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cp07-20-1992 c0 AGENDA SPECIAL CITY COUNCIL MEETING MONDAY, JULY 20, 1992 1. Call to Order - 12:00 Noon 2. Consideration of License Applications for Residential and /or Commercial Hauling Action - Motion to reject - Motion to approve and issue license(s) 3. Consideration of Awarding Contract for Interim Residential Garbage Pickup Action - Motion to reject - Motion to approve and award contract 4. Discussion of Alternatives for Liquor Store Layout Action - • 5. Adjournment 40 r r� U APPLICATIONS FOR LICENSES COMMERCIAL HAULING 1. Aagard West, Inc. 2. Junker Sanitation Service Inc. 3. Kubasch And Sons, Inc. 4. McKimm Milk Transit, Inc. 5. Witte Sanitation Inc. 1. Aagard West, Inc. 2. Junker Sanitation Service Inc. • 3. Kubasch And Sons, Inc. 4. Witte Sanitation Inc. 0 June 22, 1992 Mr. Gary Plots City Administrator City of Hutchinson 37 Washington Ave. West Hutchinson, Mn. 55350 Dear Mr. Plotz: The bid of Junker Sanitation is enclosed in response to the RFP for interm services. This bid is being submitted notwithstanding the temporary restraining order now in place as the result of the hearing last Friday. Its submission does not constitute a waiver of any rights we have or may choose to assert for economic loss arising from actions by the City of Hutchinson. • Very truly yours, —� i� James L hunker President cc: John Cairns • 'Your Garbologist James Jun ker *P.O. Box 246 . StiIlwater, MN 55082 . 612 - 439 -7135 f RESPONSE OF JUNKER SANITATION SERVICES INC. TO THE REQUEST FOR PROPOSAL OF THE CITY OF HUTCHINSON, MINNESOTA TO PROVIDE INTERIM WASTE HAULING SERVICES Junker Sanitation Service, Inc., proposes to perform the services requested at the unit rate of 1.025 times the per unit rates currently in effect according to its contract with the City Of Hutchinson. Dated the 22nd day of June, 1992 JUNKER SANITATION SERYCICE, INC., BY > � - om - '�r�si en�t �— • 'Your Garbologist James Junker 9 P.O. Box 246 . Stillwater, MN 55082 . 612 - 439 -7135 z ( ro January 28, 1992 MAY AND CITY COUNCIL FR OM: DEPAR A MOUNT DUE J FOR EMU HAULING The number of pick -ups has been adjusted to reflect usage as of January 1, 1992. Sr. Citizens - 58 Residential 3,369 Duplexes 92 3 -Plex 3 3,522 The amount due for payment is $16.72 for 3,522 units which amounts to $58,887.84. • /saa- 1 — _ T /�t -�5 19 S_/ 430 C;ru11r11 3 7 1liuhinglon .4:'i nur 11 :it (bl_I 53 -5131 AvAs & Acreation 9W7l.nnn.v(.m �b,rr (612) 3a -:4 5 Hulcltiusrm. Minnesota 55350 . t'n.,,Ju n:nkd (r,f . • ti P ar, c D. Nrrynorr IO IINnAIIH �rR'fr WYf� (61:1 U,7­2241 WITTE SANITATION, INC. "For All Your Sanitation Needs' • ��t 1330 Pryor Ave. N. c Glencoe, Minnesota 55336 Glencoe (612) 864 -4454 Hutchinson (612) 587 -6709 June 23, 1992 TO: CITY OF HUTCHINSON FROM: WITTE SANITATION, INC. Attached is Witte Sanitation's Proposal for Interim Collection of Residential Garbage and Refuse. This Proposal responds to the City of Hutchinson's Request for Proposal of June 3, 1992. • Witte Sanitation is owned by a life long resident of the Hutchinson area and would be proud to serve the City as its residential garbage and refuse hauler. Thank you for your consideration. • We Provide Prompt and Courteous Service "Locally owned and operated!" Printed on necycW Paper would be approximately 3,250 and that there would be no limitation on the type, size, or number of containers to • be picked up from residences. This interim contract would only cover residential housing units which contain up to a maximum of four units in a single structure. 5. Payment. Witte Sanitation would perform the interim garbage and refuse hauling services at a per household charge of $12 95 per month for each residential n the City of Hutchinson regardless of whether service is provided to all units. These charges would be paid directly to Witte Sanitation by the City of Hutchinson within 10 days of the end of each month of service. The City of Hutchinson would be responsible for billing and collecting charges from residents. Buildings or • structures containing more than four dwelling units shall be considered commercial structures and Witte Sanitation shall not be required to haul garbage or refuse from those structures or buildings. 6. Disposal of Garbage and Other Refuse. Witte Sanitation would dispose the garbage and other refuse collected from residences at a site approved by the City Council of the City of Hutchinson. Witte Sanitation would haul garbage and rubbish and other refuse accumulated in the ordinary operation of a household ( including appliances, couches, chairs and other household furniture) , but would not be obligated to haul rocks, sod, dirt, construction materials, yard waste, garden • - 4 - tK1C:KbUN'S DIV. LUKF'. ILL: I15 -68b -1015 Jul 2U,92 9 :18 No.011 F Erickson's Diversified Corporation 5W9 SFCOND STREET HUDSON, WISCONSIN 54016 • • July 20, 1992 Mr. Gary Plots, City Administrator City of 8utobinson City Hall 37 Washington Avenue West Hutchinson, MN 55350 Dear Gary: PHO E■ Nu050H 11 6 931 S 01, P4u 434 -0024 Attached is a layout, done by DJ &R Architects, showing 32 angle parking stalls that could be available by using 7 feet of additional space on the south side of the liquor store and movie store. It shows a 7 foot sidewalk and is based on McDonald's standards for a . 60 0 angle parking area, also attached. We think that this is a good alternative for the liquor store, and we await any questions or your decision on which direction we should go on the planning of the liquor in Hutchinson. yrely, as J. Driscoll Director of Operations • DJD /cja Attachments to OW PRINTED ON RECYCLED PAPER j I SI Gk • WA- q "UKMTnKl &a f 14VI=KIP (I= \5.a 4 STALLS 04 _ • • • 07/20/92 09'31 ' 6612 871 1746 MR ARCHITECTS n :t W POAKING SCALE 1' =20' -0" JUL 19 '92 23146 GRINSTEAD AND ASSOC. P.01 Grinstead DAssociates BU%1"LN% Dtt elopnlcnt & Clxtsuhing if Ptr. Gary D. Plot2 City Administrator City of Hutchinson City Hall - 37 Washington Avenue, West Hutchinson, Minnesota 55350 BUx -451. I lamrl. llllnuis 620-46 (618) 6332 - 62 ¢(6)8)6332'61 JULY 19th, 1992 Dear Mr. Plotz: In our "1: eliminary Report of March 2nd, 1992" - we stated: • Sales in the EXISTING FACILITY fat 44 Washington Avenue, West) should generate a sales voltum of $1,548,000 per year. • Sales in the location south of the new Food Store should nt generate a sales volume of $1,816,500 per year. HOWEVER, we need 55 feet (NOT 50 of frontage; -) at least 5,730 square feet (we were a little uncomfortable with - that this should have been 6,000 to 6,400 square feet)1 -) two rows of angle parking (for convenience customers) • al ,g the south wall. • Sales in the location south of the new SHOPNO should generate a sales volume of $1,752,20+0 per year. Please note that a $1,816,000 is not a small volume operation. At a twelve time inventory turnover and a 25% Gross Margin (which you do not presently achieve - BUT SOON WILL) this store will carry approximately $114,000 in inventory. At 5,730 square feet - this is $20 /square foot. The modifications to the store (SINCE THIS 3/2/92 REPORT) have: r eliminated the "Pass Throug rom he rocery : cne Liquor. ♦ eliminated the exposure of all Grocery Customers - allowing us to put in a plate glass wall between the deli area. We could live with the reduced square footage because of "V" cut - because of the increased customer exposure. This is now Deli Prep area - and all potential C`� benefits are completely eliminated. • a reduction in the front footage - of approximately eight feet. ► a reduction in the high impulse area (in front of the cash regibter) of approximately eight feet. e an eliu- nation o€ -one row of angle parking to the south. * an elimination of the delivery door on the east wall • (WHICH WE STRONGLY BELIEVED IN). With all of the preceding modifications /eliminations - we feel Na A SALES PROJECTION OF $1.816.500 HAS TO BE DRAMATICALLY REDUCED JUL 1Y '>. [3107 6RIN57ERD AND ASSOC. P.02 Mr. Gary D. Plotz • City of Hutchinson July 19th, 1992; PAGE N 2 With these design changes - the city needs to make two important decisions (with which we really cannot help you). 1) Does the City of Hutchinson stay in the liquor business ? ?? IF YOU WANT "DUT" JF THE LIQUOR BUSINESS, what you are being offered is a store in a competitive environment that will be mildly profitable to an individual /entrepreneur, because of its locational advantages. This store may have some market value - if it is sold so it can get a substantial jump on other-liquor stores. However, its market share and value will decrease as other competitive stores enter the Hutchinson Market. IF YOU WANT TO STAY "IN" THE LIQUOR FUSINESS: _what you are being ol`�;ed is a store that w_11 produce about the IYO�d same numbers as can be achieved at 44 ashino on venue. West - w ith some remodeling expenditure and with a Marketing /Management Planner. With what we've seer) and heard - this store location is NJ • going to be given the proper exposure, parking, total size, and impulse area to generate the maximum Return on Investment. THE CITY OF HUTCHINSON OUGHT TO LOON INTO THE SECOND LOCATION, mA` / WHERE THE LANDLORD (the City) WILL ALLOW THE TENANT TO GENERATE THE OPTIMUM "RETURN ON INVESTMENT ". 2) HOW IMPORTANT IS THE LIQUOR STORE TO THE FOOD STORE DEAL ?? IF IT IS "IMPORTANT" - you mead to re- evaluate question N 1. It is our commission to maximize the profitability of the operation and Return on any Municipal Capital Invested. We feel unless we have: (a) at least 55 feet of frontage; (b) a rectangular store (55 feet wide by at least 108 feet deep); (c) obviously with 55 feet across the high impulc„ area (in front of the cash register); (d) two rows of angle parking to the south; and (e) a delivery door (preferably on the east wall - but if this is impossible, at least on the southeast corder - so it can enter directly into the storage area). - ROM A FINANCIAL ANALYSIS] JUL 19 '92 23 +08 GRINSTEAD AND ASSOC. • We thought your MAY :1st, Mr. Gary D. Plotz City of Hutchinson July 19th, 1992; PAGE M 3 P.03 letters to Everest Development of JULY 8th, 1992 and 1992 - 4 te succinctly expressed this position. You( Therefore, we made no additional communications either to the city �� - - - - - or to Everest Development. For the record: this liquor store will be a 1.8+ million dollar, high profit, complex operation. We believe the Store Designers have underestimated the potential of this business. We want to ensure that you (THE CITY) do riot also underestimate the potential. A) STORE SIZE: • HAS TO BE LARGE ENOUGH - to allow proper quantities to be purchased (to take advantag= .,f post off's and quaneity discounts) ; and to allow customers to comfortably shop and take advantage of merchandising and maximize impulse shopping; %M, • + SHOULD NOT BE TOO LARGE - because it will be costly to operate, and extra amounts of inventory will need to be purchased to avoid the store from looking "distressed ". B) FIXTURES 8 EQUIPMENT • ADDED DISPLAY SPACE allows inventory to be stored "on the selling f__ -or" as opposed to the u: -rk room - and will save a Capital Expenditure on Store Fixtures (i.e. Shelving). &a, r NOT ENOUGH SHELVING will create the problem that The store is presently facing (i.e. riot enough room to adequately display brands & sizes). For example, Chuck Nelson has discontinued the 750 ml size on numerous brands, because he doesn't have the "shelf space ". This is a "13IG" mistake from a store profitability aspect. r Re: the "L" shaped cooler - THIS IS NOT ACCEPTABLE, because it cuts out valuable cooler sr . .are footage. v This is a good example of the store designers - underestimating �)() the potential of this business. u C) PRICING • PRODUCT PRICING NEEDS TO BE SET LOW TO BE COMPETITIVE. Ra • PRODUCT PRICING NEEDS TO BE SET HIGH TO MAXIMIZE GROSS PROFITS. • This is an important area that can /should be refined. JUL 19 '91 2 ^ .108 GRINSTEAD AND AS SOC. P.8♦ Mr. Gary D. Plotz City of Hutchinson July 19th, 1992; RAGE N 4 This store will be a high volume, high profit, complex operation - CONTINUED D) RECEIVING +r RECEIVING PRODUCTS IS CRITICAL - because well over 70% of Inventory Shrinkage is caused by INTERNAL THEFT. !Inventory loss created by theft (or mistakes) by Store personal and /or DELIVERY Personnel). THIS IS WHY WE RECOMMEND A DELIVERY DOOR. At a 12 times inventory turn and a 25% Gross Margin, a store with a $1,800,000 Sales Volume will "turn" approximately $114,000 in inventory every month!! M, + rti "'ING TOO MANY STORE EMPLOYEES - FOR SALES AND SECURITY PURPOSES WILL HAVE A D:`iMATICALLY NEGATIVE EFFECT ON THE NET INCOME. E) LOCATIONAL CONSIDERATIONS * CONVENIENCE OF THE LOCATION is by far the main reason why customers shop in any liquor store. However, the location is important to the customer who is shopping oriented - as well as for customers who are shopping because it is convenient or as an impulse purchase. -) both the Food Store and the Shopko locations will be strong in "CONVENIENCE OF THE LOCATION" - but for two different reasons. * The Food Store Location should generate more IMPULSE SALES be_ause of exposure. Whereas, ease of customer accessibility shc_:,j generate additional convenience sales at the SHOPKO location. -) The Food Store Parking Lot may take up too much parking. This is why we are so insis ant on two angle parking rows ors the south side of the building. -) Withou a deliver door delivery trucks will park directly in front of the store. Granted most deliveries are in the morning - which should not greatly effect parking. We just want to ensure the customer (AND NOT THE DELIVERY TRUCK) gets the "Pole Position ". • is JUL 19 '92 23209 GRINSTEAD AND ASSOC. Y.05 • N2. Gary D. plot2 City of Hutchinson July 19th, 1992; FADE M 5 SUMMARY The criteria by which we would recommend the Food Store Location are: (a) at least 55 feet of frontage; (b) a rectangular store (55 feet wide by at least 108 feet deep); (c) obviously with 55 feet across the high impulse area (in front of the cash register); (d) two rows of angle parking to the south; and (e) a delivery door (preferably on the east wall - but if this is impossible, least on the southea corner - so it can enter directly into the storage area). Assuming these criteria will 1NT be met - 1) a SALES PROJECTION of $1,816,500 has to be dramatically reduced. 2) from a FINANCIAL ASPECTS YOU CAN DO BETTER IN ANOTHER LOCATION. Therefore, we cannot recommend this Food Store Location "OVER" the SHOPKO location or even the existing location !! • --- -- ---- I am not certain if I will be available tomorrow at 12,10 to 12:15 for a speaker phone hookup. But, I will call tomorrow morning and again or, Tuesday morning to answer any questions /respond to any comments. Finally, let me know your specific decisions - and I will have a ri specific store layout in Hutchinson (by the and of the week). Y1 urs t 1 ruly, L Charles L. Grinstead GRINSTEAD 8 ASSOCIATES L J • T KT A 1 iii /)i/••i A KING. ALL. ANDERSON AND AND ASSOCIATES. INCORPORATED ENGINEERS ARCHITECTS PLANNERS 1500 MERITOR TONER 111 CEDAR STREET SAINT PAUL MINNESOTA 7 5 1 01 4110 PNONEl1pR92J FA%l12Y0P-0073 July 14, 1992 Mr. John Rodeberg Director of Engineering 37 Washington Street Hutchinson, MN 55350 Re: 1992 Airport Expansion Hutchinson Municipal Airport Supplemental Agreement No. 2 Commission No. 9946 Dear Mr. Rodeberg: Transmitted herewith for the City's consideration is a draft copy of proposed Supplemental Agreement No. 2 to the Hutchinson Airpon Expansion Architect/Engineer Agreement. • This supplemental agreement would provide for the engineering services required to revise the construction staging for the project, to make relevant changes in the specifications, and to proceed with readvertising the project. The revisions and changes are being made in response to comments received from the FAA following their review of the project's Construction Safety Plan. If the supplemental agreement is acceptable we will prepare and forward partially executed copies for signature by the authorized City officials. Please contact us if questions arise concerning the proposed supplemental agreement or if modifications are needed. Sincerely, �,� J. G. "Jerry" Petersen, P.E. JGP:al Encl. • E SUPPLEMENTAL AGREEMENT NO. 2 to ARCHITECTIENGINEER AGREEMENT Between THE CITY OF HUTCHINSON, MINNESOTA (OWNER) and TOLTZ, KING, DUVALL, ANDERSON AND ASSOCIATES, INCORPORATED (CONSULTANT) for f� 0 PROFESSIONAL SERVICES THIS SUPPLEMENTAL AGREEMENT NO. 2 made ": entered into this _ day of 1992, by and between THE Ci'l`( OFMIdTCHINSON, MINNESOTA, hereinafter referred to as the OWNER, and TOLT?" K'� i i, DUVALL, ANDERSON AND ASSOCIATES, INCORPORATED, a corporatioYl tyith altegular place of business at 1500 Mentor Tower, 444 Cedar Street, St. Paul, MinnesotA551':fIf =2140, hereinafter referred to as the CONSULTANT. X� WITNESSETH: WHEREAS the OWN, architectural, engineering and/or EXPANSION at the Hutchinson engagement was formalized i..f 1992, referred to hereinafter a$ AND` was executed, uslj engaged the CONSULTANT to provide >ssional Services in connection with 1992 AIRPORT Airport, hereinafter referred to as the Project, which tal Services Agreement dated the 9th day of April, of the Scope of the Project have changed since the Agreement AND WHEREAS a change in the Consultant's Scope of Work is necessary to the continuation of the Project; NOW, THEREFORE, the OWNER and CONSULTANT, for the consideration hereinafter named, agree to amend the Agreement by and through this Supplemental Agreement No. 2 as hereinafter stated. SA 2 -1 • 1. PURPOSE The purpose of this agreement is to provide for the redesign and redrafting of the construction plans to incorporate changes in the construction staging ordered by the FAA during their review of the Construction Safety Plan, to review the size of the major drainage culvert under the runway and taxiway in light of upstream drainage design done by the City's storm water management consultant, to prepare a new Construction Safety Plan, and to assist in the process of advertising and securing new bids for the project work. A. Redesign the Project and redraft construction plans to incorporate the required changes. B. Reproduce 50 copies of revised plans and spep ations for bidding and construction purposes.; C. Assist in securing new bids, tabulation and an�+�pw bid results. Forward results to MnDOT and FAA for their use in ev3'ng the project for potential state and federal funding. ,, III. SERVICES NOT INCLUDED . • Make to following changes to Agmetrt t PA th Services Not Included: E. More than tew v s to Hutchinson in connection with providing Preliminary _tgn ase Basic Services. :3 +� L J SA 2 -2 0 NZENE �3 2 r•� Make the following changes to Agreement Part IV, Compensation: C. The maximum payment under this Agreement shall not exceed the amount listed hereinafter without amendment as may be necessary to cover any increases in the scope of work and/or level of effort required to complete the scope of work described. C � J 0 Total Reimbursable Cost $235,744 Fixed Fee 21,256 Total Contract Ceiling Amount $257, IN WITNESS WHEREOF, the parties hereto have ted Agreement No. 2 the day and year first above written. I L CITY OF HUTCHINSON, MINNESOTA By Paul L. Ackland Mayor g M. $250.774 21,256 1,1 this Supplemental DUVALL, ANDERSON TES, INCORPORATED Duane T. Prew, P.E. President By Raymond M. Strege, P.E. Associate SA 2 -3