No preview available
cp12-12-23HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, DECEMBER 12, 2023 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: City policy and practices, 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 — Oak Heights Covenant Church (The invocation is a voluntary expression of theprivate 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 previous y reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY PUBLIC COMMENTS (T is is an opportunity or members o the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the ayor ifhe will be acceptingpublic comments during the agenda item if not a public hearing. Ifyou have a question, concern or comment, please ask to be recognized by the mayor —state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of November 28, 2023 (b) Workshop Meeting of November 28, 2023 (c) Truth in Taxation Hearing of December 5, 2023 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 I (a) Consideration for Approval of Resolution No. 15664 — Resolution Designating Annual Polling Places (b) Consideration for Approval of Resolution No. 15665 — Resolution Adopting City's Snow Removal and Ice Control Policy (c) Consideration for Approval of Resolution No. 15667 — Resolution Authorizing an Interfund Loan for Advance of Certain Costs in Connection With Tax Increment Financing District No. 4-23 (d) Consideration for Approval of Resolution No. 15668 — Resolution in Support of Greater Minnesota Transportation Alternatives Grant CITY COUNCIL AGENDA —December 12, 2023 (e) Consideration for Approval of Financial Management Plan Modifications (f) Consideration for Approval of Authorizing the City Application for the MPCA FY24 Stormwater, Wastewater, and Community (SWC) Resiliency Grant (g) Claims, Appropriations and Contract Payments — Register A 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B PUBLIC HEARINGS — 6:00 P.M. - NONE purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) 9. REVIEW OF TRUTH IN TAXATION HEARING UNFINISHED BUSINESS 10. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 23-845 -AN ORDINANCE TO REZONE PROPERTY AT BLOCK 1, LOTS 1 THROUGH 3, BAR PROPERTIES PLAT AS REQUESTED BY BAR PROPERTIES, LLC NEW BUSINESS 11. APPROVE/DENY RESOLUTION NO. 15666 — RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS ON A NEW GRANDSTAND AND OTHER IMPROVEMENTS AT VMF BASEBALL FIELD 12. APPROVE/DENY RE -SETTING DECEMBER 26, 2023, CITY COUNCIL MEETING TO DECEMBER 19, 2023 13. APPROVE/DENY SETTING DATE FOR CITY ADMINISTRATOR'S ANNUAL PERFORMANCE REVIEW GOVERNANCE (The purpose o t tis 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) 14. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Sustainability Advisory Board Minutes from October 16, 2023 2 CITY COUNCIL A GENDA — December 12, 2023 MISCELLANEOUS 15. STAFF UPDATES 16. COUNCIL/MAYOR UPDATE 17. CLOSED SESSION PURSUANT TO MINNESOTA STATUTE § 13D.05, Subd. 3(c) TO DETERMINE ASKING PRICE OF REAL PROPERTY LOCATED AT 44 WASHINGTON AVENUE WEST, 10 FRANKLIN STREET SW, AND 28 FRANKLIN STREET SW ADJOURNMENT 3 HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, NOVEMBER 28, 2023 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: City policy and practices, 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 May, second by Burley, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION (The invocation is a voluntary expression of theprivate citizen, to and for the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religiouslspiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) A moment of silence was held in lieu of an invocation. 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY PUBLIC COMMENTS (T is is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be acceptingpublic comments during the agenda item if not a public hearing. Ifyou have a question, concern or comment, please ask to e recognized by the mayor —state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of November 14, 2023 Motion by Czmowski, second by Sebesta, to approve the minutes as presented. Motion carried unanimously. 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 Enterprise Center Lease Agreement with GVL Medical, LLC (b) Consideration for Approval of Presentation of Names and Positions for Lay -Offs (Police Hospital Security Officer) CITY COUNCIL MINUTES — November 28, 2023 (c) Consideration for Approval of Issuing Temporary Liquor License to Hutchinson Jaycees on January 27, 2024, at Art's Place (d) Consideration for Approval of Resolution No. 15654 — Resolution to Sell At Auction Unclaimed Property and Bicycles (e) Consideration for Approval of Resolution No. 15661 — Resolution Adopting Findings of Fact and Reasons for Approval of a Preliminary and Final Plat for Hutchinson Downtown Redevelopment Plat No. 4 (f) Consideration for Approval of Resolution No. 15663 — Local Road Improvement Plan — Approve Submittal of Grant Application (g) Claims, Appropriations and Contract Payments Motion by May, second by Burley, to approve the consent agenda. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. - NONE 8. APPROVE/DENY ISSUING 3.2% MALT LIQUOR LICENSE AND TOBACCO LICENSE TO HOLIDAY STATIONSTORES, INC. LOCATED AT 1016 HWY 15 SOUTH Matt Jaunich, City Administrator, noted that there has been an ownership change for the Holiday store located at 1016 Hwy 15 South. City code requires a public hearing when a new liquor license is issued. The applicant has also applied for a tobacco license as well. Motion by Czmowski, second by May, to close public hearing. Motion carried unanimously. Motion by Czmowski , second by May, to approve issuing 3.2% malt liquor license and tobacco license to Holiday Stationstores, LLC. Motion carried unanimously. 9. 2024 STREET IMPROVEMENTS PROJECTS (LETTING NO. 1, PROJECT NO. 23-06, 24-01, 24- 02, 24-03, 24-04, 24-05, 24-06 AND 24-07) (a) Approve/Deny Resolution No. 15659 - Resolution Ordering Improvement and Preparation of Plans and Specifications (b) Approve/Deny Resolution No. 15660 - Resolution Approving Plans and Specifications and Ordering Advertisement for Bids Mike Stifter, Public Works Director, presented before the Council. Mr. Stifter explained that this project includes the following: 23-06 - Uptown Grand Sewer Realignment; 24-01 - Franklin Street (51h Avenue to Washington Avenue); 24-02 Oakland Avenue SE/Main Street; 24-04 - Uptown Grand SW Pond and Bank Stabilization; 24-05 - Michael Court NW; 24-06 — Washington Avenue West (Lynn Road SW to Franklin Street SW); 24-07 — Fire Department Parking Lot. Project 24-03 (Washington Avenue West (Franklin Street to Main Street) and Franklin Street NW (Washington Avenue to 1st Avenue NW) has been removed from the project list. Total project cost is estimated at $3.6 million and will be funded by a combination of City utility funds, funds from issuing an improvement bond and funds from special assessments to abutting properties. Motion by Czmowski, second by Sebesta, to close public hearing. Motion carried unanimously. Motion by May, second by Czmowski, to approve Resolution Nos. 15659 and 15660, excluding Project 24-03. Motion carried unanimously. 2 CITY COUNCIL MINUTES — November 28, 2023 purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. Ides items like monthly or annual reports and communications from other entities.) UNFINISHED BUSINESS 10. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 23-844 —AN ORDINANCE AMENDING CHAPTER 72 — PARKING REGULATIONS Matt Jaunich, City Administrator, noted that the first reading of this ordinance was held at the last Council meeting and no changes have been made to it. The proposed ordinance changes continuous parking on city streets from 24 hours to 72 hours. Motion by Burley, second by Sebesta, to approve second reading and adoption of Ordinance No. 23-844. Motion carried unanimously. NEW BUSINESS 11. APPROVE/DENY ISSUING TOBACCO LICENSE TO JEHAD MISHAL OF HUTCH TOBACCO Matt Jaunich, City Administrator, explained that there has been an ownership change of Hutch Tobacco and therefore a new license was applied for by Jehad Mishal, the new owner. A background check has been conducted and nothing precludes Mr. Mishal from being an eligible for a license, therefore staff is recommending that a license be issued to him. Motion by Czmowski, second by May, to approve issuing tobacco license to Jehad Mishal of Hutch Tobacco. Motion carried unanimously. 12. APPROVE/DENY FIRST READING OF ORDINANCE NO. 23-845 - AN ORDINANCE TO REZONE PROPERTY AT BLOCK 1, LOTS 1 THROUGH 3, BAR PROPERTIES PLAT AS REQUESTED BY BAR PROPERTIES, LLC WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that BAR Properties has applied for a rezoning of the south third of 845 Hwy 7 West. The applicant has applied to rezone the property to R-3 Medium Density High Residential from I/C Industrial/Commercial. All of the adjacent single-family homes are zoned R-3 and the new lots created will be very similar to the existing single-family homes. A public hearing was held at the Planning Commission last week and no one spoke regarding the request. The Planning Commission voted unanimously to recommend approval of the requested rezoning. Motion by May, second by Czmowski, to approve first reading of Ordinance No. 23-845. Motion carried unanimously. CITY COUNCIL MINUTES - November 28, 2023 13. APPROVE/DENY TEMPORARILY SUSPENDING CITY ORDINANCE 93.41 (ANIMAL KEEPING RESTRICTIONS) FROM MAY 1, 2024 THROUGH JULY 31, 2024, FOR PRAIRIE RESTORATIONS Lynn Neumann, PRCE Director, presented before the Council. Ms. Neumann explained that PRCE staff has been working with "Goats on the Go" to perform targeted grazing in Roberts Park, Riverside Park and Miller Woods Park. Targeted grazing for invasive species management in public parks is an eco-friendly and sustainable approach that leverages the natural behavior of livestock to control the spread of invasive plants. Quotes were received from "Goats on the Go' for the program in the three identified parks. The work will be performed in the spring/summer of 2024. This program will be paid for using grant dollars obtained from the DNR for prairie restorations. Staff is requesting the Council authorize temporarily suspending Ordinance 93.41 from May 1, 2024, through July 31, 2024. This ordinance does not allow harboring farm animals within city limits and staff is requesting that it be suspended during the term of the program for the specific parks indicated. Motion by Czmowski, second by May, to approve suspending Ordinance 93.41 for "Goats on the Go" program. Motion carried unanimously. GOVERNANCE iT e purpose o t tis 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.) 14. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) City of Hutchinson Financial Report and Investment Report for October 2023 (b) Hutchinson Housing & Redevelopment Authority Board Minutes from October 17, 2023 MISCELLANEOUS 15. STAFF UPDATES Tom Gifferson — Chief Gifferson explained that with the hospital security officers being laid off from the City, those employees are all, for the most part, becoming employees of Hutchinson Health. This is occurring because Hutchinson Health will be having the security officer positions be an in-house service and not contracted with the City. Chief Gifferson also noted that approximately 25 turkeys were collected and harvested and donated to the food shelf. Matt Jaunich — Mr. Jaunich reminded the Council of the Truth in Taxation hearing scheduled for December 5, 2023, at 6:00 p.m. at City Center. Discussion was also held regarding rescheduling the December 26, 2023, Council meeting to December 19, 2023. Formal action will be taken at the next Council meeting to reschedule that meeting. 16. COUNCIL/MAYOR UPDATE ADJOURNMENT 0 CITY COUNCIL MINU7ES - November 28, 2023 Motion by May, second by Czmowski, to adjourn at 6:25 p.m. Motion carried unanimously. HUTCHINSON CITY COUNCIL REVIEW OF 2024 ENTERPRISE FUND BUDGETS MINUTES TUESDAY, NOVEMBER 28, 2023, AT 4:00 PM CITY CENTER — COUNCIL CHAMBERS 1. Call to Order Mayor Forcier called the workshop to order at 4:00 p.m. Members present included Chad Czmowski, Pat May, Tim Burley and Dave Sebesta. Others present were: Matt Jaunich, City Administrator; Mike Stifter, Public Works Director; Andy Reid, Finance Director; Andy Kosek, Creekside Manager; Candice Woods, Liquor Hutch Manager REVIEW OF 2024 ENTERPRISE FUND BUDGETS Matt Jaunich, City Administrator, spoke before the Council. Mr. Jaunich noted that a review of the following budgets will be held at today's workshop: Liquor Hutch, Creekside, Refuse/Garbage, Water/Wastewater/Storm Water. In addition, there will be a review of the local sales tax option and the enterprise fund transfers to the general fund. Lastly, an update will be given on the 2024 budget and tax levy and CIP. 2. Liquor Hutch Budget Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich reviewed the proposed budget for 2024 which sees a 5.9% increase in sales revenue over the 2023 forecasted sales. This is due to 2023 forecasted sales beating the budget by 3.8%. Additionally, THC products are being budgeted for the first time ever since sales began in June of 2023. Proposed expenses for 2024 have increased 6.2%. Capital projects include renovations to the checkout counters and a new refrigeration system for the import beer cooler. Andy Reid, Finance Director, commented on credit card fees that are beginning to be a large expense and need to be considered in 2025. Mr. Jaunich also provided a 10-year liquor fund forecast. Creekside Budget Mr. Jaunich explained that Creekside's 2024 budget includes a -9.8% decrease in revenue. Sales revenue for bagged product is budgeted at a -15.8% decrease due to the loss of a major customer late in 2022. Bulk product sales revenue is up over 100% due to the availability of bitcon inventory for the year. Total expenses are budgeted at a decrease of-15.2%. Capital projects include cold storage expansion, pallet inverter, portable shrink-wrapping machine and bagging line improvements. The transfer to the general fund is budgeted at $120,000. The ending cash balance for Creekside is budgeted at $2,206,728. Mr. Jaunich also provided a 10-year compost fund forecast. Refuse/Garbage Budget Mr. Jaunich noted that the refuse/garbage budget sees an increase in revenue of 6.8% from 2023. This includes a 5% rate increase for all refuse rates, which is the first increase since 2008. Expenses for the refuse/garbage budget will see a decrease of -5.6% for 2024. There is a $55,000 transfer that goes out to the tree disease infestation/mitigation fund. The capital outlay assumption for 2024 is based on planned improvements to the source separated operating model. This was originally planned in 2021, but was put on hold due to permitting delays with the MPCA. Projects included are investment in new SSOM operations, a roll -off truck chassis, an and airlift separator. Mr. Jaunich provided a 10-year refuse fund forecast. Water Fund Budget Mr. Jaunich explained that the Water Fund budget shows a 10.0% increase in total revenue for 2024. The 2024 budget does not include any increase in water rates, but does include some adjustments to sales revenue based on the new rate structure that was effective 1/1/23. Water fund expenses are budgeted at a 5.3% increase. Projects included are water meter replacements, Well 4 rehabilitation and recovery treatment, water treatment facility roadway and parking lot improvements, bulk tank and containment pit lining, plat optimization study, permeate flush pump VFDs, and roadway infrastructure improvements. Transfer to the general fund will remain at $70,000 for 2024. The ending cash balance for the water fund budget is budgeted at $4,708,033. Mr. Jaunich provided a 10-year water fund forecast and noted that 2026 is the last year of the local sales tax. Wastewater Fund Budget Mr. Jaunich explained that the wastewater fund budget sees a 16.5% increase in revenues for 2024. The 2024 budget does not include any increase in sewer rates, but does include some adjustments to sales revenue based on the new rate structure that was effective 1/1/23. Total expenses have a budgeted increase of 15.4%. Projects included are digester aeration and mixation rehabilitation, belt press thickener 2 overhaul/replacement, main lift station pump 2 & 4 VFD replacement, EQ basin liner replacement, lift station repairs/upgrades at the Elementary School, Our Saviors Church and 5th Avenue locations, roadway and parking lot improvements, replace vactor truck and jetting trailer, half -ton extended cab 4x4 pickup truck, and roadway infrastructure improvements. The wastewater fund budget has an ending cash balance budgeted at $6,256,437. Mr. Jaunich provided a 10-year wastewater fund forecast. Local Option Sales Tax Mr. Jaunich reviewed the local option sales tax program and the purpose of it which is dedicated solely to retiring the debt in water and sewer funds. Mr. Jaunich provided quick facts in reference to local option sales tax, which included: local sales tax on a $100 purchase amounts to $.050; local sales tax is applicable to the same retail purchases, subject to Minnesota sales tax; sale of vehicles by dealers are exempt and instead are subject to an excise fee of $20 per vehicle sold; local sales tax is applicable to any sale made within city limits as determined by the last four digits of your zip code; point of possession determines taxability; purchases item/service received/performed within city limits is subject to the local sales tax; purchased items/service is received/performed outside city limits is exempt from local sales tax; organizations exempt from paying state sales tax are also exempt from the local sales tax. Mr. Jaunich noted that the use tax process is applicable so if a purchase is taxable but the vendor did not charge sales tax, then use tax must be reported and paid to the State. Mr. Jaunich also reviewed other nearby cities with local option sales tax. Mr. Jaunich explained that early retirement of debt is an option if cash reserves are sufficient. While the main purpose of the tax is to retire existing debt, it also allows the City to build healthy cash reserves to help with annual street projects with water & sewer infrastructure improvements, improvements that may be needed in each facility, other projects that create efficiencies and stable water/sewer rates. Mr. Jaunich noted that during the past November elections, seven cities put forward 11 ballot questions for local sales tax and of those 11, 10 were approved by voters. Mr. Jaunich then reviewed the outstanding debt. Stormwater Fund Budget Mr. Jaunich explained that total revenue in the stormwater fund budget is seeing an increase of 3.9%. There is a planned rate increase of 3% over nine classifications. Expenses are budgeted at a 13.2% increase. City's leaf vacuuming program is accounted for in this fund and street sweeping is also funded by this account. Projects included for 2024 include pond improvements in the developments of Fairway Estates, Summerset, Southfork, and Bridgewater and other roadway infrastructure improvements. The ending cash balance in the stormwater fund is budgeted at $1,036,481 for 2024. Mr. Jaunich provided a 10-year stormwater fund forecast. Lastly, Mr. Jaunich provided an overview on enterprise fund transfers to the general fund. Mr. Jaunich noted that the liquor fund continues to do well. 2024 sees the first rate increase in garbage rates since 2008. 2024 is the second year of a new rate structure for water and sewer users. There is a slight increase in the stormwater fees. Enterprise fund transfers into the general fund account for about 5.8% of general fund revenue. Cash balances continue to remain healthy. Capital needs continue to increase especially in the Creekside/Water/Sewer funds. In addition, regulatory agencies have and likely will impact future needs. Mr. Jaunich provided an update on the general fund budget. Mr. Jaunich noted that there have been significant changes made to the preliminary budget and tax levy from September. Staff has increased some revenues and cut expenditures from the budget based on departmental meetings over the past couple of months that has resulted in the tax levy being lowered by $178,382. September's preliminary general fund tax levy increase of 12% has been reduced to an increase of 9%. September's preliminary overall city tax levy increase of 9.3% has been reduced to an increase of 7.2%. Cuts include the elimination of a position that was being considered for an addition in public works and includes the elimination of the Hospital Security Program as Hutchinson Health will be having that program in-house. In addition, there were several other line -item reductions. Minor changes were made to the Capital Improvement Plan. With the adjustments made, the proposed total levy increase from 2023 is 7.2%. All of this information will be presented at the Truth in Taxation hearing next week. The Council had favorable comments on the change in the proposed levy increase. 3. Adjournment Motion by May, second by Czmowski, to adjourn the workshop at 5:00 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator MINUTES CITY COUNCIL TRUTH IN TAXATION HEARING DECEMBER 5, 2023 1. CALL TO ORDER — 6:00 P.M. Members Present: Mayor Gary Forcier, Pat May, Tim Burley and Chad Czmowski. Member absent was Dave Sebesta. Others present: Matt Jaunich, City Administrator, Marc Sebora, City Attorney, Andy Reid, Finance Director, and Justin Juergensen, Assistant Finance Director 2. TRUTH IN TAXATION HEARING Mayor Forcier opened the hearing at 6:00 p.m. Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained the budget process the City has used to date. Four work sessions have been held over the past seven months. The Council adopted the preliminary budget and tax levy in September and recently truth in taxation notices were mailed to all City property owners. Mr. Jaunich explained the purpose for tonight's hearing is to enhance public participation in the property tax system by allowing a public forum to discuss the budget, discuss the proposed tax levy, explain the increases and hear public comments and questions on the budget and tax levy. If the hearing needs to be continued it will be continued at the next Council meeting on December 12, 2023, and the final budget and tax levy is expected to be adopted by the Council on December 19, 2023. Mr. Jaunich noted that at tonight's hearing the Council discusses the City's share of citizens' total 2024 proposed tax bill, not property valuations. Mr. Jaunich explained that property valuation open book meetings are held in May/June by McLeod County. Mr. Jaunich briefly explained valuations and noted that the market value of a property is determined by January 2 of the year prior to the year in which taxes on that property are due. Therefore, market values for taxes payable in 2024 were set in January 2023. Property values on statements recently received are based off of home sales from October of 2021 to September of 2022. Property owners will receive new notices of market values from the assessor in March/April of 2024. Questions on valuations should be addressed in May/June with the County Assessor/County Board. Mr. Jaunich explained that the preliminary tax levy set in September showed a tax increase of 9.3% and included a balanced budget. The revised budget has reduced the tax levy increase to 7.2% while maintaining a balanced budget. The City has adjusted its revenue and expense projections and eliminated roughly $178,500 in taxes since its preliminary budget was adopted in September. Hutchinson's 2023 average City tax rate ranked the second lowest in McLeod County, however ranked in the average range amongst other outstate regional centers. The state-wide city average tax rate is 74.65% and Hutchinson is at 60.41%. Hutchinson is the fourth lowest of all outstate regional centers for the poverty level, 5t1i highest of all outstate regional centers for median household income, 7'1i highest of all outstate regional centers for median home value and is the fourth lowest of all outstate regional centers in LGA payments. The 2024 state-wide proposed property tax increase of cities is 8.4% and the 2024 state-wide proposed property tax increase for all taxing agencies is 7.3%. Mr. Jaunich provided data on tax levy comparison to tax base, price of government for the City of Hutchinson and a price of government comparison. Mr. Jaunich noted that there are 14 reasons property taxes vary from year to year. These include: the market value of property may change; the market value of other properties in the taxing district may change, shifting taxes from one property to another; the State general property tax may change; the city budget and levy may change; the Township budget and Ievy may change; the County budget and levy may change; the School District's budget and levy may change; a Special District's budget and levy may change; special assessments may be added to a property tax bill; voters may have approved a school, city/township, county or special district referendum, federal and state mandates have changed; aid and revenue from the state and federal governments may have changed; the state legislature may have charged the portion of the tax base paid by different types of properties; other state law change may adjust the tax base. Mr. Jaunich also reviewed Minnesota's property tax system and how it is based off of five components, those being: local property tax levies (city, school district, county, etc.), property tax classification rates (ranges from 0.25% to 2.0% - set by the state) property value (based off of property sales and is set by the county assessor), tax credits (only certain properties get this) and state general tax (set by the state and assigned to mainly commercial/industrial properties). Hutchinson's property tax rate is set by taken& the city's tax levy and dividing it by its total tax capacity. Tax capacity is determined by multiplying a property's market value by its classification rate. Each property rate is assigned a classification rate depending on its use by the State Legislature. Properties associated with income production (commercial & industrial) have a higher classification weight than other properties. The City's total tax capacity is an accumulation of all parcels within the city, minus adjustments. Mr. Jaunich then explained how the City's portion of a proposed tax bill is determined. Mr. Jaunich shared four options that the Council is considering for the tax levy that range from a 0% increase to a 9.3% increase. Mr. Jaunich noted that with the proposed 7.2% levy increase that means a $131.00/ ear increase on a home valued at $250,000. Mr. Jaunich also noted that even with a 0% levy increase, a property owner's taxes would increase $46 due to the increase in valuation. Again, this is the City's portion of the tax statement. Mr. Jaunich also explained the homestead exclusion and market value history. He noted that apartment complexes have seen the lamest market value growth over the last couple of years. Mr. Jaunich reviewed the entities that share a Hutchinson tax bill those being the County, the School (operating), the School (debt), the City, the EDA, the HRA and Region 6E. Mr. Jaunich then reviewed the City's mission statement and seven core areas of focus, which include public safety; health & recreation; transportation; economic development; environment, good government and housing. Mr. Jaunich reviewed the proposed tax levies for 2024 which includes a 7.2% increase for the City's portion and a 5.7% increase for the EDA levy and a 2.8% increase for the HRA levy, for a total tax impact increase of 7.1%. Mr. Jaunich reviewed the 2024 debt levy and the tax levy comparison since 2016. The proposed 2024 tax levy includes the ninth straight year of an increase in the general fund portion of the levy. The proposed 2024 tax levy includes the third straight year of an increase to the debt fund portion of the levy (2.6%). Compared to 2014, the City's total tax levy has increased by 35.2%. The average annual tax levy increase since 2014 has been 3.1%. The 2024 total tax levy accounts for a per capita tax of $617, which is up from $589 in 2023. Mr. Jaunich provided additional information on the City's tax rate such as: 1.) The City's growth in tax ca acity (6.1%) continues to do well; 2.) This will be the first time that the tax levy 1 7.2%) outpaces the tax capacity in 10 years, resulting in a likely increased city tax rate; 3.) The median home value would see a $46 city tax bill increase, based on an estimated 8.7% increase from $230,000 to $250,000 (a property possibly might not see a city tax increase if its value does not increase at the same rate as the median home value and a property valued at $230,000 in 2023 with the same value in 2024 would see a $12 increase in its city tax bill). Mr. Jaunich also provided data on the 10-year tax rate trend. Mr. Jaunich reviewed the general fund revenues and expenses. Mr. Jaunich explained that the general fund revenues include property taxes, other taxes, licenses &permits, intergovernmental revenue, charges for service, fines & forfeitures, miscellaneous revenue, and transfers -in. He noted additional facts on general fund revenues which include: general fund revenues include a 9% tax levy increase ($523,685) - $25,000 of the levy is allocated to the Uponor tax abatement; property taxes account for approximately 43% of the General Fund Revenues; the PILOT payment from HUC increased by $38,092; there are increases in LGA and the Fire & Police Pension Aid; includes a reduction in building permit fees ($50,000) and the loss of hospital security revenue ($347,834); transfer -ins from the enterprise funds account for $2,812,628 which is the equivalent of a 48% tax levy increase; there is increased revenue from higher interest rates; and a 1% tax levy increase to the general fund is equivalent to $58,350. Total general fund expenses are comprised of wages & benefits, supplies, services & charges, miscellaneous expenses, transfers -out and capital outlay. Public safety accounts for 34.0% of general fund, 26.2% is general government, 22.6% is culture and recreation, 15.2% is streets and highway and 2.0% is miscellaneous. Mr. Jaunich noted the following: wages & benefits increased 3.7% for 2024 which includes performance and other annual adjustments, a 25% increase in health insurance costs, elimination of the hospital security and the removal of a full-time Public Works position from the preliminary budget; wages and benefits account for 67% of general fund expenses; supply costs are going up due to higher costs associated with inflation; departments have held budgets flat other than wages & benefits and inflationary factors; and the 2024 budgeted expenses are balanced with revenues. Mr. Jaunich then reviewed the enterprise funds — consisting of the liquor, compost, refuse, water, wastewater and stormwater funds. Mr. Jaunich noted that the Liquor Hutch and Creekside continue to do well and will contribute $670,000 to the general fund in 2024. There will be a 5% increase in garbage rates which is the first increase since 2008. All enterprise funds continue to have healthy fund balances. There will be a slight rate increase to stormwater rates of 3%. Transfers to the general fund from the enterprise funds will be at $870,000 in 2024. Total enterprise money is $2,812,628 when HUC money is included. Mr. Jaunich noted that capital needs are due to the age of all of the facilities starting to increase. Mr. Jaunich reviewed the 2024-2028 capital improvement plan. The capital improvement plan is made up of infrastructure, enterprise funds, public safety, public works, Park & Recreation, and general government and is approximately $69 million. The approximate breakdown of distribution of the funds is as follows: $23.35 million to infrastructure; $3.28 million to public safety; $19.99 million to Enterprise Funds; $15.02 million to Public Works; $6.36 million to Park & Rec and $1.18 million to General Government. Funds for the CIP come from new debt, enterprise funds, taxes, special assessments, aids/grant, special funds/reserves and unfunded (no current funding sources). Major capital items included in the capital plan are: Creekside facility/equipment, water and wastewater improvements/equipment, water meters, lakes/river improvements, street improvement projects, Uptown Grand project, Fire Department parking lot, air cemetery, cemetery, Public Works vehicles/equipment, civic arena improvements, library, playgrounds, VMF Stadium, Park & Rec vehicles/equipment, fire facilities/equipment, police vehicle and City Center improvements. Mr. Jaunich reviewed the debt management plan. The big impact was the new police station. 2022 was the first increase in the debt levy since 2016. The 2024 increase is at a 2.8% increase. Increased interest rates have/will impact future debt decisions. Rising project costs have put pressure on increasing the debt tax levy. Debt levy has not kept up with inflation. Special assessment rates need to be reviewed. The City still has future debt needs for heavy equipment and fire trucks. Mr. Jaunich reviewed that staff is recommending a 9.1% increase in general fund revenue/expenses which means a 9.0% increase in the total general fund and a 2.8% increase in the debt tax levy with an overall tax levy increase of 7.2%. With the EDA tax levy proposed to increase 5.7% and the HRA tax levy proposed to increase 3.1% the total tax impact is 7.1%. One of the biggest factors behind the levy increase is the general wage and benefit increases along with a significant increase in health insurance costs are expected to cost the City an additional $357,812 in 2024. General inflationary factors are impacting the budget as well. Mr. Jaunich noted that outside of eliminating the hospital security and not adding an additional public works employee, the budget includes no other significant increases or cuts in staffmg or changes in service. Staffing costs and capital needs are the biggest driver of the City's budget. Fund balances continue to remain high and the fiscal condition of the City is healthy. The State's budget forecasts are projecting a slight surplus meaning the City shouldn't see any State budget issues impactorg the City. While things are slowing down, home values continue to increase and the City is continuing to see growth at all levels. Inflation and supply chain issues are impacting the City as well. Bill Ask, owner of River Ridge Apartments/Carolina Avenue Apartments, presented before the Council. Mr. Ask noted that his taxes in 2019 were $23,000 and now they're over $50,000 so more than doubled in four years. Mr. Ask also commented about the increase in water/sewer rates. Mr. Ask noted that the culmination of all of the increases really effects his tenants, which are work -force tenants and work -force rates. Mr. Jaunich noted that the increase in value of Mr. Ask's property is a big factor in his taxes along with some other factors. Mr. Ask was encouraged to speak with McLeod County about the valuation of his property as well as the portion of his taxes that are McLeod County's. Jim Lauer, 775 Laura Avenue SW, presented before the Council. Mr. Lauer asked about the enterprise fund transfer -ins. He noted that it appears that revenues are less than expenses in the enterprise funds so he asked where the money is coming from for the transfers -in. Mr. Reid explained that this is mainly due to depreciation which is expensed and shows a negative net revenue but is not a cash item. When depreciation is pulled out the cash flow is positive which allows for the transfers to the general fund. Mr. Jaunich explained that all the enterprise funds are all self- sustaining and no general fund dollars go into the enterprise funds. Mr. Lauer asked that more detailed information on the enterprise funds be presented at this hearing in the future. Mr. Jaunich noted that an update on the budget will be held at the December 12, 2023, City Council meeting and will be formally adopted at the December 19, 2023, City Council meeting. 3. ADJOURN Motion by May, second by Czmowski, to adjourn at 7:15 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Matthew Jaunich Mayor City Administrator c� HUTCHINSON CITY COUNCIL KJ 21 "11464srolk Request for Board Action A CITY ON PURPOSE. Resolution Designating Annual Polling Places Agenda Item: Department: Administration/Elections LICENSE SECTION Meeting Date: 12/12/2023 Application Complete N/A Contact: M. Starke/M. Jaunich Agenda Item Type: Presenter: M. Starke/M. Jaunich Reviewed by Staff ❑f Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Minn. Stat. §20413.16 requires the City Council to designate its local polling places for elections by December 31 st of each year. The polling locations have not changed as from what was established last year and are as follows: Precinct 1 - Ridgewater College - 2 Century Avenue SE (east entrance) Precinct 2 - Days Inn - 1000 Hwy 7 West (east entrance) Precinct 3 - Recreation Center - 900 Harrington Street These polling places are also designated in Resolution 15664. Upon adoption of this Resolution, the Council will not need to update the polling place resolution unless the City has a change in polling locations or statute is changed. BOARD ACTION REQUESTED: Approve Resolution No. 15664 - Designating Annual Polling Places 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 Resolution No. 15664 A RESOLUTION DESIGNATING ANNUAL POLLING PLACES WHEREAS, it is important that citizens exercise their right to vote at their local polling places; and, WHEREAS, Minn. Stat. §204B.16 requires the City Council to designate its local polling places for elections by December 31St of each year, NOW THEREFORE BE IT RESOLVED that the City Council of the City of Hutchinson, County of McLeod, State of Minnesota does hereby designate the following locations as its polling places for all state and federal elections in 2024: Precinct 1 (Ridgewater College, 2 Century Avenue SE) Precinct 2 (Days Inn, 1000 Hwy 7 West) Precinct 3 (Recreation Center, 900 Harrington Street) BE IT FURTHER RESOLVED, that the city notify residents of this designation by following the requirements of Minn. Stat. §205.16. Adopted by the City Council this 12th day of December, 2023 ATTEST: Gary T. Forcier, Mayor Matthew Jaunich, City Administrator - HUTCHINSON CITY COUNCIL - Request for Board Action A C€TY ON PURPOSE. Review & Approval of Snow Removal & Ice Control Policy Resolution No. 15665 Agenda Item: Department: PW/Eng LICENSE SECTION Meeting Date: 12/12/2023 Application Complete N/A Contact: John Olson/Mike Stifter Agenda Item Type: Presenter: John Olson/Mike Stifter Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: It has been two years since the last review of the Snow Removal & Ice Control Policy document. It is the intent of Public Works to review this policy periodically, roughly every two or three years. Public Works staff recommends some changes to the policy that can be described as administrative. These changes include updating descriptions, titles, terminology, etc. There also are some improvements to word order, punctuation, and corrections to tense, along with other minor changes to improve understandability. Public Works staff will be available to address any questions. BOARD ACTION REQUESTED: Request adoption of Resolution 15665 a resolution adopting modifications to the City's Snow Removal and Ice Control Policy. 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 Resolution No. 15665 A RESOLUTION ADOPTING THE CITY'S SNOW REMOVAL AND ICE CONTROL POLICY WHEREAS, Minnesota Statutes, Section 412.221 and the City Charter authorizes the City to maintain City streets; and WHEREAS, the City Council finds that it is in the best interest of the residents, businesses and industries for the City to assume basic responsibility for control of snow and ice on City streets; and WHEREAS, The City Council finds that the City would be best served to have a policy addressing snow removal and ice control; and WHEREAS, a Snow Removal and Ice Control Policy has been developed and recommended by City staff, and WHEREAS, the City Council finds that adoption of said policy is in the best interest of the City, NOW THEREFORE BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota that said Snow Removal and Ice Control Policy is hereby approved and adopted. Dated this 12" day of December, 2023. By: Gary Forcier, Mayor Attest: Matthew Jaunich, City Administrator u00 HUTCHINSON A CITY ON PURPOSE. City of Hutchinson Snow Removal and Ice Control Policy December, 2023 City of Hutchinson Snow Removal and Ice Control Policy Purpose of this Policy The City of Hutchinson recognizes that assuming basic responsibility for snow removal and ice control on City streets and at City facilities is in the best interest of the residents, businesses and industries of Hutchinson. Providing reasonable snow removal and ice control is necessary for emergency, commercial, and personal travel. The City strives to provide this service in a timely, safe, and cost- effective manner; keeping in mind safety, budget, personnel, equipment and environmental concerns. The City will primarily use its own personnel and equipment to provide this service, but may also, when necessary or beneficial, use private contractors. This policy does not relieve vehicle operators or those that may otherwise be affected by snow removal operations of their responsibility to act in a reasonable, prudent and cautious manner, given the prevailing weather and pavement conditions. Responsibility and Authority for this Policy The Public Works Department is charged with the primary responsibility for executing snow removal and ice control operations and for exercising the appropriate levels of authority to ensure maintenance and compliance with this policy. (In this document the title Public Works Department includes the qualified Public Works employee designated by the Director to oversee snow removal and ice control operations. This position is typically assigned to a senior operations manager, but may from time to time be assigned to another experienced Public Works employee in the absence of a senior operations manager.) The Public Works Department is responsible for coordinating equipment and personnel, assigning them work based on the need for snow removal and ice control within the City. The Public Works Department retains the authority to alter assignments based on weather conditions, equipment and personnel availability and on other conditions related to snow removal/ice control. The Public Works Department can declare a snow emergency for the purpose of restricting on -street parking (Appendix A). As necessary, the Public Works Department can enlist the assistance of City employees or equipment not usually assigned to snow removal responsibilities and hire contractors to provide snow removal services. In cooperation with emergency services personnel, the Public Works Department continuously monitors weather conditions to determine appropriate action. Priorities for Service Snow removal and ice control services will be generally provided using these priorities: 1st priority: Priority routes and central business district areas with no boulevard 2nd priority: Other business districts, truck routes and the airport 3rd priority: Through streets and specifically identified public properties 4th priority: Cul-de-sacs, dead-end streets and alleys 5th priority: Specifically identified sidewalks, trails and walkways last priority: Other public property and maintenance activities. These priorities will apply to nearly every snow removal and ice control operation. However, the Public Works Department has the authority to adjust or deviate from these priorities, should conditions warrant. Policy Provisions 1) Initiating Operations: Commencement of snow removal and ice control operations depends upon immediate and anticipated conditions. The Public Works Department generally initiates snow removal and ice control operations when one or more of these conditions exist: a) weather conditions do not endanger the safety of employees, contractors or equipment. b) operations will be effective. c) there are at least two inches of snow accumulation. d) significant blowing and drifting of snow into traveled portions of major roadways and intersections has occurred. e) rainstorms, ice storms, and/or periods of light snow create slippery conditions — efforts during these situations will be concentrated on major roadways, bridges, steep grades and heavily traveled intersections. Operations may be initiated any time the operations are deemed to be beneficial on either a short-term or long-term basis. 2) Suspension of Operations: The Public Works Department may suspend operations at any time if temperatures, winds, visibility, and/or precipitation make operations unsafe, ineffective or unnecessary. 3) Staffing Operations: Snow removal and ice control operations may occur during assigned work shifts or, in some situations, on a call -out of operators. The Public Works Department has the discretion to recall operators or wait until the next assigned work shift to respond to specific snow removal or ice control service requests. For safety reasons, operators of snow removal and ice control equipment will generally not be scheduled to work more than 12 hours in any 24-hour period with less than nine (9) hours off between work shifts. 4) Response to Emergencies: Emergency services officers may contact the Public Works Department to dispatch operators and equipment to provide services for emergency vehicles responding to emergencies within the City (i.e., police, fire, ambulance, electrical outages, gas leaks, utility restoration, etc.). 5) Routes: Each year the Public Works Department prepares a map of the street and sidewalk/trail systems serviced by the City. These systems are divided into route areas that identify personnel and equipment or, if necessary, private contractors used to provide services. Route areas are periodically revised to correspond with budget, equipment, personnel and other resources available to the City. Priority routes are identified within each route area. Hazards are also identified in each route area. These route areas are generally assigned to individual operators and are used for planning and executing routine snow plowing and ice control operations. 6) Methods: Snow is generally plowed in a way that reduces traffic obstructions and the effect of future snowfalls. Generally, snow will be plowed from the center of the street outward toward the curb line so the snow discharges onto the boulevard. Some streets may be plowed from one side of the street to the other. Snow may also be moved to the center or side of the street to be hauled away later. Cul-de- sacs and dead-end streets will generally be plowed to the outside. When plowing on bridges, operators will adjust their speed to reduce or eliminate any snow going over the side of the bridge. As necessitated by available resources, snow is plowed to the edge of the street without regard for sidewalks, driveways and other structures located in the right-of-way. The City recognizes the inconvenience that comes from accumulations on rights -of -way, sidewalks and driveways, but the City is not responsible for removing snow from rights -of -way, private driveways, most sidewalks or from private structures located in the right-of-way. Snowplowing is done on specifically identified sidewalks/trails on a priority basis. Snow may be removed from areas other than the central business district where no boulevard exist only at the direction of the Public Works Department. The City recognizes that snowplow operators are exempt from traffic regulations set forth in Minnesota Statutes, Chapter 169 while actually engaged in work on streets, except for regulations related to driving while impaired and the safety of school children. Pursuant to this authority, snowplow operators have discretion to disregard traffic laws, when required for their work and when, in the operator's judgment, it is safe to disregard such laws, provided such actions comply with the Public Works policy entitled Operation of Road Maintenance Equipment (Appendix B). 7) Expected Minimum Levels of Service: The following represents the minimum levels of services that can be expected. The City strives to achieve better results whenever possible: I.) It is the City's intent to keep designated priority routes open to traffic, if possible, during a storm or have them open to traffic as soon as possible after snow accumulation has subsided. 'Open to traffic' means there is a lane available for cars to travel on; the term does not necessarily mean the street has been plowed from curb to curb. II.) As many routes as possible that serve business areas and densely populated residential areas are to be open to traffic within 12 hours after snow accumulation subsides. III.) Through streets are to be open to traffic within 36 hours after snow accumulation subsides. All public streets are to be open to traffic within 48 hours, unless snow accumulation is of such depth as to require removal. Every public street, alley and parking lot is to be opened to normal, functional traffic patterns within four days after snow accumulation subsides. IV.) Where space does not allow for snow to be moved from traffic lanes to storage on the adjacent boulevard, the City may pile snow and haul it away. Snow may be stored in strategic locations for a time before the snow is hauled away. V.) Significant accumulations of snow on bridges will be removed. Removal of snow from bridges will begin only after all City streets, alleys and parking areas have been serviced and normal, functional traffic patterns have been restored. Because of safety considerations, this task will normally be done during daylight hours. VI.) Snow may be removed from selected critical intersections, away from fire hydrants and from other utility appurtenances requiring access. These services will begin only after all City streets, alleys, parking areas and bridges have been serviced. Snow may also be removed from boulevards and along curbs. Because of safety considerations, these tasks will generally commence during daylight hours. Priority Snow Removal Routes: The following are designated priority routes: Name of Street From: To: 2"d Ave SW/SE Dale St SW Michigan St SE 5th Ave NE/NW Montana St NW Bluff St NE 5th Ave SW/SE Lynn Rd SW T.H. 22 California St NW Highway 7 School Rd NW Century Ave SW/SE Dale St SW Jefferson St SE Dale St SW School Rd SW (Co Rd 7) 2nd Ave SW Echo Dr SW Freemont Ave SW Highway 15 Edmonton Ave SW/SE Dead end Grant Ave SE Elm St NE McLeod Ave NE North High Dr NE Freemont Ave SW Highway 15 Dead-end Golf Course Rd NW North High Dr NW Montana St NW Name of Street From: To: Jefferson St SE Airport Rd Washington Ave E Lynn Rd SW Hwy 15 Exit Washington Ave W McDonald Dr SW Lakewood Dr SW School Rd SW McLeod Ave NE/6`h Ave NE Highway 15 Bluff St NE Michigan St SE/NE 5th Ave SE Highway 7 Oakland Ave SE/TH 15 Service Rd Freemont Ave SW Adams St SE Roberts St/Rd SW McDonald Dr SW Dale St SW School Rd SW/NW South Grade Rd SW North High Dr NW (Co Rd 12) Shady Ridge Rd NW Highway 7 7th Ave NW Sherwood St SE Airport Rd Century Ave SE South Grade Rd SW Underwood Ave Highway 15 Sunset St SW Century Ave SW South Grade Rd SW Downtown (areafrom/to) Lynn Rd SW Adams St SE 5th Ave SW/SE 5th Ave N Cnnrl nnrl rmit The City does not have a bare pavement policy. General snow pack remaining on City streets will not normally be removed. Sanding operations are initiated to provide some temporary relief from skidding. Salt may be applied to melt ice on streets. Application of sand is generally limited to intersections, hazardous areas and isolated slippery areas. Sand will be applied at times and at rates that maximize effectiveness. Salt is mixed with sand to prevent the sand from freezing, but may also be added to melt ice/snow when weather conditions are suitable. The Public Works Department may order use of additional salt if pavement or air temperatures and precipitation type warrant use of additional salt for melting ice and snow. The Public Works Department may also order use of salt brine to pre -treat, enhance operations or provide additional ice and snow melting capabilities. The Public Works Department may use other minerals, chemicals and mixtures to assist in ice control, provided they are deemed to have fewer or the same effect on the environment as sand and salt mixtures and are economically feasible. Municipal Parking Lot Snow Removal There is no parking in municipal parking lots between 2 a.m. and 6 a.m. However, there are some municipal parking lots with designated overnight parking spaces, which are exempt from the 2 a.m. to 6 a.m. restriction. Designated overnight parking spaces are identified with signage. Parking permits are available from the Police Department. It is recommended that drivers get a permit for vehicles regularly parked in designated overnight parking stalls located within municipal parking lots. These permits are optional, but they provide contact information helpful for vehicle owners to avoid the expense of having their vehicles towed if they are parked in violation of signposted restrictions. Whenever possible, snow in designated overnight stalls will be removed at the same time as the rest of the parking lot. When that is not possible, subsequent operations during daylight hours using smaller equipment may be employed to remove snow from designated overnight stalls. If it becomes necessary to remove snow from designated overnight parking stalls during overnight hours, existing overnight signs will be replaced with a temporary sign. The temporary sign prohibits parking in overnight stalls, but allows parking in other areas of the parking lot between 2:00 a.m. and 6:00 a.m. These temporary signs are posted prior to 10:00 a.m. the morning prior to work beginning. Once posted with the temporary signs, parking restrictions in overnight stalls begin immediately and continue until snow has been removed from the designated overnight stalls and the temporary signs have been removed. Once the temporary signs are removed, overnight parking is once again allowed only in designated stalls. Snow Removal on Sidewalks, Trails & Walkways ("Sidewalks") It is the responsibility of the adjacent property owner, using due diligence, to keep sidewalks clear and to maintain a four -foot (4') walkway for pedestrian travel. The City has identified certain sidewalks that may receive some snowplowing services from City operators and equipment. These services are provided at the City's discretion, on a priority basis and do not relieve property owners of their responsibility to clear and maintain a four -foot (4') walkway for pedestrian travel. The City does not maintain a bare pavement policy, neither for roadways nor for sidewalks. The City will not utilize abrasives or chemicals when maintaining sidewalks. Sidewalks identified by the City will be plowed in a manner that may result in a double windrow on some driveways or accesses. The City is not responsible for removing windrows left by sidewalk snowplows. When snow blowers are utilized to clear snow, the discharge may be directed away from the street or boulevard onto private property. Sidewalks serviced by the City are done on a four -tiered priority system. If new snowfall occurs at any time during the process of clearing identified sidewalks, the process restarts with the highest priority. This often results in delayed service for lower priority sidewalks. Snow remaining on sidewalks 24 hours after snow has stopped falling, including snow that was plowed from public streets onto the sidewalk, is a public nuisance. The City may notify property owners that their property is in violation. Beginning 12 hours after notification, City crews or contractors may clean sidewalks, trails and walkways and bill adjacent property owners for that service. Unpaid bills will be certified to the County for collection with property taxes. The Luce Line state trail is not under the City's jurisdiction and therefore is not maintained by the City. The Minnesota Department of Natural Resources establishes maintenance policies for the Luce Line trail. Snow Disposal Sites Municipal sites Snow disposal sites established by the City shall not be used by private parties. Publicly accessible snow disposal site A publicly accessible snow disposal site is located on City property north of the Hutchinson Armory, 1200 Adams St SE. Private parties may use this site free of charge. The City will provide no services at this site, except to address its own use of the site, so close cooperation between private parties is encouraged to ensure snow is dumped and piled in an orderly fashion to maximize use of the site. This site is the only City snow disposal site that private parties shall use. When the site at 1200 Adams St SE can no longer be used, the City will establish an alternate publicly accessible disposal site. Signs will be posted at the Adams St SE site directing private parties to the new snow disposal site. Snow Removal on Private Properties It is a violation of Minnesota statutes and local ordinances to move snow from private properties onto or across public roadways. Property owners engaging in or allowing these activities are subject to the consequences of the statutes and ordinances. Private Contractors Providing Snow Removal Services Permits for private snow removal contractors are required by ordinance. The City does not require private contractors to obtain a written permit from the City, but their activities are still considered to be permitted. If a private contractor violates statutes, ordinances or policies related to snow removal, the City Council can suspend their privilege of conducting snow removal business within the City. Damage to Property Snow removal and ice control operations can cause damage to property, even under the best circumstances and care by equipment operators. Most damage occurs to property improvements in the right-of-way, which generally extends 10 to 15 feet beyond the edge of street pavement. The City is not responsible for damage to vegetation caused by plowing or the application of sand and salt mixtures. The City will not repair or compensate residents for repairing damaged vegetation. In certain cases, the City may clean up dead sod and over -seed areas in rights -of -way or on private property. Sod will not be used on public rights -of -way. Residents are encouraged to remove excess sand, dispose of the sand properly and thoroughly flush areas that may be affected by sand and salt mixtures. Only allowable and properly installed properties that are damaged by actual, physical contact with City equipment will be considered for repair at City expense. Personal property in the City's right-of-way damaged by snow being deposited from an accumulation on the blade of a snowplow will not be considered for compensation. The City Council has the authority to set reasonable maximum compensation limits for specific types of personal property placed in rights -of - way. When disagreement about the responsibility for the damage occurs, the Public Works Department will investigate and determine responsibility. In certain cases, where there is significant damage, the Police Department may be called to investigate. As always, property owners may bring their concerns to the City Council. Equipment operators and contractors are directed to immediately contact the Police Department and the Public Works Department whenever an incident involves a damage to vehicles, significant structures, or involves any injury to a person. Equipment operators and contractors also report existing damage they observe to avoid any potential future claim the damage was caused by snow removal or ice control operations. Mailhnxaq Mailboxes are a common obstacle that snowplow operators face. If mailboxes are damaged by equipment operators, the City may install a temporary replacement until weather conditions are conducive to complete repairs to the damaged mailbox. The City will conduct a review of each mailbox incident to determine whether the City will repair, replace or provide reimbursement for the mailbox. Only mailboxes actually hit by a snowplow will be the responsibility of the City. The City will not be responsible for damage to mailboxes or support posts caused by snow or ice coming in contact with the mailbox. The City will replace damaged mailboxes with a standard size, non -decorative metal or plastic mailbox and replace the support post, as necessary, with a 4"x4" decay resistant wood support or standard galvanized post/tube support installed by the City. If the owner desires a mailbox configuration other than the City's standard, the City will reimburse the mailbox owner for expenses, up to the maximum rate identified in the City's Fee Schedule for the replacement of a mailbox and post (Appendix C). Other Entities Certain streets within the City are maintained by other governmental entities. The Minnesota Department of Transportation and the McLeod County Public Works Department have separate maintenance policies for streets within the City maintained by them. From time to time, entities may contract with each other to perform snow removal services. The ultimate responsibility for snow removal services rests with the controlling entity. Others maintain these streets: Name of Street From: To: Entity: Highway 15 S/Main St S/ South city limit North city limit Mn/DOT Main St N/ Highway 15 N Highway 7 W/4th Ave NW/ West city limit East city limit Mn/DOT 4th Ave NE /Highway 7 E Adams Street South city limit Highway 7 E McLeod Co Bluff St NE Highway 7 E North city limit McLeod Co North High Dr NW/NE West city limit East city limit McLeod Co School Rd SW South city limit South Grade Rd SW McLeod Co Emergency Services The City of Hutchinson has several relationships with surrounding areas concerning emergency services. For that reason, emergency services dispatchers and officers are responsible for making requests for snow removal and ice control services from the appropriate jurisdiction. Service to Private Property City personnel and personnel contracted by the City do not provide snow removal and ice control services to private properties. Services on private property may, however, be provided with the permission of property owners in situations where City operations directly benefit. Snow removal operations may be conducted on any private property when emergency vehicles responding to a call for service require access to private property. Any operations on or services provided to private property are authorized by the Public Works Department or are provided at the request of an emergency services officers responding to a call. Requests for Services and Complaints Requests for service and complaints regarding snow removal and ice control operations will be taken during normal working hours. questions not able to be answered by administrative staff will be forwarded to the Public Works Department. Requests for service and other problems are handled in priority order, in keeping with personnel, equipment and materials available. Services are prioritized and provided at the discretion of the Public Works Department. Review of this Policy This policy will be reviewed periodically. Comments and complaints regarding this policy received since the last review will be considered during each review. Input from City employees and contractors, members of the public, and other affected parties will be considered. Final revisions to the policy are at the discretion of the City Council. Appendix A Declaration ❑f Snow Emergency; Parking Prohibited City Code § 72.15 DECLARATION OF SNOW EMERGENCY; PARKING PROHIBITED. (A) The City Administrator or other designated official may declare a snow emergency in the city. The emergency shall be declared by 4:00 p.m. and shall take effect later that same evening at 12:00 midnight. The snow emergency shall continue to be in effect for 24 hours. (B) Notice of the declaration of a snow emergency shall be given by notifying the local news media; however the notification shall be a service right only and not a duty on the part of city officials. (C) During a declared snow emergency, no motor vehicle shall be parked on any street or alleyway in the city between the hours of midnight and 7:00 a.m. except as otherwise posted. (D) During a declared snow emergency, any police officer is authorized to have a motor vehicle which is parked in violation of this section removed at the owners' expense. (Ord. 09-0536, passed 12-22-09) To comply with the ordinance, it is the intent of Public Works to follow the procedure outlined below when declaring a snow emergency: As soon as practicable but prior to 4:00 p.m. each day, a decision will be made in accordance with the existing Snow/ice Policy and Ordinances as to whether notification of a snow emergency for purposes of imposing parking restrictions for upcoming snow/ice maintenance activities is necessary. 2. If weather conditions warrant a snow emergency declaration, notification will be sent, via email, to: a. KDUZ/KARP radio stations b. HCVN Cable Channel 7 & 10 television stations c. Hutchinson Leader website d. City of Hutchinson website/social media platforms e. Designated City staff In addition, Public Works staff will provide these additional notifications: f. Notification of personnel involved in snow removal g. Updating a message on a dedicated telephone message line h. Updating/initiating any other current or future notification systems that may be implemented During snow emergencies, parking is restricted on City streets and alleyways between the hours of 12:00 a.m. midnight and 7:00 a.m., except as otherwise posted. Once a snow emergency is declared, parking restrictions begin at 12:00 a.m. midnight and are in effect for the following 24-hour period. During this 24-hour period, parking is restricted between the hours of 12:00 a.m. midnight and 7:00 a.m. Parking is restricted regardless of whether streets have been plowed. Existing parking regulations, where posted, are enforced during snow emergencies. If necessary, a snow emergency may be declared on successive days, prior to the end of the previously announced 24-hour period. Each time a snow emergency is declared, the 24-hour period and related parking restrictions begins again. Issues identified by City operators engaged in snow removal shall be reported to the senior Public Works employee, who shall report to the Police Department. The intent is to use snow emergencies judiciously, considering current and expected weather conditions, precipitation type/accumulation, timing of the storm and planned maintenance activities. Generally, a snow emergency will be declared after four inches of snow, for periods of severe drifting and/or for the necessity of treating roadways for severe slippery conditions. Appendix B Operation of Road Maintenance Equipment The goal of all road maintenance operations is effectiveness and safety. Minnesota statutes give considerable leeway to equipment operators engaged in road maintenance. State statutes recognize the unique circumstances equipment operators encounter while performing road maintenance. When engaged in snow and ice control or flood control work, equipment is exempt from standard size and weight restrictions. Operators are never exempt from statutes regulating driving under the influence or operations around school busses and in school zones. Minnesota Statute §169.035 Subdivision 1. Working on highway. (a) The provisions of this chapter shall not apply to persons, motor vehicles, and other equipment while actually engaged in work upon the highway, except as provided in paragraphs (b) and (c). (b) This chapter shall apply to those persons and vehicles when traveling to or from such work, except that persons operating equipment owned, rented or hired by road authorities shall be exempt from the width, height and length provisions of sections 169.80 and 169.81 and shall be exempt from the weight limitations of this chapter while performing the following actions on behalf of the state or a local governmental unit: (1) while loading, readying, or moving the vehicles or equipment in preparation for combating anticipated slippery road conditions or removing snow or ice; (2) while actually engaged in snow or ice removal or combating slippery road conditions, including but not limited to pretreatment and anti -icing activities; or (3) while engaged in flood control operations. (c) Chapter 169A and section 169.444 apply to persons while actually engaged in work upon the highway. The City has established the following guidelines that affect operation of maintenance equipment for snow removal operations. The City does recognize that, while performing road maintenance, there will be times when it is not feasible to comply with standard traffic control regulations. In those cases, operators are expected to perform operations with caution and proceed only after consideration is given to the safety of the operation. Unless specifically stated below, all trucks hauling snow during snow removal operations shall comply with all State traffic regulations. e) All standard safety devices on the vehicles shall be functional prior to operating and shall be used during operations. f) When actively being loaded with snow, contract snow haulers shall perform functions under the direction of the snow blower operator loading the truck. g) Snow haulers, when actively engaged in hauling snow whether full or empty, may stop at red traffic signals and proceed with caution if there is no oncoming traffic. When moving from one work site to another, such as from downtown to the Civic Arena, operators shall comply with all Minnesota Traffic Statutes. h) When actively engaged in removing snow while crossing Main Street, contract snow haulers may engage in blocking other traffic to allow the snow blower and other trucks to cross Main Street safely. i) Any action determined to be necessary by the operator to avoid an accident or to mitigate damage or injury that may result. Contractors are covered by this Minnesota State statute and City of Hutchinson policy only when actively engaged in work for the City of Hutchinson. Appendix C City of Hutchinson Public Works Department Mailboxes St-m-ral Installation of mailboxes on City -owned rights -of -way is permitted. The mailbox owner assumes all risk of damage, except when a mailbox is damaged by direct contact with City -owned equipment. Coming in to contact with a mailbox is a common obstacle that operators face while performing their tasks. If mailboxes are damaged, the City may install a temporary replacement until weather conditions are conducive to repair. Mail delivery City operators make every effort to perform tasks as close to the curb line as possible to provide access to mailboxes. It is not always possible to provide the necessary clearance, considering the size and types of equipment used. Final cleaning adjacent to mailboxes is the responsibility of the property owner. Damage to mailboxes Mailboxes damaged by direct contact from City equipment will be considered for compensation at City expense. The City conducts a review of each mailbox incident to determine responsibility for repair. Damage to mailboxes from materials, such as snow and ice, etc. that are discharged onto the right-of-way will not be considered for compensation. Mailbox repair For mailboxes damaged by direct contact from City equipment, property owners may make repairs and provide an itemized statement of the costs of the repair. The City will reimburse the property owner for those expenses up to the maximum amount established by the City Council in the City's most recent Fee Schedule. If the property owner wants the City to repair the mailbox, property owners may select from one of three standard options. The City will not provide mailboxes other than these three options: 1) Standard pipe swing -away; 2) 4x4 treated wood post; 3) Plastic, post -mounted (see attached sheet). In any case, property owners are responsible for mounting newspaper boxes adjacent to, not under, the mailbox. I I I I I 42"-48" Typical 48" Recommended Standard galvanized, flanged channel sign post & pipe mailbox support Standard 4" x 4" treated wood post mailbox support Standard plastic slip- over post mailbox support Fasten newspaper box to filler board on the side of the mailbox. DO NOT mount newspaper box below mailbox. Appendix D City of Hutchinson Public Works Department Planning Checklist PRE -SEASON • Seek out and arrange for training opportunities for operators • Repair, prepare and transition equipment for snow season • Review routes, update routes in tracking software • Assign operators to routes • Assign equipment to routes • Preseason review of activities to address new infrastructure or development • Review materials to be used for snow removal/ice control • Review and execute intergovernmental snow removal/ice control agreements • Contracts for snow removal/ice control services (e.g., snow hauling) • Review equipment rates for snow removal on MnDOT streets • Snow removal/ice control meeting with operators • Provide for public awareness of smart salting practices • Review and advertise snow -related ordinances, snow emergencies, etc. OPERATIONS • Monitor weather • Communicate snow removal plans with leadership • Review and address site -specific practices to enhance safety or improve service • Identify and establish criteria for regular snow removal at small stockpile sites • Coordinate intersection cleaning with utilities (electric, phone, cable...} • Update and address recurring, post -event cleanup schedules • Public outreach, school events, community events... • Reporting incidents that are or may become a claim against the City • Property damage claims (sod, mailboxes, etc.) • Enforcement communications with property owners • Sand -salt use reporting and billing • Emergency management recordkeeping • Monthly reporting to City Council • Establish additional snow storage sites, as necessary POST -SEASON • Identify and perform needed equipment repairs • Repair property damages (sod, mailboxes, etc.) • Clean up snow storage sites • Reconcile shared use of equipment with MnQOT & McLeod County • Reconcile shared use of materials with MnDOT & McLeod County Planning Checklist (cont.) Service levels: MnDOT & priority County routes Bare pavement Remaining County & some City priority routes Bare wheel paths Remaining City priority routes Plowed and treated Remaining City routes Plowed to snowpack WINTER PAVEMENT CONDITION DEFINITIONS Bare Pavement ioll' I f _ i t � Plowed and Treated Bare Wheel Paths Plowed to Snowpack 'Final winter pavement conditions are defined by each agency based on their own service goals, budgets, and policies. cR HUTCHINSON CITY COUNCIL I � :114I14sick Request for Board Action A CITY ON PURPOSE. AUTHORIZATION FOR INTERFUND LOAN IN CONNECTION WITH TAX Agenda Item: INCREMENT FINANCING DISTRICT 4-23 Department: EDA LICENSE SECTION Meeting Date: 12/12/2023 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: None Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: When the City establishes a new tax increment financing (TIF) district there are assorted costs incurred for legal and financial consulting related to setting up the new TIF district. These are covered by a combination of a TIF Application Fee paid to the City by the developer and/or tax increment generated by the new TIF District. Because there is typically a 1-2 year lag time before the new district starts generating tax increment, it is sometimes necessary to borrow internally to pay the various TIF consultants for their work. This inter -fund loan is for an amount not to exceed $25,000 and will be borrowed from the Economic Development Loan Fund at an interest rate of 4%. As tax increment from TIF District 4-23 comes in, the loan will be repaid. If you have any questions or need additional information, please give me a call anytime at 234-47223. BOARD ACTION REQUESTED: Authorization for the inter -fund loan. Fiscal Impact: Funding Source: FTE Impact: Budget Change: 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 Council member adoption: CITY OF HUTCHINSON MCLEOD COUNTY STATE OF MINNESOTA introduced the following resolution and moved its RESOLUTION NO. 15667 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO.4-23. BE IT RESOLVED by the City Council (the "Council") of the City of Hutchinson, Minnesota (the "City"), as follows: Section 1. Background. 1.01. The City has approved the establishment of Tax Increment Financing District No. 4-23 (the "TIF District") within Development District No. 4 (the "Project Area"), and has adopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project. 1.02. The City has determined to pay for certain costs in the Project Area and identified in the TIF Plans (collectively, the "Qualified Costs"), which costs may have been financed on a temporary basis from City funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. 1.04. The City intends to reimburse itself for the Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. 2.01. The City hereby authorizes the advance of up to $25,000 from the Economic Development Loan fund or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself for such advances from Available Tax Increment (defined below) together with interest at the rate of 4%, which does not exceed the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan is authorized. Interest accrues on the principal amount from the date of each tranche. 2.02. Principal and interest ("Payments") on the outstanding Interfund Loan balance shall be paid annually as of December 31 of each year (the "Payment Date"), commencing on the first Payment Date on which the City has Available Tax Increment (defined below), or on any other dates determined by the City Administrator, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the City Administrator, generated in the preceding twelve (12) months with respect to the property within the TIF District and remitted to the City by McLeod County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1799, all inclusive, as amended. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre -payable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the City in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The City may modify or amend the terms of this Interfund Loan at any time by resolution of the City Council, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. The motion for the adoption of the foregoing resolution was duly seconded by Council member , and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: December 12, 2023 ATTEST: Gary Forcier, Mayor Matthew Jaunich, City Administrator (Seal) - HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. RESOLUTION NO. 15668 SUPPORT FOR GREATER MINNESOTA Agenda Item: TRANSPORTATION ALTERNATIVES GRANT Department: PRCE/Public Works LICENSE SECTION Meeting Date: 12/12/2023 Application Complete N/A Contact: Lynn Neumann/Mike Stifter Agenda Item Type: Presenter: n/a Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The Resource Allocation Committee, Public Works and PRCE staff have identified a potential need for a trail section off of 8th Avenue to the School Campus trail system. This trail would finalize the trail system around the school campus and help with the Safe Routes to School. This is a joint project between the City of Hutchinson and Hutchinson Public Schools. A portion of the project will be on city property while the other portion of the project will be on the school campus. Local monetary contribution for this grant will be shared between the City of Hutchinson and Hutchinson Public Schools. The Greater Minnesota Transportation Alternatives announced grant money availability this fall for eligible projects for 2028 funding. Staff have reviewed the 8th Avenue Trail Expansion Project and feel this particular project would be a good candidate for eligibility. Funding for this grant is for year 2028. As part of the grant application a Resolution of Support is required. 2023/2024 Full Grant Applications are due Friday, January 12, 2024. BOARD ACTION REQUESTED: Approve Resolution No. 15668 for Support for the Greater Minnesota Transportation Alternatives Grant Application. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 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 RESOLUTION NO. 15668 GREATER MINNESOTA TRANSPORTATION ALTERNATIVES GRANT SUPPORT FOR GRANT APPLICATION WHEREAS, the City of Hutchinson is committed to the development and maintenance of a comprehensive trail system that contributes to the well-being of our community; and WHEREAS, the Greater Minnesota Transportation Alternatives Grant presents a valuable opportunity to secure funding for the improvement and expansion of our city's trail network; and WHEREAS, the City of Hutchinson has thoroughly reviewed the requirements and objectives of the Greater Minnesota Transportation Alternatives Grant and is committed to fulfilling the necessary obligations to ensure the successful implementation of the 81h Avenue Trail Project; and WHEREAS, the City of Hutchinson, Minnesota is making an application for funding under the 2023/24 Greater Minnesota Transportation Alternatives grant in the amount of up to $200,000.00 for funding in year 2028; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF HUTCHINSON, MINNESOTA: The City of Hutchinson agrees to act as a sponsoring agency for the project identified as 8t' Avenue Trail Project seeking up to $200,000.00 and has reviewed and approved the project as proposed. Sponsorship includes a willingness to secure and guarantee the local share of costs associated with this project and responsibility for seeing this project through to its completion, with compliance of all applicable laws, rules and regulations. Mike Stifter and Lynn Neumann ate hereby authorized to act as agent on behalf of this sponsoring agency. The City of Hutchinson and Hutchinson Public Schools take full responsibility for the operations and maintenance of the 8th Avenue Trail Project related to the aforementioned transportation alternatives project. City of Hutchinson will be responsible for the portion on city property and Hutchinson Public Schools will be responsible for the trail sections on the school campus. Resolution No. 15668 is hereby approved and adopted this 12th day of December, 2023 Gary Forcier, Mayor Matthew Jaunich, City Administrator cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Approve/Deny Financial Management Plan Modifications Agenda Item: Department: Finance LICENSE SECTION Meeting Date: 12/12/2023 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Andy Reid Reviewed by Staff M Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The Financial Management Plan was originally approved by city council in May 2018. Since that time, certain areas of the policy require modification due to changes with state statute, city procedures or simply to better clarify certain policy language. All modifications or deletions are highlighted in red font for your review. The policy changes I'd like to highlight include the following: 1. Fund Balance - the prior policy was to maintain a fund balance of at least 40%. This has been modified to maintain the 40% for working capital and another 10% (50% total) for public emergencies and tax levy stabilization efforts, as may be approved by city council. Over 50% is available for use at council's discretion. 2. Debt Management Plan - I found it easier to scrap the old policy entirely and re -write a new policy. I've also included a new Post -Issuance Tax Compliance Procedures for Tax -Exempt Bonds directly behind the Debt Plan. This is a Policy that our bond advisors, bond attorneys and bond rating agency have all recommended. It simply provides actions the city will take to ensure that the tax-exempt status on our debt is not determined to be taxable by the IRS, thereby affecting the tax liability of investors holding our debt. Most of the actions are assigned to the City's Finance Director. 3. Purchasing Policy - the threshold for a competitive bid process was increased by the State to $175,000. 4. Travel & Meals Expense Reimbursement Policy - due to inflation and rising costs, the policy has been updated with increased meal reimbursement amounts for employees while traveling for City business. Breakfast $20, Lunch $25 and Dinner $35. These are the maximum amounts, including sales tax and gratuity. BOARD ACTION REQUESTED: Approve/Deny the Financial Management Plan as presented with changes. 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 FINANCIAL MANAGEMENT PLAN u HUTCHINSON A CITY ON PURPOSE. DRAFT December 12, 2023 Table of Contents Page No. 3............... Purpose 4............... Cash and Investments 8...............Cash Controls & Procedures 11.............. Revenue Policy 13..............Operating Budget 16..............Fund Balance / Reserve Policy 21..............Capital Improvement Plan 23..............Debt Management 31..............Post-Debt Issuance Tax Compliance Procedures 38..............Purchasing Policy 44..............Procurement Card Policy 49..............Travel & Meal Reimbursement Policy 54..............Fiscal Agent Policy 55..............Exhibit A — List of City funds 56..............Exhibit B — Expense Reimbursement form 57..............Exhibit C — Projected Debt Tax Levy PURPOSE The City of Hutchinson (City) has a responsibility to provide quality services to its residents and considers it important to do so in a fiscally responsible fashion designed to keep services and taxes as consistent as possible over time. This Financial Management Plan (Plan) is designed to serve as the framework upon which consistent operations may be built and sustained, which guides responsible use of municipal resources and contributes to the City's overall financial health. This Plan serves three main purposes- 1 . It draws together the City's major financial policies into a single document. 2. The plan establishes principles to guide both staff and City Council members to make consistent and informed financial decisions. 3. The plan provides guidelines for ensuring and maintaining an appropriate level of funds, unreserved and reserved, to sustain the financial integrity of the City. The objectives of this Plan are: ➢ To provide both short term and long term future financial stability by ensuring adequate funding for the provision of services needed by the community, ➢ To protect the City Council's policy -making ability by ensuring that important policy decisions are not controlled by financial problems or emergencies, ➢ Prevent financial difficulties in the future, ➢ To provide sound principles to guide the decisions of the City Council and Administration; ➢ To employ revenue policies which prevent undue or unbalanced reliance on certain revenues, distribute the cost of municipal services fairly, and provide funding to operate desired programs; ➢ To provide essential public facilities and prevent deterioration of the City's public facilities and infrastructure, ➢ To protect and enhance the City's credit rating and prevent default on any municipal debt, ➢ To create a document that City staff and City Council Members can reference during financial planning, budget preparation and other financial management issues. ➢ The financial management plan will be reviewed annually during the city's budgeting process. CASH AND INVESTMENTS PURPOSE The purpose of this policy is to establish specific guidelines the City of Hutchinson will use in the investment of City funds. It will be the responsibility of the City Administrator, or his designee, to invest City Funds in order to attain the highest market rate of return with the maximum security while meeting the daily cash flow demands of the City and protecting the capital of the overall portfolio. Investments will be made in accordance with all state and local statutes governing the investment of public funds. SCOPE The City Administrator, or his designee, is responsible for the investing of all financial assets of the City of Hutchinson, excluding pension funds. These funds are accounted for in the City's Comprehensive Annual Financial Report and include the following: ➢ General Fund ➢ Special Revenue Funds ➢ Debt Service Funds ➢ Capital Project Funds ➢ Enterprise Funds ➢ Internal Service Funds ➢ Economic Development Authority PRUDENCE Investments shall be made with judgment and care, not for speculation, but for investment, considering the probable safety of the capital as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing the overall portfolio. Investment officers acting in accordance with this policy, with MN Statutes, Chapter 118A, and exercising due diligences shall be relieved of personal responsibility for an individual security's risk or market price change, provided that reasonable action is taken to control adverse developments and unexpected deviations are reported in a timely manner. OBJECTIVE 1) Safety — Safety of principal is of critical importance to the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of principal in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. a. Credit Risk — the risk of loss due to failure of the security issuer or backer, will be minimized by - Pre -qualifying the financial institutions, brokers/dealers, intermediaries, and advisors with which the City will do business in accordance with this policy under Authorized Financial Dealers and Institutions. ii. Limiting investments to the types of securities listed in this policy under Authorized and Suitable Investments. iii. Diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized. Insurance or collateral may be required to ensure return of principal. b. Interest Rate Risk — the risk that the market value of securities in the portfolio will fall due to changes in market interest rates will be minimized to: i. Provide for liquidity by reviewing cash flow requirements and making investments to meet the shorter cash flow needs, thereby avoiding the need to sell securities in the open market prior to maturity. ii. Manage the annual maturity of the overall portfolio to be consistent with the risk of the City. 2) Liquidity — The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements reasonably anticipated. The portfolio will be structured to emphasize liquidity and consist largely of securities with active secondary or resale markets (dynamic liquidity). A portion of the portfolio may be placed in money market mutual funds or local government investment pools that offer same day liquidity for short-term funds. 3) Yield — The City's investment portfolio shall be designed with the objective of attaining a market rate of return. The core of investments is limited to low -risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall generally be held until maturity with the following exceptions: a. A security with declining credit may be sold early to minimize loss of principal. b. A security swap would improve the quality, yield, or target duration in the portfolio. c. Liquidity needs of the portfolio require that the security be sold. DELEGATION OF AUTHORITY Authority to manage the City's investment program is derived from MS 118A which authorizes the City to invest any funds not presently needed for other purposes. This law applies to all types of funds not presently needed, including all general, special revenue, permanent, trust or other funds regardless of source or purpose. Under this chapter, a city may invest idle funds in state or national banks, savings and loan associations, or credit unions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the policy. Management responsibility for the investment program is hereby delegated to the City Administrator, or his designee, who shall be responsible for all transactions. The City Administrator, or his designee, shall establish procedures for the operation of the investment program, consistent with this policy. Such procedures may include delegation of authority to persons responsible for investment transactions. ETHICS AND CONFLICTS OF INTEREST The City Administrator and Finance staff involved in the investment process shall refrain from conducting personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Investment staff shall annually disclose to the City Council any material financial interests as required by state statute. Investment staff shall subordinate their personal investment transactions to those of the City, particularly with regard to the time of purchases and sales, and shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City Council will annually approve by resolution the depositories and a list of financial institutions authorized to provide investment services. 1) Only approved security broker/dealers, selected by creditworthiness, shall be utilized, with a minimum of $10,000,000 capital and at least five years of operation. 2) Financial institutions must be qualified as a "depository" by the City Council; these may include "primary" dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule). 3) All investments must be insured or registered, or securities must be held by the City or its agent in the City's name. 4) No public deposit shall be made except in a qualified public depository, as established by state laws. 5) When investments purchased by the City are held in safekeeping by a broker/dealer, they must provide asset protection of $500,000 through Securities Investor Protection Corporations (SIPC), and at least another $2,000,000 Supplemental Insurance Protection, provided by the broker dealer. 6) Before engaging in investment transactions with the City, the supervising officer at the securities broker/dealer shall submit a certification of "Notification to Broker and Certification by Broker Pursuant to MN Statute 118X. Said certification will state that the broker/dealer has reviewed the investment policies and objectives, as well as applicable state law, and agrees to disclose potential conflicts or risk to public funds that might arise out of business transactions between the securities broker/dealer firm and the City. All financial institutions shall agree to undertake reasonable efforts to preclude imprudent transactions involving the City's funds. AUTHORIZED AND SUITABLE INVESTMENTS It shall be the policy of the City that available funds be invested to the best rates obtainable at the time of investment in conformance with the legal and administrative guideline outlined herein. US Treasury Obligations and Federal Agency Securities will be given preference when the yields are equal to or greater than alternative investments. The investments of the City will be made in accordance with Minnesota Statutes, section 118A, which lists all permissible investments for municipalities. COLLATERAL Interest -bearing deposits in authorized depositories must be fully insured or collateralized. Collateral ization will be required on Certificates of Deposits (where the dollar amount is in excess of FDIC coverage). In order to anticipate market changes and provide a level of security for all funds, the collateral ization level will be 110% of the market value of principal and accrued interest. When the pledged collateral consists of notes secured by first mortgages, the collateral level will be 140% of the market value of principal and accrued interest. Collateral shall be deposited in the name of the City, subject to release by the City Administrator. SAFEKEEPING AND CUSTODY Securities purchased shall be held by a third party trustee as a safekeeping agent and in a segregated account for the City's benefit. The investment dealer or bank in which the security is purchased shall issue a confirmation ticket to the City listing the specific instrument, issuer, coupon, maturity, CUSIP number, purchase or sale price, transaction date, and other pertinent information. The financial service provider that executes the transaction on the City's behalf shall deliver all securities on a delivery versus payment method (DVP) to the designated third party. Delivery versus payment (DVP) is a way of controlling the risk to which securities market participants are exposed. Delivery of securities (i.e. the change in their ownership) is done simultaneously with payment. This means that neither the buyer nor the seller is exposed to the risk that the other will default. The City may not invest in securities that are uninsured. Securities will be held in the City's designated accounts. Investments, contracts and agreements may be held in safekeeping with: ➢ Any Federal Reserve bank; ➢ Any bank authorized under the laws of the United States or any state to exercise corporate trust powers, including, but not limited to, the bank from which the investment is purchased. DIVERSIFICATION The City Administrator or investment designee will attempt to diversify its investments according to type and maturity. The City will attempt to match its investments with anticipated cash flow requirements. Extended maturities may be utilized to take advantage of higher yields. Diversifications strategies shall be determined and revised periodically by the City Council for all funds. 1) Institutions — Diversity between financial institutions used. a. The City Administrator or investment designee will attempt to diversify its investments equally amongst investment companies, keeping in mind that some temporary fluctuations may occur throughout the year (i.e. tax settlement in June, GO Bonds for projects, etc.). b. No funds may be invested in any single investment company in excess of the amount insured by it. 2) Maturities — Diversity in length of maturities a. Investments shall be made to assure that funds are constantly available to meet immediate payment requirements. b. No investments shall be made with a term of more than 10 years. 3) Investments — The City should maintain a diversity of investments. a. Depending on market conditions, with the exception of US Treasury Securities, authorized pools, and Federal Agencies (backed by the full faith and credit of the US Government or its agencies), no more than 50% of the City's total investment portfolio may be invested in any one of the following: Certificates of Deposit or Commercial Paper. POOLING OF INVESTMENTS The City shall pool excess cash from all funds into one investment account in order to maximize the amount of monies available for investment. Monthly investment earnings shall be allocated among the various funds based on monthly cash balances. PRIOR POLICY The policy above supersedes the prior city policy #1.14. Cash Controls & Procedures Policy PURPOSE: To provide reasonable controls for the handling and safeguarding of monies received in the course of operations at various City facilities, and to protect City assets and minimize the potential for theft, fraud and discrepancies in cash transaction records. The purpose of this policy is also to protect City employees from inappropriate charges of mishandling of funds by defining his/her responsibilities in the cash handling process. Cash Systems and Records All cash received in the course of operations, including concessions sales, to the extent possible, must be entered into the City's point -of -sale (POS) system. Each transaction type will have a preset code within the POS system with predetermined prices set per City approved pricing amounts. Separate cash drawers shall be maintained at each point -of -sale location and shall be integrated with the POS system for formal accounting of each transaction. All employees authorized to receive cash shall have a separate user ID and password to gain access to the POS system. Employees shall not share POS access information with others. Daily reports will be generated from the POS system and forwarded to Finance on a weekly basis along with the daily cash proofs for each cash drawer and the daily bank deposit proof. Finance will reconcile submitted documentation to the bank records. Safeguarding of Cash The facility will have a cash safe with either a combination or key lock. Access to the safe shall be restricted to City approved managers. The combination or key shall be changed periodically due to turnover of authorized personnel or if theft occurs. The cash safe shall be located within a secure room or office with access limited to authorized personnel. Ideally, the office shall have computerized records of access based on an employee access card. Transporting and counting of monies within the facility must always be done by two authorized employees and never by only one employee. Cash and deposit counts must always be performed within the secure office and documented by each of the two employees. Signatures by each employee on a daily cash log represents approval of the cash count and bank deposit. Discrepancies between the cash counts and the actual bank deposit shall be directly addressed to the two employees evidenced on the cash log and the manager of the facility, or their designees. At no time shall cash be left unattended in an open or unsecure location. Employees may be subject to disciplinary action or termination due to cash discrepancies or theft. Daily Cash Handling Process 1) Cash Drawer start-up cash a. Each morning prior to opening for business, the facility manager, or the designee, shall prepare each cash drawer with the pre -approved amount of cash and coin. b. Cash drawers shall remain in the secure location until the start of business. c. Each employee working a cash drawer shall recount the start-up cash and sign off on the daily cash log sheet. d. The manager on duty shall walk each employee to the appropriate cash register and verify that the cash drawer is placed in service and that the employee logs into the POS system. i. Cash drawers shall never be transported by only one employee. 2) Cash Transactions a. All cash and credit transactions must be entered through the POS system. i. Acceptance of personal checks will be prohibited at certain facilities. Those facilities shall have a sign posted informing customers of this policy. b. A receipt shall be offered to the customer after every transaction. c. Only the approved managers shall have system authority to process refunds, returns, voids or over -rings. 3) Cash Drawer Count and Reconciliation a. At the end of each employee's shift, the manager on duty shall verify that the employee logs off the POS system. b. The manager shall remove the cash drawer and walk with the employee to the secure office. c. The cash drawer shall be counted immediately by the employee in the direct presence of the manager and documented on the daily cash log. i. The cash count shall be compared to a cash register report from the POS system and any discrepancy shall be noted. d. The manager shall recount the cash drawer and evidence the cash count on the daily cash log. i. Any discrepancies in count between the employee and manager shall be reconciled prior to finalizing the daily cash log. ii. If employee and manager are in agreement, both parties sign the daily cash log and the monies and log sheet are placed in the safe by the manager prior to the employee leaving the secure room. 4) Bank Deposit Preparation a. The shift manager, in the presence of the facility manager, or the designee, shall prepare a total daily bank deposit based on the daily cash logs of each cash drawer. i. The facility manager, or the designee, verifies that each cash log sheet is properly approved by employee and shift manager. ii. The facility manager, or the designee, recounts the cash and verifies that the total deposit amount is in agreement with the totals of each daily cash log. b. Start-up cash for the following day's cash drawers are deducted from the daily deposit. i. The start-up cash is placed in a bank bag and stored in the safe for the subsequent day cash drawers. c. The shift manager and facility manager, or their designees, sign the deposit slip, make a copy for Finance Department, and place the monies and deposit slip in the bank deposit bag. i. The deposit bag is placed in the safe, witnessed by both employees. 5) Transporting Daily Deposit to the Bank a. For deposits made at night, an on -duty police officer shall be called to the facility to transport the shift manager, or the designee, and deposit bag to the bank. The deposit bag shall be removed from the safe with the police officer present as witness. If the police are unavailable, two authorized employees shall deliver the deposit to the bank. b. For deposits made during the day, it is preferable to have two employees deliver the deposit to the bank. 6) Daily Reports to Finance a. The facility manager, or the designee, shall be responsible for forwarding the following information to the Finance Department: i. Approved Daily Cash Logs ii. Daily POS system report with subtotals by cash register 1. POS reports shall be only for the operations of one specific department. iii. Copy of the approved Daily Bank Deposit slip The facility's deposit shall be made separately from any other related departmental operations (i.e.- Aquatic Center deposits shall be separate from Recreation deposits) iv. Any other reports as may be determined from time to time. b. Finance shall reconcile facility reports to the bank statement. Other Cash Controls 1) Currency larger than a twenty -dollar bill ($20) shall be inspected for any signs of being counterfeit. 2) Only cash or credit cards will be accepted at certain facilities. 3) Credit cards will be processed at the point -of -sale and must not leave the customer's sight. In no instance will credit card information be written down by City staff or retained in any fashion. 4) A receipt is required to be given to the customer for every transaction. Cash Operations without a POS System Some City operations may be conducted in a location where it is not feasible to have a POS system to account for cash transactions, such as the Roberts Park concession building and offsite events for the liquor store. This policy is still applicable in those instances with the exception of reconciling the receipts to a POS system report. Daily cash count sheets must still be maintained and approved, and deposits shall be made on the next business day. If possible, two employees shall be present when counting the cash and creating the deposit slip. Policy Compliance All employees of the City of Hutchinson, primarily Liquor Hutch and the Aquatic Center, who are responsible for cash transactions shall be subject to the procedures within this document. The Finance department acknowledges that certain aspects of this policy may not be practical for all situations. A deviation from policy may be approved if it is determined that that such deviation does not present a material risk of mishandling or misreporting cash activity. Any deviation from this policy must be approved by the Finance Director. The City's Finance department shall reserve the right to create an internal audit process and to perform audits as determined necessary. REVENUE POLICY PURPOSE The City of Hutchinson is committed to maintaining a revenue system that meets the City's immediate and long-term service delivery needs, protects the City's creditworthiness, and follows best practices for administration and collection. REVENUE STRUCTURE AND SOURCES The City will strive to maintain a stable and diverse revenue system to reduce the effects of short- term fluctuations in any one revenue source. Services having a city-wide benefit shall be financed with revenue sources generated from a broad base, such as property taxes, state aids and transfers from enterprise funds. Services where the customer determines the use shall be financed with user fees, charges and assessments related to the level of service provided. 1) Property Taxes Property tax payments are the largest source of revenue in the City's General fund, accounting for approximately 40% of the total annual revenue. The City will strive to proactively avoid large increases in property taxes and will explore other alternatives, including: ➢ Other policy options (debt management, fees & charges, cost allocation, expenditure cuts and use of reserves). ➢ Budget scenarios for a 0% tax levy, including potential reductions in service levels. ➢ Consideration will be given to staying within the amount of revenue generated by increased market value with no increase in the City's tax rate. If after exhausting these alternatives, a tax increase is required, the goal of the City will be to keep any property tax rate increase at or below the prevailing inflation rate. City services will be funded to the maximum extent possible by the increases in market valuation (i.e.; new tax base growth and valuation increases). Possible factors for considering an increase in property tax include: ➢ Long-term protection of the City's infrastructure. ➢ Meeting legal mandates imposed by outside agencies. ➢ Maintaining adequate fund balance and reserve funds sufficient to the City's Fund Balance Policy. ➢ Funding City development and redevelopment projects that will clearly result in future tax base increases. The expenditures of development and redevelopment funds must be in accordance with a defined strategy as shown in the City's comprehensive plan, capital improvement plan, and other council documents. Property tax increases to meet other purposes will be based on the following criteria: ➢ A clear expression of community need. ➢ The existence of community partnerships willing to share resources. ➢ Establishment of clearly defined objectives and measurements of success, including appropriate sunset provisions. ➢ Voter approved referendums for specific community needs/projects. 2) Fees and Charges The City will establish fees and charges for services when the cost of services can be allocated equitably among service users. a. General Fund Tax dollars should support essential City services that benefit and are available to everyone in the community (such as parks, police and fire protection). For services that largely or solely benefit individuals, the City should recover full or partial costs of service delivery through user fees. The user fees must not exceed the full cost of providing the service. b. Enterprise Fund User Fees Customer or user fees for services/products provided by an enterprise fund shall be determined at a level that fully covers the total direct and indirect costs, including operating expenses, capital expenditures and debt service. The fees shall also provide for a positive cash flow and adequate working capital. c. Fee Schedule The City's fee schedule shall document all fees charged, or assessed, for services provided to users or customers. Departments shall review existing fees as part of the annual budgeting process to ensure that fees keep pace with changes in the service delivery costs as well as changes in methods or levels of service delivery. Fees for new services shall also be determined in a manner that equitably charges the user for the service provided. Administration and Finance shall compile a preliminary fee schedule and present to city council for review by October 31 of each year with final approval of the schedule -+akin" ^'a^^ by December 31 of each year. Prices for products sold at the Liquor Hutch and Creekside are exempt from the fee schedule due to the dynamic nature of pricing in a competitive market. REVENUE ESTIMATES The City will conservatively estimate and budget for its annual revenues using an objective, analytical process. All existing and potential revenue sources will be re-examined annually. NON -RECURRING REVENUES Revenue sources that are non -recurring in nature shall not be used to fund ongoing programs or operations of the City. This includes revenue such as sales of assets, settlement from a lawsuit, inter -fund transfers and other one-time payments. These revenue items should be used to build reserves or for projects that will result in long-term operating cost savings. Non -recurring revenue may also include grants and donations. These revenue sources should be dedicated to the use designated by the grantor or donor. The annual budget shall be prepared in a manner that eliminates, or minimizes, reliance on unpredictable or non -recurring revenues for on -going operating costs. OPERATING BUDGET PURPOSE: The objective of the operating budget policy is to ensure that sufficient information is available to decision makers to provide fer adequate levels of funding for essential City services at reasonable costs. Budgeting is an essential element of the financial planning, control and evaluation process of municipal government. The "operating budget" is the City's annual financial operating plan. The annual budget includes all operating departments of the general fund, other governmental funds and proprietary funds. The budget will provide for adequate maintenance of city facilities and equipment and for their orderly replacement. The following funds are included within the City's annual budget GOVERNMENTAL FUNDS: 1) General Fund, which accounts for all financial resources except those required to be accounted for in another fund, and include basic governmental services, such as Police, Fire, Parks and Recreation, Streets and Highways, Building Inspections, Cemetery, Airport and Administrative services. 2) Special Revenue Funds, which account for revenues that are legally restricted or committed to a specific purpose other than debt service and capital projects. The City currently budgets for the Rural Fire and H.A.T.S. Facility funds. (See exhibit A) 3) Debt Service Funds, which are used to account for the payment of principal and interest on the City's general obligation bond issues pFiRGipal and interest.. The payments are funded by #Gm the City's debt tax levy and special assessment repayments bend pFiRGipal and fri,m 6Ponial _A66o9-GmEmAt I894489 4) Capital Projects Funds, which are used to account for the acquisition of vehicles and equipment, er and the construction of major capital projects other than those financed by proprietary fund activities. PROPRIETARY FUNDS: Proprietary funds will be self-supporting and user rates or fees will be reviewed annually and adjusted if necessary to ensure adequate funding of operating and capital expenditures. 1) Enterprise Funds, which include the City's "business -type" activities. The City budgets for the Liquor, Water, Wastewater, Storm Water, Compost and Refuse funds. 2) Internal Service Funds, which account for the financing of goods or services provided by one department to other departments of the City on a cost reimbursement basis. The City budgets for the Equi„meRt ReplaGemen+ and Self -Insurance funds. BASIS OF ACCOUNTING AND OF BUDGETING: The City accounts and budgets for all Governmental Funds using the modified accrual basis of accounting. This basis means that revenue is realized in the accounting period in which it becomes available and measurable, while the expenditures are recognized in the accounting period in which they are incurred. For revenue to be recorded within a given calendar year, it generally must be received within sixty (60) days after the year-end. Exceptions to the modified accrual basis include: • Grants, which are considered revenue when awarded, not received; and • Principal and interest on long-term debt, which are recognized when paid. The City's Proprietary Funds are accounted and budgeted using the full -accrual basis of accounting. Under this method, revenues are realized when they are earned and measurable, while expenses are recognized when they are incurred regardless of timing or related cash flows. The basis for preparing the budget is the same as the basis for accounting except for principal payments on long-term debt and capital outlay expense, which are treated as budgeted expenses. BALANCED BUDGET: The City Administrator shall submit a balanced General fund budget that provides for all current expenditures with current revenues, matching ongoing operating expenses with the appropriate source of ongoing revenues, except in emergency situations or in the event of unforeseen needs. The City will avoid budgetary procedures that balance current expenditures at the expense of meeting future years' budgets. Any inclusion of previous years' excess fund balance in the adopted budget will be intended for one- time or non -recurring expenses or projects. Fund balance may also be used as a short-term measure to stabilize the tax levy. The impact on the operating budget from any new programs or activities being proposed should be minimized by providing funding with newly created revenues �•�"�ar to the extent possible. BUDGETARY CONTROLS: The City Administrator will ensure that a budgetary control system is in place to adhere to the adopted budget and will provide monthly reports comparing actual revenues and expenditures to the budgeted amounts. The legal level of budgetary control is at the department level within a fund. 1) Departments shall not exceed the budget within the four main expense categories without City Administrator approval. Specific expense items within a category may be over budget as long as the category in total does not exceed the budget. The main expense categories are as follows: a. Wages & Benefits b. Supplies c. Services & Charges d. Miscellaneous 2) Surplus departmental revenue may not be used to justify overspending an expenditure without approval from the City Administrator. An expenditure may exceed the budget when the overage is caused by unbudgeted revenue from grants, insurance proceeds, donations or other one-time monies. 3) The City Administrator is authorized to approve a transfer of funds from one appropriation to another within the budget of any department of the City. Department means any city function organized under the direct control of a single department head within the same fund. Such approval shall be made by written memorandum setting forth the reasons therefore. 4) No officer or employee of the City shall place any order or make any purchase except for a purpose and to the amount authorized in the budget resolution, or as authorized by the City Administrator. CAPITAL IMPROVEMENT PLAN: The City Administrator will coordinate the development of the Capital Improvement Plan with the development of the operating budget. Costs associated with new capital improvements will be tr d estimated for each project and included in future budget forecasts. PUBLIC HEARING: The City's budgeting process allows for public input at various city council budget workshops as well as the annual Truth in Taxation public hearing typically held in early December of each year. FUND BALANCE Policv Overview: Fund Balance is defined as the difference between assets and liabilities reported in a governmental fund. It is essentially the accumulation of all prior years' net surpluses and/or deficits of revenues over expenditures. The City of Hutchinson (City) understands it has a responsibility to maintain prudent financial practices to ensure stable operations for the benefit of city residents and businesses. Fund balance reserves are an important component in ensuring the overall financial health of a community by giving the City cushion to meet contingency or cash flow timing needs. The office of the State Auditor recommends that at year-end, local governments maintain an unrestricted fund balance in the general fund and special revenue funds of approximately 35 to 50% of fund operating revenues, or no less than five months of operating expenditures. While the bond rating agencies do not have recommended fund balance levels, the agencies look favorably on larger fund balances, which protect against contingencies and cash flow needs. The purpose of this policy is to establish specific guidelines the City will use to classify fund balances into categories based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in these funds can be spent. Classification of Fund Balance: Annual financial statements shall be prepared in accordance with generally accepted accounting principles establishing fund balance at the end of each year into the following categories: 1) Non -spendable a. This category includes amounts that are not in a spendable form (i.e. prepaid expenses or supply inventories). Resources that must be maintained intact pursuant to legal or contractual requirements are also considered non -spendable. 2) Restricted a. Amounts subject to externally enforceable legal restrictions (creditors, grantors, contributors and by law through constitutional provisions or enabling regulations). 3) Unrestricted The total of committed fund balance, assigned fund balance and unassigned fund balance as described below: a. Committed i. Fund balance that can only be used for the specific purposes determined by the City Council. The committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action it employed to commit those amounts. ii. The City Council will annually, or as deemed necessary, commit specific revenue sources for specified purposes by resolution. This formal action must occur prior to the end of the reporting period, however, the amount to be subject to the constraint, may be determined in the subsequent period. iii. To remove the constraint on specified use of committed resources, the City Council shall pass a resolution. b. Assigned i. Amounts that are constrained by the government's intent to use for specified purposes, but are neither restricted nor committed. Assigned fund balance in the General fund includes amounts that are intended to be used for specific purposes. ii. The City Council has delegated the authority to assign and remove assignments of fund balance amounts for specific purposes to the City Administrator. 4) Unassigned a. Unassigned fund balance represents the residual classification for the General fund. This includes amounts that have not been assigned to other funds and have not been restricted, committed, or assigned to specific purposes within the General fund. The General fund should be the only fund that reports a positive unassigned fund balance amount. Governmental Funds: The City's governmental funds include the following fund types- 1) General Fund .02 assist in rnaiRtaiRiRg aR adequate level of fund halanre "revide- fhr r_ The City will commit 40% of the next year's General fund budgeted expenditures for working capital. This provides adequate cash flow to fund operations since major revenues, including property taxes and other government aid, are received on a biannual basis. The City will commit 10% of the next year's General fund budgeted expenditures to plan for contingencies and tax levy stabilization. Use of Reserves Use of the contingency or tax levy stabilization reserve requires city council approval and will be limited to non -recurring or temporary events. Use may include, but not be limited to: • Provide resources to make up for temporary decreases in revenues • Provide temporary resources in the event of an economic downturn while expenditure reductions are being implemented • Provide resources to meet emergency expenditures in the event of extreme weather, natural disasters or other public emergencies • Provide temporary funding until proceeds are received from insurance, FEMA or other potential reimbursement source, if applicable • Stabilize or soften the impact of tax levy increases Replenishment of Reserves A plan to replenish reserves will be formulated during the annual budget process and five- year strategic planning. Potential sources for replenishment include budgetary surpluses, retired bond funds, uncommitted one-time monies, other city funds, and tax levy increases. Excess Reserves The unassigned fund balance represents reserves in excess of the 50% commitment for working capital, contingencies and levy stabilization. These funds are available for use at the city council's discretion. City council and staff will review excess reserves on an annual basis to discuss potential uses for the funds. Emphasis will be placed on one-time uses that achieve future operating cost reductions. Consideration will also be given to limiting the use of reserves to levels that do not adversely affect the City's credit rating. Periodic Review of Reserve Targets The reserve target amounts will be reviewed by city council and staff on an annual basis during the budget process. 2) Special Revenue Funds a. Special Revenue funds are used to account for, and report, the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. Governmental accounting standards require that substantial inflows of revenues into a special revenue fund be either restricted or committed in order fer +� f,-U;a to be considered a special revenue fund. 3) Debt Service Funds a. Debt Service fund balances are considered restricted. They are resources that are being accumulated for payments of principal and interest maturing in the current and future years. b. The remaining fund balance will typically be transferred into the Community Improvement fund when all debt requirements have been met for a specific debt fund. A transfer into another debt fund may be warranted to avoid any unplanned, adverse impacts to the debt tax levy. 4) Capital Projects Funds a. Capital Project fund balances are considered either committed or assigned. They are resources that are used to account for the acquisition or construction of capital facilities, infrastructure and equipment, other than those financed by Enterprise funds or the EquipmeRt ReplaGernept fund. b. The majority of these funds should be assigned for the Capital Improvement Plan (CIP) or reserved for a specific project. c. Specific Capital Project funds may temporarily have a negative fund balance due to the timing of federal, state or other funding. d. Future capital projects must shall be identified and quantified, to the extent possible, within the City's five-year CIP, which shall be included in the City's annual budget document. e. The City has several capital projects funds, including: i. Capital Projects fund, Community Improvement fund, Equipment Replacement fund, Airport Construction fund, and the annual Capital Improvement Construction funds. • The Capital Projects fund accounts mainly for capital improvements related to General fund facilities and miscellaneous infrastructure maintenance. The main funding sources are LGA, excess HUC payments grants and donations. • The Community Improvement fund accounts for city enhancement and public arts projects as approved by the City Council. The main funding sources are retired bond funds, grants and donations. • The Equipment Replacement fund accounts for the acquisition and disposition of General fund vehicles and equipment. The main funding sources are transfers from the General fund and proceeds from the sale of vehicles/equipment. • The Capital Improvement Construction funds account for the annual roadway and infrastructure improvement projects. The main funding sources are federal and state aid, grants, enterprise fund contributions, other city funds, and bond proceeds. Excess fund balance when the projects are complete generally are transferred into the debt service fund but may also be used to fund deficits in other capital improvement construction funds. Enterprise Funds: 1) It is the goal of each enterprise fund to cover the costs of operations, including depreciation and a transfer to the General fund, to maintain a financially healthy enterprise. The City will maintain cash reserves in the Enterprise funds at a minimum level equal to 50% of the following year's annual operating secs expenses plus one year of debt service payments and transfers to the General fund (Target Cash Balance). a. The Liquor fund shall be exempt from this provision since the majority of profits are transferred to the General fund. 2) The Water, Wastewater and Storm Water funds may contribute capital improvement dollars to the annual Capital Improvement Construction fund as a reimbursement for infrastructure placed in service in conjunction with roadway and other improvement projects. Contributions shall not exceed the total cost of the specific infrastructure being capitalized within the enterprise fund. 3) Projects utilizing reserves shall be planned in advance and included within the 5-year Capital Plan, to the extent possible. The amount of reserve funds utilized will be limited to an amount that maintains a cash balance above the Target level and does not result in user rate increases solely due to the use of those reserves. 4) Utility rates will be reviewed annually regarding projected expenses and capital improvements. The City Council will annually establish rates in accordance to operating cost recovery and the projected capital improvements. Order of Fund Balance Spend -Down: 1) When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources, and then unrestricted, as they are needed. 2) When committed, assigned or unassigned resources are available for use, it is the City's policy to use resources in the following order; (1) Committed; (2) Assigned; and (3) Unassigned. 3) A negative residual amount may not be reported for restricted, committed, or assigned fund balances in the General fund. Monitoring and Reporting: The City Council shall review fund balance and cash -flow needs during the budget process in accordance with this policy. Annually, after the audited financial report has been completed, the City Council shall review fund balance results with the City Administrator, Finance Director and the City's independent auditor. CAPITAL IMPROVEMENT PLAN VISIONS AND GOALS i - _!e . - e _e� im�fflweie --e The City plans for capital improvements by preparing a five-year Capital Improvement Plan (CIP). The CIP serves as a valuable planning tool for the preservation and expansion of the City's capital assets, including facilities, infrastructure, amenities and equipment. It provides details of proposed improvements by department and year, along with the estimated cost and funding sources for the improvements. It is based upon several long-range planning documents that are updated regularly as identified by the Facilities Committee, Fleet Committee, Resource Allocation Committee, City staff and council members. The CIP identifies projects that will support existing and projected needs in the following areas: transportation, public safety, parks & recreation, general government and enterprise fund operations. The CIP establishes a development program to maximize outside revenue sources and effectively plan for the growth and maintenance of the City's infrastructure. POLICIES Criteria identified for inclusion of capital items in the CIP plan are as follows: 1) Capital Item must have a minimum cost of $10,000 2) Project must define the year proposed 3) Funding source should be identified 4) Detail should include annual operating costs or savings for proposed capital item 5) Department priority should be established 6) Must have a useful life of three years or greater The plan encompasses projects using the following priority levels: Priority 1: (Urgent) Projects currently underway or those that are considered essential to the departments of City operations, and should not be delayed beyond the year requested. Failure to fund these projects will seriously jeopardize City's ability to provide service to the residents and/or expose the City to a potential liability and negative legal exposure. Priority 2: (Very Important) Projects that are needed by a department or the City to improve or maintain their operations, and to delay would cause deterioration or further deterioration of their current operation and/or level of service to the residents of the City. These should not be delayed beyond the year req uested. Priority 3: (Important) Projects that are needed by a department or the City to improve or maintain their operations, and should be done as soon as funds can reasonably be made available. Priority 4: (Less Important) Projects, which are desirable, but needing further study. Priority 5: (Future Consideration) Projects which sometime in the future will need to be funded to maintain operations, safety or infrastructure desired within the community. CIP PROCESS 1) Finance distributes CIP forms and the prior year's data to departments for updating. 2) Departments add, remove and reprioritize CIP data from the prior year's report. 3) Finance updates the CIP database with recommendations made by the department directors and the Fleet, Facility and Resource Allocation committees. 4) Initial draft is reviewed with City Administrator and Department directors; corrections or adjustments are made. 5) Preliminary CIP plan is submitted to City council by August 1st 6) Final CIP plan is reviewed and adopted by City council by year-end. PROCESS CALENDAR April/May - Departments work on updating the CIP. Any new capital items should be requested at this time. The Facilities, Fleet and Resource Allocation Committees begin meeting to review and prioritize potential improvement projects submitted by Departments. June/July - Departments return updated CIP items. The Facilities, Fleet and Resource Allocation Committees submit a recommended five-year plan to the City Administrator. An initial CIP draft is reviewed with Department directors and corrections or adjustments are made. Current year CIP items are incorporated into the early stages of the budgeting process during this time frame. August 1st - Per Section 7.05 of the Hutchinson City Charter, the City Administrator shall submit to the council a recommended CIP Plan no later than August 1st of each year. October/November - Departments and Finance make final adjustments to the preliminary CIP. December 31st - Final CIP is adopted by City council prior to year-end. CAPITAL PROJECT APPROVAL The CIP is a planning document comprised of potential capital improvement projects known at a certain point in time. Projects are not approved simply by being included in the CIP as funding sources or City priorities may change. All capital projects are subject to the City's purchasing policy, requiring quotes/bids and approvals commensurate to the total cost. ilMMll ■ .. IN ■_ NO- low - I _ _ • _ r • _ • PFOOF i• Tax Levy Debt PGlmGy I I ■ _ \ I . DEBT MANAGEMENT PLAN The Finance Department of the City of Hutchinson has developed this Debt Management Policy to provide guidelines for the issuance of bonds and other forms of indebtedness to finance necessary land acquisitions, capital construction, equipment and other capital assets for the City. While the issuance of debt is an appropriate method of financing the acquisitions of capital projects and major equipment, such issuance must be carefully monitored to preserve the City's credit strength and to provide the necessary flexibility to fund future capital needs. The goal of the City's Debt Management Policy is to ensure a stabilized overall debt burden and future tax levy requirement, in addition to ensuring that issued debt can be repaid without weakening the City's financial condition. Adequate resources must be provided for the repayment of debt and the level of debt incurred by the City must be effectively managed to maintain or enhance the City's credit rating. Financing capital projects with debt in certain circumstances may be the most cost-effective means available to the City. City staff will analyze each potential capital improvement and make a recommendation to City Council to either use cash reserves or issue debt. The City's 5-year Capital Improvement Plan will be a valuable planning tool for the financing of future improvements. Purpose of Financing The City borrows money primarily to fund long-term capital improvement projects, essential equipment and vehicle needs and to refinance existing debt. The city will not issue long-term debt to finance current operations or to finance projects where the debt maturity exceeds the useful life of the improvement or asset. Debt will be used to finance eligible projects only if it is the most cost- effective means available to the City. Financing Options The City will strive to maintain a "pay -go" capital funding policy, supporting capital spending without the use of debt whenever feasible. The following options will be considered, in the order presented, when debt is determined to be the most appropriate means to finance a project. 1. Interfund Loan Interfund borrowing is preferable to external debt as the City is paying itself interest rather than to a third party. An interfund loan may be considered for circumstances in which all of the following conditions are met- a) The remaining cash reserve balance within the lending fund is adequate to meet cash flow needs and does not adversely affect operations or user rates. b) A repayment schedule will be prepared detailing the annual principal and interest payments due to the lending fund. c) The annual interest rate will equal the current prime lending rate or maximum amount allowable by State Statute. d) The repayment schedule will not exceed 15 years or the useful life of the improvement. e) The City Council approves the interfund loan and repayment plan via city resolution. 2. General Obligation Bonds The City may issue general obligation bonds to finance a variety of improvement projects. These bonds typically represent the lowest cost of debt to the city as they are tax-exempt and guaranteed by the City's taxing authority to repay the debt. For enterprise funds, revenue bonds may be issued using the fund's specific revenue source to repay the debt with the City's taxing authority pledged to repay the debt. a. The City will use an independent municipal advisor to assist with bond financing, including the structuring of the bond issues and selling of the bonds. b. The City will retain external bond counsel for all debt issues. No bonded debt will be issued by the City without a written opinion by bond counsel affirming that the City is authorized to issue the debt, stating that the City has met all state constitutional and statutory requirements, and determining the debt's federal income tax status. c. A fiscal agent will be utilized, to the extent necessary, for all bonded indebtedness to coordinate and distribute the City's debt service payments to the various bondholders. Fiscal agent fees for outstanding bonds will be paid from the respective debt funds as determined by the Finance Director. 3. Short-term External Financing The City may solicit financing from external lending institutions based on a competitive bid process. This is the least attractive financing option for the City and will be avoided to the extent possible. Borrowing Purposes The four primary borrowing purposes are summarized below: 1. Long -Term Capital Improvements The City may issue debt to finance improvements to roadways, infrastructure, and city facilities. 2. Essential Vehicle and Equipment Certain specialized vehicles and equipment may require the issuance of short-term debt. City staff will analyze cash reserves, other funding sources and short-term debt for each potential purchase. Assets potentially financed with short-term debt include fire trucks, jet - vac trucks, snowplow trucks, wheel loaders and any other specialized equipment as recommended by City staff. Debt issued for this purpose generally will be for a term of 5 to 10 years but not longer than the useful life of the equipment. 3. Refinancing/Refunding of Existing Debt The Finance Director shall periodically review the City's existing debt and recommend refinancing or early refunding when economically beneficial. Refinancing to take advantage of lower interest rates will generally be considered when it provides a present value net savings of at least 3%. 4. Other Allowable The Finance Director may pursue other borrowing mechanisms as allowed by Minnesota State Statutes (Section 475, etc.) and approved by the City Council. Debt Tax Levy The City annually issues General Obligation tax-exempt bonds ("bonds") in accordance with Minnesota Statutes 429 and 475. The annual debt service payments on the bonds are funded by the City's special property tax debt levy ("debt levy") and by special assessments repaid by property owners, if applicable. It is the intent of the city council to best manage the debt levy by using the following guidelines to finance improvement projects. 1. Roadway & Infrastructure Projects will generally be financed by special assessments and the debt levy, both of which are accounted for within the Debt Service fund. a. Special assessments repaid by property owners benefitting from the improvement: i. The debt associated with this component is generally repaid by property owners over a 10-year period, but it may be less depending on the cost of the improvement and associated assessments. ii. The annual repayment installments shall be on a straight-line basis with simple interest equal to the true interest rate on the debt issuance plus 1 % to cover the City's administrative costs involved in managing the special assessments. iii. The City debt levy generally is not impacted by special assessments unless significant assessments are delinquent or deferred indefinitely. iv. Certain improvement projects may result in a substantial assessment to a specific property with the property owner agreeing to prepay the entire assessment in the year of improvement. In this instance, the prepaid assessment may be eliminated from the debt issuance and used as a direct funding source in the Capital Improvement Construction fund. v. Bonding under Statute 429 limits the bond proceeds to the amount of special assessments divided by the minimum threshold of 20%. The bond proceeds must be sufficient to pay the improvement costs in addition to the costs to issue the bonds. In the case of insufficient assessments, the City must either bridge the financing deficit with other funds or pursue bonding under Statute 475. b. Project Costs not financed by other funds: i. This component is the remainder of projects costs after all other funding sources, including federal or state aid dollars, grants, enterprise fund contributions, other funds and special assessments. The debt associated with this component is repaid by the City's debt levy. ii. The City will manage this debt component with an average annual improvement cost limit of $1,900,000, which may be adjusted up or down by city council to account for changing interest rates and other factors. Increasing this limit to account for rising improvement costs will increase the City's overall debt levy. iii. The City will manage the aggregate of current and future roadway and infrastructure debt at a target debt levy of $2,600,000 per year. Once the target levy is reached it should be self-sustaining, with one debt issue expiring as a new debt issue is added. City council will periodically review the target and adjust as needed for increasing construction costs or other factors that may necessitate increased financing. 2. City Facility Improvements Debt may be required in order to finance major improvements for existing or new facilities. The debt associated with this component is repaid by the City's debt levy. Facility debt is above and beyond the debt limits established for roadway and infrastructure improvements. Facility debt levels will be analyzed and recommended by the City Administrator and Finance Director with final approval by the city council. 3. Debt Levy Target The goal of the city council is to have a steady debt levy and to minimize any large fluctuations in the levy, to the extent possible. The city council recognizes the following future, annual debt levy targets with this policy: Roadway & Infrastructure Debt $2,600,000 Facility Debt (new police facility) 500,000 Total Debt Levy Target $3,100,000 The debt levy is currently below the $3,100,000 target and will increase moderately each year until the target is reached in, or around, 2034. The facility debt will exceed the $500,000 target until 2034 due to front -loading the police facility debt to replace prior, existing debt that was retired early. 4. Managing the Debt Levy a. Future debt issuances will mature after 15 years. In the case of an exception to this guideline, the debt maturity shall always be shorter than the life of the financed improvement or asset. b. Each debt issue shall be structured such that the its required debt levy will be stable over the 15-year debt term. This will prevent fluctuations in the overall debt levy on a year-to-year basis. c. Any bond premium received will generally be used to reduce the par value, resulting in lower debt. City staff will review each year for any circumstances that may necessitate retaining the bond premium, or a portion thereof. d. Debt issuances will be in an amount to finance the estimated project costs and professional fees plus a reasonable construction contingency. The costs to issue debt will also be included in the total amount financed. e. The City will keep outstanding debt within the limits set by State Statutes. f. Retired debt service funds will be closed into the City's Community Improvement fund. This fund will be the primary funding source for any potential debt service shortfalls. g. City staff will periodically review the annual debt levy target and may make recommendations to City Council to increase the target to address rising construction costs, interest rates or other unforeseen factors. h. Future financing may need flexibility in structuring its debt. This policy shall not prevent the City from deviating from this policy as long as the City adheres to the overall intent of this policy. Conduit Debt The City is granted the power to issue tax-exempt conduit revenue bonds or other tax-exempt obligations for a non-profit organization, as defined within Minnesota State Statutes. Such debt shall encourage economic development, promote increased tax capacity (tax base) and provide no liability to the City for repayment of the debt. A. The City reserves the right to deny any application for financing at any stage of the proceedings prior to adopting the final resolution authorizing issuance of the financing. The City Council may waive any provision of this conduit debt policy if the council determines that such waiver is in the best interests of the City. B. The City Council will consider projects that are beneficial and appropriate for the City. C. The City will consider issuing conduit financing as long as it does not interfere with the annual bank qualification limit when the City issues its own bonds. D. All applications and supporting materials and documents shall remain the property of the City and may be subject to disclosure and/or public review under applicable provisions of State law. E. The City is to be reimbursed and held harmless for and from any out-of-pocket costs related to the actual or proposed issuance of conduit revenue bonds. A nonrefundable processing fee of $2,000 must be submitted with a written request for City financing assistance. F. The entity will be charged an administrative fee of 0.50% of the par value of bonds being issued, with payment made at the time of closing on the debt. In the case of a refinancing, the fee shall be calculated at 0.25%. These percentages may be adjusted, with city council approval, depending upon the size of the bonded debt. G. The Finance Department shall report all conduit debt issues within the Annual Comprehensive Financial Report in accordance with Generally Accepted Accounting Principles. Debt for Private Development The City generally requires that private developers finance the cost of public infrastructure installed for new developments. Prior Property Tax Levy Debt Policy The Debt Management Policy above supersedes the 2008 and 2018 policies and shall be used as the guideline for all existing and future debt. POST -ISSUANCE TAX COMPLIANCE PROCEDURES FOR TAX-EXEMPT BONDS I. Purpose These procedures are adopted by the City to ensure that interest on tax-exempt bonds ("Bonds") of the City remains excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"). These written procedures are intended to formally memorialize certain policies and practices of the City previously adopted or followed by the City in connection with its issuance of Bonds. The City reserves the right to use its discretion as necessary and appropriate to make exceptions to these procedures as facts and circumstances warrant. II. Expenditure/Use of Bond Proceeds a. Expenditure of Bond proceeds will be regularly reviewed by the City Finance Director for consistency with the Bond documents, including any Bond Resolution and the City's Tax Certificate. b. The City has separately established procedures for preparation and review of requests for Bond proceeds as part of its accounting system. c. Requests must identify the Bond -financed property in conformity with the City's tax certificate executed at closing of the Bonds, including the character of the Bond - financed property. Such information is contained as part of the City's accounting system coding. d. None of the proceeds of the Bonds will be used to reimburse the City for costs paid prior to the date of issuance of the Bonds unless the City shall have fully complied with Section 1.150-2 of the Treasury Regulations with respect to such reimbursed amounts, which is summarized in Exhibit A hereto. e. Staff costs may be financed with Bond proceeds only to the extent that they are properly capitalized as a cost of a capital project under generally accepted accounting principles and federal tax law. f. Requests for expenditures will be summarized in a "final allocation" of Bond proceeds to uses not later than 18 months after the in-service date of the Bond -financed property (and in any event not later than 5 years and 60 days after the issuance of the Bonds and not later than 60 days earlier than retirement of the issue) in a manner consistent with the Code and Treasury Regulations and the applicable Tax Certificate. g. Expenditure of proceeds of the Bonds will be measured against the City's Tax Certificate expectation to spend or commit 5% of net sale proceeds within 6 months, to spend 85% of net sale proceeds within 3 years, and to proceed with due diligence to complete the capital project and fully spend the net sale and investment proceeds. In the event that exceptions under the Code are not met, calculations of rebate liability will be performed or caused to be performed by as provided herein. h. If there are any Bond proceeds remaining other than in a reserve or debt service fund established pursuant to the Bond Resolution after completion of the projects, such proceeds shall be applied in a manner consistent with the applicable Bond Resolution and Tax Certificate or pursuant to advice from Bond Counsel. In the event that Bond proceeds are to be loaned to a conduit borrower, such conduit borrower will be required to agree to all terms of the Tax Certificate and provide evidence of post -issuance tax compliance procedures deemed adequate and consistent with those set forth herein; and all such obligations for post -issuance tax compliance shall be assumed by such conduit borrower. The City Finance Director shall be the primary contact for all conduit borrowers and related compliance matters. III. Use of Bond -Financed Property a. Use of Bond -financed property when completed and placed in service will be reviewed by the City Finance Director and, as applicable, the City Engineer. Appropriate department/facility managers, including staff responsible for asset management, shall be trained regarding restrictions on the use of Bond proceeds and facilities financed thereby and instructed to consult with regarding any third -party contract concerning use of the facilities, including without limitation leases, use, management or service contracts, and research contracts. b. Upon issuance of Bonds, there shall be no expectation that the Bond -financed property will be sold or otherwise disposed of by the City during the term of the Bonds, except for replacement due to normal wear and tear or obsolescence. c. Agreements with third parties for lease, use, management, or any other service agreement or research contract with respect to, or non -governmental use in respect of, Bond -financed property will be reviewed prior to execution for compliance with the Code. Such agreement will be approved by the City Finance Director, who will be responsible for determining whether the proposed agreement (1) results in private business use of the facilities, and (2) Revenue Procedure 2017-13 and (3) Revenue Procedure 2007-47 (regarding research sponsorship agreements). d. No item of Bond -financed property will be sold or transferred by the City without approval of the City Administrator or City Attorney, who shall seek advice of Bond Counsel as necessary, to provide guidance as to "remedial action" that may be required under the applicable Treasury Regulations if Bonds financing such property remain outstanding as of the date of sale or transfer of such property. Remedial action is summarized in Exhibit B hereto. e. The City acknowledges that any sale, transfer, change in use, or change in users of the Bond -financed property may require remedial action, as previously described, or resolution pursuant to the IRS Voluntary Closing Agreement Program (or WCAP") to assist in resolving violations of the federal tax laws applicable to the Bonds. IV. Investments a. Investment of Bond proceeds in compliance with the arbitrage and rebate requirements of the Code and applicable Treasury Regulations will be managed and supervised by the City Finance Director. b. Guaranteed investment contracts ("GICs") will be purchased according to the fair market value provisions of applicable Treasury Regulations, including bid requirements and fee limitations. c. Calculation of rebate liability will be performed annually by the City Finance Director or as needed by outside consultants of the City. d. Upon final expenditure of the gross proceeds of Bonds, and in any event promptly following the fifth anniversary of the date of issuance of the Bonds or earlier retirement of the Bonds, the City Finance Director will consult a qualified professional to prepare a spending exception report or an arbitrage rebate computation (as applicable) for the issue of Bonds. e. Rebate payments, as required based upon the advice of a qualified professional, will be made with Form 8038-T no later than 60 days after (a) each anniversary of the date of issuance of the Bonds and (b) the final retirement of the Bond issue. V. Record Management and Retention a. Management and retention of records related to Bond issues will be maintained by City Administration staff. b. Records for Bonds will be retained for not less than the life of the Bonds, plus any refunding bonds, plus three years. Such records may be in the form of documents or electronic copies of documents, appropriately indexed to specific Bond issues and compliance functions. c. Retainable records pertaining to Bond issuance shall include a transcript of documents executed in connection with the issuance of the Bonds and any amendments; and copies of rebate calculations and records of payments, including IRS 8038-T forms. d. Retainable records pertaining to expenditures of Bond proceeds include requisitions; trustee statements, if applicable; and final allocation of proceeds. e. Retainable records pertaining to use of Bond -financed property include all third -party contracts concerning use of the facilities, including (without limitation) leases, use, management or service contracts, and research contracts. f. Retainable records pertaining to investments include GIC documents under the Treasury Regulations, records of purchase and sale of other investments, and records of investment activity sufficient to permit calculation of arbitrage rebate or demonstrate that no rebate is due. VI. Overall Responsibility a. Overall administrative and coordination of this policy and the procedures set forth herein are the responsibility of the City Finance Director. b. Review of compliance with this policy and the procedures set forth herein shall be undertaken periodically, and in any event, not less than annually. c. The City understands that failure to comply with these policies and procedures could result in the retroactive loss of the exclusion of interest on Bonds from federal gross and Minnesota taxable net income; and thus, it would be advisable to consult with Bond Counsel in advance regarding deviations from the facts and expectations as set forth in the closing certifications relating to any issue of Bonds_ d. Any violation or potential violations of federal tax requirements shall promptly be reported to the City Finance Director, and the City Finance Director will engage qualified consultants and bound counsel to further investigate potential violations or undertake appropriate remedial actions, which actions shall be approved by the governing body of the City. EXHIBIT A REIMBURSEMENT BOND SUMMARY Following is a general summary of the requirements relating to bonds that are issued to reimburse expenditures that were paid prior to the date of issuance of bonds ("Reimbursement Bonds"). Reimbursement Bond proceeds cannot be used to reimburse expenditures paid more than 60 days prior to the adoption of the declaration of official intent/reimbursement resolution, which must contain: • a general function description of the property to which the reimbursement relates or an identification of the fund or account from which the expenditure is to be paid and a general functional description of the purposes of such fund or account; and • the maximum principal amount of debt to be issued. Reimbursement Bonds must be issued not later than 18 months after the later of (i) the date on which the original expenditure is paid, or, ii) the date on which the property is placed in service, but in any case, not more than three years after the date on which the original expenditure is paid. If possible, actual reimbursement should be made within 30 days of the date of issuance of the Reimbursement Bonds. Note that there are exceptions for "de minimis" amounts (not in excess of the lesser of $100,000 or 5% of proceeds of the issue) and for "preliminary expenditures" (such as architectural, engineering, surveying, soil testing and similar costs and costs of issuance), so long as such preliminary expenditures do not exceed 20% of the aggregate issue price. REMEDIAL PROVISIONS APPLICABLE TO BONDS The City acknowledges that any deliberate action by the City after Bond issuance that results in a satisfaction of private business tests or the private loan test will result in private activity bond status unless one or more qualifying remedial actions are taken by the City. Specifically, Treasury Regulations provide that actions are not treated as deliberate actions if (A) five conditional requirements are met, and (B) one of three remedial actions is taken, with respect to the disposition proceeds and nonqualified bonds*: CONDITIONAL REQUIREMENTS 1. Reasonable Expectations — The City reasonably expected on the issue date that it would not meet the private business tests or the private loan test for the whole term of the bonds; and 2. Reasonable Bond Maturity — The term of the issue must not be unreasonable long; this requirement is met if the weighted average maturity of the bond issue is not greater than 120% of the expected economic life of the property financed; and 3. Fair Market Value Consideration — The terms of any agreement (relating to satisfaction of a private activity bond test) must be bona fide and at arm's-length, and the new user must pay a fair market value consideration for the use of the bond -financed property; and 4. Disposition Proceeds Are Gross Proceeds — The City must treat any disposition proceeds as gross proceeds subject to arbitrage/rebate restrictions; and 5. Proceeds Spent for Authorized Purpose — Except as described with respect to redemption and defeasance options below, prior to deliberate actions, the affected proceeds must have been spent for the authorized purposes under the applicable bond documents. REMEDIAL ACTIONS — Under Treasury Regulations, Sections 1.141-12(d), (e) and (f)- 1 . Redemption of Non -Qualified Bonds — Under the general rule, all nonqualified bonds of the issue must be redeemed. Tax-exempt bond proceeds (i.e., refunding bond proceeds) cannot be used unless the tax-exempt bonds are qualified bonds, taking into account the purchaser's use of the facility. The bonds must be redeemed within 90 days of the date of the deliberate action or a defeasance escrow for the bonds must be established within such 90-day period. Special rules apply to transfers exclusively for cash and to defeasance escrows. * The portion of the outstanding bonds in an amount that, if the remaining bonds were issued on the date on which the deliberate action occurs, the remaining bonds would not satisfy the private business use test or the private loan financing test, as applicable. The amount of private business use is the highest percentage of business use in any one-year period, commencing with the deliberate action 2. Alternative Use of Disposition Proceeds — To meet this requirement, all disposition proceeds must be in cash, the City must reasonably expect to expend the proceeds within 2 years, the new use must not meet the private business tests or the private loan test (and the City cannot take any action subsequent to the date of the deliberate action to cause the tests to be met), and any unused proceeds must satisfy the redemption requirement in the preceding paragraph. 3. Alternative Use of Facility — This remedial action is satisfied if the bond -financed property itself (as distinguished from the proceeds of the issue)is used in an alternative manner (e.g., for a different purpose or by a different person); the nonqualified bonds are treated as reissued on the date of the deliberate action and independently meet all of the requirements for tax exemption under Sections 141 through 150 of the Code, except the arbitrage and rebate rules of Section 148, for the remaining term of the nonqualified bonds; the deliberate action does not involve a transfer of the property to a purchaser that finances the acquisition with the proceeds of another issue of tax-exempt bonds; and any disposition proceeds, other than those arising from an agreement to provide services, resulting from the deliberate action are used to pay debt service on the bonds on the next available payment date or escrowed within 90 days of receipt and yield restricted to pay debt service on the next available payment date. The above is only a brief summary of remedial actions, and additional special rules may be applicable. As provided in the City's Compliance Procedures for Tax -Exempt Bonds, the City Finance Director shall seek advice of Bond Counsel as necessary to provide guidance as to "remedial action" that may be required under the applicable Treasury Regulations. The Commissioner of the IRS may, by publication, provide for additional remedial actions. In addition, the IRS provides a program in which issuers/borrowers which cannot meet a listed remedial action can enter into a closing agreement with the IRS to avoid private activity bond status. The closing agreement program includes several conditions, including providing for the redemption of the bonds and paying the IRS an amount based on an assumption that the non -qualified bonds are taxable from the date of the subsequent act until they are redeemed. PURCHASING POLICY Policy Overview It is the intent of the City of Hutchinson to purchase, in the most efficient and effective manner possible, those goods and services necessary to conduct City operations. To accomplish this, a formal set of purchasing procedures has been adopted. This policy recognizes and retains that the ultimate purchasing authority is that of the City Administrator. This policy delegates purchasing authority as outlined below. Public Purpose The City Council recognizes that public funds may only be spent if the expenditure meets a public purpose and the expenditure relates to the governmental purpose for which the City of Hutchinson was created. The meaning of "public purpose" is constantly evolving. The Minnesota Supreme Court has followed a broad approach and has generally concluded that "public purpose" means all activity that meets all of the following standards: • The activity will benefit the community as a body. • The activity directly relates to the function of government. • The activity does not have, as its primary objective, the benefit of a private interest. Purchasing Agent The City Administrator shall be the chief purchasing agent of the City. The City Administrator is responsible for the citywide purchasing function and shall have the authority to delegate powers to the City Department Directors and Supervisors for purchasing items within their respective budgets. Purchasing Purchasing and budgetary control is the responsibility of the department Director. Departments shall strive to obtain the best possible prices and value, and are encouraged to buy locally whenever possible or practical. Each department shall have on file with the Finance department a list of employees authorized to obligate appropriations of that department. Authorized employees shall be regular full-time or regular part-time employees of the City. Individual exceptions may be considered by the City Administrator, Finance Director and Department Director. In no case shall an employee make a purchase for personal use utilizing his/her city purchasing authority. Violation of this policy may result in an employee's purchasing authority being revoked. 1) Purchasing Limits: $ 0 to $ 4,999 Department Director approval, or approved designee $ 5,000 to $ 24,999 Finance Director or City Administrator approval required $ 25,000 to $ 49,999 Finance Director and City Administrator approval required $ 50,000 to $ 99,999 174,999 Finance, City Administrator & City Council approval required $199,990 175,000+ Competitive Bidding required (certain exceptions) 2) Written Quotes: a. Purchases estimated to cost less than $5,000 may be made without seeking more than one quote, however more than one quote is encouraged. b. Purchases estimated to cost more than $5,000 but less than $100,099 175,000 must have at least two written quotes. Verbal quotes should not be accepted. The City will maintain documentation for a period of at least one year of its efforts to obtain at least two written quotes as required by state statute 471.345. c. The City will require competitive bidding on the sale, purchase or rental of supplies, materials or equipment and on contracts for the construction, alteration, repair or maintenance of real or personal property estimated to exceed $440-,000 175,000. 3) Competitive Bidding Competitive bidding is required for certain contracts estimated to exceed $100,900 175,000. The competitive bidding process may not be avoided by splitting a contract into several smaller contracts, each of which is under the competitive bidding threshold. 4) State Pricing & Cooperative Purchasing Contracts or purchases estimated to exceed $25,000 must consider the availability, price and quantity of supplies, materials, or equipment available through the State's Cooperative Purchasing Venture (CPV) before buying through another source. The City may also purchase through a national municipal association's purchasing alliance or cooperative. The alliance or cooperative must have been created by a joint powers agreement and must purchase items from more than one source based on a competitive bidding process or competitive quotations. The City currently is a member of the State's CPV and a few national joint powers purchasing alliances Galled NiP . Contact the Finance Director with questions on accessing pricing for these agencies. 5) Purchase Orders A purchase order system is essentially a budgetary control mechanism that provides the following: • Achieves the best pricing by soliciting multiple vendor quotes in addition to state contract pricing and cooperative purchasing availability. • Ensures the department has sufficient budgetary dollars to fund the purchase. • Formally documents the agreed upon price for both parties and prevents overpayments. • Serves as a legal document that can be enforced in the event of a disagreement r, the vendor regarding cost, scope of work or quantity of merchandise. • Complies with state statutes bidding and vendor quote retention requirements. An approved purchase order is required for all purchases estimated to exceed $5,000. Departments may not place an order without a prior approved purchase order. a Departmental Responsibility i. Obtaining at least two written quotes ii. Preparing and forwarding a purchase requisition to the Finance Director for review • A purchase requisition is applicable to only one vendor. A project with multiple vendors each exceeding the $5,000 threshold requires separate requisitions for each vendor. • Attach the written quote documentation • Provide a reasonable explanation of the requested purchase within the system's note feature. • Include the proper departmental expense coding. • Obtain the department director's approval. iii. Forwarding a copy of the approved purchase order to the vendor, if required. iv. Providing written explanations within the accounts payable invoice system in the event of cost differences from the purchase order amount. v. Departments should consider canceling and issuing a revised purchase order if the scope of a project/purchase changes significantly from the original quoted price. b Finance Department Responsibility i. The Finance Director will review each purchase requisition in a timely manner. ii. An approved purchase order, or an explanation in the case of a denied requisition, will be provided to the originating department generally within 2-3 business days. iii. The finance department will maintain scanned images of all approved purchase orders and corresponding written quotations for compliance with state statute. iv. Finance Director and City Administrator approvals are required prior to seeking City Council approval on purchases over $50,000. v. Purchase orders remaining open at the end of a calendar year will be rolled forward to be applied against the next year's budget. Departments have the option to cancel the purchase order by contacting the Finance department. c Purchases not requiring a Purchase Order i. Annual Service Contracts — The City shall evaluate the performance of service contracts at least every three years and determine if the City will renew the agreement or seek written proposals from service providers. ii. Professional Services - Contracts with a total cost of $5,000 to $50,000 to provide professional services shall be approved by the City Administrator. Contracts with a total cost over $50,000 shall be approved by City Council. A purchase order is not required if a contract is executed. iii. Inventory Purchases - Purchases for inventory assets of certain operations shall not require a purchase order as doing so would delay purchases and potentially hinder operations. This shall apply to the Liquor store, Creekside's bagging production process, Water and Sewer chemical purchases and HATS fuel purchases. The department directors shall be responsible for ensuring that the City is receiving favorable pricing. iv. Emergency Purchases - Purchases required by emergencies which impair the City's ability to deliver services shall be outside the scope of this policy. In these rare instances, a purchase order is not required, however the departmental director shall t o hriof writton Pxp!aRatinR of tho omorgeRGY sits atinn ono attorh to the invniro proseRted for paymo„+ explain the emergency reason within the accounting system's invoice note feature. Change Orders Project change orders require either City Administrator or City Council approval. The City Administrator is authorized to approve change orders less than $50,000. Change orders of $50,000 or more shall be approved by the City Council. Disbursement Methods The following disbursement methods are available for departmental approved purchases: 1) City Check — This is the standard disbursement process described in the next section. 2) Departmental Procurement Card — Covered under separate policy; "Procurement Card Policy". 3) Vendor In -House Charge Accounts — The City currently utilizes charge accounts with various vendors in the City. The Finance department will maintain a list of departmental employees authorized to make purchases and will submit updated lists to the vendors at least annually. Authorized purchasers shall be regular full-time or regular part-time employees. 4) Vendor Charge Cards — The City currently utilizes vendor charge cards for a limited number of vendors. Departments will control access to these cards to prevent unauthorized use and will notify the Finance Director immediately of lost/stolen cards or fraudulent activity. No new charge cards shall be set up without the approval of the Finance Director. 5) Petty Cash — Departmental petty cash funds may be utilized for small purchases. The department shall maintain detailed receipts for each purchase and periodically submit to the Finance department for replenishment. Receipts shall be properly coded and contain an adequate explanation of the expense along with departmental approval. Disbursement Process Departments will submit pFepeFly Gelled and dirosteF appFryed- i.Ayeir•or• try the AAAnl1Rts Payable SpeGialis approve their invoices within the Accounts Payable system by 12:OOpm on Monday, one week prior to each City Council meeting. In the case of a Monday holiday, the deadline shall be 12:OOpm on the prior Friday. Invoices s, ihea approved after the deadline may be delayed to the next council check run. Checks will be distributed on the Wednesday after each City Council meeting. 1) Invoices — Content and Approvals a. Payments will only be made from original mailed or emailed invoices. i. Payments will not be made from faxes, photocopies, vendor statements or quotes/estimates. b. The City of Hutchinson shall be named on the invoice as the purchaser. Invoices naming another entity as the purchaser will not be processed for payment. The vendor should be contacted to correct the invoice. c. The invoice date shall accurately reflect the actual date of service or purchase. d. The invoice is sent directly from the vendor to the City's Accounts Payable Specialist at City Center (HutchAP@hutchinsommn.gov). i. The A/P Specialist will stamp each invoice with a received date and route to the appropriate department for approvals. e. A vendor invoice should provide a reasonable description of the purchase or service, ch:;" hp nn +ho irwniro f. dmreG+hi OR +ho inyeiro and not en a separate paper noc�_i�eDepartments will provide the proper budgetary expense code for each invoice. g. Departments are responsible for ensuring that the merchandise is received or the services are performed prior to submittiRg approving an invoice for payment. i. The City generally does not provide down payments for merchandise or services. Progress payments may be made to vendors based upon a reasonable percentage of completion for the service or project. ii. Departments shall work directly with the vendor to correct any issues regarding incorrect or defective merchandise or service. Prompt Payment of City Bills Minnesota Statute 471.425 requires cities to pay each vendor obligation according to the terms of the contract. If no contract terms apply, payment must be made within the standard payment period of 35 days from the date of receipt. 1) Date of receipt is defined as the later of: a. The completed delivery of the goods or services, or the satisfactory installation, assembly or specified portion thereof; or b. The receipt of the invoice for the delivery of goods or services. 2) Invoice Errors a. The City must notify a vendor within 10 days of the date of receipt if the invoice is incorrect. The 35-day standard period begins when a corrected invoice is received. 3) Payment of Interest a. The City must calculate and pay interest if an invoice is not paid according to the terms of the contract, or if no contract terms apply, within the standard period of 35 days. i. Interest rate shall be 1.5% per month or part of month. ii. The minimum monthly interest penalty that the City shall calculate and pay a vendor for the unpaid balance of any one overdue bill of $100 or more is $10. iii. For an unpaid balance of less than $100, the City shall calculate and pay the actual interest penalty due to the vendor. 4) Prompt payment to Subcontractors a. Each contract of the City must require the prime contractor to pay any subcontractor within 10 days of the prime contractor's receipt of payment from the City for undisputed services provided by the subcontractor. b. The City's contract must require the prime contractor to pay interest of 1.5% per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. i. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the prime contractor shall calculate and pay the actual interest penalty due to the subcontractor. Prior Policv The policy above supersedes the prior city policy #1.11. PROCUREMENT PURCHASING CARD POLICY POLICY: The purpose of this policy is to provide detailed information regarding the use of proGuromon+ purchasing cards (p-card) authorized by the Hutchinson City Council and assigned by the City Administrator to selected department directors to purchase goods and services for the City. The use of the ^r^^UremeRt p-card is an alternate means of payment and is not meant to replace the standard purchasing order system of the city. The use of pFGGUremei# p-cards should only take place when the normal purchasing order system cannot be used and/or the use of a r-rviZa [ p-card is the only purchasing mechanism allowed. STATUE AUTHORITY: Minnesota Statute 471.382 Credit Cards. "A city council may authorize the use of a credit card by any city officer or employee otherwise authorized to make a purchase on behalf of the city. If a city officer or employee makes or directs a purchase by credit card that is not approved by the city council, the officer or employee is personally liable for the purchase. A purchase by credit card must otherwise comply with all statutes, rules, or city policy applicable to city purchases." POLICY ADMINISTRATION: The City Administrator shall determine the appropriate department directors to be issued City „MGUremeRt p-cards. The Finance Director, with the oversight of the City Administrator, is hereby designated the responsibility of ^r^^UremeRt p-card issuance, accounting, monitoring of use, retrieval, payment of all charges, maintenance of a list of authorized users and cards assigned to them and general compliance with the City's Pr^^„romo^t Purchasing Card Policy. MAXIMUM LIMITS: The monthly maximum card limit per director will be established by the City Administrator and Finance Director based on the anticipated need. DOCUMENTATION: Itemized invoices or receipts are required to support all ^r^^UremeRt p-card purchases since the monthly billing statements lack sufficient detail to comply with Minnesota Statutes. For purchases in which a receipt is not normally available, a copy of the completed application or order form should be used as a receipt (for example, conference registration forms). CARDHOLDER RESPONSIBILITIES: 1) The Department Director is responsible for the authorized use of the City issued Prnr„reMeRt p-card and for any purchases made on it. 2) Ensure that the prGGUremeiR p-card is used in compliance with the City's Purchasing Policy. a. Purchases must be budgeted. b. Use of the ^r^^UFeme„+ p-card for personal purchases is strictly prohibited. If the „r^^„remeRt p-card is inadvertently used for a personal purchase, contact the Finance Director/City Administrator immediately. Not reporting inadvertent personal purchases will result in immediate revocation of the PFGGUFemei# p-card and the cardholder may be subject to disciplinary and/or legal actions. The cardholder will be personally responsible for reimbursing the City for any inadvertent personal purchases. 3) The ^r^^Uremen+ p-card may only be used for the purchase of goods or services for official City business. a. The ^r^^Uremen+ p-card may not be used for cash advances or any other type of purchase not permitted under the City's Purchasing Policy. No cardholder shall be allowed to make any purchases for personal use through the City. Use of the p-card for personal use or inappropriate purchases, as deemed by the City Administrator, shall be reimbursed and may result in discipline. Two or more inappropriate purchases may be cause for revocation of the GFediVPF9n61remeRt p-card. b. Purchase of motor fuels is prohibited, with the exception of extended travel with a city owned vehicle. Fuel for personal vehicles used for official city business is reimbursed to the employee based on the IRS mileage reimbursement through the Employee Expense Reimbursement process covered under separate policy. c. Cardholders shall verify with the Finance Department and notify vendors if the transaction is exempt from Minnesota sales tax. All transactions should be exempt from all local sales tax. d. Online orders using a City p-card should be completed on a city computer as personal computers or devices may not be properly protected against online fraud. 4) Authorized cardholders are responsible for the secure custody of the ^r^^UreMen+ p-card and protection against theft, misuse and fraud. a. Notify the Finance Director immediately if the PF9GHFemei# p-card is lost or stolen and when fraudulent activity is suspected. b. When fraudulent activity is suspected, immediately contact the prom Bremen+ p-card company at the phone number listed on the back of the card. The procurement card must not be used again until the situation is resolved. A new procurement card will be issued if the activity was in fact fraudulent. c. To prevent fraudulent activity, the cardholder shall not make transactions over unsecured websites. Giving out PF9GHFemeRt p-card information over the telephone is not recommended and should only be done in rare instances where the order cannot be completed in any other manner. 5) Monthly review, approval and reporting of transactions: a. At the end of each month, department directors shall have 10 days to review and approve the prior month purchases via the Wells F,rno ^"'i"e "^ monthly activity file provided by the Finance department. i. Each transaction shall be evidenced by a detailed receipt or order confirmation. ii. Directors shall code each purchase to the correct departmental expense account and provide an adequate description of the expense within the ^"'i"e peFte monthly activity file. iii. Directors shall prim from the online portal a licking of all purrhases morale dWino +he mePth :;Pd C;, ,hmi+ remit the completed monthly activity file to the Finance department along with all detailed receipts supporting the purchases. Finance shall receive this information by the 11th day of the month, or next business day if the 11th falls on a weekend. b. The Finance department will review all transactions and provide the final approval to Wells F=ar-go the p-card provider to deduct from the City's bank account the total payment amount to cover all authorized purchases. 6) Returns or Disputed Transactions: a. It is the cardholder's initial responsibility to work directly with the merchant to receive proper credit on returned merchandise or disputed transactions. b. Finance Department will be available to assist cardholders with returns or disputed transactions if initial contact by the cardholder is unsuccessful. 7) The cardholder must immediately surrender the procurement card to the Finance Director upon retirement or termination of employment. All receipts for current purchases shall be coded and submitted to the Finance Director when the credit card is surrendered. 8) Any exceptions to this policy must be approved in advance by the City Administrator. SUSPENSION OR REVOCATION OF CARDS: If any of the following occur, immediate suspension and/or revocation of the preGuremel# p-card privileges may result, including discipline, as determined by the City Administrator- 1 ) Use of the p-card for personal purchases or cash advances. 2) Unauthorized use of p-card. 3) Failure to notify the ^r^^„remeRt p-card company and Finance Director of a lost or stolen card, and fraudulent activity. 4) Repeated failure to submit in a timely manner the monthly billing statement with proper receipts/support for payment. 5) Repeated failure in which the attached receipts do not match the item description or dollar amounts listed on the monthly billing statement with no explanation. Applicant: City of Hutchinson Request for PFOGUremenf Purchasing Card Department: Requested Monthly Card Limit: $2,000 $5,000 $10,000 Other: $ By requesting a City PFGGUFemeR4 p-card, I acknowledge the following: 1. The ^r^^UremeRt p-card is to be used only to make purchases in compliance with Minnesota Statutes and the City's Purchasing Policy. 2. The card must be used in accordance with the City's Pr^^„romo^t Purchasing Card Policy. 3. Violation of the Pr^^„romo^# Purchasing Card Policy may result in suspension or revocation of use privileges. Employees found to have inappropriately used the procurement card will be subject to discipline, including the requirement to reimburse the City for all costs associated with such improper use. Director Signature: Authorization Information Approved Monthly Card Limit: $ City Administrator Approval: Finance Director Approval: Date: Date: Date: This fully approved request gives the Finance Director authorization to issue a City of Hutchinson „FOG „-o„ ent p-card in the name of the applicant with a monthly card limit as approved by the City Administrator. City of Hutchinson Acknowledgement of Receipt of PFOGUrement Purchasing Card I acknowledge that on the date indicated below, I received my City of Hutchinson Pr^^, �romon+ Purchasing Card. I have previously received a copy of the Pr^^„rernei# Purchasing Card Policy explaining the use and responsibilities of the ^r^^„remei# p-card. I understand that: 1) The ^r^^„remeRt p-card is a cost-effective method for the purchase and payment of small dollar material transactions and is limited to $ per month. 2) The ^r^^„remeRt p-card is to be used solely for City business purchases; not personal purchases. 3) 1 am responsible for reconciling monthly statements and maintaining accurate accounting records. 4) 1 must attach the itemized receipt with my statement each month. 5) Should my employment with the City of Hutchinson terminate, I am responsible for returning the ^rn^,.rerneRt p-card to the City Administrator or Finance Director, along with all receipts for purchases within the current billing cycle. If the ^r^^„remeRt p-card is used for personal purchases, for unauthorized items, or used by someone not authorized to do so, I hereby agree to personally pay the City for such purchases and hereby authorize the City, if necessary, to withhold from my paycheck any amount necessary to pay these charges. This acknowledgement will be kept in my personnel file and I may be subject to discipline or termination from employment for violation of this policy. Purchasing Card #: Employee Name: (please print) Employee Signature: Wells Carer^ Customer Service: 1-844-386-8276 Date: TRAVEL & MEAL EXPENSE REIMBURSEMENT POLICY Policy Overview This policy recognizes the fact that certain travel for official city business may require employees or elected officials to incur expenses subject to reimbursement by the City. Reasonable travel costs for out of town business meetings, conferences and training seminars may qualify for reimbursement as provided by this policy. To be reimbursed by public funds, expenditures must meet a "public purpose", defined by Minnesota Supreme Court as meeting all of the following: ➢ The activity will benefit the community as a body. ➢ The activity directly relates to the function of government. ➢ The activity does not have, as its primary objective, the benefit of a private interest. This policy is intended to provide guidelines regarding which travel related expenditures are for public purpose and authorized in accordance with the City's annual budget. The City Administrator and Finance Director shall review all employee expense reimbursement requests and will determine if an expense does not meet a public purpose and is not subject to City reimbursement. Travel Approval Each department director is responsible for ensuring that employee travel is for City business and is consistent with City policy. Department Directors are responsible for approving all travel requests within his/her respective departments and will ensure that departmental budget dollars are sufficient to cover requested travel prior to approving. Requests fee travel by DiFeGtGFS shall have Pfk).F appFeval by the city Administrator-. The following approvals are needed prior to employee travel: 1) Same Day & Overnight Travel - Department Director approval is required. 2) Out of State a. All out-of-state travel exceeding a 300-mile radius from Hutchinson must be approved within the annual budget process and approved separately by City Council. The frequency of this out-of-state travel shall not exceed once every other year. In the event an additional conference or seminar presents itself, the council may use its discretion in considering the request. b. All out-of-state travel within a 300-mile radius of Hutchinson shall be approved by the City Administrator and does not require City Council approval. Reimbursable Expenses 1) Transportation Several means of transportation exist and each travel request shall consider the least -cost method. For the maiority of travel requests, a City vehicle provides the least -cost to the City and shall be considered before any other means. Vehicles from other departments may be available and shall also be a consideration. a) City Vehicle — All direct expenses incurred will be reimbursed, including fuel, oil and maintenance/repair expenses. Only City employees are authorized and insured to drive a city owned vehicle. b) Personal Vehicle — When a city vehicle is not available, a personal vehicle may be authorized for use. City reimbursement for the use of a personal vehicle is based on the current IRS approved mileage rate using the shortest route. If the travel originates from home, the mileage reported for reimbursement should be from the home or the employee's normal City work facility, whichever is less. An employee's normal commute mileage will not be reimbursed. c) Airplane/Other — travel by any means other than by vehicle shall be approved by the City Administrator. d) Other related costs — Reasonable parking fees, car rental and fares for rail, bus, taxis and shuttles are all subject to reimbursement if related to City business. Taxis and shuttles reimbursement may include a maximum gratuity of 20%. Gratuities in excess of 20% will not be reimbursed by the City. A standard model sedan shall be used when renting a car unless unusual circumstances dictate otherwise. e) Employee Time — Actual driving time required for City business travel is considered hours worked for non-exempt employees when the travel occurs during the employee's regular work hours. This includes weekend travel that occurs during the same Monday - Friday normal work schedule. These compensable hours may result in overtime rates being applied. Travel time outside of the employee's regular work hours is not compensable. An employee's commute time to work is also not compensable. 2) Lodging The City will reimburse the reasonable cost of lodging for training, seminars or conventions of two or more days if the event site is outside a 50-mile radius of Hutchinson. All employees shall ask for a standard room and inquire about the availability of a government discount. In the event that a standard room is not available, other lodging establishments shall be contacted prior to booking a non-standard room. A non-standard room is reimbursable if it is at a contract rate through the event, offered at the same rate as a standard room or if no other options are available within a reasonable distance from the event. An increase in lodging rate due to family members staying is not reimbursable. The employee will be reimbursed only for s the cost of a standard room. Rental homes, such as through Airbnb and Vrbo, may be a more cost effective alternative to hotel rooms if multiple employees are on the same overnight trip. Departments may book a rental home if the cost is less than a hotel, with advanced approval from the City Administrator and Finance Director. Entertainment expenses incurred will not be reimbursed, such as in -room movies, mini -bar and optional entertainment -type events provided at conferences. 3) Meals The City generally will reimburse the cost of job -related meals only if an employee's travel requires an overnight stay or if a business meeting is held during typical meal hours. The following limits are in place for the total cost of each meal, including sales tax and gratuity: Breakfast: $45 $20 — Travel begins before 6:OOam and extends beyond 9:OOam Lunch: $2-0 $25 — Travel begins before 11:00am and extends beyond 2:OOpm Dinner: $30 $35 — Travel begins before 4:OOpm and extends beyond 7:OOpm a) A meal may be subject to reimbursement if actual travel time exceeds the times listed above. For example, the cost of a dinner is considered unnecessary and not reimbursable if the employee is expected to arrive home before 7:OOpm without stopping for a meal. b) All reimbursement requests for meals must include an itemized receipt detailing the food and drinks purchased. The signed credit card slip is not sufficient for reimbursement. c) Meetings scheduled and held during typical meal hours do not automatically necessitate that a meal will be provided at City expense. Per IRS regulations, a meal must have a clear business purpose in order to be reimbursed. tax and gratuity. e) Gratuities paid by the employee over 20% will not be reimbursed. An employee will reimburse the City for any cost in excess of the meal limits or in excess of the 20% gratuity when the departmental purchasing card is used to pay for the meal. f) The above dollar amounts cannot be combined in any fashion in order to reimburse an employee for a meal costing more than the maximum amount listed per specific meal. For example, an employee cannot use the breakfast and lunch amounts to justify reimbursement of a $60 dinner. g) Employees are expected to take advantage of meals provided by the conference or seminar. The City will not reimburse an employee for a purchased meal when a meal was provided by the event. h) If more than one employee is present at a job -related meal, one employee may pay for the entire meal cost of all employees. The reimbursement request shall clearly identify each employee present for the meal. i) If non -city personnel are present at a job -related meal, the city may reimburse the paying employee for the cost of the meal(s) of the individual(s) if an itemized receipt and a form indicating who attended, where the meal was held and the city -related purpose for the meal is submitted and approved by the Department Director and City Administrator. Reimbursement of a non -employee's meal is subject to the same dollar limit as the employee. j) When family members are present, a separate detailed receipt for the employee's meal shall be requested. k) The daily meal limits may be adjusted for out-of-state travel by the Finance Director based on current IRS per diem guidelines. 1) The City may pay the cost of employee meals as part of city-wide events where all employees are invited. Individual departmental meals or picnics will not be reimbursed. Any meals of "appreciation" for employees or non -employees generally will not be reimbursed. 4) Registration or Membership Cost The City will reimburse the costs for registration, training and membership incurred to attend conferences, seminars or training sessions. A check request shall be submitted to the City's accounts payable department prior to the event as the primary option for payment of this type of cost. The request shall include the necessary documentation evidencing the amount payable and provide sufficient time to process a check prior to any payment due date. A departmental purchasing card may also be used for payment based upon receipt of all necessary travel approvals prior to making payment. Departments shall strive to utilize any early registration discounts. 5) Non -Reimbursable Costs a. Alcoholic beverages — whether consumed by an employee or a non -employee b. Gratuities exceeding 20%. An employee will be required to reimburse the City for gratuities in excess of 20% if a department purchasing card was used. c. Snacks and other food/beverages outside of the daily meal reimbursements d. Meals or events for spouses or family members traveling with an employee e. Meals when an event provides for a meal f. Private automobile expenses, including gas, oil, repairs g. Traffic citations or fines h. Cost related to damage by the employee, such as hotel rooms and rental car. i. Travel between an employee's home and work facility j. Entertainment expenses k. In -room movies, mini -bar or other hotel services not required for City business I. Optional entertainment events unless included as part of the overall conference registration fee (e.g. optional golf rounds, sporting events, concerts) m. Personal losses incurred while on City business n. Other costs that do not meet the public purpose definition as determined by the City Administrator and Finance Director Emnlovee Expense Reimbursement Form The Finance Department shall annually provide an updated Employee Expense Reimbursement Form (Exhibit B) to all employees. This form shall be used for all reimbursement requests related to approved travel or work -related expenses paid by an employee. 1) Retailed Itemized Receipts — each item submitted for City reimbursement must be supported by an itemized receipt indicating a reasonable explanation for the expense. All receipts shall be attached to each reimbursement request. a. Meals will be reimbursed based on a detailed itemized receipt. When a credit card is used to purchase the meal, both an itemized receipt and a credit card charge slip indicating the tip amount shall be submitted. b. Receipts for parking and taxis may not be available provided to the employee and may be submitted for reimbursement without a receipt. c. Mileage reimbursement for the use of a personal vehicle shall detail not only the mileage but also the location traveled and the business reason for travel. d. Proper departmental expense codes shall be used for each line item. e. Unsupported expenses will not be reimbursed. If an employee is unable to get a detailed receipt or the receipt is lost, a signed statement by the employee detailing the purchased item, the business reason for the expense and certifying that the claim is accurate must be submitted and approved by the Department Director. A copy of the employee's credit card statement or cancelled check may also be provided to help support the dollar amount being reimbursed. 2) Employees shall submit an employee expense reimbursement form with all necessary supporting documentation to the appropriate Department Director for review and approval. 3) A Director -approved employee expense reimbursement form shall be forwarded to the Accounts Payable Clerk who will route to the Finance Director and City Administrator for approval prior to payment. Any issues will be communicated back to the employee for correction/clarification. 4) The Finance department will make necessary corrections to reimbursement requests for mathematical errors, gratuities in excess of 20%, to remove any alcoholic beverages and other changes that may be necessary to comply with this policy. 5) Once approved, Rreimbursement will be made with the next City Council check register. 6) Employees shall submit an expense reimbursement claim no later than 60 days from the date the expense was paid or incurred. If employee expenses are submitted for reimbursement more than 60 days after the expense is incurred, the reimbursement may be taxable and appropriate withholdings would need to be made through the payroll system. Cash Advances An employee may request a cash advance prior to an overnight business trip. The cash advance shall be used only for expenditures related to official City business as specified within this policy. An employee expense reimbursement form shall be completed upon the employee's return, detailing the expenses subject to reimbursement, less the cash amount advanced. Expenses paid by the employee above and beyond the cash advance amount will be subject to employee reimbursement per this policy. Any portion of the cash advance that was not expended for a City related purpose must be reimbursed to the City within 60 days. The employee shall be responsible for any cash advance that is lost or stolen. In such instances, the employee must reimburse the City within 60 days. City Representation Employees shall be aware at all times that they are representing the City of Hutchinson while traveling out-of-town for official City business. Employees given the opportunity to be away from their regular work and having their expenses paid are expected to perform in a similar manner as if they were still at work. Conduct improper for a city employee will be treated as if it occurred during regular working hours. At no times shall alcoholic beverages be consumed by any person(s) driving or riding in a City of Hutchinson vehicle. Prior Policy The policy above supersedes the prior city policies #3.22 and #3.23. FISCAL AGENT POLICY Purpose This policy defines the parameters necessary for the City of Hutchinson (City) to act as the fiscal agent for a non-501(c)(3) organization (Other Entity) in order to secure grants or donations on behalf of the Other Entity. City Authority All requests for the City to serve as fiscal agent shall be approved by the City Administrator. The City Finance Director shall be made aware of all details related to approved fiscal agent projects for proper accounting of proceeds and expenditures. City Purchasing Policy The City's purchasing policy must be followed in order to comply with the State of Minnesota purchasing and contracting statutes. Vendor quotes shall be received, if required by policy, and the contract shall be awarded to the lowest responsible bidder. Invoices paid by the City must be billed to the City of Hutchinson and not another entity. Public Purpose Expenditures The City expenditure made on behalf of the Other Entity must meet a "public purpose", defined by the Minnesota Supreme Court as meeting all of the following: 1) The activity will benefit the community as a body. 2) The activity directly relates to the function of government. 3) The activity does not have, as its primary objective, the benefit of a private interest. The Minnesota Supreme Court further clarifies that activities that promote the following objectives for the benefit of all the city's residents further a public purpose: • Public Health • Safety • General welfare • Security • Prosperity • Contentment Donations Donations related to a project with the City serving as fiscal agent shall be made directly to the City of Hutchinson. The Hutchinson City Council shall formally accept all donations by resolution prior to those funds being used for the designated purpose. Grants The Other Entity shall be responsible for the preparation of all grant documentation and grant compliance, including reporting requirements. The City shall, upon request from the Other Entity, supply supporting documentation or reports related to transactions incurred within the City's financial system. Other The City shall not expend funds in excess of donations or grant proceeds received without City Council or City Administrator approval. EXHIBIT A List of City Funds Governmental Funds: 1. General Fund 2. Special Revenue Funds a. Rural Fire Department b. H.A.T.S.Operations c. Hutchinson Enterprise Center d. Economic Development Loan Funds e. HRA Loan Fund f. Tax Increment funds g. Public Sites Fund h. Tree Disease Mitigation Fund 3. Debt Service Funds a. Special Assessment G.O. Bonds Debt Service Funds b. General Obligation CIP Bonds Debt Service Funds c. Tax Increment Debt Service Funds 4. Capital Projects Funds a. Capital Projects Fund b. Equipment Replacement Fund c. Community Improvement Fund d. Airport Construction Fund e. Special Assessment Capital Improvement Funds f. Municipal State Aid Fund Proprietary Funds: 1. Enterprise Funds: a. Liquor Fund b. Compost Fund c. Refuse Fund d. Water Fund e. Wastewater Fund f. Storm Water Fund g. Hutchinson Utilities Commission 2. Internal Service Funds - a. Eg yip meRt A laGemeRt P Ind a--�ar�-rrcrrc-rce�crvcn�crrc-r-crrrcr b. Self -Insurance Fund Component Units: 1. Hutchinson Economic Development Authority (EDA) 2. Hutchinson Housing Redevelopment Authority (HRA) - HUTCHINSON CITY COUNCIL H UTC H I N SO N Request for Board Action A CITY ON PURPOSE. Consideration of Authorizing the City Application for the MPCA FY24 SWC Agenda Item: Resiliency Grant Department: PW/Eng LICENSE SECTION Meeting Date: 12/12/2023 Application Complete N/A Contact: John Paulson Agenda Item Type: Presenter: John Paulson Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: City staff has identified additional grant funding availability through the MPCA for Stormwater, Wastewater, and Community (SWC) Resilience. The grant application process has a due date of December 14, 2023. The application is currently under development and will likely include some cost share commitments from the City, to be funded using budgeted funding for 2024. The MPCA has $750,000 in available grant funding for this round in 2024. The City's current grant project was phased to distribute the cost over multiple years. The grant funds being pursued are for phase 2 since we were not able to complete the entire city in phase 1. The grant will be used to complete a hydrologic and hydraulic (H&H) modeling of the south half of the City storm sewer system. The modeling will identify parts of the system that have adequate drainage capacity as well as those that do not. The information will be used to prioritize drainage improvements and to inform us of future system needs due to changes in precipitation intensity and duration. The project budget and workplan are attached for reference. The total project cost is $135,044 and the grant application will be requesting $81,200 from the MPCA, or 60% of the total project cost. The total cost includes in -kind staff time estimated at $21,514. The City cash contribution is $32,330 if awarded the grant. This grant, if awarded, would greatly reduce what is planned for the project as it is included in the 2025 City CIP with a cash outlay of $100,000 (a savings of $67,670). City staff will be available to answer any questions that you may have at the meeting. We recommend approval to submit the MPCA SWC Resiliency Grant. BOARD ACTION REQUESTED: Approval to submit grant application. Fiscal Impact: Funding Source: FTE Impact: Budget Change: New Bu Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A MMINNESOTA POLLUTION CONTROL AGENCY 520 Lalayelle Road North St. Paul, MN 55155-4194 Planning Grants for Stormwater, Wastewater, and Community Resilience Request for Proposals (RFP) The RFP assists applicants in applying for state grants. This document describes the State Fiscal Year 2024 (FY24) Planning Grants for Stormwater, Wastewater, and Community (SWC) Resilience, including information on who may apply for funding, activities eligible for funding and other information that will help the applicants plan their project and submit a competitive application. Applications are due no later than Thursday, December 14, 2023, at 4:OOpm Central Time (CT). The applicant should check the SWIFT Supplier Portal and the Minnesota Pollution Control Agency (MPCA) Planning Grants for SWC Resilience webpage for any updates. Contents 1. Project overview...................................................................................................................................... 1 2. Funding....................................................................................................................................................2 3. Eligible and ineligible applicants............................................................................................................... 2 4. Eligible and ineligible projects.................................................................................................................. 2 S. Eligible and ineligible costs....................................................................................................................... 4 6. Priorities.................................................................................................................................................. 5 7. Application instructions........................................................................................................................... 5 8. Application submission instructions......................................................................................................... 5 9. Application questions............................................................................................................................... 5 10. Application review process....................................................................................................................... 6 11. Grantee responsibilites............................................................................................................................ 6 Exhibit A: Application evaluation score sheet................................................................................................... 9 The Grant Application Form, Workplan and Budget, Sample Grant agreement, Questions and Answers, and any addendums can be found in the SWIFT Supplier Portal. 1. Project overview Minnesota's climate is changing — it is happening here and now and will continue well into the future. We see the harmful effects in communities across our state today, from our own health and safety to overwhelmed infrastructure, damaged property, dying trees and culturally important native species, and the inability of population centers to cool off overnight. Climate trends identified through monitoring over decades of changes in temperature and precipitation, snow depth, and lake ice, storms and droughts, our growing season, and more show that Minnesota is becoming warmer and wetter, with more damaging rains, and cold weather warming. More extreme heatwaves and extended periods of drought alternating with intense precipitation are expected in the future. During the 2023 Legislative Session, ongoing funding was appropriated in the Omnibus Environment, Natural Resources, Climate, and Energy bill H.F. 2310, Article 1, Sec. 2, Subdivision 2(k) to support communities in planning and implementing projects for climate resiliency and water infrastructure that will allow for adaptation for a changing climate. This Request for Proposals provides an opportunity for communities to assess vulnerabilities and plan for the effects of Minnesota's changing climate in three areas: how to increase resilience to stormwater and reduce localized flood risk, how to improve the resilience of wastewater systems, and how to reduce human health effects and adapt community services, ordinances, and public spaces to the changing climate. 2. Funding Approximately $750,000 is available for planning projects to be awarded during FY24. Grant projects must be completed no later than June 30, 2025. There is no minimum and no maximum grant award under this RFP. Match requirement The minimum match requirement is 10% (ten percent) of the grant amount, either cash or in -kind, provided by any organization involved in the project. Grantees will be expected to track and report all match provided for the project by kind and source, even if the amount exceeds 10%. This will assist MPCA with better understanding of project funding needs for future grant solicitations. Reimbursement schedule Grant funding for eligible costs of the planning project will be reimbursed during and upon completion of the approved project with approved invoices. Invoices for expenses incurred to -date may be submitted as frequently as monthly. Grantees are required to submit their first invoice no later than 6 (six) months or midway through the project, whichever comes first. A final invoice for payment of remaining grant funds expended by the project is required to be submitted at the completion of the project. Payment of the final 10% of grant funds will be held back until the project is completed satisfactorily and all deliverables have been submitted and approved. Invoices are sent directly to MPCA Accounts Payable with cc to the MPCA Authorized Representative. 3. Eligible and ineligible applicants Eligible applicants Tribal Nations, and Local Governmental Units (LGUs) including only cities, counties, towns (townships), soil and water conservation districts (SWCDs), water management organizations (WMOs), water districts (WDs), regional development commissions (RDCs), and the Metropolitan Council of the Twin Cities region, and that are located within the geographic boundaries of the state of Minnesota are eligible applicants. Ineligible applicants • Any other organization or individual not listed above as an eligible applicant. • Entities that are currently suspended or debarred by the State of Minnesota and/or the federal government are ineligible applicants. • The MPCA may also deem an applicant ineligible because of, but not limited to: enforcement issues, labor standards, tax status, past grant performance, or other such issues. 4. Eligible and ineligible projects Eligible projects Eligible projects are those that conduct planning for increased resilience to the impacts of Minnesota's changing climate (i.e. already becoming warmer and wetter with more damaging rains and cold weather warming, and expected to have more extreme heat and drought in the future) within any of the following three focus areas: stormwater, wastewater, community resilience. Some examples of eligible planning projects in the three focus areas: Storm water resilience: • Vulnerability assessment using a hydrologic/hydraulic model such as XP-SWMM or equivalent to identify areas (e.g. creek corridors, bridges, intersections, etc.) within a tribal or local governmental unit that are at risk for flooding. Includes assessment of changes in future precipitation with storm events of greater intensity and frequency to evaluate how to optimize resiliency of stormwater infrastructure, including use of green infrastructure and nature -based solutions. • Inventory of water infrastructure issues developed using new or existing modeling information to identify critical impacts (e.g. number of structures flooded, frequency of flooding, social vulnerability, local environmental impacts, etc.), including but not limited to consideration of existing asset management plans. Provides a prioritized list of critical areas needing infrastructure improvements (including use of green infrastructure and nature -based approaches) to increase resilience. • Feasibility study that compares design alternatives (e.g. replacing small or undersized stormwater infrastructure, adding surface or underground stormwater storage areas, increasing infiltration of stormwater, adding green infrastructure and nature -based installations, etc.) to address known or predicted areas of flooding within a tribal or local governmental unit. Identifies a preferred alternative with sufficient information to support consideration for future construction funding. • Plan development (conducted in-house or by contract) for the bidding or contracting, design work, modeling, etc. needed for self -funded projects (not on the Project Priority List (PPL) / Intended Use Plan (IUP)) that have been identified by a tribal or local governmental unit risk assessment or adaptation/resilience plan. Wastewater resilience: • Risk assessment of wastewater facilities using the Environmental Protection Agency (EPA) Climate Resilience Evaluation and Awareness Tool (CREAT) or similar analysis to discover which extreme weather hazards pose significant challenges to the utility, identify the critical assets at risk, and explore various actions to protect them. • Climate vulnerability assessment of public and/or privately -owned sewer and/or sewer sheds. • Planning and investigative work for climate resiliency of wastewater, sewer, and or Inflow & Infiltration (I&I) projects to determine implementation plan for self -funded projects (that are not anticipated to be part of a Facilities Plan for a Public Facilities Authority (PFA) /Project Priorities List (PPL) ) • Plan development (conducted in-house or by contract) for the bidding or contracting, design work, modeling, etc. needed for self -funded projects (not on the Project Priority List (PPL) / Intended Use Plan (IUP)) that have been identified by a risk assessment or adaptation/resilience plan (CREAT or other). Community resilience: • Community -wide climate vulnerability assessment involving stakeholders and authentic community engagement processes to identify community assets (such as parks and recreational areas, green infrastructure installations, roads, public buildings, local power infrastructure, etc.) at risk from more extreme weather and changing climate conditions, as well as local population segments at greater risk from harm, stress or displacement due to climate change. • Community -wide climate adaptation planning involving stakeholders and authentic community engagement to identify specific strategies, policies, actions, and responsible parties needed for equitable adaptation. • Plan development (costing, bidding or contracting, design work, modeling, etc.) needed for projects that will increase the climate resilience of one or more community assets identified by a community -wide vulnerability assessment or climate adaptation plan. Ineligible projects Projects that do not fit any of the three focus areas — stormwater, wastewater, or community resilience — and projects that are not planning -oriented are ineligible. S. Eligible and ineligible costs Eligible costs Any cost that is directly related to the workplan tasks of an eligible planning project and not deemed ineligible below or by MPCA staff. Ineligible costs Ineligible costs include costs that are not directly related to the workplan tasks of an eligible planning project. The following costs, including but not limited to, even if they are directly related to the project, are ineligible: • Any expenses incurred before the contract is fully executed including applicant's expense for preparing the eligibility and cost applications • Bad debts, late payment fees, finance charges or contingency funds, interest, and investment management fees • Attorney fees • Employee worksite parking • Lobbying, lobbyists and political contributions • Mark-up on purchases and/or subcontracts • Taxes, except sales tax on eligible equipment and expenses • Activities associated with permit fees • Activities addressing enforcement actions or that involve a financial penalty • Memberships (including subscriptions and dues) • Reimbursement to or stipends to non -staff stakeholders for their attendance at stakeholder participation meetings or their related expenses • Food (other than staff per diem) • Alcoholic refreshments • Entertainment, gifts, prizes and decorations • Merit awards and bonuses • Donations and fundraising • Computer(s), tablets, and software, unless unique to the project and specifically approved by the MPCA as a direct expense • Purchase or rental of mobile communication devices such as pagers, cell phones, and personal data assistants (PDAs), unless unique to the project and specifically approved by the MPCA. 4 6. Priorities It is the policy of the State of Minnesota to ensure fairness, precision, equity and consistency in competitive grant awards. This includes implementing diversity and inclusion in grant -making. The Policy on Rating Criteria for Competitive Grant Review establishes the expectation that grant programs intentionally identify how the grant serves diverse populations, especially populations experiencing inequities and/or disparities. This grant prioritizes projects that are located in communities with higher concentrations of low-income residents, and people of color, including tribal communities, and will benefit these communities. Click on the link below for MPCA's criteria and interactive mapping tool (recently updated on the MPCA website with data from a five-year 2016-2020 summary of the American Community Survey) to see if the project is located in an area of concern for Environmental Justice: http://mpca.maps.arcgis.com/apps/MapSeries/index.html?appid=f5bf57c8dac24404b7f8efl717f57d00. Note: The map is subject to change. The MPCA will use the most current map when evaluating proposals. This grant also prioritizes: Projects located in Minnesota outside of the 7-county Twin Cities Region (compromised of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties). • Stormwater projects that address localized flooding. 7. Application instructions All applicants must complete the Grant Application Form, work plan and budget. Applications without all forms submitted will be deemed ineligible. 8. Application submission instructions Applications must be received electronically by the MPCA by Thursday, December 14, 2023, at 4pm CT. Application submissions received after the deadline will not be considered eligible. Applications must be submitted through the SWIFT Supplier Portal. Note: The RFP is termed an "Event" within SWIFT. MPCA is not responsible for any errors or delays caused by technology -related issues. Applicants do not need to log in to view the RFP and associated documents in the SWIFT system. Applicants interested in applying will need to register as a bidder in the system by clicking on the SWIFT Supplier Portal, then Register for an Account and Register as a Bidder. Applicants should allow up to two business days to become registered as a Bidder. Questions regarding submitting an application can be directed to the Vendor Assistance Help Desk at 651-201-8100, option 1 or by clicking on Supplier Portal Help within the SWIFT Supplier Portal. Applications submitted via any other method, including but not limited to email, fax, mail, in -person deliveries, will not be accepted. 9. Application questions The MPCA is obligated to be transparent in all aspects surrounding grant work. To meet this obligation, all questions must be submitted in the same manner, and answers are only provided via the SWIFT Supplier Portal. It is the applicant's responsibility to check the SWIFT Supplier Portal and MPCA website for the most recent updates. Applicants who have any questions regarding this RFP must email questions to grants.pca@state.mn.us, subject line: "FY 24 Planning Grants for SWC Resilience", no later than Monday, December 11, 2023. Answers to questions will be posted frequently in the SWIFT Supplier Portal. MPCA personnel are not authorized to discuss this RFP with applicants outside of the Question and Answer forum. Contact regarding this RFP with any MPCA personnel may result in disqualification. 10. Application review process Applicants are encouraged to review the Evaluation Score -Sheet (Exhibit A) before submitting their application and make sure they are providing all the relevant information. Formal review of applications will be conducted by a team of MPCA staff. Applications received by the grant deadline will be reviewed by MPCA staff using a two-step process. Late applications will not be considered for review. Step 1: Eligibility review The MPCA will determine if eligibility requirements are met. Any application found to be ineligible will be eliminated from further evaluation. Minimum requirements: • Applicant is eligible as described in section 3. • Project is eligible as described in section 4. • All required forms submitted by the deadline. Step 2: Application scoring Only applications meeting the eligibility criteria under Step 1 will be considered for scoring in Step 2. Reviewers will evaluate applications per project using the weighted criteria listed in Exhibit A. In addition to the ability to partially award projects, the MPCA reserves the right to refrain from awarding any grants. In the event two applicants are tied in the scoring and there isn't sufficient funding to award both projects, the MPCA will select the applicant with the highest score in the following criteria, in descending order, until a winner is able to be determined: • Environmental Justice • Project located outside the 7-county Twin Cities Region • Stormwater project that addresses localized flooding Notification All applicants will be notified by MPCA staff after approximately 60 days of application due date. Applicants selected for funding will be contacted concerning the next steps in the award process, including execution of the appropriate agreements with follow-up by the grantee within a reasonable time frame. 11. Grantee responsibilities Awardees are required to be a registered vendor in SWIFT and will sign the grant agreement using Docusign. To register, go to the Supplier Portal webpage in SWIFT and click on the Register for an Account link and then Register as a Supplier. Grant agreement Each awardee must enter into a grant agreement. The agreement will address the conditions of the award. Once the agreement is signed, the recipient is required to comply with all conditions. Reporting requirements Email updates about the status of the project are required to be provided to the MPCA Authorized Representative whenever an invoice is submitted to MPCA Accounts Payable. The MPCA Authorized Representative will not approve an invoice through the state system without this project update. A Grant Project Final Report, in a format provided to the Grantee by the MPCA, is required to be submitted to the MPCA Authorized Representative at the same time as the final invoice is submitted to MPCA Accounts Payable. Public data Applications are private or nonpublic until opened. Once the applications are opened, the name and address of the applicant and the amount requested is public. All other data in an application is private or nonpublic data until all agreements are fully executed. After all agreements are fully executed, all remaining data in the applications is public with the exception of trade secret data as defined and classified in Minn. Stat. § 13.37. A statement by a grantee that the application is copyrighted or otherwise protected does not prevent public access to the application (Minn. Stat. § 13.599, subd. 3). Conflict of interest MPCA will take steps to prevent individual and organizational conflicts of interest, both in reference to applicants and reviewers per Minn. Stat.§1613.98 and Conflict of Interest Policy for State Grant -Making. Organizational conflicts of interest occur when: • a grantee or applicant is unable or potentially unable to render impartial assistance or advice to the Department due to competing duties or loyalties • a grantee's or applicant's objectivity in carrying out the grant is or might be otherwise impaired due to competing duties or loyalties In cases where a conflict of interest is suspected, disclosed, or discovered, the applicants or grantees will be notified and actions may be pursued, including but not limited to disqualification from eligibility for the grant award or termination of the grant agreement. Grant Monitoring Minn. Stat. §1613.97 and Policy on Grant Monitoring require the following: • One monitoring visit during the grant period on all state grants of $50,000 and higher. • Annual monitoring visits during the grant period on all grants of $250,000 and higher. • Conducting a financial reconciliation of grantee's expenditures at least once during the grant period on grants of $50,000 and higher. For this purpose, the grantee must make expense receipts, employee timesheets, invoices, and any other supporting documents available upon request by the State. The monitoring schedule will be determined at a later date. Grantee Bidding Requirements For Municipalities Grantees that are municipalities must follow: • The contracting and bidding requirements in the Uniform Municipal Contracting Law as defined in Minn. Stat. §471.345. • The requirements of prevailing wage for grant -funded projects that include construction work of and have a total project cost of $25,000 or more, per Minn. Stat. §§177.41 through 177.44 These rules require that the wages of laborers and workers should be comparable to wages paid for similar work in the community as a whole. The grantee must not contract with vendors who are suspended or debarred in MN: http://www.mmd.admin.state.mn.us/debarredreport.asp. Audits Per Minn. Stat. § 1613.98 Subdivision 8, the grantee's books, records, documents, and accounting procedures and practices of the grantee or other party that are relevant to the grant or transaction are subject to examination by the granting agency and either the legislative auditor or the state auditor, as appropriate. This requirement will last for a minimum of six years from the grant agreement end date, receipt, and approval of all final reports, or the required period of time to satisfy all state and program retention requirements, whichever is later. Affirmative Action and Non -Discrimination requirements for all Grantees: A. The grantee agrees not to discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status in regard to public assistance, membership or activity in a local commission, disability, sexual orientation, or age in regard to any position for which the employee or applicant for employment is qualified. Minn. 5tat. §363A.02. The grantee agrees to take affirmative steps to employ, advance in employment, upgrade, train, and recruit minority persons, women, and persons with disabilities. The grantee must not discriminate against any employee or applicant far employment because of physical or mental disability in regard to any position for which the employee or applicant for employment is qualified. The grantee agrees to take affirmative action to employ, advance in employment, and otherwise treat qualified disabled persons without discrimination based upon their physical or mental disability in all employment practices such as the following: employment, upgrading, demotion or transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. Minnesota Rules, part 5000.3500. C. The grantee agrees to comply with the rules and relevant orders of the Minnesota Department of Human Rights issued pursuant to the Minnesota Human Rights Act. Voter Registration Requirement: The grantee will comply with Minn. 5tat. § 201,162 by providing voter registration services for its employees and for the public served by the grantee. MMINNESOTA POLLUTION CONTROL AGENCY Exhibit A: Application evaluation score sheet A 100 — point scale will be used to evaluate eligible applications and develop final recommendations. Evaluation Category Maximum Points Project has clearly defined objectives, tasks that describe how those objectives will be 20 met, a realistic timeframe, and a detailed budget that includes reasonable and cost- effective expenses. Organizations and specific individuals that will do the work on the project are well- 15 qualified for their roles with the knowledge, skills and abilities to carry out the project successfully. Project is located in communities within area(s) of concern for environmental justice 15 and will benefit these communities. Project methodology effectively incorporates consideration of current climate trends 10 and projections of future climate conditions and how the impacts are anticipated to affect the general location of the project. The project will address a much -needed resiliency planning issue that can make a 15 meaningful difference to the community's preparedness for Minnesota's changing climate, including human health impacts. The project will provide results that position a tribal/local government to take further 15 action, assign responsibility for implementation, and/or pursue further funding to implement the resilience project(s) for which planning was completed The project is located in Minnesota outside the 7-county Twin Cities region. 5 The project is a stormwater project to address localized flooding. 5 otal 100 MMINNESOTA POLLUTION CONTROL AGENCY 520 Lafayette Road North St. Paul, MN 55155-4194 Planning Grants for Stormwater, Wastewater, and Community Resilience Budget Doc Type: Grant Application Total Cost category Cost ($/unit) Not to Quantity (Qty/Unit) Grant funds Budgeted Budgeted in- budgeted Total budget Exceed cash match kind match match (11 + III (I + IV) Task 1 of 8: Data Collection/Review Et Watershed Delineation Task 1a: Data Collection Et Review City Public Works Lead $86.00 hr 4 hr $344.00 $344.00 $344.00 City Environmental Lead $68.00 hr 24 hr $1,632.00 $1,632.00 $1,632.00 City Engineering Technician $63.00 hr 60 hr $3,780.00 $3,780.00 $3,780.00 SEH Project Manager $220.00 hr 6 hr $1,320.00 $1,320.00 $1,320.00 SEH QAQC Lead $195.00 hr 6 hr $1,170.00 $1,170.00 $1,170.00 H Modeler F $150.00 hr 16 hr $2,400.00 $2,4010.00 $2,400.00 sk 1a - Total $0.00 $4,890.00 $5,756.00 $10,646.00 1 $10,646.00 (Task 1b: Watershed Delineation City Public Works Lead $86.00 hr 2 hr $172.00 $172.00 $172.00 City Environmental Lead $68.00 hr 4 hr $272.00 $272.00 $272.00 City Engineering Technician $63.00 hr 8 hr $504.00 $504.00 $504.00 SEH Project Manager $220.00 hr 2 hr $440.00 $440.00 $440.00 SEH QAQC Lead $195.00 hr 10 hr $1,950.00 $0.00 $1,950.00 SEH Modeler $150.00 hr 40 hr $6,000.00 $6,000.00 $6,000.00 Task 1b -Total $1,950.00 $6,440.00 1 $948.00 $7,388.00 $9,338.00 ITask 1 Grand Total $1.950.00 $11,330.00 $6,704,00 $18,034,00 $19.984.00 1 Task 2 of 8: XPSWMM Model Development - Existing Conditions Task 2a: Develop Existing Conditions Model City Public Works Lead $86.00 hr 2 hr $172.00 $172.00 $172.00 City Environmental Lead $68.00 hr 2 hr $136.00 $136.00 $136.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 14 hr $3,080.00 $0.00 $3,080.00 SEH QAQC Lead $195.00 hr 20 hr $3,900.00 $0.00 $3,900.00 SEH Modeler $150.00 hr 140 hr $21,000.00 $21,000.00 $21,000.00 Task 2a - Total $6,980.00 $21,000.00 $434.00 $21,434.00 $28,414.00 iTask 2b: Existing Conditions Model Calibration City Public Works Lead $86.00 hr 2 hr $172.00 $172.00 $172.00 City Environmental Lead $68.00 hr 4 hr $272.00 $272.00 $272.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 2 hr $440.00 $0.00 $440.00 SEH QAQC Lead $195.00 hr 6 hr $1,170.00 $0.00 $1,170.00 SEH Modeler $150.00 hr 24 hr $3,600.00 $0.00 $3,600.00 Task 2b - Total $5,210.00 $0.00 $570.00 $570.00 $5,780.00 Task 2 Grand Total $12.190.00 $�21-001).00 S1,004,D0 $22.004.01) $34.194.00 p-t2-27e-fy20-1 • 12/26/19 https://www.pca.state.mn.us • Available in alternative formats • 651-296-6300 • 800-657-3864 • Use your preferred relay service Page 1 of 5 Task 3 of 8: Review Existing Conditions Results Task 3a: Flood Inundation Assessment for Existing Conditions City Public Works Lead $86.00 hr 2 hr $172.00 $172.00 $172.00 City Environmental Lead $68.00 hr 4 hr $272.00 $272.00 $272.00 City Engineering Technician $63.00 hr 4 hr $252.00 $252.00 $252.00 SEH Project Manager $220.00 hr 2 hr $440.00 $0.00 $440.00 SEH QAQC Lead $195.00 hr 2 hr $390.00 $0.00 $390.00 SEH Modeler $150.00 hr 8 hr $1,200.00 $0.00 $1,200.00 Task 3a - Total $2,030.00 $0.00 $696.00 $696.00 $2,726.00 ITask 3b: Pipe Capacity Assessment for Existing Conditions City Public Works Lead $86.00 hr 2 hr $172.00 $172.00 $172.00 City Environmental Lead $68.00 hr 2 hr $136.00 $136.00 $136.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 2 hr $440.00 $0.00 $440.00 SEH QAQC Lead $195.00 hr 2 hr $390.00 $0.00 $390.00 SEH Modeler $150.00 hr 8 hr $1,200.00 $0.00 $1,200.00 Task 3b - Total $2,030.00 $0.00 $434.00 $434.00 $2,464.00 Task 3c: Analysis of Future Rainfall Scenarios with Existing Stormwater System City Public Works Lead $86.00 hr 2 hr $172.00 $172.00 $172.00 City Environmental Lead $68.00 hr 2 hr $136.00 $136.00 $136.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 2 hr $440.00 $0.00 $440.00 SEH QAQC Lead $195.00 hr 4 hr $780.00 $0.00 $780.00 SEH Modeler $150.00 hr 12 hr $1,800.00 $0.00 $1,800.00 Task 3c - Total $3,020.00 $434.00 $434.00 $3,454.00 Task 3d: Vulnerability Assessment for Existing Conditions City Public Works Lead $86.00 hr 4 $344.00 $344.00 $344.00 City Environmental Lead $68.00 hr 2 ..1 $136.00 $136.00 $136.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 2 hr $440.00 $0.00 $440.00 SEH QAQC Lead $195.00 hr 2 hr $390.00 $0.00 $390.00 SEH Modeler $150.00 hr hr $1,200.00 $0.00 $1,200.00 Task 3d - Total $2,030.00 1- $606.00 $606.00 $2,636.00 Task 3e: Critical Infrastructure Assessment for Existing Conditions City Public Works Lead $86.00 hr 4 $344.00 $344.00 $344.00 City Environmental Lead $68.00 hr 2 hr $136.00 $136.00 $136.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 2 hr $440.00 $0.00 $440.00 SEH QAQC Lead $195.00 hr 2 hr $390.00 $0.00 $390.00 SEH Modeler $150.00 hr 8 hr $1,200.00 $0.00 $1,200.00 Task 3e - Total $2,030.00 $606.00 $606.00 $2,636.00 ITask 3f: Damage Potential Assessment for Existing Conditions City Public Works Lead $86.00 hr 2 hr $172.00 $172.00 $172.00 City Environmental Lead $68.00 hr 2 hr $136.00 $136.00 $136.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 2 hr $440.00 $0.00 $440.00 SEH QAQC Lead $195.00 hr 4 hr $780.00 $0.00 $780.00 SEH Modeler $150.00 hr 12 hr $1,800.00 $0.00 $1,800.00 Task 3f - Total $3,020.00 $0.00 $434.00 $434.00 $3,454.00 Task 3 Grand Total $14,160.00 $0.00 $3.210.00 $3:210A0 $17,370.OU p-t2-27e-fy20-1 • 12126119 https://www.pca.state.mn.us • Available in alternative formats • 651-296-6300 • 800-657-3864 • Use your preferred relay service Page 2 of 5 Task 4 of 8: Develop Proposed Improvements Et Analyze with XPSWMM Model Task 4a: Develop and Evaluate Concepts for Stormwater Management Improvements City Public Works Lead $86.00 hr 4 hr $344.00 $344.00 $344.00 City Environmental Lead $68.00 hr 4 hr $272.00 $272.00 $272.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 4 hr $880.00 $0.00 $880.00 SEH QAQC Lead $195.00 hr 8 hr $1,560.00 $0.00 $1,560.00 Modeler p $150.00 hr 40 hr $6,000.00 $0.00 $6,000.00 4a - Total $8,440.00 $0.00 $742.00 $742.00 $9,182.00 (Task 4b: Estimate Project Implementation Costs City Public Works Lead $86.00 hr 4 hr $344.00 $344.00 $344.00 City Environmental Lead $68.00 hr 4 hr $272.00 $272.00 $272.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 4 hr $880.00 $0.00 $880.00 SEH QAQC Lead $195.00 hr 4 hr $780.00 $0.00 $780.00 SEH Modeler $150.00 hr 32 hr $4,800.00 $0.00 $4,800.00 Task 4b - Total $6,460.00 $0.00 $742.00 $742.00 $7,202.00 ITask 4 Grand Total 514.900.00 S3.C.3 S1,484.00 $1,484.04 $16,384,00 I Task 5 of 8: Review Proposed Conditions Results Task 5a: Flood Inundation Assessment for Proposed Conditions City Public Works Lead $86.00 hr 2 hr $172.00 $172.00 $172.00 City Environmental Lead $68.00 hr 4 hr $272.00 $272.00 $272.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 2 hr $440.00 $0.00 $440.00 SEH QAQC Lead $195.00 hr 2 hr $390.00 $0.00 $390.00 Modeler p $150.00 hr 8 hr $1,200.00 $0.00 $1,200.00 5a - Total $2,030.00 $0.00 $570.00 $570.00 $2,600.00 iTask 5b: Pipe Capacity Assessment for Proposed Conditions City Public Works Lead $86.00 hr 2 hr $172.00 $172.00 $172.00 City Environmental Lead $68.00 hr 4 hr $272.00 $272.00 $272.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 2 hr $440.00 $0.00 $440.00 SEH QAQC Lead $195.00 hr 2 hr $390.00 $0.00 $390.00 SEH Modeler $150.00 hr 8 hr $1,200.00 $0.00 $1,200.00 Task 5b - Total $2,030.00 $0.00 $570.00 $570.00 $2,600.00 ITask 5c: Analvsis of Future Rainfall Scenarios with Proposed Stormwater Svstem City Public Works Lead $86.00 hr 4 hr $344.00 $344.00 $344.00 City Environmental Lead $68.00 hr 4 hr $272.00 $272.00 $272.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 2 hr $440.00 $0.00 $440.00 SEH QAQC Lead $195.00 hr 4 hr $780.00 $0.00 $780.00 SEH Modeler $150.00 hr 0 hr $900.00 $0.00 $900.00 Task 5c - Total $2,120.00 $0.00 $742.00 $742.00 $2,862.00 Task 5d: Vulnerability Assessment for Proposed Conditions City Public Works Lead $86.00 hr 2 hr $172.00 $172.00 $172.00 City Environmental Lead $68.00 hr 2 hr $136.00 $136.00 $136.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 2 hr $440.00 $0.00 $440.00 SEH QAQC Lead $195.00 hr 2 hr $390.00 $0.00 $390.00 SEH Modeler $150.00 hr 4 hr $600.00 $0.00 $600.00 Task 5d - Total $1,430.00 $0.00 $434.00 $434.00 $1,864.00 p-t2-27e-fy20-1 • 12/26/19 https://www.pca.state.mn.us • Available in altemative formats • 651-296-6300 • 800-657-3864 • Use your preferred relay service Page 3 of 5 Task 5e: Critical Infrastructure Assessment for Proposed Conditions City Public Works Lead $86.00 hr 2 hr $172.00 $172.00 $172.00 City Environmental Lead $68.00 hr 4 hr $272.00 $272.00 $272.00 City Engineering Technician $63.00 hr 4 hr $252.00 $252.00 $252.00 SEH Project Manager $220.00 hr 2 hr $440.00 $0.00 $440.00 SEH QAQC Lead $195.00 hr 2 hr $390.00 $0.00 $390.00 Modeler P $150.00 hr 4 hr $600.00 $0.00 $600.00 5e - Total $1,430.00 $0.00 $696.00 $696.00 $2,126.00 ITask 5f: Damage Potential Assessment for Proposed Conditions City Public Works Lead $86.00 hr 2 hr $172.00 $172.00 $172.00 City Environmental Lead $68.00 hr 2 hr $136.00 $136.00 $136.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 2 hr $440.00 $0.00 $440.00 SEH QAQC Lead $195.00 hr 4 hr $780.00 $0.00 $780.00 SEH Modeler $150.00 hr 8 hr $1,200.00 $0.00 $1,200.00 Task 5f - Total $2,420.00 $0.00 $434.00 $434.00 $2,854.00 ITask 5 Grand Total S11.460.00 $0.00 S3.446.00 $3A46.00 $14.906.00 1 Task 6 of 8: Community Outreach and Engagement Task 6a: Community Engagement City Public Works Lead $86.00 hr 4 hr $344.00 $344.00 $344.00 City Environmental Lead $68.00 hr 8 hr $544.00 $544.00 $544.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 4 hr $880.00 $0.00 $880.00 SEH QAQC Lead $195.00 hr 2 hr $390.00 $0.00 $390.00 Modeler P $150.00 hr 2 hr $300.00 $0.00 $300.00 6a - Total $1,570.00 $0.00 $1,014.00 $1,014.00 $2,584.00 Task 6b: Community Stormwater Map City Public Works Lead $86.00 hr 2 hr $172.00 $172.00 $172.00 City Environmental Lead $68.00 hr 6 hr $408.00 $408.00 $408.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr 4 hr $880.00 $0.00 $880.00 SEH QAQC Lead $195.00 hr 2 hr $390.00 $0.00 $390.00 SEH Modeler $150.00 hr 16 hr $2,400.00 $0.00 $2,400.00 Task 6b - Total I 1 $3,670.00 $0.00 $706.00 $706.00 $4,376.00 Task 6 Grand Total $5,240.00 $0.00 $1,720.00 $1,720.00 $6,960.00 p-t2-27e-fy20-1 • 12/26/19 https:/Avww.pca.state.mn.us • Available in alternative formats • 651-296-6300 • 800-657-3864 • Use your preferred relay service Page 4 of 5 Task 7 of 8: Prepare and Present Stormwater Resilience Plan Task 7a: Prioritize Stormwater Management System Improvements City Public Works Lead $86.00 hr 4 hr $344.00 $344.00 $344.00 City Environmental Lead $68.00 hr 2 hr $136.00 $136.00 $136.00 City Engineering Technician $63.00 hr 0 hr $0.00 $0.00 $0.00 SEH Project Manager $220.00 hr 4 hr $880.00 $0.00 $880.00 SEH QAQC Lead $195.00 hr 4 hr $780.00 $0.00 $780.00 SEH Modeler $150.00 hr 1 _ hr $1,800.00 $0.00 $1,800.00 Task 7a - Total $3,460.00 $0.00 $480.00 $480.00 $3,940.00 (Task 7b: Draft Stormwater Resilience Plan City Public Works Lead $86.00 hr 4 hr $344.00 $344.00 $344.00 City Environmental Lead $68.00 hr 4 hr $272.00 $272.00 $272.00 City Engineering Technician $63.00 hr 4 hr $252.00 $252.00 $252.00 SEH Project Manager $220.00 hr 12 hr $2,640.00 $0.00 $2,640.00 SEH QAQC Lead $195.00 hr 24 hr $4,680.00 $0.00 $4,680.00 SEH Modeler $150.00 hr 40 1P $6,000.00 $0.00 $6,000.00 Task 7b - Total $13,320.00 $0.00 $868.00 $868.00 $14,188.00 (Task 7c: Finalize Stormwater Resilience Plan City Public Works Lead $86.00 V11hr $344.00 $344.00 $344.00 City Environmental Lead $68.00 hr - hr $272.00 $272.00 $272.00 City Engineering Technician $63.00 hr hr $126.00 $126.00 $126.00 SEH Project Manager $220.00 hr hr $1,760.00 $0.00 $1,760.00 SEH QAQC Lead $195.00 hi hr $1,560.00 $0.00 $1,560.00 odeler pTaskM7c $150.00 h. hr $1,200.00 $0.00 $1,200.00 - Total $4,520.00 $0.00 $742.00 $742.00 $5,262.00 Task 7 Grand Total $21,300.00 $0.00 $2,090.00 $2,090.00 $23,390.00 Task 8 of 8: Final Report Et Project Deliverables Task 8a: Submit Final Grant Report City Public Works Lead $86.00 hr 4 $344.00 $344.00 $344.00 City Environmental Lead $68.00 hr $680.00 $680.00 $680.00 City Engineering Technician $63.00 hr $126.00 $126.00 $126.00 Task 8a - Total 1 $0.00 $1,150.00 1 $1,150.00 1 $1,150.00 Task 8b: Submit Project Deliverables City Public Works Lead $86.00 hr 2 hr $172.00 $172.00 $172.00 City Environmental Lead $68.00 hr 6 hr $408.00 $408.00 $408.00 City Engineering Technician $63.00 hr 2 hr $126.00 $126.00 $126.00 Task 8b - Total $0.00 $0.00 $706.00 $706.00 $706.00 Task 8 Grand Total $0.00 $0.00 $1,856.00 $1,856.00 $1,856.00 Project Grand Totals $81,200.00 $32,330.00 $21,514.00 $53,844.00 $135,044.00 p-t2-27e-fy20-1 • 12126119 https:/Avww.pca.state.mn.us • Available in alternative formats • 651-296-6300 • 800-657-3864 • Use your preferred relay service Page 5 of 5 MMINNESOTA POLLUTION CONTROL AGENCY 520 Lafayette Road North St. Paul, MN 55155-4194 Project title: Hutchinson Stormwater Resilience Plan — South Statement of project purpose(s) Planning Grants for Stormwater, Wastewater, and Community Resilience Project workplan Doc Type: Grant Application The City of Hutchinson South Stormwater Resilience Plan purpose is to develop a Stormwater Resilience Plan that identifies locations and causes of localized flooding, assesses damage potential and community vulnerability due to localized flooding, develops potential projects to reduce flooding and mitigate the effects of climate change, and estimates the cost of project implementation. The plan will focus on the area of the City that is south and west of the South Fork Crow River as shown on the study area map provided in the application. Public engagement will be conducted during the development of this Plan to obtain information about past flooding and provide educational opportunities for the public to learn about the City's stormwater infrastructure, climate change, and their ability to improve community resiliency. Goal statement, project deliverable(s), tasks, and subtasks Goal statement: The City of Hutchinson will achieve the following goals through the development of a Stormwater Resilience Plan: (1) Identify locations within the study area that are most prone to localized flooding by developing an XPSWMM model of the stormwater management infrastructure, (2) Identify feasible stormwater improvement projects that minimize localized flooding within the study area and develop corresponding implementation cost estimates, (3) Estimate the impact of climate change on existing stormwater infrastructure, and considering the proposed improvements, (4) Conduct a vulnerability assessment to identify locations where localized flooding impacts vulnerable populations for existing and proposed conditions, (5) Conduct a damage potential assessment to identify areas of greatest flood damage potential within the study area for existing and proposed conditions, (6) Conduct a critical infrastructure assessment to identify locations within the study area where critical infrastructure is at risk of flooding for existing and proposed conditions, (7) Engage the public to obtain input and share information throughout the planning process, and (8) Produce an actionable plan that clearly identifies feasible stormwater improvement projects, prioritizes projects for implementation, and provides corresponding implementation costs. Project deliverables: The primary deliverable will be a Stormwater Resilience Plan for the City of Hutchinson. This Plan will provide detailed information about available stormwater data, the XPSWMM modeling used to identify areas as having a high risk of localized flooding, and the results of the damage potential assessment, critical infrastructure assessment and vulnerability assessment for the study area. This Plan will also clearly identify projects which could be implemented to minimize localized flood risk within the study area during current and future climate conditions. These projects will be prioritized based on the results of the damage potential assessment, vulnerability assessment, critical infrastructure assessment and other factors. Implementation cost estimates will be developed for each of the recommended proposed projects. XPSWMM modeling will be conducted to estimate the expected benefits of the projects as it relates to localized flood risk, and community vulnerability. This Plan is expected to provide a comprehensive summary of the City's plan to increase stormwater resilience within the study area and will be used for future funding applications for project implementation. Task 1 of 8: Data Collection/Review and Watershed Delineation Subtask 1a: Data Collection/Review Brief description of activities involved: Previously completed stormwater studies and reports will be reviewed to better understand previously identified stormwater issues and priorities within the study area. The City's existing GIS database of the stormwater management system will also be reviewed to identify gaps in the data that are needed develop the Page 1 of 5 XPSWMM Model and conduct an accurate analysis of the City's stormwater management system. This gap analysis will then be used to develop a scope of work for data management and field data collection to be completed by the City. The data collected in the field will be added to the existing GIS database by the City to further improve the existing datasets. Timeframe: April —August 2024 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 1b: Watershed Delineation Brief description of activities involved: A comprehensive stormwater map will be developed in GIS including the City's stormwater databases, LiDAR-based topographic data, and soils mapping. This map will be used to delineate major and minor watersheds within the study area and assign hydrologic parameters to account for land cover and estimate runoff from each watershed. The watershed area and associated hydrologic parameters will be associated with a specific feature within GIS so that the data can be imported to XPSWMM at the correct location. Timeframe: June —August 2024 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Task 2 of 8: XPSWMM Model Development — Existing Conditions Subtask 2a: Develop Existing Conditions Model Brief description of activities involved: A hydrologic and hydraulic model of the study area will be developed using XPSWMM. This model will include a 2D modeling component that represents flood storage and overland flow patterns to simulate real -world conditions more accurately than a traditional 1 D model. This model will also provide inundation mapping showing flood -prone areas and potential flooding depths for all rainfall events analyzed. Timeframe: August — October 2024 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 2b: Existing Conditions Model Calibration Brief description of activities involved: Using information and photographs on localized flooding that has occurred in the past, the XPSWMM model will be calibrated to improve the overall accuracy and relevance of the modeling effort. Historic rainfall event data will be simulated and inundation maps will be generated and used to obtain feedback on the validity of the modeling results. The XPSWMM model parameters and input data will be modified as needed to produce results that match observations of past localizing flooding. Timeframe: October 2024 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Task 3 of 8: Review Existing Conditions Results Subtask 3a: Flood Inundation Assessment for Existing Conditions Brief description of activities involved: The XPSWMM modeling of the existing stormwater infrastructure will be used to map locations of localized flooding for various rainfall events based on rainfall events currently used for design. Timeframe: November 2024 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 3b: Pipe Capacity Assessment for Existing Conditions Brief description of activities involved: The XPSWMM modeling of the existing stormwater infrastructure will be used to develop a color -coded map of the modeled pipe segments to indicate which segments have anticipated flows above or below the system capacity. This result is intended to provide a visual of the undersized pipe segments which are likely contributing to the localized flooding estimated by the model. Timeframe: November 2024 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 3c: Analysis of Future Rainfall Scenarios with Existing Stormwater System Brief description of activities involved: The XPSWMM model of the existing stormwater infrastructure will be used to simulate potential future rainfall events to estimate the impact of climate change on flood risk. These parameters will be identified for a point 50 years from now which coincides with an estimated 50-yr lifespan of stormwater infrastructure installed today. Timeframe: November 2024 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Page 2 of 5 Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 3d: Vulnerability Assessment for Existing Conditions Brief description of activities involved: The flood inundation results produced in Subtask 3a will be overlaid with the MPCA's Environmental Justice mapping to identify flood risk within areas of vulnerable populations. This information will be used to identify proposed improvements to limit community vulnerability to flooding. Timeframe: November 2024 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 3e: Critical Infrastructure Assessment for Existing Conditions Brief description of activities involved: The flood inundation results produced in Subtask 3a will be overlaid with a GIS dataset developed by the City that identifies locations of critical infrastructure such as fire stations, drinking water wells, hospitals, etc. This information will be used to identify proposed improvements to limit impacts of flooding on critical infrastructure. Timeframe: November 2024 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 3f: Damage Potential Assessment for Existing Conditions Brief description of activities involved: The flood inundation results produced in Subtask 3a will be overlaid with the County parcel dataset with building values categorized. This information will be used to identify proposed improvements to limit damage potential caused by flooding within the community. Timeframe: November 2024 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Task 4 of 8: Developed Proposed Improvements and Analyze with XPSWMM Model Subtask 4a: Develop and Evaluate Concepts for Stormwater Management Improvements Brief description of activities involved: Stormwater management improvement project concepts will be developed and may include increasing pipe capacity, incorporating more stormwater detention and/or treatment, or rerouting drainage systems. Up to 7 project concepts will be developed based on the results described in Task 3. These projects will focus on reducing the localized flooding while minimizing risk and reducing the vulnerability within the study area. These projects will likely also incorporate a water quality improvement component that would contribute to the City's ongoing effort to improve the water quality of the Crow River which is an impaired stream. The project list will be compared to the City's Capital Improvement Plan to identify opportunities for cost savings by adding stormwater infrastructure improvements to a previously planned project. Timeframe: December 2024 — January 2025 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 4b: Estimate Project Implementation Costs Brief description of activities involved: Project implementation costs will be estimated for each of the proposed improvement projects and will include construction, engineering, and property acquisition costs. Timeframe: January 2025 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Task 5 of 8: Review Proposed Conditions Results Subtask 5a: Flood Inundation Assessment for Proposed Conditions Brief description of activities involved: The XPSWMM modeling of the proposed stormwater infrastructure will be used to map locations of localized flooding for various rainfall events based on rainfall events currently used for design. These results will be used to estimate the reduction in localized flooding associated with the proposed conditions. These results may also indicate unintended consequences of a proposed improvement such as increased downstream flooding, which will then be used to refine the proposed alternative. Timeframe: February 2025 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 5b: Pipe Capacity Assessment for Proposed Conditions Brief description of activities involved: The XPSWMM modeling of the proposed stormwater infrastructure will be used Page 3 of 5 to develop a color -coded map of the modeled pipe segments to indicate which segments have anticipated flows above or below the system capacity. These results will be used to visualize the improvement in pipe capacity associated with the proposed conditions. These results may also indicate unintended consequences of a proposed improvement such as decreased downstream pipe capacity, which will then be used to refine the proposed alternative. Timeframe: February 2025 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 5c: Analysis of Future Rainfall Scenarios with Proposed Stormwater System Brief description of activities involved: The XPSWMM model of the proposed stormwater infrastructure will be used to simulate potential future rainfall events to estimate the impact of climate change on the flood risk. These parameters will be identified for a point 50 years from now which coincides with an estimated 50-yr lifespan of stormwater infrastructure installed today. These results will estimate how the proposed improvements may alleviate localized flooding while considering effects of climate change. Timeframe: February 2025 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 5d: Vulnerability Assessment for Proposed Conditions Brief description of activities involved: The flood inundation results produced in Subtask 5a will be overlaid with the MPCA's Environmental Justice mapping to identify flood risk within areas of vulnerable populations. This information will be used to estimate the extent that the proposed improvements limit community vulnerability to flooding. Timeframe: February 2025 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 5e: Critical Infrastructure Assessment for Proposed Conditions Brief description of activities involved: The flood inundation results produced in Subtask 5a will be overlaid with a GIS dataset developed by the City that identifies locations of critical infrastructure such as fire stations, drinking water wells, hospitals, etc. This information will be used to estimate the extent that proposed improvements limit impacts of flooding on critical infrastructure. Timeframe: February 2025 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 5f: Damage Potential Assessment for Proposed Conditions Brief description of activities involved: The flood inundation results produced in Subtask 5a will be overlaid with the County parcel dataset with building values categorized. This information will be used to estimate the extent that proposed improvements limit damage potential caused by flooding within the community. Timeframe: February 2025 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Task 6 of 8: Community Outreach and Engagement Subtask 6a: Community Engagement Brief description of activities involved: Throughout the course of this planning effort, the City will lead the community engagement effort by informing the community of their intent to prepare this Stormwater Resilience Plan, invite them to provide input regarding previous flood events and impacts of flooding, and share information about the progress of the plan development and recommended mitigation strategies. Timeframe: May 2024 — May 2025 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 6b: Community Stormwater Map Brief description of activities involved: An interactive web -based map of the study area will be developed and used as a platform to compile community input. The community will be asked to add virtual "pins' to the map to identify areas of observed flooding and ideas for improving stormwater management within the study area. This map will be publicized in the local newspaper. Timeframe: June — October 2024 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Page 4 of 5 Task 7 of 8: Prepare and Present Stormwater Resilience Plan Subtask 7a: Prioritize Proposed Stormwater Management System Improvements Brief description of activities involved: The results of Task 5 will provide the primary framework for prioritizing proposed improvements to the stormwater management system, with a focus on reducing localized flood risk and vulnerability to flooding within the study area. An additional consideration for project prioritization will be the feasibility of adding a stormwater improvement to an already planned City project, which can result in significant cost savings for implementation. Timeframe: February — March 2025 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead) Subtask 7b: Draft Stormwater Resilience Plan Brief description of activities involved: A draft Stormwater Resilience Plan will be prepared and will include a description of the work completed as part of the preceding tasks, maps of the study area showing locations of localized flooding for current and future climate conditions, results of the risk and vulnerability assessments, and proposed projects for lessening the impacts of localized flooding and climate change. Timeframe: March 2025 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 7c: Finalize Stormwater Resilience Plan Brief description of activities involved: The draft Stormwater Resilience Plan will be modified to incorporate public input and comments provided by City staff. Timeframe: April 2025 Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead), Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Task 8 of 8: Final Report and Project Deliverables Subtask 8a: Submit Grant Final Report Brief description of activities involved: Will provide a final grant project report using the MPCA template approximately one month prior to the end of the grant agreement on June 30, 2025, or at completion of the project, whichever occurs first. Will respond promptly to any requests by the MPCA authorized representative for additional information and/or corrections to the report. Timeframe: May -June 2025 Name and Title of Person(s) Responsible: John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Subtask 8b: Submit Project Deliverables Brief description of activities involved: Will provide electronic files of all project deliverables to the MPCA authorized representative prior to the end of the grant agreement on June 30, 2025, or at the completion of the project, whichever occurs first. Timeframe: May -June 2025 Name and Title of Person(s) Responsible: John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon Fitzpatrick (City Engineering Tech) Page 5 of 5 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE 12/12/23 Cheick Date Check # Vendor 1 Description Amount 12/01/2023 113977 VOID VOIDED CHECK - 12/01/2023 113978 VOID VOIDED CHECK - 12/Ol/2023 113979 VOID VOIDED CHECK - 12/01/2023 EFT EFTPS Payroll Report 11/12/23 -11/25 23 72 014.86 12/01/2023 EFT Child Support Payroll Repm 11112/23 - 11/25/23 1,102.90 12/01/2023 EFT IMN Dept of Revenue Pa roll Report 11/12/23 - 11/25/23 14,109.72 12/01/2023 EFT JUNUM Voluntary Insurance Pa roll Report 11/12/23 - 11/25/23 383.34 12/01/2023 EFT IPERA Payroll Report 11/12/23 - 11/25/23 52,238.70 12/01/2023 EFT lFurther HSA Payroll Re rt 11/12/23 - 11/25/23 15,671.43 12/01/2023 EFT IMission Square Pa roll Report 11/12/23 -11 25 23 4,384.93 12/01/2023 EFT IVOYA Payroll Report 11/12/23-11/25/23 460.00 12101/2023 EFT JMNDCP Payroll Report 11/12/2.3 - 11/25/23 325.00 12/01/2023 113980 JNCPERS Payroll Report 11/12/23 - 11/25/23 192.00 12/01/2023 113981 IHART Pa roll Report 11/12 23 - 11/25/23 521.41 12/12/2023 113982 ACE HARDWARE - 1315 REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 236.18 1.2_./12 2023 113983 ACE HARDWARE - 1790 POSTAGE - FIRE 16.00 12/12/2023 113984 ACE HARDWARE - 1825 KEY - POLICE 5.78 12/12/2023 113985 ALLINA HEALTH SYSTEM TRAINING EXPENSES - FIRE 847.53 12/12/2023 113986 AMERICAN BOTTLING CO COST OF GOODS SOLD - LIQUOR HUTCH 334.84 12/12/2023 113987 AMPLIFY FOR CHANGE SUPPORT TO MPCA GRANT - CREEKSIDE 1,400.00 12/12/2023 113988 ARMSTRONG, DIANNA M TRANSCRIPT- LEGAL 50.00 12/12/2023 113989 ARTISAN BEER COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 570.55 12/12/2023 113990 AUTO VALUE - GLENCOE SHOP SUPPLIES - HATS 26.99 12/12/2023 113991 B & C PLUMBING & HEATING INC HOME IMPRV LOAN - HRA 2,975.00 12/1212023 113992 BELLBOY CORP COST OF GOODS SOLD - LIQUOR HUTCH 5,588,88 12/12/2023 113993 BENNY'S MEAT MARKET TURKEY PROCESSING - POLICE 125.00 12/12/2023 113994 BERNICK'S COST OF GOODS SOLD - LIQUOR HUTCH 968.16 12112/2023 113995 BFG SUPPLY CO PERLITE - CREEKSIDE 7,744.88 12112/2023 113996 BOBBING BOBBER BREWING CO COST OF GOODS SOLD - LIQUOR HUTCH 611.53 12/12/2023 113997 BOLTON & MENK INC OTTER & CAMPBELL LAKES - ENG 17,390.50 12/12/2023 113998 BREAKTHRU BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 15,348.52 12/12/2023 113999 BUFFALO CREEK ENTERPRISES COST OF GOODS SOLD - LIQUOR HUTCH 216.36 12/12/2D23 114000 BURMEISTER, JEROME REIMB: SAFETY FOOTWEAR -WWTP 224.99 12 12/2D23 114001 C & L DISTRIBUTING COST OF GOODS SOLD - LIQUOR HUTCH 34 737.70 12/12/2023 114002 CARS ON PATROL SHOP LLC TOW MA457A AIRPORT TO HATS 145.00 12/12/2023 114003 CENTRAL HYDRAULICS CONTRACTED AUTOMOTIVE R&M - PARKS 221.46 12/12/2023 114004 CENTRAL MCGOWAN WELDING SUPPLIES - HATS 150.55 12/12/2023 114005 CINTAS CORPORATION CLEANING SERVICES - MULTIPLE DEPTS 372.25 12/12/2023 114006 COAST TO COAST SOLUTIONS STICKERS - POLICE 359.95 12/12/2023 114007 ICOKER COMPOSTING AND CONSULTING SUPPORT TO COMPOST IT RIGHT - CREEKSIDE 300.00 12112/2023 114008 COLDSPRING SPAUDE PLAQUE - CEMETERY 335.00 12/12/2023 114009 COMPUTER INTEGRATION TECHNOLOGIES CIT VIDEO SURVEILLANCE PROJECT - 4,381.00 12/12/2023 114010 CORE & MAIN LP METERS, TRANSMITTERS - WATER 3,508.63 12/12/2023 114011 CORNER POST EROSION CONTROL REPAIRS - MULTIPLE DEPTS 3,351.50 12/12/2023 114012 CREEKSIDE SOILS OPERATING SUPPLIES - PARKS 159.79 12/12/2023 114013 CROW RIVER AUTO REPAIR MA457A FUEL PUMP REPAIR - AIRPORT 198.28 1211212023 114014 CROW RIVER PRESS INC SENIOR NEWSLETTERS - SR CTR 40.12 12/12/2023 114016 CROW RIVER WINERY COST OF GOODS SOLD - LIQUOR HUTCH 1,898.4D 12/12/2023 114017 DAHLHEIMER BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 49,245.05 12/12/2023 114018 DELL MARKETING LP DELL SFF DESKTOP - IT 735.26 12/12/2023 114019 DESIGN ELECTRIC INC REPAIR & MAINT SUPPLIES - LIBRARY 57.00 12/12/2023 114020 DOG -ON -IT -PARKS DOG BAGS - PARKS 288.50 12 12 2023 114021 IDORSEY & WHITNEY L-L.P VARIOUS DEVELOPMENT AGREEMENTS- EDA 17,015,00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE 12/12/23 Check Date Check # Vendar Descrigglon Amount 12/12/2023 114022 VOID VOIDED CHECK - 12/12/2023 114023 E2 ELECTRICAL SERVICES INC INSTALLS - MULTIPLE DEPTS 1,590.99 12/12/2023 114024 EHLERS & ASSOCIATES INC UPDATED TIF RUN HUTCH UPTOWN 280.00 12/12/2023 114025 ELECTRIC PUMP INC EQUIPMENT PARTS - WWTP 422.38 12/12/2023 114026 ELECTRO WATCHMAN PAINTBOOTH REMOVAL INNOVATIVE - EDA 446.25 12/12/2023 114027 ELK RIVER COMPOSTING INC COMPOST BULK - CREEKSIDE 71,052.62 12/12/2023 114028 FARM -RITE EQUIPMENT EQUIPMENT PARTS - MULTIPLE DEPTS 1,607.50 12/12/2023 114029 FASTENAL COMPANY REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 154.55 12/12/2023 114030 FLOW MEASUREMENT & CONTROL COMPAI FL.OWMETER CALS - WWTP 2,102.00 12/12/2023 114031 FOSTER MECHANICAL OUTSIDE SHOWER REPAIRS - WATERPARK 1,799.24 12/12/2023 114032 GALCO INDUSTRIAL ELECTRONICS ELECTRICAL PARTS - WWTP 232.74 12/12/2023 114033 GARAGE DOOR STORE OVERHEAD DOOR REPAIR - EDA 285.00 12/12/2023 114034 GAVIN JANSSEN & STABENOW LTD SERVICES 11-30-23 - LEGAL 3,732.21 12/12/2023 114035 GEMPLER'S INC REPAIR & MAINT SUPPLIES - PARKS 203.97 12/1212023 114036 GOODPOINTE TECHNOLOGY 2023 PAVEMENT CONDITION SURVEY - 7,162.50 12/12/2023 114037 GRAINGER REPAIR & MAINT SUPPLIES - WWTP 695.16 12/12/2023 114038 GRANITE ELECTRONICS INC SMALL TOOLS & MINOR EQUIP - FIRE 15.00 12/12/2023 114039 GREEN MOUNTAIN TECHNOLOGIES DESIGN ENG, CASP, WELDED HDPE - 52,724.35 12/12/2023 114040 HACH COMPANY LAB SUPPLIES - WWTP 145.58 12/12/2023 114041 HARPER BROOMS BROOMS AND SHOVELS - CREEKSIDE 599.51 12/12/2023 114042 HAWKINS INC CHLORINE TABLETS - ARENA 437.20 12/12/2023 114043 HILLYARD HUTCHINSON REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 1 075.60 12/12/2023 114044 HJERPE CONTRACTING WATER MAIN REPAIRS - WATER 12,975.35 12/12/2023 114045 HOLT-PETERSON BUS SR CENTER TRIP EXPENSES 895.00 12/12/2023 114046 HUTCHFIELD SERVICES HATS JANITORIAL SERVICE 1,485,75 12/12/2023 114047 HUTCHINSON CO-OP FUEL & SERVICES - MULTIPLE DEPTS 8,953,61 12/12/2023 114048 HUTCHINSON FARMERS MARKET FARMERS MARKET GRANT - POWER OF 6,000.OD 12/12/2023 114049 HUTCHINSON HRA HOME IMPV LOAN - HRA 287.50 12/12/2023 114050 HUTCHINSON LEADER ADVERTISING - MULTIPLE DEPTS 4,845.66 12/12/2023 114051 HUTCHINSON UTILITIES UTILITIES - MULTIPLE DEPTS 82,576.44 12/12/2023 114052 HUTCHINSON WHOLESALE #1550 HATS SHOP SUPPLIES 339.58 12/12/2023 114053 HUTCHINSON WHOLESALE #2520 OPERATING SUPPLIES - FIRE 29.97 12/12/2023 114054 HUTCHINSON YOUTH VOLLEYBALL ASSOC VB REGISTRATION REIMB - REC 1,650.00 12/12/2023 114055 HUTCHINSON CITY OF UTILITIES - MULTIPLE DEPTS 7,220.28 12/12/2023 114056 IMS-INDUSTRIAL MAINTENANCE SUPPLIES HATS TOOLS 318.00 12/12/2023 114057 INGSTAD BROADCASTING ADVERTISING - MULTIPLE DEPTS 409.00 12/12/2023 114058 INTERSTATE BATTERY SYSTEM OF MPLS HATS BATTERIES 39.90 12/12/2023 114059 INTEX CORPORATION CRUSH 1 MINUS - CREEKSIDE 88,648.25 12/12/2023 114060 JISD#423 OCT CLASSES - COMM ED 3,785.63 12/12/2023 114061 1JEFFERSON FIRE & SAFETY INC AUTO EXTRACATION EQUIP - FIRE 35,244.00 12/12/2023 114062 jJLR GARAGE DOOR SERVICE HATS OVERHEAD DOOR 457.50 12/12/2023 114063 IJOHNSON BROTHERS LIQUOR CO COST OF GOODS SOLD - LIQUOR HUTCH 16,091.74 12/12/2023 114064 IJOHNSON CONTROLS FIRE PROTECTION LP ANNUAL CONTRACT - EV CTR 1,689.77 12/1212023 114065 IJUUL CONTRACTING CO SEWER REPAIRS - WWTP 29,389,10 12/12/2023 114066 JKAHNKE BROTHERS NURSERY FDP TREES - STREETS 675.00 12/12/2023 114067 IKENNEDY SCALES INC REPLACE SCALE WEIGH BARS - CREEKSIDE 4,490.30 12/12/2023 114068 KERI'S CLEANING & HANDYMAN SERVICES CONTRACTED JANITORIAL - MULTIPLE LOCATIO 6,189.06 12/12/2023 114069 JKOHLS SWEEPING SERVICE PILING CONCRETE AND ASPHALT - CREEKSIDE 300.00 12/12/2023 114070 1 L & P SUPPLY CO SUPPLIES & REPAIRS - MULTIPLE DEPTS 522.50 12/12/2023 114071 LEENHOUTS INC SCULPTURE STROLL 2023 AWARDS 250.00 12/12/2023 114072 LOGIS LOGIS MONTHLY SERVICES - IT 9,060.09 12/12/2023 114073 LPT ENTERPRISES LLC FREIGHT - BAGGED 865.00 12/12/2023 1114074 MARCO TECHNOLOGIES LLC NOV CONTRACTS - MULTIPLE DEPTS 2,467.321 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE 12/12/23 Check Date Check # Vendor Descriglion khount 12/12/2023 114075 MARCO TECHNOLOGIES LLC PRINTING CONTRACTS - MULTIPLE DEPTS 393.23 12/12/2023 114076 MECA MECA ANNUAL CONFERENCE - STORMWATER 415.00 12/12/2023 114077 MEI TOTAL ELEVATOR SOLUTIONS CONTRACTUAL R&M - LIBRARY 225.16 12/12/2023 114078 MENARDS HUTCHINSON REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 596.18 12/12/2.023 114079 MESERB TRAVELICONFERENCE - MULTIPLE DEPTS 300.00 12/12/2023 114080 MESSNER, SANDRA SEW PANTS AND PATCHES - POLICE 25.00 12/12/2023 114081 MIDWEST FENCE & MFG CHAIN LINK FENCING - ARENA PROJECT 13 924.00 12/12/2023 114082 MINNESOTA DEPT OF AGRICULTURE ANNUAL PERMIT - WWTP 100.00 12/12/2023 114083 MINNESOTA DEPT OF HEALTH Q4 2023 STATE FEE - WATER CONNECTIONS 12,512.00 12/12/2023 114084 MINNESOTA POLLUTION CONTROL AGENCY MPCA LAB CERT ANNUAL FEE 2023 - WWTP 2,192.00 12/12/2023 114085 MINNESOTA VALLEY TESTING LAB LAB RESULTS - MULTIPLE DEPTS 864.80 12/12/2023 114086 NELSEN, TIM SCULPTURE STROLL 2023 AWARDS 750.00 12/12/2023 114087 NEO ELECTRICAL SOLUTIONS AIRFIELD LIGHTING REPL PROJ #3 271 762.34 12/12/2023 114088 NEO ELECTRICAL. SOLUTIONS AIRFIELD LIGHTING REPL PROJ #4 27,468.30 12/12/2023 114089 NORTHERN SAFETY & INDUSTRIAL SAFETY SUPPLIES - MULTIPLE DEPTS 205.69 12/12/2023 114090 NORTHERN STATES SUPPLY INC HATS PARTS 124.98 12/12/2023 114091 NORTHSTAR SURVEYING INC SURVEYING FOR LOT 1140 POND - EDA 600.00 12/12/2023 114092 NUSS TRUCK & EQUIPMENT HATS SHOP SUPPLIES 228.00 12/12/2023 114093 NUVERA PHONE SERVICES - MULTIPLE DEPTS S,863.09 12/12/2023 114094 JCIDP BUSINESS SOLUTIONS LLC HATS BREAKROOM PLATES 44.99 12/12/2023 114095 IPARK NICOLLET CLINIC DEC 2023 CAM 1,500.00 12/12/2023 114096 IPAUSTIS WINE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 807.00 12/12/2023 114097 PDQ/Smar-tDe lay SMART DEPLOY - IT 1,100.33 12/12/2023 114098 PEOPLEREADY INC CREEKSIDE TEMP STAFFING 2,439.20 12/12/2023 114099 PHILLIPS WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 9,033,20 12/12/2023 114100 PINE PRODUCTS INC YARD AND GARDEN PINE BARK - CREEKSIDE 3,700.00 12/12/2023 114101 QUALITY FLOW SYSTEMS LIFT STATION PUMPS - WWTP 47,206.00 12/12/2023 114102 QUILL CORP COPY PAPER - POLICE 72.98 12/12/2023 114103 RAHN PAINTING & CONTRACTING LLC DEC SNOW CONTRACT - MULTIPLE DEPTS 5,500,00 12/12/2023 114104 RAMSTAD TECHNOLOGIES LLC CAMERA PROJECT 1,281.00 12/12/2023 114105 RED BULL DISTRIBUTION COMPANY INC COST OF GOODS SOLD - LIQUOR HUTCH 193.40 12/12/2023 114106 REINDERS OP SUPPLIES, LIB SQUARE - MULTIPLE DEPTS 2,307.60 12/12/2023 114107 REINER ENTERPRISES INC ST CLOUD HAULING - CREEKSIDE 20,450.00 1?1.12 2023 114108 RUNNING'S SUPPLY REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 211.02 12/12/2023 114109 SCHWICKERT'S TECTA AMERICA LLC ROOF LEAK - ARRIVAL BLDG - AIRPORT 2,355.84 12/12/2023 114110 JSEPPELTP MILES REIMB: SIGN HOLDER, TRAVEL - EDA 338.61 12/12/2023 114111 VOID VOIDED CHECK - 12/12/2023 114112 SHORT-ELLIOT-HENDRICKSON INC PROFESSIONAL SERVICES - MULTIPLE 16,236.88 12/12/2023 114113 SITEONE LANDSCAPE SUPPLY OPERATING SUPPLIES - PARKS 703.19 12/12/2023 114114 SNAP -ON INDUSTRIAL HATS TOOLS 485.17 12/12/2023 114115 SOUTHERN WINE & SPIRITS OF MN COST OF GOODS SOLD - LIQUOR HUTCH 11,102.90 12/12/2023 114116 STANDARD PRINTING-N-MAILING POSTAGE, UPS - MULTIPLE DEPTS 3,406.24 12/12/2023 114117 STAPLES ADVANTAGE OFFICE SUPPLIES - MUTIPLE DEPTS 399.64 12/12/2023 114118 STARWIND SOFTWARE INC STARWIND SUPPORT- MULTIPLE DEPTS 5,282.00 12/12/2023 114119 STATE CHEMICAL SOLUTIONS CLEANING SUPPLIES - PARKS 276.10 12/12/2023 114120 STONEBROOKE ENGINEERING INC PROFESSIONAL SERVICES - ENG 55.11 12/12/2023 114121 STREICHER'S TACTICAL. SUPPLIES - POLICE 1,708.76 12/12/2023 114122 TALL SALES COMPANY OCT COMMISSIONS - CREEKSIDE 3,705.47 12/12/2023 114123 TERMINAL SUPPLY CO HATS SHOP PARTS 59.05 12/12/2023 114124 THOMSON REUTERS-WEST WEST INFORMATION CHARGES - LEGAL 1,266.72 12/12/2023 114125 TIDY UP! WITT RELOCATION EXPENSE 975.00 12/12/2023 114126 TRI COUNTY WATER BOTTLE WATER AND DELIVERY - MULTIPLE 102.50 12/12/2023 1114127 ITRUE BRANDS I COST OF GOODS SOLD - LIQUOR HUTCH 497.20 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE 12/12/23 Check date Check # 114128 Vendor JVEGA AMERICAS INC Descri tion Amount 12/12/2023 EQUIPMENT PARTS - WWTP 6,389.58 12/12/2023 114129 IVERIZON WIRELESS PHONE SERVICES - MULTIPLE DEPTS 4,100.36 12/12/2023 114130 IVIKING BEER COST OF GOODS SOLD - LIQUOR HUTCH 21,059.20 12/12/2023 114131 IVIKING COCA COLA COST OF GOODS SOLD - LIQUOR HUTCH 619.40 12/12/2023 114132 IVINOCOPIA INC COST OF GOODS SOLD - LIQUOR HUTCH 946.75 12/12/2023 114133 VIVID IMAGE ENTERPRISE CENTER MARKETING 450.00 12/12/2023 114134 WASTE MANAGEMENT OF WI -MN REFUSE TAKEN TO LANDFILL 19,470.30 12/12/2023 114135 WATER CONSERVATION SERVICE INC LEAK LOCATE 904 CHURCH - WATER 669.20 12/12/2023 114136 WEST CENTRAL SANITATION INC OCT REFUSE - MULTIPLE DEPTS 4,122.14 12/12/2023 114137 WIDSETH SMITH NOLTING & ASSOC INC VMF GRANDSTAND RENOVATION SERVICES 14,110.37 12/12/2023 114138 WINE COMPANY, THE COST OF GOODS SOLD - LIQUOR HUTCH 984.00 12/12/2023 114139 WM MUELLER & SONS L3P23-03,04 ALLEY IMPVS PAY #3 25,008.63 12/12/2023 Total Cheek 114140 WOOD & RUE PLLP Register A: IATTEND HEARING R.E. - LEGAL 32,00 $1 228 332.65 CHECK REGISTER B FOR CITY OF HUTCHINSON CHECK DATE 12/12/23 Check Date Check # Vendor Descri tion Amount 12/12/2023 114015 ICROW RIVER SIGNS MISC SIGNAG E AT NEW PU FACILITY 620,20 Total Check Register B: $620.20 cR HUTCHINSON CITY COUNCIL HUTCHINS- ,. _ : Request for Board Action A CITY ON PURPOSE. Review of Truth in Taxation Hearing Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 12/12/2023 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 0 BACKGROUND/EXPLANATION OF AGENDA ITEM: As a follow up to the Truth in Taxation Hearing from December 5, the Council should have a discussion on whether or not there is a desire to change anything in regards to the 2024 budget and/or tax levy. Requests (if any) for additional information from the Truth in Taxation Hearing and/or any changes to the proposed budget/levy will be presented at this time as well. One last thing that we will need to discuss is our LGA allocation for 2024. With the nearly $400,000 increase in LGA, we need to determine how we are going to allocation our Capital Portion of those funds. I've have included an attachment with a recommended breakdown for discussion on Tuesday. BOARD ACTION REQUESTED: No action at this time. Final budget and levy will be approved at the December 19 meeting Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 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 LGA Allocation Year Total LGA LGA Increase 2010 1,784,272 2011 1,784,272 2012 1,784,272 2013 1,784,272 - 2014 2,213,199 428,927 2015 2,270,517 57,318 2016 2,286,660 16,143 2017 2,295,074 8,414 2018 2,395,326 100,252 2019 2,401,715 6,389 2020 2,576,807 175,092 2021 2,646,397 69,590 2022 2,668,410 22,013 2023 2,698,261 29,851 2024 3,097,925 -2024 LGA INCREASE 2024 LGA PROPOSED ALLOCATION General Fund Amount % 1,784,272 100% 722,000 40% 722,000 40% 722,000 40% 722,000 33% 825,000 36% 862,500 38% 1,000,000 44% 1,100,252 46% 1,100,252 46% 1,268,473 49% 1,268,473 48% 1,334,205 50% 1,349,131 50% 1,548,963 50% Capital Projects Fund Facility Playround Misc Maint Misc CIP Total Plan Replacement Fund Undesignated 1,062,272 1,062,272 1,062,272 750,000 312,272 1,062,272 750,000 312,272 1,491,199 1,000,000 491,199 1,445,517 750,000 375,000 320,517 1,424,160 700,000 375,000 349,160 1,295,074 700,000 375,000 220,074 1,295,074 700,000 375,000 220,074 1,301,463 700,000 375,000 226,463 1,308,334 700,000 50,000 400,000 158,334 1,377,924 700,000 50,000 400,000 227,924 1,334,205 700,000 50,000 400,000 184,205 1,349,130 700,000 50,000 400,000 199,130 1,548,962 50,000 ! _1 198,962 Policy notes LGA to be split 50/50 between general fund and Capital Projects Fund -- $199,832 increase to General Fund $199,832 increase to the Capital Projects Fund Proposing to increase the Facility plan by $100,000, the Misc. Maint. Fund by $50,000 and a new allocation of $50,000 for fleet Non -designated misc. capital projects fund cR HUTCHINSON CITY COUNCIL V" I-r"LF'"­!^.4 Request for Board Action A CI f 4N PURPOSE. 2nd Reading - Consideration to Rezone a property from I/C zoning district to R-3 Agenda Item: zoning district located at 845 Hwy 7 W (north 175 feet). Department: Planning LICENSE SECTION Meeting Date: 12/12/2023 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑� Unfinished Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: This is the second reading of this proposed rezoning ordinance. The Council approved the first reading on November 28th. BAR Properties has applied for a rezoning of the south third of 845 Hwy 7 W. The applicant has applied to rezone the property to R-3 Medium High Density Residential from I/C Industrial/Commercial. All of the adjacent single-family homes are zoned R-3 and the new lots created will be very similar to the existing single-family homes. Nobody from the Public spoke regarding this request. The Planning Commission did not have any questions regarding this request. The Planning Commission voted unanimously (4-0) to recommend approval of the requested rezoning. BOARD ACTION REQUESTED: Approval of 2nd reading of ordinance. 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 PUBLICATION NO. ORDINANCE NO. 23-845 AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, TO REZONE PROPERTY AT BLOCK 1, LOTS 1 THROUGH 3 BAR PROPERTIES PLAT AS REQUESTED BY BAR PROPERTIES, LLC, PROPERTY OWNER. THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS: Section 1. Notice of hearing was duly given and publication of said hearing was duly made and was made to appear to the satisfaction of the City Council that it would be in the best interest of the City to rezone the property from VC (Industrial/Commercial District) to R-3 (Medium -High Density Residential District). Section 2. That the property to be rezoned to R-3 is described as follows: That part of the following described property: Lots 1-3, Block 1, BAR Properties. Section 3. This ordinance shall take effect from and after passage and publication. Adopted by the City Council this 12th day of December, 2023. ATTEST: Matthew Jaunich, City Administrator Gary T. Forcier, Mayor DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan Jochum, AICP Date: November 15, 2023 for November 21, 2023, Planning Commission Meeting Application: Consideration of a Rezoning for BAR Properties Applicant: Brent Reiner, BAR Properties REZONING BAR Properties has applied for a rezoning of the south third of 845 Hwy 7 W. The applicant has applied to rezone the property to R-3 Medium High Density Residential from I/C Industrial/Commercial. All of the adjacent single-family homes are zoned R-3 and the new lots created will be very similar to the existing single-family homes. N ' Indicates property described in this notice " TEXAS AVENUE NW 40 AM 845 k f`, TRUNK H� 7 W Preliminary and Final Plat BAR Properties Rezoning Planning Commission—10/17/23 Page 2 Existing Zoning: Property Location: Existing Land Use: Adjacent Land Use And Zoning: Comprehensive Land Use Plan: GENERAL INFORMATION 1/C Industrial/Commercial District 845 Hwy 7 W Commercial Commercial and Residential Commercial Zoning History: The original building was built in the 1960s. Property was previously the shop and contractors yard for E&T Contracting. CUP was issued for Car Sales in September 2023 and in October 2023 the lot was re -platted. Applicable Regulations: Sections 154.173 of the City Code Rezoning Consideration: In considering a rezoning request, the Planning Commission should review the proposed rezoning for consistency with the surrounding area, City Plans and the purpose of the Zoning Ordinance. The area to the south of the subject property is zoned I/C, the areas to the north and east are zoned R-3 residential and the area to the west is zoned R-4 residential. The general character of this area is residential in nature. Staff understands that the homes built on these lots will be very similar in nature to the single-family homes within the area. Staff doesn't believe this rezoning request will change the character of the existing area, and in fact would be complimentary to the existing uses in this area. Staff Recommendations: Staff recommends rezoning the property from VC to R-3 for the reasons noted above. Staff recommends approval of the request with the following findings and recommendations: 1. The rezoning is consistent with the character of the surrounding area. 2. The property to the north and east is already zoned R-3. 3. The property to the west is zoned R-4. 4. The property is proposed to be developed as single-family homes. Rezoning would allow the proposed use to be developed as residential homes. 5. Staff believes R-3 zoning is the highest and best use for the subject property. cwNn of %R—'S C—FIC— AN A-0—O—ENT aN OF NE mA PLANNING CONMISS-, ON OF - Inky . MINNMTA ON QOJNM ON I HU—. —ESOTA —.—T T-- r&F.SINE NC., Professional Land SurveIyom BAR PROPERTIES NORTH GRAPHIC SCALE ORIENTATION — 11 T — — — .111 —a. PROPOSED EASEMENT DETAIL WW A — LEGEND Z c� A 2 a 'BLOCK L BLOCK 2 41 F 7 7 lk 22 cR HUTCHINSON CITY COUNCIL ' 7CHINSON Request for Board Action A CITY ON PURPOSE. Approve/Deny Resolution 15666 - A Resolution Approving Plans and Specs and Odering an Agenda Item: Advertisement for Bids on a New Grandstand and other Improvements at VMF Baseball Field Department: Administration/PRCE LICENSE SECTION Meeting Date: 12/12/2023 Application Complete N/A Contact: Matt/Lynn Agenda Item Type: Presenter: Matt/Lynn Reviewed by Staff ❑� New Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Please see the attached memo and additional documentation. BOARD ACTION REQUESTED: Approve/Deny Resolution 15666 - A Resolution Approving Plans and Specs and Odering an Advertisement for Bids on a New Grandstand and other Improvements at VMF Baseball Field Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 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 u now HUTCHINSON A CITY ON PURPOSE. Memo To: Mayor & City Council From: Matt Jaunich, City Administrator Date: 12/12/23 Re: VMF Grandstand Project Office of the City Administrator 111 Hassan Street SE Hutchinson, MN 55350-2522 320-234-4241/Fax 320-234-4240 At Tuesday's City Council meeting, staff will be asking the City Council to consider a resolution to approve the plans and specs and authorize an advertisement for bids on the VMF Grandstand Project. To assist you in that decisions, I've put together this memo with attachments on additional information regarding this project. Background on Current Grandstand and VMF The current grandstand is 38/39 years old having been built in 1985/86. The current grandstand seats around 240 to 250 people. The middle section of the grandstand is covered with the two outside areas not being covered. The current grandstand has no handrails and was not constructed with handicap -accessible seating areas. The League of MN Cities conducted an ADA Survey in July of 2021 (report included). In regards to the grandstand, the report noted that the "current grandstand may not meet the ADA accessibility regulations". They noted that our available seating down the left and right field viewing areas (both concrete sidewalks and the area around the grandstands are concrete) are a short-term fix for the non -accessibility of the grandstand, but hinted that they were not sure how long that would be accepted. They noted that the City should develop a transitional plan that would integrate accessible seating into the grandstand, and/or a replacement plan. Please note that the 2023 CIP did not include any work on the grandstand. In regards to VMF, the City and the Hutchinson Huskies have had a long-standing partnership. The Huskies officially "adopted" VMF in 2019. The Huskies take care of whatever is within the fenced -in area (mow grass, field prep, cleanup, etc.), and the City provides field and bathroom supplies and fixes major issues. Outside of the fee we collect from the High School for use of our field, the Huskies collect all other revenues from admissions/concessions. Annually, it costs the City about $30,000 to operate VMF. Background on this Project Back in May of 2021, the Hutchinson Huskies approached the City Council about their desire to see a new grandstand built. Their proposed plan included a grandstand that sat around 381 fans with a press box and included handrails and 6 handicap seating areas. The proposal also noted that all of the seating areas would be covered. At that time, they noted they were going to attempt to raise the funds on their own and estimated that the cost would be in the range of $250,000 to $300,000. The City noted that replacement of the grandstand was not included in the five-year capital improvement plan. Then in April of this year, the Huskies officially requested financial assistance from the City in getting the project done. Their initial request was for $250,000 to $300,000. At that time, the Council was noncommittal to the project, but instructed staff to investigate the project and the project costs. In the middle of July, the City hired Widseth to do a preliminary design and cost estimate on a new grandstand. The preliminary design and cost estimate were provided to the City Council at your council meeting on August 22, 2023. The preliminary design was for a 380-seat stadium with a press box and had a price estimate of about $625,000. What was unknown at that time was the details on the dirt work/foundation along with additional detailed costs of the project. With that in mind, the City Council adopted a resolution ordering a preparation of a report on a new grandstand and other improvements and city continued its work with Widseth on completing plans and specs. That has led us to the decision that is now in front of the City Council. Current Proposal/Options In early October, staff received a more detailed construction plan for a 380-seat stadium with a press box that would replace the current grandstand. The cost estimate included more detailed numbers on concrete foundations, demolition of the current grandstand, the moving of a water line that is currently under the existing grandstand, and a new concrete walk that would surround the grandstand. The concrete work would also correct flood ing/ponding issues that currently occur in front of the current grandstand and would replace pavement that will need to be addressed in the next couple of years. That cost estimate (attached) came in at just over $826,000. Staff had concerns on the cost estimate being too high and met with both Widseth and the Hutchinson Huskies on a redesign that would eliminate some of the concrete work and shrink the seating of the stadium. Widseth worked with us to eliminate some of the concrete work and the Huskies agreed to shrink the stadium from 380 seats to 270. Those design changes (attached) eliminated about $183,000 in costs. The option that is to be considered tonight by the City Council is a 270-seat stadium (covered) with press box, concrete walkways, and landscaping for a total estimated cost of $642,894.94. Funding As it stands right now, it is proposed that this project will be funded in two ways. One is through the fundraising efforts of the Hutchinson Huskies. To date they have received $250,000 4 in donations/pledges, which includes a significant pledge from Citizens Bank in the amount of $150,000 if the project moves forward. The remaining $400,000 would be covered by the City. Staff is proposing that funding for this project would come from the City's facility plan. As was noted earlier, the current CIP that was adopted in 2023 does not include the grandstand project. With that being said, and if the City Council so desires, staff has proposed a plan to include the grandstand project in the 2024-2028 CIP through our facility's fund (attached). Staff is able to make this project happen if the Council desires because of the following: We pushed back the remodel of City Center and the construction of a new Garage at City Center ($700,000) to 2028. Neither one of these projects are ready to go or are in dire straits, and neither one of the projects have a direct benefit/impact to the public like a new grandstand would. Within the last two weeks, the City has a received a commitment from Hutchinson Utilities to fund the lighting project at VMF. This has an estimated cost of $305,000 and was something, funding -wise, we are able remove from our Facilities Fund. Making these adjustments allows us to keep all other projects in the queue including a potential locker room remodel at Burich Arena for a minor league hockey club. There is the potential for additional private funding with this project as well. Both the Huskies and city administration have been contacted by private funding sources who have expressed their hesitancy in committing funds to the project without the support of the City Council. To be fair, we don't know if these donations would be $5 or $5,000 and ""potential" money has not been factored into the funding sources. Other items to take into Consideration While the timing of this project might not be ideal for the City Council, there are two items I would like for you to take into consideration. 1) As the project stands today, we are looking at private donations/pledges totaling about 250,000 to help fund this project. In my tenure here with the City, this would be the second largest private donation(s) we have received for a specific project. Is the City going to be willing to turn down that money? And if so, what does that mean for private funding with future projects? 2) As previously noted, the current grandstand was installed in the mid-1980's. And as noted, the current grandstand may not meet the ADA accessibility regulations. The available seating down the left and right field viewing areas appear to be short-term fixes for the non -accessibility of the grandstand, but how long will that last? Also, are we nearing the expected life of a facility that is almost 40 years old? Now, we may have 10 years of life left in the current grandstand. I would just hate for it to only be 2-3 and we pass up on this opportunity and are left potentially paying for it all on our own. Next Steps As you may recall, the Hutchinson Huskies would like to see a new grandstand constructed prior to them hosting the State Amateur Baseball Tournament in 2025. For that to take place, we will need to construct the grandstand in 2024 after the conclusion of the baseball season. So ideally, we would like to be bidding this project out this winter for a fall of 2024 construction season. The first step is that what is in front of you tonight. For your consideration is a resolution approving the plans and specs and authorizing an advertisement for bids. Approving that resolution will move the project forward. This would include putting the project out for bids with a bid opening likely this February/March. Denying the resolution would cancel the project at this time. If the resolution is approved and the project goes out for bids, there would still be one other step in which this project could be cancelled. That could potentially occur after the bid opening. If the City receives bids that are not favorable or to our liking, we would have the opportunity to reject the bids, which would essentially cancel the project for 2024. A decision would then have to be made to "go back to the drawing board" or to simply cancel the project. Please let me know if you have any questions or need any additional information. Widseth and the Hutchinson Huskies should also be in attendance to answer any questions you may have of them or the project. Matt E LMC0 LEAGUE MINNESOTA CITIES July 23, 2021 JJ Verhey, Facilities Manager — jverhey@ci.hutchinson.mn.us City of Hutchinson I I I Hassan Street Hutchinson, MN 55350 Re: Veterans Memorial Park ADA Survey Conducted on July 19, 2021 Dear A On the above date, I met with Sara Witte and you to discuss loss control topics pertaining to Veterans Memorial Park in the City of Hutchinson. This was in conjunction with the City of Hutchinson's participation in the League of Minnesota Cities Insurance Trust (LMCIT) property, liability and/or workers' compensation program. Purpose of Visit The primary purpose of my visit was to discuss the Americans with Disabilities Act (ADA) and complete a basic review of key provisions. ADA became law in 1990, with the purpose being to allow people with disabilities the same opportunities as everyone else, including all areas of public life, schools, transportation, jobs, and all public and private places open to the public. Key Provisions • New Construction and Alterations: Facilities constructed or altered after January 26, 1992, must comply with the ADA Standards for Accessible Design (ADA Standards), which are available online (ADA Standards 2010) • Program Access in Existing Facilities: state and local government's services, programs, and activities, when viewed in their entirety, must be readily accessible to and usable by persons with disabilities, known as "program access". • 2010 ADA Standard include Recreational Facilities: The 2010 ADA Standards contain requirements for recreational facilities that were not addressed in the 1991 Standards. Because there were no previous accessibility standards for these types of facilities, the safe harbor does not apply. So even if one of the city's recreational facilities was built prior to 2010, the rules still apply. • Self -evaluation of accessibility is required of all public entities. A transition plan is also required for cities of over 50 employees. Right -of -Way Transition Plan Template Lawsuits and Claims While many ADA lawsuits are genuinely concerned with accessibility for the good of the disabled public, the ADA has also been abused by certain attorneys seeking fees. Because of the complicities of ADA's technical requirements, they can easily find something out of compliance at the city. In addition, since there is no pre -litigation notice, the city does not see it coming. However, several indicators that a lawsuit is about to occur include: 145 University Avenue West PH: (651) 281-1200 FX: (651) 281-1299 St. Paul, Minnesota 55103 TF: (800) 925-1122 www.imc.org • Open records requests regarding the ADA assessments • An increase in complaints regarding accessibility • Numerous businesses in your city being sued by the same plaintiff for accessibility violations Common ADA Problem Areas at Cities • Parking Designation • Routes to Building Access • Building and Facility Access • Event Seating • Bathroom Accessibility • Program Access • Recreational Facilities • Websites and Communication How to Make Progress If the city has not already done so, an ADA Self -evaluation should be completed, prioritized, and implemented. Cities could use seasonal employees, volunteers, safety committee, in some instances, a city may choses to hire a vendor, or use a local advocacy group to perform these evaluations. MN State Council on Disabilities: Building Access Survey Technical Assistance and Training The ADA requires the Department of Justice, (DOJ) to provide technical assistance to businesses, state and local governments, and individuals with rights or responsibilities under the law which it does through its ADA Website: www.ada.gov For local expertise from the MN State Council on Disabilities, training and consultants are linked below: ADA Training Access Specialist Summary of Solutions Though no amount of risk prevention can eliminate the risk of ADA litigation, the following efforts go a long way: • Make sure your city has an ADA coordinator (50 or more employees), who understands the need to coordinate the city's efforts to comply with and carry out the ADA mandates. • Make sure your city has established a grievance procedure (50 or more employees), for resolving complaints of violations. • Confirm that a self -evaluation was conducted. • Confirm the implementation of a transition plan. Conclusions • Veterans Memorial Park has several provisions to meet ADA requirements in place including: o Assessable Parking near the main entrance o Assessable routes from the parking area to viewing seating. o Some Assessable Seating along the First & Third Base Line. Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards were noted. The final responsibility for conducting loss control and risk management programs rests with the member. 2 Taking additional steps will strengthen the city's efforts to meet ADA requirements and improve accessibility. Areas we discussed for an improvement include: o Reviewing the Parking Lot to ensure enough assessable spaces are installed. o Improving tables and eating locations o Review seating for additional assessable seating including the grandstand. o Update the restrooms for ADA compliance. o Counter height for the concession stand. o Pathway to left field shelter. Resources MN Council on Disabilities MN State Council on Disabilities: Building Access Survey Recreational Facilities: Access Board Outdoor Developed Areas: Access Board ADA Update: A Primer for State and Local Governments ADA Best Practices Tool Kit for State and Local Governments ADA Transition Plan: City of Richfield NFPA Safety Codes and Standards Guide you to Safe Bleacher Recommendations I've included loss control recommendations to strengthen ADA elements for your consideration in the appendix. Thanks again for the time and courtesy extended to me during my visit. As always, if you have safety or loss control related questions, please do not hesitate to contact me. Sincerely, O Troy T. Walsh I Loss Control Consultant Public Works Specialist Mobile: (612) 554-0623 1 Tel: (651) 281-1231 E-Mail: twalsh@hnc.org I Web site: www.lmc.or League of Minnesota Cities 145 University Avenue West St. Paul, MN 55103-2044 c: Cathy Caviness, Agent — cathy caviness@?Ljg.com Sara Witte, Park Supervisor — switte@ci.hutchinson.mn.us Matt Jaunich, City Administrator — mjaunich@ci.hutchinson.mn.us Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards were noted. The final responsibility for conducting loss control and risk management programs rests with the member. Recommendation Appendix Below are areas involving ADA Accessibility we discussed and/or viewed during my visit to the City of Hutchinson's Veterans Memorial Park. The City should take a closer look at these areas, using the tools referenced in this letter, attached, and listed below, to identify deficiencies and to use as a guide for improvements. Minnesota State Council on Disabilities: Building Access Survey MN Council on Disabilities: Building Access Survey Recommendations generated from today's visit: 01-07/21: Suggest the City Review All City Facilities for ADA accessibility. Recommend appointing an Accessibility Coordinator (cities over 50 employees) to coordinate ADA transitional plan, address complaints, and facilitate other ADA requirements. • ADA Update: A Primer for State and Local Governments • ADA Best Practices Tool Kit for State and Local Governments 02-07/21: Suggest review of designated accessible parking spots at Veterans Memorial Field. While designated parking spots exist at this location the number could be increased depending on total spots allowed, and/or a van accessible space should be added. Currently there are Two (2) spots in the gravel parking lot, that could accommodate more than 50 vehicles. Using the attached diagram, could help determine the correct number of accessible stalls. MN Accessibility Code Summary a PARKIN VEHICLE ID /� k �E`>FUIRED UP TO S2DO f IN E FOR VIOLAMO Total Number of Parking Spaces in a Parking Facility Minimum Number of Accessible Parking Spaces Required 1 26 - S0 2 S3 - 7S 3 76 - 100 4 101- 150 3 ISI - 200 6 201- 300 7 301- 400 8 401- S00 9 501 - 1000 2%of total 1001 and over 20, plus 1 for each 100, or fraction there- of, over 1000 M MRNINB IN ACLFlF 11KF �n n� NO U U/ PARKING D D U C—� 0 0J U L n n 8 feet 8 feet 8 feet Recommendations and comments are provided.for loss control and risk exposure improvement purposes only. They are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards were noted. The final responsibility for conducting loss control and risk management programs rests with the member. 11 03-07/21: Suggest replacing current Handicap Parking Signs. The current signs are faded, and not legible. The current signs should be replaced with new signs that meet the Retroreflective Code. 04-07/21: Suggest accessibility review and improvement to restrooms located Veterans Memorial Park. The current restrooms do not have proper handrails, stall spacing, or access for ADA Compliance. Adding short-term ADA ports -potty can help with compliance during events and busy summer season. You can use the diagram below as a reference. Areas that need to be reviewed and/or addressed could be: • Door opening width • Door hardware, threshold, barriers • Spacing of grab bars • Plumbing protection under sink • General spacing of accessories I 29' MIN 44' �r71 3Q' J 46' f Y MN WOM 60' T W CLEAR naNOeAPPeo smote FacLirr aura-sexi Recommendations and comments are provided.for loss control and risk exposure improvement purposes only. They are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or imply in the making of these recommendations and comments that all sites were reviewed or that allpossible hazards were noted. The final responsibility for conducting loss control and risk management programs rests with the member. Current Mens Resroom 0 AA Current Womens Resroom Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards were noted. The final responsibility for conducting loss control and risk management programs rests with the member. 6 ADA Restroom Spacing and Distance Referance 00W ftbff a not sibrwed Wdin this area. I � I aP� L i can be E v I eHnsr 7Q w t i inches i OR 48 I inches in i front of i water ! dosat. I L___�___ 5 HE min 91121.— anF. 24 min �1n 0 �m � dC ot7 n � 05-07/21: Suggest reviewing an access path that connect the various features in the parks. This includes additional shelters, playgrounds, restrooms, etc. A Paved, Concrete or "Firm and Stable Surface" as defined by ADA could be added. Means of stabilizing trails include using amendments of crushed rock to strengthen and improve the natural surface, wood chips, fine granular stone (also referred to as crusher fines or decomposed granite) or recycled materials. This could be done when improvements are made to these parks also. Documentation and Transition Plans are helpful. (Examples) Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards were noted. The final responsibility for conducting loss control and risk management programs rests with the member. 7 (Current Buildings) 06-07/21: Suggest reviewing the picnic tables at all shelters & parks to ensure that 20% percent, but not less than 2% percent accessible picnic tables. Picnic facilities- United States Access Board / ADA Picnic Tables (Example) Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards were noted. The final responsibility for conducting loss control and risk management programs rests with the member. 07-07/21: Suggest review and improvement to grandstand accessible seating and ADA accessibility. The current grandstand was installed in the 1980's and has had some improvements over the years including a canopy over the center section, and enclosures underneath to eliminate trash collection and entrapment hazards. The current grandstand may not meet the ADA accessibility regulation. The City has made efforts to a short-term plan for accessible seating in the left and right field viewing area of the grandstand common area. Developing a transitional plan that would integrate accessible seating into the grandstand, and/or replacement is also suggested. (Example) Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards were noted. The final responsibility for conducting loss control and risk management programs rests with the member. 9 (Current Facilities) Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards were noted. The final responsibility for conducting loss control and risk management programs rests with the member. 10 .a Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards were noted. The final responsibility for conducting loss control and risk management programs rests with the member. 11 City of Hutchinson Veterans Memorial Stadium Construction Estimate: August 2, 2023 (Revised October 11, 2023) (Revised October 30, 2023) WIDSETH Dana Hlebichuk, AIA VP dana. hleb ichu k@widseth.con 507.358.9976 Design Option #3 (Phase 1) Alliance Contracting Estimate Unit Cost Revised Estimate 10/30 Plans Features: Size Cost Subtotal Subtotal Additional Scope Revised Scope Delta 380 Seat stadium with canopy 380 seats $ 971.13 /seat $ 369,028.87 $ 369,028.87 $ 971.13 Seat 270 Seats $ 262,205.10 (110 Seats) Press Box 8x18 144 sf Included with stadium New concrete foundations 14 $ 4,642.85 /pier $ 64,999.90 $ 55,000.00 $ 3,928.57 Pier 10 Piers $ 39,285.70 (4 Piers) Demoltion $ 50,000.00 $ 48,000.00 $ 48,000.00 No Change New concrete walk $ 100,000.00 $ 170,000.00 $17.79 sf 6,821sf $121,345.59 (4,821sf) $ 130,000.00 Earthworkand Utilities $ 130,000.00 No Change Subtotal $ 584,028.77 $ 772,028.87 $ 600,836.39 Design and Construction Contingency 7% $ 40,882.01 $ 54,042.02 $ 826,070.89 $ 42,058.55 Total $ 624,910.79 �N . "a, .H—Hl--1 - N _ �M N� NE �N �N'3� CNN o N �w _ST ,^ VIA f' "" N a N,l —M ss S6!• D—UMN ( J EaE Y` N yg g 4 o d -- C O a S B O W LLL L w a O� Z- ¢ ' e$ LLLL C2.0 �( �§ „ :,,,:„ § � | ILI ) 0_, _ee m� ~ §| §o •] ( |: §|§ eMOO VETERANS MEMORIAL FIELD GRANDSTAND REPLACEMENT CITY OF HUTCHINSON HUTCHINSON. MN STATE MAP T ��b ABBREVIATIONS TYPICAL MATERIAL HATCH PATTERNS Nil ru IBM ties VICINITY MAPR, a DESIGN TEAM: —•a smuc.x o —�e. — �m a...� ®s m „ti, MCIAL ~ .ryau.�e .sus WiDSETH GEL • : PHCHrtEC15 . -NEERS .--Ti.S"13 . SURVEYOF6 U G1.1a �W•� .C_ x!P Q ma.D E m POSDIONOFaM FLUOR SMPE—EUPEFFMGPE—lPEFMAL—E mEa�cE !lEEa�cE PxomUoIlGoBJEE.! DUST xoUxmoPxomUxxG OBJECTS EDUCED PExUCALaE—EE i1GJ Y4 Y.:]r.F� �JLLy P4I h" r---------------- ------------- n sFw xErai asm(S xoas nEnw m xElc om�� se CIE- OF c c _ _an x ! gc !y -sl R�w� UMEn—'I �Ena,n PEnmsA PEn'ouA S �vx ] I IN MMEUvenxaa bw,wcEn.x—M �g a..g �g atid�ea�or xF���wwa�a a,u FeV4WL T t.ui. 4 m e e ...g �g ORS #�plML1�kVJQ■ xmnsr arlat■ dYir YCIL W(r411 ...,. w w1 EATAiiF 1eT1#EY x'l+aa 11e+i9� = O U K ] •n p 5 4 B N O L) 8 0 LL 2 gFg�t� i Fb� 8 O U �,p G1.20 ��L -ul NNNNL�-4; -NN DUND URN cuRBmpmlsmD Nei ; RDuCU +corm jai NNa-.E..q z DIMENSIONSINSIDE tpx lwW Eitvaiaxs rscrmr.ct)vnr *mNNOi—. Rccram.at� .F. PwFORmuUTBoORS .—I �sEcrnoap E,=K:ST SO;n SDNRNDSING ISEcsmss7 iml vui XCEssixtE rnnxxc s accEssixItnwxmnjxtxxam accEssx pwx-1i=11 ncam B USE—) ISEasoza� ISEas� (sEC uq USE—) Ii 1sEcr»ap 'tE:10)sa. T- U 31.30 p . <6> - P ou _ O 4 U $ LL' N - o LL �( U LSt.W �I� I d ro �N1�C�1 �ING�®fi �moaa,an� mrm+ncr ro" b � � -- o PR A-CLEE6 FEATURES L E-13ENo aawo. _� Z4t,E .Mx xiso VCM xE � N,�MN A ,>� Ear y- r°� 4 4 Y O / $ : ., O o L O LL O� zwd Q�LL�� C1.0 o HUTCHI—. I Via' - @H—H—�� M IME �_151 I M�w Wl— h MN ST LEOEND �M 0 g3BA a — + - - A -- I Ei � LL O� ZLL Ru 0 E2-0 I II y I k I II caeg '\ mNG c% i6=tm'f5uj'IIM� I, �, � IE=iml_�5 P�o _ HU,E . MN 5� ow 5 ®H� �I so _ sa�F—IOIOA,®M,to,IAuoN CME—NE MN —M 0 rx: (rst}�mzx5 Y ��zy __ ---------��_, --------- ---.---.�--- _ - a- �mevsE ,',... --- �mao e� --- - ------- ------ - O �mnm e� �_ Ho F. ry �;—o—..-�—o—.�--�—�— i �n.E �' _�•-� --o—, - _ - - ILK-.`-. � - - O U N A F p ygg a 9 A C V rl-77�� O w Mir = ' U.77:- rr _ on 60%FLOORPLAN .— FINAL PIER SIZE, FOOTING SIZE AND FOUNDATION LAYOUT TO BE COORDINATED WITH GRANDSTAND SUPPLIER MUCTURAL Nmr;s a, PIERREINFORCMENT a®x'nmcran.crsxrw.nrcx. "�` y < o a t Y � t � srt:ts m mumg P I i 3 3 ra P 1 f a Lfl f f O 4 P U 8 a K � y O A3.li 2 ECTIOH� 5"apluM1� /15EC'ION VIM O BEWfES o c7 STt.13 �§ — w§ r � \ � / | ffElf ,is m »� 1-2 2 SIGHT LINES C_<ARRANGEMENT FOLDING SEATS AND STEPS TO PRESS BOX | a N �j . - ` _ , ; \� zm F §| > ,s » - . ' — . \:,_,�� (j \ �_,� .� e 0 \.! _ , m__ (|\ FACILITIES PLAN As of December 12, 2023 Beginning (LGA) Ending Year Balance Funding Improvements Balance 2023 $171,993 $700,000 -$222,485 $649,508 2024 $649,508 $700,000 -$1,145,200 $204,308 2025 $204,308 $700,000 -$875,000 $29,308 2026 $29,308 $700,000 -$241,500 $487,808 2027 $487,808 $700,000 -$330,000 $857,808 2028 $857,808 $700,000 -$1,055,000 $502,808 Target Original Actual Costs Est. Costs Year Facility Project Estimate to Date to Complete Total Costs 2023 City Center Parking lot improvements 98,250 105,955 105,955 2023 Civic Arena Drainage improvements 69,955 84,625 84,625 2023 Recreation Center Gutters on North side 13,595 13,595 13,595 2023 Various Miscellaneous improvements 50,000 18,310 18,310 Rec Ctr counters $14,310; CA Locker mom design fee $4,000 2023 Total 231,800 208,890 13,595 222,485 2024 City Center Roof improvements 140,000 140,000 140,000 2024 Civic Arena East rink dasher boards 253,700 253,700 253,700 2024 Civic Arena Locker room updates 62,000 62,000 62,000 Net of $50K estimated donation from hockey team 2024 Fire Hall Roof improvements 80,000 80,000 80,000 2024 Rec Center New flooring in pool/locker/hall areas 50,000 50,000 50,000 2024 Senior Dining Roof improvements 9,500 9,500 9,500 2024 Library Carpet, finishes, fixtures 100,000 100,000 100,000 2024 VMF Grandstand 400,000 400,000 400,000 net of $250K private donations 2024 Various Miscellaneous improvements 50,000 50,000 50,000 2024 Total 1,145,200 - 1,145,200 1,145,200 2025 Roberts Park Lighting improvements 745,000 745,000 745,000 2025 VMF Park Lighting improvements - - - $300K estimated, on HUC's capital plan 2025 VMF Restroom improvements 25,000 25,000 25,000 2025 Parks Garage New Overhead doors 45,000 45,000 45,000 2025 Parks Garage HVAC replacement 10,000 10,000 10,000 2025 Various Miscellaneous improvements 50,000 50,000 50,000 2025 Total 875,000 - 875,000 875,000 2026 Fire Exhaust capture system 55,000 55,000 55,000 2026 Fire Concrete repairs 42,000 42,000 42,000 2026 Fire Garage floor epoxy 44,500 44,500 44,500 2026 Roberts Park Concession/restroom upgrades 50,000 50,000 50,000 2026 Various Miscellaneous improvements 50,000 50,000 50,000 2026 Total 241,500 - 241,500 241,500 2027 Parks Garage Cold storage steel/concrete 150,000 150,000 150,000 2027 Roberts Park Perimeter fencing 100,000 100,000 100,000 2027 Water Street Garage Siding/soffits 30,000 30,000 30,000 2027 Various Miscellaneous improvements 50,000 50,000 50,000 2027 Total 330,000 - 330,000 330,000 2028 City Center Remodel 300,000 300,000 300,000 2028 City Center New garage 400,000 400,000 400,000 2028 Roberts Park Parking Lot improvements 285,000 285,000 285,000 2028 Library Sidewalk improvements 10,000 10,000 10,000 2028 Senior Dining Lighting improvements 10,000 10,000 10,000 2028 Various Miscellaneous improvements 50,000 50,000 50,000 2028 Total 1,055,000 - 1,055,000 1,055,000 RESOLUTION NO. 15666 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING AN ADVERTISEMENT FOR BIDS NEW GRANDSTAND AND OTHER IMPROVEMENTS AT VMF WHEREAS, following the adoption of Resolution 15625 on August 22, 2023 by the City Council, Widseth has prepared plans and specifications for the following described city project: Demolition of old grandstand; construction of new 270 seat stadium (grandstand) with canopy and press box, new concreate foundations, landscaping and concrete walk NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. Widseth shall prepare and cause to be inserted in the official newspaper, the City's website, and in the Minnesota Builders Exchange and/or similar -like trade magazines, an advertisement for bids upon the making of such improvements under such approved plans and specifications. The advertisement shall be published for three weeks, shall specify the work to be done, shall state when the bids will be received and by whom; and that at which time they will be publicly opened at the Hutchinson City Center, 111 Hassan Street SW, by the City Administrator, will then be tabulated, and the responsibility of the bidders will be considered by the City Council at a future city council meeting in the council chambers of the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, MN. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the City Council on the issue of responsibility. No bids will be considered unless sealed and filed with the City Administrator and accompanied by cash deposit, cashier's check, bid bond or certified check payable to the City of Hutchinson for 5 percent of the amount of such bid. Adopted by the Hutchinson City Council this 12th day of December, 2023. Gary Forcier, Mayor Matthew Jaunich, City Administrator cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Approve Rescheduling of the December 26 City Council Meeting Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 12/12/2023 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� New Business Time Requested (Minutes): 1 License Contingency N/A Attachments: No 0 BACKGROUND/EXPLANATION OF AGENDA ITEM: As was discussed at the last council meeting, with the Holiday, there is a desire to reschedule the December 26 city council meeting. The discussion at the last meeting was to move it up a week to Tuesday, December 19 at 5:30 p.m. If there is still a desire to do this, the Council must take an official action to reschedule the meeting. BOARD ACTION REQUESTED: Approve Rescheduling of the December 26 City Council Meeting to December 19 at 5:30 p.m. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 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 cR HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration of Setting Date for City Administrator Annual Performance Review Agenda Item: Department: Admin LICENSE SECTION Meeting Date: 12/12/2023 Application Complete N/A Contact: Kellie Wendland Agenda Item Type: Presenter: K Wendland/M Sebora Reviewed by Staff ❑ New Business Time Requested (Minutes): License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: Per the Employment Agreement between the City of Hutchinson and Matt Jaunich, City Administrator, the City Council will conduct an annual performance review for the City Administrator at the end of each calendar year. The Council may set the review as an agenda item of a regularly scheduled City Council meeting or set a special meeting for this purpose. Upon the scheduling of the review, Human Resources will provide the City Council with the performance review forms. As part of the review process and also per the agreement, the City will consider an increase in compensation to the Administrator dependent upon the results of the performance evaluation and consistent with the City of Hutchinson annual Compensation Plan. BOARD ACTION REQUESTED: Set a date for City Administrator Matt Jaunich's annual performance review. 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 MINUTES HUTCHINSON SUSTAINABILITY ADVISORY BOARD Monday, October 16, 2023 5:30 p.m. Hutchinson City Center 1. CALL TO ORDER 5:30 P.M. The October 16, 2023 Sustainability Advisory Board was an in -person meeting called to order by Jeremy Carter at 5:30 p.m. Board members in attendance were, Jeremy Carter, Andy Nissen, and Nathan Winter. Also present were John Paulson, City Project/Env./Regulatory Manager, and Mike Stifter, Public Works Director 2. PLEDGE OF ALLEGIANCE 3. CONSENT AGENDA A. CONSIDERATION OF MINUTES DATED August 21, 2023 1 st: Andy 2nd:Nathan 4. NEW BUSINESS A. EV SMART CITIES a. RIDE AND DRIVE EVENT SAMPLE — SPRING 2024? b. CITY WEBSITE EV PAGE DEVELOPMENT John Paulson updated the Board on EV Smart action that are being developed. A discussion was held about hosting a EV Ride and Drive event in the spring of 2024. Local automotive dealerships would be invited to participate in the event. Jeremy Carter provided an overview and update of Hutchinson Utilities insight on EV charging stations and local dealership inquiries into scaling up their infrastructure to support the EV market growth. Current plans include further maturation of EV marketing and service programs for the dealerships. 5. UNFINISHED BUSINESS A. ALTERNATIVE NATIVE LANDSCAPES a. ORDINANCE 923-840 NUISANCE VEGETATION ORDINANCE b. LANDSCAPE MANAGEMENT PLAN Mr. Paulson updated the board on the Nuisance Vegetation Ordinance and the scheduled to occur on October 24tn 6. COMMUNICATION FROM STAFF A. SWC CLIMATE RESILIENCY GRANT UPDATE Paulson provided a status update to the Board about the Climate Resiliency Grant. GIS data ag�p analysis completed by SEH has required a significant amount of staff time to collect missing data in the field. Once the data collection is completed it will be submitted to SEH so they may begin building the stormwater model for the study area located north of the river. Staff will begin to distribute outreach materials by utilizing QR codes and web based map so that residents can submit location specific information about areas they have observed flooding in the past. Information submitted will be anonymous and include options to submit comments and photos. B. LAKES AND RIVER IMPROVEMENT PROJECT UPDATE a. LEGISLATIVE BUS TOUR SUMMARY b. PROJECT DEVELOPMENT UPDATE — POSTER BOARDS John Paulson updated the Board on the project. Landowner engagement has been ongoing and includes McLeod SWCD staff that have been engagingproperty owners that are prime areas for river bank restoration improvements. City and Bolton & Menk staff are working with two property owners where there is opportunity and interest in constructing a forebay adjacent to the river so sediment and nutrients can be reduced before entering Campbell and Otter Lake. Information provided to the Legislative Bonding Bus Tour was shared with the Board. Positive feedback was received from the Board regarding the project and current status. 7. MISCELLANEOUS Mike Stifter included an update of the Citv's Emerald Ash Borer status in response to the pest being found in McLeod County for the first time this year. The City is in a good position financially and with staff capacity to continue diversification of species planted in City right-of-way to reduce the number of Ash trees. A more in-depth programpdate will provided in the Spring 2024. 8. ADJOURNMENT c� HUTCHINSON CITY COUNCIL Request for Board Action A CITY ON PURPOSE. Closed Session According to Minnesota Statute 13D.05, subdivision 3(c) Agenda Item: Department: Administration LICENSE SECTION Meeting Date: 12/12/2023 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� New Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: City staff will be asking the City Council to consider going into a closed session according to Minnesota Statue 13D.05, Subd. 3(c), to consider the asking price for the properties at 44 Washington Avenue West (EOC Building), 10 Frankling Street SW (Police Station), and 28 Franklin Street SW (Police Parking Lot). Our agent, Matt Pulkrabek of Hometown Realty will be present to go over some more recent market data and to assist us in setting a sale price for the properties. I'll also be asking for some direction from the Council when it comes to offers coming into the City. Attached for your review is market data put together by Matt. BOARD ACTION REQUESTED: Going into a closed session to consider the asking price for the properties at 44 Washington Avenue West, 10 Franklin Street SW, and 28 Franklin Street SW Fiscal Impact: Funding Source: FTE Impact: Budget Change: No 0 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