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cp04-22-1997 cAPRIL low SUNDAY MONDAY TUESDAY 1997 -20- -2I- -22- 4:00 p.m. - City Council Workshop HUTCHINSON re. TIF in City Center Main CITY Conference Room CALENDAR 4:30 p.m. - City Council Workshop WEEK OF with Fire Department in Main Conference Room April 20 to April 26 5:30 p.m. -City Council Meeting in Council Chambers [_N WEDNESDAY THURSDAY FRIDAY SATURDAY -23- -24- -25- -26- CONFERENCE /SEMINAR/ 10:00 a.m. - Directors Meeting in 10:00 a.m. - Employee Safety VACATION Staff Conference Room Committee Meeting at City Center 4/21 -24 - Steve Madson (C) 1:45 p.m. - Employee Tornado Drill 4/24 -5/21 - Doug Meier (V) 5:30 p.m. -Tree Board Meeting at 4/25 - Larry Huhn (S) Marquette Bank Conference C = Conference Room S ° Seminar V — Vacation AGENDA • REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, APRIL 22, 1997 CALL TO ORDER - 5:30 P.M. 2. INVOCATION - Rev. Gerhard Bode, Peace Lutheran Church PRESENTATION OF PLAQUES OF RECOGNITION ♦ JERRY CORNELL ♦ CRAIG LENZ ♦ GLENN MATEJKA 3. CONSIDERATION OF MINUTES MINUTES OF APRIL 8, 1997 AND BID OPENING OF APRIL 7, 1997 4. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. FINANCIAL /INVESTMENT REPORT - MARCH 1997 2. PLANNING COMMISSION MINUTES OF MARCH 18, 1997 3. TREE BOARD MINUTES OF JANUARY 30, 1997 . 4. PARKS, RECREATION & COMMUNITY EDUCATION ADVISORY BOARD MINUTES OF MARCH 6, 1997 (b) RESOLUTIONS AND ORDINANCES I . RESOLUTION NO. 10829 -RESOLUTION TO APPROPRIATE /SALE AT AUCTION OF UNCLAIMED PROPERTY (c) DELINQUENT WATER AND SEWER ACCOUNTS (d) ACCEPTANCE OF DEFENDANT'S RULE 68 OFFER OF JUDGMENT REGARDING WAAGE LITIGATION (e) TRANSIENT MERCHANT PERMIT FOR RICHARD SEIPEL, D.B.A. THE COUNTRYSTOP (f) BID ADVERTISEMENT ON MAY 20, 1997 FOR RECREATION CENTER ROOF REPLACEMENT (g) ADOPTION OF DOCUMENTS RELATING TO PLASTIC SPECIALTIES MANUFACTURING, INC. 1. PROMISSORY NOTE CALLING FOR $100,000 LOAN FROM CITY ECONOMIC DEVELOPMENT FUND SECURED BY STANDARD FORM SECURITY AGREEMENT • 2. PROMISSORY NOTE CALLING FOR $100,000 LOAN FROM CITY ECONOMIC DEVELOPMENT FUND SECURED BY MORTGAGE ON PLASTIC SPECIALTIES MANUFACTURING, INC. PROPERTY CITY COUNCIL AGENDA - APRIL 22, 1997 • SITE PURCHASE AGREEMENT 4. ADOPTION OF ORDINANCE NO. 97 -193 AUTHORIZING SALE TO PLASTIC SPECIALTIES MANUFACTURING, INC. (h) IMPROVEMENT PROJECT CHANGE ORDERS LETTING NO. 7/PROJECT 96 -11 & 13 (CHANGE ORDER NO. 2); $1,871.95 2. LETTING NO. 9/PROJECT 96 -16 & 18 (CHANGE ORDER NO. 2); $1,996.00 3. LETTING NO. 2/PROJECT 97 -02 (CHANGE ORDER NO. 1); $460.00 (i) LANDSCAPE PARTNERSHIP COOPERATIVE AGREEMENT #76013 WITH MN/DOT FOR LANDSCAPE IMPROVEMENTS ALONG T.H. 22 IN HUTCHINSON 0) GAMBLING DEVICES LICENSE FOR DUCKS UNLIMITED (k) "ON SALE" NON - INTOXICATING MALT LIQUOR LICENSE: CROW RIVER COUNTRY CLUB KING'S WOK GODFATHER'S PIZZA LITTLE CROW BOWLING LANES GOLD COIN, INC. PIZZA HUT HUTCH. HUSKIES BASEBALL ASSOC. (1) "OFF SALE" NON - INTOXICATING M CASH WISE CITGO -QUIK MART ERICKSON FREEDOM STATION #13 ERICKSON FREEDOM STATION # 48 (m) COMMERCIAL LOAN THROUGH PARTNERSHIP ,T LIQUOR LICENSE: FOOD -N -FUEL RICK'S CAST -AWAY SUPER AMERICA STORE TOM THUMB HCDC FOR QUADE FAMILY (n) TOWNSHIP ANNEXATION (HOERNEMANN ESTATESS IN SECTION PROPERTY VALLEY ) SUBMITTED BY FRANK REESE, ARCHITECT FOR PRAIRIE SENIOR COTTAGES WITH FAVORABLE RECOMMENDATION FROM PLANNING COMMISSION WITH STAFF RECOMMENDATIONS (FIRST READING OF ORDINANCE NO. 97-194 AND SET SECOND READING FOR MAY 13, 1997) (o) TO VARIANCE O FE T, LOCATED O CATED AT 95 FIFTH AVENL E SSE, REQUESTED BY DICK MCCLURE WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION WITH STAFF RECOMMENDATIONS (ADOPT RESOLUTION NO. 10831) (p) CONDITIONAL USE PERMIT TO MOVE 34'X34' HOUSE AND 12'X22' GARAGE ONTO PROPERTY LOCATED AT 495 CALIFORNIA STREET NW • 2 CITY COUNCIL AGENDA - APRIL 22, 1997 • REQUESTED BY ARTHUR DODGE WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION (ADOPT RESOLUTION NO. 10832) (q) CONDITIONAL USE PERMIT TO CONSTRUCT ADDITION TO PRESENT BUILDING LOCATED IN C -5 DISTRICT AT 234 FOURTH AVENUE NW REQUESTED BY DON HANTGE, TRI COUNTY WATER, WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION (ADOPT RESOLUTION NO. 10833) (r) AMENDMENT TO ZONING ORDINANCE NO. 464, SECTION 8.05, 8.06 & 9 REGARDING LOT DIMENSIONS IN R -2 DISTRICT FOR TWO FAMILY DWELLING UNITS WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION WITH STAFF RECOMMENDATIONS (FIRST READING OF ORDINANCE NO. 97 -195 AND SET SECOND READING FOR MAY 13, 1997) (s) SIX MONTH EXTENSION OF CONDITIONAL USE PERMIT FOR BETHANY BAPTIST CHURCH, LOCATED AT 800 GROVE STREET, REQUESTED BY CROW RIVER SPECIAL EDUCATION COOPERATIVE WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION (t) LOT SPLIT ON PROPERTY LOCATED AT 667 BLUFF STREET REQUESTED BY GEORGE AND SHIRLEY FIELD WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION • (u) CONSTRUCTION OF DOG KENNEL IN SECTION 29, HUTCHINSON TOWNSHIP (TWO MILE RADIUS) REQUESTED BY DAVID ALQUIST WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION TO COUNTY (v) APPOINTMENT OF DAVID WETTERLING TO UTILITIES COMMISSION Action - Motion to approve consent agenda (a) LETTING NO. 6, PROJECT NOS. 97 -02, 97 -13, 97 -14, 97 -15, 97 -18, 97 -19, 97 -21, 97 -22, 97- 23,97 -24 Action - Motion to close hearing - Motion to reject - Motion to approve and adopt Resolution(s) COMMUNICATIONS. REQUESTS AND PETITIONS -- NONE (a) SUBMISSION OF DIRECTORS' FIRST QUARTER PROGRESS REPORTS Action - UNFINISHED BUSINESS (a) CONSIDERATION OF REQUESTS FROM ADC SOLITRA (DEFERRED FROM • NOVEMBER 12, 1996) CITY COUNCIL AGENDA - APRIL 22, 1997 r i \J Action - 1R1. (a) CONSIDERATION OF CHANGING CITY COUNCIL MEETING DATE FROM JUNE 10, 1997 TO JUNE 9, 1997 Action - Motion to reject - Motion to approve (b) REVIEW OF CITY COUNCIL WORKSHOP REGARDING TAX INCREMENT FINANCING Action - (c) CONSIDERATION OF LIGHT TRAFFIC ADVISORY BOARD RECOMMENDATIONS FOR PROPOSED 1997 BIKE LANE STRIPING IMPROVEMENTS Action - Motion to reject - Motion to approve (d) CONSIDERATION OF SMALL CITIES GRANT FOR ADAMS STREET NEIGHBORHOOD Action - Motion to reject - Motion to approve and adopt Resolution No. 10830 (e) CONSIDERATION OF AWARDING BID FOR NEW 55 FOOT, HYDRAULICALLY CONTROLLED, AERIAL DEVICE WITH ATTACHMENTS Action - Motion to reject - Motion to approve (f) CONSIDERATION OF AWARDING BID FOR NEW 1998 FORD TRUCK CHASSIS Action - Motion to reject - Motion to approve (a) COMMUNICATIONS (a) VERIFIED CLAIMS Action - Motion to approve and authorize payment from appropriate funds :.� • L�lul 4 C April 17, 1997 Mr. Glenn Matejka 520 Lakewood Drive Hutchinson, MN 55350 Dear Mr. Matejka: The City Council would like to acknowledge the volunteer service you have given to the community by serving on the Planning Commission. Therefore, we extend an invitation for you to attend the April 22, 1997 City Council meeting. Mayor Marlin Torgerson will present you with a plaque of • appreciation which has been engraved with your name on it. The City Council meetings are held in the City Center Council Chambers, and the meeting begins at 5:30 p.m. We shall look forward to seeing you on April 22, if your schedule allows attendance on this date. If you cannot attend, we will schedule the presentation for another Council meeting date. Sincerely, CITY OF HUTCHINSO Marilyn J. Swanson Administrative Secretary cc: Mayor & City Council Gary D. Plotz, City Admin. • City Center 111 Hassan Street SE Parks & Recreation 900 Harrington Street SW Hutchinson, MN 55350 -3097 (320) 587 -2975 Fax (320) 234 -1240 Police Services 10 Franklin Street SW Hutchinson, MN 55350 -2464 (320) 587 -2242 Fax (320) 587 -6427 Hutchinson, MN 55350 -2512 (320)587.5151 Fax (320) 2344240 - Primed on recycled paper - N April 17, 1997 Mr. Craig Lenz 550 Campbell Court Hutchinson, MN 55350 Dear Craig: 11 The City Council would like to acknowledge the volunteer service you have given to the community by serving on the Planning Commission. Therefore, we extend an invitation for you to attend the April 22, 1997 City Council meeting. Mayor Marlin Torgerson will present you with a plaque of appreciation which has been engraved with your name on it. The City Council meetings are held in the City Center Council Chambers, and the meeting begins at 5:30 p.m. We shall look forward to seeing you on April 22, if your schedule allows attendance on this date. If you cannot attend, we will schedule the presentation for another Council meeting date. Sincerely, CITY OF HUTCHINSON J Marilyn J. Swanson Administrative Secretary cc: Mayor & City Council Gary D. Plotz, City Admin. Ll City Center III Hassan Street SE Hutchinson, ,YIN 55350 -2522 (320) 587.5151 Fax (320) 2344240 Parks & Recreation 900 Harrington Street SW Hutchinson, ,VN 55350 -3097 (320) 587 -2975 Fax (320) 2344240 Police Services 10 Franklin Street SW Hutchinson, MN 55350 -2464 (320) 587 -2242 Fax (320) 587.6427 - Printed on recycled paper - C� April 17, 1997 Mr. Jerry Cornell 1365 Westwood Road Hutchinson, MN 55350 Dear Mr. Cornell: The City Council would like to acknowledge the volunteer service you have given to the community by serving on the Utilities Commission. Therefore, we extend an invitation for you to attend the April 22, 1997 City Council meeting. Mayor Marlin Torgerson will present you with a plaque of appreciation which has been engraved with your name on it. The City Council meetings are held in the City Center Council Chambers, and the meeting begins at 5:30 p.m. We shall look forward to seeing you on April 22, if your schedule allows attendance on this date. If you cannot attend, we will schedule the presentation for another Council meeting date. Sincerely, CITY OF HUTCHIN Mari�� Yn Sw anson Administrative Secretary cc: Mayor & City Council Gary D. Plotz, City Admin. City Center 111 Hassan Street SE Parks & Recreation 900 Harrington Street SW Hutchinson. MN 55350 -3097 (320) 587 -2975 Fax(3P0)234 -4240 Police Sert4ces 10 Franklin Street SW Hutchinson, MN 55350 -2464 (320) 587 -2242 Fax (320) 587 -6427 Hutchinson, MN 55350.2522 (320) 587 -5151 Fax ( 320) 234 -1240 Printed on recycled paper - MINUTES • REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, APRIL 8, 1997 The meeting was called to order at 5:30 p.m. by Mayor Torgerson. Present: Mayor Marlin Torgerson, Council Members Bill Craig, John Mhnar, Kay Peterson and Don Erickson. Also present: City Administrator Gary D. Plotz, City Engineer John Rodeberg and City Attorney G. Barry Anderson. 2. The invocation was given by the Reverend Gerhard Bode. 11►L. The minutes of March 25, 1997 and bid opening of March 25, 1997 were approved as presented. 4. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS BUILDING OFFICIAL'S REPORT - MARCH 1997 2. HUTCHINSON AREA HEALTH CARE BOARD MINUTES OF FEBRUARY 20, 1997 3. LIBRARY BOARD MINUTES OF MARCH 31, 1997 4. AIRPORT COMMISSION MINUTES OF MARCH 31, 1997 (b) RESOLUTIONS AND ORDINANCES ORDINANCE NO. 97 -189 - AN ORDINANCE AMENDING SECTION 2.51 OF THE HUTCHINSON CITY CODE ENTITLED "PLANNING COMMISSION" BY DELETING CERTAIN LANGUAGE THERETO AND ADOPTING, BY REFERENCE, CITY CODE CHAPTER 1 AND SECTION 2.99, WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS (SECOND READING AND ADOPT) 2. RESOLUTION NO. 10825 - DESIGNATION OF DEPOSITORY OF CITY FUNDS IN COMMERCIAL BANK 3. ORDINANCE NO. 97 -190 - AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA VACATING ALL UTILITY AND DRAINAGE EASEMENTS LOCATED IN LOT I AND LOT 2, BLOCK 2 AND OUTLOT B OF ISLAND VIEW HEIGHTS FIRST ADDITION (SECOND READING AND ADOPT) 4. ORDINANCE NO. 97 -191 - AN ORDINANCE AMENDING ZONING REGULATIONS IN THE CITY OF HUTCHINSON AND THE OFFI CIAL ZONING MAP (SECOND READING AND ADOPT) 5. ORDINANCE NO. 97 -192 - AN ORDINANCE AMENDING ZONING • ORDINANCE NO. 464, SECTION 8.08, REGARDING MANUFACTURED HOMES (SECOND READING AND ADOPT) CITY COUNCIL MINUTES - APRIL 8, 1997 • (4) REQUEST FROM HUTCHINSON GARDEN CLUB TO USE SIDEWALK ON SOUTH SIDE OF LIBRARY SQUARE ON MAY 17, 1997 FOR FUND- RAISER PLANT SALE (d) GAMBLING DEVICES LICENSE FOR HUTCHINSON WRESTLING CLUB (e) TEMPORARY ON -SALE LIQUOR LICENSE FOR AMERICAN LEGION POST #96 ON APRIL 20, 1997 (f) 1997 ASSESSMENT AGREEMENT WITH MCLEOD COUNTY Motion was made by Erickson, seconded by Mhnar, to approve consent agenda. NONE [�K0 1u irl•1►l�•IJ�l1SiL�:i�Ci 1 ►P r • ► ► •:l MINERN OWN-14WORW (a) CONSIDERATION OF RECOMMENDATION FROM HCDC FINANCE TEAM AND HCDC BOARD OF DIRECTORS TO CONSIDER ACTION ON FINANCIAL ARRANGEMENTS FOR PLASTIC SPECIALTIES MANUFACTURING INC. TO MOVE INTO INDUSTRIAL PARK A presentation was made by Dick Lennes, Mary Beth Schaufler and Tim Ulrich regarding the list of recommendations from the HCDC Finance Team and HCDC Board of Directors. Following discussion, motion was made by Craig, seconded by Mlinar, to approve the entire concept and the list of recommendations presented and to waive first reading of Ordinance No. 97 -193 and set second reading for April 22, 1997. Motion unanimously carried. (b) CONSIDERATION OF SETTING PUBLIC HEARING ON MAY 13, 1997 FOR ECONOMIC DEVELOPMENT DISTRICT IN HUTCHINSON INDUSTRIAL PARK (BLOCK 1, LOT 2) FOR PLASTIC SPECIALTIES MANUFACTURING INC. Following discussion, motion was made by Craig, seconded by Mlinar, to approve setting a public hearing on May 13, 1997 at 6:00 p.m. and to adopt Resolution No. 10828. Motion unanimously carried. (c) CONSIDERATION OF ADOPTING 1998 DEPARTMENT PLANS Following discussion, no action was taken. Motion was made by Mlinar, seconded by Peterson, to hold a City Council workshop on May 13, 1997 at 4:00 p.m. to discuss the 1999 Department Plans. Motion unanimously carried. 11 CITY COUNCIL MINUTES - APRIL 8, 1997 (d) CONSIDERATION OF CEMETERY FEE INCREASES Following discussion, motion was made by Erickson, seconded by Peterson, to approve the new cemetery fee changes, effective April 15, 1997. Motion unanimously carried. (e) CONSIDERATION OF AWARDING BID FOR PURCHASE OF REPLACEMENT FRONT -END LOADER Following discussion, motion was made by Craig, seconded by Mlinar, to award the bid for a 1997 Case 721B front end loader to St. Joseph Equipment to be financed over a four -year period, in five equal payments of $25,186.15 and to sell the City's 1980 Terex front end loader with 2.25 general purpose bucket to Ralph Novotny for $8,200.00. Motion unanimously carried. (f) CONSIDERATION OF AWARDING BID FOR PURCHASE OF 1997 ONE -HALF TON PICKUP TRUCK Following discussion, motion was made by Erickson, seconded by Craig, to award bid to Superior Ford as per City specifications for a net price of $15,438.00 as outlined under option 2 of their proposal, which includes the trade -in of the 1981 Chevrolet truck. Motion unanimously carried. (g) CONSIDERATION OF AWARDING BID FOR PURCHASE OF ONE NEW MINI • VAN Following discussion, motion was made by Erickson, seconded by Craig, to award bid to Superior Ford for a 1998 Ford mini van with front -wheel drive as Per city specifications for a net Price of $19,696.00 (plus tax) as outlined under option 2 of their proposal, which includes the trade -in of the 1989 Ford Aerostar mini van. Motion unanimously carried. (h) CONSIDERATION OF LETTING NO. 6, PROJECT NOS. 97-02,97-13,97-14,97- 15, 97 -18, 97 -19, 97 -21, 97 -22, 97 -23, 97 -24 Following discussion, motion was made by Peterson, seconded by Mlinar, to approve the engineering reports and to set a hearing for Letting No. 6 on April 22, 1997 at 6:00 p.m., and to waive readings and adopt Resolutions No. 10826 and No. 10827. Motion unanimously carried. 9. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ATTORNEY Attorney Anderson addressed Brad Larson's former request to serve liquor in the Hutch Bowl through the adjoining window into the Flyer's bar during the upcoming state bowling tournaments. He reported that after conferring with the Liquor Control Commission and reviewing state law, his conclusion was that it is not permissible to, on a temporary basis, sell alcohol through the window at the Hutch Bowl nor is it permissible for the liquor license holder to dispense liquor that is taken off site • because this becomes an "off sale" which is in violation of the ordinance governing no "off sale" of liquor in Hutchinson. CITY COUNCIL MINUTES - APRIL 8, 1997 • Anderson recommended a thorouO review of Hutchinson's liquor ordinances, with possible amendments to the municipal liquor ordinances, for some time early next year. The City Attorney informed the Council that the Mark Shoutz litigation had been settled for $15,000.00, and no City Council action was required. (b) COMMUNICATIONS FROM COUNCIL MEMBER BILL CRAIG Craig commented on the work performed by City staff and work crews during the hard winter and stated it was appreciated by the citizens. (c) COMMUNICATIONS FROM COUNCIL MEMBER JOHN MLINAR Mlinar suggested holding a Council workshop to discuss the tax increment financing issues and how they relate to each other. Following discussion, motion was made by Mlinar, seconded by Cram, to meet at 4:00 p.m. on April 22, 1997 for a workshop. Motion unanimously carved. (d) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING Rodeberg reported on the flooding and updated the City Council on the current situation. He stated the Crow River bridge took abuse but there was little damage. It was reported that the City donated two pallets of empty sand bags to the City of • Granite Falls. The City Engineer reviewed the draft copy of the Comprehensive Land Use Plan which was distributed to the Council Members. He stated it will be discussed at the April Planning Commission meeting. (e) COMMUNICATIONS FROM MAYOR MARLIN TORGERSON Torgerson read two complimentary letters received from Jack Yates and Scott Newman regarding the Citizens Police Academy program. 10. CLAIMS, PPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS Motion was made by Erickson, seconded by Peterson, to approve the claims and authorize payment from appropriate funds. Motion unanimously carried. 11. ADJOURNMENT There being no further business, the meeting adjourned at 6:35 p.m. • 4 0 11 • MINUTES BID OPENING APRIL 7, 1997 Kenneth B. Merrill, Finance Director, called the bid opening to order at 2:00 p.m. Also present were City Forester Mark Schnobrich and Administrative Secretary Marilyn J. Swanson. Director Merrill dispensed with the reading of Publication No. 5009, Invitation for Bids, Purchase of One New, 1997 Truck Mounted, 55 Foot, Hydraulically Controlled Aerial Device with Attachments. The following bids were opened and read: Dueco, Inc. 1997 Telelect XT -55 Shakopee, MN $67,288.00 No bid was received for the 1978 Ford F -600 truck. Trade -In Price 1978 Ford Truck F -600 $15,000.00 Net Bid: $52,288.00 The bid was referred to the Engineering Department for review and a recommendation. The meeting adjourned. MARCH 1997 CITY OF HUTCHINSON FINANCIAL REPORT - 1997 MARCH 19 ENTERPRISE FUNDS REVENUE REPORT - LIQUOR FUND CURRENT YEAR TO ADOPTED BALANCEPERCENTA • MARCH DATE ACTUAL BUDGET REMAINING USED LIQUOR SALES 57,997.62 165,351.67 770,000.00 604,648.33 21.5% WINE SALES 23,038.48 58,512.47 290,000.00 231,487.53 20.2% BEER SALES 91,255.63 248,217.37 1,380,000.00 1,131,782.63 18.0% BEER DEPOSIT 115.40 (440.40) 0.00 440.40 0.0% MISC. SALES 6,739.90 18,489.89 118,000.00 99,510.11 15.7% LOTTERY SALES (320.00) (414.10) 2,800.00 3,214.10 -14.8% REFUNDS & REIMBURSEMENTS 0.00 975.00 0.00 (975.00) 0.0% CASH DISCOUNTS (1,392.51) (3,647.59) (20,500.00) (16,852.41) 17.8% INTEREST 630.47 1,309.73 5,500.00 4,190.27 23.8% TOTAL 178,064.99 488,354.04 2,545,800.00 2,057,445.96 19.2% EXPENSE REPORT LIQUOR FUND PERSONEL SERVICES 15,337.03 51,385.32 172,488.00 121,102.68 29.8% REPAIR & MAINTENANCE 1,963.98 3,489.83 10,300.00 6,810.17 33.9% CONSULTING 0.00 0.00 4,000.00 4,000.00 0.0% OTHER SERVICE & CHARGES 2,764.00 16,856.28 55,750.00 38,893.72 30.2% DEPRECIATION 0.00 0.00 25,000.00 25,000.00 0.0% DEBT SERVICE 0.00 0.00 37,180.00 37,180.00 0.0% TRANSFERS 0.00 0.00 150,000.00 150,000.00 0.0% COST OF SALES 157,043.66 505,798.38 1,968,575.00 1,462,776.62 25.7% MISCELLANEOUS 463.97 547.92 7,600.00 7,052.08 7.2% CAPITAL OUTLAY 532.03 532.03 3,600.00 3,067.97 0.0% TOTAL 178,104.67 578,609.76 2,434,493.00 1,855,883.24 23.8% REVENUE REPORT - WATER SEWER/FUND SCORE 0.00 32,000.00 138,828.00 106,828.00 23.1% LICENSES 0.00 0.00 GRANT 0.00 100,000.00 100,000.00 0.0% WATER SALES 58,301.56 155,379.53 700,000.00 544,620.47 22.2% WATER TREATMENT SURCHARGE 1,874.46 41.14 0.00 WATER METER 285.00 770.00 14,000.00 13,230.00 5.5% REFUSE SERVICES 43,489.07 114,182.98 460,000.00 345,817.02 24.8% REFUSE SURCHARGE 4,879.69 12,729.32 0.00 (12,729.32) RECYCLE BAGS 0.00 (23.61) 0.00 23.61 0.0% REFUSE STICKER SALES 108.00 203.00 0.00 (203.00) 0.0% REFUSE RECYCLING (5,134.00) (13,984.00) 0.00 13,984.00 0.0% COMPOST CREDIT (750.69) (2,240.18) (10,000.00) (7,759.82) 0.0% COMPOST & RECYCLE SALES 0.00 (15.68) 5,000.00 5,015.68 0.0% SEWER SERVICES 156,883.35 431,004.64 1,900,000.00 1,468,995.36 22.7% PENALTY CHARGES 1,302.37 3,848.30 18,000.00 14,151.70 21.4% INTEREST EARNED 0.00 22,152.08 130,000.00 107,847.92 17.0% LOAN REPAYMENT 411.76 1,235.25 38,630.00 37,394.75 REFUNDS & REIMBURSEMENTS 339.75 369.75 3,000.00 2,630.25 12.3% OTHER 43.00 126.66 6,000.00 5,873.34 2.1% CONNECTION CHARGES 0.00 0.00 0.00 TOTAL 262,033.32 757,779.18 3,503,458.00 2,745,719.96 21.6% EXPENSE REPORT - WATER SEWER/FUND • REFUSE 45,391.50 116,662.77 504,855.00 388,192.23 23.1% WATER 42,981.61 115, 368.48 1,121,746.00 1,006,377.52 10.3% WASTEWATER 93,068.31 288,911.48 2,440,080.00 2,151,168.52 11.8% TOTAL 181,441.42 520,942.73 4,066,681.00 3,545,738.27 112.8% ,Z/ 'CMO purchase anticapted payback is 4.332 years with a yield of 7.328% This instrument receives payments monthly and depending on speed of payment of mortgagages the yield could increase or decrease A GNMA with fixed maturity but has a call date of 8/12197 • Federal Home Loan Mtg Carp w/ Boating rate (floor of 5.0 %) (1) CMO has been repaid in full 617/95 (2) Value is as of 6/30/96 _IT= 1 r Pt r 197,000 .00 300,071.92 300,000.00 100,000.00 rr rrr rr 500,000.00 206,371.04 rr rrr rr DO rrr r• 200,000.00 400,000.00 400,000.00 rr rrr rr 200,000.00 500,000.00 500,000.00 0r rOr rr 400,000.00 600,000.00 500,000.20 $8,062,031.98 9X1111 CITY OF HUTCHINSON CERTIFICATES OF DEPOSIT 21- Apr -97 APRIL 1897 • Date Date Interest Of Of Institution Description Rate Purchase Maturity TREAS BONDS 644136 7.18% 12112(91 2/15/2001 TREAS BONDS 644137 7.13% 12112/91 10/15/98 Smith Barney GNMA 865M7 7.000% 2115193 8/12/2002 Smith Barney 313400 S H 7 5.00% 12130/93 03/10/00 Prudential pod 336914 7.226% 1231 96 0201 2026 Expected Ilfe 6.2 years Smith Barney Fed Home Loan 6.750% 01 03 97 01 03 02 Prudentail pod 336399 7.270% 1231 96 0201 2026 Expected life 4.1 years Citizens, Marquette 4.00% 04/25/96 06/01/2001 Firstate, First Minnesota Prudential Fed Home Leon 7.50% 10/31/95 11/06/00 Smith Barney FNMA 6.09% 12/19/95 12/19/00 Smith Barney FNMA pass thru 7.50% 12/20/95 06/01/02 REPAYMENT First Federal 411239052 5.400% 01/23/97 05/29/97 Firstate 371 6.65% 05/16/96 0511557 First Federal 411239045 5.850% 11/22/96 05126197 Firstate 246 5.70% 10/10/96 06/12/97 Marquette 1847'0874 5.450% 11/14!96 05/15/97 Marquette 1847'01215 5.450% 11/14196 06/12/97 Marquette 18470'873 5.850% 12/12/96 06/12/97 Firstate 1847000000566 5.90% 12/12/96 12/11/97 Citizens Bank 29807 6.000% 2113/97 8/18197 Citizens Bank 29810 5.620% 03 1397 11 2697 Citizens Bank 29809 5.640% 03 1397 10 16 97 Citizens Bank 29811 5.900% 03 28 97 11 2097 Firstate 411241884 5.90% 04/10/97 01/16/98 'CMO purchase anticapted payback is 4.332 years with a yield of 7.328% This instrument receives payments monthly and depending on speed of payment of mortgagages the yield could increase or decrease A GNMA with fixed maturity but has a call date of 8/12197 • Federal Home Loan Mtg Carp w/ Boating rate (floor of 5.0 %) (1) CMO has been repaid in full 617/95 (2) Value is as of 6/30/96 _IT= 1 r Pt r 197,000 .00 300,071.92 300,000.00 100,000.00 rr rrr rr 500,000.00 206,371.04 rr rrr rr DO rrr r• 200,000.00 400,000.00 400,000.00 rr rrr rr 200,000.00 500,000.00 500,000.00 0r rOr rr 400,000.00 600,000.00 500,000.20 $8,062,031.98 9X1111 MARCH 1997 CITY OF HUTCHINSON FINANCIAL STATEMENTS MARCH 1997 REVENUE REPORT - GENERAL CURRENT YEAR TO ADOPTED BALANCE PERCENTAG •TAXES MARCH DATE ACTUAL BUDGET REMAINING USED 0.00 4,025.49 1,485,086.00 1,481,060.51 0.27% LICENSES 7,080.00 11,795.00 25,200.00 13,405.00 46.81% PERMITS AND FEES 5,931.96 15,363.32 169,800.00 154,436.68 9.05% INTERGOVERNMENT REVENUE 2,868.98 43,391.76 2,421,661.00 2,378,269.24 1.79% CHARGES FOR SERVICES 67,590.72 172,281.25 1,063,409.00 891,127.75 16.20% FINES & FORFEITS 4,481.33 8,593.62 72,000.00 63,406.38 11.94% INTEREST 23,225.98 36,740.09 155,000.00 118,259.91 23.70% SURCHARGES - BLDG PERMITS (537.03) 24.35 1,000.00 975.65 2.43% CONTRIBUTIONS FROM OTHER FUND 150.00 13,415.44 1,037,000.00 1,023,584.56 1.29% REIMBURSEMENTS 759.23 5,886.11 32,050.00 26,163.89 18.37% SALES 0.00 0.00 8,300.00 8,300.00 0.00% TOTAL 111,551.17 311,516.43 6,470,506.00 6,158,989.57 4.8% EXPENSE REPORT GENERALFUND MAYOR & COUNCIL 2,501.60 11,001.22 49,589.00 38,587.78 22.2% CITY ADMINISTRATOR 16,673.00 56,508.54 180,046.00 123,537.46 31.4% ELECTIONS 0.00 1,336.99 4,300.00 2,963.01 31.1% FINANCE 17,193.50 72,374.38 311,242.00 238,867.62 23.3% MOTOR VENICE 9,524.80 31,178.76 122,655.00 91,476.24 25.4% ASSESSING 0.00 0.00 29,000.00 29,000.00 0.0% LEGAL 8,771.00 24,856.83 85,900.00 61,043.17 28.9% PLANNING 4,782.20 16,996.00 86,455.00 69,459.00 19.7% POLICE DEPARTMENT 138,561.00 429,937.39 1,517,177.00 1,087,239.61 28.3% SCHOOL LIAISON OFFICER 7,625.90 26,436.58 100,425.00 73,988.42 26.3% EMERGENCY MANAGEMENT 6.70 31.95 3,484.00 3,452.05 0.9 0 /0 SAFETY COUNCIL 0.00 0.00 250.00 250.00 0.0% FIRE DEPARTMENT 12,664.00 31,590.93 169,682.00 138,091.07 18.6% FIRE MARSHAL 2,149.00 7,133.94 25,531.00 18,397.06 27.9% PROTECTIVE INSPECTIONS 11,338.30 42,647.09 145,196.00 102,548.91 29.4% ENGINEERING 28,399.20 86,892.39 354,236.00 267,343.61 24.5% STREETS & ALLEYS 54,805.70 149,943.59 530,389.00 380,445.41 28.3% STREET MAINTENANCE A/C 5,132.50 28,379.83 82,600.00 54,220.17 34.4% CITY HALL 6,718.10 26,301.79 82,951.00 56,649.21 31.7% PARKIREC ADMIN. 9,714.10 34,455.71 132,183.00 97,727.29 26.1% RECREATION 28,648.40 56,320.00 230,106.00 173,786.00 24.5% SENIOR CITIZENS CENTER 6,675.50 23,150.48 102,566.00 79,415.52 22.6% CIVIC ARENA 20,670.50 76,111.89 181,081.00 104,969.11 42.0% PARK DEPARTMENT 48,925.40 137,363.10 584,508.00 447,144.90 23.5% RECREATION BUILDING & POOL 6,265.30 20,194.48 78,744.00 58,549.52 25.6% LIBRARY 20,954.50 45,538.65 110,649.00 65,110.35 41.2% CEMETERY 5,273.10 17,069.67 89,662.00 72,592.33 19.0% DEBT SERVICE 930.00 2,790.00 103,252.00 100,462.00 2.7% AIRPORT 2,596.60 8,375.55 80,860.00 72,484.45 10.4% TRANSIT 9,184.20 32,653.56 156,476.00 123,822.44 20.9% COMMUNITY DEVELOPMENT 5,852.20 18,126.99 79,937.00 61,810.01 22.7% UNALLOCATED 67,416.20 98,831.86 659,374.00 560,542.14 15.0% TOTAL 559,952.50 1,614,530.14 6,470,506.00 4,855,975.86 25.0% 0 MINUTES HUTCHINSON PLANNING COMMISSION Tuesday, March 18, 1997 1. 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, and Craig Lenz. Absent: Bill Craig, Glen Matejka, and Paul Ackland. Also Present: Jim Marka, Director of Building, Planning and Zoning; Bonnie Baumetz, Planning and Zoning, Mark Hensen, Building Inspector, and Larry Huhn, Engineering Dept. 2. CONSENT AGENDA a) CONSIDERATION OF MINUTES OF REGULAR MEETING DATED FEBRUARY 18, 1997 Mr. Arndt made a motion to approve the minutes dated February 18, 1997, Seconded by Mr. Westlund motion carved unanimously. 3. PUBLIC HEARINGS a) CONTINUATION OF CONSIDERATION OF VACATION OF OUTLOT "B" TO VACATE ALL UTILITY AND DRAINAGE EASEMENTS LOCATED IN ISLAND VIEW HEIGHTS FIRST ADDITION REQUESTED BY MR. BILL GILK, SCENIC HEIGHTS INVESTMENT. b) CONTINUATION OF CONSIDERATION OF A PRELIMINARY PLAT TO BE KNOWN AS "ISLAND VIEW HEIGHTS SECOND ADDITION" LOCATED IN THE FORMER ISLAND VIEW HEIGHTS FIRST ADDITION PLAT, REQUESTED BY MR. BILL GILK, SCENIC HEIGHTS INVESTMENT. C) CONTINUATION OF CONSIDERATION OF REZONING "ISLAND VIEW HEIGHTS SECOND ADDITION" FROM R -1 (SINGLE FAMILY RESIDENCE) TO P.D.D. (PLANNED DEVELOPMENT DISTRICT) REQUESTED BY MR. BILL GILK, SCENIC HEIGHTS INVESTMENT. d) CONTINUATION OF CONSIDERATION OF PLANNED DEVELOPMENT DISTRICT LOCATED IN ISLAND VIEW HEIGHTS SECOND ADDITION REQUESTED BY MR. BILL GILK, SCENIC HEIGHTS INVESTMENT. 40 Chairman Dean Wood reopened the hearing at 5:31 p.m. with the reading of publications #4996, #4997, #4998, and #4999 as published in the Hutchinson Leader on Thursday, February 6, 1997. The request is for the purpose of considering a request by Mr. Bill Gilk, Scenic Heights Investment, to consider a petition to vacate all utility and drainage easements located in Island View Heights First Addition, Lots 1 & 2, Block 2 and Outiot B, to consider a preliminary plat to be known as "ISLAND VIEW HEIGHTS SECOND ADDITION" located in the former ISLAND VIEW HEIGHTS FIRST ADDITION PLAT, to consider the request to rezone property located in Island View Heights Second Addition from R -1 (Single Family Residence) to R -1/R -2 P.D.D. (Planned Development District), and consideration of a Planned Development District located in Island View Heights Second Addition. Mr. Marka, explained the request and read the planning staff recommendations. He also explained the changes Mr. Gilk had made to the plans. Mr. Gilk has is in the process of updating the title opinion to the property. Mr. Marka stated planning staff recommends approval of the requests. Mr. Gilk would like to start construction immediately after Council approval. Bill Gilk presented and explained the plans showing home elevations. He also had plans showing plantings. David Byron, 949 Hayden Ave. S.W. said he would encourage wider width lots next to the First Addition along the lake side. Mr. Marka stated the lots have remained 80' wide with 30' setbacks meeting ordinance requirements. David Byron mentioned that he had some concerns regarding the park on the previous plans, but he did approve of the present plans. Mr. Gilk said they met requirements with width on lake shore lots. Mr. Westlund asked if there were covenants on the lake side. Mr. Gilk said the covenants on the First Addition would continue on the lake shore lots in his development. Scott Hagg explained the covenant in the First Addition. • Mr. Gilk stated, he has talked with Mr. Moon, Parks and Recreation Director, regarding a building in the park. He explained, that he had proposed constructing a building to be used for storage during the construction of his development and later it would be turned over to the City. Mr. Gilk said this would be a coordinated effort for a building to work for them and the City. Mr. Arndt asked if there is any proposed fencing around the pond. Mr. Gilk explained the proposed sloping of the pond. Mr. Marka said the city has an interim standars for pond design regarding the slope of the pond, and Mr. Rodeberg, City Engineer had reviewed the plans. n (-2) HUTCHINSON PLANNING COMMISSION MINUTES MARCH 18, 1997 Mr. Arndt asked if the tree line on the north end behind the existing lots would on the present property owners lots. Mr. Marka said the plantings are not a requirement, although it is proposed on plat, and the City cannot require something that would infringe on another individual's property. Mr. Gilk said the trees will have to be 4, 5, 6' tall and planted shoulder to shoulder on north side of Cty. Rd. 82 so that they may serve as a snow wind break next winter. John Macemon, 1120 So. Grade Ct, explained that he had talked with Mark Schnobrich, city forester. He said Mr.Schnobdch had stated he would put 10' trees on County Rd. 82 and on his lot. Mr. Macemon commented this would take up 25' of his back yard. He would like more trees planted on Mr. Gilk's property. The planning commission would like staff and Mark Schnobrich to take another look at the windbreak. - Mr. Arndt made a motion to close the hearing, seconded by Mr. Lenz. The hearing closed at 6:08 p.m. Motions were made as follows: Item a) Mr. Lenz made a motion to recommend approval. Seconded by Mr. Westiund the motion was carried unanimously. Item b) Mr. Lenz made a motion to recommend approval with staff recommendatons. Seconded by Mr. Westlund the motion was carried unanimously. Item c) Mr. Lenz made a motion to recommend approval. Seconded by Mr. Westlund the motion was carried unanimously. Item d) Mr. Lenz made a motion to recommend approval. Seconded by Mr. Westlund the motion was carried unanimously. e) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY THE HUTCHINSON SCHOOL DISTRICT FOR ADDITIONS TO WEST ELEMENTARY, PARK ELEMENTARY, AND THE MIDDLE SCHOOL. Chairman Dean Wood opened hearing at 6:10 p.m. with the reading of publication #5002 as published in tLe Hutchinson Leader on Thursday, March 6, 1997. The request is for the purpose of considering a condRi use permit by the Hutchinson School District for additions to West Elementary, 875 School Road S.W.; PW Elementary, 100 Glen Street S.W.; and Middle School, 1365 South Grade Rd. Ms. Baumetz gave the background information for the proposed school improvement projects. Phil Behread, architect with ATS &R and John Carter from the School District explained the plans for the additions on West Elementary, Park Elementary, and the Middle School. Mr. Marka commented on the plan review. Mr. Amdt expressed concerns regarding school bus driveways and parking. He also asked to have fill from the construction placed along South Grade Road for a walking path. It was recommended that John Rodeberg check on the feasibility of this before making any recommendations. Dale Baker from the school district said driving and parking conditions will be improved when the construction projects are completed. Mr. Lenz made a motion to close the hearing, seconded by Mr. Westlund the hearing closed at 6:28 p.m. Mr. Arndt recommended approval with staff recommendations to consider improvements on South Grade Road, and aligning the access off the West Elementary parking lot with 8th Avenue S.W. Seconded by Mr. Westlund motion carried unanimously. f) CONSIDERATION OF CONDITIONAL USE PERMIT TO CHANGE USE OF A COMMERCIAL BUILDING TO A CHURCH LOCATED IN THE C-4 DISTRICT (FRINGE COMMERCIAL) 560 ADAMS ST. REQUESTED BY THE APOSTOLIC LIGHTHOUSE CHURCH. Chairman Dean Wood opened hearing at 6:35 p.m. with the reading of publication #5003 as published in the Hutchinson Leader on Thursday, March 6, 1997. The request is for the purpose of considering a condifigiffiL use permit by Apostolic Lighthouse Church to change use of a commercial building to a church located inqr C-4 District (Fringe Commercial) 560 Adams St. Ms. Baumetz explained the requirements on parking noting a Adams Street is scheduled for reconstruction. There will be no on- street parking when it is completed. HUTCHINSON PLANNING COMMISSION MINUTES MARCH 18. 1997 Mr. Marka stated it is a nonconforming structure in the C-4 District. Mr. Arndt made a motion to close the hearing, seconded by Mr. Lenz the hearing closed at 6:36 p.m. Mr. Lenz made a motion to recommend approval of the request. Seconded by Mr. Westund motion carried unanimously. g) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY SHERRON THEIN TO PLACE A PORTABLE SIGN ON CITY PROPERTY NEAR THE CORNER OF HARRINGTON AND SOUTH GRADE RD. Chairman Dean Wood opened hearing at 6:45 p.m. with the reading of publication #5004 as published in the Hutchinson Leader on Thursday, March 6, 1997. The request is for the purpose of considering a conditional use permit requested by Ms. Sherron Thein to place a portable sign on City property near the corner of Harrington Street and South Grade Road. Ms. Baumetz explained the sign ordinance and the location of the sign at the Civic Arena. Ms. Baumetz also informed the commission of the second event to be held in October. She explained the second event would be included in this conditional use permit. Mr. Arndt recommended publishing a letter in paper concerning signs in public flower gardens. Mr. Arndt moved to close the hearing, seconded by Mr. Westlund the hearing closed at 6:50 p.m. Mr. Lenz made a motion to recommend approval of the request. Seconded by Mr. Amdt the motion carried unanimously. h) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY ELROY DOBRATZ TO REPLACE EXISTING GARAGE WITH A 24'X 32' GARAGE LOCATED AT 603 - 2ND AVE. S.W. Chairman Dean Wood opened hearing at 6:50 p.m. with the reading of publication #5005 as published in the Hutchinson Leader on Thursday, March 6, 1997. The request is for the purpose of considering a conditional use permit requested by Mr. EIRoy Dobratz to replace existing garage with a 24'x 32' garage located at 603 - 2nd Ave. S.W. Mr. Marka explained request, and stated planning staff recommended approval. Mr. Arndt moved to close the hearing, seconded by Mr. Lenz the hearing closed at 6:52 p.m. Mr. Arndt made a motion to recommend approval of the request with staff recommendations. Seconded by Mr. Lenz the motion carried unanimously. I) CONSIDERATION OF VARIANCE REQUESTED BY BRUCE PETERSON TO REPLACE EXISTING GARAGE WITH A 24'X 24' GARAGE LOCATED AT 204 GROVE ST. Chairman Dean Wood opened hearing at 6:40 p.m. with the reading of publication #5006 as published in the Hutchinson Leader on Thursday, March 6, 1997. The request is for the purpose of considering a request for a variance by Mr. Bruce Peterson to replace an existing garage with a 24'x 24' garage located at 204 Grove Street. Mr. Marka stated he had met with Mr. Peterson and reviewed the site. The lot depth is substandard making it a hardship. Curb cuts would stay where they are. There are no easements in the area. Mr. Arndt made a motion to close the hearing, seconded by Mr. Lenz the hearing closed at 6:45 p.m. Mr. Arndt made a motion to recommend approval with staff recommendations. Seconded by Mr. Westlund the motion carried unanimously. j) CONSIDERATION OF AMENDMENT TO THE ZONING ORDINANCE SECTION 8.08 REGARDING MANUFACTURED HOMES. Chairman Wood opened the hearing at 6:50 p.m. with the reading of publication # 5007 as published in Thg Hutchinson Leader on Thursday. March 6, 1997. The request is for the purpose of the consideration to amend the zoning ordinance section 8.08 regarding manufactured homes. A suggestion was made to have staff monitor the clean up of Country Club Terrace. Mr. Lenz made a motion to close the hearing, seconded by Mr. Arndt the hearing closed at 6:51 p.m. Mr. Lenz • made a motion to recommend approval with staff recommendations. Seconded by Mr. Arndt the motion carried unanimously. HUTCHINSON PLANNING COMMISSION MINUTES MARCH 18. 1997 4. OLD BUSINESS a) REVIEW OF LOT DIMENSIONS IN THE MEDIUM DENSITY DISTRICT • Mr. Marka explained planning staff recommendations. Mr. Wesbund made a motion to recommend moving review of lot dimensions to next month's agenda as a public hearing. Mr. Lenz seconded the motion. The motion carried unanimously. b) COMPREHENSIVE PLAN UPDATE Mr. Marka explained updating the comp. plan to a working document that can easily be changed by staff. Larry Huhn explained the technology and ease that maps can be updated with base maps. Mr. Lenz said being involved with the updating process of the comp. plan was a great learning experience. He would like the county to have some of our maps for information. Mr. Lenz recommended forwarding to the council the approved dated maps and have a monthly review of one or two section of the comp. plan. Seconded by Mr. Arndt the motion carried unanimously. 5. NEW BUSINESS a) DISCUSSION OF CONDITIONALLY PERMITTING LIGHT'LOW IMPACT' HIGH TECHNOLOGY INDUSTRY IN THE C-4 DISTRICT. Mr. Marka explained the business climate is changing. Permitting light "low-impact' high technology industry in the C-4 District could provide uses of vacant buildings. Mr. Arndt recommended taking case by case. Ms. Baumetz commented on the seminar April 17 in St. Cloud for planning staff and commissioners. Those attending will be Jim Haugen, Marilyn Swanson, Bonnie Baumetz, and possibly Dave Wesbund. Ms. Baumetz explained the new interest in commissions form which will be distributed to the public through City newsletter. There being no further business the meeting adjourned at 7:17 p.m. H: \PLANNING \PC3- 18.WPD • 0 HUTCHINSON TREE BOARD FETING MINUTES, JANUARY 30, 1997 In attendance: Dave Larson, Ray Wurscher, Jay Beytien, Laura Poser, and Brian Brosz. Opened @ 5:25 by Dave Larson. First topic of conversation, presented by Dave, was the Bluebird house building held at Gopher Campfire on April 12th. Dave suggested holding our Arbor Day celebration there by having a booth. He recalled that Mark Schonbrich gave away trees last year, and hopes that we can expand that with possibly a film, a Tree City banner /flag, and a sign -up sheet for an "Adopt A Tree" promotion. will need to check with Mark as to the banner availibility. The Adopt -A -Tree would be asking for children to volunteer to adopt a tree for the purpose of keeping it watered. We could expand that into having a family signing up, not just children. We would like to have this to help us reduce the loss of trees, and also use this program in our next presentation to the Hutchinson Utilities Commission's Board. L MINUTES Parks, Recreation & Community Education Advisory Board 0 March 6, 1997 Members present were Mike Schall, John Mlinar, Loretta Pishney, J.P. Auer and Rev. Brian Brosz. Also present were Dolf Moon, John Arlt and Karen McKay. The meeting was called to order at 5:20 p.m. The minutes dated February 6, 1997 were approved by a motion made by Loretta Pishney and seconded by John Mlinar. The board unanimously agreed 5 -0. Annual Report - The Board appreciated PRCE staff presenting their year end statistics. Baseball Proar - S 19,500 of baseball registrations were taken from a two day signup at the Muddle School. The city league and the Junior League Baseball players will wear common colored caps and pants. The Junior Baseball League has a limited number of openings for registration available, the city leagues have an unlimited registration, however a late fee is charged after June 6th. The Softball Association would like to do a similar registration signup. Community Education Buda et - The new superintendent requires a zero based budget. In Community Education the budget is fee based, a modified zero based budget is followed. If costs are not covered, classes are cancelled. With a $204,000 budget, Youth Services and Adult Basic Education are included. P D1 - A subcommittee is formed to develop job descriptions for positions, a calendar of use, they are also contacting user groups to find out what their needs are. The referendum passed with the intention that the pool will be used for education first, community use second priority and competitive activities third. The High School locker rooms will be under construction beginning March 21 st, the gym will be usable. 75 people are signed up for spring swimming lessons, they will be receiving a letter of explanation and a full refund. Proaram Committee Recommendation - Greg Ewing was present representing the Programming Committee. After reviewing the minutes from the Programming Committee's February meeting, Greg outlined the reasoning for the recommendation from the Committee. The Committee recommends that the city's responsibility to the community is to provide skating lessons to pre - school age up to and including freestyle level three. This was determined because of the amount of time that is spent overseeing the skating program when other recreational activities need attention also. The city basically provides opportunities for users up through the eighth grade in group lessons or teams, whereas the skating program goes beyond that when freestyle four and above require more individualized needs. Survey results show that freestyle level three and below are pleased with the way the skating program is run, while level four and above are unhappy with instructors and amount of ice time available to skaters. The Programming Committee felt the Hutchinson Figure Skating Association could rent ice, secure a coach to teach freestyle four and above and oversee the junior and senior precision teams. -4 (� L) bIINL1TES Parks, Recreation & Community Education Advisory Board March 6, 1997 Page two Proaram Committee Recommendation Cont. After discussion, Board members were going to contact HFSA representatives to find out what some of the issues are, and recommended that a task force be formed. This item was tabled and will be on the April agenda. Porky & Facilities Recommendation - The Board received a copy of a recommendation from the Parks and Facilities Committee to increase the cost of renting picnic tables and bleachers beginning in 1998. Beg4u»ng in 1997 they are also recommending a release of liability be signed in addition, the parks staff will need to check in the rental items following the rental. A proof of insurance must be shown, and the method of transportation needs to be approved prior to the release of items for large rentals. J.P. Auer made a motion to accept the recommendation as outlined by the Parks and Facilities Committee, John Mlinar seconded the motion. The Board agreed unanimously 5 -0. Lutheran - n Brotherhood Adoptive Group of Fireman's Park - The Board received a request from Dick Fischer, representative of Lutheran Brotherhood, asking for approval to adopt Fireman's Park. Lutheran Brotherhood have made a commitment to make park improvements for five years beginning with the donation of a tree. John Arlt has spoke with members of the Fire Department and they have given initial approval, a final decision will be made at the next regular meeting of the Fire Department. The park would be called Fireman's Park adopted by Lutheran Brotherhood. J.P. Auer made a motion to approve the proposal made by Lutheran Brotherhood contingent with the Fire Department's approval. Loretta Pishney seconded the motion and the Board agreed unanimously 5 -0. The meeting was adjourned at 6:45 p.m. by a motion made by John Mlinar and seconded by Loretta Pishney, the Board unanimously agreed 5 -0. klm RESOLUTION TO APPROPRIATE/SALE AT AUCTION • OF UNCLAIMED PROPERTY Resolution No. 10829 WHEREAS, the Hutchinson Police Department has accumulated various unclaimed items; AND WHEREAS, the Hutchinson City Code provides pursuant to Section 2.70, Subdivision 2, Paragraph C for the appropriation and sale at auction of unclaimed property; AND WHEREAS, the unclaimed property has been in the possession of the police department for more than sixty (60) days; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. That the Hutchinson City Council hereby approves the appropriation of unclaimed items identified on Attachment A to the City of Hutchinson. 2. That the Hutchinson City Council hereby approves the sale at auction of • unclaimed items identified on Attachment B. Adopted by the City Council this 22th day of April, 1997. Mayor City Administrator 11 3 prybars • Motorola cellular phone 4 screwdrivers Pliers Padlock, key & cable set 4 calculators • • ATTACHMENT A 1 Sega Genesis game -King Salmon 1 Sega Genesis game - Olympic Gold 2 Igloo Playmate coolers • 1 Igloo Legend 24 cooler Hummingbird flag 1 cement rabbit 3 cement skunks 1 plastic squirrel 3 plastic rabbits 26 driveway reflectors (red & blue) Bart Simpson whirlygig Road Runner whirlygig Wooden Tulips Candy cane lawn ornament Blue tent hatchet 1 crowbar 2 tire irons wood handled pick 1 pin (farm implement type) 1 Eveready flashlight 1 floor jack Fire extinguisher 8 hunting knives with sheaths 2 machettes in cases • 1 filet knife in case Sears wooden baseball bat 1 Rawlings youth glove 1 red Wilson minipro glove 1 'Wvix filter' flashlight Zebco Deliar scale and measure Remington clippers 1 deck "Bicycle" playing cards MTX RTA230 30 watt amplifier 2 Pioneer IMPP speakers Alpine CD changer CHM -5600 with remote CD shuttle control Jensen JX2300 2/3 way electronic crossover Multi channel ampler 100Wx4 mosfet power Onkyo Integra stereo cassette tape deck Sony 5 disc player Denon AM/FM stereo receiver 2 speakers in wooden homeade box with black metal covers Sony car stereo AM/FM cassette Kraco in dash cassette tape player AM/FM Pioneer AWFM stereo Sparkomatic AWFM cassette stereo Pioneer speaker Realistic equalizer /booster ATTACHMENT B -1 Kraco power booster PB131 B Realistic cassette stereo Jensen 60 watt EQA77 equalizer 2 Pioneer mini tune up speakers • Sharp stereo AM/FM cassette player Sears, Roebuck, and Co. AM/FM Cassette Kraco AM/FM Cassette Audiovox AM /FM Mobile Authority AM/FM Cassette Daytron AM/FM Cassette Bell South Cordless phone/answering machine Panasonic easaphone Realistic wireless intercom Texas instrument day /month/year Whistler 225 radar detector Whistler 225 Radar Detector Trapshooter Radar Detector Uniden Radar Detector Road Patrol Radar Detector White diaper bag Sharks jersey Gray face mask Starter Jacket "UK' 2 black backpack type purses Small wooden ornate box 2 beach towels • Nike baseball hat 3 t -shirts Gray Champion shirt Tan purse with brown strap Levi jeans 30132 Nike Jersey (Size M) green flowered suitcase 2 cards of necklace & earring combos 3 cards of earrings 1 ladies Timex wristwatch 1 gold colored ring with with stone & 2 clear stones 1 Black Hills gold ring 2 -South Dakota necklace & earring sets with colored stones 1 -gold colored chain 1 gold colored Rolex mens watch Gold colored butterfly ring 32 Rings in boxes (Black Hills Gold type) 5 Necklaces in boxes (Black Hills Gold type) 4 pairs of earrings in boxes (Black Hills Gold type) 1 single earring on card Bicycles & bicycle parts Stroller ATTACHMENT B -2 0 M E M O R A N D U M DATE: April 22, 1997 TO: Mayor & City Council FROM: Water Billing Department SUBJECT: Delinouent water & sewer accounts for the month of April Attached is a listing of the delinquent water and sewer accounts for the month of Apr. Recommend service be discontinued on Monday, . April 28th, 1997 at Noon. E '�/ - d�I • 2- 035- 0503 -0702 2- 350- 05050 -0201 Shellie Amelsberg Richard Mattson 503 2nd Ave SW 505 Dale St Hutchinson MN 55350 Hutchinson MN 55350 503 2nd Ave SW 505 Dale St 114.56 80.84 CC: Mike Mooney 65 Game Farm Rd 2-470- 0715 -0301 Maple PLain MN 55359 E Duesterhoeft 715 Harrington St 2- 070 - 0728 -0205 Hutchinson MN 55350 Mark Carrigan 715 Harrington St 728 4th Ave SW 146.36 Hutchinson MN 55350 728 4th Ave SW 2 -555- 0530 -0401 87.98 Angela Biehler 530 Jackson St 2- 310 - 0934 -0202 Hutchinson MN 55350 Wm Herding 530 Jackson St 934 Church St 98.69 Hutchinson MN 55350 • 934 Church St 2 -580- 0585 -0703 166.52 Pam Pulkrabek PROMISES 5 -2 -97 585 Juergens Rd Hutchinson MN 55350 2- 350- 0325 -0002 585 Juergens Rd Thomas Smith 99.53 325 Dale St Hutchinson MN 55350 15- 0555 -0202 325 Dale St Jim eitzreutz 180.80 555 L wood Hutchinso 55350 2- 350 -0344 -0704 555 ewoo r Terry Sitz L .63 344 Dale St Hutchinson MN 55350 2- 670 - 0230 -0706 344 Dale St Brian Yarborough 145.77 230 Lynn Rd Hutchinson MN 55350 230 Lynn Rd 245.41 r- I i 2- 670 - 0400 -0109 John Sandahl • 400 Lynn Rd Hutchinson MN 55350 400 Lynn RD 117.38 2- 675- 0544 -0301 Keith Krommenhoek 544 Madson Ave Hutchinson MN 55350 544 Madson Ave 98.06 2- 700 - 1320 -0001 Ronald J Thompson 1320 McDonald Dr Hutchinson MN 55350 1320 McDonald Dr 99.05 PROMJES 5 -2 -97 2- 725 -0946 -0402 • Dr Lobeck 946 Osgood Ave Hutchinson MN 55350 946 Osgood Ave 143.00 2- 465- 0533 -0002 Thomas Clabo 533 Harmony La Hutchinson MN 55350 533 Harmony La 124.94 1 -575- 0992 -0301 W Duesterhoeft 225 Shady Ridge Rd Hutchinson MN 55350 992 Jorgenson St 103.20 CC: Nathan Libbon 992 Jorgenson St Hutchinson MN 55350 0 0 • ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP DAVID B. ARNOLD' STEVEN A. ANDERSON G. BARRY ANDERSON LAURA K. FRETLAND PAUL D. DOVE' JANE VAN VALKENBURG RICHARD G. McGEE CATHRYN D. REHER WALTER P. MICHELS, III 1 AL30 ADM ITCD IN TC .S AND NEW YORK Mr. Gary D. Plotz City Administrator Hutchinson City Center 111 Hassan Street S. E. Hutchinson, Mn. 55350 RESIDENT ATTORNEY G. BARRY ANDERSON April 14, 1997 Re: Richard Waage and the City of Hutchinson Our File No. 3244 -96101 Der Gary: 8 'R 14 1997 — it HUTCH. '7y OF COUNSEL ARTHUR L. DOTEN TERRI A. BLOMFELT 5861 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545 -9000 FAX (612) 545 -1793 FAX (612)542 -9210 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 389 -2214 FA% (612) 369 -5506 I am enclosing herewith a copy of the official Rule 68 Offer of Judgment which was accepted by opposing counsel. I would ask that you place this on the consent agenda for action by the City Council at its next regularly scheduled City Council meeting. The Rule 68 Offer of Judgment is consistent with discussions that I had with the Council during a closed meeting of the City Council a few weeks ago. I spoke with the claims representative for the League Trust regarding payment of the settlement proceeds and she was going to speak with her superior regarding whether or not the reservation of rights was at all effective with respect to this matter. I take the position that all of the damages and any attorney's fees awarded to Waage ought to be the responsibility of the Leagu Trust and I am not certain what the position of the League Trust is with respect to this matter. I expect to hear from him sometime in the next several days. I do believe this correspondence, although not the Offer of Judgment form, is protected by attomey /client privilege since it references discussions at the closed meeting stage of these proceedings. Should you have any questions regarding any of the foregoing, please advise. Thank you. Best regards. Very truly yours, J'a 4An ERS DOVE, PLLP GBarry , !, ¢ n GBA:lm C C Tim Pawlenty ATTORNEYS AT LAW 101 PARK PLACE HUTCHINSON, MINNESOTA 55350-2563 (320) 587 -7575 FAX (320) 587 -4096 'CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERT', LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP DAVID B. ARNOLD STEVEN A. ANDERSON G. BARRY ANDERSON LAURA K. FRETLAND PAUL O. DOVE ** JANE VAN VALKENBURG RICHARD G. MCGEE CATHRYN D. REHER WALTER P. MICHELS, III 'ALSO ADMITTED IN TE.. AND NEW TORN (320) 587 -7575 FAX (320) 567 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON April 18, 1997 APR 18 1997 ci- )F HUTCHi 0 OF COUNSEL ARTHUR L. OOTEN TERRI A. BLOMFELT 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 345 -9000 FAX (612) 545 -1793 FAX (612) 542 -9210 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 389 -2214 Mr. Gary D. P1otz FAX (612) 389 -5506 City ` Administrator Hutchinson City Center PROTECTED BYATTORNEY /CLIENT PRMLEGE 111 Hassan Street S.E. Hutchinson, Mn. 55350 Re: Richard Waage vs. City of Hutchinson Court File No. 97- 350/PAM/JGL Our File No. 3244 -96101 Dear Gary: Since I last wrote to you about the above referenced matter, I have had a subsequent telephone conference with Ms. Dees of the League Trust. To review matters, as you know, counsel for the plaintiff in the above entitled dispute has submitted a bill for $36,000 in legal fees which, under the offer of judgment, would be the responsibility of the City if the Court were silly enough to order ful l payment of that amount which I think, to put it mildly, is extremely unlikely to happen. I have taken the position that this item, as well as the payment of the general damage amount are the responsibility of the League Trust under the policy of insurance that the City has with the League Trust. I can now confirm for you that Ms. Dees, who is the claims representative on the file, has conceded that I am correct relative to the attorney's fees and the matter of who pays what percentage of the $15,000 settlement has been kicked up stairs to be debated among the policy makers at the League Trust. I indicated to her that it would certainly be convenient if we knew what their position was on the r emainin g amounts that have not yet been conceded because the City Council would be meeting on Tuesday evening. She has certainly been very cooperative and helpful throughout the process and indicated she would make every effort to get us information regarding the position of the League Trust on the $15,000 settlement proceeds by our Tuesday evening meeting. I will report more as I learn more. If you should have any questions regarding any of the foregoing, please advise. Thank you. Best regards. Very truly yours, LD, ARSON & OVE, PLLP I G B Anderson GBA :lm ATTORNEYS AT LAW 101 PARK PLACE HUTCHINSON, MINNESOTA 55350-2563 0 • 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 UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA Richard D. Waage, Plaintiff, kv City of Hutchinson, Minnesota, DEFENDANT'S RULE 68 OFFER OF JUDGMENT Civil Action No. 97 -350 PAMJJGL Defendant. TO: PLAINTIFF ABOVE -NAMED AND HIS ATTORNEY, JOSEPH B. MARSHALL, ESQ., MARSHALL AND ASSOCIATES, 9501 LEXINGTON AVENUE NORTH, CIRCLE PINES, MINNESOTA 55014 PLEASE BE ADVISED that pursuant to Minnesota Statute § 549.09, subd. 1 and Rule 68 of the Federal Rules of Civil Procedure, Defendant makes a written Offer of Settlement in the amount of Fifteen Thousand Dollars (515,000.00), plus reasonable attorneys fees, costs and disbursements, • accrued to date as determined by the Court, said sum being offered in compromise and settlement of a disputed claim for damages in the above - entitled case. This Offer of Settlement is made for the purposes specified in Rule 68, and is not to be construed either as an admission that the Defendant is liable in this action, or that the Plaintiff has suffered any damage. Notice is hereby given that Defendant will seek to recover all allowable costs and disbursements incurred after this notice and will seek to limit Plaintiffs attorneys fees should the verdict in this case be less favorable to the Plaintiff than this Offer of Settlement. ER, BENNETT, UNDEL, LP a 3 By Timothy J. Pawlenty (4177593) Dale L. Deitchler ( 4233109) Attorneys for Defendant 2000 Metropolitan Centre 333 South Seventh Street • AA.. -- -- __ 11 p Minneapolis, Minnesota 55402 DATED: 1 Z d . 1 1997 (612) 340 -7951 122020- 122020.1 _ �� U.S. DISTRICT COURT • DISTRICT OF MINNESOTA FOURTH DIVISION Court File No: 97 -350 Richard D. Waage, PAM /JGL Plaintiff, CASE TYPE: CIVIL Jury Trial Demanded VS. City of Hutchinson, ACCEPTANCE OF OFFER Defendant. PURSUANT TO RULE 68 TO: ABOVE NAMED DEFENDANT and it's attorneys, Timothy J. Pawlenty and Dale L. Deitchler, Rider, Bennett, Egan & Arundel, LLP, 2000 Metropolitan Centre, 333 South Seventh Street, Minneapolis, Minn. 55402. NOTICE IS HEREBY GIVEN that Plaintiff hereby accepts Defendant's offer to take judgment in settlement of the above litigation under the provisions of Rule 68, Federal Rules of Civil Procedure. Specifically, Plaintiff accepts the following offer and will seek to enter judgment accordingly: Offer of Settlement in the amount of Fifteen Thousand Dollars ($15,000.00), plus reasonable attorneys fees, costs and disbursements, accrued to date as determined by the Court. . . Attached hereon and submitted herewith is the original Defendant's Rule 68 ! Offer of Judgment. DATED: �7 MAR AND A88O¢I4T]ES, Attorney for Plaintiff 9501 Lexington Avenue North • Circle Pines, MN 55014 (612) 784 -0890 AFFIDAVIT OF SERVICE BY MAIL STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) Sandra S. Zitterow, of the City of Bloomington, County of Hennepin, State of Minnesota, being first duly swom, on oath deposes and says that on the 28th day of March, 1997, she served the following documents: 1. Defendant's Rule 26 Disclosures; and 2. Defendant's Rule 68 Offer of Judgment. on Joseph B. Marshall, counsel for Plaintiff by mailing to him a copy thereof, enclosed in an envelope, postage prepaid, addressed as follows: Joseph B. Marshall, Esq. Marshall & Associates, P.A. 9501 Lexington Avenue North Circle Pines, MN 55014 A counsel's last known address, and by depositing same in the post office in Minneapolis, Minnesota. Sandra S. Zitterow Subscribed and swom to before me this 28th day of March, 1997. Notary Publi . nnnNV.M�.vvw✓✓vwwvw�wv�vwvN ■ SHELLY L. BAKER NOTARY PUBLIC - MINNESOTA DAKOTA COUNTY . 1h C=01N40 i Ex0rn J■I. 31,1000 • 133020- 133020.1 APR -22 -1997 14:19 LMCIT- HERKLEY RISK SVCS 612 281 1297 P.01iO4 facsimile TRANS M I T T A L to: Barry Anderson tax M (320) 587 -4096 re: Waage vs. City of Hutchinson date: April 22, 1997 pages: 4, including this cover sheet Barry, Pursuant to our conversation, attached please find a copy of the reservation of rights letter on the abovementioned matter. Please call me with the council's decision. Thank you, la ! v Andriel M. Dees • From the desk of... AndrW M. Dees Empbyr nt Clalma Speciallat League of Minnesota cities 145 University AVenUe Weet St. Paul, MN 55103-2044 (612) 2194075 Fax: (612) 281 -1297 • APR -22 -1997 14:20 L MIC Lregw W'a Vxe.sota C"Ga Cm« M*.*O g e: December 18, 1996 Gary D. Plotz LMCIT- BERKLEY RISK SVCS 612 281 1297 P.02iO4 145 Universitv Avenue West, St. Paul, MN 55103 -2444 • Phone (612) 281 -1200 • (800) 925 -1122 Fax: (612) 281 -1299 • TDD (612) 281 -1290 City Administrator City of Hutchinson 111 Hassan Street SE Hutchinson, Minnesota 55350 -2522 RE: BRS File No.: 11016218 Trust Member: City of H utchinson Claimant: Richard D. Waage D /Occurirence: 11/26/94 (arbitrary) D /Claim Made: 11/26/96 Dear Mr. Plotz: This letter will formally acknowledge receipt of the notice of claim filed by Richard D. Waage • against the City of Hutchinson. Please be advised that Tim Pawlenty of Rider, Bennett, Egan & Arundel law firm has been assigned as defense counsel. He will take the necessary steps to protect your immediate interests. I will be assisting in the investigation of this matter. I would encourage you to cooperate with me and Attorney Pawlenty and ask that you advise your city employees and city officials to refrain from discussing the subject matter of this potential litigation with anyone other than representatives of Rider, Bennett, Egan & Arundel, Berkley Risk Services, Inc_, and the League of Minnesota Cities Insurance Trust (LMCIT). Mr. Waage is claiming that the City violated his rights under the Fair Labor Standards Act (FLSA) by not paying him compensatory time at the rate of 1.5 hours. Mr. Waage seeks a settlement of $30,400.00 which would include alleged overtime pay plus attorneys' fees and costs. Please be advised that any investigation or action taken by a representative of the LMCIT on this claim is done with a full Reservation of Rights under the Covenant between LMCJT and the City of Hutchinson under Covenant No. CMC 16570 with a coverage period of July 1, 1996 through July 1, 1997 on a claims made basis. Any investigation, adjustment or defense of this claim or any action whatsoever by representatives of the LMCIT will not constitute a waiver of any rights LMCIT might have under the covenant. AN EQUAL OPPORTUNITY /AFFIRMATIVE ACTION EMPLOYER APR -22 -1997 14:20 BR5 File No.: • Trust Member; Claimant: LMCIT- BERKLEY RISK SVCS 11016218 City of Hutchinson Richard D. Waage 612 281 1297 P.03iO4 Page 2 December 18, 1996 It is, of course, understood that you do not waive any of your rights under the covenant. I would specifically refer you to the Comprehensive Municipal Coverage form under Coverage A, which states in part: Coverage A. Municipal Liability Coverage (Claims Made Basis) Coverage Agreement a. Except as otherwise provided in this agreement, L.MCIT will pay on behalf of the "covered party" all sutras which the "covered parry" shall become legally obligated to pay as damages as a result of an occurrence__. Also, I refer you to the definition of Damages. Damages means "money damages, and includes awards for attorneys' fees with respect to federal civil rights suits and state human rights suits." Damages does not include any of the following: a. Any obligation of a "covered party" under a workers' compensation, disability benefits, or unemployment compensation law or any similar law; b. Exemplary damages or punitive damages claimed or levied against an officer, employee or volunteer of the "city", provided that the officer, employee, or volunteer: (1) Was acting in the performance of the duties of the position; and (2) Was not guilty of malfeasance in office, willfW neglect of duty, or bad faith. C. Fines or penalties imposed by law. Injunctive or equitable relief, or quasi-judicial or administrative orders. With respect to this claim, any fines or penalties imposed under the FLSA would not be included as damages under this covenant. In addition, there are some exclusions to the coverage. Exclusion 3(t) states that "This coverage does not apply to any wages and employment benefits for work that has been performed by the employee making the claim, or any claimed increases in such wages and employment benefits for work that is hereafter performed by the employee making the claim. • -T APR -22 -1997 14.20 LMCIT- BERKLEY RISK SVCS 612 281 1297 P.04iO4 BRS File No.: 11016218 Page 3 Trust Member: City of Hutchinson December 18, 1996 • Claimant: Richard A. Waage Accordingly, to the extent it is determined that the events claimed or relief sought do not meet the definition of damages, or are excluded, then coverage would not apply. In addition to the abovementioned coverage issues which I have cited, there could be further coverage defenses or exclusions that may be applicable. I reserve the rights of LMCIT to raise such further coverage defenses or exclusions as are applicable. In the event that there are additional pleadings served upon you in conjunction with this case, please forward those items to us immediately. If you have any questions, feel free to contact me at (800) 925 -1121 Sincerely yours, I �aj`fk. A,ndriel M. Dees Employment Claims Specialist AMD • cc: Bob Weisbrod Tim Pawlenty Berkley Risk Services Rider, Bennett, Egan & Arundel • TOTAL. P.04 0 I N T E R MEMO O F F I C E Date: April 16, 1997 To: Mayor & City Council From: Marilyn J. Swanson, Administrative Secretary IMIM 1 :I DKKII U9N V WWI 1' Again this year Richard Seipel is requesting a transient merchant permit to sell fresh produce within the municipality. The Country Stop, Inc. has been issued a permit since 1992, and there have been no complaints or problems with Mr. Seipel's business operation. Mr. Seipel has permission from Runnings to set up a stand on their lot from mid -June to Labor Day weekend. cc: Richard Seipel Steve Madson, Police Chief Oil C To: Mayor and Council From: Dolf Moon, Director- P.R.C.E Mary Haugen, Facilities & Operations Manager Date: April 16, 1997 Re: Bid advertisement for Rec. Center roof replacement The 1997 Recreation Center budget includes $38,000. for replacement of the flat roof over the office /locker room area. Plans and specifications have been prepared and we would like to proceed. We are asking for your approval to advertise for bids and to set a bid opening date of Tuesday, May 20 1997. Thank -you for your consideration. • City Center Parks & Recreation Police Services 111 Hassan Street SE 900 Harrington Street SW 10 Franklin Street SW Hutchinson. MN 55350 -2522 Hutchinson, MN 55350 -3097 Hutchinson. MN 55350 -2464 (320) 587 -5151 (320) 587 -2975 (320) 587 -2242 Far (320) 234.4240 Fax (320) 234 -4240 Fax (320) 587-6427 - Printed on recycled paper - I n u 0 ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW DAVID B. ARNOLD 101 PARK PLACE HUTCHINSON, MINNESOTA 55350 -2563 STEVEN A. ANDERSON G. BARRY ANDERSON LAURA K. FRETLAND PAUL D. DOVE * JANE VAN VALKENSURG RICHARD G. MOGEE CATHRYN D. REITER WALTER P. MICHELS. III 'ALSO ADMITTED IN TE% AND NEW YORK (320) 567 -7575 FAX (320) 587 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON April 16, 1997 Ms. Marilyn Swanson Administrative Secretary Hutchinson City Center 111 Hassan Street S.E. Hutchinson, Mn. 55350 RE: Plastic Specialities Manufacturing, Inc. Our File No. 3244 -97106 Dear Marilyn: I iF HUTCHI OF COUNSEL ARTHUR L. DOTEN TERRI A. BLOMFELT 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545 -9000 FAX (612) 545 -1793 FAX (612) 542 -9210 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 389 -2214 FAX (612) 389 -5506 I am enclosing herewith for inclusion on the City Council consent agenda the following documents: Promissory note calling for a loan of $100,000 from the economic development fund of the City to PSM secured by a standard form security agreement; 2. Promissory note in the amount of $100,000 calling for a loan from the City's economic development fund secured by a mortgage on the PSM property. This loan is to be replaced by a Southwest Minnesota Foundation loan if that process is ultimately successful. If it is not successful, this loan will remain in place and will be paid out over five years. 3. A site purchase agreement; 4. The ordinance authorizing the sale to PSM. These documents all reflect the same structure of the deal as was outlined to the City Council last week. Since each involve legal commitments on the part of the City, I felt it appropriate to have these documents approved by the City Council, although an argument can be made that strictly speaking the same would not have been necessary. 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 Ms. Marilyn Swanson April 16, 1997 Page 2 I do think these can be consent agenda items as noted above. Should you have any questions regarding any of the foregoing, please advise. Thank you. Best regards. Very truly yours, ARNOLD, ANDERSON & DOVE, PLLP G. Barry Anderson GBA: hn Enclosure • 1] _0 I� �J $100.000.00 PROMISSORY NOTE Hutchinson, Mo. 55350 April _, 1997 FOR VALUE RECEIVED, the undersigned, Plastic Specialities Manufacturing, Inc., a Minnesota corporation (the `Borrower ") promises to pay to the order of the City of Hutchinson, a Minnesota municipal corporation (the "Lender') the principal sum of One Hundred Thousand and no /100 Dollars ($100,000.00), together with interest thereon as hereinafter stated. Annual installment payments shall commence on April 25, 1998 and continuing thereafter on the 25 day of each succeeding April through, and including, April 25, 2002. The installment amount shall be Twenty Thousand and no /100 Dollars ($20,000.00) principal, along with accrued interest necessary to fully pay the principal balance of this Note as of the date of payment, with interest at the annual rate. The annual rate shall be equal to two percent (2 %) less than the rate as publicly announced from time to time by First Bank, N.A., Minneapolis, Minnesota ( "First Bank ") as its reference rate. The "reference rate" as used herein is defined as the annual rate of interest regularly charged by First Bank on unsecured ninety (90) day loans made to its most creditworthy borrowers. The annual rate shall be adjusted each time the reference rate changes. All payments hereunder shall be applied first to accrued interest and the balance shall be applied to the reduction of the principal balance evidenced hereunder. If any installment hereof is not paid when due, or if the Borrower shall fail to perform or observe any obligation binding upon its under any mortgage or security agreement securing this Note or if any default, or event of default, shall occur under any such agreement, or if the undersigned or any guarantor shall become insolvent, shall die, shall make an assignment for the benefit of their creditors, or a receiver shall be appointed for any property of any of them or any proceeding shall be commenced with respect to any of tem under any bankruptcy or insolvency laws, or if the holder hereof shall t any time in good faith believe that the prospect of due and punctual payment of this Note is impaired, then (in any such event) the holder hereof may, at its option, declare the entire principal balance then remaining unpaid on this Note to be immediately due and payable, and the same shall thereupon be immediately due and payable, together with all interest accrued hereon, without notice or demand. This Note may be prepaid, in whole or in part, without premium or penalty but with interest accrued to the date of prepayment on the principal amount prepaid. To the extent permitted by law, the undersigned agrees to pay all costs of collection, including reasonable attorneys' fees and legal expenses, incurred by the holder hereof in the event hits Note is not duly paid. Presentment or other demand for payment, notice of dishonor and protest are hereby expressly • waived. This Promissory Note is secured by a Security Agreement and Financing Statement covering certain equipment described therein. • PLASTIC SPECIALITIES MANUFACTURING, INC. LO Its: 0 • BORROWER'S SECURITY AGREEMENT • -------------------------------------------------- Borrower: Plastic Specialities Lenders City of Hutchinson Manufacturing, Inc. Address: Borrower: Address: Address: 111 Hassan Street SE Hutchinson, Mn. 55350 Security Interest. This security interest secures (check one): ❑ the payment and performance of each and every debt, liability and obligation of every type and description which the Borrower may now or at any time owe to the Bank, whether now existing or hereafter arising, direct or indirect, due or to become due, absolute or contingent, primary or secondary, liquidated or unliquidated, independent, joint, several, or joint and several; or LXJ the payment of a promissory note dated April, 1997, executed and delivered by the Borrower to the Lender in the original principal sum of $100,000.00_, with interest and other charges as therein provided; or the payment of a dated , 19 , executed and delivered by the Borrower to the Bank in the original principal sum of $ with interest and other charges as therein provided. This security interest also secures all extensions, renewals and replacements of the above described obligations. Such obligations are hereinafter collectively referred to as the "Secured Obligations "; The Borrower grants the Bank a security interest in the following property (hereinafter the "Collateral "): Inentory. I All inventory (as the term is defined in the applicable Uniform Commercial Code) now owned or hereafter at any time acquired by Borrower or in which Borrower obtains rights; or LXJ Specific inventory, described as follows: See attached Exhibit "A" L J 'C7 -, (1) Equipment. LXJ All equipment (as the term is defined in the applicable Uniform Commercial • Code) now owned or hereafter at any time acquired by Borrower or in which Borrower obtains rights, including but not limited to the equipment described on attached Exhibit "A "; Specific equipment, described as follows: Accounts, Instruments, Chattel Paper, and Other Rights to Payment. ID Each and every right of Borrower to the payment of money, whether such right to payment now exists or hereafter arises, together with all other rights and interests (including all liens and security interests) which Borrower may at any time have by law or agreement against any account debtor (as defined in the applicable Uniform Commercial Code) or other obligor obligated to make any such payment or against any of the property of such account debtor or other obligor; or Specific accounts, instruments, chattel paper and other rights to payment, described as follows: General Intangibles. lX� All intangibles (as defined in the applicable Uniform Commercial Code) now • owned or hereafter at any time acquired by Borrower; or ❑ Specific intangibles, described as follows: The Collateral shall include (i) all substitutions and replacements for and proceeds of any and all of the foregoing property, and in the case of all tangible Collateral, all accessions, accessories, attachments, parts, equipment and repairs now or hereafter attached or affixed to or used in connection with any such goods and (ii) all warehouse receipts, bills of lading and other documents of title now or hereafter covering such goods. Borrower warrants, represents and agrees that: 11 n 1. The Collateral LXJ will U will not be acquired with the proceeds of the loan or advance made on or about the date hereof. If the Collateral will be so acquired, the Bank is authorized to disburse such proceeds directly to the seller(s) of the collateral. 2. If part of the Collateral now constitutes, or as and when acquired by Borrower will constitute, Inventory and Equipment (as those terms are defined in • the applicable Uniform Commercial Code) such collateral is or will be kept at the following location or locations: Plastic Specialities Manufacturing, Inc. located on Lot 2, Block 1, Second Addition to the Hutchinson Industrial District, McLeod County, Minnesota and will not be removed from such location or locations unless, prior to any such removal, Borrower has given written notice to the Lender of the location or locations to which the Borrower desires to remove the same, and the Lender has given its written consent to such removal. If any of the locations where Borrower now or hereafter keeps the Collateral are leased by the Borrower, the Borrower shall at Lender's request, obtain a Landlord's waiver in a form satisfactory to Lender. 3. Borrower's place of business, or chief executive office if Borrower has more than one place of business, is located at Lot 2, Block 1, Second Addition to the Hutchinson Industrial District, McLeod County, Minnesota. Borrower will notify the Lender in writing of any change in location of Borrower's place of business or chief executive office. 4. If any Collateral is or will become a fixture, the recorded owner of the real estate is Plastic Specialities Manufacturing, Inc. and the legal description of the real estate is Lot 2, Block 1, Second Addition to the Hutchinson Industrial District, McLeod County, Minnesota. Borrower will not permit any tangible Collateral to become part of or to be affixed to any real property without first assuring to the reasonable satisfaction of the Lender that its security interest will be prior and senior to any interest or lien then held or thereafter acquired by any other party. 5. If any of the Collateral is goods of a type normally used in more than one state (whether or not actually eo used), Borrower will contemporaneously herewith furnish the Lender a list of such Collateral showing the states wherein the same is or will be used, and such list will identify any Collateral covered by certificates of title and the issuing states thereof. Hereafter Borrower will notify the Lender in writing of any other states in which any of the collateral is so used or which have issued certificates of title covering any of the Collateral. 6. Borrower has or will acquire title to and will at all times keep the Collateral free of all liens and encumbrances, except the security interest created hereby, and has full power and authority to execute this Security Agreement, to perform Borrower's obligations hereunder and to subject the Collateral to the security interest created hereby. Borrower will pay all fees, assessments, charges or taxes arising with respect to the Collateral. There is no encumbrance or security interest with respect to all or any part of the collateral which either (i) is superior to the Lender's security interest hereunder, or (ii) has not been disclosed to the Lender by the Borrower. All costs of keeping the Collateral free of encumbrances and security interests prohibited by this Agreement and of removing same if they should arise shall be borne and paid by Borrower. 7. Each right to payment and each instrument, document, chattel paper and other agreement constituting or evidencing Collateral is (or will be when arising or issued) a valid, genuine and legally enforceable obligation, subject to no defense, set -off or counterclaim (other than those arising in the ordinary course of business) of the account debtor or other obligor named therein or in • Borrower's records pertaining thereto as being obligated to pay such obligation. Borrower will not agree to any material modification, amendment or cancellation of any such obligation without Bank's prior written consent, and will not subordinate any such right to payment to claims of other creditors of such • account debtor or other obligor. B. Borrower will at any time or times hereafter execute such financing statements and other documents and instruments and perform such acts as the Lender may from time to time request to establish, maintain, perfect and enforce a valid security interest in the Collateral, and will pay all costs of filing and recording. 9. Borrower will keep all tangible Collateral and all lands, plants, buildings and other property now or hereafter owned or used in connection with its business in good condition, normal depreciation excepted, and insured against loss or damage by fire (including so- called extended coverage), theft, physical damage, and against such other risks, including without limitation public liability, in such amounts, in such companies and upon such terms as Bank may reasonably require. Borrower will obtain loss payable indorsement on applicable insurance policies in favor of Borrower and Lender as their interests may appear and at Lender's request will deposit the insurance policies with Lender. Borrower shall cause each insurer to agree, by Policy indorsement or by issuance of a certificate of insurance or by independent instrument furnished to Lender, that such insurer will give thirty (30) days written notice to Lender before such policy will be altered or canceled. Borrower irrevocably appoints Lender as Borrower's attorney in fact to make any claim for, to negotiate settlement of claims, to receive payment for and to execute and endorse any documents, checks or other instruments in payment for loss, theft, or damage under any insurance policy covering the Collateral. 10. Borrower will promptly notify Lender of any loss or material damage to any Collateral or of any adverse change, known to Borrower, in the prospect of payment of any sums due on or under any instrument, chattel paper, account or general intangible constituting Collateral. 11. Upon Lender's request (whether a Default as hereinafter defined, has occurred) Borrower will promptly deliver to Lender any instrument, document or chattel paper constituting Collateral. 12. Upon Default by Borrower in performance of its obligations hereunder, Lender shall have the authority, but shall not be obligated to: (i) effect such insurance and necessary repairs and pay the premiums therefor and the costs therefor and the costs thereof; and (ii) pay and discharge any fees, assessments, charges, taxes liens and encumbrances on the Collateral. All sums so advanced or paid by the Lender shall be payable by Borrower on demand with interest t the maximum rate allowed by law and shall be a part of the Secured Obligations. 13. Borrower will not sell, lease or otherwise dispose of the Collateral other than in the ordinary course of its business at prices constituting the then fair market value thereof. 14. The Lender shall have the authority (whether or not a Default has occurred), but shall not be obligated to: (a) notify any or all account debtors and obligors on instruments constituting Collateral of the existence of the Lender's security interest and to pay or remit all Bums due or to become due directly to the Lender or its nominee; (b) place on any chattel paper received as proceeds a notation or legend showing the Lender's security interest; (c) in • the name of the Borrower or otherwise, to demand, collect, receive and receipt for, compound, compromise, settle, prosecute and discontinue any suits or • proceedings in respect of any or all of the Collateral; (d) take any action which the Lender may deem necessary or desirable in order to realize on the Collateral, including, without limitation, the power to perform any contract, to indorse in the name of Borrower any checks, drafts, notes, or other instruments or documents received in payment of or on account of the collateral; (e) to place upon Borrower's books and records relating to the accounts and general intangibles covered by the security interest granted hereby a notation or legend stating that such account or general intangible is subject to a security interest held by the Lender, and (f) after any Default, to enter upon and into and take possession of all or such part(s) of the properties of Borrower, including lands, plants, buildings, machinery, equipment and other property as may be necessary or appropriate in the judgment of the Lender to permit or enable the Lender to manufacture, produce, process, store or sell or complete the manufacture, productions, processing, storing or sale of all or any part of the Collateral, as the Lender may elect, and to use and operate said properties for said purposes and for such length of time as the Lender may deem necessary or appropriate for said purposes without the payment of any compensation to Borrower therefor. 15. Borrower will collect all accounts until receipt of notice from the Lender to notify all account debtors of the existence of the Lender's security interest and to direct such account debtors to pay or remit all sums due or to become due directly to the Lender or its nominee. Borrower will hold all of the proceeds of such collections and all returned and repossessed goods in trust for the Lender, and will not commingle the same with any other funds or property of the Borrower, and will deliver the same forthwith to the Lender at its request; provided, however, that with respect to returned and repossessed goods Borrower will provide written notice to the Lender of each return or repossession and will on demand pay to the Lender the full invoice or contract price thereof. 16. Borrower will keep accurate books, records and accounts with respect to the Collateral, and with respect to the general business of Borrower, and will make the same available to the Lender at its request for examination and inspection; and will make and render to the Lender such reports, accountings and statements as the Lender from time to time may request with respect to the Collateral; and will permit any authorized representative of the Lender to examine and inspect, during normal business hours, any and all premises where the Collateral is or may be kept or located. 17. The occurrence of any of the following events will constitute a Default: (a) failure of Borrower, or of any co- maker, endorser, surety or guarantor to pay when due any amount payable under any of the Secured Obligations; (b) failure to perform any agreement of Borrower contained herein or in any other agreement with the Bank; (c) any statement, representation or warranty of Borrower made herein or at any time furnished to the Lender is untrue in any respect as of the date made; (d) entry of any judgment against Borrower; (e) Borrower becomes insolvent or is generally not paying its debts as such debts become due; (f) appointment of or assignment to a custodian, as that term is defined in the United States Bankruptcy Code, for any property of Borrower, or loss, substantial damage to, destruction, theft, encumbrance, levy, seizure or attachment of any portion of the Collateral; (g) commencement of any proceeding or filing of a petition by or against Borrower under the provisions of the United States Bankruptcy Code for liquidation, reorganization or adjustment of debts, or under any insolvency law or other statute or law providing for the 0 modification or adjustment of the rights of creditors; (h) death of any Borrower who is a natural person or of any partner of any Borrower which is a partnership if such death causes the termination of the partnership; (i) dissolution, consolidation, or merger, or transfer of a substantial part of the property of • any Borrower which is a corporation or a partnership; (j) such a change in the condition or affairs (financial or otherwise) of Borrower or any co- maker, endorser, surety or guarantor of any of the Secured Obligations as in the opinion of the Lender impairs the Lender's security or increases its risk; or (k) the Bank deems itself insure for any reason whatsoever. 18. Whenever a Default shall exist, the Lender may, at its option and without demand or notice, declare all or any part of the Secured Obligations immediately due and payable, and the Lender may exercise, in addition to the rights and remedies granted hereby, all rights and remedies of a secured party under the Uniform Commercial Code or any other applicable law. 19. Borrower agrees, in the event of Default, to make the collateral available to the Lender at a place or places to be designated by the Lender, which is reasonably convenient to both parties, and to pay all costs of the Lender, including reasonable attorneys' fees, in the collection of any of the Secured Obligations and the enforcement of any of the Lender's rights. If any notification of intended disposition of any of the collateral is required by law, such notification shall be deemed properly given if mailed a reasonable time before such disposition, postage prepaid, addressed to the Borrower at the address shown above. Lender's duty of care with respect to Collateral in its possession shall be deemed fulfilled if Lender exercises reasonable care in physically safekeeping such Collateral or, in the case of Collateral in the custody or possession of a bailee or other third person, exercises reasonable care in the selection of the bailee or other third person, and Lender need not otherwise preserve, protect, insure or care for any Collateral. Lender shall not be obligated to preserve any rights Borrower may have against prior parties, to • realize on the Collateral at all or in any particular manner or order, or to apply any cash proceeds of Collateral in any particular order of application. No delay or failure by the Lender in the exercise of any right or remedy shall constitute a waiver thereof, and no single or partial exercise by the Lender of any right or remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy. 20. If more than one party shall sign this Agreement, the term "Borrower" shall mean all such parties, and each of them and all such parties shall be jointly and severally obligated thereunder. 21. This Agreement is governed by the laws of the state in which the Lender is located. Executed this day of April, 1997. BORROWER(S) PLASTIC SPECIALITIES MANUFACTURING, INC. For ' Filing " STATE OF MINNESOTA Officer UCC -1 FINANCING STATEMENT 4 atement is presented for fling pursuant to Minnesota Uniform Commercial Code Minnesota St tes Chapter 336.9 -402 (Type in Black Ink) 1. Individual Debtor - Last Name First Name Middle I. Social Security # Mailing Address City State Zip Code 2. Individual Debtor - Last Name First Name Middle 1. Social Security # Mailing Address City State Zip Code 3. Business Debtor -Name Fed ID # IMailing Address City State Zip Code 4. Secured Party -Name qon 5. Assignee of Secured Party Mailing A dress Mailing Address C State Zip Code City State Zip Code 6. This financing statement covers the following types or items of property. If crops are covered describe the real estate and list the name of record owner.) All accounts receivable, contract rights, general intangibles, inventory, equipment and fixtures, and all proceeds thereof as more specifically described on Exhibit "A" attached hereto and incorporated herein by reference, whether such collateral is presently owned or hereafter acquired by Debtor, and wherever located. Debtor is a transmitting utility as defined by Minnesota Statutes Chapter 336.9 -105 RETURN ACKNOWLEDGMENT COPY TO: (name and address) F ity of Hutchinson Debtor's Signature 11 Hassan Street S.E. (Required in Most Cases- see Instructions) utchinson, Mn. 55350 Debtor's Signature Please do not type outside the bracketed area. Secured Party's Signature � — /7� (1) Filinc 0".i;.er Copy - Alphabetical (06920619 Rev. 5/93) Standard Form Approved by Secretary of State _ C/ EXHIBIT "A DEBTOR: Plastic Specialities Manufacturing, Inc. SECURED PARTY: City of Hutchinson 111 Hassan Street S.E. Hutchinson, Mn. 55350 This Financing Statement covers the following types of property (hereinafter called "Collateral ,,): A . Acc;n.....e _r . right of Debtor to the payment of money whetherlsuch right to payment n w exists or hereafter arises including all present accounts receivable and all of its accounts receivable which may from time to time hereafter come into existence during the term of the Security Agreement granted Secured Party, together with the proceeds thereof. B. Inventory All personal property now owned or hereafter acquired by Debtor which is held for sale or lease, or furnished or to be furnished under contracts of service, or held as raw materials, work in process or materials used or consumer or to be used Of consumed in Debtor's business, and all returned or repossessed goods; C. Equipment and Fixtures Any and all personal property or goods used or bought for use Primarily in Debtor's business whether or not an interest therein arises under real Property law, now owned or hereafter acquired by Debtor. D. General Intangibles and goods, accounts, equipment and fixtures, inc uding, but limited o, things or choices of action, rghts of all types under contract, leases and licenses, all manufacturing and processing rights, patents, patent rights, trademarks, trade names and copyrights now owned or hereafter acquired by the Debtor; and E. All Proceeds. All property received upon the sale, exchange, collection or other disposition of Collateral or proceeds from Collateral (including, but not limited to, insurance payable by reason of loss or damage to the Collateral), whether cash or non -cash proceeds including but not limited to Inventory, Equipment or Fixtures acquired with cash proceeds. • 1 6 0 • $100.000.00 MORTGAGE PROMISSORY NOTE Hutchinson, Mn. 55350 April _, 1997 FOR VALUE RECEIVED, the undersigned, Plastic Specialities Manufacturing, Inc., a Minnesota corporation (the "Borrower ") promises to pay to the order of the City of Hutchinson, a Minnesota municipal corporation (the "Lender ") the principal sum of One Hundred Thousand and no /100 Dollars ($100,000.00), together with interest thereon as hereinafter stated. Annual installment payments shall commence on April 25, 1998 and continuing thereafter on the 25 day of each succeeding April through, and including, April 25, 2002. The installment amount shall be Twenty Thousand and no /100 Dollars ($20,000.00) principal, along with accrued interest necessary to fully pay the principal balance of this Note as of the date of payment, with interest at the annual rate. The annual rate shall be equal to two percent (2 %) less than the rate as publicly announced from time to time by First Bank, N.A., Minneapolis, Minnesota ( "First Bank") as its reference rate. The "reference rate" as used herein is defined as the annual rate of interest regularly charged by First Bank on unsecured ninety (90) day loans made to its most creditworthy borrowers. The annual rate shall be adjusted each time the reference rate changes. All payments hereunder shall be applied first to accrued interest and the balance shall be applied to the reduction of the principal balance evidenced hereunder. If any installment hereof is not paid when due, or if the Borrower shall fail to perform or observe any obligation binding upon its under any mortgage or security agreement securing this Note or if any default, or event of default, shall occur under any such agreement, or if the undersigned or any guarantor shall become insolvent, shall die, shall make an assignment for the benefit of their creditors, or a receiver shall be appointed for any property of any of them or any proceeding shall be commenced with respect to any of tem under any bankruptcy or insolvency laws, or if the holder hereof shall t any time in good faith believe that the prospect of due and punctual payment of this Note is impaired, then (in any such event) the holder hereof may, at its option, declare the entire principal balance then remaining unpaid on this Note to be immediately due and payable, and the same shall thereupon be immediately due and payable, together with all interest accrued hereon, without notice or demand. This Note may be prepaid, in whole or in part, without premium or penalty but with interest accrued to the date of prepayment on the principal amount prepaid. To the extent permitted by law, the undersigned agrees to pay all costs of collection, including reasonable attorneys' fees and legal expenses, incurred by the holder hereof in the event hits Note is not duly paid. Presentment or other demand for payment, notice of dishonor and protest are hereby expressly • waived. This Note is secured by a Mortgage of even date herewith, on real estate situated in McLeod County, Minnesota, and shall be governed and construed in all respects according to the laws of the State of • Minnesota. If the undersigned, its successors or assigns without the consent of the holder hereof, sells, agrees to sell, or otherwise conveys the real estate described in said Mortgage, the holder hereof at its option, may declare all amounts due hereunder, and the same shall forthwith upon such declaration become and be, immediately due and payable without notice. PLASTIC SPECIALITIES MANUFACTURING, INC. 0 It _ • MORTGAGE By Corporation or Partnership 0 (reserved for mortgage registry tax payment data) (reserved for recording data) MORTGAGE REGISTRY TAX DUE HEREON: THIS INDENTURE, Made this day of Aaril , 1997 , between PLASTIC SPECIALITIES MANUFACTURING, INC. a Ca rpo ration under the laws of Mlanemota Mortgagor (whether one or more), and the City of Hntchinsca, a Mlnnaso4 minicioal corporation Mortgagee (whether one or more), MITNESSETH, That the Mortgagor, in consideration of the sum of Oat Dollar end ether gcod DOLLARS, to the Mortgagor in hand paid by the Mortgagee, the receipt whereof is hereby acknowledged, does hereby convey unto Mortgage, Forever, real property in McLeod County Minnesota, described as follows: Lot 2, Block 1, Second Addition to Hutchinson Industrial District according to the plat thereof on file and of record in the office of the Registrar of Titles, McLeod County, Minnesota. together with all hereditament* and appurtenances belonging thereto (the Property). TO HAVE AND TO HOLD THE SNOT, to Mortgagee forever. The Mortgagor covenants with Mortgagee as follows: That Mortgagor is lawfully seised of the Property and has good is right to convey the same; that the Property is free from all encumbrances, except as fal laws: that Mortgagee shall quietly enjoy and possess the same; and that Mortgagor will Warrant and Defend the title to the same against all lawful claims not hereinbefore specifically excepted. PROVIDED, NEVERTHELESS, That if Mortgagor shall pay to Mortgagee the one of One Hundred and no /100 Dollars ($100, 000. 00 ----------------------------------------------------- DOLLARS according to the terms of a Promissory Note of even date herewith (the Note), the final payment being due and payable on April 25. 2002 with interest at the rate provided in the Note, and shell repay to Mortgagee, at the times and with interest as specified, all sums advanced in protecting the lien of this Mortgage, in payment of taxes on the Property and assessments payable therewith, insurance premiums covering buildings thereon, prin- cipal or interest on any prior liens, expenses and attorney'. fees herein provided for and sums advanced for any other purpose authorised herein, and shell keep and perform all the covenants and agreements herein contained, then this Mortgage shall be null and void, and shall be released at Mortgagor's expense. AND MORTGAGOR covenants with Mortgagee as follows: 1. to pay the principal sum of money and interest as specified in the Note; 2. to pay all taxes and assessments now due or that may hereafter become liens against the Property before penalty attaches thereto; 3. to keep all buildings, improvements and fixtures now or later located on or a part of the Property insured against loss by fire, extended coverage perils, vandalism, mali- cious mischief and, if applicable, steam boiler explosion, for at least the amount of full insurable value - at all times while any amount remains unpaid under this Mortgage. If any of the buildings, improvements or fixtures are located in a federally designated flood prone area, and if flood insurance is available for that area, Mortgagor shall procure and maintain flood insurance in amounts reasonably satisfactory to Mortgages. Each insurance policy shall contain a loss payable clause in favor of Mortgagee affording all rights and privileges custo- marily provided under the so- called standard mortgage clause. In the event of damage to the Property by fire or other casualty, Mortgagor shall promptly give notice of such damage to Mortgagee and the insurance company. The insurance shall be issued by an insurance company or companies licensed to do business in the State of Minnesota and acceptable to Mortgagee. The insurance policies shall provide for not less than tan days written notice to Mortgagee before cancellation, non - renewal, termination, or change in coverage, and Mortgagor shall deliver to Mortgagee a duplicate original or certificate of such insurance policies; C. to pay, when due, both principal and interest of all prior liens or encumbrances, if any, and to keep the Property free and clear of all other prior liens or encumbrances; S. to commit or permit no waste on the Property and to keep it in good repair; to complete forthwith any improvements which may hereafter be under course of construction on the Property, and; to pay any other expenses and attorney's fees incurred by Mortgagee by reason of liti- gation with any third party for the protection of the lien of this Mortgage. that there Is not present on, in or under the Mortgaged Property or any improvements thereon any asbestos, underground storage tanks, abandoned wells, urea formaldehyde foamed -in -place insulation, polychlorinated biphenyl ('PCBs "), or other hazardous or toxic materials the release or disposal of which is regulated by any law, regulation, code or ordinance (all of the foregoing being herein called "Hazardous Materials'), and that the Mortgaged Property has not in the past been used, is not presently being used, and will not in the future (for to long as the Mortgagor owns the same) be used for the handling, storage, transportation or disposal of any Hazardous Materials. The Mortgagor shall indemnify, defend and hold the Mortgagee harmless from and against any claim, loss or damage to which the Mortgagee may be subjected as a result of such past, present or future existence, use, handling, storage, transportation or disposal of Hazardous Materials. The indemnification provided herein shall survive payment in full of the Indebtedness and foreclosure hereof. unless previously delivered by the Mortgagor to the Mortgages, the Mortgages, at its sole option, may obtain, at the Mortgagor's expense, a report from a reputable environmental consultant of the Mortgagee 's choice as to the presence of Hazardous Materials or such past or present use, handling, storage, transportation or disposal of Hazardous Materials. The Mortgagee may require that all violations of law with respect thereto be corrected and /or that the Mortgagor obtain all necessary environmental permits therefor. In case of failure to pay said taxes and assessments, prior liens or encumbrances, expenses and attorney's fees as above specified, or to insure said buildings, improve- ments, and fixtures and deliver the policies as aforesaid, Mortgagee may pay such taxes, assessments, prior liens, expenses and attorney's fees and interest thereon, or. obtain such insurance, and the suss so paid shall bear interest from the date of such payment at the same rate set forth in the Note, and shall be impressed as an additional lien upon the Property and be immediately due and payable from Mortgagor to Mortgagee and this Mortgage shall from date thereof secure the repayment of such advances with interest. In case of default in any of the foregoing covenants, Mortgagor confers upon the Mortgagee the option of declaring the unpaid balance of the Note and the interest accrued thereon, together with all sums advanced hereunder, immediately due and payable without notice, and hereby authorises and empowers Mortgagee to foreclose this Mortgage by judi- cial proceedings or to sell the Property at public auction and convey the same to the purchaser in fee simple in accordance with the statute, and out of the moneys arising from such sale to retain all sums secured hereby, with interest and all legal costs and charges of such foreclosure and the maximum attorney's fee permitted by law, which costs, charges and fees Mortgagor herein agrees to pay. If Mortgagor, or the successors or assigns of Mortgagor, without the consent of Mortgages, sell, agree to sell, or otherwise convey title to the above described real estate (legal, equitable, or both), Mortgagee, at its option, shall declare the whole one then remaining unpaid on the Promissory Mote and Credit Agreement herein described (and the same shall forthwith upon such declaration become and be) immediately due and payable without notice. The terms of this Mortgage shall run with the Property and bind the parties hereto and their successors in interest. IN TESTIMONY WHEREOF, Mortgagor has hereunto set its hand the day and year first above written. MORTGAGOR STATE OF MINNESOTA ) ) Set COOMTy OF MCLEOD ) The foregoing instrument was acknowledged before me 1997, by and the and _ of Plastic Scacialities Manufacturing. Inc. , a �p under the laws of Minnsaota , on behalf of the cornorat ion ARNOLD, ANDERSON i DOVE,PLLP' 101 Park Place Hutchinson, MR 55350 Signature of Person Taking Acknowledgment (330) 587 -7575 Notarial Seal or Seal (Or Other Title or Rank) FAILURE TO RECORD OR FILE THIS MORTGAGE MAY AFFECT THE PRIORITY OF THIS MORTGAGE. this _ day of - April_ 0 0 CITY OF HUTCHINSON INDUSTRIAL DEVELOPMENT LOAN PROGRAM DEFERRED LOAN REPAYMENT AGREEMENT AND MORTGAGE THIS AGREEMENT, made and entered into this day of April, 1997 by and between the City of Hutchinson ( "Lender ") and Plastic Specialities Manufacturing, Inc.. a Minnesota corporation ( "Borrower "); and, where applicable, Contract for Deed Vendors, remainderman, or separated spouses or others not in possession joining in this agreement if any. WHEREAS, Borrower has purchased a parcel of land consisting of 6.21 acres located in the Hutchinson Industrial Park, McLeod County, Minnesota which property is legally described on Exhibit "A" hereto and which property is hereafter referred to as "the Land;" WHEREAS, Borrower has made or will make certain improvements on the Land, that have increased the value of the Land such that the taxes assessed to the Land are equal to or greater than one tenth (1 /10) of the loan amount set forth in this Agreement; WHEREAS, Lender has loaned Seventy nine thousand Fifty six and no /100 Dollars ($79,056.00), to Borrower at the rate of 9% per annum, and receipt of the same is hereby acknowledged by Borrower, for the purpose of encouraging industrial development in the area commonly known as the Hutchinson Industrial Park and; WHEREAS, Borrower and Lender desire to set forth herein the provisions for Borrower's repayment or forgiveness of the loan, and to provide for securing said repayment with a mortgage on the Land (hereinafter referred to as "The Mortgage "); NOW, THEREFORE, in consideration of said loan and in accordance with Minnesota law, the parties do hereby agree as follows: 1. Borrower covenants and agrees with Lender to pay to the order of Lender the outstanding principal amount of the loan, with interest as hereinafter provided, at the office of the � - C- (Z) Lender in Hutchinson, Minnesota, or at such other place as the Lender may designate in writing, upon the occurrence of any of the following events collectively ( "Repayment Events ") within a period of ten years after the date of the loan as set forth above: a. If any portion of the Land is sold is sold, transferred or otherwise conveyed to a person other than a governmental unit, whether by deed, contract for deed or otherwise and whether said transfer or sale is voluntary or involuntary but excluding (a) any mortgage or other pledge, transfer or conveyance solely for the purpose of security for repayment of borrowed money and (2) any conveyance to an affiliated entity, including Impressions Incorporated). The filing of a voluntary or involuntary bankruptcy petition by the Borrower. Repayment of the loan as required above shall be made to Lender no later than the 30th day after the occurrence of any Repayment Event, which day is hereby designated for purposes of this Agreement as the maturity date of the loan. This maturity date shall occur regardless of whether notice required by this Agreement is given or received on or before said maturity date. Absent the occurrence of any Repayment Event, within ten years after the date of the loan as set forth above, upon the commencement of the 11 th year after said date of the loan, Borrower, at that time and at any time thereafter, shall have no obligation to repay the loan or any part thereof to the Lender and this Agreement shall terminate and neither party shall have any further obligation hereunder. 2. It is understood and agreed between the parties that 10% of the principal amount of the loan shall be forgiven and become a grant to the Borrower for each year no Repayment Event occurs within the ten year period following the date of this Agreement. This ten year period is hereafter referred to as the "Forgiveness Period." • 3. Should any Repayment Event occur within the Forgiveness Period, then payment of the remaining balance of the deferred loan shall be made as follows: a. If all of the Land and improvements thereon is sold as described in paragraph 1 (a) hereof, then the Borrower shall pay to the Lender the remaining, unforgiven principal amount of the loan together with interest on the outstanding principal amount at 9% per year from the date of such sale to the date of payment in full. b. If any part but less than all of the Land or improvements thereon is sold as described in paragraph 1 (a) hereof; then the Borrower shall pay to the Lender that portion of the remaining unforgiven principal amount of the loan that bears the same ratio to the unforgiven principal amount that the part sold • bears to the total Land together with interest on that outstanding principal amount at 9% per year from the date of sale to the date of payment in full. 4. As security for the Borrower's covenant and obligation for repayment as herein provided, and subject to the terms and conditions of this Agreement, Borrower hereby grants, and the Lender shall and hereby does have, a mortgage lien on the Land, together with all hereditament and appurtenances thereto, in the full amount necessary to satisfy such repayment obligation and the cost, including reasonable attorney's fees of collecting the same. 5. Immediately upon any sale, transfer or other conveyance of the Land within the Forgiveness Period, Borrower or his/her heirs, executors, or representatives, hereby covenant and agree to give Lender notice thereof. 6. In the event Borrower or Borrower's successors or assigns shall fail or refuse to make • a required payment within the Forgiveness Period, or otherwise in any way be in default under the terms and conditions of this Agreement, the Borrower confers upon the Lender the option of 7 declaring all sums then owing by the Borrower immediately due and payable without notice, and hereby authorizes and empowers the Lender to foreclose this Mortgage by judicial proceedings or • to sell the Land at public auction and convey the same to any purchaser in fee simple in accordance with the mortgage foreclosure statute appearing at Minn. Stat. Chapter 581, and out of the moneys arising from such sale to retain all sums secured hereby, together with interest and all legal costs and charges of such foreclosure and the maximum attomey's fees permitted by Law, which costs, charges and fees the Borrower herein agrees to pay. The Borrower and Lender further covenant and agree as follows: a. Borrower shall be furnished a conformed copy of this Agreement at the time of execution or after recordation. b. Upon default of any covenant or agreement by Borrower under the terms of this Agreement, Lender prior to foreclosure shall mail notice to Borrower and • any other lienholder of record specifying (i) the nature of the default by the Borrower, (ii) the action required to cure such default, (iii) a date, if such default is capable of being cured by Borrower, not less than thirty (30) days from the date the notice is mailed to Borrower by which such default, if capable of being cured, must be cured; and (iv) that failure to cure such default on or before the date specified in the notice may result in acceleration of the sum secured by this Mortgage and sale of the Land. The notice shall further inform Borrower of the right, if any, to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of the Borrower to acceleration and sale. C. In addition to any notice required under applicable law to be given in another • manner, (i) any notice to the Borrower provided for in this Agreement shall 4 • be given by mailing such notice by certified mail addressed to the Borrower at the address of the Land, or at such other address as the Borrower may designate in writing to the Lender as provided herein, (ii) any notice to a lienholder of record shall be given to the notice address specified in the instrument of record, or such other address as provided to Lender by such lienholder and (iii) any notice to the Lender shall be given by certified mail, return receipt requested, to Lender at the following address: City of Hutchinson, Attention: Finance Director, Hutchinson City Center, 111 Hassan Street S.E., Hutchinson, Minnesota 55350, or to such other address as Lender may designate by notice in writing to the Borrower as provided herein. Any notice provided for in this Agreement shall be deemed to have been given to • Borrower or Lender when given in the manner designated herein. 7. The mortgage lien created by this Agreement shall terminate and shall be of no further force or effect in the event Borrower is not in default of any of the covenants or agreements contained herein, and Lender has not, on or before the expiration of the Forgiveness Period (a) commenced an action in the manner provided by statute for the foreclosure of the Mortgage and (b) filed for record a notice of said action, or a power of attorney to foreclose mortgage, or a lis ep ndens referring to the same, in the office of the County Recorder or Registrar of Titles, as the case may be, in the County where said real estate is situated. Lender may, in its sole discretion, agree to extend said termination date of said lien by filing for record, on or before said termination date, an agreement in writing with Borrower evidencing such extension. 8. The Lender hereby agrees that the mortgage lien and all rights and remedies of the • Lender hereunder are hereby subjected and subordinated and shall remain in all respects and for all purposes subject and subordinate to the lien of and all 5 amendments, modifications, renewals and extensions thereof and subject to and subordinate in all respects to the rights and interests of Mortgagee and its 0 successors and assigns as fully and with the same affect as if said Mortgage had been duly executed, acknowledged and filed for record and the indebtedness secured by said Mortgage fully disbursed prior to the execution of this Deferred Loan Repayment Agreement and Mortgage. This agreement regarding subordination shall run for the benefit of Mortgagee its successors and assigns under the Mortgage. and This Agreement shall run with the Land and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, representatives, successors and assigns. Wherever used, the singular number shall include the plural, and the plural the singular. All covenants and agreements of the Borrower shall be joint and several. 10. In the event that any provision or clause of this agreement shall conflict with applicable law, such conflict shall not affect the other provisions of this Agreement which can be given effect without the conflicting provision, and to this end the provisions of the Agreement are declared to be severable. IN TESTIMONY WHEREOF, the parties hereto have executed this agreement. CITY OF HUTCHINSON in Marlin Torgerson, Mayor Attest: Gary Plou, City Administrator PLASTIC SPECIALITIES MANUFACTURING, INC. By: • • STATE OF MINNESOTA ) SS COUNTY OF MCLEOD ) On this day of April, 1997 before me, a notary public within and for said county, personally appeared Marlin Torgerson and Gary Plotz, Mayor and City Administrator for the City of Hutchinson respectively, to me known to be the persons described in, and who executed, the foregoing instrument and acknowledged that they executed the same on behalf of the City of Hutchinson as its free act and deed. Notary Public STATE OF NIINNESOTA ) ) SS COUNTY OF MCLEOD ) On this day of April, 1997 before me, a notary public within and for said county, personally appeared , the Plastic Specialities Manufacturing, Inc. to me known to be the persons described in, and who executed, the foregoing instrument and acknowledged that IS they executed the same on behalf of Plastic Specialities Manufacturing, Inc. Notary Public Tax statements for the real property described in this instrument should be sent to: This instrument was drafted by: G. Barry Anderson Arnold, Anderson & Dove, PLLP 101 Park Place Hutchinson, Mn. 55350 11 • SITE PURCHASE AGREEMENT THIS AGREEMENT is made and entered into this day of April, 1997 by and between Plastic Specialities Manufacturing, Inc., a Minnesota corporation ('PSM ") and the City of Hutchinson, a Minnesota municipal corporation ( "Hutchinson'). RECITALS: 1. PSM desires to purchase from Hutchinson certain real estate described as attached Exhibit "A" hereof for the purpose of constructing, operating and maintaining a business facility within the Hutchinson Industrial Park; and 2. Hutchinson has agreed to sell such real estate to PSM pursuant to the terms and conditions of this agreement; and 0 NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt, value and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Purchase of Real Estate PSM agrees to purchase, and Hutchinson agrees to sell the real estate described on attached Exhibit "A ". 2. Purchase Price. The purchase price for the property shall be the sum of One Hundred Eighteen Thousand Five Hundred Eighty -five and no /100 Dollars ($118,585.00), Thirty nine Thousand Five Hundred Twenty -eight and no /100 Dollars ($39,528.00) of which shall be paid in cash, with the remaining balance to be paid according to the terms of the Deferred Loan Agreement entered into by and between the parties, a copy of which is attached hereto, marked as Exhibit "B" and incorporated as if fully set out herein. 0 3. Conveyance. The conveyance to PSM shall be by good and sufficient warranty deed, free and clear of all liens and encumbrances, except easements noted on the plat and a railroad easement in favor of Dakota Rail, Inc. • 4. Taxes and Assessments. Real estate taxes due and payable in and for the year of closing, shall be paid by Hutchinson. Real estate taxes due and payable in 1998 and subsequent years shall be paid by PSM. Hutchinson, at its option, maintains assessments presently of record against the above described property but shall subordinate said assessments to bank financing secured by PSM in connection with the transaction contemplated by this Agreement.. 5. Title Defects. If PSM gives Hutchinson notice of any title defects within fifteen (15) days after receipt of the title policy commitment or the attorney's title opinion which are not acceptable to PSM or if the commitment does not contain the extended coverage endorsement, Hutchinson shall use its best efforts to cure such defects. If any such defects are not cured by the date of closing, PSM may terminate this Agreement. In the event of such termination, all parties shall be relieved of all obligations hereunder. • 6. Brokerage Matters PSM and Hutchinson each warrant and represent to each other that it has used no brokers in this transaction and each agrees to save, indemnify and hold harmless the other from and against any and all claims, costs, expenses, finders fees, liabilities and obligations of every nature, kind and description from brokerage services from any person, firm corporation, partnership or other entity claiming entitlement to fees, commissions, compensation or expenses from brokerage services performed by or on behalf of PSM or Hutchinson in connection with this transaction. 7. Closing Date This transaction shall be closed on or before April 24, 1997 at a location to be determined later. 8. Hutchinson's Failure to Convey. In the event Hutchinson does not tender the conveyance of the property, or possession thereof, in the manner and condition and by the dates provided by this . agreement, then PSM may elect to terminate this agreement, this agreement shall be null and void, 2- • and neither party shall have any claim or cause of action against the other. 9. Default by PSM Prior to Conveyance In the event that prior to conveyance of the property to PSM and in violation of this agreement, PSM fails to pay the purchase price for and take title to the property upon tender of conveyance by Hutchinson pursuant to the agreement or upon the occurrence of any other default or failure, then in that event, this agreement and any rights of PSM arising hereunder with respect to Hutchinson or the property may, at the option of Hutchinson, be terminated by Hutchinson. In the event of termination, neither PSM or Hutchinson shall have any further rights against or liability to the other under this agreement. 10. Date of Occupancy. Hutchinson may remain in possession of the property until April 24, 1997. 11. Developer's Fee. PSM agrees to pay, at the time of closing, two Hutchinson the sum of 0 Three Thousand and no /100 Dollars ($3,000.00) as and for a developer's fee for reimbursement of expenses relating to initial document preparation and coordination of negotiations resulting in the transaction described herein. 12. Ivfiscellaneous A. Execution by All Parties in Counterpart s . This Agreement shall not become effective and binding until executed by all parties. This Agreement may be executed in two (2) or more counterparts, each which shall be deemed an original and all of which shall constitute a single instrument, and the signature of any party to any counterpart shall be deemed a signature to and may be appended to any other counterpart. B. Notice All notices, demands and/or consents provided for in this Agreement shall be in writing and shall be deemed given when delivered to the parties hereto by hand or by United States • registered or certified mail, return receipt requested, with postage prepaid. All such notices and communications shall be deemed to have been served on the date when mailed. All notices and 3- communications shall be addressed to the parties hereto at the respective addresses set forth below: 1. If to Plastic Specialities Manufacturing Inc.: Plastic Specialities Manufacturing, Inc. With a copy to: 2. If to Hutchinson: City of Hutchinson Hutchinson City Center 111 Hassan Street S.E. Hutchinson, Mn. 55350 With a Copy to: G. Barry Anderson, City Attorney Arnold, Anderson & Dove, PLLP 101 Park Place Hutchinson, Mn. 55350 C. Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. D. Cooperation Each of the parties agrees to cooperate with the other in effecting the purposes of this Agreement. Without limiting the generality of the foregoing, Hutchinson agrees to cooperate with PSM in submitting applications for permits consistent with the terms of this Agreement. E. Assignn en_t Neither PSM nor Hutchinson shall have the right to assign this Agreement or any of the rights or obligations hereunder without obtaining the prior written consent of the other ply F. Successors and Assigns This Agreement shall apply to, inure to the benefit of, and be binding upon and enforceable against the parties hereto and their respective successors and assigns. G. Paragraph Headings The headings inserted at the beginning of each paragraph are for convenience of reference only and shall not limit or otherwise affect or be used in the construction • L� 4— • of any of the terms or provisions hereof. H. Entire Agreement This Agreement contains all of the agreements, terms, covenants, conditions, warranties, and representations made or entered into by and between the parties, and supersedes all prior discussions and agreements, whether written or oral, between the parties and constitutes the sole and entire agreement between the parties with respect thereto. This Agreement may not be modified or amended unless such modification or amendment is set forth in writing and executed by all parties hereto. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. PLASTIC SPECIALITIES MANUFACTURING INC. a By: CITY OF HUTCHINSON By: Its: By: Its: STATE OF MINNESOTA) )SS- COUNTY OF McLEOD ) On this _ day of April, 1997, before me a Notary Public, personally came before me the the of Plastic Specialities Manufacturing, Inc., a Minnesota corporation, to • me known to be the persons who executed the foregoing instrument and acknowledged that they executed the foregoing instrument on behalf of said corporation. Notary Public 5— 0 STATE OF MINNESOTA) ) SS. COUNTY OF McLEOD ) On this _ day of April, 199, before me a Notary Public, personally came before me Marlin Torgerson, the Mayor and Gary D. Plotz, City Administrator for the City of Hutchinson, a Minnesota municipal corporation, to be known to be the persons who executed the foregoing instrument and acknowledge that they executed the foregoing instrument on behalf of said municipal corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: G. Barry Anderson, City Attorney ARNOLD, ANDERSON & DOVE, PLLP 101 Park Place Hutchinson, Mn. 55350 Telephone (612- 587 -7575) Attorney I.D. No. 196X A _ m • EXHIBIT "A" Lot 2, Block 1, Second Addition to Hutchinson Industrial District according to the plat thereof recorded on March 24, 1994 as Document No. 19923 on file and of record in the office of the Registrar of Titles, McLeod County, Minnesota. Subject to drainage and utility easements as shown on the plat of record. • • 7- ORDINANCE NO. 19 3 ,2ND SERIES • PUBLICATION NO. AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AUTHORIZING THE SALE, DISPOSITION OR TRANSFER OF CERTAIN REAL ESTATE TO PLASTIC SPECIALITIES MANUFACTURING, INC. 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, The City Council for the City of Hutchinson, Minnesota, hereby authorizes the sale, transfer and disposition of certain real estate owned by the City of Hutchinson, to Plastic Specialities Manufacturing, Inc., a Minnesota corporation, legally described as follows: Lot Two (2), Block One (1), Second Addition in the Hutchinson Industrial District, McLeod County, Minnesota. Section 2. City Code Chapter l 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 22nd day of April, 1997. CITY OF HUTCHINSON M Mayor Attest: Gary D. Plotz City Administrator Published in the Hutchinson Leader:_ First reading: April 8, 1997 Second reading: April 22, 1997 • C M E M O R A N D U M TO: Mayor and City Council FROM: John P. Rodeberg, Director of Engineering/Public Works RE: Consideration of Improvement Project Change Orders DATE: April 17, 1997 Attached please find 3 Change Orders for City Improvement Projects. A description of each is as follows: Letting No. 7/Project 96 -11 & 13 (Change Order No. 2) $18,71.95 Includes minor revisions due to unforeseen conditions, including a water service abandonment on 3rd Avenue SE and additional work at the intersection of 13th Avenue NW (Krsiaen Acres) and Golf Course Road. (0.8% of contract) Letting No. 9/Project 96-16 & 18 (Change Order No. 2) $1,996.00 Includes minor revisions due to unforeseen conditions. (0.8% of contract) Letting No, 2/Prooect 97 -02 (Change Order No. 1) 5460 Includes minor revisions due to unforeseen conditions. (1.0% of contract) No further Change Orders are expected on these projects. All prices have been reviewed, and determined to be fair and appropriate. We recommend approval of the Change Orders. • City Center II l Hassan Street SE Hutchinson, AIN 55350 -2522 (320) 587 -5151 Fax(320)234-4240 Parks & Recreation 900 Harrington Street SW Hutchinson, YIN 55350 -3097 (320) 587 -2975 Fax (320) 2344240 Police Services 10 Franklin Street S W Hutchinson, MN 55350 -2464 (320) 587 -2242 Fax (320) 587 -6427 Printed on recycled paper - CHANGE ORDER NO. 2_ CITY OF HUTCHINSON - ENGINEERING DEPARTMENT 111 HASSAN ST SE, HUTCHINSON MN 55350 (612) 587.5151 Sheet Lof _I CONTRACTOR: Wm. Mueller & Sons, Inc. LETTING NO. 7 PROJECT NO. 96-11 & 96-13 ADDRESS: 831 Park Ave, P O Box 247, Hamburg MN 55339 PROJECT LOCATION: 96 -11 -3rd Ave SE/96 -13 -13th Ave DESCRIPTION OF CHANGE: Miscdlaneaus ch2 es to contract. Item No Sec Ref Item Name Unit Quantity Unit Price Amount INCREASE ITEMS: PROJECT NO. 96 -11 5 DIV. I Abandon Water Service Lump Sum 1 $115.00 $115.00 10 DIV. II Reconstruct Manhole Lump Sum 1 $448.50 $448.50 PROJECT NO. 96-13 11 DIV. II Extend Culvert & Fill Ditch Lump Sum 1 $1,308.45 $1,308.45 Note- Includes 15% P & O on work done by Subcontractor. TOTAL INCREASE ITEMS $1,871.95 TOTAL CHANGE ORDER NO. 2 $1,871.95 NET INCREASE /EW-e £PrSE $1,871.95 In accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of $1871.95 add /tledttet. An extension of 0 days shall be allowed for completion. The original completion date was October 1. 1996 and now has been adjusted to - -- —• , 19_. ORIGINAL CONTRACT PREVIOUS THIS TOTAL ADDITIONS /DEDUCTIONS ADDITION /E)FBUe:F1E)? $238,865.25 + $503.25 + $1,871.95 $241,240.45 Dt 1 /Y�1 �.. L 7 � -'J `-�I�c APPROVE �, _ S�on�a or DATED � - Y/ L c��LC, /- ' APPROVED: Mayor ATED: APPROVED: Director of Engineering DATED: APPROVED: City Administrator DATED: CHANGE ORDER NO. 2 CITY OF HUTCHINSON - ENGINEERING DEPARTMENT 111 HASSAN ST SE, HUTCHINSON MN 55350 (612) 587.5151 Sheet Hof 1 IONTRACTOR: JuuI Contracting Company I LETTING NO. 9 1 PROJECT NO. 96.17 & 96.18 tD SS: P.O. Box 189, Hutchinson, MN 55350 PRO ECT LOCATION: 96- 17:Parkin Lot E 96.18: Su grior St TION OF CHANGE: Miscellaneous changes to contract. :=No Spec Ref I Item Name Unit Quantity Unit Price Amount INCREASE ITEMS: PROJECT NO. 96 -17 16 DIV. II Disconnect Water Service Each 2 $100.00 $200.00 13 DIV. III lRepair 18" Storm Sewer Lump Sum 1 1 $122.00 $122.00 44 DIV. III Excavate Boulevard Lump Sum 1 $324.00 $324.00 PROJECT NO. 96-18 17 DIV. II Hydrant Extension Lump Sum 1 $291.00 $291.00 14 DIV. III Construct 150 mm Drain Tile Connection Lump Sum 1 $591.00 $591.00 45 DIV. IV Construct Berm Lump Sum 1 $468.00 $468.00 TOTAL INCREASE ITEMS $1,996.00 TOTAL CHANGE ORDER NO. 2 $1,996.00 NET INCREASE /PEC-FEEfsSF $1,996.00 in accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of $1996.00 add /de :%n extension of 0 days shall be allowed for completion. The original completion date was October 1. 1996 and now has been idjusted to - - - -- . 19-. ORIGINAL CONTRACT PREVIOUS THIS ADDITIONS /DEDUCTIONS ADDITION /DEHHC -TIeN TOTAL $257,245.45 + $1,700.50 + $1,996.00 $260,941.95 // � PPROVED: � Contractor DATED: / rj APPROVED: Mayor DATED: 1-WVED: Director of Engineering DATED: APPROVED: City Administrator DATED: -Z —11(2) CHANGE ORDER NO. 1 CITY OF HUTCHINSON - ENGINEERING DEPARTMENT 111 HASSAN ST SE. HUTCHINSON MN 55350 (612 ) 587 -5151 Sheet Hof I CONTRACTOR: Juui Contracting Company LETTING NO. 2 PRO CT NO. 97 -02 ADDRESS: P O Box 189, Hutchinson MN 55350 PRO ECT LOCATION: Michigan St DESCRIPTION OF CHANGE: Miscellaneous changes to contract. Item No Spec Ref Item Name Unit Quantity Unit Price Amount INCREASE ITEMS 16 DIV. I F & 1150 x 150 mm PVC Wye Each 4 $40.00 $160.00 9 DIV. II Install 300 mm x 200 mm Tee Lump Sum 1 $300.00 $300.00 TOTAL INCREASE ITEMS $460.00 TOTAL CHANGE ORDER NO. 1 $460.00 NET INCREASE /13EER£�rSb $460.00 In accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of $ 460.00 add /deduct. An extension of 0 days shall be allowed for completion. The original completion date was November 30. 1996 and now has been adjusted to - - -- 19 ORIGINAL CONTRACT PREVIOUS THIS TOTAL ADDITIONS /DEDUCTIONS ADDITION / 9N $44,229.60 $0.00 $460.00 $44,689.60 / AP PROVED �Q +Gf Contractor DATED: p2 —Is,-917 APPROVED: Mayor DATED: APPROVED: Director of Engineering DATED: APPROVED: City Administrator DATED: Minnesota Department of Transportation 1800 East College Drive OF P.O. Box 29 Marshall, Minnesota 56258 April 9, 1997 Mr. Gary D. Plotz, City Administrator City of Hutchinson 111 Hassan Street SE Hutchinson, Minnesota 55350 -2522 RE: Landscape Partnership Cooperative Agreement #76013 Dear Mr. Plotz: APR 10 1997 C-`r' )F HUTCHI _'ON Transmitted herewith are two (2) copies of the agreement with the city of Hutchinson and Mn1DOT for landscape improvements along T.H. 22 in Hutchinson. Please execute two (2) copies of the Resolution and Agreement and return to my office. If you have any questions, please call. Sincerely, Thomas L. Behm District State Aid Engineer TLB /afb Enclosures • An Equal Opportunity Employer J , Minnesota Department of Transportation Office of Technical Support MunidpaVUblity Agreements Units Mail Stop 682, Room 618 395 John Ireland Boulevard St Paul, MN 55155 April 4, 1997 To: Tom Behm District State Aid Engineer From: Pat Schrader Municipal/Utility Agreements Engineer Subject: Proposed Coop. Const. Agree. No. 76013 City of Hutchinson S.P. 4307-969 (T.H. 22=22) Office Tel: (612) 296-0969 Fax (612) 296 -1805 State cost landscape materials acquisition by the City for use along T.H. 22 Transmitted herewith in duplicate is a proposed agreement with the City of Hutchinson. This agreement provides for payment to the City of the State's share of the costs of landscape materials acquisition by the City for use along T.H. 22 within the corporate City limits, in accordance with the State's "Community Roadside Enhancement Partnership Program" Kindly present this agreement to the City Council for their approval and execution which includes original signatures of the City Council authorized City officers on both copies of the agreement. Also required are two copies of a resolution passed by the City Council authorizing its officers to sign the agreement on its behalf. A suggested form of such resolution is also enclosed. It is requested that the executed agreement and resolution copies be forwarded to this office as soon as possible. A copy will be returned to the City when fully executed. Please vend me a copy of your letter transmitting the agreement to the City for approval. cc: S. Bradley File 0 A • / --T 76013 • CITY OF HUTCHINSON M *111RIJI013al BE IT RESOLVED that the City of Hutchinson enter into Mn/DOT Agreement No. 76013 with the State of Minnesota, Department of Transportation for the following purposes, to -wit: To provide for payment by the State to the City for the costs of the acquisition of landscape materials to be placed along Trunk Highway No. 22 from Engineer Station 1857 +00 to Engineer Station 1887+00 under State Project No. 4307 -969 (T.H. 22 =22). BE IT FURTHER RESOLVED that the proper City officers are hereby authorized and directed to execute such Agreement. 0 CERTIFICATION State of Minnesota County of McLeod City of Hutchinson I hereby certify that the foregoing Resolution is a true and correct copy of the resolution presented to and adopted by the Council of the City of Hutchinson at a duly authorized meeting thereof held on the day of 1997, as shown by the minutes of the meeting in my possession. City Administrator (Signature) • (Type or print name) i OFFICE OF STATE OF MINNESOTA Mn /DOT ENVIRONMENTAL DEPARTMENT OF TRANSPORTATION AGREEMENT NO. SERVICES LANDSCAPE PARTNERSHIP AGREEMENT 76013 S.P. 4307 -969 (T.H. 22 =22) State Funds The State of Minnesota Department of Transportation, and The City of Hutchinson Re: State cost for landscape material acquisition by the City for use along T.H. 22 0 Mn/DOT Accounting Information: Vendor Number Fu Yw Agmy: T-79 Fund: O,ySub: Ap Artwum: AMOUNT ENCUMBERED AMOUNT RECEIVABLE Contract: Number /Date/Entry Initials Order: Budget Office: N u m b e dD at e S i g n atu re s (Individual signing terrifies rharfunds have been encumbered as required by Minn. Scar. § 16A.15.1 (Authorized Signature) THIS AGREEMENT is made and entered into by and between the State of Minnesota, Department of Transportation, hereinafter referred to as Is "Mn /DOT ", and the City of Hutchinson, Minnesota, acting by and through its City Council, hereinafter referred to as the "City ". 1 / l 76013 WITNESSETH: • WHEREAS the City is about to perform landscaping along Trunk Highway No. 22 from Engineer Station 1857 +00 to Engineer Station 1867 +00 within the corporate City limits in accordance with City - prepared plans, specifications and /or special provisions designated as the "Hutchinson Partnership Landscaping Plan ", which project has been designated by Mn /DOT as State Project No. 4307 -969 (T.H. 22 =22); and WHEREAS the City has requested participation by Mn /DOT in the costs of landscape materials acquisition in accordance with the terms of Mn /DOT's "Community Roadside Landscaping Partnership Program "; and WHEREAS Mn /DOT is willing to participate in the costs of the landscape materials acquisition as hereinafter set forth; and WHEREAS Minnesota Statute Section 161.20, subdivision 2 (1996) authorizes the Commissioner of Transportation to make arrangements with and cooperate with any governmental authority for the purposes of constructing, maintaining and improving the trunk highway system. IT IS, THEREFORE, MUTUALLY AGREED AS FOLLOWS: ARTICLE I - PROJECT ADMINISTRATION BY THE CITY Section A Landscape Materials Acquisition The City shall acquire landscape materials in accordance with Mn /DOT- approved City plans, specifications and /or special provisions designated as the "Hutchinson Partnership Landscaping Plan ". Landscaping shall be performed by City forces in accordance with is 2 Mn /DOT- approved City plans, specifications which are on file in the City's office and Environmental Services in Oakdale, and are reference with the same force and effect a herein. 76013 and /or special provisions in Mn /DCT's office of made a part hereof by s though fully set forth Section H Purchase Order to be Furnished to Mn /DOT The City shall, within 7 days after ordering the landscape materials, submit to Mn /DOT's Landscape Programs Coordinator in Oakdale a copy of the ourchase order for the landscape materials. Section C Direction Supervision and Inspection Landscape materials acquisition performed in accordance with this Agreement shall be under the direction of the City; however, the Mn /DOT cost participation landscape materials to be acquired under this Agreement shall be open to inspection by Mn /DOT's authorized representatives. The City shall give Mn /DOT's Landscape Programs Coordinator five days notice of its intention to receive delivery of the landscape materials. Responsibility for the control of the Mn /DOT cost participation landscape materials acquisition covered under this Agreement shall be on the City and shall be carried out in accordance with Mn /DOT- approved City plans, specifications and /or special provisions designated as the "Hutchinson Partnership Landscaping Plan ". The City must verify whether or not nursery vendors are under a Gypsy Moth Compliance Agreement between the Minnesota Department of Agriculture, hereinafter referred to as the "MDA", and the United 3 76013 States Department of Agriculture or under an Quarantine. All plant material shipped from to quarantines must be accompanied by a Curr omglian for gypsy moth and /or Japanese be vendors are subject to quarantines, call the Regulatory Services at (612) 296 -8388. MDA Japanese Beetle nursery vendors subject -nt certjficate of etle. To determine if MDA Supervisor of Plant Sect D Completion of Materials Acauisition and Installation The City shall cause the acquisition and installation of landscape materials to be started and completed in accordance with the time schedule in the Community Roadside Landscaping Partnership Program Project Application, which is on file in Mn /DOT's Office of Environmental Services and is made a part hereof by reference with the same force and effect as though fully set forth herein. The completion date for the landscape materials acquisition and installation may be extended, by an exchange of letters between the appropriate City official and Mn /DOT's Landscape Programs Coordinator, for unavoidable delays encountered in the performance thereof. Sertinn F_ Comnliance with Laws, ordinances and Regulations The City shall, in connection with the acquisition of the landscape materials, comply with all Federal, State and Local laws, including Minnesota Statute Section 16B.101 (1996), and all applicable ordinances and regulations. Section F Right- of -Way Easements and Permits The City is hereby authorized to work on Mn /DOT right -of -way for the purposes of installing and maintaining the landscape materials, including any necessary replacement of landscape materials that fail to survive. 4 76013 • The City shall, without cost or expense to Mn /DOT, obtain all rights -of -way, easements, construction permits and /or any other permits and sanctions that may be required in connection with the installation of landscape materials. Prior to advance payment by Mn /DOT, the City shall furnish Mn /DOT with certified copies of the documents for those rights -of -way and easements, and certified copies of those construction permits and /or other permits and sanctions required for Mn /DOT landscaping. ARTICLE II - MN /DOT COST Section A. Basis Mn /DOT's full and complete share of the costs of the landscaping to be performed along Trunk Highway No. 22 from Engineer Station 1857 +00 to Engineer Station 1887 +00 within the corporate City limits under • State Project No. 4307 -969 (T.H. 22 =22) shall be equal to the delivered cost of the landscaping materials acquired in accordance with the "Hutchinson Partnership Landscaping Plan ", however, the maximum obligation of Mn /DOT under this Agreement shall not exceed $17,000.00, unless the maximum obligation is increased by execution of an amendment to this Agreement. It is estimated that the cost of the landscape materials acquisition is $6,600.00. Section B. Payment Mn /DOT shall pay to the City an amount equal to the delivered cost of the landscape materials, not to exceed the maximum obligation, after the following conditions have been met: 1. Encumbrance by Mn /DOT of Mn /DOT's total cost share. • 2. Execution and approval of this Agreement and Mn /DOT's transmittal of same to the City. 5 FLOW 3. Provision by the City to Mn /DOT's Landscape Programs Coordinator • of copies of the purchase orders for the landscape materials, as provided for in Article I, Section B. of this Agreement. 4. Provision by the City to Mn /DOT's Landscape Programs Coordinator of certified copies of the documents, as provided for in the second paragraph of Article I, Section F. of this Agreement. 5. Provision by the City to Mn /DOT's Landscape Programs Coordinator of a written request for payment, accompanied by copies of supplier invoices for the landscape materials accuisi *_ion and delivery. ARTICLE. III - GENERAL PROVISIONS Section A. Installation and Maintenance by the City After acquisition of the landscape materials, the City shall install the landscape materials along Trunk Highway No. 22 and provide for the proper maintenance thereof, without cost or expense to Mn /DOT. Maintenance shall include, but not be limited to, removal and replacement of all materials that fail to survive. Criteria for maintenance and replacement are shown and described in EXHIBIT "A ", Maintenance Responsibilities Plan and Schedule, which is attached hereto and made a part hereof by reference. The City shall, in connection with the landscape materials acquisition, installation and maintenance, comply with the following conditions: • 6 76013 • 1. Use of Mn /DOT right -of -way shall in no way impair or interfere with the safety or convenience of the traveling public in its use of the highway. 2. Preserve and protect all utilities located on lands covered by this Agreement, without cost or expense to Mn /DOT. 3. As required by Minnesota Statute 216D (1996), notify Gopher State One Call System (1 -800- 252 -1166) at least 48 hours before any excavation is done on this project. 4. No advertising signs or devices of any form or size shall be constructed or shall be permitted to be constructed or placed upon Mn /DOT right -of -way covered by this Agreement. • 5. Upon completion of the installation of landscape materials and during performance of maintenance operations, restore all disturbed areas of Mn /DOT right -of -way so as to perpetuate satisfactory drainage, erosion control and aesthetics. Any use of Mn /DOT right -of -way permitted by this Agreement shall remain subordinate to the right of Mn /DOT to use the property for highway and transportation purposes. This Agreement does not grant any interest whatsoever in land, nor does it establish a permanent park, recreation area or wildlife or waterfowl refuge facility that would become subject to Section 4(f) of the Federal -Aid Highway Act of 1968. i_ • As provided by Minnesota Statute Section 16B.06, subdivision 4 — (1996), the books, records, documents, and accounting procedures and 7 76013 practices of Mn /DOT and the City relevant to this Agreement are • subject to examination by Mn /DOT and the City, and either the legislative auditor or the State auditor as appropriate. Mn /DOT may cancel and terminate this Agreement for any cause or reason, including Mn /DOT's desire to use any portion of Mn /DOT right -of -way subject to this Agreement for transportation purposes, by giving the City written notice at least 90 days prior to the date which such termination shall become effective. Upon cancellation of this Agreement, the City will be required to restore and return the area to a condition satisfactory to Mn /DOT's District Engineer at Willmar. Section E. Claims All employees of the City and all other persons employed by the City or volunteering in the performance of landscape materials acquisition, installation and /or maintenance covered under this Agreement shall not be considered employees of Mn /DOT. All claims that arise under the Worker's Compensation Act of the State of Minnesota on behalf of the employees or volunteers while so engaged and all claims made by any third parties as a consequence of any act or omission on the part of the employees or volunteers while so engaged on landscape materials acquisition, installation and /or maintenance covered under this Agreement shall in no wav be the obligation or responsibility of Mn /DOT. Section F. Nondiscrimination The provisions of Minnesota Statute Section 181.59 (1996) and of any applicable law relating to civil rights and discrimination shall be • considered part of this Agreement as if fully set forth herein. 8 76013 • Section G. Agreement ADOroval Before this Agreement shall become binding and effective, it shall be approved by a City Council resclut_on and receive approval of State and City officers as the law may provide in addition to the Commissioner of Transportation or his authorized representative. ARTICLE IV - AUTHORIZED AGENTS Mn /DOT's Authorized Agent for the purpose of the administration of this Agreement is Scott Bradley, Landscape Programs Coordinator, or his successor. His current address and telephone number are 3485 Hadley Avenue North, Oakdale, Minnesota 55128, (612) 779 -5076. The City's Authorized Agent for the purpose of the administration of this Agreement is Mark Schnobrich, City Forester, or his successor. His current address and telephone number are 900 Harrington Street Southwest, Hutchinson, Minnesota 55350 -2522, (320) 234 -4450. L 76013 • IN TESTIMONY WHEREOF the parties have executed this Agreement by their authorized officers. Recommended for approval: By / of JA Directo Office of Environme4tal Services M Mayor Date By District Engineer Approved: By p)5 State Design Engineer By City Administrator Date Date Date Approved as to form and execution: By Assistant Attorney General • 10 EXHIBIT "A" Maintenance Responsibilities Plan and Schedule Table 1a. REQUIRED LANDSCAPE MAINTENANCF ACTIVITIFS MAINTENANCE CONSIDERATION PLANT PRUNING WEED FERTILIZATION GROUPS CONTROL See Table 5, DISEASE PROTECTION REPLACEMENTS When To Type Of CONTROL Fertilization Schedule Evergreen Trees Anytime - Dry Corrective and Maintain mulch at 3" Yes Remove all dead plants. Deadwood Removal minimum around trees in mowed areas, Shade Trees Anytime - Dry' Training and Yes Ornamental Trees Supplemental watering may be needed during keep weed free. Yes plants unless the visual appearance or design Corrective Evergreen Shrubs drought periods especially during July Ornamental Trees Winter" Corrective Yes Evergreen Shrubs Anytime - Dry Deadwood Removal Yes Deciduous Shrubs Dormant Corrective and Maintain minimum 3" Yes plants are established. Renewal woodchip mulch in a roundcovers No* weed free condition until shrub crown closure. L v—ines Dormant Deadwood Removal No Groundcovers 4 ' Do not prune oaks during April, May and June. Do not prune honeylocust while dormant or when humid or wet. "' Do not prune apples, crabapples or mountain ash during April, May and June. TABLE 1b. REQUIRED LANDSCAPE MAINTENANCE ACTIVITIF.S MAINTENANCE CONSIDERATION PLANT GROUPS WATERING INSECT AND RODENT REMOVALS AND DISEASE PROTECTION REPLACEMENTS CONTROL Evergreen Trees Yes until established (2 yrs.). As needed. Yes - Pine Only Remove all dead plants. Shade Trees Remove diseased Yes Replace dead or dying Ornamental Trees Supplemental watering may be needed during plants which pose threats to adjacent Yes plants unless the visual appearance or design Evergreen Shrubs drought periods especially during July plantings. No" intent are not noticeably Deciduous Shrubs and August) even after No" compromised by the Vines plants are established. No , lost plants. — roundcovers No* 4 Rodent protection is generally not practical for mass shrub plantings, maintaining clean mulched planting areas free of weed growth will reduce problems. Mowed turf in formal planting areas will help reduce rodent problems. Sheet 1 of 4 TABLE 2a. CALENDAR OF LANDSCAPE MAINTENANCE ACTIVITY January February I March I April I May June Pruning See Table 1 a for Best Time for Specific Species. Weed Control: Planting beds must be kept in a weed free condition. I OXX XXXX XO Remulch Must be applied by a licensed Pesticide Applicator. Herbicide Fertilization: Turf XXXX Shrubs, Trees Insect & Disease Time of control depends on the type of insect or disease and when it is detected. Sunscald Protection Remove wrap' Watering During first and second growing seasons approximately once a week or as needed to maintain adequate but not excessive soil moisture. Maintain Rodent 0000 0000 0000 0000 0000 0000 Protection Turf Maintenance Mowing COX XXXX Mower Damage Prevention X XXXX XXXX Replanting Evergreen Trees OXX XXO Deciduous Trees OXX XXXX Container Plants XXX XXXX XXXO Turf O XXXX XX00 X - Optimum Time 0 - Less than Optimum Time Undiluted white latex paint is recommended, repaint as necessary until trees reach 4" caliper 1 J • Sheet 2 of 4 TABLE 2b. CALENDAR OF LANDSCAPE MAINTrMaMrF IF ACTIVITY July August September October November December Pruning See Table 1 a for Best Time for Specific Species. Weed Control: Planting beds must be kept in a weed free condition. XXXX XXXX XXXX XXXX 00 XO Remulch Must be applied by a licensed Pesticide Applicator. Herbicide Fertilization: Turf XXXX Shrubs, Trees XXXX Insect & Disease Time of control depends on the type of insect or disease and when it is detected. Sunscald Protection Apply or maintain paint. Install wrap'. Watering During first and second growing seasons approximately once a week or as needed. Maintain Rodent rotection 0000 0000 XXXX XXXX X000 0000 Turf Maintenance Mowing XXXX XXXX XXXX XXOO Mower Damage Prevention XXXX XXXX XXXX XXOO Replanting Evergreen Trees OX XXXO Deciduous Trees OXXX XO Container Plants 0000 OOOX XXXO Turf 0000 OOXX XXXX 00 X - Optimum Time 0 - Less than Optimum Time " Undiluted white latex paint is recommended, repaint as necessary until trees reach 4" caliper. • Sheet 3 of 4 TABLE 3. DESCRIPTIONS OF TYPES OF PRUNING TYPES OF PRUNING WHEN TO PRUNE DESCRIPTION Disease Removal After Diagnosis Removal of fungal bacterial growths. Sterilize pruners between Every 3 Years X cuts. Deadwood Removal See Table 1 Removal of dead branches, normally from the interior portion of X Remulch' the crown. Training See Table 1 Maintaining the central leaders and acceptable symmetry in X X evergreen, shade and ornamental trees. Removal of suckers and Weed Whip No water sprouts. Corrective See Table 1 Removal of storm - damaged, vehicle- damaged or vandalized limbs. Renewal See Table 1 Removing all top growth at or near the ground line and remulch. Or removal of 1/3 of the oldest stems at the ground line. TABLE 4. WEED CONTROL METHODS - INTEGRATED APPROACH METHOD CATEGORY TREES SHRUB BEDS TURF Replanting - Filling Voids Every 3 Years X X Fertilization X X X Remulch' X X X Herbicides X X X Weed Whip No X ' Wood chip mulch should be replenished around shade trees and low growing shrubs every 3 -5 years. Place mulch to a 4" depth. Mulching will help control weeds, reduce mower damage and conserve moisture. TABLE 5. FERTILIZATION SCHEDULE CATEGORY FREQUENCY TIME OF APPLICATION ANALYSIS RATE Mowed Turf Every 3 Years April or October 1 2 -12 -1 2 300 Ibs /acre Shrub Beds' Every 3 Years October or April 12-12-12 25 Ibs /1000 sq. ft. Shade Trees' Every 3 Years October or April 12-12-12 10 Ibs /1000 sq. ft. Note: Do not fertilize trees and turf during the same season. Offset tree fertilization by one season in order to prevent fertilizer burn on turf. 1 1 Plants that fix nitrogen, like silver buffaloberry, caragana, honeylocust, Russian olive or other 40 legumes, should not be fertilized except under special conditions. Tall shrubs do not need to be fertilized if leaf color remains normal. Sheet 4 of 4 Sho� -� 'fern. 11 City of Hutchinson FEE: $25.00 APPLICATION FOR GAMBLING DEVICES LICENSE Approved t Building Fire Application shall be submitted at Police least _ days prior to the Gambling occasion I. XekleAI AND I, � ee came of Authoriz Officer of rame of Designate mbling Organization Manager Hereby submit in duplicate this application for a license to conduct the game of gamblingin accordance With the provisions of the City of Hutchinson Ordinance NO. 655 and Minnesota Statutes Chapter 349 for the license year ending atures: orized UIi oy Urganization 17esignated Gambling tgnager o ✓ organization 0 A. The following is to be completed by the duly authorized officer of the organizationD,: i 1. True Name: W-e- (1` A) "' (first) (middle) 2. Residence Address: �S�ej�f��QSp /�/,1�fSB•/�lGTU2/Al5/ 41�$✓��5 (street) (city) (st te) zip) 3. Date of Birth: O 4. Place of Birth e ms (mo /day /year) (city /state) 5. Have you ever been convicted of any crime other than a traffic offense? Yes No V . If Yes, explain • B. The following is to be completed by the designated gambling manager of organization: /� 1. True Name: // /r' V ✓� �1ta6A/Ptfr, (last) (first) (middle) 2. Residence Address: (street) 3. Date of Birth: - �/- �� 4. Pro (mo /day /year) APR 15 1991 City of Hutchinson rr' Z -2v . q cu v I I/iv"Sir (city) (state) Place of Birth: I ip e city /sta - te) ,zl-T I 5. Have you ever been ccnvicted of a y crime other than a traffic offense? Yes No . If yes, explain _ 6. How long have you been a member of the organization? �o� In 7. Attach a copy of the official resolution or official action designating you gambling manager. C. Came Information: 1. Place where gambling devices will be used 7'eOAT 2. Date or dates gambling devices will be used 4/ (date and /or day(s) 3. Hours of the day gambling devices will be used: of week) From �QO A• To A. }M P . 4. 'maximum number of players / 5. Will pr'_ zes be paid in money or merchandise? fe? ( 6. Will refreshments be served during the time the gambling devices will be used? Yes No If so, will a charge be made for such refreshments? Yes Le NO D. Organization Information: 1. Address where regular meetings are held p"L K S 1"We- 2. Day and time of meetings ��`O p /77 ONAe- A-/)'1D HtH 3. Is the applicant organization organized under the laws of the State of Minnesota? Yes _� No 4. How long has the organization been in existence? _ �/�QS'' - 4a. How many members in the organization? M 5. What is the purpose of the organization ?01 /F 6. Officers of the Organization: ��eSr,Q1/¢ f70A1 4�` Name Address Title 7. Give names of officers or any other persons paid for services to the organization: Name Address Title n U 0 D. Organization Information: (Continued) 8. In whose custody will organization records be ke Name r // f /�e�L Address 9. If the organization car sufficient insurance tc co-p nsate the players in the event any injury is sustained by players while gambling devices are used, or while on the licensed premises, please state the Name of Insurer and Policy No. 10. Have you (Manager & Officer) read, and do you thoroughly understand the provisions of all laws, ordinances, and regulations governing the operation and use of gambling devices` 11. Atta �J a list of all active members of the organization. E. The following information is provided concerning a fidelity bond given by the gambling manager in favor of the organization. 1. Name of bonding company 2. Address of bonding company 3. Amount and duration of bond 4• Application is hereby made for waiver of the bonding requirements. Yes No I declare that the information I have provided on this application is truthful, and I authorize the City of Hutchinson to investigate the information submitted. Also, I have received from the City of Hutchinson a copy of the Ci dinance No. 655 relating to gambling, and I will familiarize mys�th the contenfs) thereof. oignature or authorized�y Uicer of organiczation Date. �C - / - I q `before me a notary public on this / ft,day of MCU pppp ignature of Notary Public W�onE�Yadntl,2 m ommission expires on ! 31 - ZC Subscribed and sworn to before me a notary public on this 19 Signature of Notary Public Commission expires on Social Security Number: day of • PM Business ID Number: 0 DATE: April 18, 1997 TO: Mayor Marlin Torgerson and City Council Members FROM: Mary Beth Schaufler,�,�� HCDC Coordinator ' RE: Commercial Loan The Quade Family Partnership, (Skip Quade), has applied for a Commercial Loan through HCDC. They are asking for a loan not to exceed $49,700.00 to refurbish the outside of 101 Park Place building along Main Street. A HCDC Finance Subcommittee, Finance Team and the HCDC Board have all reviewed the application and approve and recommend it to the City Council for approval. The loan will be used for three new awnings, two new doors and three door lights, to re- move and replace all rotted window frames and panels and also for three new signs and electrical work for one neon sign and for the lights on the outside of the building. The building will have a whole new facelift! The loan will be 2% interest for 10 years and administered through HCDC. If you have any questions pertaining to this commercial loan application please contact me at 587 -7500. Thank you! 0 �_P' C SATE: April 18, 1997 MUMIRV4 91 Pursuant to Section 414.033, Subd. 2 (3) , of Minnesota Statues, the Hutchinson Planning Commission is hereby submitting its findings of fact and recommendation with respect to the aforementioned request for annexation. On March 13, 1997, Mr. Frank Reese, Architect, Prairie Senior Cottages, submitted a request for annexation of 1.30 acres located in Section 7, Hassan Valley Township. A public hearing was held at the regular meeting of the Planning Commission on Tuesday, April 15, 1997, at which time there were property owners present voicing concerns with S request. FINDINGS OF FACT 1. The required application was submitted and the appropriate fee paid. 2. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on Thursday, April 3, 1997, and Tuesday, April 8, 1997. 3. The proposal is in conformance with the requirements for annexation. RECOMMENDATION It is the recommendation of the Planning Commission that the aforementioned request for annexation be granted as set forth above. Respectfully submitted, Dean Wood, Chairman Hutchinson Planning Commission City Center Parks & Recreation Police Sendces • ll1 Hassan Street SE 900 Harrington Street SIV 10 Franklin Street SW Hnrchinson..ifN 55350 -2522 Hatchinson, 41N 55350.3097 Hutchinson, ffN 55350.2464 -320) 587 -5151 (320) 587.2975 (320) 587 -2242 � Fax 1320) 234 -4240 Fax (320) 234 -4240 � � Fax (320) 587 -6427 - Printed on recrrted paper - Map i °_PCY 2 I 6 Ea+t led( .r.o.� rr..4. AREAS Telr 1.3 Mrw vw el .03 W a Sneu 1.03 .tau Vast MM f• i� I tu.n wo wMlrt 0 o 0 t ! 3 16 J I ie W i I 3 ORCHARD AVENUE SE I 9 Traci Ewt trr t 1) Traci 8 _________ tm z:u -_- rxx.lrlx M A II: •� Y • /a uu n. .. m frrrr .r Traci C I I� — — _ -- _ _ --- _ —I REGISTERED LAND SURVEY N0. 28 + cn W TIW M r irwl C 0 MweltlD INO rIh(Y ail M. . twr/. 1•ww ww.W ww r e, tl r rrwa w r W TINtl c rr I/.t s..r. rrNe r/ r rwrticNr+r...rwtlTr . n•r wtrmwlm r�lO wr eaxrw e..+. ry r..NrrW V.N. N ieei ma•r.r.. w M W Tl�t k Y/ EM4 r MA M r W lr//t • IGaa r r rrW ee r irr e r W .[ lYi MtY t!t r• l Yrl r/ Y wrr tl W lrfl e r •r rrnYd tl/N1+ar. +Nm re rw fir. M.r MIT.CNr ArrM WLpC rM. Yr.Oayw if W+Y rr..Yr I.tl. M W Yr r r r /rrr r+W�L ue o eron PUBLICATION NO. ORDINANCE NO. 97 -194 • AN ORDINANCE EXTENDING THE CORPORATE LIMITS OF THE CITY OF HUTCHINSON TO INCLUDE CERTAIN LAND OWNED BY PRAIRIE SENIOR COTTAGES TO AND ABUTTING THE CITY OF HUTCHINSON PURSUANT TO MINNESOTA STATUTES 414.033, SUBDIVISION 2 (3) WHEREAS, Michael Demmer, Prairie Senior Cottages, has filled a petition dated March 13, 1997, requesting that certain land, as legally described below; That part of Tract C of REGISTERED LAND SURVEY NO. 28, McLeod County, Minnesota, described as follows: Beginning at the northwest comer of said Tract C; thence East, assumed bearing, along the north line of said Tract C to the northwest comer of Tract A of said REGISTERED LAND SURVEY NO. 28; thence South, along the west line of said Tract A 50.00 feet to the southwest comer of said Tract A; thence East, along the south line of said Tract A 60.00 feet to the northwest corner of Tract B of said REGISTERED LAND SURVEY NO.28; thence South, along the west line of said TRACT B and its southerly prolongation 200.00 feet; thence West, parallel with the north line of said Tract C to the west line of said Tract C; thence North 0 degrees 15 minutes 55 seconds West, along said west line to the point of beginning. be annexed to the City of Hutchinson, and WHEREAS, Michael Demmer, Prairie Senior Cottages, represents that he is the sole owner of the property, that the property is unincorporated, abuts the limits of the City of Hutchinson, is not included within any other municipality, is not included in any area that has already been designated for orderly annexation pursuant to Minnesota Statutes 414.0325, and is approximately 1.30 acres in size. NOW, THEREFORE, the City Council of Hutchinson, Minnesota does hereby ordain: SECTION 1. The City Council hereby determines and finds that the property abuts the municipality, that the area to be annexed is 60 acres or less, that the property is not included in any area that has already been designated for orderly annexation pursuant to Minnesota Starnes 414.0325, that the municipality has received a properly prepared Petition for Annexation from all of the owners of the property, and that the Petition complies with all of the provisions of Minnesota Statutes 414.033. SECTION 2. The property is urban in nature or about to become so SECTION 3. The corporate limits of the City of Hutchinson are hereby extended to include the Property and the same is hereby annexed to and included within the City of Hutchinson as if the property had originally been part thereof. SECTION 4. The City Administrator is directed to file certified copies of this ordinance with the Minnesota Municipal Board, Hassan Valley Township, the McLeod County Auditor, and the Minnesota Secretary of State. SECTION 5. This ordinance takes effect upon its passage and publication and the filing of the certified copies as directed in Section 4 and approval of the Ordinance by the Minnesota Municipal Board. Adopted this 13th day of May, 1997. ATTEST: • L/' A Gary D. Plotz City Administrator Marlin Torgerson Mayor C; DATE: April 18, 1997 TO: FROM: SUBJECT: Pursuant to Section 6.04, 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 variance. On April 1, 1997, Mr. McClure, submitted an application for a variance to reduce the front/future side yard setback to 0' located at 995 - 5th Ave S.E. A hearing was held at the regular meeting of . the Planning Commission on Tuesday, April 15, 1997, at which time there was no one present objecting to the request. FINDINGS OF FACT 1. The required application was submitted and the appropriate fee paid. 2. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on Thursday, April 3, 1997. RECOMMENDATION It is the recommendation of the Planning Commission that the variance be granted based on the findings set forth above. Respectfully submitted, Dean Wood. Chairman Hutchinson Planning Commission • City Center 111 Hassan Street SE lLuchinson,JIN 55350 -2522 (320) 587 -5151 Fax ?3201234.4240 Parks & Recreation 900 Harrington Street SW Hutchinson, UN 55350.3097 (320) 587 - 2975 Fax (3 20) 2.34 -1240 Printed on recveled paper - Police Services — 10 Franklin Street SK' Hutchinson. SIN 55350 -2.164 (330) 587 -2742 —// Fax 13 7 0) 587 -6427 MEMORANDUM CERTIFICATE OF SURVEY for - -+ a36 OO ,t' nor �• / ;GAa,Vd Z. 1 /•14Iro P ✓y fi; i % �CLG r�, 3 P ScAve G &14 / s, \a9o9 �/L YCIi rls ro •+. •y/�Y 9 1.9 x Nydren' BENCH MARK Top nut of Hydrant Elevation= 1044.40 x 453 v 4it x 4l.B x denotes existing eleyaflnn ( )denotes proposed eleeallon 0 20 40 90 o Denotes Iron r.ant at Scale In feet • Denotes Iron ecnument found PELLINEN LAND SURVEYING HUTCHINSON. MINNESOTA LOT 4, BLOCK 1, SWANSON'S SUBDIVISION IN HUTCHINSON INDUSTRIAL DISTRICT R 54,f I xcz.] S89 °40'00'E 268.49 I.co3 e (49.0) \ PROPOSED BUILDING 30. FLOOR-1049 so A 64 DROPQ6iD BUILDIIA a4 (_. s 444 45.9 y l P.d"osed I ys'xfd' - /ffs I I % 45.7 - -8e ; (19.0) / x 48.9 x45.5 (47.6) ,465 1poy a\ s se x539 3]p sSBf 1 10 yp e.n a cac L � -476 1 - – — 19.0) 0 (49.) ,530 eala Unp Dudtllnp X \ 54 2 \ \` ISIh' , xS9 } Kerney certify that this survey was pre perad by me or under my direct superrlalon 45.5 19.0) , (49.9) I t` [(lam- aRZ� /"2✓rCM J x 5J' x 539 lO Yl llard Pelllnen, License No. 9676. Data JBBs lD x630 ✓// PAGE 64 N (49.0) x539 3]p sSBf 1 x4]3 yp x 5 ; 0 -476 1 - – — ,530 Kerney certify that this survey was pre perad by me or under my direct superrlalon and that 1 m as duly Licensed Lend Surveyor under the lava of the State of Minnesota. [(lam- aRZ� /"2✓rCM x 539 Yl llard Pelllnen, License No. 9676. Data ,f4 nL G 1 9 9S JOB NO. 933607 BOOK P 163 PAGE 64 RESOLUTION NO. 10831 RESOLUTION GRANTING VARIANCE FROM SECTION 6.04 OF ZONING ORDINANCE NO. 464 TO ALLOW A VARIANCE REQUESTED BY MR. • RICHARD MCCLURE FOR THE REDUCTION OF FRONT/FUTURE SIDE YARD SETBACK TO 0' LOCATED AT 995 -5TH AVE. S.E. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: FINDINGS 1. Mr. Richard McClure has applied for a variance from Section 6.04 of Zoning Ordinance No. 464 to reduce front/future sideyard setback to 0' located at 995 - 5th Ave. S.E. with the following legal description: Legal Description: Lot 4, Block 1, Swanson's Subdivision in Hutchinson Industrial District 2. The Planning Commission has reviewed the application for a variance and has recommended to the City Council that the application for variance be approved as set forth above. 3. The Council has considered the effect of the proposed variance upon the health, safety, and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the values of property in the surrounding area and the effect of the proposed variance upon the Comprehensive Plan. 4. Because of conditions on the subject property and on the surrounding property, it is possible to use the subject property in such a way that the proposed variance will not impair an adequate supply of light and air to adjacent property, unreasonably diminish or impair health, safety, comfort, morals, or in any other aspect be contrary to the intent of the ordinance and the Comprehensive Plan. 5. The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property and do not apply generally to other land or structures in the district in which such land is located. 6. The granting of the application is necessary for the preservation and enjoyment of a substantial property fight of the applicant. It will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable hardship or difficulty. The application for the variance for the purpose designated is granted based on the findings set forth above. Adopted by the City Council this 22nd day of April, 1997. ATTEST: Gary D. Plotz, City Adm. • Marlin D. Torgerson, Mayor C DATE: April 18, 1997 .: ■ : �•• • u• • MUM 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 March 27, 1997, Mr. Arthur Dodge submitted an application for a conditional use permit to move a 34' x 34' house and a 12'x 22' garage on property located at 495 California St. N.W. A public hearing was held at the regular meeting of the Planning Commission on Tuesday, April 15, 1997, at which time there was no one present objecting to the request. FINDINGS OF FACT 1. 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, April 15, 1997. The proposal is in conformance with the requirements of a conditional use permit. RECOMMENDATION It is the recommendation of the Planning Commission that the Conditional Use Permit for the purpose designated is granted based on the findings set forth above noting staff recommendations that a land survey is submitted, a review of structures by the building inspector, submit a copy of the moving permit the building permit, and the house is to be completed by October 1, 1997. Respectfully submitted, Dean Wood. Chairman Hutchinson Planning Commission City Center Parks & Recreation Police Services 111 Hassan Street SE 900 Harrington Street S IV 10 Franklin Street SVV llurchinson..NN 55350 -2522 Hutchinson, MN 55350 -3097 Hulchinson.11 5150 -2414 r320i 587 -5151 1320) 587 -2975 (320) 587 -2242 Fax f 4201 234 -4240 Fax (320) 234 -4240 � — 1 Fax r 320) 587 -6427 - Printed on recycled paper - Map RESOLUTION NO. 10832 RESOLUTION GRANTING CONDITIONAL USE PERMIT UNDER SECTION 8.05 OF ZONING ORDINANCE NO. 464 REQUESTED BY MR. ARTHUR DODGE TO MOVE A 34'X 34' HOUSE AND 12'X 22' GARAGE ON PROPERTY LOCATED AT 495 CALIFORNIA ST. N.W. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MN: L Mr. Arthur Dodge, has made application to the City Council for a Conditional Use Permit under Section 8.05 of Zoning Ordinance No. 464 to move a 34' x 34' house and 12' x 22' (264 sq. ft.) garage on property located at 495 California St. N.W. with the following legal description: LEGAL DESCRIPTION: Lot 5, Block 1, California Second 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 traffic conditions, and the effect on values of properties in the surrounding area and the effect of the use on the Comprehensive Plan. 3. The Council has determined that the proposed use will not be detrimental to the health, safety, or general welfare of the community nor will it cause serious traffic congestion nor hazards, nor will it seriously depreciate surrounding property values, and the proposed use is in harmony with the general purpose and intent of the Zoning Ordinance and the Comprehensive Plan. The application for Conditional Use Permit for the purpose designated is granted based on the findings set forth above subject to staff recommendations noting that a land survey is submitted, a review of structures by the building inspector is required, submit at copy of the moving permit with the building permit and the house is to be completed by October 1, 1997. Adopted by the City Council this 22nd day of April, 1997. ATTEST: Gary D. Plotz City Administrator 0 Marlin D. Torgerson Mayor C; DATE: April 18, 1997 1 11 ; a 2 08 1, WIT NV 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 March 27, 1997, Mr. Don Hantge submitted an application for a conditional use permit to construct a 24' x 76' addition to present building with a 8' setback on the northwest comer of the property located at 234 -4th Ave. N.W. A public hearing was held at the regular meeting of the Planning Commission on Tuesday, April 15, 1997, at which time there was no one present objecting to the request. FINDINGS OF FACT 1. 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, April 15, 1997. 3. The proposal is in conformance with the requirements of a conditional use permit. RECOMMENDATION It is the recommendation of the Planning Commission that the Conditional Use Permit for the purpose designated is granted based on the findings set forth above. Respectfully submitted, Dean Wood, Chairman Hutchinson Planning Commission City Center Parks & Recreation Police Services 111 Hassan Street SE 900 Harrington .Street SW 10 Franklin Street SW lluichinson. SRV 55350 -25J2 Hutchinson, SIN 55350 -3 09 7 Hutchinson..JIN 55350 -2464 3201 587.5151 (320) 587 -2975 r320) 587 -2242 Fax i 7201 234-4240 Fax (320) 234 -4240 � � � 111 Fax 1320) 587 -6427 Printed on recycled paper - J1 50 ,. 24' o`I Nr-,W ADP rrlc*l I M 0 lv�-o LAJ?AWAY ��� C. M E U M TO: Mayor and City Council FROM: John P. Rodeberg, Director of Engineering/Public Works RE: Consideration of CUP for Tri-County Water Conditioning DATE: April 17, 1997 Since the staff recommendation was not followed by the Planning Commission in regards to the above Conditional Use Permit (CUP), I feel it is important to discuss the background and reasoning of our recommendation. ♦ We would have a hard time approving a variance or conditional use permit that allows a primary structure to be located 8' from a right -of -way on a low volume residential street. It does not appear to make sense to allow this type of setback on a major trunk highway with almost 15,000 vehicles a day. No zone allows less than a 25' setback, and this zone recommends 30 feet.. ♦ Although Mn/DOT has no jurisdiction over this matter until a project is specifically scheduled and funded, it is highly likely that a portion of this property will need to be acquired to address highway widening, safe sloping and/or reconstruction of infrastructure. ♦ If required to be purchased, the state will also be required to pay for relocation and other expenses that could greatly increase their cost. Although the state, not the City, would need to cover these costs, these costs would be assumed by the taxpayer. ♦ The estimated cost of the proposed reconstruction of TH 7/22, and the design problems associated with the slope in the area and the abundance of close properties, have caused this project to slip substantially in the state improvement schedule. By potentially increasing the cost of the project, and complicating design issues, we will be potentially delaying construction. ♦ We have been working hard to maintain the viability of the Trunk Highway system in Hutchinson, and have reviewed limiting accesses and increasing setbacks to protect safety and capacity. Although I understand that there is a need for the property to expand, the State and City are accepting a risk associated with allowing a major variance from recommended setbacks. Their is little, if any, risk to the property owner since the state will both purchase the property and pay for relocation. • City Center Parks & Recreation Police Services III Hassan Street SE 900 Harrington Street SW 10 Franklin Street SW Hutchinson, MN 55350 -2522 Hutchinson, MN 553504097 Hutchinson, MN 55350 -2464 (320,)587 -5151 (320) 587 -2975 (320) 587 -2242 Fax (320) 234 -4240 Fax (320) 234 -4240 Fax (320) 587 -6427 - Printed on recycled paper - M O R A N D RESOLUTION NO. 10833 RESOLUTION GRANTING CONDITIONAL USE PERMIT UNDER SECTION 8.05 OF ZONING ORDINANCE NO. 464 • REQUESTED BY MR. DONALD HANTGE, TRI COUNTY WATER, TO CONSTRUCT AN ADDITION TO PRESENT BUILDING LOCATED IN THE C -5 DISTRICT AT 234 - 4TH AVE. N.W. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MN: 1. Mr. Donald Hantge, has made application to the City Council for a Conditional Use Permit under Section 8.05 of Zoning Ordinance No. 464 to construct an addition to the present building located in the C -5 District at 234 - 4th Ave. N.W. with the following legal description: LEGAL DESCRIPTION: Lot Seven (7) in Block Twenty-five (25) in the Townsite of Hutchinson, North Half, and that part of Lot Six (6) in Block Twenty-five (25) in the Townsite of Hutchinson, North Half, described as follows, to -wit: Commencing at the Southwest comer of said Lot 6; thence Easterly along the South line of said Lot 6 a distance of 61 feet; thence Northerly on a line parallel with the West line of said Lot 6 a distance of approximately 154 feet to the North line of said Lot 6; thence Southwesterly along the North line of said Lot 6 a distance of approximately 69 feet to the Northwest comer of said Lot 6; thence Southerly along the West line of said Lot 6 to the point of commencement. 2. The City Council has considered the recommendation of the Planning Commission and i the effect of the proposed use on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and the effect of the use on the Comprehensive Plan. 3. The Council has determined that the proposed use will not be detrimental to the health, safety, or general welfare of the community nor will it cause serious traffic congestion nor hazards, nor will it seriously depreciate surrounding property values, and the proposed use is in harmony with the general purpose and intent of the Zoning Ordinance and the Comprehensive Plan. The application for Conditional Use Permit for the purpose designated is granted based on the findings set forth above. Adopted by the City Council this 22nd day of April, 1997. ATTEST: Gary D. Plotz City Administrator • Marlin D. Torgerson [� Mayor / —�' c 0 DATE: April 18, 1997 K•J.69u]q:7:U_l[i� • : u_Il � u ► • . • ►11 • ;) . .: • ► ; t t. u�' : .:•1 • • •• •: � • .ul • � 1 J 1. 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 January 7, 1997, Hutchinson Planning Staff requested an amendment to the City Zoning Ordinance #464, Section 8.05, 8.06 and 9 regarding lot dimensions for two family dwelling units as follows: Section 8.05 R -2 District DIMENSIONAL REGULATIONS: (2) Required Lot Dimensions (feet): Use Minimum Lot Width Minimum Lot Depth Single- family residence 70 120 connected to public Corner lot: 90 sanitary sewer. at building line Two - family residence. 4&5 120 Max. ground coverage 25 35% 80 • CitvCenter 111 Hassan Street .SE llatchinson.SIN 55350 -2522 (320) 587.5151 Fax (320) 234.4 240 Parks & Recreation 900 llarrnn,gton .Street SIV Hutchinson. SIN 55350 -3097 (320) 587 - 2975 Fax (320) 234.4240 - Printed on recycled paper - Police Services 10 Franklin .Street SIV Hutchinson, .NN 55350.2464 (320) 587 -2 Fax(320)587 -6427 Section 8.06 R-3 District DIMENSIONAL REGULATIONS (1) Minimum Lot Area and Dimensions: Use Minimum Lot Minimum Minimum R -3 Area per Lot Width Lot Depth Single - Family Dwelling Unit 8,400 7,200 Single - family 7,200 60 120 residence 5,289 Corner: 80 – Two - family 5 - 12 - 89 88 120 residence 5,000 GeFmer:198 Max. ground 80 coverage 35% – 4,200 Four or more 4,200 None None family building (4/93) 4,000 Townhouses 4,200 None None (4/93) 0 BR /DU Does not count area set aside for surface water ponding or wetland protection. SECTION 9: TABULATION OF DIMENSIONAL REQUIREMENTS FOR ZONING DISTRICTS Minimum Lot Area per Dwelling Unit: 0 i • — /e, Zoning Districts R -1 R -2 R -3 R-4 R-5 Single - Family 10,400 8,400 7,200 – – Two- Family 6 5,289 – – Max. ground coverage 5,000 5,000 35% 4-, 6-, 8- Family – 4,200 4,000 Townhouses 4,200 4,000 Apartment Building – – 0 BR /DU 2,500' 1 BR/DU 3,000' 2 BR/DU 3 3 BR/DU 3.500' 0 i • — /e, 0 E Elderly Apartments Zoning Districts R -1 R -2 R -3 R-4 Efficiency Lot Width: 1,000 1 BR/DU Single 80/110 1,500 60/80 2 BR /DU 100 Double 2,000 88M98 0 Mobile Homes — — Determined by 4-6 -8 setbacks " These minimum lot areas may be adjusted as follows: (1) for each parking space within or under an apartment building, subtract 400 square feet from the total minimum lot area, (2) for each unit with a balcony of not less than 45 square feet, subtract 200 square feet form the total minimum lot area. Minimum Lot Widths: FINDINGS OF FACT L All procedural requirements for amendments to the Ordinance have been complied with. 2. Notice was published in the Hutchinson Leader on Thursday, April 3, 1997. The hearing was held at the regular meeting of the Planning Commission on Tuesday, April 15. 1997, at which time there was no one present objecting to the request. RECOMMENDATION It is the recommendation of the Planning Commission that the aforementioned request to amend the Ordinance be approved as set forth above. Respectfully submitted, Dean Wood, Chairman Hutchinson Planning Commission � le, Zoning Districts R -1 R -2 R -3 R-4 R -5 Lot Width: Single 80/110 70/90 60/80 None 100 Double 19SM25 80 88M98 0 115 Townhouse None 4-6 -8 None Apartment _ Lot Depth: 130 Single 120 120 None 50 Double 120 120 65 Townhouse None 4-6-8 None Apartment _ FINDINGS OF FACT L All procedural requirements for amendments to the Ordinance have been complied with. 2. Notice was published in the Hutchinson Leader on Thursday, April 3, 1997. The hearing was held at the regular meeting of the Planning Commission on Tuesday, April 15. 1997, at which time there was no one present objecting to the request. RECOMMENDATION It is the recommendation of the Planning Commission that the aforementioned request to amend the Ordinance be approved as set forth above. Respectfully submitted, Dean Wood, Chairman Hutchinson Planning Commission � le, C TO: Mayor and City Council FROM: Bonnie Baumetz, Planning and Zoning SUBJECT: CONSIDERATION OF REQUEST BY CROW RIVER SPECIAL EDUCATION COOPERATIVE TO APPROVE A 6 MONTH EXTENSION OF CONDITIONAL USE PERMIT LOCATED AT BETHANY BAPTIST CHURCH LOCATED AT 800 GROVE ST. • DATE: April 18, 1997 The Planning Commission recommends approval of the request for a six month extension. City Center 111 Hassan Street SE Hutchinson, MN 55350 -2522 (320) 587 -5151 Fax (310) 2344240 Parks & Recreation 900 Harrington Street SW Hutchinson, MN 55350 -3097 (320) 587 -2975 Fax (320) 2344240 Police Sen4ces — 10 Franklin Street SW Hutchinson, MN 55350 -2464 (320) 587 -2242 Fax (320) 587 -6427 Printed on recycled paper - CROW RIVER SPECIAL EDUCATION COOPERATIVE JOINT POWERS DISTRICT 937 30 Glen Street North Hutchinson, Minnesota 55350 Phone(320)587 -6790 March 27, 1997 Bonnie Baumetz, Planning Secretary/Coordinator City of Hutchinson Building/Planning/Zoning Department 111 Hassan Street Southeast Hutchinson, Minnesota 55350 Dear Ms. Baumetz, A request is hereby made for a six (6) month extension of our Conditional Use Permit, Resolution #10418. The requested extension of our current permit until October 1997 would give us time to consider other options for our program's future. Sincerely, Peter A. Malmberg, Ed.D. Director of Special Education cs � - -S' C DATE: March 23, 1995 TO: FROM • . . ; : r • •]T • ►P r • .: ; u: L4C•IrI�YLM:!•]:)'[�l;�i ; \/ 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 February 27, 1995, Peter Malmberg, Director of Special Education Services Crow River Cooperative, • submitted an application for a conditional use permit to change the use from church to school located at Bethany Baptist Church, 800 Grove St. A public hearing was held at the regular meeting of the Planning Commission on Tuesday, March 21, 1995, at which time there was no one present objecting to the request. FINDINGS OF FACT 1. The required application was submitted and the appropriate fee paid. 2. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on Thursday, March 9, 1995. The proposal is in conformance with the requirements of a conditional use permit. RECOMMENDATION It is the recommendation of the Planning Commission that the aforementioned request for a conditional use permit be granted based on the findings set forth above subject to the conditional use permit be reviewed in 2 years if the school were to continue at the same location. Resp ctfully submi d, 7 1�2�r� Clint Gruett, Chairman Hutchinson Planning Commission is City Center 111 Hassan Street SE Hutchinson, MN 55350 -2522 (612) 587 -5151 Fax (612) 234 -4240 Parks & Recreation 900 Harrington Street SW Hutchinson, MN 55350 -3097 (612) 587 -2975 GIl Fax(612)234 -4240 - Printed on recycled paper - Police Services 10 Franklin Street SW Hutchinson, MN55350 -2464 (612) 587 -2242 Fax (612) 587 -6427 TO: Mayor and City Council FROM: Bonnie Baumetz, Planning and Zoning SUBJECT: CONSIDERATION OF REQUEST FOR LOT SPLIT REQUESTED BY GEORGE AND SHIRLEY FIELD TO SPLIT PROPERTY LOCATED AT 667 BLUFF ST. 11 MWIG DATE: April 18, 1997 The Planning Commission recommends approval of the request. • City Center 111 Hassan Street .S& Hutchinson, III 55350 -2522 (320) 587 -15151 P'ax X3201 234-4240 Parks & Recreation 900 Harrington Street SIV Hutchinson, AIN 55350 -3097 (320)5X7 -2975 Fax 020) 234 -4240 Police Services 10 Franklin .Street .SW Hulchinson,SlN 55350.2464 _ (320) 587 -2242 ( Fax(320)587 -6427 Printed on recycled paper - G� / F 4/ /�� C / I ItA0.• I A.� \ IlM A p te Los I lima � . old or LF-- Hu ual: ., V to tb p • � � - � In vlcnsi rsya &TATL OF - �� Call OF hd , ta. Ea. sac. v l . / I. u _ - I CJ aul:nae I W r STATF. OF 111 IPIA Fr 14 nn I id RI V 3 a coukfl m j s "I I LL / W _ IQ �-' J .� This plot J I I nlmesset., villa Isl w•e � I cj � i - -- L • tZ b 9e11equ w, liy I > I •[ , I hcO lry a M1arobv � b \ -7T "I 1: %, ,IZ v ; L- 96.10 c it I 6 61 rn I I o O O 96.100 1 96.10 104.61 c 0 OD `• 6 ;' •'� i \ � 10 � m r. Il. r, 0 W W C Sul 4 Eli e ►.� DATE: April 18, 1997 TO: Mayor and City Council FROM: Bonnie Baumetz, Planning and Zoning SUBJECT: CONSIDERATION OF REQUEST BY DAVID ALQUIST FOR CONSTRUCTION OF DOG KENNEL TO BE LOCATED IN SECTION 29 OF HUTCHINSON TWP. 0 The Planning Commission recommends approval of the request. ON Center 111 Hasson Street SE Hutchinson. AIN 55350 -2522 320) 587 -5151 Fax 1320) 234 -4240 Printed on recycled paper - Parks & Recreation Police Sen4ces 900 Harrington Street SIV 10 Franklin Street SIV Hutchinson. AIN 55350 -3097 Hutchinson, AIN 55350 -2464 (320)587.2975 / 1320) 587 -2242 Fax (320) 234 -4240 h/- —� Fax (320) 587 -6427 HUTCHINSON I �(Jemee, TOWNS H'P 117 NORTH COOE•2 IRA 29 4CERER .°:• 'atiul[u •- nu -tl it •• a.n .Y• •. • 0 f� ti ii PMLTER M LA a'rIt L • -�••a °� '� 1 • t =ma em■tr 1 �l `( .a u.r • n a [o LO r e •a / 1' / wet [. w b LO UIS ' l 2 3 r . Y. • Rnww f-� eu. � pr e°(� , a'•CNAL3 A 43 CPL I . .e•■ _ -m Tx AD! PL s ' t �R ACU'h2 y f T'DDO rei L.Y.Y/MI ■ 0![Rna. T•7O N .� BORO f w.NAt n[ 5 aE eR� Ty j n I _AC R [.. /S , LAKC ! J a CIA 3 NTKA � • _ rNEa J 1761 ytN �• At _ r Lt. RI ' AMA YVo 1` [k ( M■ . •F n•I WELL •N ®� ft-HARD ° I a �, • . N•tN K IF E x MIr[K 1 COMA an •� M b { ` . . 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M..C�• aJ NSU �` i i i Apr -07 -97 03:40P MN Tacthnoingy -RWF FTI Proposed 30 :.4 6' F ar House CO I8 507- 637 -5929 Proposed Set E'ac.k 50' *forth : -30' ctr Road Eas- ro ST 70 (L k I t I I I I I I I I N T P.03 Z/-2( MINUTES HUTCHIN u C OMMISSION R YOUR /NFOR� ter.. • The meeting was called to order by Chairman Dean Wood at 5:30 p.m. with the following members present: Bill Arndt, Dave Westlund, Bill Craig, and Jim Haugen. Absent: Glenn Matejka Also present: Jim Marka, Director of Building, Planning, and Zoning; Bonnie Baumetz, Planning and Zoning; and Barry Anderson, City Attorney. ►19 . a) CONSIDERATION OF MINUTES OF REGULAR MEETING DATED MARCH 18, 1997 Mr. Arndt made a motion to approve the minutes dated March 18, 1997, seconded by Mr. Craig the motion was carried unanimously. 12001 1 R Lei; I IL :4 11! a) CONSIDERATION OF ANNEXATION OF 1.3 ACRES LOCATED ON THE HOERNEMANN ESTATES PROPERTY REQUESTED BY MR. FRANK REESE ARCHITECT FOR PRAIRIE SENIOR COTTAGES Chairman Dean Wood opened the hearing at 5:42 with the reading of publication #5013 as published in the Hutchinson Leader on Thursday, April 3, and Tuesday, April 8, 1997. The request is for the purpose of consideration of annexation of 1.3 acres located on the Hoememann Estates property requested by Mr. Frank Reese architect for Prairie Senior Cottages. Bonnie Baumetz explained the request for annexation. She also explained Prairie Senior Cottages will be coming back later for conditional use permit and rezoning. • Frank Reese, architect for Prairie Senior Cottages described the design of the home. This is a transitional home designed to fit in the residential area. It is a one story, twin, wood home. The area used as a commons area could later be converted into a garage. The home has a sprinkler system and motion detectors. Jennifer Isaacson explained Prairie Senior Cottages' organization. They will have 16 residents and 20 employees. There will be an enclosed court yard, and the building is secured. There will be at least two staff persons on duty at all times. Mr. Haugen asked what licensing was involved. Ms. Isaacson said, currently there is no license, but the health staff is licensed and there will be a part-time registered nurse available. Mr. Craig asked if anyone could be a resident or is residency restricted to the Hutchinson area. Ms. Isaacson said people from other areas may be residents. Mr. Craig said there is a need for a facility of this type in the community. Mr. Don Hagen, 1280 Bradford Street, said he has no objections to the facility, but feels it may decrease value of land. He felt they should have been notified by mail. Mr. Bruce Hakes, 1279 Bradford Street. wanted to know why they weren't notified earlier. He felt the facility should be located on the end of the block by the Village Cooperative. Mr. Marka explained the area is zoned R -3, (multiple family residen) and Prairie Cottages will have to come back again for a conditional use permit, and rezoning from R -1 (single family residence) to • a R -3. _ Mr. Anderson, city attorney, explained the notification process for public hearings, and he stated this hearing is for annexation only. HUTCHINSON PLANNING COMMISSION MINUTES April 15, 1997 Mr. Craig made a motion to close the hearing, seconded by Mr. Arndt the hearing closed at 5:53 p.m. Mr. Craig made a motion to recommend approval with staff recommendations. Seconded by Mr. Haugen the motion canned unanimously. b) CONSIDERATION OF VARIANCE REQUESTED BY MR. DICK MCCLURE FOR THE REDUCTIOle OF FRONT/FUTURE SIDE YARD SETBACK TO 0' LOCATED AT 995 - 5TH AVE. S.E. Chairman Dean Wood opened the hearing at 5:31 with the reading of publication #5014 as published in the Hutchinson Leader on Thursday, April 3, 1997. The request is for the purpose of considering a request for a variance by Mr. Dick McClure to reduce the front/future side yard setback to 0' located at 995 -5th Ave. S.E. Mr. Marka explained the project He said because of planned street and bridge construction, staff recommends a variance. It will reduce infrastructure costs to vacate the right of way. Mr. McClure will access the property from 5th Avenue S.E., and he will align the curb cut per the City's request. Mr. Westlund made a motion to dose the hearing, seconded by Mr. Arndt the hearing closed at 5:33 p.m. Mr. Westund made a motion to recommend approval with staff recommendations. Seconded by Mr. Haugen the motion carried unanimously. C) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY MR. ARTHUR DODGE TO MOVE A 34'X34' HOUSE AND A 12' X 22' GARAGE ON PROPERTY LOCATED AT 495 CALIFORNIA ST. N.W. Chairman Dean Wood opened the hearing at 6:05 with the reading of publication # 5015 as published in the Hutchinson Leader on Thursday, April 3, 1997. The request is for the purpose of considering a conditional use permit requested by Mr. Arthur Dodge to move a 34'x34' house, and a 12'x22' garage on property located at California St-N.W. Ms. Baumetz explained Mr. Dodge needed a conditional use permit to move a home and garage onto his lot at 495 California Street N.W. Planning staff had recommended approval with the following requirements: a land survey is submitted, the building inspector review strictures, 400 sq. R minimum garage on a foundation within one year, submit a moving permit and building permit and house be completed by October 1, 1997. Mr. Craig expressed concerns regarding the requirement of a 400 sq. ft. garage. He also asked if they wou be rebuilding the fireplace. Mrs. Dodge said they would rebuild with a liner for a gas fireplace. Mr. Dodge had a drawing showing how he would expand the 12'X22' garage into a double garage. Mr. Westlund asked if it would be financial burden to build on garage. Mr. Dodge assured he would build within a year. Mr. Arndt asked if it was financially feasible to move garage rather than build. Mrs. Dodge said it will cost $1000.00 to move the garage. If they don't move the garage, they will have to pay to dispose of the garage. Mr. Arndt moved to close the hearing, seconded by Mr. Craig the hearing closed the 6:15 p.m. Mr. Arndt made a motion to recommend approval of the request with staff recommendations. Seconded by Mr. Westiund, Mr. Craig opposed the requirement of a 400 sq. ft. garage within one year. Mr. Marka asked for clarification of the motion. Mr. Anderson, city attorney said staff could recommend a garage be built within one year, but his office would not be able to enforce it. He felt the issue was the marketability of the property and should be dealt with now. Mr. Westlund moved to reconsider the motion. Mr. Arndt seconded the motion the vote was unanimous to reconsider the motion. Mr. Arndt made a motion to recommend approval of staff recommendation excluding #3 (recommend minimum 400 sq. ft. garage on a foundation within one year). Seconded by Mr. Craig motion the carried unanimously. d) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY MR. DON HANTGE, T_RI COUNTY WATER, TO CONSTRUCT AN ADDITION TO PRESENT BUILDING LOCATED IN TH� C -5 DISTRICT AT 234 - 4TH AVE. N.W. Chairman Dean Wood opened hearing at 6:26 p.m. The reading of publication #5016 as published in the Hutchinson Leader on Thursday, April 3, 1997. The request is for the purpose of considering HUTCHINSON PLANNING COMMISSION MINUTES April 15, 1997 a conditional use permit requested by Mr. Don Hantge, Tri County Water. to construct an addition to the present building located in the C -5 District at 325 -3rd Avenue N.W. • Mr. Marka explained the request stating the concern was the 8' setback and what is going to happen to Hwy. 7. He said the staff recommended approval of an addition with a 30' setback from the property line along Hwy. 7 and Third Avenue N.E. Mr. Hantge said the average setback of neighboring property is 57' from the curb. His building would be setback 53' from the curb. Mr. Westlund had viewed the property and thought it was in line with the other neighboring property. Ms. Baumetz said she had talked to Mr. Rice from MNdot and he said their main concern would be parking along and access to the highway. Mr. Hantge said they are going to access the addition from their main building. Mr. Anderson explained the request is a land use condition rather than a Hwy. 7 issue. Mr. Craig made a motion to close the hearing, seconded by Mr. Arndt the hearing closed at 6:36 p.m. Mr. Arndt made a motion to recommend approval of the request by Mr. Hantge for a 8' setback instead of the recommended 30' on the northwest comer of the property to construct a 24' x 76' addition to the present building. Seconded by Mr. Craig the motion carried unanimously. e) CONSIDERATION OF AMENDMENT TO ZONING ORDINANCE REGARDING LOT DIMENSIONS IN THE R -2 DISTRICT Chairman Wood opened the hearing at 6:40 with the reading of publication #5017 as published in The Hutchinson Leader on Thursday, April 3, 1997. The request is for the purpose of the consideration to amend the City Code Chapter 11, Zoning Ordinance #464, Sections 8.05, 8.06 and 9, regarding lot dimensions for two family dwelling units. • Ms.Baumetz explained proposed changes in lot widths and areas. Mr. Craig made a motion to close the hearing, seconded by Mr. Haugen the hearing closed at 6:43 p.m. Mr. Craig made a motion to recommend approval of changes. The motion carried unanimously. 4. OLD BUSINESS a) REVIEW DRAFT VERBIAGE OF COMPREHENSIVE PLAN Mr. Marka asked the commissioners to review the plan as a layman, and bring the plan back next month with their comments. 5. NEW BUSINESS a) CONSIDERATION OF REQUEST BY CROW RIVER SPECIAL EDUCATION COOPERATIVE TO APPROVE A SIX -MONTH EXTENSION OF CONDITIONAL USE PERMIT AT BETHANY BAPTIST CHURCH LOCATED AT 800 GROVE ST Ms. Baumetz explained that Crow River Cooperative's present permit is expiring. They are not sure they will continue to use the church at 800 Grove street, but an extension would give them time to consider other options. Mr. Craig made a motion to close the hearing, seconded by Mr. Arndt hearing closed at 6:50 p.m.. Mr. Craig made a motion to recommend approval with staff recommendations. The motion carried unanimously. • b) CONSIDERATION OF LOT SPLIT REQUESTED BY GEORGE AND SHIRLEY FIELD TO SPLIT PROPERTY LOCATED AT 667 BLUFF ST. Mr. Marka explained the history of this lot, noting the assessments and sanitary sewer and water connection fees. HUTCHINSON PLANNING COMMISSION MINUTES April 15, 1997 - Mr. Westlund made a motion to close the hearing, seconded by Mr. Haugen the hearing closed at 6:58 p.m. Motion was made to recommend approval of the request with staff recommendations. Motion was seconded and carried unanimously • C) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY DAVID AHLQUIST TO CONSTRUCT A DOG KENNEL LOCATED IN SECTION 29, HUTCHINSON TOWNSHIP. Ms. Baumetz explained the requested dog kennel is in Hutchinson township 1/4 mile from city limits. Mr. Craig recommended approval of the request for a conditional use permit to construct a dog kennel. Seconded by Mr. Haugen the motion passed unanimously. d) Mr. Wood asked planning commission members to consider a member for vice chairman. Action was delayed until next month. e) Staff was asked to contact Mr. Doug Rettke regarding his unpainted building at 184 -4th Avenue N.W. 6. COMMUNICATION FROM STAFF Mr. Marka welcomed Mr. Haugen to the commission Ms. Baumetz said the commission will now be a six - member board. Utilities will no longer represented, but the electrical and gas departments are represented at the planning staff meetings. ADJOURNMENT There being no further business the meeting adjourned at 7:07 p.m. is • PUBLICATION NO. 5019 NOTICE OF HEARING ON PROPOSED IMPROVEMENT • LETTING NO. b PROJECT NOS. 97 -02, 97 -13, 97 -14, 97 -15, 97.18, 97 -19, 97 -21, 97 -22, 97.23, 97.24 TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council of Hutchinson, Minnesota, will meet in the Council Chambers of the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, MN, at 6:00 P.M. on the 22nd day of April, 1997, to consider the making of an improvement of: Project No. 97 -02 South Grade Road SW East of Otter Lake by construction of shoulder widening, grading, gravel base, curb and gutter, bituminous base, bituminous wear course and appurtenances; and Project No. 97 -13 Sidewalk Improvements - City Wide Project No. 97 -14 Municipal Parking Lot "E" in Block 50, North %2 City between Washington Ave W and 1 st Ave NW; and Project No. 97 -15 Century Avenue SE by construction of turn lane; and Project No. 97 -18 Ontario Street SE between 4th Ave SE and 5th Ave SE by construction of watermain, storm sewer and appurtenances; and • Project No. 97 -19 Kouba Parkway from T.H. 7 to Luce Line Trail by construction of storm sewer, grading, gravel base, curb and gutter, bituminous base, bituminous wear course and appurtenances, and Project No. 97 -21 4th Avenue SE from Main Street to Adams Street by reconstruction of watermain, construction of grading, gravel base, curb and gutter, bituminous base, bituminous wear course and appurtenances; and Project No. 97 -22 Alley Improvements in Block 50 South' /2 City between Hassan Street SE and Main Street S, and Fourth Avenue SE and Fifth Avenue SE and also in Block 4 of Bonniwell's First Addition between Division Avenue SW and Milwaukee Ave SW and Brown Street SW and Grove Street SW by construction of grading, gravel base, curb and gutter, bituminous base, bituminous wear course and appurtenances; and Project No. 97 -23 Hidden Circle SW, south of Roberts Road by construction of bituminous wear course and appurtenances; and Project No. 97 -24 Morningside Drive NE north of Hilltop Drive NE by construction of bituminous wear course and appurtenances. • pursuant to Minnesota Statutes, Sections 429.011 to 429.111. The area proposed to be assessed for such improvement is the benefitted property, for which property owners shall receive mailed notice. PUBLICATION NO. 5019 -PAGE 2 NOTICE OF HEARING ON PROPOSED IMPROVEMENT LETTING NO. 6, PROJECT NOS. 97 -02, 97 -13, 97 -14, 97.15, 97 -18, 97 -19, 97 -21, 97 -22, 97 -23, 97.24 The estimated City Cost of said improvement is $381,740.00, with an Assessable Cost of $86,856.00, for the total estimated cost of $468,596.00. Such persons as desire to be heard with reference to the proposed improvement will be heard at this meeting. Dated: April 8th, 1997. City Admim trator PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS HEARING, WHETHER YOU ARE FOR OR AGAINST THE PROJECT, IN ORDER THAT YOUR COUNCIL CAN BE BETTER INFORMED OF A TRUE REPRESENTATION OF OPINION. PUBLISHED IN THE HUTCHINSON LEADER ON THURSDAY, APRILIOTH, 1997 AND THURSDAY, APRIL 17TH, 1997. C M E M O R A N D U M 0 TO: Mayor and City Council FROM: John P. Rodeberg, Director of Engineering/Public Works RE: PUBLIC HEARING and Resolutions for Letting No. 6/1997 DATE: April 17, 1997 Attached please find a description of each of the projects included in the Public Hearing, and a spreadsheet of estimated costs. I will have a more detailed list of expected costs and assessments for Tuesday's meeting. • City Center 111 Hassan Street SE Hutchinson, MN 55350 -2522 (320) 587 -5151 Fax (320) 2344240 Parks & Recreation 900 Harrington Street S W Hutchinson, ;NN 55350 -3097 (320) 587 -2975 Fax(320)234 -4240 Primed on recycled paper - Police Services 10 Franklin Street SW Hutchinson, MN 55350 -2464 i (320) 587 -2242 Fax (320) 587 -6427 • LETTING 4o 6 /1997 1 1 m€lk � 97 -02 South Grade Road Street widening and curb & gutter Construction cost assessed, engineering (East of Otter Lake) construction. Bid last year with high cost. not assessed, per agreement with City. Re -Bid in this project. 97 -14 Municipal Parking Lot E Completion of parking lot in area of Parking Lot, TIF funds and Dairy Queen current 2 -Way Communications building agreement 97 -15 Century Avenue Turn Lane Adds right turn lane to west -bound No assessments Century Avenue at Main Street. Includes reconfiguration of Hospital Parking Lot. 97 -18 Ontario Street Utilities Reconfigures and updates watermain and Water fund replaces watermain, storm storm sewer adjacent to 5th Avenue SE sewer bonded cost to City Bridge and roadway project. 97 -19 Kouba Parkway Completes street improvement from TH 7 Per policy, adjacent properties assessed (Luce Line to TH 7) to Luce Line Trail, adjacent to Cenex and for frontage over 150'. Remainder of All Seasons. Entrance to West River Park. costs City bonded. 97 -21 4th Avenue SE Replaces failing bituminous surface Some assessments probably, but minimal (Main Street/TH 15 to Adams between existing curb lines, repairs and assessable frontage on street (mostly Street/TH 22) reconfigures watermain. side - yards). Remainder City bonded. 97 -22 Alley Improvements Paving existing alley. Resident's will 100% assessed. (Block 4/Bonniwell's Add. & choose "yes or no ". No City policy would Block 50 /S '% City require this work. 97 -23 Hidden Circle Wear Course paving on existing street. 100% assessed. Deferred from last year. Required to protect existing street investment. 97 -24 Morningside Court Wear Course paving on existing street. 100% assessed. Deferred from last year. Required to protect existing street investment City of Hutchinson * 1997 1LETTING NO. 6 40 Project Cost Estimates Cost Split Number.: Construction k�sEx enses . -Total - - - ,= "- Assessed -= City, Bond _ - 1 aterfftste =leas = - - ,.ti.�- -Total $18,000 $4,320 $22,320 $18,000 $4,320 - 20 $27,500 $6,600 $34,100 $34,100 X100 9 $34,000 $33,000 $8,160 $42,160 $40,920 $42,160 $40,920' 0 +920 9. 8 9 $52,000 $12,480 $64,480 $16,120 $48,360 480 $150,0001 $12,000 $36,000 $2,880 $186,000 $14,880 $20,000 $14,880 $166,000' 6000 4 $7,200 $1,728 $7,200- $1,728 -$340 900 , a 81816 $8,928 $8,928 7 $8,928 $8,928,,;:�,"; ', ^x$86 $260 840 $40 920 wi:�.:;d °A $34100 8;928 TOTAL ; "�.kS422 716 0 * Will complete project design and go out for bids if approved ♦ Assessment Hearing to be held after bids, prior to award of contract ♦ Actual final assessment costs to be calculated for assessment hearing, based on the actual project costs. ♦ Interest rate will be determined by rate that city receives for the project bonds. ► Full payment without interest by October 1 st ► Full payment with interest (from October 1st) by November 15th ► After November 15th, the assessments are certified to tax rolls ► Assessment on Tax Roll, 10 years with interest, Equal Principal ► Deferment available for property owners, meeting income 0 guidelines, who are either over 65 years old or disabled. 0 Project No. 97 -02 South Grade Road (East of Otter Lake) ► Originally proposed for 1996 construction. Prices came in too high ► 4 homes in area. Have requested curb & gutter and shoulder widening. ► Width of shoulder reduced from 1996 proposal to help reduce cost. ► Sodding and seeding also removed from contract to reduce cost. ► City has agreed to pay for engineering costs due to previous assessments for street reconstruction. 3,000 - 4,000 per lot ► Due to small project size, individual bid items may be hogher than for larger projects. 0 April 22, 1997 ❖ 6:00 p.m. • April 22, 1997 ❖ 6:00 p.m. ► Project includes street and storm sewer improvements, including curb and gutter. ► Project needed due to high volume of commercial and park traffic in area. ► Properties assessed would include Cenex and All Seasons. ► City would pay for first 150' of the assessment, as per assessment policy for corner lots. 0 Estimated Assessments Estimated Project Cost: $55,000 - 65 Estimated Cost/Front Foot: Estimated City Share: Estimated Assessment, Per Parcel: $73 - 85/Front Foot $22,000 - 25 $16 - 19,750 0 • • •� • U• _ $ :rf,u_ ► Project includes watermain reconstruction and relocation, new water services (where necessary), and street reconstruction (most curb & gutter to remain). ► City pays for: All new watermain, ex� for service replacement. Most services will be field verified. * Street assessment for all parcels previously assessed for full street assessments. Street oversizing cost (extra width and depth). P. Assessments would include: New /replacement water service lines Street assessment for previously unassessed properties LORUM . Water Service: $775 - 850 /parcel (Standard 1" copper service) • Street Assessment: $35 - 42 /front foot $2,300 - 2,800 for typical 66' wide parcel April 22, 1997 + 6:00 p.m. n u Foll I= Wi Vi I Block 4Bonniwell's Addition (From Milwaukee to Division, East of Grove) Block 50, South 1 /2 City (From 4th Ave. SE to 5th Ave. SE, East of Main) ► Projects includes paving alley, 13' wide, with inverted crown for drainage ► Bituminous would extend to right -of -way at existing driveways ► Project is discretionary at the direction of the property owners 0 Total Project Cost Cost per Front Foot $12 - 1400 $ 9.00 - $10.75/Front Foot $600 - $700 /per Typical 66' Wide Lot Block 50 has additional drainage and grading work that will increase cost to higher end of range. April 22, 1997 ❖ 6:00 p.m. I ' I lop ! ro MU W-. U I � • _.� ► Project includes wear course paving of existing streets ► Public Hearings held on projects last year, with projects being delayed due to additional construction expected. ► Integrity of the street is being reduced as base course ages. ► Wear course needs to be constructed Ll u< '� Hidden Circle $ 8 - 9 $ 685 - 760 per lot (12 total) Morningside Drive $ 8,200 - 9 $ 685 - 760 per lot (12 total *) * Each of the 12 adjacent lots are split into multiple units. Final calculations are proposed to be based actual cost (including expenses) per lot, divided by the number of condo units. April 22, 1997 :* 6:00 p.m. i RESOLUTION NO. 10834 RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS LETTING NO. 6 PROJECT NOS. 97-02, 97 -13, 97.14, 97 -15, 97 -18, 97 -19, 97 -21, 97 -22, 97.23, 97 -24 WHEREAS, a resolution of the City Council adopted the 8th day of April, 1997, fixed a date for a Council Hearing on the improvement of: Project No. 97 -02 South Grade Road SW East of Otter Lake by construction of shoulder widening, grading, gravel base, curb and gutter, bituminous base, bituminous wear course and appurtenances; and Project No. 97 -13 Sidewalk Improvements - City Wide Project No. 97 -14 Municipal Parking Lot "E" in Block 50, North 1 h City between Washington Ave W and 1st Ave NW; and Project No. 97 -15 Century Avenue SE by construction of turn lane; and Project No. 97 -18 Ontario Street SE between 4th Ave SE and 5th Ave SE by construction of watermain, storm sewer and appurtenances; and Project No. 97 -19 Kouba Parkway from T.H. 7 to Luce Line Trail by construction of storm sewer, grading, gravel base, curb and gutter, bituminous base, bituminous wear course and appurtenances, and Project No. 97 -21 4th Avenue SE from Main Street to Adams Street by reconstruction of watermain, construction of grading, gravel base, curb and gutter, bituminous base, bituminous wear course and appurtenances; and Project No. 97 -22 Alley Improvements in Block 50 South 'k City between Hassan Street SE and Main Street S, and Fourth Avenue SE and Fifth Avenue SE and also in Block 4 of Bonniwell's First Addition between Division Avenue SW and Milwaukee Ave SW and Brown Street SW and Grove Street SW by construction of grading, gravel base, curb and gutter, bituminous base, bituminous wear course and appurtenances; and Project No. 97 -23 Hidden Circle SW, south of Roberts Road by construction of bituminous wear course and appurtenances; and Project No. 97 -24 Morningside Drive NE north of Hilltop Drive NE by construction of bituminous wear course and appurtenances. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such improvement is hereby ordered as proposed in the resolution adopted the 8th day of April, 1997. 2. John P. Rodeberg is hereby designated as the Engineer for this improvement. He shall prepare plans and specifications for the making of such improvement. Adopted by the Council this 22nd day of April, 1997. • City Administrator Mayor RESOLUTION NO. 10835 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS LETTING NO. 6 PROJECT NOS. 97 -02, 97 -13, 97.14, 97 -15, 97 -18, 97 -19, 97.21, 97 -22, 97.23, 97 -24 WHEREAS, the Director of Engineering has prepared plans and specifications for the improvement of: Project No. 97 -02 South Grade Road SW East of Otter Lake by construction of shoulder widening, grading, gravel base, curb and gutter, bituminous base, bituminous wear course and appurtenances; and Project No. 97.13 Sidewalk Improvements - City Wide Project No. 97 -14 Municipal Parking Lot °E° in Block 50, North 1 h City between Washington Ave W and 1st Ave NW; and Project No. 97 -15 Century Avenue SE by construction of turn lane; and Project No. 97 -18 Ontario Street SE between 4th Ave SE and 5th Ave SE by construction of watermain, storm sewer and appurtenances; and Project No. 97 -19 Rouba Parkway from T.H. 7 to Luce Line Trail by construction of storm sewer, grading, gravel base, curb and gutter, bituminous base, bituminous wear course • and appurtenances, and Project No. 97 -21 4th Avenue SE from Main Street to Adams Street by reconstruction of watermain, construction of grading, gravel base, curb and gutter, bituminous base, bituminous wear course and appurtenances; and Project No. 97 -22 Alley Improvements in Block 50 South 'i City between Hassan Street SE and Main Street S, and Fourth Avenue SE and Fifth Avenue SE and also in Block 4 of Bonniwell's First Addition between Division Avenue SW and Milwaukee Ave SW and Brown Street SW and Grove Street SW by construction of grading, gravel base, curb and gutter, bituminous base, bituminous wear course and appurtenances; and Project No. 97 -23 Hidden Circle SW, south of Roberts Road by construction of bituminous wear course and appurtenances; and Project No. 97 -24 Morningside Drive NE north of Hilltop Drive NE by construction of bituminous wear course and appurtenances. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MIIJNESOTA: 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. • 2. The Director of Engineering shall prepare and cause to be inserted in the official newspaper, an advertisement for bids upon the making of such improvements under such approved plans and specifications. The advertisement shall be published for three weeks, shall specify the work to be done, shall state that bids will be ,s A' RESOLUTION NO. 10835 LETTING NO. UPROJECT NOS. 97 -02, 97.13, 97.14, 97.15, 97 -18, 97 -19, 97 -21, 97 -12, 97 -23, 97 -24 PAGE publicly opened at 2:00 pm on Monday, May 19th, 1997, in the Council Chambers of the Hutchinson City Center by the City Administrator and/or Director of Engineering, will then be tabulated, and will be considered by the Council on June 10th, 1997, in the Council Chambers of the Hutchinson City Center, Hutchinson, Minnesota. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Director of Engineering and accompanied by cash deposit, cashier's check, bid bond or certified check payable to the City of Hutchinson for 5 percent of the amount of such bid. Adopted by the Hutchinson City Council this 22nd day of April, 1997. Mayor City Administrator 0 To: Mayor Torgerson, Council Members, and City Administrator Date: March 21, 1997 Two items have been approved by the HCDC Board of Directors as recommendations to the City Council, Item 2 — C-D A few months ago the City Council was requested by ADC Solitra to pay for the removal of dirt from Lot 9 and to pay for the work done in Fifth Avenue on the storm sewer. The Council referred the • request to HCDC. After several meetings between City Staff, HCDC members, and ADC Sofrtra, it became obvious that there was a much bigger need. A recommendation has been passed by the HCDC Finance Team and approved by the HCDC Board of Directors. It is recommended that the City approve up to a maximum of $70,000 from Tax Increment Capture on ADC Solitra's expansion for storm sewer and land preparation. The storm sewer will eliminate the retention pond on the north side of ADC Solitra's property making it available for parking. With the present expansion and expected employment, ADC Solitra will need every square foot of unoccupied property for parking. The County Assessor has projected the taxes as a result of the expansion. Estimates indicate that the net capture will be approximately $126,000 as calculated on the attached sheet. As always, the City's. Financial Consultant should confirm the calculation. John Rodeberg will provide the details on the project at the Council Meeting. On behalf of HCDC Board of Directors, Dick Lennes • Executive Director 7 - Solitra Phase II Tax Increment Projection tif/soiitra2 Taken from the information received from County Assessors office 12/16/96 Note: Using the exisiting tax increment district expiring in 2005 Existing tax: $7,000.00 Based on: Projected tax: $32,800.00 Potential Capture $25,800.00 1997 Project Completion 1998 Appraised at full value 1999 $25,800.00 2000 $25,800.00 2001 $25,800.00 2002 $25,800.00 2003 $25,800.00 2004 $25,800.00 2005 $25,800.00 Total Est. Capture $180,600.00 Less Admin. $18,060.00 Less LGA $18,060.00 Less Margin for Error $18,060.00 Net Projected Capture $126,420.00 30,000 sq. ft. Steel fcame/metal bldg. 5000 sq. ft. office Industrial Park /`TI' A � go I THE HUTCHINSON Z, LIGHT TRAFFIC ADVISORY BOARD MEMO To: Mayor and Council From: Light Traffic Advisory Board Subject: CONSIDERATION OF LIGHT TRAFFIC ADVISORY BOARD RECOMMENDATIONS FOR THE PROPOSED BIKE LANE STRIPING IMPROVEMENTS FOR 1997 Date: April 16, 1997 The Light Traffic Advisory Board is in support of the proposed Bike Lane Striping Improvements for 1997, to be located along: ♦ Dale Street from Juul Road to Linden Avenue ♦ Linden Avenue from Dale Street to Lynn Road ♦ Jefferson Street from Century Avenue to Washington Avenue is HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY • 111 Hassan St. SE Hutchinson, Minnesota 55350 f2r (320) 234 -4251 • (320) 234 -4235 • FAX: 320 - 234 -4240 EQUAL HOUSING OPPORTUNITY MEMORANDUM TO: Mayor and City Council �o( FROM: Jean Ward, HRA Executive Director MEMO RE: Small Cities Grant for Adams Street Neighborhood DATE: April 17, 1997 As you know, the City of Hutchinson has been awarded $567,210 for rehabilitation of thirty nine homes in the Adams Street Neighborhood. A training session was held by the Minnesota Department of Trade & Economic Development in March which was attended by HRA staff where we were informed of the numerous rules and regulations concerning program implementation. The proposed program requires that the following documents be approved by the City Council and submitted to DTED: 1. Anti- Displacement Policy 2. Grantee Summary Information Sheet 3. Administrative Contract between City of Hutchinson and HRA for administration of the Adams Street Rehab Project 4. Small Cities Development Program Grant Agreement between City of Hutchinson and Minnesota Department of Trade and Economic Development Also enclosed, please find a draft of the Adams Street Neighborhood Rehab Project procedural guide which was reviewed and preliminary approved at the April 15th HRA Board meeting. Final approval will take place after the Department of Trade and Economic Development acceptance of the procedural guide. For your information, a public notice of program environmental review and historical review will be published the last week of April or early part of May. The HRA has also met with homeowners in the project area on April 16 to explain the program and take pre - applications to determine eligibility. Applications will be taken for a sixty day period beginning April 16, 1997 at which time applications will be ranked based on the number of health and safety deficiencies present and date and time of application. n U t l-_�)' RESIDENTIAL ANTI - DISPLACEMENT AND RELOCATION ASSISTANCE PLAN • The City of Hutchinson will replace all occupied and vacant occupiable lowimoderate- income dwelling units demolished or converted to a use other than as low /moderate- income housing in connection with an activity assisted with funds provided under the Housing and Community Development Act of 1974, as amended, as described in 24 CFR, Part 570.488(c)(1). All replacement housing will be provided within three years after the commencement of the demolition or conversion. Before entering into a contract committing the City of Hutchinson to provide funds for an activity that will directly result in such demolition or conversion, the City of Hutchinson will make public and submit to the Minnesota Department of Trade and Economic Development the following information in writing: 1. A description of the proposed assisted activity. 2. The location on a map and number of dwelling units by size (number of bedrooms) that will be demolished or converted to a use other than as low /moderate- income dwelling units as a direct result of the assisted activities. 3. A time schedule for the commencement and completion of the demolition or conversion. 4. The location on a map and the number of dwelling units by size (number of bedrooms) that will be provided as replacement dwelling units. If such data is not available at the time of the general submission, the City of Hutchinson will identify the general location on an area map and the approximate number of dwelling units by size and provide information identifying the specific location and number of dwelling units by size as soon as it is available. 5. The source of funding and a time schedule for the provision of replacement dwelling units. 6. The basis for concluding that each replacement dwelling unit will remain a lowimoderate income dwelling unit for at least 10 years from the date of initial occupancy. 7. Information demonstrating that any proposed replacement of dwelling units (e.g., a two - bedroom unit with two one - bedroom units) is consistent with the housing needs of low- and moderate - income households in the jurisdiction. A. The City of Hutchinson may request the Minnesota Department of Trade and Economic Development to recommend that the U.S. Department of Housing and Urban Development approve an exception to required replacement housing if there is an adequate local supply of vacant low /moderate- income dwelling units in standard condition. Exceptions will be reviewed on a case -by -case basis as described in 24 CFR, Part 570.488(c)(1)(B). B. The City of Hutchinson will provide relocation assistance as described in CFR, Part • 570.488(c)(2), to another use in connection with an assisted activity. C. Consistent with the goals and objectives of activities assisted under the Act, the City of Hutchinson will take the following steps to minimize the displacement of persons from their • homes: 1. Planning utility shut -offs for times most convenient to residents and business owners. 2. Provide information and referral services to individuals who must temporarily leave their homes or businesses. 3. Informing landlords of the need to minimize displacement and to inform tenants of their intent to minimize displacement. 4. Requiring landlords to pay tenant out -of- pocket expenses for the period of time in which a unit is not habitable. D. Definitions for the purposes of this plan are as follows A `low /moderate income dwelling unit" is a unit with a market rent, including utility costs, that does not exceed the applicable fair market rent for existing housing and moderate rehabilitation as established under the Section 8 Existing Housing Program. A `Vacant livable dwelling unit" is a vacant unit that is in standard condition; or in substandard condition, suitable for rehabilitation; or in dilapidated condition and occupied less than a year from the date of the Grantee Agreement. A "livable dwelling unit" is a unit that is in standard condition or has been raised to a standard condition from a substandard condition, suitable for rehabilitation. A "standard condition dwelling unit" is a well -built unit with adequate space for persons living there. There are no major defects in the structure and only minor maintenance is required. Such dwellings will have the following characteristics - reliable roofs, sound wells and foundations, adequate and stable floors, walls and ceilings, surfaces and wood works that are not seriously damaged nor have paint deterioration, sound windows and doors, adequate heating, plumbing and electrical systems which don't present safety hazards, adequate insulation for local climatic conditions, and is in compliance with local building and housing codes. A "substandard condition dwelling unit, suitable for rehabilitation" will show a lot of deferred maintenance with permanent damage to structural items. Conditions contributing to substandard dwelling, including but are not limited to sagging, cracked, rotted, or leaking roofs, walls, foundations, ceilings, floors, doors, and windows, deteriorated surfaces and woodwork, unreliable heating, plumbing, or electrical systems which present safety hazards or inadequate insulation. The cost of rehabilitating the unit to a standard condition should not exceed the market value of the dwelling. • RESOLUTION OF ADOPTION OF RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION ASSISTANCE PLAN Be it resolved that the City of Hutchinson hereby adopts the aforementioned Plan and all the conditions/provisions contained within the Plan covering the City of Hutchinson. I hereby certify that this resolution was adopted by the City Council of the City of Hutchinson on SIGNED: Signature Title 0 WITNESSED: Signature Date Date Title • • • Grantee Summary Information Sheet Small Cities Development Program State of Minnesota Trade & — ECOII01111C Develo pment Bumnt 6 Co ®wry Dnelopmm! Grantee: C by of Hn +r•hi n , n n Grant Number: All emntees must complete secuons 1 -6. Grantees whose projects will be administered in whole or to pan by other entities must complete section 7, I. PROJECT DIRECTOR 2. AUTHORIZED OFFICLALIEN"VIRONNIE:NTAL CERTIFYING OFFICER Jean Ward Marlin Torgenson HRA Executive Director Tide Ma or W binsnn Housing F Redevelopment Author reu. 1 H s S o m ass Sae¢ Ad dfei. Street suer Adhev Hutchinson MN 55350 Hutchinson MN 55350 aI. S Zyeom 3 234 -4235 cr state 320 587 -3072 Lpe P!ROrc Arta Code \carper Ea m,u Ph Area Cade �urtEer Eaunvan Enter the name and address of Project Director. B Project Director Enter the name and address of the individual designated as is not an employee of the grantee, but is an employee of a separate authorized official on the grantee's Resolution of Sponsorship. implementing agency, please complete section 7. This individual will also certify compliance with environmental taws and regulations. 3. FINANCIAL. OFFICER 4. FH/EO OFFICER Kenneth Merrill Mary Chelin .arts Finance Director N. HRA Administrative Assistant ld City of Hu chi n Tde H utchinson R Apn e A ar 111 Hassan Street 111 Hassan Street SI MGcs Mitch i n son $aec AddRa Gry Sue Zp rode 320 234 -4207 City $zee 0 Catle 20 234 -4251 Ppaw<. Ana Code \um Eaevm Ppoae: Nea Code Nurb Eaemm� Enter the name and address of the Financial Officer. Enter the time and address of the person designated as FHEO/CEO Officer, 5. LABOR STANDARDS OFFICER 6. ENVIRONMENTAL COORDLNATOR Bill Grasava e 1.ae Title C.O S nt rWe Cmi at Go.ernm�. Mercy 1225 La Salle Ave Sam AMrtss Svm Addrea Minna lis MN 55403 Cm sire zry cane ct" we zp ctd 612 340 -9742 Plwrc: Arcs Cade \ EEavvwe Plme. Arta Code NullC Fsewm Enter the name and address of the person designated as Labor Enter name and address of individual designated to coordintate the Standards Officer, Environmental Review. See 0.e'r Side : N ...aa ngvmeni or Tr aM P . [k.slagrerc 0 7. CSIPLENIEtiTr\G AGEVCS' iother than Grantee) Hutchinson Hominct & Redevelopment Authori IIT"Hassan Street Hutc:rinson hIN 55350 3�;, -4251 zmCw M. Ma code N.. E E.icnnw Enter name and address of implementing agency if other than grantee. _• 1Rl ♦L�sw Depunmsn al Trade fed �x nc.ebpnes ADMINISTRATIVE CONTRACT BY AND BETWEEN CITY OF HUTCHINSON, MINNESOTA AND HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF HUTCHINSON THIS CONTRACT for Administrative Services is between the City of Hutchinson, MN hereinafter referred to as the "City" and the Housing and Redevelopment Authority In and For the City of Hutchinson, Minnesota, hereinafter referred to as the "HRA ". WITNESSETH: In consideration of the mutual convenience and agreements contained herein, the City and the HRA agree as follows: I. The term of this contract is three (3) years commencing on March 10, 1997. II. The HRA agrees to act as the administrative agent for the City of Hutchinson to implement the City's Adams Street Neighborhood Housing Rehabilitation Program funded through the Small Cities Development Program, Ill. The HRA will receive financial reimbursement which includes general administrative and program activity fees associated with the grant delivery functions from the City of Hutchinson's Small Cities Development Program funds. W. As the administering agent for the above described grant, the HRA agrees to perform all tasks enumerated below in a manner which will meet or exceed the terms and conditions imposed upon the City in the Small Cities Development Program Grant Agreement dated the 19th of February, 1997, copies of which are attached as Exhibit A. A. Citizen Participation. Comply with all State and Federal participation requirements. B. Compliance with Federal Regulations. Ensure that the following Federal acts or regulations are complied with: 1. Title VI of the Civil Rights Act if 1964 (P. L. 88 -352) which provides that no person in the United States shall on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. 2. Title VIII of the Civil Rights Act of 1968 (P.L. 90 -284), known as the Fair Housing Act of 1968, which provides that it is the policy of the United States to provide, within constitutional limitations, for fair housing throughout the United States and prohibits any person from discrimination in the sale or rental of housing, the financing of housing, or the provision of brokerage services, including in any way making unavailable or denying a dwelling to any person because of race, color, religion, sex or national origin. E y. — �, 3. Executive Order 11063, as amended by Executive Order 12259, which prohibits discrimination because of race, color, religion (creed), sex, or national , origin in the sale, leasing, rental, or other disposition of residential property and related facilities (including land to be developed for residential use) or in the use or occupancy thereof, if such property and related facilities are among other things, provided in whole or in part, with the aid of loans, advances, grants, or contributions agreed to be made by the Federal Government. 4. Section 109 of the Housing and Community Development Act of 1974, as amended, which provides that no person in the United States shall on the grounds of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds provided under the Act. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 or with respect to otherwise qualified handicapped individuals as provided in Section 504 of the Rehabilitation Act of 1973 shall also apply to any such program activity. 5. Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and implementing regulations (24 CFR Part 42 and 24 CFR 570.602 (a)). The National Environmental Policy Act of 1969. 7. Section 3 of the Housing and Urban Development Act of 1968 which requires that to the greatest extent feasible, opportunities for tra and employment be given to lower income persons residing within the unit of local government in which project is located and that contracts for work in connection with the project be awarded to eligible business concerns which are located in owned in substantial part by persons residing within the unit of local government. 8. Title IV of the Lead -Based Paint Poisoning Prevention Act, as amended (42 U.S.C. Section 4831). 9. All parts of Title I of the Housing and Community Development Act of 1974, as amended, which have not been cited previously as well as with other applicable State and Federal funds under this part. 10. The Minnesota Government Practices Act, Chapter 11. including but not limited to Section 13.31. 12. The regulations, reporting, and recwrdkeeping requirements as stated in the "Program Manual' as supplements provided by the Grantor. Grantee hereby assigns to the State of Minnesota any and all claims for overcharges as to goods and/or services provided in connections with the contract resulting form antitrust violations which arise under the antitrust laws of the State .of Minnesota. • C. Project Planning. Coordinate the preparation of plans, specifications, contacts, budgets, and other agreements in a manner consistent with applicable State and Federal laws and regulations for all project activities. D. Implementation. The HRA will implement programs authorized under the Small Cities Development Program Grant within the respective limitations of the grant monies provided and/or in accordance with State and Federal requirements. 1. Rehabilitation Program: Develop program guidelines for housing rehabilitation and implement them in accordance with Federal and State Standards. This would include, but not be limiter], to determination of eligibility, dwelling unit inspection, rehabilitation work write -up, assistance to property owners in obtaining bids, inspections during construction, and certification of completion for contractor payoff. E. Coordination of Other Rehabilitation Programs within the Project Area. The HRA will coordinate other applicable rehabilitation programs in the project area such as the MHFA Deferred. Revolving and Accessibility, Home Improvement, HOME Rental Rehabilitation and Energy Loan Programs; RD Section 504 Rehabilitation Programs; Heartland Community Agency's Weatherization Programs; and Hutchinson Utilities Commission's Energy Conservation Programs. F. Compliance with Equal Opportunity Regulations. Ensure that compliance with Section 3 of the Housing and Urban Development Act of 1968, Federal Equal Employment Opportunity Act and Executive Orders, and Civil Rights Acts of 1964 is maintained. Also responsible for all Fair housing and Equal Opportunity recordkeepmg requirements by the State of Minnesota. G. Financial Recordkeeping and Control. Keep complete and accurate records of all claims and disbursements in accordance with the following procedures: The HRA will examine each claim and verify that the work has been done and/or materials actually provided for the project. 2. Requisitions for the checks will be prepared by the HRA and submitted to the City Finance Director for payment. All checks will by issued by the City. 4. The HRA will submit a voucher and supporting documentation to the City Finance Director for review who will obtain proper signatures and submit requisitions to the State. V. The City and the HRA mutually agree that a mortgage shall be executed in the name of the City of Hutchinson as mortgagee for each loan of monies provided under the Small Cities Development Program to individual property owners for rehabilitation purposes. IN regard to such mortgages and assignments, the HRA shall prepare all documents and obtain all necessary • signatures required for proper execution of such documents and file a secured interest with the McLeod Countv Recorder's Office. V1. For the purposes of this contract, the HRA shall be deemed an independent contractor and not an employee of the City. Any and all employees of the HRA or other persons who engages in the performance of any work or services required by the HRA under this contract, shall not be considered employees of the City and any and all claims that may or might arise on behalf of said employees or other persons as a consequence of any act or admission on the part of said employees or the HRA shall in no way be the obligation or responsibility of the City. VII The HRA will subcontract with Mid - Minnesota for Inspection Services and Mr. Bill Grasavage for technical assistance and enviromental review services necessary for implementation of the grant program. VIII. The HRA specifically agrees to comply with the requirements of 24 CFR 135.20 and to provide such copies of said regulations as may be necessary for the information of parties to contracts as required to contain the Section III clause as set forth in 24 CFR 135.20. IX. Any alteration, variation, modification, or waiver of the provisions of this contract shall be valid only after it has been provided in writing, duly signed by both parties, and attached to the original of this contract. X. The waiver of any of the rights and/or remedies arising under the terms of this contract on any on occasion by either party hereto shall not constitute a waiver of any rights and/or remedies in respect to any subsequent breach or default of the terms of this contract. The rights and remedies provided or referred to under the terms of this agreement are cumulative and not mutuallv exclusive. XI. This contact shall constitute the entire agreement between the parties and shall supersede all prior or written negotiations. XII. The City shall have full access to all records relating to the performance of this agreement. XIH. In performing the provisions of this contract, the HRA agrees to comply with all Federal, State, or local laws and all applicable Hiles, regulations, or standards established by any agency of such governmental units which are now or hereafter promulgated. XFV. In consideration of the prompt and efficient carrying out of the above, the City agrees to reimburse the HRA, dollar for dollar, for its administrative and project related costs in carrying out the above activities up to an amount not to exceed the maximum allowable as specified by the State of Minnesota, Department of Trade and Economic Development, Community Development Division. During the term of the contract, said monies are to come solely from the General Administration and Rehabilitation Administration funds totally available for the administration for the City of Hutchinson's Small Cities Development Program Adams Street Neighborhood Housing Rehabilitation Program. Accurate records of administrative costs shall be kept by the HRA and billings shall be made at such times as are convenient to implement the City's requisition of funds from the State of Minnesota. For the purposes of this contract, administrative and project related costs are defined as follows: A. Salary costs actually incurred by the HRA for time expended in all phases of the —• Project. B. Mileage, supplies, training, single audit act requirements, and publication costs. C. Proportionate share of allowable overhead expenses figured on a time expanded basis according to the HRA's approved indirect cost allocation upon adoption of such plan by the HRA Board. D. Costs incurred by the attendance at applicable Small Cities Development conferences within the term of this contract, including registration fees and travel expenses. Conference attending shall be for the purpose of gaining additional information on community development and regulations and program implementation. XV. Should any of the above provisions be subsequently determined by a court of competent jurisdiction to be in violation of anv Federal or State law or to be otherwise invalid, both parties agree that only those provisions so adjudged shall be invalid and that the remainder of this contract shall remain in full force and effect. XVI. ANTITRUST. Contractor (HRA) hereby assigns to the State of Minnesota any and all claims for overcharges as to goods and/or services provided in connection with this contract resulting form antitrust violations which arise under the antitrust laws of the United States and the antitrust laws of the State of Minnesota. XVII. The City reserves the right to terminate this contract if the HRA inexcusably fails to perform any of the provisions hereof. Such termination shall occur thirty (30) days after receipt by the HRA of written notice specifying the grounds thereof, unless, prior to that date, the HRA has cured the alleged non - performance of the provisions of this contract. IN WITNESS WHERE OF, the parties here to have caused this contract to be duly executed. CITY OF HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY IN & FOR THE CITY OF HUTCHINSON, MN BY BY: MAYOR, CITY OF HUTCHINSON HRA CHAIRPERSON ATTEST: BY BY CITY ADMINISTRATOR HRA EXECUTIVE DIRECTOR \J STATE OF MINNESOTA • DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT BUSINESS AND COMMUNITY DEVELOPMENT DIVISION Small Cities Development Program Grant Agreement CDAP -96- 0262- 0 -FY97 This Agreement is made on February 19, 1997 between the State of Minnesota acting through the Department of Trade and Economic Development (hereinafter the Grantor) and the City of Hutchinson, I I 1 Hassan Street SE, Hutchinson, MN 55350 -2522 (hereinafter the Grantee). The State's authorized agent and contact person responsible for administration of this contract is William Atkins (or successor) of the Business and Community Development Division, of the Department of Trade and Economic Development. The Grantor has been allocated funds by the United States Department of Housing and Urban Development under the Community Development Block Grant Program. The Grantee has made application to the Grantor for a portion of the allocation for the purpose of conducting the project entitled Hutchinson Housing Rehabilitation Project in the manner described in Grantee's "APPLICATION," which is incorporated into this agreement by reference. In consideration of mutual promises set forth below, the parties agree as follows: The Grantor shall grant to the Grantee the total sum of FIVE HUNDRED SIXTY -SEVEN THOUSAND TWO HUNDRED TEN AND 00 /100 DOLLARS (S567,210), which shall be federal funds appropriated to the State of Minnesota under the Community Development Block Grant Program. The Grantee shall perform the activities that are proposed in the application and further are specified under special conditions during the period from February 19, 1997 through March 31, 1999, in accordance with all applicable provisions of Title 1 of the Housing and Community Development Act of 1974, as amended, its implementing regulations particularly federal statutes identified in Tide 24 of the Code of Federal Regulations, Part 570, "Implementation Manual" provided by Grantor and all other applicable state and federal laws. Grantee agrees to complete the project in accordance with the approved budget and within the time frames specified in the application and agreement. Any material change in the scope of the project, the budget or the completion date must be approved in writing by the Grantor. Funds made available pursuant to this agreement shall be used only for expenses incurred in performing and accomplishing such purposes and activities during the grant period described above. Notwithstanding all other provisions of this agreement, it is understood that any reduction or termination of Housing and Urban Development funds provided to the Grantor may result in a like reduction to the Grantee. Where provisions of the Grantee's application are inconsistent with other provisions of this agreement, the other provisions of this agreement shall take precedence over the provisions of the application. • r�' GENERAL CONDITIONS Accounting For all expenditures of funds made pursuant to this agreement, Grantee shall keep financial records, including • invoices, contracts, receipts, vouchers, and other documents sufficient to evidence in proper detail the nature and propriety of the expenditure. Accounting methods shall be in accordance with the Common Rule, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, published in the Federal Register on March 11, 1988, Volume 53, Number 48. $Ming. Grantee shall submit reports to Grantor in accordance with the reporting requirements set forth in Minnesota Rule 4300.3200. Grantee shall use the forms found in the Implementation Manual provided by the Grantor. P,vm n ish ursem .nt Schedule Grantor shall disburse funds to the Grantee pursuant to this agreement, based upon a payment request submitted by the Grantee and reviewed and approved by the Grantor. Payment requests shall be reviewed and processed on a weekly basis. The amount of grant funds requested by the Grantee must be equal to the amount of unpaid obligations minus any program income in the Grantee's possession at the time the payment request is submitted to the Grantor. Program Income When program income derived from SCDP funds exceeds $25,000 per report year, the entire amount must be used only for DTED approved activities, be reduced from draws, or returned to the State of Minnesota. Provision for Contracts and Suhcontracts Grantee shall include in any contract or subcontract, in addition to the provisions to define a sound and complete agreement, such provisions as to assure contractor and subcontractor compliance with applicable state and federal laws. Affirmative Action A municipality that receives State money for any reason is encouraged to prepare and implement an affirmative action plan for the employment of minority persons, women, and the disabled and submit the plan to the Commissioner of Human Rights. AntiinlSl. The Grantee hereby assigns to the State of Minnesota any and all claims for overcharges as to goods and/or services provided in connection with this contract resulting from antitrust violations which arise under the antitrust laws of the United States and the antitrust laws of the State of Minnesota. Termination If the Grantor finds that there has been a failure to comply with the provisions of this agreement, that reasonable progress has not been made, or that the purposes for which the funds were granted have not been or will not be fulfilled, the Grantor may take action to protect the interests of the State of Minnesota, including the refusal to disburse additional funds and requiring the return of all or part of the funds already disbursed. Audit and Inspection The Grantee shall comply with the requirements of the Single Audit Act Amendments of 1996 (P.L. 104 -156). Accounts and records related to the funds provided under this agreement shall be accessible to authorized representatives of the Grantor for purposes of e and audit. In addition, Grantee will give the U.S. General Accounting Office, the U.S. Department of Housing and Urban Development, State of Minnesota, Department of Trade and Economic Development, the Legislative Auditor, and State Auditor's Office, through any authorized representatives, access to and the right to examine all records, books, papers, and documents related to the grant. Amendments. Any amendment to this agreement shall be in writing, and shall be executed by either the same persons who 2 • executed the original agreement, their successors in office, or by those persons authorized by the Grantee through a formal •solution of its governing body. Other Provisions The Grantee shall comply with the Minnesota Government Data Practices Act, Chapter 13 and the Conflict of Interest provisions of Minnesota Statutes Sections 471.87471.88. Successors and Assignee . This agreement shall be binding upon any successors or assignees of the parties. • Grant Number: CDAP - 96-0262- 0-FY97 Project Title: Hutchinson Housing Rehabilitation Project • SPE . AI_ ONDITIONS 1. The following activities, goals, and budget costs were revised from the application during the review process. Modifications must be approved in writing by the Grantor: Federal /OB SCDP Other A ctivity p Tole CMOs Eunds Euuds 1QM1 LMI /4b Residential (Owner) Rehab. 39 $487,610 $157,294 $644,904 LMI/4b Residential (Owner) Admin. 39 54,600 0 54,600 /13 General Admin. 25.000 5"000 30"000 TOTAL $567,210 $162,294 $729,504 2. Grantee must maintain files documenting how each activity funded (except general administration), in whole or in part, with SCDP funds, meets one of the three federal objectives. The documentation must be as complete as possible and must be readily available to the Grantor throughout the life of the project. 3. The Grantee must maintain documentation that shows that professional services were procured in accordance with "The Common Rule." Professional services not procured in this manner are grant ineligible. 4. Services obtained from units of government such as HRA, RDC, or nonprofit organizations do not have to be procured by competitive negotiation, but contracts for these services must only be on a cost - reimbursement basis, accounted for in accordance with "The Common Rule." 5. Exemption to incur administrative costs for this grant under the National Environmental Policy Act of 1969 is hereby given. All other activities will require an environmental assessment as well as clearance of other conditions as dictated by specific activities of this grant. 6. The Grantee must comply with Minnesota Statutes, Section 290.9705 by either: A. Depositing with the State, eight percent of every payment made to non - Minnesota construction contractors, where the contract exceeds $100,000; or B. Receiving a waiver from this requirement from the Minnesota Department of Revenue. The Grantee must not use SCDP funds to pay any person for influencing or attempting to influence an officer or employee of a federal agency, a member of Congress, an officer or employee of Congress, or any employee of a member of Congress in connection with the awarding of any federal contract, the malting of a federal grant, the making of a federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. If the Grantee uses non - federal funds to conduct any of the aforementioned activities, the Grantee must complete and submit Standard Form LLL, "Disclosure Form to Report Lobbying." Further the Grantee must include the language of this provision in all contracts and subcontracts and all contractors and subcontractors must comply accordingly. 8. Owner - occupied housing rehabilitation administration has been awarded at an average per unit cost of • $1400 for 39 units. If the number of rehabilitation units accomplished is less than the unit goal, there must be a corresponding decrease in the rehabilitation administration cost. The Grantee must provide a drug -free workplace by notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited in the Grantee's workplace and specifying actions that will be taken against employees for violation of such prohibition. The Grantee must also establish a drug -free workplace awareness program to inform employees about the dangers of drug abuse, the availability of drug counseling and penalties for violations of the drug -free workplace policy. 10. The Grantee must adopt and enforce a policy to prohibit the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations (P.L. 101 -144, Section 519). 11. The Grantee must adopt, make public and certify that it is following a "residential antidisplacement and relocation assistance plan" in accordance with Section 104(d) of the Housing and Community Development Act of 1974, as amended, including a displacement minimization policy. 12. Grantee must submit the Community FHEO Summary Sheet, the Grantee Summary Information Sheet (GSIS), HUD Form 2880 (Disclosure) and a Fair Housing Plan of Action prior to undertaking grant activities. 13. Prior to beginning rehabilitation activities, Grantee must submit policies and procedures and forms to the Grantor for approval for owner -occupied housing rehabilitation. 14. Prior to beginning rehabilitation activities, Grantee must submit inspection reports, work write -ups and cost • estimates for the first residential owner rehabilitation project. 15. The Grantee must submit a copy of the administrative contract between the Grantee and implementing agency for general administration and rehabilitation administration. 16. Grantee must submit a plan for the use of program income earned from the Residential Owner- Occupied Rehabilitation Program. conttnctl2phutchn.con • The Grantor and Grantee acknowledge their assent to this agreement and agree to be bound by its terms through their signatures entered below. • =REF I have read and I agree to all of the above provisions of this agreement. •.. grj •` 0 The Honorebk Merlin Torgen n z F011111111111111F . . lumills Date ENCUMBERED: STATE OF MINNESOTA by and through the Department of Trade and Economic Development Department. of Trade and Economic Development. 0 0 � a• � �7iTriSif.�.3[i7:it:I Date Date Encumbered [Individual signing certifies that funds have been encumbered as required by Minnesota Statute 16A.] contredf2phuthcn. con Business and Community Development Application Part II — Forms package • Local Government Resolution (FP-21) ($CDP) _API)hcantNatne: (ir of H, �hincon RESOLUTION OF APPLICANT. Applicants must adopt and submit the following MsohniOa This msdWOO must be adapted prior to submission of the forum pMtdtag BE IT RESOLVED that the City of Hutghi WM u legal for Community DevelopMent Application to be submitted on P (s) �u1O0d is the Business and r 4 of and that the M�vor is hereby autborited to apply to the Department of Trade and Ec� rDevelo (71* e -v o�„tr of theC�i t� f Hutchinson Pmeat for funding of this Project on behalf BE [T FURTHER RESOLVED that the City of Hutchinson has legal authority w appl for financial asststaoce and the institutional, managerial, and } .ra ri B mancial capability to ensure adequate coosvuctioa, operation, maintenaO" and replacement of the Proposed Project for its design life. BE IT FURTHER RESOLVED that the City of Hutchinson has not inctmed any coats, has not entered into any wntwo agreements to purchase property. BE IT FURTHER RESOLVED thm � City of Hutchinson W not viohued any FedmL State, or lOcal laws • pertaining to d bribery, graft, kickbacks, ccllusioo, conflict of intareat or other Unlawful or txrrupt Practice. BE IT FURTHER RESOLVED thu upon approval Of its apP>ricauon by the wee, the Cit of Hutchinson �er Trim m agreement with the State of Minnesota for the above- referto ed 10" tiny certifies that it will comply with All M Project(s� Mo that the City of Hutchinson ppbcabk laws Mad regulations as stated in an contraet sgreemems and described oO the COZZIPLAZIM Section (FP -20) of the Business and Communury Development Application. NOW , THMUFOP BE IT RESOLVED that the � t ro� is hereby City such agreements as are necessary to implement the pro*t(s) on behalf Of th Y a uthorized to execute e aPPkUL I C E1" Y THAT the above tenhrpm was adopted by the Ci t CMM i 1 of the C i t of Hutchinson err s ryp+tn..q on M .ity Administrator 8/13 96 U DRAFT 4 -4 -97 CITY OF HUTCHINSON. MINNESOTA • HOMEOWNER HOUSING REHABILITATION PROGRAM PROCEDURAL GUIDE The City of Hutchinson through the rehabilitation program will provide assistance to eligible applicants for the rehabilitation of properties utilizing Small Cities Development Program funds. The methods of program distribution and eligibility criteria are incorporated in this procedural guide. There will be no discrimination of persons in the administration of the SCDP funds. No person or business will be denied services or not awarded a bid for project services due to their race, color, religion, sex national origin, handicap or familial status. The Hutchinson Housing and Redevelopment Authority, on behalf of the City of Hutchinson has been appointed Project Administrator. ELIGIBLE PROPERTIES SCDP funds will be used to improve properties that meet the following criteria: A. The property must be situated in the Adams Street Housing Rehabilitation Project Area. The specific project boundaries are shown in Appendix A of this procedural Guide. B. The property must be a homeowner occupied residential structure. C. The property to be improved must be a permanent structure. If the property consists of a mobile home, the mobile home must be permanently affixed to real property by means of a foundation of pier footings and the real property must meet the ownership requirements as listed below. D. The property must be determined feasible for rehabilitation. No property that meets the definition, herein, as dilapidated may be rehabilitated through SCDP funds. E. The property to be rehabilitated must be considered suitable for rehab under local definition. The definition of what the City considers to be rehabitable is shown below: Rehabilitation is not remodeling. Remodeling is for convenience or cosmetic purposes. Rehabilitation deals with, in order of priority: (1) health issues and safety issues and (2) energy conservation, as well as certain long -term preservation of structures such as siding, roofs and foundations. Certain types of rehabilitation can be viewed as lack of maintenance or deferred maintenance. Other types of rehabilitation needs can be viewed as items that wear out or • need replacements because of obsolescence. Rehabitable Building: A building is Rehabitable when it is structurally sound. To be rehabitable. a building should be vertically plumb within three degrees and shall have no significant rot on the majority of the floor joists, studs or rafters that are weight bearing. Foundations and basement walls shall not be deteriorated to the extent or so out of alignment that they do not adequately support the building and can not be corrected without complete replacement. Generally, if the improvement costs for a structure are 50% more than the County Assessor's Office market value, the dwelling may be deemed not suitable for rehabilitation. The City and the Housing and Redevelopment Authority, however, reserve the right to provide rehabilitation assistance under certain circumstances where improvements are in excess of 50 of market value. Such circumstances may include the following: • Additional costs to eliminate existing deficiencies that presently constitute an immediate threat to household health and safety. • Additional costs necessary to cover physical handicap accessibility improvements for existing occupants. 0 It should be understood, however, in no event will the total rehabilitation costs necessary to satisfactorily address the above circumstances(s) exceed 75% of the estimated market value of the structure. Examples of accessibility improvements could be the typical porch or back door, inside improvements including access from living room to an upstairs bedroom and/or bathroom, etc. In addition to the aforementioned 75 °% restriction, the City /HRA would be placing the following two restrictions as to the use of SCDP funds: 1. A cap or maximum rehabilitation cost for a single family home in the amount of $30,000 2. The structure, of course, would have to be rehabitable and not fall into the category of "dilapidated ". A dilapidated unit is beyond feasible repair. It is a substandard unit with serious defects, a dilapidated unit fails to meet a majority of local standards and rehabilitation is neither practical or economically feasible. F. The property must be occupied by low /moderate income households as defined herein upon completion of the improvements. G. Property that is rehabilitated under this program will meet the Generally accepted Community Standards inclusive of the Minnesota Energy Efficiency Standards. • H. No property located within a floodplain will be rehabilitated under this program. L No property may receive SCDP rehabilitation project funds if the property has real estate taxes due and payable. J. No property may receive SCDP rehabilitation project funds unless the building is insured. ELIGIBLE 1WROVEMENTS Improvements made with SCDP funds shall satisfy the following requirements: A. Health and safety needs and concerns within the housing units to be rehabilitated will always be considered the top priority for funding using SCDP funds. B. Each improvement must be a permanent general improvement. Permanent general improvements shall include alteration, renovation or repairs upon and in connection with existing structures, which correct defects and deficiencies in the property affecting directly the safety, habitability, energy consumption, or aesthetics of the property. C. Upon completion of the improvements, the structure must comply with the Generally accepted Community Standards. inclusive of the Minnesota Energy Efficiency Standards appended thereto and existing HUD Section 8 Housing Quality Standards. D. If the structure has been determined historically significant by the Minnesota Historical Society, plans for exterior improvements to the structure must be reviewed and commented on by the Minnesota Historical Society. Buildings participating in the program and constructed prior to 1950 will be evaluated in accordance with the guidelines received from the Minnesota Historical Society, E. Each improvement must be made in compliance with all applicable health, fire prevention, and building codes, provided, however, that no application shall be denied solely because the improvement will not bring such property into full compliance with these codes. F. No SCDP funds shall be used in whole or in part for the purpose of refinancing or paying off an existing indebtedness. All such funds must be used to finance improvements begun after application for such funds. INELIGIBLE COSTS The following list of items are examples of what can not be funded with SCDP funds as part of the rehabilitation program. Ineligible improvements include, but are not limited to: 1. Air conditioning: • • Central, new installation. • Room air conditioning. Landscaping. 3. Fireplaces. 4. New construction. 5. Wind generation devices. 6. Window/Door coverings: blinds, curtains, drapes, shades. Z Out buildings, including sheds, utility buildings, bams, silos, new garages. etc. S. Wood burning stoves. 9. Heat systems located outside the structure. 10. Recreational or entertainment facilities including swimming pools, tennis courts, saunas, decks and patios. 11. Assessments for public improvements. 12. Improvements begun before the date of the program application. 13. Other items deemed not appropriate to the program. ELIGIBLE RECIPIENTS A. The recipients must individually or in the aggregate have at least (1.) a life estate or (2) a one -third interest in the fee title or (3) a one -third interest as purchaser in a contract for deed with respect to the structure to be improved. B. All individuals having an ownership interest in such structure must join in the application. In the event of a life estate, at least one -third of the said parties must join in the application. C. The housing rehabilitation program is designed to be of 100 percent benefit to households of low to moderate incomes. This will be achieved by following the gross income limits as set by the Department of Housing and Urban Development for the Section 8 Existing Housing Program, The 1995 income limits as adjusted for family size are listed below. These hmits shall be adjusted periodically upon HUD notification of income revisions. Household Household Income 1 $23.600 2 $26,950 3 $30,300 4 $33,700 5 $36,350 6 $39,050 7 $41,750 8 $44,450 D. Eligible recipients for housing rehab must have household incomes that do not exceed the above HUD Section 8 income guidelines. • 0 E. Income for the purpose of this rehabilitation program shall be defined as gross annual income including salary, commissions, bonuses, interest, dividends, tips, capital gains or sale of securities, annuities, pensions, rental property income (adjusted as allowed by the • IRS), partnerships, estate or trust income, child support, alimony, social security, aid for families with dependent children and miscellaneous income. Gross annual income from self employment shall be deemed to be the net profit from said self employment, as • declared by the applicant in Schedule C, F or E, Part III, as appropriate, of the United States Internal Revenue Service Form 1040, or any other such schedule as may be hereafter promulgated, but including all depreciation as income. F. All income shall be verified in writing. The following examples listed below are considered acceptable. 1. An income verification sheet that is signed by a third party at the source of income. 2. The previous two years tax returns shall be used for those applicants who are self - employed or having variable incomes. 3. Signed third party verifications from banks, savings and loans, insurance companies, etc. G. There will be no asset limitation associated with the SCDP loans. H. No member of the governing body of the locality and no official, employee or agent of the local government or program administrator, who exercises policy, decision - making functions or responsibilities in connection with the planning and implementation of the Housing Rehabilitation Program shall directly or indirectly benefit from this program. 4 0 IMPROVEMENT PRIOR=S The main and foremost improvement priority for this rehabilitation program is directed to the health/safety of project residents. The priorities are as follows: Priority No. 1 Health and safety improvements are the primary emphasis of the rehabilitation efforts to be conducted in the project area. The improvements are risks to the occupants of a household. As such, they are mandatory requirements. These improvements are as follows in their sub - categorical ranking: 1. Fire detection/safe and obstructed egress 2. Electrical code violations 3. Surface impermeability to weather, water and rodents 4. Plumbing violations/deficiencies 5. Adequate and sanitary food preparation areas 6. Lead based paint abatement in a home built prior to 1978 with peeling or chipping paint, both interior and exterior, of households with children under the age of 6. (HUD 1996 Lead Based Paint Brochure, PIH 96 -2 will be distributed to all households participating in the program). 7. Accessibility modifications for physically handicapped household member(s). Priority No. 2 • Energy improvements are also a primary improvement to be conducted in conjunction with health and safety improvements. Improvement priorities are based upon the improvement's estimated energy cost savings per year that will be provided to the household after rehab. * 1. Furnace replacement 2. Attic insulation 3. Wall insulation 4. Storm doors 5. Storm Windows 6. Rim joist insulation 7. Door /window weather - stripping *Furnace replacement could, very well, be placed as a No. 1 Priority depending upon the nature and severity of the existing defects. If it is deemed to be a threat to health/safety of the housing occupants, it will receive a No. I Priority. Priority No. 3 Basic housing quality components are secondary improvements to be conducted after the health/safety and energy improvements are addressed. These improvements are generally deferred maintenance items and major improvements which will need attention to the immediate future, but which are functional at the present time. They include items such as the following: * 1. Roofing could be a No. 2 Priority depending upon the nature and severity of the project. 2. Painting J. Window replacement PROJECT FUNDING The City /HRA will not be approving applications from homeowners on a first come first served basis Rather, the HRA will be approving applications based upon a RATING SYSTEM which primarily focuses on HEALTH/SAFETY deficiencies associated with owner - occupant single family homes. Low to moderate income households just don't have the financial wherewithal to make costly and permanent type improvements. Based upon the results of the Community Development Survey as well as interest voiced by project area residents via telephone calls and "walk -ins' to City Hall, there is no doubt that the demand for rehab funds will exceed the availability of such funds. As a result, with the aforementioned three priorities in mind, the Citv /HRA has established a RATING SYSTEM. The rating system is based upon a • point scoring device which awards points determined by the number of "yes" responses answered by the homeowner on health/safety questionnaire. The questionnaire has twelve specific questions that will help homeowners to identify potential health/safety deficiencies in their home. Each "yes" response will be awarded one point, therefore, each application will be assigned a score of zero to twelve points. Applications will then be ranked first by score, then by date and time of application. Those applications having scores of twelve would be accepted for processing first, followed by ten, nine, etc., until SCDP funds are exhausted. The following questions have been devised for ranking purposes: 1. Do you need additional smoke detectors per City code? (One in each sleeping area, on each level and furnace room. If your furnace is in an unfinished basement, only one detector is needed in the basement.) Does your home need safe and unobstructed fire exists. All windows and doors should be operable and free from any blockage. Windows in sleeping areas should be of size to allow a fully suited fireman passage. 2. Do you have any knob and tube type wiring in your home? 3. Are you having trouble with your fuses blowing or is your electrical service under 100 amps and/or fuse serviced? 4. Do you need ground fault interrupter outlets? (Are required in all bathrooms, within six feet of kitchen sinks, in laundry area and in outside outlets. 5. Is your roof leaking? 6. Do you have any leaking water or sewer pipes and is your plumbing property vented? 7. Do you need to update/replace heating equipment so that it is free from cracks, and capable of providing adequate heat to all rooms used for living? 8. Is your furnace properly vented to the chimney and is there a six inch fresh air intake? 9. Is vour chimney in need of repair ? (i.e. cracking, obstructed or in need of a new liner) 10. Is your foundation showing signs of deterioration resulting in substantial settling or cracking? 11. Do you have children age six or under in the household, and is there evidence of interior or exterior chipped or peeling paint that may be lead based (Painting done prior to 1978). See enclosed lead based paint brochure for additional information. 12. Do modifications need to be made to your home for accessibility that will increase the ability of a physically handicapped person to function in the home setting? When applicant homeowners have been selected on the basis of the aforementioned RATING SYSTEM, the following levels of funding assistance will be utilized by the HRA: LEVEL NO. 1 - VERY LOW INCOME - 50% of Median Area Income or Less 100% Deferred SCDP Loan - Forgiven after 10 years. as long as home remains principal residence of the recipient. LEVEL NO, 2 - LOW INCOME - 50% - 65% of Median Area Income 80% Deferred SCDP` Loan 10 Year Term - 20% Owner Match* LEVEL NO, 3 - LOW INCOME - 65% - 80% of Median Area Income 70 Deferred SCDP Loan 10 Year Term - 30% Owner Match* Pertaining to all three levels, if recipient sells or vacates the home the repayment terms are as follows: 0 - I Years 100% Repayment 1 - 2 Years 90% Repayment 2 - 3 Years 80% Repayment 3 - 4 Years 70% Repayment 4 - 5 Years 60% Repayment 5 - 6 Years 50% Repayment 6 - 7 Years 40% Repayment 7 - 8 Years 30% Repayment 8 - 9 Years 20% Repayment 9 - 10 Years 10% Repayment 10 Years Forgiven * If applicant cannot obtain owner match, the HRA Board reserves the right to determine if the applicant may receive a 100% SCDP loan. The applicant will have to provide proof of not being able to obtain an owner match. HUD Section 8 Guidelines will be used to determine the LMI Status of the program applicants as follows (Income cannot exceed figure under each level according to family size): Family Size Level No. l Level No 2 Level No. 3 1 $14,750 $19,175 $23,600 2 $16,850 $21,900 $26,950 3 518,950 $24,625 $30,300 4 $21,050 $27,375 $33,700 5 $22,750 $29,550 $36,350 6 $24,400 $31,725 $39,050 7 $26,100 $33,925 $41,750 8+ $27,800 $36,125 $44,450 Non -SCDP financing shall be funds or financing received from private lenders, weatherization programs, MHFA rehabilitation loan program funds, community action agency funds, RD grant/loan funds, MHFA energy loan funds or any combination of these and other sources of financing or funding. The use of Non -SCDP financing will help promote cost effective use of SCDP funds. r Coordination of available "Program Funds" will be done by the HRA • 2. The decision as to which Non -SCDP funds may be available, will be based on each applicant's individual financial situation and the requirements of the Non -SCDP funding source. The owner must agree to have all Non -SCDP funds for the rehabilitation work deposited in an escrow account controlled by the project administrator for disbursements to the contractor when the work is satisfactorily completed. Withdrawals can be made only upon written authorization from both the property owner and the Project Administrator. REPAYMENT OF SCDP FUNDS 0 A. There shall be no penalties imposed by the City of Hutchinson for prepayment of either a Rehabilitation Loan or a Deferred loan/grant. B. SCDP Deferred Loan/Grants shall be secured by a repayment agreement. C. In the case of the deferred loan/grant, all persons who signed the application for a deferred toan/grant must enter into an agreement with the City of Hutchinson for repayment of the loan/grant. The agreement shall provide that: In the event that the improved property is sold, transferred or otherwise conveyed within ten years from the date upon which the application was approved, the recipient shall repay all or a portion of such SCDP deferred loan/grant in accordance with the schedule below: 1. Level No. I - Very Low Income - 100% Deferred Level No. 2 - Low Income - 80% Deferred - 20 1 /6 Owner Match - Prorated Level No. 3 - Low Income - 70% Deferred - 30% Owner Match - Prorated If recipient sells or vacates the home the repayment terms are as follows: • 0 - 1 Years 100% Repayment 1 - 2 Years 90% Repayment 2 - 3 Years 80% Repayment 3 - 4 Years 70% Repayment 4 - 5 Years 60% Repayment 5 - 6 Years 6 - 7 Years 7 - 8 Years 8 - 9 Years 9 - 10 Years 10 Years 50% Repayment 40% Repayment 30 1 /6 Repayment 20% Repayment 10% Repayment Forgiven 2. That deferred loan/grant funds due upon sale of the property prior to the official close -out of the grant shall be paid directly to City of Hutchinson_ to be used for further rehabilitation projects and shall be deducted from the draw down requests as required by DTED. — 3. That deferred loan/grant fiords due upon sale of property after the official close- out of the grant shall be paid directly to the City of Hutchinson. • 4. The repayment agreement shall be subordinate to funds provided by private lending institutions. 5. The repayment agreement shall be subordinate to SCDP rehabilitation loans. 6. That if the SCDP funds are used for purposes other than an eligible improvement upon an eligible property, or if the application is found to contain a material misstatement of fact, then the recipient of the deferred loan/grant shall be liable for 100 percent repayment of the deferred loan/grant. 7. That the recipient of a deferred loan/grant shall be required to notify the City of Hutchinson immediately upon the sale, transfer or conveyance of the improved property. 8. That if the recipient would change residence and the improved property would become rental property, then: a. The recipient would be obligated to pay the deferred loan/grant in full at that time, or b. The balance of the deferred loan/grant would then be considered as rehabilitation loan monies and a zero percent interest rate would then be applied to the entire amount of the new rehabilitation loan balance. The maturity date of original rehabilitation loan would remain the same. This will only be allowed if the tenant meets LMI qualifications. D. SCDP loans shall be secured by a mortgage. E. In the case of SCDP rehabilitation loan, the mortgage shall provide that: 1. In the event that the improved property is sold, transferred or otherwise conveyed within 10 years from the date upon which the application was approved, the recipient shall repay the remaining balance due as indicated by the loan term and repayment agreement. 2. In the event that the property ceases to be the recipient's principal place of residence and the improved property would become rental property, then: a. The recipient would be obligated to repay the rehabilitation loan in full at that time, or b. The balance of the rehabilitation loan would be subject to a zero percent _ interest rate which would be added to the recipient's monthly payments. • The maturity date of original rehabilitation loan would remain the same. This will only be allowed if the tenant meets the LMI requirements. • 3. That rehabilitation loan payments made prior to the official close -out of the grant program shall be paid directly to the City of Hutchinson, to be used for further rehabilitation projects and shall be deducted from the draw down requests as required by DIED. 4. That rehabilitation loan payments made after the official closeout of the grant program shall be paid directly to the City of Hutchinson. 5. That if SCDP funds are used for purposes other than an eligible improvement upon an eligible property, or if the application is found to contain a material misstatement of fact, then the recipient of the rehabilitation loan shall be liable for 100 percent repayment of the rehabilitation loan. 6. That the recipient of a rehabilitation loan shall be required to notify the City of Hutchinson upon the sale, transfer or conveyance of the improved property. MARKETING A. The program administrator, on behalf of the City of Hutchinson, will conduct outreach in the targeted area and will solicit applications for the Adams Street Neighborhood Housing is Rehabilitation Program utilizing the below listed methods as necessary and/or appropriate: 1. Issue press releases advertising community meetings on SCDP grant application both to local print and broadcast media. 2. Make direct mailing of program information to the homeowners in the target area, if necessary, to generate additional applicants. 3. Develop brochures and send them out in the billing statements of the local utility vendors. 4. Develop posters and post them in prominent areas in the community as well as distribution of brochures at commodity distribution sites. APPLICATION AND APPLICATION SELECTION A. Initial applications will be received over a 60 day period starting April 16, 1997. Applicants will be selected upon the eligibility guidelines as previously defined in this procedural guide. C. To facilitate the application and verification process for any firm applicant, the SCDP will accept documentation and verification forms from other agencies working with the same • applicant. Other agencies at this time are: L M FA 2. Heartland 3. Rural Development INSPECTION OF PROPERTY A. Once an applicant has been determined eligible for SCDP funds: Property inspection will be conducted by the HRA Housing Inspector. 2. The Housing Inspector will determine the work necessary to bring the property into compliance with: a. Generally Accepted Community Standards b. Minnesota Energy Efficiency Standards as is practical C. Other standards as required by the Grant Agreement 3. The Housing Inspector will then prepare a Scope of Work (work write -up) that will rectify violations to the housing standards, and local codes. Any ineligible cost that is done during the rehabilitation process shall be paid for by the owner, over and above what the SCDP funds are being used for. The Scope of Work shall contain the following: a. Instructions to the bidder b. Bid proposal C. Program warranties d. General conditions e. Special conditions f. Diagrams and layouts as appropriate or needed CITY REVIEW PROCEDURES A. Each individual rehabilitation project will be presented to the HRA Loan Review Committee or designee for approval after eligibility requirements have been investigated. the property has been inspected and work write -ups have been completed and, if necessary, outside financing secured. The HRA Loan Review Committee or designee will be presented with a Project Presentation Form that will discuss the project, but not divulge any information that would violate privacy requirements. The Project Presentation Form is attached to the back of the procedural guide. • 13 After approval by the HRA Loan Review Committee or designee, the project proceeds with the bidding process as described herein. If the project fails to meet an eligibility • requirement or is not approved by the HRA Loan Review Committee, the applicant shall be informed in writing by the Grant Administrator within ten working days and shall be informed by the appeal process. C. The City Council may authorize the Mayor to sign the Project Presentation Forms. ELIGIBLE CONTRACTORS AND BIDDING PROCEDURES A. All contractors participating in the Small Cities Development Program must have on file at the HRA office, a contractor's application and must be licensed by the state. The contractor will be responsible for securing insurance of the amounts specified on the application form. B. The contract is between the applicant and the contractor. The applicant will be provided a list of the HRA approved contractors to choose from. However, an applicant is free to choose any contractor whom the applicant may desire. C. In order for a contractor who is not approved by the BRA to be awarded a contract, the contractor must furnish the HRA a Certificate of Insurance, Contractor's License Number and must complete a contractor application. Upon doing so, the contractor may be awarded a contract. • D. Contractors will be allowed to bid on any and all rehabilitation projects. However, no single contractor will be allowed to work on more than three rehabilitation projects at one time. E. The contract shall be awarded to the lowest base bid unless one of the following circumstances occurs: The bid is determined to be unrealistically low by the HRA and the contractor agrees to withdraw the bid. 2. The contractor has failed to follow the procedures as outlined in the instructions to the bidders. 3. The homeowner does not want the low contractor to perform the work and agrees to pay the difference between the lowest bid and the preferred contractor's bid. 4. There appears to have been collusion between two or more contractors in which case all bids under question will be thrown out and different contractors solicited for bids. 5. The contractor fails to bid according to the specifications and it proves impossible • to compare that contractor's bid with the other contractor bids. E. F. G. H. A mortgage shall be placed on the property for the full amount of the SCDP dollars spent on the project. • The property owner shall be responsible for paying the recording fee of the mortgage. Closing will then take place with the property owner and other appropriate parties to the closing. The HRA will then be notified of the closing and the HRA will then issue a Notice to proceed to the accepted contractor(s). CONTRACT PERFORMANCE ON The Notice to Proceed allows the contractor 90 days to complete the contract except under the following conditions: The work is weather dependent and weather conditions have not allowed the completion of the work. 13 C. 2. The Notice to Proceed is issued too late in the building season to allow weather dependent work to be completed on time. 3. The homeowner preferred contractor is too heavily committed to perform the work within the allotted time and informs the homeowner and the HRA that he/she is to heavily committed and a work schedule is established which is acceptable to the homeowner, the HRA and the contractor. 4. Unforeseen difficulties develop with the approved work and force a delay. Interim inspections will be performed by the HRA to monitor work progress and quality of workmanship. Change orders to the contract: Require the signatures of the: a. Homeowner b. Contractor C. HRA Housing Coordinator, and d. The Grant Administrator 2. Will be allowed only for the following reasons: —• F. A minim of two bids shall be solicited for each improvement project. Bidding shall be done on a general contractor basis, unless under certain cases, it will be a significant cost • benefit to the homeowner to bid out the individual projects separately. This decision will be made by the HRA Rehabilitation Specialist G. The HRA will periodically do press releases about the project to encourage contractor participation. Encouragement of women and minority -owned business to participate will be included in the press releases. H. All portions of the work must be performed by a contractor. BED SUMMATION AND FINANCIAL PACKAGING A. Bids will then be presented to the property owner. B. Upon acceptance of a bid by an applicant, the HRA will- working with the property owner, package the project according to: I . Eligibility of the property owner 2. Availability of Non -SCDP program funds is 3. Other available funds, and 4. The appropriate level of SCDP funding C. The loan package shall include: 1. The applicant's household composition 2. Applicant's gross income 3. Estimated market value of the property 4. Property location 5. Applicant's equity in the property 6. Proposed rehabilitation activities 7. SCDP funding requested 8. Other funding to be used in the project • D. The necessary repayment agreements, mortgage and other legal necessary documentation are prepared by the Grant Administrator. a. To rectify hidden deficiencies that are discovered once the work has begun b. To change a specification due to unforeseen difficulties arising after the • work has begun C. To address a deficiency that was inadvertently dropped from the project during project packaging D. If a dispute arises between a property owner and a contractor, the HRA housing coordinator will attempt to find a means of resolving the dispute. If a solution cannot be found, either party may then appeal the Housing Rehabilitation Committee and the Grant Administrator - Their decision will be final. E. A contractor's contract may be terminated by the HRA Housing Coordinator and the Grant Administrator for any of the following reasons: 1. Poor work performance on the job site and the demonstrated inability to rectify the poor workmanship. The cost of repairing poor workmanship the higher costs of awarding the bid to the next lowest bidder shall be deducted from any amount owed to the initial contractor for work completed. If the amount owed is insufficient to cover the costs incurred, the Grant Administrator will assist the property owner, if necessary, in court to recover damages. 2. Causing undue damages to a homeowner's property and the inability or • unwillingness to correct the damages. The cost of repairing the damages will be deducted from any money owed the contractor for work already completed. If the amount owed is insufficient to cover the costs of the damages, the Grant Administrator will assist the property owner, if necessary, in court to recover damages. 3. The contractor lacks sufficient insurance coverage. 4. The inability of the contractor to perform the work within the allotted time. 5. Unreconcilable and unreasonable differences between the contractor and the property owner. 6. The contractor requests to be removed from the contract. There will be no penalty associated with this request as long as the request is made within 30 days of receiving the Notice to Proceed. 7. Contractors who are removed from a contract shall be removed from the approved contractor's list and shall be prohibited from being awarded any contracts with this program until such time as the problem has been corrected and HRA might reinstate their approved status. C , J PAYMENT • A. All contractors will agree to the payment schedule contained within the contractor's application which is as follows: L No pre - payments are allowed for any reason. 2. Partial payments are not allowable for any work not yet completed and will be limited to 50 percent of the total due on the completed portions of the project. 3. Payments will be made only after the work is completed according to the specifications contained within the Scope of Work and meets with the approval of the applicant and the HRA after inspection. 4. Payments will be made only upon presentation of the following documents: a. Billing statement b. Lien waiver C. Sworn contractor's statement d. Completion Certificate PROJECT FILES A. The Program Administrator shall maintain files on each applicant throughout the duration of the project. Those files shall include the following: Section A - File Checklist Homeowner Application 2. Property Presentation Form/Approved by Rehab Committee 3. Replacement Cost Worksheet 4_ Eligibility Verification 5. Income Verification Form a. Employment Verification b. Second Employment Verification C. self - employment Income d. Bank Verification • e. UUGeneral Assistance f. AFDC Grant Verification Social Security Verification h. Pensionilketirement Verification 6. Historical Society Clearance • 7. Property Tax Verification S. Title Verification Form 9_ Property Insurance Verification 10. Lead Based Paint Receipt/Photo Release Form 11. Privacy Act Release Form 12. Property Owner Conditions 13. Property Inspection Completed 14. Heartland Pre - application 15. Heartland Income Eligible/Not Eligible Section B - File Checklist 1. Change Orders (if applicable) 2. Specifications for Rehabilitation (Notice to Bid) 3. Notice to Proceed 4. Contractor /Property Owner Agreement/Property Owner Conditions 5. Certificate of Contractor Insurance 6. Contractor Award Notice 7. Contractor Non -Award Notice 8. Proposal Form/Bid Specification 9. Copies of Proposals Received 10. Bid Tabulation Section C - File Checklist L SCDP Deferred Loan Repayment Agreement/Note • 2. SCDP Mortgage 3. Work Program (if applicable) 4. Documentation of Non -SCDP Finances (if applicable) Section D - File Checklist L Drawdown Form/Lien Waiver 2. Improvement Certificate Section E - File Checklist 1. Owner Evaluation 2. Completion Certificate B. Copies of forms as appropriate are appended. C. HRA at its option, may accept documentation and verification from other agencies working with the same applicant. Other agencies at this time are: I. NIHFA 2. Heartland 3. Rural Development APPEALS A. If an applicandpropertv owner's application is denied for any reason or is dissatisfied with the level of assistance received, the following procedure is to allow for a standardized appeal/complaint process for all applicants of the Small Cities Development Program. B. In the event of denial or a complaint, the applicant/complaint: Will be informed of the appeal process 2. Will be given a copy of the appeal process 3. Will be given a written notice clearly stating under what condition that the application was denied or that the level of assistance was reduced C- The applicant who wishes to appeal the initial response /review of the Housing Rehabilitation Committee must submit that appeal within 30 days of the initial response. That appeal must state: 40 1 The reason(s) for the appeal 1 Information that the applicant believes is pertinent to the appeal E. F All appeals should be mailed to the address of the Grant Administrator. The Grant Administrator shall be designated by the Project Director to review all written appeals with the Housing Rehabilitation Committee. The Grant Administrator shall respond to the applicant in writing within 15 working days: 1. The results of the review 2. An explanation of the findings 3. The next step the applicant can take if not satisfied with the response G. If the applicant is denied assistance by the Housing Rehabilitation Committee after a second review, the applicant may then request to appear before the City Council and make a final appeal H. The City Council will respond to the applicant in writing within ten working days of making its decision. GENERAL CONDITIONS A No project may be started until: 1. Grant dollars are made available 2. The program is officially up and running 3. The application process has been approved 4. HRA has issued a Notice to Proceed B. Any work done on a project prior to these steps will mean that part of the project is ineligible for funding. C. The proceeds received from the repayment of Rehabilitation loans originated SCDP funds will go toward establishing a revolving loan fund to provide funds for rehabilitation projects on an ongoing basis. AMENDMENTS • 0 A. These procedural guidelines may be amended in whole or in part or supplemented by the Housing Rehabilitation Committee as deemed appropriate and /or needed and will be is on the date of issue, and as long as DTED gives its approval. C MEMO To: Mayor and City Council From: Doug Meier, Maintenance Operations Supervisor Subject: Recommendation to Purchase one (1) New, 55 foot, Hydraulically controlled, Aerial Device with attachments to be mounted on City supplied Truck Chassis. Date: April 15, 1997 On March 11, 1997, the City of Hutchinson advertised for bids the purchase of one (1) new, 55 foot, hydraulically controlled aerial device with attachments. Specifications were sent to the following manufacturers: Dueco, Inc., ABM Equipment, Truck Utilities, and Reach Equipment. The results of the bid opening are as indicated below: Dueco Dalum's Utility Equipment P.O. Box 1090 1901 14th Avenue NW Watertown, SD 57201 Total Price Bid $67,288.00 Less Trade -In - 15,000.00 Net Price $52,288.00 ABM Equipment (Hopkins, MN) No Bid Truck Utilities (St. Paul, MN) No Bid Reach Equipment (Bloomington, MN) No Bid My recommendation is to award Dueco, Inc. out of Watertown, SD, the contract to supply the aerial device with attachments as per specifications, and to mount the unit on a truck chassis supplied by the City of Hutchinson, for a net bid of $52,288.00 after trade -in of the City unit -a 1978 truck mounted aerial device. I am also recommending the trade -in of the City owned unit at this time. The combined cost of the truck chassis and aerial device mounted on the truck is $77,688.85 plus tax. The replacement of this unit was included in the 1997 Budget. • City Center Parks & Recreation Police Services 111 Hassan Street SE 900 Harrington Street SW 10 Franklin Street SW Hutchinson, MN 55350 -2522 Hutchinson, MN 55350 -3097 Hutchinson, MN 55350.2464 (320) 587 -5151 (320) 587 -2975 (320) 587 -2242 Fax (320) 234.4240 Fax (310) 134 -4240 // Fax (320) 587 -6417 - Printed on recycled paper - C MEMO To: Mayor and City Council From: Doug Meier, Maintenance Operations Supervisor Subject: Recommendation to Purchase One (1) New 1998 Ford Truck Chassis Date: April 15, 1997 I am recommending that the City of Hutchinson purchase from Boyer Ford Truck Inc., Minneapolis, MN, one (1) new 1998 Model F -700 Ford Truck Chassis. The purchase of this vehicle would be in accordance with the State of Minnesota Cooperative Purchasing Venture (CPV) Program. Terms of the contract permit municipalities to "tag -on" to State or County contracts and eliminate the need for the bidding process. The best reason is to take advantage of volume buying, thereby saving a substantial amount of money. I am recommending that the City of Hutchinson purchase the 1998 Ford cab and chassis from Boyer Ford for a price of $25,400.85. The vehicle listed for $36,623.00 (customer discount of $11,222.15). The replacement of this vehicle was included in the 1997 Budget. City Center 111 Hassan Street SE Hutchinson, MN 55350 -2522 (320) 587 -5151 Fax (320) 234 -4240 Parks & Recreation 900 Harrington Street SW Hutchinson, MN 55350 -3097 (320) 587 -2975 Fax (320) 234.4240 Police Services 10 Franklin Street SW Hutchinson, MN 55350.2464 (320) 587 -2242 Fax (320) 587 -6427 Printed on recycled paper - 4 dolh, Hutch inson Area Health Care rf* Hutchinson Communitv Hospital Burns Manor Nursing Home • Dassel.wedicalCenter • WinstedFamilyPracticeClinic •� 1095 Highway 15 South Hutchinson, MN 55350 (320) 234 -5000 April 16, 1997 dFR 2 1 199 )F HUTCHi e)N The Honorable Mayor Marlin Torgerson and Members of the City Council Hutchinson City Center 111 Hassan Street South 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 April 15, 1997, considered a capital expenditure request from staff. The following is an excerpt from the minutes of that meeting. "Mental Health Roofing Proiect. The board reviewed the results of a recent bidding process for the Mental Health roof - (see attached). The roof over Inpatient Mental Health has been leaking for several years. Attempts have been • made to find and patch the leaks with minimal success. Last year alone we spent $4,250 on roof repairs and an undetermined amount for ceiling repairs and replacement. The existing roof (25 - 30 years old) has fulfilled it's life expectancy. We completed the bidding process, and received three bids. They are as follows: Laraway Roofing had a bid of $43.367, Schwickert Roofing had a bid of $42,900, and Granite City Roofing, a bid of $38,400. Following discussion, motion was made by Erickson, seconded by Mills to recommend to the City Council the award of the bid to Granite City Roofing in the amount of $38,400. All were in favor. Motion carried." Thank you, in advance, for your consideration of this request. Don Erickson will be able to answer any questions you might have. Sincerely, AREA HEALTH CARE • President /cs APP 0,s 1 a97 HUTCHINSON AREA HEALTH CARE • April 7, 1997 10: Robyn Erickson FROM Gib Lehman ( 1PMHU Roof The roof over Inpatient Mental Health has been leaking for several years. Attempts have been made to find and Patch the leaks with minimal success. Last year alone we spent $4,250 on roof repairs and an undetermined amount for ceiling repairs and replacement. The existing roof (25 -30 years old) has fulfilled it's life expectancy. With that in mind I submitted a cost estimate for review several months ago. Subsequently I was authorized to prepare appropriate bid documents and follow through on the bid process. On March 27, 1997 bids were opened publicly in Conference Room F for complete removal and replacement of the existing roof system. •The new system will increase the insulation R value from 2.0 to 20.0 with a .045" thick rubber membrane with ballast over. The new membrane will run continuously up and over the roof edge parapet, whereas the existing did not. Certain areas of the parapet flashing will be new and the vertical copper clad Flashing will be reused. With completion of this project, the only original roof systems remaining would be over the emergency generator garage and the stairwell from the former Medical Center (north of Same Day Surgery). Attached is a copy of the bid tabulation sheet, which I have reviewed. It is my recommendation that we offer the contract to the low bidder, Granite City Roofing of St. Cloud, MN (with a start date of 45 days from Notice to Proceed). The other bidders were 90 and 120 days. Please advise of the decision so that I may proceed accordingly. GJUjc enc: 1 cc: Phil Graves, President • 9—/�' 0 0 HUTCHINSON AREA HEALTH CARE MENTAL HEALTH ROOF REPAIR BID OPENING DATE: March 27, 1997 - 2:05 PM NAME OF BIDDER BID BOND BASE BID OPTION TOTAL Unit price roof 5% of the $43,367. insulation - $1.10 sq ft. Lara,ay Roofing amount of the roof drains $610Jea bid Unit price roof 5% of the $38,400. insulation $.90 sq.ft. Granite City Roofing amount of the roof drains $650. /ea bid Unit price roof 5% of the $42,900. insulation $1.10 per 1" Sch. ;ickert Roofing amount of the thick base bid roof drains $500. /ea May's Roofing N/A BIDS OPENED BY: DATE: Phil Graves, Gib Lehman. Cor6nne Schlueter March 27, 1997 - 2:05 PM ADM:\,H; \SIDS \BIDTABR00F.doc AMERICAN LEGION HUTCHINSON POST NO. 96 • Hutchinson, Minnesota 55350 0 V Home of Company B 135th Infantry January 10, 1997 Hutchinson Mayor and City Council city Center Hutchinson, MN 55350 Dear Mayor and City Council Members: APR 2 11997 C!' `. JPHUfCHi.;c30N The following organizations associated with The American Legion Post 96, Hutchinson, MN respectfully request that the City of Hutchinson consider a name change for 3rd Ave S. E. to Legion Lane for the one block in front of the Post. This would only result in probably two address changes for the postal department and would greatly honor these organizations so active in the community. • sincerely, M Post 96 e, Apxil�ary President, Post 96 Chef de Gare, voiture 414, 40 & 8 C hapeau, voiture 414, 8 & 40 va..7 u � Dan Rueckert, Commander, sons of the American Legion I N T E R MEMO O F F I C E Date: April 22, 1997 To: Mayor & Council From: Gary D. Plotz, City Administrator J •_ • 1• •� JRII • ; y • • I W • At the request of Marlin, I visited with Jim Miller, Executive Director of the League of MN Cities. The League wants to do something for the flooded cities, and they had a brainstorming session of their own yesterday. Subsequently, I called and offered the Mayor's suggestions. Jim Miller said that establishing a League administered fund was very feasible, and the League would be happy to kick it off, with Hutchinson making the first donation. He would see that Hutchinson got credit for coming up with the idea. • �— QPEN -HOLD COUNCIL REPORT TUE, APR 22, 1997, 12:26 PM page 1 ---------------------- 1980 TIDS ---------- -------- ------ - ----- HUTCHINSON UTILITIES ------------------ - -____ MARCH GAS & ELEC $24.32 --- _____ -- LEONARD G. MAY PAYMENT $812.76 • JOHNSON, < *' $837.08* CENTRAL GARAGE BRANDON TIRE CO DISPOSAL, MOUNT /DISMNT, SAL $63.20 CARQUEST AUTO PARTS STARTER $98.29 CITY OF HUTCHINSON APRIL MEDICAL $432.09 FORTIS BENEFITS APRIL LTD $20.36 HOLT MOTORS INC END ASSY $104.58 JACK'S UNIFORMS & EQUIPMENT MACHINERY & EQUIPMENT $656.72 JERRYS TRANSMISSION SERVICE CALL, REPAIRS, MILEAGE $183.00 MEIER, DOUG REIMB -MEALS $33.97 MID CON SYSTEMS INC GREASE PUMP, MECH FRIEND + $105.89 MN MUTUAL LIFE APRIL LIFE $7.14 MTI DIST.CO HALAGEN HEADLITE $61.37 NO STATES SUPPLY INC NUTS, BOLTS, ETC $141.91 SCHMELING OIL CO BULK OIL $1,563.42 <*> $3,471.94* GENERAL FUND A -1 BIKE SHOP REPAIRS MADE TO BIKE $150.96 ALLIED MECH.SYSTEMS LABOR, MATERIALS $304.40 AM.PUBLIC WORKS ASSN ADVERTISEMENT $100.00 AMERICAN RED CROSS AQUA FITNESS VIDEO & BOOKLET $14.49 AMERICINN MOTEL ROOM CHARGES $135.56 ANDERSON, DON BASKETBALL REF $378.00 ASQC 1997 -98 MEMBERSHIP DUES $72.00 BALA, JAYASHREE REFUND -CLASS CANCELLED $42.00 BENNETT OFFICE SUP. BLACK TONER $91.57 BERKLEY RISK SERVICES PROFESS SERVICES -APRIL $800.00 BRINKMAN STUDIO FILM, SLIDE FILM $15.71 BROOD, JIM PER DIEM, MILEAGE, LODGING $398.85 BUSINESSWARE SOLUTIONS HP CARTRIDGE $2,853.15 CARTER, RANDY HORS WORKED $24.00 CELLULAR 2000 MARCH SERVICE $436.27 CENTRAL GARAGE LABOR RATE ADJUSTMENTS $17,257.71 CENTRAL MN FIREMEN'S REGIONAL 1997 DUES $40.00 CITY OF HUTCHINSON MARCH FUEL $34,056.58 COAST TO COAST IRON OUT, PINE SOL $188.21 • COMM TRANSPORTATION LOAN PYMT 700.00 COMMUNITY EDUCATION COMMUNITY EDUCATION FOR MARCH 637.00 CROW RIVER PRESS INC BUSINESS CARD BLANKS 399.90 CROW RIVER VET CLINIC MARCH CHARGES 555.38 DEPT NATURAL RESOURCES DNR REG FEES TO STATE 783.00 1567.11 DJ'S MUNICIPAL SUPPLY REFLECTIVE CONES DRONEN, JANEY GYMNASTICS INSTRUCTOR $77.00 ELECTRO WATCHMAN ANNUAL CHARGE $766.80 EMANS, BRAD PER DIEM $60.00 E'PPRENTICE REG -LARRY HUHN $349.00 FAMILY REXALL DRUG PHOTOS $46.86 FINANCE & COMMERCE NOTICE OF REDEMPTION $88.42 FITZLOFF HARDWARE TAPE, STAPLES, KEY $153.76 FORCIER, GARY PER DIEM $60.00 FORESTRY SUPPLIERS PRUNER $76.63 FORSBERG, MARY CANCELLED SHELTER RESERV $15.00 FORTIS BENEFITS APRIL LTD $1,586.30 GASSMAN, REBECCA REFUND -CLASS CANCELLED 15.00 GODFATHER'S PIZZA JUMBO PIZZAS, POP 41.23 GOV FINANCE OFFICERS ASSC MEMBERSHIP DUES -K MERRILL $145.00 GREAT PLAINS SUPPLY EXTERIOR STAIN $126.85 HAGER JEWELRY ENGRAVING ON PLATE 23.33 HANKE, ANGIE CONCESSIONS 20.00 HENRYS FOODS INC CUPS 47.35 HILLYARD FLOOR CARE / HUTCHINSON ESPRIT PUMP, 12" PAD, TISSUE $371.22 HUIRAS, TIM PER DIEM, MILEAGE $198.88 HUTCH COOP CENEX LP GAS $31.95 HUTCH FIRE & SAFETY EXTING RECHARGE, HYDRO TEST $129.78 HUTCH PLBG & HTG CO REPAIRS IN KITCHEN & LOUNGE $1,279.53 HUTCHINSON JAYCEES 1997 WATER CARNIVAL DONATION $2,000.00 HUTCHINSON TEL CO APRIL SERVICE $458.43 HUTCHINSON UTILITIES MARCH GAS & ELEC $12,933.09 J.C.PENNEY CO CATALOG TRANSACTIONS- UNIFORMS $27.43 JACK'S UNIFORMS & EQUIPMENT CENTRAL GARAGE REPAIR $396.80 JENSEN &, NEIL J. MAY PAYMENT $230.00 JERABEK MACHINE SERV SQ. TUBE $56.80 C J 10-A I OPEN -HOLD COUNCIL REPORT TUE, APR 22, 1997, 12:26 PM page 2 ------------- ------ GENERAL FUND ----- ----------- - ----- K MART ___-----____--------_----------- ZIPPER FOLIO ____-- ___----- $11.70 - - -___ KABLE'S TABLE $168.75 • KEGLEY, GINNY REFUND - CANCELLED FROM BASEBALL $18.00 KIMBALL, MEGAN HOURS WORKED $20.00 KIRCHOFF, BRIAN HOURS WORKED $24.00 KLOSS, TOM REIMB- MEALS, LODGING $154.64 KOELLN, BRIAN PER DIEM, LODGING $250.36 KRISHNAMGORTHI, CHITRA REIMS MEALS, MILEAGE $45.11 L & P SUPPLY CO TRIMMER, TILLER, MOWER $1,563.29 LEAGUE OF MN CITIES WORKER'S COMP DED BILLINGS $2,872.60 LEVY, NORITA REIMS FOR GERANIUMS $48.00 LYONS, SHANNON CLASS CANCELLED- REFUND $16.00 MARKA, JAMES REIMS, MEALS $7.66 MCGARVEY COFFEE INC COFFEE $35.63 MCLEOD COOP POWER MARCH ELECTRIC $1,477.75 MCOA 1996 MEMBERSHIP $25.00 MESSNER, KYLE COACHES TRAINING $25.00 METRO ATHLETIC SUPPLY VESTS $104.90 MINN BLUE DIGITAL -A XEROX FT /CHARGE $115.14 MINNCOMM PAGING APRIL -JUNE SERVICE $165.19 MN DEPT OF REVENUE DEFENSIVE TACT MANUALS $49.10 MN MUTUAL LIFE APRIL LIFE- MATTSFIELD $559.02 MN U C FUND QTR 1 1997 $352.48 MUELLER, DAVE REIMS MILEAGE, LODGING $131.45 MUSIC STORE, THE QUASIAR TV /VCR COMBO $318.44 NATL REC & PARK ASSC PARK REC OPENS $35.00 NATL TACTICAL OFFICERS ASSC MEMBERSHIP RENEWAL $30.00 NO STATES SUPPLY INC HX CAP $121.84 OLSONS LOCKSMITH LOCKSET, REPAIR LOCKSET, LABOR $288.38 OPATZ, SHARON REFUND - CANCELLED FROM CLASS $14.00 PAULSON, ADAIR ANNOUNCER FEES $250.00 PERFORMANCE COMPUTER FORMS 1 PART FORM 8 1/2 X 5 1/2 $138.44 PETERSEN SERVICE CENTER COACH TO ST. PETER ,5300.00 PETERSON BUS SERVICE COACH TO CHASKA /CHANHASSEN $300.00 PIONEER RUST -NIX PAINT 772.98 PLOTZ, GARY D. REIMB- MEALS, MILEAGE 167.82 PPCT MGNT SYSTEMS DEFENSIVE TACT MANUALS $103.84 PRINTS CHARMING T- SHIRTS $1,377.75 PROFESSIONAL EQUIPMENT SOIL COMPACTION TESTER $296.00 QUADE ELECTRIC LAMPS $183.71 • REID FLOOR COVERING FLOOR MATS $130.73 REINER, DORIS REFUND -CLASS CANCELLED $4.50 REINER, MAUREEN REFUND SENIOR TOUR $15.00 RESPOND SYSTEMS SAFETY SUPPLIES $19.50 ROSE, JULIE REFUND -CLASS CANCELLED $20.00 SCHWARTZ, SCOTT REIMB-REG FEE FOR SEMINAR $45.00 SCOTT, WESTON PER DIEM, LODGING $250.36 SMITH, ANDREW HOURS WORKED $24.00 SMITH, JOAN REFUND - CANCELLED FROM CPR $15.00 STANDARD PRINTING STAMP INK $10.00 STAR TRIBUNE EMPLOYMENT ADS $400.00 STEELE, DAN PER DIEM, LODGING $250.36 TEMPLETON INC ER CONTRIB FOR MARCH 1997 $248.51 TEPLY, TODD MIDDLE SCHOOL DANCE 4/18/97 $350.00 TRI CO WATER COND SALT DELIVERY $21.30 TRIPLE G DISTRIBUTING INC POP PURCHASE $36.00 TWO WAY COMM INC KENWOOD RADIO $386.95 UNITED BLDG CENTERS POLE BARN NAILS $95.25 US POSTAL SERVICE SR NEWSLETTER POSTAGE -MAY $300.00 US WEST COMMUN APRIL SERVICES $654.70 VALLEY ILLUMINATORS AR -10OBD W 40" POSTS $288.00 VIEYRE, ERIK SCOREKEEPER $20.00 VIKING SIGNS SIGN $122.48 WAL -MART NETS $25.22 WEST PUBLISHING CO PUBLICATIONS $405.02 WINZEA CORP WIRE TIE $71.15 WITHERILL, DANIELLE REFUND - CANCELLED FROM GOLF $56.00 XEROX COPIER CHARGES $835.00 < *' $100,855.29* HOSPITAL BONDS FIRSTAR BANK OF MINNESOTA FEES $236.50 ` *' $236.50* HUTCH TRANS FAC. BUSINESSWARE SOLUTIONS HP CARTRIDGE $59.55 • OPEN -HOLD COUNCIL REPORT TUE, APR 22, 1997, 12:26 PM page 3 ------------------------------------------------- HUTCH TRANS FAC. CITY OF HUTCHINSON -------------- - - ----- WATER /SEWER USAGE THRU 3/31 __-__----_________ $661.04 -- KLEESPIE REPAIR LEAK, MILEAGE, LABOR $596.57 • MCGARVEY COFFEE INC COFFEE $35.63 NO STATES SUPPLY INC BARCUT CHOP WHL, ETC $114.06 QUADE ELECTRIC LAMPS $53.25 < *> $1,520.10* LIQUOR STORE CITY OF HUTCHINSON JAN -MARCH WATER /SEWER USAGE $964.70 ED PHILLIPS & SONS CO. MARCH WINE RETURNS $3,091.33 FORTIS BENEFITS APRIL LTD $39.70 GRIGGS COOPER & CO APRIL LIQUOR PURCHASE $14,551.91 INK SPOTS PAPER, SMOKER PROGRAM $74.24 JOHNSON BROTHERS LIQUOR CO. APRIL WINE PURCHASE $5,215.50 KOEHLER,LYLE REIMB -SHELF TAGS $3.85 LENNEMAN BEVERAGE DIST. INC APRIL BEER PURCHASE $1,733.35 LEO'S TRANSFER APRIL 1ST HALF FREIGHT $220.46 LOCHER BROS INC APRIL BEER PURCHASE $11,672.59 MN MUTUAL LIFE APRIL LIFE $14.07 QUALITY WINE & SPIRITS CO. APRIL LIQUOR PURCHASE $497.69 SEGAL WHOLESALE MISC TOBACCO PURCHASE $728.65 SHOPKO VIDEO TAPES $67.02 STANDARD PRINTING CALCULATOR RIBBON $264.23 TRIPLE G DISTRIBUTING INC APRIL BEER PURCHASE $14,541.05 WINE COMPANY, THE APRIL BEER PURCHASE $1,113.50 < > $54,793.84* RURAL F. D. BRODD, JIM QTR 1 1997 MILEAGE $4.96 CITY OF HUTCHINSON MARCH FUEL $31.62 EMANS, BRAD QTR 1 1997 MILEAGE $9.61 GLAESER, TOM QTR 1 1997 MILEAGE $1.86 HOESCHENS, DUANE QTR 1 1997 MILEAGE $6.82 HOMAN, ED QTR 1 1997 MILEAGE $4.34 NIES, JEFF QTR 1 1997 MILEAGE $3.72 POPP, JIM QTR 1 1997 MILEAGE $7.44 SCHRAMM, STEVE QTR 1 1997 MILEAGE $18.29 STEELE, DAN QTR 1 1997 MILEAGE $15.50 TWO WAY COMM INC KENWOOD RADIO $1,323.13 • < *> $1,427.29* WATER /SEWER FUND B.A. LIESCH ASSOCIATES PROFESS SERV - COMPOST PERMIT $996.00 CELLULAR 2000 MARCH SERVICE $48.70 CENTRAL GARAGE LABOR RATE ADJUSTMENTS $645.75 CITY OF HUTCHINSON MARCH FUEL $4,785.96 ELECTRO WATCHMAN ANNUAL CHARGE $766.80 FORTIS BENEFITS APRIL LTD $214.16 • HARRIS CONTRACTING MAINT INSPECTION & MATERIALS $1,543.25 HUTCH COOP CENEX LP GAS $7.20 HUTCHINSON UTILITIES MARCH GAS & ELEC $731.06 JOHNSON, DOUGLAS REIMB- MEALS, MILEAGE $110.22 MN MUTUAL LIFE APRIL LIFE $74.97 NALCO CHEMICAL CO. WATER STABILIZER $10,062.54 NOTT COMPANY LOT SCREW CONVEYOR $14,950.47 OLSONS LOCKSMITH SERVICE CHARGE $35.00 QUADE ELECTRIC STAT WIRE $37.28 US FILTER /WATERPRO ECR CONV KIT $4,769.98 USA WASTE SERVICES INC LOADS FOR 3/31 THRU 4/4 $2,285.87 WAL -MART WATER JUGS $9.02 WELCOME NEIGHBOR MARCH LISTING $60.00 < > $42,134.23* $205,276.27* • IMMEDIATE PAY COUNCIL REPORT TUE, APR 22, 1997, 12:27 PM 1996 T I CONSTR. ----- — - -- --------------- TWO WAY COMM INC ----------- RELOCATION OF BUSINESS * FUND GORAL DEPT NATURAL RESOURCES DNR FEES TO STATE MCLEOD COUNTY TITLE RECORDING DEED - CRIPPS MINNESOTA AIRPORT SYMPOSIUM REG- D.SKAAR MN DEPT OF REVENUE QTR 1 SALES TAX NATIONAL SEMINARS GROUP REG -ROBIN SHOEN HOUSING REDEV BLAZINSKI, LISA GUTTERS & INSULATION KRASEAN, TIM & WINDOWS OLSON, ARNIE & DOORS & WINDOWS HUTCH TRANS FAC. MN DEPT OF REVENUE OFF ROAD SALES TAX LIQUOR STORE CITY OF HUTCHINSON- GENERAL FUN PAYROLL 4/11/97 PAYROLL FUND AETNA VARIABLE LIFE ASS. CO. EE CONTRIS GREAT WEST LIFE INS. CO. EE CONTRIB H.R.L.A.P.R. EE CONTRIB ICMA RETIREMENT TRUST EE CONTRIB PERA LIFE INS CO. EE CONTRIB PERA - D.C.P. EE CONTRIB PRUDENTIAL EE CONTRIB PRUDENTIAL MUTUAL FUNDS EE CONTRIB PUBLIC EMPLOYEES EE CONTRIS TEMPLETON INC EE CONTRIB WADELL & REED EE CONTRIB R /SEWER FUND H2O TRAINING & CONSULTING MN DEPT OF REVENUE Wire Transfers Payroll - Withholding Taxes Payroll -MN Dept of Revenue Liquor Store Fund - March Liquor Sales Tax REG - MARION GRAHAM QTR 1 SALES TAX The following wire transfers were omitted from the council report on these dates. March 11, 1997 Payroll - Withholding Taxes 31,496.36 Payroll -MN Dept of Revenue 6,316.61 March 25, 1997 Payroll - Withholding Taxes 29,256.62 Payroll -MN Dept of Revenue 6,333.49 April 8, 1997 page 1 ------------------------ $18,950.00 $18,950.00* $661.00 $19.50 $90.00 $1,660.45 $395.00 $2,825.95* $650.00 $800.00 $4,000.00 $5,450.00* $75.14 $75.14* $6,733.77 $6,733.77* $790.00 $100.00 $164.00 $2,765.37 $130.50 $52.02 $180.00 $30.00 $15,315.89 $458.46 $150.00 $20,136.24* $550.00 $4,034.55 $4,584.55* $58,755.65* $34,124.39 6,774.15 15,758.00 Liquor Store Fund - Liquor Sales Tax 13,412.00 1991 G.O. Medical Facilities 227,115.63 • MINUTES HUTCHINSON EMPLOYEE SAFETY COMMITTEE MARCH 20, 1997 Present: Chair Dick Nagy, Jim Ford, Mark Weiss, Brenda Ewing, Floyd Groehler, Marilyn J. Swanson and Gary Clyne (Utilities Safety Committee Member) Absent: Scott Hanson, Tom Kloss, John Arlt and Eldon Barkeim It was reported that good feedback was received from the employees regarding the back safety training seminar conducted on March 19. The majority of the meeting was spent reviewing the 1997 goals, with the following comments: #1. Respond Safety conducted the CPR training in 1996. Assign John to be in charge of setting up 1997 training. #2. Training scheduled for May 9, 1997 • #3. Tom prepared a policy drawing for City Center and is working on a draft written policy. Continue to finalize individual departmental policies. Post information in several locations within building affected, including lobby for public access. It was suggested to send a memo to all directors relating to the policies for each building as a recommendation from the Safety Committee. 44. Tabled for discussion at next meeting. #5. Assigned to Brenda. Some type of program that is practical and affordable. 96. Assigned to Brenda. Incentive program for recognition of being accident safe. #7. Jim Marka is working on a policy. #8. Jim Ford reported that Gale Boelter attended a seminar on boom truck safety, and he will do a presentation to departmental employees. #9. Dick will contact Eldon regarding the program. Appoint a committee to work with him. #10. John is handling the stocking of first aid supplies. 40 #11. Contact John regarding refining and upgrading the orientation video. SAFETY COMMITTEE - MARCH 20, 1997 • Since April is "Tornado Warning Month," there was discussion on holding an employee evacuation drill on April 24 at 1:45 p.m. and 6:55 p.m. for the family. Brenda distributed an accident/near accident report of 1996 workers' compensation claims. She commented that the majority of the 38 accident claims were for sprained backs and bruises and cuts on fingers. The Safety Committee should attempt to correct the problem, but the Director is responsible for employee reprimand and discipline. However, the Safety Committee can make recommendations. It was recommended to appoint a sub - committee to review the accident reports and to make recommendations. This matter will be discussed further at the April meeting. Floyd was appointed to check into free material available for distribution to City employees. The next meeting of the Safety Committee will be held on April 24 at 10:00 a.m. in City Center. The meeting adjourned at 10:55 a.m. • • HUTCHINSON EMPLOYEE SAFETY COMMITTEE 1997 GOALS AND OBJECTIVES 1. CPR Refresher Course and Recertification -- September 1997 (OSHA Requirement) 2. Fire Extinguisher Training for City Employees -- May 1997 (Conducted by Casey Stotts) 3. Evacuation/Storm Policies for All City Buildings -- Prepared by Individual Departments 4. Injuries and Accidents -- Sub - Committee > Develop procedure for sub - committee to review accident reports and accident sites > Who /Why /Prevention > Show video entitled "Attitude" which concerns an accident 5. Defensive Driving -- Human Resource Coordinator • 6. Incentive Program -- Human Resource Coordinator 7. Office Security /Safety -- Dick write a memo to City Administrator requesting a security review in all City buildings. 8. Train the Trainer -- Send one or more committee members to a seminar or class on a particular subject or topic; the trainer will present the material to City employees. 9. Lock Out/Tag Out Program -- Sub - Committee with Eldon as Leader • Written Policy • Written Procedure • Mmaintain Records 10. First Aid Kits /Supplies -- Departmental -- John will do inspections 11. Review Orientation Video -- Sub - Committee • Administrative Office John M. Houlahan, Director 410 Fifth Street SW P.O. Box 327 Willmar, Minnesota 56201 -0327 pioneedand 111111111111111111111111 :(320) : (320) 235 -6106 Fax: ( 320) 235 -6106 vAlmarpi@royal.cfa.org PIONEERLAND LIBRARY SYSTEM BOARD MEETING March 20, 1997 PLS Board Chair Orville Rudaingen called meeting to order. 1996 audit was added to agenda Canfield/Schweiss moved approval of agenda Motion carried Sneer /Canfield moved approval of minutes of Febmary 20, 1997 meeting. Motion ca rrie d - Finance Committee report was given by Sanders. The February financial reports were not available to be approved Houlahan reported on TRAP grant application. Sanders/Clouse moved to authorize staff to apply for TI]AP grant- Motion carried Sanders/Schweiss moved to authorize chair to sign grant agreement for Bremer Foundation grant received by Raymond Librar Motion carried Sanders/Sneer moved to authorize chair m sign disclosure form for 1996 audit. Motion carried Automation Committee report was given by Fleegel. MnLINK is statewide automation system. System is currently seeking funding from legislature: for inliastruchue. Automation Committee is recommending PLS participation in MnLINK if conditions specified in recommendation are acceptable to MnLINK Fleegel/Sanders moved approval of PLS participation in MnLHr Y Motion carried Houlahan invited board to a demonstration of video conferencing equipment and awarding of U.S. West grant to PIS on Friday, March 21, 1997, 3:00 p.m., in PLS office in Willmar. Board was given update on internet installation. No Personnel Committee report was given because the committee had not met. Policy Committee report was given by Rudaingen. All member cities and counties have signed 1996 amendments to PLS agreement except Ortonville. Sanders/G. Iohnson moved approval of letter to Ortonville requesting that amendments be signed Motion carved Committee discussed issue of nonsiguatory cities. Polic Committee has asked Finance Committee to study finances of nonsignatory hbraries. Policy Committee is also discussing classes of libraries and has r quested additional information on classes of libranes before developing recommendation. Matson presented 1996 annual statistical report to be submitted to Office of Library Development and Services. Canfield/Clouse recommended approval of report. Motion carried Rudningen summarized 1997 committees. Officers recommended merging facility and committees. Canfield/Sanders moved approval of appointing Al Clouse and Teresa Hoepner t S Governing Board Motion carried Board members reported on their attendance at annual MLA Legislative Day. Sanders/Canfield moved adjournment. Motion carried Katherine A. Matson Acting Secretary 0 Administrative Office John M. Houlahan, tre Director Dioneerland 410 O. sox 27eet sw LIBRARY SYSTEM mar, Minnesota 56201 -0327 Phone: (320) 235 -6106 Fax: (320) 235 -6106 wilmarpi@royal.cfa.org APR 7 -1991 Date: April 4, 1997 OIT' JF HUTCHj dSON To: City and county administrators From: John Houlahan FOR YOUR INFORMATIN Re: Distribution of PLS's Automation Newsletter City and county administrators are being asked to make copies of the enclosed automation newsletter for their governing boards. Pioneerland Library System hopes this newsletter will be useful for you and your governing bodies to keep up with the library system's automation developments. Thank you for your assistance with this distribution. Sincerely, John Houlahan PIONEERLAND LIBRARY SYSTEM'S • AUTOMATION NEWSLETTER VOLUME 1, ISSUE 2 (APRIL, 1997) Purpose of this one page newsletter is to inform city and county officials; city and county administrators, members of Pioneerland Library System and local library boards and library staff on the development and implementation of Pioneerland Library System's automation services, operations and products. PIN ONLINE 2000 Telecommunication% installations Have Begun There are four major telecommunication stages in Pioneer land Library System ONLINE 2000: 1) 56K lines between library buildings & telephone companies 2) internal library building cabling 3) connecting libraries to internet and 4) installing online integrated library system (online catalog, check -out, interlibrary loan, etc) 25 of 31 Pioneerland libraries have completed stage 1 and 20 have completed stage 2. As of April 4, 1997 following ten libraries have been connected to internet and completed stage 3: Bird Island, Cosmos, Dassel, Dawson, Glencoe, Hutchinson, Kerkhoven, Litchfield, Madison, &Milan. Staff is now scheduling 3-4 internet installations a day until all libraries have completed stage 3. State grant requires all 31 Pioneerland libraries be connected by June 30, 1997. Implementation of Stage 4 is contingent on the selection this fall of the online vendor. _Question Of The Week* How Is Mu LINK related to PLS ONLINE 2000? It is expected that Minnesota State Legislature will approve funding this May for developing MnLINK a "statewide on -line information system for libraries" There are two components to MnLINK: System X & System Y. System X will include the mainframe hardware and software for University of Minnesota Library's online functions, services and operations and those of 80 other Minnesota's colleges and special libraries. System Y is a gateway enabling a library with an existing online system to connect with System X and other online library systems. Implementation of MnLINK is expected to begin in 1998. Pioneerland Library Svstem (PLS) is being offered opportunity by the State to be part of System X and/or System Y. At its March 20 meeting, PLS board approved participation in System X if certain criteria could be met: 1) PLS can afford the start up and ongoing costs of System X 2) PLS could begin implementing System X in 1998 and 3) PLS interests are well represented by governing bodies overseeing operations and direction of System X. PLS board is acting on the premise that System X is just one of many possible vendors that provide libraries online services. Therefore, PLS will consider System X as well as other automation vendors that can link with System X and have gateway capabilities required by System Y. Nf= scut wi 1 f at = 1) More installation updates 2) US WEST Grant 3) Question of the Week '.997 0 State Representative Bob Nes 289 State Office Building, 100 ConsStution Ave., St Paul, MN 55155 (612) 2964344 NEWS RELEASE For Immediate Release April 18, 1997 Ness Summarizes Key Aspects of U of M, State Universities, Technical and Community Colleges and Early Childhood Bills Sent to Conference Committees ST. PAUL —State Representative Bob Ness (District 20A- Dassel) said that the Minnesota House of Representatives passed two significant educational funding bills last week, with a third bill expected to be passed this week. The bills passed include a $2.3 billion higher education bill and a $394 million early childhood and family education bill. The K -12 $6 billion education bill will be heard on the House floor this week. "These bills contain many new policy provisions and will create change on many levels," said Ness. "While there • area few items in each bill that I don't favor, I believe that overall, these proposals will help students, children and families with educational costs and reduce some governmental red tape by suspending a number of reports and instead promoting educational and county social service cooperative efforts." U of M, MnSCSU • The $2.3 billion higher education bill contains more than $200 million in combined spending increases for the University of Minnesota and MnSCU systems and the Higher Education Services Office (HESO), the agency that administers student grants. The bill increases overall higher education spending by l 1 percent Hopefully this appropriation will help to curb the escalting cost of tutition and affordability of college for our students. A significant increase in funding is dedicated for technology expenditures and internet access to libraries and inter connectivity for distant learning throughout the university systems. "This bill provides sizable budget increases for both the University of Minnesota and MnSCSU systems' 62 campuses." said Ness, who voted for the bill. "The bill also contains good elements for students, including provisions that broaden the state's work -study program to include students who obtain internships at private companies. Prior to this, work -study funding only applied to work at colleges or other nonprofit institutions." • Additionally, $6.7 million is allocated for EdVest, an IRA -like savings account which will allow families to put money away for college in tax- exempt savings accounts. Ness, a coauthor of EdVest, said the state would provide matching grants for up to a $300 maximum for each student. Also under the bill, a portion of state bonds sold for construction of state facilities will now be sold in $500 denominations. These "Gopher State Bonds" will allow more families to purchase tax- exempt bonds in saving for a child's college education. Under current law, the minimum denomination of such bonds is $5,000. • MORE Page 2 of 2 • "Helping rrtore families with the costs of a college education and providing incentives for saving is good policy," Ness said. "Many Minnesota families will be able to take advantage of these tax - exempt college savings options." Under the bill, the MnSCSU system will receive slightly more than $1 billion. Included is $34 million for technology and equipment to bring all 62 campuses up to the same technology level. Also, MnSCSU receives $500,000 for grants to develop courses to be offered through the "Virtual U." This will provide statewide access to distance learning. The University of Minnesota system will also receive slightly more than $1 billion for the biennium. This state appropriation only makes up approximately 28% of the U of M budget. The funding includes $500,000 for technology grants to develop courses through the "Virtual U" Seed money of $160,000 for research grants in the Academic Health Center are also included. This also inciudes a Lo miiiion for the "Goya Knutson Endowment in Political Science." Ness said funding for the Knutson endowment was controversial. "By their nature, endowments are privately funded," Ness said. "This is the first time taxpayers are being asked to fund one. It should not set a precedent." Early Childhood Education The $394 million early childhood education bill includes ECFE , Community Education, Adult Education and the transfer of Head Start, and several other programs such as food shelves, fuel assistance, weatherization, homeless and various nutrition provisions from Department of Economic Security to the Department of Children, Families and Learning. The appropriation reflects these program transfers and includes $130 million or a 51 percent increase over the last biennium for child care due in part to federal and state welfare reform - Under the bill, $190 million is earmarked for child care subsidies for low- income working parents as well as • parents leaving welfare to work. The bill also spends $30 million on Head Start and $30 million on Early Childhood Family Education programs. "This bill goes a long way toward meeting the increased demand for child care services, which are expected as a result of welfare reform," said Ness. "While spending increases are significant , there are nr, address the major changes in the welfare reforms provisions. The bill is the first omnibus bill of the net. and Early Childhood Education division." "There are several maior pohcv and funding changes in this bill," said Ness. "I believe that Minnesota continues to be one of the most innovative states in the country, and our plans will eventually become models for other communities and states." A conference committee of five Senators and five Representatives will now hammer out the details of the bills before they reach the governor for his signature. If you have questions or continents on this or any legislative issue, please contact Rep. Ness at 289 State Office Building, 100 Constitution Avenue, St. Paul, MN 55155 -1298, tel: (612) 296 -4344. • i99i State Representative -- 11 UT li - ON B%lailb Ness 289 State Office Buildin 100 Cansfituton Ave., St Paul, MN 55155 (612) 2964344 NEWS COLUMN For Immediate Release April 18,1997 THE STATE BUDGET, OUR FINANCIAL OUTLOOK AND THE PROJECTED SURPLUS The newspaper articles, radio programs and television "special reports" about Minnesota's state budget and its anticipated surplus have been numerous and varied in St. Paul over the last month. Proposals include ideas to send it back, save it, create property tax relief, fund education and health/human services, fix highways and bridges, keep the Twins, and the list goes on. However, there is no consensus in either body of the Legislature or with the Governor's office about what to do with the surplus, and there will be a lot of debate before the issue is resolved Before we fall under the spell of this budget surplus, let's put some of the projections in perspective. For instance, we should remember thatjust a few years ago, Minnesotans were concerned about a 51.8 billion deficit, not a stuplus. If the mrnbers can swing so widely in less than two years, then we should question whether or not a $1.8 billion surplus could swung back again. We also need to remember that the Legislature had to return these funds borrowed from K -12 education two years ago when we had a huge deficit. As we consider all possibilities for any budget surplus funds, we should keep in mind five simple principles: we must live within our means; spending should grow no faster than revenue; future budgets should balance revenues and spending by year; one -time expenditures must be truly one -time, with no tails; and long -term commitments should be limited to sustainable revenue growth. The "surplus" is a projection of income and expenses of the state's biennial fiscal budget for the next two years. These projections are based on numerous variables. all of which could change dramatically between now and then. I anticipate the projections are reasonably accurate, but consider that we have not yet accommodated for basic inflationary growth in such things as health and human services, nursing home care, programs for the mentally ill or the disabled; highway construction. K -12 education and higher education; economic development. state and local government, and so on. Add to this the federal cuts in welfare spending and other programs, which the state must pick up to some degree, and it brings into question how much real "surplus money' is available. Balance all of the above with the proposals for targeted property tax reform, proposed income tax • rebates, or tax credits for education. and it's clear that we can't have it all. The question is how, in our political climate, will all these proposals find resolution? "�7fi '1 Page 2 of 2 Key points to keep in mind: The estimated budget surplus is just that: Estimated. While it's true that Minnesota will enjoy some sort of sustainable increase in revenues over the next biennium, no one can say for sure how large or small the increase will be. Additionally, a wine variety of events and tr=xls —such as employment rates, inflation, interest rates, the influence of the national and global economy, foreign affairs, manufacturing and agriculture production and numerous other factors—will affect how much money we're really talking about when we say "budget surplus." The $2 billion number is a projection as of July 1999. Proposed rebates to taxpayers may not be as large as we'd all like to believe. Many proposals for dealing with the budget surplus have a tax rebate or tax credit component. While some may say "that's our money," and while we'd all like a check in the mail, we shouldn't be planning a major purchasejust yet. While there are various proposals creating expectations for a rebate, tax credits or property tax relief, there is no consensus on what or how much will be possible. Perhaps some combination of these will be possible. Our cities, school districts and McLeod and Meeker Counties receive at least 70 percent of their operational revenues from statewide income tax and sales tax receipts. These taxes are paid by all the people in the state of Muvrsota, and "that's our money" becomes a little more complex when the basic premise of any refund is that the money would go back to those who paid it in the first place. • I sincerely believe we [teed to live within our means, be careful and accountable in the investment and expenditure of all state resources and taxpayer dollars. I will not embellish or politicize issues of importance to people of McLeod and Meeker Counties. I will do my best to represent all constituents, so that we balance the creeds of all resources for rural Minnesota with the metro power and dominance in the legislative process. Perhaps when all is said and done, "a lot more will be said than done." If you have questions or comments on this or any other legislative issue, please contact me at 612 - 2964344, or visit my office in room 289 of the State Office Building. My door is always open to you. _•