160
$150
$15648026
2502.503
4" PERF PVC PIPE DRAIN
LIN FT
190.00
$6.50
$1 235.00
$8 00
$1 52005
$9]8 50
$19]5
$3]52 5
$21.00
$399000
$1000
$100000
27
2503.503
TPVC PIPE SEWER
LIN FT
35.00
$53.00
18550$1400
90009
6815
$3225
1,128]
$85.00
207500
$5000
175000
28
2503503
12" RC PIPE SEWER DESIGN 3006 CL V
LIN FT
510.00
$71.00
$36,210.00
$4000
$20,4000
$24,214 8
$62 00
$31 6200
$70.00
$35,70000
$47 00
$23,07005
29
2503503
15" RC PIPE SEWER DESIGN 3006 CL V
LIN FT
28.00
$74.00
$2 072 0
$49 00
$1 372 0
$5523
$1 54644
$66 00
$1 8480
$114.00
$3,192 00
$58 00
$1 624 00
30
2503 503
24" RC PIPE SEWER DESIGN 3006 CL V
LIN FT
137.00
$90.00
$12 330 0
$69 00
$9,453 0
$8322
$11,401.14
$90.00
$12 3300
$96.00
$13,152 00
$85 00
$11 645 00
31
2503 503
42" RC PIPE SEWER DESIGN 3006 CL III
LIN FT
1625 00
$215 00
$349 375 0
$100 00
$162500 0
$13732
$223,1450
$143.00
$232 3750
$151.00
$245 375 00
$175 00
$284 375 0
32
2503602
CONNECTTO EXISTING SANITARY SEWER
EACH
1000
18000
$180000
18200
$182000
99]94
$997040
500.00
$50000
2.000.00
$2000000
110000
$1100000
33
2503602
CONNECTTO EXISTING MANHOLES SAN
EACH
100
$32000
$32000,5000
$35250
$35250
$198]0
$198]03
$1,000.00
$10000
$3.500.00
$350000
$210000
$210000
34
2503602
CONNECTTO EXISTING STORM SEWER
EACH
1100
$25000
2].
$14850
16,3350
$99352
10,92872
$500.00
5,500.00
$1.500.00
16,50000
$140000
15,40000
35
2503602
CONNECT INTO EXISTING DRAINAGE STRUCTURE
EACH
100
$2 5000
2 5000
$2 7500
2 7500
$1 %70
1 98] 0
$500.00
500.00
$2..500.00
2 50000
$2 50000
2 50000
36
2503602
4"CLEAN-OUT ASSEMBLY
EACH
800
$45000
$36000
$18500
$14800
$10425
$83400
$125.00
$1,000.00
$250 00
$200000
$50000
$400000
37
2503 602
6" CLEAN -OUT ASSEMBLY
EACH
100
$55000
$5500(
$27000
$27000
$152 62
$152 62
$215.00
$215.00
$350.00
$350 00
$700 00
$700 00
38
2503602
TX4"PVC ME
EACH
800
$75000
$60000
$81000
$64800
$10535
$,2848
182.5
$750.00
$6000.00
$150.00
$120000
$60000
$480000
39
2503 602
TX6" PVC ME
EACH
100
$95000
$950 00
$83500
$83500
$1 082 5
$21
$783.00
$783.00
$200.00
$200 00
$800 00
$800 00
40
2503 603
CLEAN & VIDEO TAPE PIPE SEWER
LIN FT
163200
$1 85
$3 0192
$230
$3 7536
$21N1
$3 264 0
$2.45
$3 99840
$3 50
$5 712 00
$2 50
$4 080 00
41
2503.603
4" PVC PIPE SEWER
LIN FT
18500
$40 00
$7400 0
$2400
$4 4400
$12 46
$2 305.1
$31.05
$5144 2
$81 00
$14 985 00
$44 00
$8 14000
42
2503.603
8"PVC PIPE SEWER
LIN FT
129400
$5500
71,1700
$3000
388200
$3037
39,298_]8
$24.00
31056.0
$5500
71,1]000
$4400
$56,036.00
43
2504.602
WATER MAIN OFFSET 3"
EACH
100
$8 00000
000
$8 000 0
$4 400 0
$4 4000
$3 258 6
$3,258 68
$3 912 0
$3 0120
$5 703 00
$5 703 00
$3 10000
$3,100 00
44
2504.602
WATER MAIN OFFSET 6"
EACH
200
$8 500 0
$1 ],0000
$4 4999
$8 8000
$2 8004
$5,60094
$3 512 0
$]0240
$5 16100
$10,322 00
$3 80000
$7600 00
45
2504.602
CONNECTTO EXISTING WATERMAIN
EACH
1200
$20000
$240000
$12000
$144000
$10016
$12,01956
$17500
$210000
$170000
$20,40000
$250000
$30,00002
46
2504.602
HYDRANT
EACH
300
$5,50000
$16,500001
$4,78500
$14 355 0
$4 36032
$13,08096
$3 7640
$11 292 0
$6 276 00
$18 828 00
$4 40000
$1320000
47
2504.602
1"CORPORATION STOP
EACH
200
$21000
$42000
$18250
$36500
$109564
$219128
$448.00
$8%00
$112000
$224000
$800 00
$160002
48
2504.602
2"CORPORATION STOP
EACH
100
$24999
$24000
$21000
$21000
$13130
$13130
$689.00
$68900
$1eoo oo
$180000
$105000
$105000
49
2504.fi02
6"GATE VALVE
EACH
800
$z 4999
19,2000
$14950
119600
$18315
146520
$1.20].00
96560
$1 ]3300
13,86400
$190000
1520000
50
2504.602
1" CURB STOP AN BOX
EACH
200
$85000
$1 ]000
$1 100.00
$2 2000
$150.10
$300 20
$501.00
$1 002 0
$1 1]] 00
$2 354 00
$350 00
$700 00
51
2504.602
2"CURB STOP AN BOX
EACH
100
$95000
$95000
$1425.00
$14250
$456.5]
$45fi.5]
$841.00
$84100
$153900
$153900
$85000
$85000
52
2504.603
1"TYPE K COPPER PIPE
LIN FT
9000
$2600
$23400
$6.00
$54000
$1539
$1,385.1
$40.00
$36000
$2900
$2610.00
$3200
$288000
53
2504.603
2"TYPE K COPPER PIPE
LIN FT
40.00
$3500
$14000
$13.00
$52000
$3563
$14252
$47.00
$18800
$4500
$1,800.00
$4800
$192000
54
2504.603
T WATERMAIN DUCTILE IRON CL 52
LIN FT
117.003$130*
00
$8 775 0
90.00
$10 5300
4 75
$5 235 ]
51.50
$6 025 5
10800
$12 636.00
72 00
$8 424 00
55
2504.608
DUCTILE IRON FRTINGS
POUND
300.0000
$30000
$9.00
$27000
$110]
$33210al
00
$18000
$1000
$3000.00
$1500$45000056
2506.502
CONSTRUCT DRAINAGE STRUCTURE DESIGN SPECIAL
EACH
100
0
140000
$125000
125000
$1516052
15,160.525
146075
$86440p
8.644.00
$151000
15,10005]
2506.502
CONSTRUCT MANHOLE DESIGN 400]
EACH
9000
38 ]000
$29300
26,3700
$330294
29,72640
26,4600
$480000
3.200.00
$440000
3960000
58
2506.502
CONSTRUCT CATCH BASIN TYPE A
EACH
18000
$45,0000
$1 9100
$34 3800
$1 ]11.18
$30,801 241
0
$25,]58 0
$200200
$36 036.00
$250000
$45,00002
59
2506.502
CONSTRUCT DRAINAGE STRUCTURE DESIGN 48-0020
EACH
5000
$27,5000
$26400
$132000
$25916
$12,95800
$10,9500
$205200
$14,]60.00
$280000
$1400000
fi0
2506.502
CONSTRUCT DRAINAGE STRUCTURE DESIGN 60-0020
EACH
3000
$186000
$3]500
$1I 50.0
$343662
$10,30980
$96360
$568900
$17,067.00
$380000
$1140000
2506502
CONSTRUCT DRAINAGE STRUCTURE DESIGN 72-M20
EACH
]000
$616000
$56550
$39,5850
$504]6
$35,33320
$3],1000
$692000
$48440.00
$]10000
$49]0000fit
2506502
CONSTRUCT DRAINAGE STRUCTURE DESIGN 84-0920
EACH
2000
$194000
$6 ]550
$135100
$593]41
$11.8]4820
$123860
$859900
$1]19800
$]40000$148000
RUCT DRAINAGE STRUCTURE DESIGN 91-02U
EACH
300
.00
$30 UUUU
$91900
$275700
$814]1
$24,441.30
$248460
$9223 UU
$2]fi69.00
$980000
$2940000
STRUCT DRAINAGE STRUCTURE DESIGN 108d020
EACH
100
.00
180000
$13500.0
13,5000
$134112
13.41120
16,1630
$1356300
13,563.00
$155000
15,50000
fi5
2540602
MAILBOX
EACH
2400
$10000
$z400.o
$10000
$24000
$5000
$1,200000
$25200
$12500
$3,000.00
$10000
$z400 oo
CITY OF HUTCHINSON, 111 HASSAN ST SE, HUTCHINSON MN 55350 320-234-4209
BID TABULATION - CITY OF HUTCHINSON
LETTING NO. 3/PROJECT NO. 20-03
South Central Drainage Area Improvements - Phase 2
BID OPENING: 09/02/2020 @ 11:00 AM ENGINEER'S ESTIMATE $1,207,610.00 COMPLETION DATE: 11/25/2020
Hjerpe Contracting Inc
R& R Excavating, Inc.
Wid-Construction LLC
Schneider Excavating&
Duininck Inc
Kurt H Hjerpe
Brent Reiner
Tony V-derlinde
Gn.ding Inc
Bretly Burchill
16246 Hx 15 S
1149 Hwy 22 South
9455 Cty Rd 15
Brian Wachholz
408 6th St
P O Box 517
Hutchinson, MN 55350
Minnetriete MN 55359
405 Central Ave S
P O Box 208
-
-
Engineer's E,bmate
Hutchinson MN 55350
Phone 320-587-5918
Phone: 952-9554062
P O Box 814
Prineburg MN 56281
Phone: 320-234-8305
Fax 320-587-10"
Fax: 952E555034
Young America MN 55397
Phone 320-978-6011
_
Fax: 320-234-7305
michelle@nn,..-tng.net
tony.widmerconstM_frontier.
Phone: 952-2924374
Fax 320-9784978
eetimating@hjerpecontrecti
com
Fax: 952467-2563
B,.dyB@tluininck.com
BID PRICE BID TOTAL
BID PRICE BID TOTAL
BID PRICE BID TOTAL
BID PRICE BID TOTAL
BID PRICE BID TOTAL
BID PRICE I BID TOTAL
BASE
BID
$1,203,460.45
$715,066.79
$832,711.42
$844,532.50
$1,003,846.10
$1,059,911.00
BASE BID
UNIT
QUANTITY
BID PRICE
BID TOTAL
BID PRICE
BID TOTAL
BID PRICE
BID TOTAL
BID PRICE
BID TOTAL
BID PRICE
BID TOTAL
BID PRICE
I BID TOTAL
66
2540.602
INSTALLMAIL BOX SUPPORT
EACH
1.00
$65.00
$65.00
$75.00
$75.00
$50.00
$50.00
$73.50
$73.50
$150.00
$150.00
$70.00
$70.00
67
2545.602
INSTALLLIGHTING UN IT
EACH
2.00
$1,500.00
13,000.00
$250.00
$500.00
$680.00
$1360.00
$1,500.00
$3,000.00
$1,500.00
$3,000.00
$680.00
$1360.00
68
2563.601
TRAFF IC GO NTROL
LU MP SUM
1.00
$13,500.05
$13,500.00
$6,000.00
$6,000.00
$6,000.00
$6,000.00
$6,510.00
$6,510.00
$7,000.00
$7,000.00
$6,000.00
$6,000.00
68
2564.602
INSTALL SIGN
EACH
6.00
$225.00
$1350.00
$200.00
$1 200.00
$100.00
$600.00
$200.00
$1 200.00
$250.00
$1 500.00
$200.00
$1 200.00
70
2573.502
STORM DRAIN INLET PROTECTION
EACH
1 41.11
$185.00
7,-UU
$110.00
4.500.00
$60.00
2.460.00
$225.00
8.225.00
$350.00
14350.00
$175.00
7.175.00
71
2575.505
RAPID STABILISATION METHOD
ACRE
0.55
$2,100.00
$1,155.00
$2, 500.00
$1375.00
$2, 500.00
$1375.00
$2, 000.00
$1,100.00
$5,000.00
$2,750.00
$2,500.00
$1375.00
TOTAL - LETTING NO. 3/PROJECT NO. 20-03
$1,203,460.45
$1 15,066.79
$832,711.42
$844,532.50
$1,003,846.10
$1,059,911.00
HUTCHINSON CITY COUNCIL Ci=y�f
Request for Board Action 79 =-W
Agenda Item: Approve/Deny Purchase of "Slapshot" Sculpture
Department: Park & Rec - Public Arts
LICENSE SECTION
Meeting Date: 9/8/2020
Application Complete N/A
Contact: Steve Cook
Agenda Item Type:
Presenter: Steve Cook
Reviewed by Staff ❑
New Business
Time Requested (Minutes): 10
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
When you think of Thomas "Buzz" Burich words like community, support and philanthropy come to mind. Over the
years Buzz has supported the community and various organizations in a variety of ways and set an example for giving
back and helping others to make Hutchinson a better place to live. This includes his support of the youth hockey and
skating programs. For example, the Burich Foundation has made sizable donations to the city to help purchase two
new electric ice resurfacing machines- the most recent this spring. These also help us meet indoor air quality
requirements. In addition, a debt buy down/naming right arrangement allowed the city to generate additional ice rental
fees at a time when LGA was cut.
Buzz has also supported the arts in Hutchinson in a variety of ways, including the city's public art program. For
example Buzz served on the Public Arts Commission in its infancy and starting last year Citizens Bank began
sponsoring a Sculpture Stroll pad in the new Citizens Bank and Trust Park.
In the first Sculpture Stroll year when Buzz was serving on the Public Arts Commission, "Slapshot" by Judd Nelson of
Wayzata was one of the pieces submitted for consideration. While not chosen for display that year, I remember Buzz
commenting on how he thought that would look nice at the arena. Over the years I have heard that he has mentioned
that piece to others.
Fast forward to the present and Slapshot was part of the 2019 Sculpture Stroll. The Public Arts Commission would
like to ask the City Council to approve the purchase of Slapshot as a token of appreciation for Buzz's support of the
youth hockey and skating programs and the arts, and place it by the entrance of the east arena as Buzz envisioned
back in 2013. The Hutchinson Hockey Association is also excited to participate in this project in honor of Buzz for all
he has done for HHA, hockey and the arena.
The costs and funding sources are included on the attached document.
BOARD ACTION REQUESTED:
Approve the purchase of "Slapshot" using Community Improvement and Public Art Funds and install the sculpture by
the entrance to the east arena in appreciation of Buzz Burich.
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: No
Included in current budget: Yes
PROJECT SECTION:
Total Project Cost: $ 7,850.00
Total City Cost: $ 6,600.00 Funding Source: PAC ($3,700), Comm Improv Fund ($2,900)
Remaining Cost: $ 1,250.00 Funding Source: HHA ($1,000) Other ($250)
"Slapshot" Sculpture Project
Item
Cost
Comm
Improv
Fund
Public
Arts
Fund
Hutch
Hockey
Assoc.
Other
Donation
Total
Sculpture
$6,900 *
$2,450
$3,450
$1,000
$6,900
Concrete Pad
$250 (estimated)
$100
$150
$250
Plaque/Signage
$700 (estimated)
$350
$250
$100
$700
Total
$7,850
$2,900
$3,700
$1,000
$250
$7,850
* After the 25% commission has been subtracted.
EDA Board Meeting
Video / Conference Call
11:30 AM Wednesday, July 22nd, 2020
MEETING MINUTES
Members present in bold.
EDA Board Members
Mike McGraw
Jonny Block
Mike Cannon
Corey Stearns
Daron Vanderheiden
Chad Czmowski
Mary Christensen
Jeremy Carter
Staff
Miles Seppelt, EDA Director
Matt Jaunich, City Administrator
Andy Reid, Finance Director
Maddie Newcomb, EDA Program Manager
I. Call to Order
Meeting called to order at 11:31 AM.
II. Review Agenda
III. Review Minutes
a.
b.
June 171h Finance Team meeting
M/S/P: Stearns, Czmowski to approve the minutes as written
June 24th EDA Board Meeting
Economic Development Authority
Financial Summary as of June 2020
Operations
Cash Available
$148,866
Reserved
$56,736
Unreserved
$91,239
Economic Development Loan Fund
Cash Available
$70,554
Ashwill Industries Balance
$6,050
Zephyr Wind Services
$94,798
Laser Dynamics Balance (forgivable)
$23,000
Innovative Foam Balance (forgivable)
$14,355
Advances to other funds (Enterprise
$283,146
Center)
Downtown Revolving Loan Fund
Cash Available
$579,111
Loans Receivable
$335,849
Capital Assets
$201,329
Total Assets
$1,116,289
MIF Loan Fund
Cash Available
$3,145
MOXY Loan Receivable
$15,240
Enterprise Center Fund
Cash Available
$25,059
SHOPKO TIF District (TIF 4-5)
Cash Available
$185,137
Interfund Loans Receivable
$480,906
MEDICAL CLINIC TIF District (TIF 4-16)
Interfund Loan Payable
$322,661
Passed unanimously.
M/S/P: Block, Cannon to approve the minutes as written. Passed unanimously
IV. Review of EDA Financial Statements
Finance Director Andy Reid provided an update on the EDA financials. (Please refer to table)
M/S/P: Block, Czmowski to approve the financial report as presented. Passed unanimously.
V. Director's Report
A. Marketing Plan: FB = 372, T = 94, Facebook updates = 8, Twitter updates = 8, Website updates = 4.
B. Business recruitment / expansions — Staff provided an update on recent prospects and ongoing
conversations.
C. Solar Project — HUC will bring to their Board meeting next week, looking at a 600-700kw system, self -
funded as opposed to a PPA. Could add a smaller scale system in the future for residential use. If the
HUC board gives approval, project will move forward with an RFP and design process. Project will be
able to fit on one site, (most likely the EDA's 3-acre lot) which will eliminate some infrastructure costs
associated with multiple locations. More updates next month.
D. EDA Website — hoping to have finished by the end of July.
E. County Economic Development — meeting to be held in August to discuss possibility of bringing in a
consultant for strategic planning / roadmap creation.
VI. Crow River Area Redevelopment — Status & Plan
A. Overview & Updates on status of EDA Redevelopment activities
■ Discussion on EDA/City investment into the former Cenex site, and Medical Clinic site. Recap of
redevelopment options and additions to Franklin Avenue block, which includes HUC electric vehicle
charging station, potential trail extension to Cedar Park, and using FEMA grant to remove three
houses. Currently talking with developers for both sites.
A. Consider acquisition of Franklin Avenue House
■ County is consolidating their group homes.
■ EMV is $180,000, 6 bed 3 bath home built in 1900 on .332 acres.
■ Possible redevelopment options include row houses or small commercial building.
■ Rationale to purchase:
o Eliminate blight
o Control how the site gets redeveloped.
o Identified in our downtown plan.
o Supports surrounding redevelopment activities.
■ Funding:
o Redevelopment TIF (25 years, captures new property taxes from redevelopment, need to
"front" dollars from somewhere else)
o Downtown RLF
o Partner with City, 50/50
o Combination of above.
■ Committee formed to oversee negotiations
M/S/P: Cannon, Stearns to approve proceeding with negotiations for the acquisition of the Franklin Avenue House.
Passed unanimously.
VII. Recommendation to City Council on Job Creation Fund for 3M
■ 3M is applying to the State's (DEED) Job Creation Fund.
■ Project would include renovations, site improvements & new machinery. Expansion of existing
building by 10,000 square feet also a possibility.
■ Will produce 10 new jobs in the next 3 years, paying $20 - $29 / hour.
■ Job Creation Fund application requires a resolution of support from the community.
■ This comes at no cost to the City of Hutchinson, just strictly to show support of the project.
M/S/P: McGraw, Vanderheiden to approve the recommendation of the resolution of support for 3M. Passed
unanimously.
Vill. CARES Act Business Assistance Program
■ Federally funded business assistance program
■ Proposed $750k allocated to the EDA for a small business assistance program.
■ A draft concept has been brought forward, still need to refine it and bring to the City Council meeting
next week.
IX. Grant & Loan Program Applications
Sign & Awning Grant Program
Junk-N-Treasures — Scott Jaster
37 Main Street North
$920
M/S/P: Czmowski, Block to approve the sign and awning grant application. Passed unanimously.
X. Other Business — NONE
XI. Set Next Meeting — 11:30 AM Wednesday, August 261h, 2020.
XII. Adjourn —With no further business, the meeting was adjourned at 12:32 pm.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager