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cp01-02-1998 cL AGENDA SPECIAL ORGANIZATIONAL MEETING - HUTCHINSON CITY COUNCIL FRIDAY, JANUARY 2, 1998 1. CALL TO ORDER - 5:00 P.M. 2. INSTALLATION OF NEWLY ELECTED MAYOR MARLIN TORGERSON AND COUNCIL MEMBER JOHN MLINAR (a) RESOLUTION NO. 10961 - DESIGNATING OFFICIAL NEWSPAPER (b) RESOLUTION NO. 10962 - APPOINTING OF LEGAL COUNSEL (c) RESOLUTION NO. 10963 - APPOINTING CITY ADMINISTRATOR FOR 1.998 (d) RESOLUTION NO. 10964 - DESIGNATION OF DEPOSITORIES OF CITY FUNDS IN COMMERCIAL BANKS AND INSTITUTIONS (e) RESOLUTION NO. 10965 - DESIGNATION OF DEPOSITORY OF CITY FUNDS, FEDERAL SAVINGS AND LOAN ASSOCIATIONS (f) RESOLUTION NO. 10966 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM CITIZENS BANK AND TRUST CO. OF HUTCHINSON, MINNESOTA (g) RESOLUTION NO. 10967 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM MARQUETTE BANKS OF HUTCHINSON, MINNESOTA (h) RESOLUTION NO. 10968 - RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM FIRST FEDERAL FSB OF HUTCHINSON, MINNESOTA Action - Motion to reject - Motion to waive readings and adopt Resolutions (a) CREATION OF ECONOMIC DEVELOPMENT AUTHORITY IN CITY OF HUTCHINSON, MINNESOTA Action - Motion to reject - Motion to approve EDA, adopt Resolution No. 10969 and appoint seven commissioners 3 5. NEW BUSINESS (a) SELECTION OF COUNCIL'S VICE PRESIDENT - JOHN MLINAR Action - Motion to elect (b) DESIGNATION OF COUNCIL REPRESENTATIVES: 1. AIRPORT COMMISSION - Marlin Torgerson 2. HUTCHINSON AREA HEALTH CARE BOARD - Don Erickson 3. HUTCHINSON COMMUNITY DEVELOPMENT CORP. BOARD (HCDC) - Jeff Haag 4. HUTCHINSON HOUSING, INC. (HRA) - Don Erickson 5. LIBRARY BOARD - Kay Peterson 6. MID- MINNESOTA COMMISSION - John Mlinar 7. PARKS, RECREATION, COMMUNITY EDUCATION ADVISORY . BOARD - John Mlinar 8. PLANNING COMMISSION - Jeff Haag 9. SAFETY COUNCIL - Kay Peterson 10. LIGHT TRAFFIC ADVISORY BOARD - Kay Peterson 11. TELECOMMUNICATIONS COMMISSION - Marlin Torgerson Action - Motion to ratify Mayor's appointments (c) APPOINTMENTS TO HEALTH BOARD 1. DR. JAMES ALLEN 2. DR. DAVID BYRON 3. DR. DENNIS MURPHY Action - Motion to ratify Mayor's appointments i (d) RENEWAL OF CIGARETTE LICENSES FOR 1998 ► AMERICAN LEGION POST 96 ► AMOCO FOOD SHOP ► CROW RIVER OUTDOORS INC. ► ELKS LODGE NO. 2427 ► ERICKSON FREEDOM STATION: 11 FOURTH AVE. NE 1100 HWY. 15 S. ► JONNY'S RESTAURANT & LOUNGE ► MAIN STREET SPORTS BAR ► VFW POST 906 Action - Motion to reject - Motion to approve and issue licenses (e) CONSIDERATION OF RECOMMENDATION FROM ADMINISTRATOR AND DIRECTORS TO HOLD FULL -DAY PLANNING WORKSHOP Action - Motion to establish date for workshop 0 RESOLUTION NO. 10961 DESIGNATING OFFICIAL NEWSPAPER BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, The Hutchinson Leader be designated the official newspaper during the calendar year of 1998 for the City of Hutchinson. Adopted by the City Council this 2nd day of January, 1998. Marlin Torgerson Mayor ATTEST: Gary D. Plotz City Administrator r 1 is RESOLUTION NO. 10962 APPOINTING OF LEGAL COUNSEL BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA. THAT G. Barry Anderson, and the law firm of Arnold, Anderson & Dove, PLLP are hereby appointed as City Attorneys in exchange for payment of a retainer for a one year period from January 1, 1998 to December 31, 1998. Legal services included within the agreed upon retainer are: prosecution of police department cases, attendance at all City Council and Planning Commission meetings, preparation of resolutions and ordinances and other customary legal services in the normal course of City business. Matters such as appearances in state or federal district court, economic development legal work or appearances in the court of appeals or state supreme court will be billed as additional legal services outside of the retainer agreement and at the usual and customary hourly rate to be approved by the City Administrator. All such non retainer matters shall be approved by the City Administrator. In addition, collection actions may be billed on a contingent fee basis and any amounts received for such actions shall be considered apart from the retainer arrangement described above. Adopted by the City Council this 2' day of January, 1998. • CITY OF HUTCIUNSON Marlin Torgerson, Mayor Attest: Gary D. Plotz, City Administrator 0 _,. Y'� IZ ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW DAVID B. ARNOLD STEVEN A. ANDERSON G. BARRY ANDERSON LAURA K. FRETLAND PAUL D. DOVE JANE VAN VALKENBURG RICHARD G. MDGEE CATHRYN D. REHER WALTER P. MICHELS. III 1 A 30 ADMITTED IN TE AND NEW TORN Mr. Gary D. Plotz City Administrator Hutchinson City Center 11 I Hassan Street S.E. Hutchinson, Mn. 55350 101 PARK PLACE HUTCHINSON, MINNESOTA 55350 -2563 (320) 587 -7575 FAX (320) 567 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON December 10, 1997 Re: Appointment of Attorney Resolution Dear Gary: DEC 1 0 1997 Crn OF HUTCHINSON OF COUNSEL ARTHUR L. DOTEN TERRI A. BLOMFELT 5861 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (6 12) 545 -9000 FAX (612) 345 -1793 FAX (6121542 -9210 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 369 -2214 FAX(612)389 -5506 Enclosed herewith please find the revised Resolution appointing legal counsel. Some years ago I noted in the resolution that the firm has been appointed as City Attorney for the purpose of eliminating any challenge • to the authority of other members of our firm to represent the interests of the City in, for example, prosecution matters or other court appearances. For some reasons, the 1997 resolution dropped this language. I have reinstated it. Second, I have included language that references that economic development work is specifically excluded from the retainer agreement and I have also provided that as to non retainer matters, they should be approved by your office to eliminate any surprises or concerns. It should be noted that most other communities, including for example, Glencoe, charge for prosecution services on a hourly basis. However, our office is satisfied with the present arrangement and we do not anticipate requesting a change. Finally, I do want to note that as of last year, our hourly rate for municipal matters remains at $100 per hour. I do not anticipate a change in the hourly rate in calendar year 1998. If you should have any questions regarding any of the foregoing, please do not hesitate to contact me. Thank you. Best regards. Very truly PLLP GBA:lm Enclosure • 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 0 RESOLUTION NO. 10963 APPOINTING CITY ADMINISTRATOR FOR 1998 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, the following appointment to the indicated executive office of the City of Hutchinson is made for the period of one year. Compensation shall be continued as agreed upon by separate Council action: City Administrator Gary D. Plotz Adopted by the City Council this 2nd day of January, 1998. F - - I LJ 0 Marlin Torgerson Mayor ATTEST: Gary D. Plotz City Administrator • RESOLUTION NO. 10964 DESIGNATION OF DEPOSITORIES OF CITY FUNDS IN COMMERCIAL BANKS AND INSTITUTIONS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT the following named banks and institutions, which are authorized to do a banking business and act as depositories in Minnesota, be and they hereby are designated depositories of the Public Funds of the City of Hutchinson in the County of McLeod, State of Minnesota, by the City Council of said City, for the term commencing January 1, 1998 for one year: CITIZENS BANK & TRUST COMPANY, HUTCHINSON, MN THE FIRST BANK OF MINNESOTA, HUTCHINSON, MN MARQUETTE BANKS OF HUTCHINSON, HUTCHINSON, MN • FIRST AMERICAN BANK, HUTCHINSON, MN NORWEST BANK, HUTCHINSON, MN FIRST BANK, MINNEAPOLIS, MN FIRST BANK ST. PAUL, ST. PAUL, MN AMERICAN NATIONAL BANK, ST. PAUL, MN FIDELITY BANK AND TRUST COMPANY MERRILL LYNCH, DAIN BOSWORTH, INC. PIPER JAFFRAY & HOPWOOD, INC. SHEARSON LEHMAN BROTHERS n U SMITH BARNEY SHEARSON PRUDENTIAL SECURITIES r RESOLUTION NO. 10964 16 upon terms and conditions following, to -wit: THAT this designation is subject to the right of said City of Hutchinson, Minnesota to modify, vacate, or revoke the same according to law, and also subject to any depository agreement executed pursuant to Minnesota Statutes, Section 118.01 and Section 475.66, and THAT the use of these depositories other than those located in the City of Hutchinson shall be for monies from the proceeds of bond sales or grant reimbursement monies only. The interest rate from these institutions must exceed the interest rate of City financial institutions by more than .5 %. BE IT FURTHER RESOLVED: THAT the City Administrator of the City of Hutchinson is hereby authorized and directed to deposit in said banks and institutions in special funds to be known as "City of Hutchinson" all monies that may come into his hands. BE IT FURTHER RESOLVED: THAT a copy of this resolution be filed with the City Administrator and each of the banks and institutions so designated. Adopted by the City Council this 2nd day of January, 1998. Marlin Torgerson Mayor ATTEST: Gary D. Plotz City Administrator i • RESOLUTION NO. 10965 DESIGNATION OF DEPOSITORY OF CITY FUNDS FEDERAL SAVINGS AND LOAN ASSOCIATIONS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT First Federal FSB, Minnesota is hereby designated as an official depository of and for funds of the City of Hutchinson up to the maximum designated by law. Adopted by the City Council this 2nd day of January, 1998. Marlin Torgerson Mayor ATTEST: Gary D. Plotz City Administrator 0 RESOLUTION NO. 10966 RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM CITIZENS BANK AND TRUST CO. OF HUTCHINSON, MINNESOTA WHEREAS, the Citizens Bank & Trust Co. of Hutchinson, a City Depository, has presented collateral as follows for the City of Hutchinson and Hutchinson Utilities: Federal Home Loan Federal Home Loan Fed. Home Loan Bank Fed. Natl. Mort. Assoc Fed. Natl. Mort. Assoc Fed. Natl. Mort. Assoc TOTAL AMOUNT RATE MATURITY $1,000,000.00 7.89 12 -23 -97 1,000,000.00 6.50 03 -19 -01 500,000.00 5.20 08 -04 -97 1,000,000.00 6.00 01 -12 -98 1,000,000.00 6.75 08 -24 -00 1,000,000.00 6.75 08 -24 -00 $5,500,000.00 • BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota that the Treasurer be authorized to accept said securities as collateral and that said collateral be deposited for safekeeping. Adopted by the City Council this 2nd day of January, 1998. ATTEST: Gary D. Plotz City Administrator Marlin Torgerson Mayor 0 RESOLUTION NO. 10967 RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM MARQUETTE BANK OF HUTCHINSON, MINNESOTA C J WHEREAS, the Marquette Bank of Hutchinson, a City Depository, has presented collateral as follows for the City of Hutchinson and Burns Manor Nursing Home: SECURITY AMOUNT MATURITY Stillwater MN GO IMPR 200,000.00 02 -01 -00 Stillwater MN GO IMPR 100,000.00 02 -01 -02 Issaquah, WA King Co. 100,000.00 12 -01 -04 Hudson NH SCD 125,000.00 12 -15 -03 Superior WI UT GO 100,000.00 12 -01 -06 Centerville, TX ISD 150,000.00 08 -15 -04 Decorah, IA SCH DIS 150,000.00 06 -01 -02 Woodhaven Mich Sch Dist 100,000.00 05 -01 -02 FNMA Pool series 1992 866,453.76 09 -25 -14 FNMA Pool #102248 8,631.78 05 -01 -20 FNMA Pool #226554 487,735.27 08 -01 -03 FT Bend TX ISD 100,000.00 02 -15 -03 TOTAL $2,487,820.81 BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota that the Treasurer be authorized to accept said securities as collateral and that said collateral be deposited for safekeeping. Adopted by the City Council this 2nd day of January, 1998. Marlin Torgerson Mayor ATTEST: Gary D. Plotz City Administrator i _ 11 RESOLUTION NO. 10968 RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM FIRST FEDERAL fsb OF HUTCHINSON, MINNESOTA • WHEREAS, the First Federal, fsb of Hutchinson, a City Depository, has presented collateral as follows for the City of Hutchinson, Hutchinson Utilities, and Hutchinson Community Hospital: U.S. Treasury 4890811034 FNMA Rem 12FA #920130001 FHLB F/R Note 4930818001 FNMA 93 -138F #930830004 FNMA 93 -142F #931027007 FHLMC 1535FA 4930628023 TOTAL $1,000,000.00 02 -15 -16 2,000,000.00 01 -25 -22 2,000,000.00 08 -18 -05 1,000,000.00 08 -25 -23 1,243,908.00 08 -25 -23 31000.000.00 12 -15 -22 $10,243,908.00 BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the Treasurer be authorized to accept said securities as collateral and that said collateral be deposited for safekeeping. Adopted by the City Council this 2th day of January, 1998. Marlin Torgerson Mayor ATTEST: • Gary D. Plotz City Administrator i PUBLISHED IN THE HUTCHINSON LEADER TUESDAY, DECEMBER 16, 1997 AND TUESDAY, DECEMBER 23, 1997 • PUBLICATION NO. 5131 NOTICE OF PUBLIC HEARING ON CREATION OF ECONOMIC DEVELOPMENT AUTHORITY CITY OF HUTCHINSON, MINNESOTA NOTICE IS HEREBY GIVEN that the City Council of the City of Hutchinson. Minnesota (the 'City') will meet on Friday, January 2, 1998, at S- 1 S p.m., in the Council Chambers at the Hutchinson City Center, 111 Hassan Street, Hutchinson, Minnesota, to conduct a public heating on the proposal that the City create an Economic Development Authority ('EDAn p ursuan t to the provisions of Minnesota Statutes, Sections 469.090 to 469.108, by the adoption by the City Council of an enabling resolution (the 'Enabling Resolution' in compliance with Minnesota Statutes, Section 469.093. Under the Enabling Resolution the EDA shall have the powers contained in Minnesota Statutes, Sections 469.090 to 469.108, subject to the limitations contained in the Enabling Resolution. The Enabling Resolution will provide that the governing body of the EDA will consist of seven commissioners composed of two members of the City Council and five members of the Hutchinson Community Development Corporation, with all seven commissioners appointed by the Mayor and confirmed by the City Council. The Enabling Resolution provides that the following limitations shall apply to the EDA and its operations: A. The sale of bonds by the EDA must be approved by the City Council; • B. The EDA must follow the budget process for City departments and shall comply with all City's policies, ordinances and resolutions, including but not limited to any such policies, ordinances or resolutions governing budgeting issues. Any nonbudgeted obligations or commitments by the EDA exceeding Five Thousand and no /100 Dollars (55,000.00) must be approved by the City Council, unless otherwise empowered by policy. C. Any development or redevelopment actions of the EDA that are not in conformance with the City Comprehensive Plan and official controls, including but not limited to zoning ordinance, implementing the Comprehensive Plan, must be approved by the City Council. D. The EDA must submit its plans for development and reevelopment to the City Council for aproval in accordance with City Planning Procedures and law. E. All policies and guidelines of the EDA must be approved by the City Council. F. No tax may be levied by the EDA without the consent and approval of the City Council. • G. The City Council retains its authority to establish tax increment, economic development and other financial districts and nothing to the Enabling Resolution shall be construed tom any way limit the authority of the City • Council to create and tr r unate such districts. All persons may appear and be heard at the time and place set forth above, or may file written comments with the City Administrator prior to the date of the hearing set forth above. • -2- • • • MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT 500 Metro Square 121 Seventh Place East Saint Paul. MN 55101 -2146 USA Date: December 19. 1997 To: Dick Lennes. Director Hutchinson Community Development Commission From: Eugene E. Goddard Office of Regional Initiatives (612 -296 -7102) Re: Economic Development Authority �,tANESOT Bade & — Economic Dt'4FIO euwnenm cot ry Devebp=t After. meeting with you and reviewing the draft Enabling Resolution, I believe that the recommended structure of the new Economic Development Authority (EDA) would be the best option. By utilizing both the Hutchinson Community Development Corporation (HCDC) non- profit corporation and the EDA for their specific functions, you will be able to have a very effective development program. As I stated in the meeting there are several reasons why the City of Hutchinson should create an Economic Development Authority. First, the current level of funding given to the HCDC by the city for managing economic development activities is not in compliance with current Minnesota statute. By creating the EDA, the city can fund the EDA at any level it deems appropriate. Second, the additional powers that an EDA will bring to the table will allow the community more options and flexibility when working with business expansions. I would also like to reiterate, that one of the unique aspects about an EDA is the "cross fertilization" authorization. Cross fertilization allows an EDA to exercise the powers granted to other government bodies for economic development purposes. This authorization makes an EDA very flexible in carrying out its duties. However, this authority will effect the existing Housing and Redevelopment Authority (HRA) in the community. I would recommend that the EDA be granted the authority to exercise HRA powers, because it needs the specific powers in this section of statute to truly carry out its duties and be effective. You do have the option of consolidating the EDA and HRA into one organization or to keep them separate. If you choose to keep the economic development and housing development functions separated and to limit any conflict between the two agencies. the management plan for the EDA can include a statement limiting its application of HRA powers to economic development purposes only. If you have any further questions regarding the creation of an EDA please feel free to contact me at 1 -800- 657 -3858. 4 _/- I RESOLLTION NO. 10969 • RESOLUTION ENABLING THE CREATION OF AN ECONOMIC DEVELOPMENT AUTHORITY IN THE CITY OF HUTCHINSON, MINNESOTA THIS RESOLUTION is made and entered this _ day of January, 1998, by the City Councti of and for the City of Hutchinson. Minnesota, RECITALS: I. The City is authorized, by Minnesota Statutes, Chapter 469 to establish economic development authority (EDA) to coordinate and administer economic development and redevelopment plans and programs of the City. 2. The City Council for the City of Hutchinson has found and determined that the encouragement and financial support of economic development and redevelopment in the City is vital to the orderly development and financing of the City and in the best interests of the health, safety, prosperity and general welfare of the residents of the Citv. 3. It is further found and determined by the Citv Council for the City of Hutchinson that the economic development and redevelopment of the City can best be accomplished by the establishment of an EDA as authorized by the Act. 4. The City Council has, in accordance with the Act, provided public notice and conducted a public hearing concerning the establishment of an EDA at which all persons wishing to be heard expressed their views. The public hearing was held on January 2, 1998. • NOW THEREFORE BE IT RESOLVED by the City Council for the City of Hutchinson as follows: 1. The economic development authority of the City of Hutchinson is hereby established. The EDA is a public body corporate in politic and a political subdivision of the State of Minnesota. The EDA shall henceforth be known as Hutchinson Community Development Commission. an EDA. '_. The governing body of the EDA shall consist of seven (7) commissioners composed of two members of the City Council and five (5) Hutchinson Community Development Corporation members with all seven (7) commissioners appointed by the Mayor and confirmed by the City Council. The terms of initial appointments shall be for one (l), two (2), three (3), four (4), five (5) and two (2) members for six (6) years. Following their expiration of each individual original term, each Board member shall be appointed for a six (6) year term. The EDA shall have all the powers and duties set forth in law, except as limited by this resolution. 3. The following limits shall apply to the EDA and its operation: A. The sale of bonds must be approved by the City Councti; B. The EDA must follow the budget process for City departments and shall comply with all City's policies, ordinances and resolutions. including but not limited to anv such policies, ordinances or resolutions governing budgeting issues. Any non budgeted obligations or is commitments by the EDA exceeding Five Thousand and not 100 Dollars (S5,000.00) must be approved by the Citv Council, unless otherwise empowered by poiicy. C. Any development or redeveiopment actions of the EDA that are not to conformance with the City Comprehensive Plan and official controls, including but not limited to zoning ordinance, implementing the Comprehensive Plan, must be approved by the City Council. D. The EDA must submit its plans for development and redevelopment to the City Council for approval in accordance with City planning procedures and law E. All policies and guidelines of the EDA must be approved by the City Council. F. No tax may be levied by the EDA without the consent and approval of the City Council. G. The City Council retains its authority to establish tax increment, economic development and other financial districts and nothing herein shall be construed to in any way limit the authority of the City Council to create and terminate such districts. H. The City Council expressly retains all authority to commence and complete eminent domain actions under Chapter 117 of Minnesota law unless the EDA is specifically empowered to conduct such proceedings by separate City Council resolution. Commissioners will be paid One Dollar ($1.00) per year. 4. Nothing in this resolution nor any of the activities of the EDA are to be construed to in any way impair the obligations of the City under any of its contracts or to affect in any detrimental manner the rights and privileges of a holder of a bond or other obligation previously issued by the City. 5. Nothing in this resolution prevents or in any way limits the City from modifying this enabling resolution to impose new or different limitations on the EDA as authorized by the Act or to terminate the EDA if, in the sole discretion of the City Council, such action is desired. 6. The Mayor, City Administrator and other appropriate City officials are authorized and directed to take the actions and execute and deliver the documents necessary to give full effect to this enabling resolution. 1998. Passed and duly adopted by the City Council of the City of Hutchinson this _ day of January, CITY OF HUTCHINSON By, Marlin Torgerson, Mayor Attest Gary D_ Plotz, Citv Administrator • 6 DATE: December 18, 1997 TO: Mayor Marlin Torgerson FROM: Dick Lennes - HCDC Executive Director CC: City Council Members, and City Administrator - Gary Plotz RE: January 2, 1998 City Council meeting and EDA hearing Dear MayorTorgerson, January 2, 1998 is the established date for the Economic Development Authority hearing. After the hearing if their is the acceptance of the Enabling Agreement, another action should also take place. That would be the appointment of the seven commissioners. The seven commissioners are to be appointed by the Mayor and confirmed by the City Council. Five of these members are recommended by HCDC, (their names are in bold below). Please consider for your appointments the following five individuals that the HCDC membership is recom- mending. • Terms • Council Member 1 Year • Sheldon Nies 2 Years • Don Wlaser 3Years • Council Member 4Years -Tim Ulrich 5Years • Bob Windel 6Years • Jim Haugen 6Years NOTE: The length of these terms relate to longevity left on the HCDC Board. The remaining two members on the commission are to be City Council members of which you also are to appoint and request confirmation of the City Council. It would be appropriate to obtain this action during the meeting of January 2nd. If everything is approved that evening by the Council the first commission meeting is scheduled for Friday, January 16th. Sincere) ck Lennes Executive Director DL /mbs iC� C7 MEMORANDUM January 2, 1998 To: Mayor & City Council From: Marilyn J. Swanson, Administrative Secretary Subject: ADDITION TO ITEM 54dl —1998 CIGARETTE LICENSES The following cigarette license payments were received after the City Council packet was distributed on December 30, 1997: ► Hi Tops Bar & Grill 0 0 ► K Mart Corporation A lchard Nelson, Mayor Lee A. Mattson, Clerk/Treasurer Clarice M. Demeyere, Deputy Clerk 6 .1218) 745 -5343 Fax (218) 745 -5344 December 5, 1997 RECEIVED DEC 2 21997 CIT\ JF HUTCHA80N 0 Mayor Marlin Torgerson 111 Hassan St. SE Hutchinson, MN 55350 Dear Mayor Torgerson: The City of Warren would like to extend our appreciation for your contribution to the LMC Flood Fund. The grant was used to repair sidewalks damaged by the floods. Your help will always be remembered by our city. Thank you. Sincerely: k C ^ l-� Mayor Richard Nelson am CITY OF WARREN Robert Miner, Council James Bjorgaard, Council 126 W. Johnson Ave. David Maurstad, Council Warren, NIN 56762 -1197 John Carlson. Council Floyd Larler, Council Office of City Clerk Calvin Melgard, Council FOR YOUR INFURMALOR 0 FOR YOUR INFORMATION TRIAX MIDWEST ASSOCIATES, L.P. TOM BORDWELL, GOVERNMENT RELATIONS MANAGER 2105 129TM Avenue Northwest, Coon Rapids, Minnesota 55448 Telephone • Facsimile (812) 754 -5070 RECEIVED December 31, 1997 JAN 9 1998 CITY OF HLITCHiNSON Dear Friend: On behalf of Triax Midwest Associates, L.P. d/b /a Triax Cablevision, I would like to wish you a Happy New Year! Triax Cablevision is excited about its plans for 1998. In the next few days, you will be receiving our fast newsletter designed to inform you of the many exciting things that are ahead for our customers and the communities we serve. I welcome your comments on our first issue of Connect, and look forward to continuing this communication throughout the year. As public officials, I am sure you are keenly aware of the need for businesses to operate as efficiently as possible. The cable television industry has experienced many changes over the last few years. New technology and new market challenges present cable operators with the task of providing new products and services at a reasonable cost to the consumer. Triax Cablevision is meeting this challenge by investing in new technology through system upgrades and rebuilds. By making improvements in our operations, we will be ready to provide our customers with the next generation of cable services. We also need to respond to the market by adjusting our rates. Many of Triax Cablevision's systems will be receiving rate notices over the next few weeks. The enclosed fact sheet provides you with information about the factors that help determine rate structures. It is our hope that this information will provide you with an understanding of this important aspect of the cable industry and how it affects our customers and your constituents. We are always interested in expanding our communication efforts. Your ideas and additions to our mailing list are appreciated and can be faxed to my attention at (612) 896 -3278. My direct telephone is (612) 754 -5070. Thank you! Sincerely, Tom ordwell Government Relations Manager 0 0359144A1 A Message to Our Friends in Government Regarding Rate Increases: 16 Triax Cablevision continues to work diligently to provide our customers with quality services and optional new programming choices. We are excited about the completion of the first year of our ten -year plan to improve our cable systems, and look forward to meeting the challenges in the ever - changing telecommunications industry. We understand our market and the importance of listening to the needs of our customers. The competition to provide increased programming choices and advanced products is very keen. Triax Cablevision's goal is to provide our customers the highest value possible at an affordable price. We do not take rate increases lightly, as we are well aware of the need to balance those increases with enhancements to our system. We try very hard to make improvements in our operation without increasing costs. Our management team and employees in the field are continually finding better and more efficient ways to operate, but several factors affect our ability to control rates. As a highly regulated industry, we face costs which other providers, such as direct broadcast satellite (DBS /satellite) systems, do not. For example, Triax Cablevision collects and returns up to 5% of its customers' rates directly back to the communities we serve in the form of a franchise fee. We also pay property leases, pole attachment fees, and other fees which are unique to cable providers. However, the biggest cost increase we face is in programming. Programming costs include the fees we must pay program providers, such as Showtime, TBS, ESPN, etc. Between 1984 and 1993, cable providers industry-wide paid an average yearly increase in programming costs of 9.2 %. In 1995, that number increased to 13.5 %, and in 1996 another huge increase to 14 %! In 1998, we expect our programming expenses to increase by an additional 19 %. Increases in programming fees put incredible pressure on our ability to add choices and channels for our customers at a reasonable cost. While rate increases will be necessary in 1998, we believe they are in line with the improvements we are providing. Triax Cablevision is committed to bringing you the next generation of cable services and we have made significant investments not only in our capital rebuilding program, but also in our operational improvements designed to provide better customer service. We appreciate the opportunity to serve your community and look forward to our continuing partnership. 0359332.01 0 TRIA?X FOR YOUR INFORMATION 1504 2nd St. S.E., P.O. Box 110, Waseca, MN 56093 5071835 -5975 FAX 507.835.4567 RECEilAiD December 29, 1997 JAN 2 1998 CITY OF HUTCH:NSON 17J Mayor Marlin Torgerson City of Hutchinson 111 Hassan St. SE Hutchinson MN 55350 Dear Mayor Torgerson: Effective February 1, 1998, Triax Cablevision is adjusting rates for Premium Services and our Home Wire Line Plan as outlined on the attached notification letter which has been mailed to all customers. These rate changes reflect increases in programming expenses and operating cost associated with these services. Mayor Torgerson, on behalf of the entire Triax Cablevision team of employees we appreciate the opportunity to provide service to the City of Hutchinson. Should you have any questions regarding this information, please feel free to contact me at any time at (507) 835 -5975. Sincerely, Ada. Paul R. Pecora Regional Manager 40 r "ORTANT CUSTOMER NOTICE Effective February 1, 1998, Triax Cablevision is adjusting rates for the following premium services; HBO, Showtime and The Movie Channel will now be $11.95 per month, an increase of $.95. Our Home Wire Line Plan will be adjusted to $1.25 per month, an increase of $.15 per month. Cinemax will now be $7.95 per month, a decrease of $3.05, and Disney remains $7.00 per month. As a result of these changes, Triax Cablevision offers many cost saving premium channel packages. HBO /Cinemax is only $17.95, Showtime/TMC for only $12.95 per month and HBO /Cinemax/Disney is only $19.00 per month. Call today for prices on many other discounted premium channel packages. 0 0