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cp08-25-1998 cAUGUST SUNDAY MONDAY TUESDAY 1998 p 77U -23- -24- -25- 7:00 a.m. — Leadership Team HUTCHINSON Meeting in City Center Library Cont Room CITY CALENDAR 9:00 a.m. — Management Team 4:30 p.m. — Library Board Meeting Meeting in Main Conf. Room WEEK OF 4:00 p.m. - Budget Workshop at City Cemter Main Conf. August 23 - 29 Room 5:30 p.m. — City Council Meeting WEDNESDAY THURSDAY FRIDAY SATURDAY -26- -27- -28- -29- CONFERENCE /SEMINAR/ TRAININGNACATION 24 -28 Gary D. Plotz (V) 24 - Jo 3:00 m.- Utilities Commission P• 25 -28 Dolf Moon lfMo M Meeting at Utilities 24 -31 Pat Vander Veen (V 6:00 p.m. — CITY APPRECIATION PICNIC AT CIVIC ARENA C - Conference M = Meeting S = Seminar T = Training AGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 25,1998 2. INVOCATION — Rev. Don Urbach, Our Savior's Lutheran Church PRESENTATION OF 1855 CITY OF HUTCHINSON MAP BY DORIS LAATSCH AND AT'T'ORNEY NEIL JENSEN ►ni. ra MINUTES OF REGULAR MEETING OF AUGUST 11, 1998 4. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS FINANCIAL/INVESTMENT REPORT — JULY 1998 2. PLANNING COMMISSION MINUTES OF JULY 21, 1998 PARKS, RECREATION AND COMMUNITY EDUCATION ADVISORY BOARD MINUTES OF JUNE 14, 1998 (b) RESOLUTIONS AND ORDINANCES RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC CONTROL DEVICES 2. RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT RESOLUTION DESIGNATING THE LOCATION OF THE POLLING PLACE FOR ALL PRECINCTS AND APPOINTING JUDGES FOR THE 1998 SPECIAL CITY ELECTION AND PRIMARY AND GENERAL STATE ELECTIONS 4 LETTING NO. 8/PROJECT NO. 98- 17/ISLAND VIEW HEIGHTS THIRD ADDITION: ➢ RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSEMNT ROLL NO. 5023 ➢ RESOLUTION WAIVING HEARING ON PROPOSED ASSESSMENT ROLL NO. 5023 ➢ RESOLUTION ADOPTING ASSESSMENT ROLL NO. 5023 ➢ RESOLUTION ACCEPTING BID CITY COUNCIL AGENDA — AUGUST 25, 1998 ORDINANCE NO. 98 -234 — AN ORDINANCE DELETING SECTI 2.57 OF THE HUTCHINSON CITY CODE ENTITLED "NURSING �ME BOARD" AND ADOPTING BY REFERENCE, CITY CODE, CH FER 1 AND SECTION 2.99, WHICH, AMONG OTHER THINGS, C( AIN PENALTY PROVISIONS (FIRST READING AND SET S JND READING FOR SEPTEMBER 8, 1998) ORDINANCE NO. 98 -235 — AN ORDINANCE AMENDING CTION 2.58 OF THE HUTCHINSON CITY CODE ENTITLED "HOSP ;LAND NURSING HOME BOARD" BY DELETING CERTAIN Lf. ;GUAGE THERETO AND ADOPTING BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 2.99, WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS (FIRST READING AND SET SECOND READING FOR SEPTEMBER 8, 1998) (c) APPOINTMENTS TO BOARDS AND COMMISSIONS 1. AIRPORT COMMISSION —DAVID SKAAR (FIRST TERM) 2. BUILDING CODE BOARD OF APPEALS — KEVIN COMPTON (SECOND TERM) 3. HRA — JOEL KRAFT (SECOND TERM) 4. PARKS, RECREATION & COMMUNITY EDUCATION — ➢ JAY BEYTIEN (FIRST TERM) ➢ MARK CORMIER (FIRST TERM) ➢ BERNIE MINER JR- (FIRST TERM) 5. TREE BOARD — ➢ DEANE DIETEL (FIRST TERM) ➢ MICHAEL GETZKE (FIRST TERM) 6. UTILITIES COMMISSION — MIKE CARLS (SECOND TERM) (d) OUT -OF -STATE TRAVEL FOR DICK NAGY TO ATTEND AMERICAN WATER WORKS ASSOCIATION REGIONAL MEETING OF SECTION OFFICERS HELD IN ILLINOIS (e) LOT SPLIT OF TWIN HOMES LOCATED IN PLAZA HEIGHTS ADDITION (LOT 3, BLOCK 6) REQUESTED BY DAVID BUTLER WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION AND STAFF (1) CONDITIONAL USE PERMIT REQUESTED BY DAVID EVENSON TO REMOVE EXISTING GARAGE AND REPLACE WITH 30'X24' GARAGE THREE FEET FROM PROPERTY LINE LOCATED AT 518 JUERGENS ROAD SW WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION AND STAFF (ADOPT RESOLUTION) (g) VACATION OF EASEMENTS LOCATED BETWEEN LOTS 8 AND 9, BLOCK 1, ISLAND VIEW HEIGHTS SECOND ADDITION, REQUESTED BY GENE AND JULIA WINKELMANN WITH FAVORABLE RECOMMENDTAION OF PLANNING COMMISSION AND STAFF (FIRST READING OF ORDINANCE AND SET SECOND READING FOR SEPTEMBER 8, 1998) 6 CITY COUNCIL AGENDA — AUGUST 25, 1998 (h) AMENDMENT TO ZONING ORDINANCE NO. 464, CHAPTER 11, SECTION 8.08, TO PERMIT 12'X16' UTILITY SHEDS WITHOUT CEMENT SLABS IN MANUFACTURED HOME PARKS WTI'H FAVORABLE RECOMMENDATION OF PLANNING COMMISSION AND STAFF (FIRST READING OF ORDINANCE AND SET SECOND READING FOR SEPTEMBER 8, 1998) (i) AMENDMENT TO ZONING ORDINANCE NO. 464, CHAPTER 11, SECTION 10.03, REGARDING PARKING REQUIREMENTS FOR MEDICAL CLINICS AND HOSPITALS WITH UNFAVORABLE RECOMMENDATION OF PLANNING COMMISSION AND STAFF Action - Motion to approve consent agenda 5. PUBLIC HEARING — 6:00 P.M. (a) HOUSING PROGRAM PROVIDING FOR ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS TO FINANCE PROJECT UNDER MN STATUTES, CHAPTER 462C (EVERGREEN APARTMENTS PROJECT) Action — Motion to close hearing — Motion to reject — Motion to approve sale of housing bonds and extend lease agreement — Motion to adopt Resolution 1►I y ►! 1 1►I . . (a) CONSIDERATION OF AWARDING CONTRACT FOR 1999 SNOW REMOVAL TRUCK WITH EQUIPMENT (DEFERRED AUGUST 11, 1998) Action — Motion to reject — Motion to approve and award contract (b) CONSIDERATION OF APPROVING MEMORANDUM OF AGREE FOR ADVANCED FLOOD WARNING DEVICES FOR THE SOUTH FORK OF THE CROW RIVER (DEFERRED MARCH 24, 1998) Action — Motion to reject — Motion to approve agreement (a) CONSIDERATION OF PROPOSED CHANGES IN ORGANIZATIONAL STRUCTURE OF POLICE SERVICES DEPARTMENT Action — Motion to reject — Motion to approve (b) CONSIDERATION OF FUNDING DISCOUNT FOR ECHO PROGRAM IN HUTCHINSON Action — Motion to reject — Motion to approve and adopt Resolution 0 CITY COUNCIL AGENDA — AUGUST 25, 1998 0 (c) CONSIDERATION OF SETTING PUBLIC HEARING FOR SUBMISSION OF DTED GRANT TO PROVIDE INFRASTRUCTURE COSTS FOR HOME AT LAST PROJECT Action — Motion to reject — Motion to approve and set public hearing for September 22, 1998 at 6:00 p.m. (d) CONSIDERATION OF ADVERTISING FOR BIDS TO REPLACE ROOF ON FIRE STATION Action — Motion to reject — Motion to approve (e) :SIDERATION OF LEASE AGREEMENT WITH HUTCHINSON MEDICAL CENTER Action — Motion to reject — Motion to approve and enter into agreement (f) CONSIDERATION OF SALE OF $4,350,000 TAXABLE MEDICAL FACILITIES GROSS REVENUE BONDS, SERIES 1998A Action — Motion to reject — Motion to approve revenue bond sale and adopt Resolution (g) CONSIDERATION OF AWARDING BID FOR ADDITION AND • RENOVATIONS FOR THE HUTCHINSON MEDICAL BUILDING PROJECT Action — Motion to reject low bidder for category 1 of Bid Pack I — Motion to approve next lowest bidder, Reiner Contracting Inc., and bids for remaining categories in Bid Pack I (h) CONSIDERATION OF SALE OF $1,495,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1998 Action — Motion to reject — Motion to approve sale and adopt Resolution MISCFLLANEOUS MMUNICATIONS (a) VERIFIED CLAIMS Action - Motion to approve and authorize payment from appropriate funds 1 � 1: ►lu I ►Y is 4 • MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 11, 1998 Mayor Torgerson called the meeting to order at 5:30 p.m. Present: Mayor Marlin Torgerson, Council Members Jeff Haag, John Mlinar, Kay Peterson and Don Erickson. Also present: City Engineer John Rodeberg and City Attorney Marc A. Sebora. 2. Pastor Don Urbach gave the invocation. 3. MINUTES The minutes of July 28, 1998 and bid opening of July 28, 1998 were approved as presented. 4. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. BUILDING OFFICIAL'S REPORT — JULY1998 2. AIRPORT COMMISSION MINUTES OF JUNE 29, 1998 3. HUTCHINSON AREA HEALTH CARE BOARD MINUTES OF JUNE 16, 1998 • (b) RESOLUTIONS AND ORDINANCES 1. ORDINANCE NO. 98 -231 — AN ORDINANCE AMENDING ZONING REGULATIONS IN THE CITY OF HUTCHINSON AND THE OFFICIAL ZONING MAP (SECOND READING AND ADOPT) 2. ORDINANCE NO. 98 -232 — AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA VACATING A 20 FOOT WATERMAIN EASEMENT LOCATED IN THE NORTHERLY PORTION OF CENTURY COURT ADDITION (SECOND READING AND ADOPT) 3. ORDINANCE NO. 98 -233 — AN ORDINANCE AMENDING ZONING REGULATIONS IN THE CITY OF HUTCHINSON AND THE OFFICIAL ZONING MAP (SECOND READING AND ADOPT) (c) APPLICATIONS FOR SHORT TERM "ON SALE" NON - INTOXICATING MALT LIQUOR LICENSE: ➢ MCLEOD COUNTY AGRICULTURAL ASSOCIATION ➢ ST. ANASTASIA CATHOLIC CHURCH (d) SHORT -TERM GAMBLING LICENSE FOR ST. ANASTASIA CATHOLIC CHURCH (e) TRANSIENT MERCHANT LICENSE FOR CLOTHING CONCEPTS, INC. ON AUGUST 12, 1998 • Motion was made by Peterson, seconded by Haag, to approve the consent agenda. Motion unanimously carried. a CITY COUNCIL MINUTES — AUGUST 11, 1998 . E a113•IC :1 Dyzl ti I (a) APPLICATION FOR ISSUANCE OF ON -SALE INTOXICATING T )UOR LICENSE AND ON -SALE INTOXICATING SUNDAY LIQUOR LICF ;E TO APPLEBEE'S NEIGHBORHOOD GRILL & BAR The Mayor called the hearing to order at 6:00 p.m. and read the Notice Hearing. No one was present to be heard. Motion was made by Mlinar, seconded by Haag, to close the hearing at 6:02 p.m. Motion unanimously carried. Motion was made by Erickson, seconded by Haag, to approve and issue licenses for on -sale intoxicating liquor and Sunday liquor to Applebee's Neighborhood Grill & Bar. Motion unanimously carried. • �� lu l 1►I FT ► ; • 1 : ►I 1 Y 1 (a) PRESENTATION ON SURVEY RESULTS AND HIGH -END COSTS REGARDING MOSQUITO SPRAYING IN HUTCHINSON Amanda Compton, a Park and Recreation employee, presented a report on the phone survey results for mosquito spraying as well as some of the comments and concerns • expressed by the callers. She stated the final count was 252 yes and 57 no. It was also reported that the estimated cost to spray the entire community is 51,200.00 per application. This coverage includes 4,000 acres and covers 25 miles of roadway. A discussion of the pros and cons of mosquito spraying followed with no action taken. 91 (a) CONSIDERATION OF COPS GRANT OPPORTUNITY TO HIRE ONE ADDITIONAL POLICE PATROL OFFICER Police Chief Steve Madson reported that for the past three years the City of Hutchinson has used the COPS program to fund additional police patrol officers who were needed. The federal government has again authorized a grant award to Hutchinson Police Services for two additional officers. However, Madson was requesting approval of only one officer under the COPS grant to be effective January 1, 1999. Madson stated that August 14 is the deadline for the COPS grant application. Madson also discussed a proposed change in the organizational structure of the police department and requested it be placed on the August 25, 1998 City Council agenda. Motion was made by Mlinar, seconded by Erickson, to approve acceptance and execution of the COPS grant award for one additional police patrol officer. Motion • unanimously carried. • CITY COUNCIL MINUTES — AUGUST 11, 1998 (b) CONSIDERATION OF MENTAL HEALTH REMODELING PROJECT Motion was made by Mlinar, seconded by Haag, to approve the mental health remodeling project at Hutchinson Community Hospital and to hire the firm of KUE Construction for the amount of $239,767.00. Motion unanimously carried. (c) CONSIDERATION OF BUILDING PERMIT FEE WAIVER FOR HUTCHINSON TECHNOLOGY INC. SUBSTATION PROJECT The Hutchinson Utilities requested that the HTI substation building permit fees of $396.90 be waived. Motion was made by Erickson, seconded by Mlinar, to approve waiving the building permit fees of $396.90. Motion unanimously carried. (d) CONSIDERATION OF SETTING WORKSHOP DATES ➢ AUGUST 25, 1998 AT 4:00 P.M. — BUDGET WORKSHOP ➢ SEPTEMBER 8, 1998 AT 4:00 P.M. — WORKSHOP TO REVIEW FUTURE NEEDS OF WASTEWATER PLANT Motion was made by Mlinar, seconded by Haag, to approve the workshop dates. Motion unanimously carried. • (e) CONSIDERATION OF AWARDING CONTRACT FOR 1998 ONE TON 4x4 CAB /CHASSIS TRUCK John Olson, Assistant Public Works Director, reported that only one bid was received from Plowman's Inc. in the amount of $47,538.00 for a one ton 4x4 cab /chassis truck with dump box, snow plow, sander, and hydraulic system. It was his recommendation to accept the bid and award the contract to Plowman's Inc. Motion was made by Haag, seconded by Mlinar, to approve the bid and award the contract to Plowman's Inc. Motion unanimously carried. (f) CONSIDERATION OF AWARDING CONTRACT FOR 1999 SNOW REMOVAL TRUCK Olson presented the proposal for a 1999 snow removal truck. Since there was a question on when the truck would be available for snow removal use, it was suggested that the Finance Director review the dollar amount and put the request on the next City Council agenda. Motion was made by Mlinar, seconded by Erickson, to defer to the next Council meeting. Motion unanimously carried. MISCELLANEOUS (a) COMMUNICATIONS FROM MAYOR MARLIN TORGERSON . The Mayor introduced Marc A. Sebora who will serve as the new City Attorney for the law firm of Arnold, Anderson &Dove. CITY COUNCIL MINUTES — AUGUST 11, 1998 0 (b) COMMUNICATIONS FROM BAVARIAN HAUS REGARDING OKTC tEF ST It was reported that the Bavarian Haus did not qualify for a special on , er license from the State Alcohol Division to conduct the Oktoberfest in a it 1 ced in the City parking lot behind their building. However, if the fence wa. ttac. i to the building and the alley closed off for security purposes, the tent we 1 bek_ .le a part of the restaurant structure where the strong beer /wine license was 3ady issued. Motion was made by Haag, seconded by Mlinar to approve the sine ddress of the tent and restaurant structure and to authorize attaching the fence to .- building and closing off the alley with barricades during the Oktoberfest event. Motion unanimously carried. (c) COMMUNICATIONS FROM COUNCIL MEMBER JEFF HAAG Haag informed the Council that he would be attending a meeting regarding publicity and promotion of the City sales tax referendum issue. In order to keep the public informed, a 10 -15 minute group presentation is available. (d) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING Rodeberg commented on the bridge project and stated it should be ready for use by mid - September. He also commented on a concern regarding too many lights on Hwy. 15. • It was reported that Rodeber� would be attending a Mn/DOT workshop in Willmar on August 25 regarding funding, access management and other issues. He requested that some of the Council members also attend the meeting since it was developed for elected officials. (a) VERIFIED CLAIMS Motion was made by Haag, seconded by Peterson, to approve the claims and authorize payment from appropriate funds. Motion unanimously carried. I �4 Ell all �151 BQN 1 There being no further business, the meeting adjourned at 6:34 p.m. n • MINUTES HUTCHINSON PLANNING COMMISSION Tuesday, July 21, 1998 CALL TO ORDER 5:30 P.M. The meeting was called to order by Chairman Dean Wood at 5:30 p.m. with the following members present: Bill Amdt, Dave Westlund, Jeff Haag, Jim Haugen, Joe Drahos, Jeff Jones and Chairman Wood. Also present Bonnie Baumetz, Planning and Zoning, and Barry Anderson, City Attorney. Marc Sebora, and Richard Schiefter, City Legal Counsel, Jim Marka Director of Planning & Zoning, Mark Hansen, Building Dept., and John Rodeberg, Director of Engineering Barry Anderson introduced his business associates, Richard Schieffer, and Marc Sebora who will be advising the City on legal matters. 2. CONSENT AGENDA a) Consideration of minutes of regular meeting dated June 16, 1998. b) Consideration of lot split located on Hilk:rest Rd. (Lot 4, Blk 4, Walnut Ridge Estates) requested by Paul Betker. Mr. Westlund made a motion to approve consent agenda items. Seconded by Mr. Haag the motion carried unanimously. • 3. PUBLIC HEARINGS a) CONSIDERATION OF PRELIMINARY PLAT TO BE KNOWN AS "COUNTY FAIR MARKETPLACE" LOCATED ALONG HWY 15 S. SUBMITTED BY RYAN COMPANY U.S. Chairman Wood opened the hearing at 5:32 p.m. with the reading of publication #5194 as published in The Hutchinson Leader on Thursday. Jury 9, 1998. The request is for the purpose of considering a preliminary plat to be known as "County Fair Marketplace" located along Hwy 15 S. submitted by Ryan Company U.S. Ms. Baumetz said this property was annexed last month. Dick Brooks, Director of Retail Development for Ryan Companies, Minneapolis, explained his company represents Target Company. Target has changed their store size from 90,000 sq. ft. to 123,000 sq. ft. Finial decision hasn't been made at this time on the grocery store. John Payton, RLK, said Outiot D would be a pond. Areas to the south can be farmed until ready for development. Hwy 15 will have urban style of roadway with curb and gutter. EAW report has been prepared, and has gone through the 30-day review process. The developer would like signals at both north and south ends of the development Parking requirements are being met. Front and back setbacks are in compliance. Truck movement will be along the back of building. Because of soil condition, the developer is looking at grading the site this fall to prepare pads. John Rodeberg said MnDOT is preparing Hwy 15 to allow for center left turn lanes, and the • shoulders are being prepared to handle heavy traffic the same as the highway. John Rodeberg will work out storm sewer drainage with MnDOT and developer. John Payton said the indirect source permit requirements regarding air and noise have been met. � -A C2) Mark Hensen asked if the new configuration allows for access to the south. Mr. Payton said they are providing a roadway from the southern access. The roadway access may curve to the south as property develops. Tom Wasmoen from the Target presented a drawing of the buildings of the proposed Target store and adjoining stores. John Rodeberg said the sanitary sewer capacity has been addressed. Planning Staff supports a traffic signal at the southern access. Mr. Arndt moved to close the hearing, seconded by Mr. Drahos the hearing closed at .15 p.m. Mr. Haag made a motion to recommend approval of the request with staff recommendations and recommend public transportation construct a controlled inters action on the south entrance. Seconded by Mr. Westlund the motion carried unanimously. b) CONSIDERATION OF REZONING PROPERTY FROM R -1 TO C-4 FOR RETAIL DEVELOPMENT LOCATED ALONG HWY 15 SOUTH REQUESTED BY RYAN COMPANY U.S. Chairman Wood opened the hearing at 6:18 p.m. with the reading of publication #5195 as published in The Hutchinson Leader on Thursday, July 9, 1998. The request by Ryan Companies U.S. is for the purpose of consideration of rezoning property from R -1 to C-4 for retail development located along Hwy 15 South. Ms Baumetz explained the full property was advertised, however the land previously owned by Mr. Delmer Sturges will not be rezoned at this time, it would remain agricultural. Mr. Haugen moved to close the hearing, seconded by Mr. Westlund the hearing closed at 6:19 p.m. Mr. Haugen made a motion to approve the request with staff recommendations. • Seconded by Mr. Haag the motion passed unanimously. Bill Arndt asked if Ryan Companies and Target could set up a booth at the McLeod County fair to explain their project to the community. C) CONSIDERATION OF CONDITIONAL USE PERMIT TO MOVE A 1973 MANUFACTURED HOME TO LOT 36 IN MCDONALD'S LAKEVIEW TERRACE LOCATED IN THE FLOOD FRINGE REQUESTED BY JEAN GOLDE. Chairman Wood opened the hearing at 6:20p.m. with the reading of publication #5196 as published in The Hutchinson Leader on Thursday, July 9, 1998, the request for a conditional use permit to move a 1973 manufactured home to Lot 36 in McDonald's Lakeview Terrace located In the flood fringe requested by Jean Golde. Mark Hensen said the mobile home had been inspected and passed life safety criteria. Mr. Arndt moved to close the hearing, seconded by Mr. Haag the hearing closed at 6:20 p.m. Mr. Arndt made a motion to recommend approval of the request with staff recommendations, seconded by Mr. Jones the motion passed unanimously. d) ' CONSIDERATION OF PRELIMINARY PLAT TO BE KNOWN AS "RAVENWOOD" LOCATED SOUTH OF THE CENTURY AVE. EXTENSION SUBMITTED BY MR. ROGER DERRICK. Chairman Wood opened the hearing at 6:21 p.m. with the reading of publication #5197 as published in The Hutchinson Leader on Thursday, July 9, 1998. The request is for the purpose of consideration of a preliminary plat to be known as "Ravenwood" located south of • the Century Ave. extension submitted by Mr. Roger Derrick. Roger Derrick, Derrick Investment Co., said his company has been trying to determine the best development for this property. The last few years he has been working with senior citizen developments. The buildings he will be constructing in this development will be one level rental within the HUD guidelines, and four unit buildings that are rental and ownership. • There will be four basic land uses - First land use - 4 plexs - professionally maintained. (association maintenance) Second land use - senior cooperative (citizens over 55 years of age) Third land use - apartments Fourth land use - three -acre hobby farms in the airport A zone Temporarily, until City services are available, the developer will install sewer holding tanks, and wells. Developer will build and pave a temporary road to access the four- plexs_ Mr. Derrick would like to start marketing this fall. Mr. Derrick has talked to Mark Schnobrich, City forester, regarding landscaping. Larry Fraser mentioned that Russell Rickerman has land on west side of development that he may like to divide into lots in the future. Regarding Mr. Derrick's plan to allow horses on the hobby farms, Jeff Haag said this area isn't always going to be on the edge of the city. Dick Schieffer said look at this request as a planning issue. Other cities that allow horses are fairly large areas with stables. We should be looking at what the potential is for this entire area. Enforcement of horses by the municipality is very difficult. Mr. Derrick said he would not pursue the horse issue. He will try to market the hobby farms without horses. • Jeff Haag asked if there is any risk to the City regarding Century Ave. access, and holding tank. John Rodeberg said there is no development risk. There may be risk of property not selling for the developer. Mr. Derrick said he needs assurance from the City that Century Ave. is going to be built Mr. Rodeberg said a 10' wide trail is being planned for this area. This is a good location for high density. City does approve of this development. Mr. Derrick will show playground areas on the plat Open area requirements will be met. Open areas can be used for picnic and relaxation areas. Mr. Haag recommended Mr. Derrick consult with the park board. Mr. Westund moved to close the hearing, seconded by Mr. Jones the hearing dosed at 7:25 p.m. Mr. Westlund made a motion to recommend approval of the request with staff recommendations. Seconded by Mr. Arndt the motion carried unanimously. e) CONSIDERATION OF REZONING PROPERTY FROM R -1 TO R- 3/R -41C -2 LOCATED SOUTH OF CENTURY AVE. EXTENSION REQUESTED BY MR. ROGER DERRICK Chairman Wood opened the hearing at 7:45 p.m. with the reading of publication #5198 as published in The Hutchinson Leader on Thursday, July 9, 1998. The request is for the purpose of consideration of rezoning property from R -1 to R- 3 /R -4/C -2 located south of Century Ave. extension requested by Mr. Roger Derrick. • Mr. Amdt moved to close the hearing, seconded by Mr. Haag the hearing closed at 7:45 p.m. Mr. Haag made a motion to recommend approval of request with staff recommendations. Seconded by Mr. Arndt the motion carried unanimously. CONSIDERATION OF CONDITIONAL USE PERMIT TO PLACE 4-PLEX UNITS ON PROPOSED R -3 DISTRICT AND 24 UNIT APARTMENTS ON PROPOSED R-4 DISTRICT REQUESTED BY MR. ROGER DERRICK Chairman Wood opened the hearing at 7:46 p.m. with the reading of publication #5190 as • published in The Hutchinson Leader on Thursday, July 9, 1998, The request for a condit' - .al use permit to place 4-plex units on proposed R -3 district and 24 unit apartments on pr% =A R-4 district requested by Mr. Roger Derrick Mr. Haugen moved to close the hearing, seconded by Mr. Arndt the hearing closed : 50 p.m. Mr. Westlund made a motion to recommend approval of the request wit' :aff recommendations, seconded by Mr. Haag the motion passed unanimously. g) CONSIDERATION OF VACATION OF 20' WATERMAIN EASEMENT LOCATED THE NORTHERLY PORTION OF CENTURY COURT ADDITION REQUESTED BY Cl.. i URY COURT II LIMITED PARTNERSHIP. Chairman Wood opened the hearing at 7:50 p.m. with the reading of publication #5191 as published in The Hutchinson Leader on Thursday, July 9, 1998, The request is for consideration of vacation of 20' watermain easement located in the northerly portion of Century Court Addition. Mr. Haag moved to close the hearing, seconded by Mr. Arndt the hearing closed at 7:55 p.m. Mr. Haugen made a motion to recommend approval of the request with staff recommendations, seconded by Mr. Jones the motion passed. Chairman Dean Wood abstained from voting. 4. NEW BUSINESS 5. OLD BUSINESS 6. COMMUNICATION FROM STAFF Mr. Haag recommended an informational meeting regarding banners. Staff to check on trucks parting on the boulevard on Erie Street. This may not be in compliance with their conditional use permit 7. ADJOURNMENT There being no further business the meeting adjourned at 8:00 p.m. 0 0 MINUTES Parks, Recreation & Community Education Advisory Board June 4, 1998 Members present: Lyle Block, Mike Cannon, Dave Heidebrink, Dolf Moon, Joe Neubauer, Sonja Peterson, Loretta Pishney, Theresa Sweeney. Minutes dated May 7, 1998 were approved by Lyle Block and seconded by Loretta Pishney. OLD BUSINESS *Parkland Dedication Fees (see handouts from June & April meetings) - Compared numbers with other cities similar to Hutch. Marshal gets 5% of either land value or selling price. New Ulm gets $50 per house. New formula has a July 1" implementation date. Our numbers are still conservative compared to other communities. Council will ultimately decide. John Rodeberg, Jim Marka, and Dolf spoke with Planning staff. All agree it should happen. Motion to recommend to Council new dedication schedule made by Joe Neubauer & seconded by Mike Cannon. New Program "Get a Jump on Late Start" (see handout from May meeting) - School Board decided on late start instead of early dismissal. Also voted on by parents. There will be structured • activities available from 8:00 am - 10:15 am at an affordable rate. Transportation is needed. May look at starting a car pool list. Middle Level Activities - Charlie Munz & Dolf have been working on this and have 213 completed. Identified fall & winter activities, working on spring. Will go to School Board in June. May incorporate 6 graders into 7 -8 grade Girl's Softball. Need to minimize cost and raise numbers. Teams that could be affected include softball, football, baseball, & basketball (team sports) & could have an intramural focus. Those sports with an opportunity to move to varsity will not be affected. Capital Improvement Projects (see handout from June meeting) - $1,046,297.04 - Problem with report is no vision, it's all repair & maintenance. Will go to Council. Items mentioned: Roberts Park needs new scoreboards at a cost of $12,000. Will be wireless. Tartan Park will have a makeover. Grant was submitted through DNR. Will have improved parking, playground area, trails, and fishing area. Will hear regarding grant by September 1. The "luxury" item is a water slide that could be installed in pool area. Pipestone, Austin, Winona, & Bloomington have rehabbed their pools & added a water slide. Recreation Center will need new flooring. NEW BUSINESS MRPA Award of Excellence (see handout from June meeting) - Bandstand Project. Will be the 2' award received. I" was for I{iwanis Sliding Shelter. Dolf will present at one of the Monday night concerts in Library Square. John Arlt put a lot of work into project. Pedestrian Bridge will be next entry, submitted next year. Worked with 3M Cares group. �Z -74 (3) MINUTES PRCE Advirsory Board June 4, 1998 Page two NEW BUSINESS CONTINUED * Word of Life (see handout from June meeting) - Motion to approve by Lyle Block seconded by Mike Cannon. *Applebee's Parkland - Applebees will pay city $4,000, which will be held in escrow until Denver Ave is completed. City wants land there for sidewalk & trail to limit access onto Hwy 15. If we get this land, their $4,000 will be returned. Eventually stop lights will be put in at Airport Rd & 15, Denver Ave & 15, & Century Ave & 15. Will need to make a 2 nd river crossing for sanitary & sewer. Area past Wall Mart will be annexed, as well as North High Drive. Motion to approve by Mike Cannon, seconded by Joe Neubauer. Mighty Ducks Grant - Sent in last Friday. Redwood Falls is our biggest competitor in our legislative district. Bob Ness wrote a letter of support to the CEO of Amateur Sports. Steve Dille and AI Koglin also wrote letters. Had Boonestro & Associates do the technical portion of grant for $3,000. Council will get reports. Will bring any extra to future meeting. July Tour - No meeting. Any one interested meet Dolf at City Center, July 2" at 5:15 pm for a tour. Will look at AFS Park. New paver block put down around AFS student plaques. Will also see new ball field at Northwoods Park. BOARD MEMBER ITEMS Swimming Lessons - Swimming lessons begin Monday, June 8 at HMS. Students have already been using it for physical education classes. Feasibility Study - Hired consultant to do feasibility study for proposed Convention Center, Senior Center, & Ice Rink. Will study operational costs, economic impact to community, staffing pattern, & construction cost. Sales Tax - vote for 1 /2 cent sales tax would be held with the September primary. 0 E 0 RESOLUTION NO. i RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC CONTROL DEVICES WHEREAS, the Director of Engineering and the Police Chief agree that the following areas have traffic control concerns which warrant traffic control devices, and; WHEREAS, the Hutchinson City Council has the authority to establish locations as points where traffic control devices shall be erected, pursuant to Section 7.04, Subdivision 1 of the Hutchinson City Code; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON: i That the Council hereby establishes that a traffic control device known as a "No Parldng" sign shall be erected at the following location: On the south side of Century Avenue, 100 feet either side of the west Ridgewater College entrance j ced this 25th day of August, 1998 by the City Council of Hutchinson, Minnesota. Mayor - Marlin Torgerson City Administrator - Gary D. Plotz August 11, 1998 Mr. John Rodeberg City Engineer City Center 111 Hassan St. SE Hutchinson MN 5 53 50 Dear Mr. Rodeberg Please accept this formal request to extend no parking to 100 feet from both east and west curb cuts alongside college property on Century Ave. We believe the current parking situation to be a hazard. Cars parked along Century Avenue are creating problems with sight lines as vehicles exit the college. We have had several complaints of • near accidents over the summer months. Thank you, Elizabeth Hepola Director of Planning and Programming Ridgewater College RI DGEWA Willmar Campus F Hutchinson Campus Box 1097,2101 15th Ave. MN COLLEGE 2 Cen[ury Ave. 5E Wi 56201 Hutchinson, 55350 ;2& 33'= F23& 35�5114 1.600-722- 1151vjT7Y WILLMAR HUTCHINSON -3 1 X4901 s FAX 320- 231 -66 02 August 11, 1998 Mr. John Rodeberg City Engineer City Center 111 Hassan St. SE Hutchinson MN 5 53 50 Dear Mr. Rodeberg Please accept this formal request to extend no parking to 100 feet from both east and west curb cuts alongside college property on Century Ave. We believe the current parking situation to be a hazard. Cars parked along Century Avenue are creating problems with sight lines as vehicles exit the college. We have had several complaints of • near accidents over the summer months. Thank you, Elizabeth Hepola Director of Planning and Programming Ridgewater College • RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT Resolution No. WHEREAS, the City of Hutchinson Police Services, the McLeod County Sheriffs Department, the Glencoe Police Department and Winsted Police Department are continuously seeking ways to improve cooperation in law enforcement services in McLeod County; AND WHEREAS, the Minnesota Department of Public Safety through its' "SAFE AND SOBER" Program has specific grant monies available; AND WHEREAS, the City of Hutchinson Police Services, the McLeod County Sheriffs Department, the Glencoe Police Department and Winsted Police Department have developed a cooperative enforcement program which meets the criteria of the grant program; AND WHEREAS, the McLeod County Board of Commissioners has authorized the City of Hutchinson to serve as the fiscal agent; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: • 1. That the City Council authorized the Hutchinson Police Services, in cooperation with the McLeod County Sheriffs Department, the Glencoe Police Department and the Winsted Police Department, enter into a grant with the Minnesota Department of Public Safety, Office of Traffic Safety, for the project titled "Safe and Sober Communities ", during the period of October 1, 1998, through September 30, 1999, in the amount of $32,000.00 (federal share). 2. That the City Council authorizes the Director of Police /Emergency Management Services to execute such agreement as are necessary to implement the project on behalf of the City of Hutchinson. Adopted by the City Council this 25th day of August, 1998. Mayor L City Administrator � (�) 0 1; 1 V O G I R 1 y r 16 W l�. r. i RESOLUTION DESIGNATING THE LOCATION OF THE POLLING PLACE FOR ALL PRECINCTS AND APPOINTING JUDGES FOR THE 1998, SPECIAL CITY ELECTION AND PRIMARY AND GENERAL STATE ELECTIONS WHEREAS, Chapter 204B, Section 204B.16, Subd. 1 and Section 204B.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 for the Special City and State Primary Election (September 15, 1998) and the State General (November 3, 1998) Elections, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. That the polling place to be used during the 1998 Elections for all precincts will be in the Recreation Center located at 900 Harrington Street S.W., Hutchinson MN. • 2. That the Election Judges are hereby appointed in accordance with the attached list. Adopted by the City Council this 25th day of August, 1998. Marlin D. Torgerson Mayor ATTEST: Gary D. Plotz City Administrator ELECTION JUDGES CITY OF HUTCHINSON SPECIAL CITY, STATE PRIMARY AND GENERAL ELECTIONS 1998 • PRECINCT 1 HARRIET SCHMIDT 587 -5466 45 SHERWOOD CR ROXANNE JENSEN 587 -8589 1239 BRADFORD SE ANNETTE KOEHLER 587 -6484 55 ORCHARD AVE ST' CLARA TEWS 537 -5235 714 JEFFERSON ST ` c JUNE WICK 587 -6248 535 MAIN ST S ETHEL LARSON 587 -8193 115 JEFFERSON ST SE JO BLACK 587 -6530 15 CENTURY AVE SE PRECINCT 2 RUTH 14AGEN 587 -8109 554 CLARK ST SEDONA MILLER 587 -2205 714 SHADY RIDGE DORIS DAGGETT 587 -2382 978 ROLLING GREENS LN EVELYN PROCHNOW 587 -2723 10 NORTH GLEN DIANNE MARQUARDT 587 -8199 234 - 4TH AVE NW DEETTA MCLAIN 587 -6069 755 SPRUCE ST JAN KLABUNDE 587 -3117 SCHOOL RD N • PRECINCT 3 PEARL SEALE 587 -3083 569 MILLER DARLEEN KNIGGE 587-0961 674 HARRINGTON PHYLLIS WESELOH 587 -6318 1109 LEWIS AVE HARRIET WIXCEY 587 -2353 360 W. PISHNEY KARLA CROSS 587 -8097 1000 GOEBEL ST LARRY LADD 587 -3119 965 OSGOOD AVE SW VIRGINIA BECK 587 -2227 570 MERRILL ST SW REGISTRATION TABLE DOLORES BRUNNER 587 -7258 968 HAYDEN AVE BILL ARNDT 587 -6882 1660 SOUTH GRADE RD. MARGARET OLSON 587 -6039 640 TYLER ST SW • • RESOLUTION NO. RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ASSESSMENT ROLL NO. 5023 LETTING NO. 8/PROJECT NO. 98 -17 WHEREAS, cost has been determined for the improvement of Island View Heights 3rd Addition extension of Prairie View Drive SW, Prairie View Circle SW and West Shore Drive SW and construction of Storm Sewer, Sanitary Sewer and Services, Waterrnain and Services, Grading, Gravel Base, Curb and Gutter, Bituminous Base, and appurtenances; and the bid price for such improvement is $ and the expenses incurred or to be incurred in the making of such improvement amount to $ so that the total cost of the improvement will be NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The portion of the cost of such improvement to be paid by the City is hereby declared to be $ and the portion of the cost to be assessed against benefited property owners is declared to be $ 2. Assessments shall be payable in equal annual installments extending over a period of 10 • years, the first of the installments to be payable on or before the first Monday in January, 1999, and shall bear interest at the rate of 10 percent (plus or minus) per annum from the date of the adoption of the assessment resolution. 3. The City Administrator, with the assistance of the Director of Engineering, shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and he shall file a copy of such proposed assessment in his office for public inspection. 4. The City Administrator shall, upon the completion of such proposed assessment, notify the Council thereof. Adopted by the Council this 25th day of August, 1998. Mayor • City Administrator • • COWIXED BY. C. RICE ASSESSMENT ROLL NO. 5073 _ - LETTING NO.6/PROJECT NO. W17 Wand Vie. HdBlta Thied Ad&dm By Cousuvalon of Storm Se.e, Sankwy Se.e k Sed iaeecmdn 3, Se7rke, - _ Gredivb Gmd Bae Bhumoow 8m AppvOrpsas _ _ NAME 6c ADDRESS LEGAL DESCRIPTION FROM OF PROPERTY OVNFR ADDITION OR SUBDIVISION FEET xmDENITAL STREET- COST PER FROM FOOT VATER SERVICE- COST PER EACH SANI SE WER SERVICE - COST PER EACH .. . _ BOND rjm _D'IIFJIEST PLATE _ iATER SAN. SEi. DEFERRED TOTALAC SERVICE DRIVEVAY CREDIT ASSESSMENT ASSESSMI COYMFD BY: C. RICE _$0.00 C?BCay^ BY. 1 RODEBRG NUMBER OF YFAIIS, 10 ADOPTFA _ O ACCOUNT C PID NO. N COUNTY PID NO. - SOA _ $0.00 -- 1993 STREET Dl 10.116-70 Scenic Hom 1c - - - SERVICE - _ P O B. 1176 U. M 6.aoA. MN 553-15 Nand Ynne Hei36u T6vd Addium moo $0A0 $100 70170 $0.00 50.00 $0110 La. & Blo i 1 -- P O Bm 1176 _ 2]. • MN 55345 md Vieehu Tkird Additim lal e. li 10.00 $0.00 10.00 _R11D 50.00 1017 moo 00 m 10.11670. Scenic Hama Lc - - - -_ _ P O Boa 1176 La 7,Blackl -- - _ 21. mka MN 5534 Idaed Vie.Heihe Thud Adfii $O.OD $0.00 $ODD _ SOHO $am $0.00 $O.OD _ _ ..- DI 1 0-016.70 Suek Hama Lc" Io / Black 1 La 5, Blank 1 Id.ed Y¢. F4iL6o Tkicd Addniaa $000 -- _SOm_ 10.00 $_0.011 27. 1411670 L. PO&. 1176 Mioaaonka MN 55345 P O Boa 1176 Minenoeka ►/N SSHS - - 30-00 50.00 f011D $ 0.00 50.00 __f0.00 _ 10.00 f0D0 _ 05 $OHO 06 1011670 Suck Home - P O B. 1176 27. IfinnewW. MN 5571S Wavd Y,e. HMbu Thvd Add,. $0.00 SODO 10 OD $ODO $0.00 $100 _SODO 07 _ fODD 1011670 scenic Home Lc POBm 1176 _`_ UN 755345 sat 7, ALAI Weed Yv. 77ird Addition XOD ' $0.00 W00 $Q0D _10170 H. 10.00 1011670 sua k7Lma - PO Boa 1176 Ial Blacks _ 21. ...L• MN 55 Nord Y, Thud Add.. $0.00 70170 $0 170 DODO f0A0 $O.OD $0.00 1011670 Somic Homo Inc P 0 B 1176 La 9, Block 10 -_ - - _. .. 11 D. e° onk 7Ri SS S..k Honor sec . P O Bo< 1176 Mmeaooka MN SSHS S cemc Ho ne Ivc 1176 Wood Vie. Hngh, aTkied Additim $0.00 70170 $0.00 50170 50-00 $0,00 $0.00 1011670 ---- H. 10116]0 _.. Lu 10, Blob 1 Weed Yrc. Here Thud Addm'an Lu 1l Black Wood Yn+ Thud Ad&nm _ -_ -_ $O.OD 117170 50170 $ODO - 117.00 70170 10.017 >Om - P0Boa D. _ - MN 55345 -_ 10.00 10.00 SOX $ODO $0.00 10.00 0 0 CO1OdFD BY. G RICE - _ _ .. ASSESSMENT ROLL NO. 5023 LETTING NO. UPROJECT NO. 9$-17 Wand View Hdot, TkW Adifitlew B7 Comtrudioo of Stvo Sews, Sasher7 Sevin Ik Svwim, Wetereade Y So, _ G Bat, Mta ®oom Ea4 -d_ A�etm 3ME It ADDRESS LE DESCRIPTION FROM -: F, .: - OWNER ADDITION OR SUBDIVISION FEET 5400 RP SIDENIIAL STREET • COST PER FRO FOOT WATER SERVICE -COST PER EACH SAMTARY SE VER SER VICE -C OST P ER EA F OND MM ( MEREST RATE WATT SAN. SEW. DEFERRED AL ACTIVE SERVICE SERVICE DRIVEWAY CREDIT ASSEWffiN!T ASSESSMENT COkuUT®IFY.. CRICE $6D CHECKED RYr 1. RODEBERG_ on NII�I O YEARS, 10 _ . _. ADOPrM 19/257°0 ACCOUNT CT PIU n:,, NO. COUNTY PID NO. _ 1991_ STREET ___.. MOD -_ - -_ SOM PO Ben 1176 La 12Nock1 13 23. W -m onka M N 5534 Wand View Hcghta Third Addi. __- _ _ -- MOD _ f000 _ SD AO 1000 _ __$DM 10.11630 Scenic Homeal PO B. 1176 _ 23. _ Minnetonka MN 55345 _ Wnd Vrw Hcg6n'Ifiud Addwa_ _ _ 510(3 10110 SO.W TORO TORO SOHO $D.00 14 1011630 S cenic Hama lac P O Ren 1176 lat 14, 1 - -- - - - - -- - 23 Mnnam6 MAN 55345_ Wa nd V" M Was Third Addrioo _1000 $0.00 1100 SOOO SD.W 10.W SO.W _ - - -- -� - _ - - 1S ' —__ I6 10.11630 Scenic H. lx -�- SOW - f0.00 _1000 - 1O.W MOD i - .. - -__ -- 23. POB 1 176 __. -___ -... _-- __ -__ -La Minanonka WIN 55345 DlBkckl Wand Y: Huhn Third Adfitwo __. la lk Mock 1 Wand YwwlleW.Third A _ ._.._ 1000 _ 1000 50.0D 1O.W 10.10 10- 116-3 _ Socok Home l er. P O bent L76 _ MN 55345 _ - _ _. SO.W SIOD _._.. SO.W V 10.11670 Sces ESommix. POBen 196 Lmt7Black1 - 23. Minoctoolm M 55345 W and V'ww H Third AA&d MO D SOW mm 10.W Wm W.00 8100 -- -_ 1110-11640 Scenic Homo lo Lsl BkaI PO Bat 1176 23. h inoetonka MN 5534 Weed Ytew l-1u16s Third Addmm 5001 50.(10 1000 5001 (000 $0.00 S000 [20 10 11630 Sce Hamm loc. Lct19 Block PO Boa 1176 _ 23. Minn toake MN 55345 Wend View Third Addition Wm $100 1001 5000 1001 f0.00 $0.00 - 1011630 Scenic H - s lur. ._ - ... - - _ _.._ 21 P O Ron 1176 Lnt Bbck l 11.W -- -- 10,00 - fO.W Ninmanka MN SSHS_ _ St Hamm Inc. P O Ben 1176 Wand Yuw flegka'1116d Addition Owltt A ..- _ $100 1QW .... _-_ 5000 SOHO ME SO.W 10W 101100 _ 2)_ Mioenoeka kQN SSHS ._ _ _ - Iktyh_n_TLud Adduon IrLed Vmw - 11. W - 11.W _ . 90.00 1000 TOTA AC ME ASSESSMENTS ERR TOTAL DEFERRED ASSESSMENTS _- - ERR _ �._ TOTAL ASSESSsIFNI ROLL N0 .50D _ - _ .. RESOLUTION NO. • RESOLUTION WAIVING HEARING ON PROPOSED ASSESSMENT ASSESSMENT ROLL NO. 5023 LETTING NO. &PROJECT NO. 98-17 • WHEREAS, by a resolution passed by the Council on the 25th day of August, 1998, the Director of Engineering was directed to prepare a proposed assessment of the cost of improving Island View Heights 3rd Addition extension of Prairie View Drive SW, Prairie View Circle SW and West Shore Drive SW and construction of Storm Sewer, Sanitary Sewer and Services, Watermain and Services, Grading, Gravel Base, Curb and Gutter, Bituminous Base, and appurtenances. WHEREAS, the Director of Engineering has notified the Council that such proposed assessment has been completed and filed in his office for public inspection; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The hearing on the assessments is hereby waived, as the property owners have waived their rights to a hearing. Adopted by the Council this 25th day of August, 1998. Mayor • City Administrator 4 -e (q) RESOLUTION NO. RESOLUTION ADOPTING ASSESSMENT • ASSESSMENT ROLL NO. 5023 LETTING NO.81PROJECT NO. 98-17 WHEREAS, pursuant to resolution and waiver of hearing the Council has met and reviewed 'he proposed assessment for improvement of Island View Heights 3rd Addition extension of Prairie View ie SW, Prairie Drew Circle SW and West Shore Drive SW and construction of Storm Sewer, Sanitary Sewe nd Services, Watermain and Services, Grading, Gravel Base, Curb and Gutter, Bituminous Base, and appurtenances. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted, and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable in equal annual installments extending over a period often (10) years, the first of the installments to be payable on or before the first Monday in January, 1999, and shall bear interest at the rate of percent per annum as set down by the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment from November 1, 1998, until the 31st day of December, 1999. To each subsequent installment when due, shall be added interest for one year on all unpaid installments. 3. The owner of any property so assessed may, at any time prior to certification of the assessment • to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City Treasurer, except that no interest shall be charged if the entire assessment is paid by the 15th day of November, 1998; and he may, at any time thereafter, pay to the City Treasurer the entire amount of the assessment remaining unpaid, with interest accrued to the 31st day of December, of the year in which such payment is made. Such payment must be made before November 15, or interest will be charged through December 31, of the next succeeding year. 4. The Administrator shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County, and such assessment shall be collected and paid over in the same manner as other municipal taxes. Adopted by the Council this 25th day of August, 1998. Mayor City Administrator 4-/'�C //) • ARNOLD, ANDERSON & DOVE PROFZ5310NAL LIMITED LIABILITY PARTNERSHIP DAVID 8. ARNOLD' STEVEN A. ANDERSON G. BARRY ANDERSON' LAURA K. FRETLAND PAUL D. DOVE JANE VAN VALKENSURG RICHARD G. McGEE CATHRYN D. REHER WALTER P. MICHELS. III JAMES UTLEY auo ADMITTED IN Tina AND NEW TORK Mr. Gary D. Plotz Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350 iospital Board Ordinance Our File No. 3188 -87031 (320) 587 -7575 FAX (3201 587 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON August 18, 1998 AUG 1 0 1998 Cm 40 ; L; a ASON OF COUNSEL ARTHUR L. DOTEN 5661 CEDAR LAKE ROAD MINNEAPOLIS. MINNESOTA 55416 (612) 545.9000 FAX (612) 545.1763 501 SOUTH FOURTH STREET PRINCETON. MINNESOTA 55371 (612) 389.2214 FAX (61 2) 389 -5506 Dear Gary: • I am enclosing herewith for City Council action at the second meeting in August two proposed resolutions. The first resolution formally abolishes the Nursing Home Board. As you know, the Nursing Home Board's functions were consolidated with the Hospital Board some years ago but for some reason no action was taken to delete this Board. This Ordinance recognizes reality and abolishes the Nursing Home Board. The second Ordinance makes a number of housekeeping changes to the existing Hospital and Nursing Jme Board Ordinance. Previously, as you know, the City of Hutchinson had a relationship with LifeSpan which is one of the predecessor organizations to Allina. The Ordinance which recognized this relationship contained many detailed review provisions and was a very complicated, cumbersome way of doing business. The Board now has entered into a management contract with Allina, which does not involve any of the oversight or other requirements of the prior arrangement and accordingly, the City's Ordinance should be amended to reflect these changes. I do want to direct your attention to the increase in authority granted to the Hospital Board on capital items to $25,000.00. This reflects a )dsting City policy and apparently the Ordinance was not changed some years ago when the policy was changed. U Although it does not need to be included in the Council packet, I am passing along the revised Code provisions which will be distributed to all of the parties having copies of the Hutchinson City Code. ATTORNEYS AT LAW 101 PARK PLACE HUTCHINSON, MINNESOTA 55350 -2563 'CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION Mr. Gary Plotz August 18, 1998 page 2 The prior City Attorney usually recodified the Ordinance once a year which at least creates the possibility that someone might accidentally refer to an old Ordinance. I am going to attempt to recodify each section of the City Code Book at the time each Ordinance is adopted to eliminate this potential concern. Incidentally, you will notice by reviev ig this section that because the new Hospital and Nursing Home Board Ordinance is substantially shorter than the existing Code provision and because the Nursing Home Board has been deleted, pagination of the Code Book is affected. This is not a major issue but it is one of the reasons why recodification should be a project the Council considers in 1999 to make the Code Book more user friendly. In order to save time I have also sent a draft of these documents to Phil Graves for his review and it is possible that some minor changes may result from my discussions with him. I will advise of any such changes. Sincerely, ARNOLD, ANDERSON & DOVE, PLLP Marc A. Sebora MASfjm enc. 0 • • ORDINANCE NO, 98- 234 2 SERIES PUBLICATION NO. AN ORDINANCE DELETING SECTION 2.57 OF THE HUTCHINSON CITY CODE ENTITLED "NURSING HOME BOARD" AND ADOPTING BY REFERENCE, CITY CODE, CHAPTER 1 AND SECTION 2.99, WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS. THE CITY OF HUTCHINSON ORDAINS: Section 1. City Code, Sec. 2.57, entitled "Nursing Home Board" is hereby deleted. Section 2. City Code Chapter I entitled "General Provisions and Definitions Applicable to the Entire City Code Including Penalty for Violation' and Section 2.99 entitled "Violation a Misdemeanor" are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Section 3. This ordinance shall take effect upon its adoption and publication. Adopted by the City Council this day of August, 1998. • n �J Mayor Attest: City Administrator Published in the Hutchinson Leader on: 1 1998. First reading: Second reading: ;� -9(5) REVISED COPY • ORDINANCE NO. % - 2" SERIE PUBLICATION NO, AN ORDINANCE AMENDING SECTION 2.58 OF THE HUTCHINSON CITY CODE ENTITLED "HOSPITAL AND NURSING HOME BOARD" BY DELETING CERTAIN LANGUAGE THERETO AND ADOPTING BY REFERENCE, CITY CODE CHAPTER 1 AND SECTION 2.99, WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS. THE CITY OF HUTCHINSON ORDAINS: Section 1. City Code, Sec. 2.58, entitled "Hospital and Nursing Home Board" is hereby amended as follows: Subd. 1. Establishment and Composition. A Hospital and Nursing Home Board (the (`Board ") is hereby established. The Board shall be composed of seven members, one of whom shall be the Chief of the medical staff of the Hospital and one of whom shall be a member of the City Council appointed annually. The medical staff representative shall serve a two year term. The remaining five members of the Board (the "Elected Directors ") shall each serve for a term of four years with the terms of each such elected directors to begin and expire as follows: one director whose term shall expire of December 31, 1995, two directors whose terms shall expire on December 31, • 1997 and two directors whose terms shall expire on December 31, 1998. At all times, a majority of the directors shall be residents and qualified voters of the City. Prior to the expiration of the term of an Elected Director, his or her successor shall be nominated by the Mayor with the consent of the City Council. The nomination shall be sabinitted to the Board of Directors of hifeSpan (Th "LifeSpan Boai&) fbi election. ff the bif6pan Bomd faifs to elect SUCh nUinince, then the Mayo,, with the consent of the council, shall piomptly subLnit neW L1U1niLMtiV11b W the LifeSpan Bomd; as tire ffist; second and thitd 110HIhIMS, then the iMaym, voith the consent Vf tile City eUtnLcii, inay elect the sacceno, to the Elected Diiectot MiuM term is then expiring piovi&d that the Hospital' vyltich me directly or indirectly eiectaH7ifte-f� Subd. 2. Power and Duties. Subject to the provisions of Subdivision 5, the Board shall have full and exclusive control and management of any hospital and/or nursing home owned by the City, and all hospital or nursing home grounds and appurtenances thereto and all apparatus, equipment and material of every nature used in the operation of said hospital and/or nursing home.. The Board shall adopt all necessary rules and regulations for their own guidance and • for the proper management and operation of said hospital and nursing home and for the admission of patients and/or residents thereto. The Board shall approve a budget which includes the fees and shall be the duty of the Hospital Board to see that all fees and charges becoming due to said hospital are properly collected. The Hospital Board may contract and purchase all necessary equipment, apparatus and supplies; provided, however, that any single capital item of purchase of $-1-- 906. $25. 000.00 or more shall first be approved by the Council. • 1 C 1 1 Ot her E mp l o y ees . 1 the Hospital Board shall annually select and a:-aint an approval of the LifeSpan Board ex per i enced Hosp A dm i n i stra t or -_. serve as th e Chi E xecut i ve off and t o be d executive representative in the management of the Hospital and Nursing Home. The HoE,-!ud Board 13 have 1 • • . 1 . I :Y • 11 1 1 I - - 1 n • •n : ••.I . e ri W of 11 . . 1. 1 : I 1. 1 .1 . 1 .' .• li.!1 Il .! 1 1 :). yA f ' !! :! a!r • '� 1 ti!I ./. ! • .n ' n 1 1 1 h ra : • .r :rI • • • • • u . • 1 : • r • nI . • IN I 1 T.0 LWMIJ .nR • L • • • n 11 .1 • • • 11 • •11 .rl' • 11 :1 I RI .1• •'• 1 1 • 1 1 M . 1 � 11 I u. 11 •9 L1 :• val • • ul .• 1 1 ••• 1 :w • L•1 •• 1�••.1 :•.r 11 1 .0 ••nll 1 • 1 _u rl ��1. v.w •. .•• • • •• • • 11.1 1 ! 1 •.I I • \ .1 1 r I I • • . .I • • • 11 1 1 • • 1 M . • • • 1 1 • 11:\ 1� •1 •• 1 II • 1111 r:rR •I. 1111.1.. 1• 11 1 � • :11 • • • • • • :1 •1 1 • 1 •.1 • \ .1 I r, r • 1.11 \ I 11 �.1 1 • 11 . 11 \ 1 1 :1 \ • • IKVJMNILL • ••.1 • 11 11.1 I 1 u ll� N . • 11•.M 1 r 1• • .�1 . I• • • 1'.1 • • 1 • • �• • •11111. 1 • 1 1 1 • 1 Illlr•1 1 11 Ir•1 • 1 • 11 R' • • 1 1 1 • 1 Subd. 4. Funds, Accounting and Payment of Accounts. 0 A All earnings of the Hospital together with all contributions and other funds procured for the maintenance and improvement of the Hospital shall be turned over to the Hospital fund except as otherwise directed by the Council. Disbursements from this fiand shall be made only by check signed by the President and Secretary or, if the disbursement is made in payment of principal on bonds or interest on bonds issued for Hospital purposes, pursuant to an order approved by a majority of the members of the Council. B. The Hospital Board shall keep an accurate record of all monies received and disbursed from the hospital fund and of all outstanding credits and liabilities of the Hospital. The fiscal year of the Hospital shall commence on the first day of April each year. The books, accounts, and funds of the Hospital shall be audited in the same manner as all other funds of the City. The Hospital Board shall render to the Council, a quarterly operating statement as of the first day of July, October, January and April. RON • rr 5. Corporate A. The Hospital Board an affiliate of • • . n which acting fly r rcn i • .r • r:n r. • • r • •• r y .r • • r r • r • yr r v • r • v to elect membe, a of . • • k. 6 • • • • • . • • r Subd. 6. Name. The nursing home shall continue to retain and use the name of "Burns Manor" and no change in the name shall occur without the consent of the City Council. Section 2. City Code Chapter 1 entitled "General Provisions and Definitions Applicable to the Entire City Code Including Penalty for Violation' and Section 2.99 entitled "Violation a Misdemeanor" are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Section 3. This ordinance shall take effect upon its adoption and publication. Adopted by the City Council this day of August, 1998. Mayor • Attest: City Administrator Published in the Hutchinson Leader on:_ First reading: Second reading: .•; i MEMO TO: Mayor Marlin Torgerson and the Hutchinson City Council FROM: Randy DeVries SUBJECT: Out of State Travel for Dick Nagy DATE: August 20, 1998 I am requesting out of state travel for Dick Nagy to attend the Regional Meetings of Section of Officers of the American Water Works Association, October 23 and 24, 1998, in Schaumburg, Illinois. Travel will be from October 22 through the 25 1998. All expenses will be paid by A. W.W.A.. I recommend approval of this travel. RDV /es 0 —d,—, American Water Works Association Dedicated to Safe Drinking Wafer August 4, 1998 TO: Region III Section Leaders Illinois Ohio Indiana OWWA, A Section of AWWA Michigan Wisconsin Minnesota RE: Regional Meeting of Section Officers Schaumburg, Illinois - October 23-24, 1998 Regional Meetings of Section Officers are the most important tool for gaining updated information on the American Water Works Association and AWWA sections. As a section leader, you will not want to miss this opportunity to meet with a national representative, AWWA staff, and other section leaders. The Illinois Section is hosting a Regional Meeting of Section Officers in Schaumburg, Illinois on October 23-24, 1998 at the Chicago Marriott- Schaumburg. Room rates will be $89 per night, single or double. The meeting will start at 10:00 a.m. on the first day and conclude at noon the following day. Here are some facts about the meeting so you can start planning now: Regional meetings were created to provide important and useful Information to section officers. All section officers and other leaders (committee chairs, etc.) are invited to attend. Due to the Importance of this meeting, we strongly recommend each section send as many representatives as possible. 0 0 The meeting is designed as a forum for the exchange of information about AWWA activities and priorities at the Association and section levels. It is an excellent opportunity to discuss the role of your section and AWWA in achieving all the goals of its membership. A primary mutual benefit is the sharing of experiences and discussing how we can effectively work together. The meeting agenda allows for interaction between attendees via roundrobin discussion groups and break -out sessions. 4 1 (303) 794.7711 Fax (303) 794 -8915 6666 West QJncy Avenue Deriver, CO 80235 '//'j- ' • Hutchinson City Center 111 Hacasu Strset SE Hutchln , 6IN 55350.2522 320-587-5151/F" 320.234 -4240 5 MEMORANDUM DATE: August 19, 1998 C � J • TO: Mayor and City Council FROM: Hutchinson Planning Commission SUBJECT: CONSIDERATION OF A LOT SPLIT REQUESTED BY DAVID BUTLER FOR TWIN HOMES ON CHEYENNE STREET IN PLAZA HEIGHTS. The Planning Commission recommends approval of the request. cc: David Butler Primed on recycled paper - 4 -15 • �U UILDIN� "T SURVEY FOR MEADE AND BUTLER ENTERPRISES )T 3, BLOCK 6, PLAi-,, "HTS N PROPOSED TOP OF FOUNDATION • 10712 PROPOSED GARAGE FLOOR • 1070.5 PROPOSED BASEMENT FLOOR • 1063.5 W W W a.e X 4" a; "` I 60 Boo le In foot BENCHMARK Pond pot on top of curb never aaathw of caner of Lot 3, Block S. ENrotlon • 1067.33 • Donates ton monaornt found 0 Denotes Iron trontenant set X Denotes existing alwatlon ( ) Donates proposed sNvaion I heresy aertlfy that this Survey, Plea or Report was pr nod by m or under dry direct espertUlso MItbat I do* dill licensed Lend Surveyor under the Ian of the State of Minnesota. / JNroy [' er.t r a" ad _ Ki — — • r Lie. 1416.2V3ZS to X 57.5 / (70.6) I u O N X v a t4 PROPOSED HOUS R E e v I13d a.0 aA ___________ fW N ___ --- _40.37 I IM63 ` 1 Oaape PROPOSED III's HOUSE ` er 1_y wo a • 49 er.iX 0.6) 04A (7 inviose na sore wmmas y� to to L __— �y — ___7 —____ _— BIA A no • 0a Ere Nee"W'48 E 188.01 t . t t due deA ou "A X X ' X era DESCRIPTION NORTHERLY PARCEL DESCRIPTION SOUTHERLY PARCEL X 4" a; "` I 60 Boo le In foot BENCHMARK Pond pot on top of curb never aaathw of caner of Lot 3, Block S. ENrotlon • 1067.33 • Donates ton monaornt found 0 Denotes Iron trontenant set X Denotes existing alwatlon ( ) Donates proposed sNvaion I heresy aertlfy that this Survey, Plea or Report was pr nod by m or under dry direct espertUlso MItbat I do* dill licensed Lend Surveyor under the Ian of the State of Minnesota. / JNroy [' Assecb Date: Lie. 1416.2V3ZS W z z W W 2 U X $14 I IIIA X W GIA ene The North 47.90 feet. as maanred along the out Lot 3. Died & PLAZA HEIGHTS. accord" to the and asst Shes, of Lot 3. Block 6. PLAZA HEIGHTS, recorded plat tb~. •shpt the NWM 47.90 fast, aet:erding to the recorded plat thereof. as taawwed along the east and west Rws of sold Lot A • Hutchinson City Center M 111 Hnssan Street SE Hutchlason, MN 55350.2522 320.587- 515VFex 320.2344240 MEMORANDUM • DATE: August 19, 1998 TO: Hutchinson City Council FROM: Hutchinson Planning Commission SUBJECT: CONSIDERATION OF REQUEST FOR CONDITIONAL USE PERMIT BY DAVID EVENSON TO REMOVE AN EXISTING GARAGE AND REPLACE WITH 30' X 24' GARAGE 3' FROM THE PROPERTY LINE LOCATED AT 518 JUERGENS ROAD SW.. Pursuant to Section 6.07, of Zoning Ordinance No. 464, the Hutchinson Planning Commission is hereby submitting its findings of fact and recommendation with respect to the aforementioned request for a conditional use permit. HISTORY: On July 17, 1998, David Evenson submitted an application for a conditional use permit to remove an existing garage and replace with 30' x 24' garage 3' from the side property line located at 518 Juergens Road SW. FINDINGS OF FACT: The required application was submitted and the appropriate fee paid. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on Thursday, August 6, 1998. The proposal is in conformance with the requirements of a conditional use permit. RECOMMENDATION: DENIAL APPROVAL X with staff recommendations and the following terms and conditions. UNANIMOUS X CONSENSUS SPLIT CONDITIONS: O NSIDERATIONS/DIRECI'I V ES The structure will be placed at least 6' off the rear property line. cc: David Everson Respectfully submitted, Dean Wood, Chairman Hutchinson Planning Commission • Pnnted m recycled paper - CERTIFICATE OF SURVEY FOR DAVID EVENSON LOT S, BLOCK 2, JUUL'S OAK PARK SUBDMSION OF LOT 72 LYNN ADDITION N 1 \uaeh Q uality that this survey. Plea or Misselot ace, proposes ,"WiSeQ M W be lyr m at Q Italy un l leamsed LW gtvaayua aathr the leas at the state at Nlttaaeaee. M AaaQee aQlas P lie. Me. ZV3Z`J scal feat • paeans has taQeletafa }etrld JUERGENS ROAD O pQaetee Irce ttwteeaem set � �emr- t * x10 -jz° 17 7o `° 1 r 17 1,3 I rS ytaF G>nOsed Go,a J y "A - S" 18 2 Was J 0 • � —F 1:17f.Y /]Il (♦ [11►�►[ /a • RESOLUTION GRANTING APPROVAL OF A CONDITIONAL USE PERMIT UNDER SECTION 8.05 OF ZONING ORDINANCE NO. 464 REQUESTED BY DAVID EVENSON TO REMOVE EXISTING GARAGE AND REPLACE WITH 30'X 24' GARAGE Y FROM PROPERTY LINE LOCATED AT 518 JUERGENS ROAD SW. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MN: FINDINGS Mr. David Evenson, has made application to the City Council for a Conditional Use Permit under Section 8.05 of Zoning Ordinance No. 464 to remove existing garage and replace with 30' x 24' garage 3' from the east property line located at 518 Juergens Rd. SW with the following legal description: LEGAL DESCRIPTION: Lot 5, Block 2, JuuI's Oak Park Subdivision of Lot 72 Lynn Addition 2. The City Council has considered the recommendation of the Planning Commission and the effect of the proposed use on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated y conditions, and the effect on values of properties in the surrounding area and the effect of the use on the omprehensive Plan. 3. The Council has determined that the proposed use is in harmony with the general purpose and intent of the Zoning Ordinance and the Comprehensive Plan. • RECOMMENDATION: DENIAL APPROVAL X UNANIMOUS X CONSENSUS SPLIT CONDITIONS: CONSIDERATIONS/DIRECTIVES: The structure will be placed at least 6' off the rear property line. ..rIS: The City reserves the right to review all conditional use permits at their discretion. Adopted by the City Council this 25th day of August, 1998. ATTEST: Gary D. Plotz City Administrator Marlin D. Torgerson Mayor • • • R Hutchinson City. Center III Ha Stmt SE Hutchinson, MN 55350.2522 320- 557.51511Fa 320-234 -4240 MEMORANDUM TO: Hutchinson City Council DATE: August 19, 1998 FROM: Hutchinson Planning Commission SUBJECT: CONSIDERATION OF PETITION REQUESTED BY GENE AND JULIA Pursuant to Section 5.972 of Subdivision Ordinance No. 466, the Hutchinson Planing Commission is hereby submitting its findings of fact and recommendation with respect to the aforementioned request. HISTORY On July 30, 1998, Gene and Julia Winkelman submitted a petition to vacate an easement located between Lots 8 and 9, Block 1, Island View Heights 2nd Addition. FINDINGS OF FACT Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on Thursday, August 6, 1998. ' :TMENDATION DENIAL APPROVAL X with staff recommendations and the following terms and conditions. UNANIMOUS X CONSENSUS SPLIT CONDITIONS: CONSIDERATIONS/DIRECTIVES ARMS: Respectfully Submitted, Dean Wood, Chairman Hutchinson Planning Commission • cc: Gene and Julia Winkelmann Primed on recycled paper - .J .J 6Mp asegpuej \SI9 \S9NIMVHO\ 9 • 2 1 ------------------------------------------------------ - - - --- - --- - ---------------- - - - - -- R J Hutchinson City Cent Ill Hae+an Street SE Hutchinson, MN 55350 -2522 320- 587- 5151/Fm 320- 234 -5240 MEMORANDUM TO: Hutchinson City Council DATE: August 19, 1998 FROM: Hutchinson Plannin¢ Commission SUBJECT: CONSIDERATION OF AMENDMENT TO CITY CODE CHAPTER 11, ZONING ORDINANCE #464. SECTION 8.08 TO PERMIT 12'X 16' UTILTIY SHEDS WITHOUT CEMENT SLABS IN MANUFACTURED HOME PARKS. Pursuant to Section 6.05, of Zoning Ordinance No. 464, the Hutchinson Planning Commission is hereby submitting its findings of fact and recommendation with respect to the aforementioned request to amend City Zoning Ordinance Section 10 HISTORY On July 30, 1998, Hutchinson Planning Staff requested an amendment to the City Code Chapter 11, Zoning Ordinance #464 Section 8.08 to permit 12'x 16' utility sheds without cement slabs in manufactured home parks. OVERALL MINIMUM PARK REQUIREMENTS Q. Accessory sturctures shall be limited to one 12'x 16 (or smaller) utility building, the siding and color to which matches the mobile home. The shed will be permitted without a cement slab, however all • sheds placed on skids must be skirted to control rodents and pests. Responsibility for policing this requirement rests with the park manager. FINDINGS OF FACT 1. All procedural requirements for amendments to the Ordinance have been complied with. 2. Notice was published in the Hutchinson Leader on Thursday, August 6, 1998. 3. The hearing was held at the regular meeting of the Planning Commission on Tuesday, August 18, 1998, at which time there was no one present objecting to the request. RECOMMENDATION DENIAL X APPROVAL with staff recommendations and the following terms and conditions. UNANIMOUS X CONSENSUS SPLIT CONSIDERATIONS/DIRECTIVES: • Respectfully submitted, Dean Wood, Chairman Hutchinson Planning Commission Pnnrcd m recycled paper- PUBLICATION NO. 5204 PUBLISHED 1N THE HUTCHINSON LEADER: Thursday, August 6, 1998 NOTICE OF PUBLIC HEARING To Whom it May Concern: Notice is hereby given that a public hearing will be held on Tuesday, August 18 ,' ', at 5:30 p.m. in Council Chambers at City Hall for the purpose of considering an amendment to Ci ode Chapter 11, Zoning Ordinance 4464, Section 8.08 to permit 12' x 16' utility sheds with, cement slabs in manufactured home parks. SECTION 8.08 R -5 MOBILE/MANUFACTURED HOME PARK OVERALL MINIMUM PARK REQUIREMENTS Q. Accessory structures shall be limited to one 40 ^" 12'`x 16 (or smaller) utility building, the siding and color of which matches the mobile home. The shed W1111 be oerinitterl with6ut a for policing this requirement rests with the park manager. This hearing will be held by the Planning commission of the City of Hutchinson. At such hearing, all interested persons may be heard. If you would desire to appeal the Planning Commission's recommendation, you can take your request to the City Council, which has the power to overrule the decision of the Planning Commission. 1 ' W Liu • �. August 3. 1998 Dated Hutchinson City Center n L J • 111 Hawn Stmt SE Hutchinson, MN 55350-2522 320.587- 5151/Fa 320- 2344240 MEMORANDUM TO: Hutchinson City Council DATE: August 19, 1998 FROM: Hutchinson Planning Commission SUBJECT: CONSIDERATION OF AMENDMENT TO CITY CODE CHAPTER 11. ZONING ORDINANCE 4464. SECTION 10.03 REGARDING PARKING REQUIREMENTS FOR MEDICAL AND DENTAL CLINICS AND HOSPITALS. Pursuant to Section 6.05, of Zoning Ordinance No. 464, the Hutchinson Planning Commission is hereby submitting its findings of fact and recommendation with respect to the aforementioned request to amend City Zoning Ordinance Section 10 HISTORY On July 30, 1998, Hutchinson Planning Staff requested an amendment to the City Code Chapter 11, Zoning Ordinance #464 Section 10.03 regarding parking requirements for medical and dental clinics and hospitals.. SECTION 10.03 - SCHEDULE OF OFF - STREET PARKING REQUIREMENTS Medical and Dental clinics 10 spaces per doctor or dentist Hospitals 10 spaces per doctor or dentist FINDINGS OF FACT 1. All procedural requirements for amendments to the Ordinance have been complied with. 2. Notice was published in the Hutchinson Leader on Thursday, August 6, 1998. 3. The heating was held at the regular meeting of the Planning Commission on Tuesday, August 18, 1998, at which time there was no one present objecting to the request. RECOMMENDATION DENIAL X APPROVAL with staff recommendations and the following terms and conditions. UNANIMOUS X CONSENSUS SPLIT CONSIDERATIONSIDIRECTIV ES: A new proposal for consideration of amendment which will reflect an amount of parking spaces per square footage plus per doctor calculations will be re- advertised. Respectfully submitted, • Dean Wood, Chairman Hutchinson Planning Commission Primed on mgcled paper - —.�, C Hutchinson City Center 111 Haman Street SE Hutchiueon. MN 55350.2522 320.587- 515INsm 320.230.4240 • MEMORANDUM DATE: August 1ii, 1998 TO: Hutchinson Planning Commission FROM: Bonnie Baumetz, Planning and Zoning SUBJECT: CONSIDERATION OF AMENDMENT TO ZONING ORDINANCE REGARDING PARKING REQUIREMENTS FOR MEDICAL AND DENTAL CLINGS AND HOSPITALS Since the July 31, 1998, planning staff meeting, John Rodeberg has had conversation with Mr. Graves, Hospital Administrator, and Mr. Monster, Architect for the hospital project, regarding the proposed amendment of 10 spaces per doctor for clinics and hospitals. They • are now suggesting to amend the ordinance to reflect an amount of parking spaces per square footage plus per doctor calculations. John Rodeberg, Mark Hensen and myself met this morning and would recommend the planning commission deny the request on the table and re- advertise an amendment which would be similar to Edina's ordinance as follows: Clinics — 1 space per 200 sq. ft. of gross floor area plus one space per primary medical service provider. Hospitals — 1 space per bed plus 1 space per employee or volunteer on a major shift. cc: John Rodeberg Mark Hensen • Printed on recycled paper � 4 — ,z,, C , J FOR YOUR 1NEORhKEM MINUTES HUTCHINSON PLANNING COMMISSION Tuesday, August 18, 1998 CALL TO ORDER 5:30 P.M. The meeting was called to order by Chairman Dean Wood at 5:30 p.m. with the following members present: Dave Westlund, Jeff Haag, Jim Haugen, Joe Drahos, Jeff Jones and Chairman Wood. Absent Bill Arndt. Also present Bonnie Baumetz, Planning and Zoning; Marc Sebora and Richard Schieffer, City Legal Counsel; Mark Hensen, Building Dept.; and John Rodeberg, Director of Engineering. 2. CONSENT AGENDA a) Consideration of minutes of regular meeting dated July 21, 1998. b) Consideration of lot split located in Plaza Heights Addition (Lot 3, Block 6) requested by David Butler. Mr. Haag made a motion to approve consent agenda items. Seconded by Mr. Haugen the motion carried unanimously. 0 3. PUBLIC HEARINGS a) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY DAVID EVENSON TO REMOVE EXISTING GARAGE AND REPLACE WITH 30 X 24 GARAGE T FROM THE PROPERTY LINE LOCATED AT 518 JUERGENS RD. Chairman Wood opened the hearing at 5:31 p.m. with the reading of publication #5202 as published in The Hutchinson Leader on Thursday, August 6, 1998. The request is for the purpose of consideration of conditional use permit requested by David Evenson to remove existing garage and replace with a 30 x 24' garage 3' from the property line located at 518 Juergens Rd. Mark Hensan said this is a basic garage replacing an existing nonconforming garage placed 3' from the property line. Mr. Evenson is asking to replace a small single car garage with a double car garage. Mr. Hensen said the building code would allow a T set back with a conditional use permit David Evenson, 518 Juergens St. SW, said he would like to maintain as much yard space as possible and by placing 3' from the property line would allow easier entrance into the garage. John Rodeberg said the zoning ordinance was changed several years ago to accommodate residences in the older part of the city with smaller lots to replace small nonconforming garages. Mr. Haag moved to close the hearing, seconded by Mr. Westlund the hearing closed at 5:40 p.m. Mr. Haugen made a motion to recommend approval of the request with staff recommendations. Seconded by Mr. Haag the motion carried unanimously. I1 I� b) CONSIDERATION OF VACATION OF EASEMENTS LOCATED BETWEEN LOTS 8 AND 9, BLOCK 1, ISLAND VIEW HEIGHTS 2N ADDITION REQUESTED BY GENE WINKELMANN • Chairman Wood opened the hearing at 5:40 p.m. with the reading of publicatic #5203 as published in The Hutchinson Leader on Thursday, August 6, 1998. The requL t by "`ene Winkelmann is for the purpose of consideration of vacation of easements locate i bet ..:en Lots 8 and 9, Block 1, Island View Heights 2n Addition. Ms. Baumetz said the Winkelmanns would build a house across both lots. TI iots w;i not be able to be split again in the future. Mr. Haag moved to close the hearing, seconded by Mr. Jones the hearing d =d at 5:42 p.m. Mr. Haag made a motion to approve the request with staff recommendati a. Seconded by Mr. Westlund the motion passed unanimously. C) CONSIDERATION OF AMENDMENT TO ZONING ORDINANCE PERMITTING 12'X 16' UTILITY SHEDS IN THE MANUFACTURED HOME PARKS WITHOUT CEMENT SLAB. Chairman Wood opened the hearing at 5:42 p.m. with the reading of publication #5204 as published in The Hutchinson Leader on Thursday, August 6, 1998, for the consideration of amendment to the zoning ordinance permitting 12' x 16' utility sheds in the manufactured home parks without cement slab. Ms. Baumetz said the mobile home park owners approve the proposed amendment Planning Staff recommends approval, noting sheds on skids must be skirted to control rodents and pests. Ms. Baumetz said typically mobile home residents do not have garages for storage of their possessions. Their homes are mobile and storage sheds need to be mobile also. Mr. Westlund moved to close the hearing, seconded by Mr. Haugen the hearing closed at 5:48 p.m. Mr. Westlund made a motion to recommend approval of the request with staff recommendations. Seconded by Mr. Jones the motion passed unanimously. d) CONSIDERATION OF AMENDMENT TO ZONING ORDINANCE REGARDING PARKING REQUIREMENTS FOR MEDICAL CLINICS AND HOSPITALS. Chairman Wood opened the hearing at 5:48 p.m. with the reading of publication #5204 as published in The Hutchinson Leader on Thursday, August 6, 1998. The request is for the purpose of consideration of amendment to the zoning ordinance regarding parking requirements for medical clinics and hospitals. Mr. Hensen said after the Planning Staffs meeting recommendations have changed. We feel we have a more workable recommendation. Mr. Rodeberg explained he has been talking with the doctors and administration. Theytom worked out a new proposal as follows: Clinics - 1 space per 200 sq. ft. of gross Floor area plus space per primary medical service provider. Hospitals - 1 space per bed plus 1 space per employee or volunteer on a major shin Planning Commission asked to have parking issues for colleges be researched and • evaluated. u Mr. Haugen moved to close the hearing, seconded by Mr. Jones the hearing closed at 6:10 p.m. Mr. Haag made a motion to recommend denial the request Seconded by Mr. Westlund the motion carried unanimously. Staff will re- publish a new proposal next month. 4. NEW BUSINESS a) CONSIDERATION OF FINAL PLAT TO BE KNOWN AS "COUNTY FAIR MARKET PLACE" SUBMITTED BY RYAN COMPANIES. The consideration of final plat was removed from the agenda at the request of the developer. The developer is requesting a special meeting on Sept 2, 1998 at 5:30 p.m. for consideration of final plat Following the Planning Commission meeting the plat will be considered at the council meeting on Sept. 8, 1998 at 5:30 p.m. b) CONSIDERATION OF SETTING DATE AND TIME FOR SEPTEMBER PLANNING COMMISSION MEETING (PRIMARY ELECTION WILL BE HELD ON SEPTEMBER 15, 1998) Ms. Baumetz said no public meetings could be held between 6:00 and 8:00 on Election Day. It was decided to hold the September 15" Planning Commission meeting at 4:00 p.m. 0 5. OLD BUSINESS 6. COMMUNICATION FROM STAFF Ms. Baumetz reported the Marka and Bemhagen annexation was approved by the municipal board on August 7, 1998. Ms. Baumetz said she would have a meeting with the downtown review committee and downtown businesses regarding banners. Dick Schieffer said he sent letter to Ron McGraw denying the request on car sales in the G3 District 7. ADJOURNMENT There being no further business the meeting adjourned at 6:30 p.m. • • PUBLISHED IN THE HUTCHINSON LEADER THURSDAY, AUGUST 6, 1998 PUBLICATION NO. 5207 CITY OF HUTCHINSON, MINNESOTA NOTICE OF PUBLIC HEARING ON A HOUSING PROGRAM PROVIDING FOR THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS TO FINANCE PROJECT UNDER MINNESOTA STATUTES, CHAPTER 462C NOTICE IS HEREBY GIVEN that the City Council of the City of Hutchinson, Minnesota (the "City Council") will meet at 6:00 p.m. on Tuesday, August 25, 1998, at City Hall, 111 Hassan Street Southeast, Hutchinson, Minnesota, to conduct a public hearing on a proposal that the City of Hutchinson (the "Issuer ") adopt a housing program under the Municipal Housing Programs Act, Minnesota Statutes, Chapter 462C, providing for the issuance of bonds in an • amount presently estimated not to exceed $4,400,000 (the 'Bonds "), to finance the acquisition of a 62 -unit residential rental facility for senior citizens, known as Evergreen Apartments (the "Project "), located at 115 Jefferson Street in the City of Hutchinson, Minnesota (the "City"). The Project will be owned and operated by Community Housing Development Corporation, a Minnesota nonprofit corporation (the 'Borrower "). The Bonds will be special limited obligations of the Issuer payable solely from the revenues pledged to the payment thereof, except that such Bonds may be secured by a mortgage or other encumbrance on the Project. No holder of any such Bond shall ever have the right to compel any exercise of the taxing power of the Issuer to av the Bonds, or the interest thereof, nor to enforce payment thereon against any property of the .ssuer except the Project. All persons interested may appear and be heard at the time and place set forth above. Dated: August 6, 1998 CITY OF HUTCHINSON, MINNESOTA By /s/ Gary Plotz City Administrator E A HOLMES & GALEY, LTD. CNE FlNAN PL SURE 1200. 120 So 5 1[ SIREET, h NNEAPIXIS. Mva+E9 5S402 TELEPHONE: 16121268 -9300 • FACN 16121288-9400 STEFANIE N. GALEY A -- IRNE AT LAW DlffC c t6121305�260 E-Mm .1lE *@ LMX. ' August 20. 1998 Ken Merrill Jerry Gilligan Mark Ruff Linda Donaldson Angela Christy Mark Appelbaum Paula Hecht City of Hutchinson, Minnesota Multifamily Housing Revenue Bonds (Evergreen Apartments Project) Series 1998 Ladies and Gentlemen: Enclosed are copies of first drafts of the following documents in connection with the captioned • financing: 1. Resolution authorizing issuance; 2. Loan Agreement and Indenture of Trust; 3. Combination Mortgage, Security Agreement and Fixture Financing Statement; 4. Regulatory Agreement; 5. Collateral Assignment of HAP Contract; 6. Bond Purchase Agreement; and 7. Continuing Disclosure Agreement Please review these documents and call me with your questions and comments. Sincerely. tefanle N. Galey SNG/bjm Enclosures r LA D:'RUT100•1301 CORRIDL ENCI.DOC D ^,HUTI00001'CORRIDistLin.doc .,i / 1 Aueua 18, 1998 DISTRIBUTION LIST City of Hutchinson, Minnesota Multifamily Housing Revenue Bonds (Evergreen Apartments Project) Series 1998 Name Telephone Facsimile rssuer Ken Merrill (320) 587 -5151 (320) 234-4240 City of Hutchinson 111 Hassan Street Southeast Hutchinson, MN 55350 -2522 Issuer's Counsel Jerry Gilligan (612) 340 -2962 (612) 340 -2868 Dorsey & Whitney 220 South Sixth Street 19 Floor Minneapolis, MN 55402 Financial Advisor Mark Ruff (612) 697 -8505 (612) 697 -8555 Ehlers & Associates 3060 Center Pointe Drive Roseville, MN 55113 • Owner Linda Donaldson (612) 332 -5664 (612) 332 -1250 Community Housing Development Corporation 300 First Avenue North, Suite 110 Minneapolis, MN 55401 Owner's Counsel Angela Christy (612) 335 -1672 (612) 335 -1657 Leonard, Street and Deinard 150 South Fifth Street. Suite 2300 Minneapolis, MN 55402 Underwriter Mark Appelbaum (612) 342 -6652 (612)342 -6966 Piper Jaffray Inc. 222 South Ninth Street. 16 Floor Minneapolis. MN 55402 Stefanie Galey (612) 305 -4260 (612) 288 -9400 iwrnerN Holmes & Galey, Ltd. (612) 305 -4263 Counsel 120 South Sixth Street. Suite 1200 Minneapolis. MN 55402 D ^,HUTI00001'CORRIDistLin.doc .,i / 1 Aueua 18, 1998 Trustee Name Paula Hecht Norwest Bank Minnesota, National Association Attn: Corporate Trust Department Sixth Street and Marquette Avenue Minneapolis, MN 55479 -0069 elrvern Northstar East Building, 12th Floor 608 Second Avenue South Minneapolis, MN 55402 Telephone (612) 667 -4917 Facsimile (612) 667 -9825 0 • U D4RJTI00`W 1 SCORROwL.UAM AuW 18, 1998 Extract of Minutes of Meeting of the City Council of the City of Hutchinson. Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Hutchinson. Minnesota was duly held at City Hall in said City of Hutchinson, on Tuesday, the ?5` of August, 1998, at 6:00 p.m. The following Councilmembers were present: and the following were absent: The Mayor announced that the next order of business was a public hearing on the issuance of multifamily housing revenue bonds. The Mayor opened the public hearing and all interested parties were given the opportunity to be heard. The Mayor closed the public hearing. Councilmember then introduced the following written resolution and moved its adoption. The motion for the adoption of the following resolution was duly seconded by Counciimember and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: r14 s 41 D HUT100 1 AUTHORIZING DOC I RESOLUTION AUTHORIZING ISSUANCE Whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor and attested to by the City Administrator. 0 s • D:WUTI00`.001 RESAUCHORIZNG.DOC 2 RESOLUTION AUTHORIZING ISSUANCE CITY OF HUTCHINSON RESOLUTION NO. AUTHORIZING THE FINANCING OF A HOUSING PROGRAM UNDER MINNESOTA STATUTES, CHAPTER 4620, AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS (EVERGREEN APARTMENTS PROJECT), SERIES 1998, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $4,400,000 TO FINANCE THE PROGRAM, APPROVING AND AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS IN CONNECTION THEREWITH. WHEREAS, the City of Hutchinson, Minnesota (the "City ") is a municipal corporation duly organized and existing under its charter and the Constitution and laws of the State of Minnesota; and WHEREAS, pursuant to the Minnesota Municipal Housing Act, Minnesota Statutes Chapter 462C (the "Act "), the City is authorized to carry out programs for the financing of multifamily housing for persons of low and moderate income; and WHEREAS, on the date hereof, the City has conducted a public hearing on a multifamily housing program (the "Program ") providing for the issuance of Multifamily Housing Revenue Bonds (Evergreen Apartments Project), Series 1998 in the aggregate principal amount not to • exceed $4,400,000 (the 'Bonds "), to be issued by the City, and for the purpose of funding a loan (the "Loan") to Community Housing Development Corporation, a Minnesota nonprofit corporation (the "Owner "), to finance the acquisition of a 62 -unit multifamily rental housing development known as Evergreen Apartments (the "Project "); and WHEREAS, the Program was submitted to the Regional Development Commission for review as provided by the Act; and WHEREAS, the Bonds will be issued under a Loan Agreement and Indenture of Trust (the "Indenture "), and will be secured by a pledge and assignment of the revenues of the Project, including the housing assistance payments to be derived from the Housing Assistance Payments Contract (the "HAP Contract ") between Minnesota Housing Finance Agency ( "MHFA ") and the Owner, all in accordance with the terms of the indenture, and said Bonds and the interest on said Bonds shall be payable solely from the revenue pledged therefor and the Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation nor give rise to a pecuniary liability of the City or a charge against its general credit or assets and shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City other than the City's interest in said Project; and WHEREAS, forms of the following documents (including the exhibits referred to therein) have been submitted to the City: i .� _fit O- HUT IOO'',OOI%RMAUTHORMNG.DOC 3 RESOLUTION AUTHORIZING ISSUANCE a. The Indenture to be made and entered into among the City, the Owner and the trustee named therein (the "Trustee "), providing for the issuance of the Bonds, prescribing the form thereof. pledging the trust estate described therein for the security of the Bonds, and setting forth proposed recitals, covenants and agreements by the parties with respect thereto. b. The Regulatory Agreement to be executed by the City, the Trustee and the Owner, setting forth certain covenants of the Owner. C. A Bond Purchase Agreement, to be dated as of the date of execution thereof (the 'Bond Purchase Agreement "), by and among the City, the Owner and Piper Jaffray Inc. (the "Underwriter ") providing for the purchase of the Bonds by the Underwriter. . d. A Combination Mortgage, Security Agreement and Fixture Financing Statement from the Owner to the City and assigned to the Trustee. e. An Assignment of HAP Contract, from the Owner to the Trustee and approved by MHFA and the United States Department of Housing and Urban Development. The agreements described and referred to in paragraphs a through a above, shall hereinafter sometimes be referred to collectively as the "Agreements." • NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON: 1. That it is hereby found, determined and declared that: a. The preservation of the quality of life in the City is dependent upon the maintenance, provision, and preservation of an adequate housing stock which is affordable to elderly persons and families of low or moderate income, that accomplishing this is a public purpose, and that many would -be providers of housing units in the City are either unable to afford mortgage credit at present market rates of interest or are unable to obtain mortgage credit because the mortgage credit market is severely restricted; b. The development and implementation of the Program, and the issuance and sale of the Bonds by the City, and the execution and delivery of the Agreements and the performance of all covenants and agreements of the City contained therein and of all other acts and things required under the Constitution and Laws of the State of Minnesota to make the Agreements and the Bonds valid and binding obligations of the City in accordance with their terms, are authorized by the Act; C. The implementation of the Program for the purposes and in the manner contemplated by the Agreements conforms or will conform to all pertinent statutes. regulations and ordinances of the State of Minnesota, and the City; D`HUTIWOOIVRESAUTHORIZING.DOC 4 RESOLUTION AUTHORIZING ISSUANCE • d. It is desirable that the Bonds in the principal amount not to exceed 54,400,000 be issued by the City, on the terms set forth in the Indenture and the Bond Purchase Agreement; e. The payments required or provided for by the Agreements are intended to produce income and revenues sufficient to provide for the payment when due of principal of, and interest on all Bonds issued under the Indenture, and payments are required to be made for such expenses of, among other things, administration of the Program, as will be necessary to protect the interests of the City and the Trustee; and f. Pursuant to the provisions of the Act, and as provided in the Agreements, the Bonds shall be retired solely from the revenues of the Project, and a separate sinking fund shall be established for the accounting of the revenues and retirement of the Bonds. 2. The Program is hereby in all respects adopted. 3. That the Agreements in substantially the forms submitted to the City at this meeting, are hereby approved. Such of the documents as require the execution of the City are hereby authorized and directed to be executed or accepted. as the case may be, and delivered in the name and on behalf of the City by its Mayor and City Administrator upon execution thereof by the parties thereto as appropriate. The Bonds and the Agreements shall be executed and • delivered as provided therein. Copies of all the documents necessary for the consummation of the transactions described herein and in the Agreements shall be delivered, filed and recorded as provided herein and in the Agreements. 4. That the form and terms of the Agreements may be varied prior to execution and delivery by the parties thereto, provided that any such variance shall not be, in the opinion of the City's legal counsel and the Mayor, materially adverse to the interests of the City. The execution and delivery of the Agreements as provided above shall be conclusive evidence of the determination that any such variance was not materially adverse to the interests of the City. 5. That in anticipation of the collection of revenues of the Project, there shall be issued forthwith the Bonds, in the principal amount not to exceed $4,400,000, which issuance is approved. substantially in the forms and upon the terms set forth in the Indenture. the terms of which are for this purpose incorporated in this resolution and made a part hereof as if fully set forth herein. The Bonds shall be dated as of the date and shall mature on the dates (subject to redemption on such earlier dates as provided in the Indenture), bear interest and be payable at the rates, all determined as set forth in the Indenture, provided that such testes shall result in an average coupon not greater than 7.0 %. The City may at its option issue additional bonds at a later date to be used to pay or reimburse costs of the Project not paid from the proceeds of the Bonds, in a principal amount not to exceed the amount set forth in the Program. 6. That all actions of the members, employees and staff of the City heretofore taken • in furtherance of the Program are hereby approved, ratified and confirmed. 'J HL f 100\001' RES'AUTHORIZING. DOC 5 RESOLUTION AUTHORIZING ISSUANCE 7. That the sale of said Bonds to the Original Purchaser to be determined is hereby approved, and the Bonds are hereby directed to be sold to the Underwriter, upon the terms and conditions set forth in the Bond Purchase Agreement. The Mayor and City Administrator of the City are hereby authorized and directed to prepare and execute by manual or facsimile signature the Bonds as described in the Indenture and to deliver them to the Trustee (which is herein designated as the authenticating agent under Minnesota Statutes, Section 475.5 for authentication and delivery to the Original Purchaser, together with a certified copy f this resolution, and the other documents required by the Indenture. 8. That the Mayor, City Administrator and other officers of the City are authorized and directed to prepare and famish when the Bonds are issued, certified copies of all proceedings and records of the City relating to the Bonds and such other affidavits and certificates (including but not limited to those required by bond counsel) as may be required to show the facts relating to the legality, tax exemption and marketability of the Bonds as such facts appear from the books and records in said officers custody and control or as otherwise known to them; and all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements made by the City and contained therein. The Mayor, City Administrator and said officers are further authorized to execute such additional documents as shall be determined by the Mayor to be necessary and desirable to provide for the issuance of the Bonds. 9. The Mayor, City Administrator and other officers of the City consent to the use by the Underwriter in connection with the sale of the Bonds of a Preliminary Official Statement and • a final Official Statement to be prepared by or on behalf of the Owner. The Preliminary Official Statement and the Official Statement are the sole materials consented to by the Mayor, City Administrator and said officers for use in connection with the offer and sale of the Bonds. The Mayor, City Administrator and said officers have not participated in the preparation thereof, has not made any independent investigation of the information contained therein and shall have no liability in connection with the contents of or use of such offering materials. 10. That all covenants, stipulations, obligations and agreements of the City contained in this resolution and the aforementioned documents shall be deemed to be the covenants, stipulations, obligations and agreements of the City to the full extent authorized or permitted by law, and all such covenants, stipulations, obligations and agreements shall be binding upon the City. Except as otherwise provided in this resolution. all rights, powers and privileges conferred and duties and liabilities imposed upon the City by the provisions of this resolution or of the aforementioned documents shall be exercised or performed by the City or by such member; of the City, or such officers, board, body or agency thereof as may be required or authorized by law to exercise such powers and to perform such duties. No covenant, stipulation, obligation or agreement herein contained or contained in the aforementioned documents shall be deemed to be a covenant, stipulation, obligation or agreement of any member of the City, or any officer, agent or employee of the City in that person's individual capacity, and neither the City Council nor any officer or employee executing the Bonds shall be liable personally on the Bonds or be subject to any personal liability or • accountability by reason of the issuance thereof. D: \H lrr100 6 RESOLIMON AUTHORIZING ISSUANCE • No provision, covenant or agreement contained in the aforementioned documents, the Bonds or in any other document related to the Bonds, and no obligation therein or herein imposed upon the City or the breach thereof, shall constitute or give rise to any pecuniary liability of the City or any charge upon its general credit or taxing powers. In making the agreements, provisions, covenants and representations set forth in such documents, the City has not obligated itself to pay or remit any funds or revenues, other than funds and revenues derived from the Project or the proceeds of the Bonds which are to be applied to the payment of the Bonds, as provided therein and in the Indenture. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except that revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The Holders of the Bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Bonds or the interest thereon, or to enforce payment hereon against any property of the City. The Bonds shall recite in substance that the Bonds, including the interest thereon, are payable solely from the revenues and proceeds pledged to the payment thereof. The Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 11. That except as herein otherwise expressly provided, nothing in this resolution or in the aforementioned documents expressed or implied, is intended or shall be construed to confer upon any person or firm or corporation, other than the City or any holder of the Bonds issued under the provisions of this resolution, any right, remedy or claim, legal or equitable, • under and by reason of this resolution or any provision hereof, this resolution, the aforementioned documents and all of their provisions being intended to be and being for the sole and exclusive benefit of the City and any holder from time to time of the Bonds issued under the provisions of this resolution 12. That in case any one or more of the provisions of this resolution, or of the aforementioned documents, or of the Bonds issued hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this resolution, or of the aforementioned documents, or of the Bonds, but this resolution, the aforementioned documents, and the Bonds shall be construed and endorsed as if such illegal or invalid provision had not been contained therein. 13. That the Bonds. when executed and delivered, shall contain a recital that they are issued pursuant to the Act, and such recital shall be conclusive evidence of the validity of the Bonds and the regularity of the issuance thereof, and that all acts, conditions and things required by the laws of the State of Minnesota relating to the adoption of this resolution, to the issuance of the Bonds and to the execution of the aforementioned documents to happen, exist and be performed precedent to and in the enactment of this resolution, and precedent to issuance of the Bonds and precedent to the execution of the aforementioned documents have happened, exist and have been performed as so required by law. 14. That in the event any of the officers of the City authorized to execute documents • on behalf of the City under this resolution shall have resigned or shall for any reason be unable to do so. anv member of the City, or officer of the City, is hereby directed and authorized to do so D' HUT I D0 \RESVAUTHORIZING. DOC 7 RESOLUTION AUTHORIZING ISSUANCE on behalf of the City, with the same effect as if executed by the officer authorized to do so in this resolution. • 15. That this Resolution shall take effect immediately. Adopted by the City Council of the City of Hutchinson this 25 da August, 1998. ATTEST: a Marlin Torger: .y Mayor Gary Plotz, City A dministra tor r 1 U D:UiUT 100`00RRESWUTHORIZMG.DOC 8 3ESOLUnON AUTHORIZING ISSUANCE 11 STATE OF MINNESOTA ) ) SS. COUNTY OF MCLEOD ) I, the undersigned, being the duly qualified and acting City Administrator of the City of n LJ Hutchinson, Minnesota (the "Issuer "), do hereby certify that attached hereto is a compared, true and correct copy of a resolution authorizing the issuance of revenue bonds by the Issuer in connection with the Evergreen Apartments Project, duly adopted by the City Council of the Issuer on August 25, 1998, at a regular meeting thereof duly called and held, as on file and of record in my office, which resolution has not been amended, modified or rescinded since the date thereof, and is in full force and effect as of the date hereof, and that the attached Extract of Minutes as to the adoption of such resolution is a true and accurate account of the proceedings taken in passage thereof. WITNESS My hand and the official seal of the Issuer this day of August, 1998. City Administrator (Seal) D `HUT100'AOI�RESWUTHORIZMG.DOC 0 RESOLUTION AUTHORIZING ISSUANCE 0 FAX TRANSMISSION CITY OF HUTCHINSON III HASSAN STREET SE HUTCHINSON MN 55350 320234 -4202 FAX 320- 234 -4240 To: Triax Cablevision Date: August 19, 1998 Mr. Paul R. Pecora Director of Operations Fax #: 507- 835 -4567 Pages: 1 Page From: Marilyn J. Swanson Administrative Secretary C � This Fax is in response to your letter of July 16, 1998 in which you requested an opportunity to meet with the Hutchinson City Council to demonstrate Triax's new services. Mayor Torgerson has suggested the meeting date of Tuesday, August 25. Our City Council meetings begin at 5:30 p.m. in the City Center Council Chambers. Please advise me if this date and time would be satisfactory. You can Fax a reply to City Center at 320 - 234 -4240 or call me at 320 - 234 -4202. I shall look forward to hearing from you. • 4 -A, TR IAX vrCABLEMSION 1504 2nd St. S.E., P.O. Box 110, Waseca, MN Phone: 507 -835 -5992, Fax: 507 -835 -4567 July 16, 1998 F - - "- 7 _ �D Mr. Gary Plotz 111 Hassan Street S.E. Hutchinson, MN 55350 -2522 JUL 2 1 1998 Cm �& hU i'- .,v ,jON Dear Mr. Plotz: Our construction crews and technicians have been working diligently to install and test the two -way system that will provide Hutchinson with Triax's most sophisticated cable television system. The opportunity to provide Hutchinson with two-way capabilities came near the end of our system construction in April. Cable companies have been speaking at length about the benefits new cable technology has to offer, such as high speed Internet access. However, most companies have been unable to build cable systems capable of handling the new technology because of the enormous cost involved. It has always been Trail's goal to provide our customers with the best services available at a reasonable cost. Recent developments now provide us with the opportunity to install the necessary equipment in Hutchinson at a cost that will allow us to provide advanced services to our customers at an affordable price. Even with the additional work required to install and test the new equipment, we intended to introduce 33 new channels to our customers in Hutchinson at an Open House event July 22 and 23. Regrettably, unforeseen delays in the testing process have forced us to postpone the Open House until late August or early September. The system is activated, and the new channels are available on the plant However, the new equipment has required us to modify our design slightly to avoid reception problems, and we would like to fine -tune our changes before we provide our customers access to the new services. Although we regret the delay, we are confident that we have chosen the prudent route by postponing the launch of our new services until we can be certain of the quality of the service our customers will receive. In spite of the delay in bringing the new services to on customer, I would like to schedule an opportunity to meet with the City Council to demonstrate the new services. I would like to work with you to establish a meeting time that is convenient to both on schedules to offer you a preview of what our new system will provide to our Hutchinson customers. As Tral's most sophisticated cable system, Hutchinson offers exciting opportunities for Tmix and the customers we serve. We are currently analyzing high -speed Internet access possibilities in Waseca, Minnesota. The tests performed in Waseca will provide us with the information we need to develop long -term plans for implementing Internet access in other Triax systems. With the introduction of a two-way system in Hutchinson, we are well positioned to rapidly deploy future cable television technological advances, as they become available. If you have any questions regarding our commitment to providing Hutchinson with a reliable and diverse cable television package, or to schedule a time to meet with you to view the new services, please feel free to call me. Sincerely, Paul R Pecora Director of Operations, Western Region • • C ^ A' • August 25, 1998 To: Honorable Mayor and City Council From: John Olson, Asst. Public Works Dir. Subject: Purchase of Snow Removal Truck w /equipment Requests for proposals were recently received for the purchase of a Snow Removal Truck w /equipment This truck is a replacement for a 1981 GMC Dump Truck. It Is fully expected that the new truck will not be available until February or March 1999. Therefore, the purchase will be a 1999 budget Rem. Plans for this completed transaction Include selling the 1981 GMC Dump Truck and a 1973 Austin - Western Motor Grader. The new truck will be equipped with a wing, an underbody blade, and a snowplow; its improved capabilities over the 1981 GMC Dump Truck will eliminate the need for the motor grader. Our goal continues to be presenting the bW proposals to the City Council. This may not mean `?at the least expensive proposal is presented. Because snow removal equipment is kept for at .ast 15 years, it is more important to purchase quality equipment that fits the City's needs than to purchase the least expensive equipment for purely monetary reasons. The Mack truck was recommended because of its greater horsepower and torque at lower engine r.p.m., its strength In the front-end, and its heavier transmission. It was determined that during snow removal activities in municipal settings, which includes stop and go plowing, the greater • torque and heavy duty transmission would be much more suitable. The International truck proposed by River Valley Trick Centers generally matches trucks currently being purchased by Mn/DOT. There are great differences between Mn/DOT's truck use and municipal truck use. Mn/DOT plows are able to gain and maintain speed more constantly than any municipal snowplow. Municipal snowplows encounter traffic more frequently and must often stop and start under a load of snow on the plow and wing. Central Garage mechanics and equipment operators recommend to the City Council that a change order be authorized removing the U- shaped box and sander from the equipment proposal and replace the box with a standard dump box and use a sand the City cureMly owns. This will reduce the cost of the truck without significantly affecting its operational value. Central Garage employees and potential operators of the Snow Removal Trick were presented with each of the proposals sent by various vendors. There were three proposals presented for the total package: 1) River Valley Truck Centers $103,549 2) Boyer Ford Trucks $103,916 3) Lakeland Ford Trucks $106,041 There was one proposal for the truck only: 1) Mankato Mack $ 69,205 • I1) The apparent low bid was from River Valley Truck Centers, however, after Central Garage employees and operators reviewed the specifications and proposals presented by the various • vendors, the foHowing recommendations were formed: FM offorifv recorerrrertdafM Truck: Mankato Vick $89,205 Truck equipment: the lower r: Crysteel Truck Equipment or State approved vendors: $52,020 Change order: Replace U- shaped box with standard box (S 8.400) Total purchase price $114,825 Expected service life: 20 years Second priority recommerWation Truck: Boyer Ford Trucks $103,918 Change order: Replace U- shaped box with standard box (S6,400) .. Total purchase price $ 97,508 Expected service life: 15 years Thkd arforfty recommendation: Truck: Lakeland Ford Trucks $108,041 • Change order. Replace U- shaped box with standard box ($8.400) Total purchase price $ 99,841 Expected service fife: 15 years Last orkv& recommendation: Truck: River Valley Truck Centers $103,549 Change order. Replace U- shaped box with standard box ($8.400) Total purchase price $ 97,149 Expected service Hfe: 15 years The action for consideration this evening is to authorize the purchase of a) Mack Truck, as proposed, from Mankato Mack for $89,205, as bld, and other taxes and fees required by low. b) To authorize a change order removing a U- shaped oonveyoridump box, replacing it with a standard dump body. b) To approve up to $45,820 and other taxes and fees required by low, for the purchase of truck equipment included in the bid and subsequent change orders. Purchase of truck equipment being from Crysteel Truck Equipment or from State of Minnesota approved vendors, whichever are lower. • / /4, • PURCHASE OF SNOW REMOVAL TRUCK W/ EQUIPMENT Presented August 25, 1998 Mankato Boyer Lakeland River Valley Description of costa: Mack FordlSterling Ford/Sterfing International Purchase price of truck 69,205 - 42,000 - Purchase price of truck equipment 52,020 - - - Totel bid purchase price of truck 8 equipment 391 103,916 106,041 103,549 Change order deduction (6,400) (6,400) (6,400) (6,400) Total purchase price $ 114,825 $ 97,516 $ 99,641 $ 97,149 Taxes, fees, license, set-up 8,036 6,826 6,975 6,800 122,863 104,342 106,616 103,949 Expected service life in years 20 15 15 15 Annual initial cost recovery 6,143 6,956 7,108 6,930 Annual upgadefreplacemen t (10%) 614 696 711 693 Annual operating cow (ircludig fuel, service, and maintenance) 2,600 2,600 2,600 2,600 ANNUAL COST OF OWNERSHIP 9,38 1 , 2 Expected service life 20 15 15 15 Total cost of ownership 187,149 153,776 156,277 153,344 Expected resale value (10,000) (6,000) (6,000) (4,000) Individual expected lifetime costs 177,149 147,776 150,277 149,344 • 2 0 - YR LIFETIME COSTS $ 177,149 $ 197,035 $ 200,370 199,126 Estimated cash on hand, December 31, 1998 $ 34,754 Lees: 2 months operating reserve (29,000) Cash available for capital experx5ttae 5,754 Revenues available for capital expenrtihres (at 1996 rates) 164,000 Interest earnings 1,800 Revenues from sale of existing equipment (1973 Ausfin- Westem Grader - $8,000; 1981 GMC - $4,000) 12,000 TOTAL AVAILABLE FOR CAPITAL EXPENDITURES $ 183,554 Capital expenditures budgeted for 1999 Snow removal truck wt equtpmerrt $ 122,863 2 Police squad cars 42,000 Police squad car equipment 3,0130 Snow removal skicisteer loader with broom 15,300 TOTAL BUDGETED CAPITAL EXPENDITURES 183,183 Amount carried forward to 2000 391 r1 LJ 7-A' R 0 Hutchinson City Center 111 Hassan street SE Hutch1mon, h1N 55350-2522 320.587.5151/Fa 320.2344240 M L AVIL 0 A N D V M TO: Mayor and City Council FROM: John P. Rodeberg, Director of Engineering/Public Works RE: Consideration of Approving Memorandum of Agreement for Advanced Flood Warning Devices for the South Fork of the Crow River DATE: March 18, 1998 Attached please find a copy of the above referenced document, as prepared by the Attorney General's Office. The Department of Public Safety — DEM, the Minnesota DNR, the National Weather Service, the USGS and FEMA have developed a cooperative program with funding to install gauges throughout the state that will measure and transmit information related to river flows and precipitation. A new gauge is proposed to be constructed on the South Fork of the Crow River at Cosmos. They are asking • that each City downstream of a gauge consider approving this agreement that calls for several duties (see Part H), which would include: ♦ Monthly inspection and light maintenance ♦ Maintain and pay for telephone line ♦ Notify agencies if maintenance is required ♦ Develop or update an all- hazard emergency operations plan (EOP) ♦ Conduct periodic flood emergency exercises ♦ Disseminate information to residents regarding flood mitigation actions I have somewhat mixed feelings. As usual, we are required to complete additional "mandates" (EOP, flood exercises, etc.) in order to receive other services. Also, I am not sure that having a 36 -hour notification of flow levels will allow us to help reduce flooding. It will however provide us with better information as to the time and level of the flow peak, and will allow us to provide more complete information to residents. I would propose that we consider approving this Agreement with the following conditions: • Review with Duane Hoeschen (Regional Emergency Management Coordinator) the potential for having City of Cosmos personnel inspect the gauge • Request that the McLeod County Emergency Services Department consider paying for the phone line. The Agreement may be cancelled with 30 days notice, so there is little risk. The cost should be minimal, if we do not have to drive to Cosmos weekly to inspect the gauge. • cc: Steve Madson fife: Crow River Pnn ed on n .wlcd paper - 7- A' MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF AND THE "ENHANCED FLOODWARNING SYSTEM COOPERATING AGENCIES" WHICH INCLUDE: DEPARTMENT OF PUBLIC SAFETY, DIVISION OF EMERGENCY MANAGEMENT (DEM), DEPARTMENT OF NATURAL RESOURCES, DIVISION OF WATERS (DNR Waters,) NATIONAL WEATHER SERVICE (NWS), UNITED STATES GEOLOGICAL SURVEY (USGS) AND FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) THIS AGREEMENT is made by and between the Enhance Floodwarning System Cooperating Agencies and the City of WHEREAS, the State of Minnesota, under Minnesota Statutes, Section 103F, 105 (b), stresses nonstructural measures such as floodplain zoning and floodproofmg, and flood warning practices to reduce flood damages throughout the state; and WHEREAS, the Enhanced Floodwarning System Cooperating Agencies are affecting the installation of 39 new and 5 upgraded gage sites in areas which would benefit from more advanced warning of flood stages; and WHEREAS, the cities benefltting from the enhanced system have shown interest in working with State and Federal agencies to implement/improve a gaging system in their city; • NOW, THEREFORE, it is agreed by and between the parties to this Agreement that: I. COOPERATING AGENCIES DUTIES Minnesota Division of Emergency Management. As the agency having statutory responsibility for disseminating notifications to state agencies, and for coordinating the state agency response to major emergencies /disasters, DEM would: a) Continuously monitor, via the (24 -hour) Minnesota Duty Officer ( LIDO) system which it operates, flood forecast/warning data; b) Notify appropriate state agencies of serious actual/lmpending flood events; and C) Provide overall long -term coordination amongst the agencies involved In the flood forecast/warning system. d) Provide emergency operations plan (EOP) guidance. Minnesota Department of Natural Resources. a) Procure state funding for replacement parts for the ongoing maintenance of the gages; b) Assist in the selection of equipment; c) Assist in the selection of locations for new gages; d) Administer, as Sub - Grantee, the funds procured for the System. . e) Provide long -term archiving of climatological and hydrological data for use in analyzing past events, in order to help reduce future flood risk; f) Respond to any community's notification of equipment malfunction by confirming in writing that the system is out of operation as of a particular date; and g) Fund ongoing maintenance of archival technology. National Weather Service. • a) Assist in the selection of equipment; b) Assist in the selection of locations for new gages; c) Apply to the National Environmental Satellite, Data, and Information Ser for the licenses required to use satellite communications; d) Provide hydro - meteorological forecast service for the areas served by the , es. e) Monitor all gages to ensure operational status; f) Provide access to gage data in near real -lime, and archive data for mos .cations for 30 days; g) Provide field maintenance for all gages (excluding parts); h) Assist in the development /revision of local EOPs in the affected cities by providing necessary hydrologic guidance and technical information. i) Assist with training for local governments and other agencies in the maintenance of gages and the analysis of raw data transmi and f) Notify the DNR Waters Surface Water Unit (612 - 2964800) upon notice from the city that any part of the gage is, or appears to be, disfunctional. II. 11 United States Geological Survey. USGS's interest in this project is in the construction and upgrading of sites to facilitate the collection of accurate stage data. The agency can provide technical assistance in the installation of gages and in the collection of hydrologic data. USGS has a limited amount of cooperative funding available to State and local governments for the operation and maintenance of gaging stations. Federal Emergency Management Agency. FEMA has provided 70% of the funding of the project. is BENEFIITED CITY'S DUTIES a) Regularly (at least monthly) inspect and perform light maintenance of gages (i.e., clean debris from equipment, check for and to report any vandalism, inspect outside connecting telephone lines etc.); b) Maintain a telephone line by regularly (weekly) calling for stage information to be sure the phone is functional at all times; C) Pay the associated monthly telephone charges, so as to be able to receive immediate warnings directly from the gage; f) Notify the NWS office that services the area and the local (City and/or County) Emergency Management Director immediately when the telephone warning system becomes inoperative, regardless of the cause, and when possible, identify the reason the telephone warning system is inoperative; e) Develop a new, or update as necessary and existing, all- hazard emergency operations plan (EOP) which addresses (at a minim notification and warning, and evacuation; and f) Conduct /participate in periodic flood emergency exercises; and g) Disseminate information to residents regarding flood mitigation actions (purchasing flood insuran elevating structures, floodproofing structures, etc.), which they may wish to take and also information regarding the City's flood response procedure. TERM This Agreement shall become effective when all signatures required have been obtained and when the gage(s) benefitting the City have been installed. 0 IV. CANCELLATION This Agreement may be canceled by the City or by the Cooperating Agencies at any time, with or without cause, upon 30 days written notice to the other parties. �. AUTHORIZED AGENTS The City's authorized agent for the purpose of a dministrati on of this Agreement is . The Cooperating Agencies authorized agent for the purposes of administration of this agreement is DNR Waters Surface Water and Hydrographics Section Administrator. The Cooperating Agencies authorized agent shall have full authority to represent the Cooperating Agencies in their fulfillment of the terms, conditions and requirements of this Agreement. YL LIABILITY Any liability of the State is subject to the States Tort Claim Act under Minnesota Statutes Section 3.736. Municipal liability is governed by Minnesota Statutes Chapter 466. VII. AMENDMENTS Any amendments to this Agreement shall be in writing, and shall be executed by the same parties who executed the original Agreement, or their successors in office. VIII. DATA PRACTICES The City agrees to comply with the Minnesota Data Practices Act as it applies to all data provided by the Cooperating Agencies in accordance with this Agreement and as it applies to ail data created, gathered, generated or acquired in accordance with this Agreement. IX. WITNESS WHEREOF, the parties have caused this Agreement to be duly executed intending to be bound thereby. CITY OF Approved as to form and execution by the ATTORNEY G ENERAL By: Witle: Date: COOPERATING AGENCIES By: By: Date: Title: Date: Memorandum To: Mayor and City Council From: Jean Ward, Hutchinson HRA/ n V, Date: August 18, 1998 Re: Consideration of funding discount for ECHO program in Hutchinson On July 28, 1998, a workshop was held regarding instituting the ECHO program in Hutchinson especially in support of the Home at Last program. As you recall, the Entry Cost Homeownership Opportunity Program (ECHO) provides entry cost assistance up to $4,000 for new construction. These are interest -free deferred loans, due upon sale, or when the borrower no longer occupies the property. In planning for 50 homes, our goal is to access $200,000 in ECHO funding for the City Of Hutchinson. The ECHO program is administered by the Minnesota Housing Finance Agency who buys the ECHO loans at a discount from participating lenders. The City Of Hutchinson is asked to fund one half the total discount required for access to $200,000 • worth of Echo funds for a total amount of $26,000. The Greater Mn Housing Fund will provide the other $26,000 in discount. The discount can be funded from using the $20,000 fee for refinancing the housing bonds from Evergreen and budgeting the remaining $6,000 from the 1999 HRA levy. A resolution authorizing funding for the $26,000 discount is attached for your consideration. I1 I� 4, RESOLUTION AUTHORIZING FUNDING FOR DISOUNT OF ECHO PROGRAM WHEREAS: The need for 50 additional owner occupied homes costing less than $95,000 has been determined by an HRA Housing Study and Five Year Housing Plan, and WHEREAS: The ECHO program will provide a source of secondary funds to families and individuals with incomes less than 80% of statewide median income interested in purchasing a newly constructed home costing less than 595,000. WHEREAS: The Greater MN Housing Fund will be requested to fund one half the 26% discount required for the ECHO program. THEREFORE, BE IT RESOLVED THAT.... THE City Of Hutchinson authorizes $26,000 to be used as the discount for the ECHO program C� i , 4, • Memo To- Mayor and City Council Memo From: Hutchinson HRA ou Date: August 18, 1998 Re: Consideration of Sceduling Public Hearing for DTED grant to provide infrastructure costs for Home at Last Project The HRA and Housing Task Force has spent a great deal of time in determining the need for 50 additional homes priced at $95,000 or less. In order to achieve this price, the HRA has applied to the Greater MN Housing Fund for land acquisition and plans to submit an application to the Department of Trade and Economic Development requesting funding for infrastructure costs. The application is due to DTED by September 30, 1998 and is very competetive. Grant awards are typically announced in early spring. The HRA requests that a public hearing be set for September 22, 1998 to obtain public input for this project. • n U I 0 August 18, 1998 To: Mayor and Council Hutchinson Fire Chief 111 Hassan Street S.E. Hutchinson, MN 55350 (320) 234 -4211 Under the fire department major capital expenditures for 1998 is the roof replacement project for the fire station. I would ask that we take bids on this project and try to complete it before winter. If you have any questions, feel free to contact me any time. • Thank you. Brad Emans r1 U Oro Qw Hutchinson Area Health • Hutchinson Community Hospital Burns Manor Nursing Home • Dassel Medical Center Winsted Family Practice Clinic 1095 Highway 15 South Hutchinson, MN 55350 (320) 234 -5000 R7"17:1 LZO August 18, 1998 A UG 2 C 1998 cm. CF HUTC` ::NSON The Honorable Mayor Marlin Torgerson and Members of the City Council Hutchinson City Center I 11 Hassan Street SE Hutchinson, MN 55350 Dear Mayor Torgerson and City Council Members: The board of directors of Hutchinson Area Health Care (HAHC), as part of their regular meeting on August 18, 1998, considered a request for the building and financing of the Hutchinson Medical Center addition and renovation. The following is an excerpt from the minutes of that meeting: "Hutchinson Medical Center Expansion and Renovation Project. Pat Barnett, from M. A. Mortenson, • attended the meeting and reviewed the Guaranteed Maximum Price (GNP) (see attached) and the first set of bids (Bid Pack I) for the construction of the project (see attached). Barnett explained each of the Categories of Bid Pack I and reported that the low bidder in category I (Rettman) did not meet specifications and recommends that we reject the bid and award the bid to the next lowest bidder (Reiner). Also Steve Apfelbacher, from Ehlers & Associates, Inc. attended the meeting and presented the financing of the project through the sale of Revenue Bonds (see attached). Care • < Following discussion, motion was made by Peterson, seconded by Erickson, to recommend to the City Council that the lease with the Hutchinson Medical Center be signed for the expansion and renovation of the project; the sale of the bonds for the project be authorized; and the low bidder for category 1 of Bid Pack I be the and the next lowest bidder be accepted: and that the bids for the remaining categories in Bid Pack I be accepted The cost of Bid Pack I js $ 855,342.00. All were in favor. otion passed." Thank you, in advance, for consideration of this request. Chairperson Tom Daggett and I, along with our financial advisor, will be at the meeting to address questions you may have regarding this item at your meeting on Tuesday. Sincerely, q N A ALTH CARE President yes PGG:cs —�F�G FROM FAEGRE d BENSCIN ;7HU1 9.20 99 2.')9 ST. 2- 07-N0.4261654497 F I FAE GRE & B ENSON LLP 2200 NORWEsT C EmnD4 90 Souni SEvENTu STREET • MtNNFArot.LS, MLNNESOTA S54o2.3901 FAX CENTER TELEPHONE 612- 336-3932 FACSVAI E 612. 336 -3026 FROM: Sachin Jay Darji TELEPHONE: 61213 36 -344 6 DATE: August 19, 1998 TIME: 2 b A.m. (Minneapolis) NUMBER OF PAGES (including this page): U !• � 1 F&B FILE. 212988 REC: S90 TO: Corrine Schlueter Hutchinson Area Health Care TELEPHONE: (320) 234 -4750 FAX: (320) 587 -3340 Dennis L. Peterson TELEPHONE: (612) 827 -8123 Peterson, Fishman, Livgard & Capistrant FAX: (612) 827 -8916 Mark Sebora Arnold, Anderson & Dove Jerry Gilligan Dorsey & Whitney TELEPHONE: (320) 587 -7575 FAX: (320) 5874096 TELEPHONE: (612) 340 -2962 FAX: (612) 340 -2868 Please see included clean and blacklined copy of lease amendment, which I am circulating at Phil Graves' request. John Wheaton (blackline only) Tom Schroeder (blackline only) THIS TELECOPY 1S INTENDED ONLY FOR THE USE OF THE PERSON TO WHOM IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL AND EXEMPT FROM DISCL05UPE UNDER PLICABLE LAW. IF YOU ARE NOT THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY NODISSEMINATION, DISTRIBUTION, OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE IMMEDIATELY NOTIFY US BY TELEPHONE AND RETURN THE ORIGINAL MESSAGE TO US AT THE ABOVE ADDRESS VIA THE U.S. POSTAL SERVICE THANK YOU. f E Re: Amendment to Lease between City of Hutchinson and Hutchinson Medical Center, P.A. Regarding Expansion of Office/Clinic Space at Hutchinson Community Hospital FROM FAEGRE 3 BENSON (THU) S. 20' 98 2:09; ST. 2: 07,'NO. 4261654497 P 2 Revised 9(19/9s THIS FIRST AMENDMENT TO LEASE (hereinafter called the " en -) is made and entered into this day of August, 1999 (the "Effective Date '), by and between the City of Hutchinson, Minnesota, a Minnesota municipal corporation (the "L') and Hutchinson Medical Center, P.A., a Minnesota professional corporation (the RECITALS A. Landlord and Tenant entered into a certain initial Lease (the " jam ") dated July 12, 1990, pursuant to which Tenant leased certain premises consisting of approximately 27,000 rentable square feet of space (the " Premises ") in the medical office building (the " Buildine") abutting, and at the southeast end of, the Hutchinson Community Hospital (the "Hospital "), and more particularly described in the Lease. B. Tenant desires more space at the Premises, and Landlord is willing to construct an addition to the Building consisting of an additional 22,500 rentable square feet of space, and remodel a substantial portion of the existing space, and to finance the same by issuing bonds. Tenant has agreed to lease such additional space from Landlord. • C. Landlord and Tenant desire to amend the Lease to provide for such construction and remodeling, and the lease of the additional space for, and to, Tenant, to provide for the rent payable for the additional space, and provide for other terms and conditions as described herein. NOW THEREFORE, for good and valuable consideration, receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree and covenant as follows: I • ftftWQ&2-. Capitalized terms not otherwise defined in this Amendment shall have the meanings set forth in the Lease. The following terms shall have the meanings set forth below: (a) Additional Bonds The taxable general revenue bonds to be issued by the City of Hutchinson, Minnesota (Series ) in connection with, and attributable to, the total costs of construction of the Expansion Premises, remodeling of the original Premises, and the Common Area Improvements, as further described in Article 3 of this Amendment (b) Common Area ImproveMents The modifications and improvements to the north wall of the Premises and the Common Area, as described in Section 3(c). 0 (c) Action Ruder As defined in Section 3(b). (d) East Parking Lot The existing surface parking lot on the East side of • the Building, as depicted on Exhibit C. (e) Ezpansioo Date The date on which: (a) the construction of the Expansion Premises, remodeling of the original Premises, and Common Area Improv- -n; are "substantially completed" (as defined in the Construction Rider), and (b) possess; ')f the Expansion Premises has been tendered to Tenant. (f) Expansion Premises The approximately 22,500 rentable s: re feet Of space to be constructed pursuant to Section 3, and as depicted on the site plan ;hed hereto as Exhibit A. (9) Expansion Term As defined in Section 4. (h) Modified Premises, The Premises plus the Expansion Premises. W Expansion Plans and SResifkatiops The construction drawings, elevations, plans, and specifications for the construction and installation of the Expansion Premises and the Common Area Improvements, and the remodeling of the original Premises, dated _ ' 1998, prepared by and approved by Landlord and Tenant, together with such modifications ther6of and additions thereto as are reasonably determined by Landlord to be necessary or desirable for the completion of said construction and installation; provided that Landlord may not make any • material or substantial modifications or additions to the Expansion Plans and Specifications without the prior written consent of Tenant, which may not be unreasonably withheld, conditioned, or delayed. In the event that Tenant fails to approve or disapprove of a modification or addition proposed by Landlord within ten (10) days after written notice from Landlord to Tenant, Tenant shall be deemed to have approved such modification or addition A current listing of the Expansion Plans and Specifications is attached hereto as Exhibit B. 6) South ParlrLfi 14t The existing surface parking lot on the South side of the Hospital, as depicted on Exhibit C. (k) Vn■_void_bIc Delay As defined in Section 1 I(c). (1) List of Exhibits Exhibit A Site Plan for Expansion Premises Exhibit B List of Expansion Plans and Specifications Exhibit C Site Plan for South and East Parking Lots Exhibit D Construction Rider 2. Confirmation of Lease Commencement Date The Commencement Date of the Lease (as defined in the Lease) is hereby confirmed to be 1991. The date • -2- FROM FAEGRE it BENSON (THU) S. 20'99 2:1t /ST. 2:O7/NO.4261654497 P 4 of expiration of the initial Term of the Lease is . 201_. The Net Rent for • the original Premises, for the remainder of the Term with respect to the original Premises, is $336,000.00 per year. (a) ranee of Boods Landlord shall endeavor to issue taxable general revenue bonds to finance the remodeling of the original Premises, and construction of the Expansion Premises and Common Area Improvements, as further described in this Section, in [an amount sufficient to fully finance the construction of the same] [a total amount equal to and /100 Dollars (3 1 (the "Additional Bonds )]. The issuance of the Additional Bonds is an express condition precedent to Landlord's obligations under this Amendment. (b) C'ongmsfion of ExpWion Premise Provided that the condition precedent contained in Section 3(a) is satisfied, Landlord shall construct the Expansion Premises in accordance with the Expansion Plans and Specifications, and pursuant to the terms of the construction rider attached hereto as Exhibit D (the " Construction Rider "). Landlord shall commence such construction on or about [date to be inserted] and diligently pursue the same to completion. • (c) Construction of Coon Am 1wgrevements Provided that the condition precedent contained in Section 3(a) is satisfied, Landlord shah remove the North wall between the Building and the Hospital and expand the Common Area by 1,500 square feet (the " Common A 1 rov ements "� as well as remodel the original Premises, all in accordance with the Expansion Plans and Specifications, and pursuant to the terns of the Construction Rider. Landlord shall use reasonable efforts to minimize the disruption to Tenant from such remodeling and the construction of the Common Area Improvements. Notwithstanding the foregoing, Tenant acknowledges that such remodeling and the construction may cause some disruption to the conduct of Tenant's business in the original Premises and common area, and further, Tenant covenants to fully cooperate with Landlord, and its contactors and employees, in accomplishing such remodeling and construction of the Common Area Improvements. (a) E:tytasiot Term The term of the Lease with respect to the Expansion Premises ( "the Expansion Term shall commence on the Expansion Date and expire [one- hundred eighty (180)] months after the Expansion Date, unless extended or sooner terminated. (b) Coaflrmation Memo Within ten (10) days after the date that the actual Expansion Date is determined, Tenant and Landlord shall execute a confirmation . memorandum setting forth the actual Expansion Date, the total cost of the Expansion -3- Promises, Common Area Improvements, and the remodeling of the original Premises, and • such other information as Landlord may reasonably request L47 7773 =1 I (a) On the Expansion Date, the Expansion Premises sliall be added to the Premises. From and after the Expansion Date: (i) the " it as defined in the Lease shall mean, collectively, the original Premises plus the Expansion Premises; (il) the "ijdjW" shall mean the medical office building constructed and now existing on the original Premises plus the expansion, and remodeling, to the medical office building and the Common Area Improvements to be constructed pursuant to the Expansion Plans and Specifications under Section 3 of this Amendment; and ('iii) the term "E Miect " shall have the same meaning as ascribed in Article 1 of the Lease, except that the " Project ° shall include the Building as defined in this Section 5(a). (b) Tenant shall be entitled to possession of the Expansion Premises on the Expansion Date for the uses set forth in Section S. By entering into possession of the Expansion Premises, Tenant shall be conclusively deemed to have accepted the Expansion Premises in its "as is" condition as of the date of such possession; provided, however, that Tenant shall have the right, within ninety (90) days after the Expansion Date, to deliver written notice to Landlord specifying items of incomplete, defective, or non - complying work in the Expansion Promises as provided in the Expansion Plans and Specifications and In Section 3 of this Amendment (the " ). Landlord shall use reasonable efforts to •. diligently correct or complete all such nonconforming items. After completion of such items Landlord shall deliver notice thereof to Tenant and Tenant shall have seven (7) days after receipt of said notice to identify any items which remain incomplete based on the Expansion Plans and Specifications and Section 3 of this Amendment If Tenant fails to identify any such items, Tenant shall be deemed to have accepted the same. (c) From and after the Expansion Date: (a) the Tenant's " Pro Rata Share (as defined in Section 7.3 of the Lease) shall be and _/100 percent C__ 1/6); (b) the Tenant's " Pgrkiniz Share (as defined in Section 7.3 of the Lease) shall be and /100 percent (—!%); and (c) the Building's Proportionate Share shall mean the Pro Rata Share and the Parking Share. 6. Rent. (a) Rent for Original Premises Tenant shall continue to pay Net Rent and all other amounts due minder the Lease for the original Premises. 0 -4- FROM FAEGRE 3 BENSON (THU) 5 -20'93 2:12. ST.. 2.07/NO-4261654497 P 6 • (b) Rent for Emsnsion PreraLw Commencing on the Expansion Date, and throughout the Expansion Term, Tenant shall pay a monthly Net Rent for the Expansion Premises to Landlord, in advance without notice, demand, setoff', or deduction, in equal monthly installments on the first day of each month, as follows: - ♦ 11 �i Tenant shall continue to pay all other sums, charges, and costs (if any) which are due Pursuant to the terms of the Lease including, without limitation, Additional Rent. Net Rent for any partial month in the Expansion Term shall be prorated. (c) Net Rent Adfustment The provisions of Section 5.4 of the Lease shall: (i) continue to be applicable to the cost of constructing the Building and the Premises (as to the Bonds), and (ii) also be applicable to the cost of the Expansion Premises, remodeling of the original Premises, and the Common Area Improvements (as to the Additional Bonds). 7. Extension Options Tenant shall retain the options to extend the Term of the Lease contained in Section 43 of the Lease, under the terms and conditions described in that Section, except that: • (a) Tenant may only exercise an option to extend the Term of the Lease as to the entire Modified Premises (i.e. Tenant may r= exercise an option to extend as to the original Premises only). Any exercise of an option to extend as to only part of the Modified Premises shall automatically operate as an extension as to the entire Modified Premises. (b) If Tenant exercises its first option to extend the Term of the Lease Pu rsuant to Section 4.3 of the Lease , then the expiration date of the extended term as to the oansion Premises shall be adjusted so as to correspond to the expiration date of the extended term for the original Premises. (c) Extension Net R n n [Section: 4.3 of the Lease is hereby deleted in its e n t ire t y any extension periods, the Net Rent for the Modified Premises shall be set according to the fair market value for the Mcd fled Premises. At least six (6) months prior to the expiration of the then Term (asWendea) Landlord and Tenant shall meet and attempt to come to an agreement as to the current fair market value for the Modified Premises. If Landlord and Tenant have not reached agreement on the fair market value at least one hundred twenty (120) days prior to the expiration of the then Term (as extended), then Landlord and Tenant shall each select a real estate broker having no less than seven (7) years experience in commercial leasing in the Hutchinson, Minnesota area Those two brokers will then meet to -5- determine the fair market value at least at least sixty (60) days prior to the expiration of the then Term (as extended). If the two brokers cannot reach agreement on fair market value, • then they shall mutually select a third broker who shall make his or her determination offair market value. Thereafter, the brokers will discard the determination offair market value which is furthest from the other two, and fair market value Net Rem for the Modified Premises during the extension period shall be the average of the two remaining determinations offair market value. If the two brokers cannot mutually agree on a thud broker, then the patties will arbitrate the issue offair market value, rising the two brokers' determinations offau market value, under the Commercial Arbitration Rules of the American Arbitration Association] 8. Es The Modified Premises may be used only for the use set forth in Section 8.1 of the Lease, or other ancillary and support functions, such as office and administrative use. 9. Parkinar (a) Use of Pa rko n o , From and after the Expansion Date, and during the Expansion Term (as extended), Tenant shall have exclusive use of 75b/o of the South Parking Lot and 75% of the East Parking Lot for the use of Tenant's officers, employees, Patients, and invitees. Notwithstanding Article 24.16 of the Lease, Tenant shall pay a rental to Landlord for use of the South Parking Lot in ffie amount of and /100 • Dollars ($ ) per year and for use of the East Parking Lot in the amount of and /100 Dollars (S ) per year, which rentals have been included in the Net Rent for the Expansion Premises. (b) Parking Ugsrating Costs Nothing in this Section may be construed to prevent Landlord from collecting the Parking Operating Costs described in Section 7.6 of the Lease from Tenant, including for the South Parking Lot and the East Parking Lot. 10. Mau The following is added to Section 22.4 of the Lease; "(g) Failure by Tenant to take possession of the Expansion Premises within sixty (60) days after tender of possession of the Expansion Premises by Landlord to Tenant. "(h) Tenant shall fail to observe any covenant or obligation, or Tenant shall otherwise default, under the First Amendment to Lease, and such failure or default continues for thirty (30) days after written notice from Landlord to Tenant of such failure or default; provided that if such failure or default is such that it cannot reasona be cured within said thirty (30) days, then if Tenant shall commence to such cure within said thirty (30) days, and diligently prosecute such cure to -6- FROM FAEGRE 3 BENSON (THU) 3- 20'98 2: tai ST. 2 07/NO. 4261654497 F 8 • completion, then the time for cure of the failure or default shall be extended for such period as may be reasonably necessary to complete such cure with diligence." (a) $,UNrcedin$ Effect: Ratification In the event of any conflict between the terms, provisions and covenants of the Lease and this Amendment, the terms, provisions and covenants of this Amendment shall supersede and govem the actions of the parties hereto. Except as expressly amended hereby, all other terms and conditions of the Lease shall remain unchanged and in full force and effect, and are ratified and confirmed in all respects. Tenant represents and warrants to Landlord that Tenant has no offsets, defenses or counterclaims to Tenant's obligations under the Lease. (b) Entire Agreement: Modification This Amendment contains the entire agreement and understanding of the parties hereto with respect to any matter mentioned herein, and no prior or contemporaneous agreement or understanding pertaining to any such matter shall be effective. This Amendment may be modified only by a writing signed by the parties in interest at the time of the modification (c) Unavoidable 1Delay Either party's failure to perform the terms and conditions of this Amendment, in whole or in part, other than any term requiring the payment • of money, shall not be deemed a breach or a default under this Amendment or give rise to any liability of such party to the other if such failure is attributable to any unforeseeable event beyond such party's reasonable control and not caused by the negligent acts or omissions or the willful misconduct of such party, including, without limitation, flood, drought, earthquake, storm, pestilence, lightning, and other natural catastrophes and acts of God; epidemic, war riot, civic disturbance or disobedience, and act of the public enemy; fire, accident, wreck, washout, and explosion; strike, lockout, labor dispute, and failure, threat of failure, or sabotage of such party's facilities; delay in transportation or car shortages, or inability to obtain necessary labor, materials, components, equipment, services, energy, or utilities through such parry's usual and regular sources at usual and regular prices; and any law, regulation, order or injunction of a court or governmental authority, whether valid or invalid and including, without limitation, embargoes, priorities, requisitions, and allocatiorm or restrictions of facilities, equipment or operations (each an "Unavoidable Delay") If such an unforeseeable event occurs, the party unable to perform is required to promptly notify the other parry. (d) Binding Effect on Successors/Auisms The rights and obligation of the parties under this Amendment shall be binding upon, and inure to tht benefit of, their respective successors and assigns. 0 -7- (e) Severobility The invalidity of any provision of this Amendment as determined by a court of competent jurisdiction and/or an arbitrator shall in no way affect the • validity of any other provision of this Amendment. (f) Captions The captions are inserted only as a matter of convenient and for reference, and in no way define, limit or describe the scope of this Amendment r the intent or any provision thereof. (g) Counterparts: Facsirilea This Amendment may be executed i -.wo or more counterparts, all of which when taken together shall comprise one instrument 1 facsimile copy of a signature shall be as binding as an original signature. IN WITNESS WIEREOF, Landlord and Tenant have executed and delivered this First Amendment to Lease as of the Effective Date. [Signature Page Follows] • I'1 U -8- FROM FAEORE k BENSON MiUI 5.20'99 2 -14i ST. 2'07/NO. 4261654497 P 10 SIGNATURE PAGE to FIRST AMENDMENT TO LEASE between CITY OF HUMS NSON, MINNESOTA and HUTCHINSON MEDICAL CENTER, P.A. Dated August , 1998 LANDLORD: CITY OF HUTCHINSON, MINNESOTA By Its And By Its TENANT: HUTCHINSON MEDICAL CENTER, P.A. By Its And By_ Its M1391626.04 SIZ EXHIBIT A Site Plan for E2mansionPmmim [To Be Attached] r� is -10- FROM FAEGRE d BENSON ITHW 9.20'98 2.15:ST. 2- 07/NO.4261654497 P 12 • EXHIBIT B List of Expansion Plans and Specifications [To Be Attached] 11 [To Be Attached] L_ • 0 -I2- FROM FAEGRE d BENSON (THU) 3.20'99 2:15; - ST. 2:O7/NO. 4261654497 P 14 Revised 9119198 • Exhibit D f'M+.truction Rider 1.0 Performance of Work Landlord, at its sole cost and e , shall construct and complete, or cause to be constructed and completed by contractors nably acceptable to Tenant the construction, installation, and fixturing of the Expansion Premises and Common Area Improvements, and the remodeling of the original Premises, to the specifications stated in the Expansion Plans and Specifications. All su h work shall be in compliance with all insurance requirements and legal requirements, including without limitation all required permits, certificates and other governmental authorizations. 2.0 EEM=ion Plans and Specifications Landlord at its sole Bost and expense has prepared, and Tenant has approved, the Expansion Plans and Specificatigns. 3.0 Substantial Completion All such work set forth on, or ( reasonably inferable from, the Expansion Plans and Specifications, including as the same nay be changed by Tenant change order, shall be prosecuted by Landlord with teas nable diligence to completion. Subject to Unavoidable Delays, Landlord shall endeavor Ic cause all such work to be substantially completed on or before July 1, 1999 (the "Estimat ComyWon at �. As used herein, the tam " substantially completed" shall mean the poh Lt at which (a) all of • such work has been completed in accordance with the requirements of his Lease (including without limitation all floor, wall and window coverings, all trim, base, hardware and other finish items), except for certain minor punch list finish items, such as' itallat of trim base in some areas, replacement of defective ailing tiles (if any) and retouching of painting, (b) the Premises are in a condition, in the reasonable j of the project architect, suitable for occupancy and the conduct of Tenant's use therso and (e) a certificate of occupancy for the Premises has been issued to Tenant rem ' nt a outstanding and all other legal requirements necessary to permit lawful occupancy and use of the Premises for Tenant's intended purpose have been fulfilled. 4.0 Chan Subject to Landlord's reasonable approval, Teibrit may from time to time require changes in the work referred to in this Rider. Landlord and Tenant shall mutually execute a change order with respect to any such changes. No c iange order shall (a) increase the Net Rent set forth in Section 5(b) of the First Amendment tc Lease or obligate Tenant to pay costs associated therewith, or (b) extend the time by whict the worst shall be substantially completed as required by Section 3 of this Rider unless La ifflord so states in such change order, provided that no such statement shall be binding on enam unless Tenant specifically accepts such statement in such change order and Landlord not execute such change order unless and until Tenant so accepts such statement If Tena at so accepts such change order, then within a reasonable time after substantial completion Tenant shall reimburse Landlord for the reasonable additional costs incurred in cone 'on with any such change order, but only to the extent that those additional costs exceed the funds appropriated • in the bond issue for the Additional Bonds. 5.0 Landlord Resp=ibilities with respect to the Expansion and the Common Area Improvements (and the construction thereof), Tenant shat not have any, and Landlord shall have all, responsibility for those provisions of this Lease dealing with the construction of the Expansion Premises and the Common Area Improvements, including .t not limited to Sections _. The entire risk of loss with respect to the on Premises id the Common Area Improvements portions of the Building shall be with andlord. 6.0 n Landlord shall permit Tenant and its repress Property at ail reasonable times after the date hereof. No inspection by person, and no approval or failure to reject any of the work shall waive obligation of Landlord to construct and complete the Property in ac= requirements of this Lease. 7.0 IFS Prior to the Expansion Date, Tenant shall its property and effects onto the Property and take other action nece& conduct its business at the Property. Such entry and action shall not 1 under the definition of the Expansion Date. g.0 Punch rte; Upon substantial completion, Landlord and " the work and identify any incomplete or non - conforming items of work 5(b) of the Lease. Landlord shall proceed expeditiously and with due d all Punch List items within a reasonable time after substantial completi< M139 26.Oi to inspa ne rant or any -h release the cc with du- e the right to move to be ready to titute occupancy shall inspect nt to Section t to complete L • -14- 1 • FROM FAEGAE k BENSON S. 20'98 2:16,ST. 2:07/N0.4261654497 P 16 fLA t KU Revised &4M LM 4.1 y ut . .t► LLl THIS FIRST AMENDMENT TO LEASE (hereinafter called the 'I is made and entered into this day of August, 1998 (the " '), by and between the City of Hutchinson, Minnesota, a Minnesota municipal corporation (the and Hutchinson Medical Center, P.A., a Minnesota professional corporation (the RECITALS A. Landlord and Tenant entered into a certain initial Lease (tl!►e "L&W") dated July 12, 1990, pursuant to which Tenant leased certain pre mes i g of mpg (imately 27,000 rentable square feet of space (the " ") " ildin¢ abutting, and at the southeast end of, the Hutchinson Comm anity Hospital (the "f j asyital '7. and more particularly described in the Lease. 0 B. Tenant desires more space at the Premises, and Landlord willing to construct an addition to the Building consisting of an additional 22,500 rentable soare feet of space, and remodel a substantial portion of the existing space, and to finance a same by issuing bonds. Tenant has agreed to lease such additional space from Landlord C. Landlord and Tenant desire to amend the Lease to WO - for such construction and remodeling, and the lease of the additional space fa, d to, Tenant, to provide for the rent payable for the additional space, and provide for other terms and conditions as described herein. NOW THEREFORE, for good and valuable consideration, receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree and covenitnt as follows: 1. MUtia 1. Capitalized terms not otherwise defined in this Amendment shall have the meanings set forth in the Lease. The following terms shall have the meanings set forth below: (a) Additional Bonds The taxable general revenue bonds to be issued by the City of Hutchinson, Minnesota (Series _ ) in connection with, and attributable to, the total costs of construction of the Expansion Premises, remodeling of the O Premises, and the Common Area Improvements, as further tbed in Article 3 of this Amendment. (b) Commou Area Improvements The modificati#' ns and improvements to the north wall of the Premises and the Common Area, as described in Section 3(c). 0 (c) Construction Rider As defined in Section 3(b� ;l— Z�:, i (d) Lamy arklnQ_L_o The existing surface parking loj on the East side of the Building, as depicted on Exhibit C. (e) EExpansionDate The date on which: (a) the construction of the Expansion Premises, remodeling of the original Premises, and Common Area Improvements are "substantially completed^ (as defined in the Construction Rider), and (b) possession of the Expansion Premises has been tendered to Tenant. (f) Eumsion Premises The approximately 22,560 r.ntable square feet of space to be constructed pursuant to Section 3, and as depicted on the sFte plan attached hereto as Exhibit A. (g) F=nanjjUp Tetra As defined in Section 4. (h) Modilled Premises The Premises plus the (i) Fpaion Plans and SciScations The con elevations, plans, and specifications for the construction and installal Premises and the Common Area Improvements, and the remodeling dated 1998, prepared by approved by Landlord and Tenant, together with such modifications thereto as are reasonably determined by Landlord to be necessary or Premises. ion drawings, the Expansion original Premises, . and and additions le for the is completion of said construction and installation; provided that Landlord) may not make any • material or substantial modifications or additions to the FF amp I Plans and Specifications without the prior written consent of Tenant, which may not be unreasonably withheld, conditioned, or delayed. In the event that Tenant fails to approve or disapprove of a modification or addition proposed by Landlord within ten (16) days written notice from Landlord to Tenant, Tenant shall be deemed to have approved such m ification or addition. A current listing of the E2mw ion Plans and Specifications is attached ereto as Exhibit B. (j) South Patlda¢_Lot The existing surface parking lot on the South side of the Hospital, as depicted on Exhibit C. (k) Unavoidable Oahu As defined in Section 11(c) (I) Lint of EXibits Exhibit A Site Plan for Expansion Premises Exhibit B List of fgpgqg�O and Scations kiti Lots Exhibit C Site Plan for South and East Par g Exhibit D Construction Rider - 2- 0 L J FROM FAEGRE & BENSON (THU; 9.20'99 2 17i ST. 2- O7:NO.4261654497 P 19 2, Confirmiktion of Lease Commencement ILe The Colencement Date of the Lease (as defined in the Lease) is hereby confirmed to be 1991. The date of expiration of the initial Term of the Lease is , � 3. Construction of Enansion Premises and Common Arun Improvements (a) Lugance of Bonds Landlord shall endeavor to issue taxable general revenue bonds to finance the rerriodelin&gLthe priWnal PremiseL construction of the Expansion Premises and Common Area Improvements, as further descried in this Section, in [an amount sufficient to fully finance the construction of the same] [a total amount equal to and /100 Dollars (b ) (the "Additional Bgndr')]. The issuance of the Additional Bonds is an express condition precedent to L obligations under this Amendment. (b) Construction of Expansion Premises Provided the condition precedent contained in Section 3(a) is satisfied, Landlord shall construct the Expansion Premises in accordance with the 'Q Puns and Specifications, an I pursuant to the terms of the construction rider attached hereto as Exhibit D (the "Cong gicrtion Rider'). • Landlord shall commence such construction on or about i ern and diligently pursue the same to completion. (c) Coogmalon of Common Area Improvements condition precedent contained in Section 3(a) is satisfied, Landlord shal wall between the Building and the Hospital and expand the Common A feet (tile " CQMawu Am& tlnM2VVn=t3 W WCU ea reM2del the o accordance with the Expansion Plans and Specifications, and pursuant t Construction Rider. Provided that the remove the North :a by 1,500 square terms (a) Expansion Term The term of the Lease with t to the Expansion Premises ("the E Term TTerm shall commence on the Expansion D e and expire [one- hundred eighty (180)] months after the Expansion Date, unless extend or sooner terminated • -3- CooSrmation Memo Within ten (10) days after the date that the actual Expansion Date is determined, Tenant and Landlord shall execute a confirmation • memorandum setting forth the actual Expansion Date, the total cost of th ' Expansion Premises, Common Area Improvements, and the remodeling of the ori ginal Premises, and such other information as Landlord may reasonably request. 5. Expansion Of Premises (a) On the Expansion Date, the Expansion Premises s 1 be added to the Premises. From and after the Expansion Pat the "Premis " as defined in the Lease shall mean. collectively. the original Premises plus the Expansion Nemises. E (b) c� From and after the Expansion Date: (a) the Tenant's " Pro Rata Share (as defined in Section 7.3 of the Lease) shall be and _ /100 percent (b) the Tenant's " Parkin g Share (as defined in Section 7.3 of the Lam) shall be and _/100 percent (_21o); and (c) the Building's Proportionate Shari shall mean the Pro Rata Share and the Parking Share. (a) Rent for Orippal Premises Tenant shall continue to pay Net Rent and all other amounts due under the Lease for the original Premises • -4- FROM FAEORE k BENSON r] (THU) 5.20'98 2: 19 /ST. 2: 07,'NO. 4261654497 P 20 (b) Rent for Enmion Prsmi . Commencing on the Expansion Date, and throughout the Expansion Tenn, Tenant shall pay a monthly Net Refit for the Expansion Premises to Landlord, in advance without notice, demand, setoff, or deduction, in equal monthly installments on the fast day of each month, as follows: I� y 1 � • _:_, . i Tenant shall continue to pay all other sums, charges, and costs (if any) wftich are due pursuant to the tams of the Lease including, without limitation, Additioo Rent. Net Rent for any partial month in the Expansion Tenn shall be prorated (c) Net Rent Adjustment The provisions of Section 5.4 of the Lease shall: (i) continue to be applicable to the cost of constructing the Buildh ig and the Premises (as to the Bonds), and (ii) also be applicable to the cost of the Expaffliov Premises, remodeling of the original Premises, and the Common Area Improvem (as to the Additional Bonds). 7. Extension Options Tenant shall retain the options to ex end the Term of the Lean contained in Section 4.3 of the Lease, tinder the terms and condi ' am described in that Section, except that: (a) Tenant may only exercise an option to extend the ern of the Lease as to the entire Modified Premises (i.e. Tenant may »93 exercise an option z extend as to the original Premises only). Any exercise of an option to extend as to only Oart of the Modified premises shall automatically operate as an extension as to the entire Mo I Wfied Premises. (b) If Tenant exercises its first option to extend the T of the Lease pursuant to Section 4.3 of the Lease, then the expiration date of the ext ded tam as to the Expansion Premises shall be adjusted so as to correspond to the expirati on date of the extended tam for the original Premises. (c) Etensim Net Rent [Section 4.3 of the Lease is hereby deleted to its entirety. During any n U _ nsion trertods the Net Recut for the MoAfted Premises shall be set according to the fair market value for the Modified Promises. At least six (6) months prior to -5- the expiration of the then Term (as extended), Landlord and Tenant shall meet and attempt to come to an agreement as to the current fair market value for the Mod(fled I Premises. If Landlord and Tenant have not reached agreement on the fair market Vail te at least one hundred twenty (120) days prior to the expiration of the then Term (as e#endec), then Landlord and Tenant shall each select a real estate broker having no le than ten (40)MI en (7 ) years experience in commercial leasing in the Hutchinson, Minnesot area Those two T will then meet to determine the fair market value at least at leas sixty (60) days prior . _. _ . . -- to the expiration of the then Term (as cannot reach agreement on fair market value, then market average 8. jLg The Modified Premises may be used only for the ' set forth in Section 8.1 of the Lease, or other ancillary an d support functions, such s office and administrative use. 9. Par al ' pg. (a) Use or Parkin e . From and after the Expansio Date, and during the Expansion Term (as extended), Tenant shall have exclusive use of 7 % of the South Parking Lot and 75% of the East Parking Lot for the use of Tenant's o cers, employees, patients, and invitees. Notwithstanding Article 24.16 of the Lease, Teu�t shall pay a rental to Landlord for use of the South Parking Lot in the amount of and /100 Dollars (S per year and for use of the East Parking Lot in the amount of and _ /100 Dollars (S ) per year, which rentals have been included in the Net Rent for the Expansion Premises. (b) Parking gaerating Costs Nothing in this St to prevent Landlord from collecting the Parking Operating Costs de the Lease from Tenant, including for the South Parking Lot and the r may be construed ed in Section 7.6 of Parking Lot. • • -6- • FROM FAEGRE & BENSON (THU; S. 20'96 2.20 /ST. 2:O7/N0. 4261654497 F 22 • 10. Default The following is added to Section 22.4 of the . "(g) Failure by Tenant to take possession of the ExpansionPremiscs within sixty (60) days after tender of possession of the Ex�a ion Premises by Landlord to Teneni.= I �ka 11. MiseeUsueoas ( Etf Rs In the event of any conflict is provisions the terms, provisions and covenants of the Lease and this Amc#dment, the terms, provisions and covenants of this Amendment shall supersede and gov the actions of the parties hereto. Except as expressly amended hereby, all other terms and conditions of the Lease shall remain unchanged and in full force and effect, and are ratifitd and confirmed in all respects. Tenant represents and warranu to Landlord that Tenant has no offsets, defenses or counterclaims to Tenant's obligations under the Lease. (b) Entire gMwent; MediGa► 'oo This Amendment contains the entire agreement and understanding of the parties hereto with respect to any matter mentioned heroin, and no prior or contemporaneous agreement or understanding pertaining to any such mattes shall be cffcctive. This Amendment may be modified only by a writing signed by the parties in interest at the time of the modification. (c) Unttvoidabk Delay Either party's failure to perform the terms and conditions of this Amendment, in whole or in part, other than any term requiring the payment of money, shall not be deemed a breach or a default under this Amendment or give rise to any liability of such party to the other if such failure is attributable to any unforeseeable event beyond such party's reasonable control and not caused by the ne igent acts or omissions or the willful misconduct of such party, including, without l flood, drought, earthquake, storm, pestilence, lightning, and other natural catastrophes and acts of God, epidemic, war riot, civic disturbance or disobedience, and act of the public enemy; fire, . accident, wreck, washout, and explosion; strike, lockout, labor disputed and failure, threat of -7- I i failure, or sabotage of such party's facilities; delay in transportation of cat shortages, or inability to obtain necessary labor, materials, components, equipment, services, energy, or utilities through such party's usual and regular sources at usual and regular prices; and any law, regulation, order or injunction of a court or governmental authority, I w I hethe� valid or invalid and including, without limitation, embargoes, priorities, requ>siti s, and allocations or restrictions of facilities, equipment or operations (each an ). If such an unforeseeable event occurs, the party unable to perform is required to promptly notify the other party. (d) Binding Effect on Succea WAasigns The rl and obligation of the parties under this Amendment shall be binding upon, and inure to tht benefit of, their respective successors and assigns. (c} Severs bility The invalidity of any provision of th is Amendment as determined by a court of competent jurisdiction and/or an arbitrator shat I in no way affect the validity of any other provision of this Amendment. (f) CaRfin The captions are inserted only as a m and for reference, and in no way define, limit or describe the scope of the intent or any provision thereof. (g) Counterva Faesimiles This Amendment m or more counterparts, all of which when taken together shall comprise facsimile copy of a signature shall be as binding as an original signatu IN WITNESS WHEREOF, Landlord and Tenant have executed First Atnendmetu to Lease as of the Effective Date. [Signature Page Follows] r of convenience Amendment nor be executed in two e instrument. A delivered this 0 • .& • FROM FAEGRE 3 BENSON 0 n U lTHU7 S. 20' 95 2:23, ST. 2:07/ P 24 SIGNATURE PAGE to FIRST AMENDMENT TO LEASE between CITY OF HUTCHINSON, MINNESOTA and HUTCHINSON MEDICAL CENTER, P.A. Dated August 1998 IA CTI By. An TE HI By /."r, VDLORD: Y OF HUTCHINSON, MINNE 30TA Its i By Its NANT: ITCHINSON MEDICAL CENT ER, P.A. Its J By Its -9- EXHIBIT A Site Plan for EaMion Em3 ses [To Be Attached] • -10- FROM FAEGRE k BENSON (THU) 8.20'99 2: 24/ST. 2:07/NO.426I654497 F 26 EXMIT B List of 1F.2W=ion Plans and Soccifi ions [To Be Attached] n U 0 -11- � � S �r_1, JI' J _ ■.� 20a [To Be Attached] rI L • -12- • FROM FAEGRE t BENSON (THU) S. 20'98 2:25: - ST. 2:O7/N0.4261654497 P 29 5.0 Landlord Responsibilities With respect to the Expansion . Common Area Improvements (and the construction thereof), Tenant sha Landlord shall have all, responsibility for those provisions of this Lease construction of the Expansion Premises and the Common Area Improve) realises and the not have any, and :sling with the ents, including but not limited to Sections _. The entire risk of loss with respect to the Expansion Premises and the Common Area Improvements portions of the Building shall be with Landlord. 6.0 j imxcfi gn. Landlord shall permit Tenant and its represen 'Yes to inspect the Property at all reasonable times after the date hereof. No inspection by errant or any such person, and no approval or failure to reject any of the work shall waive c r release the obligation of Landlord to construct and complete the Property in accor& nce with the requirements of this Lease. 7.0 Early Entry Prior to the Expansion Date, Tenant shall its property and effects onto the Property and take other action noes conduct its business at the Property. Such entry and action shall not t under the definition of the Expansion Date. g.0 Punch Lid. Upon substantial completion, Landlord and I the work and identify any incomplete or non - conforming items of work. S(bl of the Lease Landlord shall proceed expeditiously and with due di all Ptak lis dhoch U items within a reasonable time after substantial • , e the right to move to be ready to titute occupancy shall inspect to complete • -14- BOND SALE REPORT $4,350,000 Taxable Medical Facilities Gross Revenue Bonds, Series 1998A DRAFT El City of Hutchinson, Minnesota July 28, 1998 0 40 Ehlers & Associates, Inc. OVERVIEW This report describes the proposed plan for the City of Hutchinson to issue $4,350,000 Taxable Medical Facilities Gross Revenue Bonds, Series 1998A (the 'Bonds "). This report has been prepared by Ehlers & Associates, in cc ;ultation with City Staff and bond counsel. This report deals with: • Purpose and components of the issue. • Structure. • Other considerations in issuing bonds. • Market conditions. • Issuing process. PURPOSE The $4,350,000 Taxable Medical Facilities Gross Revenue Bonds, Series 1998A (the "Bonds ") are being issued under the authority of Minnesota Statutes, Chapter 447, to finance additions and renovations to the Hutchinson Area Health Care Medical Center. Financing these projects requires a bond issue in the amount of $4,350,000 consisting of the following sources and uses of funds: Sources Par Amount of Bonds Interest Earned $4,350,000 26,825 Uses Total Sources Total Project Costs Debt Reserve' Discount Allowance Capitalized Interest Finance Related Expenses Total Uses ' To be funded by the Hospital. $4,376,825 $3,930,000 0 84,825 328,000 34,000 $4,376,825 0 0 0 Page 2 0 SECURITY, STRUCTURE AND REPAYMENT The Bonds would be special obligations of the City of Hutchinson payable solely from gross revenues derived from the Hutchinson Area Health Care and do not constitute a debt for which the full faith and credit or taxing powers of the City are pledged. The Hospital currently has the following non - callable payments due on three of its outstanding issues: These maturities were not refunded earlier this year because they are non - callable, and the City could not have realized any savings by refinancing. Although these issues are general obligation debt of the City, they were structured and issued as hospital revenue obligations to reinforce the City's position that the Hospital would actually retire this debt. The revenue covenants under which these bonds were issued dictate how we must structure any new revenue bond issues. The existing revenue covenants pledge net income to make debt service payments instead of gross revenues. Gross revenue bonds are a stronger security and are better received by the market than net revenue debt. We recommend that the above outstanding issues be defeased to allow us to structure and sell this new revenue bond issue as gross revenue bonds. Our preliminary analysis shows the Hospital will need to put $498,434 into an escrow account to defease the $519,277.50 in future debt service payments. The escrow will defease the non - callable portion of the 1990 and 1991 issues and allow the gross revenue pledge on the new issue. The Hospital has agreed to fund the debt reserve required for these Bonds from funds on hand. We recommend that $250,000 be designated as the debt reserve and that Page 3 Date Maturitv of Issue Issue Date Payment 1990 53,150,000 G.O. Taxable Medical Facilities Revenue Bonds 02/1/99 594,140.00 1991 56,500,000 G.O. Medical Facilities Revenue Bonds 04/1/99 159,262.50 1991 S6,500,000 G.O. Medical Facilities Revenue Bonds 10/1/99 4,687.50 1991 S6,500,000 G.O. Medical Facilities Revenue Bonds 04/1/00 154,687.50 1990 53,125,000 G.O. Medical Facilities Revenue Bonds 02/1/99 3,250.00 1990 53,125,000 G.O. Medical Facilities Revenue Bonds 08/1/99 103,250.Q0 TOTAL S51 9,277.50 These maturities were not refunded earlier this year because they are non - callable, and the City could not have realized any savings by refinancing. Although these issues are general obligation debt of the City, they were structured and issued as hospital revenue obligations to reinforce the City's position that the Hospital would actually retire this debt. The revenue covenants under which these bonds were issued dictate how we must structure any new revenue bond issues. The existing revenue covenants pledge net income to make debt service payments instead of gross revenues. Gross revenue bonds are a stronger security and are better received by the market than net revenue debt. We recommend that the above outstanding issues be defeased to allow us to structure and sell this new revenue bond issue as gross revenue bonds. Our preliminary analysis shows the Hospital will need to put $498,434 into an escrow account to defease the $519,277.50 in future debt service payments. The escrow will defease the non - callable portion of the 1990 and 1991 issues and allow the gross revenue pledge on the new issue. The Hospital has agreed to fund the debt reserve required for these Bonds from funds on hand. We recommend that $250,000 be designated as the debt reserve and that Page 3 the revenue bond covenants under which these Bonds will be issued will require the Hospital to review the amount in the debt reserve every six months and replenish the reserve as required. The Bonds would be sold September 22, 1998 and be dated October 16, 1998. The first interest payment on the Bonds will be August 1, 1999, and semiannually thereafter on February 1 and August 1. Principal on the Bonds will be due on February 1 in the years 2001 through 2014. Bonds maturing February 1, 2008 and thereafter will be subject to prepayment at the discretion of the City on February 1, 2007 and any date thereafter. The projected debt service and flow of funds can be found in Exhibit I. The flow of funds assumes the doctors will make an additional lease payment of $39,000 per month starting November 1, 1999. The total lease payment would be $67,000 per month since the current payment is 528,000 per month. We are seeking authorization of up to $4,350,000 in Bonds. The feasibility of retiring this issue and other Hospital obligations is found in Exhibit 2. OTHER CONSIDERATIONS Following is a summary of other factors in the finance plan: • Bidders on this issue may submit a bid which contains a maturity schedule providing for any combination of serial bonds and term bonds, subject to mandatory redemption. If the purchaser of the Bonds designates certain of the maturities as Term Bonds, subject to a mandatory call, the City will be responsible for providing a Notice of Call to holders of the Bonds at least 45 days prior to the call date. We would recommend providing for a paying agent to provide the proper call notices to owners of the Bonds. Allowing potential purchasers the term bond option results in increased bidder interest in this issue and possible lower interest cost. • The Bonds would be global book entry with a bank designated as the paying agent. As "paperless" bonds, you will avoid the costs of bond printing and annual registrar charges. The Paying Agent will invoice you for the interest semi - annually and on an annual basis for the principal coming due. You will be charged only for paying agent/transfer agent services provided by the bank. • Because the Bonds are taxable, they are not subject to arbitrage rebate. The issuance of the Bonds will not affect the City's annual limit on bank qualified bonds or bonds eligible for the small issuer exemption from arbitrage rebate. Page 4 • We recommend that you do not request a credit rating for this issue but pursue bond insurance on these Taxable Medical Facilities Gross Revenue Bonds. • New regulations of the Securities and Exchange Commission on the continuing disclosure of municipal securities apply to long -term securities with an aggregate principal amount of $1,000,000 or more. Because the aggregate amount of this issue is over $1,000,000, and the City has more than $10,000,000 in total municipal obligations outstanding, you will be obligated to comply with Full Continuing Disclosure requirements as required by paragraph (b)(5) of Rule 15c2 -12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934. You will be required to provide certain financial information and operating data relating to the City annually and to provide notices of the occurrence of certain material events. The specific nature of the Undertaking, as well as the information to be contained in the notices of material events will be set forth in the Continuing Disclosure Covenants that you will enter into at the time of closing for the issues. You are responsible for reporting any of the material events listed below and in the Undertaking. • 1. Principal and interest payment delinquencies; 2. Non - payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit of liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax- exempt status of the securities; 7. Modification to rights of holders of the Securities; 8. Securities calls; 9. Defeasances; 10. Release, substitution or sale of property securing repayment of the Securities; 11. Rating changes; 12. Failure to provide annual financial information as required; and 13. Other material events. MARKET CONDITIONS The graph on the following page shows the trends in the Bond Buyer's 20 -Year G.O. Index (BBI) since 1990. Interest rates are near historic lows and mirror • conditions found several years ago. Page 5 Bond Buyers 20 -Year G.O. Index 7.50% 7.00% 6.50% 0 A 6.00% 5.50% 5.00% 4.50% 1990 1992 1994 1991 1993 1995 Ehlers and Associates 1996 1998 1997 0 • ISSUING PROCESS Following is a tentative schedule for the steps in the issuing process. August 25, 1998 City Council adopts resolution calling for the sale of the Taxable Medical Facilities Gross Revenue Bonds Week of September 7, Distribute Official Statement to underwriters and 1998 to bond insurance providers September 22, 1998 Bond sale Week of October 19, 1998 Bond closing (estimated) • N: WIINNSOTAUHUfCH\98DEBT%PRESALE. MED 1� Page 7 For Discussion Onty EXIMIT 1.00 City of Hutchinson, MN amble Medical Facilities Gross Revenue Bonds of 1998 54,350,000 1' $D Notos Current Shortfa I. Mcnlhly Lease Payment: S87,D00 Assumes New Lease Payments start on November 1, 1999 and are collected monthly until May 1, 2014. Assumes all payments due on February 1, 19" for the 1990 Issue and 1998 Refunding Issue are made from funds on hand and under current lease arrangement. Dated: 1011698 Bond years: 43.048.75 Intereat Stan: 08/01/99 Average Life: 9.89626 Discount 84,825.00 Awraga.Coupon: 7.19597% Not Interest Cost: 7.39301% 'repared by Ehlers and Associates 08/17/98 Net New 1 1998 T Total Total C Capitalized S Semi-Annual R Refunding S Semi-Annual L Lase S Semi- Annual F F PM P Principal 9 9ele I Interest P P k I I Inlery P Payments ) )yyp P Payments P P2vm*M a alliance Y Y.§K 10116/96 08/01/99 2 244,112.40 2 244,112.40 2 244,112.40 0 0 8 87,168 8 87,168 1 168,000 8 80,833 1 1999 02!01/00 1 154,176.25 1 154,176.25 6 63,887.60 7 70,289 2 212,168 2 282,456 2 285,000 2 2,544 06101/00 1 154,176.25 1 154,178.25 1 154,176 8 83,105 2 237,281 4 402,000 1 164,719 2 2000 02107101 1 190,000 6 6.45 1 154,176.25 3 344,176.25 3 344,176 2 218,105 5 562,281 4 402.000 ( (160,281) 08101/01 1 148,048.75 1 148.048.75 1 148,049 7 78,718 2 226,766 4 402,000 1 175,234 2 2001 02/01102 2 205,000 6 6.55 1 148.048.75 3 353,048.75 3 353,049 2 223,718 5 576,766 4 402,000 ( (174,766) 0601/02 1 141,335.00 1 141,335.00 1 141,335 7 74,005 2 215.340 4 402,000 1 186.660 2 2002 02101/03 2 220,000 6 6.65 1 141,335.00 3 361, 335.00 3 361,335 2 224,005 5 585,340 4 402.000 ( (163,340) 08/01103 1 134,020.00 1 134,020.00 1 134,020 6 69.130 2 203,150 4 402,000 1 198,850 2 2003 0201/04 2 235,000 6 6.75 1 134,020.00 3 369,020.00 3 369,020 2 229.130 5 598,150 4 402,000 ( (196,150) 0607104 1 126.088.75 1 126,088.75 1 128,0139 6 63,930 1 190,019 4 402,000 2 211,981 2 2004 D201105 2 250,000 6 6.85 1 126,086.75 3 376,088.75 3 376,0139 2 233,930 6 610,019 4 402,000 ( (208,019) D8101/05 1 117,526.25 1 117,526.25 1 117,526 5 58,405 1 175.931 4 402,000 2 228,069 2 2005 02MV06 2 270,000 7 7.00 1 117,526.25 3 387,526.25 3 387,526 2 238,405 6 625,931 4 402,000 ( (223,931) 08/01106 1 108,076.25 1 108,076.25 1 108,076 5 52,555 1 160,631 4 402,000 2 241,369 2 2006 02171107 2 290,000 7 7.05 1 108,076.25 3 398,076.25 3 398,076 2 242,555 6 640,631 4 402,000 ( (238,631) OBM1/07 9 97,853.75 9 97,853.75 9 97,654 4 46,333 1 144,186 4 402,000 2 257,814 2 2007 02MI108 3 310,000 7 7.10 9 97,853.75 4 407,853.75 4 407,854 2 251,333 6 659.186 4 402,000 ( (257,1 B6) 08101108 8 86.848.75 8 86,848.75 8 86,849 3 39,568 1 126,416 4 402.000 2 275,584 2 2008 02101/09 3 330,000 7 7.20 8 86,848.75 4 416,848.75 4 416,849 2 254,568 6 671,416 4 402.000 ( (269,416) 0601/09 7 74,968.75 7 74,988.75 7 74,969 3 32,419 1 107,388 4 402.000 2 294,613 2 2009 02/01/10 3 355,000 7 7.25 7 74,968.75 4 429,968.75 4 429,969 2 257,419 6 687,388 4 402.000 ( (285.388) 08/01/10 6 62,100.00 6 62,100.00 6 62,100 2 24,938 8 87,038 4 402,000 3 314,963 2 2010 02/01/11 3 380,000 7 7.30 6 62,100.00 4 442,100.00 4 442,100 2 269,938 7 712,038 4 402,000 ( (310,038) OB /01/11 4 48,230.00 4 48.230.00 4 48.230 1 16,791 6 65,021 4 402,000 3 336,979 2 2011 02/01/12 4 410,000 7 7.30 4 48,230.00 4 458,230.00 4 458,230 2 271,791 7 730,021 4 402.000 ( (328.021) 08171/12 3 33265.00 3 33,265.00 3 33,265 8 8,313 4 41,578 4 402,000 3 360,423 2 2012 0201113 4 440,000 7 7.30 3 33,265.00 4 473.265.00 4 473,265 2 258,313 7 731,578 4 402,000 ( (329,578) 08/01113 1 17,205.00 1 17,205.00 1 17,205 1 17,205 4 402,000 3 384.795 2 2013 0201114 4 465,000 7 7.40 1 17.205.00 4 482,205.00 4 482,205 4 482,205 4 402,000 ( (80.205) 08/01/14 0 0.00 O O.DO 0 0 0 0 2 268.000 2 268,000 E4 350 000 3,097,77365 7 447 773 65 3 328 000.00 7 7 119 773.65 4 4.120.750.00 1 11.240,523. 1 11,977.000.00 Notos Current Shortfa I. Mcnlhly Lease Payment: S87,D00 Assumes New Lease Payments start on November 1, 1999 and are collected monthly until May 1, 2014. Assumes all payments due on February 1, 19" for the 1990 Issue and 1998 Refunding Issue are made from funds on hand and under current lease arrangement. Dated: 1011698 Bond years: 43.048.75 Intereat Stan: 08/01/99 Average Life: 9.89626 Discount 84,825.00 Awraga.Coupon: 7.19597% Not Interest Cost: 7.39301% 'repared by Ehlers and Associates 08/17/98 'repared by Ehlers and Associates 08/17/98 Note: 1) Transfer of $435,989.69 from the ded sarvim Mot 2) The Revenue and E� numbers for 1996 M based m 1s1 Ouaner results. 0 Prepared by Ehlers and! Assooales 08/1758 For Dienesion City EX =IT 2.00 Hutchinson Area Health Care Slatement of Revenues 8 E> snsss 1996 1997 1996 1999 2000 2001 2002 2003 2004 2005 Pe Service / Resident Revers» Routine Services/ Resident Revenue 11,063.937 16,961,646 17,677.920 Other Professional Services 25.746,517 25,012.318 26.696.128 Total Rewus flan Patierss / Residents 36.810,454 41,973,964 44,374,048 Less: Aflovranuas and UrcdlerLbles (11- (14,327,773) (14,780,376) Less: Free Cara (38,578) (11,349) (34,968) Net Operating Revenue 25.563,435 27,634,842 29,558.724 Other Operating Revenue 147,860 151208 191,856 No Operating Revenue 365,670 552,796 415,348 Taal Re 26,076.965 28,338,844 30,165,928 Grose Revenue Bonds 1998 Taxable Hospital Gross Revenue Bonds 244.112 308.353 492,225 494,384 495,355 495.109 493,615 Total Gross Revenue Bonds 244,112 308,353 492,225 494,384 495.355 495,108 493,615 Gross Revenue Coversgs 123.57 9723 51.28 61.02 80.90 60.93 61.11 Revenue After Gmss Revenue Bonds 29 ,921,815 29, 857, 575 29 .673,703 29,671,544 29,670.573 29.670219 29.672,313 Operating Expanses salad" 11,549.588 12,705,027 12.907,060 Employee Benefits 2,310.336 2,592.323 2,830,648 Prolessiaml Fees 1,226.166 1,465.106 1,921,194 Medical Fees 1,454,363 1,720,883 1,921.184 UBlibes, Mlnca, Contracts, d Repairs 1,203,911 1,366,233 1,471,000 Food, Drugs, B Supplies 3,430,238 3,748,341 3,396.876 Other bpenses 850.855 929,607 1,254.292 Minnesota Caro 198,598 257,203 159.692 Bed debt 373.252 402,959 318,776 Deprecation 1,302,035 1,361,993 1,617,520 W nifing Ekes 23.899.344 26.549.675 27.798.232 27.798232 27.798.232 27.798232 27.798232 Z7.798.232 27.798,232 27.796232 R rue After Operaug Epimses 2,177,621 1,789,169 2,367496 2,123,584 2,059,343 1.875,471 L873,312 1,872.341 1.872,587 1,874.081 Prior Period AQtustrnens 717.586 AMOUNT AVAILABLE FOR DEBT SERVICE 2,895,207 1,789,169 2,367,696 2.123,584 2,059.343 1,875,471 1,873,312 1,872,341 1,872,587 1,874,081 Debt Service 1990 G.O. Mad. Feplities 276,553 276,593 107,580 106,500 1998 G.O. Mod. Faolities Refunding 65,807 131,130 240,470 239,970 244250 248,090 246,490 249,670 1990 G.O. Taxable Mod. Facilities 357,794 356,231 87,800 98 -1BO 1998 G.O. TAB a Mad. Facilities Ref ndlrg 101,737 256,935 295.273 296,623 297.723 293.135 293.060 292.335 1991 G.O. Mod. Facilities 454231 454-131 147,275 163,950 154,688 1998 G.O. Mad, Facilities Refunding 224,157 327,188 330,903 476,410 488.313 479,800 495,190 480238 1) Cash Contribution for 1998 Relun3rg Wuss 435.990 Total Debt Samna 1,088.578 1,087,055 1,170,345 1,OB3963 1,021,333 1,013203 1,030285 1,020,825 1,034,740 1,022143 Coverage of General Obligation Debt 2.66 1.65 2.02 1.96 2.02 1.85 1.82 1.83 1.81 1.83 Note: 1) Transfer of $435,989.69 from the ded sarvim Mot 2) The Revenue and E� numbers for 1996 M based m 1s1 Ouaner results. 0 Prepared by Ehlers and! Assooales 08/1758 Resolution No. Council Member introduced the following resolution and moved its adoption: Resolution Providing for the Sale of Up To $4,350,000 Taxable Medical Facilities Gross Revenue Bonds, Series 1998A A. WHEREAS, the City Council of the City of Hutchinson, Minnesota, has heretofore determined that it is necessary and expedient to issue an amount up to $4,350,000 Taxable Medical Facilities Gross Revenue Bonds, Series 1998A (the 'Bonds "), to finance the construction of additions and renovations to the Hutchinson Area Health Care Medical Center, and B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Minneapolis, Minnesota ( "Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of City of Hutchinson, Minnesota, as follows: 1. Authorization: Findings The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds and to reduce the size of the issue, if necessary. 2. Meeting: Proposal Opening The City Council shall meet at the time and place to be specified in the Terms of Proposal for the purpose of considering sealed proposals for, and awarding the sale of the Bonds. The City Administrator, or designee, shall open proposals at the time and place specified in such Terms of Proposal. 3. Bond Sale Report The terms and conditions of the Bonds and the sale thereof are fully set forth in the 'Bond Sale Report" attached hereto and hereby approved and made a part hereof. 4. Official Statement In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by City Council Member and, after full discussion thereof and upon a vote being taken thereon, the following City Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this day of , 1998. City Administrator (SEAL) 0 The Construction Organization August 14, 1998 Mr. Phil Graves, President Hutchinson Area Health Care 1095 Highway 15 South Hutchinson, Minnesota 55350 Re: Hutchinson Medical Center Guaranteed Maximum Price. Dear Mr. Graves: Minneapolis Office 700 Meadow lane North P.O. Box 710 (55440 -0710) Minneapolis, Minnesota 55422 -4899 Telephone: (512) 522 -2100 Facsimile: (612) 520 -3430 Please accept this letter as our Guaranteed Maximum Price (GMP) for the addition and renovations for the Hutchinson Medical Building Project. This GMP for the construction costs is • only based upon the Phase I bid documents and preliminary information regarding Phase II interiors, mechanical and electrical provided by Horty Elvin¢ and Associates on July 30, 1998 described as a design development project manual for the Hutchinson Medical Center. The GMP is X3.600,000.00. We believe that the costs may exceed this number and we also predict that this umber will require some value engineering after final bids are received on Phase II in early October 1998. This value engineering will require a team effort by the Contractors, Owner and Architect to maintain the GMP. If you should have any questions or comments, please feel free to contact me. Yours Truly, Patrick T. Barnett Project Manager Minneapolis Grand Rapids Seattle Los Angeles San Francisco Dallas Denver Colorado Springs Honolulu Milwaukee Wausau M A MORTENSON 9 1 612 287 5430 08/19/98 14:4715 :02/02 140:239 AdhL T7r Cwufr�nTioa (1.Igrnilatiun� — August 19, 1998 Mr. Phil Graves Hutchinson Area Heahh Care 1095 Highway IS South Hutchinson, Minnesota 55350 Re: Eartiwork Md Award Dear Phil: Mfmasposs OBba 700l ,, Lana Nom P.O. am 710 (ss"Odrto) Minn"PO . Mkvataota %M-48se TfbPhona: (612)&U-2100 Faeskn": (512)520-3430 After reviewing the scopes of the three low bidders for the Phase I Bid Category Number One Earthwork section dated July 30, 1998 we have the following comments: Reitman RY Bid �^ n: ^ -- Mr. Rottman indicated by phone on August 4, 1998 that he did not include the existing building demolition in his bid and that he may not have had all of the bid documents from • Horry Elving & Associates- Mr. Reitman did not have access to the soil teats eyed reports. Finally, the bid form submitted by Mr. Rettntan on July 30, 1998 was for excavation only which by description was only a portion of the Bid Category Number One scope description for Earthwork; building demolition; site demolition and cleaning; site utilities NW foundation drain tile. Raney Contra =•tine t� Bid c65 77? ^� Remers scope appears to be complete per the Bid Cate description. Bony Number One scope Julian M. J Ins Bid S67,227 Jdescr ms mope appears to be complete Per the Bid Category Number One scope At this time it would be our recommendation that the award go to the #2 bidder Reiner Contracting. If you should have any questions or comments please feel free to contact us. Yours truly, Pte Barnett Senior Project Manager Minneapolis Grand g Maples Seattle Los An eiea Denver Colorado Springs Honolulu Milwaukee Fr Wausau Dallas G. HUTCHINSON NIEDICAL CENTER PHASEI PROPOSED ACCEPTED BIDDERS SUMNIARY AUGUST 6, 1998 BID CATEGORY 91 EARTH WORK (Unresolved) Use 92 Bidder Reiner: S65.727 Low bidder Reitman did not include the building demolition and had no soil borings. Mr. Rettman is reviewing his scope to see if he can perform the work for his bid price and will notify Atonenson by 8-12-98. BID CATEGORY 92 CONCRETE Use Schatz Construction: 5245,500 Has complete scope and with Deis Masonry bid combination is lower than Stellars combination. BID CATEGORY 93 STRUCTURAL PRECAST Use Spancrete: $125.500 Scope is O.K. — schedule could be a problem if award is delayed beyond 9 -1 -98. BID CATEGORY 94 ARCH PRECAST Included in Category m5 (Deis) -0- BID CATEGORY 95 NLASONRY Use Deis Construction: 5251.700 Scope is O.K. — Includes Arch Precast B.C. °4 BID CATEGORY #6 NIETALS. STRUCTURAL Use Berghs: 581.650 • Berghs did not include Addendum Rl in bid — is reviewing and will verify impact by 3- 12 -98. Fab and delivery schedule is a problem if awarded later than 8- 13 -98. Includes bid category 1- - 7 Misc \Metals. BID CATEGORY 47 NIISC. IVIET.ALS (Included in BCm6) -0- BID CATEGORY 98 WATERPROOFING Use Kramer Davis: 57,315 Scope O.K. (Only Bidder) BID CATEGORY #9 ROOFING & FLASHING Use Schwickerts: 535.700 Scope O.K. BID CATEGORY 910 SEALANTS Use seal treat: S3,200 Scope O.K. BID CATEGORY 411 WINDOWS. ENTRANCES Use Minneapolis Glass: 539,050 Ldng lead schedule (6 months) but scope O.K. Total all Phase I proposed accepted bidders 5855,342 April 98 Schematic Budget (MAIM) Difference — (over budget) 828.260 $27,082 BID TABULATION • $1,495,000 General Obligation Improvement Bonds, Series 1998 City of Hutchinson, Minnesota SALE: August 25, 1998 AWARD PIPER JAFFRAY INC. RATING FSA Insured (Moody's Investors Service "Aaa')' BBI: 5.09% NET TRUE NAME OF BIDDER RATE YEAR PRICE INTEREST INTEREST COST RATE PIPER JAFFRAY INC. Minneapolis, Minnesota NORWEST INVESTMENT SERVICES, INC. Minneapolis, Minnesota • CRONIN & COMPANY, INC. Minneapolis, Minnesota SALOMON SMITH BARNEY Chicago, Illinois JOHN G. KINNARD & COMPANY, INC. Minneapolis, Minnesota DAIN RAUSCHER INCORPORATED Minneapolis, Minnesota 'FSA insurance purchased by Piper Jaff ray Inc. • EHLERS 8 ASSOCIATES INC 4.20% 2000 -2008 4.25% 2009 4.15% 2000 -2005 4.20% 2006 4.25% 2007 4.30% 2008 4.35% 2009 4.20% 2000 -2007 4.25% 2008 4.35% 2009 4.20% 4.25% 4.30% 4.35% rya Br. r� of. r�• 4.25% 4.30% 4.35% 4.40% 2000 -2006 2007 2008 2009 $1,478,555.00 $1,478,555.00 $1,478,711.50 $1,478,555.00 $1,478,555.00 ' 001 •r$ $401,952.50 4.4131% 4.4221% $402,619.33 4.4305% $403,775.83 4.4431% $408,345.00 4.4933% L E A D E R S IN P U B L I C F I N A N C E 3060 Centre Pointe Drive, Roseville, MN 55113-1105 651.697.8500 fax E51 697.8555 www.ehlers inc.com • • • Final City of Hutchinson, MN General Obligation Improvement Bonds of 1998 $1,495,000 Less: Total Total 105% $1,086,218.00 Remaining Existing New Fiscal Date Principal Halt Interest RAI Annual Annual Spec. Assess, New Debt Debt Total Debt YM 10/01/98 08/01/99 52,377.08 52,377.08 02101/00 60,000 4.20 31,426.25 91,426.25 143,803.33 150,993.50 156,559 (5,565.10) 1,741,700 1,736,135 1999 08101/00 30,166.25 30,166.25 02/01/01 100,000 4.20 30,166.25 130,166.25 160,332.50 168,349.13 151,765 16,584.21 1,671,900 1,688,484 2000 08/01/01 28,066.25 28,066.25 02101/02 160,000 4.20 28,066.25 188,066.25 216,132.50 226,939.13 146,971 79,967.89 1,446,900 1,526,868 2001 08/01/02 24,706.25 24,706.25 02/01/03 175,000 4.20 24,706.25 199,706.25 224,412.50 235,633.13 142,178 93,455.57 1,322,900 1,416,356 2002 08/01/03 21,031.25 21,031.25 02101/04 175,000 4.20 21,031.25 196,031.25 217,062.50 227,915.63 137,384 90,531.75 1,216,900 1,307,432 2003 08/01/04 17,356.25 17,356.25 02/01/05 175,000 4.20 17,356.25 192,356.25 209,712.50 220,198.13 132,590 87,607.93 1,118,200 1,205,808 2004 08/01/05 13,681.25 13,681.25 02/01/06 300,000 4.20 13,681.25 313,681.25 327,362.50 343,730.63 127,797 215,934.11 872,300 1,088,234 2005 08/01/06 7,381.25 7,381.25 02/01/07 100,000 4.20 7,381.25 107,381.25 114,762.50 120,500.63 123,003 (2,502.21) 1,055,900 1,053,398 2006 08/01/07 5,281.25 5,281.25 02101/08 125,000 4.20 5,281.25 130,281.25 135,562.50 142,340.63 118,209 24,131.47 364,700 388,831 2007 08/01/08 2,656.25 2,656.25 02/01/09 125,000 4.25 2,656.25 127,656.25 130,312.50 136,828.13 113,415 23,412.65 160,600 184,013 2008 $1,495,000 384,455.83 1879455.83 1,879,455.83 16,445.00 Discount Allowance Notes 400,900.83 Total Interest Cost 452,450.83 Projected Total Interest Cost $51,550.00 Savings Dated: 10/01/98 Bond Years: 9,138.33 Interest Start: 08/01/99 Average Life: 6.11260 Final P_roiected Discount: 16,445.00 Average Coupon: 4.20707% 4.77117% Not Interest Cost: 4.38702% 4.95113% True Interest Cost: 4.41318% 4.96941% Preoared by Ehlers and Associates 08/25/98 Bond Index 08/20/98 11:54 ET REF; N0008174.0000 RAMS T0;3202344240 Pape 1 of 2 ATtN: Mr. Kennith Merrill Hutchinson, MN • MOODY'S ASSIGNS Baal RATING TO HUTCHINSON, MN $1,495,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1998 Hutchinson (City of) MN Municipality Minnesota Moody's Rating Issue Rating General Obligation Improvement bonds, Series 1998 Baal Sale Amount $1,500,000.00 Expected Sale Date 08/25/98 Rating Description General Obligation NEW YORK, August 20, 1998 -- Moody's Investors Service has assigned a Baal rating, with a stable outlook to Hutchinson's $1,495,000 General Obligation Improvement Bonds, Series 1998 due to the city's high debt burden, which has significant support from non -levy sources, a steadily growing tax base, and a satisfactory financial position. HIGH DEBT BURDEN HAS SIGNIFICANT SUPPORT FROM SPECIAL ASSESSMENTS; AGGRESSIVE PAYOUT: abt burden, at 7.22 is more than twice the average for similarly sized cities. Direct debt at 4.02 is also high and does not include self- supporting hospital debt. Moody's expects the city -owned 66 -bed hospital to continue supporting hospital general obligation debt due to demonstrated market demand and the hospital's alliance with Allina Health System, a major multi - hospital system located in the Twin Cities. While debt service claims nearly a third of the operating budget, Moody's expects that debt load will continue to be manageable given heavy support for general obligation debt by special assessment revenues. Payout is aggressive at 922 within ten years. The city is expected to borrow $2 to $3 million next year to fund annual infrastructure projects. In September 1998 the city will request voter support for a 1/2 cent sales tax and $5 million in bonds for an ice rink, senior center and conference center for which $1 million in state funds was approved by the 1998 Legislature. MOODY'S EXPECTS CONTINUED TAX BASE GROWTH DUE TO EXPANSION OF EXISTING BUSINESSES AND DEVELOPMENT OF ANNEXED LAND: Steady growth in taxable valuations, averaging 8.82 annually since 1992, reflects residential and commercial development as well as property appreciation. Full value per capita is $36,651 based on 1997 population estimates. Moody's expects continued growth due to planned expansions, as well as ongoing development of land annexed over the past several years. The city's local economy includes two relatively large employers, 3M and Hutchinson Technology, which comprise almost 102 of the city'a valuation and 282 of the county'a labor force. Hutchinson Technology is currently expanding its Hutchinson campus and may bring an additional 400 employees to the area. Dayton Hudson recently announced plans to locate a Target store in a new r111 shopping strip recently annexed into the city. wealth indices for the city are moderately below state averages. SATISFACTORY FINANCIAL POSITION: Financial position is satisfactory, evidenced by a General Fund balance at year -end 1997 of 23.6% of revenues. The city levied the maximum amount permitted within the tax levy cap imposed by the 1997 legislature and plans similar action in 1999. The 1998 budget is balanced. City officials indicate plans to increase the General Fund balance in 1999 to offset two years of unanticipated operating deficits experienced in 1996 and 1997. ANALYSTS: Patricia South, Analyst, Public Finance Group, Moody's Investors Service Dianne Golub, Backup Analyst, Public Finance Group, Moody's Investors Service Nicole Johnson, Director, Public Finance Group, Moody's Investors Service CONTACTS: Journalists: (212) 553 -0376 Research Clients: (212) 553 -1625 • Maj�� HUTCHINSON PET HOSPITAL 146 MAIN ST. NORTH • HUTCHINSON, MINNESOTA 55350 AUG 2 51998 ",.. aI .NSON Mr. Gary Plotz City of Hutchinson City Center 111 Hassan Street SE Hutchinson, Minnesota 55350 -2522 Dear Mr. Plotz: Hutchinson Pet Hospital located at 146 Main Street North needs to expand our building. We realize that we are in the 100 Year Flood Plain. We have been informed that here is no money for us in the Voluntary Flood Grant Program like we had hoped for. Without the Voluntary Program the plans for our expansion and remodeling are very limited, if not totally impossible, given the entire flood proofing regulations as discussed with City Officials. We are aware that the DNR has a funding program in which the property can be purchased with 508 funding from the DNR and the 508 funding from the City of Hutchinson to purchase our property from us. We are very willing to sell our property and the only way possible would be through this program. At this time we would like the City Council to seriously consider this . request for funding so we can relocate. If you have any questions, please do not hesitate to contact us. ally, CHINS N PET HOSPITAL CURTIS E. R ITER, DVM )ANEL M. REITER CC: Marlin Torgerson, Mayor City Council Ken Merrill, Treasurer Robb Collett, DNR 11 I � INTER OFFICE MEMO Date: August 25, 1998 To: Mayor & City Council From: Marilyn J. Swanson, Administrative Secretary Mitch Elke has purchased the former Rick's Cast -Away building and intends to open his business, known as Hutchinson Outpost Inc., the first week in September 1998. He also owns the Darwin Outpost Inc. Attached is his application for a tobacco license, and I request its approval. Attachment y - -, ... a t . .. Hutchinson 6tate of At mgotaf ... . .. ..._ City ................... ................... ....... . ............ -0� County ..... 2 ..... ............. .4ppUcation, No. ................. ............................... Application for License to Sell Cigarettes at Retail The undersigned resident. of the.. ............. ... City .. ... .... ...... --- .. ............. of ............. Das.s.el. . ...... .. .............. ... I in the county of.. ...... . Xe.ekP ..... ............. -- ............................ State of Minnesota, HEREBY AMICE .4PPLIC.1- TIOX FOR LICENSE to be I ssue d t o... ............. M.i,t..c.h ..... E-I.k..e.. ................................................................... to sell cigarettes and cigarette papers and wrappers at retail at.X.d ...... (Hutchinson) ........... . ........... ..... .. ................... ............ ........................... .... .... .............. - ... ......... in the.. ............... .......... of ........... )Hutchinson .................................. ......... In said county and state for the term of -.....four, ... m.o.n.t.h.s . .. .... I ....... - ................. beginning with the ..... Is.. ................. day of _ ... .. ... ......... 19...9$.., subject to the lazva of the State of Minnesota and the ordinances and regulations of said C ................................ 4 ............ ... ........................... ......................... pertaining thereto, and herewith deposit OLO $ - ................ in payment of the fee therefor. Dated, ...... .............................. 19 ............... . 5bo . ... L, .... .... ......... .. ........... I ...... .. ..... .......... .... ... . r " 7D.- -... .... / 0 REVISED COPY ORDI ► / ' SERIE PUBLICATI / AN ORDINANCE AMENDING SECTION 2.58 OF THE HUTCHINSON CITY CODE ENTITLED "HOSPITAL AND NURSING HOME BOARD" BY DELETING CERTAIN LANGUAGE T HERE AND ADOPTING BY REFERENCE, CITY CODE CHAPTER 1 AND SECTION 2.99, WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS. THE CITY OF HUTCHINSON ORDAINS: Section 1. City Code, Sec. 2.58, entitled "Hospital and Nursing Home Board" is hereby amended as follows: Subd. 1. Establishment and Composition. A Hospital and Nursing Home Board (the (`Board ") is hereby established. The Board shall be composed of seven members, one of whom shall be the Chief of the medical staff of the Hospital and one of whom shall be a member of the City Council appointed annually. The medical staff representative shall serve a two year term. The remaining five members of the Board (the "Elected Directors ") shall each serve for a term of four years with the terms of each such elected directors to begin and expire as follows: one director whose term shall expire of December 31, 1995, two directors whose terms shall expire on December 31, • 1997 and two directors whose terms shall expire on December 31, 1998. At all times, a majority of the directors shall be residents and qualified voters of the City. Prior to the expiration of the term of an Elected Director, his or her successor shall be nominated by the Mayor with the consent of the City Council. Tile 11UL11i1MtiUL1 S! the Bowd of Dizectois of LifeSpan (The vvith the consent of the council, nimH promptly stibinit newnOlnindtiUrrb to the H&Span Dowd, then exphing, piovided, hUWeVeL, thZ1 if the hifeSpan Board fads to elect a successo, fival QJHong the ffist, second mid third irmninces, then thC NfR %vith the consent of the eity eouncil, Inay elect the successo, to the Elmted Dfiectoi whose term is then expiting provided that the Hospital's Subd. 2. Power and Duties. Subject to the provisions of Subdivision 5, the Board shall have full and exclusive control and management of any hospital and/or nursing home owned by the City, and all hospital or nursing home grounds and appurtenances thereto and all apparatus, equipment and material of every nature used in the operation of said hospital and/or nursing home.. The Board shall adopt all necessary Hiles and regulations for their own guidance and • for the proper management and operation of said hospital and nursing home and for the admission of patients and/or residents thereto. The Board shall approve a budget which includes the fees and 4 - / ,� C4 charges for all hospital and/or musing home services, all of which shall be made available to the Council following adoption. It shall be the duty of the Board to see that all fees and charges becoming due to said hospital and/or musing home are properly collected. The Board may contract is and purchase all necessary equipment, apparatus and supplies; provided, however, that any single capital item of purchase of $15,O .00 $25.000.00 or more shall first be approved by me Council. 1. C h l e f E xecu ti ve O and Ot her Emp l o yees. t o serve as th e Chi E xecut i ve officer and t o be d .M 1 representat t he mana o t he H osp it a l and N urs i ng \ II T he Board sha 1 powc. to remove th 1 • 11 LI 1 - III n: !1 .•• •• : • +. • i.._.1_: 1 1 11 \ 1 • 1 1 1 • \ • �\ • 1 : • : 1 • 1 1 1 1 '..Y.\ P..! . J! ! . {I 1 HI. �.•1 ' W. I L A... ••.n .nw .. • n 1 . '.n 1 • 1 0l .n . u'.1 .0 • • w • .r ..Il ll. r.r • •• 1 .1.'til • I li N 11 . '-•1 • •• • ••.. . ..•..1 • 1 . .. 1 • 1 .w . . .11 . . n .1 • .. • • n n • . . . . • . • . • 11 ... col • 1 11 M � . 1 � .1 � • 11 ..1 '. . .1 1 .'• 1'. .111 . 1:.1 r,lw ..l• 1 • .1' .H.r•1 .• • .I.. • . -11 . • •I •.'... .1...11 .1 Subd. 4. Funds, Accounting and Payment of Accounts. • A. All earnings of the Hospital and/or nursing home together with all contributions and other funds procured for the maintenance and improvement of the Hospital and/or nursing home shall be turned over to the Hospital and/or nursing home fund except as otherwise directed by the Council. Disbursements from this fund shall be made only by check signed by the Chair Person of the Board and Secretary or, if the disbursement is made in payment of principal on bonds or interest on bonds issued for Hospital and/or nursing home purposes, pursuant to an order approved by a majority of the members of the Council. B. The Board shall keep an accurate record of all monies received and disbursed from the hospital fund and of all outstanding credits and liabilities of the Hospital and/or nursing home. The fiscal year of the Hospital and/or nursing home shall commence on the first day of January each year., The books, accounts, and funds of the Hospital and/or nursing home shall be audited in the same manner as all other funds of the City. The Board shall render to the Council, a monthly operating statement following the regular monthly meeting of the Board. Subd. 5. Corporate Affiliation. A. The Board is Board; shall have the ffilioming ights and Urdy the fbilowin i (in addition to the tight to efem authorized to enter into a management ............... contract with Allina subject to approval of the management contract by the City Council MW Subd. 6. Names. The nursing home shall continue to retain and use the name of "Burns Manor," and the Hospital shall continue to use the name "Hutchinson Community Hospital' and together the two entities shall be known as "Hutchinson Area Health Care," and no changes in the names shall occur without the consent of the City Council. Section 2. City Code Chapter 1 entitled "General Provisions and Definitions Applicable to the Entire City Code Including Penalty for Violation' and Section 2.99 entitled "Violation a Misdemeanor" are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Section 3. This ordinance shall take effect upon its adoption and publication. Adopted by the City Council this day of August, 1998. • Mayor Attest: City Administrator Published in the Hutchinson Leader on: First reading: Second reading: I'•: jOPEN -HOLD COUNCIL REPORT 25- AUG- 1998page 1 --- --- ----------- 1980 TIDS --- -------- - - -- -- _-- _- JOHNSON, LEONARD G. - -____ SEPT PAYMENT _------____--___ $812.76 - < *> $812.76* 0 7 IMPR. CONST DAKOTA RAIL INSTALL CROSSING AT 5TH AVE $25,268.99 MN DEPT OF TRANSPORTATION DRAWING REVIEW, ENGINEERING $609.81 SEH PROFESS SERV -MAIN ST SIGNALS $615.09 w < > $26,493.89* 1997 IMPROV. D.S SCENIC HEIGHTS INVESTMENT 1997 DEBT SERVICE $543.28 w < > $543.28* CENTRAL GARAGE BRANDON TIRE CO TIRES, STEMS, MOUNT /DISMNT $949.72 FORBES AUTO PARTS, LABOR -SQUAD #3 $130.95 HARPER BROOMS OIL RECOVERY MOP $28.61 HUTCHINSON WHOLESALE GASKET, CLEANER $72.37 JERRYS TRANSMISSION TRANSMISSION REPAIR -78 MACK $2,008.87 L & P SUPPLY CO BOLTS, WASHER $5.27 MID CON SYSTEMS INC MECHANICS FRIEND +, MULTI PEN $121.69 MODERN MAZDA VEHICLE TOW $17.04 PLOWMANS PARTS, LABOR -BUS #3 $67.34 SORENSEN FARM SUPPLY HITCH $70.02 TOWN & COUNTRY TIRE FRONT END ALIGN -1996 FORD #2 $43.20 W.D. COOLING CLINIC CLEAN & REPAIR RADIATOR $67.80 < *> $3,582.88* GENERAL FUND A -1 BIKE SHOP INSTALL TUBE $3.50 ALLIED SERVICES OF HUTCHINSON PLEATED FILTERS $183.81 AM.WELDING SUPPLIES WELDING SUPPLIES $16.99 B & B SPORTS MATERIALS, LABOR $73.70 BAUERLY BROS INC. SLAB W/ AIR $1,085.45 BIG BEAR PARTS - GROOMER WHEEL $20.22 BRAUN INTERTEC CORP PROFESS SERV THRU 8/7/98 $271.08 BUSINESSWARE SOLUTIONS BLACK INKJET $55.19 CADD /ENGINEERING SUPPLY COLOR BOND INKJET $148.19 CAMERA SHOP DEVELOP & PRINT $39.97 • CENTRAL GARAGE CHAMBER OF COMMERCE AUG VEHICLE RENT HACC MEMBERSHIP- POLICE DEPT $13,671.00 $80.00 CHAMPION AUTO SEATBELT COMFORTER $14.87 CHASEBURG MANUFACTURING INC BURSH SET, SCRUSHER $34.03 CHRISTENSEN PIANO SERVICE SET PITCH $65.00 CITGO JULY CAR WASHES $32.67 CITY OF GLENCOE 3RD WAVE SAFE & SOBER $1,206.18 COAST TO COAST PAINT SUPPLIES $266.59 COMM TRANSPORTATION SEPTEMBER HANGAR LOAN PYMT $700.00 COMPRESS AIR REPAIR KIT, LABOR $93.90 DAKOTA CTY TECHNICAL COLLEGE SEARCH & SEIZING COMPUTERS $240.00 DEPT NATURAL RESOURCES DNR FEES TO STATE $514.00 DEPUTY REGISTRAR #34 REG- MARILYN HED $20.00 DJ'S MUNICIPAL SUPPLY RAKE, BRUSHES $98.41 EARL ANDERSON ASSOC TRAFFIC SIGNS $660.41 ELECTRO WATCHMAN QUARTERLY CHARGE $603.86 ERLANDSON, DAVID HELMET COVERS, BELT EXTENDERS $87.83 EVESLAGE, JOE TOURNAMENT WORK $42.00 FALLON, JAMIE PARTIAL REFUND OF LEAGUE FEES $100.00 FASTENAL COMPANY HARD HATS $27.32 FENSKE'S STUMP REMOVAL STUMP GRINDING $112.46 FORESTRY SUPPLIERS TAGS, NAILS $22.30 GENERAL OFFICE PRODUCTS PROJECTION LAMP $90.95 GLAESER, CHERYL REFUND - CANCEL TACKLE FOOTBALL $25.00 GOPHER SIGN CO TRAFFIC SIGNS $118.28 GRINA, LISA REIMB - DISKS, POST -IT'S, TAPE $7.96 HANSEN GRAVEL 3 YDS GRANITE SAND $97.92 HARPER BROOMS BRUSH, HANDLES $44.71 HAVE TREES WILL TRAVEL MOVE & REPLANT TREES $118.75 HCVN -TV DUB COPPS TAPES $17.68 HENRYS FOODS INC CANDY, SUNFLOWER SEEDS $297.48 HILLYARD FLOOR CARE / HUTCHINSON TOWELS, TISSUE $411.54 HUTCH FIRE & SAFETY EXTING RECHARGE $9.48 HUTCH FIRE DEPT RELIEF ASSC. 1998 BUDGETED FUNDING BY CITY $19,000.00 HUTCHINSON AREA HEALTH CARE 97 -98 FLEX SERVICES $357.00 HUTCHINSON LEADER CASE INVENTORY DATA $214.60 HUTCHINSON UTILITIES JULY GAS & ELEC $13,643.62 r � L J /o - A SPEN -HOLD COUNCIL REPORT 25- AUG- 1998page 2 ----- - - -___ GENERAL FUND __________________________________________ JIM'S GARDEN SERVICE _________ __ _____ MOWING CHARGES __ ______ _______ $969.16 KELLY, LEROY UMPIRE GAMES $80.00 $165.28 KIMBALL, KYLE HOURS WORKED $22.00 $334.19* • KLOSS, TOM REIMB- MEALS, LODGING $88.11 $238.78 L & P SUPPLY CO PLUG, CARIB KIT, HEAD ASSY $257.82 $193.44 LADE, BRYAN PARTIAL REFUND OF LEAGUE FEES $100.00 $62.91 LANG'S OLD FASHIONED MEAT MARK HAMB PATTIES, WIENERS $33.55 $6,162.50 LEAGUE OF MN CITIES DEDUCTIBLE BILLING $136.88 $35.63 MAKI, CONNIE REIMB -PHONE CALL $7.85 $1,165.99 MANKATO MOBILE RADIO ANNUAL MAINT ON RADIO EQUIP $6,041.04 $7,859.25* MCGARVEY COFFEE INC COFFEE $72.63 MCLEOD COUNTY SHERIFF 3RD WAVE SAFE & SOBER $551.20 MCLEOD COUNTY TREASURER 1998 SPECIAL ASSESS UPDATES $529.00 MID -MN HOT MIX INC TN FINES- TENNIS COURT $854.05 MIDWEST WIRELESS COMM. AUG SERVICE $22.64 MITCHELL, WILLIAM CONCESSIONS $40.00 MN PUBLIC TRANSIT ASSC REGISTRATION -1998 CONFERENCE $130.00 MN SAFETY COUNCIL MEMBERSHIP DUES -FLOYD GROEHLER $185.00 NO STATES SUPPLY INC HACK SAW BLADE $56.18 NORTH STAR TURF GENERAL TURF MIXTURE $260.37 OLDE TOWNE EATERY 26 DINNERS $240.21 OLSONS LOCKSMITH LABOR, SERVICE, MATERIALS $612.56 POHLMEIER, RICH UMPIRE GAMES $160.00 PRIEVE LANDSCAPING SWAMP WHITE OAK TREE $65.00 QUADE ELECTRIC MATERIALS, LABOR -FIELD LIGHTS $406.36 REINER LANDSCAPING PAVER EDGING, SPIKES $243.37 RICE, CAL REIMB- MILEAGE $1.62 RIEGER, KURT UMPIRE GAMES $48.00 RUNKE, JOLEEN REIMB- MILEAGE $34.45 SCENIC SIGNS 141 EVERGREEN TREES $3,000.00 SCHNOBRICH, MARK REIMB -MEALS $14.74 SCHRADER, JEFF UMPIRE $64.00 SCHRAMM IMPLEMENT METRIC NUTS $6.13 SCHWANS SALES ENTERPRISES INC ICE CREAM TREATS $60.93 SERVICEMASTER AUGUST CLEANING SERVICES $1,754.59 SHOPKO FUNSAVER POCKET CAMERA $34.04 SHRED -IT SHREDDING SERVICE $99.90 SIMONSON LUMBER CO TREATED LUMBER, LUMBER $13.00 SORENSEN :ARM SUPPLY EQUIP RENTAL $61.77 STRUCTURAL SPECIALTIES BOLTS & NUTS $40.47 . THE SALTMAN SOFTNER SALT $39.95 TRANSICARD JULY FUEL $25.23 TRIPLE G DISTRIBUTING INC POP PURCHASE $47.00 TWO WAY COMM INC BATTERY $923.85 UHL CO. SERVICE CONTRACT, MATERIALS $1,093.41 UNITED BLDG CENTERS PORTLAND CEMENT $143.45 VIKING OFFICE PRODUCTS LASER CARTRIDGE $87.05 WAL -MART AUTO BULB, FUSES, COIL $64.23 WENDLING, KYLE SOFTBALL TOURNAMENT $44.00 WRIGHT, LEE UMPIRE SOFTBALL $288.00 XEROX JULY METER READINGS $625.00 YORK INTERNATIONAL CORP MATERIALS, LABOR $2,289.06 < *> $78,114.77* HOSPITAL BONDS FIRSTAR BANK OF MINNESOTA ADMINISTRATIVE FEES $75.00 $75.00* HUTCH COMM DEV.0 HUTCHINSON TEL CO AUG PHONE SERVICE $168.91 US POSTAL SERVICE POSTAGE -BULK MAILER $165.28 < *> $334.19* HUTCH TRANS FAC. ALLIED SERVICES OF HUTCHINSON MATERIALS, SUPPLIES, LABOR $238.78 CITY OF HUTCHINSON JULY WATER /SEWER $193.44 HILLYARD FLOOR CARE / HUTCHINSON BOWL CLEANER, MOP, TOWELS $62.91 HUTCH COOP CENEX SUPER UNLEADED $6,162.50 MCGARVEY COFFEE INC COFFEE $35.63 PUMP & METER SERVICE LABOR, FIRE BALL- GREASE PUMP $1,165.99 < *> $7,859.25* INSURANCE FUNDS HUTCHINSON AREA HEALTH CARE c *> EAP SERVICES- ADJUSTMENT $18.75 $18.75* 11 ,OPEN -HOLD COUNCIL REPORT 25- AUG- 1998page 3 -- _ -__ -_ LIQUOR STORE --------------- - - - --- BELLBOY CORP __--------- ___________ __- AUG LIQUOR PURCHASE _----- ____- $800.65 __ - -__ BURNS MANOR OVERPAYMENT OF KEG DEPOSIT $71.22 CITY OF HUTCHINSON LOTTERY PAYMENT $464.24 • CITY OF HUTCHINSON - GENERAL FUN PAYROLL 8/14/98 $8,216.48 ED PHILLIPS & SONS CO. AUG WINE PURCHASE $4,966.16 GRIGGS & COOPER TOBACCO DIV AUG MISC PURCHASE $55.35 GRIGGS COOPER & CO AUG LIQUOR PURCHASE $26,538.96 JOHNSON BROTHERS LIQUOR CO. AUG WINE PURCHASE $8,320.28 JORDON BEVERAGE INC. AUG BEER PURCHASE $1,193.45 LENNEMAN BEVERAGE DIST. INC AUG BEER PURCHASE $4,270.95 LOCHER BROS INC AUG BEER PURCHASE $13,425.45 MINNESOTA MUNICIPAL BEVERAGE A REG -NEIL WEGNER $10.00 QUADE ELECTRIC PLASTIC GLOBES $22.37 TRIPLE G DISTRIBUTING INC AUG BEER PURCHASE $17,997.25 WELCOME NEIGHBOR PRINTING CARDS $24.49 < *> $86,377.30* PAYROLL FUND PERA LIFE INS CO. EE CONTRIB 8/8/98 $114.00 < *> $114.00* PUBLIC SITES MCLEOD COOP POWER ELECTRIC HOOKUPS $4,800.00 < *> $4,800.00* RURAL F. D. HUTCH FIRE DEPT RELIEF ASSC. 1998 BUDGETED FUNDING BY RURAL $5,070.00 < *> 5,070.0D* WATER /SEWER FUND BENNETT OFFICE SUP. COPIER METER READINGS $15.00 BIOCYCLE SUBSCRIPTION RENEWAL $43.00 C'AIRE INC ES 06 $306.09 COAST TO COAST HDWE $44.80 D.P.C.IND.INC CHLORINE $595.10 DEVRIES, RANDY REIMB- AIRLINE TICKET $367.73 DONOHUE & ASSOC PROFESS SERV - CAPACITY STUDY $9,685.00 ESTRIN, SYBIL REFUND- OVERPAID CLOSED ACCT $32.55 FADDEN PUMP CO. FILTER ELEMENT $26.14 FENSKE, ARNOLD GIRARD'S BUSINESS MACHINES REFUND- OVERPAID CLOSED ACCT LETTER OPENER $69. $1,166.18 07 GOPHER STATE INC JULY CALLS $148.75 HARRIS COMPANIES MATERIALS, LABOR -FAN MOTOR 602.55 HOGAN, SHARI REFUND - OVERPAID CLOSED ACCT $47.84 HUTCHINSON UTILITIES JULY ELEC $284.08 ISCO INC VINYL TUBE $63.90 JOHNSON, DOUGLAS REIMB- MEALS, MILEAGE, LODGING $435.62 LAKESIDE EQUIPMENT CORP SEAL, BEARING PACK $216.00 LIESCH ASSOC PROFESS SERV - COMPOST PER $192.00 LUTHENS, GEORGE REFUND - OVERPAID CLOSED ACCT $5.94 MCGARVEY COFFEE INC COFFEE $38.00 MID CON SYSTEMS INC MULTI SEAL, TRUCK WASH, REFLEC $343.33 MN VALLEY TESTING LAB WATER TESTS $108.00 MPCA EXAM -RANDY STARKE $272.00 OLSON, RICHARD REFUND - OVERPAID CLOSED ACCT $36.40 RUST ENVIRONMENT PROFESS SERVICES -TRUNK SAN SEW $1,363.26 SCHAEFER, DENNIS REFUND - OVERPAID CLOSED ACCT $45.59 SHARE CORP PLOYMER CLEANER, NATRAKLENE $248.68 STAR TRIBUNE HELP WANTED ADS $848.00 SUTTON, BRODY REFUND OVERPAID CLOSED ACCT $40.34 TECH SALES TRAINING $306.50 TEK MECHANICAL BLACK PIPE $3.28 US FILTER /WATERPRO CONY KIT $10,283.80 USA BLUE BOOK STEEL SUCTION STRAINER $33.82 VESSCO INC MATERIALS, LABOR $113.19 WELCOME NEIGHBOR JULY LISTING $60.00 WITTE SANITATION TRUCK TIME & LABOR $110.00 < > $28,601.53* $242,797.60* C� ..IMMEDIATE PAY COUNCIL REPORT 25- AUG- 1998nage 1 ____ ___ - -___ _ _ -_ ____ 1997 IMPR. CONST WATER STREET ELECTRIC PROJ 97 -20 EST #3 $5,233.80 < *> $5,233.80* G RAL AETNA VARIABLE LIFE ASS. CO. FUND CENTRAL LANDSCAPE SUPPLY DEPT NATURAL RESOURCES AMERICAN FAMILY INS CO. HUTCHINSON TEL CO $27.86 M.I.A.M.A. MCLEOD COOP POWER EE CONTRIB 8/8/98 MIDWEST WIRELESS COMM. R &R SPECIALTIES INC H.R.L.A.P.R. US WEST COMMUN TREES /SHRUBS DNR FEES TO STATE AUGUST SERVICE REGISTRATION- M.HAUGEN JULY ELEC AUG SERVICE ICE BLADE GRIND AUG SERVICE $893.54 $390.00 $1,087.14 $100.00 $444.55 $805.75 $87.50 $654.70 $4,463.18* HUTCH COMM DEV.0 MIDWEST WIRELESS COMM. AUG SERVICE LIQUOR STORE GRIGGS & COOPER TOBACCO DIV AUG MISC PURCHASE HUTCH GOLDEN GLOVES BOXING CLU ADV IN PROGRAM LEO'S TRANSFER JULY /AUG FREIGHT MN DEPT OF REVENUE JULY TOBACCO TAX QUALITY WINE & SPIRITS CO. AUG LIQUOR PURCHASE $29.15 $29.15* $55.33 $40.00 $1,168.07 $62.40 $4,526.93 $5,852.73* PAYROLL FUND AETNA VARIABLE LIFE ASS. CO. EE CONTRIB 8/8/98 $575.00 AMERICAN FAMILY INS CO. EE CONTRIB 8/8/98 $27.86 GREAT WEST LIFE INS. CO. EE CONTRIB 8/8/98 $75.00 H.R.L.A.P.R. EE CONTRIB 8/8/98 $170.08 ICMA RETIREMENT TRUST EE CONTRIB 8/8/98 $2,546.17 PERA- D.C.P. EE CONTRIB 8/8/98 $52.02 PRUDENTIAL EE CONTRIB 8/8/98 $180.00 PRUDENTIAL MUTUAL FUNDS EE CONTRIB 8/8/98 $30.00 PUBLIC EMPLOYEES EE CONTRIB 8/8/98 $17,409.59 TEMPLETON INC EE CONTRIB 8/8/98 $480.20 WADELL & REED EE CONTRIB 8/8/98 $150.00 < > $21,695.94+ W IC SITES CENTRAL LANDSCAPE SUPPLY TRESS /SHRUBS $2,505.25 < * > $ 2,505.25* WATER /SEWER FUND AAGARD WEST AUG TANK PICKUPS $1,073.50 CAREERTRACK SEMINARS MS2 REG- M.GRAHAM $99.00 MIDWEST WIRELESS COMM. AUG SERVICE $23.74 MN SEC.AWWA REG - RICHARD NAGY $280.00 WELCOME NEIGHBOR MAY LISTING $60.00 < > $1,536.24* Electronic Transfers LOTS FUND Special Fuel Tax- 'AYROLL FUND Withholding Tax MN Dept of Revenue TQUOR FUND June Liquor Sales Tax July Liquor Sales Tax ATER /SEWER FUND Use Tax -July 993 GO Water Revenue Bonds- Interest 117q c o 36 ° 4 Refunding Recreation Bonds - Interest 1993 GO Water Revenue Bonds- Principal $41,316.29* $590.80 39,708.78 7.866.92 4,870.00 23.824.00 5,784.00 11,493.75 5,572.50 35,000.00 i DAVID B. ARNOLD' STEVEN A. ANDERSON O. BARRY ANDERSON LAURA K. FRETLAND PAUL D. DOVE" JANE VAN VALKENBURG RICHARD O. McGEE CATHRYN D. REHER WALTER P. MICHELS, III JAMES UTLEY ATTORNEYS AT LAW • • IA AOMITT[D 1H TEXXII NCW vORR ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP 3881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416-1492 (612) 545 -9000 FAX (612) 545 -1793 FAX (61 2) 542.9210 E -mail: aad Oaadlaw.eom July 31, 1998 '(0R OF COUNSEL ARTHUR L. DOTEN 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA $5371 (6121 359 -aa14 FAX ro12) 369.5506 101 PARK PLACE HUTCHINSON, MINNESOTA 55350 (320) 567.7575 FAX (320) 567 -4096 Ronald J. McGraw, Esq. VIA FACSIMILE TO (320) 587 -9597 P.O. Box 98 Hutchinson, MN 55350 RE: Automobile Sales, Outdoor Display in the Central Commercial District Dear Mr. McGraw: I appreciated discussing with you, the request you have been pursuing on behalf of one of your clients, for an ordinance change permitting the outdoor display of motor vehicles for the purpose of sale in the Central Commercial District of Hutchinson. 1 understand that the matter had previously been discussed at a City Planning Commission meeting and that direction was given by the Commission for further review by the staff. Thereafter, the City Attorney, Barry Anderson, suggested a method for changing the ordinance which involved a redefinition of outdoor car sales. This redefinition would exclude from the ordinance prohibition, the display of three vehicles or less. This proposal was discussed at length at a City staff meeting on Thursday, July 30, 1998. The staff consensus was that the present ordinance is working well, that there is little pressure for change from the business community as a whole or the public at large, and that setting the limit on three vehicles, admittedly an arbitrary number, is likely to generate pressure to increase the number. In your conversation with me, you stated that there are large numbers of individuals within the City who display vehicles on private property with for -sale signs. This issue was discussed at the staff meeting with the acknowledgment that private citizens may display items for sale, including motor vehicles, without violating the zoning ordinance. The control on these sales would be Minn. Stat. §168.27, subd. 3 which provides that "No person shall engage in the business of selling or arranging the sale of used motor vehicles or shall offer -CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION Ronald J. McGraw, Esq. July 31, 1998 Page 2 to sell ... used motor vehicles without first acquiring a used motor vehicle dealer license." Isolated or occasional sales of used motor vehicles are exempt from the licensing requirement. An isolated or occasional sale means not more than five motor vehicle sales in a 12 -month period. See Minn. Stat. §168.27, subd. 8. I plan to discuss appropriate enforcement with City staff, if it can be established that private citizens are engaging in sales activities which violate that statute. Please give me a call if you have any further thoughts on the matter. Sincerely, & DOVE, P.L.L.P. Richard J. Schieffer RJSAmh cc: G. Barry Anderson, Esq. Bonnie J. Baumetz, Planning Commission Coordinator i • 40 Administrative Office John M. Houlahan, Director 410 Fifth Street SW P.O. Box 327 Imar, Minnesota 56201 -0327 p 1O �esra nni�iinu Phone: (320) 235 -6106 Fax: (320) 214 -0187 johnhOpioneedand.lib.mn.us Date: August 11, 1998 To: City and county administrators and Pioneerland Library System Board members From: Harlan Madsen, Chair, Pioneerland Library System Board Re: Pioneerland Library System Board Attendance At the July 16, 1998 Pioneerland Library System Board Meeting, a motion was approved, "To notify individuals with poor attendance that the board will declare their position vacant and notify their appointing authority if they do not attend August 20, 1998 board meeting" This action is in keeping with Pioneerland Library System Board's by -laws and the board's intent to ensure signatories are properly represented and that board members attend meetings in order to be well informed about board issues and to be available to carry out the board's duties and responsibilities. Over the past 12 months, board members participation in meetings have increased and Pioneerland board members are becoming better informed. It is in the best interest of the signatories and the board that this trend continues. Therefore, the board encourages signatories and individual members to continue their efforts in ensuring proper attendance at all Pioneerland Library System board meetings. 44 - FiAh Street SW P.O. Box 327 Willmar, Minnesota 56201 -0327 'hone: (320) 235 -6106 ON Fax: (320) 214-0187 pls0pioneerland.Ub.mn.us PIONI URLAND LIBRARY SYST IIM BOARD N=ING June IS, 1998 Meeting was called to order by chair Harlan Madsen at 7:35 p.m. At the Kmxhyobi County Health & Human Services Building in Willmar. Roll call was taken with Jcan Claris and Beth Ltmn from PLS office, J{aadiy ohi County librarians from Willmar, Atwater, and Spicen New London, and Tom Chen eny from West Central Tribune also present, Chair Harlan Madsen introduced Tom Eim cad pl accountant who briefly reviewed the 1997 audit. Motion by Orville Rudmngen, second by Amy Wilde, and passed to move audit from tabled status Motion by Floyd Sneer, second by Al Clouse and passed to accept audit Chair I larlan Madsen approved rest of agenda as sent out. Motion made by Al Clouse, second by Ramona Berg -Perry, and passed to approve minutes of May 21, 1998 meeting. Presentation was made by the Kandiyohi County public hbra M Lynda Behm, Atwater, Earleen Warner, Willmar who also Spoke abort the Lake Lillian and Raymond libraries, and Sheila Bosch, Spicer ,New London. Groundbreaking for the new Willmar Library will be June 25, 1998. Finance Committee: Rnvesre and --Vcn ihne report for May 1998 was given by Al Clouse. Motion made by Al Clouse and second by Bob Fleegel and paned to accept report Motion by AI Clouse, second by Floyd Sneer, and passed to accept 1998 revised budget. Motion by At Clouse, second by Ramona Berg -Perry and passed to accept 1999 budget. John Houlahan spoke on FY 99 Regional Library Basic System Support gram (stare grant and FY 99 LSTA (federal grant). These grants are et year. Motion by Al Clouse, second by Orville Rudningen, to apply for grants P ane s John Houlahan spoke on TAG interregional connectivity grnr Motion by All Clouse, second by Madsen, and passed to approve TAG grant The LSTG grant was tabled until next meeting as material on it was just received today at PLS office. John Ho nlahan reported on reserves. Discussi and questions followed There will be more on this at nest meeting. Personnel Committee: Larry- Ladd reported on 1999 wage recommendations: a 2 -phase plan, pay scale increased 3.J% including a 2.2% cost of living increase. 3% interval increase for completion of 3 of 4 PLS board- apprrnved criteria. Motion by Larry Ladd to accept the finance and personnel committee recommendation for 1999 v� wages, second by Robin de Cxlh� and passed: Disco�ssio+ and gaestions followed PLS office staff salaries are from state and federal funds. FLS local library staff salaries are from county and city fhods Larry Ladd reported on the Litchfield grievance filed by Carol Blunt for Jan Pease. Tyre are four steps in the grievance process. They were read by Larry Ladd and had been followed The grievance should have been filed by Jan Pease for herself and not by Carol Blum for Jan Pease So grievance and appeal are unjustified Larry Ladd reported that LMC1T health insura ye pmmi increase is 8944 still lower than the average of 9% MN Mural Life Iosarance premium increase is S.17 per 51,000, Iowa than average of 51 per 51, 000. Personnel Committee recommends continuin pommy for one more year as nerd year is fifth year of contract and it must be re-bid. Motign to accept recommendation by Larry Ladd, second by Al Clouse, and passed Larry Ladd rcportcd on the off- ampaiS work study agro mcnt bcta Mmncsaa West Community and Technical College and PLS. It is an intern -type program. PLS needs to pick up 25% of total salary paid. Larry Ladd made motion to accept this agreement and the program, second by Mark Dahl, and passed. Collection Development Task Force: Ramona Bag -Perry gave an update on the callaYion dayclopmcm plan. She showed copy of cover design and discussed final format. Old Business: Chair Harlan Madsen tnfkm about the meeting on June 16, 1998 at Montevideo. There were about 50-60 people thcr„ including mportcrs from Wcst Ccamal Tnbtmc and Momnidco American Ncws. Copy of the articles were distributed to all board members plus copies of the four main topics, structure, policies, system&/Pm sees, relationships. PLS lawyer said the board could vvte to make an exception and emend the June 30 deadline for Chippewa/Yellow Medicine counties to leave PLS. Harlan Madsen suggested a September 1, 1998 deadline date. Al Clouse asked if cuceding the deadline date will be a causc for concern with the budget Planning. John Hrn,W= stated that the budget proocqq would go on as if they am stating in the sy stem. Mark Dahl spoke on behalf of the study commitee about the meeting. Gary Johnson agreed with the September 1 deadline date and thought the media had done a good job of covering meetings. Herb Rotunda made motion, Darlene Kotehilc t second, a September 1, 1998 deadline for Chippewa/Yellow Medicine counties to motlfy PLS If leaving or staying Passed with one no vote by Marietta Johnsen. It was agreed that not all issues could or would be settled by deadline but PLS should show they are being worked on. On'illc Rudningm stated that we have to go back to 1993 agrccincm bcm= PLS and signatories as that has not been a newer one signed by all signatories. Some things like ownership cannot be decided until all have signed updated amendments Size of board changes and ownership of materials rm be done by Signet rieS not by PLS board and Staff Larry Ladd and Marietta Johnsen talked about changing size of board With all the subcommittccs we ham and as o8m as they mat it would be almost impossible for only 18 people to do the job and get all the work done without it being a full-time job. Harlan Madsen stated there must be give and take on both sides, there has to be sharing of resources and a compromise. There will be a report at July 16, 1998 rneaing on some of these issues of concern PLS Board special mating will be .1londay, Junc 29, 7:00 p.m. for more discussion of issues of contort of Chippcwa/Ycllow Medicine Study Co mmittee New Business: Long Range Pls 998 -2002 was accepted with a motion by Orville Rud»gen; second by Marietta Jobnscn and pas L Chair Harlan Ma: :n declared the meeting adjourned at 9:40 p.m. Marleen Canfield Semeta+Y 0 0 Hum V13ice • 410 Fifth Street SW IOgg land P.G. Box :t27 LIBRARY SYSTEM Willmar, Minnesota 56201 -0327 :hone: (320) 235 -6106 Fax: (320) 214 -0187 pis @ploneedand.lib.mn.us PIONCERLAND LIBRARY SYSTEM SPECIAL 130ARD MELTING Monday, June 29, 1998 C Harlan Madsen called the meeting to order at 7:07 p.m. at the Kandiyohi County Health & Human Scniccs Building in Willmar. Chairperson Madsen moved to approve the agenda as mailed Open remarks were made by Chairperson Harlan Madsen about the issues of concern. Wbatever we do we do as a board, not a small group or one person, we must act as a board Negativism is very damaging to all concerned If things cannot be worked out tonight, let's not go away mad as we will continue to work on the issues. 1. SIZE OF BOARD Chairperson Madsen turned the floor over to Mark DahL Two handouts were passed out, one on the board size and one on PLS responsibilities and county responsibilities Mark Dahl reviewed both handouts. Discussion followed about PLS board sin. Orville Rudningcn spoke from past cxpcncncc about size of board and explained the difference between a signatory and a non - signatory. Harlan Madsen said that there are 46 positions on the board but only 39 are filled Of the 39 positions, three members had not attended any meeting in 1998 and two members attended only one meeting in 1998. Most meetings are attended by 27 -30 board members. Bob Flecgcl asked for a show of hands of how many present felt the PLS board is too large to be functional. About 20-30% of those in attendance raised their hands in response to Bob Maegel's question. Others speaking out during discussion were Darlene Kotelnickd, Marietta Johnsen, Ramona Berg-Perry, Art Abel, LeRoy Sanders, Amy Wilde, Stacey Schuette, Lam' Ladd Grant Knutson. Herb Rotunda, Gary • Johnson, Lisa Kramer, and Floyd Sri=. Other this brought up during discussion: Should look at both the positive and negative things about size of board We have some practices and issues here that do cause concern. Does board set policy or micro - manage? Make size of board to 26 members one person per signatory. Would not want a nine- member board if all elected officials. If size of board cut must have local members to take up a lot of the things this board does now. Should county commissi have a set meeting with their county librarians Concern with county library system is that members would be expected to attend too marry meetings. Chairperson Harlan Madsen said that a lot of things talked about should have been dealt with a long time ago and we should not mgt- a mountain out of a moic hi1L Due to cbxaperson's illness chair duties were now turned over by Chairperson Harlan Madsen to Vice Chair Bob Fleegel. 2. OWNERSHIP OF MATERIALS Vice Chair Bob Fleegel said there is a lot of room for more discussion on this issue but let's also look at ownership of materials. Larry Ladd and Bob Flecgcl both asked about having received two legal opinions on this issue of ownership and both opinions were differ Board discussed where to go and what to do to get one anayer. Darlene Kotelnicki talked about a list she had received that had been made of what was in the Litchfield Library and was wondering how the list was made and if other libraries have these lists. LeRoy Sanders read from agreement about gifts given to local libraries. Al Clousc said that it is important to find out ownership, as the don't need double inannmv on things or want to be under insured • Others speaking out during discussion were: Alvin Maas, Amy Wilde, btark Dahl, Gary Johnson, Nancy Grossing. Nancy Grossing offered to go to both lawyers and address question of issues with them and hope to hacc some ansR before next meting. It was also su m:stcd that she speak to Judgt Kit Smith who used to be PLS lawyer and the Ortonville city attorney Bob Fleegel asked that all Iists be put together to review at the next mcwng. Lists from all libraries in system need to be looked at for insurance purposes and to decide what is joint property and what is private property. Nancy Cuvssmg asked if she could get copies of the List before going to sec the lawyers. 3. CONTROL OF LOCAL RLSERVGS John Houlahan explained the difference between designated reserves and undesignated reserves. Designated reserves are for vacationtsick leave and about three months working funds "Ramona Berg - Pcrry stated that if a local library has a request to PLS for matrrialc or cquipmcni if the local library has the undesigttlited resents and PLS feels it is not going to leave them with no resents, it will be authorized Bob Fleegel, Mark Dahl. Darlene Kotelmcki, Larry L add, Francis Schweiks Nancy G ^ussing and Gary Johnson all spoke on local reserves. Mark Dahl asked about the $2,000 that was pulled from each library's resents a couple of years ago for automation. It was asked if we have a policy at this time on resrnRS. Al Clouse said that we have had requests from libraries to spend reserves and the finance committee looks at the request and if it would help or burl the librrry's budget. A recommendation is brought to the full board to cote on. Vice Chair Bob Fleegel stated that due to the late hour, we should rontime the discussion at the meeting on July 16 1448. hoard should have all policies and lists from libraries before next meeting. It was decided the nest full PLS board meeting win be July 16, 1998, 7:00 p.m., at Lakeland Auditorium in Willmar. Art Abel stated that tonight's mating was productive and he personally learned a lot Because we don't • usually have a meeting in July and August, our July meeting should be devoted to the issues of concern OW Discussion of the issues should not be put at the end of a long agenda Vice Chair Bob Fleegel called for adjournment. Motion by LeRoy Sanders, second by Francis Schweiss. Passed. Marleen Canfield S=ctary