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cp07-09-24R HUTCHINSON A CITY ON PURPOSE. CITY OF HUTCHINSON MCLEOD COUNTY HUTCHINSON, MINNESOTA NOTICE OF A SPECIAL CITY COUNCIL WORKSHOP Tuesday, July 9, 2024 4:30 p.m. Council Chambers — Hutchinson City Center Notice is hereby given that the Hutchinson City Council has called a special workshop meeting for Tuesday, July 9, 2024, at 4:30 p.m. in the Council Chambers at the Hutchinson City Center, I I I Hassan Street SE, Hutchinson, Minnesota for the following purpose: • REVIEW OF 2023 COMPREHENSIVE FINANCIAL REPORT Matthew Jauni , ity Admini DATED: July 3, 2024 POSTED: City Center HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, DULY 9, 2024 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: Citypolicy 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 — Hutchinson Evangelical Free Church (The invocation is a voluntary expression ojthe private citizen, to and for the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been 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 (a) Resolution No. 15749 — Resolution Accepting $5000.00 Donation from Hassan Valley Lodge 9109 for Oddfellow Park Equipment 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 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 June 25, 2024 (b) Strategic Planning Session of June 25, 2024 CONSENT AGENDA (The items iste or consi eration will he 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 Issuing Temporary Liquor License to McLeod County Agriculture Association August 15-28, 2024 for McLeod County Fair (b) Consideration for Approval of Issuing Tattoo License to Jennifer Christensen of Something to Crow About Health Located at 140 Main Street North (c) Consideration for Approval of Resolution No. 15750 — Resolution Appointing Election Judges for Primary Election (d) Claims, Appropriations and Contract Payments CITY COUNCIL AGENDA —July 9, 2024 PUBLIC HEARINGS — 6:00 P.M. - NONE purpose o this portion o the agenda is to provi e t e ounci with information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) 8. LAKES AND RIVER IMPROVEMENTS PROJECT UPDATE UNFINISHED BUSINESS NEW BUSINESS 9. APPROVE/DENY 2023 COMPREHENSIVE FINANCIAL REPORT 10. APPROVE/DENY FIRST READING OF ORDINANCE NO. 24-847 — AN ORDINANCE AUTHORIZING SALE OF MUNICIPALLY -OWNED LAND TO DEROCK CAPITAL GROUP GOVERNANCE (The purpose of this 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) 11. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) Public Arts Commission Minutes from April 10, 2024, and May 8, 2024 b) Hutchinson Utilities Commission Minutes from April 24, 2024, and May 29, 2024 (c) Library Board Minutes from May 29, 2024 MISCELLANEOUS 12. STAFF UPDATES 13. COUNCIL/MAYOR UPDATE ADJOURNMENT 2 CITY OF HUTCHINSON RESOLUTION NO. 15749 RESOLUTION ACCEPTING DONATION WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17; and WHEREAS, the following persons or entities have offered to contribute the cash amounts set forth below to the city: Name of Donor Hassan Valley Lodge #109 Amount Donation Date $5,000.00 6/28/2024 WHEREAS, such a donation has been contributed to the City of Hutchinson Parks Department towards Oddfellow Park equipment. WHEREAS, the City Council finds that it is appropriate to accept the donation offered. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: THAT, the donation described above is hereby accepted by the City of Hutchinson. Adopted by the City Council this 9th day of July 2024. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, JUNE 25, 2024 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: Citypolicy 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. Mayor Gary Forcier called the meeting to order. Members present were Tim Burley, Dave Sebesta, Pat May and Chad Czmowski. Also present were Matt Jaunich, City Administrator and Marc Sebora, City Attorney. (a) Approve the Council agenda and any agenda additions and/or corrections Matt Jaunich, City Administrator, noted that two items need to be added to the agenda. One item will be added under New Business and is the consideration of approving premises permit applications for gambling permits for American Legion and Hutchinson Youth Basketball Association. The other item he requested was to go into a closed session to consider an offer received on property located at 44 Washington Avenue West. Motion by Czmowski, second by May, to approve the agenda with the additional items. Motion carried unanimously. 2. INVOCATION — Church of Jesus Christ of Latter Day Saints (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 or, 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 (a) Presentation of Minnesota Recreation and Parks Association (MRPA) Award of Excellence — Hutchinson Community Bike Fleet Project Nick Jacobs, PRCE Director of Otsego, representing the MRPA Awards Committee, presented the Award of Excellence for the Hutchinson Community Bike Fleet Project to the City of Hutchinson PRCE Department. Dave Kraemer, representing the Oddfellows, presented a $5000 check to the City of Hutchinson for Oddfellow Park improvements. Matt Jaunich accepted the donation and noted a resolution formally accepting the donation will be on the next Council agenda. PUBLIC COMMENTS (T is is an opportunity or members qf 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 be recognized by the mayor —stateyour 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 June 11, 2024 Motion by Burley, second by Sebesta, to approve minutes as presented. Motion carried unanimously. CITY COUNCIL MINUTES — June 25, 2024 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 Fire Station HVAC Improvements (b) Consideration for Approval of Issuing Temporary Liquor License to St. Anastasia Catholic Church September 13-15, 2024 (c) Consideration for Approval of Issuing Short -Term Gambling License to St. Anastasia Catholic Church September 13-15, 2024 (d) Consideration for Approval of Issuing Short -Term Gambling License to Hutchinson Fire Department Relief Association on September 14, 2024 (e) Consideration for Approval of Agreements with Independent School District 423 i. Grounds Maintenance ii. Use of Facilities iii. Burich Arena (f) Consideration for Approval of Resolution No. 15745 — Resolution Adopting Findings of Fact and Reasons for Approval of a Final Plat for McKay's Homestead with Favorable Planning Commission Recommendation (g) Consideration for Approval of Resolution No. 15746 — Resolution Adopting Findings of Fact and Reasons for Approval of a Final Plat for Franklin Street Addition with Favorable Planning Commission Recommendation (h) Consideration for Approval of Resolution No. 15747 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit to Move a Single -Family Dwelling From 532 Dale Street to 16 Franklin Street NW and for Residential Use in a C-3 Zoning District with Favorable Planning Commission Recommendation (i) Consideration for Approval of Resolution No. 15748 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit for a Sports Performance Facility in an I-1 Zoning District Located at 945 5t' Avenue SE With Favorable Planning Commission Recommendation 0) Claims, Appropriations and Contract Payments — Register A Motion by May, second by Czmowski, to approve Consent Agenda I. Motion carried unanimously. 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B 2 CITY COUNCIL MINUTES —June 25, 2024 Motion by Czmowski, second by May, with Forcier abstaining, to approve Consent Agenda II. Motion carried unanimously. 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. rdes items like monthly or annual reports and communications from other entities.) 9. HUTCHINSON PICKLEBALL ASSOCIATION PRESENTATION Linda Kuhl, Hutchinson Pickleball Association, presented before the Council. Ms. Kuhl provided a presentation on behalf of the Hutchinson Pickleball Association. Ms. Kuhl spoke of the benefits of pickleball, amongst other things. Ms. Kuhl explained that the Hutchinson Pickleball Association would like to propose a standalone pickleball facility at Oddfellow's Park. She explained that the group's action plan included conducting an informal survey of outdoor court usage, meeting with Lynn Neumann and the PRCE Advisory Board last June on a concept plan, taking soil samples at Oddfellow's Park, and conducting site visits to other community courts. The group has decided on eight dedicated pickleball court designs. Ms. Kuhl stated that Lynn Neumann, PRCE Director, has agreed to do some grant writing in an attempt to obtain funds for the facility. The group intends to fundraise to achieve construction of the pickleball facility. The group is hoping to collaborate with the Park and Recreation Dept. and City Council to build the eight -court pickleball facility. Preliminary construction estimate of the pickleball court facility is $525,000. The cost analysis includes: post -tension concrete, eight -foot perimeter fence with windscreens, six-foot spectator fence, four -foot court divider fence, four -foot swing gate, shade structures with no lighting included at this time. The group's goal would be to have the facility constructed in 2025. Mike McKimm, Hutchinson Pickleball Association, presented before the Council. Council Member May asked if any fundraising efforts had started. Mr. McKimm explained that none have occurred to date. He explained that when potential donors were contacted they asked if the Council had approved the project yet. Because the Council had not formally heard or approved of the project, donors would not commit prior to that occurring. Ms. Neumann explained that the specific grant that is being considered is for up to $350,000. The grant requires that the project be completed within the next year of it being awarded. The grant application also requires a Resolution of Support of the project from the Council. Mr. Jaunich provided a review of the capital improvement plan process and budgeting process. Council Member Czmowski expressed that he is fine with including the project on the CIP, but he would suggest placing it on the back end of it since other projects have been scheduled for the next few years. He noted if grants/fundraising are received sooner than when the project is on the CIP, the project could potentially be moved up on the schedule. If the project is funding fully with grants/fundraising, the Council would be okay not placing it on the CIP. Mr. McKimm noted that the Association would like some commitment from the City Council by putting the pickleball court project on the CIP. The council members informed the association that the Council will look at different scenarios placing the project on the CIP and including it in future funding plans. CITY COUNCIL MINUTES — June 25, 2024 10. ANNUAL MEETING TO RECEIVE COMMENTS AND INPUT ON THE STORM WATER POLLUTION PREVENTION PLAN FOR THE CITY OF HUTCHINSON John Paulson, Project/Environmental/Regulatory Manager, presented before the Council. Mr. Paulson provided a presentation on the annual review of the Storm Water Pollution Prevention Plan for the City of Hutchinson. The presentation included information on public education and outreach, illicit discharge detection/elimination, construction site stormwater runoff control/issues, post -construction stormwater management, and pollution prevention/good housekeeping. Mr. Paulson spoke about pond cleanout projects, lake/river basin nutrient trading analysis, ongoing MS4 activities, and efforts to seek and evaluate funding sources for lakes and river restoration. In addition, Mr. Paulson spoke about the Minnesota Cities Stormwater Coalition and One Watershed One Plan. 11. CREEKSIDE YEAR END REPORT Andy Kosek, Creekside Manager, presented before the Council. Mr. Kosek provided a year end report on Creekside Soils activities for 2023. He provided an update on the Compost it Right! Campaign and reviewed the refuse and compost funds. The refuse fund takes care of the collection and disposal of municipal solid waste and source -separated organics material. The compost fund serves as a drop-off site for compostable and recyclable materials such as logs, brush, yard waste and clean concrete & blacktop at no charge to both residents and contractors. With these materials, Creekside produces, markets, and distributes bulk and bagged compost mixtures and colored mulches to local customers and distributors with a current sales territory of 13 states from the Midwest to the Intermountain West. In addition, Creekside supplies horticultural materials and aggregates when available to various City department projects at reduced costs. Items of note for 2023 included bringing on board the Public Outreach & Education Coordinator position, having a decrease in bagged sales volume by nearly 12% due to the loss of a major customer and crushing approximately 20,000 tons of bit -con making it available for purchase in 2024. Mr. Kosek noted that objectives for 2024 include constructing and implementing a new composting system and equipment for source -separated organics material processing, continuing establishment of a "baseline" for outreach efforts for the curbside source -separated organics material and finding a home for an abundance of wood mulch due to the loss of a major customer in 2023. UNFINISHED BUSINESS NEW BUSINESS 12. APPROVE/DENY EXTENDING TEMPORARY SUSPENSION OF CITY ORDINANCE 93.41 (ANIMAL KEEPING RESTRICTIONS) TO SEPTEMBER 15, 2024, FOR PRAIRIE RESTORATIONS IN HUTCHINSON PARKS Lynn Neumann, PRCE Director, presented before the Council. Ms. Neumann explained that in November 2023, the City Council approved the temporary suspension of city ordinance 93.41 (animal keeping restrictions) from May 1 — July 31, 2024, for the "Goats on the Go" prairie restoration program in city parks. Due to the exceptionally wet spring and summer, the goat grazing project has been delayed. The grazing has been completed in Roberts Park but with the recent heavy rains, Miller's Woods Park and Riverside Park need time to dry before the goats can be placed there for grazing. In addition, the program will allow for additional grazing in East River Park. This delay requires an extension of the ordinance suspension. Staff would like to extend the program through September 15, 2024, and therefore is requesting that the temporary suspension of the ordinance be extended until then_ F1 CITY COUNCIL MINUTES — June 25, 2024 Motion by Burley, second by Czmowski, to approve extending temporary suspension of City Ordinance 93.41 to September 15, 2024, and include East River Park for "Goats on the Go" prairie restoration program. Motion carried unanimously. 13. APPROVE/DENY RESCHEDULING OF THE AUGUST 13, 2024, CITY COUNCIL MEETINGS Matt Jaunich, City Administrator, noted that the August 13, 2024, City Council meeting is on primary election day and no public meetings may be held between 4:00-6:00 p.m. In addition, a strategic planning session was scheduled to be held that same day, so the time or date of that will need to be rescheduled as well. Motion by Czmowski, second by Forcier, to approve rescheduling August 13, 2024, City Council meeting to 4:00 p.m. and cancel the strategic planning session scheduled for that day and reschedule for a different date. Motion carried unanimously. 13. 1 APPROVE/DENY PREMISES PERMIT APPLICATIONS FOR AMERICAN LEGION POST 96 AND HUTCHINSON YOUTH BASKETBALL ASSOCIATION AT 1000 HWY 7 WEST Melissa Starke, City Clerk, explained that the American Legion Post 96 and Hutchinson Youth Basketball Association have submitted premises permit applications to conduct gambling at 1000 Hwy 7 West where Flank Bar and Char will be located. The application process takes at least 30 days, therefore the organizations requested that the applications be considered at tonight's City Council meeting as the restaurant intends to open on August 1, 2024. Motion by May, second by Czmowski, to approve premises permit application for American Legion Post 96 and HYBA at 1000 Hwy 7 West. Motion carried unanimously. GOVERNANCE (The purpose of this portion of the agenda is to deal with organizational development issues, including policies, perfformances, 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 May 2024 �b) Hutchinson Housing & Redevelopment Authority Board Minutes from May 21, 2024 c) Planning Commission Minutes from May 21, 2024 (d) Parks/Recreation/Community Education Board Meeting Minutes from May 6, 2024, and June 3, 2024 MISCELLANEOUS 15. STAFF UPDATES Tom Gifferson — Chief Gifferson noted that one of the department's part-time police officers has requested to go full-time and he informed the Council that Mikayla Duenow will be starting as a full- time officer effective July 1, 2024. Mayor Forcier talked about electronic bicycles traveling at high speeds on trails. Staff can look at options on how to handle the issue. Mike Stifter — Mr. Stifter noted that improvement projects are approximately two weeks behind. Mr. CITY COUNCIL MINUTES — June 25, 2024 Stifter also spoke about flooding concerns in the state and there are no major issues within the city. Roberts Road will be fully complete by the end of the week. Matt Jaunich — Mr. Jaunich noted that city offices will be closed on July 4, 2024. He also reminded the council of the audit workshop scheduled prior to the July 9, 2024, City Council meeting at 4:30 p.m. 16. COUNCIL/MAYOR UPDATE Tim Burley — Council Member Burley noted that youth reading programs have increased at the library this summer as well as many other great activities. Dave Sebesta — Council Member Sebesta noted that the Mid Minnesota Development Commission annual meeting was held a few weeks ago. One of their main concentrations is on mobility for users throughout the region. Pat May — Council Member May noted that the Public Arts Commission met last week and all sculptures have been placed along the Sculpture Stroll. Gary Forcier — Mayor Forcier commented that he had received a request by a resident to ask that community members limit light usage at night for the fireflies as it interferes with their mating. Mayor Forcier also provided an update on housing information from the HRA. 17. CLOSED SESSION PURSUANT TO MINNESOTA STATUTE §13D.05, Subd. 3(c) TO DISCUSS SALE OF REAL PROPERTY LOCATED AT 44 WASHINGTON AVENUE WEST Motion by May, second by Burley, to convene into closed session at 6:58 p.m. Motion carried unanimously. Motion by Czmowski, second by May, to reconvene into open session at 7:07 p.m. Motion carried unanimously. ADJOURNMENT Motion by Czmowski, second by May, to adjourn at 7:08 p.m. Motion carried unanimously. 71 STRATEGIC PLANNING SESSION —TRANSPORTATION AND MOBILITY JUNE 25, 2024 - 3:45 P.M. MINUTES Members present: Mayor Gary Forcier called the session to order. Members present were Tim Burley, Dave Sebesta, Pat May and Chad Czmowski. Others present were Matt Jaunich, City Administrator and other city directors and staff. 1) Introduction to the Topic Matt Jaunich, City Administrator, explained that Transportation and Mobility is the City's Core Value Focus #3. This core value states that citizens, visitors and commerce move easily and safely throughout the city and region. Feedback from the community survey indicated that 63% rated the overall quality of the City's transportation system as excellent or good; 53% rated traffic flow on major streets as excellent or good; 70% rated the ease of public parking as excellent or good; 80% rated the ease of travel by car as excellent or good; 78% rated the ease of travel by bicycle as excellent or good; 84% rated the ease of walking as excellent or good; 88% rated the availability of paths and walking trails as excellent or good; 38% rated the ease of travel by public transportation as excellent or good; 43% rated street repair services as excellent or good; 68% rated street cleaning services as excellent or good; and 64% rated sidewalk maintenance services as excellent or good. There was an additional street tax question included on the community survey which asked residents how much of a property tax increase would they support or oppose if the revenue would be dedicated to fixing, repairing and upgrading city streets and related infrastructure and Mr. Jaunich shared those results. Resources used for Transportation and Mobility include the Light Traffic Plan, Transportation Plan, Complete Streets Policy, Airport Master Plan, Safe Routes to School Plan, McLeod County Trails Plan, Sidewalk & Trail Plan (Draft) and 2023 Bicycle Friendly Report Card. Mayor Forcier noted that he has heard comments from residents that Hutchinson's streets are the worst in state but they don't really compare them to any other specific cities. He also noted that residents say how much traffic there is on Main Street but in reality it is not that serious of a problem. He noted that some people have complained to him about roundabouts, however he feels drivers need to educate themselves on maneuvering roundabouts. Council Member May expressed that he drives through many smaller communities and Hutchinson's street conditions are excellent compared to what he sees in those smaller communities. Council Member Burley noted that comments he receives are from members of the disabled community and expressed that there are areas of the city that could use some accessibility improvements. General discussion was held on direct access transportation routes (buses, etc.) and how they operate compared to a city's population. 2) Current State of Mobility in Hutchinson Mr. Jaunich explained that the city has over 90 miles of streets, over six miles of alleys, roughly 38 miles of city trails with six pedestrian bridges & underpasses, approximately 33 miles of city sidewalks, seven bridges, 12 municipal parking lots with 543 parking spaces, and 31 acres of city facility -related parking lots & driveways. Public transit is provided by Trailblazer Transit. The city has a municipal airport with a 4000' X 75 runway and multiple hangars. The city has no rail system. The City is a silver designated Bicycle Friendly Community and has a Pavement Condition Index rating of 75 on a 1-100 scale. The City adopted a Complete Streets policy in 2015. The policy is a multi -model street planning document. 'Complete Streets" are considered streets and transportation corridors that are designed and operated to enable safe access for all users, including pedestrian, bicyclists, motorists and public transportation users of various ages and abilities. The policy is used for designing and constructing transportation projects. "Intended users" are not only motorists, but also pedestrians, bicyclists, users of mass transit, people with disabilities, the elderly and the young, freight providers, emergency responders and adjacent property owners. Benefits of the policy include recognizing safety risks posed to road users of multi -modal transportation and seeking to address those issues by providing adequate travel ways for all users; accommodating approximately 40% of Minnesotans who do not drive; increasing access to alternate means of travel, especially biking and walking that help reduce obesity rates and improve the overall health of individuals; community and economic development benefits of having "walkable" neighborhoods; cost effectiveness in that there is no need to retrofit for future pedestrian needs and maintenance costs are decreased with narrow roads; having alternate transportation options reduces the need for an auto -only transportation system; and having a policy is one of the steps required in the Green Steps Cities Program. Council Member Czmowski expressed that he thinks the Complete Streets Policy is a great tool. Council Member May agreed. 3) Current Challenges/Barriers to Mobility Mr. Jaunich reviewed some current challenges/barriers to mobility throughout the city which include increased costs of infrastructure, funding restrictions, funding of future expansions and timing of needs. Other barriers could include not having a rail system and not having a four -lane highway coming into Hutchinson. 4) The Vision/Future of Mobility within the Community for the Years to Come Mr. Jaunich noted that staff has developed future ideas for the vision of mobility within the community. These ideas include: updating the 2012 Transportation Plan; updating the 2016 Safe Routes to School Plan; finishing the 2022 Sidewalk and Trail Plan; commissioning a small study on the connectivity of Bridgewater Estates (east -west corridors as well as north -south, including sidewalks and trails) and other housing development areas that come along; studying/discussing impacts of the 212 corridor plan on both Hwy 22 as well as Hwy 15; determining the City's stance on the Dakota Rail Trail and South Grade Road/115 Trail project extensions; preparing for driverless and electric vehicles; developing/fortifying the City's Trail Maintenance Plan; preparing City facilities parking lot and service road plan; and reviewing ADA compliance city-wide. The Council expressed the importance of completing a connection from Hwy 212 to Hwy 22. The Council also discussed perhaps some importance on trail extensions of the Dakota Rail Trail and 115 Trail project which are both outside city limits. Council Member Czmowski noted that having a meeting with County Commissioners on trail extension projects and other transportation/mobility projects would be a good idea. Increasing the number of electric car charging stations could be explored. 5) Questions/Conversations/Developing Ideas and/or Directions Council Member May expressed that he feels Hwy 22 improvements should be a priority and be an actionable item for 2025. 6) Next Steps/Action Items/Developing a Plan Mayor Forcier agreed that a Hwy 22/Hwy 212 connection should be a priority and a meeting/communication with the McLeod County Commissioners on that topic and perhaps Dakota Rail Trail extension should be held. Mr. Jaunich suggested holding a meeting in January 2025 after the election. Motion by May, second by Czmowski, to adjourn at 5:10 p.m. Motion carried unanimously. u HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Agenda Item: Temporary Liquor License - McLeod County Agriculture Association Department: Administration LICENSE SECTION Meeting Date: 7/9/2024 Application Complete Yes Contact: Melissa Starke Agenda Item Type: Presenter: Melissa Starke Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The McLeod County Agriculture Association has submitted a temporary liquor license application to dispense alcoholic beverages at the McLeod County Fair being held August 15-18, 2024. The McLeod County Agriculture Association is a non-profit organization that meets the requirements for a temporary liquor license. BOARD ACTION REQUESTED: Approve issuing a temporary liquor license to McLeod County Agriculture Association from August 15-18, 2024. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: r A1coho1 & Gambling E�oreement Name of organization Minnesota Department of Public Safety Alcohol and Gambling Enforcement Division 445 Minnesota Street, Suite 1600, St. Paul, MN 55101 651-201-7507 TTY 651-282-6555 APPLICATION AND PERMIT FOR A 1 DAY TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE County Agricultural Association Date of organization Tax exempt number �1872 _ 41-0758751 Organization Address (No PO Boxes) City State Zip Code 840 Century Avenue SW Hutchinson Minnesota 55350 Name of persc Casey Walters Business phone Home phone 320-587-2499 i 320-583-7981 Date(s) of event Type of organization ❑ Microdistillery ❑ Small Brewer Thursday, August 15 - Sunday, August 18, 2024 ❑ Club ❑ Charitable ❑ Religious ❑X Other non-profit Organization officer's name City State Zip Code John Brunkhorst, President _ Hutchinson - Minnesota 55350 Organization officer's name City State Zip Code Doug Tuman, Vice President Hutchinson Iminnesota 155350 Organization officer's name City State Zip Code Connie Lambert, Treasurer Hutchinson Minnesota 55350 Location where permit will be used. If an outdoor area, describe. Event is at the McLeod County Fairgrounds forthe McLeod County Fair. Sales will be made in the Pavilion and the Grandstand. The entire perimeter of the fairgrounds is fenced in. If the applicant will contract for intoxicating liquor service give the name and address of the liquor license providing the service. N/A If the applicant will carry liquor liability insurance please provide the carrier's name and amount of coverage. Minnesota Joint Underwriting Association: 50,000 per occurence / 100,000 aggregate APPROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT (h - City or County approving the license Date Approved Fee Amount Permit Date Event in conjunction with a community festival ❑ Yes ❑ No City or County E-mail Address Current population of city Please Print Name of City Clerk or County Official Signature City Clerk or County Official CLERKS NOTICE: Submit this form to Alcohol and Gambling Enforcement Division 30 days prior to event No Temp Applications faxed or mailed. Only emailed. ONE SUBMISSION PER EMAIL, APPLICATION ONLY. PLEASE PROVIDE A VALID E-MAIL ADDRESS FOR THE CITY/COUNTY AS ALL TEMPORARY PERMIT APPROVALS WILL BE SENT BACK VIA EMAIL. E-MAIL THEAPPLICATION SIGNED BY CITY/COUNTY TO AGE. TEMPORARYAPPLICATION@STATE.MN:US HUTCHINSON CITY COUNCIL HUTCHINSON Requestfor Board Action A CITY ON PURPOSE. Agenda Item: Tattoo License - Jennifer Christensen - Something To Crow About Health Department: Administration LICENSE SECTION Meeting Date: 7/9/2024 Application Complete Yes Contact: Melissa Starke Agenda Item Type: Presenter: Melissa Starke Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Jennifer Christensen of Something to Crow About Health has submitted a tattoo license application into administration for review and processing. The application is for Ms. Christensen and staff to provide tattoo services at her business located at 140 Main Street North. A background check was completed of Ms. Christensen and the police department does not object to the issuing of the license. The applicant has completed the appropriate application, including the Conditional Use Permit application process, in full and all pertinent information has been received and approved. BOARD ACTION REQUESTED: Approve issuing tattoo license to Jennifer Christensen of Something to Crow About Health to provide tattoo services at 140 Main Street North. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: License Fee: $175.00 0 ill Hassan Street Southeast Hutchinson, MN 55350 (320)587-5151/Fax:(320)234-4240 City of Hutchinson Application for Tattoo Service License (Under Ordinance No. 118) Operating Year: 'Z_O ,pplicant Information Applicant Name Phone Number AnnlicantAddress City State zip Business Information th 1�t� 1tYiGl sr IZLvjkt 2- Byysine�ss Address Zoning District *verify the proposed use is allowed in this zoning district Comorate Information Corporate Name Address Phone Number City State Zip Ci Phone Number State Zi Owner(s)/Corporate Officer(s) (list names and addresses of all persons have a beneficial interest in the business/co oration) Name: J�nn� .� �Yw.�iS"rGr1SG^ Address City State Zip Name: Address *If nececcarv. list additional owner City State Zip ofticer(s.l on a separate sheet erators (list all individuals involved ingiving tattoo services) Name: Address City State Zip Name: Address list additional operators on a sheet City State Zip City of Hutchinson Application for Tattoo Service Page 2 of 3 Checklist (all items must be checked "ves" in order for the application to be processed) The following items need to be completed and/or attached in order for the application to be processed: Application fee paid in full (check or money order): Byes ❑ no Application completed in full and signed: 9 yes ❑ no Release of Information completed and signed: V yes ❑ no I hereby certify that I have completely filled out the entire above application and that the application is true, correct, and accurate and that I and all technicians providing services under this license are free from all communicable diseases. I fully understand that any person who violates any provision of the Tattooing Services Ordinance No. 118 is guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding $500 or by imprisonment for a peripd not exceeding 90 days or both, plus, in either case, the costs of prosecution. gnature, ofApplicant � f1 Jenny r NrtS4-Cvtsen Print Name /Z�'_/Zo2q Date f] - Title NOTE: No application will be forwarded to the City Council unless received two weeks prior to the regular Council meeting, filled out in completion., and fee payment is attached Internal Use Only Jaapproved Notes: Zoning/Building Police ,Bapprov?d ❑denied Notes: City Council .Japproved ❑denied Notes: H:Licenses/Applicationslrattoo.doc Alf Release of Information Form V HUTCHINSON CITY COUNCIL H UTCH I NSON Request for Board Action A CITY ON PURPOSE. Agenda Item: Resolution No. 15750 - Appointing Election Judges for Primary Election Department: Administration LICENSE SECTION Meeting Date: 7/9/2024 Application Complete N/A Contact: Melissa Starke Agenda Item Type: Presenter: Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The state/local primary election is being held August 13 2024, at the previously established polling locations of Ridgewater College (Precinct 1) - 2 Century Avenue SE: Days Inn (Precinct 2) - 1000 Hwy 7 West and the Hutchinson Recreation Center (Precinct 3) - 900 Harrington Street. In accordance with State law, cities must appoint election judges for this election by July 19, 2024. Attached is Resolution No. 15750 appointing election judges to serve at the primary election. Election judge appointments for the general election will be made this Fall. BOARD ACTION REQUESTED: Approve Resolution No. 15750 - Appointing Election Judges for Primary Election Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 15750 RESOLUTION DESIGNATING THE LOCATION OF POLLING PLACE FOR ALL CITY PRECINCTS AND APPOINTING JUDGES FOR THE 2024 PRIMARY ELECTION WHEREAS, Chapter 204B, Section 204B.16, Subd. 1 and Section 20413.21, Subd. 2 of the Laws of Minnesota states that the governing body of any municipality, by resolution adopted prior to the giving of notice of the election, may designate the location of polling place of all precincts (one, two, and three) and naming of judges serving in their municipality. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: That the polling places to be used during the 2024 Primary Election are as follows: Precinct 1 — Ridgewater College, 2 Century Avenue SE Precinct 2 — Days Inn, 1000 Hwy 7 West Precinct 3 — Recreation Center, 900 Harrington Street SW 2. That the Election Judges for the Primary Election being held August 13, 2024, are hereby appointed in accordance with the attached list. Be It Further Resolved that the Hutchinson Election Administrator is with this authorized to make any substitutions or additions as deemed necessary. Adopted by the City Council this 91h day of July, 2024. Gary T. Forcier, Mayor ATTEST: Matthew Jaunich, City Administrator PRIMARY ELECTION AUGUST 13, 2024 ELECTION JUDGES MARIE HARWARTH CATHY PRELLWITZ* NANCY NACKERUD GLADYS PILGRIM CAROL M. JOHNSON KELLY NELSON BEVERLY EMME SCOTT NELSON BRUCE DRAHOS KARA SCHMOLL JAMES SCHAEFER CALYN LIESTMAN* KEAGEN PETERSEN* JEREMY BOLLING VANESSA LAHR BETTY BRANDT CHARLES BERGUM BRENDA EWING *indicates head judge CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE 7/9/24 Check Date Check # Name Description Amount 6/28/2024 EFT EFTPS Payroll Report 6/9/24 - 6/22/24 88,929.27 6/28/2024 EFT MN Dept of Revenue Payroll Report 6/9/24 - 6/22/24 17,480.83 6/28/2024 EFT MNDCP Payroll Report 6/9/24 - 6/22/24 325.00 6/28/2024 EFT Child Support Payroll Report 6/9/24 - 6/22/24 1,102.90 6/28/2024 EFT UNUM Voluntary Insurance Payroll Report 6/9/24 - 6/22/24 341.77 6/28/2024 EFT PERA Payroll Report 6/9/24 - 6/22/24 63,986.05 6/28/2024 EFT Further HSA Payroll Report 6/9/24 - 6/22/24 19,147.30 6/28/2024 EFT Mission Square Payroll Report 6/9/24 - 6/22/24 4,893.63 6/28/2024 EFT VOYA Payroll Report 6/9/24 - 6/22/24 260.00 6/28/2024 116286 Manual Employee Check Payroll Report 6/9/24 - 6/22/24 800.17 6/28/2024 116287 Manual Employee Check Payroll Report 6/9/24 - 6/22/24 265.05 6/28/2024 116288 HART Payroll Report 6/9/24 - 6/22/24 400.22 6/28/2024 116289 LELS Union Dues Payroll Report 6/9/24 - 6/22/24 352.50 6/28/2024 116290 MNPEA Payroll Report 6/9/24 - 6/22/24 720.00 6/28/2024 116291 UNUM Life & ADD Insurance Payroll Report 6/9/24 - 6/22/24 1,006.26 7/9/2024 116292 ABDO AUDIT SERVICES YE 2023 6,246.00 7/9/2024 116293 ACE HARDWARE - 1315 REPAIR & MAINT SUPPLIES, WATER METERS - MULTIPLE DEPTS 13,342.53 7/9/2024 116294 ACE HARDWARE - 1790 SHOP SUPPLIES - FIRE 8.99 7/9/2024 116295 ACE HARDWARE - 1825 REPAIR & MAINT SUPPLIES - POLICE 48.49 7/9/2024 116296 ACT DUST COLLECTORS NANO -ELITE FILTERS FOR BAGGER - CREEKSIDE 1,705.92 7/9/2024 116297 ADVANCED ENGINEERING & ENVIRONMENTA SCADA MAINTENANCE - WATER/WWTP 702.70 7/9/2024 116298 ALLEGION ACCESS TECHNOLOGIES LLC ENTRY DOOR SERVICE - LIQUOR HUTCH 299.42 7/9/2024 116299 ARTISAN BEER COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 836.95 7/9/2024 116300 AUTO VALUE - GLENCOE MALE PIPE - HATS 33.59 7/9/2024 116301 AUTO-CHLOR SYSTEM DISHWASHER SERVICE - SR DINING 262.30 7/9/2024 116302 BARNUM COMPANIES INC GATE REPAIR -WATER 1,666.64 7/9/2024 116303 BEACON ATHLETICS REPLACEMENT PORTABLE FENCE POSTS - PARKS 440.00 7/9/2024 116304 BELLBOY CORP COST OF GOODS SOLD - LIQUOR HUTCH 7,519.84 7/9/2024 116305 BERNICK'S COST OF GOODS SOLD - LIQUOR HUTCH 2,064.27 7/9/2024 116306 BEYOND BROKEN 2024 SHOW GUIDE ADV - LIQUOR HUTCH 160.00 7/9/2024 116307 BFG SUPPLY CO LLC PERLITE - CREEKSIDE 7,744.88 7/9/2024 116308 BIG LAKE FASTPITCH REFUND -TOURNAMENT 350.00 7/9/2024 116309 BLACK GOLD ENVIRONMENTAL SERVICES HATS OIL BURNER CLEANOUT - HATS 500.50 7/9/2024 116310 BOBBING BOBBER BREWING CO COST OF GOODS SOLD - LIQUOR HUTCH 392.66 7/9/2024 116311 BOLTON & MENK INC AIRPORT, LAKES & RIVERS PROJECTS 14,032.00 7/9/2024 116312 BRAUN INTERTEC CORP GEOTECHNICAL SERVICES - ENG 10,113.65 7/9/2024 116313 BREAKTHRU BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 19,309.17 7/9/2024 116314 BUFFALO CREEK ENTERPRISES COST OF GOODS SOLD - LIQUOR HUTCH 190.32 7/9/2024 116315 C & L DISTRIBUTING COST OF GOODS SOLD - LIQUOR HUTCH 62,915.58 7/9/2024 116316 CANNON RIVER WINERY COST OF GOODS SOLD - LIQUOR HUTCH 360.00 7/9/2024 116317 CARPETSPLUS COLOR TILE INSTALL BASE AROUND CASHIER STATIONS - LIQUOR HUTCH 382.22 7/9/2024 116318 CARS ON PATROL SHOP LLC RADIO REPAIRS - FIRE 335.50 7/9/2024 116319 CENTRAL LANDSCAPE SUPPLY PAVERS FOR KIWANIS PAD - PARKS 220.50 7/9/2024 116320 CENTRAL MCGOWAN HATS WELDING SUPPLIES 627.98 7/9/2024 116321 CHERRYROAD MEDIA INC ADVERTISING - MULTIPLE DEPTS 1,914.00 7/9/2024 116322 CINTAS CORPORATION SUPPLIES & SERVICE - MULTIPLE DEPTS 414.19 7/9/2024 116323 COKER COMPOSTING AND CONSULTING SUPPORT TO COMPOST IT RIGHT MPCA GRANT-CREEKSIDE 100.00 7/9/2024 116324 COLORBIOTICS LLC BLACK COLORANT - CREEKSIDE 2,407.00 7/9/2024 116325 CORE & MAIN LP METER GASKETS, METERS - WATER REPLACEMENT PROJECT 72,931.90 7/9/2024 116326 CROW RIVER AUTO REPAIR REPAIR BRAKES ON F150 #127 - PARKS 129.89 7/9/2024 116327 CROW RIVER WINERY COST OF GOODS SOLD - LIQUOR HUTCH 787.20 7/9/2024 116328 DAHLHEIMER BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 79,022.53 7/9/2024 116329 DAVIS, GEOFF REFUND: COACHING - REC 30.00 7/9/2024 116330 DEMARAIS, AIDAN THOMAS SCULPTURE STROLL 2024 500.00 7/9/2024 116331 EARTHLY DELIGHTS LTD JUNE TAX SETTLEMENT 2024 10,970.20 7/9/2024 116332 ECOLAB PEST ELIMINATION RODENT PROGRAM - CREEKSIDE 212.61 7/9/2024 116333 EHLERS & ASSOCIATES INC PAYING AGENT FEES 4,750.00 7/9/2024 116334 ELECTRIC FUSION.COM SCULPTURE STROLL 2024 1,000.00 7/9/2024 116335 ELECTRO WATCHMAN ADDED CODE TO PANEL- LIBRARY 25.00 7/9/2024 116336 ELK RIVER COMPOSTING INC COMPOST BULK 42,821.52 7/9/2024 116337 ESS BROTHERS & SONS WATER VALVE TOP SECTIONS - WATER 3,108.00 7/9/2024 116338 FARM -RITE EQUIPMENT EQUIPMENT PARTS - CREEKSIDE 824.82 7/9/2024 116339 FASTENAL COMPANY REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 1,729.76 7/9/2024 116340 FENRICH, TAYLOR REIMB: TACT DRIVING SCHOOL - POLICE 17.18 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE 7/9/24 Check Date Check # Name Description Amount 7/9/2024 116341 FLOW MEASUREMENT & CONTROL COMPANY FLOWMETER CALS - WWTP 2,102.00 7/9/2024 116342 FOSTER MECHANICAL HVACREPAIR - CITY CENTER 185.00 7/9/2024 116343 FUZE LOGISTICS SERVICES USA INC CREEKSIDE FREIGHT TO MULTIPLE DEPTS 6,400.00 7/9/2024 116344 GALLS LLC BELTS, PANTS- MULTIPLE DEPTS 527.01 7/9/2024 116345 GOLD MEDAL PRODUCTS CO CONCESSIONS - REC, WATERPARK 4,014.27 7/9/2024 116346 GRAINGER REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 1,202.78 7/9/2024 116347 GRANICUS LLC BLDG DEPARTMENT SOFTWARE &TRAINING 8,095.90 7/9/2024 116348 GRATKE, TIM REIMB: CSWEA CONF, MESERB MTG - WWTP 430.70 7/9/2024 116349 GREEN EARTH LAWN CARE INC WEEKLY LAWN CARE- EDA 288.00 7/9/2024 116350 HACH COMPANY AMMONIA, NITRATE TNTS - WWTP 731.34 7/9/2024 116351 HALL, MARK V SCULPTURE STROLL 2024 1,000.00 7/9/2024 116352 HANSEN, GEOFF REIMB: SAFETY FOOTWEAR - STREETS 209.39 7/9/2024 116353 HARRINGTON INDUSTRIAL PLASTICS PVC PIPING ACCESSORIES - WWTP 582.50 7/9/2024 116354 HAWKINS INC CHEMICALS - WATER 3,584.58 7/9/2024 116355 HILLYARD / HUTCHINSON OPERATING SUPPLIES - MULTIPLE DEPTS 2,455.33 7/9/2024 116356 HJERPE CONTRACTING REPAIRS, NEW SERVICE INSTALLS - MULTIPLE DEPTS 38,455.00 7/9/2024 116357 HOECKE, RODNEY REFUND OF ASSESSMENT PAYMENT 1,100.00 7/9/2024 116358 HOME CITY ICE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 1,406.83 7/9/2024 116359 HORIZON COMMERCIAL POOL SUPPLY POOL RAILING REPAIRS - WATERPARK 170.72 7/9/2024 116360 HUTCHINSON CENTER FOR THE ARTS 2024 CONTRIBUTION 15,000.00 7/9/2024 116361 HUTCHINSON CO-OP MOTOR FUELS & LUBRICANTS - MULTIPLE DEPTS 3,890.67 7/9/2024 116362 HUTCHINSON FIRE DEPT RELIEF ASSN LOCAL FIRE PENSION CONTRIB 37,500.00 7/9/2024 116363 HUTCHINSON HEALTH MEDICAL BILL- POLICE 400.33 7/9/2024 116364 HUTCHINSON LACROSSE ASSN SPRING 2024 REGISTRATION FEES - REC 8,625.00 7/9/2024 116365 HUTCHINSON LEGION BASEBALL SPRING 2024 REGISTRATION FEES - REC 8,140.00 7/9/2024 116366 HUTCHINSON UTILITIES BRANDONFITZPATRICKGISSERVICES - IT 17,168.32 7/9/2024 116367 HUTCHINSON WHOLESALE #1550 EQUIPMENT PARTS - MULTIPLE DEPTS 91.81 7/9/2024 116368 HUTCHINSON, CITY OF WATER BILLS - MULTIPLE DEPTS 7,387.99 7/9/2024 116369 IMAGINATION PLAYGROUND LLC INDOOR PLAYGROUND EQUIPMENT (GRANT FUNDED) 4,277.00 7/9/2024 116370 IMS-INDUSTRIAL MAINTENANCE SUPPLIES CATCH BASINS REPAIRED -STORMWATER 2,700.00 7/9/2024 116371 INGSTAD BROADCASTING RADIO ADVERTISING - LIQUOR HUTCH 50.00 7/9/2024 116372 INTERSTATE BATTERY SYSTEM OF MPLS HATS BATTERIES 237.85 7/9/2024 116373 ISAAC KIDDER LLC SCULPTURE STROLL 2024 1,000.00 7/9/2024 116374 ISD #423 SCULPTURE STROLL 2024 1,000.00 7/9/2024 116375 ISD #423 CLASSES - COMM ED 876.80 7/9/2024 116376 JAMES, TIMOTHY PAUL SCULPTURE STROLL 2024 500.00 7/9/2024 116377 JAUNICH, MATT REIMB:LM000NF-ADMIN 282.07 7/9/2024 116378 JMS CONCRETE CONCRETE WORK - VARIOUS STREETS PROJECTS 8,500.00 7/9/2024 116379 JOHNSON BROTHERS LIQUOR CO COST OF GOODS SOLD - LIQUOR HUTCH 30,741.98 7/9/2024 116380 JUUL CONTRACTING CO SEWER REPAIRS- WWTP 24,740.61 7/9/2024 116381 K & A CONTRACTING LLC SIDEWALK REPAIRS -STREETS 7,682.40 7/9/2024 116382 KAM RATH, JONATHAN MATTHEW SCULPTURE STROLL 2024 1,000.00 7/9/2024 116383 KERI'S CLEANING & HANDYMAN SERVICES CONTRACTED JANITORIAL- MULTIPLE DEPTS 5,281.06 7/9/2024 116384 KGB CORNERSTONE COMMONS LLC JUNE TAX SETTLEMENT 2024 17,317.71 7/9/2024 116385 KOHLS SWEEPING SERVICE PILING CONCRETE AND ASPHALT- CREEKSIDE 262.50 7/9/2024 116386 KRANZ LAWN & POWER EQUIPMENT PARTS - MULTIPLE DEPTS 910.25 7/9/2024 116387 KWIKTRIP AQUATICCENTER- CONCESSIONS 395.60 7/9/2024 116388 L & P SUPPLY CO MISC EQUIPMENT PARTS, PUB WORKS GATOR XUV 9,917.72 7/9/2024 116389 LAKELAND MEDIA LLC RADIO ADVERTISING -LIQUOR HUTCH 310.00 7/9/2024 116390 LAWSON PRODUCTS INC CUTTING TOOL BUNDLE - HATS 280.00 7/9/2024 116391 LEAGUE OF MN CITIES -INS TRUST 2023 WORK COMP AUDIT 15,511.00 7/9/2024 116392 LENARZ, TRISHA PHOTOGRAPHY - REC 599.99 7/9/2024 116393 LOCATORS & SUPPLIES RAIN PANTS & JACKETS -STREETS 292.25 7/9/2024 116394 LOGIS LOGIS CONSULTING, CERTS - MULTIPLE DEPTS 41,202.25 7/9/2024 116395 LUPINE CONSTRUCTION LLC CHURCH DOOR REPLACEMENT 957.13 7/9/2024 116396 MARCO TECHNOLOGIES LLC PRINTING CONTRACT- MULTIPLE DEPTS 986.74 7/9/2024 116397 MARCO TECHNOLOGIES LLC NW 7128 PRINTING CONTRACT- MULTIPLE DEPTS 323.89 7/9/2024 116398 MCLEOD COUNTY HHW FLUORESCENT BULB RECYCLING - PARKS 2.50 7/9/2024 116399 MCLEOD COUNTY PUBLIC WORKS 2023-2024 SALT SEASON - STREETS 24,273.60 7/9/2024 116400 MENARDS HUTCHINSON REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 2,419.37 7/9/2024 116401 MICHAEL MURPHY CONSTRUCTION LLC BRICK WALL DEMO HAZ BLDG 40 MAIN ST S 4,225.00 7/9/2024 116402 MINI BIFF PORTA TOILET RENTALS - MULTIPLE DEPTS 440.13 7/9/2024 116403 MINNCLEAN SERVICES COMMCARPETSTEAMCLEANING - CITY CENTER 2,263.14 7/9/2024 116404 MINNESOTA ASSN OF CEMETERIES ANNUAL MAC DUES - CEMETERY 136.00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE 7/9/24 Check Date Check # Name Description Amount 7/9/2024 116405 MINNESOTA COUNTY ATTORNEY ASSN RECEIPT/INVENTORY&RETURNFORMS - POLICE 33.00 7/9/2024 116406 MINNESOTA DEPT OF AGRICULTURE FERTILIZER TONNAGE 2024 - WWTP 10.00 7/9/2024 116407 MINNESOTA VALLEY TESTING LAB LAB SAMPLE TESTING - MULTIPLE DEPTS 2,942.80 7/9/2024 116408 MORGAN CREEK VINEYARDS COST OF GOODS SOLD - LIQUOR HUTCH 2O1.60 7/9/2024 116409 MOTZKO, ADDIE SCULPTURE STROLL 2024 1,000.00 7/9/2024 116410 MTI DISTIBUTING INC MOWER REPAIR PARTS - PARKS 416.99 7/9/2024 116411 NELSEN, TIM SCULPTURE STROLL 2024 1,000.00 7/9/2024 116412 NEW FRANCE WINE COST OF GOODS SOLD - LIQUOR HUTCH 1,891.00 7/9/2024 116413 NORTH CENTRAL LABORATORIES BUFFER SOLUTIONS - WWTP 643.88 7/9/2024 116414 NORTHSTAR SURVEYING INC SURVEYING - ENG 200.00 7/9/2024 116415 NOTHING BUT HEMP COST OF GOODS SOLD - LIQUOR HUTCH 1,230.00 7/9/2024 116416 NOVACARE REHABILITATION EE SCREENING - POLICE 185.00 7/9/2024 116417 NUSS TRUCK & EQUIPMENT REPAIR FUEL LEAK ON SEMI 475 - CREEKSIDE 317.75 7/9/2024 116418 NUVANTAGE EMPLOYEE RESOURCE NUVANTAGE EAPJUL THRU DEC 2024 1,922.12 7/9/2024 116419 NYANHONGO, GEDION SCULPTURE STROLL 2024 1,000.00 7/9/2024 116420 ODP BUSINESS SOLUTIONS LLC HATS BREAKROOM-SALT/PEPPER 31.58 7/9/2024 116421 ORACLE AMERICA INC TALEO PERFORMANCE REVIEW SOFTWARE - MULTIPLE DEPTS 1,338.88 7/9/2024 116422 O'REI LLY AUTO PARTS CHEMICAL STRIPPER - WATERPARK 78.99 7/9/2024 116423 PARK NICOLLET CLINIC CAM - EVENT CENTER 1,500.00 7/9/2024 116424 PATROL PC PATROL CAR DOCK - POLICE 620.76 7/9/2024 116425 PAUSTIS WINE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 1,589.50 7/9/2024 116426 PEDERSEN, ZAC REIMB: BOILERS EXAM, CDLAPP- WWTP 689.39 7/9/2024 116427 PEN & INC WB MANURE REVISED PLATES-CREEKSIDE 2,752.46 7/9/2024 116428 PENS.COM REUSABLE SHOPPING BAGS WITH LOGO- WWTP 391.77 7/9/2024 116429 PEOPLEREADY INC CREEKSIDE TEMP STAFFING 3,411.54 7/9/2024 116430 PHILLIPS WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 41,252.91 7/9/2024 116431 PIONEER ATHLETICS / PIONEER MFG STARLINER PAINTER FOR VMF - PARKS 188.00 7/9/2024 116432 PLUMBING & HEATING BY CRAIG MCLEOD VETS RESTROOM FAN REPAIRS - PARKS 1,034.44 7/9/2024 116433 POHLMEIER, RICH FASTPITCH UMPIRES - REC 3,100.00 7/9/2024 116434 PRECISION CONCRETE CUTTING CONTRACTUAL R&M - CITY CENTER 876.00 7/9/2024 116435 PREMIUM WATERS BREAKROOM WATER - PARKS 100.48 7/9/2024 116436 QUADE INVESTMENTS LLC FACADE IMPV MATCHING GRANT- EDA 6,353.47 7/9/2024 116437 QUARRY CREEK NURSERY INC KIWANIS LANDSCAPING WALL BLOCK- PARKS 981.00 7/9/2024 116438 QUILL CORP OFFICE SUPPLIES - MULTIPLE DEPTS 670.91 7/9/2024 116439 R & R EXCAVATING L1P23-01: ROBERTS RD SW 91,084.09 7/9/2024 116440 R & R EXCAVATING L1P24-STREET IMPROVEMENTS 651,796.11 7/9/2024 116441 RAH PAINTING & CONTRACTING LLC SPRING CLEANUP -STREETS 6,095.00 7/9/2024 116442 RED BULL DISTRIBUTION COMPANY INC COST OF GOODS SOLD - LIQUOR HUTCH 292.56 7/9/2024 116443 REESE CUSTOM WOOD BUILD LLC COST OF GOODS SOLD - LIQUOR HUTCH 175.00 7/9/2024 116444 REINER ENTERPRISES INC FLATBED TRUCKING -CREEKSIDE 685.62 7/9/2024 116445 REVIER WELDING RAILING FOR DRIFTRIDER PARK OVERLOOK- PARKS 3,283.56 7/9/2024 116446 RIVERLAND COMMUNITY COLLEGE REGIONAL FIRE SCHOOL 810.00 7/9/2024 116447 ROGOTZKE, AMY SPRING 2024 GYMNASTICS - REC 1,170.00 7/9/2024 116448 ROULEAU, VICTOR SCULPTURE STROLL 2024 1,000.00 7/9/2024 116449 RUNNING'S SUPPLY REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 107.97 7/9/2024 116450 S&S TRUCKING LLC FLATBED TRUCKING - CREEKSIDE 900.00 7/9/2024 116451 SCHERER & SONS TRUCKING INC FLATBED TRUCKING - CREEKSIDE 750.00 7/9/2024 116452 SECURITY BANK & TRUST CO GENERAL OBLIGATION IMPRV BONDS, SERIES 2020A 10,036.25 7/9/2024 116453 SEPPELT, MILES REIMB: EDAM CONF - EDA 93.58 7/9/2024 116454 SHORT-ELLIOT-HENDRICKSON INC ENGINEERING SERVICES FOR VARIOUS PROJECTS 14,103.20 7/9/2024 116455 SITEONE LANDSCAPE SUPPLY GRASS SEED FOR MISC PARKS 937.45 7/9/2024 116456 SMALL LOT WINE AND SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 775.58 7/9/2024 116457 SOIL CONTROL LAB FINISHED COMPOST STA- CREEKSIDE 1,137.00 7/9/2024 116458 SOUTHERN MINNESOTA INSPECTION AUTO LIFT INSPECTIONS- MULTIPLE DEPTS 1,336.95 7/9/2024 116459 SOUTHERN WINE & SPIRITS OF MN COST OF GOODS SOLD - LIQUOR HUTCH 69,452.67 7/9/2024 116460 SOUTHWEST CORRIDOR TRANS COALITION DUES & SUBSCRIPTIONS - ENG 1,000.00 7/9/2024 116461 SOUTHWEST INITIATIVE FOUNDATION ANNUAL SUPPORT FOR SWIF - EDA 6,000.00 7/9/2024 116462 SPARTAN ATHLETIC CO LLC PICKLEBALL NET SYSTEM - PARKS 15,675.94 7/9/2024 116463 ST. CLOUD TECHNICAL COLLEGE BOILER LICENSE TRAINING - MULTIPLE DEPTS 866.66 7/9/2024 116464 STANDARD PRINTING-N-MAILING POSTAGE & SUPPLIES - MULTIPLE DEPTS 1,987.85 7/9/2024 116465 STAPLES ADVANTAGE OFFICE SUPPLIES - MULTIPLE DEPTS 182.15 7/9/2024 116466 STAR TRIBUNE SUBSCRIPTION 7/1-9/30/2024 - SR CENTER 65.55 7/9/2024 116467 STONY CREEK LANDSCAPES INC SCULPTURE STROLL 2024 1,000.00 7/9/2024 116468 STOUFER, DANY SCULPTURE STROLL BROCHURES 329.69 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE 7/9/24 Check Date Check # Name Description Amount 7/9/2024 116469 STREICH TRUCKING CREEKSIDE FREIGHT TO MULTIPLE DEPTS 345.00 7/9/2024 116470 SWATMOD LLC ARMORED VECHICLE TRAINING - POLICE 375.00 7/9/2024 116471 SYSCO WESTERN MN CONCESSIONS -AQUATICS 2,343.54 7/9/2024 116472 TALL SALES COMPANY MAY COMMISSIONS - CREEKSIDE 20,010.16 7/9/2024 116473 TIDY TIGHTWADS/HUTCHFIELDSERVICES HATS JANITORIAL SERVICE 1,485.75 7/9/2024 116474 TITAN MACHINERY EQUIPMENT PARTS - MULTIPLE DEPTS 4,190.44 7/9/2024 116475 T-MOBILE PHONE SERVICES - MULTIPLE DEPTS 2,728.60 7/9/2024 116476 TREASURER, STATE OF MN 3 YR AIRP RENEW -PUBLIC USE LANDING AREAS - ENG 40.00 7/9/2024 116477 TRI COUNTY WATER BOTTLE WATER AND DEL- MULTIPLE DEPTS 4,076.21 7/9/2024 116478 TRI-STATE BOBCAT MS563T CLUTCH ASSY - STREETS 2,192.00 7/9/2024 116479 TWENTY4SEVEN FIRE & SECURITY CORPORATION ANNUAL MONITORING - POLICE 1,050.00 7/9/2024 116480 UDOFOT BEER & BEVERAGE CO COST OF GOODS SOLD - LIQUOR HUTCH 337.50 7/9/2024 116481 ULINE AQUATIC CENTER- OPERATING SUPPLIES 161.07 7/9/2024 116482 UNITED FARMERS COOP HATS UNLEADED FUEL 24,210.55 7/9/2024 116483 UNUM LIFE INSURANCE CO OF AMERICA LIFE & LTD INSURANCE 2,960.12 7/9/2024 116484 VIKING BEER COST OF GOODS SOLD - LIQUOR HUTCH 31,081.00 7/9/2024 116485 VIKING COCA COLA COST OF GOODS SOLD - LIQUOR HUTCH 969.25 7/9/2024 116486 VINOCOPIA INC COST OF GOODS SOLD - LIQUOR HUTCH 4,571.75 7/9/2024 116487 VIVID IMAGE ADVERTISING CHILD CARE - EDA 900.00 7/9/2024 116488 WANG, JOEL REIMB: EDAM CONF - EDA 142.18 7/9/2024 116489 WASTE MANAGEMENT OF WI -MN REFUSE TAKEN TO LANDFILL 2,089.68 7/9/2024 116490 WATER CONSERVATION SERVICE INC LEAK LOCATE-126 SELCHOW - WATER 657.41 7/9/2024 116491 WILSON'S NURSERY INC TREES -STREETS 2,577.00 7/9/2024 116492 WINE COMPANY, THE COST OF GOODS SOLD - LIQUOR HUTCH 8,875.20 7/9/2024 116493 WINE MERCHANTS INC COST OF GOODS SOLD - LIQUOR HUTCH 3,035.37 7/9/2024 116494 WINEBOW FINE WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 431.32 7/9/2024 116495 YEPEZ, VICTOR SCULPTURE STROLL 2024 1,000.00 7/9/2024 116496 COOK, TIM UB REFUND 113.39 7/9/2024 116497 GUTKNECHT, VANESSA UB REFUND 56.26 7/9/2024 116498 HASTINGS, DAVID UB REFUND 44.71 7/9/2024 116499 HOLTZ, MAYNARD UB REFUND 16.54 7/9/2024 116500 KEISER, SUSAN & DANIEL UB REFUND 116.10 7/9/2024 116501 MGE PROPERTIES LLLP UB REFUND 17.91 7/9/2024 116502 MILLER, ELI UB REFUND 32.70 7/9/2024 116503 WILSON, MISSY UB REFUND 3.05 Total - Check Register A: $ 2,045,884.77 HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Lakes and River Improvements Project Update Agenda Item: Department: PW/Eng LICENSE SECTION Meeting Date: 7/9/2024 Application Complete N/A Contact: John Paulson Agenda Item Type: Presenter: Todd Hubmer Reviewed by Staff ❑� Communications, Requests Time Requested (Minutes): 20 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: The State of Minnesota allocated $3.1 million to the City of Hutchinson for the for the restoration of Campbell & Otter Lakes in 2022. This phase has focused on reducing the sediment load received by the two lakes from the Crow River and upstream tributaries. This includes: wetland restoration, stormwater best management practices, riparian and lakeshore restoration and an upstream sediment forebay. This project was anticipated to change the cross-section of more than 1-acre of Public Waters and therefore, was required to prepare an Environmental Assessment Worksheet (EAW). The EAW was completed in 2023. Additional state permitting will be required prior to implementing any of the proposed improvements. The state agencies that issue these permits have been engaged throughout this planning and design process. Staff has been meeting with the landowners recently where many of these restoration and forebay projects would be located. These discussions have prompted revisions to the project concepts as well as easements, access, and land use impacts based due to landowner feedback. A project update will be presented for informational purposes. City staff and Bolton & Menk staff will be available to answer questions and provide additional insights during the discussion. BOARD ACTION REQUESTED: NA 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 c HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Summary Review and Approval of the 2023 Audited Comprehensive Financial Agenda Item: Report Department: Finance LICENSE SECTION Meeting Date: 7/9/2024 Application Complete N/A Contact: Justin Juergensen Agenda Item Type: Presenter: Abby Schmidt Reviewed by Staff ❑� New Business Time Requested (Minutes): License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: Abby Schmidt, audit manager of the City's independent audit firm Abdo, will present a summary review of the City's 2023 annual financial report. A more detailed review will take place at the 4:30pm council workshop prior to the council meeting. Summary financial statements will be printed in the July 12th edition of the McLeod County Chronicle and an electronic copy of the audited financial report will be available on the City website. BOARD ACTION REQUESTED: Approve the 2023 comprehensive financial report. 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 IF Lighting the path forward City of Hutchinson 2023 Financial Statement Audit Introduction Audit Results General Fund Results Other Governmental Funds Enterprise Funds Key Performance Indicators ANM0 Audit Results Auditor's Opinion Minnesota Legal Compliance IV (Ijkt) Unmodified opinion No instances of noncompliance Single Audit Report 109 One instance of noncompliance with OMB Compliance Supplement requirements N'w Audit Results 2023 Audit Findings Uniform Guidance Policy • Compliance Finding ANM0 General Fund Fund Balances $16,0 00,0 00 $14,000,000 $14,889,400 �� —r $13,963,993 $14,354,436 $12,000,000 $13,124,793 $13,452,599 $13,676,142 $10,0 00,0 00 $8,000,000 54.9°i° 58.0% 59.7% 54.9% 54.9% 10°i° 10°i° 10% 10% $6,000,000 $4,000,000 40% 40% 40% 40% 40% $2,000,000 $ 201 2020 2021 2022 2023 2024 t Unrestricted Fund Balance —F Budget —,� Fund Balance Policy �— Committed for Contingencies and Tax Levy Stabilization General Fund Budget to Actual Revenues Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 Final Budgeted Actual Variance with Amounts Amounts Final Budget S 11,629,900 S 11,977,178 S 347,278 13,865,814 13,773,534 92,280 (2,235,914) (1,796,356) 439,558 2,724,536 2,724,536 (488,622) (488,622) 2,235,914 2,235,914 $ - 439,558 $ 439,558 7,885,673 $ 8,325,231 General Fund Revenues by Type $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 Taxes Intergovernmental Charges for Transfers in Other Services ■ 2021 2022 2023 ANM0 General Fund Expenditures by Type $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 ANM0 General Public Safety Streets and Culture and Other Government Highways Recreation ■ 2021 ■ 2022 2023] Fund Balances December 31 Increase Fund 2023 2022 (Decrease) Rural Fire Department $ 32546 $ 21,275 $ 11,271 Hutchinson Area Transportation Facility 589,595 506,499 83,096 Economic Development Loan 518,580 518,061 519 Energy Loan 855,217 839,004 16,213 Minnesota Investment 18,502 17,262 1,240 Hutchinson Enterprise Center (166,992) (186,774) 19,782 HRA Loan 86,177 82,297 3,880 Housing Rehabilitation Grant 579,635 678,936 (99,301) Tax Increment 187,098 282,340 (95,242) Tax I ncrememt 2016 (462,060) (458,671) (3,389) TIF #4.17 Enterprise Center (111,367) (118,001) 6,634 TIF #4-18 Highfield Housing Development 10,548 7,230 3,318 TI F #4-19 Highway 7 & 15 Solis Condition 3,973 Z620 1,353 TIF #4-20 Warrior Expansion Z546 (827) 3,373 TI F #4-21 1105 Benjamin Ave SE Z362 1,394 968 TI F #4-22 Jorgenson Hotel (5,570) (5,356) (214) TIF #4-23 RD Machine Expansion (7,500) 13,894 (21,394) Public Sites 359,691 340,716 18,975 Tree Disease Mitigation 520,610 509,316 11,294 COVID Relief Funding - Total $ 3,013,591 $ 3,051,215 $ (37,624) ANM0 Special Revenue Fund Balances $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $(500,000) $(1,000,000) Restricted Committed Unassigned ■ 2021 ■ 2022 ■ 2023 ANM0 Special Revenue Fund Balances Fund Nonmajor Police Facility Construction Capital Improvements Projects MSA Construction Community Improvement Airport Renovation Equipment Replacement Special Assessment Improvement 2021 Special Assessment Improvement 2022 Special Assessment Improvement 2023 Total $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ (1,000,000) $ (2,000,000) Fund Balances December31 Increase 2023 2022 (Decrease) $ (918,299) $ (547,642) $ (370,657) 3,745,783 2,461,135 1,284,648 2,546,642 3,344,205 (797,563) (824,561) 52,949 (877,510) 956,789 - 956,789 - (837) 837 117,442 (117,442) 689,443 (145,476) 834,919 $ 6,195,797 $ 5,281,776 $ 914,021 Restricted Committed Assigned Unassigned ■ 2021 ■ 2022 ■ 2023 Capital Projects Fund Balances Debt Descri G.O. Tax Increment Bonds 2004C G.O. Tax Increment Refunding G.O. Bonds G.O. Improvement Bonds of 2021A- Police Facility G.O. Tax Abatement Bonds of 2021A G.O. Improvement Bonds of 2022A Total G.O. Bonds G.O. Special Assessment Bonds G.O. Improvement and Refunding Bonds of 2014A (Refunded 2008A) G.O. Improvement Bonds of 2015A G.O. Improvement Bonds of 2016A G.O. Improvement Bonds of 2017A G.O. Improvement Bonds of 2018A G.O. Improvement Bonds of 2019A G.O. Improvement Bonds of 2020A G.O. Improvement Bonds of 2021A G.O. Improvement Bonds of 2023A G.O. Improvement Bonds of 2024A Total G.O. Special Assessment Bonds Total All Debt Service Funds Future Interest on Debt Total Cash and Total Outstanding Maturity Investments Assets Debt Date $ 7,942 $ 494,089 $ 758,624 762,336 6,865,000 - - 455,000 208,410 269,414 5,885,000 967,034 1,031,750 13, 205, 000 255,574 351,877 930,000 294,525 324,728 1,140,000 301,486 370,102 1,405,000 234,185 397,857 1,570,000 392,139 482,675 1,600,000 543,571 616,150 2,060,000 330,412 518,655 2,120,000 366,812 530,703 1,740,000 168,186 341,209 1,350,000 37,011 37,011 2,923,901 3,970,967 13, 915, 000 $ 3,898,877 $ 5,496,806 $ 27,120,000 * The debt related to these bonds have been paid and these funds can be closed. $ 7,336,385 Matured Debt 02/01/37 02/01/37 02/01/52 Service 02/01/3 Funds 02/01/31 02/01/32 02/01/33 02/01/34 02/01/35 02/01/36 02/01/37 02/01/39 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 2024 C 2025 2026 2027 2028 2029 . rnnapai a I 2030 2031 2032 2033 ■ Interest Debt Service ANMV 13 $4,00Q000 $3,500000 $3,DOQDDD $s,50Q000 $200Q000 $1,5000g0 $1,00Q0D0 $500,000 2020 2020 2021 2021 2022 2022 2023 2023 00pemting Receipts ■Sales Tax ■ Operating Disbursements ■Debt Payments $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $4,495,762 $3,768,563 $3,919,473 $3,217,452 7 $2,042,089 2020 2021 2022 2023 Actual Cash Target Balance (Following Year Detrt Service Plus 50% of Operating Costs) Water Fund Cash Flows from Operations and Cash Balances $6,00D,000 $s,00D,000 $4,000,000 $3,000,000 M000,000 $1,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 2020 2020 2021 2021 2022 2022 2023 2023 ■0perating Receipts ■Sales Tax ■Operating Disbursements ■Debt Payments $8,364,059 $7,143,699 $6,833,749 $7,239,068 $2,372,156 $2,481,196 2020 2021 2022 2023 Aciva I Cash �UnspentBond Proceeds —d—Tar et Balance(Following Year Debt Service Plus 50% of Operating Costs Sewer Fund Cash Flows from Operations and Cash Balances $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- 2020 2020 2021 2021 2022 2022 2023 2023 ■ Operating Receipts Operating Disbursements ■ Debt Payments $ 30,000,000 $25,000,000 $ 20,000,000 $15,000,000 $10,000,000 $5,000,000 S- 2020 2021 2022 2023 riAlaI Cash —*--Target Balance (Following Year Debt Service Plus 50% of Operating Costs) Public Utilities Commission Fund Cash Flows from Operations and Cash Balances Aw%0 - 16 Nonmajor Enterprise Funds Increase Net Position (Decrease) December3l, Increase Fund in Cash Flow 2023 2022 (Decrease) Refuse $ (128,709) $ 2,862,060 $ 2,893,107 $ (31,047) Composting (234,295) 5,261,946 5,354,334 (92,388) Cash Flows and Storm Water 97,848 6,434,695 5,509,982 924,713 Change in Net Position Municipal Liquor Store 201,630 1,326,094 1,333,084 (6,990) Total $ (63,526) $ 15,884,795 $ 15,090,507 $ 794,288 ANMV 17 Taxes Key Performance Indicators 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% = Class 3 Cities Cities in McLeod County 'City of Hutchinson 11 2019 51.2% 112.2% 67.0% Tax Rates 2020 2021 2022 2023 48.4% 47.6% N/A N/A 102.4% 96.0% N/A N/A 66.5% 64.5% 59.2% 527% $800 $700 $600 $500 $400 $300 8200 $100 $- Class 3 Cities Cities in McLeod County City of Hutchinson Taxes Per Capita 2019 12020 12021 $564 $608 $629 $609 $620 $656 $680 $695 $714 2022 2023 N/A N/A N/A N/A $753 $748 ANMV 18 Debt Key Performance Indicators Long Term Debt Per Capita S6,000 $4000 $4.000 ~� $3,000 S2000 $1,000 $- 2019 2020 2021 2022 2023 Class 3Cities $1,939 $1,905 $1,918 N/A N/A Cities in McLeod County $4,761 $4,181 $3,150 N/A N/A —@--Cityof Hutchinson $4,835 $4,303 $4,453 $4,300 $3,811 Debt Service Expenditures as a Percent of Current Expenditures 30.00% 25.00% 20.00% 15,00% 10.00% 5.00% 0.00% 2020 2021 2022 2023 Class 3Cities 13.65% 14.57% N/A N/A Cities in McLeod County 16.30% 23.06% N/A N/A �Cityof Hutchinson 14.76% 24.90% 16.68% 15.17% Allh/MV 19 Expenditures Key Performance Indicators $1,200 $1,000 $800 $600 $400 $200 ■ Class 3 Cities ■ Cities in McLeod County ■ City of Hutchinson Current Expenditures Per Capita 2019 2020 1 2021 2022 2023 $759 $770 $753 N/A N/A $1,004 $989 $992 N/A N/A $989 $1,033 $1,037 1 $1,063 $1,044 Capital Expenditures Per Capita $1,400 S1,200 $1,000 $800 $600 $400 $200 ' $ -di 2019 2020 2021 2022 2023 ■ Class 3 Cities $379 $434 $418 N/A N/A ■Cities in McLeod County $600 $1,017 $523 N/A N/A ■ City of Hutchinson $636 $479 1 $475 $1,182 $687 ANMV 20 Your Abdo Team Andy Berg, CPA Abby Schmidt, CPA Kelsey Larson, CPA Partner Manager Senior Associate Daniel Steenkamp Kelsey Sohre Mara Richardson Senior Associate Senior Associate Intern ANMV 21 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 2020 2020 2021 2021 2022 2022 2023 2023 ■ Operating Receipts ■ Operating Disbursements ■ Debt Payments $1,819,839 $1,954,511 $1,771,893 $1,643,184 $6333 $575,091LA 2020 2021 2022 2023 Actual Cash Target Balance (Following Year Debt Service Plus 50% of Operating Costs) F Refuse Fund Cash Flows from Operations and Cash Balances 83,500,000 83,000,000 $2,500,000 $2,000,000 $1,500,000 81,000,000 $500,000 8- $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 2020 2020 2021 2021 2022 2022 2023 2023 ■ Operating Receipts ■ Operating Disbursements ■ Debt Payments $2,588,016 $2,436,718 $2, 224, 366 $1,990,071 $1,554,713 W427,760 2020 2021 2022 2023 [ Actual Cash—d—Target Balance (Following Year Debt Service Plus 50% of Operating Costs) Composting Fund Cash Flows from Operations and Cash Balances $1,200,000 $1,o0Q000 $800,000 $600,000 $400,000 $200,000 2020 2020 2021 2021 2022 2022 2023 2023 ■ Operating Receipts ■Operating Disbursemerns ■ Debt Payments $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 2020 2021 2022 2023 ir_Actual Cash Target Balance (Following Year Debt Service Plus 50% of Operating Costs) ANM0 Storm Water Fund Cash Flows from Operations and Cash Balances 24 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 2020 2020 2021 2021 2022 2022 2023 2023 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 S- ■Operating Receipts ■ Operating Disbursements $3,283,803 $3,404,891 $3,373,079 $3,385,349 5411,097 $415,094 $381,729 S583.359 2020 2021 2022 2023 Actual Cash—d—Target Balance (50%of Operating Costs) Liquor Fund Cash Flows from Operations and Cash Balances 2021 2022 2023 Total Percent Total Percent Total Percent Sales $ 7,343,719 100.0 % $ 7,316,938 100.0 % $ 7,516,760 100.0 % Cost of sales (5,757,766) (78.3) (5,656,007) (77.3) (5,827,827) (77.5) Gross Profit 1,585,953 21.7 1,660,931 22.7 1,688,933 22.5 Operating Expenses (995,250) (13.6) (1,209,000) (16.5) (1,146,883) (15.3) Operating Income Investment and Other Income Income Before Transfer Transfers Out Change in Net Position Cash and Investments 590,703 8.1 774 591,477 8.1 (550,000) (7.5) $ 41,477 0.6 % $ 415,094 451,931 62 995 452,926 62 (550,000) (7.5) $ (97,074) (1.3) % $ 381,729 542,050 7.2 960 - 543,010 7.2 (550,000) (7.3) $ (6,990) (0.1) % $ 583,359 Liquor Fund Operations r t-,#%AV ' 26 Off Sale 2020 2021 2022 Percent Percent Percent of Sales of Sales of Sales Sales 100.0 i 100.0 i 100.0 i Cost of Sales 73.5 73.5 73.2 Gross profit 26.5 26.5 26.8 Operating Expenses 17.2 17.8 19.5 Operating Income 9.3 8.7 7.3 Nonoperating Revenues (Expenses) 0.4 0.1 - Income Before Transfers 9.7 °i 8.8 °i 7.3 °i Source: Analysis of Municipal Liquor Store Operations, forthe year ended December 31, 2022. Published by the Minnesota Office of the State Auditor. Liquor Store Statewide Averages ANMV 27 c HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Approve/Deny First Reading of Ordinance 24-847 - An Ordinance for the Sale of Agenda Item: Municipally Owned Property to DeRock Capital Group Department: Administration LICENSE SECTION Meeting Date: 7/9/2024 Application Complete N/A 0 Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑� New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: With the construction of a new police facility, the City Council made the decision to sell the old police station (with the parking lot to the south) along with the old EOC building. The City hired a realtor and listed the properties for sale in late December of 2023. The old police station and parking lot was sold back in January and the EOC building has remained on the market since that time. Interest on the property has been low. We initially listed the property at $299,000 and it was lowered to our current asking price of $275,000 in March. We recently received an offer for the building. The proposed used is for office space. Attached is a copy of the purchase agreement I signed in regards to that offer. Per City Charter, city property must be sold through an ordinance. Attached for your consideration is a first reading of an ordinance to sell this property to DeRock Capital Group for $200,000. BOARD ACTION REQUESTED: Approve the First Reading of Ordinance 24-847 - An Oridnance for the Sale of Municipally Owned Property 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 dotloop signature verification: Authentisign ID: A9531B7D-3B32-EF11-86D4-000MA8KEDD CITIZENS BANK 8z TRUST CO. June 24, 2024 Re: Jon DeRock/DeRock Capital Group LLC 19587 Sioux Hills Rd Hutchinson, MN 55350 To whom it may concern: This is to advise that Jon DeRock/DeRock Capital Group LLC has the appropriate amount of collected funds available for the proposed purchase of 44 Washington Ave, Hutchinson, MN. If you should have any questions please feel free to contact me. ince�jrjel�y,, YVw Anthony R. Hanson President 320-234-0622 102 Main Street South o P.O. Box 339 - Hutchinson, Minnesota 55350-0339 Phone 320/587-2233 • FAX 320/587-5738 - www.cbhutch.com CB On -Call 320/234-6234 - Toll -Free 888/234-2910 - Member FDIC dotloop signature verification: Authentisign ID: A9531 B7D-3B32-EFt 1-86D4-OOOD3A8B7EDD Edina Realty. a Berkshire Hathaway affiliate 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. RI IVFR/Sl is/ara• DeRock Capital Group COMMERCIAL PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS' and the Minnesota Commercial Association of REALTORS', which disclaims any liability arising out of use or misuse of this form. © 2022 Minnesota Association of REALTORS', Minnetonka, MN 1. Page 1 Date 06/24/2024 ❑ individual(s); OR NJ a business entity organized under the laws of the State of SELLER(S) is/are: Hutchinson City ❑ individual(s); OR ® a business entity organized under the laws of the State of -, (Check one.) Minnesota , (Check one.) Minnesota Buyer's earnest money in the amount of Ten Thousand Dollars ($ 10,000.00 ) shall be delivered no later than two (2) Business Days after Final Acceptance Date to be deposited in the trust account of: (Check one.) X listing broker; or ❑ 9 (Trustee) within three (3) Business Days of receipt of the earnest money or Final Acceptance Date whichever is later. Said earnest money is part payment for the purchase of property at 44 Washington Avenue w located in the City/Township of State of Minnesota, Zip Hutchinson 55350 _, County of ,PID#(s) McLeod 230500660 and legally described as follows SOUTH HALF, HUTCHINSON BLOCK-008 W 44, OF N 14, OF LOT 9 & W 44, OF LOT 10 (FIRE HALL) 20. (collectively the "Property") 21. together with the personal property as described in the attached Addendum to Commercial Purchase Agreement: 22. Personal Property, if any, all of which property the undersigned has this day sold to Buyer for the sum of: 23. 24. 25. ($ Two Hundred Thousand 200,000.00 ) Dollars ("Purchase Price"), which Buyer agrees to pay in the following manner: 26. 1. CASH of loo percent (%) of the sale price, or more in Buyer's sole discretion, which includes the earnest 27. money; PLUS 28. 2. FINANCING of percent (%) of the sale price. Buyer shall, at Buyer's sole expense, apply for any 29. financing as required by this Purchase Agreement. 30. Such financing shall be: (Check one.) ❑ a first mortgage; ❑ a contract for deed; or ❑ a first 31. mortgage with subordinate financing, as described in the attached Addendum to Commercial Purchase Agreement: 32. ❑ Conventional/SBA/Other ❑ Contract for Deed. - -- - - (Check one.) --- ---------- -------- ------- ------- 33. DUE DILIGENCE: This Purchase Agreement © IS ❑ IS NOT subject to a due diligence contingency. (If answer is IS, -----(Check one.)----- 34. see attached Addendum to Commercial Purchase Agreement: Due Diligence.) 35. CLOSING: The date of closing shall be On or Before August 5th 2024 MNC:PA-1 (8/22) �� Tow►ie wr�r,nuc dotloop signature verification: Authentisign ID: A9531 B7D-3B32-EFt 1-86D4-OOOD3A8B7EDD Edina Realty. a Berkshire Hathaway affiliate COMMERCIAL PURCHASE AGREEMENT 36. Page 2 Date 06/24/2024 37. Property located at 44 Washington Avenue W Hutchinson MN 55350 38, DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller agrees to execute and deliver a: (Check one.) 39. ® WARRANTY DEED ❑ LIMITED WARRANTY DEED ❑ CONTRACT FOR DEED 40. ❑ OTHER: DEED conveying marketable title, subject to: 41. (a) building and zoning laws, ordinances, and state and federal regulations; 42. (b) restrictions relating to use or improvement of the Property without effective forfeiture provisions; 43. (c) reservation of any mineral rights by the State of Minnesota or other government entity; 44. (d) utility and drainage easements which do not interfere with existing improvements; and 45. (e) others (must be specified in writing): 46. 47. TENANTS/LEASES: Property ❑ IS ❑X IS NOT subject to rights of tenants (if answer is IS, see attached Addendum ------(Check one.)------ 48. to Commercial Purchase Agreement: Due Diligence). 49. Seller shall not execute leases from the Date of this Purchase Agreement to the date of closing, the term of which lease 50. extends beyond the date of closing, without the prior written consent of Buyer. Buyer's consent or denial shall be 51. provided to Seller within days of Seller's written request. Said consent 52. shall not be unreasonably withheld. 53. REAL ESTATE TAXES: Real estate taxes due and payable in the year of closing shall be prorated between Seller and 54. Buyer on a calendar year basis to the actual date of closing unless otherwise provided in this Purchase Agreement. 55. Real estate taxes, including penalties, interest, and any associated fees, payable in the years prior to closing shall 56. be paid by Seller. Real estate taxes payable in the years subsequent to closing shall be paid by Buyer. 57. SPECIAL ASSESSMENTS: 58. ❑ BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING ❑X SELLER SHALL PAY - -- ------- -------- --- --------------------------------(Check one.) ------- ------- ------- --- ----- ---- ------ ------- -- -- - ---- 59. on the date of closing all installments of special assessments certified for payment with the real estate taxes due and 60. payable in the year of closing. 61. ❑ BUYER SHALL ASSUME X❑ SELLER SHALL PAY ON DATE OF CLOSING all other special assessments - - --- -------------------------------(Check one.) ------ --------- ------- -------- -------- ------- 62. levied as of the Date of this Purchase Agreement. 63. [:]BUYER SHALL ASSUME X❑ SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as - - -------------------------------(Check one.) -------- ----------- ------- ----------- ----- ---- 64. of the Date of this Purchase Agreement for improvements that have been ordered by any assessing authorities. (Seller's 65. provision for payment shall be by payment into escrow of up to two (2) times the estimated amount of the assessments 66. or less, as allowed by Buyer's lender.) 67. Buyer shall pay any unpaid special assessments payable in the year following closing and thereafter, the payment of 68. which is not otherwise here provided. 69. As of the Date of this Purchase Agreement, Seller represents that Seller ❑ HAS © HAS NOT received a notice -----------(Check one.) ------ ----- 70. regarding any new improvement project from any assessing authorities, the costs of which project may be assessed 71. against the Property. Any such notice received by Seller after the Date of this Purchase Agreement and before 72. closing shall be provided to Buyer immediately. If such notice is issued after the Date of this Purchase Agreement 73. and on or before the date of closing, then the parties may agree in writing, on or before the date of closing, to pay, 74. provide for the payment of, or assume the special assessments. In the absence of such agreement, either party may 75. declare this Purchase Agreement canceled by written notice to the other party, or licensee representing or assisting the 76. other party, in which case this Purchase Agreement is canceled. If either party declares this Purchase Agreement 77. canceled, Buyer and Seller shall immediately sign a written cancellation of Purchase Agreement confirming said 78. cancellation and directing all earnest money paid here to be refunded to Buyer. MNC:PA-2 (8/22) /\ Tneuenrr�nuc dotloop signature verification: Authentisign ID: A9531 B7D-3B32-EFt 1-86D4-OOOD3A8B7EDD Edina RealtyCOMMERCIAL PURCHASE AGREEMENT a Berkshire Hathaway affiliate 79. Page 3 Date 06/24/2024 80, Property located at 44 Washington Avenue W Hutchinson MN 55350 81. POSSESSION: Seller shall deliver possession of the Property: (Check one.) 82. © IMMEDIATELY AFTER CLOSING; or 83. ❑ OTHER: 84. Seller agrees to remove ALL DEBRIS AND ALL PERSONAL PROPERTY NOT INCLUDED HERE from the Property 85. by possession date. 86. PRORATIONS: All items customarily prorated and adjusted in connection with the closing of the sale of the Property 87. here including but not limited to rents, operating expenses, interest on any debt assumed by Buyer, shall be prorated 88. as of the date of closing. It shall be assumed that Buyer will own the Property for the entire date of the closing. 89. RISK OF LOSS: If there is any loss or damage to the Property between Date of this Purchase Agreement and the date 90. of closing, for any reason, the risk of loss shall be on Seller. If the Property is destroyed or substantially damaged before 91. the closing, this Purchase Agreement shall be canceled, at Buyer's option, if Buyer gives written notice to Seller, or licensee 92. representing or assisting Seller, of such cancellation within thirty (30) days of the damage. Upon said cancellation, 93. Buyer and Seller shall immediately sign a written cancellation of Purchase Agreement confirming said cancellation 94. and directing all earnest money paid here to be refunded to Buyer. 95. EXAMINATION OF TITLE: Seller shall, at its expense, within 25 days after Final 96. Acceptance Date, furnish to Buyer, or licensee representing or assisting Buyer, a commitment for an owner's policy 97. of title insurance from Title Mark , including levied and pending special (Name of Title Company) 98. assessments. Buyer shall be allowed ten (10) days ("Objection Period") after receipt of the commitment for title 99. insurance to provide Seller, or licensee representing or assisting Seller, with written objections. Buyer shall be deemed 100. to have waived any title objections not made within the Objection Period provided for immediately above and any 101. matters with respect to which title objection is so waived may be excepted from the warranties in the Deed as specified 102. here to be delivered pursuant to this Agreement. 103. TITLE CORRECTIONS AND REMEDIES: Seller shall have thirty (30) days ("Cure Period") from receipt of Buyer's 104. written title objections to cure any title objections but shall not be obligated to do so. Upon receipt of Buyer's title 105. objections, Seller shall, within ten (10) days, notify Buyer, or licensee representing or assisting Buyer, in writing whether 106. or not Seller will endeavor to cure such objections within the Cure Period. Liens or encumbrances for liquidated 107. amounts created by instruments executed by Seller and which can be released by payment proceeds of closing shall 108. not delay the closing. 109. If Seller's notice states that Seller will not endeavor to cure one or more specified objections within the Cure Period, 110. Buyer may, as its sole remedy, within ten (10) days of the sending of such notice by Seller, declare this Purchase 111. Agreement canceled by written notice to Seller, or licensee representing or assisting Seller, in which case this Purchase 112. Agreement is canceled. If Buyer declares this Purchase Agreement canceled, Buyer and Seller shall immediately sign a 113. written cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid here to 114. be refunded to Buyer. If Buyer does not declare this Purchase Agreement canceled as provided immediately above, 115. Buyer shall be bound to proceed with the closing and to purchase the Property subject to the objections Seller has 116. declined to cure without reduction in the Purchase Price. 117. If Seller's notice states that Seller will endeavor to cure all of the specified objections, or if Seller's notice states that 118. Seller will endeavor to cure some, but not all, of the specified objections and Buyer does not declare this Purchase 119. Agreement canceled as provided above, Seller shall use commercially reasonable efforts to cure the specified objections 120. or those Seller has agreed to endeavor to cure and, pending correction of title, all payment required here and the 121. closing shall be postponed. 122. If Seller, within the Cure Period provided above, corrects the specified objections Seller's notice indicated Seller would 123. endeavor to cure, then upon presentation to Buyer, or licensee representing or assisting Buyer, of documentation 124, establishing that such objections have been cured, the closing shall take place within ten (10) days or on the scheduled 125. closing date, whichever is later. MNC:PA-3 (8/22) Adft TOA\IC A/•v ►. dotloop signature verification: Authentisign ID: A9531 B7D-3B32-EFt 1-86D4-OOOD3A8B7EDD Edina RealtyCOMMERCIAL PURCHASE AGREEMENT a Berkshire Hathaway affiliate 126. Page 4 Date 06/24/2024 127. Property located at 44 Washington Avenue W Hutchinson MN 55350 128. If Seller, within the Cure Period provided above, does not cure the specified objections which Seller's notice indicated 129. Seller would endeavor to cure, Buyer may, as its sole remedy, declare this Purchase Agreement canceled by written 130. notice to Seller, or licensee representing or assisting Seller, given within five (5) days after the end of the Cure Period, 131. in which case this Purchase Agreement is canceled. Buyer and Seller shall immediately sign a Cancellation of Purchase 132. Agreement confirming said cancellation and directing all earnest money paid here to be refunded to Buyer. Neither 133. party shall be liable for damages here to the other. In the alternative, Buyer may elect to waive such objections by 134. providing written notice to Seller, or licensee representing or assisting Seller, within such five (5)-day period and accept 135. title subject to such uncured objections, in which event, Buyer shall be bound to proceed with the closing and to purchase 136. the Property subject to the objections Seller has not cured without reduction in the Purchase Price. If neither notice 137. is given by Buyer within such five (5)-day period, Buyer shall be deemed to have elected to waive the objections and 138. to proceed to closing as provided in the immediately preceding sentence. 139. If title is marketable, or is made marketable as provided here, and Buyer defaults in any of the agreements here, 140. Seller, in addition to any other right or remedy available to Seller here, at law or in equity may cancel this Purchase 141. Agreement as provided by either MN Statute 559.21 or MN Statute 559.217, whichever is applicable, and retain all 142. earnest money paid here as liquidated damages. 143. If title is marketable, or is made marketable as provided here, and Seller defaults in any of the agreements here, 144. Buyer may, in addition to any other right or remedy available to Buyer here, seek specific performance within six 145. (6) months after such right of action arises. 146. REPRESENTATIONS AND WARRANTIES OF SELLER: The following representations made are to the best 147. of Seller's knowledge. 148. There is no action, litigation, investigation, condemnation, or other proceeding of any kind pending or threatened 149. against Seller or any portion of the Property. In the event Seller becomes aware of any such proceeding prior to 150. closing, Seller will promptly notify Buyer of such proceeding. 151. The Property is in compliance with all applicable provisions of all planning, zoning, and subdivision rules; regulations; 152. and statutes. Seller has obtained all necessary licenses, permits, and approvals necessary for the ownership and 153. operation of the Property. 154. Prior to the closing, payment in full will have been made for all labor, materials, machinery, fixtures, or tools furnished 155. within the 120 days immediately preceding the closing in connection with construction, alteration, or repair of any 156. structure on, or improvement to, the Property. 157. Seller has not received any notice from any governmental authority as to condemnation proceedings, or violation of 158. any law, ordinance, regulation, code, or order affecting the Property. If the Property is subject to restrictive covenants, 159. Seller has not received any notice from any person or authority as to a breach of the covenants. Any such notices 160. received by Seller shall be provided to Buyer immediately. Discriminatory restrictive covenants (e.g. provisions 161. against conveyance of property to any person of a specified religious faith, creed, national origin, race, or color) are 162. illegal and unenforceable. An owner of real property may permanently remove such restrictive covenants from the 163. title by recording a statutory form in the office of the county recorder of any county where the property is located. 164. Seller has not executed any options to purchase, rights of first refusal, or any other agreements giving any person or 165. other entity the right to purchase or otherwise acquire any interest in the Property, and Seller is unaware of any options 166. to purchase, rights of first refusal, or other similar rights affecting the Property. 167. The legal description of the real property to be conveyed has been or shall be approved for recording as of the date 168. of closing. 169. If Seller is an organized entity, Seller represents and warrants to Buyer that Seller is duly organized and is in good 170. standing under the laws of the State of Minnesota; that Seller is duly qualified to transact business in the State of 171. Minnesota; that Seller has the requisite organizational power and authority to enter into this Purchase Agreement and 172. the Seller's closing documents signed by it; such documents have been duly authorized by all necessary action on 173. the part of Seller and have been duly executed and delivered; that the execution, delivery, and performance by Seller of 174. such documents do not conflict with or result in a violation of Seller's organizational documents or Bylaws or any judgment, 175. order, or decree of any court or arbiter to which Seller is a party; and that such documents are valid and binding obligations 176. of Seller, and are enforceable in accordance with their terms. MNC:PA-4 (8/22) ToA\IG./'T -mc dotloop signature verification: Authentisign ID: A9531 B7D-3B32-EFt 1-86D4-OOOD3A8B7EDD Edina Realty a Berkshire Hathaway affiliate 178. Property located at 44 Washington Avenue W COMMERCIAL PURCHASE AGREEMENT 177. Page 5 Date 06/24/2024 Hutchinson MN 55350 179. Seller will indemnify Buyer, its successors and assigns, against and will hold Buyer, its successors and assigns, 180. harmless from, any expenses or damages, including reasonable attorneys' fees, that Buyer incurs because of the 181. breach of any of the above representations and warranties, whether such breach is discovered before or after the 182. date of closing. 183. See attached Addendum to Commercial Purchase Agreement: Due Diligence, if any, for additional representations 184. and warranties. 185. REPRESENTATIONS AND WARRANTIES OF BUYER: If Buyer is an organized entity, Buyer represents and warrants 186. to Seller that Buyer is duly organized and is in good standing under the laws of the State of Minnesota; that Buyer is 187. duly qualified to transact business in the State of Minnesota; that Buyer has the requisite organizational power and 188. authority to enter into this Purchase Agreement and the Buyer's closing documents signed by it; such documents 189. have been duly authorized by all necessary action on the part of Buyer and have been duly executed and delivered; 190. that the execution, delivery, and performance by Buyer of such documents do not conflict with or result in a violation 191. of Buyer's organizational documents or Bylaws or any judgment, order, or decree of any court or arbiter to which Buyer 192. is a party; and that such documents are valid and binding obligations of Buyer, and are enforceable in accordance with 193. their terms. Buyer will indemnify Seller, its successors and assigns, against and will hold Seller, its successors and 194. assigns, harmless from, any expenses or damages, including reasonable attorneys' fees, that Seller incurs because 195. of the breach of any of the above representations and warranties, whether such breach is discovered before or after 196. the date of closing. 197. TIME IS OFTHE ESSENCE FOR ALL PROVISIONS OFTHIS CONTRACT. 198. CALCULATION OF DAYS: Any calculation of days begins on the first day (calendar or Business Days as specified) 199. following the occurrence of the event specified and includes subsequent days (calendar or Business Days as specified) 200. ending at 11:59 P.M. on the last day. 201. BUSINESS DAYS: "Business Days" are days which are not Saturdays, Sundays, or state or federal holidays unless 202. stated elsewhere by the parties in writing. 203. CALENDAR DAYS: For purposes of this Agreement, any reference to "days" means "calendar days." "Calendar 204. days" include Saturdays, Sundays, and state and federal holidays. 205. DEFAULT: If Buyer defaults in any of the agreements here, Seller may cancel this Purchase Agreement, and any 206. payments made here, including earnest money, shall be retained by Seller as liquidated damages and Buyer and Seller 207. shall affirm the same by a written cancellation. In the alternative, Seller may seek all other remedies allowed by law. 208. If Buyer defaults in any of the agreements here, Seller may terminate this Purchase Agreement under the 209. provisions of either MN Statute 559.21 or MN Statute 559.217, whichever is applicable. 210. If this Purchase Agreement is not canceled or terminated as provided here, Buyer or Seller may seek actual damages 211. for breach of this Purchase Agreement or specific performance of this Purchase Agreement; and, as to specific 212. performance, such action must be commenced within six (6) months after such right of action arises. 213. SUBJECT TO RIGHTS OF TENANTS, IF ANY, BUYER HAS THE RIGHT TO VIEW THE PROPERTY PRIOR TO 214. CLOSING TO ESTABLISH THAT THE PROPERTY IS IN SUBSTANTIALLY THE SAME CONDITION AS OF THE 215. DATE OF THIS PURCHASE AGREEMENT. 216. METHAMPHETAMINE PRODUCTION DISCLOSURE: 217. (A Methamphetamine Production Disclosure is required by MN Statute 152.0275, Subd. 2 (m).) 218. ® Seller is not aware of any methamphetamine production that has occurred on the Property. 219. ❑ Seller is aware that methamphetamine production has occurred on the Property. 220. (See Disclosure Statement: Methamphetamine Production.) 221. NOTICE REGARDING AIRPORT ZONING REGULATIONS: The Property may be in or near an airport safety zone 222. with zoning regulations adopted by the governing body that may affect the Property. Such zoning regulations are 223. filed with the county recorder in each county where the zoned area is located. If you would like to determine if such 224. zoning regulations affect the Property, you should contact the county recorder where the zoned area is located. MNC:PA-5 (8/22) /t►pro AKICA 1^LIC dotloop signature verification: Authentisign ID: A9531 B7D-3B32-EFt 1-86D4-OOOD3A8B7EDD Edina Realty a Berkshire Hathaway affiliate 226. Property located at 44 Washington Avenue W COMMERCIAL PURCHASE AGREEMENT 225. Page Date 06/24/2024 Hutchinson MN 55350 227. NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory 228. offender registry and persons registered with the predatory offender registry under MN Statute 243.166 may 229. be obtained by contacting the local law enforcement offices in the community where the Property is located 230. or the Minnesota Department of Corrections at (651) 361-7200, or from the Department of Corrections web 231. site at www.corr.state.mn.us. 232. DISCLOSURE NOTICE: If this Purchase Agreement includes a structure used or intended to be used as residential 233. property as defined under MN Statute 513.52, Buyer acknowledges Buyer has received a Disclosure Statement: 234. Seller's Property Disclosure Statement or Disclosure Statement: Seller's Disclosure Alternatives form. 235. BUYER IS NOT RELYING ON ANY ORAL REPRESENTATIONS REGARDING THE CONDITION OF THE PROPERTY. 236. (Check appropriate boxes.) 237. SELLER WARRANTS THAT THE PROPERTY IS EITHER DIRECTLY OR INDIRECTLY CONNECTEDTO: 238. CITY SEWER ©YES [:]NO / CITY WATER ❑X YES ❑ NO 239. SUBSURFACE SEWAGE TREATMENT SYSTEM 240. SELLER ❑ DOES Q DOES NOT KNOW OF A SUBSURFACE SEWAGE TREATMENT SYSTEM ON OR SERVING ---------------(Check one.)---------- 241. THE PROPERTY. (If answer is DOES, and the system does not require a state permit, see Disclosure Statement: 242. Subsurface Sewage Treatment System.) 243. PRIVATE WELL 244. SELLER ❑ DOES © DOES NOT KNOW OF A WELL ON OR SERVING THE PROPERTY. (If answer is DOES and well ------------(Check one.)---------- 245. is located on the Property, see Disclosure Statement: Well.) 246. To the best of Seller's knowledge, the Property ❑ IS © IS NOT in a Special Well Construction Area. -------(Check one.)----- 247. THIS PURCHASE AGREEMENT ❑ IS © IS NOT SUBJECT TO AN ADDENDUM TO PURCHASE AGREEMENT: ----(Check one.)-------- 248. SUBSURFACE SEWAGE TREATMENT SYSTEM AND WELL INSPECTION CONTINGENCY. 249. (If answer is IS, see attached Addendum.) 250. IF A WELL OR SUBSURFACE SEWAGE TREATMENT SYSTEM EXISTS ON THE PROPERTY, BUYER HAS 251. RECEIVED A DISCLOSURE STATEMENT. WELL AND/OR A DISCLOSURE STATEMENT.- SUBSURFACE SEWAGE 252. TREATMENT SYSTEM. 253. There ❑ IS ® IS NOT a storage tank located on the Property that is subject to the requirements of MN Statute 116.48. --(Check one.)---- 254. (If answer is IS, see Commercial Disclosure Statement: Storage Tank(s).) 255. 256. (Licensee) 257. Matthew Pulkrabek Hometown Realty Inc (Real Estate Company Name) 258 Karissa Kosek (Licensee) 259 Edina Realty (Real Estate Company Name) MNC:PA-6 (8/22) AGENCY NOTICE is ® Seller's Agent ❑ Buyer's Agent ❑ Dual Agent. - ------------(Check one.) --------- —--------------- ___ is ❑ Seller's Agent ® Buyer's Agent ❑ Dual Agent. -- -----------------(Check one.) ----- ---- ---------------- -------- Aft T Ak1Cw 71^uc dotloop signature verification: Authentisign ID: A9531 B7D-3B32-EFt 1-86D4-OOOD3A8B7EDD Edina Realty a Berkshire Hathaway affiliate 261. Property located at 44 Washington Avenue W COMMERCIAL PURCHASE AGREEMENT 260. Page 7 Date 06/24/2024 Hutchinson NIN 55350 262. DUAL AGENCY DISCLOSURE: Dual agency occurs when one broker or salesperson represents both parties to a 263. transaction, or when two salespersons licensed to the same broker each represent a party to the transaction. Dual 264. agency requires the informed consent of all parties, and means that the broker or salesperson owes the same fiduciary 265. duties to both parties to the transaction. This role limits the level of representation the broker and salespersons can 266. provide, and prohibits them from acting exclusively for either party. In dual agency, confidential information about price, 267. terms, and motivation for pursuing a transaction will be kept confidential unless one party instructs the broker or 268. salesperson in writing to disclose specific information about him or her. Other information will be shared. Dual agents 269. may not advocate for one party to the detriment of the other. 270. CONSENTTO DUAL AGENCY 271. Broker represents both parties involved in the transaction, which creates a dual agency. This means that Broker and 272. its salespersons owe fiduciary duties to both parties. Because the parties may have conflicting interests, Broker and its 273. salespersons are prohibited from advocating exclusively for either party. Broker cannot act as a dual agent in this 274. transaction without the consent of both parties. Both parties acknowledge that 275. (1) confidential information communicated to Broker which regards price, terms, or motivation to buy, sell, or lease will 276. remain confidential unless the parties instruct Broker in writing to disclose this information. Other information will 277. be shared; 278. (2) Broker and its salespersons will not represent the interest of either party to the detriment of the other; and 279. (3) within the limits of dual agency, Broker and its salesperson will work diligently to facilitate the mechanics of the 280. sale. 281. With the knowledge and understanding of the explanation above, the parties authorize and instruct Broker and its 282. salespersons to act as dual agents in this transaction. 283. SELLER: BUYER: (Business Entity or Individual Name) (Business Entity or Individual Name) 284. By: By: (Seller's Signature) (Buyer's Signature) 285. (Seller's Printed Name) (Buyer's Printed Name) 286. Its: Its: (Title) (Title) 287. (Date) (Date) 288. SELLER: BUYER: (Business Entity or Individual Name) (Business Entity or Individual Name) 289. By: By: (Seller's Signature) (Buyer's Signature) 290. (Seller's Printed Name) (Buyer's Printed Name) 291. Its: Its: (Title) (Title) 292. (Date) (Date) MNC:PA-7 (8/22) +pro w-- I-C dotloop signature verification: Authentisign ID: A9531 B7D-3B32-EFt 1-86D4-OOOD3A8B7EDD Edina Realty:, a Berkshire Hathaway affiliate 294. Property located at 44 Washington Avenue W COMMERCIAL PURCHASE AGREEMENT 293. Page 8 Date 06/24/2024 Hutchinson MN 55350 295. SUCCESSORS AND ASSIGNS: All provisions of this Purchase Agreement shall be binding on successors and 296. assigns. 297. CLOSING COSTS: Buyer or Seller may be required to pay certain closing costs, which may effectively increase the 298. cash outlay at closing or reduce the proceeds from the sale. 299. FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT ("FIRPTA"): Section 1445 of the Internal Revenue Code 300. provides that a transferee ("Buyer") of a United States real property interest must be notified in writing and must 301. withhold tax if the transferor ("Seller") is a foreign person and no exceptions from FIRPTA withholding apply. Buyer 302. and Seller agree to comply with FIRPTA requirements under Section 1445 of the Internal Revenue Code. 303. Seller shall represent and warrant, under the penalties of perjury, whether Seller is a "foreign person" (as the same 304. is defined within FIRPTA), prior to closing. Any representations made by Seller with respect to this issue shall survive 305. the closing and delivery of the deed. 306. Buyer and Seller shall complete, execute, and deliver, on or before closing, any instrument, affidavit, or statement 307. reasonably necessary to comply with the FIRPTA requirements, including delivery of their respective federal taxpayer 308. identification numbers or Social Security numbers. 309. Due to the complexity and potential risks of failing to comply with FIRPTA, including the Buyer's responsibility for 310. withholding the applicable tax, Buyer and Seller should seek appropriate legal and tax advice regarding FIRPTA 311. compliance, as the respective licensees representing or assisting either party will be unable to assure either 312. party whether the transaction is exempt from FIRPTA withholding requirements. 313. NOTE: MN Statute 500.221 establishes certain restrictions on the acquisition of title to agricultural land by aliens 314. and non -American corporations. Please seek appropriate legal advice if this Purchase Agreement is for the 315. sale of agricultural land and Buyer is a foreign person. 316. ACCEPTANCE DEADLINE: This offer to purchase, unless accepted sooner, shall be withdrawn at 11:59 P.M., 317. , and in such event all earnest money shall be returned to Buyer. 318. CONDEMNATION: If, prior to the closing date, condemnation proceedings are commenced against all or any part 319. of the Property, Seller or licensee representing or assisting Seller, shall immediately give written notice to Buyer, or 320. licensee representing or assisting Buyer, of such fact and Buyer may, at Buyer's option (to be exercised within thirty (30) 321. days after Seller's notice), declare this Purchase Agreement canceled by written notice to Seller or licensee representing 322. or assisting Seller, in which case this Purchase Agreement is canceled and neither party shall have further obligations 323. under this Purchase Agreement. In the event Buyer declares the Purchase Agreement canceled, Buyer and Seller 324. shall immediately sign a written cancellation confirming such cancellation and directing all earnest money paid 325. here to be refunded to Buyer. If Buyer fails to give such written notice, then Buyer shall be bound to proceed with 326. closing, subject to any other contingencies to this Purchase Agreement. In such event, there shall be no reduction in 327. the purchase price, and Seller shall assign to Buyer at the closing date all of Seller's rights, title, and interest in and to 328. any award made or to be made in the condemnation proceedings. Prior to the closing date, Seller shall not designate 329. counsel, appear in, or otherwise act with respect to, the condemnation proceedings without Buyer's prior written 330. consent. 331. MUTUAL INDEMNIFICATION: Seller and Buyer agree to indemnify each other against, and hold each other harmless 332. from, all liabilities (including reasonable attorneys' fees in defending against claims) arising out of the ownership, 333. operation, or maintenance of the Property for their respective periods of ownership. Such rights to indemnification will 334. not arise to the extent that (a) the party seeking indemnification actually receives insurance proceeds or other cash 335. payments directly attributable to the liability in question (net of the cost of collection, including reasonable attorneys' 336. fees); or (b) the claim for indemnification arises out of the act or neglect of the party seeking indemnification. If, and 337. to the extent that, the indemnified party has insurance coverage, or the right to make claim against any third party for 338. any amount to be indemnified against, as set forth above, the indemnified party will, upon full performance by the 339. indemnifying party of its indemnification obligations, assign such rights to the indemnifying party or, if such rights are 340. not assignable, the indemnified party will diligently pursue such rights by appropriate legal action or proceeding and 341. assign the recovery and/or right of recovery to the indemnifying party to the extent of the indemnification payable 342. made by such party. MNC:PA-8 (8/22) fit► to wue w�r�nue dotloop signature verification: Authentisign ID: A9531 B7D-3B32-EFt 1-86D4-OOOD3A8B7EDD Edina Realty. COMMERCIAL PURCHASE AGREEMENT a Berkshire Hathaway affiliate 343. Page 9 Date 06/24/2024 344. Property located at 44 Washington Avenue W Hutchinson MN 55350 345. FULLY EXECUTED PURCHASE AGREEMENT AND FINAL ACCEPTANCE: To be binding, this Purchase Agreement 346. and all addenda must be fully executed by both parties and a copy must be delivered. 347. ELECTRONIC SIGNATURES: The parties agree the electronic signature of any party on any document related to 348. this transaction constitute valid, binding signatures. 349. ENTIRE AGREEMENT: This Purchase Agreement and all addenda and amendments signed by the parties shall 350. constitute the entire agreement between Buyer and Seller. Any other written or oral communication between Buyer and 351. Seller, including, but not limited to, e-mails, text messages, or other electronic communications are not part of this 352. Purchase Agreement. This Purchase Agreement can be modified or canceled only in writing signed by Buyer and 353. Seller or by operation of law. All monetary sums are deemed to be United States currency for purposes of this Purchase 354. Agreement. 355. SURVIVAL: All warranties and representations in this Purchase Agreement shall survive the delivery of the deed or 356. contract for deed and be enforceable after the closing. 357. DATE OF THIS PURCHASE AGREEMENT: Date of this Purchase Agreement to be defined as the date on line one 358. (1) of this Purchase Agreement. 359. OTHER: 360. 361. 362. 363. 364. 365. 366. 367. 368. 369. 370, 371. 372, 373. 374. 375. 376. tale contingent upon the offer being read publicly and approved at two lutchinson City Council meetings. do11-p verified Ctf ,r�-�RG�yQtoz 06/27/2410:42AM CDT 3WFE-KLKJ-IAP4-L6FG 377. 378. MNC:PA-9 (8/22) AMA TOAKIOAI'TII C dotloop signature verification: dt1p.us/U76U-Z0Do-8FDG Authentisign ID: A9531B7D-3B32-EF11-86D4-00OD3A8B7EDD Edina Realty a Berkshire Hathaway affiliate WI 381 382. 383, 384. COMMERCIAL PURCHASE AGREEMENT 379. Page 10 Date 06/24/2024 Property located at 44 Washington Avenue W Hutchinson MN 55350 ADDENDA: Attached addenda are a part of this Purchase Agreement. ❑ If checked, this Purchase Agreement is subject to attached Addendum to Commercial Purchase Agreement: Counteroffer. 385. FIRPTA: Seller represents and warrants, under penalty 386. of perjury, that Seller ❑ IS ® IS NOT a foreign person (i.e., a ------(Check one.)----- 387. non-resident alien individual, foreign corporation, foreign 388. partnership, foreign trust, or foreign estate for purposes 389. of income taxation. (See lines 299-315.)) This representation 390. and warranty shall survive the closing of the transaction 391. and the delivery of the deed. 392. SELLER 393. City of Hutchinson (Bus Q, dotloop verified '7 L0L0sk'-/i�sZli�RUKcc,F' F, e!f�,nei.ei�Yr�rYoy 06/27 14 MAI AM CDT 394. By: CPOA-EXPD-POJY-TO4N (Seller's Signature) 395. Matt Jaunich (Seller's Printed Name) 396. Its: City Administrator (Title) e6/27/2e24 397. (Date) (Date) 398. SELLER 399. (Business Entity or Individual Name) 400. By: (Seller's Signature) 401. (Seller's Printed Name) 402. Its: (Title) 403. (Date) (Date) BUYER DeRock Capital Group (Busines tttquwlmdividual Name) By: ro`t DePock 06/24/24 (Buyer's Signature) Jon DeRock (Buyer's Printed Name) Its: (Title) BUYER (Business Entity or Individual Name) By: (Buyer's Signature) (Buyer's Printed Name) Its: (Title) 404. FINAL ACCEPTANCE DATE: The Final Acceptance Date 405. is the date on which the fully executed Purchase Agreement is delivered. 406. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 407. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. 408. THIS MINNESOTA ASSOCIATION OF REALTORS@ COMMERCIAL PURCHASE AGREEMENT IS NOT 409. DESIGNED TO BE AND IS NOT WARRANTED TO BE INCLUSIVE OF ALL ISSUES SELLER AND BUYER 410. MAY WISH TO ADDRESS, AND EITHER PARTY MAY WISH TO MODIFY THIS PURCHASE AGREEMENT 411. TO ADDRESS STATUTORY OR CONTRACTUAL MATTERS NOT CONTAINED IN THIS FORM. 412, BOTH PARTIES ARE ADVISEDTO SEEKTHE ADVICE OF AN ATTORNEYTO ENSURE 413. THIS CONTRACT ADEQUATELY ADDRESSES THAT PARTY'S RIGHTS. MNC:PA-10 (8/22) ��► ro n��c ni-r�neic dotloop signature verification: dtlp.us/U76U-ZODo-8FDG Authentisign ID: A9531KD-31332-EP 1-86D4-00OD3A8B7EDD 0 Extinguishers ® Exits �■ Building Doors ■■■■■■ Railing Stairs Walls dotloop signature verification: Authentisign ID: A9531 B7D-3B32-EFt 1-86D4-OOOD3A8B7EDD Edina Realty a Berkshire Hathaway affiliate ADDENDUM TO COMMERCIAL PURCHASE AGREEMENT: DUE DILIGENCE This form approved by the Minnesota Association of REALTORS®, which disclaims any liability arising out of use or misuse of this form. © 2020 Minnesota Association of REALTORS" 1. Date 6/24/2024 2. Page 1 3. Addendum to Purchase Agreement between parties, dated June 24 2024 4. (Date of this Purchase Agreement), pertaining to the purchase and sale of the Property at 5 44 Washington Avenue W Hutchinson MN 55350 6. In the event of a conflict between this Addendum and any other provision of the Purchase Agreement the language 7. in this Addendum shall govern. 8. This Purchase Agreement is contingent upon Buyer's reasonable approval of due diligence matters as agreed to in 9. this Addendum. 10. Title and examination and title corrections and remedies are excluded from this Addendum and shall be handled in 11. accordance with terms specified in the Examination of Title and Title Corrections and Remedies section of this 12. Purchase Agreement. 13. Buyer shall satisfy himself/herself/itself with respect to the physical condition of the Property and the feasibility 14. and suitability of the Property for Buyer's intended purpose within the respective time period(s) specified herein. Buyer 15. acknowledges that any information provided by Seller, a third party, or broker representing or assisting Seller regarding 16. dimensions, square footage, or acreage of land or improvements is approximate. Buyer shall verify the accuracy of 17. information to Buyer's satisfaction, at Buyer's sole cost and expense. 18. Buyer may declare this Purchase Agreement canceled by providing written notice to Seller, or licensee representing 19. or assisting Seller, within the respective time period(s) specified herein, in which case this Purchase Agreement is 20. canceled. Buyer and Seller shall immediately sign a written cancellation confirming said cancellation and directing 21. all earnest money paid hereunder to be refunded to Buyer, unless provided otherwise in this Purchase Agreement. 22. Buyer's failure to give written notice of cancellation of this Purchase Agreement, within the respective time period(s 23. specified herein shall conclusively be deemed Buyer's election to proceed with the transaction without correction of 24. any disapproved items that Seller has not agreed in writing to correct or remedy. 25. Buyer's Responsibility Regarding Due Diligence: Buyer shall keep the Property free and clear of all liens, shall 26. indemnify, defend, and hold Seller harmless from all liability, claims, demands, damages, costs or expenses, incurred 27. by Seller by reason of any physical damage to the Property or injury to persons caused by Buyer or its agents or 28. contractors in exercising its rights under this Addendum, and shall return the Property to the same condition it was 29. in prior to Buyer's testing. Buyer shall not disturb any tenants, employees or occupants of the Property. 30. Seller's Responsibility Regarding Due Diligence: Seller agrees to allow reasonable access to the Property for 31. performance of any surveys, due diligence or inspections agreed to herein. Seller understands that the inspections 32. may require that all utilities be on and the Seller is responsible for providing same at Seller's expense. If the Property 33. is occupied by someone other than Owner, Owner shall comply with Minnesota law and existing Owner's lease, if 34. any, to provide tenant with proper notice in advance of any Property showing. 35. A. ENVIRONMENTAL ASSESSMENTS/INSPECTIONS: 36. (i) Phase I: This Purchase Agreement ❑ IS ❑X IS NOT contingent upon ❑ BUYER ❑ SELLER --------(Check one.)--------- ---------------- (Checkone.)---------------- 37. obtaining a Phase I environmental site assessment of the Property at ❑ BUYER'S ❑ SELLER'S expense -----------------(Check oneJ -------------- 38. within days of Final Acceptance Date of this Purchase Agreement. 39. Buyer shall provide reasonable approval of the Phase I environmental site assessment within 40. days of either: 41. (a) Final Acceptance Date of this Purchase Agreement if the Phase I environmental site assessment is 42. obligated to be obtained by Buyer; or 43. (b) receipt of the Phase I environmental site assessment if Seller is obligated to obtain. MN-ACPA:DD-1 (8/20) dotloop signature verification: Authentisign ID: A9531 B7D-3B32-EFt 1-86D4-OOOD3A8B7EDD Edina Realt ADDENDUM TO COMMERCIAL y PURCHASE AGREEMENT: a Berkshire Hathaway affiliate DUE DILIGENCE 44. Page 2 45. Property located at 44 Washington Avenue W Hutchinson MN 55350 46. (ii) Phase II: This Purchase Agreement ❑ IS ❑X IS NOT contingent upon ❑ BUYER ❑ SELLER --------(Check one.)--------- ---------------- (Checkone.) obtaining a Phase II environmental site assessment of the Property at ❑ BUYER ❑ SELLER ---------------- (Checkone.)---------------- 48. expensewithin days of Final Acceptance Date of this Purchase Agreement. 49. Buyer shall provide reasonable approval of the Phase II environmental site assessment within 50. days of either: 51. (a) Final Acceptance Date of this Purchase Agreement if the Phase II environmental site assessment is 52. obligated to be obtained by Buyer; or 53. (b) receipt of the Phase II environmental site assessment if Seller is obligated to obtain. 54. (iii) Other Testing: This Purchase Agreement ❑ IS ❑X IS NOT contingent upon ❑ BUYER ❑ SELLER --------(Check one.)-------- ---------------- (Check one.)----------- 55. obtaining other Intrusive Testing of the Property at ❑ BUYER'S ❑ SELLER'S expense within -------------------(Check one.)------------------ 56. days of Final Acceptance Date of this Purchase Agreement. 57. Buyer shall provide reasonable approval of the assessment/inspection within 58. days of either: 59. (a) Final Acceptance Date of this Purchase Agreement if the assessment/inspection is obligated to be obtained 60. by Buyer; or 61. (b) receipt of the assessment/inspection if Seller is obligated to obtain. 62. For purposes of this form, "Intrusive Testing" shall mean any testing, inspection(s) or investigation(s) that 63. changes the Property from its original condition or otherwise damages the Property. 64. Buyer ❑ SHALL ❑ SHALL NOT be required to provide Seller with a copy of any assessment/inspection -----------------(Check one.)-------------- 65. reports obtained by Buyer. 66. (iv) Seller's Representations on Environmental Concerns: To the best of Seller's knowledge, there are no 67. hazardous substances or underground storage tanks except herein noted: 68. 69. 70. 71. B. GOVERNMENTAL APPROVAL: The following items, if applicable, shall be completed within 72. days of Final Acceptance Date of this Purchase Agreement. 73. (i) This Purchase Agreement ❑ IS ❑X IS NOT contingent upon Buyer obtaining approval of governing body of -----(Check one.)------ 74. development or subdivision plans, as described below, at ❑ BUYER ❑ SELLER expense. If IS, Seller shall -- (Check one.)----------- 75. cooperate with Buyer to obtain such approval. 76. 77. (ii) This Purchase Agreement ❑ IS ❑X IS NOT contingent upon Buyer obtaining approval of governing body for --(Check one.)----- 78. rezoning or use permits, as described below, at ❑ BUYER ❑ SELLER expense. If IS, Seller shall ---------------(Check onej ------------- 79. cooperate with Buyer to obtain such approval. 80. 81. MN-ACPA:DD-2 (8/20) dotloop signature verification: Authentisign ID: A9531 B7D-3B32-EFt 1-86D4-OOOD3A8B7EDD EdinaRealty. ADDENDUM TO COMMERCIAL a Berkshire Hathaway affiliate PURCHASE AGREEMENT: DUE DILIGENCE 82. Page 3 83. Property located at 44 Washington Avenue W Hutchinson MN 55350 84. C. OTHER CONTINGENCIES: This Purchase Agreement is contingent upon Buyer's reasonable approval of the 85. following items, if checked. Buyer shall approve the items within days of either: 86. (a) Final Acceptance Date of this Purchase Agreement if Buyer is obligated to obtain the item; or 87. (b) receipt of the item if Seller is obligated to obtain the item. 88. (Select appropriate options i-vi.) 89. ❑ (i) ❑ BUYER ❑ SELLER obtaining a certificate of survey of the Property, at ❑ BUYER ❑ SELLER -------------(Check one.)------------- --------------- (Checkone.)--------------- 90. expense. 91. ❑ (ii) ❑ BUYER ❑ SELLER obtaining soil tests which indicate that the Property may be improved without -------------(Check one.)------------ 92. extraordinary building methods or costs, at ❑ BUYER ❑ SELLER expense. -------------(Check one.)----------- 93. ❑ (iii) ❑ BUYER ❑ SELLER obtaining copies of all covenants, reservations and restrictions affecting the Property, --------(Check one.)------------ 94. at ❑ BUYER ❑ SELLER expense. ---------------(Check one.)------------- 95. ❑ (iv) ❑ BUYER ❑ SELLER obtaining and approving copies of Association documents at ❑ BUYER ❑ SELLER -----------(Check one.)------------- ------------- (Checkone.}------------ 96. expense. 97. ❑ (v) Buyer obtaining from Seller copies of all documents in Seller's possession or control relating to the rights 98. of tenants, including but not limited to, rent rolls, leases, common area maintenance fees, and estoppel 99. certificates. 100. Seller assigns all right, title, and interest in and to the tenant security deposits and the interest earned, if 101. any, and credited thereon (collectively, the Security Deposits) for the Property at closing. Seller warrants 102. that the Security Deposits being assigned are all of the Security Deposits being held for tenants at the 103. Property. Seller shall, immediately after closing, notify tenant of the Security Deposit transfer and of Buyer's 104. name and address as required under MN Statute 504B.178, Subd. 5. Buyer agrees to hold and apply all 105. of the Security Deposits in accordance with the terms of the leases of the Property pursuant to MN Statute 106. 504B.178 and indemnify and agree to hold and defend Seller, its legal representatives, successors and 107. assigns harmless from and against any and all claims, actions, suits, proceedings, demands, assessments, 108. judgments, liabilities and costs including, without limitation, reasonable attorney's fees and expenses of 109. any kind whatsoever, arising from and after the date of closing asserted by said tenants or any person 110. or persons claiming under any of them with respect to any of the Security Deposits. 111. ❑ (vi) Buyer obtaining from Seller copies of all permits applicable to the Property, operating statements for the 112. last years, vendor contracts, and any other documents in Seller's possession or 113. control and relating to the Property. 114. Buyer acknowledges that Seller makes no representations or warranties by providing any documents to 115. Buyer. Buyer agrees to return all such documents to Seller upon Seller's written request. MN-ACPA:DD-3 (8/20) dotloop signature verification: dt1p.us/U76U-Z0Do-8FDG Authentisign ID: A9531B7D-3B32-EF11-86D4-00OD3A8B7EDD Edina Realt a Berkshire Hathaway affiliate 117. Property located at 44 Washington Avenue W ADDENDUM TO COMMERCIAL PURCHASE AGREEMENT: DUE DILIGENCE 116. Page 4 Hutchinson MN 55350 118. D. BUYER INVESTIGATIONS: This Purchase Agreement ❑X IS ❑ IS NOT contingent upon Buyer's investigations -------(Check one.)------ 119. of the Property for Buyer to satisfy himself/herself/itself with respect to the physical condition of the Property and 120. the feasibility and suitability of the Property for Buyer's intended purpose. Any Buyer investigations shall be 121. completed within 12 days of Final Acceptance Date of this Purchase 122. Agreement. All Buyer investigations shall be at Buyer's sole cost and expense. 123. SELLER 124. City of Hutchinson (Bus' dotloop verified ran-=,/ff",Y o urcci.% lffruiceJYiurYav 06/27/24 10:42 AM CDT 125. By: HVBG-SVGR-ZFCE-BZPD (Seller) 196 Its- City Administrator - 127 (Title) - /- I- A BUYER DeRock Capital Group (Business Entity or Individual Name) AuthentmcN By: Z21i De&ok 06/24/24 S-Wer) Jon DeRock Its: (Title) (Date) (Date) 128. SELLER BUYER 129 (Business Entity or Individual Name) 130. By: (Seller) 131. Its: — (Title) 132 133. 134. (Business Entity or Individual Name) By: (Buyer) Its: (Title) (Date) (Date) THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MWACPA:DD-4 (8/20) dotloop signature verification: dt1p.us/5rnHF-4hWL-Nj65 CDP Matrix https://matrix.commondataplatform. com/Matrix/Finance/SellersEsti.., Netsheet Data Entry Matthew Pulkrabek mpuli,rabek@hometovmmn.com Ph: 320-537-6 t15 IV I INMA Seller's Estimated Net Proceeds PREPARED FOR: 01 02 03 04 05 06 07 08 09 10 City of Hutchinson 44 Washington Ave E Hutchinson MN 55350 Proposed Price Government Expenses State Deed Tax Recording Fee Other Expenses Updating Title (Abstract/RPA) Settle/Closing Fee Listing Broker Fee Selling Broker Fee Total Broker's Fee TOTALS Seller's Gains Seller's Expenses Estimated Equity to Seller 6/27/2024 )0,000.00 (660.00) (92.00) (500.00) (450.00) 0.00 0.00 (12,000.00) 200,000.00 (13,702.00) $186,298.00 These figures are estimates only. Your estimated selling expenses may be more or less which will affect your estimated equity. Hometown Realty, Inc doWo pw0fied mac%. s��tcYe%is�eiv-%%ridJ'�su�'ue�C'c%� Q�.rei,eee,o?. 72410:42 AM CDT A9TE-TTLA-2GSC-E4P5 1 of 1 6/27/2024, 10:02 AM ORDINANCE NO. 24-847 PUBLICATION NO. 8549 AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AUTHORIZING THE SALE OF MUNICIPALLY OWNED REAL PROPERTY THE CITY OF HUTCHINSON ORDAINS: Section 1. That the municipally owned real property legally described as follows: SOUTH HALF, HUTCHINSON BLOCK-008 W 44' OF N 14' OF LOT 9 & W 44' OF LOT 10 (FIRE HALL) for good and valuable consideration is hereby transferred and conveyed to DeRock Capital Group or its successors or assigns as agreed upon in the purchase agreement. Section 2. The City Administrator, Matthew Jaunich, or his designee is authorized to sign any and all documents on behalf of the City to effectuate the closing of this transaction. Section 3. This ordinance shall take effect upon its adoption and publication. Adopted by the City Council this 23' day of July, 2024. Gary T. Forcier Mayor ATTEST: Matthew Jaunich City Administrator c HUTCHINSON CITY COUNCIL HUTCHINSON Request for Board Action A CITY ON PURPOSE. Consideration to appoint Karissa Kosek to the Planning Commission Agenda Item: Department: Planning LICENSE SECTION Meeting Date: 7/9/2024 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Reviewed by Staff ❑� Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Staff has received a Board/Commission interest form from Karissa Kosek who is interested in be on the Planning Commission. The Planning Commission has been one member short since John Lofdahl decided to not go for a 2nd term because he is going to be spending more time traveling. Ms. Kosek would be finishing Mr. Lofdahl's 2nd term. Please let me know if there are any questions. Thank you. BOARD ACTION REQUESTED: Appointment of Ms. Kosek to the Planning Commission. 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 u OF M-1 HUTCHINSON CITY COUNCIL H UTCH I NSO N Request for Board Action A CITY ON PURPOSE. Agenda Item: Temporary Liquor License - Minnesota Pottery Festival Department: Administration LICENSE SECTION Meeting Date: 7/9/2024 Application Complete Yes Contact: Melissa Starke Agenda Item Type: Presenter: Melissa Starke Reviewed by Staff ✓❑ consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The Minnesota Pottery Festival has submitted a temporary liquor license to dispense liquor at the pottery festival on July 27-28, 2024, at Masonic West River Park. The Minnesota Pottery Festival is a charitable organization and meets the requirements for a temporary liquor license. BOARD ACTION REQUESTED: Approve issuing temporary liquor license to Minnesota Pottery Festival on July 27-28, 2024, at Masonic West River Park. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Minnesota Department of Public Safety Alcohol and Gambling Enforcement Division 445 Minnesota Street, Suite 1600, St. Paul, MN 55101 651-201-7507 TTY 651-282-6555 APPLICATION AND PERMIT FOR A 1 DAY TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE Name of organization Minnesota Pottery Festival Organization Address (No PO Boxes) 22 First Ave NE Name of person making application Date of organization Tax exempt number 012 1 146-1767469 City State Zip Code Hutchinson MN 55350 Business phone Home phone 20-587-2599 Date(s) of event Type of organization ❑ Microdistillery ❑ Small Brewer my 27 & 28, 2024 ❑ Club M Charitable ❑ Religious ❑ Other non-profit Organization officer's name City Hutchinson State MN Zip Code 55350 Morgan Baum Organization officer's name City Hutchinson State MN Zip Code 5350 Dany Stouffer Organization officer's name City Hutchinson State Zip Code 55350 MN Lori Krenick Location where permit will be used. If an outdoor area, describe. West Masonic Park If the applicant will contract for intoxicating liquor service give the name and address of the liquor license providing the service. Bobbing Bobber Brewery If the applicant will carry liquor liability insurance please provide the carrier's name and amount of coverage. See Scott Decker APPROVAL APP ICAnON MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT �n.�hSli►-1 City or ounty approving the license Date Approved 12 5. °-V Fee Amount Event in conjunction with a community festival ❑ Yes ❑ No Current population of city Permit Date City or County E-mail Address Please Print Name of City Clerk or County Official Signature City Clerk or County Official CLERKS NOTICE: Submit this form to Alcohol and Gambling Enforcement Division 30 days prior to event No Temp Applications faxed or mailed. Only emailed. ONE SUBMISSION PER EMAIL APPLICATION ONLY. PLEASE PROVIDE A VALID E-MAIL ADDRESS FOR THE CITY/COUNTY AS ALL TEMPORARY PERMIT APPROVALS WILL BE SENT BACK VIA EMAIL. E-MAIL THE APPLICATION SIGNED BY CITY/COUNTYTOAGE.TEMPORARYAPPLICATION STATE.MN.US Public Arts Commission Meeting April 10, 2024, 5:30 PM Hutchinson Event Center 1005 MN-15, Hutchinson MN 55350 MINUTES • Justin calls meeting to order at 5:34PM. Members present were Justin Beck, Pat May, Lynn Neumann, Jenean Sorrell, Patrick Hiltner, Wanda Lambert and Andrew Webster. Members not present were Kris Haag. • Justin updates committee on sculpture stroll. Crow River Press is shutting down, they printed brochures, need replacement. • Standard Printing discussed. Possibly eliminating brochure is option. Daniel Stoufer is also discussed as option for printing limited number of brochures. Vistaprint, Canva, 4by6. • Ribbon cutting ceremony discussed. Typically end of May/Memorial Day is the opening but mid -June considered. . • Motion to adjourn by Jenean, second by Patrick. Motion approved. • Adjourn 6:06PM. Public Arts Commission Meeting May 8, 2024, 5:30 PM Hutchinson Event Center 1005 MN-15, Hutchinson MN 55350 MINUTES • Justin calls meeting to order at 5:34PM. Members present were Justin Beck, Pat May, Jenean Sorrell, Patrick Hiltner, Wanda Lambert and Andrew Webster. Members not present were Kris Haag and Lynn Neumann. • April minutes approved. Unanimous vote. • Justin updates committee on sculpture stroll. New W-9s requested to keep information updated on artists. • Brochures up for debate. Possibly printing smaller quantity and placing in more central locations is a consensus opinion. QR code will be included at each sculpture site, which links to map. • Decision made to print the 500 minimum. Options for places to print discussed. To be decided later. • Website updates. Tom and Justin have been working to update website as it migrates to Hutchinson government page. • Social media posting once a week and ribbon cutting discussed. • Motion to adjourn by Pat, second by Wanda. Motion approved. • Adjourn 5:57PM. MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, April 24, 2024 Call to order — 3:00 p.m. President Don Martinez called the meeting to order. Members present: President Don Martinez; Vice President Matt Cheney; Secretary Kathy Silvernale; Commissioner Anthony Hanson; Commissioner Troy Pullis; GM Jeremy Carter; Attorney Marc Sebora; Swearing in of Commissioner Troy Pullis 1. Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Cheney, second by Commissioner Hanson to Approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements Mr. Martig presented the Financial Statements. Electric Division consistent from last year March 2023. Natural Gas Division Net Income increased by $611 k due to billing Heartland Corn $752k for the interconnect station reimbursement. Customer Revenues were down due to decreased usage in large part due to warmer weather. GM Carter spoke of the market prices along with the Pipeline Imbalance. GM Carter reviewed Investments. Motion by Commissioner Silvernale, second by Commissioner Cheney to Approve the Financial Statements. Motion carried unanimously. 4. Open Forum 5. Communication a. City Administrator — Matthew Jaunich — i. City Projects to start next week ii. Council has accepted bids for VMF ballfield on grandstand and lighting. Should be completed by Nov 1 st b. Divisions i. Dan Lang, Engineering Services Manager — Absent ii. Dave Hunstad, Electric Transmission/Distribution Manager — 1. Dan is down at Plant 1 working on relay project 2. Starting construction season 3. Provided Outage update iii. Mike Gabrielson, Production Manager 1. Tuck Pointing to be completed in the next 2 weeks 2. Final Phase of Cooling tower will be completed next week iv. Jared Martig, Financial Manager- 1. Account Coordinator position update c. Human Resources — Angie Radke - i. Working on Welder Service Person and Account Coordinator positions, along with new Commissioner Troy Pullis d. Legal — Marc Sebora — i. Nothing to report e. General Manager — Jeremy Carter i. Legislative Update ii. Working with Heartland Corn and Crew Chiefs on lateral pigging project that needs to be completed iii. Conference Call with BP discussing additional prepaid deal 6. Policies a. Review Policies i. Section 4 of Exempt Handbook ii. Section 4 of Non -Exempt Handbook No changes recommended at this time. 7. Unfinished Business 8. New Business a. Approval of Highland Park Industrial, LLC Natural Gas Transportation and Commodity Purchase Agreement GM Carter presented Approval of Highland Park Industrial, LLC Natural Gas Transportation and Commodity Purchase Agreement. This agreement was originally the HTI/TDK agreement. Last month the agreement was updated to the name change of Highland Park Industrial, LLC. This agreement provides transportation and commodity purchasing rights to Highland Park Industrial, LLC on Hutchinson Utilities' facilities for a 1-year term. Motion by Commissioner Hanson, second by Commissioner Silvernale to Approve Highland Park Industrial, LLC Natural Gas Transportation and Commodity Purchase Agreement. Motion carried unanimously. b. Review of 2023 Annual Benchmarking Report Mr. Hunstad presented the 2023 Annual Benchmarking Report. The report focuses on distribution system reliability across the country and is customized to each utility that participates in the APPA eReliability Tracker service. Mr. Hunstad reviewed K the SAIDI, SAIR, and CAIDI Summary along with where HUC ranks to others in the region. Commissioners thanked and congratulated Staff for the hard work. c. Approve Req#009876 — Vacuum Excavation Machine Mr. Hunstad presented Approval of Req#009876 — Vacuum Excavation Machine. HUC is due to replace the 2014 Vactron Vacuum Excavation Machine per the fleet replacement schedule. Staff is recommending Ring-O-Matic 550 Jet Vac Vacuum Excavation System from Trenchers Plus. The 550 Jet Vac is part of the Minnesota State Cooperative Purchasing Contract for State and Local Governments. 2024 Budget was $95k. Total cost of 550 Jet Vac will be $73,784.87 after trade in, tax, license and registration. Motion by Commissioner Cheney, second by Commissioner Hanson to Approve Req#009876 — Vacuum Excavation Machine. Motion carried unanimously. d. Approve Sale of Surplus Equipment Mr. Hunstad presented Approval of Sale of Surplus Equipment. HUC is starting to receive trucks and equipment that were ordered over the last two years and are looking for approval to sell the surplus on GovDeals.com as the new trucks and equipment arrive. Staff is also looking for approval to sell and or dispose of obsolete materials from the Gas and Electric Division. Motion by Commissioner Silvernale, second by Commissioner Cheney to Approve Sale of Surplus Equipment. Motion carried unanimously. e. LM6000 Update GM Carter provided an LM6000 Update. GM Carter reviewed the 3 options that were available at March's Commission meeting along with providing an update to the 3 options. 1 st Option; using current midshaft that was going out for NDT testing and possible recoating - update to this option is that NDT testing cannot be completed because the midshaft needs to be polished, if the midshaft is polished it will reduce the thickness of the splines on the midshaft making it inoperable. 2nd Option; there is an aftermarket midshaft that can be purchased for an additional cost and can be ready in about 8 weeks - update to this option is that HUC will pay $650k for the aftermarket midshaft and go down the same path as option 1. 3rd Option; PA Engine Exchange - update to this option is the proposal is only good through April; however, Staff has not received the proposal yet. Also, some of HUC's parts on the current engine are in better shape than the 3 new PA Engine and GE would like to use HUC's parts in the PA Engine Exchange. There would be a 2-year warranty on this option. Conversations were held on the 3 options along with the insurability of the options and Duty to Warn. Additional conversations will be held with Hartford Steam. Staff is looking to set up a call to see if an inspection could be done soon to help make the decision with the options that are available. Ms. Radke will send an email about availability on having a Special Meeting in the next 2 weeks. GM Carter will send out an updated Electric Production P&L. 9. Adjourn There being no further business, a motion by Commissioner Cheney, second by Commissioner Silvernale to adjourn the meeting at 3:55p.m. Motion carried unanimously. ATTEST: , % L Don Martinez, President n K thy Si vernale, Secretary MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, May 29, 2024 Call to order — 3:00 p.m. President Don Martinez called the meeting to order. Members present: President Don Martinez; Vice President Matt Cheney; Secretary Kathy Silvernale; Commissioner Anthony Hanson; Commissioner Troy Pullis; GM Jeremy Carter; Attorney Marc Sebora; 1. Conflict of Interest 2. Approve Consent Agenda a. Approve Minutes b. Ratify Payment of Bills Motion by Commissioner Cheney, second by Commissioner Pullis to Approve the Consent Agenda. Motion carried unanimously. 3. Approve Financial Statements Mr. Martig presented the Financial Statements. Cash increased between the 2 divisions by $879K, which included reimbursement from HCP. Both Electric Division and Natural Gas Division operating expenses were up due to the City invoicing meter reading equipment change out at both water towers. Natural Gas Division operating expenses also included $44K for DOT Pipeline Safety User Fee Assessment that is due every year. Revenues and usage were down due to a 22% decrease in heating days. GM Carter spoke of the consumption within the different classes. Overall YTD, consistent but throughout the classes not a lot of margin. Trending relative to the weather. Motion by Commissioner Silvernale, second by Commissioner Hanson to Approve the Financial Statements. Motion carried unanimously. 4. Open Forum 5. Communication a. City Administrator — Matthew Jaunich — i. Start of construction season ii. Pool opens June 5 iii. City Council run deadline is next Tuesday b. Divisions i. Dan Lang, Engineering Services Manager — 1. Provided update on outage last night ii. Dave Hunstad, Electric Transmission/Distribution. Manager — 1. Nothing to report iii. Mike Gabrielson, Production Manager 1. Nothing to report iv. Jared Martig, Financial Manager- 1. Account Coordinator position update c. Human Resources — Angie Radke - i. Working on Welder Service Person and Account Coordinator positions, now working on hiring 2 seasonal temps d. Legal — Marc Sebora — i. Nothing to report e. General Manager — Jeremy Carter i. Working on Regulator Compliance manuals ii. Working with Northern Border and BP on Imbalance on the pipeline iii. Prepaid deal update iv. MMUA regional meeting on June 6 at Arts Place v. Working through MNOPS audit 6. Policies a. Review Policies i. Section 5 of Exempt Handbook ii. Section 5 of Non -Exempt Handbook No changes recommended at this time. 7. Unfinished Business 8. New Business a. Approve Hutchinson Substation Circuit Breaker Contract Mr. Lang presented Approval of Hutchinson Substation Circuit Breaker Contract. The Boarder States proposal was the lowest evaluated price of the three bids that were received. Discussion was held on the price and timing of the project. Motion by Commissioner Hanson, second by Commissioner Cheney to Approve Hutchinson Substation Circuit Breaker Contract. Motion carried unanimously. b. Approve Req#009912 — Fiberglass Service Body Mr. Hunstad presented the Approval of Requisition #009912 — Fiberglass Service Body. As part of the Fleet Management Program the 2012 Dodge Ram is due for replacement. Recommendation is for a Crysteel Equipment Service body from the Minnesota State Cooperative Purchasing Contract. 2 Motion by Commissioner Silvernale, second by Commissioner Pullis to Approve Req#009912- Fiberglass Service Body. Motion carried unanimously. c. Approval of Buyers Authorizing Resolution 24-01 for the Short -Term Natural Gas Prepay Deal GM Carter presented Approval of Buyers Authorizing Resolution 24-01 for the Short -Term Natural Gas Prepay Deal. Back in 2018 Commissioners agreed to a short-term pre -pay gas supply contract with PEAK (Public Energy Authority of Kentucky) /BP through November 2024. At the time the Commissioners felt more comfortable going with a short-term contract rather than a long-term contract. The short-term contract provided a .06 cent discount whereas the long-term contract provided a .29/.30 cent discount. As part of the repricing PEAK and BP are looking to re -price the existing bonds. As part of repricing PEAK/BP are interested in retaining HUC volumes in another short-term deal as part of the overall repricing transaction. PEAK/BP are looking at a .10 cent discount on a short-term deal. PEAK/BP anticipate a remarking period on the new bonds to be an 8-year timeframe. The intention is to wrap up all documentation and approvals from all counter parties that will be in the prepay deal by end of June and then go out to the market and issue bonds in first part of July. HUC is a qualified participant being a municipal government which is needed to for a certain amount of load to be in prepay deals to issue tax-exempt financing. MCE is also offering a prepay deal with larger discounts. Conversations have been held with this prepay deal as well. Looking at possibly having loads in both of the deals in the future. Discussion was held on the amount of load that will going into the prepay deal. Approving the resolution authorizes HUC to execute the Short -Term Gas Supply Contract pursuant to HUC agreeing to purchase specified quantities of natural gas from PEAK at a discount. Approving resolution also authorizes the GM to execute any additional closing documents or certificates required in connection with the execution and delivery of the contract or in carrying out the intentions and purpose of the resolution. In addition, a certificate document and attorney's opinion letter will be completed and signed as part of the closing procedures related to the repricing/remarking transaction. Motion by Commissioner Hanson, second by Commissioner Silvernale to Approve Buyers Authorizing Resolution 24-01 for the Short -Term Natural Gas Prepay Deal. Motion carried unanimously. 3 d. LM6000 Discussion GM Carter provided an LM6000 Update. GM Carter recapped the options that were available along with the insurability of the engines and financial impact GM Carter provided an update from Hartford. Hartford is unable to make a decision on insurability with either option. Duty to Warn is concerning to Hartford and will not make a decision until HUC knows what engine Staff is going to go with. Hartford may insure the 2"d option which is the engine exchange however Hartford will still want to see all information and detail on the exchanged engine. GE states that the exchanged engine is a serviceable engine and will have a 2- year warranty. Discussion was held on self -insuring and different coverages HUC has along with the 2-year warranty that GE will have on the engine. Conversations were also held on the life of the exchanged engine. Options available are 1) get original engine back, which HUC will not get back until Sept/Oct, however the longer the engine is kept out of service the more likely the engine will be de -rated. Staff cannot figure how much the unit will be de -rated due to multiple factors. Cost will be about $2M and less likely to be insured. 2) Engine Exchange. Cost is $4.4M, have a 2-year warranty and possibly be insured. 3) not replace the engine. Conversations were held on capacity impact. GM Carter's recommendation is engine exchange, more expensive but most economical. Discussion was held on risk side. GE is willing to go on joint purchasing site, Sourcewell to make engine exchange happen. Motion by Commissioner Hanson, second by Commissioner Pullis to proceed with Engine Exchange, to include getting a guarantee by end of August and management will do the best attempt to have the engine insured knowing it may not happen. Motion carried unanimously. Conversation was held on the future and to have an Intermediate plan in place along with the Cap X. 9. Adjourn There being no further business, a motion by Commissioner Pullis, second by Commissioner Cheney to adjourn the meeting at 4:02p.m. Motion carried unanimously. 4 Kathy Vivernale, Secretary ATTEST:' n Martinez, President 71 Library Board Meeting May 29, 2024 Members Present: Mary Christensen, Sue Griep, Margaret Hoffman, Kay Hultgren, Julie Lofdahl, Dianne Wanzek, and Katy Hiltner, Ex -off icio. Excused/Absent: Tim Burley Dianne called the meeting to order. Minutes from the April 22, 2024, meeting were reviewed and approved. Old Business: 1. Program Reports —Author Events: a. Morgan Baum with Clay Coyote spoke about her latest cookbook, Cooking with the Coyotes, on May 2, 2024. Ten attendees enjoyed hearing her presentation. b. Patty Wetterling and Joy Baker came to talk about their collaboration on Dear Jacob. An audience of over 235 were present for this event on May 14, held in the Park Elementary Auditorium. Attendees lingered afterwards for book purchasing, signing, and photo taking with Patty and Joy. Once Upon a Crime bookstore brought copies of the book for purchase. c. Allen Eskens, Minnesota author, presented in Glencoe, in May, following a session with students at Glencoe High School. 40 were in attendance that evening and 27 students were in class for the day session. 2. Upcoming Author Event: Julie Jo Larson will present her book 100 Things to Do in Minnesota Before You Die, on Saturday, June 1, at 10:00 a.m., at HPL. 3. Children's Program Summary —May 2024: Graphic novel bookclub had (6 in attendance), Lego club (8 kids, 6 adults), Chess club (10), Crochet (12), Coding club (11). These groups will all take a summer break. 4. Summer Staff Update: Katy reported that no new hire(s) are needed at this time. New Business: 1. Election of Officers: Current officers agree to continue in their positions for the year: President: Dianne Wanzek V-President: Julie Lofdahl Secretary: Kay Hultgren Back-up Secretary: Sue Griep 2. 2024 Summer Reading: Theme of "Read, Renew, Repeat". There'll be various incentive programs for all ages (children, teens, adults). a. Stories in the Park: Begins on June 6, with the 4-H program "Supporting Monarch Butterflies". The Thursday story sessions continue with various guest readers and other special programs b. Special Events (Legacy Programs) include Climb Theater's "Country Mouse, City Mouse" on June 13, and the Jolly Pops (music) on August 8. c. Tween/Teen Programming: Ages 9-12 will have two meetings a month to "hang out" (games, chit-chat, etc.) and nature photography challenges. Teens (13-18) will enjoy anime movies, a reading club, and an escape room. d. Library Decor and Special Displays: Tranquility nook (upstairs), "Enchanted Forest"/children's area, puppet theater/reading nook. displays/exhibits from various agencies, bookmarks to color, etc. e. Funding: Friends of the Library is sponsoring the children's summer programming. Prairielands is sponsoring teen programming. New Business, continued (May 29 minutes) 3. Partnership with Historic Hutchinson: a. Voices from History Past: These Friday programs will take place at 1:30 p.m.. upstairs in the library, on the following dates: June 7: Jim Fahey will speak on Hutch Founders July 12: Kay Voigt will present on the History of the Library. August 2: Bill Arndt will speak on agriculture in the Hutchinson area. b. Hutchinson Brothers Scavenger Hunt: Jacob Hauer, a Maplewood Academy student, has created a scavenger hunt. Children can do this and turn it in for a prize. 4. Juneteenth Holiday Closure: The library will be closed on Wednesday, June 19, 2024 in observance of the holiday. 5. Item of interest: On May 28, five retired Hennepin County librarians stopped in to visit HPL. April 2024 Donations and Grants None were received Total = $0 Next Meeting: Monday, June 24, 2024, at 4:30p.m., HPL meeting room. Respectfully submitted Kay Hultgren, secretary