cp06-14-22HUTCHINSON CITY COUNCIL
MEETING AGENDA
TUESDAY, JUNE 14, 2022
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 — Harvest Mission
(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) Proclamation — Lester Schuft Week
PUBLIC COMMENTS
(This 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 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) Council Workshop of May 24, 2022
(b) Regular Meeting of May 24, 2022
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 Engineering Services Agreement for the Edmonton Avenue and
Montreal Street Intersection Improvements Preliminary Design
(b) Consideration for Approval of Change Order No. 2 — Letting No. 2, Project No. 20-02 (Trunk Hwy
22-7 & Montana Street Improvements)
(c) Claims, Appropriations and Contract Payments
PUBLIC HEARINGS — 6:00 P.M.
CITY COUNCIL AGENDA - June 14, 2022
8. REVIEW AND ADOPTION OF THE 5-YEAR CAPITAL IMPROVEMENT PLAN AND
AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION STREET RECONSTRUCTION
BONDS
(a) Consideration for Approval of Resolution No. 15464 - Resolution Approving the Adoption of the
City's Five -Year Street Reconstruction Plan and Authorizing the Issuance of General Obligation
Street Reconstruction Bonds
COMMUNICATIONS RE UESTS AND PETITIONS
e purpose o this portion o the agenda is to provi e the ounci with information necessary to craft wise policy.
Includes items like monthly or annual reports and communications from other entities)
9. PRESENTATION OF 2021 YEAR END REPORT
UNFINISHED BUSINESS
NEW BUSINESS
10. APPROVE/DENY ISSUING MASSAGE LICENSE TO SAMANTHA HOVDA LOCATED AT 21
MAIN STREET NORTH SUITE 5
11. APPROVE/DENY UPDATED EMPLOYEE UNIFORM AND CLOTHING POLICY
12. APPROVE/DENY ORDINANCE NO. 22-829 - AN ORDINANCE AMENDING CHAPTER 112 -
LIQUOR REGULATIONS (FIRST READING)
GOVERNANCE
(The purpose o t zis 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)
13. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) Hutchinson Utilities Commission Minutes from April 27, 2022
MISCELLANEOUS
14. STAFF UPDATES
15. COUNCIL/MAYOR UPDATE
ADJOURNMENT
2
u
HUTCHINSON
A CITY ON PURPOSE.
PROCLAMATION
WHEREAS, on April 22, 2022, Lester Schuft was inducted into the Minnesota Music Hall of Fame; and
WHEREAS, music has been a part of Mr. Schuft's life as he began playing drums and trumpet at the age
of seven; and
WHEREAS, Mr. Schuft has owned, operated, and performed with Lester Schuft and The Country
Dutchmen Band for over 63 years; and
WHEREAS, Mr. Schuft has made more than 300 recordings, including 16 records in a variety of different
formats including vinyl, 8-track tapes, cassettes, CDs and DVDs; and
WHEREAS, Mr. Schuft has taught many people to play the trumpet and helped countless more find
instruments to play expanding his love of music to future generations; and
WHEREAS, Mr. Schuft has performed for many notable people, including at the Minneapolis Aquatennial
Queen's Dance, for Hubert H. Humphrey when he ran for President, for the pep band that played for
the Minnesota North Stars, and for more than 40 years on KEYC-TV Bandwagon Show and on RFDTV
among other shows; and
WHEREAS, locally, many know Lester Schuft for his work he has done at KDUZ/KARP as an Account
Executive, a job he started after he retired from a 30-year career as a dentist.
NOW, THEREFORE, I, Gary Forcier, Mayor of the City of Hutchinson do hereby proclaim the week of
June 13-20, 2022 as:
""Lester Schuft Week"
in the City of Hutchinson, Minnesota in recognition of the Lester's induction into the Minnesota Music
Hall of Fame and for his local contribution to the music scene, which benefited many within the
Hutchinson area.
IN WITNESS WHEREOF, I have hereunto set my hand this 14th day of June, 2022.
Gary T. Forcier, Mayor
City of Hutchinson, Minnesota
HUTCHINSON CITY COUNCIL
2023 BUDGET KICKOFF
MINUTES
TUESDAY, MAY 24, 2022 - 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, Pat May, Dave Sebesta and Chad Czmowski. Others present were: Matt Jaunich,
City Administrator, Andy Reid, Finance Director and other city directors.
2023 BUDGET KICKOFF REVIEW
2. 2023 Budget Kickoff
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that today's
workshop is to begin the 2023 budgeting season. Mr. Jaunich noted that setting the annual budget
is one of the biggest policy decisions of the City Council. The City's budget documents drive the
work of the city and are the forces behind achieving the City's Mission Statement. Mr. Jaunich
reviewed the City's mission statement, vision statement, the six core areas of focus which include
public safety, health & recreation, transportation, economic development, environment and good
government. Mr. Jaunich spoke about statements identified in the City's strategic plan to be
completed by 2023. Those statements included wanting to be known as a destination place for
recreation, art and leisure; wanting to have a growing, diverse economy with a skilled workforce;
wanting to have adequate, affordable housing for all; wanting to have welcoming and safe city
facilities to service current and future generations; wanting to have cost effective, reliable and
sustainable energy and practices; wanting to have high quality, multi -modal transportation and
infrastructure systems; wanting to have active citizen engagement, participation and involvement
and wanting to have fiscally responsible management to serve community needs. Mr. Jaunich
also reviewed five long-term goals the Council should consider every budget season. Those goals
include: 1. What should future tax levies look like? 2. What levels of services should the City
perform and provide in the future? 3. What is an acceptable level of debt? 4. What is our level of
investment in technology and equipment, and what period of payback is acceptable? 5. What are
our future infrastructure needs (roads, utilities, buildings, etc.) and how are we going to pay for
them?
Mr. Jaunich noted that the purpose of today's workshop is to review the budget calendar that has
been established as well as review historical data and items that staff has identified as
items/concerns that need to be addressed. Staff would also like to review the Fleet and Facility
Plans and how those are established and get direction from the Council on what they would like
to see during the 2023 budget preparation season. Mr. Jaunich noted that there are three ways to
approach a budget — either staff driven, Council driven or a combination of the Council working
with staff.
Mr. Jaunich reviewed tax rate comparisons of Hutchinson with other McLeod County cities as
well as with other regional center city rates. Hutchinson is the second lowest in the county and
ranks the fifth highest amongst regional centers. Mr. Jaunich spoke about the price of
government which is how many cents for every dollar earned is going to pay for City services,
excluding electric and gas utilities. Hutchinson is at approximately 2.4% for a total cost of
government which is rather comparable to other regional centers. Mr. Jaunich provided data on
economic comparisons, the 10-year tax rate trend, the 10-year total tax levy trend, the total
market value history, the total taxable market value history and the total tax capacity history. Mr.
Jaunich explained that the City's tax rate is determined by the tax levy and tax capacity and tax
capacity is determined by the market value. The City's modest tax increases over the past ten
years have been offset by large increases in the city's market values. Since 2018, total market
values have exceeded a billion and are the highest in the history of the City. 2022 values
increased by 15.9% over 2021. Taxable values are starting to come back and the 2022 report
shows values increasing by 12%, this on top of a 6.9% in 2021 and 3.7% in 2020. Tax increases
without value increases end up having a negative effect on the tax rate. The valuation changes
over the past few years have shifted more of the City tax burden onto residential properties.
While commercial and industrial properties likely will see a tax decrease as their valuations have
remained flat or had minor changes. As values increase, the market value homestead credit
decreases, impacting residential tax bills. The City's market value increases have outpaced our
tax levy increases, lowering our tax rate. Mr. Jaunich further reviewed historical budget numbers
including the tax levy from the last five years and tax levies as a percentage.
Mr. Jaunich then provided a very preliminary general fund budget for 2023. This includes wages
and benefits expected to increase by 2.7%. There is upward pressure on costs and borrowing will
be more expensive. Other expenditures are expected to remain relatively flat. A current look has
a 3.5% levy increase to balance the budget. LGA is assumed at a minimal increase for 2023.
There is expected to be about a $37,000 increase from Hutchinson Utilities Commission. All
other revenues are at 2022 budgeted amounts. Revenues are expected to remain relatively flat. A
1% tax levy increase is equal to $56,175. Mr. Jaunich presented a preliminary general fund five-
year budget. Mr. Jaunich provided a list of things to think about when establishing the 2023
general fund budget — such as program changes — need for increase/decrease?; enterprise fund
transfers to the general fund; the last year of phasing of HSA employer contributions into the
general fund; analysis of certain line item projections; performance increase percentages;
fleet/facility funding; funding of wages and benefits; inflation impacts; payroll allocations
(general vs. enterprise); final funding for a new police station; continued discussion on general
staffing levels and service level needs/wants; appropriate CIP funding and needs; state budget
agreements and the American Rescue Act Plan money. Mr. Jaunich spoke about use of LGA
funds. He noted that the City is set to receive $2,702,860 in LGA in 2023 which is an increase of
$34,450 from 2022. He noted that 50% goes to the general fund and 50% goes to various aspects
of the capital improvement fund. Capital Projects Fund is for various projects currently not
designated. He noted that 2023 will be the fourth year of the Playground Replacement Fund of
$50,000. He also noted that 2023 will be the second year of a 50150 split with LGA between the
CIP and the general fund. Mr. Jaunich also reviewed historical LGA numbers.
Mr. Jaunich then reviewed the debt management plan. He noted that the big impact is the new
police station. He also noted that 2022 was the first increase in the debt levy since 2016. The
2023 increase is projected to be at about 2.5%. He explained that increasing interest rates will
impact future debt decisions and rising roadway costs may put pressure on increasing the debt tax
levy. He also explained that special assessment rates need to be reviewed and the City still has
future debt needs for heavy equipment and fire trucks.
Mr. Jaunich also reviewed major projects scheduled in 2023. These include: completion/opening
of a new police station; HATS storage building/fuel site; potential splash pad; various streets;
various improvements at Creekside; other equipment/vehicle replacements; water & wastewater
and other facility improvements and other projects.
Mr. Jaunich then provided an update on Facility Planning. Mr. Jaunich explained the process
used by the Facility Committee for projects. This includes using a Facility Inventory and Facility
Condition Index (FCI) with department heads and/or the facility manager. Inventory is compiled
by using the FCI, possible projects are ranked based on the FCI and overall need, obtain bids for
projects, determine how many projects can be achieved, award bids and complete the work. Mr.
Jaunich explained that the Facility Committee is composed of nine staff members. Mr. Jaunich
also explained the project prioritization criteria used which include public health, safety and
welfare; facility preservation; facility condition index; facility utilization; and energy
conservation. Facility assessment criteria includes envelope, roof, HVAC, lot/structure,
electrical, interior, efficiency and mechanical. Mr. Jaunich also spoke more about the Facility
Condition Index and the scoring used. He also reviewed the facility plan budget, the facility
funding plan, the playground funding plan and the playground replacement plan.
Mr. Jaunich then provided an update on the Fleet Committee. Mr. Jaunich explained that the
objective of the fleet policy is to reduce ongoing expenses and replacement costs by addressing
acquisition, use, maintenance and disposal of vehicles and equipment. The Fleet Committee is
comprised of eight staff members and meet at least twice a year to review and recommend
replacements and to review current year purchases and dispositions. The Committee also meets
as needed to address immediate needs/opportunities. Mr. Jaunich spoke about acquisition
procedures, disposition, utilization, maintenance, reporting and policy review. Mr. Jaunich noted
that the Committee uses a Vehicle Condition Index (VCI) which is a point system measurement
used to assess the condition of each vehicle or piece of equipment. Annual replacements ideally
shall consider the worst VCI scored, however the VCI alone does not automatically trigger a
replacement. Departments are expected to demonstrate the operational need for a replacement.
He also noted that since the VCI is a measure of current condition, the fleet committee uses
service life, VDI and other factors when prioritizing replacements in the 5-year CIP. Mr. Jaunich
reviewed the VCI factors used which include service age, miles or hours, utilization, reliability,
maintenance and repair costs, condition and safety concerns. Mr. Jaunich explained the fleet
inventory and what the general fund accounts for and what the enterprise funds account for. Mr.
Jaunich spoke about the average annual replacement cost and funding of light fleet and heavy
fleet replacements. Mr. Jaunich noted that the committee's focus for 2022 was to review
availability through state contracts and local dealers due to supply issues; review inflationary
impact on replacement costs and the current funding shortfall for city fleet; discuss delaying
replacements for non -critical vehicles/equipment; and analyze and discuss hybrid and electric
vehicles in the current economy.
Mr. Jaunich then reviewed the various current City fund balances. Mr. Jaunich noted that the
target cash balance for each fund is based on 50% of the 2022 budgeted operating expenses plus
the 2022 debt service payments. It is a measure of liquidity and the ability of the enterprise fund
to pay for its short-term obligations. Future capital needs and debt service are not taken into
consideration when looking at the target cash balance. Mr. Jaunich also reviewed special projects
fund balances which include the Community Improvement Fund, Capital Projects Fund and the
Public Sites Fund.
Mr. Jaunich also reviewed a list of staff concerns or items in need of being addressed. These
include: rest of the police station funding/debt impact; what is the economy of the city going to
look like 3, 6, 12 months from now; how are we going to handle the spending of the ARPA
funds; growth of salaries/benefits; long term funding sources for heavy equipment and addressing
the city's fleet funding needs; increasing of construction/replacement costs; improvements for
Creekside production; long term plan for refuse and source separated program; impact of
water/wastewater, storm rate study; selling of City assets; interest rates/inflation; funding for
facilities; special assessment rates and funding for a splash pad.
Mr. Jaunich asked the Council's thoughts/ideas on the 2023 budget: 1. tax levy goal? — 0%,
moderate increase, or significant increase; 5-year budget plan called for an annual general levy
increase of 6%; "very early look" calls for something around 3.5-4.5%, 2. Any services Council
would like to see provided and/or increased/decreased in 2023? — Park & Rec, streets, equipment,
etc., 3. Is there a specific project/item the Council would like to see budgeted for and/or done in
2023? — park/facility improvements, housing, infrastructure, "Think Strategic Plans", etc., 4. Any
fee/rate/transfer changes to look at in 2023? — utilities, licenses, rentals, programs, park
dedication, etc.
Mayor Forcier asked about sales at Creekside. Mayor Forcier asked about the aquatic center and
season pass sales. Council Member Christensen spoke about the importance of installation of
security cameras in some parks and the campground. Council Member May agreed. Council
Member Christensen also suggested considering potentially installing more electric car charging
stations. Mr. Jaunich noted that he believes Hutchinson Utilities Commission has plans to install
some car charging stations over the next several years. Mr. Jaunich also noted that ARPA funds
may be available for installation of security cameras throughout the parks system.
Council Members expressed that their desire would be to keep the tax levy increase between 3.5-
4%.
3. Adjournment
Motion by Christensen, second by May, to adjourn the workshop at 5:10 p.m. Motion carried
unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator
HUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, MAY 24, 2022
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
Motion by Czmowski, second by May, to approve agenda as presented. Motion carried unanimously.
2. INVOCATION — Faith Lutheran 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)
A moment of silence was held in lieu of the invocation.
3. PLEDGE OF ALLEGIANCE
4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
�a) Proclamation — Poppy Day — May 27, 2022
b) Resolution No. 15460 — Resolution Accepting $1540.00 Donation from Various Donors to Purchase
Windscreens at Park Elementary Courts
Motion by Christensen, second by Sebesta, to approve Resolution Nos. 15460. Motion carried
unanimously.
PUBLIC COMMENTS
(Th 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 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) Special Meeting of May 9, 2022
(b) Regular Meeting of May 10, 2022
Motion by May, second by Sebesta, to approve minutes as presented. Motion carried unanimously.
CONSENT AGENDA
(The items ist(,or 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
CITY COUNCIL MINUTES - May 24, 2022
(a) Consideration for Approval of Resolution No. 15462 — Resolution Approving State of Minnesota
Master Partnership Program
(b) Consideration for Approval of Amending South Park Water Tower Lease Agreement With Midwest
Wireless LLC
(c) Consideration for Approval of Change Order No. 14 — Letting No. 3, Project No. 21-03
(Wastewater Treatment Facility Headworks Improvements)
(d) Consideration for Approval of Resolution No. 15463 — Resolution Authorizing the City of
Hutchinson Application for LCCMR Grant Funds for the Restoration and Access Improvements to
Otter Lake
(e) Consideration for Approval of Agreement with Amplify for Change for Services Provided within
MPCA Grant Project at Creekside Soils
(f) Consideration for Approval of Gambling Premises Permit Application for Hutchinson Hockey
Association Inc. at River House Kitchen + Drinks Located at 122 Main Street South
(g) Consideration for Approval of Afterthought Summer Kickoff Event on June 4, 2022, at Masonic
West River Park
(h) Consideration for Approval of Issuing Temporary Liquor License to Hutchinson Jaycees June 16-
18, 2022, at Les Kouba Parkway
(i) Consideration for Approval of Issuing Temporary Liquor License to Minnesota Pottery Festival on
July 30-31, 2022, at Masonic West River Park
(j) Consideration for Approval of Agreements with Independent School District 423
i. Grounds Maintenance
ii. Use of Facilities
iii. Burich Arena
(k) Claims, Appropriations and Contract Payments — Register A
Motion by Christensen, second by Czmowski, to approve consent agenda L Motion carried
unanimously.
8. APPROVAL OF CONSENT AGENDA II
(a) Claims, Appropriations and Contract Payments — Register B
Motion by May, second by Sebesta, with Forcier and Czmowski abstaining, to approve consent
agenda IL Motion carried unanimously.
PUBLIC HEARINGS — 6:00 P.M. - NONE
2
CITY COUNCIL MINUTES - May 24, 2022
COMMUNICATIONS REQUESTS AND PETITIONS
e purpose o this portion o the agenda is to provide the ounci with information necessary to craft wise policy.
Includes items like monthly or annual reports and communications from other entities)
UNFINISHED BUSINESS
NEW BUSINESS
9. APPROVE/DENY RESOLUTION NO. 15461 — RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ORDER AN ADVERTISEMENT FOR BIDS ON THE NEW POLICE
STATION — AV PROJECT
Pete Filippi, Contegrity Group, presented before the Council. Mr. Filippi explained that the AV project
for the new police facility is ready to go out for bids with a bid opening scheduled for June 16, 2022.
The current estimate for the project is $260,000.
Motion by Czmowski, second by Christensen, to approve Resolution No. 15461. Motion carried
unanimously.
Mr. Filippi provided an update to the Council on the police facility project as well as an update on the
ice arena project.
10. APPROVE/DENY RESOLUTION NO. 15459 — RESOLUTION APPROVING THE
IMPLEMENTATION OF THE LABOR AGREEMENT BETWEEN THE CITY OF HUTCHINSON
AND MINNESOTA PUBLIC EMPLOYEES ASSOCATION REPRESENTING HUTCHINSON
POLICE DEPARTMENT POLICE OFFICERS AND THE MEMORANDUM OF AGREEMENT
ALLOWING EMPLOYEES TO BID SHIFTS ON A SENIORITY BASIS
Matt Jaunich, City Administrator, explained that this is the union contract for the police officers group.
All those on the negotiation committee are comfortable with it and is similar to the agreement with the
sergeants.
Motion by Christensen, second by Czmowski, to approve Resolution No. 15459. Motion carried
unanimously.
11. CONSIDERATION FOR APPROVAL OF ISSUING MASSAGE LICENSE TO MICHELLE
NYBAKKE OF UNDER PRESSURE MASSAGE LOCATED AT 246 MAIN STREET SOUTH
Motion by May, second by Czmowski, to approve issuing massage license to Michelle Nybakke of
Under Pressure Massage. Motion carried unanimously.
12. APPROVE/DENY SETTING COUNCIL WORKSHOP ON JULY 12, 2022, AT 4:30 P.M. TO
REVIEW THE 2021 AUDIT REPORT
Motion by Czmowksi, second by May, to approve setting Council workshop for July 12, 2022, at 4:30
CITY COUNCIL MINUTES May 24, 2022
p.m. to review 2021 audit report. Motion carried unanimously.
GOVERNANCE
(The purpose 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)
13. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) Sustainability Advisory Board Minutes from March 21, 2022
(b) Library Board Minutes from March 28, 2022
(c) Hutchinson Utilities Commission Minutes from March 30, 2022
(d) Public Arts Commission Minutes from April 13, 2022
(e) Hutchinson Housing & Redevelopment Authority Board Minutes from April 19, 2022
(f) City of Hutchinson Financial Report and Investment Report for April 2022
MISCELLANEOUS
14. STAFF UPDATES
John Olson, Public Works Manager, informed the Council that mosquito spraying will be monitored but
will not begin as scheduled tomorrow due to the cold temperatures.
Lynn Neumann, PRCE Director, presented before the Council. Ms. Neumann provided an update to the
Council on activities at the aquatic center such as purchasing of season passes and staffing. The paddle
board/kayak rentals will also begin this Friday. All flowers were planted m the planters in the downtown
area today. Ms. Neumann also provided an update on the splash pad design project and noted that public
feedback is being sought.
Matt Jaunich — Mr. Jaunich noted that candidate filing closes May 31, 2022, at 5:00 p.m. Seats to file for
are Council Member Seat 1, Council Member Seat 2 and Mayor.
15. COUNCIL/MAYOR UPDATE
Mary Christensen — Council Member Christensen announced that she will be retiring from the City
Council and will not be seeking re-election this Fall.
16. CLOSED SESSION PURSUANT TO MINNESOTA STATUTE §13D.05, Subd. 3(c) TO
DISCUSS SALE OF REAL PROPERTY LOCATED AT 715 JEFFERSON STREET SE
Motion by May, second by Czmowski, to convene into closed session at 6:01 p.m. Motion carried
unanimously.
Motion by May, second by Christensen, to reconvene into open session at 6:19 p.m. Motion carried
unanimously.
ADJOURNMENT
Motion by Czmowski, second by May, to adjourn at 6:20 p.m. Motion carried unanimously.
0
HUTCHINSON CITY COUNCIL Cfeyaf
Request for Board Action 7A =-2�7
Agenda Item: Agreement for the Edmonton Ave. & Montreal St. Intersection Preliminary Design
Department: PW/Eng
LICENSE SECTION
Meeting Date: 6/14/2022
Application Complete N/A
Contact: Kent Exner
Agenda Item Type:
Presenter: Kent Exner
Reviewed by Staff ❑
Consent Agenda
Time Requested (Minutes): 0
License Contingency NIA
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
As discussed at a past Resource Allocation Committee meeting, City staff has identified the Edmonton Avenue and
Montreal Street intersection as being a potential candidate for a roundabout implementation (based on a past
conceptual/technical analysis). Thus, a Federal Aid funding (2026 MnDOT fiscal year) application was submitted last
fall that resulted in this project nearly being partially funded.
Realizing that significant Federal roadway funding is currently beginning to be allocated to local public agencies, City
staff believes that these intersection improvements could conceivably be delivered in the not -too -distant future if
appropriate funding is awarded to the City. To properly facilitate these funding ambitions, it would be ideal that the
preliminary design efforts (traffic engineering, intersection control evaluation report, design layouts, construction cost
estimate, etc.) commence in order to best position the City for submitting future competitive applications.
At this point, please see the attached Supplemental Letter Agreement from Short Elliott Hendrickson Inc. to complete
the above described preliminary design for a not -to -exceed fee amount of $54,323.00.
BOARD ACTION REQUESTED:
Approval of Supplemental Letter Agreement with SEH Inc.
Fiscal Impact: Funding Source: Engineering Professional Services
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:
Supplemental Letter Agreement
In accordance with the Master Agreement for Professional Services between City of Hutchinson ("Client"), and
Short Elliott Hendrickson Inc. ("Consultant"), effective January 22, 2019, this Supplemental Letter Agreement
dated May 3, 2022 authorizes and describes the scope, schedule, and payment conditions for Consultant's work
on the Project described as: Edmonton Avenue/Montreal Street Roundabout Preliminary Design.
Client's Authorized Representative: Kent Exner, PE
Address: 111 Hassan Street SE
Hutchinson, MN 55350
Telephone: 320.587.5151 email: kexner@ci.hutchinson.mn.us
Project Manager: Erin Jordan, PE
Address: 3535 Vadnais Center Drive
St. Paul, MN 555110
Telephone: 651.256.1054 email: ejordan@sehinc.com
Scope: The Basic Services to be provided by Consultant:
Scope includes preparation of the Edmonton Avenue at Montreal Street Roundabout Design. The project will be
completed in two phases:
• Phase 1: Preliminary Design (this agreement)
o Intersection Control Evaluation Report
0 30% Preliminary Design Layouts and Construction Cost Estimate
• Phase 2: Final Design (to be completed under a subsequent agreement)
0 100% Final Design Plans, Special Provisions, and Construction Cost Estimate
A summary of the Phase 1 scope is included below. Additional details of the work tasks are shown in the attached
Task Hour Budget dated May 3, 2022.
PHASE 1: PRELIMINARY DESIGN
Task 1: Project Management
As Project Manager, Erin Jordan will perform all project management and administrative duties to maintain a
project schedule, monitor costs, and prepare monthly invoices. Erin will be the primary contact responsible for
regular communication and meeting project milestones.
Task 2: Meetings and Involvement
SEH assumes all meetings will be held virtually and will include a kick-off meeting with City Staff and up to four
preliminary design Project Management Team (PMT) meetings, recommended at project milestones. SEH will
schedule coordination meetings with the utility companies in the project area and prepare existing utilities layouts.
The preliminary design phase assumes no public involvement meetings or attendance of City Council meetings.
Task 3: Traffic Engineering
SEH will collect updated vehicle turning movement count data at the intersection using a traffic camera. These
volumes will be compared to the data collected in 2020 and the "COVID adjusted" results. Additionally, recent
crash data will also be evaluated. SEH will perform operations analysis and complete an Intersection Control
Evaluation (ICE) of the intersection using this updated data. SEH will prepare a draft ICE Report and will submit to
Short Elliott Hendrickson Inc. Supplemental Letter Agreement - 1 City of Hutchinson
Affirmative Action, Equal Opportunity Employer (Rev. 04.04.14aa)
the City and MnDOT State Aid for review and comment. A final ICE report will be prepared and submitted
electronically.
No other traffic report or analysis is assumed to be necessary for this project location (i.e. Roundabout
Justification Report).
Task 4: Geotechnical Studies
For the preliminary design phase, SEH will review available as-builts provided by the City and/or soil borings on
file. SEH will identify the need for any additional soil borings and provide a location map to the City to complete
with their soil exploration firm.
It is assumed that SEH will not complete any soil borings or laboratory testing. City will complete the geotechnical
exploration under a separate contract.
Task 5: Survey and Mapping
SEH will conduct research to obtain plat and property ownership records for the study area, complete Gopher
State One call for initial utility coordination, complete topographic survey, including research and limits of existing
right-of-way, easement areas, benchmarks, and ground control.
Task 6: Preliminary Design
SEH will prepare a preliminary layout for approval by the City. The preliminary design will meet all State Aid
design requirements and/or industry accepted requirements of roundabout design, ADA-compliant designs, and
trail design. Preliminary design will include layouts for signing and marking, lighting design, and drainage design.
Construction staging plans will be evaluated and right of way needs will be identified, including permanent right of
way, temporary easements, and drainage/utility easements.
SEH will submit to the City a Preliminary Design Review memorandum, preliminary layout, profiles and sections,
construction limits, preliminary drainage design, and a map of the impacted properties.
Schedule: We will begin our services upon receiving a signed copy of this Agreement with completion of the
preliminary design phase in November 2022. The scope of work and schedule for Phase 2 will be developed
based upon the approved preliminary design.
Payment: The fee is hourly not -to -exceed $54,323 including expenses and equipment. The estimated fee for
each Task is as indicated in the attached Task Hour Budget dated May 3, 2022.
Other Terms and Conditions: Other or additional terms contrary to the Master Agreement for Professional
Services that apply solely to this project as specifically agreed to by signature of the Parties and set forth herein:
None.
\\sp3020-1\projects\i\h\hutch\common\150071 -two roundabouts\draft sla_edmonton_montreal_2022.05.01.docx
Short Elliott Hendrickson Inc. City of Hutchinson
R?7jq_�
By: By:
John odeber , PE
Title: Principal/Clie t Service Manager Title:
By:
Title:
Short Elliott Hendrickson Inc. Supplemental Letter Agreement - 2 City of Hutchinson
(Rev. 04.04.14aa)
Exhibit A-1
to Supplemental Letter Agreement
Between City of Hutchinson (Client)
and
Short Elliott Hendrickson Inc. (Consultant)
Dated May 3, 2022
Payments to Consultant for Services and Expenses
Using the Hourly Basis Option
The Agreement for Professional Services is amended and supplemented to include the following agreement of the
parties:
A. Hourly Basis Option
The Client and Consultant select the hourly basis for payment for services provided by Consultant. Consultant
shall be compensated monthly. Monthly charges for services shall be based on Consultant's current billing
rates for applicable employees plus charges for expenses and equipment.
Consultant will provide an estimate of the costs for services in this Agreement. It is agreed that after 90% of
the estimated compensation has been earned and if it appears that completion of the services cannot be
accomplished within the remaining 10% of the estimated compensation, Consultant will notify the Client and
confer with representatives of the Client to determine the basis for completing the work.
Compensation to Consultant based on the rates is conditioned on completion of the work within the effective
period of the rates. Should the time required to complete the work be extended beyond this period, the rates
shall be appropriately adjusted.
B. Expenses
The following items involve expenditures made by Consultant employees or professional consultants on
behalf of the Client. Their costs are not included in the hourly charges made for services and shall be paid for
as described in this Agreement but instead are reimbursable expenses required in addition to hourly charges
for services:
1. Transportation and travel expenses.
2. Long distance services, dedicated data and communication services, teleconferences, Project Web sites,
and extranets.
3. Lodging and meal expense connected with the Project.
4. Fees paid, in the name of the Client, for securing approval of authorities having jurisdiction over the
Project.
5. Plots, Reports, plan and specification reproduction expenses.
6. Postage, handling and delivery.
7. Expense of overtime work requiring higher than regular rates, if authorized in advance by the Client.
8. Renderings, models, mock-ups, professional photography, and presentation materials requested by the
Client.
9. All taxes levied on professional services and on reimbursable expenses.
10. Other special expenses required in connection with the Project.
11. The cost of special consultants or technical services as required. The cost of subconsultant services
shall include actual expenditure plus 10% markup for the cost of administration and insurance.
The Client shall pay Consultant monthly for expenses.
Short Elliott Hendrickson Inc. Exhibit A-1 - 1 City of Hutchinson
(Rev. 02.06.14)
C. Equipment Utilization
The utilization of specialized equipment, including automation equipment, is recognized as benefiting the
Client. The Client, therefore, agrees to pay the cost for the use of such specialized equipment on the project.
Consultant invoices to the Client will contain detailed information regarding the use of specialized equipment
on the project and charges will be based on the standard rates for the equipment published by Consultant.
The Client shall pay Consultant monthly for equipment utilization.
\\sp3020-1\projects\fj\h\hutch\common\150071 -two roundabouts\exhibit al.docx
Short Elliott Hendrickson Inc. Exhibit A-1 - 2 City of Hutchinson
(Rev. 02.06.14)
Cityof Hutchinson
Preliminary Design of Roundabout at Edmonton Ave and Montreol St
Work Wan Summary and Fee Ertlmore 3-May-22 SEH
Work P,i,dp,l P"j"t M",g" Sr. D,,ig, Po,f. ffic Grad ffk S.—Y., (.IS) '""" If— R111""s Dc,ig, E,girov, D—go Adrom. TOTAL
Tad 1 Project Mam6ement
1.1
Perform project management and administration, track progress and maintain
12
3
15
project schedule, monitor costs and prepare monthly invoices
Perform quality Control functions throughout the project to check and verify the
1.2
2
and products delivered.
2
4
Task 1.0 Subtotal Hours: 2
14
0
0
0
0
0
0
0
0
3
19
Delivembles - Project schedule, Monthly progress reports and invoices, Agendas and meeting minutes/nates for all meetings, and copies of all carrespandence.
T6d2
Publicand A6erxylmoFti rn[
Prepare for and attend a kick-off meeting with City staff. Virtual Meeting with up to
2.1
4 SEH staff attending.
1
4
1
1
7
Prepare for and attend 4 preliminary design PMT meetings. All meetings will be
2.2
virtual with up to 4 SEH staff attending.
4
12
4
4
24
2.3
Utility Coordinon -Coordinate meetings with the utility companies in the project
4
4
4
12
24
area. (Assume uatip to 1 meetings with 2 SEH Staff), Prepare existing utilities layout.
Tosk2.05ubtotal Hours:
5
20
9
5
0
0
0
0
4
12
0
55
Deliverables -Agendas and meeting minutes/pates for all meetings, meeting handouts
Usk Tra16c En6ruseft
3.1
Data col lection - perform intersection cou nts using traffic ca mera. Com pare cu ment
1
16
17
volumes to previous "covid adjusted" results
3.2
Crash analysis - update crash evaluation
1
1
2
4
3.3
Perform operations analysis and intersection control evaluation
1
2
1
4
8
3.4
Prepare Draft Intersection Control Evaluation (ICE) Report
4
2
16
24
46
3.5
Prepare Final ICE incorporating any comments from City and/or MnDOT State Aid
2
1
4
7
Task 3.0 Subtotal Hours:
0
9
4
19
50
0
0
0
0
0
0
82
Deliverables - Intersection Control Evaluation (ICE) Report
T6*41— Geo[edatioI shsu s
Review asbuilts and/or borings on file with City from Previous construction. Identify
4.1
need for any additional soil borings. Provide a location map to City's soil exploration
2
4
6
firm
Soil Borings - Review asbuilts and/or borings on file with City from previous
4.2
construction. Identify need for any additional soil borings. Provide a location map to
City's soil exploration firm.
Task to be completed Geotechnical Exploration firm under separate contract with the City.
4.3
Laboratory Testing- Perform laboratory tests of the soil borings
Task 4.0 Subtotal Hours:
0 0 2 0 0 0 0 0 4 0 0
1 6
Deliverables - Proposed sail baring location exhibit to be provided to City's soil exploration firm
Tads
. and Mappirig
5.1
Research plats and property ownership records
2
2
5.2
GSOC
2
4
6
5.3
Topographic survey
2
24
25
5.4
Create has map and digital terrain model
1
8
3
Task S.OSubtotal Hours:
0
0
1
0
0
6
24
0
8
0
4
43
Deliverables - Existing conditions mapping
Tad6 Preliuft"oe*n
Prepare a preliminary layout for approval by the City, meeting all State Aid, and
6.1
industry accepted requirements of roundabout design. Including, but not limited to,
2
24
8
32
24
90
the following:
o Develop Preliminary layout and concept.
o Ensurefunctionality of the design.
o Analyze the capacity of the roundabout using RODEL and/or VISSIM analysis as
appropriate for 2022 and 2042 design year traffic volumes.
o De sign for acceptable vehicle movement/maneuvers.
o Design for safe pedestrian movements (future trails)
o Design and prepare layout for all signage and pavement markings.
o Develop profile grades and determine limits of construction and Property
impacts.
o Design for appropriate sightlines resulting inadequate clear -view areas.
o Design lighting for vertical luminance of roadway features, pedestrians and signs.
o Identify any construction staging constraints.
o Provide initial guidance to the landscape/streetscape plan in regards to
roundabouts, indicating constraints for sight lines and horizontal and vertical
Ilea
Prepare and submit Preliminary Design Review Brief. This technical review will
fi 2
summarize analysis and design parameters for the roundabout concept.
1
4
5
6.3
Develop Profiles andCross Sections for Preliminary Layouts.
2
8
4
14
6.4
Prepare Preliminary Drainage Design - Based on the preliminary layout, prepare
Preliminary drainage design including: trunk storm sewer locations/sizing and storm
2
24
8
8
42
water treatment pond locations/sizing.
6.5
Identify Right of Way Needs - Including the following:
2
8
10
o Permanent Right of Way.
o Temporary easements.
o Draina eand Utilit Easements.
Task 6.0 Subtotal Hours:
0
3
34
0
8
0
0
24
1 56
36
0
I61
Deliverables -preliminary Design Review Brief, Preliminary Layout, Profiles and5ections, Construction limits, Preliminary Drainage Design, and Impacted Properties Map.
City of Hutchinson
Preliminary Design of Roundabout at Edmonton Ave and Montreal St
Work Plan Summary and Fee Estimate
Ji
3-May-22 SEH
1.0 Project Management
2
14
0
0
0
0
0
0
0
0
3
2.0 Public and Agency Involvement
5
20
9
5
0
0
0
0
4
12
0
3.0 Traffic Engineering
0
9
4
19
50
0
0
0
0
0
0
4.0 Geotechnical Studies
0
0
2
0
0
0
0
0
4
0
0
5.0 Survey and Mapping
0
0
0
3
1
34
0
0
0
8
6
0
24
0
0
24
8
56
0
36
4
0
6.0 Preliminary Design
Total Project Hours
Reimbursables
Project Mileage Costs
Project trips from SEH Hutch
Project trips from SEH Metro
Wetland delineation
Traffic counting trips
Survey trips
Mileage Total
Equipment Costs
Survey Truck
Survey Equipment
Traffic Count Equipment
Equipment Total
Printing/Shipping Expenses
Open House Exhibits
Printing- Plan Sets
Misc, Shipping and Mailing
Printing/Shipping Total
TOTAL ESTIMATED SEH REIMBURSABLE EXPENSES:
Total Labor Cost $52,292.32
Reimbursables
NUMBER
MILES/
TOTAL
OFTRIPS
TRIP
MILES
Per Mile
Costs
10
2
20
0.585
$12
8
150
1200
0.585
$702
0
100
0
0.585
$0
2
150
300
0.585
$176
3
150
450
0.585
$263
$1,152
24 hours at $4.50 per hour $108
24 hours at $30.00 per hour $720
1 Set $50.00 per set $50
$878
0 exhibits $100 each $0
0 Sets $100 each times $0
$0
$2,030
$2,030.45
■ � .
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- t
. -
-`
f
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-
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, - .
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.:
\ zn
| . \ �-� ���.i • k ■�■• _— a�
Edmonton m�m__lk FIGURE_.
$ ° 5E `°-- &_&�tG_pt .
FR
Fs HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Approval of Project Change/Work Orders and Supplemental Agreements
Agenda Item:
Department: PW/Eng
LICENSE SECTION
Meeting Date: 6/14/2022
Application Complete N/A
Contact: Kent Exner
Agenda Item Type:
Presenter: Kent Exner
Reviewed by Staff ❑�
Consent Agenda
Time Requested (Minutes): 0
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA 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. 2 — Letting No. 2/Project No. 20-02 — Trunk Hwy 22-7 and Montana Street
Improvement Project. This Change Order addresses bringing a pedestrian ramp into compliance
resulting in a increase to the Contract in the amount of $24,516.05.
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:
STATE AID FOR LOCAL TRANSPORTATION
anrmrn s
�arrtaewi
Rev. February 2018
SPISAP(s)
133-010-006
MN Project No.
STPF Change Order No.
2
4321 101
Project Location Trunk Hwy 22-7 and Montana Street
Local Agency_ ' City of Hutchinson
Contractor _ Duininck Inc
Address/City/State/Zip _ PO Box 208, Prinsburg, MN 56281
Total Change Order Amount $ 24,516.05
Local Project No. L2P20-02 _
Contract No. L2P20-02
The Engineer has determined that the following provision be added to section 1504 of the special provisions "When
specifications conflict, the MnDOT Standard Specifications for Construction 2018 edition will take precedence over the
EJCDC Specifications."
Estimate Of Cost:
"Group/
funding Item No.
Category
(Include any increases or decreases in contract items. any negotiated or force account items.)
+ or— + or —
Description Unit Unit Price Quantity Amount $
006
2021.501
Mobilization
Lump Sum
$5,380.00
1.0 $5,380.00
006
2104.503
Sawing Concrete Pavement Full Depth
LIN FT
$5.00
63.0 $315.00
006
2104.503
Remove Concrete Walk
SQ YD
$25.00
1.0 $25.00
006
2302.618
Spot Full Depth Repair (Type C1-LV)
SQ FT
$18.75
320.0
$6,000.00
006
2521.618
Concrete Walk
SQ FT
$15.50
10.0
$155.00
006
2631.603
Concrete Curb Design V
LIN FT
$38.00
8.0 1$304.00
006
2563.601
Traffic Control
Lump Sum
$6,533.32
1.0 1$6,533.32
006
2565.602
APS Relocate Push Button
Each
$2,000.00
1.0 $2,000.00
006
2573.502
Storm Drain Inlet Protection
Each
$175.00
9.0 $1,575.00
006
1904.000
Contractor 10% Allowance
Lump Sum
$2,228.73
1.0 $2,228.73
Net Change this Change Order $24,516.05
"Group/funding category is required for federal aid projects
(X ) Is NOT changed I ( ) May be revised as provided in MnDOT Specification 1806
( ) Is Increased by Working Days ( ) Is Increased by Calendar Days
( ) Is Decreased by Working Days ( ) Is Decreased by Calendar Days
Approved by Project Engineer: � Date: June 1, 2022
Print Name: John M Gray, PE Phone: 651-402-4383
Approved by Interim Public Works Director:
Print Name: Je,4, Ovso"
_ Date:
Phone: 3 >,o . 31/ 7 3
Approved by Contractor: Date: _ _
Print Name: Phone:
DSAE Portion: The State of Minnesota is not a participant in this contract. Signature by the
District State Aid Engineer is for FUNDING PURPOSES ONLY and for compliance with State
and Federal Aid Rules/Policy. Eligibility does not guarantee funds will be available.
This work is eligible for: _ Federal Funding _ State Aid Funding _ Local funds
District State Aid Engineer:
Date:
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATE FROM 5/25/22 - 6/14/22
Check Date
------------------
05/20/2022
Check
--------------
EFT
Vendor Name
--------------------------------------------------------------
EFTPS
Description
------------------------------------------------------------------------
Payroll Report 5/1/22 - 5/14/22
Amount
---------------------------
69,753.63
05/20/2022
EFT
Child Support
Payroll Report 5/1/22 - 5/14/22
415.78
05/20/2022
EFT
MN Dept of Revenue
Payroll Report 5/1/22 - 5/14/22
13,595.83
05/20/2022
EFT
Provident Life - Vol Ins
Payroll Report 5/1/22 - 5/14/22
495.31
05/20/2022
EFT
PERA
Payroll Report 5/1/22 - 5/14/22
58,015.95
05/20/2022
EFT
Further HSA
Payroll Report 5/1/22 - 5/14/22
15,051.83
05/20/2022
EFT
Mission Square
Payroll Report 5/1/22 - 5/14/22
4,497.36
05/20/2022
EFT
VOYA
Payroll Report 5/1/22 - 5/14/22
460.00
05/20/2022
EFT
MNDCP
Payroll Report 5/1/22 - 5/14/22
350.00
05/20/2022
103726
Manual Employee Check
Payroll Report 5/1/22 - 5/14/22
16.16
05/20/2022
103727
MNPEA
Payroll Report 5/1/22 - 5/14/22
585.00
05/20/2022
103728
UNUM Life Voluntary
Payroll Report 5/1/22 - 5/14/22
1,207.00
05/20/2022
103729
LELS Union Dues
Payroll Report 5/1/22 - 5/14/22
325.00
05/20/2022
103730
HART
Payroll Report 5/1/22 - 5/14/22
363.32
05/26/2022
103731
HUTCHINSON, CITY OF
AQUATIC CENTER START-UP CASH
1,435.00
06/03/2022
103732
Manual Employee Check
Payroll Report 5/15/22 - 5/28/22
44.33
06/03/2022
103733
Life Ins - NCPERS
Payroll Report 5/15/22 - 5/28/22
272.00
06/03/2022
103734
HART
Payroll Report 5/15/22 - 5/28/22
303.82
06/03/2022
EFT
EFTPS
Payroll Report 5/15/22 - 5/28/22
71,982.03
06/03/2022
EFT
Child Support
Payroll Report 5/15/22 - 5/28/22
415.78
06/03/2022
EFT
MN Dept of Revenue
Payroll Report 5/15/22 - 5/28/22
13,836.66
06/03/2022
EFT
Provident Life - Vol Ins
Payroll Report 5/15/22 - 5/28/22
501.10
06/03/2022
EFT
PERA
Payroll Report 5/15/22 - 5/28/22
57,956.83
06/03/2022
EFT
Further HSA
Payroll Report 5/15/22 - 5/28/22
14,021.05
06/03/2022
EFT
Mission Square
Payroll Report 5/15/22 - 5/28/22
4,497.36
06/03/2022
EFT
VOYA
Payroll Report 5/15/22 - 5/28/22
460.00
06/03/2022
EFT
MNDCP
Payroll Report 5/15/22 - 5/28/22
350.00
06/14/2022
103735
ACE HARDWARE - 1315
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
1,665.60
06/14/2022
103736
VOID
VOIDED CHECK
-
06/14/2022
103737
ACE HARDWARE - 1790
REPAIR & MAINT SUPPLIES - FIRE
173.97
06/14/2022
103738
ACE HARDWARE - 6762
BATTERIES - REFUSE
3.14
06/14/2022
103739
ACHMAN, MICHAEL & TRICIA
UB refund for account: 1-246-1490-2-00
32.76
06/14/2022
103740
ADVANCED ENGINEERING & ENVIRONMENTA
APRIL WWTF & WTP SCADA DESIGN
58,166.03
06/14/2022
103741
ADVANCED HEALTH, SAFETY & SECURITY
SAMPLE TESTING, INSPECT & REPORT - CAP IMPV
400.00
06/14/2022
103742
AMERICAN BOTTLING CO
COST OF GOODS SOLD - LIQUOR HUTCH
196.40
06/14/2022
103743
ANDERSON CHEMICAL COMPANY
SODIUM HYDROSOLFITE -WATER
3,499.90
06/14/2022
103744
ARTISAN BEER COMPANY
COST OF GOODS SOLD - LIQUOR HUTCH
1,840.70
06/14/2022
103745
AUTO VALUE - GLENCOE
EQUIPMENT PARTS - HATS
659.19
06/14/2022
103746
AUTO-CHLOR SYSTEM
MAY DISHWASHER SERVICE
440.00
06/14/2022
103747
B & C PLUMBING & HEATING INC
SERVICE EQUIP - POLICE
950.00
06/14/2022
103748
B&B SPORTS & RV
MOBILE COMMAND POST #12 REPAIR - POLICE
189.58
06/14/2022
103749
BAD RIVER ARTWORKS
2022 SCULPTURE STROLL
1,000.00
06/14/2022
103750
BAILEY NURSERIES INC
2022 FORESTRY STOCK PURCHASE
7,857.50
06/14/2022
103751
BCATRAINING EDUCATION
ALICIA NORTROM REGISTRATION - POLICE
500.00
06/14/2022
103752
BELLBOY CORP
COST OF GOODS SOLD - LIQUOR HUTCH
4,887.57
06/14/2022
103753
BERNICK'S
PAKRS CONCESSION SUPPLIES & LIQUOR COGS
26,608.63
06/14/2022
103754
BOBBING BOBBER BREWING CO
COST OF GOODS SOLD - LIQUOR HUTCH
65.00
06/14/2022
103755
BOLTON & MENK INC.
OTTER & CAMPBELL LAKES DESIGN - STREETS
10,854.00
06/14/2022
103756
BRADLEY SECURITY LLC
LOCK REPAIR -AIRPORT
258.82
06/14/2022
103757
BRANDED SOLUTIONS
T-SHIRTS - WATERPARK
820.35
06/14/2022
103758
BRANDON TIRE CO
MOWERS TIRE REPAIRS - PARKS
169.55
06/14/2022
103759
BRASS FOUNDRY BREWING CO
COST OF GOODS SOLD - LIQUOR HUTCH
741.90
06/14/2022
103760
BRAUN INTERTEC CORP
PVMT MGMT PROG & TH 7/22 CROSSING - STREETS
2,538.50
06/14/2022
103761
BREAKTHRU BEVERAGE
COST OF GOODS SOLD - LIQUOR HUTCH
37,227.10
06/14/2022
103762
BUFFALO CREEK ENTERPRISES
COST OF GOODS SOLD - LIQUOR HUTCH
60.72
06/14/2022
103763
C & L DISTRIBUTING
COST OF GOODS SOLD - LIQUOR HUTCH
80,287.11
06/14/2022
103764
CALLAHAN, SARAH
UB refund for account: 1-295-0050-7-03
103.15
06/14/2022
103765
CANVASWORKS INC
REPAIR SHADE, BUCKLES, STRAPS - WATERPARK
660.00
06/14/2022
103766
CARD SERVICES
SUPPLIES - POLICE
18.57
06/14/2022
103767
CARS ON PATROL SHOP LLC
MISC VEHICLE REPAIRS & SETUPS - MULTIPLE DEPTS
7,832.03
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATE FROM 5/25/22 - 6/14/22
Check Date
------------------
06/14/2022
Check
--------------
103768
Vendor Name
--------------------------------------------------------------
CARTER, ETHAN
Description
------------------------------------------------------------------------
REIMB: SAFETY FOOTWEAR - STREETS
Amount
---------------------------
118.24
06/14/2022
103769
CENTRAL HYDRAULICS
EQUIPMENT PARTS - MULTIPLE DEPTS
559.24
06/14/2022
103770
CENTRAL MCGOWAN
ACETYLENE, HIGH PRESSURE - MULTIPLE DEPTS
436.73
06/14/2022
103771
CHEMISOLV CORP
FERRIC CHLORIDE, FLOCCULENT - WWTP
11,063.96
06/14/2022
103772
CINTAS CORPORATION
SUPPLIES & SERVICE - MULTIPLE DEPTS
371.82
06/14/2022
103773
CLARKE ENVIRONMENTAL MOSQUITO MANAG
MAY MOSQUITO MGMT SERVICE
1,575.00
06/14/2022
103774
COKER COMPOSTING AND CONSULTING
MAY CASP IMPL PROJECT - REFUSE
1,687.50
06/14/2022
103775
CORE & MAIN LP
DUAL PORT TRANSMITTERS - WATER
3,352.66
06/14/2022
103776
CREEKSIDE SOILS
STUMP CHIPS & MULCH - PARKS
2,205.36
06/14/2022
103777
CROW RIVER ATHLETICS
YOUTH SOFTBALL - REC
4,360.00
06/14/2022
103778
CROW RIVER OFFICIALS ASSN
SUMMER ADULT AND YOUTH SOFTBALL - REC
19,345.00
06/14/2022
103779
CROW RIVER WINERY
COST OF GOODS SOLD - LIQUOR HUTCH
1,419.60
06/14/2022
103780
CUSTOM INSTALLATIONS
REPLACE BACKING ROD & CAULK - WATERPARK
370.00
06/14/2022
103781
DANCO COMMERCIAL PAINTERS, INC
EXTERIOR PAINTING AT LIQUOR HUTCH
23,250.00
06/14/2022
103782
DAVE GRIEP CLEANING
WINDOW CLEANING - LIQUOR HUTCH
60.00
06/14/2022
103783
DELEGARD TOOL CO
TORX SET - HATS
144.65
06/14/2022
103784
DEMARAIS, AIDAN
2022 SCULPTURE STROLL
500.00
06/14/2022
103785
DIESEL DYNAMICS LLC
2002 F350: VALVE COVER GASKETS REPAIR - FIRE
1,237.76
06/14/2022
103786
DIRECT PLASTICS
SPLENDRO GRO BLACK MULCH FILM - COMPOST
8,389.22
06/14/2022
103787
DLT SOLUTIONS, LLC
ARCH ENG & CONST COLLECTION RENEWAL - ENG
2,865.52
06/14/2022
103788
DRIVER & VEHICLE SERVICES
BCA BACKGROUND CK: LINNEA YAMNIK - MV
33.25
06/14/2022
103789
DVS RENEWAL
TAB RENEWALS - POLICE
21.75
06/14/2022
103790
E2 ELECTRICAL SERVICES INC
ADD 4 DATA DROPS - REC CTR
941.78
06/14/2022
103791
EBERT, DICK
REIMB: SAFETY FOOTWEAR -AIRPORT
79.99
06/14/2022
103792
EBERT, PAT
REIMB: SAFET FOOTWEAR -AIRPORT
67.99
06/14/2022
103793
ECOLAB PEST ELIMINATION
5/17 PEST CONTROL- MULTIPLE DEPTS
252.03
06/14/2022
103794
ELECTRIC FUSION.COM
2022 SCULPTURE STROLL
1,000.00
06/14/2022
103795
ELECTRO WATCHMAN
DEPOSIT FOR SOFTWARE UPGRADE - MULTIPLE DEPTS
1,017.45
06/14/2022
103796
ELECTRONIC SERVICING
INSTALL NETWORK CABLE - REC CTR
189.85
06/14/2022
103797
ELTON, ANGIE
T-BALL COACHING REFUND - REC
40.00
06/14/2022
103798
EMERGENCY AUTOMOTIVE TECH
LIGHTBAR STRAP KIT SHIPPING - POLICE
6.51
06/14/2022
103799
ERICKSON, SCOTT
REIMBURSE FOR DAMAGED WATCH
45.22
06/14/2022
103800
EVERBRIDGE INC
MASS NOTIFICATION BASE 5/1/22 - 4/30/23 - IT
4,576.37
06/14/2022
103801
EVERETT LAW LLC
CITY LEGAL MATTER
19,353.18
06/14/2022
103802
FARM -RITE EQUIPMENT
NEW PARKS TRAILER & MISC EQUIP PARTS
14,563.71
06/14/2022
103803
FASTENAL COMPANY
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
2,263.07
06/14/2022
103804
FENRICH, TAYLOR
REIMB: SAFETY FOOTWEAR - POLICE
150.99
06/14/2022
103805
FILZEN, MARY
REIMB: PIZZA - MV
27.35
06/14/2022
103806
FIRELAKE MFG LLC
NET LOAN PROCEEDS - EDA
34,650.00
06/14/2022
103807
FIRST ADVANTAGE LNS OCC HEALTH SOLU
DRUG TESTING
99.83
06/14/2022
103808
FIRST CHOICE FOOD & BEVERAGE SOLUTI
COFFEE - CITY CTR
639.20
06/14/2022
103809
FLAGSHIP RECREATION
REPAIR & MAINT SUPPLIES - PARKS
1,544.11
06/14/2022
103810
FLOORCOAT MIDWEST, LLC
BASEMENT WALL & SIDEWALK - STORMWATER
3,400.00
06/14/2022
103811
FOLEY, JACOB
UB refund for account: 3-530-6640-0-05
82.86
06/14/2022
103812
FORCIER, COLE
REIMB: SAFETY FOOTWEAR - WWTP
169.99
06/14/2022
103813
FOSTER MECHANICAL
PLUMBING SERVICE, WATER HEATER LEAK - REC CTR
419.96
06/14/2022
103814
FRED HOLASEK & SON INC
TREES - PARKS
4,466.06
06/14/2022
103815
FRYBERGER LAW FIRM
TIF DISTRICT NO 4-22
1,925.00
06/14/2022
103816
FUZE LOGISTICS SERVICES USA INC
CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS
6,125.00
06/14/2022
103817
GRAINGER
EQUIPMENT PARTS - MULTIPLE DEPTS
1,315.55
06/14/2022
103818
GREEN EARTH LAWN CARE INC
MAY LAWN MAINT - EDA
388.13
06/14/2022
103819
HAGEMAN, BRITTANY
UB refund for account: 1-480-7050-5-01
102.38
06/14/2022
103820
HALQUIST, DAVID
REIMB: SAFETY FOOTWEAR - BLDG INSPECTION
175.00
06/14/2022
103821
HALVORSON, PATRICK
UB refund for account: 3-060-1230-3-03
163.35
06/14/2022
103822
HANSON & VASEK CONSTRUCTION
CONCRETE REPAIRS - MULTIPLE DEPTS
20,175.00
06/14/2022
103823
HAWKINS INC
CHEMICALS & SUPPLIES - MULTIPLE DEPTS
14,005.92
06/14/2022
103824
HEARTLAND AG SYSTEMS
VALVES - HATS
75.06
06/14/2022
103825
HEIMAN FIRE EQUIPMENT
NEW RESCUE 8 - DRI-DEK MATTING - FIRE
323.95
06/14/2022
103826
HILLYARD / HUTCHINSON
OPERATING SUPPLIES - MULTIPLE DEPTS
1,019.72
06/14/2022
103827
HJERPE CONTRACTING
FRANKLIN HOUSE DEMO
13,990.00
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATE FROM 5/25/22 - 6/14/22
Check Date
------------------
06/14/2022
Check
--------------
103828
Vendor Name
--------------------------------------------------------------
HOLT-PETERSON BUS
Description
------------------------------------------------------------------------
6/29 CHS FIELD SR TRIP
Amount
---------------------------
695.00
06/14/2022
103829
HOMETOWN SPORTS & APPAREL
T-SHIRTS - REC
1,854.20
06/14/2022
103830
HUTCHFIELD SERVICES INC
JUNE JANITORIAL SERVICES - HATS
1,485.75
06/14/2022
103831
HUTCHINS, GAVIN
REIMB: SAFETY FOOTWEAR - PARKS
114.99
06/14/2022
103832
HUTCHINSON CHAMBER & TOURISM
APRIL 2022 LODGING TAX
15,033.24
06/14/2022
103833
HUTCHINSON CO-OP
APR FUEL & SERVICES - MULTIPLE DEPTS
17,911.46
06/14/2022
103834
HUTCHINSON LEADER
MAY ADVERTISING - MULTIPLE DEPTS
1,268.42
06/14/2022
103835
HUTCHINSON WHOLESALE #1550
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
226.97
06/14/2022
103836
HUTCHINSON WHOLESALE #1552
REPAIR & MAINT SUPPLIES - PARKS
710.38
06/14/2022
103837
HUTCHINSON, CITY OF
ATM CASH
4,000.00
06/14/2022
103838
I.M.S. SHARPENING SERVICE
CATCH BASIN REPAIR - STORMWATER
2,100.00
06/14/2022
103839
INGSTAD BROADCASTING
MAY ADVERTISING - MULTIPLE DEPTS
600.00
06/14/2022
103840
INNOVATIVE OFFICE SOLUTIONS LLC
LINERS, TOWELS, TP - LIQUOR HUTCH
264.80
06/14/2022
103841
INTERSTATE BATTERY SYSTEM MINNEAPOL
BATTERIES - HATS
828.20
06/14/2022
103842
ISD #423
GYM RENTAL FOR VB TOURNAMENTS - REC
2,952.25
06/14/2022
103843
JACK'S UNIFORMS & EQUIPMENT
SECURITY ROCER PATCHES & INSIGNIAS - POLICE
292.19
06/14/2022
103844
JAMES, TIMOTHY
2022 SCULPTURE STROLL
500.00
06/14/2022
103845
JEFFERSON FIRE & SAFETY INC
ENFORCER FIREBULL FLOURINE FREE - FIRE
2,500.00
06/14/2022
103846
JERRY'S TRANSMISSION SERVICE
TOW: LESTER PRAIRIE TO HPD - POLICE
275.00
06/14/2022
103847
JLR GARAGE DOOR SERVICE
NEW GARAGE DOOR FOR HATS WASH BAY
10,205.00
06/14/2022
103848
JOHNSON BROTHERS LIQUOR CO.
COST OF GOODS SOLD - LIQUOR HUTCH
60,601.06
06/14/2022
103849
JUST US ENTERPRISES LLC
UB refund for account: 2-070-5150-9-03
4.86
06/14/2022
103850
JUUL CONTRACTING CO
REPAIRS & LOCATES - MULTIPLE DEPTS
10,861.75
06/14/2022
103851
KAMRATH SCULPTURE
2022 SCULPTURE STROLL
1,000.00
06/14/2022
103852
KERI'S CLEANING & HANDYMAN SERVICES
MAY CLEANING - MULTIPLE DEPTS
5,381.06
06/14/2022
103853
KIEPER, DEB
REFUND FOR HANGAR
810.00
06/14/2022
103854
KIESLER'S POLICE SUPPLY INC.
SUPER SOCK BEAN BAG ROUNDS - POLICE
183.75
06/14/2022
103855
KODRU-MOONEY
CHAINWHEEL & MOUNT TO VALVE - WWTP
407.72
06/14/2022
103856
KRANZ LAWN & POWER
SLEEVES - STREETS
29.88
06/14/2022
103857
KRIS ENGINEERING
EDGE, STRAPS, CURBRUNNER - STREETS
6,567.05
06/14/2022
103858
L & P SUPPLY CO
EQUIPMENT PARTS - MULTIPLE DEPTS
85.45
06/14/2022
103859
LANDSKAPINGS
REPAIR & LANDSCAPING MAINT- MULTIPLE DEPTS
11,483.00
06/14/2022
103860
LANDWEHR CONSTRUCTION INC
L1P22-01 2022 PAVEMENT MGMT PROGRAM #2
486,085.22
06/14/2022
103861
LAWSON PRODUCTS INC
MEGA-CRETE SLURRY KITS - STORMWATER
1,075.94
06/14/2022
103862
LEAGUE OF MN CITIES -INS TRUST
Q3 WORKER COMP & AUDIT PREMIUMS
93,846.00
06/14/2022
103863
LEENHOUTS INC
2022 SCULPTURE STROLL
1,000.00
06/14/2022
103864
LEFT COAST LOGISTICS
FREIGHT FOR TREES - STREETS
3,377.00
06/14/2022
103865
LENNES, RICK
UB refund for account: 3-845-2350-8-02
17.32
06/14/2022
103866
LIND, TERESA
2022 SCULPTURE STROLL
1,000.00
06/14/2022
103867
LITCHFIELD BUILDING CENTER
TRAINING SITE CASEMENT EGRESS WINDOW - FIRE
302.06
06/14/2022
103868
LITTLE CROW SHOOTING SPORTS
PMC .223 - 1,000 ROUNDS - POLICE
1,650.00
06/14/2022
103869
LOCHER BROTHERS INC
COST OF GOODS SOLD - LIQUOR HUTCH
80,944.35
06/14/2022
103870
LOGIS
JUNE APPLICATION SUPPORT-GIS BASE & SERVICES
13,778.12
06/14/2022
103871
LYNDE & MCLEOD INC.
MAY YARDWASTE - COMPOST
449.70
06/14/2022
103872
M-R SIGN
SIGN & WRENCH - HATS
208.82
06/14/2022
103873
MARCO TECHNOLOGIES, LLC
5/20 - 6/20'22 PRINTING CONTRACT - VARIOUS DEPTS
691.39
06/14/2022
103874
MARCO TECHNOLOGIES, LLC
5/20 - 6/20'22 PRINTING CONTRACT - VARIOUS DEPTS
2,369.05
06/14/2022
103875
MAVERICK WINE
COST OF GOODS SOLD - LIQUOR HUTCH
844.04
06/14/2022
103876
MCALLISTER, AUTUMN
UB refund for account: 2-350-3070-2-03
4.24
06/14/2022
103877
MCLEOD COUNTY RECORDER
RECORD NOTARY PUBLIC - MV
20.00
06/14/2022
103878
MCLEOD COUNTY RIDERS 4-H CLUB
5/16 - 5/21 COMPOST BAG DISTRIBUTION
500.00
06/14/2022
103879
MEI TOTAL ELEVATOR SOLUTIONS
JUN/JUL SERVICE - LIBRARY
208.17
06/14/2022
103880
MENARDS HUTCHINSON
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
1,240.86
06/14/2022
103881
VOID
VOIDED CHECK
-
06/14/2022
103882
MINI BIFF
RENTALS- MULTIPLE DEPTS
707.37
06/14/2022
103883
MINNESOTAASSN OF CEMETERIES
2022 DUES - CEMETERY
136.00
06/14/2022
103884
MINNESOTA DEPT OF HEALTH
Q2 2022 STATE FEE - WATER CONNECTIONS
11,766.00
06/14/2022
103885
MINNESOTA PETROLEUM SERVICE
LEAK DETECTOR, ALARM CERTS - MULTIPLE DEPTS
1,371.00
06/14/2022
103886
MINNESOTA VALLEY TESTING LAB
LAB SAMPLE TESTING - MULTIPLE DEPTS
2,627.10
06/14/2022
103887
MN DEPT OF TRANSPORTATION
2022 ARM ER AGREEMENT - POLICE
1,214.02
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATE FROM 5/25/22 - 6/14/22
Check Date
------------------
06/14/2022
Check
--------------
103888
Vendor Name
--------------------------------------------------------------
MOORE, ERIC
Description
------------------------------------------------------------------------
REIMB: SAFETY FOOTWEAR - WWTP
Amount
---------------------------
175.00
06/14/2022
103889
MUELLERLEILE, ALIA
REIMB: SAFETY FOOTWEAR - STREETS
155.00
06/14/2022
103890
MYGUY INC.
CONCENTRATE, GRAPE X - HATS
1,624.00
06/14/2022
103891
NELSEN, TIM
2022 SCULPTURE STROLL
1,000.00
06/14/2022
103892
NELSON-RUDIE & ASSOCIATES INC
DESIGN WORK FOR BURICH ARENA EAST RINK
3,265.20
06/14/2022
103893
NORTH AMERICAN SAFETY INC
GLOVES - PARKS
33.97
06/14/2022
103894
NORTHERN STATES SUPPLY INC
EQUIPMENT PARTS - HATS
139.77
06/14/2022
103895
NOVACARE REHABILITATION
EMPLOYMENT TESTING - POLICE
185.00
06/14/2022
103896
NTOA
ERIC KILIAN MEMBERSHIP - POLICE
35.00
06/14/2022
103897
NUSSTRUCK & EQUIPMENT
LUBE, FILTERS, COOLANT -STREETS
289.00
06/14/2022
103898
NUVERA
JUNPHONESERVICES- MULTIPLEDEPTS
5,726.33
06/14/2022
103899
NYGAARD INDUSTRIAL PAINTING INC
SANDBLAST, PREP/PRIME & PAINT -STREETS
225.00
06/14/2022
103900
ODP BUSINESS SOLUTIONS LLC
OFFICE SUPPLIES - MULTIPLE DEPTS
182.99
06/14/2022
103901
PAULSON, JOHN
REIMB: MN APWA CONF - ENG
504.34
06/14/2022
103902
PAUSTIS WINE COMPANY
COST OF GOODS SOLD - LIQUOR HUTCH
4,543.50
06/14/2022
103903
PEOPLEREADY INC
CREEKSIDE TEMP STAFFING
2,368.00
06/14/2022
103904
PHILLIPS WINE & SPIRITS
COST OF GOODS SOLD - LIQUOR HUTCH
26,493.58
06/14/2022
103905
PIKE TRANSFER LLC
CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS
3,925.00
06/14/2022
103906
PIONEER ATHLETICS / PIONEER MFG
MARKING PAINT- PARKS
842.00
06/14/2022
103907
POHLEN, THOMAS
UB refund for account: 2-930-9750-2-00
25.97
06/14/2022
103908
POSTMASTER
POSTAGE - UB BILLING
1,585.00
06/14/2022
103909
POWER/MATION DIVISION INC
SENSORS, RIGHT ANGLE -COMPOST
259.39
06/14/2022
103910
PREMIUM WATERS
MAY SERVICES - PARKS
125.49
06/14/2022
103911
PRO AUTO MN INC
2009 SILVERADO: REPAIR TPMS SENSORS - FIRE
83.85
06/14/2022
103912
PRO-TEC DESIGN INC.
2022 EXACQ SOFTWARE SUPPORT- LIQUOR HUTCH
390.00
06/14/2022
103913
QUADE ELECTRIC
REPAIRS & SUPPLIES - MULTIPLE DEPTS
261.20
06/14/2022
103914
QUALITY FLOW SYSTEMS
SERVICE CHECK MIXER - WWTP
250.00
06/14/2022
103915
QUILL CORP
TOWELS, BLEACH, EXPO CLEANER - WATERPARK
437.57
06/14/2022
103916
RAMY TURF PRODUCTS
TURF MIX, GRASS - MULTIPLE DEPTS
1,436.50
06/14/2022
103917
RATH RACING INC
TANKER - EXHAUST, SHUTE, PRESSURE WASHER - FIRE
227.50
06/14/2022
103918
RED BULL DISTRIBUTION COMPANY, INC.
COST OF GOODS SOLD - LIQUOR HUTCH
157.00
06/14/2022
103919
REINER ENTERPRISES INC
CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS
12,428.63
06/14/2022
103920
RICE LAKE CONSTRUCTION GROUP
1_31321-03 WWTF HEADWORKS IMPVS #11
219,388.99
06/14/2022
103921
RICE LAKE CONSTRUCTION GROUP
REJECT PIPING IMPROVEMENTS
70,571.70
06/14/2022
103922
RIEMER, DAVID
2022 SCULPTURE STROLL
1,000.00
06/14/2022
103923
RNL TRANSPORT LLC
CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS
39,838.68
06/14/2022
103924
RUNNING'S SUPPLY
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
1,415.75
06/14/2022
103925
SAM'S TIRE SERVICE
LOADERS: TIRE REPAIRS - CREEKSIDE
587.11
06/14/2022
103926
SC SUPPLY COMPANY LLC
AIRFIELD MARKERS -AIRPORT
982.25
06/14/2022
103927
SCHLAUDERAFF IMPLEMENT CO.
0-RINGS, FLANGE, HOSE, TUBE -AIRPORT
687.25
06/14/2022
103928
SCHMELING, TYLER
REIMB: SAFETY FOOTWEAR - POLICE
200.00
06/14/2022
103929
SCHUETTE, DONOVAN
REIMB: SAFETY FOOTWEAR - STREETS
175.00
06/14/2022
103930
SHAW, KAREN
MAY CLASSES - SR CTR
150.00
06/14/2022
103931
SHI INTERNATIONAL CORP
IPADS - PRCE ADM IN
905.58
06/14/2022
103932
SHORT-ELLIOT-HENDRICKSON, INC
NE AREA DVLP & GROWTH STUDY - ENG
11,666.13
06/14/2022
103933
SIMONSON LUMBER CO
SONO TUBE - ROTARY BASKETBALL HOOP
143.90
06/14/2022
103934
SITEONE LANDSCAPE SUPPLY
HERBICIDE, FERTILIZER - PARKS
5,174.77
06/14/2022
103935
SMALL LOT MN LLC
COST OF GOODS SOLD - LIQUOR HUTCH
810.24
06/14/2022
103936
SOUTHERN WINE & SPIRITS OF MN
COST OF GOODS SOLD - LIQUOR HUTCH
30,707.15
06/14/2022
103937
SOUTHWEST INITIATIVE FOUNDATION
FY2022 SWIF APPROPRIATION - EDA
6,000.00
06/14/2022
103938
STANDARD PRINTING-N-MAILING
MAY UTILITY BILLS & POSTAGE - MULTIPLE DEPTS
2,495.67
06/14/2022
103939
STANLEY ACCESS TECH LLC
DOOR REPAIR - LIBRARY
247.50
06/14/2022
103940
STAPLES ADVANTAGE
OFFICE SUPPLIES - MULTIPLE DEPTS
672.43
06/14/2022
103941
STAR TRIBUNE
SUBSCRIPTIONS - MULTIPLE DEPTS
436.60
06/14/2022
103942
STEPP MFG CO INC
BURNER FINAL ASSY- STREETS
1,450.38
06/14/2022
103943
STIFTER, WAYNE
UB refund for account: 2-635-1060-0-00
279.23
06/14/2022
103944
STONEBROOKE ENGINEERING INC
JEFFERSON ST IMPV THRU 4/30/22 - ENG
19,164.04
06/14/2022
103945
STONY CREEK LANDSCAPES, INC.
2022 SCULPTURE STROLL
1,000.00
06/14/2022
103946
STREICH, TRAVIS
REIMB FOR SEWER LINE REPAIRS
3,471.74
06/14/2022
103947
SUMMER LAKES BEVERAGE LLC
COST OF GOODS SOLD - LIQUOR HUTCH
1,197.00
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATE FROM 5/25/22 - 6/14/22
Check Date
------------------
06/14/2022
Check
--------------
103948
Vendor Name
--------------------------------------------------------------
SYN-TECH SYSTEMS
Description
------------------------------------------------------------------------
SOFTWARE UPGRADE - HATS
Amount
---------------------------
400.00
06/14/2022
103949
SYSCO WESTERN MN
CONCESSION SUPPLIES - WATERPARK
3,355.90
06/14/2022
103950
TERMINAL SUPPLY CO
EQUIPMENT PARTS - HATS
909.11
06/14/2022
103951
TITAN MACHINERY
EQUIPMENT PARTS - MULTIPLE DEPTS
1,334.70
06/14/2022
103952
TRI COUNTY WATER
BOTTLE WATER DELIVERY - MULTIPLE DEPTS
263.15
06/14/2022
103953
TRI-STATE BOBCAT
CLUTCH KIT, BEARINGS -STREETS
1,396.19
06/14/2022
103954
TRUGREEN AND ACTION PEST CONTROL
SPRING, SUMMER, FALL +GRUB CONTROL- CEMETERY
6,149.85
06/14/2022
103955
TRUSTED COACHES
SAFETY TRAINING, BACKGROUND CKS - REC
470.00
06/14/2022
103956
UNIQUE PAVING MATERIALS
UPM COLD MIX -STREETS
1,371.60
06/14/2022
103957
UNITED PACKAGING & DESIGN
UVI BLACK PE - COMPOST
18,339.00
06/14/2022
103958
UNUM LIFE INSURANCE CO OF AMERICA
JUNE LIFE INSURANCE
3,339.73
06/14/2022
103959
USA BLUE BOOK
SUPPLIES & EQUIPMENT - MULTIPLE DEPTS
947.68
06/14/2022
103960
VERIZON WIRELESS
APR 24 - MAY 23 PHONE SERVICES
3,294.66
06/14/2022
103961
VIKING AUTOMATIC SPRINKLER COMPANY
EMERG SERVICE: RISER PIPE FROZE & BUSTED - EV CTR
7,150.00
06/14/2022
103962
VIKING BEER
COST OF GOODS SOLD - LIQUOR HUTCH
27,504.30
06/14/2022
103963
VIKING COCA COLA
COST OF GOODS SOLD - LIQUOR HUTCH
836.25
06/14/2022
103964
VIKING SIGNS & GRAPHICS INC
GIRL SCOUT PARK OUTLOOK SIGN
185.00
06/14/2022
103965
VINOCOPIA INC
COST OF GOODS SOLD - LIQUOR HUTCH
2,321.68
06/14/2022
103966
VIVID IMAGE
ANNUAL MGMD WEBSITE PLAN - EDA
1,170.00
06/14/2022
103967
WALTERS, CASEY
UB refund for account: 2-350-0500-9-01
132.22
06/14/2022
103968
WASTE MANAGEMENT OF WI -MN
MAY REFUSE TO LANDFILL
18,198.76
06/14/2022
103969
WATERVILLE FOOD & ICE
COST OF GOODS SOLD - LIQUOR HUTCH
994.95
06/14/2022
103970
WELCOME NEIGHBOR
NEW RESIDENT VISITS - LIQUOR HUTCH
60.00
06/14/2022
103971
WINE COMPANY, THE
COST OF GOODS SOLD - LIQUOR HUTCH
2,578.00
06/14/2022
103972
WINE MERCHANTS INC
COST OF GOODS SOLD - LIQUOR HUTCH
3,785.70
06/14/2022
103973
WOLD ARCHITECTS & ENGINEERS
NEW POLICE DEPT FACILITY THRU 5/31/22
34,503.36
06/14/2022
103974
YEPEZ, VICTOR
2022 SCULPTURE STROLL
1,000.00
06/14/2022
103975
ZELLER STUDIO
2022 SCULPTURE STROLL
1,000.00
06/14/2022
103976
ZEP SALES AND SERVICE
ZEP BLUSKY CLEANER - HATS
111.76
06/14/2022
103977
ZIEGLER INC
GIll NDER PARTS -COMPOST
402.10
06/14/2022
103978
ZOLL MEDICAL CORPORATION
AED DEFIB ELECTRODES - FIRE
66.72
Total - Check Register A:
$ 2,317,554.16
cR HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Resolution Approving The Adoption Of The City's 5-Year Street Reconstruction Plan And
Agenda Item: Authorizing The Issuance Of General Obligation Street Reconstruction Bonds
Department: Finance
LICENSE SECTION
Meeting Date: 6/14/2022
Application Complete N/A
Contact: Andy Reid
Agenda Item Type:
Presenter: Andy Reid
Reviewed by Staff M
Public Hearing
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OFAGENDA ITEM:
As discussed at the May 10 council meeting, we are unable to utilize the MN Statute 429 bonding
process to finance our 2022 pavement management improvements due to an inadequate level of
special assessments generated on benefiting properties. The statute requires at least 20% of the
total costs to be assessed and our 2022 project is just above 7%. The shortfall is mainly due to a
large portion of the improvements fronting City property at Linden Park. Instead, we will utilize the
MN Statute 475 bonding process, which will transpire as follows:
1. Holding a public hearing (June 14) to discuss and approve the attached 5-year capital
improvement plan, identifying planned street reconstruction needs. We will also ask the city council
to provide preliminary approval for the issuance of General Obligation Capital Improvement Plan
bonds with a principal amount not to exceed $2,150,000 (resolution #15464).
2. A 30-day reverse referendum period starts after the hearing. Voters may submit a petition
signed by at least 5% of the votes cast in the last general election in order to require that the
bonding authorization be subject to a referendum.
3. If no petition is received within the 30-days (July 14), we would sell the bonds at the July 26th
council meeting. The bonds will be issued for a 15-year maturity with the principal and interest paid
semi-annually by the City's debt tax levy and special assessments paid by property owners.
BOARD ACTION REQUESTED:
Approve resolution #15464, adoption the 5-Year Capital Improvement Plan and authorizing the issuance
of general obligation street reconstruction bonds.
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
June 14, 2022
FIVE - YEAR STREET RECONSTRUCTION AND
OVERLAY PLAN:
Fe
HUTCHINSON
A CITY ON PURPOSE
2022 - 2026
'EHLERS
ft LEADERS IN PUBLIC FINANCE
Prepared by:
Ehlers
3060 Centre Pointe Drive
Roseville, Minnesota 55113
BUILDING COMMUNITIES. IT'S WHAT WE DO.
I. INTRODUCTION 2
II. PURPOSE
E
II. STREET RECONSTRUCTION AND OVERLAY 3
PLANNING PROCESS
IV. SROP PROJECT SUMMARY 4
V. FINANCING THE PLAN
5
APPENDIX A: SROP PROJECT COSTS 6
APPENDIX B: FINANCING SOURCES & USES 8
City of Hutchinson, MN
Five -Year Street Reconstruction and Overlay Plan for Bond Issuance
I. INTRODUCTION
In 2002, the Minnesota State Legislature passed into law a bill which
generally exempts city bonds issued under a street reconstruction
program from the referendum requirements usually required for bonding
expenditures. In 2013 the Legislature amended the law to allow
bituminous overlays to be included in the street reconstruction program.
The authorization is contained in Minnesota Statutes, Section 475.58,
subdivision 3b (the "Act").
II. PURPOSE
A street reconstruction program represents a major expenditure of city
funds for the reconstruction or bituminous overlay of public streets. As
defined in the Act, street reconstruction and bituminous overlay projects
may include but are not limited to utility replacement and relocation and
other incidental costs, turn lanes and other improvements having a
substantial public safety function, realignments, other modifications to
intersect with state and county roads, and the local share of state and
county road projects. Except in the case of turn lanes, safety
improvements, realignments, intersection modifications, and local share
of state and county road projects, street reconstruction and overlays do
not include the portion of project costs allocable to widening a street or
adding curbs and gutters where none previously existed.
A Street Reconstruction and Overlay Plan (SROP) is a document
designed to anticipate street reconstruction and overlay expenditures
and schedule them over a five-year period so that they may be financed
in an efficient and cost-effective method. A SROP allows the matching of
expenditures with anticipated income and bond issuance. As potential
expenditures are reviewed, the city considers the benefits, costs,
alternatives and impact on operating expenditures.
The City of Hutchinson, Minnesota (the "City"), believes the street
reconstruction and overlay process, as part of its larger Capital
Improvement Planning process, is an important element of responsible
fiscal management. Major capital expenditures can be anticipated and
coordinated so as to minimize potentially adverse financial impacts
caused by the timing and magnitude of capital outlays. This coordination
of capital expenditures is important to the City in achieving its goals of
adequate physical assets and sound fiscal management. In these
City of Hutchinson, MN
Five -Year Street Reconstruction and Overlay Plan for Bond Issuance 2
financially difficult times good planning is essential for the wise use of
limited financial resources.
The SROP and Capital Improvement Plans are designed to be updated on
an annual basis, as needed. In this manner, they become ongoing fiscal
planning tools that continually anticipate future capital expenditures and
funding sources.
III. THE STREET RECONSTRUCTION AND OVERLAY PLANNING
PROCESS
The City Council (the "Council") annually reviews its capital expenditures
according to their priority, fiscal impact, and available funding as part of
its Capital Improvement Plan (CIP) process. The planning process and
preparation of the CIP begins as part of the City's annual budget
development process. The City staff is instructed to assemble the
specific capital expenditures to be undertaken within the next five years.
The City staff prepares a plan based on the available funding sources.
From this information, preliminary CIP is prepared for public discussion
from citizens and other governmental units. Changes are made based on
that input, and a final plan is established by the Council at year-end.
Over the life of the CIP, once the funding becomes available the
individual capital expenditures can be made as part of individual project
approvals. In subsequent years, the process is repeated as expenditures
are completed and new needs arise.
Street reconstruction and overlay planning occurs separately but
integrated within the CIP process, focusing specifically on street
reconstruction and overlay projects to be financed with general
obligation street reconstruction bonds under provisions of the Act. The
SROP is to describe the identified street reconstruction and overlay
projects, their estimated costs, and any planned reconstruction or overlay
of other streets in the City over the next five years.
For a city to use its authority to finance street reconstruction and
bituminous overlay expenditures with general obligation bonds under the
Act, it must meet the requirements provided therein. Specifically, the city
must hold a public hearing for public input on a SROP. Notice of such
hearing must be published in the official newspaper of the city at least 10,
but no more than 28, days prior to the date of the public hearing. In
addition, the council must approve the SROP and issuance of street
City of Hutchinson, MN
Five -Year Street Reconstruction and Overlay Plan for Bond Issuance 3
reconstruction bonds by a two-thirds majority vote following a public
hearing.
If a petition bearing the signatures of at least 5 percent of the votes cast
in the last municipal general election requesting a vote on the issuance of
bonds is filed with the City Clerk within 30 days after the public hearing,
a referendum vote on the issuance of the bonds shall be required to
authorize the issuance. If the City elects not to submit the question to
the voters, the City shall not propose the issuance of bonds under the Act
for the same purpose for a period of 365 days from the date of receipt of
the petition.
IV. PROJECT SUMMARY
The planned reconstruction of overlay of other streets in the City to be
undertaken with this 2022 to 2026 SROP are listed in full within Appendix
A. The listed projects are subject to the approval of the Council and may
be funded in part, or in whole, with proceeds of bonds issued under the
Act or other designated funds. All other foreseeable capital expenditures
within the City government will be financed through other means
identified within the City's annual budgeting process.
The specific expenditures to be undertaken with this SROP are listed
below and have been submitted for inclusion:
2022 Expenditures
$2,441,762 for various infrastructure improvement projects identified
within the City's Capital Improvement Plan
2023 Expenditures
$3,775,989 for various infrastructure improvement projects identified
within the City's Capital Improvement Plan
2024 Expenditures
$4,186,465 for various infrastructure improvement projects identified
within the City's Capital Improvement Plan
2025 Expenditures
$4,310,906 for various infrastructure improvement projects identified
within the City's Capital Improvement Plan
2026 Expenditures
$3,644,146 for various infrastructure improvement projects identified
within the City's Capital Improvement Plan
City of Hutchinson, MN
Five -Year Street Reconstruction and Overlay Plan for Bond Issuance 4
V. FINANCING THE STREET RECONSTRUCTION PLAN
The total amount of identified expenditures under this SROP is up to
$18,359,268. If these expenditures are to be funded, that amount of
money is anticipated to be generated through the tax levy, municipal
state aid funds, capital projects fund appropriations, grant funds, utility
revenues, special assessments, and the sale of approximately $2,150,000
in principal amount of general obligation street reconstruction plan
bonds in 2022.
In the financing of the SROP, one statutory limitation applies. Under
Chapter 475, with few exceptions, cities cannot incur debt in excess of
3% of the assessor's Estimated Market Value (EMV) for the city. The
City's Pay 2022 EMV is currently $1,222,593,300. Therefore, the total
amount of outstanding debt subject to the limit cannot exceed
$36,677,799. As of June 2022, the City has $7,320,000 of existing
obligations subject to the legal debt limit, leaving over $29.3 million in
capacity.
Under the SROP, the City currently plans to issue up to $2,150,000 in
principal amount of general obligation bonds in the year 2022 to finance
the 2022 Street Improvement and Overlay Projects. The general
obligation bond issue is anticipated to be repaid over a 15-year period
starting in 2023.
The bond sizing in this authorization is based on the project amounts
listed in Appendix A. The proposed general obligation street
reconstruction bonds under consideration and their anticipated
repayment are shown in Appendix B.
Plan Continuation
This SROP should be reviewed as needed by the Council using the
process outlined in this document. Through annual amendment, the
Council reviews proposed expenditures, makes priority decisions, and
seeks funding for those expenditures it deems necessary for the City. If
deemed appropriate, the Council should prepare an update to this SROP
to be used in public proceedings for future general obligation bond
issuance under the Act.
City of Hutchinson, MN
Five -Year Street Reconstruction and Overlay Plan for Bond Issuance 5
APPENDIX A
SROP Project Costs
(Capital Expenditures to be Funded with General Obligation Street
Reconstruction and Overlay Bond Proceeds)
The capital expenditures identified within this SROP are for the City's costs to
conduct various street improvement and overlay projects identified within the
City's Capital Plan for 2022 to 2026, approved December 28, 2021. Up to
$2,150,000 in principal amount of new bond issuance is anticipated to provide the
funding for the designated projects in 2022. Future street reconstruction and
overlay projects beyond 2022 are included for planning purposes only. A plan
identifying the sources of funds, including issuance of bonds, for these projects
will be considered in the future under separate proceedings.
The full list of planned 2022-2026 Street Reconstruction and Overlay Plan (SROP)
Capital Expenditures that may be funded in part, or in whole, with proceeds of
bonds issued under the Act follows.
Project•
ProjectYear
2022 School Rd NW
$
256,242
Century Ave SW
$
340,568
Linden Ave SW
$
803,538
Sunset St. SW
$
717,568
Neal Ave SW
$
323,846
SUBTOTAL $
2,441,762
2023 Dale St. SW
$
1,668,205
Roberts Rd SW
$
1,259,343
Bradford St SE
$
382,767
Sherwood St SE
$
283,852
Elks Dr SE
$
181,822
SUBTOTAL $
3,775,989
2024 Washington Ave W
$
1,241,460
2nd Ave SW
$
180,000
Hassan St
$
960,740
4th Ave S E
$
461,565
1st Ave NE
$
371,900
1 st Ave SE
$
371,900
3rd Ave SE
$
371,900
Grove St SW
$
227,000
SUBTOTAL $
4,186,465
2025 5th Ave S E $
Michigan St SE/NE $
Hilltop Dr NE $
Lindy Ln NE $
Garden Rd NE $
Pauls Rd NE $
Mark Dr NE $
Morningside Dr NE $
Genes Dr NE $
2026 Edmonton Ave SE
Blackbird/Blackhawk/B luejay
McDonald Dr SW
Harrington St SW
Merrill St SW
Orchard Ave SE
Larson St SW
Boulder St SW
Southview Ct SW
Sunset St. SW
Sherwood Cir SE
Boulder Cir SW
City of Hutchinson, r IN
SUBTOTAL $
SUBTOTAL $
667,694
2,236,942
575,684
264,805
238,457
108,602
101,555
76,686
40,481
4,310,906
420,236
102,966
807,619
524,243
516,814
412,533
331,970
176,670
120,501
98,045
87,075
45,474
3,644.146
APPENDIX B
Estimate of Proposed 2022 SROP Bond Issue:
Hutchinson, Minnesota
$2,120,000 General Obligation Bonds, Series 2022A
Assumes Current Market BQ AA- Rates plus 35bps
Estimated Issue Sources And Uses
Dated 08/18/2022 1 Delivered 08/18/2022
Street
Reconstruction
Sources Of Funds
Par Amount of Bonds
$2,120,000-00
Total Sources
$2,120,000.00
Uses Of Funds
Underwriter's Discount Allowance (1.20%)
25,440.00
Allocated Costs of Issuance_ _
21)MI44
Deposit to Project Street Reconstruction Fund
2,072,724.00
Rounding Amount
738.56
Total Uses $2,120,000.00
Estimated Debt Service Schedule
Less:
Assessments
Calculated
Date
Principal
Coupon
Interest
Total P+I
105% of Total
Revenue
Levy
02/01/2023
-
-
-
-
-
-
-
02/01/2024
95,000.00
2.550%
99,224.72
194,224.72
203,935.96
22,303.32
181,632.64
02/01/2025
125,000.00
2.650%
65,877.50
190,877.50
200,421.38
21,611.14
178,810.24
02/01/2026
130,000.00
2.750%
62,565.00
192,565.00
202,193.25
20,918.98
181,274.27
02/01/2027
130,000.00
2.800%
513,990A0
1138,990A0
198,439.50
20,226.80
178�212JQ
02/01/2028
135,000.00
2.950%
55,350.00
190,350.00
199,867.50
19,534.64
180,332.86
02/01/2029
140,000.00
3.100%
51,367.50
191,367.50
200,935.88
18,842.46
182,093.42
02/01/2030
140,000.00
3.150%
47,027.50
187,027.50
196,378.88
18,150.28
178,228.60
02/01/2031
145,000.00
3.300%
42,617.50
187,617.50
196,998.38
17,458.12
179,540.26
02/01/2032 _
150,000.00
3.350%
37,832.50
187,832.50
197,224.13
16,765.94
180,458.19
02/01/2033
155,000.00
3.400%
32,807.50
187,807.50
197,197.88
16,073.78
181,124.10
02/01/2034
145,000.00
3.450%
27,537.50
172,537.50
181,164.38
-
181,164.38
02/01/2035
150,000.00
3.500%
22,535.00
172,535.00
181,161.75
181,161.75
02/01/2036
155,000.00
3.550%
17,285.00
172,285.00
180,899.25
180,899.25
02/01/2037
160,000.00
3.600%
11,782.50
171,782.50
180,371.63
180,371.63
02/01/2038
165,000.00
3.650%
6,022.50
171,022.50
179,573.63
179,573.63
Total $2,120,000.00 - $638,822.22 $2,758,822.22 $2,896,763.33 $191,885.46 $2,704,877.87
City of Hutchinson, MN
Five -Year Street Reconstruction and Overlay Plan for Bond Issuance 8
CERTIFICATION OF MINUTES RELATING TO FIVE YEAR STREET
RECONSTRUCTION PLAN AND
GENERAL OBLIGATION STREET RECONSTRUCTION BONDS
Issuer: City of Hutchinson, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting, held on June 14, 2022, at
5:30 o'clock p.m., in the Council Chambers at the Hutchinson City Center.
Councilmembers present:
Councilmembers absent:
Documents Attached:
Minutes of said meeting (pages):
RESOLUTION NO. 15464
RESOLUTION APPROVING THE ADOPTION OF THE CITY'S FIVE
YEAR STREET RECONSTRUCTION PLAN AND AUTHORIZING
THE ISSUANCE OF GENERAL OBLIGATION STREET
RECONSTRUCTION BONDS
I, the undersigned, being the duly qualified and acting recording officer of the public
corporation issuing the obligations referred to in the title of this certificate, certify that the
documents attached hereto, as described above, have been carefully compared with the original
records of said corporation in my legal custody, from which they have been transcribed; that said
documents are a correct and complete transcript of the minutes of a meeting of the governing
body of said corporation, and correct and complete copies of all resolutions and other actions
taken and of all documents approved by the governing body at said meeting, so far as they relate
to said obligations; and that said meeting was duly held by the governing body at the time and
place and was attended throughout by the members indicated above, pursuant to call and notice
of such meeting given as required by law.
WITNESS my hand officially as such recording officer this day of June, 2022.
(SEAL)
Matt Jaunich
City Administrator
4872-9207-9393\3
Councilmember introduced the following resolution (the "Resolution") and
moved its adoption, which motion was seconded by Councilmember
RESOLUTION NO. 15464
RESOLUTION APPROVING THE ADOPTION OF THE CITY'S FIVE
YEAR STREET RECONSTRUCTION PLAN AND AUTHORIZING
THE ISSUANCE OF GENERAL OBLIGATION STREET
RECONSTRUCTION BONDS
BE IT RESOLVED by the City Council (the "City Council"), of the City of Hutchinson,
Minnesota (the "City"), as follows:
Section 1. Background.
1.01. The City is authorized under Minnesota Statutes, Section 475.58, subdivision 3b
(the "Act") to prepare a plan for street reconstruction in the City over at least the
next five years that will be financed under the Act, including a description of the
proposed work and estimated costs, and to issue general obligation bonds to
finance the cost of street reconstruction activities described in the plan.
1.02. Before the issuance of any bonds under the Act, the City is required to hold a
public hearing on the plan and the issuance of bonds thereunder.
1.03. Pursuant to the Act, the City, in consultation with its City engineer, caused
preparation of the Five Year Street Reconstruction and Overly Plan (the "Plan"),
which describes certain street reconstruction, mill, and overlay activities in the
City (the "Projects").
1.04. The City has determined that it is in the best interests of the City to adopt the Plan
and to authorize the issuance and sale of general obligation street reconstruction
bonds pursuant to the Act in a principal amount not to exceed $2,150,000 (the
"Street Reconstruction Bonds"). The purpose of the Street Reconstruction Bonds
is to finance the costs of the Projects described in the Plan.
1.05. On the date hereof, the City Council held a public hearing on the Plan and the
issuance of the Street Reconstruction Bonds, after publication in the City's
official newspaper of a notice of public hearing at least 10 but no more than 28
days before the date of the hearing.
Section 2. Plan Approved; Street Reconstruction Bonds Authorized.
2.01. The City Council finds that the Plan will improve the City's street system, which
serves the interests of the City as a whole, and approves the Plan in the form presented at the
public hearing and on file at City Hall.
102. The City Council authorizes the issuance of the Street Reconstruction Bonds in
accordance with the Plan. City staff, legal counsel and consultants are authorized to take all
4872-9207-9393\3
actions necessary to negotiate the sale of the Street Reconstruction Bonds, subject to the
contingency described in Section 2.03 hereof.
2.03. If a petition requesting a vote on the issuance of the Street Reconstruction Bonds,
signed by voters equal to 5% of the votes cast in the last municipal general election, is filed with
the City Administrator within 30 days after the date of the public hearing, the City may issue the
Street Reconstruction Bonds only after obtaining approval of a majority of voters voting on the
question at an election. The authorization to issue the Street Reconstruction Bonds is subject to
expiration of the 30-day period without the City's receipt of a qualified petition under the Act, or
if a qualified petition is filed, upon the approving vote of a majority of the voters voting on the
question of issuance of the Street Reconstruction Bonds.
2.04. City staff are authorized and directed to take all other actions necessary to carry
out the intent of this resolution.
Attest:
Mayor
City Administrator
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember , and upon vote being taken thereon, the following
Councilmembers voted in favor thereof:
and the following Councilmembers voted against the same:
whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor,
which was attested by the City Administrator.
4872-9207-9393\3
'
HUTCHINSON CITY COUNCIL
Request for Board Action
2021 Year End Report
Agenda Item:
Department: Administration
LICENSE SECTION
Meeting Date: 6/14/2022
Application Complete N/A
Contact: Matt Jaunich
Agenda Item Type:
Presenter: Matt Jaunich
Reviewed by Staff ❑�
Communications, Requests
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
City staff is happy to present to the City Council our second annual comprehensive annual city
report for the year ending 2021. The intent of this report is to measure the City's "performance"
on an annual basis. Information contained within the report is data and information from January
1 to December 31, 2021.
The report is really a collection of department year end reports into one document. It is our goal
to build upon this report in the years to come. Staff is always open for thoughts and
recommendations from the City Council to build upon this report.
BOARD ACTION REQUESTED:
No action. Presentation of the year-end report.
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: New Bu
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
REP
]UN E 2022
Annual City Report for Year Ending 2021
City of Hutchinson
M"
HUTCHINSON
-'Y bk PukkOgi
CITY OF HUTCHINSON
2021 ANNUAL REPORT
TABLE OF CONTENTS
OVERVIEW 2
EXECUTIVE SUMMARY
3
Our Story
5
Broad Indicators
7
Community Surveys
12
Organization of the City
1
Grants and Donations
16
City Partnerships
13
Awards and Recognitions
24
DEPARTMENTS
Administration
25
Economic Development
27
Finance
4
Fire
54
Housing & Redevelopment Authority
59
Human Resources
67
Information Technology (IT)
72
Parks/Recreation/Community Education
75
Planning/Zoning/Building
98
Police
106
Public Works
121
2021 Annual Report
Overview
The City of Hutchinson's Annual Report provides an overview of the services provided over the
previous year. This report is attempting to measure the "performance" of the City on an annual basis.
All data and information referenced is accurate from January 1, 2021 through December 31, 2021. To
the extent possible, information is compared with the previous year(s) to provide a base from which
to measure services and accomplishments.
Organization of Report
This annual report is arranged according to the City's organizational department model, with data
reported by the major departments within the City. This report is intended to show:
• Alignment of City services with the City's Core Values (end statements), Mission Statement
and Vision Statement
Priorities within the annual budget
Trend data impacting City services
Limitations of Performance Measure
Applying performance measure in the public sector presents a number of limitations:
Information can be subjective and highly dependent upon each individuals source used
There is no single measure of success, such as profit in the private sector
Data is not all-inclusive, a precise science, a quick fix nor the only tool available for decision -
making
Even with these limitations, there is still a need to measure performance and develop standards for
comparing Hutchinson to other cities. The City has historically used the other 18 outstate small
regional centers' as market comparisons for a variety of data points.
Performance measurement can mean different things to different people. One of the goals of this
report is to tell a story about whether or not the City and its activities are achieving the objectives of
and if progress is being made toward attaining city policies and/or goals. Another goal of this report is
to provide the Hutchinson City Council with information to help them determine if their desired results
are being accomplished.
' Albert Lea, Alexandria, Austin, Bemidji, Brainerd, Cloquet, Fairmont, Faribault, Fergus Falls, Hibbing, Marshall, New Ulm,
Northfield, Owatonna, Red Wing, Willmar, Winona, Worthington
2
2021 Annual Report
Executive Summary
I'm pleased to present to you the second annual City of Hutchinson Annual Report. It is the City's
intention to produce this report on an annual basis so that the City Council, residents and businesses
of Hutchinson can be informed of and engaged in city services and the measurement of how the City
is performing. We continue to build upon this report and have a goal of showing more "performance -
related" measures in the future. This report still doesn't necessarily tie performances into the City's
core values (end statements) with a goal to build upon that in future reports.
It continues to be an interesting time in local government. While 2020 was a year of survival and
perseverance as we worked our way through COVID-19, 2021 was a year of hope with building
towards the future. While it appears that we are seeing the "light at the end of tunnel" when it comes
to COVID-19, I have a lot of hope for the future and I continue to remain excited for what is in store
for Hutchinson.
The City's average monthly unemployment rates continue to remain low with an average monthly rate
of 3.7% in 2021. These rates continue to remain lower than the State (3.9%) and Federal (5.4%)
percentages. Vacancy rates for our market rate rental units also continue to be at historic lows and
our median sales price of our residential homes continue to rise, having increased from $186,000 last
year to $235,000 tin 2021, the ninth straight year of an increase. Home resales continue to remain
high and home foreclosures (lack thereof) continue to remain low. While home resales continue to
remain high, we have seen a tighter housing market, which has resulted in new homes continuing to
be constructed in town. We issued 35 building permits for new homes in 2021, representing the
eighth straight year where we have issued 20 or more new home permits.
2021 also brought the conclusion of phase four and five of the Highfield Apartments and the next
phase at Century Court West Townhomes. Along with the new homes being built, work also finished
up on Tiger Elementary and work began on a new a new Police Station. We have had 256 new rental
units open up over the past five years with an additional 36 units currently under construction. Along
with the rental units, we have built over 155 new homes over the past five years and the 2020 census
showed our population increased by 419 people to 14,599 (3% from 2010). The City has added over
$235 million in new value to the community over the past 5 years as well, and we are anticipating
continued growth next year.
Z Source: Minneapolis Area Realtors
2022 looks to be just as exciting as 2021 and should continue the recent trend of investments within
the community. 2022 should see the completion of the Century Avenue townhome development along
with a new business opening up in the old Best Buy location (Harbor Freight Tools). Along with the
new police station, there are currently five other redevelopment projects taking place in downtown
Hutchinson that could be completed in 2022. Those projects include the remodeling of 101 Park
Place, the Riverhouse Kitchen (old Hutch Cafe), the Jorgensen Hotel, the Gold Coin Restaurant, along
with MITGI expanding into the old Shopko building.
The City is also expecting work to continue and hopefully finish on the new police station and the
remodeling of West Elementary in 2022. The City is also expecting work to begin on a remodeled
Burich Arena that will be similar to the work done on the rec center last year. On top of this, work
may begin on a Civil Air Patrol building and a seventh downtown project which will be a new housing
development at the old medical clinic site. The City will continue to market the Industrial Park and we
are hoping that some of the work that is taking place with our growth area study will spark interest in
additional commercial/industrial or residential growth. We anticipate continued growth in new home
construction as well with a hot housing market.
One of the goals I have for this City is for it to be the best and most attractive small regional center in
outstate Minnesota. In an effort to be the most attractive small regional center, it is our responsibility
to create an atmosphere that is conducive for growth and achievement throughout the community.
This report is a culmination of the effort staff put forth in 2021 in providing quality services hopefully
at a cost of government similar to, or less than, comparable outstate regional centers. As we look to
the year ahead of us, I know this community will continue to be resilient and I strongly believe that
the year ahead of us will be better than the previous. There is a lot to be excited about and I look
forward to what the future holds!
Matt Jaunich
City Administrator
2021 Annual Report
Our Story
In late 2019, the City of Hutchinson embarked on a community branding initiative, along with a
marketing strategy to assist city staff and elected officials in promoting the city of Hutchinson to new
residents and young families along with prospective businesses and developers. The study was to
provide insights regarding current perceptions of the City and help to drive the recruitment of new
residents and young families; energize current residents and instill a sense of pride of the community;
and position the City as a desirable place for relocation and redevelopment to increase new resident
attraction and economic growth. Below is the City's brand story or message.
Brand Messaee
On a late November afternoon standing on the crest of a hill overlooking the Crow River, three
Hutchinson brothers knew they had found what they had been looking for: the perfect place to
establish a community that stood for the values and human rights they had been expounding for
years through their popular music. Only now they could actually put those lyrics into practice by
advocating for principles, such as the abolition of slavery and women's equal rights through laws
enacted on the town's very first day. So it was, long before the rest of the country would come
around to their forward -thinking ideas, Hutchinson, Minnesota established a reputation for blazing
trails as a town ahead of its time.
More than 160 years later, Hutchinson still stands apart as a city with a vision for the future. A city
that thinks and acts differently because of its solid commitment to plans and decisions that first and
foremost improve the quality of life — the economic, physical, social, emotional and environmental
wellness for all its residents, workers and visitors.
Like the Crow River, generations of wisdom have flowed through this area's rich history, gleaning and
drawing deeply from its abundant woods, wildlife and surrounding lakes. Here is a community shaped
not only by the natural beauty and forces that come together only here in this part of rural
Minnesota, but also by its legacy and its people.
Somewhere between small town and big city, farm community and metropolis, lies Hutchinson.
Though a small town by some standards, it's more big city in its vision for the future and ability to get
things done. You'll find small town charm in its historic downtown where quaint shops, local
businesses, a cozy coffee shop and restaurants line Main Street. But you'll also find big city appeal in
an exceptional school system and a vibrant arts and cultural community that includes the Hutchinson
Center for the Arts, Hutchinson Theater Company, the Minnesota Pottery Festival, Orange
Spectacular, Minnesota Garlic Festival and celebrated RiverSong Music Festival.
A friendly, personalized, supportive approach to doing business, more indicative of a small-town
welcoming spirit is alive and well in this community. Yet, it's also recognized as a pioneering, highly
productive, forward -thinking manufacturing, agricultural and industrial regional hub that finds creative
ways of working with new businesses and entrepreneurs. In fact, Hutchinson is already preparing
tomorrow's workforce today with the state's most ambitious skilled workforce development initiative,
TigerPath, where high school students discover their interests and talents by learning, exploring and
building career and technical skills.
Some cities talk. Hutchinson acts. Wasting no time doing things "because that's the way it's always
been done", over the years the city's leaders have seen the opportunity in challenges instead, acting
decisively on the most efficient, effective solution for all. The fact that they hatched the idea of selling
their own compost is certainly testament to that.
Much can be owed to a local spirit of cooperation and collaboration. And the ability to discern what is
worth saving, such as the State Theater, and what can fall away. Hutchinson is a micropolitan that
has managed to balance growth with preservation. Where development doesn't compromise its
cultural or environmental character. The downtown redevelopment project is a great example of that,
going forward even in the midst of challenging times.
Just as the Hutchinson brothers first recognized, the city's abundant natural resources and beauty
greatly add to a higher quality of life. With hiking, biking and snowmobiling trails, such as the Luce
Line Trail, walking paths, a wildlife sanctuary and access to fishing, boating, kayaking and water
sports on the area's more than 50 lakes, there are ample opportunities to experience Minnesota's
great outdoors right out your back door. Or, as a great escape from bigger cities.
Here you'll find a community confident in itself and its direction. Unwavering in its focus and sense of
mission. With a way of thinking about the world that inspires them to set their sights on noble and
bold, but also achievable goals. This is a city whose marching orders are clear: to serve its people,
commerce and industry with a clear focus, staying on point with intention and purpose. Charting a
better course for the future while still cherishing what is right before us.
The City of Hutchinson
A City On Purpose
MISSION STATEMENT
The City of Hutchinson exists so that
residents, businesses, property owners and
visitors are provided with quality services
and programs that support a safe, healthy,
sustainable and business friendly community
with a small-town atmosphere, for a cost of
government similar to, or less than,
comparable out -state Minnesota Cities
VISION STATEMENT
Our vision for the City of Hutchinson is that
we will continue to be an involved,
progressive and innovative community that
promotes our regional prominence while
preserving our hometown character and
delivering quality, cost-effective services
2021 Annual Report
Broad Indicators
Assessed Market Value
One of the most significant indicators of Hutchinson's success is demonstrated in the consistent
growth in total assessed market value.
$1,300,000,000
$1,200,000,000
$1,100,000,000
$1,000,000,000
$900,000,000
$800,000,000
$700,000,000
$600,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
The total assessed market value of the city increased 11.2% in 2021. Residential values increased
11.1%, commercial/industrial values increased 1.8%, agricultural values decreased 2.1%, and
apartments saw the largest value increase at 40.6%. 2021 was the ninth straight year that the
assessed market value of the City increased.
The bottom years of 2012 and 2013 reflect the "great recession" and values have increased 48%
since 2013; an average of 4.5% each year. Current values are at all-time high for the City. The
market value for each year is determined as of January 1 based on prior year sales. It is anticipated
that the 2022 assessed market values will also show an increase.
In recent years the City has tracked it's "Price of Government" as a means to measure local
government affordability. The "Price of Government" involves examining how much residents pay for
all City services compared to the estimated income in the community. This analysis allows the City to
compare how much residents pay for those municipal services on an annual basis and see how that
amount has changed over time.
The graph below shows the City's price of Government since 2000. The price has been stable
throughout the analysis period, but did increase during the recession to its highest level in 2010.
Since 2010, the price has slowly decreased, indicating that personal income is growing at a faster rate
than the cost of city services.
Data is always a year behind due to the lag in the availability of data from the U.S. Bureau of
Economic Analysis. For 2020, Hutchinson Citizens spent 1.4% of each dollar earned on the day to day
operations of the City and 1.0% on the City's enterprise funds. In total, approximately 2.4% of each
dollar earned by Hutchinson citizens was spent on City services.
Price of Government for the City of Hutchinson
(percent of every dollar earned going to pay for Cityservices, excluding Electric and Gas Uti/ides)
-■+-*Enterprise Funds -no-Governmental Funds -No-Total
3.5% 3.6%
3.0% 3.1% 3.1% 3.2% 3.3Vo 3.3% 3.3% 3.2% 3.2% 3.3% 3.2% 3.2% °
3.0 % 2.8% 2.8% o 0
2.8 /0 2.8 /0 2.7%
2.0% 1.9% 1.9% 1.8% 2.1% 2.0% 2.0% 1.8% 1.9% 7'0% 2.0% 1.9 o 1.9% 1.9°10 0
1.8 /0 1.7% 1.7% 1.7% 1.7% 1.6%
1.4%
1.20% 1.2% 1.4% 1.2% 1.3% 1.3% 1.3% 1.39/b 1.50% 1.6% 1.4% 1.3% 1.3% 1.2% 1.2% 1.1% 1.1% 1.1% 1.1% 1.0%
200020012002200320042005200620072008200920102011201220132014201520162017201820192020
Bond Rating
An important indicate of financial stability is the credit rating assigned by independent rating
agencies.
In 2021, Standard & Poor's (S&P) Rating Services reaffirmed its AA- rating for the City of Hutchinson.
This rating is 4th strongest on S&P's rating scale and identifies the City has having a "stable outlook".
The independent evaluation of a municipalities credit risk is one of the single most important
indicators of prudent financial and administrative management. The evaluation considers many
factors including the local economy, budgetary management, debt load, and budgetary performance.
Poverty Levels and Household Incomes3
3 Poverty and household income data was for 2019 and was obtained from the American Community Survey, available
from the U.S. Census Bureau. 2020 Census information on poverty levels and household incomes are not yet available.
8
The City of Hutchinson monitors poverty levels and household income levels in an effort to gauge the
economic strength of the community. Historically the City has had poverty levels below that of the
State and Regional Center averages. While household incomes have been below that of the state
average, it has remained in the upper third and above average of the outstate regional centers that
Hutchinson compares itself to.
% of Population Below Poverty Level
35.0% d1.3
30.0%
25.0% 22.2%
20.0% 17.5% 17.8% 18.4% 19.7%
15.0% 0 13.5% 13.5% 13.6% 13.9%
15.0% 15.0% 15.5% 15.8%
9.0% 9.0% 9.1% 10.1%10.2%11.2/0
10.0% 7.1%
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Median Household Income
$80,000
$71,300 $70.148
$70,000 302042
$el,se7
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$60,000 a54,7e5 u4,066 E52 ee4
550,702 $50,000 $49.008 $48.958 W,854 W,077 W.127 $47.870 s47,820 s47,508
$50,000
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$40,000 $34,371
832,103
$30,000
$20, 000
$10,000
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City Tax Rates
The following tables show a comparison of city tax rates to other outstate small regional centers. The
first table show's the trend of the City's tax rate since 2010. The second is a comparison of the 2021
tax rates of outstate regional centers. The following tables reflect only the City portion tax levies and
do not include special levies that cities may also certify.
90.00%
80.00%
71
70.00%
r
60.00
57.06%
50.00 %
40.00%
73 3g,74.52`Yo 74.42% 73.97%
71.95%
67.04% 66.471%
2009 2011 2013 2015 2017 2019 2021
2022 City Tax Rates
100.00% 93.9296
90.00%
80.00% 77.98%
72.86% 74.19%
70.00% 63.98% 6b29%
60.00% 52 57% 54.16% 55.17% 5653% 56,60%
57.54% 58•%% 59.53% 59.65% 60•34%
49.19%
50.00%
39.08%
40.52% 42.03%
_
40.00% 3a.oz%
30.00%
20.00%
10.00%
0.00%
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10
The table down below shows a comparison of Hutchinson's 2021 city tax rate for city services with
other outstate regional centers. Hutchinson's tax rate was the fifth highest out of the 19 regional
centers.
19 Regional Centers
2021 Tax Rate
2020 Tax Rate
1
Cloquet
34.02%
33.84%
2
Alexandria
39.08%
40.41%
3
Willmar
40.52%
39.49%
4
Winona
42.03%
41.85%
5
Bemidji
49.19%
50.14%
6
Faribault
52.57%
53.14%
7
Austin
54.16%
55.72%
8
Fergus Falls
55.17%
57.76%
9
Worthington
56.53%
55.55%
10
Northfield
56.60%
58.17%
11
Marshall
58.90%
58.31%
12
Fairmont
59.65%
59.64%
13
Owatonna
59.53%
62.48%
14
Albert Lea
60.34%
60.06%
15
Hutchinson
63.88%
66.47%
16
Red Wing
66.29%
71.51%
17
Brainerd
72.86%
78.78%
18
New Ulm
77.97%
78.82%
19
Hibbing
93.92%
91.19%
Average of 19 Regional Centers
57.54%
58.60%
2021 Annual Report
Community Surveys
Feedback from the community is also an important measuring tool for the City. The City of
Hutchinson conducts statistically valid community surveys every four years through the National
Community Survey (NCS). The community survey assesses aspects of community life, local
government service quality, and resident participation in community activities. The survey captures
residents' opinions and the results are based on resident perceptions. Overall, the survey describes
areas where the community believes things are going well and sheds lights on the areas that could
benefit from improvement.
When it comes to aspects of making a community livable, attractive and a place where people want
to be, the latest survey (2019) showed that the percentage of residents responding "excellent" or
"good" improved from previous years. The majority of our residents (84%) rated the quality of life in
Hutchinson as excellent or good; 90% rated the city as an excellent or good place to live; 84% rated
Hutchinson as a place to raise children as excellent or good; and 68% viewed Hutchinson as an
excellent or good place to retire.
% of Population Rating Community Characteristics Positively
100.00%
90.00%
80.00%
70.00%
�
ao
I
60.00%
c
a�
50.00%
a
ao
ZC
40.00%
M
30.00%
I
20.00%
10.00%
0.00%
Overall Quality of Hutchinson as a
Life Place to Live
Characteristics
12
Hutchinson as a
Place to Raise
Children
Hutchinson as a
Place to Retire
2007
. 2011
■ 2015
■ 2019
When it comes to how well the government of Hutchinson meets the needs and expectations of its
residents, the latest survey showed that the percentage of residents responding "excellent" or "good"
improved from previous years. The majority of our residents (78%) rated the overall quality of
services provided by the City of Hutchinson as excellent or good; 52% rated the value of services for
taxes paid as excellent or good, the highest on record. 59% rated the overall direction city
government is taking as excellent or good, and 55% viewed confidence in city government as an
excellent or good.
% of Population Rating General Governance Positively
90.00%
80.00%
70.00%
60.00%
W 40.00%
M
cc
30.00%
20.00%
10.00%
0.00% 1
Services Provided by Value of Services for Overall Direction the Confidence in City
Hutchinson Taxes Paid City is Taking Government
Governance
■ 2007
t 2011
2015
P 2019
When it comes to how well the residents of Hutchinson are connected to the community and each
other, the survey showed that the percentage of residents responding "excellent" or "good" improved
from the previous survey. The 60% of our residents rated the overall sense of community as excellent
or good, while 87% of the residents would recommend living in Hutchinson to someone else and
another 88% planned to remain in the community for the next five years.
100.00%
90.00%
80.00%
70.00%
v
60.00%
v
U
d 50.00%
a
an
30.00%
20.00%
10.00%
0.00%
% of Population Rating Community Participation Positively
Sense of Community
Would Recommend Planning to Remain in
Hutchinson Hutchinson
Governance
14
■ 2007
■ 2011
■ 2015
■ 2019
2021 Annual Report
Organization of the City
The city of Hutchinson is governed by a home rule charter and operates as a Council-
Manager/Administrator form of local government. The city council consist of a mayor and four
designated council seats, all elected at -large. The city council serves as the governing authority in the
"weak mayor -council" form of government. The mayor serves as the chair to the council, but does not
have greater authority than the other council members do. The mayor and council are responsible for
making policy and legislative decisions that govern the City, while relying on the city administrator
and staff to handle the administrative and day-to-day operations of the City.
As chief executive officer, the city administrator is the sole employee of the city council and is
responsible for ensuring the day-to-day operations of the city are being met. The city administrator is
appointed annually by the city council. The city of Hutchinson has approximately 140 regular staff,
who provide residents a wide array of municipal services including administration/legal, finance,
public safety (police & fire), streets, economic development, culture/parks/recreation, engineering,
public improvements, building permits/inspections, planning and zoning, and motor vehicle/DNR
licensing. The City also operates public water, sanitary and storm sewer collection and treatment
utilities, a soils manufacturing/compost business, an off -sale liquor store, and owns a municipal
airport.
Citizens of Hutchinson
Mayor and City Council
Airport Commission
Parks/Recreation/Comm Ed. Advisory Board
Bicycle/Pedestrian Advisory Committee
Planning Commission
Charter Commission
Police Civil Service Commission
City/School/Community Advisory Committee
Senior Advisory Board
Library Board
City
Sustalnabllity Committee
Economic Development Authority (EDA)
Administrator
Utilities Commission
Housing & Redevelopment Authority (HRA)
Economic
Information
Human Resources
Motor Vehicle
Compost
Development City Attorney
Technology
Director
Supervisor
Manager
Director
Director
Public Works
Police Chief /
Flnanca PRCE
Fire Planning
Liquor Sales
Director &
Emergency
Director Director
Chief Director
Manager
City Engineer
Management
Public Works Manager Asst. Fin Director Rec Facilitles/Oper Mgr
Building Officials
Lieutenant
Water Supervisor Rec Services Coorinator
Facilities Manager
Sergeants
Wastewater Supervisor Parks Supervisor
2021 Annual Report
Grants and Donations
Another way to consider the effectiveness of how a community is built is by how the City leverages its
resources. How does the City save local tax dollars through grants, donations, sponsorships and state
and federal assistance? The following are major grants, donations and state or federal aid from the
past year that help fund major services provided by the City:
Forestry
• Minnesota DNR Urban Forestry — $5,865.68
• Minnesota DNR Tree Grant — $296.70
Housing
• HRA Federal Funding for Southdale Apartment Improvements — $275,322.95
Parks & Art
• JC Women's Park Donations for Upgrades —
$5,660
• Rotary Park Donations for Future Equipment —
$7,500
• Lions Club Annual Donation for Updates to Lions Park —
$1,620
• Hutch Huskies Donation for New Fence at VMF —
$3,000
• Girls Scout Park Donations for Pier Project —
$10,000
• Police Memorial Park Donations —
$915
• Senior Center Donations for New Flag Pole —
$6,100
• Private Donations for Public Arts —
$1,500
Public Safety
•
Federal ARPA Money for COVID Pandemic —
$764,046.77
•
Dept. of Justice Grant (Police Body Armor) —
$927.24
•
State Grant for Police Vests —
$6,346.93
•
State Grant to Police Department Toward "Zero Deaths" —
$3,806.69
•
State Reimbursement of Police Training Expenses —
$23,698.49
•
State Aid to Operate the Police 911 Operations —
$29,794.32
•
Donation Toward New Radar in Squad Cars —
$2,000
•
General Donations to the Police Department —
$1,300
•
State Fire Training and Education Reimbursement —
$13,786.03
•
Donations to Fire Dept. for Ballistic Helmets & Armor Project —
$6,016.32
•
General Donations to the Fire Dept. —
$3,277.06
Recreational Prooram Soonsorshios/Contributions
• Youth Sports — $7,420
• Senior Center Activities — $2,974.60
• Recreation Center Activities — $4,900
• Various Miscellaneous Contributions — $4,875
State Pension Aid
• Police Pension Aid — $202,236.52
• Fire Pension Aid — $121,902.96
Transportation
• Municipal State Aid (General Maintenance) —
$29,280
• Municipal State Aid (South Grade Road) —
$600,000
• CARES Act Money for General Road Improvements —
$30,457
• CARES Act Money for Airport Operations —
$6,371
• State Grant for Annual Airport Maintenance —
$31,128.92
• State Grant for Airport Runway Seal Coating —
$74,131.57
• FEMA Money for Frost Boil Expenditures —
$178,425.69
Other
• County Grant for Refuse Receiving Scale at Creekside — $9,717.75
In total, the City received $2,476,601.19 in grants, donations, and state and federal aid in 2021.
2021 Annual Report
City Partnerships
Partnerships save city resources and help ease the tax burden on city residents. The City has pursued
partnerships with a variety of other government agencies as well as private groups and community
service organizations to provide for better community services. All city departments take advantage of
opportunities to join forces with different agencies and groups on an on -going basis. Below is a list of
many of the partnerships that have had and will continue to impact city operations:
Administration
• Member of the MCMA — Information and Resource Sharing Network
• Member of the ICMA — Information and Resource Sharing Network
• Member of LMC — Information and Resource Sharing Network
• Member of CGMC — Information and Resource Sharing Network
• McLeod County Administrators/Clerks (quarterly meetings/resources)
Finance Department
• Partners with the County in area of Assessing Services. The City pays the County about $61K
per year to annually assess the City's 5,800 parcels. This service includes the on -site property
reviews of approximately 25-30% of total parcels each year.
Creekside
• Per the McLeod County Solid Waste Plan, Creekside receives organic waste material from all
McLeod county residents at no charge.
• Creekside also provides a disposal service to all McLeod County municipalities' compost sites.
Fire Department
• Mutual aid agreements with all neighboring fire departments (frequently utilized for large scale
events)
• McLeod County Fire Chiefs Association (quarterly meetings, resources)
• Metro Fire Chiefs Association (membership, meetings, training, resources)
• Minnesota State Fire Marshal's Office (fire code review)
• Meeker/McLeod Fire Safety Trailer (shared regional trailer for teaching fire safety, resource
housed at our station and used throughout our multi -county region)
• Minnesota Department of Human Services (conduct fire safety inspections for daycare and
foster care centers and homes)
• McLeod County Fair (inspections, grand stand event coverage, facility usage for training)
• McLeod County Sheriff's Dept. (emergency calls, resources & equipment)
• McLeod County Social Services (protection services, child/vulnerable adult)
• McLeod County (community service partnership for troubled youth)
• Project Life Savor (McLeod county partnership, resources housed at our station)
• Regional Disaster Response Unit (Partnership with Immanuel -St. Joseph's Hospital Mankato,
resources housed at our station)
• Allina ambulance (emergency calls, joint training)
• 3M (promoting community fire safety and awareness with the use of the jointly owned,
"Bullex" digital/electronic fire extinguisher training device).
• Village Ranch, Inc. (projects and assistance for young men)
• Internal — Police Dept. (emergency calls, training site, resources & equip., EOC)
• Internal — Building Dept. (shared resources for rental inspections, new building plan reviews
and final inspections)
Human Resources
• Hutchinson Utilities Commission — Provide all HR related services as needed. This includes
recruitment, policy/contract administration, benefits, discipline, COBRA, work comp, new hire
orientation, etc.
• HRA — Provide bi-weekly payroll and all payroll related services. HRA is included in our
employee insurance benefit plans and work comp coverage.
• McLeod Rail Authority — Provide meeting notices for all regular meetings.
• Complete salary related and other surveys or provide other information as requested — annual
LMC survey, ICMA, federal govt. requests, other MN cities, unions, etc.
Information Technoloay
• Provide, for a fee, fiber connectivity for McLeod County Solid Waste and the fairgrounds for
the County network.
• Provide, for a fee, fiber connectivity to Ridgewater East campus for the State of Minnesota
network.
Legal
Hutchinson Utilities Commission — Provide all legal related services as needed through the City
Attorney.
Planning & Zoning
• Hutchinson Area Joint Planning Board — City of Hutchinson, McLeod County, Acoma Township,
Lynn Township, Hassan Valley Township.
• Backup building inspection services with Meeker County on an as needed basis (has not been
utilized recently but contract is in place).
• Partnership with Pioneerland Library services to manage and operate the Hutchinson Public
Library. City owns building, provides custodial staff, and manages building and associated
improvements.
• Partnership with Lutheran Social Services for Senior Dining Service at Evergreen.
• Partnership with Hutchinson HRA to provide rental rehab inspections both in Hutchinson and
County wide for HRA rental rehab projects.
Police Department
• Mutual Aid: An agreement with McLeod County including all municipalities all emergencies as
needed.
• Emergency Management:
o McLeod County including all municipalities
o Planning
o Training for licensed and civilian staff
o Civil Defense siren testing and alerts
o Coordinated County -wide response
o Weather spotters through the county
o County -wide inventory of equipment and resources for emergencies both public and
private
• Communication Center:
o Member of the State's Regional Radio Board with City Council Member have a position on
the Board
o McLeod County including all municipalities
o Hutchinson Fire
o Aliana Medical
o Communication Support for Hutchinson Water, Waste Water, and Street Departments
o The two systems are joined virtually:
o CAD, RMS, Jail Package
o Recommended by the consultants
o Redundant system in case of failure
o Support in major emergencies
o Emergency Management tool
o SRT Communication support
• Communication Advisory Board:
o Made up of police, fire, and medical agencies throughout McLeod County
o Addressing radio programing, radio protocols, call out procedures and priorities, resolving
issues
• Southwest Metro Drug Task Force:
o We currently have one licensed police officer assigned to the Task Force
o McLeod, Carver, Scott, West Hennepin, Glencoe, Lester Prairie, Winsted, Brownton,
Shakopee, New Prague, Jordan
• Monthly McLeod County Chiefs Association (Region VI) meetings:
o All county Chiefs
o Sheriff
o County Attorney
o State Patrol
• County -wide training hosted and supported by McLeod County Chiefs Association and MPPOA:
o Active Shooter
o Mental Health training for licensed and civilian staff
• Police and Fire Training facility:
o We allow any law enforcement in the state to utilize our range
o We allow McLeod County to utilize our range
o We allow McLeod County to utilize our EOC
• Special Response Team (SRT):
o The Hutchinson and McLeod teams train together
o Respond to all emergencies together
o Share equipment
o This approach allows each agency the ability to control costs
o This approach allows each agency to manage liability
o This approach allows each agency to control utilization of team within their jurisdiction
• School Liaison Officer:
o Hutchinson School District
o High School and Middle School
o Shared compensation
• Hospital Security:
o Hutchinson Health
o Security Team
o Total compensation
• Park Patrol Officer:
o Park and Rec. Department
o Shared compensation
• DARE Program:
o McLeod County teaches this program to all schools throughout the County
o Our contribution is $8,000.00 annually
• Project Lifesaver:
o All police and fire agencies in the county participate
o The equipment is purchased by the County
• McLeod County Fair:
o The two agencies share a display booth during the fair
o We back up the Sheriff's Pose as needed throughout the fair
• Susteen Secure view mobile forensic software:
o Shared service allowing access to mobile phone data
o Shared fee
• Safe and Sober:
o Headed up by the State
o Enforcement program partnered with agencies throughout the state
• ICAC:
o Computer forensics partnered with the BCA
• CARE Council:
o HPD has an officer on the Board
o County -wide participation
• Parent Connection Team:
o HPD has an officer on the Board
o County -wide participation
• McLeod County Public Health Nuisance Provider Roundtable:
o HPD has an officer on the Board
o County -wide participation
• Adult Protection Team:
o HPD has an officer on the Board
o Courts, Prosecutors, Social Services, Probation, Advocates
• Child Protection Team:
o HPD has an officer on the Board
o Courts, Prosecutors, Social Services, Probation, Advocates
• Take it to the box program:
o Hutchinson PD, Winsted, and the Sheriff's Office have drop boxes in their lobbies
• MEADA Coalition (Meth Education and Drug Awareness):
o HPD has an officer on the Board
o County -wide participation
Park & Rec
• ISD 423 PRCE Joint Powers Agreement
• ISD 423 Grounds Maintenance Agreement
• Hutch Utilities Maintenance Agreement
• HPD shared Bike Patrol
• Youth Associations: Shared programming for Baseball, Softball, Hockey, Figure skating,
Basketball, High Tides, Wrestling, Volleyball, Lacrosse, and Soccer
• Fraternal Organizations: Park Development/Maintenance: Rotary, Oddfellows, Masons, VFW,
Legion, Elks, Kiwanis, Jaycees, Boy Scouts, Girl Scouts Lions, Maplewood Academy, and
Historic Hutchinson
• Associations: Programs and Events: Chamber of Commerce, River song, Center for the Arts,
Little Crow Archery, EDA and Hutch Health
• Adopt -a -Park with the Hutchinson Huskies on Veterans Memorial Field
Public Works
• Engineering — The engineering department staff utilizes and is utilized as a resource to the
local MNDOT District 8 and McLeod County Highway Department staffs while maintaining a
very amiable working relationship. Relative to these relationships, city staff has initiated,
developed, coordinated and/or administered several inter -agency cooperative agreement
projects such as the TH 7/15 Reconstruction (including Main Street Bridge), School Road
Pedestrian Underpass, Adams Street & Washington Avenue Reconstruction, TH 15 & North
High Drive Roundabout, TH 15 & Airport Road Roundabout, South Grade Road Bridge & Micro -
Surfacing, TH 15 Retaining Wall, and future TH 15/Main Street (downtown) Reconstruction.
These projects have leveraged city resources to achieve significant infrastructure
improvements. In regards to the MNDNR, city staff has worked well with MNDNR to address
the replacement of the Crow River Dam and improve the Luce Line/River trails corridor. Also,
City staff is always actively monitoring and maintaining our Municipal State Aid (gas taxes
allocated by MNDOT) fund balance to deliver timely and cost-effective projects. Lastly, city
staff continues to be involved in the development of the McLeod County Trails Plan and future
planning of the Dakota Rail Trail corridor improvements.
• Area Transportation Partnership (ATP) — City staff is continually engaged in ATP activities to
promote MNDOT trunk highway system improvements in our region and capitalize on Federal
Aid funds to deliver City projects such as 2"d Avenue SW & Dale Street Reconstruction, School
Road NW Reconstruction, future School Road and Roberts Road multi -use trails, and future
Century Avenue SE improvements.
• Hutchinson Area Transportation Services (HATS) — HATS as facilitated the establishment of a
great working relationship with McLeod County and MNDOT. Equipment is shared routinely at
the operator/lead level. Examples include the city routinely using a county dump truck to haul
biosolids and having MNDOT assist the city by coring concrete for sign installations. MNDOT
provides facility maintenance assistance. Fuel purchases are done jointly and fuel is purchased
by the State, County and City departments. We are also reimbursed by the State for spring
sweeping and snow removal operations and trade for materials with the County to offset
spring sweeping costs. We also routinely share aggregate materials stockpiled at HATS
amongst the three entities. The City and County jointly purchase winter salt.
• Airport — At the airport there is significant cooperative efforts between the FAA, MNDOT, and
the FBO. Without these entities, it would be unfeasible for the City to effectively operate an
airport. Both FAA & MNDOT personnel routinely assist us in troubleshooting problems,
determining cost-effective solutions and to help ensure the airport is safe. The FBO serves as
the eyes and ears for the city with regards to airport operations, since they are on -site every
day. ASI Jet pays for half of the internet connection at the airport.
• Cemetery — The chapel at the Cemetery is a joint venture with Dobratz-Hantge Chapel. The
Cemetery also partners with local businesses to provide employee parking
• Safety — Public Works is part of a network made up of other Public Works Departments that
serve as a "think-tank" for safety/operational issues related to Public Works operations. While
this group meets regularly, off-line various entities are able to provide resources to each other
and act as a sounding board for safety/operational issues.
• Signs — The City has a great working relationship with the County when it comes to utilizing
one another's sign inventory and equipment. This helps to offset the typical lead time or
ordering signs.
• Equipment — The City is part of the MNDOA Cooperative Purchasing Agreement (State Bid) for
purchasing equipment other items. This saves a significant amount of time as staff does not
have to prepare separate bid documents for each purchase
• Streetlights — They City has a relationship with HUC relative to energizing and maintaining
streetlights.
• Snow Removal — The County snow blower serves as the City's backup snow blower.
• Wastewater — City staff administers an industrial waste permitting process which allows for
the City to collect materials from other agencies and organizations for an established fee
resulting in City revenues. Also, city staff coordinates a biosolids spreading program with local
farmers to cost-effectively dispose of sludge materials.
• MNWARN — The City is part of MNWARD (Minnesota Water/Wastewater Agency Response
Network). This is a formal emergency response program in MN which is facilitated by a
standard mutual aid agreement. All of the communities with a 25-mile radius of Hutchinson
are part of this network.
2021 Annual Report
Awards and Recognitions
One way to consider the effectiveness of city services is through independent awards and
recognitions received by the City and its departments over the past year.
• City reconfirmed its status as a step 4 & 5 city of the Green Steps City Program
• 42"d year as a Tree City USA Community
Finance
• 25t" Straight year being recognized by GFOA for Excellence in Financial Reporting
City Admini,cl C-
Primary Services
The city administrator and the administration department provide the following services:
• Directs the general operation of city government and oversees the day-to-day
operations of the City
• Provides overall organizational leadership and direction
• Provides direct supervision to all department directors
• Provides staff assistance to the mayor and city council in research, investigation, and
resolution of problems, budget analysis, policy review, and public relations
• Assists the City Council in preparation of public meetings
• Responsible for implementing the City Council's vision (programs & policies)
• Responsible for seeing that City Charter and laws (ordinances) are enforced
• Serves as the city's Chief Negotiator for Union contracts and has ultimate authority over
the hiring and firing of city employees
• Provides direction to Human Resources on the functions, policies and procedures of the
City (Human Resources is a component of administration)
• Works in conjunction with the finance department on preparing and managing the
development of the city budget and CIP
• Provides recommendations on policies that govern the financial affairs of the City
• Oversees municipal elections
• Oversee the City's permitting processes (except for building & planning/zoning)
2021 Staffing Levels
3.40 Full-time Equivalent Staff
Budget
General operations of this department total $480,736 in 2021
$490,000
$480,000
$470,000
$460,000
$450,000
$440,000
$430,000
$420,000
$410,000
$400,000
$390,000
2020 Actual 2021 Actual 2022 Budget
25
Operational Expenses
■ Wages & Benefits
2021 Accomplishments
• Assisted staff in dealing with the impacts of COVID-19 in the workplace and the
community.
• Worked with the City Council on putting together the City's "Legislative Priorities"
• Successfully completed negotiations on a new Police Sergeant's Union contract
• Hired Lynn Neumann as the new PRCE Director
• Welcomed two new city council members to the council and provided the necessary
training to get them up to speed on everything that was going on
• Successfully bid out the farm rent on the land we own in the NE section of town
(Bernhagen property)
• Worked with Brenda Ewing on a compensation study that included an updated pay scale
and a new seasonal/PT pay plan
• Successfully negotiated a new garbage contract West Central Sanitation
• Oversaw the Creation of our first -ever Annual City -Wide (Monitoring) Report
• Assisted the HRA in filling the vacancy left by the retirement of Jean Ward
• Assisted the Council in an effort to fill their vacant council seat
• In conjunction with the finance department, continued the City's strong financial
presence which was reaffirmed with an AA- Bond Rating with S&P
• Negotiated a purchase agreement (sale) with Shad Ketcher on the parking lot that is
adjacent to his property
• Put on a presentation and an annual "State of the City Report" for the fall recognition
event
• Oversaw the 2022 budget preparation process and delivery of a balanced budget with a
tax levy increase at 4.3%
• Put together the Truth -in -Taxation presentation and budget message for the 2022
budget
• Produced several reports as requested by the Council on various issues relating to the
city and the budget process
The 2022 goals for the Administration Department are as follows:
• Assist in overseeing the constructions of a new police facility and look at options to sell f
the old police station/EOC
• Assist in finalizing plans for the future construction of a Splash Pad
• Review and update of the 2018 Strategic Plan
• Finalize plans for the future of the Event Center
• Continue to roll out the next steps of the City's Branding and Marketing Plan
• Have a discussion with the Council on the City's Street Width Policy and Policy on
Deferred Assessments
• Look at establishing a city-wide orientation program with the City Administrator
• Look at creating a "Policy Book" for the City — A comprehensive book that contains all of
the city's policies
• Update of the City's End Statements (Core Values)
W
Economic Deveio
EXECUTIVE SUMMARY
The ongoing COVID pandemic continued to affect the economy in a variety of ways with both
supply chain disruptions and reduced labor availability being major issues for area businesses.
Retailers in general had little choice but to increase their wages, with $15 per hour becoming the
de facto new minimum wage. Hutchinson's manufacturers continued to have difficulty finding
employees, with at least 155 job openings at the end of 2021.
The Hutchinson Economic Development Authority enjoyed a busy year. Highlights included:
■ Launched JumpStart Downtown Business Plan contest, producing three winners
■ A developer was identified for the Jorgenson Hotel
■ The EDA provided over $40,000 in grants for downtown businesses
■ Rite -Way Conveyors added 19,000 square feet onto its new building
■ A 766 KW solar array was commissioned in the industrial park, providing annual revenue
for the Enterprise Center
■ The U.S. Small Business Administration agreed to locate Minnesota's first physical
Veteran's Business Outreach Center (VBOC) in the Hutchinson Enterprise Center.
■ The EDA significantly enhanced its marketing efforts, particularly with corporate site
selectors
ACTIVITY REPORT
The Hutchinson Economic Development Authority utilizes five core strategies to grow the local
economy. These are:
1. Downtown Redevelopment
2. Business Retention & Expansion
3. Skilled Workforce Development
4. Business Incubation
5. Business Attraction
Throughout the year, pretty much all EDA activity can be tied back to advancing one or more of
these five strategies.
Downtown Grants & Loans
The Hutchinson EDA continued its support for downtown by providing $40,422.72 in grants to
Main Street businesses throughout 2021. In addition, the EDA provided $78,310 in low interest
project financing, typically complimenting private sector financing packages.
27
Sign & Awning Grant Program
The Sign & Awning grant program provides up to $2,000 to applicants wanting to upgrade, repair,
or replace their signage or awnings. In 2021, nine grants were awarded totaling $22,547.72.
Table 1, below, provides details.
Table 1— Sign & Awning Grant Program, 2021
Approved
1/27/2021
Ryan Alsleben
$2,000
2/24/2021
Olita Gifts & Goods
$2,000
4/28/2021
Flank Steakhouse
$2,000
6/23/2021
Sheila Thompson
$1,365
6/23/2021
Crow River Floral
$1,182.72
7/28/2021
Wendling Financial & Insurance Services
$2,000
8/25/2021
Amazing Grace Boutique
$2,000
9/22/2021
235 Hassan LLC
$8,000
1/05/2022
River House Kitchen + Drinks
$2,000
TOTAL: $22,547.72
Facade Improvement Program
This program requires a dollar -for -dollar match from applicants and provides up to $7,500 for
applicants wishing to upgrade their "curb appeal" of their downtown properties. In 2021, there
were four Fagade Improvement grants awarded totaling $17,875. Table 2, below, provides
details.
Table 2 — Facade Improvement Grant Program, 2021
4/28/2021 Olita Gifts & Goods $2,075
6/23/2021 By Mae $800
9/22/2021 235 Hassan LLC $7,500
1/05/2022 River House Kitchen + Drinks $7,500
TOTAL: $17,875
Commercial Rehabilitation Loan Program
The Commercial Rehabilitation Loan Program provides low interest loans to property owners who
desire to make more substantial improvements to their downtown buildings. Loan terms can be
for up to 10 years at 1% below the Prime Interest Rate. For 2021 this was 2.25%.
FM
In 2021, three Commercial Rehabilitation loans were awarded totaling $78,310. Table 3 below
provides a breakdown.
Table 3 — Commercial Rehabilitation Loan Program, 2021
6/23/2021
7/28/2021
9/22/2021
Crow River Floral
Main Street Antiques
235 Hassan LLC
Downtown Redevelopment
Jorgensen Hotel
$8,310
$10,000
$60,000
TOTAL: $78,310
After several decades of inactivity, the redevelopment of the Jorgensen Hotel appears to be
imminent.
Brian Forcier and Titanium Partners of Duluth proposed to redevelop the 1916 building as a high -
end 24 room hotel. There would be 10 rooms on each of the second and third floors, with an
additional four rooms on the ground floor. Rooms would be approximately $200 per night and
be offered to the luxury end of the hotel room market.
Plans call for the building to get a new roof,
exterior tuck -pointing, new elevator and a
complete build -out of the second and third
floors (along with a portion of the ground floor)
as new hotel rooms. The existing Chamber
offices would be retained.
To make the project feasible the EDA is
proposing a redevelopment TIF District, a
downtown loan of approximately $150,000, a
Fagade improvement grant of $7,500 and a
Sign & Awning grant of $2,000.
All
�6 M1,
Jorgensen Hotel
If all goes according to plan, construction could begin in mid-2022.
29
Nystrom & Associates to Cornerstone Commons
Nystrom & Associates, a mental health care provider! `
contacted the EDA in search of appropriate office facilities. iQi�vljJ�r��
EDA staff was able to connect them with the management
of Cornerstone Commons and they signed a lease for 4,000 SSOCIATES
square feet on the top floor of the building. This addition to
Cornerstone Commons brings the building to near 100% occupancy.
Franklin House
In 2021 the Historic Hutchinson organization confirmed that the Franklin House, purchased by
the City in 2020 and located at 135 Franklin Street NW, was in fact the old barn from the
Harrington -Merrill property. Historic Hutchinson then approached the City Council with a plan to
preserve the historic structure and return it to its original location. The City Council agreed with
the plan and Historic Hutchinson was able to raise private funding to relocate the building. Plans
call for the Franklin House to be returned to its original location on the Harrington -Merrill property
in early 2022. The EDA will then demolish any remaining building elements, remove the basement
and prepare the lot for redevelopment. Funding for the remaining demolition work will come
from the SHOPKO Development District and be reimbursed by tax increment generated by new
development within TIF District 4-16.
Franklin Redevelopment Site (Old Clinic Site)
For the most part the Franklin Street redevelopment project remained in a holding pattern in
2021.
The hold up is attributed to the delay in obtaining a grant from the Federal Emergency
Management Agency (FEMA) in the amount of $513,676 to assist in the acquisition of three
properties and demolition of the buildings located there. At issue was a requirement that a
current FEMA approved Hazard Mitigation Plan be in place for McLeod County. The plan that had
been in effect expired and a new plan had to be developed, a process that took more than 18
months. The new plan was finally completed and approved by FEMA at the close of 2021.
At year end, FEMA was indicating that Hutchinson would be awarded the grant once the new
McLeod County Hazard Mitigation Plan was formally adopted by all McLeod County cities. It was
hoped this process would be completed by the end of February 2022.
Once the FEMA grant is formally awarded, the EDA will secure updated appraisals on five
properties in the Franklin development area and begin negotiations with the owners for their
purchase. If the EDA is successful in acquiring the properties the buildings will be removed and
a stormwater feature constructed in their place. The entire city block would then be conveyed to
the developer for construction of multi -family housing.
30
Ul
11R
Proposed redevelopment area. FEMA grant dollars would provide $513,676 towards the acquisition and removal of the
three properties on the upper left of the site. The EDA will have to utilize another funding source to acquire the two
properties fronting on 1st Avenue.
Due to rapidly increasing construction costs brought about by the COVID pandemic, the
developer, Ward Rentals, had to abandon their initial concept of basement + two story
townhomes for the site. At year end the developer was proposing a more conventional apartment
building, albeit one that would have a very high -end appearance and offer luxury apartments.
It is hoped that new construction on the site will be underway by the third quarter of 2022.
3rd Avenue NW Redevelopment Site (former CENEX)
In partnership with the City, the EDA acquired the former CENEX fertilizer plant site on 3rd Avenue
NW in 2007. For its part, the EDA invested $201,329 from the Downtown Revolving Loan Fund
to help purchase, clear and clean up the three -acre site for redevelopment.
In 2021 the City expressed a desire to utilize the 3rd Avenue NW redevelopment site for its planned
community splash pad. Initial plans called for construction of the community splash pad in 2022,
but this was later revised to 2023. Still to be determined was how the City would compensate
the EDA for its investment in the site.
31
Jump -Start Downtown
In response to the growing number of storefront vacancies on Main Street, the EDA decided to
launch the JumpStart Downtown business plan contest again in January 2021.
Community partners once again stepped up to provide a very attractive prize package valued at
$30,000. Contributors included Vivid Image, KDUZ/KARP, the Hutchinson Leader, the Chamber
of Commerce and Crow River Signs.
For its part the EDA offered a top prize of $15,000 for working capital along with a $2,000 Sign
& Awning grant. In addition, it was decided that more than one winner would be funded if they
merited it.
After a two -month advertising campaign the EDA received 13 entries for the contest.
The JumpStart Downtown selection committee received 13 business proposals. From that group,
six were chosen to submit full-fledged business plans. One of the six opted to drop out, so in
May the selection committee had five business plans to review. Four were selected to make
presentations in the first week of June.
The field of contestants was very strong and ultimately three winners were chosen:
Flank Steakhouse opened a fine dining steak restaurant in the former location of Zella's
Restaurant in mid -summer.
Vince and Amanda Maertz, Proprietors of Flank Steakhouse
32
Gold Coin plans to refurbish and modernize the Gold Coin restaurant on Main Street and serve
authentic Thai food. Choua Kue, the new owner (along with Simon Leung), had recently moved
to Minnesota from Grand Rapids, Michigan where she operated the Bangkok Taste Cuisine
restaurant and was winner of the "Best Thai Foods" in Western Michigan award from ReVue
Magazine in 2016, 2017, 2018 and 2019. Plans call for the Gold Coin to open in mid-2022.
Simon Leung and Choua Kue will bring new life to
Hutchinson's Gold Coin Restaurant
Sweet Rolls & Boba won a half prize ($7,500) and will open a business selling made -to -order
rolled ice cream and Boba tea. Sweet Rolls & Boba will operate as a separate business from
inside the Gold Coin restaurant and will be owned by Mai Thao.
I
if
AN
W
t
Made to order sweet rolled ice cream
33
Mai Thao
Revision of Job Creation Goal for Cobblestone Inn
In December the Hutchinson City Council approved a revision of the job creation goal for the
Cobblestone Inn Hotel from 11.5 full-time equivalents (FTE's) to 7.5.
The ownership group of the hotel requested the change when it was determined that the original
goal of 11.5 FTE's was simply unattainable. Changes in the hospitality industry have led to
smaller, more efficient hotel staffing models. For its part, the City of Hutchinson considered
redevelopment of the site as its primary goal, with job creation being of substantially less
importance.
Industrial Park
Rite Way Conveyors Expansion
Less than one year after opening its new 40,500 sf facility, Rite Way Conveyors found itself
needing to expand. In 2021 the company added 19,000 square feet as a warehouse and
shipping/receiving area.
Employment at Rite Way was 35 at the start of the year and had expanded to 40 by the close of
the 2021, a 14% increase.
" �_ Vp L
1105 Benjamin Ave.
34
Solar Array
2021 saw the completion of a 766-kWh solar array on a 3-acre parcel in the city's industrial park.
Because the lot was bisected by a high-pressure gas line owned by the Hutchinson Utilities
Commission (HUC), the site was difficult to develop in a conventional way, i.e. with a building.
The new solar array will provide a renewable energy option for Hutchinson home owners and
companies, several of whom expressed a desire for a renewable source of energy.
HUC leases the site from the City of Hutchinson at a flat rate of $40,000 per year, with $4,000 of
that allocated to the Enterprise Center.
Sufficient space remains on the site to expand the solar array to 1 MegaWatt.
Hay Land Improvements
The EDA partnered with a local farmer to till and reseed two lots in the industrial park as hay
land.
The EDA's 15.7-acre site north of Benjamin Avenue was left in a very rough condition when the
industrial park was first constructed, making it quite undesirable from a hay production
standpoint. The arrangement was that the EDA would provide the seed while the farmer would
take care of the tillage and seeding work, in exchange for being able to harvest the 2021 crop.
Unfortunately, 2021 was a very dry year and the new hay didn't come in very well at all and no
crop was produced. Further work may be needed in 2022.
The EDA's 6.5-acre lot on 5th Avenue SE was seeded down as hay land and will be added to the
EDA's inventory of rentable hay acres.
35
Enterprise Center
Fire!
2021 got off to a rocky start with a January fire at the Enterprise Center.
In early 2021, Rite -Way Conveyor's new building in the industrial park was still unfinished and
their paint booth not yet operational. With conveyor orders coming due the company had to find
a way to get products painted and shipped out. Fortunately, Innovative Foam had an operational
paint booth that met most of their needs, and a deal was made whereby Rite -Way staff would
come down to the Enterprise Center to use Innovative Foam equipment to paint their conveyors.
Unfortunately, after completing a paint job Rite Way staff apparently left a pile of chemical soaked
rags on top of a small push cart. These later spontaneously combusted, resulting in a pillar of
flame on top of the plastic cart. Fortunately, the fire was directly under a sprinkler head and the
fire suppression system worked as designed.
Damage from the flames was fairly limited, but smoke and water damage to the Innovative Foam
space was extensive. Rite -Way Conveyors insurance covered repair and restoration costs and
over the course of several months everything was fully restored.
The City initially had to cover some costs, but these were later reimbursed 100% by insurance.
Fire Department staff later remarked that the entire building would probably have been lost if it
were not for the fire alarm / fire suppression system.
Maintenance & Building Improvements
A number of small Enterprise Center improvement projects were completed in 2021:
■ Rear door locks for each of the five bays were rekeyed to match the front doors of each
respective space. Having one key that opens both the front and rear doors of each
incubator space cuts down on the number of keys to be maintained and makes it easier
to fire department staff to access each space in an emergency.
The west parking lot was crack sealed to prevent water from infiltrating beneath the
bituminous pavement.
An area west of the employee parking lot was leveled and converted to lawn to help
control weeds that had grown up in that area.
Tenant Lease Extension: RD Machine
With their three-year lease coming up, RD Machine requested a month -to -month extension for
up to one year while they explored options for expanding their own building. The EDA Board
approved the proposed extension in July.
36
RD Machine originally leased 2,000 square feet in the Enterprise Center so they could explore the
addition of watedet cutting services to their business. If the new service was successful it would
trigger a company expansion.
After 2 1/2 years the experiment proved to be a big success, with the company not only
internalizing its own waterjet cutting needs but also attracting a sizable amount of new business.
At the close of 2021 RD Machine was considering a major expansion of their existing building in
2022. Watedet operations would be moved into the newly expanded facility once its ready.
Tenant Lease Extensions: Innovative Foam / Laser Dynamics
In recognition of the fact that the COVID pandemic hit both Innovative Foam and Laser Dynamics
very hard — and that the last two years were essentially "lost years" for them — the EDA elected
to provide lease extensions to both companies through the end of 2023.
The EDA Board stipulated that this would be the last lease extension granted and that it was
essential that the Enterprise Center remain true to its mission of being a small business incubator.
With the extension, both companies will have had six years of residency in the Enterprise Center.
Escalator Rents
With an eye towards the future, the EDA decided upon an addition to the Enterprise Center
template lease by adding a $1 per square foot "escalator" for each year after the initial one.
Escalator rents, plus interest, will be maintained in an escrow account at the city and returned to
the company when they move out, provided the company stays in Hutchinson. The idea is to
move lease rates closer to a market level each year tenants are in the incubator and create a
savings program that will provide a nice financial boost to the company when it moves out.
Veterans Business Outreach Center (VBOC)
In 2021 the Hutchinson EDA agreed to partner
with the Small Business Administration to
establish a Veterans Business Outreach Center
(VBOC) at the Enterprise Center. The EDA will
provide office space and use of incubator
facilities free of charge to the VBOC.
U.S. SMALL BUSINESS ADMINISTRATION
VB0C
The VBOC program is designed to provide
entrepreneurial development services such as VETERANS BUSINESS OUTREACH CENTERS
business training, counseling, and resource
partner referrals to transitioning service members, veterans, National Guard & Reserve members, and
military spouses interested in starting or growing a small business.
37
The VBOC will begin operations in 2022 and will share office space with the Small Business
Development Center. Hutchinson will be home to the only physical VBOC office in the State of
Minnesota.
SCSU MBA Connection
To enhance the range of services provided to Enterprise
Center clients, the EDA developed a connection with the
Master's of Business Administration (MBA) program at
St. Cloud State University. MBA classes frequently work
on various projects as part of their educational
program. The connection with the Enterprise Center
gives them an opportunity to study and work on real -
world companies. In 2021 an SCSU MBA class worked
with Laser Dynamics to develop a marketing plan for
the company and identify potential customers.
L
MASTER OF
BUSINESS ADMINISTRATION
ST, CLOUD STATE UNWERsnY
It is the EDA's goal to grow this relationship with the SCSU MBA program and have them working
on projects for Enterprise Center clients on a regular basis.
Skilled Workforce Development
Shortage of skilled workforce continues to be the top economic development challenge locally,
statewide and nationally.
In early 2021 the EDA conducted an employment census of local manufacturers and discovered
there were at least 144 job openings locally that companies could not get filled. While COVID
was a contributing factor, the two main causes of the shortage are (A) demographic changes
affecting the county and, (B) lack of people possessing the skills needed for the jobs available.
The EDA therefore continued its strong support for TigerPath as a workforce development
strategy in 2021, although this was complicated by the ongoing COVID pandemic.
38
Human Resources Workshop: 12 Ways to
Leverage TigerPath
In July the EDA, in partnership with the Chamber of
Commerce, hosted a workshop for company human
resources personnel, owners and managers on how to
leverage TigerPath to benefit their business.
Representatives from 13 companies learned how
TigerPath works, along with 12 concrete ways they
can connect with Hutchinson High School and, by
extension, potential future employees.
Marketing TigerPath
TigerPath continued to garner interest from economic
development groups statewide and beyond.
DEED Commissioner Steve Grove and 7th District
Congresswoman Michelle Fischbach each paid a visit
to Hutchinson to learn more about the initiative. In
addition, EDA staff made presentations about
TigerPath to groups from Lake City and
Duluth as well as (via ZOOM) the Valley
Economic Alliance in Los Angeles,
California.
UPPER RIGHT: Congresswoman Michelle
Fischbach
RIGHT: DEED Commissioner Steve Grove
BOTTOM: The Valley Economic Alliance
1A
39
County Economic Development
The Hutchinson EDA has been promoting the implementation of
a McLeod County economic development effort for nearly 20
years.
In 2021 those efforts finally appeared to bear fruit.
At the recommendation of Hutchinson EDA staff, McLeod County
hired Janet Ady (Ady & Associates) to lead an economic
development strategic planning effort. Janet Ady is a corporate
site selector by trade and also does extensive consulting work
helping communities develop strategic plans for economic
development.
Ady & Associates did extensive research on the strengths and Janet Ady
weaknesses of McLeod County from an economic development
perspective, organized several focus groups to obtain input, hosted a goal -setting workshop for
county leaders and drafted a strategic plan that was later adopted by McLeod County.
With the plan in place the County then launched a search for full time economic development
staff. At the close of the year that process was ongoing, but it is anticipated that the position will
be filled during the first quarter of 2022.
Business Retention & Expansion (BR&E)
It is well established that a community's number one source of economic growth is its existing
companies. With that in mind the Hutchinson EDA prioritizes taking care of its existing business
community, doing everything possible to help them grow and expand. Typically visits to local
companies are scheduled on an 18 to 24-month rotation, but this was complicated a bit by the
ongoing COVID pandemic. Completed SR&E visits are summarized in Table 4, on the following
page.
40
Retention and expansion of
existing businesses is "bread &
butter" economic development,
being the number one source of
new job creation in the
Ir community. From an initial
employment of 15, Warrior Mfg.
has grown to employ 84 and
shows no signs of slowing down.
Table 4 — BR & E Visits,
2021
1
Date
5/25/2021
Company
Rite -Way Conveyor
Denise Johnson
Busy / adding 19,000 sf
2
6/1/2021
Warrior Mfg.
Paul Soukup
Busy
3
6/28/2021
Redline Systems
Matt Cheney
Busy / steel prices up 150%
4
6/30/2021
Fire Lake Mfg.
Kent Wischman
Busy / sales up
5
7/6/2021
UPONOR
Kevin Lechner
Busy / needs 12-16 emp ASAP
6
7/9/2021
Impressions, Inc.
Paul Nordin
Slow currently / needs 9 emp
7
7/14/2021
RD Machine
Jeff Leway
Busy / needs 15,000 sf
8
7/14/2021
Stamp-N-Storage
Brett Haugen
Steady / shipping costs way up
9
7/19/2021
3D CNC _
Tyler Stilson
Busy / possible addition
10
7/21/2021
3M
Dr. Scott Lemke
Busy / staffing biggest challenge
11
8/5/2021
Stearnswood
Mark Stearns
Busy / sales up
12
8/27/2021
Pride Solutions
Jack Daggett
Busy / needs 3-5 emp.
13
9/27/2021
Innovative Foam
Dean Bertram
Slow currently
14
9/30/2021
Laser Dynamics
Troy Oberg
Slow, but improving
15
10/1/2021
MITGI
Eric Lipke
Busy / childcare a growing issue
16
10/6/2021
Lynn Card Company
Eric Knudson
Steady / more automated now
17
10/13/2021
Zephyr Wind Services
Trevor Armstrong
Busy / needs 3 people
18
10/20/2021
Hutch CO-OP
Mike Conner
Need truck drivers
19
11/16/2021
Customer Elation
Pete Hainey
Call industry is changing
41
Marketing
Hutchinson's marketing strategy is to leverage
the internet to the greatest degree possible. In
the 21st century it is by far the #1 tool used by
corporate site selectors, commercial real estate
professionals and company managers when
looking for expansion opportunities.
JIB
Hutchinson
- I. C . .- r-- - -
To that end, the EDA puts great emphasis on maintaining a state-of-the-art economic
development website and continues to build its brand as "Minnesota's Manufacturing City." The
EDA website is optimized to provide key information to corporate site selectors and company
mangers conducting their own site research, while our brand communicates both our identity and
our value proposition.
To boost the website in Google searches, the EDA is also active on Facebook and Twitter; the
goal being to reference key words and phrases — such as "Hutchinson" and "Minnesota's
Manufacturing City"— as frequently as possible so Hutchinson appears higher in Google in search
results.
For the year Facebook "likes" went from 542 to 618, a Platform
14% increase. Twitter followers remained constant at ° •
gg, EDA website 20 updates
Facebook 145
Twitter 145
Minnesota Marketing Partnership
Hutchinson continued its membership in the Minnesota Marketing Partnership (MMP) in 2021.
Sponsored by the Minnesota Department of Employment & Economic Development (DEED) MMP
is a joint public -private marketing effort to promote the state to corporate site selectors at state,
regional and national levels. Membership increases Hutchinson's visibility at regional and national
levels and gives EDA staff direct access to corporate site selectors.
42
Site Selector Outreach / Quarterly Newsletter
The EDA launched an initiative in 2021 to
connect personally with corporate site
selectors operating in the upper Midwest
and specializing in manufacturing
expansions. The goal is to have at least
10 "first -name -basis" connections. To
compliment this effort, an on-line quarterly
newsletter was developed to provide
timely, relevant information about
Hutchinson to this select group of site
selectors. Designed to be read in just a
few seconds, the newsletter provides only
that information site selectors find most
critical: information about sites, buildings
and company expansions. The goal is to
partner directly with site selectors to bring
manufacturing expansion projects to Minnesota's Manufacturing City.
Greenseam / Launch Minnesota / Tech.mn / Ideagist.com
To further Hutchinson's marketing reach, the
EDA established connections with Greenseam,
REENSEAM
Launch Minnesota, Tech.mn and 7
Ideagist.com.
Greenseam is a Southern Minnesota
collaborative that has the mission of "elevating
our region as the world -class food and � I LAUNCH t"1jNNESOTA
agribusiness epicenter." Hutchinson is listed in-
Greenseam's Community Directory with a link back to our economic development website.
In 2021 the Hutchinson EDA because an active partner with Launch Minnesota, which is a
statewide collaborative effort to accelerate the growth of startup businesses. In addition, the
EDA had the Enterprise Center listed on both the Tech.mn and Idea ist websites, which catalog
business incubation resources in the State.
EDA BUDGET & FUND REPORT
Overall, the various budgets and funds the EDA is responsible for were healthy and showed
general improvement over results from last year. At the close of the year, the City Council
authorized a 9% increase in the EDA's operating levy, to $218,354 for 2022. Primarily this will
be used to expand the EDA's marketing efforts.
43
Operating Budget
The EDA closed the year with a very healthy $154,135 cash available in its operations budget,
which is just shy of 71% of next year's operating expenses. For the year the EDA finished with
revenues of $201,120 and expenditures of $197,986, resulting in net operating revenue of $3,133
at year end.
Economic evelo )meat Loan 'run(
The Economic Development Loan Fund finished the year with $152,438 in cash on hand. Ashwill
Industries paid off their loan and Zephyr Wind Services paid their loan down by $13,103 leaving
an end of year loan balance of $75,336.
The Enterprise Center was able to pay down its loan as scheduled by $18,743, leaving a year-
end loan balance of $246,052.
Downtown Revolving Loan Fund
The Downtown Revolving Loan Fund finished the year with $414,801 cash on hand and loans
receivable of $338,431. With minor exceptions (approved by the EDA Board) the 21 downtown
loans were performing as expected. Two of the larger loans, one with a balance of $56,712 and
another with a balance of $25,052 were paid off, providing a substantial financial boost to the
fund's cash position.
The fund continues to hold a $201,329 investment in the former Cenex site on YJ Avenue NW.
Total assets in the Downtown Loan Fund were $1,091,473.
Minnesota Investment Loan Fund
The Minnesota Investment Loan fund ended the year with a cash balance of $6,395 and one loan
outstanding with a balance of $10,956. For 2021 the loan performed as required.
Hutchinson Enterprise Center
The Hutchinson Enterprise Center fund finished the year with a healthy cash balance of $26,565.
For the year the Enterprise Center had revenues of $68,404 and expenses totaling $41,415 —
leaving an operating revenue balance of $26,989. After making payments of $18,743 to the
Economic Development Loan Fund and receiving revenue of $2,846 from its share of the new
industrial park solar array, the Enterprise finished the year with a net positive cash flow of $5,400.
This was allocated to the building maintenance fund.
The January fire at the Enterprise Center made it necessary to initially fund the insurance
deductible expenses through the Enterprise Center budget, but this was made whole at year end
by insurance proceeds.
44
SHOPKO Development District
The SHOPKO Development District finished 2021 with $206,079 in cash available and Interfund
Loans receivable from other TIF Districts totaling $482,422, Table 5, below, summarizes the
loans receivable.
Table 5 — SHOPKO Development District Interfund Loans
TIF
4-16
Project
Franklin Redevelopment
Receivable
$345,065
Notes
Purchase & demo of old medical buildin@
4-17
Enterprise Center
$124,273
Site work
4-20
Warrior Expansion
$0
TIF Plan, $9,389 paid off
4-21
Rite -Way Conveyor Lot Reimb.
$13,084
TIF plan & legal work
TOTAL
$482,422
It is planned that the receivable from TIF 4-16 will be paid off from tax increment generated by
new development on the Franklin redevelopment site.
Similarly, tax increment from the Enterprise Center TIF District (TIF 4-17) is scheduled to go back
to the SHOPKO TIF District to satisfy that obligation.
Tax increment revenue from the Rite Way Conveyors project (TIF 4-21) will flow back to the City's
Community Investment Fund as reimbursement for the cost of initial development of that
industrial park lot.
Of the $206,029 cash available in the SHOPKO Development District $171,225 is obligated as the
required 25% local match for the anticipated FEMA Grant.
GOVERNANCE
EDA Board
The Hutchinson Economic Development Authority is governed by
a seven -member board of directors appointed by the City Council
for six -year terms. Two City Council members serve on the EDA
Board, serving as a liaison between the two groups.
After 12 years of service to the EDA, ISD 423 Superintendent
Daron Vanderheiden announced his retirement from the Board.
At year end the EDA was still considering how to fill the vacancy,
with some discussion around the possibility of waiting to see who
the new school district superintendent would be, reflecting the
importance of the connection to the school district. Mike Cannon,
whose initial term was up at the end of the year, was appointed
to second 6-year term in January.
45
Daron Vanderheiden
Table 6, below, provides additional detail on the composition of the EDA Board of Directors in
2021.
Table 6 — Economic Development Authority Board of Directors, 2021
Mike McGraw
President
17
State Farm Insurance
Jonny Block
Vice-president
9
Hillyard
Chad Czmowski
City Council liaison
13
City Council/Outdoor Motion
Daron Vanderheiden
Commissioner
12
ISD 423
Mary Christensen
City Council liaison
11
City Council
Corey Stearns
Commissioner
7
Stearnswood
Mike Cannon
Commissioner
6
Citizens Bank
Jeremy Carter
Ex-officio
Hutchinson Utilities Comm.
Finance Team
Overseeing the financial aspects of the Hutchinson Economic Development Authority is the EDA
Finance Team. Comprised of two EDA Board members and seven other members of the
community, the Finance Team provides recommendations to the EDA Board on everything from
budgets to proposed financial incentives. Finance Team membership for 2021 is detailed in Table
7, on the following page.
Table 7 — EDA Finance Team, 2021
MemberPosition
Affiliation
Mike Cannon
Chair / EDA Board Liaison
Citizens Bank
Scott Ziegler
Member
Piehl, Hanson, Beckman
Anthony Hanson
Member
Citizens Bank
Jack Daggett
Member
Pride Solutions
Corey Stearns
EDA Board liaison
Stearnswood
Josh Karg
Member
Heartland Ag Systems
Eric Lipke
Member
MITGI
Ben King
Member
Kraft, Walser Law Office
Josh Lafi°en
Member
Home State Bank
46
SUMMARY
In keeping with its mission, the EDA made significant progress in promoting the redevelopment
and continued prosperity of Hutchinson's downtown. With the EDA's grant and loan programs as
an important catalyst, private investment in downtown remains strong and the building stock on
Main Street and surrounding areas continues to be well maintained. Additionally, the number of
blighted properties / buildings in and around Main Street is steadily declining. The JumpStart
Downtown Business Plan contest, the redevelopment of the Jorgensen Hotel and the Franklin
redevelopment will add considerable vitality to Main Street for many years to come.
Hutchinson's manufacturers continue to show considerable strength, with the majority of
companies enjoying strong sales and employment growth, even in the face of the ongoing
shortage of skilled workforce. At last count at least eight local manufacturers were either
expanding now, planning to expand, or considering it in the near future.
Looking ahead, the shortage of skilled workforce remains the biggest impediment to continued
economic growth. In addition, a tight housing market poses a growing challenge and a shortage
of affordable child care options looms on the horizon.
47
Finance
Primary Services
The Finance Department provides customer service to all city departments as well as the city's residents
and businesses. The department operates under the management of the Finance Director and is guided by
Generally Accepted Accounting Principles, Minnesota State Statutes, City Policy and departmental
procedures. Finance's various functions include;
• Accounts payable
• Accounts receivable
• Payroll
• Utility billing
• Water, Sewer, Refuse work orders
• Financial analysis and reporting for the City, EDA and HATS Facility
• TIF administration and reporting to the State
• Tax levy administration
• Certification of Special Assessments and Delinquent Utility Billing amounts to the County for
collection on the following year's property tax statements
• Maintain and manage the Special Assessment database
• Administer the Assessment Search process for title companies
• Certifications to the County and State for the City's budgets, tax levies, truth in taxation meetings,
outstanding debt and annual financial reports
• Administration of the EDA and HRA grant and loan programs
• Administration of the City's lodging tax, cable TV franchise tax and excise tax
• Grant administration and reporting
• Budget development
• Capital Improvement Plan (CIP)
• Annual debt issuance, debt service analysis and bond payments
• Long-range financial planning
• Cash and investment management
• Banking relations
• Administration and oversight of departmental procurement cards
• Risk Management and insurance coverage
• Budgetary and policy support for other city departments
Finance Budget
Other than labor, auditor fees ($48,500) and software costs ($14,350) represent the largest expenditures
for the Finance budget.
Wages & Benefits
Supplies
Services & Charges
Miscellaneous Expenses
Total Expense Budget
2020 Actual 2021 Actual 2022 Budget
$280,741
$299,265
$324,820
5,215
1,423
500
69,824
72,481
77,500
1,034
1,055
1,350
$356,814
$374,224
$404,170
48
Full-time Equivalent Staffing
General Fund 3.0 Finance Director, Payroll Specialist, Senior Accounting Specialist
Enterprise Funds 2.0 Assistant Finance Director, Utility Billing Specialist
2021 Accomplishments
• Received the GFOA's Certificate of Achievement for Excellence in Financial Reporting for the
City's 2020 Comprehensive Audited Financial Report. This is the 25th consecutive year of earning
this award, since 1996.
• Received an unmodified (clean) opinion from the City's independent auditors that the 2020
financial statements were fairly presented in conformity with Generally Accepted Accounting
Principles
o A federal single audit was performed on the CARES Act monies received and spent by the
city, which determined the monies were spent in conformity with Federal guidelines
• Standard & Poors reaffirmed the City's AA- bond rating for the 2021 bond issue.
• Formulated our debt needs and issued several types of bonds in a complex year with several
moving pieces
0 429 Special Assessment Improvement Bonds — par value of $1,825,000
o Tax Abatement Bonds — par value of $475,000
o CIP Bonds — par value of $7,320,000 (new police facility)
o Wastewater Revenue Bonds — par value of $3,460,000
• Procured flood and builder's risk coverage for the police facility construction project
• Effectively transitioned the city's banking from Wells Fargo to Citizens Bank
• Completed all required financial reporting to the State and the County for the city's annual
budget, tax levies, outstanding debt, annual audit report and TIF districts
• Guided city departments through the process for the following annual documents, creating
several iterations prior to being approved by council
o General and Enterprise fund budgets
o 5-Year CIP
o Fee Schedule
• Effectively transitioned back to processing late fees and water shutoffs for delinquent Utility
Billing customers after an 18-month moratorium during the pandemic
• Increased electronic payment customers for Utility Billing by 159, or 4.8%, in 2021
49
221 Performance Measurement Monitoring Data
Accounts Payable
Use of automated payment solutions continues to provide efficiencies to departmental purchasers and
enhances internal controls through established approval processes.
• Processed 97 electronic purchase orders totaling $3,260,854, compared to 124 totaling $3,703,610
in 2020
• Use of departmental procurement cards decreased 9.6% in 2021
• Issued 4,378 disbursement checks totaling $28,015,816 in 2021 compared to 4,691 checks totaling
$26,664,990 in 2020
Utility Billing
• Billed an average of 5,109 accounts on a monthly basis in 2021 with 43 new accounts added during
the year due to new construction
• Coordinated the monthly billing process with the third -party printer/mailer
• The monthly process to disconnect water for delinquent accounts was discontinued in March 2020
due to the pandemic and resumed in October 2021
o Finance determined this was the most opportune time to reinstate the water shutoffs since
the delinquent balances at the end of August were certified to the county for collections with
the 2022 property tax statements
• Coordinated work orders related to Water, Sewer and Refuse service
• Monitored water usage for large fluctuations or leaks, and informed customers
• Prepared, analyzed and billed new sewer charges to customers based on the January and February
average water usage
o This involves in-depth analysis of many accounts for abnormal activity that would adversely
skew the sewer charge
■ Leaks or cold weather water trickle can significantly affect a customer's sewer
average
• Provided notes or inserts within the utility bill mailings for City related information
• Managed and promoted the various electronic payment options available to customers
o We increased our electronic payers by 4.8% in 2021
o 67.3% of our accounts are now paying electronically, up from 64.7%
Payroll
• Issued 349 W2s in 2021 compared to 260 in 2020
• Hired and terminated 125 summer seasonal employees in 2021, compared to 33 in 2020
o The drop from 2020 is related to seasonal employees not being hired during the pandemic
Insurance
The City's insurance policies are administered by the finance department. Other than a few exceptions, the
City's policies are with the League of Minnesota Cities Insurance Trust (LMCIT). LMCIT is a self-insurance
pool of cities, formed to meet the specific coverage and risk management needs of cities. The coverage
included in the City's policies are property, crime, bond and petrofund, automobile damage and liability,
equipment breakdown, municipal liability, liquor liability, volunteer accident coverage and workers'
compensation. The finance staff processes loss claims, premium payments, deductible payments, and
coordinates the insurance renewal process each year. Human resource staff processes workers'
compensation claims. LMCIT requires that cities retain a representing insurance agency. The City's agent
is Arthur J. Gallagher & Co (AJG), whose staff is extremely helpful in analyzing the City's coverage and
explaining areas where the City may have increased or decreased liability/risk. AJG also serves as the
50
liaison between the City and LMCIT's underwriters for renewals and questions related to coverage or
claims.
The City also administers the insurance coverage for the HATS Facility through LMCIT and AJG. The
facility, which is co -owned by the State, County and City, consists of five buildings. Two buildings are
shared by all three entities for office space, a mechanics bay and salt storage. The other three buildings
are separately owned by each entity for equipment storage. This policy includes property coverage only for
the two, shared buildings. The individually owned storage buildings are insured separately by the
applicable entity's own insurance coverage. This policy also covers crime, petrofund and some minor
shared equipment.
The City's LMCIT policy has automatic builders risk coverage for building projects with total estimated cost
less than $3,000,000. For projects estimated to exceed $3,000,000, finance staff must procure a separate
policy, with AJG's assistance, through another insurance provider prior to the start of construction. In
2021, the Finance department coordinated a separate builder's risk policy for the new police facility
construction project. Flood coverage was also procured since the site is within the floodplain. An additional
builder's risk policy was issued for the headworks project at the City's Wastewater Treatment Facility.
The City has two other insurance policies for specialized facilities not normally covered by LMCIT. The solar
array located at the Wastewater Treatment Facility has a policy through The Hartford, which covers
equipment damage and breakdown. The City also has a policy for the municipal airport through Old
Republic Insurance Co, which includes coverage for liability, property, and terrorism.
Banking and Investments
Finance transitioned the City's operating account from Wells Fargo to Citizen's Bank in 2021. This account
handles all of the day-to-day operations of the City, including most revenues, disbursements to vendors and
payroll disbursements. The main reason for the change was to get back to a local banking relationship.
Wells Fargo transitioned our relationship away from the local branch in 2017 and to various corporate
customer service teams located in Minneapolis, Denver and most recently Florida. Customer service
unfortunately suffered due to the corporate structure and constant change in representatives. The
transition to a local bank also reduced the city's annual bank fees from approximately $12,000 to $250.
Finance staff strives to produce growth in investment income by actively managing the City's cash. We
maintain a portfolio with our investment custodian (Oppenheimer) consisting of Certificates of Deposit,
Municipal bonds, Federal Agency bonds and a money market account. The pandemic caused investment
yield rates to fall to record lows. Consequently, I left more City monies in the local bank where we earn an
APR of 0.30% compared to 0.005% in our Oppenheimer money market. The City's existing investments
that were purchased over the past five years continued to produce decent earnings, however those will
gradually drop out of our portfolio as they mature in the next two to four years. It didn't make sense to
purchase new investments in 2020 and throughout most of 2021 due to the low yields and long maturities
needed just to get a few basis points. We did see a moderate increase in yields in late 2021 and I took
advantage of idle cash to purchase investments in the two to five-year maturities.
Debt Issuance and Debt Management
The City annually issues General Obligation Special Assessment bonds to finance street and utility
infrastructure improvements. Finance staff works closely with Engineering and Resource Allocation
Committee to determine the appropriate bond issuance amount to finance the estimated project costs.
Finance consults with its financial advisor, Ehlers & Associates, while structuring the debt to fit within the
parameters of the City's Debt Management Plan. Finance, with the assistance of Ehlers & Associates, holds
a bond rating phone call with Standard & Poor's (S&P) prior to each year's bond issuance. The purpose of
51
the call is to discuss the bonded projects in addition to the City's policies, financial health and economic
outlook in order for S&P to determine the City's bond rating. The City's current bond rating of AA- has
been reaffirmed by S&P for several years and is likely the highest rating we can attain. The bond rating is
an important factor used by potential investors in assessing the City's risk related to debt service
repayment.
Financial Reporting
Finance staff annually prepares two major documents related to the City's finances. The first and perhaps
most important document is the annual budget. Finance coordinates the budgeting process in accordance
with the City Administrator's calendar and direction. Five budgets are created throughout the year:
• Initial budget
• Department budget
• Preliminary budget
• Truth in Taxation budget
• Final Approved budget
The initial budget consists of the same revenue and expense levels as the previous year's budget with the
exception of updated assumptions for wage and benefit increases. Any one-time budget amounts are
removed. Departments use the initial budget to work through their operating needs and submit a
Department budget back to finance. Finance and the City Administrator review and meet with departments
to discuss budgetary needs. Any changes are reflected in the Preliminary budget which is used to certify
preliminary tax levies to the county auditor by September 30. Further discussion with departments occur
after the preliminary budget in order to produce a budget that falls within the parameters directed by city
council. That budget is presented at the annual truth in taxation (TNT) public hearing. The final budget,
which may include revisions from the TNT budget, is approved by council in December. Final tax levies are
certified to the county by the end of December.
The second major finance document is the annual audited financial report. Finance begins planning and
performing initial audit work in December of each year. The process continues through the end of March,
leading up to the auditor fieldwork in early April. The audit report itself is produced by the auditors in early
June, with review performed by the lead auditor, the audit firm's partner and city staff. We are required to
submit the audit report to the State Auditor by June 30 of each year. We are also required to publish
summary audited financial statements in the local newspaper by the end of July.
Financial reporting to the State for the City's tax increment financing (TIF) districts is required by July 31.
We contract with Ehlers & Associates to prepare the reports based on data provided by Finance, which can
be a complex process. Finance staff ensures that the audited financial statements for the TIF districts are
complete and accurate. Finance also performs a thorough review of Ehlers reports prior to the data being
transmitted to the State Auditor. Fees charged by Ehlers are paid by the TIF districts, utilizing 10% of the
TIF revenue that can be dedicated to administrative costs, per State statute.
Other important reporting functions include the financial and investment reports provided to city council on
a monthly basis, the five-year capital improvement plan and the fee schedule. S&P and the city's auditors
confirm each year that these reports are being provided to the city council.
52
2022 Finance Department Goals
1) Financial Management Plan review and revisions
2) Special Assessment policy review with revisions approved by City Council
3) Transition Special Assessments from LOGIS to BS&A, resulting in a more economical annual
software cost
4) Plan and spend the ARPA funds in accordance with Federal guidelines
5) Analyze and formulate the final bond issuance for the police facility project
o Includes the effective accounting of construction project costs incurred to date as
well as estimating the final costs to be financed by the 2022 bonds
6) Financing the 2022 roadway and infrastructure improvements
o It is likely that our typical 429 bonding process will not be an option due to low
assessments so we may need to use another bonding mechanism
7) Perform periodic internal audits of departmental revenue billings for compliance with rates
and fees approved within the city's fee schedule
8) Receive the GFOA's Certification of Achievement for Excellence in Financial Reporting for
the 2021 audit report
9) Receive an unmodified (clean) opinion from the City's independent auditors for the 2021
financial statements
10)Reaffirm the City's AA- bond rating
53
Fire Department
Accomplishments
-Completed all annual requirements to maintain Firefighter licensing and certification. Worked
with our medical training partner (Allina) to keep up with all EMS continuing education needs.
-Conducted annual Firefighter physicals, blood tests, SCBA and N95 fit testing along with all
other health and safety requirements.
-Completed annual testing, certification and required maintenance on all apparatus, breathing
air compressor, SCBA packs, and small/tools equipment.
-Continued annual replacement of PPE/gear to stay ahead of minimum NFPA requirements.
-Continued using hybrid and online training whenever possible to improve our training delivery
methods to all of our Firefighters.
-Worked on many small projects at our training facility to improve usage for our Firefighters as
well as other Regional Fire Departments that utilize the space.
-Our NEW Tanker-4 truck committee put in countless hours finalizing details for our new truck
(see pic above right). They conducted department wide training for all of our Firefighters to
quickly and effectively get this truck into service.
-Completed a major refurbish to existing Tanker 6 to fix corrosion issues, lighting issues and
pump issues and it now looks and operates better than when it was new (see pic above left).
-Worked closely with the Townships, McLeod County and the MN DNR to develop and change
the burn permit process throughout the county. This simplifies the process to a quick phone call
to dispatch and eliminates the paper permits all together. The go live date will be early 2022.
-Replaced failing wireless 800MHZ radio headsets in Engine-2, Engine-7 & Ladder-1.
-Pandemic response protocols continued with only minimal adjustments.
-Completed several LED lighting upgrades on multiple apparatus.
54
Sl Its IG f r }}
2[l UFl Alt Ik
r+u nnr
�; It
.E.sty ,••LL •�Mr .«,
Lxi �vre:� ,v.Yac..
11�PP Pxtillf• 1`�ua -_
�S
-Installed new signage at the fire station honoring ALL Firefighters that dedicated 20 or more
years of service to the community that we serve (see pic above left).
-Fireman's Park Committee worked hard on details for adding playground equipment (see pic
above right) and making major improvements to the shelter and other aspects of the park.
Great progress was made in 2021 and there are hopes to finalize everything in 2022.
-Old Tanker-4 (see pic below left) was decommissioned and sold at auction. This ends a multi -
decade existence of yellow trucks serving our community and is the last one to ever make its
home in our station. It is continuing its fire service life at a small FD in northern Iowa.
-The committee spent many, many hours working on New Rescue-8 (see pic below right).
This truck will be a multi -purpose unit providing EMS, grass fire fighting capabilities and more.
The project is partially built now and will be completed and put into service in early 2022.
e
-Major one-time repairs and maintenance items were required on multiple trucks which was
expensive and difficult to incorporate into our annual budget.
-Summer duty crews (from Memorial Day to Labor Day) continued with great success.
-Added several SCBA air bottles to expand our breathing air capacity for training and fires.
55
Operational Data
Emersencv Call Breakdown
Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
FIRE-
General
28
47
28
20
42
40
41
33
27
47
57
FIRE-
14
15
12
14
12
16
19
17
7
12
11
Structure
Rescues
and MVA
30
21
23
47
46
75
81
69
70
74
81
Medicals
140
117
109
124
125
156
167
170
155
155
178
Alarms and
112
92
97
116
105
92
83
91
70
85
63
Sprinklers
Hazardous
105
96
73
93
87
78
89
64
95
67
60
Condition
Other
43
49
47
51
50
48
52
48
t 39
44
48
Emersencv Calls Total
Year
1990
2000
2013
2014
2015
2016
2017
2018
2019
2020
2021
City
156
215
253
317
309
342
348
307
318
332
318
Rural
76
132
136
148
158
163
184
185
145
152
180
Total
232
347
389
465
467
505
532
492
463
484
498
Structure and General Fires
Year
2001
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
General
50
61
37
33
52
53
58
44
37
59
68
Fires
Year 1 2011 ' 2012 1 2013 1 2014 2015 1 2016 1 2017 1 2018 j 2019 fI Z020 ' 2021
Injuries 1 0 1 1 1 4 1 0 1 1 1 0 1 2 1 2 1 1 1 4 1
Fire Event Fatalities
Year
2001 11
2002
2003-2010
2031
2012 2020
2025
Fatalities 1
*3 1
1
1 0
1 1
1 0
2
& Rural Fire District
Officer Only Calls for the Citv & Rural Fire District
Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
1 2020
1 2021
Number of
Calls
136
126
106
149
143
156
161
130
130
135
126
Dollars
$24 752
$22,932
$19,292
$27,118
$26,026
$30,576
$31,564
$25,480
$25,480
$26,460
$22,932
Saved
Hours
2,040 1,890 1,590 2,235 2,145 2,340 2,415 1,950 1,950 2,025 1,890
Saved
56
Estimated Property Value Saved: $3,761,500
Lives Saved: 8
Emergency Call Hours: City - 2,755; Rural - 3,002
Total Training Hours: 3,066
Public Relations and Fire Safety Education
Our doors were opened at the station again and we were able to host tours and education
events as usual. Education was conducted at the fire station as well as on site at various
locations.
We appreciate the relationship we have with the Hutchinson Schools and we were able to
deliver our fire safety education at both West Elementary and Park Elementary as normal.
Since the New Tiger Elementary School is now up and running and the grades will be shuffled
around a little, this was likely our last year working with the tremendous staff and students at
Park Elementary. _
35 Public Relations Events/561 hours
16 Fire Safety Education Event5/80 Hours
1, 698 Total Students
Inspections and Permits
-Our approach on rental inspections for 2021 remained similar to the previous year and we
limited entering private living units (apartments, rentals, etc.) or occupied commercial spaces
unless there was an emergency or an immediate safety concern that required attention.
-Daycare and Foster Care facilties were still inspected only as requested (approx 18) and all
new construction was inspected to ensure proper installation and operations of fire alarm and
sprinkler systems (approx 51).
-Building plan reviews were also conducted jointly with the City of Hutchinson Builing Department.
-New phone in burn permit system has been approved by the McLeod County Comissioners and
will be going into effect soon. 102 burn permits were ultimatley written to rural residents out of
the HFD.
57
Goals for 2022
-Continue our firefighter health and safety initiative by making facility and equipment
improvements as needed and also focusing on personal health and well-being
-Aggressive replacement of PPE items (helmets, etc.) as needed to ensure NFPA compliance
-Proactively conduct maintenance and upgrades to all apparatus and analyze future CIP needs
-Put into service new rescue truck and decommission older utility pickup
-Continue training on new armor vests and protocols with HPD and MCSO
-Complete the next phase of improvements -Plan for future replacement of aging
to Fireman's Park and finalize 800mhz radio equipment MCFCA and MCSO
-Identify and improve on facility needs
-Regional/state training school options
-Conduct training using alternative delivery
models, hybrid and staggered start models
-Learn something, Teach something
-Resume and expand inspection program
ramping up to pre -pandemic numbers
-Work closely with MCSO on the Dispatch
Center transition and proficiencies
Primary Services
-Continue to review and update
SOG/policies
-Expand on technology upgrades were
possible for apparatus and tools
-Conduct a hiring of new firefighters
-Conduct advanced, hands on live burn
training at an acquired house
-Continue with summer duty crews on
weekends from Memorial Day to Labor Day
We will continue to delivery excellent emergency response with a focus on professionalism and
consistency. Community fire safety education will remain one of our cornerstone programs.
Utilizing technology and analytics we will strive to make improvements to our operations
whenever and wherever possible. High quality and frequent training will continue ensuring
Firefighter proficiency in all duties. Firefighter health and safety is, and will continue to be, our
#1 priority so that "Everyone Goes Home."
58
Hutchinson Housing and Redevelopment Authority
Primary Services
The Hutchinson HRA (HHRA) is a public body politic formed by the Hutchinson City Council in 1969
according to MN State Statue. The HHRA was created to address a shortage of housing for low to
moderate income families and to address substandard areas in Hutchinson. The HHRA owns and
manages Park Towers Apartments. In addition, the HHRA administered other housing rehab programs
throughout the city to preserve housing stock and improve neighborhoods.
Yearly the HHRA collects housing data to help identify changing community housing needs and then
administer/develop housing programs that will provide a positive impact on the community.
The HHRA Board of Commissioners meets at 7:00 a.m. on the third Tuesday of the month at the City
Center. The Board consists of five members, four of whom shall be residents of the City and one who
shall be a member of the City Council. HRA Board members are eligible to serve two full terms.
59
Hutchinson Yearly Comparisons
Rental Data from the October 1011 Apartment Survey:
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Market Rate General Occupancy Vacancy Rate
.ti0 �O ,10 ,ti0 .10 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,ti0 ,LO .LO ,ti0 ,ti0 ,ti0
4.00% -�
1.30%
2.00% 0.72%
0.00%
o
■ Market Rate General Occupancy
■ Subsidized General Occupancy
9 Senior Market Rate Rental
Housing
■ Senior Subsidized Rental Housing
2021 Vacancy Rates _
2021 General Occupancy - Market Rate Rents (October 2021) Page 1
AptName
COF Efficierwy
Effie. Rena
Dawson Pr
2
5400
Cokxraal POL
$415
Gmewa Cwufal
1
$445
Norandet
1
$500
A iName
troF 1 BD
1 BD
435 Catdocrxs
1
1 $395
Mansard
1
1 S475
ApoApApo
3
1 $500
Dawson Pr t
2
$500
win
SSW
Packwood
8
1515
Cokatal
3
$530
South Dale 8Ej
7
$550
Gatw Central
3
$575
V Vww ft
5592
Gokview Aou
1
SSW
Olson Ppactments
2
S600
Date Street Apt
7
$600
Faslane
9
$605
515Jefferson
1
$605
Echo Manor 80
$625
Cedac Acres Apts.
21
S650
Banco
3
$743
Pack View Terrace
1
S6g5
CowwyCkkManor
26
sags
RGdgedale Square
2
$705
Towrtlomes
8
5750
LLC
2
$750
Highffeldl,2&3
30
$750
Deer Park
20
$850
Centasu coast A t. E
21
5890
Inghfield4IN524
5895
AptName
ttof 2 BD
2 BO Rents
435 CaWornia
Z
s475
Mansard
TF
$550
Colonial
4
$570
kiig7
5600
anments
v V.
GolfvieW Apts
9
1 $670
Gates Central
13
1 $675
Olson 8ponments
25
1 $700
Alexander
10
1 $700
Bradford
2
$700
Cadet es S.
is
$700
SoathOskr
30
$700
Southview Tetraoe
18
$700
Fairlane
15
$705
Park View Tenace A
17
$710
Echo Mans
28
$745
565Jefferson Apt.
11
$725
CkrbManoV34
$755
e
$775
Hutchinson s
$800
Banco
$825
iekll,2&35850winTownhc"s5880
Deer Park
105
$375
F4041eld 4&5
46
5995
Century Corot Apt. East
47
StO60
Centtp Court t. Wrst
84 1
stO60
Some above listed cents may inck,cde unties; seethe Hutchinson Apartment Guide for details.
" Infamation is deemed cared at time of swvey but rot guaranteed.
AptName
Gof 3 BD
3 BD Rents
435Cakfotni Apt
1
tam
V %re
2
$713
Olson trnents
6
5750
Golfu+eW s.
2
$750
1
S
ad S.
3
Rdgedale Square
12
1 $345
field 1,Z&3
6
$350
Town homes
8
$1 100
Deer Park
12
t1100
Banco
3
ri-Z00
Cenua Corrt APt E
211
S1,
llourl rate
Yearly
30%i
Monthly
6 tome
S10
S12
S20,800
$520.00
$24,960
$624.00
$Ss
S31,200
S780.00
$18
S37,440
I S936.00
S20
S41,600
$1,040.00
S22
I.S57,672
S45,760
IS1,144.00
S27.727
IS1,441.80
Median Ha A.Id 6— in Hsu 6,— from USCB 20M ACS
Syr EstTabk
ee
Year End Hutchinson Home Resales Data from McLeod County Assessor's Office.•
Home Resales
Cirydmckw
2010 WA 2021
Year
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2D10
WRW
No.
I Rt
No.
PM
No,
I Pd
No,
I Pd
No,
K
No.
Rt
No,
Pd
No,
K
No.
I Pd
No,
Pd
No.
I Ptt,
Na
K
U*06
4
1.1%
7
2.0%
1
03%
7
1.9%
9
17%
10
3.0%
15
4.2%
18
5,7%
29
10.2%
44
153%
30
12.4%
24
11.1%
S50,000toS74,919
5
13%
10
19%
5
1.6%
11
3.1%
10
3.0%
15
0
26
73%
17
5.4%
35
123%
13
HA
31
118%
16
7.4%
$75,Oto%999
13
33%
10
2.9%
8
15%
15
4.2%
22
&6%
38
116%
39
11.0%
34
10,8%
36
12.7%
62
21.6%
46
19.0%
32
AN
S1tA.000toSi1ON
10
2.7%
19
5.5%
27
&6%
46
12.8%
46
13.8%
54
16A%
58
163%
59
18.7%
49
12.3%
52
18.1%
48
19.8%
38
116%
$125,000toK999
29
7.8%
49
14.4%
50
DA
67
1&1%
70
21.0%
76
23.1%
68
0.1%
68
21.5%
59
20.8%
41
14.3%
33
13.6%
9
17.6%
SB Xto$174,999
34
9.1%
51
14.9%
64
20.3%
70
B.5%
73
219%
55
16.7%
60
16.8%
51
16.1%
29
10.2%
I6
5.6%
22
9.2%
23
10.6%
S175,0Wto199,999
58
155%
55
16.0%
59
17%
55
153%
39
118%
23
7A
27
7.6%
21
6.6%
16
5.6%
13
45
9
33 %
V
5.6%
$ .000+
220
59.0%
142
41A%
101
311%
88
24.5%
64
19.2%
58
17,6%
63
17.7%
48
B1%
31
10.9%
9
9.1%
B
95%
33 I
153%
Total 1
373
100A%
343 1
100.0%
315
100.0%
89
100,0%
333
100,0%
329
100.0%
356
100.0%
316 1
100A%
284
IM
B7
100.0%
242
100.0%
216 1
100.0%
Median1 $2159 1 $96,000 1 $175,000 1 $161,900 I $153,500 1 $140000 1 $138R 1 $133,900 1 $125,000 I $1O1p00 1 $109,%0 1 5111A
Hutchinson Median Sales Price
$240,000
$220,000
$200,000
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
otiti oti° oti� oti� oti� oti� oti�' oti°` oti� oti� otiti
ti ti ti ti ti ti ti ti ti ti ti
-0-Hutchinson Median Sales Price
2021 Hutchinson Home Sale Price
Ranges ■ Under $50,000
1.1% 1.3%13.5% 2.7% ■ $50,000 to $74,999
�111►_' 8o 9.1'% ■ $75,000 to $99,999
$1,000 to
M WIRM, ANN 999
15.50/ $124,
v ■ $125,99 to
$149,999
■ $150,000 to
$174,999
20.9% ° ■ $175,000 to
18.6 v, $199,999
■ $200,000 to
$224.999
Year End Hutchinson Home Resales Data from the Minneapolis Area Association of Rea/tors:
2021
2020
2019
2018
2017
Median Sales Price
$235,000
$200,000
$181,000
$170,000
$1619000
# of Sales
317
324
315
330
318
2021 Mortgage Rates:
30-year fixed rates at the beginning of 2021 were 2.65% and ended at 3.1% according to
Minneapolis Area Association of Realtors.
MH
New Construction On& (the following 3 charts are based on information from the Department of Planning, Zoning and Building
Department) :
Number of New Construction Single -Family Dwelling Units
80 -i j — — -
60 58 — — —
40 _42 _ 34, 36 35
3u 27 23
i2
20 1 `3 20 - - -
4 7 4 5
0 �T--�
2005 2006 2007 2008 2009 2010 20112012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Number of Certificate of Occupancy for General Occupancy Multi -Family Dwelling Units
200
100
1994 1996 1999 2017 2018 2019 2020 Century 2021 Century 2021
Ridgedale Deer Park Century Court Highfield Highfield Highfield Court West Court West Highfield
square TH East
Hutchinson Foreclosures:
200
100
0
McLeod County and Hutchinson
Foreclosure Counts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
0 McLeod County s Hutchinson
62
Number of Foreclosures in McLeod County and Hutchinson
Year
McLeod
Hutchinson
2004
48
14
2005
56
2006
72
2007
142
40
2008
159
42
2009
135
50
2010
200
62
2011
176
77
2012
135
1 45
2013
93
39
2014
75
28
2015
53
25
2016
44
18
2017
34
11
2018
24
7
2019
27
12
2020*
14
6
2021
5
3
*Moratorium on all pending and future foreclosures when the foreclosure arises out of a substantial decrease in income or substantial out of pocket medical
expenses caused by the COVID-19 pandemic, or any local, state, or federal governmental response to COVID-19 (State of Minnesota Emergency Executive
Order20-79)
Summary of HHRA 2021 Activities:
Park Towers Apartments Management:
RAD Conversion from Public Housing to Multifamily, Section 8 Project Based Rental Assistance
Program (PBRA): Park Towers management was in two worlds in 2021. We still received operating
funding from the Public Housing Program but all the requirements for the Multifamily, PBRA program
had to be followed.
Asset Preservation, Property Improvements and Energy Conservation
• In Units: New vinyl planking was installed in 9 apartment units at turns. Water saver power flush
toilets were installed in 11 units to save water and reduce toilet plugs. 5 units had Air
Conditioners replaced.
• Replaced the front entry automatic door opener.
• Each of the residents' keyless -entry door systems needed a software update. The building's two,
keyless -entry door systems needed the update too.
63
Park Towers Property Management
• Both Park Towers staff members earned the HUD Multifamily Housing Specialist Certification. The
Housing Specialist earned her boiler license.
• There was one tenant that transferred to a different unit, 13 move -outs, and 17 move -ins in 2021.
• One significant change from the Public Housing Program is that every time a tenant has a change
in income of $200 or more a month, the rent has to be recalculated.
Tenant Services
• Hosted National Night Out and a Pick-up Christmas Diner.
• Park Towers continued as a Senior Dining Program Site through a lease with Lutheran Social
Services. Meals are prepared at the Evergreen Senior Dining kitchen, then delivered to Park
Towers Monday through Friday.
City Center Operations:
Owner Occupied Rehabilitation
City Home huprovernent Grant Pro ram (TIF):
Match Funds:
Live and Work
Personal
Weatherization
Total Project
Cost
$5,000.00
Washington Ave. W
Windows/Doors
$5,000.00
$5,000.00
Boulder Street SW
A/C & Plunbing
$5,000.00
Total
$10,000.00
$0.00
$0.00
$10,000.00
Home hn ovement-Grant
Personal
MRFx L' Loan
Total Project
Cost
$10,000.00
Carlisle
Bathroom Updates
$25,822.00
$35,822.00
$9,848.34
Washington Ave. W *
Windows/Doors
$9,848.34
$19,696.68
$10,000.00
$1,280.00
Hamnnv Lane
Glen Street SW
Decking
Sewer
$10,000.00
$1,280.00
$20,000.00
$2,560.00
$4,537.00
Jefferson Street SE
Boiler & Electrical
$4,537.00
$9,074.00
$10,000.00
McDonald Dr. SW
Siding
$10,000.00
$20,000.00
$4,104.00
Adams Street SE
Windows
$4,104.00
$8,208.00
$4,272.00
Madson Avenue SW
Furnace & A/C
$4,272.00
$8,544.00
Total
$10,000.00
$64,04134
Second Avenue SW
Windows
$r0,000.00
$49,937.34
$29,926.00
$20,000.00
$143,904.68
*Project combined with L&W ram
2021 Total Omer Occupied RehabProjects
10
Rental Rehabilitation
Completed the rehabilitation of 907 Dale Street Apartments (South Dale) and closed out the 2019
Minnesota Small Cities Development Program Grant (SCDP).
Final Budgets
Former
Change
Final
Federal Reverted
$469,751.00
-
$469,751.00
Met small cities goals
Program Income
$105,249.00
-
$105,249.00
Leveraged funds
$214,286.00
$31,715.00
$246,001.00
Exceeded leverage goals
Totals 1
$789,286.00 1
$31,715.00
$821,001.00
64
2022 Realtor Housing Market Predictions:
Q. What do you see for the housing market for Hutchinson in 2022?
A. Buyer demand will continue to put pressure on the already low listing supply. I believe the number
of overall sales will be lower than last year due to this (based on 1st quarter numbers).
Q. What are the most influential factors affecting housing in Hutchinson?
A. Supply, affordability, and interest rates.
Q. There were 35 houses built in 2021. What do you think will happen to new housing construction in
2022?
A. Similar to 2021. 1 believe new construction will be limited by the availability of lots, rising
construction costs, and limited workforce in the trades.
Hutchinson HRA Priorities for 2022:
Park Towers Apartments Management:
• Continued implementation of RAD Multifamily, Section 8 PBRA program at Park Towers.
• Continue to install vinyl planking and power flush water saver toilets at turns.
• Follow legislation that may require sprinklers in high rise residential buildings.
City Center Operations, Owner Occupied Rehab:
• Administer the City Home Improvement Grant Program (TIF available funds), Minnesota
Housing Rehab Loan Program and the Fix Up Fund Home Improvement Loan Program.
• Market available programs throughout the community.
City Center Operations, SCDP Rental Rehab Program:
• Identify and determine interest of potential rental rehab projects.
City Center Operations, Rental Development
• Obtain a Comprehensive Housing Study/Market Analysis for Hutchinson after the 2021
Census Data is available. Develop a subsequent housing plan including potential
resources for needed housing development.
City Center Operations — After Housing Needs Study Completion
• Determine best uses of the HRA Island View Heights lots.
• Identify American Reuse Plan Fund potential housing projects.
65
December 31, 2021 Housing Fund Balances
SCDP City Revolving Local Income Balance
$188,393.14
SCDP City Revolving Program Income Balance
$51,873.89
TIF Available Balance
$280,000.00
Total Funds Available:
$520 267.03
City SCDP New Construction
$78,450.00
Cit
y SCDP Rehab Owner &Rental
$523,689.60
City TIF Owner Rehab
$80,430.75
Total Balance of City SCDP Loans Receivable
$682 570.35
BRA Notes Receivable HBPOP
$9,245.56
HRA Notes Receivable Rehab
$0.00
Total Balance of HRA Loans Receivable
$9,245.56
Humanes�
Primary Services
Under the direction of the Human Resources Director, the human resources department
provides the following organizational development and services:
• Recruitment
• Compensation
• Benefit administration
• Employment policies and laws
• Workers' compensation
• Employee safety
• Labor relations
• Wellness
• Performance evaluations
• Organizational development
• Training and development
• Provide HR services to Hutchinson Utilities
2021 Human Resources Staffing
1.875 Full-time Equivalent Staff — Human Resources Director and Human
Resources/Administrative Technician
Budget
The Human Resources budget is contained within the City Administration budget.
Alignment with Council ENDS and OUTCOMES
The primary purpose of the Human Resources Department is to provide information, support
and consultation to internal customers to assist them in delivering quality, cost effective City
services to the public and accomplishing the ends and outcomes identified by the City Council.
67
2021 Accomplishments
• Completed 17 recruitment processes that included 11 regular full-time/part-time
recruitments; 2 internal assignment recruitments; 1 Housing and Redevelopment
authority recruitment; and facilitated the hiring of all temporary/ seasonal employees
whose numbers were greatly reduced in 2020 due to the pandemic.
• With the assistance of the City benefits consultants - USI, secured a renewal for the
2022 employee health plan with MEDICA with a 5% premium decrease. No increase for
dental, Life or LTD insurance premiums in 2022.
• Drafted for Council consideration and adoption the Pandemic Staffing and Telework
policies as precipitated by the COVID-19 pandemic.
• Assisted in updating the City COVID-19 Preparedness Plan, as needed.
• Communicated and facilitated employee leave due to the pandemic and per the Families
First Coronavirus Response Act (FFCRA).
• Processed all required correspondence, notifications, and recordkeeping related to City
employee positive COVID-19 and close contact situations.
• Drafted the 2022 City of Hutchinson Compensation Plan and Seasonal Pay Plan for
Council consideration and approval in December 2021.
• Completion and implementation of an abbreviated job evaluation and compensation plan
study — previous comprehensive study completed in 2016
• Negotiation of new labor contracts with the Police Sergeant and Police Officer groups
• Participation in the Hutchinson Utilities job evaluation and compensation plan project
and union negotiations with the IBEW Local 949 bargaining unit.
• Assisting the Hutchinson HRA with the HRA Director search.
2021 Performance Measurement Monitoring Data
Consistent with the council's adopted governance statements, priority indicators follow:
Employee Efficiency
The department provides human resource services to all City employees and strives to assist
them in increasing productivity, and balancing resource constraints and increased demand for
services.
* The employee numbers include full-time and regular part-time employee Full Time Equivalents (FTE) only. FTE's are not
calculated for seasonal part-time staffing. The population is based on best available estimates provided by the Minnesota
State Demographer.
68
Employee Decision -Making
In order to accomplish the City's mission, employee involvement in the decision -making process
as well as employee feedback and participation is essential.
Employees participate in significant decision -making processes such as;
• Evaluation and selection of new employees
• Employee Wage Committee recommendations
• Employee benefit program provider and program selections
• Development of safety program components and safety program administrative
functions
• City website and social media content
• Management Team participation
Cost of Employee Services
The total cost of employee services for the City of Hutchinson is estimated to be $13.9 million
for2022, including General Operating and Enterprise Funds. When considering the City's
General Fund budget, as the following chart indicates, investment in Employee Services is
68.2% percent of the City's 2022 General Fund.
OtherExpenses
31.8%
2022 Budget
69
F,
UAT)V!()yee Expenses
68.2%
Health Insurance
A portion of employee costs are for health insurance premiums. Each year, the City considers
vendor and plan design changes in order to keep premium costs low. Hutchinson maintains
premiums competitive with the market average, which results in a savings to both the City and
its employees.
Deductible plans are difficult to compare because the amount of the deductible and out of
pocket maximum varies by city, but the chart below compares our $2,000 / $4,000 and $3,000
/ $6,000 deductible plans with similar plans in 6 of our market communities. The City
negotiated an agreement with Medica for a 5% premium decrease for 2022.
DEFINED MARKET INSURANCE COMPARISON
Premium
City Contributions
Employee Cost
..
HSA Contribution
Hutchinson
Market
Market
Market
Market
HSA Plan
Hutchinson Average
Hutchinson Average
Hutchinson Average
Hutchinson Average
$2k / $4k
$1,808
$1,773
$1,446 $1,402
$361
$446
$2,000
$1,812
$3k/$6k
$1,680
$1,773
$1,344 $1,402
$336
$446
$2,000
$1,812
Labor Contracts
Two bargaining units represent two groups within the Hutchinson Police Department. Labor
contracts are negotiated and administered by the City and one contract has gone to arbitration
in the 10 years since the first unit was organized.
Wt
Labor Measurements
REGULAR FULL TIME AND REGULAR PART TIME RECRUITMENTS
2016* 2017* 2018 2019 2020* 2021*
# of Recruitments
# of Applications Received ®®�®
*Includes Hutchinson Utilities Commission and/or Hutchinson Redevelopment Authority position recruitments.
REGULAR EMPLOYEE ATTRITION
8.8% 8.4%1 5.6% 13.7% 10.5% 15.0%
Attrition'I Time Employee 7.90%/6 4.9% 5.8% 7.2% 10.1% 8.3%
* Includes full-time and regular part-time employees and no seasonal/temporary employees.
2020/2021 Employee Retirements:
• Jay Landreville, Fire Department
• Dolf Moon, PRCE
• Lyle Nybakke, Fire Department
• Tim Peterson, Fire Department
• Brent Reiner, Fire Department
• Dan Sargent, Fire Department
127 years of experience!
2022: A Look Forward
The 2022 human resources department budget allows for continued services including:
• Negotiation of new labor contracts with the Police Sergeant and Police Officer groups
• Administration of new regular and part time/seasonal compensation plans and pay grids.
• Annual employee insurance renewals.
• Employee wellness initiatives.
• Review and updating of the City performance evaluation system.
• Employment policy review and updates.
71
Information Technolo
2021 IT & GIS Services
Primary Services
Under leadership from the Information
Technology Director, the Information
Technology (ITS Department is responsible
for most technology systems across all City
departments including Hutchinson Utilities.
The range of items supported is
technologically diverse and includes:
• Retail Point of Sale systems
(Liquor Hutch)
• Manufacturing process
software (Creekside)
• Law Enforcement applications with
strict security standards imposed by
the FBI
• Electrical Generation systems
(Hutchinson Utilities
Production)
• Mobile work systems (Field Crews)
• Network Architecture for Electric,
Gas, Water and Waste Water
SCADA systems
• General Government applications
• Voice Over Internet Protocol
(VOIP) phone systems and
related contracts
• Radio Systems for Emergency
Services. (IT supports the network,
server and workstations)
• Cell phones and related contracts
• Cyber Security
• Managing, supporting & expanding,
when appropriate, City owned fiber
optic network. (Hutchinson is unique
in that the City owns, manages, and
leases fiber to other entities)
72
• We are available 24x7 to support law
enforcement, Liquor Hutch and
Hutchinson Utilities.
• Manage 50+ yearly software contracts
• Web page management and upkeep
• Credit Card Processing & Security
• PD Body camera support for PD &
Legal
• GIS
Budget
General Operating: $587,90
Revenue: $119,852
Water: $18,388
Waste Water: $25,095
Liquor Hutch: $9,982
EDA: $7,126
HRA: $5,564
CreekSide
$9,543 HUC:
$109,083
Total Managed Budget $772,684
Staffing
3.5Full-Time Equivalent Staff including GIS
2021 Narrative
In 2021, the focus shifted from pandemic related issues to increasing security and network
efficiencies. Remote work options are now a normal offering and from the time of initial
request to implementation is a matter of hours. Network security issues and ransomware
attacks continue to grow. With that in mind, IT efforts concentrated on network security more
than ever. Much of our efforts were put towards creating new policies and procedures to deal
with those issues. This will continue 2022.
2021 Accomplishments
• Year two of a three-year comprehensive Security Review
• Update and/or creation of new network security policies and procedures
• New email server
• Update of Help Desk software for better security and greater efficiency
• Most of out time was spent on network security which will continue in 2022
• Worked with Wold Architects throughout the year updating and modifying network
related items for the new Police Station
• Update and re -write of the Litigation Hold Policies
400
350
300
250
200
150
100
50
0
2021 IT Systems and Devices
Desktop Computers Mobile Devices Phones: Desk and IoT and Network
Mobile Devices
73
2022 Budget
General Operating: $598,135
Revenue: $129,437
Water: $25,801
Waste Water: $26,265
Liquor Hutch: $7,830
EDA: $9,551
HRA: $8,725
HUC: $215,611
Total Managed Budget $909,308
I-oolklno Forward to 2022
2On"!
LOADING...
We will continue with design aspects of the new PD that started in 2021. Anticipating a busy
winter for this project in 2022 as the project will be nearing completion. There is a major
upgrade in body and dash cams for the PD as well in 2022. This year will also be another
busy year for security as we enter our final year of the FrSecure network review.
Other Items for 2022:
• Year three of a in depth security review
• Upgrades of 38 desktops and Laptops
• Upgrades of 2 network switches
• In-depth network policy review which will include a new set of management and
security policies. This is a continuation from 2021
• Continue efforts to leverage the network against Cyber Security attacks
• Based on a potential funding source, we hope to implement a new video surveillance
system across many of our public buildings and a few of our parks.
• We will be re -writing the web pages that will including changes to align with the new
marketing plan and greater efficiencies for job applications and community information
Technology Department Philosophy
Information technology is a cornerstone of all modern organizations, supplying the
communication and business systems necessary to perform daily tasks in the most
efficient manner possible. IT provides a central coordination point to technology
solutions and services for both internal and external customer needs. The IT
Department has made great strides in implementing new technology solutions,
enhancing the technology environment, and collaborating with other departments to
provide cost efficient and effective solutions to their technology needs.
74
Parks, Recreation, Community Education
(Parks and Natural Resources, Burich Arena, Recreation Center/Aquatic Center,
Recreation, Community Education, Event Center/Senior Center/Adaptive Recreation)
Parks and Natural Resources
Narrative
Community events, athletic competitions and large gatherings seemed to make a comeback in
2021. There were only a handful of activities and community gatherings that did not take place
due to the ongoing state of the pandemic. Going through a pandemic taught us some valuable
maintenance procedures that we continued to carry out in our daily operations. We continued
to have seasonal staff lock and secure park shelters/restrooms in the evenings. Years prior,
cleaning of restrooms was only done in the morning, with Police Department patrol locking
them in the evenings. Having hired seasonal Parks staff check, do minor cleaning and secure
restrooms in the evening cut down enormously on the amount of time it took a full-time staff
person to clean the following morning. Essentially this allows full-time staff to get to projects
and other needed maintenance activities faster than we had using the old model. We also only
allowed enclosed shelters to be open by reservation only. Porta toilets remained a fixed
amenity in many of our parks to allow for expanded hours of usage, but less daily
maintenance/vandalism occurrences.
So much of what we do in the parks department relies on the weather. The summer of 2021
was exceptionally dry as compared to previous years. We found it necessary to water trees,
shrubs and perennials that had been planted in the last 3-5 years. Usually plants of this age
can manage through dry conditions, but noticing leaf drop on mature species is a sign that
plants are struggling. The need to water was complicated by a "watering restrictions/ban" in
our community. During this time, we could only water before 9:00 am and needed to pay
closer attention to our operations and prioritize areas of most need. With the dry conditions,
seasonal mowing staff was able to help with other projects consisting mostly of large mulching
areas: the entire Utilities Main office and warehouse on Michigan Avenue, Drift Riders Park,
various trees in parks along the river.
Again, the Parks Department witnessed turn over with full time Parks Maintenance Operator -
Andy Bentz resigning his position to move out of state. The position was posted and interviews
were conducted in early December for the new hire to start in January 2022. Fortunately, a
seasonal Parks Ridgewater college student was able to fill the void during the process to find a
replacement. Summer seasonal Parks staff hired was back up to pre -pandemic numbers. Most
of the 2021 seasonal summer crew was new to the Parks Department operations. Only two
returned from 2020 summer as others moved onto full time internships/careers. This did create
a need for full time staff to allocate more training time than what had been needed in previous
years.
75
2021 Parks and Natural Resources Accomplishments
General Site Improvements:
• Added two memorial park benches with cement pads around Riverside playground o
New banner designs ordered and installed for Downtown Main St. and Hwy 7/15
medians
• "Seat of Sound" sculpture donated to the City of Hutchinson was placed at west end
of Oddfellows Park along Luce Line Trail
• Tartan Park general site improvements (HLI small group)
• Improvements made to Oddfellows Park (Hutchinson Leadership Institute- HLI)
painting of shelter, staining benches/signs, archery frame stained, planting trees,
upgraded electrical and stainless serving counter in the shelter, along with new
granite trail installed from Luce Line trail to shelter
• Removal of old equipment and installation of new playground at JC Women's Park
• New stainless counter built and added into Fireman's Park shelter
• First time site host for MN Pottery Festival at Masonic/West River Park
• Additional lights added into Library Square for the holidays
Athletic Field/Court Maintenance:
• Temporary/trial windscreens put in place at North Park Elementary tennis
courts per pickleball players request
• Work completed on two new softball fields at Hutchinson High school: edging,
base anchors, pitching mound, etc.
• St. A's field renovation project
• Provided field maintenance at six summer baseball/softball tournaments, along
with site host for Sunday fall softball program
• Irrigation reconfiguration and additions at VMF in late fall
Landscaping:
• Legion Park new connecting paver walkway from sidewalk to shelter with plants
added along walkway (Eagle Scout project)
• Eheim Park completion of paver walkway leading to overlook, along with installation
of perennial plants and shrubs (HLI- small group)
• Ambassadors planted trees, put in new perennials and mulched various areas at Elks
Park.
• Reconfigured paver walkway leading up to restroom at Oddfellows Park o McLeod
Veterans Park north paver section reset on main west walkway
Forestry/Natural Resources:
• 79 trees planted in various Parks/School District property with mostly forestry/park
staff and one volunteer group
• Tree removals: 51 of mostly ash (DNR EAB diversification grant project) o Continued
mowing walk paths in Middle School prairie for increased outdoor learning
opportunities for West Elementary and Middle School students
• Invasive removal along riverbank in various parks along Crow River
• Butterfly Garden planted at Girl Scout Park by local Girl Scouts
76
• Select prairies mowed down for invasive control: Roberts, Riverside, East River Park
and Cedar raingarden
2022 Parks and Natural Resources Goals
• Northwoods Park: nature trail established on east side of park using undeveloped
parkland (HLI small group) (April)
• Rotary Park improvements: bike rack & basketball hoop installation (April)
• Girl Scout Park: railing and look out platform constructed and installed (May)
• AFS Park: fabrication of information sign, landscaping around limestone bench, invasive
clean up along riverbank, tree planting, etc. (HLI large group) (May)
• Fireman's Park: installation of themed playground (June)
• Kiwanis Park: painting of Rocket and installation of new playground equipment (July)
• IC Women's Club: construction of accessible trail from road up to playground (August)
• Fireman's Park memorial walk and shelter improvements (Oct.)
• Bike Fleet Project: purchasing of supplies and community program roll out
Mowing
2231, 11%
Equip Maintenance
991, 5%
Winter Functions
565, 3%
Athletic NeWs
2577,1"'.
Paid Time Off
Holiday
572, 26%
me
410,1 %
10, 9% }
Sick
306,14%
Vecetion
578, 27%
Total Park Hours
20427 hours
Landscaping
2334, 11%
General Maintenance
5861, 29%
Admin/Training/Mtgs
2051, 10%
Paid Time Off
2176, 11%
irK�loni
59d
Forestry operations
394, 2%
Personal Holiday
City
28, 1%
Parks/Boulevards
1684,75%
Co-VID related
282, 13%
77
Mowing & Weedwhipping
2231 hours
Utilities
100, 5%
School District
447, 20%
Non -Park Functions
3341 hours
Public Functions
969, 29%
Training/Meetings
222, 7%
ISD 423 Functions
1299 hours snow
183, 14%
Mowing
447, 34%
Landscaping
50, 4%
General
Maintenance Forestry
12, 1%
Athletic Fields
573, 44%
Landscaping
215, 56%
78
River Rentals
278, 8%
Warming House
43, 1%
Administration
1829, 55%
Hutchinson Utilities
382 hours
Mowing
100, 26%
meral
tenance
i,18%
Burich Arena
Narrative
Our season 2020-2021 ice season was interrupted in November by the Executive Order requiring facilities
to be shut down for a 6 week pause. We were closed from November 19, 2020 until January, 2021.
Activities resumed in January, but with many restrictions. We scheduled youth and high school games,
allowing a maximum of 150 spectators for each event. We began offering public skating again in
February. We did not offer our annual ice show due to restrictions.
We originally planned to replace the roof and improve the sidewails (similar to the Recreation Center) in
2021. As we worked through the details of the project, we began to understand that heating and
ventilation concerns needed to be addressed at the same time. The parking lot was due to be replaced in
2025. With infrastructure work scheduled for streets around our facilities, the decision was made to
include replacing the parking lot at the same time, making it a part of the bigger engineering
infrastructure project. This enabled us to take advantage of better pricing. This reallocation of facility
funds required us to defer the roofing/sidewall project to 2022. We bid the project in January and
awarded contracts to Vos Construction and to Rausch Masonry. The project is scheduled to be complete
in late summer 2022, allowing us to begin our ice season in September.
The conceptual construction plan from Stevens Engineering with an upper level concourse, west rink
improvements such as permanent spectator seating, concrete refrigerated floor, and a common lobby
area providing access to both sheets of ice continues to be a long-term goal. This conceptual plan was an
extension of the original study done by Stevens. This plan gives us a road map for the future, helping us
to make decisions on future building improvements. We will continue to work with city staff, Hutchinson
Hockey Association and Hutchinson Figure Skating Association representatives to continue planning on
how to accomplish this project.
Ice time report
4 N HOCKEY s1GURE SKATING SUMMER 1CF BOYS HS MOCK" GMLS HS HOCKEY OPEN SKATING PT'• •-
#ulaF YGe 1'..ny 1�0.0f7<
-2026 203) "is 1010 2020 J021
1+7Y 7 �i}4
pus■ xte.*
%Di4 #31�
7o20 UDi
"77 17"
79
2021113urich Arena Accomplishments
• Through the engineering department and the facilities fund, Arena/Recreation Center
parking lot was replaced. Original lot was constructed in 1987.
• Continued removal of north and south side landscaping at the east rink in preparation
for construction project beginning in spring 2022.
• Recruited and advertised for replacement of Facilities Technician. This position has been
vacant since August of 2020. Patrick Benson was hired and began working in October
2021.
• Completed bidding process and awarded bid for east rink roof replacement, exterior
sidewall improvements. Vos Construction and Rausch Masonry were awarded bids for
the project. Construction window of time will be April -August, completing in time for
September ice season.
• Hired architectural firm Nelson-Rudie to design plans and specifications for east rink
HVAC replacement. This project will continue through the summer with completion
scheduled for September.
• Created plan for east rink lighting replacement. We will work with local electrician and
Solus Electric to replace 36 fluorescent fixtures with LED's. Additional fixtures located
over bleacher/mezzanine area will be replaced as well.
• Completed replacement of exterior light fixtures, from metal halide to LED. We are
achieving our goals of energy savings, increased lighting levels and reduced
maintenance expenses.
• Worked with user groups on extending our season in spring.
2021 Burich Arena Goals
• Guide and manage the east rink construction project. Work with Contegrity Group
(construction managers) Architect/Engineering firm ISG, Vos construction and Rausch
Masonry to have a quality project complete by September 1, 2022.
• Work with architects and engineers at Nelson-Rudie to complete design for east rink
HVAC replacement. Project will be part of the bigger re -roof and sidewall improvement
work. Current HVAC system is outdated; we will improve heating and ventilation
systems to bring conditions up to current standards.
• When construction is complete, through the parks and forestry departments, replace
landscaping around east rink, working to attain lower maintenance expenses.
• Continue to improve and nurture our partnership with HFSA. Participation numbers
remain strong. PRCE continues to offer ISI (Ice Sports Industry), an opportunity for
younger skaters, and HFSA offers a competitive program for the more experienced
skater. The annual ice show is possible only with the city's support and volunteer help
from HFSA.
• Continue long-term planning for major building system's component replacement. Work
with the city's Facility Committee to help prioritize major projects and purchases
involved with the next phases of building improvements.
• Work with the Burich family and Hutchinson Hockey Association on funding for Burich
Arena improvements. These groups have committed to contributing to the future
improvements at the facility.
so
• Work with our user groups as we grow our ice season. We will have longer ice sessions
in spring, summer and fall. Work to best manage how we decide to keep ice in and
when to remove.
• Through our partnership with Citizen's Bank, we will replace the scoreboard in the west
rink.
012016 0 2017 ■ 2018 0 2019 ■ 2020 a 2021
/r//'�� ■■//ter ___ - � �:-�q..
F Gu RE SKATING H Gil SCHOOL PRIVATE RENTA, YO,T4 HOCKEY PRCE
Total Ice flours
2016:242, 2017:248, 2018:252, 2019:251, 2020:0, 2021:150.5
Recreation Center/Aquatic Center
Reopened the Recreation Center beginning January 51h. The Executive Order required us to
keep our buildings closed for a 6 week pause in November and December 2020. Completed the
roofing replacement and sidewall improvement project at the Recreation Center. The building
now has a new roof, new exterior finish and is a model for future improvements at Burich
Arena. We were able to complete the landscaping around the building after contractors were
finally finished with their work. Shifting and combining funds through the engineering
department and the facilities fund allowed us to complete the parking lot replacement and
sidewalk replacement project three years early. This adjustment moved the arena roofing and
sidewall project to 2022.
We will continue to hire, train, and coach quality seasonal employees. These front-line people
are the faces that represent our department. We will reach out to former aquatic staff members
and recruit and train new staff.
2021 Hutchinson Recreation Center/ Aquatic Center Accomplishments
• Worked with Minnesota Department of Health to re -open the aquatic center for summer
2021. We created a plan to open safely, following guidelines from CDC and MDH. Once we
reached opening day, rules and protocols changed, making it easier for our patrons to
attend the pool
• Through the engineering department and the facilities fund, Arena/Recreation Center
parking lot was replaced. Original lot was constructed in 1987.
• Worked with facilities committee and removed and replaced front sidewalks and east
driveway. This project was integrated into the parking lot replacement.
• Worked with ISG and the general contractor, APX to complete Recreation Center roofing
and side -wall upgrade project. The project is now complete.
• Finished the replacement of sidewalk light fixtures. We replaced current metal halide
fixtures with brighter, more energy efficient LED lamps. This will help keep our sidewalk
and parking lot areas better lit.
81
• Completed re -landscaping of the perimeter of the building. Once the contractors finished
their work, we were able to plant and sod those areas. We were able to save the trees in
front of the building.
• Recruited and advertised for replacement of Facilities Technician. This position has been
vacant since August of 2020. Patrick Benson was hired and began working in October
2021.
• Through the Recreation Programmer, pickle ball participation continued to grow. Purchased
dedicated portable nets for exclusive use in the gym instead of sharing with Park
Elementary tennis courts.
• Recruited hired and trained American Red Cross Swimming staff to serve the outdoor pool,
as well as teach our summer American Red Cross learn -to -swim program.
• Worked with pool pump/motor repair company to replace bad bearings in one of the river
propulsion pumps. Pool was out of service for an extended period due to COVID.
• Discovered tile in the lazy river was failing. Hired tile contractor and replaced approximately
85 feet of tile along the water line.
• Worked with contractor to improve control/functions of gymnasium HVAC system.
2022 Hutchinson Recreation Center/Aquatic Center Goals
• Inspect and replace additional tiles as needed in lazy river.
• Plan, design and complete re -painting of front and back entrances of the building. We will
work to complement and match the newer paint scheme that is used throughout the
building.
• Recruit, hire and train American Red Cross Swimming staff to serve the outdoor pool, as
well as teach our summer American Red Cross learn -to -swim program.
• Continue to offer American Red Cross swimming lessons at Carlson Pool and the aquatic
center. Pre-school lessons continue to grow as we make further use of our outdoor spaces.
• Continue to work through the Facility Committee on future facility upgrades.
• Continue and refine maintenance policies and procedures for aquatic center operations.
• Work with maintenance team and summer aquatic staff to plan and respond to various
water quality challenges.
82
Hutchinson Outdoor Pool Attendance
2013-2021
10"
■
■
■ ■ G'
0
_
1
2
3
4 5 6 7 8 9
Series] 2013
2014
2015
2016 2017 2018 2019 2020 2021
Series2 12,564
12,000
11,415
0 _ _4,937 48,712 41,470 0 40,687
2021 Aquatic Center Attendance
June 17,879
July 11,279
August 11,529
"attendance does not include private rentals
2021 Sponsored Events
Thrivent Financial/Hutchinson Health: Free Family Night Swim — 3 dates (1,247 swimmers)
Common Cup: Free Family Night Swim — 3 dates (1,116 swimmers)
Swim Lessons at Carlson Pool
364 participants
Recreation Programming
Narrative
2021 was a great improvement over 2020 as far as recreational activities were concerned. We
were able to hold all of our programs with very little interruption due to Covid issues. Parents
were ready to get their children out of the house and active again. We had some great
volunteerism this past year. In addition to the hundred or more parents that got involved, we
had the high school varsity football players help out with the flag football program. The high
school soccer team coached our fourth through sixth grade soccer program and the boy's and
girls' varsity players helped out with our youth basketball programs. This collaboration is a nice
83
change for the participants as they enjoy the attention of the older kids and they tend to be
more open to being coached when it's not their parent telling them what they should be doing.
350
300
250
g 200
3
R
SY 150
E
E
z 100
50
0
Woor Soccer
Youth Program Participation
2011, 2020, 2021 Comparison
aasebaA T 6askebal
Youth ParticFasatlon
2011 = 18" 2020= 772 2021 =13g6
z9c
223
219 236
Softba9 Flag Football Tackle Footba® Outdoor Soccer rt.r. v„tw,t„e
2021 Recreation Programming Accomplishments
�-2011 ■2020 ■-1
New Registration System We accomplished our goal of going online with our programming
with a new registration system beginning with the fall of 2021. This was a large
undertaking as we needed to get up to speed before the old system was taken off line.
Staff spent the spring and summer learning different facets of the new software. This will
continue to be an ongoing process as we continue to learn different intricacies of how the
new system can operate.
Fall Softball: After starting a fall season due to the lack of games during the summer of
2020 due to Covid, we decided to see if there was enough interest to continue it in the fall
of 2021. We ended up with seven teams to make a very viable league. Bad weather put a
damper on the activity but it looks like a program that has a future in Hutchinson.
Safe Sport Certification: There is a new federal law requiring all adults that work with
children to go through Safe Sport training. This is in addition to the concussion training that
they were already required to take. It also involves a background check. The training is
meant to prepare coaches to deal with a number of different issues that may come up in
the course of a season and to watch for signs that a child may be suffering abuse when
away from their activity. This new law required additional funds ($25 per coach) to pay for
the certifications and required an additional two hours of training for prospective coaches.
Most of our coaches were very accepting of the new requirements and we made a good
start on getting all our coaches certified.
New School Ba//fie/ds., The High School constructed two new softball fields on their campus
specifically for girl's fastpitch softball. Our hope was to incorporate them into our summer
program for use as a fastpitch field and as a youth baseball field. The school decided to
84
keep everyone off the turf for a summer to help the grass to get better established. It
should be ready for play in 2022.
2022 Recreation Programming Goals
• Registration System: While the new registration system is up and running, we still have
much to learn about all its capabilities and how we can improve our online presence. Each
day we come across something unfamiliar that takes some time to work through to get it
working properly for our needs. I'm confident, however, that we should have a good
system that will take us further into the future than our recent software.
• Girls Fastpitch: This past year the Hutchinson Girls' Softball Association decided to disband
and turn the program over to PRCE. While we have been working alongside the association
in years past, this will be our first shot at guiding the program ourselves. We hope to
provide a program that is enjoyable for the participants while keeping the stress levels low
for the parents.
Bunch Arena Construction. The upcoming construction at Burich Arena will cause some
disruptions to our programming. Baseball and softball usually use the facility until the
weather gets better in the spring and it has been our sole facility for indoor soccer for the
past several years. With 32 teams and 265 participants this past year, we are going to have
to do some facility shuffling to keep all the kids playing. We may need to look to the new
Tiger Elementary gymnasium as a potential site for some of the matches along with the
Recreation Center.
High School Participation in Fall Soccer. We are currently working with the boy's high school
coach to determine the possibility of the boy's high school soccer team coaching our pre-
school through third grade programs. We need a lot of coaches in a short period of time on
Saturday mornings in the fall so this would be a great help to us while getting coaches that
have much more experience with the game of soccer.
PRCE Concessions: Our longtime concessions manager has taken other employment so we
will be starting over with someone new in the position. Along with new software they will
be using this year, we usually have a very young staff so it will be essential to find someone
who is capable of managing this area.
70
60
50
M 40
0
E 30
z'
20
10
Adult Program Participation
2011, 2020, 202f Comparison
0
46
30 30
28 28
22 23
14
-
-- — 9
4
0 0 _ 0 0
Basketball SB-Co-Rac SB-Men's VB-Co-Rx VB-Wen's VB-Women's VBSand
Total Adult Teams
2011. 193 2020 = 0B 2021 = 89 ■2011 02020 ■2021
85
Hutchinson Event Center
Senior Center Programming/Adaptive Recreation
Narrative
The Hutchinson Event Center has continued to operate as the Event Center/Senior Center from
2002 to present. During this time, the Hutchinson community has changed drastically in regards
to the spaces and venues that are available to rent and host small to large gatherings. The
Event Center steadily noticed a decline in the number of bookings and the amount of usage for
the Event Center, which in turn, resulted in a decline in revenues. Tax payer dollars have been
subsidizing the operations for the Event Center.
Along with a decline in the number of rentals, staff have seen trends in the way people gather.
Smaller gatherings (weddings) or transitioning events outdoors (due to COVID) have been
noticeable trends of gatherings and events. Individuals who are looking for spaces to rent have
specific details which make their decision for renting at a specific space. Some, not all, are
looking for the "wow "factor or the uniqueness that comes with some of the other venues
available. The Hutchinson Event Center has been maintained and operated extremely well for
the past 20 years extremely well by city staff. However, if the City wanted to be competitive in
the business, the city would need to invest an additional million dollars to make the Event
Center a more marketable event space.
Another thing to consider is the Senior Center space and programming opportunities that are
limited within the current senior space. In the community, we continue to see an increase in the
number of seniors living in Hutchinson. We know there is a huge need for space and
programming opportunities for the Senior population. Along with the growth, we continue to
see changes in what the senior population is doing. Seniors are much more active and want to
be more active throughout their lifetime. As staff, we want to continue to grow and adapt to
meet the ever -changing needs for the senior populations. We look forward to the future and
what opportunities the PRCE Department and the City of Hutchinson can offer to all members of
the community, including the senior population. As there are still many unknowns at this time,
we will continue to be transparent and update the Senior Center with information when it
becomes available. We are excited for the future and look forward to continuing to provide
excellent Senior Center operations and programs.
The City of Hutchinson is looking at getting out of the Event Center business. At this time, PRCE
will not be taking any additional bookings after December 31, 2022. Please be assured that
getting out of the Event Center business does not mean getting out of the Senior Center
operations. The Senior Center and senior programming are a vital aspect of our community. We
want to assure the community that programming operations and opportunities are a major
priority area for the City of Hutchinson.
Hutchinson Event Center Coordinator retired at the end of 2021. In preparing for her
retirement, staffing situation was reevaluated for the longevity of the Event Center/Senior
Center in its current location. Due to the retirement, Coordinator position was transitioned into
a new position. Jennifer Behrendt will start 2022 in a new role as the Hutchinson Event Center
Coordinator. PRCE Receptionist will transition into a new FT role as PRCE Office Specialist to
help fill the void at the Event Center/Senior Center.
86
2021 Hutchinson Event Center/ Senior Center Accomplishments
• February- Sock Knitting class.
• Seniors raised enough money to install a flag pole. They raised more than their goal
and were able to place a "Thank You" plaque alongside the flag pole.
• Book and Puzzle Sale — used to assist with donations for the flag pole installation.
• Drop location for Lion's Club recycling of hearing aids and eyeglasses.
• Host location for 185 events- this includes business, city and private events.
• Continued building maintenance and cleaning.
• Applied for and received a grant from United Way for Adaptive Recreation.
• Continued Senior Programming through safe practices during covid.
• Reviewed and selected candidates for hiring in 2022.
• Modified layouts for various events to assist with quicker turnovers.
Facility Use - *Rentals *Senior Programs
*Adaptive Recreation
2000
1800
1600
1400
1200
1000
800
600
400
200
0
Event Center Rentals Sr. Pro am/Adap Rec Total
■ 2019 419 1,452 1,871
■ 2020 164 289 453
■ 2021 185 775 960
87
Senior Programming & Adaptive Recreation
Participation
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
O
F2:61920021
TOTAL Fellowship Service AR Participants
Participation Programs Programs
14,090 8,632 4,444 964
3,397 2,374 848 175
7,151 708 226
2022 Hutchinson Event Center/Senior Center Goals
• Use social media to promote Senior Programming.
• Develop a plan for Senior Programming if moved to another location in 2023.
• Continue to look into more "active" Senior Programming: walking, river walking, pickle
ball, gardening.
• Knitting project to be completed and items are to be donated to the Common Cup and
the Food Shelf.
• Continue to keep Seniors updated on the future of the Senior Center via Senior
Newsletter.
• Sell Mini -Golf set and other stored items in preparation for sale of the Event Center.
• Continue with rentals as is until the end of 2022.
• Notify past and present renters that no rentals will be taken after December 2022.
• Hired one full time and one part time employee to assist with daily needs.
• Installation of the "Thank You" plaque near the flag pole.
m
Hutchinson Public Schools ISD 423 Community Education
ISD 423 Community Education Accomplishments
Summer (2020): Offer 23 camps and activities July and August after previous spring
closures
Fall (2020): Reassigned to coordinate district childcare program, Tiger Cubs, for grades
K6 at Hutchinson Event Center for hybrid learning schedule August to September. October
organized 14 Community Education activities to take place in November and December.
Reassigned full time back into childcare November 16 while continuing to supervise
Community Education activities that were set up during the childcare break. Childcare
transitioned into Distant Learning after Thanksgiving break.
Winter -Spring (2021): Continue to coordinate district childcare program at Park
Elementary until January 15, 2021. Simultaneously supervise Community Education
activities and organize more after returning to CE office, ended up with 31 Community
Education activities January to May.
Hutchinson Community Education provides lifelong learning
experiences for people of all ages, abilities and cultures
through programs and services. Classes are creatively
designed generated from interests and trends. Instructors
and coaches offer activities in which they have knowledge,
experience or a skill creating a positive impact in our
community with an opportunity to grow as individuals.
Community Education is located in the Recreation Center and
activities are held at Hutchinson Public Schools, Recreation
Center, park shelters, and local businesses.
This school year was challenging, dealing with
closures and restrictions due to Covid-19.
Preparedness plans were put in place following
MDH and MDE guidelines and starting July 1,
2020, we were able to offer activities again. We
held activities and camps throughout July and
August instead of a June and July from previous
years. Coaches must complete summer camps
by July 31, this year Minnesota State High School League allowed camps to be held in August.
Coaches and instructors were eager to offer activities and camps and we were able to offer 23
different activities, all well attended.
Fall season started with the district going to hybrid learning model and I was reassigned to
coordinate district child care, Tiger Cubs. With only one week to prep, hire and staff the
childcare program, required a lot work and help from administration team. Marijean from ECFE
helped write schedules during this week, splitting her time with ECFE and childcare. She was
involved in 2020 spring childcare program while I was laid off. Para's were reassigned to
89
childcare until their regular programs started, which gave us time to hire new staff and figure
out which paras could continue at childcare. This was an extremely fast -paced, frequently
changing staffed program. Student attendance changed daily too with new additions, A and B
hybrid days, every other Friday A or B, families securing or losing childcare elsewhere and
illnesses factored into this constant student and staff change. Flexibility was the buzz word.
Hybrid Learning model started August 2020 at Hutchinson Event Center and ended September
28.
Hybrid Learning restarted November 9 for one week then Hutchinson Public Schools
transitioned into Distant Learning to start after Thanksgiving break where we moved to Park
Elementary. Families had to reapply for childcare, some staff from fall were able to return and
new staff was hired to fill in the gaps. All new student schedules needed to be written. Student
schedule challenges we faced was trying to accommodate all the different grade levels, groups,
lunch schedules while trying to work in some recess time all factored into creating very difficult
schedules. During this time, the Community Education Director retired. Tiger Cubs childcare
ended January 15, 2021. Approximately 100 students applied and met criteria to attend
childcare program. Highest attendance days reached in the 60's and average attendance was
in the 40's. After packing up Tiger Cub, I returned to work at PRCE office.
The remaining winter and spring more Community Education instructors became available
and willing to teach and we ended up organizing 31 activities. These activities were advertised
via Hutchinson PRCE Facebook and by direct email to past participants. Protocols for contact
tracing was established. This included limiting participants, restructuring how some activities
are held and creating daily sign -in attendance sheets for some activities.
PRCE staff participated in online training for PRCE's new registration system, ActiveNet
January and throughout the upcoming months with going live date scheduled in August.
Community Education is required to submit an annual report to the
Minnesota Department of Education (MDE) from school districts having a
community education levy. Report period is July 1 to June 30. This report is
available to view at the Community Education office.
se
wirer/Springg r
Ss;
Fallr14
Summer 23
123
2020-21 Activities
397
IN 200 °aO AM 5OO sm J WO 9W SODD
'lEnrullmem: NHe4d £C4Tere
School Facility Rentals and Usage
Community Education coordinates rentals and usage of Hutchinson Public School facilities,
fields, and parking lots through the online system during non -instructional hours. Each year
items for our school district are entered manually according to the School Board approved
calendar into the rSchool. Items entered may include non- school dates, holidays, late starts,
conferences and work days, July 1 to June 30 of upcoming school year. Staff are asked to
enter their reservations by June 30 and rentals for public open around July 15 each year. This
year rental reservations were delayed and limited to pool and gyms. Auditoriums were closed
until June 2021.
Total rentals and usage show 62 groups submitted 396 permits estimating 172,800 participants.
From the total 12 were rental groups who submitted 72 permits estimating 17,691 participants,
which is less than previous years. Majority of school use was for school related items. This
fiscal year construction of Tiger Elementary school started, which is attached to West
Elementary. This school will be home to second and third grade students.
Facility Use by Building:
Building
Groups
19
Permits
193
Est. # of Participants
57,294
High School
Middle School
24
111
83,969
Park Elementary
West Elementary
7
23
7,000
4
19
4,392
91
Fields -Outdoor Campus
9
50
20,418
Parking Lot
0
0
0
Middle School Activities Submitted by William Tschida
Middle School Activities opportunities are offered to students in grades 6, 7, and 8.
They are under the Community Education funding umbrella and managed by the Activities
Director in Hutchinson High School. Fall 2020 season, seven different activities were offered
with 163 participants. Winter 2021, five different activities offered with 75 participants. Spring
2021, five different activities offered with 155 participants. Throughout the year, two activities
ran as 6-12 program and two activities ran as 7-12 program. Supportive information located in
the chart section.
Middle School Sports
90
_ — 393 Total
80 I
262 Total
70
484 Total
60
50
40
30
20
10
0
'k'01a��
c,
�,r54 ��d" gpyS
Hutchinson Adult Basic Education Submitted by Shari Brunes
Hutchinson Adult Education is located at Ridgewater College in room
145. Our mission is to provide adults age 17+ with educational
opportunities to acquire and improve literacy skills. A certified teacher
is in the room to meet the needs of learners three days a week. Our
schedule includes both daytime and evening hours, and provides the
92
till
�l1�
E-ogdge, Equip. Empower
Glacial Lakes Consortium
opportunity for a total of 18 in -person instructional hours weekly for students. Additional hours
are available for students who want to work remotely. Programming is offered twelve months a
year.
The Hutchinson Adult Education site is co -located with Ridgewater College and the Career Force
Center. Because of this, we have been able to develop programs to assist learners with
educational, employment, certifications, and college goals. We offer free basic computer skill
classes. We academically support college students who do not meet Accuplacer Math cut
scores.
We continue to build on relationships with groups in the community including the public library,
employers, and community organizations. Adult Education is a valuable component to
Hutchinson's Community Education program, meeting the needs of many individuals from the
surrounding area by making them better family members, employees, and citizens.
Adult Basic Education 2020-2O2I
The COVID pandemic continues to affect our program. In April, the classroom reopened for in
person instruction, by appointment, one day per week. In July, we returned to a fairly normal
schedule, with open classroom hours three days and one evening per week, with no
appointments needed. It is no surprise that our attendance hours are down, but this year is
significantly better than last year.
One great outcome of the pandemic is that we had to pivot and offer our services exclusively
online for 14 months. Many of these online classes and support services continue to be
available for students.
For the 2020-2021 state academic year (May 1, 2020 to April 30, 2021), 177 students attended
for a total of 3,313 contact hours. Students who attend 12 or more hours are considered
participants. Hutchinson Adult Education had 76 participants for the year. These numbers follow
a downward trend that the entire state is seeing in adult education. Pre -pandemic, we primarily
attributed this to low unemployment numbers. Currently, the average Adult Education student
attends for 18 hours.
Working with our Regional Transitions Coordinator, Joyce Evenski, we have designed and
delivered online career pathway courses regionally with other Adult Education programs in
Southwest Minnesota. In the past, individual Adult Education programs have offered these kinds
of classes, but it is always a challenge to enroll enough students. We have received Transitions
grant funding to offer courses in Paraprofessional Training, Child Development, and Google
Computer Skills. We have recruited students from Hutchinson to Mankato and beyond. These
courses have been piloted and we are sharing them with other adult educators across the state.
It is an exciting undertaking and we are grateful for Joyce's leadership.
93
Learners participated in a variety of programming including classroom hours, distance (online)
learning, basic computer classes, grant sponsored classes, and collaborative classes with the
college and Career Force.
Students continue to take and pass GED tests. GED Testing Service launched online proctored
testing in 2020, so students may take their official GED tests at home. Of course, there is
disparity here as not all students have the proper equipment or adequate internet, Ridgewater
College reopened its testing center in September 2021. There were 15 Hutchinson Adult
Education students that earned a GED Diploma. The state of Minnesota has a legislative
appropriation this year that provides a $10 discount on each subject area GED test. Our local
Free GED Testing Fund, in partnership with the Ridgewater College Foundation, is being used to
provide additional financial support to students who study in our program for 12+ hours.
A new high school equivalency test, called HiSET, has been approved for use in Minnesota. This
means that students will have the option of taking the GED or the HiSet to earn their high
school equivalency diploma. The process of implementing the HiSet has begun and it should be
available for students later in 2022.
ABE Stafng
Shari Brunes manages the Hutchinson Adult Education program. Ann Trochlil serves as the
Glacial Lakes Adult Education Consortium Program Manager. The Hutchinson teaching staff
currently includes: Joyce Evenski, Barb Haugen, and Mary Horrocks. Alicia Boncquet and Jean
Abrahamson were hired in August 2021 and they are wonderful additions to the team.
Since March 2020, all state professional development has been offered remotely. Staff attended
Summer Institute, Spring and Fall Regional trainings, the Language & Literacy Conference, and
many webinars. Shari and Joyce have presented numerous times to other adult educators
across this state in the past year. Shari is currently serving on the implementation team for
HiSET, and is a member of the State Distance Learning Advisory Team. Joyce resigned from her
position as the Regional Transitions Coordinator for the Southwest Region in June 2020.
Participation and involvement in these and other opportunities make Hutchinson Adult Basic
Education a leader among small rural programs.
ABE Data Summaryinformation
Hutchinson Adult Basic Education
Compared to 2019-20
2020-21 Information
Total Enrollees
195
262
Total Hours
3,313
3% decrease
Total Participants I Must Attend 12+ hours
76
98
Total GED Earners
15
99
94
Early Childhood Family Education (ECFE) Submitted by Marffean Storiie
Early Childhood Family Education (ECFE) offers a variety of class options for
families during the Hutchinson Public School District's school year with sibling
care available for all day time classes as well as a sliding fee scale and
scholarships that support and encourage families of all income levels to
participate in our classes. NO family is ever turned away due to inability to pay.
ECFE classes include separating & non -separating classes
as well as parent only classes, family events, special one-
time classes. New offerings this school year include online
parenting classes, outdoor classes, and summer classes.
ECFE recognizes and supports parents/guardians as a
child's first and most significant teacher. Our mission is to
strengthen each family unit through education and support
while providing the best possible environment for healthy
growth and development of their child.
*PEIFZ
EARLY CHII.DHOOD
FAMILY EDUCATION
The 2021 school year continued to push our creativity as
we tried to regain our pre-covid class participation in ECFE
rye'' classes. With the continued guidance of our school district,
MDE and MDH, we were able to hold classes inside from
February - May, 2022, as long as families stayed 6 feet
- w apart, parents masked, and our numbers in our building met
the square footage guidelines for number of occupants at
- -=a any given time. Our class maximums dropped from 15 - 6
per the indoor classroom covid guidelines and we had to
purchase
folding tables, storage tubs and more supplies and equipment so that each family unit had
their own area to play at while in the building as well as their own tub of play materials so
that materials were not share by more than the one family unit.
Fall of 2021, we were scheduled to move into our new space located at West Elementary.
However, because of construction delays, we were not able to begin inside the building until
November, 2022. That left us with two options N either cancel classes until November or move
classes outdoors again.
95
Thankfully we had prior experience with holding classes outdoors, so it was
not hard to gear ourselves up for the challenge ahead. PRCE came to our
rescue on two separate occasions when the outdoor weather was not in our -
favor and we had to either cancel classes or find a place to hold them
indoors. Lynn, Sharon, Jody and Leslie were gracious and helpful in allowing
-
us to bring our materials over to the gym and offering to help set up our
classes so that we were ready to greet our families on time.
The 2021 year ended with a very special Grandma/Grandpa/ I built a
gingerbread house for the holidays - it was a packed event and everyone had
a fabulous time. ..
2021-2022 Community Education Goals
• Manage, organize and develop activities throughout the year for multiple age levels,
current trends and interests while following District and state guidance
• Network and collaborate with local businesses for community partnerships
• Organize at least one new activity per brochure targeting community needs
• Team -building skills to maintain amicable relationships with instructors, customers, and
staff
• Lifelong learning by participating in Minnesota Community Education Association (MCEA)
Conferences, Leadership Days, training and classes in person or Distance Learning
• Network with MCEA groups for collaborations in programming and facilities
• Marketing and awareness of PRCE activities through Facebook, websites, brochures,
flyers, and in person
• Organize, revise and maintain rSchool Today, Hutchinson Public Schools online
reservation system
• Critical -thinking skills to flag potential reservation/scheduling issues within school
buildings
• Schedule activities at the newest school district's facility, Tiger Elementary
• Develop growth mindset to be adaptable in programming, assignments, tasks and
responsibilities
• Asses aquatics essential functions, propose a seasonal/temporary aquatics manager
• Gain knowledge in PRCE's new registration system, ActiveNet, by researching the
systems functions through tutorials in the help center and customer support
• Explore shifting middle level activities back to high school activities department
2021-2022 Adult Basic Education Goals
• Reach out to learners in the community in need of Adult Education services; ongoing
• Transfer all student logs from paper to digital notes in SID (Student Information
Database)
• Develop online delivery strategies for our learners, including incorporating a HyFlex
model where some students attend in person and other students attend online
• Participate in the High School Equivalency Test Selection Implementation Working Group
92
• Pretest and posttest to successfully meet national targets of 44% of students achieving
a measurable skill gain
• Collaborate with Southwest Minnesota programs to expand regional classes
• Develop grants with partners to assist students as they explore career pathways;
ongoing
• Provide distance learning (online) opportunities using state approved platforms; ongoing
• Offer digital literacy classes for CareerForce clients to empower them in their job search
and increase employability; ongoing
• Collaborate with Ridgewater and CMJTS to offer adult training and certifications
• Partner with Head Start and ECFE/Family Literacy parents to earn a GED or with other
educational needs
2021-2022 Early Childhood Family Education Goals
• Maintain ongoing quality in our ECFE programming
• Restore collaborative efforts with other local community agencies and businesses
• Continue ongoing assessments of our programming
• Continue to evaluate and update parent and child class curriculum
• Restore collaborations with local preschools, daycares and in -home daycare providers
• Continue registration collaboration with PRCE to streamline the process for our families
• Distribution of our Early Childhood Screening postcard to families; restore our Welcome
Baby postcard to parents of a newborn; restore our free baby bucket that contains a
hardcover children's storybook, a free ECFE baby class and other local businesses
information and /or gifts
• Continue our marketing efforts through our new ECFE trifold and Facebook page
• Continue to evaluate current class trends through participant surveys and discussions
within our collaborative groups and adjust class offerings as needed
• Continue to look for grant opportunities that would allow for us to build a nature -
inspired early childhood play space for families with young children.
97
Planning/Building/Zoning Department
Primary Services
Under the direction of the Planning Director, this
department provides long range planning services
and reviews land use plans for consistency with the
city plans. It also regulates properties to ensure
general health, safety, and welfare standards for
the community. In addition, it offers services that
provide minimum standards to safeguard life or
limb, health, property, and public welfare by
regulating and controlling the design, construction,
quality of materials, use and occupancy, location
and maintenance of all buildings within this
jurisdiction.
2021 Accomplishments
• Continued to adjust to pandemic.
• Many more virtual meetings and conference calls.
Overall Functions include:
■ Comprehensive Planning
■ Redevelopment Planning
■ Zoning and Subdivision Administration
■ Administration of State Building Code
■ Building Permit Issuance and Reporting
■ Plan Review
■ Commercial and Residential Building Inspections
■ Zoning and Property Maintenance Enforcement
■ Coordination of City Rental Inspection Program
■ Education
• Kicked -off Growth Area Planning Study
• Continue to support Hutchinson Area Joint Planning Board
• Worked on a variety of Downtown Redevelopment Projects and Planning
• Assisted with Police Department Project Planning
2022 Planning/Zoning/Building Department Overview
• Local Construction Activity has been strong despite Pandemic.
• Unsure of long-term economic impacts of Pandemic.
• Hopeful that construction activity remains strong as things return to "normal".
• Staff will be working with a consultant on a "Growth Area Study" to identify and develop more detailed
plans for future residential and commercial growth in Hutchinson.
• Expected Projects
o New Police Department
o Civil Air Patrol Project
o Century Court West — additional buildings
o Park Elementary Renovations
o Continued Residential Development
m
PLANNING
Primary Services
Overview — Planning and Zoning Department staff provide a variety of customer services, coordination, and
review services, including processing and reviewing of land use applications. The Department provides long
range planning services and reviews land use plans for consistency with city plans. Demographic information,
as well as projections about population growth are monitored and planned for by this department. The
Department also drafts policies and revises ordinances to implement the goals of the City regarding growth
management and development practices. The Department works closely with the Engineering, Housing and
Redevelopment, and Economic Development Departments.
Zoning is the regulation of property to ensure general health, safety, and welfare standards for the
community. The Zoning Department assists residents and applicants with zoning requests, development
requests and flood plain information. Staff coordinates efforts to communicate with the property owner or
developer by arranging pre -development meetings "up -front" to get questions answered at the beginning of
the project. Department staff issues applications for Conditional Use Permits, Variances, Rezoning,
Annexations, Lot Splits, Platting, and Sign permits.
The Planning Department provides the following services.
• Planning Commission support
• Development Review
• Long-range/Comprehensive planning
• Special land use and redevelopment studies
• Point of contact for lands use and zoning inquiries and property research
• Document preparation for land -use decisions, ordinance updates and development decisions
• Permanent sign and zoning permit coordination and administration
• Building permit review for land use and zoning conformity
Zoning, Subdivision and FEMA Flood Ordinance administration
2021 Accomplishments:
Reviewed and Processed:
• 17 Applications for Planning Commission
187 City Land Use Applications
97 zoning reviews of building permits.
• 67 sign permits reviewed.
60 predevelopment/application meetings.
2021 Planning Commission Items
o Site Plan Review located at 225 Shady Ridge RD NW
o Site Plan Review for a New Police Station Facility located at 205 Washington Ave E
o Site Plan Review and CUP for a Civil Air Patrol Training Facility located at 840 Airport RD SW
o Final Plat for Century Court West
o Preliminary Plat and CUP to Amend the Planned Development District at Southfork Ridge Fourth
Addition
o Zoning Ordinance Amendments to Section 154.024 Regarding Easement Areas and Section 154.116
Regarding Parking Lot Requirements
o Final Plat for Southfork Ridge Fourth Addition
o CUP to Remodel/Renovate Park Elementary School located at 100 Glen St SW
o Sketch Plan and Rezone a Property from C-3 to MXD located at 126 & 135 Franklin St NW
o Zoning Ordinance Amendment for the C-3 Downtown Zoning District Regarding Conditionally Permitted
Uses.
o CUP for a Senior Care Facility in an R-2 Zoning District located at 710 Park Island Drive SW
o CUP for a Light manufacturing Business in a C-3 Zoning District located at 125 Main St N
o CUP for a Mural in the Main Street Area District located at 22 1st Ave NE
100
Building Department
Primary Service --
Overview of Building Department - MN Rule 1300.0030 states that the purpose of the MN State
Building Code is to establish minimum requirements to safeguard the public health, safety and
general welfare, through structural strength, means or egress facilities, stability, sanitation, adequate
light and ventilation, energy conservation, and safety to life and property from fire and other hazards
attributed to the built environment and to provide safety to firefighters and emergency responders
during emergency operations.
The code applies to the design, construction, addition, alteration, moving, replacement, demolition,
repair, equipment, installation, use and occupancy, location, maintenance, and inspection of any
building, structure, or building service equipment in a municipality.
The code includes among other provisions: The MN Building Code, the MN Residential Code, the MN
Conservation Code for Existing Buildings, the MN Floodproofing Regulations, the MN Accessibility
Code, the Prefabricated Structures Code, the Industrialized/Modular Buildings Code, the MN Plumbing
Code, the MN Commercial Energy Code, and the MN Residential Energy Code.
The purpose and scope of the MN State Building Code clearly convey the complexity and significance
of building code administration. The practical administration of the code includes education,
communication, plan review, correspondence, permit administration, field inspection, and
enforcement to ensure the purpose of the code is accomplished throughout the breadth of its scope.
Under the direction of the Planning Director and the Building Official, protective inspections provides
the following services:
o Plan Review for residential, commercial properties and State licensed facilities
o Clearinghouse for the issuance of building, mechanical, plumbing, erosion control, grading,
and sign permits.
o Field Inspections
o Enforcement of building, plumbing, and mechanical codes (i.e. new and existing building
construction for fire, life, health and safety)
o Education of homeowners and contractors on the building code, permits, and processes.
101
2021 Accomplishmentc,
o Provided plan review and building inspection services through the Pandemic with minimal service
interruption.
o Adjusted service delivery model as Pandemic dictated.
o Utilized technology to complete virtual inspections.
o Educated property owners regarding permit requirements, licensed contractors and state building
codes
o Provided Inspection and plan review services:
■ New Police Facility ■ Integrations Wellness Remodel
■ McDonald's Remodel ■ WWTF Headworks Improvement
■ Buff City Soap Project
■ River House Food + Drink ■ Counseling Center Remodel
■ River Oaks Addition ■ Solar Array System
■ Split Best Buy Space ■ 3 — New Century Court West Buildings
■ Uponor Phase 2 Renovation ■ Rite Way Addition
■ St. A's Worship Space Remodel ■ Goebel Fixture Solar Array
■ Resonetics Remodel
2500
2000
1500
1000
500
111
Number of Buiiding Permits Issued 2011 Through 2021
102
80
70
60
50
40
30
20
10
0
4000
3500
3000
2500
2000
1500
1000
500
0
CONSTRUCTION VALUATION
MILLION $ VALUATION
2011-2021
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2011- 2021 Total Building Inspections
ij-
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
New Dwelling Unit Construction
40
I-
35
30
25 -
20
15 —
10
5
0 1
36 35
34
27
23 —^
34
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Staff has researched recent trends of new residential construction in this region by surveying other
communities in the area with populations similar to Hutchinson in an effort to attempt to verify if the level
of new residential construction activity in Hutchinson is common to the surrounding regions. The majority
of similarly sized communities in this region indicate construction trends similar to what Hutchinson has
experienced in recent years. As may be expected, communities that are metropolitan suburbs or regional
hubs have experienced higher total volumes of construction. However, the overall trend of construction
activity in the surveyed region is very similar between communities.
100
90
80
70
60
50
40
30
20
10
i
0
� a\o ���$ c5ra w�o\\° \� rkIZ °°�`a ���at ta�O�� ��yoP
104
- 2016
■ 2017
■ 2018
2019
■ 2020
■ 2021
Rental License Program
The City adopted the rental program in 2008 and the Planning/Building/Zoning Department took it over from
the Fire Department in 2014. The rental inspection program data suggests that most property
owners/managers are planning and preparing for the inspections. Staff are happy to educate new rental
property owners and new managers who are not familiar with the expectations of the rental program. Most
experienced property owners are actively checking units ahead of time and preparing them prior to the
inspection. They are making repairs to improve the general condition of the units and this greatly reduces the
likelihood of major violations and subsequent enforcement action. City inspectors are now being viewed as a
resource to help the business operate successfully and the tenants express the support they receive when
there are problems or concern that go uncorrected.
The Pandemic paused the rental inspection program in 2020 due to State guidelines on entering occupied
dwellings for inspections. Staff was able to complete a portion of the inspections in January, February, and
March before things were shut down due do the Pandemic. Rental unit inspection resumed in fall 2021.
Rental Inspection Report from January 1, 2021 to January 1, 2022:
• Rental Property Initial Inspections 46
• Rental Property Re -inspections 10
• Number of Units Inspected 231
• Number of Units with No Violations 191
324
290
227
283
265
302
241
52
48
48
49
49
49
49
29
26
25
27
24
27
27
24
26
27
27
27
27
28
49
50
50
51
52
52
56
Police Department
About the Department
Department Staff — As of December 31, 2021
25 Sworn Officers
17 Civilian Staff
1 Police Chief
1 Child Protection Officer
1 Lieutenant
1 School Liaison Officer
4 Patrol Sergeants
1 Drug Task Force Agent
1 Investigative Sergeant
3 Full-time Hospital Security
12 Patrol Officers
7 Part-time Hospital Security
1 General Investigator
1 Community Service Officer
Fleet — As of December 31, 2021
4 Police Administrative Specialists
1 Evidence Technician
2 Part-time Patrol Officers
1 Police Chaplain
0 2 4 6 8 10 12 14
0 Marked Squads Unmarked Squads OSWATVehicles ■Trailer
106
2021 Crime Statistics
Part I Crime
The FBI classifies Part 1 crimes as aggravated assault, arson, auto theft, burglary, larceny, murder, rape, and
robbery. The Hutchinson Police Department's 2021 Part I crimes are similar in comparison to 2020. No drastic
differences between any of the Part 1 crimes. In
250 2020, there was an overdose in a local
convenience store bathroom and charges were
requested for 3ro degree homicide on the
individual who sold the deceased person the
drugs.
200 200 The calls for service were down by about 1200 for
2021 compared to 2020, but the amount of arrests
were almost the same.
150
100
50
25
13 11 18 4
01 01 55 20
0
55a�\� P�yoo �r0� ixatJ
a�
2021 2020
2021 VS 2020
2021 2020
Calls for Service 16,329 17,549
Arrests 365 1 360
107
Part II crimes are "less serious" offenses and include: Simple Assaults, Forgery/Counterfeiting,
Embezzlement/Fraud, Receiving Stolen Property, Weapon Violations, Prostitution, Sex Crimes, Crimes Against
Family/Child, Narcotic Drug Laws, Liquor Laws, Disturbing the Peace, Disorderly Conduct, Gambling, DUI, and
Moving Traffic Violations. Most 2021 Part II crimes are similar in comparison to 2o20 with the exception of
simple assaults which dropped by 22 and DWI's dropped by 14. There was also a large increase in All Other
Offenses. In 2021, there were a significant amount of catalytic converter thefts. Along with a theft charge on
these incidences, a tamper with motor vehicle charge is also added. A tamper with a motor vehicle charge
would fall under, All Other Offenses, under Part II crimes.
Weapons g9
Vandelism
Vagrancy 5? 14
Stolen Property
Simple Assaults
Sex Offenses
Prostitution
B
Offense Against Family & Children
35
Liquor Laws
Gambling
B
Fraud
Forge ry/Cou me rfeiti ng
Embezzlement
B
DWI
Drug Abuse Violations
Disoderly Conducts/Disturbance
All Other Offeneses
0
we
91
103
18
113
S1
--
-
61
9
53
20 40 60 80 100
2021 2020
108
1 125
105112
114
120
169
140 160 180
The patrol division of the Hutchinson Police Department is the face of the department. Many community
members only ever have contact with a patrol officer, making their impact crucial to the integrity of the
department.
Our patrol officers interact with community members when they respond to calls for service, take reports on
incidents that have occurred, patrol neighborhoods, enforce traffic laws, and engage at community events.
Our patrol officers also conduct criminal investigations by interviewing victims and suspects, reviewing video
surveillance, and collecting evidence.
Our patrol officers are very well trained in many areas, including DWI detection and enforcement, mental
health crisis, first aid and CPR. They also work closely with businesses on shoplifting and fraud incidents.
The department has twelve full-time officers and two part-time officers assigned to the patrol division. This
area is led by four patrol sergeants.
During the 2021 year, officers arrested 39 people for DUI's. This was less
than the previous year by 13. These DUI's are not all alcohol related, DUI's
some are the result of drugs. The Hutchinson Police Department forfeited
11 vehicles as a result of these DUI's' and drivers fleeing from officers in 52 39
motor vehicles.
2021 ■ 202O
In 2021, officers initiated 1971 traffic
Verbal Warnings 1448 1763 stops.
There were about 300 less citations and 120
511 less verbal warnings issued in 2021 than
Citations 631 2020. It is important to note that not all
citations and verbal warnings issued are from
0 500 1000 1500 2000 traffic stops.
2021 2020
In 2021, officers responded to 339 accidents and
completed 253 state crash reports. There were 22
personal injury crashes, 35 hit and run crashes, and 196
property damage crashes. Of the 339 crashes, 86
required either no officer assistance or had minor
damage that a state crash report wasn't required.
2021 R.
Property Damage Crashes 196
Personal Injury Crashes zz
Hit and Run Crashes 35
No Report 86
109
Statistical Information
The Hutchinson Police
Department responds to calls
for service twenty-four hours
a day and seven days a week.
The busiest time frame for
the officers in 2021 starts at
approximately ipm with a
gradual decrease until 6pm
when it increases slightly and
then gradually decreases
again.
Calls for Service by Hour
1200
1000
800
600
400
zoo
0 111111111111111111111111
O .1 N m '[f' N lO f1 W M O .--I N O O O O O O O O O O O
.1 .1 .1 0 0 0 0 0 0 0 0 0 0 0
m -t vi in F, oo 0) o .1 N rn
January started out average 1 1 1 1 1 1 1 N N N N
compared to all off 2021.
February was the lowest
month for calls for service. Calls for service started to trend up after February, reached the highest in June
and decreased gradually after that till the end of the year. There was a small increase in December, but
nothing significant.
Calls by Month
2000 1626 1660 1530 1456
1500 1267 1086 1279 1384 1392 1234 1234 1257
1000
500
0
Calls by Days of the Week
Friday was the busiest day of
3000 2482 2421 2455 2574 2694
the week for calls for service
2500 2081
for the Hutchinson Police
2000 1698
00
1500
Department. Thursday was
1
close behind Fridays with
500
Mondays, Tuesdays and
0
Wednesdays all very similar as
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
well.
110
Training
Each year the staff of the Hutchinson Police Department participate in various trainings. These trainings allow
for staff to stay updated on all current policies, information, and technology within law enforcement. The
Minnesota Board of Peace Officers Standards and Training (POST) requires officers to complete 48 hours of
continuing education every three years in order to renew their POST license.
Emergency Vehicle Operations and Police Pursuits (EVOC)
Officers shall demonstrate the knowledge and skill needed to reduce criminal and civil liability when involved in
emergency and non -emergency vehicle operations mode. This training must be designed to give officers both
skill and decision -making ability so that emergency vehicle operations can be resolved safely and successfully.
This will be accomplished with a minimum of eight hours of training, which will include a minimum of four
hours of in -vehicle operation. Simulators may be used in addition to in -vehicle and classroom training but will
not be used to replace the minimum four hours of in -vehicle training. It is recommended that simulator
training be used for decision making training.
Field Training
The field training process is a 16-week, 640-hour requirement for all new Hutchinson Police Department
Officer hires. New officers must show progression in job performance and complete all four phases to pass the
field training process and become an independent officer.
Patrol Online (PATROL)
To help cities reduce losses related to police liability, LMCIT has developed PATROL —Peace officer Accredited
Training Online. While PATROL delivers 12 new POST -accredited courses per year, subscribers can earn more
than 40 POST credits per year when they also take PATROL training on POST mandates for Use of Force and
Crisis Intervention and Mental Illness Crisis; Conflict Management and Mediation; and Implicit
Bias, Community Diversity and Cultural Differences. PATROL helps officers stay current on Minnesota
legal issues and is based on Minnesota case law. Content is developed with input from police liability experts,
insurance defense attorneys, and local law enforcement agencies. Each month, a new course is available for
one POST credit.
Additional Training for 2021:
➢ Handgun and Rifle Qualifications
➢ First Responder Certification
➢ SOTA- 2 Officers- Special Operations
and Tactics Ass.
➢ Taser Recertification
➢ Basic SWAT in St. Cloud — sent 4
Officers
➢ De-escalation/Intervention Strategies
for Persons in a Mental Illness
Crisis/Crisis De-escalation Techniques
for Community Safety
➢ Special Response Team (SRT)
➢ City of Hutchinson Safety Training
➢ Standardized Field Sobriety Training /
ARIDE Training
➢ MN Criminal Interdiction Training
111
Investigations
The Hutchinson Police Department Investigations units is comprised of five licensed officer and one evidence
technician. This unit is supervised by a Sergeant. The four officer positions within the investigation's unit are
the School Resource Officer, Drug Task Force Officer, Juvenile/Child Protection Officer, and General
Investigator. All of these positions are rotating assignments which allows all officers to gain valuable
investigative experience.
v�fuoND`9L
The investigations unit offers valuable support to the patrol
officers by following up on investigations that require more time
than the patrol officers can give to an incident. The investigations
unit is able to spend more time gathering information from
witnesses, suspects and the courts to help solve the crime.
The General Investigator position assists the patrol staff with
more complex investigations. The General Investigator also
works with social services and specializes in working with
vulnerable adult cases.
The Drug Task Force position is with the Southwest Metro Drug
Task Force. This position works with other counties and cities in
drug related incidences to get as many illicit drugs and guns off the
street as possible.
Euio��c�
The evidence technician position maintains the collection of all the evidence and property logged into evidence
by all officers. This position also sends evidence to the MN BCA for lab testing for DUI's, drugs, and
fingerprinting. The evidence technician also properly stores and preserves all evidence for future
investigations and past investigations.
112
School Resource Officer
The Hutchinson Police Department is contracted with the Hutchinson School District for the School Resource
Officer. The school resource officer position is a four-year rotating position within the police department. The
school resource officer works closely with the Hutchinson High School and Hutchinson Middle School staff and
students.
The School Resource Officer has an office within the Hutchinson
High School and is in the school buildings daily from lam to
3pm. The relationship the School Resource Officer builds with
the staff and students is a great asset for the Hutchinson
School District and the Hutchinson Police Department.
There were a total of 258 calls for service at all
the schools in the district in 2021. There were
96 incidents at the High School, 58 at the
Middle School, 82 at Park Elementary, 6 at Tiger
Elementary and 16 at West Elementary.
113
Child Protection Officer
The Child Protection Officer is a position that works closely with McLeod County Social Services on a daily
basis. This is a close relationship that we have determined works best to help children and families in the City
of Hutchinson. The Child Protection Officer is a five-year position in the investigative unit.
No Specific Allegations
Abuse/Neglect
Drug/Alcohol Use
Abuse/Sexual
Abuse/Physical
Abuse/Emotional
Child Protection Incidences
20 40 60 80 100 120
The Child Protection Officer also works closely
with the BCA and the predatory offender
compliance program. This position assures that
all the predatory offenders within the city of
Hutchinson remain compliant with the BCA.
114
SWAT
The Hutchinson Police Department's Special Response Team (SRT) partners with the McLeod County Sheriff
Department's Emergency Response Unit (ERU) to provide officers for tactical response services. The joint
tactical team operates under the team name, Crow River SWAT. Officers selected to the team receive
advanced training to respond to situations needing high -risk warrant services, hostage, crowd control, hostage
negotiation, snipers, and critical incidents.
The Hutchinson Police Department's SRT includes highly trained officers who use specialized weapons and
tactics to handle high -risk situations beyond the scope of the patrol and investigative divisions. Examples of
situations for which a SWAT team would be used include high -risk arrests and warrants, barricaded and armed
suspects, hostage rescue, crowd control, dignitary protection, and disaster response. The team's primary goal
is to resolve situations as safely as possible for everyone involved.
Crow River SWAT has approximately ten officers from each department on the team. The team also includes a
separate crisis negotiation team that works with the tactical team to safely resolve these critical incidents.
Officers selected and assigned to the team train one day per month on skills and equipment special to the
tactical team's mission. In order to be selected, officers need to have been an officer for a minimum of two
years, pass the physical fitness assessment, show proficiency with firearms and defensive tactics skills, and
have exhibited sound emergency response skills as a patrol officer.
115
High Risk Calls
January 28, 2021 200 block 11t" St E (Glencoe)
Officers were dispatched to a domestic incident at a residence. The suspect armed themselves with a handgun
with children inside the residence. The reporting person was able to escape the house to the first responding
officer. The children went into the basement for safety. The suspect remained upstairs. SWAT was paged to
respond. MCSO responded with the armored rescue vehicle. The children were able to be extracted from the
residence unharmed. Negotiations were started with the suspect, who after a short time surrendered to law
enforcement.
February 28, 2021 700 block Main St N (Hutchinson)
The SWAT team was activated to conduct a high -risk arrest/search warrant for a homicide suspect that occurred
in Meeker County. Intelligence was received the suspect may be hiding in the residence. The SWAT team was
briefed and executed the warrant. The Armored Rescue Vehicle was used to secure the arrest/entry team while
efforts were made to get the suspect to surrender peacefully. The crisis negotiation team (CNT) was used to
communicate with the public announcement system to any occupants of the residence and to evacuate neighbors
that could not shelter in place. The CNT was utilized in an effort to get the suspect to surrender, but there was
no answer. Team members thought they saw possible movement and a cell phone upstairs. Interviewed people
that left the house prior to arrival stated he wasn't there and the place was empty. The Bloomington Bomb
squad and Annandale PD assisted in using drones to clear the residence as much as possible. The SWAT team
ultimately conducted a slow search. The suspect was not there. The residence was turned over to the BCA and
Meeker County investigators.
March 1, 2021 400 block High St NE (Hutchinson)
The SWAT team was activated to conduct a high -risk arrest/search warrant for a homicide suspect. Intelligence
was received by BCA investigators that the suspect was hiding in an apartment. SWAT team was briefed and
deployed. The surrounding apartments were evacuated. The CNT made call to the suspect and he confirmed he
was inside. After a short negotiation, the suspect surrendered peacefully to the SWAT arrest team. The suspect
was turned over to Meeker County and transported to their jail. The apartment was cleared and deemed safe.
It was turned over to the BCA investigation team.
March 2, 2021 19000 block Falcon Ave (Lester Prairie)
Officers and deputies were called to a business regarding a hostile customer. The victim told police a customer
was irate on the phone after they refused to sign a prescription. The suspect threatened to come to the business
and "shoot it up." Deputies were able to locate the suspect driving and conducted a high risk traffic stop. The
suspect demanded the officer shoot him. Deputies were able to deescalate the situation and took the suspect
into custody. The suspect was charged with terroristic threats.
May 17, 2021 700 block Hwy 7 E (Hutchinson)
Officers were called to a hotel regarding an assault and threats call. The victim and witnesses stated the suspect
assaulted another male. The suspect stated he would shoot any officers that showed up. The suspect barricaded
himself into this hotel room. Responding officers attempted to negotiate and get the suspect to come out, but
he refused. The SWAT team was activated regarding a possibly armed barricaded suspect. The CNT made
several attempts to get the suspect to surrender, but he refused. Ultimately the SWAT team utilized the armored
vehicle fixed breaching arm to breach the motel room door. Chemical irritant was used to get the suspect to
come outside. The suspect eventually came outside and less lethal munitions were used to take the suspect into
custody.
116
May 25, 2021 5000 block Hwy 212 (Glencoe)
Deputies were called to the residence regarding a threats complaint. The victims stated the suspect had mental
health/TBI issues and was using drugs. The suspect made threats that he was going to kill his family. He also
made suicidal comments about potential suicide by cop. Due to the immediate threats to others, it was decided
to use Crow River SWAT to make contact with the suspect. Crow River SWAT/Deputies were able to evacuate
other family members. They used the Armored Rescue Vehicle to approach residence. They made commands
over the loud speaker for the suspect to come outside. The suspect followed commands and was taken into
custody without further incident.
May 31, 2021 16000 block 10111 St (McLeod)
Deputies responded to a domestic situation possibly involving firearms. Deputies learned the suspect had made
threats that he was going to kill his family then kill himself. The suspect was currently on the property trying to
find his guns/ammo. Deputies called for assistance from Hutchinson PD and Crow River SWAT. They were also
assisted by the MN State Patrol. While deputies were waiting for assistance and evacuating innocent people, the
suspect appeared on the property. He was given commands and complied. He was ultimately taken into custody
and charged with domestic violence.
August 21, 2021 Winstock Music Festival (Winsted)
Deputies were alerted of a possible armed person with an assault rifle walking around one of the campgrounds.
Deputies searched the area for the suspect. Fearing a possible active shooter situation, it was decided to activate
Crow River SWAT for added security. Crow River SWAT arrived and set up a sniper team near the main stage
area. Other SWAT officers were in the area in the ARV to respond if needed. Ultimately it was determined
somebody was showing a new rifle to his friends in the campground area and that is likely what the citizens
reported.
November 18, 2021 700 block Dale St (Hutchinson)
Officers were sent to a residence on a possible suicidal person armed with a handgun. It was later determined
another person was with them and there was an open 911 call coming from inside the residence. It was unsure
if the person was being held against their will. Crow River SWAT was activated for a possible hostage situation.
Officers set up a perimeter and reaction team. The suspect was ultimately spoken to via phone and came outside
without incident to awaiting officers. It was determined no crime had been committed and the person was taken
to the hospital for mental health treatment.
117
Records Units
The records units for the Hutchinson Police Department consists of four full-time employees. The records unit
has a variety of tasks and assists the Chief, Lieutenant, investigations, and patrol officers with daily duties.
The records unit answers phone calls from the public and assists the citizens who come into the lobby of the
police department. Citizens come into the lobby for a wide
variety of reasons, but most common are records requests,
animal licenses, and fingerprinting,
The records unit is an intricate and vital part of the police
department. They ensure reports are processed properly,
sent to the City of Hutchinson and McLeod County Attorneys
for charges on offenders. They handle the dissemination of
officer's reports to social services, probation, and citizens
who request data. They also complete public data requests,
permit to purchase handgun applications, monthly statistical
data reports to the State of MN, the billing for the police
Public Records Request 593
Permit to Purchase/Conceal Carry
Background Requests from Other
Agencies 506
Other Agency Background
Requests (Social Services,
Probation, Housing and
Redevelopment Authority) 219
department, the annual police report, and ensure everyone
in the police department is current on their required training through the BCA.
Code Enforcement — Nuisance Property
The Hutchinson Police Department has a Code Enforcement Officer who is assigned to all the nuisance
properties in the City of Hutchinson. The Code Enforcement Officer is a three-year rotating position. This
position maintains the files and speaks to the owners of the properties to try and get the properties in
compliance with City of Hutchinson Ordinances. The Code
Enforcement Officer also does random checks on these
properties to try and determine if work is being performed
to get these properties in compliance. If the properties are
brought into compliance, the officer will close out the
report. If the properties are not brought into compliance
within the agreed amount of time, the Code Enforcement
Officer then issues a citation or sends a report to the City
of Hutchinson Attorney requesting charges against the
owner.
118
Open Nuisance Properties
64
39
33
2021 2020 2019
Hospital Security
The Hutchinson Police Department has three full-time hospital security officers and five part-time hospital
security officers. The contract between the Hutchison Police Department and Hutchinson Health went into
effect in 2013. This contract provides for a security officer to be on hospital grounds 24/7. The security
officer has a variety of job duties while out at the hospital and is a great liaison between the Hutchinson Police
Department and Hutchinson Health Employees when assistance is needed.
4*. Hutchinson Health
HealthPartners®
1400
1350
1300
1250
1224
Hospital Security Calls Per Year
1285
1200
1150 ri 1
2021 2020
1368
2019
119
Axon Body Cameras/Fleet
The Hutchinson Police Department implemented Axon body cameras in 2016 with a donation from a local area
business. This was a great push in getting AXON body cameras for every officer in the department.
Hutchinson Police Department policy states that officers must have their body cameras recording during any
interaction they are dispatched to or come upon.
Total Uploads
Number of Videos
22743
Hours of Videos
4733.76
GB of Videos
8218.65
Active AXON Evidence
Number of Active Videos
13543
Hours of Active Videos
3207.01
GB of Active Videos
5546.65
Average Per Day
Number of Videos
Uploaded
62.31
Hours of Video Uploaded
12.97
GB of Video Uploaded
22.52
Categories Files GB Files%% GB
Report
15804
4178.4
70.05
72.76
Traffic Stops
4610
1006.56
20.43
17.53
No Action Take
1853
473.18
8.21
8.24
Accidental Recording
130
15.34
0.58
0.27
Uncategorized
57
46
30.78
0.25
0.54
Permanent Retention
Admin Use Only)
18.87
0.2
0.33
Training
28
1.62
0.12
0.03
Officer Injury
17
8.09
0.08
0.14
Pending Review
7
1.23
0.03
0.02
Critical Incident
6
7.63
0.03
0.13
Administrative (Supervisor
Only)
2
0.79
0.01
0.01
120
Public Works (Engineering, operations & Maintenance, Water, Wastewater)
Core Services
Essential Services
(Programs, services and infrastructure
without which the city would not survive)
• Snow removal & ice control
• Street maintenance
• Emergency management
• Storm water & flood management
• Wastewater treatment & collection
• Water treatment & distribution
Critical Services
(Programs, services, and infrastructure
critical to maintaining essential services or
necessary to support essential services)
• Bridge maintenance
• Engineering services
• Forestry operations
• Environmental services
• Fleet management
• Facility management
• Planning & Development services
• Right -of -Way management
• Risk management & legal review
• Biosolids management
• Dam maintenance
• Lift stations, wastewater systems
• Meter reading
• Environmental regulations
• Street sweeping & cleaning
• Utility coordination
• Utility locating
Basic Services
(Programs, services and infrastructure that
significantly improve the quality of life or
meet basic needs of the majority of citizens)
• Assessment administration
• Cemetery services
• GIS mapping
• Infrastructure planning
• Mosquito control
• Property data management
• Residential leaf vacuum service
• Streetlights
• Sump pumps & drainage
• Traffic operations
• Trail/sidewalk maintenance
• Transportation planning
Taraeted Services
(Programs, services and infrastructure that
significantly improve the quality of life or
meets special needs of a specific subgroup
of citizens)
• Airport
• Alleys
• Parking Lots
• Public Event support
• General customer service
Special Services
(Programs, services and infrastructure that,
If removed, would not significantly reduce
the quality of life of citizens)
The majority of Public Works services are
classified as Essential or Critical services •
Many of the services classified as Basic
Services and Targeted services either support
higher -level services or improve the quality of
life within the City.
121
Crow River fountain Lnotinservice
�
2021 Public Works
Budgeted Expenditures
(all departments, CIP)
30.00 FTE
$27,956,623
Engineering
Primary services
Under the leadership of the Public Works
Director/City Engineer, Engineering provides
the following primary services:
• Develop, design & deliver public
infrastructure projects.
• Prepare & administer Capital
Improvement Plan (CIP), associated
financing.
• Oversee public improvement
construction contracts & funding
from outside sources.
• Calculate special assessments
associated with improvements, assist
with assessment records and
searches.
• Correspond and coordinate with
other agencies & utilities regarding
infrastructure improvements affecting
the City.
• Review & provide support to
developments by private entities and
the City's EDA.
• Oversee & ensure compliance with
environmental regulations for water,
wastewater and storm water.
Workforce (3.40 FTE):
• Kent Exner
• John Paulson
• Keith Messner
• Chad Muchow
• Jocelyn Jacobson
• Seasonal labor
2021 Engineering budgets
DPW/City Engr
Proj/Env/Reg
Sr Engr Tech
Sr Engr Tech
Engr Secretary
0.20 FTE
Engineering:
$
465,890
CIP-Infrastructure:
$
2,754,594
CIP-Storm Water
$
639,000
CIP-Wastewater
$
6,200,000
CIP-Water
$ 700,000
All Funds:
$
10,759,484
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Engineering
Wages,
380,435
Supplies,
8,700
Svc & Chgs,
72,805
M sc.,
3,950
Engineering, under the guidance of the Director of Public Works/City Engineer and in
cooperation with other departments, facilitates cost-effective management of the Ci"
physical infrastructure to meet the Ci" vision, goals, policies, ordinances and standards
Specifically, this department works to plan, administer and deliver a variety of
improvements that provide a multi -use transportation system, quality public facilities and
quality utility services (water, sanitary sewer, storm water), while striving to create a
functional, connected, clean and healthy environment in the City.
122
Operations & Maintenance:
Streets & Roadways, Cemetery, Airport, Storm Water and HATS Facility
Primary services
Under the leadership of the Public Works
2021 Operations & Maintenance budgets
Manager, Operations & Maintenance
provides the following primary services:
Streets & Roadways:
$1,588,741
Storm Water:
$1,731,288
•
Roadway maintenance
HATS Facility:
$ 648,634
•
Snow removal & ice control
Cemetery:
$ 138,320
•
Distribution system maintenance
Airport:
$ 131,541
•
Collection system maintenance
Misc. Infrastructure
$ 400,000
•
Vehicle & equipment maintenance
CIP-Cemetery
$ 10,000
•
Forestry operations
CIP-HATS Facility
$ 140,000
•
Facility maintenance
CIP Storm Water
$ 100,000
•
Cemetery operations
•
Traffic operations
CIP Streets
$ 375,100
•
Street sweeping & cleaning
CIP-Wastewater
$ 80,000
•
General services
All funds:
$ 5,343,624
•
Administration & training
Operations & Maintenance
Workforce (11.20 FTE):
100%
•
John Olson Public Works Manager
•
Bruce Fenske Maint. Lead Operator
90% Wages,
•
Donovan Schuette Arborist
1,087,808
80°�°
•
Tim Read Equipment Mechanic
•
Jerome Burmeister Sr Pub Wks Maint Operator
70%
•
Pete Dehn Sr Pub Wks Maint Operator
Svc & Chgs,
•
DeNeil Thompson Sr Pub Wks Maint Operator
60% 1,065,062
•
Justin Rusch Sr Pub Wks Maint Operator
•
James Trnka Pub Wks Maint Operator
50%
•
Mitchell Thompson Pub Wks Maint Operator
40% Capital,
•
Geoffrey Hansen Pub Wks Maint Operator
793,165
•
Joshua Alnes Pub Wks Maint Operator
30%
•
Sonja Muellerleile Pub Wks Secretary
Dept, 240,000 Supplies,
•
Seasonal labor 2.05 FTE
20% I 669,850
Debt prnt,
Transfer,
225,789
10% 108,150
Misc.,
0%
48,700
Operations & Maint. budget
Jared Merges
Hired
Pub Wks Maint Operator (Fac)
01104121
Geoffrey Hansen Lateral
Pub Wks Maint Operator (Uti)
01104121
Josh Schulte
Promoted
Sr. Pub Wks Maint Operator
01113121
Josh Schulte
Resigned
Sr. Pub Wks Maint Operator
01125121
Jared Merges
Promoted
Sr. Pub Wks Maint Operator
02107121
Justin Rusch Hired Pub Wks Maint Operator (Fac) 04105121
Jared Merges Resigned Sr. Pub Wks Maint Operator 09127121
Justin Rusch Promoted Sr. Pub Wks Maint Operator 10131121
Joshua Alnes Hired Pub Wks Maint Operator (Fac) 12113121
Public Works operations & maintenance is interdisciplinary. Employees regularly work across
all divisions on a regular basis The Director of Public Works/City Engineer and the Public
Works Manager are the two senior management positions The Management Team consists
of them, along with the Water Supervisor, Wastewater Supervisor, and
Project/Environ/Regulatory Manager. The Public Works Manager oversees operators,
mechanics and technicians involved in day-to-day service provision, operations and
maintenance of infrastructure, equipment maintenance and facility maintenance.
123
Water
Primary services
Under the leadership of the Water
Supervisor, Water provides operations and 2021 Water budgets
maintenance services in the following areas:
• Water treatment
• Treatment plant operations & maintenance
• Water towers and storage
• Water meters
• Distribution system maintenance
• Response to service interruptions
• Coordination with improvement projects
• Utility locates
• Facility maintenance
Workforce (5.05 FTE):
• Eric Levine Water Supervisor
• Mike Lien Sr Water Plant
Operator
• Jim Navratil Water Maint Operator
• Seasonal labor 0.25 FTE
Water:
CIP-Water
$4,763,416
$ IZZ,000
$ 4,885,416
A half -cent sales tax generates revenue of
over $750,000 per year. This revenue helps
to pay outstanding treatment plant debt.
Water
100%
90%
Debt pmt,
80%
1,465, 215
70%
60%
Depr,
1,160, 000
50%
40%
Capital,
30%
865,219
Wages,
20%
546,882
Transfer,
10% 70-000
Svc & Chgs,
500,950
0%
-
Supplies,
140,150
Misr.,
15,000
The Water Supervisor oversees and coordinates staff involved in day-to-day operations and
maintenance of the wells, water treatment plant, water storage and process infrastructure,
water meters, related process equipment and facilities The Water and Wastewater divisions
work together on a daily basis, assisting one another to ensure both plants are functioning
as designed.
124
Wastewater
Primary services
2021 Wastewater budgets
Under the leadership of the Wastewater
Supervisor, Wastewater provides operations Wastewater: $6,733,099
and maintenance services in the following CIP-Wastewater $ 235,000
areas: $ 6,968,099
• Wastewater treatment
• Treatment facility operations & maintenance
• Collection system maintenance
• Response to service interruptions
• Coordination with improvement projects
• Utility locates
• Facility maintenance
Workforce (7.35 FTE):
• Tim Gratke
Wastewater Supervisor
• Randy Czech
Sr Wastewater Operator
• Eric Moore
Sr WW Maint Operator
• Deb Paulson
Lab Tech/WW Operator
• John Kent
Wastewater Maint Operator
• Matt Keller
W/WW Technician
• Seasonal labor
0.50 FTE
Capital projects included significant improvements to
the treatment plant affecting treatment of wastewater
early in the process. These improvements will allow
wastewater operators to more effectively manage
pretreatment of wastewater as it enters the treatment
plant.
A half -cent sales tax generates
revenue of over $750,000 per year.
This revenue helps to pay outstanding
treatment plant debt.
Wastewater
100% —
90%
Capital,
80%
70%
60%
Debt pmt,
50% 1,389,965
40%
Depr,
1,125, 000
30%
Svc & Chgs,
20%
762,200
>klplplll5,
Transfer,
wages,
225,000
10% 80,000
752,715
_ Misc.,
0%
_
40,OW
The Wastewater Supervisor oversees and coordinates the staff involved in day-to-day
operations and maintenance of the wastewater treatment facility, lift stations, process
infrastructure, related process equipment and facilities The Water and Wastewater
divisions work together on a daily basis, assisting one another to ensure both plants are
functioning as designed.
125
2021 Significant Accomplishments
Maim Imorovements
Jefferson St NE (Washington -1st Ave NE)
• New construction
1st Ave NE (Main -Adams)
Clinton Ave SW (Harrington -Merrill)
Harrington & Merrill St SW (South Grade -
Linden)
• Partial reconstruction
Church St SW (South Grade -Linden)
Clinton Ave SW (Harrington -Lynn)
Lyndale Ave SW (Merrill -Lynn)
Reclaim project
Hwy 7 W/Montana St NW
• Ped crossing signal
Southfork storm water pond
Reconfigure river outlet
Utilities Projects
Water
• Well 7 increased specific capacity
• Adjusted post service flush valve
operation on reverse osmosis skids
Wastewater
• Grit removal, disposal — west ditch
• Replace HVAC RTU — Admin building
• Lift station fence, UV gate
replacement
• McDonalds Lift Station upgrade
• NPDES permit reissued
• Preliminary treatment improvement
Distribution/Collection & Storm Water
• Manhole lining — Shady Ridge
• Manhole grout — Pishney
• Assist w/ storm sewer at Creekside
• Clean out sand/gravel bar from
river
Infrastructure Maintenance
• ADA Transition Plan
• Street repairs, patching &
maintenance overlays
• Trail repairs
• Replay pavement preservation
• Alleys & Parking Lots
• Storm water pond, pipe repair
• Sanitary sewer repair
• Misc. distribution/collection
maintenance
Facility Projects
Airport —
Cemetery —
HATS Facility —
equip
Vehicles & Eauioment
LED conversions
Flagpoles, flags
Lube & tire
Plug-in hybrid SUV
Engineering
Used aerial bucket truck
Operations
Wheel loader
Operations
Trailer, forestry planting
Operations
Cemetery mower
Operations
Vacuum excavator
Operations
Hydraulic power unit
Wastewater
The biggest project in 2021 was the neighborhood east of the Recreation Center/Civic Arena. In
2020, utility work consisting primarily of installing SW Trunk Storm Sewer improvements was
completed. 2021 `s project consisted of reclaiming and partially reconstructing several streets,
following utility installation. This project started in April and was finished in September. Other
projects were done concurrently. Significant effort was put into improvements to the Wastewater
Treatment facilitys preliminary treatment facility, process equipment and the plants SCADA systems
Infrastructure maintenance consisted primarily of Replay sealant and maintenance overlays on
Arizona, Carolina, Harrington and Merrill. Public Works operators focused on localized street repairs
and were able to olace over 200 tons of bituminous material.
126
2022 Major Goals & Objectives
Maior Improvements
River & Lakes sediment (forebay, stream bank
restoration & shoreline restoration)
• State bonding
• Environmental Assessment
Worksheet
South Central Drainage improvements
• West side of Rec Center/Civic Arena
storm sewer & streets
Utilities Proiects
Water
• Concentrate recovery bench testing
& pilot study
• Replace concentrate piping
• SCADA upgrades
• Permeate pump VFD installation
• Biofilter air modifications
Wastewater
• Complete preliminary treatment/EQ
system upgrades
• Continue SCADA upgrades
• Lift station upgrade (Hwy 15)
• Aeration/mixing optimization (E
ditch)
• Advanced phosphorous removal trials
• Overhaul, upsize MBR scour air
blowers
Distribution/Collection
Storm sewer (Harmony Ln SW)
Infrastructure Maintenance
• Street repairs, patching &
maintenance overlays
• Trail repairs
• Replay pavement preservation
• Alleys & parking lots
• Storm water pond & pipe repair
• Streetlights -conversion to LED
Facility Proiects
Airport — LED runway lighting, taxi lane
reconstruction, drainage, MN CAP facility
Cemetery — Perimeter fencing
HATS Facility — Tempered storage
building, fuel site
Water — Security upgrades
Wastewater — Security upgrades
Vehicles & Eauioment
Snowplow truck
Streets
1-ton dump truck
Streets
1-ton dump truck
Streets
Misc. tools trailer comp.
Streets
Engineering admin vehicle
Engineering
Biosolids spreader
Wastewater
Work truck, service -crane
Wastewater
A $3.1 mi0ion project to improve Otter & Campbell lakes and the South Fork Crow River
received approval in the State Bonding bill. The project includes a forebay to trap upstream
sediments and stream bank & shoreline restoration.
Completion of the wastewater plant preliminary treatment project will end one of the largest
projects at the plant since 2007, when a portion of the plant was constructed. This project
will make improvements to the preliminary treatment system, with the goal of capturing
more solids earlier in the treatment process and adding greater operational control &
flexibility.
127
2022 Major Goals & Objectives
Funding, Studies, Planning & Initiatives
Street Corridor Project Initiatives
• Future intersection improvements studies
• Construction costs analysis
• Assessment policy review
HATS Facility
• State bonding request for addition of 18,000 SF vehicle & equipment storage, fueling
site construction and mechanics' shop improvements.
Airport
State bonding request for addition of Mn CAP training facility, site construction.
Lakes and River Basin Improvements
• Environmental Assessment Worksheet.
• Pursue additional funding sources.
• Coordinate proposed improvements with Mn Dept. of Natural Resources and Renville
& McLeod County Soil & Water Conservation Districts.
McLeod County Public Works
• Coordinate potential improvements with McLeod County
o Airport Rd / Jefferson Rd intersection
o North High Dr
o Northeast ring road
Water Distribution System
• Century water tower rehabilitation
• Water meter replacements
• Water valves in Clifton Heights Addition
• Cross-connection/backflow program
Water/Wastewater
• Community outreach, public education of water & wastewater rate structure (2023
implementation)
Stormwater Collection/Treatment Systems
• Storm water system resiliency hydrology & hydraulic modeling
On an ongoing basis, Public Works staff works closely with McLeod County Public Works,
MaDOT, MnDNR, MnPG4, MaDOH, and other government agencies to identify, develop
and/or coordinate improvements and initiatives
128
Community Survey
Periodically the City conducts the National Community Survey. In the last survey (2019),
citizens identified Safety and the Economy as their two most important issues. Several
categories in the survey relate to Public Works, including:
Categorx
Overall ease of travel
Paths & walking trails
Ease of walking
Travel by bicycle
Travel by public transportation
Travel by car
Public parking
Traffic flow
Street repair
Street cleaning
Street lighting
Snow removal
Sidewalk maintenance
Traffic signal timing
Drinking water
Sewer services
Storm drainage
Score Comparison to national benchmark
83%
84%
85%
75%
41%
78%
68%
52%
26%
58%
78%
76%
66%
57%
78%
89%
78%
Similar
Higher
Higher
Higher
Similar
Similar
Similar
Similar
Lower
Similar
Higher
Similar
Similar
Similar
Similar
Similar
Similar
increase from 2015
decrease from 2015
increase from 2015
increase from 2015
increase from 2015
increase from 2015
These surveys help to identify strengths and weaknesses in services provided by the
department. About 8 in 10 residents positively assessed the overall ease of travel in
Hutchinson. Several categories were rated higher than national benchmarks, including ease
of travel by bicycle and by walking, the availability of paths and walking trails and street
lighting. At least 3/4 of respondents gave those categories high ratings. In 2019, residents
gave higher ratings to public parking, street lighting, snow removal, sidewalk maintenance
and traffic signal timing when compared to 2015.
Street repair scored lower when compared to communities nationwide. Positive
assessments of street repair declined between 2015 and 2019. About 8 in 10 residents felt
it was essential or very important for the City to put additional funding toward street repair
and maintenance. About 75% of residents supported a $250,000 property tax increase
dedicated to fixing, repairing and upgrading city streets and related infrastructure. 60% of
respondents supported a $500,000 tax increase. In 2020, the City Council approved
additional funding of $25,000 for Infrastructure Maintenance, raising the annual amount to
$400,000. No additional funding was added in 2021.
Public Works staff believes the concerns respondents had regarding street repair were likely
influenced by the poor condition of a number of busy private roadways and parking lots,
coupled with an unusual amount of frost damage in 2019. The City does not maintain
private roadways and parking lots. Frost damage repairs were not completed until late in
2019. In 2020, several private roadways and parking lots were repaired. These repairs may
positively affect future survev ratings.
129
PCI by mileage (74.9 mi.)
35.0
'MY mi:
2021 est. network PCI = 75
40.9%
2020 network PCI = 76
30.0
Miles Category
25.0
20.6 mi. 74.9 — City rated
27.5 % 2.5 — City unrated
20.0
6.7 — M n DOT
6.1— McLeod Co.
12.6 mi.
15.0
16 8% 90.2 -Total miles
10.0
6.4 mi.
�
�
w 47mi.
10/.
5.0
W
�
Q Z 6.3%
p
❑ E
W
Q Q 2 M
86-100
71-85 51-70 36-50 0-35
Since 1996, the City has used a pavement management system to help manage its significant
investment in pavements, worth over $200 million in replacement cost (+/- $15,000 per capita).
Pavement condition index (PCI) is determined by periodically conducting physical surveys of each
pavement section, usually every three years (next survey 2023). Surveyors catalog pavement
distresses and assign deduction values. PCI is based on a 100-point scale (100 = no distress; 0 =
fully deteriorated street). Further categories are: Excellent, Good, Adequate, Marginal and Poor.
The City's goal is to maintain network PCI at 65-75. In 2021, estimated network PCI is 75. In
2020, the last physical survey, network PCI was 76, the same as it was in 2017. Between physical
surveys, pavement sections are assigned predetermined deterioration curves to calculate estimated
PCI.
Using average costs of various maintenance options, a budget is calculated. The budget considers
increasing PCI by 10%, decreasing PCI by 10% or keeping PCI scores the same. Projects identified
in all three scenarios represent a high value, so they typically end up in the Capital Improvement
Plan (CIP). Other considerations also affect project selection, such as traffic safety, condition of
related infrastructure, provision for pedestrian and bicycle facilities, etc.
The system continues to indicate a need for more overlay projects. This is likely because the City
did seal coating projects every other year for many years, so many remaining streets have PCPs that
are too low to perform successful seal coat projects. Several small maintenance overlay projects
have been done recently and larger overlay projects are included in the CIP.
130
Utility Rates
Data is from AE25Annual Utility Rate Surveys, conducted over the last 20 years These
surveys consist of a number of utilities located in the upper Midwest who voluntarily provide
information to AE2S.
Overall Utility Rate Comparison
160.00
140.00
120.00
. •
100.00
.. • • •
— — — — — — — — — — — —
— — Vie+•+
— — — — —
— — —
—
80.00
60.00
•••...•••
40.00
20.00
0.00
co:
c O -o ro m O E c
� O��
c
O
:- C� on o
3
;., c=
+� N
OL N O -O J Y X 5 �
� to
t-
LL O LL LL
C
C L Y N
M
L-
Y U y U f0
c M 3 Q
L
''' N
L
N- L J-E
°0 2
W �O
f0
N
U) v W� Z
O
°0 >
.O
LL C7
c0
U N L Q Q
J
=
ccp
L
LL
)
C7
O
L
Z
H
v�
W
Source: AE2S 2021 Annual Utility Rate Survey
Over the last ten years (2012-2021), average utility bills for outstate Minnesota cities included in the
surveys went from $61.56/mo. to $85.63/mo., a 39.1% increase. In that same period, Hutchinson
saw only a small increase from $82.28 to $84.34 per month (2.5%), attributable to storm water rates.
Hutchinson's utility rates are now slightly below average (-1.5%), when compared to other outstate
cities and are substantially lower (-30.5%) than average rates of the top five cities surveyed.
From 2008, when treatment plants were upgraded, to 2012, when the local option sales tax began,
Hutchinson's rates were among the highest in outstate Minnesota. Debt service for treatment plant
improvements, combined with lower revenues following the 2008 recession, resulted in high rates.
In 2012, voters approved a local option sales tax, which ends in 2026. In 2021, actual sales tax
receipts were nearly $1.7 million. This revenue helps to pay off debt. The sales tax, along with
stabilizing revenues over the years, has made it possible to keep rates the same since 2011.
Work on a rate study recently concluded. Changes to the rate structure are currently proposed to
begin in 2023. The rate study sought to create a fair rate system to distribute fixed costs, account for
future needs at the plants, recognize debt service needs and address regulatory issues.
131
Utility Rates
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
Water Rate Comparison
v° o°u v o 51 ° o v o_ ��-, •`° ,� afO, c v o m E M o M Y= ro c
�••� % -0 � f0 -0 Y f0 � J �••� � f0 -2 u � M L 00
U Y U Y 00 J LL E O LL LL LL E
p �e o v v Q ro Co t 3 o v `o -0 v .
u c —
0 0 w o? t o °° Ln m= Z C7 o c 2!
030 a,
z F
w
Source: AE2S 2021 Annual Utility Rate Survey
Hutchinson's water rates are slightly below average (-4.2%), when compared to other outstate
Minnesota cities included in the survey and are substantially lower (-41.3%) than average rates of the
top five cities surveyed.
The recently completed rate study includes proposed changes to the City's current water rate
structure. Changes are scheduled to begin in 2023. The proposed water rate structure includes a
conservation rate structure, required by the State. The new rate structure segregates base charges
for single-family residential (1.0 REU), multi -family residential (0.65 REU) and commercial/industrial
water use (based on meter size). Residential increasing block rates are based on 6,000
gallons/month. Commercial/industrial water rates are uniform. The new rate structure was designed
to more evenly distribute fixed costs of operating the water supply system.
A separate classification for irrigation water is included in the new water rate structure. Customers
will need to purchase irrigation deduct meters to avoid being charged for wastewater, be charged a
seasonal fee and pay the highest residential block rate for irrigation water.
132
Utility Rates
100.00
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
Wastewater Rate Comparison
— — —
— — — — —
— — —
*.r • *
` • * —
— — — — — — — —
—
c -o
ro p ro
D
O o
-LO c
c O
O
O
LL OJ2_
U
C O
L
E �
Y
Q=
XN
m
�=
L NU
c0
J—
a.+
O
OL
C
[O0
CN7V
U
nQQQ
22
QLL
K
.+
v
C
p
O
Z
w
Source: AE2S 2021 Annual Utility Rate Survey
Hutchinson's wastewater rates are slightly above average (+1.8%), when compared to other outstate
Minnesota cities included in the survey and are substantially lower (-25.2%) than average rates of the
top five cities surveyed.
The recently completed rate study includes proposed changes to the City's current wastewater rate
structure. Changes are scheduled to begin in 2023. The new rate structure segregates base charges
for single-family residential (1.0 REU), multi -family residential (0.65 REU) and commercial/industrial
wastewater (based on meter size). The new rate structure was designed to more evenly distribute
fixed costs of operating the wastewater treatment system. Use rates will be the same for all
customers. Proposed wastewater rates will no longer be calculated using the average of January and
February water use. Rates will instead be applied to actual water use throughout the year. No
wastewater rates will be applied to customers with irrigation deduct meters.
There are significant capital needs at the wastewater treatment facility. Much of the facility is over 30
years old. This aging infrastructure requires ongoing capital investments and upgrades to maintain
the capability for treating wastewater. Public Works staff also continues to work with consultants and
the MnPCA to consider how changes in permit requirements will affect future operating costs,
infrastructure costs and/or required plant improvements.
133
Utility Rates
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
Storm Water Rate Comparison
E c 0c•N Y
-o 'OO 2 Y+to 0O L 2 N c Ow ro Ua0+ CCted7 C J LU Q O
c O = X Ca N - - ] U O
O w N > to p O O
a= z
-O LL
O ON7
z
w
Source: AE2S 2021 Annual Utility Rate Study
Hutchinson's storm water rates are well below average (-11.9%), when compared to other
outstate Minnesota cities included in the survey and are substantially lower (-53.0%) than
average rates of the top five cities surveyed.
Over the last few years, the focus has been on the area around the Recreation Center/Civic
Arena. In this phased project, the pond at Linden Park was constructed, storm water
infrastructure was installed on the east side of the project area and streets were
reconstructed on the east side. A project in 2022 is proposed to complete the project area
west of the Recreation Center/Civic Arena.
There are significant capital needs for storm water management infrastructure. Much of the
work in forthcoming years will focus on understanding the dynamics of localized storm water
needs in specific neighborhood areas. Using information gathered, projects will be designed
to better manage storm water flows in these areas.
Public Works staff also continues to work with consultants and the MnPCA to consider how
changes to future permit requirements will affect future operating and infrastructure costs.
134
HUTCHINSON CITY COUNCIL c`=yaf
Request for Board Action 7AZ Owl-7
Agenda Item: Massage License - Samantha Hovda
Department: Administration
LICENSE SECTION
Meeting Date: 6/14/2022
Application Complete Yes
Contact: Matt Jaunich
Agenda Item Type:
Presenter: Matt Jaunich
Reviewed by Staff ❑✓
New Business
Time Requested (Minutes):
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
Samantha Hovda has submitted a massage license application into administration for review and processing. The
application is for Ms. Hovda to provide massage services at her business located at 21 Main Street North Suite 5. A
background check was completed of Ms. Hovda and the police department does not object to the issuing of the
license. The applicant has completed the appropriate application in full and all pertinent information has been
received.
BOARD ACTION REQUESTED:
Approve issuing massage license to Samantha Hovda to provide massage services at 21 Main Street North Suite 5
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)qw
111 Hassan Street Southeast
Hutchinson, MN 55350
(320) 587-5151 Fax: (320) 234-4240
City of Hutchinson
Application for Massage Service License
(Under Ordinance No. 119)
7-
Business Nanie
B iness Address
E—?>
Zoning District
*verify the proposed use is allowed in this zoning district
License Fee: $175
Operating Year:301
m rpk
f W-09
9g(10- Lroc0 5
Phone Number
c._ 5535y
City State Zip
Corporate Information if applicable)
Corporate Name Phone Number
Corporate Address City State Zip
Owner(s)/Corporate Officer(s) (list names and addresses of all persons have a beneficial interest in the
Name:
Address City State Zip
Name:
Lessee
Name:
Address
list additional owners
Address
all individuals involved in
City State Zip
on a separate sheet of paver
City State
Name: �sV��([� _
Address City State Zip
Name:
Address
*If necessary, list additional operators on a
City State Zip
sheet
City of Hutchinson
Application for Massage Service
Page 2 of 5
Describe Nature of Massage Business and Massa a Services Offered
UknOt Ooor a O ash
e
Insurance Coverage Information (attach public liability insurance policy or certificate of insurance as required in Section
119.07 o Hutchinson CiLy Code
F\V\T-f:\
Insurance Company Agent's Name
sky-e- ski lie. goo �va"5�6n 1 O t
Address City State Zip
$7-0�05-&-AoD - Voq- 6\00D
Phone Number Fax Number
Back&Eound Statement
Have you or any operators been convicted of any crime, misdemeanor, or violation of any municipal ordinance, other
than traffic violations?
❑ YES NO
If yes, state nature of offense and punishment or penalty therefore:
Manager Information (Section 119.06 of Hutchinson City Code requires that the manager of the establishment be "a natural
person who is a resident of the City". Please complete the following confirming compliance with this ordinance)
t? j 1^ Manager Name
1G
Manager Address
Checklist fall items must be checked "yes" in order for the application to be
(220) a0{o- L10 3
'Phone Number
City State Zip
The following items need to be completed and/or attached in order for the application to be processed:
Copy of insurance that meets or exceeds limits established in the ordinance: yes ❑ no
Application fee paid in full (check or money order): 16yes ❑ no
Application completed in full and signed: - Ayes ❑ no
City of Hutchinson
Application for Massage Service
Page 3 of S
I hereby certify that I have completely filled out the entire above application, together and that the application is true,
correct, and accurate.
I fully understand that any person who violates any provision of Chapter 119 of the Hutchinson City Code pertaining to
Massage Services is guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding
S 1000 0 or by imprisonment for a period not exceeding 90 days or both, plus, in either case, the costs of prosecution.
'511 1 P'a
,.. ' 1 Signaturrey�ofA licant. Date
l ' 1 ��L.r�— � " t
nwvyex-
Print Name Title
NOTE: No application will be forwarded to the City Council unless received one weekprior to the regular Council
meeting, filled out in completion, and fee payment is attached.
Internal Use Only
Zoning/ q �J �%_
Building:Xapproved ❑denied Notes: r 1 ✓��siJ'
Fire X approved ❑ denied Notes: AM
Police Eapproved ❑ denied Notes:
City Council ❑ approved ❑ denied Notes:
H: Licenses /Appli cations/Massage.doc
MEMORANDUM
POLICE / EMERGENCY MANAGEMENT SERVICES
TO: Stephanie Nelson
FROM: Chief Tom Gifferson
DATE: 05-19-2022
RE: Samantha Hovda / CMT
Please review the attached memorandum from Officer Fenrich. He has completed the
background investigation on Samantha Hovda. It is my recommendation to approve the
Massage Service License for Samanth Hovda, CMT. Please contact me if you have any
further questions.
Thank you.
HUTC INSO
A CITY ON PURPOSE.
c� HUTCHINSON CITY COUNCIL
KUTO "HINSOK Request for Board Action
A CITY ON PURPOSE.
Review and Approve Updated Employee Uniform & Clothing Policy
Agenda Item:
Department: Finance
LICENSE SECTION
Meeting Date: 6/14/2022
Application Complete N/A
Contact: Andy Reid
Agenda Item Type:
Presenter:
Reviewed by Staff ❑�
New Business
Time Requested (Minutes): 3
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
The current policy for Employee Uniform & Clothing was approved by the city council in April of
2019. The policy sets a clothing allowance for certain positions within the city, mainly those
working outdoors and indoor maintenance. With recent inflationary increases, city staff is
recommending a 20% increase to the existing allowance amounts, which are paid out 50% in
January and 50% in July.
Full -Time Part -Time Seasonal Current Policy
Category I: $300 $150 -0- $250 / $125 / -0-
Category 11: $180 $ 90 -0- $150 / $ 75 / -0-
Category 111: -0- -0- -0- -0- / -0- / -0-
The categories are defined within the policy and essentially entail a different level of physical
work to perform the job duties.
Prior to this policy, city departmental budgets reimbursed employees 100% for certain clothing
on an annual basis, with jeans/pants being the primary reimbursement. Our past practice was
not in line with IRS regulations on uniforms and taxable benefits, therefore we created the policy
with a taxable clothing allowance in order to comply with the IRS.
BOARD ACTION REQUESTED:
Approve policy changes as recommended by city staff and the safety committee
Fiscal Impact: $ 2,000.00 Funding Source: Departmental Operating Budgets (Estimate)
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
EMPLOYEE UNIFORM & CLOTHING POLICY
POLICY OVERVIEW
The City of Hutchinson recognizes the need to provide clothing and/or uniforms to some employees in
order to prevent damage to personal items as a result of the work required for certain jobs as well as to
help promote identification in the field.
The purpose of this policy is to identify which clothing items should be provided to employees and to
provide guidance for the appropriate acquisition of, or compensation for, such clothing.
Personal Protective Equipment (PPE) is not considered as a uniform or clothing, as defined in this
policy, and is separately addressed within city policy number 3.18. PPE will be provided by the City
and is not a taxable benefit to the employee.
INTERNAL REVENUE SERVICE (IRS)
When an employer provides uniforms/clothing or pays uniform/clothing allowances, Federal tax laws,
rulings and regulations stipulate that in order to be excludable from an employee's wages, the
uniforms/clothing must be required by the employer and cannot be adaptable for general use. If both
these conditions are not met, the value of the uniforms/clothing, or the amount of any allowance paid,
must be recognized as compensation to the employee and subject to federal and state taxes.
UNIFORMS
Uniforms are excluded from taxes if covered by an accountable plan, as defined by the IRS, and are
specifically required as a condition of employment. They cannot be worn or adaptable to general usage
as ordinary clothing. The value and upkeep of uniforms provided to law enforcement officers and
firefighters are not taxable to the employee. For the purpose of this policy, clothing with the official
Police or Fire badge shall be considered an excludable uniform if it is required to be worn for work duties
and is prohibited for wear outside of work. Those departments shall have separate policies addressing
the issuance and maintenance of its uniforms. Administrative employees, or any other employees within
the Police and Fire departments who are not required to wear an excludable uniform shall be subject to
the Clothing section of this policy.
CLOTHING
The IRS mandates that clothing which can be adaptable for general use as ordinary clothing must be
included as a taxable benefit to the employee. Simply having a City logo will not avoid the taxable
benefit. Clothing necessary for employees to perform their duties will be divided into two categories,
which are both taxable to the employee:
Clothing with City Logo
a. City departments will purchase the clothing and the employee will pay only the taxable
benefit based on the value of the clothing received.
b. Shall include the following logoed clothing:
i. Shirts, sweatshirts and jackets
ii. Hats or caps
c. Purchases must be made for exact quantities to be distributed to identified employees.
d. Each City department must coordinate clothing purchases with the Finance Department
so that employees receiving the clothing can be taxed appropriately.
e. Departments are not allowed to maintain an inventory of logoed clothing.
f. One shirt provided to an employee is considered by the IRS to be a de minimis benefit
and therefore exempt from taxes.
g. Safety wear items with the City logo and any clothing with the official Police or Fire logos
are excluded from this policy.
2. Clothing without City Logo
a. To be purchased by the employee using the employee's personal funds.
b. Shall include the following non-logoed clothing
i. Jeans and pants
ii. Shirts, sweatshirts, hats and caps
iii. Socks, belts and other miscellaneous personal items
iv. Footwear not identified as PPE
c. City purchasing powers shall not be used, including direct invoice, department
purchasing cards and house accounts at local retailers.
d. Employees will be reimbursed by a taxable clothing allowance as defined below.
EMPLOYEE CATEGORIES:
City employees will be classified in one of the following three categories when determining if a clothing
allowance is necessary. See Exhibit A for a listing of employee positions within each category.
1. Category I: Field Services — Physical Work
Includes positions that require the employee to spend most of his/her time in the field or in more
industrial -type settings, performing physical work. As a result, the wear and tear on clothing is
more significant than for other positions. There is also a need for recognition as a city employee
(with a city logo) when in public.
2. Category II: Field Services — Public Contact/Less Intensive Physical Work
Includes positions that require the employee to spend time in the field where public contact often
occurs and/or performing work where some wear and tear on clothing is expected, but where
the physicality of the role is not intense. For example, this may include engineers, laboratory
employees, and building inspectors/officials. There may be occasional needs for recognition as
a city employee (with a city logo) when in public.
3. Category III: Office/Administrative
Includes positions that require employees to spend the majority of their time in an office setting.
There may be occasional opportunities when recognition as a city employee (with a city logo) in
public is helpful.
CLOTHING ALLOWANCE
From an administrative perspective, the least complicated method for obtaining such clothing and
withholding applicable taxes is the payment of a clothing allowance to each eligible employee through
the payroll function. The annual allowance amounts for each employee category are as follows:
Full -Time
• Category I: $2-59 $300
• Category II: $4-59 $180
• Category III: None
Part -Time Temp/Seasonal
$tea $150 None
" $90 None
None None
The clothing allowance rates identified above, which may be amended from time to time, shall be the
maximum amount the City will provide to an employee in one calendar year for clothing. If employees
need to spend beyond the allowance amounts for additional items, then the purchases will need to be
made with personal funds or they can wait for the next allowance to be issued.
ALLOWANCE PAYMENT
Clothing allowance checks will be issued two times during the budget year, in the months of January
and July, with each check at 50% of the allowance total. The check in January is intended to reimburse
the cost of clothing purchases made between July 1 and December 31. The check issued in July is
intended to reimburse the cost of clothing purchases made between January 1 and June 30.
Allowances will be prorated for new employees with start dates that occur within the six-month
allowance period. The proration will be based on the number of days employed within the six-month
period.
An employee changing City positions that affects the clothing allowance category shall receive a
prorated allowance for the six-month period in which the transfer occurs. The proration will be based
on the total number of days employed in each position during the six-month period.
A clothing allowance shall be forfeited if an employee leaves employment with the City prior to the
designated dates of June 30 or December 31. There will be no prorated distribution of the allowance.
In the event of an employee retirement or death, a prorated allowance shall be paid. The proration will
be based on the number of days calculated to the last day worked during the six-month period.
EMPLOYEE RESPONSIBILITIES
• Employees must purchase their clothing on personal time outside of working hours.
• Employees shall be responsible for proper care, cleaning, alterations and repair of their clothing.
• Taxable clothing items are considered property of the employee and may be kept after
employment has ended.
• The City will not track items purchased with the clothing allowance. Rather, the City is
compensating the employee for assumed costs associated with his/her job, and the employee
is responsible for purchasing clothing necessary to perform City work duties.
• The employee may keep any unspent allowance as compensation.
• Employees shall abide by the City's Personnel Policy regarding appearance when purchasing
clothing.
Policy approved by City Council, April 23, 2019.
Exhibit A
Clothing Allowance Categories
Category I: Field Services — Physical Work
Arborist
Compost Coordinator
Compost Equipment Operator
Compost Laborer
Engineering Specialist
Equipment Mechanic
Facilities Manager
General Maintenance — Event Center
Lab Tech nician/Wastewater Operator
Maintenance Lead Operator
Parks Maintenance Equipment Operator
Parks Maintenance Specialist
Parks Supervisor
Plant Equipment Mechanic II
Public Works Maintenance Operator
Senior Engineering Specialist
Senior Public Works Maintenance Specialist
Senior Wastewater Operator
Senior Water Plant Operator
Wastewater Maintenance Operator
Water Plant Operator
Water/Wastewater Technician
Cateaory II: Field Services — Public Contact/Less Intensive Phvsical Work
Building Inspector PT Custodian — Event Center
Building Official PT Recreation Facility Maint Technician
Inspector Public Works Manager
PRCE Maintenance Technician Wastewater Supervisor
Project/Environmental/Regulatory Manager Water Supervisor
Category III: Office/Administrative
Administrative Secretary — Engineering
Administrative Secretary - Public Works
City Administrator
City Attorney
Compost Manager
Compost Operations Specialist
Economic Development Director
EDA Intern/Administrative Technician
Emergency Dispatcher - FT & PT
Event Center Coordinator
Executive Assistant/Paralegal
Finance Director
Human Resources Director
Information Technology Director
Information Technology Specialist
Licensing Clerk FT/PT
Liquor Sales Manager
Motor Vehicle Deputy Registrar
Parks/Recreation/Community Ed Director
Payroll/Benefits Specialist
Uniform Service
Fire Chief
Hospital Security Guard FT/PT
Police Officer FT/PT
Permit Technician
Planning Director
Police Administrative Specialist
Police Investigative Specialist
Police Supplemental Services Specialist
PT Compost Scale Operator
PT Human Resources/Admin Technician
PT Liquor Sales Clerk
PT Office Specialist - Event Center
PT PRCE Receptionist
PT Recreation Special ist/Concessions Coord.
Public Works Director/City Engineer
Recreation Facilities Operations Manager
Recreation Services Coordinator
Sales & Marketing Specialist
Senior Accountant
Senior Accounting Specialist
Senior Liquor Sales Clerk
Server/Network Technician
Utility Billing Specialist
Police Sergeant
Police Lieutenant
Police Chief/Emergency Management Director
HUTCHINSON CITY COUNCIL c`=yaf
Request for Board Action 7AL Owl-7
Agenda Item: Ordinance No. 22-829 - Amending Chapter 112 - Liquor Regulations
Department: Administration/Legal
LICENSE SECTION
Meeting Date: 6/14/2022
Application Complete N/A
Contact: Marc A. Sebora
Agenda Item Type:
Presenter: Marc A. Sebora
Reviewed by Staff ❑
New Business
Time Requested (Minutes): 10
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
Last month, Gov. Walz signed the omnibus liquor bill into law as Chapter 86 of the 2022 regular session. The
legislation, championed by Sen. Gary Dahms (R-Redwood Falls) and Rep. Zack Stephenson (DFL-Coon Rapids),
creates several new licenses that cities could adopt into their ordinances. Among other things, there are several
provisions in the bill that allows cities to amend their ordinances for the new liquor licenses, including:
Allowing a brewer licensed under Minnesota Statutes, section 340A.301 that produces 7,500 barrels or less of malt
liquor annually to be issued a license by a municipality for off -sale of up to 128 ounces per customer per day;
Allowing growler sales by breweries that produce as many as 150,000 barrels annually, up from the previous limit of
20,000 barrels;
Allowing a municipality to issue an on -sale wine and an on -sale malt liquor license to a baseball team competing in a
league established by the Minnesota Baseball Association, or to a person holding a concessions or management
contract for beverage sales at a ballpark for the purposes of summer town ball games.
Due to these legislative changes, staff is suggesting to amend the City's liquor ordinance. First, to allow brewers to
sell at off -sale up to 128 ounces per customer per day in packaging that complies with Minnesota Rules. Second, to
allow issuance of a wine license and/or malt liquor license to the owner of a baseball team established by the
Minnesota Baseball Association.
The proposed ordinance also includes a few changes in the definitions section to align with the definitions in
Minnesota statute.
I will be happy to address any questions related to these revisions at the Council meeting.
BOARD ACTION REQUESTED:
Approve first reading of Ordinance No. 22-829 - Amending Chapter 112 - Liquor Regulations
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. 22-829
An Ordinance Amending Sections of Chapter 112 — Liquor Regulations
The City Council hereby ordains:
CHAPTER 112: LIQUOR REGULATIONS
§ 112.001 DEFINITIONS.
For the purpose of this chapter, the following definitions shall apply unless the context
clearly indicates or requires a different meaning.
3.2% MALT LIQUOR. Malt liquor containing not less than 0.5% alcohol by volume, nor
more than 3.2% alcohol by weight. 44tis definit4en ineludes so ealled malt eeelers" within the
ALCOHOLIC BEVERAGE. Any beverage containing more than 0.5% alcohol by
volume, including, but not limited to, 3.2% malt liquor, wine and liquor as defined in this
section.
AFFILIATE or SUBSIDIARY COMPANY. A company in which a manufacturer or its
stockholders own a majority of the stock.
APPLICANT. Any person making an application for a license under this chapter.
APPLICATION. A form with blanks or spaces thereon, to be filled in and completed by
the applicant as a request for a license, furnished by the city and uniformly required as a
prerequisite to the consideration of the issuance of a license for a business.
BREWER. A person who manufactures 3.2% malt liquor for sale.
BUSINESS RECORDS. Include, but are not limited to, articles of incorporation, bylaws,
corporate minutes, records of sale and shipping documents, as well as lists of complaints whether
or not those complaints have resulted in a filing with an appropriate government agency, and also
include records relating to any litigation threatened or commenced against a license holder
arising out of the operation of licensed premises pursuant to the license granted herein.
CLUB.
(1) An incorporated organization organized under the laws of the state for
civic, fraternal, social or business purposes, for intellectual improvement or for the promotion of
sports, or a congressionally chartered veterans' organization, which:
(a) Has more than 50 members;
(b) Has owned or rented a building or space in a building for more
than one year that is suitable and adequate for the accommodation of its members; and
(c) Is directed by a board of directors, executive committee or other
similar body chosen by the members at a meeting held for that purpose.
(2) No member, officer, agent or employee shall receive any profit from the
distribution or sale of beverages to the members of the CLUB, or their guests, beyond a
reasonable salary or wages fixed and voted each year by the governing body. The CLUB or
congressionally chartered veterans' organization must have been in existence for at least three
years.
COMMISSIONER. The State Commissioner of Public Safety.
HOTEL.
(1) An establishment where food and lodging are regularly furnished to
transients and which has:
(a) A resident proprietor or manager;
(b) A dining room serving the general public at tables and having
facilities for seating at least 30 guests at one time; and
(c) At least ten guest rooms.
(2) A HOTEL qualifying under this chapter shall submit proof to the City
Council that not less than 20% of the combined gross sales of alcohol and food sales of the
establishment for which the on -sale license is to be used are from the serving of food. Upon the
request of the City Administrator, the applicant shall submit a financial statement signed by an
independent accountant that indicates the total gross alcohol and total gross food sales of the
HOTEL for the calendar year or fiscal year preceding the date of the renewal application.
Complimentary food and beverages are not included in the gross sales calculation, but their fair
market value shall be included in reports and financial statements provided to the city as required
above.
INDEPENDENT ACCOUNTANT. An accountant engaged in the practice of public
accountancy who is not an employee of, on the staff of or otherwise affiliated with the licensed
premises or the party holding the license at issue. An accountant who derives more than one-
third of his or her gross income from services performed for the license holder is not
INDEPENDENT, as defined herein. The term INDEPENDENT ACCOUNTANT includes, but
is not limited to, certified public accountants and licensed public accountants.
INTOXICATING LIQUOR or LIQUOR. Ethyl alcohol and distilled, fermented,
spirituous, vinous and malt beverages containing in excess of 3.2% of alcohol by weight. This
definition includes so-called "wine coolers" and "malt coolers" within the alcoholic content
limits stated herein.
LICENSE. A document, issued by the city to an applicant, permitting him or her to carry
on and transact the business stated therein.
LICENSE FEE. The money paid to the city pursuant to an application and prior to
issuance of a license to transact and carry on the business stated therein.
LICENSEE. An applicant who, pursuant to his or her approved application, holds a valid,
current, unexpired license, which has neither been revoked nor is then under suspension, from
the city for carrying on the business stated therein.
LICENSED PREMISES. The premises described in the issued license.
MALT LIQUOR. Any 3.2% Mal ale OF ether beverage made from malt by
fermentation, or by the fermentation of malt substitutes, including rice, grain of any kind,
glucose, sugar, molasses, or other malt substitute that has not undergone distillation, and
that contains not less than 0.59; one-half of one percent alcohol by volume. "Beer"
means any beverage meeting the definition of malt liquor under this section.
MANUFACTURER. Every person who, by any process of manufacture, fermenting,
brewing, distilling, refining, rectifying, blending or by the combination of different materials,
prepares or produces alcoholic beverages for sale.
MEAL. Entrees and sandwiches offered on a restaurant menu. The term does not include
appetizers, snacks and non -meal -related food.
MINOR. Any natural person who has not attained the age of 21 years.
OFF -SALE. The sale of alcoholic beverages in original packages for consumption off the
licensed premises only.
ON -SALE. The sale of alcoholic beverages for consumption on the licensed premises
only.
PACKAGE and ORIGINAL PACKAGE. Any container or receptacle holding alcoholic
beverages, which container or receptacle is corked, capped or sealed by a manufacturer or
wholesaler.
RESTAURANT. An establishment, other than a hotel, under the control of a single
proprietor or manager, where meals are regularly served at tables to the general public, and
having seating capacity for at least 30 guests. A RESTAURANT qualifying under this chapter
shall submit proof to the City Council that not less than 40% of the gross sales of the
establishment for which the on -sale license is to be used are from the serving of food. Upon the
request of the City Administrator, the applicant shall submit a financial statement signed by an
independent accountant that indicates the total gross sales of the establishment and the total food
sales of the RESTAURANT for the calendar year or fiscal year preceding the date of the renewal
application.
SALE, SELL and SOLD. All barters and all manners or means of furnishing alcoholic
beverages to persons, including the furnishing in violation or evasion of law.
WHOLESALER. Any person engaged in the business of selling alcoholic beverages to a
licensee from a stock maintained in a warehouse.
WINE. A beverage made without rectification or fortification by the fermentation of
sound ripe grapes, grape juice, other fruits or honey, and also carbonated wine, wine made from
condensed grape must, wine made from other agricultural products, imitation wine, compounds
sold as WINE, vermouth, cider, sherry and sake, containing not less than 0.5%, nor more than
14%, alcohol by volume. This defini i-en ifieltidero-e-ffil�'e�e-ceelers" Withiff the ftleehelis
(2004 Code, § 112.001) (Ord. 93-76, passed 3-23-1993; Ord. 98-217, passed 2-10-1998; Ord.
15-0744, passed 9-8-2015; Ord. 18-789, passed 9-11-2018; Ord. 20-814, passed 6-9-2020)
§ 112.091 040XIG n TPn MALT LIQUORS.
(A) It is unlawful for any person, directly or indirectly, on any pretense or by any
device, to sell, barter, keep for sale or otherwise dispose of malt liquors, as part of a
commercial transaction, without a liquor license pursuant to either § 12.085 of this chapter or
this section. A holder of an on -sale wine license who is also licensed to sell 3.2% malt liquors at
on -sale and whose gross receipts are at least 60% attributable to the sale of food, may sell
intexiea-ting malt liquors at on -sale without any additional license from the city.
(B) Except for the owner of a baseball team competing in a league established by the
Minnesota Baseball Association, the seller qualifying under this section shall submit proof to the
City Council that not less than 60% of the gross sales of the establishment are from the serving
of food. Upon request of the City Administrator, the seller shall submit a financial statement
signed by an independent accountant that indicates the total gross sales of the establishment and
the total food sales of the seller for the calendar year or fiscal year preceding the date of the
seller's license renewal application.
(2004 Code, § 112.091) (Ord. 95-140, passed 3-28-1995; Ord. 20-814, passed 6-9-2020)
Penalty, see § 10.99
§ 112.092 INTOXICATING LIQUOR, MALT LIQUOR OR ON -SALE WINE LICENSE;
REGULATIONS AND RESTRICTIONS.
(A) Licenses in connection with premises of another. A license may not be issued to a
person in connection with the premises of another to whom a license could not be issued under
the provisions of this chapter. This division (A) does not prevent the granting of a license to a
proper lessee because the person has leased the premises of a minor, a non -citizen who is not a
resident alien, or a person who has been convicted of a crime other than a violation of this
chapter.
(B) Employment of minors. No person under 18 years of age may sell or serve
intoxicating liquor or wine on licensed premises.
(C) Premises eligible for on -sale wine licenses. On -sale wine licenses shall be
granted only to:
1.) Restaurants, as defined in this chapter; provided, however, for purposes of this
section, the restaurant shall have appropriate facilities for seating not less than 25
guests at one time.
2.) The owner of a baseball team competing in a league established by the
Minnesota Baseball Association.
Premises eligible for on -sale malt liquor license. On -sale malt liquor licenses
shall be granted only
1.) The owner of a baseball team competing in a league established by the
Minnesota Baseball Association.
§ 112.137 SMALL BREWER OFF -SALE LICENSE.
A brewer licensed under M.S. § 340A.301, Subdivision 6(d), (i), or 0), as it may be
amended from time to time, may be licensed for the "off -sale" of malt liquor produced and
packaged on the licensed premises, subject to the following conditions:
(A) Off -sale of malt liquor may only be made during the hours that "off -sale" of
liquor may be made;
(B) The malt liquor shall be packaged in sixty -four -ounce containers commonly
known as "growlers" or in 750 milliliter bottles; Other packaging of malt liquor for off -sale
under this license must comply with the provisions of Minnesota Rules, parts 7515.1080 to
7515.1120.
The amount of malt liauor sold at off -sale under this license may not exceed 128
ounces per customer per da.
(D) The malt liquor sold at "off -sale" must be removed from the licensed premise
before the applicable closing time at exclusive liquor stores;
(E) The "growler" must be sealed in such a manner that the seal must be broken in
order to open the container and the seal must bear the name and address of the brewer. The
containers or bottles shall be identified as malt liquor, contain the name of the malt liquor and
bear the name and address of the brewer selling the malt liquor.
(F) The annual license fee shall be set in accordance with M.S. § 340A.408, as it may
be amended from time to time.
(G) Liquor liability insurance is in effect in the coverage amounts indicated in §
112.026 of this chapter.
(H) The establishment must pass inspection by the Minnesota Alcohol and Gambling
Division.
( (Ord. 14-0873), passed 8-12-2014; Ord. 20-814, passed 6-9-2020) Penalty, see § 10.99
Adopted by the Hutchinson City Council this
ATTEST:
day of
Matthew Jaunich, City Administrator Gary T. Forcier, Mayor
2022.
h 7tD[.'ElOTA'L1lFARYRI[.'17 OF PGBiK 6u eri
Minnesota Department of Public Safety
Alcohol and Gambling Enforcement Division ,
445 Minnesota Street, Suite 222, St. Paul, MN 55101
651-201-7500 Fax 651-297-5259 TTY 651-282-6555
APPLICATION AND PERMIT FOR A i DAY i
TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE
Name of organization
Glencoe Fire Department Relief Association
Date.organized Tax exempt number
January 1965 41-1300-550
Address
City State
JMinnesota
Zip Code
55336
50910th Street East
Glencoe
Name of person making application
Business phone
320-510-0252
Home phone
Tam Brinkmann
Date(s) of event
Type of organization
June 17th and'lune 18th
[]Club [:]Charitable ❑ Religious
Mother non-profit
Organization officer's name
City State
Minnesota
Zip Code
55336
Kelly Mahon
Glencoe
Organiza_ tion officer's name
City State
IMInnesota
Zip Code
55336
Dan Pagel
Glencoe
Organization officer's name
Gty State
IMinnesota
Zip Code
155336
!on Dahlke
Glencoe
Organization officer's name
City State.
Minnesota
Zip Code
55336
Ryan Dording
Glencoe
Location where permit will be used.
The location of the event is the Grand
if an outdoor area, describe.
Stand at the McLeod County Fair Grounds. The event will be outside,
but the entry way of the
Grand Stand will act as the entry and exit of the event. The Intent is to utilize the entry point as a place to ID
attendees and place wrist
bands on those that are over 21.
if the applicant will contract for intoxicating liquor service give the name and address of the liquor license providing
the service.
If the applicant will carry liquor liability insurance please provide the carrier's name and amount of coverage.
19 So i l o a , U-D
APPROVAL
APPLICATION MUST BE APPROVED BY CriY OR COUNTY BEFORE SUBMrMNG TO ALCOHOL AND GAMBLING ENFORCEMENT
`- City or County approving t e icense
Fee Amount
a -
Date Fee Pai
1�l` -
Date Approve
1 I LA',J 1'1 * k S:4.
Permit Date
C(�S�G-f1Lt l o"a C, Wr .n -
City or ounty E-mail Address
L4--
City or County Phone Number
Signature City Clerk or County Official Approved Director Alcohol and Gambling Enforcement
CLERKS NOTICE: Submit this form to Alcohol and Gambling Enforcement Division 30 days prior to event.
ONE SUBMISSION PER EMAIL, APPLICATION ONLY.
PLEASE PROVIDE A VALID E-MAIL ADDRESS FOR THE CITYICOUNTY AS ALL TEMPORARY PERMIT APPROVALS WILL BE SENT
BACK VIA EMAIL. E-MAIL THE APPLICATION SIGNED BY CITYICOUNTY TO AGE .T>kMPOR F YAPPLICATION@STATE.MN.US
MINUTES
Regular Meeting — Hutchinson Utilities Commission
Wednesday, April 27, 2022
Call to order — 3:00 p.m.
President Matt Cheney called the meeting to order. Members present: President Matt
Cheney; Vice President Anthony Hanson; Secretary Don Martinez; Commissioner Robert
Wendorff; GM Jeremy Carter; Attorney Marc Sebora
Absent: Commissioner Kathy Silvernale
1. Conflict of Interest
2. Approve Consent Agenda
a. Approve Minutes
b. Ratify Payment of Bills
Motion by Commissioner Martinez, second by Commissioner Wendorff to approve
the Consent Agenda. Motion carried unanimously.
3. Approve Financial Statements
Mr. Martig presented the Financial Statements. Electric Division Net Loss increased
by $70,732 over March 2021. Increased operating expenses were due to nozzle
cleaning, testing and repairs along with down payment on elevator repairs that were
approved at last month's meeting. Natural Gas Division heating degree days were
1,021 compared to 751 a year ago, which led to an increase in usage and revenue
as well as purchased gas.
GM Carter noted Electric Division Generator Fuel is up year to date by 125% due to
contracts and running in January and February to hedge against any spikes and
volatility in the market. GM Carter reviewed the Cash Designation Report. Ratios
and Benchmarks will be discussed at the Cost of Service Workshop that is being
planned for May/June.
Discussion was held on the impacts of hedging.
Motion by Commissioner Hanson, second by Commissioner Martinez to approve the
financial statements. Motion carried unanimously.
4. Open Forum
5. Communication
a. City Administrator — Matthew Jaunich —
i. Construction Season - Rec Center, PD and Ice Arena
b. Divisions
i. Dan Lang, Engineering Services Manager — Nothing to report
ii. Dave Hunstad, Electric Transmission/Distribution Manager —
1. Construction Season
iii. Mike Gabrielson, Production Manager — Nothing to report
iv. John Webster, Natural Gas Division Director —
1. Working on pigging project with TD Williamson
2. Setting up pricing for Hutchinson transport customer
v. Jared Martig, Financial Manager-
1. Nothing to Report
c. Human Resources — Brenda Ewing- Nothing to Report
— Angie Radke
i. Currently have a position for a Welder/Service Person in the Natural Gas
Dept open, someone left the company.
ii. Will be sending out and email to the Commissioners on availability for May
and the first 2 weeks in June to have a Cost of Service Workshop.
d. Legal — Marc Sebora —
i. Nothing to Report
e. General Manager — Jeremy Carter
i. Legislative Update — most energy topics will be rolled into Energy & Tax
omnibus bills.
ii. EV Infrastructure Build -Out Bill — Dept of Energy, Transportation and EPA
will begin rolling out federal money anticipated to start in Q4 of this year.
iii. Climate Action Plan - Commissioners please provide feedback, thoughts
and questions.
6. Policies
a. Review Policies
i. Section 4 of Exempt Handbook
ii. Section 4 of Non -Exempt Handbook
No changes recommended at this time.
b. Approve Changes
i. Travel Expenses Exempt & Non -Exempt
1. Meal Reimbursement maximum to follow United States General
Services Administration Per Diam Rates by location.
Motion by Commissioner Hanson, second by Commissioner Wendorff to approve
the Travel Expenses Policy for both Exempt and Non -Exempt. Motion carried
unanimously.
7. Unfinished Business
8. New Business
a. Approval of HTI/TDK Natural Gas Transportation and Commodity Purchase
Agreement
Mr. Webster provided the annual agreement with HTI/TDK Natural Gas
Transportation. This agreement provides transportation and commodity
purchasing rights to HTI/TDK on Hutchinson Utilities' facilities for a one-year term.
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There are no changes to the agreement from last year.
A motion by Commissioner Wendorff, second by Commissioner Hanson to
Approve HTI/TDK Natural Gas Transportation and Commodity Purchase
Agreement. Motion carried unanimously
b. Approve Req #009124 - 3M Substation Relay and RTU Upgrades
Mr. Lang presented approval of Req #009124 - 3M Substation Relay and RTU
Upgrades. The existing electro-mechanical relaying equipment is to be replaced
at the 3M Substation in 2022. An engineering firm will be used to design the
protection system scheme for the substation and feeders, specify materials,
develop relay settings and commission the relays, along with designing and
specifying the material to replace the obsolete Ilex RTU and integrate with the
new relaying equipment.
Motion by Commissioner Martinez, second by Commissioner Hanson to Approve
Req #009124 - 3M Substation Relay and RTU Upgrades. Motion carried
unanimously.
c. Review 2021 Annual Benchmarking Report
Mr. Hunstad presented the 2021 Annual Benchmarking Report. The report
focuses on distribution system reliability across the country and is customized to
each utility that participates in the APPA eReliability Tracker service. Mr. Hunstad
reviewed where HUC ranks to others in the region.
Great job from Commissions.
d. Approve Cost of Service & Rate Design Study with UFS
GM Carter presented approval of the Cost of Service & Rate Design Study with
UFS. Looking to have the Commission approve the process to get HUC on the
schedule with UFS. This is a budgeted item. Inquired with other agencies as
well, however there was not room on the schedules to fit HUC in. It is also
anticipated other agencies would be significantly higher; UFS was the lowest cost
5 years ago and has only raised the fees $2K since that time. The other
advantage to HUC, is UFS has done the Cost of Service & Rate Design Study in
the past; no learning curve and will be a smoother process. Since the last study,
there are more items for the Commission to consider; one main focus would be
the different types of rate schedules that include: Time of Use (TOU) rates,
Standby rates, Interruptible rates and RNG rates. Discussions will need to be held
K
at the Cost of Service workshop on the different types of Rate schedules
available, what Staff is seeing and hearing from the customers and how to phase
in the different types of rates that are available. Having a workshop will help
provide information to UFS on what direction HUC is headed towards in the
future.
Discussions were held on the different types of Rate schedules that are available.
A motion by Commissioner Hanson, second by Commissioner Wendorff to
Approve the Cost of Service & Rate Design Study with UFS. Motion carried
unanimously.
e. Approve Disposal of Surplus Assets at Plant #1 — Units 3, 4 and 8 along with
Diesel Fuel and Tank
Mr. Gabrielson presented the approval of Disposal of Surplus Assets at Plant #1-
Units 3, 4 and 8 along with Diesel Fuel and Tank. Engines 3, 4 and 8 have all
been decommissioned. Diesel Fuel was only used in engines 3 and 4, since
those are decommissioned there is no use for the diesel fuel and tank. Did
inquire on what the costs could be for the demolition of the units and pricing came
back around $625K-$700K. GM Carter noted that Board approval to sell these
items is needed but timing for these will happen at different times. Staff would
also try to sell parts off the units to other Utilities before scrapping. Major removal
of the units will be part of the COS study along with discussing new opportunities
that may be available and factoring all information into the 5-year CIP. The first
step is to have Commission approval to dispose of the assets which will then be
followed up with a better time line of when or how the items will be disposed/sold.
A motion by Commissioner Wendorff, second by Commissioner Hanson to
Approve Disposal of Surplus Assets at Plant #1 — Units 3, 4 and 8 along with
Diesel Fuel and Tank. Motion carried unanimously.
f. Approve Req #009144- Purchase of Replacement for Truck 130
Mr. Webster presented the approval of Req #009144- Purchase of Replacement
for Truck 130. In compliance with the 2020 Fleet Management Program the
Natural Gas Division is to replace vehicle #130 which is a 2011 Chevrolet
Silverado 2500 HD 4x4 cab and chassis with a utility body. The replacement cab
and chassis that is being recommend by Staff is a 2022/23 GMC Sierra 3500,
SRW, 4x4, Crew Cab, Cab and Chassis. Right now, buying a vehicle has been
hard. GM is taking orders on a limited quantity of vehicles in production.
Therefore, HUC felt it was prudent to enter into a contract with GMC for
production. The price for the vehicle is subject to change once the prices are
4
announced for the 2023 vehicles, which should be in late May. The price listed is
based on 2022 pricing.
A motion by Commissioner Martinez, second by Commissioner Hanson to
Approve Req #009144- Purchase of Replacement for Truck 130. Motion carried
unanimously.
g. Approve Req #009145 — Purchase Replacement for Truck 948
Mr. Webster presented the approval of Req #009145- Purchase of Replacement
for Truck 948. In compliance with the 2020 Fleet Management Program the
Natural Gas Division is to replace vehicle #948 which is a 2010 Chevrolet
Silverado 2500 HD 4x4 cab and chassis with a utility body. The replacement cab
and chassis that is being recommend by Staff is a 2022/23 GMC Sierra 3500,
SRW, 4x4, Crew Cab, Cab and Chassis. Right now, buying a vehicle has been
hard. GM is taking orders on a limited quantity of vehicles in production.
Therefore, HUC felt it was prudent to enter into a contract with GMC for
production. The price for the vehicle is subject to change once the prices are
announced for the 2023 vehicles, which should be in late May.
A motion by Commissioner Martinez, second by Commissioner Wendorff to
Approve Req# 009145 — Purchase Replacement for Truck 948. Motion carried
unanimously.
9. Adjourn
There being no further business, a motion by Commissioner Hanson, second by
Commissioner Wendorff to adjourn the meeting at 3:42p.m. Motion carried
unanimously.
Don Martinez, Secretary
ATTEST: P"
Matt Cheney, President
5