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cp06-12-1995 cSUNDAY
MONDAY
TUESD
-11-
' -12-
-13-
Open Bids at City Center for
1995 Improvement Bonds S HATS
10:00 A.M. - Directors Meeting
+�
Bonds
at City Center Staff
Conf. Room
4:30 P.M. - Library Board Meet
ng
at Library
LEAGUE OF CITIES CONFERENCE
IN DULUTH
11:00 A.M. - HATS Joint Powers
MUTC
Board Meeting in City
JUNE 11 -16
Center Staff Conf. Rm.
CI TV Y
CALENDAR
5:30 P.M. - City Council Meetirg
at City Center
Wook of
June 11 to June 17
1995
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
-14-
-15-
-16-
-17-
VACATION:
DOUG MEIER - June 12 -20
STEVE MADSON - June 12 -16
• AGENDA
REGULAR MEETING - HUTCHINSON CITY COUNCIL
MONDAY, JUNE 12, 1995
1. CALL TO ORDER - 5:30 P.M.
2. INVOCATION - Rev. Jim Hall, Word of Life Church
•► NI 9=25 I& 1
MINUTES OF BID OPENINGS OF MAY 22, 1995 AND MAY 25, 1995
Action - Approve as distributed - Approve as amended
�K�]►f.9�1►11�FC ►I�
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. BUILDING OFFICIAL'S REPORT - MAY 1995
• (b) RESOLUTIONS AND ORDINANCES
•
1. ORDINANCE NO. 95 -150 - SECTION 9.14 - PHYSICALLY
HANDICAPPED PARKING (SECOND READING AND ADOPT)
2. ORDINANCE NO. 95 -151 - AMENDMENT TO SUBDFVISION
ORDINANCE NO. 466, SECTION 12.20, REGARDING FINAL PLAT
PROCEDURES (SECOND READING AND ADOPT)
3. RESOLUTION NO. 10491 - RESOLUTION TO NAME PARK IN
WAGNER ADDITION JUNIOR COMMUNITY WOMEN PARK
(c) USE OF LIBRARY SQUARE ON AUGUST 18, 1995 BY BETHANY BAPTIST
CHURCH
(d) TRANSIENT MERCHANT PERMIT FOR CLOTHING CONCEPTS, INC.
(e) COLLEGE AND CITY AUCTION ON JUNE 29, 1995
(f) SETTLEMENT AGREEMENT FOR WAGEBENEFIT PACKAGE
1
CITY COUNCIL AGENDA - JUNE 12, 1995
F_I
(g) "ON SALE" NON - INTOXICATING MALT LIQUOR LICENSE FOR LITTLE
CROW BOWLING LANES (HUTCH BOWL)
Action - Motion to approve consent agenda
(a) PROPOSED AMENDMENTS TO DEVELOPMENT PROGRAM FOR
DEVELOPMENT DISTRICT NO. 4 AND PROPOSED TAX INCREMENT
FINANCING PLAN FOR DISTRICT NO. 9, SIMONSON LUMBER
Action - Motion to close hearing - Motion to reject - Motion to approve and adopt
Resolutions No. 10492 & No. 10493
• u Is t ►1 IWAN 1019611 L_ • :-9H 1 om
(a) REPORT ON COMMUNITY BIKE SURVEY
Action -
7. RESOLUTIONS AND ORDINANCES -- SEE CONSENT AGENDA •
1►1 •1 �
(a) CONSIDERATION OF PADEN FIRST ADDITION ASSESSMENT ISSUE
(MARK SCHANTZEN) (DEFERRED MAY 23, 1995)
Action -
• 1
(a) CONSIDERATION OF AWARDING SALE OF 1995 IMPROVEMENT BONDS
AND HATS FACILITY BONDS
Action - Motion to reject - Motion to approve sale and adopt Resolutions
No. 10494 & No. 10495
2 40
9 CITY COUNCIL AGENDA - JUNE 12, 1995
(b) DISCUSSION OF ANNUAL CITY APPRECIATION PICNIC AND LOCATION
SITE
Action -
(c) CONSIDERATION OF AWARDING BID FOR CIVIC ARENA USED
REFRIGERATION EQUIPMENT
Action - Motion to reject - Motion to approve and award bid
(d) CONSIDERATION OF CRIMINAL COMPLAINT AGAINST LO WELL D. OTTO
PROPERTY
Action - Motion to reject - Motion to approve and issue Notice to Repair or Remove
(e) CONSIDERATION OF ACCEPTING PETITION AND WAIVING HEARING,
RECEIVING REPORT, APPROVING PLANS AND SPECIFICATIONS AND
ADVERTISING FOR BIDS FOR LETTING NO. 1, PROJECT NO. 96 -01
• Action - Motion to reject - Motion to approve report, plans and specifications
and to advertise for bids - Motion to waive readings and adopt Resolutions No. 10496
- No. 10499
(f) CONSIDERATION OF RECEIVING REPORT AND CALLING FOR HEARING
ON IMPROVEMENT PROJECT NO. 96 -02, LETTING NO. 2
Action - Motion to reject - Motion to approve report and call for hearing - Motion to
waive readings and adopt Resolutions No. 10500 & No. 10501
(g) CONSIDERATION OF DAGGETT INDEMNITY AGREEMENT
Action - Motion to reject - Motion to approve
(a) COMMUNICATIONS
• 3
CITY COUNCIL AGENDA - JUNE 12, 1995
(a) VERIFIED CLAIMS
Action - Motion to approve and authorize payment from appropriate funds
•
4 0
• MINUTES
BID OPENING
MONDAY, MAY 22, 1995
The meeting was called to order at 2:00 p.m. by City Administrator Gary D. Plotz. Also present
were Cal Rice, Assistant to Engineer, and Administrative Secretary Marilyn J. Swanson.
111310 1 ICLOBIZE11gri " I I I X61 oweloffin
The reading of Publication No. 4805, Advertisement for Bids, Letting No. 1, Project No. 95 -01,
was dispensed with. The following bids were opened and read:
Northdale Construction
Rogers, MN $ 74,035.53
Annandale Construction
Annandale, MN 65,093.50
Randy Kramer Excavating, Inc.
Is Watkins, MN 8,323.11
Juul Contracting Co.
Hutchinson, MN 48,777.00
Midstates Utilities
Slayton, MN 62,768.00
R.P. Utilities, Inc.
Annandale, MN 42,948.77
IN XX@ 0 W Rell)-Xej 8
The reading of Publication No. 4806, Advertisement for Bids, Letting No. 11, Project No. 95 -17,
was dispensed with. The following bids were opened and read:
Northdale Construction
Rogers, MN $175,621.13
Annandale Construction
Annandale, MN 153,706.50
Randy Kramer Excavating, Inc.
Watkins, MN 154,838.91
BID OPENING MINUTES
MAY 22, 1995 - PAGE 2
Juul Contracting Co.
Hutchinson, MN
Midstates Utilities
Slayton, MN
11131! !!1 ►[0]P017W T1a!
121,241.45
181,610.00
The reading of Publication No. 4807, Advertisement for Bids, Letting No. 14, Project No. 95 -23 &
95 -24, was dispensed with. The following bids were opened and read:
Northdale Construction
Rogers, MN $552,974.46
Annandale Construction
Annandale, MN 431,697.05
Randy Kramer Excavating, Inc.
Watkins, MN 416,170.61
Duininck Bros., Inc.
Prinsburg, MN 461,744.50
The bids were referred to the Engineering Department for review and recommendation.
The meeting adjourned at 2:20 p.m.
0
E
0
C�
MINUTES
BID OPENING
THURSDAY, MAY 25, 1995
The meeting was called to order at 2:00 p.m. by Finance Director Kenneth B. Merrill. Also present
were Supervisor Marvin Haugen and Administrative Secretary Marilyn J. Swanson.
The reading of Publication No. 4812, Advertisement for Bids, Used Refrigeration Equipment, was
dispensed with. The following bids were opened and read:
Redwood Area Hockey Assoc. $4,500.00
Sun Blades Ice Arena
Clearwater, FL
8,100.00
The bids were referred to staff for review and recommendation.
The meeting adjourned at 2:05 p.m.
2.
0
9
0
03259 0367fi'iOM5 NO. 0607- 0094:APPROVAL EXPIRES 21211/98
C•404 U.S. DIVAInWW Of Coaasmcc
.xs,ri suwuwmt
Period M Whle\ Pan A bred I
MAY 1995
114"" co-na em -amwa ti rare and am— k -k-*19 ZIP COdei
REPORT OF BUILDING OR
ZONING PERMITS ISSUED
AND LOCAL PUBLIC
CONSTRUCTION
357400 27 4 9999 085 7 0
26 9999 02730
JAMES MARKA BLDG OFFICIAL
FOR CITY OF HUTCHINSON
If your bu gdkV pemet system has cheryed,
mw* (X) appropriate box below and explain
HUTCHINSON CTT CTR 111 NASSAM ST S
~OO"w"w'ee'
HUTCHINSON AN 55350
❑ Dlscomimled issuing permits
❑ Mrged wtth another system
❑ split Into two or more systems
❑ Annexed Ind rwe
PLEASE COMPLETE AND MAIL 1
❑
Had other changes
THIS FORM ON OR BEFORE JUNE 4. 199S
ifno pennIts wen Issued dukrg
Bureau of the Cusus
kretnrctlons am InckxIsd. For
this period, mark (X) In the box ---. ❑
1201 Ease 10tb 3tmat
further assktanee, ce9 collect
and return this form
Joffe few - IS. IN 47132 -0001
(301) 783 -7244.
NEW RESIDENTIAL
PRIVATELYOWNED
PUSIJCLYOWNED
HOUSEKEEPING
h
Number
of
Number
of
BUILDINGS
Vvstion of
Vaksoon of
NO.
BuiltlYge
Housing
BwWI
Housing
Construction
construction
units
Orwt cents
units
00* cents
W
(b)
(c)
(dl
W
111
1 )
Single- family houses, detached
Exclude mobHe homes.
101
'role -femNy houses, attached
- Separated by ground to roof w&0,
-No unb above or bsiow, and
- Seprefa heating systvro and ufgity meters.
(Count each unit p • separate bukkV)
102
Two-family buddmV
103
Tfeaa- end four -frNy buildings
104
Five-ar-more famity, buiIdkps
lag
TOTAL - Scar of 101- 106 —e•
109
NEW RESIDENTIAL
PRIVATELY OWNED
PUBLICLY
OWNED
NONHOUSEKEEPING
BUILDINGS
H
Nsnbr of
Valuation
Numbs,
of
Vskao,r a at
No.
B,d)nlings
Rooms
da
Bu9gs
commu.9on
Om teals
ROOMS
constructon
pryt cases
Sal
I fbl
(cI
Id)
b)
If)
(9)
Hotels, motals, and tourist cablro
(transient accommodations; oniy)
213
1
46
1,275.ODO
Other nnrdousekeepan Shaffer
21
NEW NONRESIDENTIAL
PRIVATELY
RED
■ Y SD
BUILDINGS
Item
Number
Valuation of
Number
Vehnikn of
No.
Of
cOrsuucuon
of
construction
buedirlgs
drat cant
buldkps
daft cants
Is)
(b)
(d
Id)
laf
Amnaement. social, end mcreetbnef
31
Churches end other mK&w
31
InduarW
Parking aweass l and open decked)
321
Service stations and repair garages
Hospitaft and hatltuliprW
Offices, banks, and professional
Public works end udRueg
Schools end other ock"lorsl
tares end wnonw
Other nonresidentlal bUYdkrge
I
trucfum oUw
ADDITIONS,
PRIVATELY
OWNED
PUBLICLY
OWNED
ALTERATIONS, AND
CONVERSIONS
Number
Vekutlon of
Number
Vekstian of
of
costuctlm
of
aommwtlon
bridkps
daft cerb
bUAdkpe
O n t cab
Isl
Ion
(c)
(d)
W
Realdemiel - CYealfy additions of
aril cagnmw Inbn1435.
11
25,458.00
Nonreddentiel end nonfowekeepirq
43
6
38,900.00
Addimas of reeklemhl gapes ad carports
(etnchad and dwaehem
1
36 M9
EYICe- - PLEASE CONTINUE ON REVERSE SIDE �►
Total Permits 61 Valuation $1,881,394.00
«>
DEMOLITIONS AND
PRIVATELY OWNED
RAZING OF
BUILDINGS
hem
Number of
Number of
No.
Building!
Nousinp
Build Inge
Houang
oohs
Mats
lal
Ib)
Icl
Id)
N1
Single - familY Musa (attached aM detached)
645
Two-frNy bu
Three -end lotw-farnity Wldng,
647
Fhnrori * family bead
All other bul and structures
RMWOMM INDIVIDUAL PERMITS AUTHORIZING CONSTRUCTION VALUED AT •500,000 OR MORE
please provide the following information for each pemnh e,thmi irog 1500,000
canstrutticn valued at or more
entered in sections I though N.
Item
No.
Owner-
Number of
from
Description
Name and addrns
ship
Valuation of
aK.
r btAld rof
Owner or bWlda!
chalk()()
QMr pMd
cOmh cents
Hun
pulldlrp
I —IV
one
units
Iel
Ibl
Itl
Id)
lei
I11
I 1
Kind of Wilding
Flagship Properties
-_
Sheedd1nsa - --- --
RT -3,_ Box 255A _— _---_
❑Publk
- ----
Montevidio 265
11
1 5 7 E
$ 1.275.000
Kkrtl of dratllrq
------------------
❑Privra
— - _
Shs add ev
0
Kind of buidlrq
__ —_----
❑pmeta
------------ —__ —_
She eddraa
-
❑Pubic
-
e
Kkrtl of I.reby
-------------------
--
❑Pdvab
' - - - ---
sa..aa..a
----- ------
❑orbit
------ ---- - --- --
1
KIM of Midkp
_ ----- — ---------- — -----
❑Pmeb
Sb adbaw
1
KIM of WgdkV
_— ------- ----
❑Prlvm
_
❑Pubes
1
Kb of MiMg
❑Pubes
1
— __-- -------- ___
❑Pmt
1
rz.�vrrtv
of Wkkv
--------
❑Prlveta
1
Am Teal aaa era of awl assn eaa �r�q Mwledhalai a7 ❑ No ❑ Yea — 711a gfva edWtlorW kgmml jon in oorrurrelrb.
Narne of person to mitaot ragrdMrg teYa report
Tslephata
Title
'area code
Mumbr
Extension
Official
uw I�san
9
0
P4VXIVG
L
u
•
Subdivision 1: Statutory Parking privileges for the physically
handicapped shall be strictly observed and enforced. Police
officers and citizen enforcement volunteers are authorized to tag
vehicles that are in violation of such statutory privileges on
either public or private property.
A. CITIZEN ENFORCEMENT PROGRAM
Upon completion of the required training, citizen
volunteers may issue citations to persons violating
statutory parking privileges for the physically
handicapped. Citizen volunteer training and enforce-
ment shall be done under the direction of the Chief
of Police.
0
ORDINANCE NO. 95 -151, 2ND SERIES
PUBLICATION NO.
AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AMENDING
SECTION 12.20 OF THE HUTCHINSON CITY CODE BY DELETING CERTAIN
SUBDIVISIONS AND ADDING THERETO AND ADOPTING BY REFERENCE, CITY
CODE CHAPTER 1 AND SECTION 2.99 WHICH, AMONG OTHER THINGS, CONTAIN
PENALTY PROVISIONS.
THE CITY OF HUTCHINSON ORDAINS:
Section 1. City Code, Sec. 12.20, Subd. 2(d) and (e) are
hereby amended as follows:
D. It is the intent of this chapter that a paper copy
of the Final Plat go to the Planning Commission and
City Engineer for review and to the Council for
action. When the paper print e f the Final Plat has
E
When the final Plat has been approved by the
Council, the >.develover shall <then cause ::the
Section 2. City Code Chapter 1 entitled "General Provisions
and Definitions Applicable to the Entire City Code Including
Penalty for Violation" and Section 2.99 entitled "Violation a
Misdemeanor" are hereby adopted in their entirety, by reference, as
though repeated verbatim herein.
Section 3. This ordinance shall take effect upon its adoption
and publication.
1995. Adopted by the City Council this day of ,
Attest:
Gary D. Plotz
City Administrator
Published in the Hutchinson
First reading:
Second reading:
Leader:
E
u
Resolution No. 10491
RESOLUTION TO NAME PARK IN THE WAGNER ADDITION JUNIOR COMMUNITY
WOMEN PARK
WHEREAS, The City of Hutchinson has received financial donations from many fine
institutions over the years, and
WHEREAS, the Junior Community women membership have been consulted and agreed
to adopt this park; and
WHEREAS, the Junior Community women have pledged future support to develop this
park land.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
. HUTCHINSON, MINNESOTA:
1) That the Hutchinson City Council hereby recognizes and appreciates the support of the
Hutchinson Junior Community Women, and the recognize their effort, names the park located
along Goebel Street Junior Community Women Park.
Adopted by the City Council the 12th of June, 1995.
ATTEST:
Gary D. Plotz
City Administrator
0
Mayor
4 - /�3<3)
ar 31 tees
Dear Hutchinson City Council,
We are writing to request the use of Library Square on Friday evening, August ltfth
for a drama performance by a group from our seminary in Sioux Falls, SD. The troupe "Shins"
consists of sir talented college students from Canada and the US. Their performance Is a mix of
dynamic high energy musk and fast moving, hllartouiy funny theater. The reports that we have
received about the troupe btchtde high praise for their creative approach and style.
The troupe has a set that will easily adapt to the dimensions of the outdoor stage In the square.
They will need at least 2 20 amp circuits within 30 feet of their sound console. From the looks of the
stage area, electrical Is not a problem.
We would appreciate if the Parks Dept could provide seating as they have done for some of
the past events that have taken place there In the summer thin
Thank you for your consideration of this matter. We would appreciate confirmation/denial
of this request at your earliest convenience as N this doesn't work we will be needing to seek another
location In the City to accomadate them.
Sincerely,
Pastor Chuck Carlson
Bethany Baptist Church
S00 Grave Street
Hutchinson, MN 55350
0
r-
L_
Clothing Concepts, Inc
off-prlee apprrd marketing
10037 W. 87th Street
Overland Park, Kansas 66212
May 24, 1995
Licensing Dept.
City of Hutchinson
City Center
111 Hassan St. S.E.
Hutchinson, MN 55350 -2522
Attn: Marilyn
MAY 3 0 IM
Telephone: 913 888 3853
Fax: 913 888 39%
Dear Marilyn: RE: Clothing Concepts
Thank you for your help on the telephone last week.
Enclosed is our check for $25.00. Our sale is scheduled
for July 21, 1995 at the Fairgrounds in Hutchinson. We will
be selling men's and ladies' sportswear.
Believe you have all of the other information on our company.
If anything further is required, please let us know.
MJP
Check
Cordially,
Clothing Concepts, Inc.
J-D,
MEMORANDUM
June 9, 1995
TO: Mayor & City Council
FROM: Marilyn J. Swanson, Admin. Secretary
:. ► yl ; ..:.► • : • 1.1I ecImIteleto ._ in NEW
An investigation of Clothing Concepts, Inc. was performed on March 9, 1994, and the company was
given a favorable recommendation by Lt. Ron Kirchoff.
• Since that time, Clothing Concepts has conducted three retail sales of men's and women's
sportswear within the City of Hutchinson. To the best of my knowledge, there have been no
complaints regarding their business operation.
cc: Lt. Ron Kirchoff
0
4 JD.
C
June 8, 1995
Hutchinson Technical College would like to have an auction prior to
July 1. They have asked if the city would like to participate and
also be the agency to solicit quotes. While the college had
promoted last year's auction they do not have the time with the
pending merge with the state system to take care of this item.
I have solicit quotes from Fahey and Hotovec. Fahey, among other
things, reported he was booked on such short notice. Hotovec did
say he could work the 'auction into a- J=i:�, 29 afternoon and evening
schedule.
We would request council approval to conduct the auction at the
City Garage on Thursday June 29 to dispose of the city's excess
equipment and equipment which has been replaced.
0 Ciry Center
l I I Hassan Street SE
Hurchinson. MN 55350 -2522
(612) 587 -5151
Far(612)234 -4240
Parks & Recreation
900 Harrington Street SW
Hutchinson, dIN 55350 -3097
(612) 587 -2975
Fu (612) 234 -4240
- Pnnred in yen'( led pa per -
Police Services
10 Franklin Street SW
Hutchinson, MN 55350 -2464
(612) 587 -2242
Far(612)587 -6427
•
i
•
DAVID B. ARNOLD
STEVEN A. ANDERSON
G. BARRY ANDERSON'
STEVEN S. HOGE
LAURA K. FRETLANO
DAVID A. BRUEGGEMANN
PAUL O. DOVE"
RICHARD G. McGEE
CATHRYN D. REHER
G11.iA ., c.gVnr
9RFTT O. ARNOLO
•WSJ IY 1En.S .X. .C. I...
ARNOLD. ANDERSON & DOVE
PROFESSIONAL LIMITED L' C L11Y PiR'NE4S.IP
ATTORNEYS AT LAW
101 PARK PLACE
HUTCHINSON, MINNESOTA 55350 -2563
(6121 587-7575
FAX 1612587 -4096
RESIDENT AT—ORNEY
G. BARRY ANDERSON
June 8, 1995
Mr. Gary Plotz
City Administrator
Hutchinson City Center
111 Hassan Street SE
Hutchinson, MN 55350 -2522
RE: Settlement Agreement
our File No. 3188 -94259
Dear Gary:
RECEIVED
JUN 8 1995
CITY OF HUTCHINSON
OF COUNSEL
RAYMOND C. LALLIER
JANE VAN VALKENBURG
5861 CEDAR LAKE ROAD
MINNEAPOLIS, MINNESOTA 55416
61 21 545 -9000
FAX IS 21 545-1793
°^ SOUTH FOURTH STREET
PRINCETON. MINNESOTA 55371
16121 399 ?214
FAX 16121 3835506
Pursuant to the request of Ken Merrill and others, I am enclosing
herewith a proposed Settlement Agreement by and between Neil
Wagner, the City's liquor store manager, and the City of
Hutchinson.
For your information and for the information of the City Council,
this issue arises out of City Council Resolution No. 10109, a copy
of which is attached to this correspondence. Acting on the advice
of the League of Cities, the City adopted what I consider to be a
performance based compensation system perfectly appropriate under
state law for compensating a liquor store manager responsible for
handling an enterprise fund. However, our auditors have picked on
an Attorney General's opinion of some years ago which seem to
indicate that such "incentive" compensation packages are not
appropriate. While I do not have a copy of the opinion in front of
me, my recollection is that the Attorney General was concerned over
the possibility of abuse of such a system.
Regardless, given the concerns expressed by the auditor, and given
the fairly modest amounts of money involved in this matter, the
City Finance Director and the undersigned were of the opinion that
it made no sense for the City to run even the relatively remote
risk that the arrangement might be challenged and the employee, as
I understand it, was agreeable to going back to a more traditional
system.
Gary Plotz
June 8, 1995
page 2
0
Accordingly, I have drafted an agreement which should be considered
by the City Council at Monday night's meeting. I believe the
agreement is self explanatory. Please note that I have not
provided for the employee classification nor salary because I am
uncertain as to these issues. However, I have set the agreement up
so that information can simply be filled out and the agreement will
then be in a posture to be executed.
For your information, I have also included a copy of the financial
information provided to me by Ken Merrill regarding employee
performance.
If you have any questions in connection with the foregoing, please
advise.
Thank you. Best regards.
Very truly yourA, n
& YpVE P.L.L.P.
0
G. A471erson
GBA /es
•
• SETTLEMENT AGREEMENT
This Settlement Agreement is made and entered into by and between
the City of Hutchinson, a Minnesota municipal corporation, and Neil
Wegner, the Manager of the Hutchinson Liquor Store, this day
of June, 1995.
1. The City of Hutchinson, a Minnesota municipal corporation
(herein after "Hutchinson ") , owns and operates a municipal
liquor dispensary pursuant to state law identified as the
"Liquor Hutch ";
2. Neil Wegner (herein after "Wegner ") is employed by Hutchinson
as the manager of the Liquor Hutch;
3. By resolution dated December 14, 1993 and otherwise identified
as Resolution No. 10109, the City of Hutchinson proposed to
pay the liquor store manager additional compensation based on
performance;
4. Auditors for the City of Hutchinson have raised concerns that
said payment, rather than considered to be performance based
compensation, may in fact be a form of incentive based
compensation disapproved by a non- binding advisory Attorney
General's opinion;
5. Hutchinson disputes the claim that said compensation is not
appropriate but the parties, to avoid even the possibility of
concerns, had agreed to enter into a written settlement
agreement to resolve potential claims that Wegner may have
against the City for payment of amounts called for under
Resolution No. 10109, the employee job description or
otherwise.
NOW THEREFORE IN CONSIDERATION OF THE MUTUAL PROMISES SET FORTH
HEREIN AND FOR OTHER GOOD AND VALUABLE CONSIDERATION THE PARTIES
HERETO AGREE AS FOLLOWS:
1. Additional Payments. As and for additional compensation,
Hutchinson agrees to pay to Wegner the sum of $5,359.55 which
sum represents additional compensation owed pursuant to
Resolution No. 10109 and Wegner agrees to accept said sum in
full satisfaction of any and all claims for additional
compensation otherwise due under Resolution No. 10109, the
employee job description or otherwise.
2. Job Classification and Pay Grade. Hutchinson agrees that
Wegner's position with the City will be classified as follows
• with the following base pay:
Wegner shall be entitled to any and all benefits otherwise
available to full time employees of the City of Hutchinson
including but not limited to such compensation increases as
are authorized by the City Council, fringe benefits as
provided by Hutchinson and otherwise.
3. Release. In consideration of the foregoing, Wegner does for,
and on behalf of himself and his heirs, executors,
administrators, successors and assigns, agree to and hereby
does release, quit and forever discharge Hutchinson of and
from any and all manner of action or actions, suits, claims,
damages, judgements, levies and executions, known or unknown,
liquidated or unliquidated, fixed, contingent, direct or
indirect, which Wegner ever had, ever has or ever can, shall
or may have or claim to have against Hutchinson arising out of
the compensation package previously afforded to Wegner
including, without limiting the generality of the foregoing,
any and all claims which arise out of Resolution No. 10109,
the employee job description or otherwise. Wegner understands
and agrees that payment and acceptance of the consideration
recited above is in full, final and complete compromise,
settlement and satisfaction of disputed claims. The same does
not constitute and shall not be construed as, any admission of
liability or fault whatever, and there are no covenants,
promises, undertakings or understandings outside of this
agreement other than as set forth above.
In witness thereof, the undersigned have executed these presents
this day of June, 1995.
CITY OF HUTCHINSON
By:
ATTEST:
Gary D. Plotz, City Administrator
Neil Wegner:
Its
L
Form No. 235-"rue e e
RETAIL "ON SALE"
:350.00
btate of lllinntootap —�
COUNTY OF. _ - ._ -' City oP_ Hutchinson .-- ._._..
To the City Cosaeu - City ........et...Hutehinson
_........_... _.._...._..._..._ ._....ef the .. ...............................
_ .................................. . ........ ..................... .... State of Minnesota:
Bradley Larson .
Ilerrby aPPi..l1!!_Jar a ifawse tar ih. farm ol- ._....._.__ -0a�yaaa --" — � ..
from the _....._f irscday ol-- -- 'yaY— .— .— .— .�- - --. IB_:5., b sell
At Retail Only, N0n•Int0Xk&tiD9 Mdt I3gWM
w the same Oro ds;lwed by law, for omsurnptioa "ON^ than oarbais prnwbse in
__........._ ... ..........._.._...__......_... . ..._.City — ....... Hutchiuoo
dwribed as followr, to-utt:.. .._.
Little Crow Bowling Lanes
(Hutch Bowl)
at which ptaue said O5 .._.sprraw Y badaiu o% HO�H5.61II1.- .d11.eX— ._. - -_ _
_....__........_......_..... _.._.
and to that snd reprernt —and state...ae follow
That sold applicant .._.- Ss...a...___.__.. —__ .......a1 am United Swes; of load -oral oharactw
and repuG; and ha! ._...attatnad As ale of 01 years; the
astabiishmad for which the license wiU be issued if this application is irastad.
That rue a d"fadarar of each ■wa-tawudoa"f malt liquors has say aereerehip, in whole or in pact,
is sold business of said appliewa —or any interest therein;
That said appUeaftt.._.rwake.._..thU application puremM and subject to all. As law of the &We of
Min"aaa. and the wdiwanaes and re fuiattans o1 said— ..._iiq.._. ._
.appiicabte thereto, which are hereby made a part hereof, and hereby aMe—JO ebwvso aced Obey we sanw;
as.. rar
w
� a w. w 1
aeconosesd approval.
Driver's lcienas I.D. required for purchase.
Each applicant further states that --he is we now the holder of, nor has Jar made application for,
nor does Jar intend to make application for a Federal Retail Dealer's Special tar stamp for the sale of
intoxicating liquor.
L =2�
r,'TV OF HUTCHINSON
/P rjs 18 S
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P. 0. dddreasca�._._..—
Aw754-11 117kl 55�Sd
4 -&,
PUBLISHED IN THE HUTCHINSON LEADER
TUESDAY, MAY 30, 1995
PUBLICATION NO. 4823
NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENTS TO THE
DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4
AND ON A PROPOSED TAX INCREMENT FINANCING PLAN
CITY OF HUTCHINSON, MINNESOTA
NOTICE IS HEREBY GIVEN that the City Council of the City of
Hutchinson (the "City") will hold a public hearing on proposed amendments (the
"Amendments ") to a Development Program (the "Program ") for Development
District No. 4 of the City (the "Development District'), and on a proposed Tax
Increment Financing Plan of the City at 6:00 p.m. on Monday, June 12, 1995, in the
Council Chambers at the Hutchinson City Center, Hutchinson, Minnesota.
Under the proposed Amendments, a portion of the property located at
First Avenue NE and Bluff Street in the City (the "Additional Property") would be
included in the Development District, and the City would be authorized to
undertake certain activities in connection with the development or redevelopment
of Additional Property. The Financing Plan will establish a tax increment financing
district (the "Tax Increment District') and provide for the payment of certain costs
incurred directly by the City related to the development or redevelopment of the
property included in the Development District including the Additional Property or
the reimbursement to owners of such property of certain costs paid by private parties
in connection with the development or redevelopment of such property.
Accompanying this notice is a map showing the area proposed to be
included in the Tax Increment District which is the area from which tax increments
from the Tax Increment District may be collected, and a map showing the area to be
included in the Development District if the Amendments are approved, which is
the area in which tax increments from the Tax Increment District may be expended.
All who wish to be heard as to the Amendments and the Financing
Plan will be given an opportunity to express their views at the time of the public
hearing or may file written comments with the City Administrator prior to the
public hearing.
By /s/ Gary D. Plotz
City Administrator
0
\ k�
0
0
Ll
• NEW YORK
WASHINGTON, D. C.
DENVER
ORANGE COUNTY. CA
•
•
LONDON
BRUSSELS
HONG KONG
Mr. Kenneth Merrill
City of Hutchinson
111 Hassan Street
Hutchinson, MN 55350
DOBSEY & WHITNEY
PMFZSSIONeL ].IIIITZD WMILITY FIW."RSHIY
PILLSBURY CENTER SOUTH
SEATTLE
220 SOUTH SIXTH STREET
ROCHESTER, MN
MINNTEAPOLIS, MINNESOTA 66402.1488
(612) 3402600
BILLINGS
FAX (812) 3 28
GREAT PALLS
MISSOULA
JEROME P. Onlx=AN
DES MOINES
(614 94629M
FARGO
June 8, 1995
Re: Proposed TIF District No. 9
(Simonson Lumber Company Redevelopment)
Dear Ken:
RECEIVED
J'J `I 9 1995
CITY OF HUTCHINSON
Enclosed are the following items relating to TIF District No. 9:
1. Amendment to Development Program for
Development District No. 4;
2. Resolution Approving the Amendment to
Development Program and TIP Plan for TIF
District No. 9; and
3. Resolution eliminating a parcel to be
included in TIF District No. 9 from the
Shopko TIF District.
Should you have any questions or comments, please give me a call.
JPG:cmn
Enclosures
cc: Mark Ruff
Yours truly,
f
i
Jero4ne . Gilli an
E
AMENDMENT TO
DEVELOPMENT PROGRAM FOR
DEVELOPMENT DISTRICT NO. 4
(TAX INCREMENT DISTRICT NO. 9)
CITY OF HUTCHINSON, MINNESOTA
APPROVED JUNE 12, 1995
•
AMENDMENTTO
DEVELOPMENT PROGRAM FOR
DEVELOPMENT DISTRICT NO. 4
(TAX INCREMENT DISTRICT NO. 9)
A. Background. The City of Hutchinson has pursuant to Minnesota
Statutes, Sections 469.124 to 469.134 (the "Development District Act "), approved a
development program (the "Development Program ") for Development District No.
4 (the "Development District') in the City. Property presently in in
Development District No. 4 includes property located in the Central Business
District of the City, the shopping center located in the southern portion of the City
portions of the industrial park in the City, property adjacent to the Central Business
District of the City on which a senior housing facility is located and property located
in the southern portion of the City on which a townhouse development is located.
B. Amendments to Development Pro am. The City amends the
Development Program pursuant to the Development District Act to include an
additional parcel in the Development District together with all adjacent and internal
rights -of -ways appurtenant thereto (the "Additional Property"), and to authorize the
City to undertake activities with respect to the development and redevelopment of
the Additional Property and an adjacent parcel (Lot 3, Block 1 of the Hutchinson
Downtown Redevelopment Plat) which is already included in the Development
District. The legal description of the parcel to be included in the Development
District is as follows:
Block 45 of the North 1/2 of Hutchinson
To finance expenditures to be undertaken in accordance with the Development
Program in the redevelopment of the Additional Property, the City is in connection
with this Amendment approving the Tax Increment Financing Plan for Tax
Increment Financing District No. 9, which includes the Additional Property and an
adjacent parcel which is already included in the Development District in a tax
increment financing district. Simonson Lumber of Hutchinson, Inc., the owner of
the Additional Property, is proposing to demolish an existing warehouse on the
Additional Property and to construct on property in Tax Increment Financing
District No. 9 an approximately 6,000 square foot retail facility and an approximately
11,000 square foot warehouse. Certain costs of such redevelopment are proposed to
be paid or reimbursed from tax increment to be derived from Tax Increment
Financing District No. 9.
C. Statement and Finding of Public Purq2ose. The City has found
that there is a need for redevelopment of the Additional Property based upon the
following conditions:
•
• 1. The Additional Property contains buildings or
improvements which, by reason of dilapidation,
obsolescence, overcrowding, faulty arrangement or design,
lack of ventilation, light and sanitary facilities, excessive
land coverage, deleterious land use or obsolete layout, and
a combination of these and other factors is detrimental to
the safety, health, morals or welfare of the community.
2. Redevelopment of the Additional Property requires active
promotion, attraction, encouragement and development
of economically sound industry and commerce through
government action for the purpose of preventing the
emergence and continuation of blight and the occurrence
of conditions requiring redevelopment.
3. It is found that there is a need for redevelopment of the
Additional Property to provide employment
opportunities, to improve the tax base and to improve the
general economy of the state.
Therefore, the City has determined to include the Additional Property
in the Development District to provide impetus for private development and
• redevelopment, to maintain and increase employment opportunities, to provide
infrastructure to serve citizens and employees of the City, to utilize existing land for
potential redevelopment and to provide other facilities as are outlined in the
Development Program.
The City has also determined that proposed redevelopment of the
Additional Property to be assisted or owned by the City would not occur solely
through private investment in the foreseeable future. The City finds that the
welfare of the City as well as the State of Minnesota requires active promotion,
attraction, encouragement and redevelopient of economically sound industry and
commerce to carry out its stated public purpose objectives.
The City has also determined that any tax increment financing plans to
be approved with respect to the Additional Property will be consistent with the
Development Program; and that the tax increment financing plans will afford
maximum opportunity, consistent with the sound needs of the City as a whole, for
the development or redevelopment of the Development District by private
enterprise.
D. Statement of Objectives. The City determines that this
modification of the Development District will provide the City with the ability to
achieve certain public purpose objectives with respect to the Additional Property not
•
-3-
otherwise obtainable in the foreseeable future without City intervention in the
normal redevelopment process. The City seeks to achieve the following program •
objectives, in addition to any previously stated objectives:
1. Work cooperatively with other local organizations, the
Hutchinson Community Development Corporation and
other governmental agencies in promoting any projects
which will improve the City infrastructure, increase
employment, and add to the tax base of the City.
2. Promote and secure additional employment opportunities
within the Development District, thereby improving
living standards, reducing unemployment and the loss of
skilled and unskilled labor.
3. Assist and /or promote small businesses to expand.
4. Encourage local business expansion, improvements, and
development whenever possible.
5. Create a desirable and unique character within the
Development District through design quality in new and
remodeled buildings.
6. Replace or upgrade existing sub - standard buildings to •
maintain and increase the tax base of the City.
7. Encourage and provide maximum opportunity for private
redevelopment of existing areas and structures which are
compatible with the Development Program.
E. List of Developm nt ' nd Redevelopments. To implement the
established objectives, the City has utilized and plans to utilize a number of public
and private financing tools. Funding of the necessary activities and improvements
with respect to the Additional Property are expected to be accomplished through tax
increment financing, land sale income, revenue bonds, general obligation bonds,
federal and state grants, tax credits, and private financing. Specific budgets will be
reviewed in a public forum. Any activities which include the use of tax increment
will be outlined in the budget of each tax increment financing plan.
F. Environmental Controls. It is anticipated that no
redevelopment or development within the Additional Property will present major
environmental concerns. All city actions, public improvements and private
-4- 0
• development will be carried out in a manner that complies with applicable
environmental standards.
G. Open Space to be Created. Any open space within the Additional
Property will be created in accordance with the development controls of City.
H. Public Facilities to be Constructed. Public facilities constructed
within the Additional Property will be financially feasible and compatible with the
City's long range development plans. Such facilities may include street, utilities,
storm sewers and drainage improvements.
I. Proposed Reuse of PropeM. The City may acquire all or portions
of the Additional Property in connection with the redevelopment and development
thereof.
J. Relocation. The City accepts its responsibility for providing for
relocation pursuant to Section 469.133 of the Act. If relocation is necessary,
provision will be made in accordance with Minnesota Statutes, Sections 117.50
through 117.56, inclusive.
K. Administration of Development District. Maintenance and
operation of the public improvements is the responsibility of the administrator of
• the Development District. Each year the administrator will submit to the City
Council the maintenance and operation budget for the following year. The
administrator administers the Development District pursuant to the provisions of
Section 469.131 of the Act, provided, however, that such powers may only be
exercised at the direction of the City Council. No action taken by the administrator
shall be effective without authorization by the City Council.
u
The City has not created and does not anticipate the need to create an
advisory board to advise the City Council on the planning, construction or
implementation of the activities and improvements outlined in the Development
Program.
L. Rehabilitation. Owners of properties included within the
Additional Property may be encouraged to rehabilitate their properties to conform to
the applicable state and local codes and ordinances, as well as any design standards
implemented by the City. Owners who purchase portions of the Additional
Property from the City may be required to rehabilitate their properties as a condition
of sale. The City may provide such rehabilitation assistance as may be available
from federal, state or local sources.
162
�J
•
•
STATE OF MINNESOTA)
COUNTY OF MCLEOD )
CITY OF HUTCHINSON )
I, the undersigned, being the duly qualified and acting City
Administrator of the City of Hutchinson, Minnesota, do hereby certify that I have
carefully compared the attached copy of:
EXTRACT OF HUTCHINSON CITY COUNCIL MINUTES
MONDAY, JUNE 12, 1995
with the original file in the Office of the City Administrator, and the same is a full,
true and complete copy thereof.
WITNESS my hand as such City Administrator and the Corporate Seal
of the City this day of 1995.
(SEAL)
Gary D. Plotz, City Administrator
Councilmember introduced the following •
resolution, the ready of which was dispensed with by unanimous consent, and
moved its adoption:
RESOLUTION NO. 10492
RESOLUTION APPROVING AN AMENDMENT TO
DEVELOPMENT DISTRICT NO. 4 AND TAX
INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 9
BE IT RESOLVED by the City Council (the "Council') of the City of
Hutchinson, Minnesota (the "City"), as follows:
Section 1. Recitals.
1.01. It has been proposed that the City modify the Development
Program for Development District No. 4, establish Tax Increment Financing District
No. 9 and approve and adopt the Tax Increment Financing Plan relating thereto, all
pursuant to and in accordance with Minnesota Statutes, Sections 469.124 to 469.134, •
inclusive, as amended, and Minnesota Statutes, Sections 469.174 to 469.179,
inclusive, as amended.
1.02. The Council has investigated the facts and has caused to be
prepared an amendment (the "Amendment') to the Development Program (the
"Program ") for Development District No. 4 ( "Development District No. 4 ") and a
proposed Tax Increment Financing Plan (the "Plan") for Tax Increment Financing
District No. 9 (the "Tax Increment District ").
1.03. The City has performed all actions required by law to be
performed prior to the approval of the modification of the Program by the
Amendment and the approval of the Plan, including, but not limited to,
notification of McLeod County and School District No. 423 having taxing
jurisdiction over the property to be included in the Tax Increment District,
notification to the McLeod County Commissioner who represents the property to be
included in the Tax Increment District, a review by the City Planning Commission
of the proposed Amendment and Plan, and the holding of a public hearing upon
published notice is required by law.
• Section 2.
an(i hhn Fchahlichmon4
Amendment and Plan Relating Thereto.
2.01. The Council hereby finds that the Tax Increment District is a
redevelopment district.
2.02. The Council hereby finds that the modification of Development
District No. 4 by the Amendment and the establishment of the Tax Increment
District by the Plan and the approval of the Amendment and Plan relating thereto,
are intended and, in the judgment of this Council, the effect of such actions will be,
to provide an impetus for redevelopment of blighted or obsolete property in the
City, to increase employment and otherwise promote certain public purposes and
accomplish certain objectives as specified in the Program as amended by the
Amendment and the Plan.
2.03. The Council further finds that the proposed development, in the
opinion of the Council, would not reasonably be expected to occur solely through
private investment within the reasonably foreseeable future and, therefor, the use
of tax increment financing is deemed necessary; that the Plan conforms to the
general plan for the development or redevelopment of the City as a whole; and that
the Plan will afford maximum opportunity consistent with the sound needs of the
• City as a whole, for the redevelopment of Development District No. 4 by private
enterprise.
2.04. The Council further finds, declares and determines that the City
made the above findings stated in Section 2 and has set forth the reasons and
supporting facts for each determination in writing, attached hereto as Exhibit A.
3.01. The Amendment and Plan are hereby approved and adopted, and
shall be placed on file in the office of the City Administrator.
3.02. The City staff, the CiWs advisors and legal counsel are authorized
and directed to proceed with the implementation of the Program as amended by the
Amendment and the Plan and for this purpose to negotiate, draft, prepare and
present this Council for its consideration all further plans, resolutions, documents
and contracts necessary for this purpose.
Section 4. Further Procedures.
4.01. The City Administrator is authorized to request certification for
the Tax Increment District from the McLeod County Auditor's Office and to file the
•
-2-
Plan and Program with the Minnesota Department of Revenue pursuant to •
Minnesota Statutes, Section 469.175, subdivision 2.
Dated: June 12, 1995.
Mayor
0
(SEAL)
City Administrator
The motion for the adoption of the foregoing resolution was duly
seconded by Councilmember
thereon, the following voted in favor thereof:
and upon vote being taken
•
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted, and was signed by
the Mayor which signature was attested by the City Administrator.
-3- •
• EXHIBIT A
TO
RESOLUTION NO. i n49�
The reasons and facts supporting the findings for the adoption of the
Tax Increment Financing Plan for Tax Increment Financing District No. 9 as
required pursuant to Minnesota Statutes, Section 469.175, subdivision 3 are as
follows:
1. Finding that the Tax Increment District is a redevelopment
district as defined in Minnesota Statutes, Section 469.175, subd. 10.
The Tax Increment District consists of two parcels of property. Parcels
consisting of more than 70 percent of the area are occupied by buildings and
improvements. The buildings have been reviewed by the City Building Official
who has determined that more than 50 percent of the buildings are structurally
substandard to a degree requiring substantial renovation or clearance.
2. Finding that the proposed development, in the opinion of the
Council, would not occur solely through private investment within the reasonably
foreseeable future and, therefore, the use of tax increment financing is deemed
• necessary.
Due to the high cost of redeveloping the property in the Tax Increment
District, the proposed development is only economically feasible through the use of
tax increment financing assistance.
3. Finding that the Plan conforms to the general plan for the
development or redevelopment of the municipality as a whole.
The site is appropriately zoned. The Plan has been reviewed by the
Planning Commission and has been found to conform to the general development
plan of the City.
4. Finding that the Plan will afford maximum opportunity,
consistent with the sound needs of the City as a whole, for the development of
Development District No. 4 by private enterprise.
The establishment of the Tax Increment District will result in the
redevelopment of commercial property in the City by a private landowner and will
eliminate a blighting influence in Development District No. 4.
•
RESOLUTION NO. 10493
RESOLUTION APPROVING ELIMINATING A PARCEL
FROM THE TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 5
BE IT RESOLVED by the City Council of the City of Hutchinson,
Minnesota (the "City ") as follows:
1. The City acting pursuant to Minnesota Statutes, Sections 469.124
to 469.134, has previously approved the establishment of Development District No.
5 in the City (the "Development District "), and approved a Development Program
and amendments thereto (as so amended, the "Program ") for the Development
District. In order to finance the costs of the Program the City has approved a Tax
Increment Financing Plan (the "Financing Plan"), which establishes tax increment
financing district which has been designated by the City as Tax Increment Financing
District No. 5 ( "District No. 5 "). It has been proposed that the City eliminate a parcel
whose legal description is Lot 3, Block 1 of the Hutchinson Downtown
Redevelopment Plat (the "Parcel ") from District No. 5. The current net tax capacity
of the Parcel equals or exceeds the original net tax capacity of the Parcel which is
used for determining tax increment revenue from the Parcel.
2. The elimination of the Parcel from the District is hereby
approved and the City Administrator is hereby directed to notify the McLeod County
Auditor of the elimination of the Parcel from District No. 5.
Passed by the Council this 12th day of June, 1995.
City Administrator
•
Mayor
S-��
0
Tax Increment Financing Plan
for
Tax Increment Financing District No. 9
(A Redevelopment District)
City of Hutchinson, Minnesota
E
Drafted: May 8, 1995
Adopted: June 12, 1995
Prepared by:
EHLERS AND ASSOCIATES, INC.
2950 Norwest Center
90 South Seventh Street
Minneapolis, MN 55402
(612) 339 -8291
0
5 —�
TABLE OF CONTENTS
TAX INCREMENT FINANCING PLAN
FOR
TAX INCREMENT FINANCING DISTINCT NO.9
Section I: Tax Increment Plan for Tax Increment Financing District No. 9 ................... 1
A.
Statutory Authority ...................... ...............................
1
B.
Statement of Objectives ................... ...............................
I
C.
Development District No 4 Overview ....... ...............................
1
D.
Description of Property in District No. 9 ...... ...............................
2
E.
Classification of the Tax Increment Financing District ..........................
2
F.
ProWM To Be Acquired ................. ...............................
3
G.
Estimate of Project Costs ................. ...............................
3
H.
Estimated Amount of Loan/Bonded Indebtedness ..............................
3
I.
Sources of Revenue ...................... ...............................
4
J.
Original Tax Capacity .................... ...............................
4
K.
Amount of Captured Tax Capacity .......... ...............................
4
L.
Duration of District No. 9 ................. ...............................
5
M.
Estimated Impact on Other Taxing Jurisdictions ...............................
5
N.
Modifications of the Tax Increment Financing District ..........................
5
O.
Administrative Expenses .................. ...............................
6
P.
Activity Required in Tax Increment Financing District ..........................
6
Q.
Limitation on Qualification of ProWrty in Tax Increment District
Not Subject to Improvement ......... ...............................
6
R.
Limitation on the Use of Tax Increment ...... ...............................
7
S.
Notification of Prior Planned Improvements ... ...............................
7
T.
Requirement for AWeements with the Developer . ...............................
7
U.
Assessment Agreements .................. ...............................
8
V.
Administration of District and Maintenance of the Tax Increment Account ..........
8
W.
Financial Reporting Requirements .......... ...............................
8
X.
Municipal Approval ..................... ...............................
8
Y.
County Road Costs ...................... ...............................
9
Z.
Reduction in State Tax Increment Financing Aid ..............................
9
EXHIBIT A Boundary Map of Tax Increment Financing District No. 9 ............... 10
EXHIBIT B Cashflow Analysis, LGA/RISTIFA Analysis and Base Value Analysis ...... 12
EXHIBIT C Qualifications of District No. 9 as a Redevelopment District .............. 13
4
i
•
Is
• TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 9
A. STATUTORY AUTHORITY
Within the City of Hutchinson (the "City ") there exist areas where public involvement is necessary to cause
development or redevelopment to occur. To this end, the City Council established Development District No.
4, pursuant to Minnesota Statutes, Section 469.124 through 469.134.
The City fares various existing land use problems and development needs that require corrective action
before development by private enterprise becomes financially feasible or desirable. The City is authorized
to establish a tax increment district pursuant to Minnesota Statutes, Section 469.174 to 469.179, as amended,
to assist in financing public costs related to this project Tax increments are derived only from the increased
amount of taxes which are paid on a parcel of property after the construction of a new structure on the parcel.
Tax increment districts encompass the parcels from which tax increments are paid for a period of time.
Below is the Tax Increment Financing Plan (the "Plan") for Tax Increment Financing District No. 9 ( "District
No. 9 "). Development District No. 4 includes the area proposed for District No. 9. A modification of the
Development Program for Development District No. 4 is contemplated in this Plan. The City reserves the
right to approve all or a portion of the property as proposed to be included in District No. 9 on the date of
the first public hearing, June 12, 1995.
B. STATEMENT OF OBJECTIVES
• District No. 9 currently consists of two parcels of land on property known as the Simonson Lumber Company
site. One parcel currently resides in the Shopko Tax Increment District and will be removed from the district
prior to its inclusion in District No. 9. It is anticipated that an old warehouse building will be demolished
and two new buildings, including a 6,000 square foot retail facility and a 11,000 square foot warehouse, will
be constructed in 1995 or early 1996 on the two parcels.
District No. 9 is expected to achieve many of the objectives set forth in the Development Program in regard
to land use including:
Correction of vacant, unused, underused and inappropriately used land.
2. Create a desirable and unique character within the Development district through design in
new and remodeled buildings.
• • I • . Ip►� • •' • /p • • d•I Y • y • • 101: /1W.11
Property to be Acquired - Selected property located within District No. 9 may be acquired
by the City and is further described in Subsection F of this Plan.
2. Relocation - Complete relocation services are available pursuant to Minnesota Statutes.
Chapter 117 and other relevant state and federal laws.
11
3. Upon approval of the developer's plan relating to the project and completion of the necessary
legal requirements, the City may sell to the developer selected properties it may acquire
within District No. 9.
4. The City may perform or provide for some or all necessary acquisition, relocation,
demolition, and required utilities and public streets work within District No. 9.
5. District No. 9 contains property zoned C -3, an appropriate status for the anticipated housing
units, as currently planned. All development in the area will conform to applicable state and
local codes and ordinances.
District No. 9 encompasses the parcels and all adjacent and interior right -of -ways as identified below:
Parcel 4 Legal Description
Block 45 of the North '/2 of Hutchinson
Lot 3, Block 1 of the Hutchinson Downtown Redevelopment Plat
The City reserves a right to approve all or a portion of the area of the parcel listed as designation for District
No. 9.
See the map in Exhibit A for further information on the location of District No. 9.
E. CLASSIFICATION OF THE TAX INCREMENT FINANCING DISTRICT •
The City, in determining the need to create a tax increment financing district in accordance with Minneso ta
Statutes Section 469.174 to 469.179, as amended, inclusive, finds that District No. 9 to be established is a
redevelopment district pursuant to Minnesota Statutes. Section 469.174, Subdivision 10 as defined below:
(a) "Redevelopment district" means a type of tar increment financing district consisting of a
project, or portions of a project, within which the authority finds by resolution that one of
the following conditions, reasonably distributed throughout the district, exists:
(I) parcels consisting of 70 percent of the area in the district are occupied by
buildings, streets, utilities, or other improvements and more than 50 percent of the
buildings, not including outbuildings, are structurally substandard to a degree
requiring substantial renovation or clearance; or
(2) The property consists of vacant, unused under used inappropriately used or
infrequently used railyards, rail storage facilities or excessive or vacated railroad
right -of -ways.
(b) For purposes of this subdivision, "structurally substandard" shall mean containing defects
in structural elements or a combination of deficiencies in essential utilities and facilities,
light and ventilation, fire protection including adequate egress, layout and condition of
interior partitions, or similar factors, which defects or deficiencies are of sufficient total
significance to justify substantial renovation or clearance.
C
• A building is not structurally substandard if it is in compliance with the building code applicable to
new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of
the cost of constructing a new structure of the same square footage and type on the site. The
municipality may find that a building is not disqualified as structurally substandard under the
preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of
the building, the average cost of plumbing, electrical, or structural repairs or other similar reliable
evidence. If the evidence supports a reasonable conclusion that the building is not disqualified as
structurally substandard, the municipality may make such a determination without an interior
inspection or an independent, expert appraisal of the cost of repair and rehabilitation of the
building..,
(c) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities or
other improvements until 15 percent of the area of the parcel contains improvements.
The two parcels have been investigated by staff and consultants and have been found to meet all requirements
of a redevelopment district. A complete report of the findings is located in Exhibit C of the Plan.
F. PROPERTY TO BE ACQUIRED
The City may acquire any or all of the parcels within District No. 9 including interior or adjacent street and
railway right -of -ways.
G. ESTIMATE OF COSTS
0 The estimate of public costs associated with District No. 9 are outlined in the following line item budget.
Estimate of Public Costs
Demolition, grading and other site preparation 75,000
Various Capital Improvements 7,500
Administrative costs 7.500
Total Estimated Costs: $90,000
Any funds to be expended for off -site improvements outside the boundaries of District No. 9, but within the
boundaries of Development District No. 4, would be less than 25 percent of total tax increment generated by
District No. 9, including administrative costs.
H. ESTIMATED AMOUNT OF LOAN/BONDED INDEBTEDNESS
It is anticipated that the City may issue a revenue bond, general obligation bond, or other type of obligation
in one or more series to finance public costs. The Project is expected to be financed with a limited revenue
(pay -as- you -go) note in the original principal amount not expected to exceed $75,000 with additional
increments to be paid to capitalized and other interest determined at the time of issuance. In addition, the
City expects to incur approximately $7,500 of capital improvement costs to be financed intemally and
secured with a revenue pledge from District No. 9, plus capitalized or other interest determined at the time
of issuance.
C,
J
I. SOURCES OF REVENUE •
The major source of revenue to be used to finance public costs associated with the public development
projects in Development District No. 4 is tax increment generated as a result of the taxation of the land and
improvements in District No. 9. Tax increment financing refers to a funding technique that utilizes increases
in valuation and the property taxes attributable to new development to finance, or assist in the financing of
public development costs. Additional sources of revenue may include, but are not limited to, investment
income and land sales. This does not preclude the City or the developer from using other funds, at its
discretion, to pay such costs.
ORIGINAL TAX CAPACITY
Pursuant to Minnesota Statutes Section 469.174, Subdivision 7 and Section 469.177, Subdivision 1, the
Original Net Tax Capacity (OTC) for District No. 9 is based on the value placed on the property by the
assessor in 1994 for taxes payable 1995. The tax capacity as certified is estimated to be $4,380 for taxes
payable in 1995. At the time that the construction is completed, the original tax capacity is expected to be
$4,615.
The original tax rate for District No. 9 will be 148.274 %, the tax rate for taxes payable in 1995.
Each year, the Office of the County Auditor will measure the amount of increase or decrease in the total tax
capacity of District No. 9 to calculate the tax increment payable to the City. In any year in which there is
an increase in total tax capacity in the tax increment financing district above the annual percentage of annual
increase, a tax increment will be payable. In any year in which the total tax capacity in District No. 9
declines below the original tax capacity, no additional valuation will be captured and no tax increment will
be payable.
The County Auditor shall certify in each year after the date the OTC was certified, the amount the OTC has
increased or decreased as a result of:
1. change in tax exempt status of property;
2. reduction or enlargement of.the geographic boundaries of the district;
3. change due to stipulations, adjustments, negotiated or court- ordered abatements;
4. change in the use of the property and classification; or
5. change in state law governing class rates.
K. AMOUNT OF CAPTURED TAX CAPACITY
Pursuant to Minnesota Statutes, Section 469.174 Subdivision 4 and Minnesota Statutes, Section 469.177,
Subdivision 2, the estimated Captured Net Tax Capacity (CTC) of District No. 9, upon completion of all
phases of the project, will annually approximate $7,585. The City requests 100 percent of the available
increase in tax capacity for repayment of debt and current expenditures. The original tax capacity and project
tax capacity are estimated at current market values and class rates to be the total amount when all
development is in place and uses of the property have changed.
Estimated Project Tax Capacity $12,200
less Original Tax Capacity (4,615)
Estimated Captured Tax Capacity $7,585 •
4
• L. DURATION OF THE DISTRICT
Pursuant to Minnesota Statutes Section 469.175, Subdivision 1, the duration of District No. 9 must be
indicated within the Plan. The duration of District No. 9 will be 25 years from payment of the first tax
increment expected in 1997. Thus, it is estimated that District No. 9, including any modifications of the Plan
for subsequent phases or other changes, would terminate at the end of the year 2022. The City does reserve
the right to decertify District No. 9 prior to the legally required date.
M. ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS
The estimated impact on other taxing jurisdictions assumes construction would have occurred without the
creation of District No. 9. If the construction is a result of tax increment financing, the impact is $0 to other
entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact
that the construction would not have occurred without the assistance of the City, the following estimated
impact of District No. 9 would be as follows if the "but for" test was not met:
BPACT ON TAX BASE
The estimates listed above display captured tax capacity when all construction is completed. The tax rates
are payable 1995 figures and tax capacities are the payable 1995 figures for all jurisdictions. District No. 9
will be certified under rates for tax year payable 1995.
In addition, the impact on School District No. 423 does not include the effect of state aids for education upon
school district funding.
N. MODIFICATIONS OF THE TAX INCREMENT FINANCING DISTRICT
In accordance with Minnesota Statutes. Section 469.175, Subdivision 4, any reduction or enlargement of the
• geographic area of the project or tax increment financing district, increase in amount of bonded indebtedness
to be incurred, including a determination to capitalize interest on debt if that determination was not a part of
ENTITY'S
CAPTURED
% OF CAPTURED
ENTITY
TOTAL NET
CAPTURED
TAX CAPACITY
ENTITY
TAX CAPACITY
TAX CAPACUX
TO ENTITY TOTAL
McLeod County
13,999,563
7,585
0.05%
City of Hutchinson
5,556,341
7,585
0.14%
School District No. 423
7,220,177
7,585
0.11%
TOTAL
IWACT
ON TAX RATES
11,247
The estimates listed above display captured tax capacity when all construction is completed. The tax rates
are payable 1995 figures and tax capacities are the payable 1995 figures for all jurisdictions. District No. 9
will be certified under rates for tax year payable 1995.
In addition, the impact on School District No. 423 does not include the effect of state aids for education upon
school district funding.
N. MODIFICATIONS OF THE TAX INCREMENT FINANCING DISTRICT
In accordance with Minnesota Statutes. Section 469.175, Subdivision 4, any reduction or enlargement of the
• geographic area of the project or tax increment financing district, increase in amount of bonded indebtedness
to be incurred, including a determination to capitalize interest on debt if that determination was not a part of
CURRENT
CAPTURED
POTENTIAL
ENTITY
TAX RATE
TAX CAPACTI Y
TAXES
McLeod County
.45024
7,585
3,415
City of Hutchinson
.41839
7,585
3,174
School District No. 423
.61174
7,585
4,640
Other
.00237
7,585
18
TOTAL
1.48274
11,247
The estimates listed above display captured tax capacity when all construction is completed. The tax rates
are payable 1995 figures and tax capacities are the payable 1995 figures for all jurisdictions. District No. 9
will be certified under rates for tax year payable 1995.
In addition, the impact on School District No. 423 does not include the effect of state aids for education upon
school district funding.
N. MODIFICATIONS OF THE TAX INCREMENT FINANCING DISTRICT
In accordance with Minnesota Statutes. Section 469.175, Subdivision 4, any reduction or enlargement of the
• geographic area of the project or tax increment financing district, increase in amount of bonded indebtedness
to be incurred, including a determination to capitalize interest on debt if that determination was not a part of
the original plan, or to increase or decrease the amount of interest on the debt to be capitalized, increase in •
the portion of the captured tax capacity to be retained by the City, increase in total estimated tax increment
expenditures or designation of additional property to be acquired by the City shall be approved upon the
notice and after the discussion, public hearing and findings required for approval of the original plan. The
geographic area of a tax increment financing district may be reduced, but shall not be enlarged after five years
following the date of certification of the original tax capacity by the county auditor or by approximately June,
2000.
Modifications to the District No. 9, in the form of a budget modification or an expansion of the boundaries,
will be recorded in this subsection of the Plan.
O. LIMITATION ON ADMINISTRATIVE EXPENSES
In accordance with Minnesota Statutes, Section 469.174, Subdivision 14 and Minnesota Statutes, Section
469.176, Subdivision 3, administrative expenses means all expenditures of an authority other than amounts
paid for the purchase of land or amounts paid to contractors or others providing materials and services,
including architectural and engineering services, directly connected with the physical development of the real
property in the district, relocation benefits paid to or services provided for persons residing or businesses
located in the district or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued
pursuant to Section 469.178. Administrative expenses include amounts paid for services provided by bond
counsel, fiscal consultants, and planning or economic development consultants. No tax increment shall be
used to pay any administrative expenses for a project which exceed ten percent of the total tax increment
expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the
project, whichever is less.
Pursuant to Minnesota Statutes Section 469.176, Subdivision 4h, tax increments may be used to pay for the
county's actual administrative expenses incurred in connection with District No. 9. The county may require
payment of those expenses by February 15 of the year following the year the expenses were incurred.
P. ACTIVITY REQUIRED IN TAX INCREMENT FINANCING DISTRICTS
Pursuant to Minnesota Statutes, Section 469.176, Subdivision 1, "no tax increment shall be paid to an
authority three years from the date of certification by the County Auditor unless within the three -year period
(1) bonds have been issued pursuant to Section 469.178, or in aid of a project pursuant to any other law,
except revenue bonds issued pursuant to Chapter 469.152 to 469.165, prior to the effective date of the Act;
or (2) the authority has acquired property within the district; or (3) the authority has constructed or caused
to be constructed public improvements within the district ... " The City must therefore issue bonds or
obligations, or acquire property, or construct or cause public improvements in District No. 9 by
approximately June, 1998.
Q LlMITA-nQN ON QUALIFICAIJON OF PROPERTY IN TAX INCREMENT DISTIU
NOT • WR• ! 1
Pursuant to Minnesota Statutes Section 469.176, Subdivision 6,
•
• if after four years from the date of certification of the original tax capacity of the tax increment financing
district pursuant to Minnesota Statutes Section 469.177, no demolition, rehabilitation or renovation of
property or other site preparation, including qualified improvement of a street adjacent to a parcel but not
installation of utility service including sewer or water systems, has been commenced on a parcel located within
a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax
increment financing plan, no additional tax increment may be taken from that parcel and the original tax
capacity of that parcel shall be excluded from the original tax capacity of the tax increment financing district.
If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation
or other site preparation on that parcel including qualified improvement ofa street adjacent to that parcel,
in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the
activity has commenced and the county auditor shall certify the tax capacity thereof as most recently certified
by the commissioner of revenue and add it to the original tax capacity of the tax increment financing district.
The county auditor must enforce the provisions of this subdivision.. Forpurposes of this subdivision, qualified
improvements are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3)
substantial reconstruction or rebuilding of an existing street.
• • I • im m 1► •1' u1�1►•1
Pursuant to Minnesota Statues, 469.176, Subd. 4, at least 90 percent of the revenues derived from tax
increments from a redevelopment district must be used to finance the cost of correcting conditions that allow
designation of redevelopment districts under Section 469.174, Subdivision 10. These costs include acquiring
properties containing structurally substandard buildings or improvements, acquiring adjacent parcels
necessary to provide a site of sufficient size to permit development, demolition of structures, clearing of the
land and installation of utilities, roads, sidewalks, and parking facilities for the site.
The revenues shall be used to finance or otherwise pay public development costs pursuant to Minnesota
Statutes Chapter 462 or 469. These revenues shall not be used to circumvent any levy limit law. No
revenues derived from tax increment shall be used for the acquisition, construction, operation, renovation,
or maintenance of a building used primarily and regularly for conducting the business of the municipality;
this provision shall not prohibit the use of revenues derived from tax increments for the construction or
renovation of a parking structure, a commons area used as a public park or a facility used for social,
recreational or conference purposes and not primarily for conducting the business of the municipality. For
tax increment fmancing districts for which certification was requested after April 30, 1990, pursuant to
Minnesota Statutes Section 469.1763, Subdivisions 1 and 2, an amount equal to at least 75 percent of the
revenue derived from tax increments from the district's parcels must be expended on activities in the district.
• 1 • • • ' a ►1►I�I• 1 1 C • I71
Pursuant to Minnesota Statutes Section 469.177, Subdivision 4, the City has reviewed the area to be included
in District No. 9 and found that no building permits have been issued for those properties.
11111111��ll M11 4,
The City will review the developer's proposal to determine its conformance with the Development Plan and
with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be
requested for review and approval: site plan, construction, mechanical, and electrical system drawings,
landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative
• deemed necessary by the City to demonstrate the conformance of the development with city plans and
ordinances. Land acquired by the City may be subject to a Contract for Sale upon disposition to the
developer. The general requirements to be imposed upon the developer by the Contract for Sale are: •
1. To redevelop the land purchased in accordance with this development plan.
2. To commence and complete the building of improvements on the land within a reasonable
period of time as determined by the City.
3. Not to resell the land before improvements are made without the prior consent of the City.
4. Not to discriminate on the basis of race, color, sex, creed or national origin on the sale, lease,
transfer or occupancy of the land purchased from the City.
The requirements to be imposed upon the developer and the City's exact participation in the project will be
negotiated as part of the Development Agreement between the City and the Developer.
U. ASSESSMENT AGREEMENTS
Pursuant to Minnesota Statutes Section 469.177, Subdivision 8, the City may enter into a written agreement
with the owner of property within the tax increment financing district which establishes a minimum market
value of the land and completed improvements for the duration of the tax increment district. The assessment
agreement shall be presented to the county assessor who shall review the plans and specifications for the
improvements constructed, review the market value previously assigned to the land upon which the
improvements are to be constructed and, so long as the minimum market value contained in the assessment
agreement appear, in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the
minimum market value agreement.
V. ADMINISTRAUON OF DISMCT AND MA—MENANCE OF 1 tIM -A
ACC
•
Adm4lishpation of District No. 9 will be handled by the City Administrator. The tax increment received as
a result of increases in the tax capacity of District No. 9 will be maintained in a special account separate from
all other municipal accounts and expended only upon sanctioned municipal activities identified in the tax
increment financing plan.
s ► : i•' 1 • llt 71u11A►•
Pursuant to Minnesota Statutes. Section 469.175, Subdivisions 5, 6, and 6(a); an authority must file an annual
disclosure report for all tax increment financing districts with the Office of the State Auditor, the county
board, school board, and Department of Revenue.
/. ul 1►1 1• • ' �•
Pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, before or at the time of approval of the tax
increment financing plan, the municipality shall make the following findings and shall set forth in writing
the reasons and supporting facts for each determination.
Finding that the Tax Increment Financing District No. 9 is a Redevelopment District as defined in
Minnesota Statutes. Section 469.174, Subd. 10. •
• District No. 9 includes parcels and buildings which meet the requirements of coverage of parcel area
and blight requirements for the building conditions.
2. Finding that the proposed development, in the opinion of the City Council, would not occur solely
through private investment within the reasonably foreseeable future and, therefore, the use of tax
increment financing is deemed necessary.
Due to the high cost of redevelopment, including the costs of demolition, site preparation, and public
improvements, the financing of the proposed housing would not be affordable without the use of tax
increment financing.
3. Finding that the Tax Increment Financing Plan conforms to the general plan for the development or
redevelopment of the municipality as a whole.
The site is appropriately zoned. The Tax Increment Financing Plan has been reviewed by the
Planning Commission and been found to conform to the general development plan of the City.
4. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 9 will
afford maximum opportunity, consistent with the sound needs of the City as a whole, for the
development of Development District No. 4 by private enterprise.
The establishment of Tax Increment Financing District No. 9 will result in increased employment
opportunities in the community and development activities are necessary so that development and
redevelopment by private enterprise can occur within Development District No. 4.
Y. COUNTY ROAD COSTS
Pursuant to Minnesota Statutes Section 469.175, Subdivision la, the county board may require the authority
to pay for all or part of the cost of county road improvements if the proposed development to be assisted by
tax increment will, in the judgement of the county, substantially increase the use of-county roads requiring
construction of road improvements or other road costs and if the road improvements are not scheduled within
the next five years under a capital improvement plan or other county plan.
The improvements outlined in the Plan serve as notice to the county that the development of the retail facility
will be assisted with tax increment. In the opinion of the City and consultants, the proposed development
will have little or no impact upon county roads. If the county elects to use increments to improve county
roads, it must notify the City within thirty days of receipt of this plan.
Z. REDUCTION IN STATE TAX INCREMENT FINANCING AID
Pursuant to Minnesota Statutes Section 273.1399 for tax increment financing districts for which certification
was requested after April 30, 1990, a municipality incurs a reduction in state tax increment financing aid
( RISTIFA) applied to the municipality's Local Government Aid (LGA) first and Homestead and Agricultural
Aid (HACA) second, in an amount equal to a formula based upon the equalized qualifying captured tax
capacity (QCTC) of the tax increment financing district The total amount of RISTIFA expected for the
• project amounts to less than 10 to 20 percent of the total tax increment
0
Boundary Map of Tax Increment Financing District No. 9
as established June 12, 1995
i
i
10
�J
J
.n
z M-04
NORTHWEST
AVENUE
W
W
d'
N32j�l
HUTCHINSON DOWNTOWN
REDEVELOPMENT PLAT
BLOCK 1
1
FIRST
PUBLIC
SQUARE
7,,-,
F0 K
5 a ��
6 45
V7 3 2 1
2 1
AVENUE NORTHEAST
2
w REDEV LOPMENT PLAT NO. 2
w 1
7 BLOCK
6
WASHINGTON
10
1
10 1
z
9
2
�
w
z
45
g
3
8
Y-
4
N
7
4
6
F
5
N32j�l
HUTCHINSON DOWNTOWN
REDEVELOPMENT PLAT
BLOCK 1
1
FIRST
PUBLIC
SQUARE
7,,-,
F0 K
5 a ��
6 45
V7 3 2 1
2 1
AVENUE NORTHEAST
2
w REDEV LOPMENT PLAT NO. 2
w 1
7 BLOCK
6
WASHINGTON
10 1
10
9 2
9
w
45
g 3
8
4
N
7
6
1
2
3 w
4
I
PA
PARK
2
PAS
FM
S
I8I9 10
10
9
r g
w
N 7
1
2
3
4
5
EXHIBIT B •
Cashflow Analysis LGA/RISTIFA Analysis and Base Value Analysis
L
i
12
05/09195 Clry of Hutchinson Page 1
T.I.F. CASH FLOW ASSUMPTIONS
Inflation Rate:
•
0.0000%
Interest Rate:
9.500%
Tax Extension Rate:
1.482740
Pay 95
Fiscal Disparities Rate:
0.00%
School District No. 423 Basic Rate:
36.00%
<— Estimate
School District No. 423 Sales Ratio:
90.00%
<— Estimate
L.GA as a Percent of Tax Increment:
26.98%
L.GA Investment Rate:
4.500%
•
BASE VALUE INFORMATION
Market Tax
Value Capacity
Lot 3, Block 1 Hutch Downtown 5,100 0
Block 45 ex Lot 7 & 8, N11/2 130,000 4,380
Total Original Market Value 135,1 DO 4,380 Pay 95
Class Rate:
Original Tax Capacity:
Type of Development:
Total Taxes Per Total
Commercial < $100,000
Commercial > $100,000
VAL
Annual
Tax
11,247
3.0000% Pay 95
4.6000% Pay 95
4,615 Pay 95
6,000 s.f. retail
11,000 s.f. warehouse
Total
Tax Market MV/
innrety Value S. F.
HU100-01 Prepared by ENm & Associates PLAN1
05109/95 City of Hutel iron Page 2
HU100 -01 Prepared by Ehlers & As cdates PLA 1
TAX INCREMENT CASH FLOW
Orig.
Project
Captured
Semi - Annual
Admin.
Semi - Annual
NPV
LGA
Payment
PERIOD
Tax
Tax
Tax
Grass Tax
at
Net Tax
Tax Increment
Penalty
Date
Yrs.
Capacity
Capacity
Capacity
Increment
10.00%
Increment
9.50%
26.98%
Mth.
Yr.
0.0
4,615
4,615
0
0
0
0
0
0
02 -01
1996
0.0
4,615
4,615
0
0
0
0
0
0
08 -01
1996
0.0
4,615
4,615
0
0
0
0
0
0
02 -01
1997
0.5
4,615
12,200
7,585
5,624
562
5,061
4,204
0
08-01
1997
1.0
4,615
12,200
7,585
5,624
562
5,061
8,217
0
02 -01
1998
1.5
4,615
12,200
7,585
5,624
562
5,061
12,048
0
08-01
1998
2.0
4,615
12,200
7,585
5,624
562
5,061
15,706
0
02 -01
1999
2.5
4,615
12,200
7,585
5,624
562
5,061
19,197
0
08-01
1999
3.0
4,615
12,200
7,585
5,624
562
5,061
22,530
0
02 -01
2000
3.5
4,615
12,200
7,585
5,624
562
5,061
25,713
0
08 -01
2000
4.0
4,615
12,200
7,585
5,624
562
5,061
28.750
0
02 -01
2001
4.5
4.615
12,200
7,585
5,624
562
5,061
31,650
95
08-01
2001
5.0
4,615
12,200
7,585
5,624
562
5,061
34,419
95
02 -01
2002
5.5
4,615
12,200
7,585
5,624
562
5,061
37,062
190
08-01
2002
6.0
4,615
12,200
7,585
5,624
562
5,061
39,585
190
02 -01
2003
6.5
4,615
12,200
7,585
5,624
562
5,061
41,994
284
08 -01
2003
7.0
4,615
12,200
7,585
5,624
562
5,061
44,293
284
02 -01
2004
7.5
4,615
12,200
7,585
5,624
562
5,061
46,489
379
08-01
2004
8.0
4,615
12,200
7,585
5,624
562
5,061
48,584
379
02 -01
2005
8.5
4,615
12,200
7,585
5,624
562
5,061
50,585
474
08-01
2005
9.0
4,615
12,200
7,585
5,624
562
5,061
52,495
474
02 -01
2006
9.5
4,615
12,200
7,585
5,624
562
5,061
54,318
569
08-01
2006
10.0
4,615
12,200
7,585
5,624
562
5,061
56,059
569
02 -01
2007
10.5
4,615
12,200
7,585
5,624
562
5,061
57,721
664
08 -01
2007
11.0
4,615
12,200
7,585
5,624
562
5,061
59,307
664
02 -01
2008
11.5
4,615
12,200
7,585
5,624
562
5,061
60,822
759
08-01
2008
12.0
4,615
12,200
7,585
5,624
562
5,061
62.267
759
02 -01
200
12.5
4,615
12,200
7,585
5,624
562
5,061
63,647
853
08-01
2009
13.0
4,615
12,200
7,585
5,624
562
5,061
64,965
853
02 -01
2010
13.5
4,615
12,200
7,585
5,624
562
5,061
66,223
948
08-01
2010
14.0
4,615
12,200
7,585
5,624
562
5,061
67,424
948
02 -01
2011
14.5
4,615
12,200
7,585
5,624
562
5,061
68,570
1,043
08-01
2011
15.0
4,615
12,200
7,585
5,624
562
5,061
69,665
1,043
02 -01
2012
15.5
4,615
12,200
7,585
5,624
562
5,061
70,709
1,138
O13-01
2012
16.0
4,615
12,200
7,585
5,624
562
5,061
71,707
1,138
02 -01
2013
16.5
4,615
12,200
7,585
5,624
562
5,061
72,659
1,233
08-01
2013
17.0
4,615
12,200
7,585
5,624
562
5,061
73,568
1,233
02 -01
2014
17.5
4,615
12,200
7,585
5,624
562
5,061
74,436
1,327
08-01
2014
18.0
4,615
12,200
7,585
5,624
562
5,061
75,264
1,327
02 -01
2015
18.5
4,615
12,200
7,585
5,624
562
5,061
76,055
1,422
08-01
2015
19.0
4,615
12,200
7,585
5,624
562
5,061
76,810
1,422
02 -01
2016
19.5
4,615
12,200
7,585
5,624
562
5,061
77,531
1,517
08 -01
2016
20.0
4,615
12,200
7,585
5,624
562
5,061
78,219
1,517
02 -01
2017
20.5
4,615
12,200
7,585
5,624
562
5,061
78,876
1,517
08-01
2017
21.0
4,615
12,200
7,585
5,624
562
5,061
79,503
1,517
02 -01
2018
21.5
4,615
12,200
7,585
5,624
562
5,061
80,101
1,517
08-01
2018
22.0
4,615
12,200
7,585
5,624
562
5,061
80,673
1,517
02 -01
2019
22.5
4,615
12,200
7,585
5,624
562
5,061
81,218
1,517
08-01
2019
23.0
4,615
12,200
7,585
5,624
562
5,061
81,739
1,517
02 -01
2020
23.5
4,615
12,200
7,585
5,624
562
5,061
82,236
1,517
08-01
2020
24.0
4,615
12,200
7,585
5,624
562
5,061
82,711
1,517
02 -01
2021
24.5
4,615
12,200
7,585
5,624
562
5,061
83,164
1,517
08-01
2021
25.0
4,615
12,200
7,585
5,624
562
5,061
83,597
1,517
02 -01
2022
Totals
281,179
28,118
253,061
2,875 285
40,961
Present Values
92,885
9,289
83,597
709,896
7,726
HU100 -01 Prepared by Ehlers & As cdates PLA 1
• EXHIBIT C
•
•
Qualifications of District No. 9 as a Redevelopment District
(To be inserted prior to the public hearing)
13
HUTCHINSON LIGHT TRAFFIC PROJECT
•
RESIDENT SURVEY
4653 SURVEYS SENT 910 SURVEYS RETURNED 19.5% RESPONSE
QUESTION #1.
Strongly agree -► -! -► Strongly disagree
1.
2.
3.
4.
5.
16.
7.
N/R
a. There should be separate paths for bicyclists throughout the city.
228
109
125
164
59
53
157
15
b. Increase safety for bicyclists on existing streets with signage and striping
228
146
146
137
78
51
109
15
c. There should be separate paths for walkers throughout the city.
205
79
124
161
81
84
160
16
d. There should be separate paths for in -line skaters throughout the city.
187
76
73
151
93
88
225
17
e. More recreational trails should be developed.
291
131
130
115
50
42
139
12
icycle trail connecting to trails located in Mpls and S[ Paul
137
61
101
170
102
68
256
14
dditional trails groomed for x- country skiing and snowmobiling
135
81
115
190
108
68
198
15
h. More public transit in Hutchinson
162
111
149
207
93
58
113
17
i. More trails to connect the business dist., tech college and industrial arras
175
132
178
129
65
66
153
13
j. Develop additional trails for winter recreational activties
103
71
133
208
115
89
174
17
k. I would bicycle to work if I could get there safely on paths or bike lanes.
167
92
83
178
64
69
236
21
I. All family members who bicycle should wear a bicycle helmet
237
78
116
197
60
75
131
16
m. Only the children should be required to wear bicycle helmets when riding.
124
87
94
169
89
89
240
18
n. Bicycle helmets are too cumbersomeawkward to wear.
109
59
87
254
88
61
234
18
o. Bicycle helmet use should be strongly encouraged.
299
105
130
196
51
38
73
18
p. I don't believe that a bicycle helmet will protect me.
81
33
50
145
123
356
24
q. A city bicycle license would help locate stolen bicycles.
191
89
94
204
H59
168
22
•
�-7q,
QUESTION 42. In your opinion, should the City of Hutchinson spend the same, more or less effort developing
routes to be used by walkers, runner (joggers) and bicyclists?
QUESTION #2.
SAME
MORE
LESS
N/R
286
423
159
42
QUESTION #3. List activities involving how you might move from home to another location.
Question #3. ACTIVITY
FREQUENCY
ROUTES
Daily
3- 6/week
1- 2/week
<1 /week
local
Luce
# miles
Bicycling (commute) (29.1 %)
30
58
61
146
210
43
751
Bicycling (leisure) (81.7%)
42
160
182
180
393
164
1881
Walking (93.9%)
179
214
199
172
483
158
1302
Running/jogging (21.9 %)
13
35
37
115
81
37
298
Driving (commute) (67.3 %)
423
119
47
24
324
4283
Driving (errands) (92.1%)
435
235
100
69
404
3027
Driving (leisure) (58.5 %)
143
77
175
138
224
5068
Motorcycling (leisure) (15.8 %)
12
25
29
78
59
140
Motorcycling (commuting) ( 7.5%)
7
7
18
37
49
351
In -line skating (19.6 %)
13
38
50
78
86
283
Public Transit (Hutchmobile) (12.6 %)
10
7
6
92
14
93
Snowmobiling (14.6 %)
2
11
26
94
17
51
1532
Cross-country skiing (14.3 %)
1
8
24
98
6
12
219
AREA OF HUTCHINSON IN WHICH
YOU LIVE
18-25
I NW
SE
SW
I CENTRAL
I N/R
122
155
184
344
1 79
26
GENDER MALE (412) FEMALE (482) N/R (16)
AGE
18-25
26-39
40-54
55-64
Over 65
N/R
83
295
265
120
131
16
n
u
2
Question 1a.
There should be separate bike paths.
6o.e%
19.1.
29.6%
Agree
Disagree
`Neither agree or disagree
'TOTAL OF #4 (MIDWAY) AND NIR ON SURVEY
Question 1 c.
i
There should be separate paths for walkers
i 44A%
95%
3i.T%
Agree
i Disagree
'Neither agree or disagree
TOTAL OF 94 (MIDWAY) ANDN/R ON SURVEY
Question 1 b.
Increase safety for bicyclists with signage.
sT 1x,
. 0!�=
IV262%
Agree
Disagree
'Neither agree or disagree
'TOTAL OF 04 (MIDWAY) AND N/R ON SURVEY
Question 1 d.
There should be separate paths for in -line skaters.
i I
44.6%
Agree
Disagree
'Neither agree or disagree
*TOTAL OF H4 (MIDWAY) AND NiR ON SURVEY
v �� 1
-TOTAL OF #4(MIDW.AY) ANDN/R ON SURVEY
Question 1 g.
Additional trails groomed for skiing and snowmobiling.
411%
gF
Agree
Disagree
. 'Neither agree or disagree
*TOTAL, OF 44 (MIDWAY) AND NIR ON SURVEY
Question 1 f.
Bicycle trail connecting to trails located in Twin Cities.
32-9 %]
18.9%
28.2%
Agree
® Disagree
'Neither agree or disagree
*TOTAL OF 44 (MIDWAY) AND N/R ON SURVEY
Question 1 h.
More pub €ic transit in Hutchinson.
I
29% 24.891
Agree
Disagree
'Neither agree or disagree
*TOTAL. OF 44 (MID WAY) AIND N%R ON SURVEY
Question 1 i.
More wnneeBng bails bowers business &L, loch calege and ioduslrial Brea
45.6%
4 311%
Agree
® Disagree
'Neither agree or disagree
`TOTAL OF 94 (MIDWAY) AND NAt ON SURVEY
Question 1 k.
I would bike to work if I could get there safely.
37 9%
40.9%
i 21.9%
I
Agree
Disagree
' Neither agree or disagree
-TOTAL OF #4 fk[IDWAY) AND v R Oh' SURVEY
Question 1 �.
Develop additional trails for winter activities.
337X
17.6%
24.7%
�_j Agree
Disagree
'Neither agree or disagree
'TOTAL OF 44 {MIDWAY AND N/R ON SURVEY
Question 11.
Ail family members who bicycle should wear a helmet.
47.4%
I
I
I
i
Ii
I
29.2% 23.4%
J Agree
Disagree
'Neither agree or disagree
"TOTAL OF #4 (MIDWAY) AND N/R ON SURVEY
Question 1 m.
Only children should wear helmets when riding.
59.6%
16.0%
20.5%
Agree
Disagree
'Neither agree or disagree
rOTAL OF 44 (N DW'AY) AND N/R ON SURVEY
Question 1 o.
Bicycle
he met use should be strongly encouraged.
2?sx
+T ex
Agree
Disagree
'Neither agree or disagree
Question 1 n.
Bicycle helmets are too cumbersome to wear.
9e 9x
29.p%
Agree
Disagree
'Neither agree or disagree
'TOTAL OF #4 (NUDWAY) AND NIR ON SURVEY
Question 1 p.
I don't believe a bike helmet will protect me.
� +ex
694%
II +e.ex
�1
Agree
Disagree
'Neither agree or disagree
• TOTAL OF #.4 iMIDWAl7 201D N;R ON SURVEY
Question 1 q.
A city bike license would help locate stolen bikes.
u.+x
21.d%
Agree
Disagree
'Neither agree or disagree
' TOTAL OF #4 (M3DWAY) AND WR ON SURVEY
Question 2
46i
C' Same More
Less No Response
In your opinion, should the city spend the same, more or Less
effort developing routes to be used by walkers, runners and
bicyclists?
GENDER
MALE
WR
Bid
FEMALE
AREA OF HUTCHINSON IN WHICH YOU LIVE
,r%
202%
i`
2.8%
s.rX
NE NW
SE SW
CENTRAL N!R
AGE OF PERSON RESPONDING TO SURVEY
W-
,ex
28,1% 94.4%
782%
t & -25 ■ 26 -39 40 -54
55 -64 ' Over 65 N1R
•
•
0
DAVID B. ARNOLD'
STEVEN A. ANDERSON
G. BARRY ANDERSON*
STEVEN S. HOGE
LAURA K. FRETLANO
DAVID A. BRUEGGEMANN
PAUL D. DOVE**
RICHARD G. MCGEE
CATHRYN D. REHER
GINA M. BRANDT
BRETT D. ARNOLD
'ALSO ADMITTED IN T[XAf I.NO NEw IORM
ARNOLD, ANDERSON & DOVE
PROFESSIONAL LIMITEO LIABILITY PARTNERSHIP
ATTORNEYS AT LAW
101 PARK PLACE
HUTCHINSON. MINNESOTA 553502563
(612) 587 -7575
FAX (612) 5874096
RESIDENT ATTORNEY
G. BARRY ANDERSON
June 8, 1995
Mr. Gary Plotz
City Administrator
Hutchinson City Center
111 Hassan Street SE
Hutchinson, MN 55350 -2522
RE: Mark Schantzen Matter
our File No. 3188 -94262
Dear Gary:
OF COUNSEL
RAYMOND C. LALLIER
JANE VAN VALKENBURG
5681 CEDAR LAKE ROAD
MINNEAPOLIS, MINNESOTA 55416
(612) 545 -9000
FAX (612) 545 -1793
501 SOUTH FOURTH STREET
PRINCETON, MINNESOTA 55371
(6121389 -2214
FAX 1612) 389 -5506
FIFCEIVED
LI TI 8 1995
C[TY OF HUTCHINSON
I write to you today regarding the Paden's Addition problems, an
issue that was discussed at the last City Council meeting and
deferred to this Monday evening's meeting.
Various Council members wanted additional information and this
correspondence is designed 1tO provide that information.
John Rodeberg can give you more detail regarding problems
associated with the assessment searches, but I believe I can
provide enough background so that the Council can at least make
some decisions. I am enclosing for your review and the review of
the City Council, the following documents:
1. My correspondence dated May 19, 1995;
2. My correspondence dated April 7, 1995;
3. John Rodeberg's letter dated March 22, 1995 including the two
assessment searches referred in said letter;
4.
A
copy
of
Pete
Kasal's
letter
dated
May 9,
1994;
5.
A
copy
of
Pete
Kasal's
letter
dated
April
4, 1994;
6. A copy of the memorandum from John Rodeberg dated December 7,
1992.
CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION n —A.
��CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION
Mr. Gary Plotz
June S, 1995
page 2
Looking at all of these documents in chronological order, it seems
reasonable to conclude that the owners who purchased the property
at the county auction did so initially because of the
representations made by the City that the assessments were in the
neighborhood of $21,000.00 and I think it reasonable that the City
take some appropriate action relative to this particular lot even
if it does nothing relative to other lots.
As I outlined in prior correspondence, the City has, in my view,
two options.
It can either follow through on its initial proposal, approximately
$21,000.00 worth of assessments payable over seven years with such
minor modifications as the parties are willing to enter into or,
alternatively, the City could propose to purchase the lot for
approximately $1500.00, a price I believe the present fee holders
would be willing to accept.
0
If the City chooses to go this route, then the City may wish to
consider whether or not it wishes to acquire the other two lots
which could be acquired for a fairly modest amount, the lot owned
by Mr. Krammer and the lot owned by Mr. Daggett. Otherwise, these
properties are simply going to march through the forfeiture process •
and will have zero developmental potential.
A question was raised regarding the Word of Life agreement and for
the information of the Council I am enclosing a copy of that
agreement as executed by the parties as well.
Thank you. Best regards.
Very
GBA /es
cc: John P
no
Rodeberg (without enclosures)
•
DEC-07 -1992 16:59 FR CITY OF HJTCHINSON TO 2347333 P.02/03
9
M S M O R A H D U H
December 7, 1992
T0i Hark Schantzen, Schantzen & Schantzen
FROM! John P. Rodeberg, Director of Engineering
RE: Assessments on Lot 2/Block 2 Padens Addition
Based on the enclosed calculations completed by the Finance
Director, the adjusted total assessments due would be $20,997.02
based on the revised City policy for tax forfeit properties. You
would be able to have these reassessed to the property over 7 years
at 7 percent. He will finalize the agreement if you purchase the
property.
<Jj>
City Hall Parks &Recreation
37 Washington Avenue West 900 Harrington Street
(6121587.5151 (612) 397.2975
Htttchincna ,,.cn
Police Department
10 Franklin Street $oath
(612) 387.2242
0 0
CITY OF HUTCHINSON
TAI FORFEIT
FIR C17T POLICY - YEAR ?AXIS NOT PAID MEREST IN RR ADDED
AS INTERESTED 13 ADDED FOR DEFERRED ASSESSMENT
15T 10 YEARS AT NET INTEREST ON BONDS - YEARS AFTER S7
TAI98 WERE NOT PAID IN 1186
PROPERTY ID
12- 116 -30 -OA -0950
LOT 2 BLOCK 2
1ST PADEN
ADDITION
1990
DEFERRED
5056
ORDINAL
ANNUAL
1986
BALANCE
1992
TOTAL
TOTAL AMT
0.431644
TEAR
TNT. RATE
AMOUNT
PAYMENT
YEARS PD
TO PAY
INTEREST
DUE
0.404098
1.43
103
3533
1981
10.5%
4315.67
431.57
5
2,157.84
7
1,566.01
3,743.84
3069.704
3,088.70
121
1981
7.0%
14595.7
1,469.57
5
7,347.65
7
3,600.45
10,948.30
10307.42
10,547.42
172
1981
7.D%
1013.39
181.34
5
906.70
7
444.28
1,150.98
1296.573
1,296.57
123
1981
7.0%
1738.24
173.82
S
669.12
7
425.81
1,294.99
1242.641
1,242.84
140
3816
1982
1015%
3725.89
372.59
4
2,233.53
7
1,643.12
3,878.65
3129.747
7,129.74
150
1982
10.5%
2065.18
206.52
4
1,239.11
7
910.74
2,149.65
1734.751
1,734.75
270
1991
6.2%
714.18
71.42
0
714.18
1
44.28
758.46
738.46
- -- - - ----
115,470.32
----- - - ----
23,346.61
----- - - - ---
20,997.02
•23,366.01 IS
THE AMOUNT DUE TO IND OF THIS
YIAR INCLUDES
INTEREST
ACCUR191) 7NR01 ND OF YEAR
1992
n
I
n
l
!li
i
i
i
it
r1
L_J
KEEFE & KASAL
ATTORNEYS AT LAW
246 MAIN STREET SOUTH
P.O. BOX 220
HUTCHINSON, MINNESOTA 55350
JOHN E. KEEFE
PETE KASAL
PHONE 597.2163
AREA CODE 612
April 4, 1994
Mr. John Rodeberg
City Engineer
Hutchinson City Center
111 Hassan St. S.E.
Hutchinson, MN 55350
RE: Lot 3, Block 2, PADEN FIRST
ADDITION
Dear John:
I just want to confirm our telephone conversation of
last week. I talked to Mark Schantzen, who purchased the above
lot from the tax forfeiture rolls in February, 1993. Prior to
that, it is my understanding he made a number of inquiries to the
City of Hutchinson to determine the amount of assessments against
the lot. I am enclosing a copy of the print -out and the letter
he obtained in November and December, 1992. As I explained to
you over the phone, the original assessment search provided by
the City and your letters indicated approximately $21,000.00 in
assessments against the lot. The Agreement he received in March
of 1993 for reassessment of the property listed the total special
assessments by the City at $34,000.00. The latest real estate
tax notice places the special assessments at over $35,000.00.
The tax notice also requires that the taxes be paid in full this
year, $18,000.00 on May 15 and $18,000.00 on October 15. If the
taxes aren't paid by May 15, obviously there is another 108
penalty.
We are rapidly approaching the $40,000.00 mark for this
piece of property. As you can well understand, adding an addi-
tional $20,000.00 for lot purchase does not make our project
feasible, and it is my belief that this lot is not worth
$40,000.00.
It is my understanding you are going to discuss this
with Mr. Merrill and also, possibly the City Council, in order to
resolve the issue of these special assessments. I would appre-
ciate it if you could get back to me by April 15 so that we have
some time to put a potential agreement together.
0 Thank you.
PJK:11
Enc.
Sincerely yours,
tt AL " J
�1� /`'�'1�1
Ff 74
0
KEEFE & KASAL
ATTORNEYS AT LAW
246 MAIN STREET SOUTH
P.O. BOX 220
HUTCHINSON. MINNESOTA 55350
JOHN E. KEEFE
PETE KASAL
PHONE 55: -2163
AREA CODE 612
May 9, 1994
Mr. Barry Anderson
Hutchinson City Center
111 hassan St. SE
Hutchinson, MN 55350
RE: Mark Schantzen
Our File No. 94 -5223P
Dear Barry:
If you will recall, I contacted you approximately a
month ago regarding the purchase of a lot by Mark Schantzen.
This lot is located on the south end of Hutchinson adjacent to
the Champion Auto Store. Mr. Schantzen purchased the lot on a
tax forfeiture sale through McLeod County.
Prior to purchasing the lot in November 1992, he
contacted the City of Hutchinson to determine the amount of
assessments against the lot and he received an assessment search
from the City of Hutchinson. Because he didn't entirely
understand how the assessment search read, he contacted the City
Engineer, Mr. Rodeberg to advise him as to the total amount of
delinquent assessments against the lot.
In December 1992, Mr. Rodeberg wrote a letter to Mr.
Schantzen describing the total assessments of approximately
$23,000.00 against the property. Based on that information, Mr.
Schantzen purchased the lot in March 1993. Following his
purchase of the lot, he received a tax notice from the City of
Hutchinson indicating assessments against the lot in excess of
$32,000. -00 and also a proposal for an extended period to pay the
back assessments. He has now received another notice in 1994
indicating $37,000.00 in assessments.
The last time that we talked, I'believe that you
mentioned that you were going to talk to Mr. Rodeberg about this
particular problem. Obviously this lot is not worth $37,000.00
A'
Mr. Barry Anderson
May 9, 1994
Page 2
and was purchased because the City indicated only $23,000.00 of
assessments was placed against the lot.
Could you please let me know if the City has a, proposal
for a solution of this problem.
PJK :lv
Sincerely yours,
KE£ & KASA-L--'
Pete asa'�
r
0
0
0
March 22, 1995
Mr. G. Barry Anderson, Hutchinson City Attorney
Arnold, Anderson & Dove
101 Main Street South
Hutchinson, MN 55350
RE: Mark Schantzen/Paden's Addition, Lot 3, Block 2
City PID 12- 116 -30 -08 -0060
Dear Barry:
Mr. Ken Merrill, Finance Director
Hutchinson City Center
111 Hassan Street SE
Huthcinson, MN 55350 -2522
I sincerely apoligize for letting this matter slip. I believed that we had responded to the concerns
and questions expressed by Mr. Kasal. There was extensive discussion of the situation with you
and City staff in May of 1994 and earlier, and although I thought the matter had been clarified
Iswe apparently never formally responded. I am sorry for the mistake.
Attached please find two Assessment Searches for the above referenced property, and related
correspondance with Mr. Kasal. The first Assessment Search. dated 11/13/92, was prepared
prior to certification by the County Auditor on November 30, 1992, and therefore had not yet
been updated for 1993. A notification of this was typed on the Assessment Search. If you look
at the second page of the Search, the computer printout notes that the first four Assessment Rolls
were clear (CL), while the next two were in their last year (LY). This implied to us that
assessments had been paid, and therefore these costs were not included in the Assessments noted
on the front page. Also note that the spreadsheet attached to Mr. Kasal's letter of April, 4, 1994
was for Lot 2, not Lot 3, and included incorrect calculations.
The second Assessment Search was completed on 12/23/92, after certfication by the County
Auditor, and clarification was made that the property was in fact tax forfeit, and that the
assessments had not been paid (please note that all rolls noted now have a TF code). We
therefore revised the Search to note that these assessments had, in fact, not been paid. We
included a spreadsheet noting the assessments currently due, and notes regarding how the
assessment was calculated.
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
Fax (6!2)) 234- 234 -422 K 40 '
i
- Ponied on renrfed paper -
Police Services
10 Franklin Street SW
Hutchinson, MN 55350 -2464
(612) 587 -2242
Fax (612) 587 -6427
Page ? - Barry/Schanten Leiter
Harch 11. 1995
Also find attached an "Agreement of Reassessment' completed in March of 1993 but never is
executed. In conclusion, it appears as if many factors have created confusion regarding this
matter. The three of us, and potentially Pete Kasal and Pat VanderVeen, should sit down as soon
as possible to review the issues that have arisen. Please let me know if you have any other
questions or comments.
Sincere
Jghr P. Rodeberg,
Director of EngineeringPublic W rks
cc: Gary Plotz - City Administrator
Cal Rice - Assistant to City Engineer
file: PID file
G:1AS SESS%SCHZ -LET. W PD
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ASSESOMM"T SEA'tCH 2: 3P y O: H V! O h 1. a O R
37 Washington Avenue West,-Hutchinson, MN 55350, (612) 587 -5151 4
I
ORDERED DATE 11113/ 1992 TIME 3:11 PH BY, MARK SCHANTZEN
P
R PHONE, 587 -6269 ADDRESS, 45 ADAMS ST. SO., HUTCHINSON, HN
O
P LEGAL DESCRIPTIONr Lot, 3 Block, 2 Subd,
E
R y DEN FIRST ADDITION
T
Y
ADDRESS, 720 ATLANTA AVENUE
Z
N 1PROPERTY
CITY PID NO, 12 -116 -30-08 -0060 MCLEOD COUNTY PID NO
! 23.316.0060
O WNERr STATE OF MINNESOTA IN TRUST C/O ED IDE, MCLEOD COUNTY
WNER'S MAILING ADDRESS, COURTHOUSE, 830 11TH ST. E., GLENCOE, MN 55336 .
SPECIAL ASSESSMENTS,
I have caused examination to be made of the records in the Office
A of the Director of Engineering as to Special Assessments against
8 the above - described real estate, and to the best of ■y knowledge
s and belief, assessments in the amount of S 4,757.45
E are charged, and as yet unpaid, against the real estate. In
8 I addition, the amount certified to the County Auditor for
S collection in 1992 is approximately S 1.204.36
x
E PENDING ASSESSMENTS, (Project was initiated by Council Resolution.)
N E NO YES, IF YES, DESCRIBE,
T
8
SUBDIVISION AGREEHENT, NO E YES UNKNOWN
Note= The subdivision agreement may contain restrictions on the
M use of the property or may contain procedures for assessing the
I cost of improvements against the property or may otherwise affect
S your use and enjoyment of the property. If the subdivision
C agreement is not of record against the property at the county, a
E copy can be secured from the City at nominal cost.
L
L UNPAID BILLS.
A WATER BILL -------- - - - - -- E NO YES - AMOUNT S
N TREE REMOVAL------- - - - - -- - I NO __ YES - AMOUNT S
N WEED CUTTING------- - - - - --
O OTHER, pO YES - AMOUNT S
X NO YES - AMOUNT $
U Utility billings and cyrrent service charges will be computed as
8 soon as a final reading is requested by the property owner.
COMMENTS, See Comments on attached fors, if applicable.
D Neither the City of Hutchinson or its employees guarantee the
I accuracy of the above information. In consideration for supplying
8 the indicated information in the form set forth above, any claim
against the City or its employees arising from this assessment
search is hereby expressly waived.
A Also be advised that the records of t e Co my uditor should be
I checked for any assessments that ■fight a rd.
M
E DATED, 11 -17 -1992
R ___ CITY ENGINEER /ASSISTANT CITY ENGINEER
F'• '.
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TA.KFAYEP, INIUIR" ; :cUrp'.
Fr,C ?E ^,!Y :D
12- 116-30 -06 -0060
HOUSE# F?P.CTION STREET NAdE
7220 1/ ATL?2iTA AVE
Owner!: STATE OF tV IN TRUST
Owner2:
2oninc: Frim /sac: Yr.blt:
Sch.Dst: 423 Wshd: 00 Gr /O< - /Ex
f. .,.•f2_ .t _affil....
1590:
:NE 'r
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t .ot Tx ,apaci 7
Ft.--on: Mt.Adr:
WIT ZIF+4
Front: Back:
55350+
night: Left:
Owner-- :
PROPERTY ID: 12-116 -30 -08 -0060
Owner4:
0000 Area:
Acr ES:
Subrecs: 00
Width: Depth:
f. .,.•f2_ .t _affil....
1590:
....
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t .ot Tx ,apaci 7
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....
1929:
PROPERTY ID: 12-116 -30 -08 -0060
Legal Description: LOT 3 ELGCi;
P ?.TEN FIRST rzo
2
Type F 7 or ADDFESS: PC ess E%7 ER: orfFi,fF2,;F8:
ScECiAL
ASSESSP .N2_ SEARCH SU11,I RY
AS OF: 11j16/1992
PROPERTY ID: 12-116 -30 -08 -0060
SEE
COMN",_NTS
S /F.#
ASSESSI NT DESC?IFT.
YEAR TM R�:TE
TOTA? ANN.
?AYOFF ^O
SA 2_03
C'LIS,�J TE3 Svr ACE
1921 10 2_0.5000
431 °.67
.
0.00
;.
SA -121
WATE mAiN
2_021 10 7.0G00
14655.70
0.00
0.10
0.0C CL
SA -122
STORM sEwER
1981 10 7•000u
122_3.39
0.00
0.00 "
SA 123
CUFBbGL'IT =6Sb t Zr ^
7
1521 1C 0v ^v ^0
1'38. 2x
G. 00
-
^.00
SA 9
a1T SURF >.;
1-.. 0 1u.S000
3 ?25.59
3'2.59
v _
0.00
SA 150
E17.S 20_;10
T
1982 10 10.5000
2065.18
206.52
SA 159
CL E GL"TE? -AS-
!0 9.i000
3704.37
370. 1
G.00
S =. 270
EiT.3 ?SE /'rc'> Cam'..__
1 91 10 6.1500
72_4
-
v
3'�� . --
SA _72
STCr /S ?ti._EHjnATE ? "!
0 -
L992 1 5,2 uG
`8
37 =�.
1. -2
374.43
542.76
3744.22
-- ----
SUtIN RY r:F LEVIED
13=0' S0
1020.
d757 1c
....�.
1 - - -
092 ?62_ i,EETF'ET
12'0$.36
------
SUhB�?RY OF DEFER .ED
0.0,0
0.00
- - - - --
sun ARV OF 71L 7E
0.00
0.00
0.00
0.00
------
SUMMARY OF PENDING
0.00
0.00
0.00
------
SU'lVARv OF CLCGE'
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30 CS 0060
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C ASSESSMENT SE ,, -,f
CITY OF HUTCHINSON
37 WASHINGTON AVENUE NEST, HUTCHINSON, MN 55350 (612) 587 -5151
ORDEREDr DATE: U_/x /1992 TIM& 10:26 AM BYr JOE
P
2313 SO. SLYLINE DRIVE
R
PHONEr 693 -7172 ADD ESSr BURNSVILLE MN 55337
O
P
PROPERTY ADDRESSr 720 ATLANTA AVENUE
S
R
LEGAL DESCRIPTIONr LOT 3 BLOCKr
T
Y
PADEN YntST ADD IT ON
I
CITY PID NO.s 12- 116 -30-08 -0060 MCLEOD COUNTY PID NO.e 23. 316.0060
N
F
OWNER: STATE OF MINNESOTA IN TRUST
O
C/O ED IDE. MCLEOD COUNTY AUDITOR, MCLEOD COUNTY
OWNER'S MAILING ADDRESSs COURTHOUSE, 830 -11TH ST. E.. GLENCOE. MN 55336
SPECIAL ASSESSMENTSr
A
I have caused examination to be made of the records in the Office of the Director of
S
Engineering as to Special Assessments against the above - described real estate, and to
3
the best of my knowledge and belief, assessments in the amount of S 36.105.77
E
are charged, and as yet unpaid against the real estate. In addition, the amount
S
to the County Auditor for collection in 1993 is approximately S TAX FORFEIT
S
,K
PENDING ASSESSMENTSr (Project has been initiated by Council Resolution.)
E
E NO YES IF YES, DESCRIBEr
x
,3
SUBDIVISION AGREEMENT: NO 1 YES UNKNOWN
NOTEr The Subdivision Agreement may contain restrictions on the use of the property or
Mi
may contain procedures for assessing the cost of improvements against the property or
I
may otherwise affect your use and enjoyment of the property. If the Subdivision
8
Agreement is not of record against the property at the County, a copy can be secured
C
from the City at a nominal cost.
jt
S
UNPAID BILLSr
_WATER BII.Lr z NO _ YES - AMOUNT S
` A
TREE REMOVALr 3_ NO YES - AMOUNT $
N
WEED CUTTINGr NO � YES - AMOUNT $ 235.19
i
OTHERs �_ NO YES - AMOUNT $
O
Utility billings and current service charges will be computed as soon as a final reading
U
is requested by the property owner.
8
COMMENTS, See Comments on attached form, if applicable.
D
Neither the City of Hutchinson nor its employees guarantee the accuracy of the above
I information.
In consideration for supplying the indicated information in the form set
S forth
above, any claim against the City or Its employees arising from this assessment
C
search is hereby expressly waived.
L
A Also,
be advised that the records of the County Auditor hould ecked for any
I assessments
that might be of record.
H
R DATEDr
12 -31 -1992
R
CITY EIGI�EtR#XSSIST A T CITY ENGINEER
Q PROPERTY DATA SYSTEM
TA %PAYER INQUIRY :CURR 319
PROPERTY ID :NEXT
12-116-30 -OB 0060 A;; ;;;;;;;2
Mt.Adr:
HOUSE-1 FRACTION STREET NAME UNIT ZIP +4 Front: Beck:
720 1/ ATL4NTA AVE 55350+ .Right: Left••
1'1.vnerI: STATE OP MN IN TPIIST
Own erz: '
C'wn Cwre r4 :
:J ^ 'C7: P'ri p: 5 ?C: Yr -b!t: :)n: ii Area:
r,
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L ?c'aT ':EARCF+
SUMMARY
?RnPEFT 11.- 115- 3'i- O�-OOSO
SEE C`.n'P'!ENTS
/A& Ai3ESSMENT C`E':•CRIF'T. YEA:' 7M
R;TE
7CTA.L
ANN.PRIN.
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PROPERTY ID
12- 126 -30 -OP -0060
:NEXT
A;;;;;;;;;2
C O
M M E N
T S
i9?'a WEED CUTTING -
; 31.25
1990 WEED COTIIHG —
$101.44
1991 WEED C01TING —
$ 57.50
1992 WEED C01TING —
$ 45.00
E
CITY OF HUTCHINSON
TAX FORFEIT
PER CITY POLICY - YEAR TAXES NOT PAID INTEREST TO BE ADDED
AS POLICY FOR DEFERRED ASSESSMENT IS COMPUTED
IST 10 YEARS AT NET INTEREST ON BONDS - YEARS AFTER 5%
(NOT TO EXCEED PRESENT DAY COST)
TAXES WERE NOT PAID IN 1986
PROPRRTY ID
12- 116 -30 -08 -0060
IF PAID BY
END Of JANUARY 1993
LOT 3 BLOCK 2
1ST PADEN
ADDITION
1990
DEFERRED
ONGIHAL
ANNUAL
1986
BALANCE
1992
TOTAL
TOTAL AMT
0.431644
YEAR
INT. RATE
AMOUNT
PAYMENT
YEARS PD
TO PAY
0.083333
INTEREST
DUE
0.404088
1981
1.503855
1982
1.360976
1983
1.280555
103
1981
10,5%
4315.67
431.57
4
2,589.40
7.083333
1,925.87
4,515.27
3894.085
3,894.09
121
1981
7.0%
14695.7
1,469.57
4
8,817.42
7.083333
4,371.97
13,189.39
13260.12
13,189.39
122
1981
7.0%
1813.39
181.34
4
1,088.03
7.083333
539.48
1,627.52
1636.245
1,627.52
133
1981
7.0%
1738.24
173.82
4
1,042.94
7.083333
517.13
1,560.07
1568.436
1,560.07
149
1982
10.5%
3725.69
372.59
3
2,608.12
7.083333
1,939.79
4,547.91
3549.592
3,549.59
150
1982
10.5%
2065.18
206.52
3
1,445.63
7.OBJ333
1,075.18
2,520.81
1967.462
1,967.46
159
1883
9.1%
3704.37
370.44
2
2,963.50
7.063333
1,910.22
4,873.72
3794.919
3,794.92
270
1991
6.2X
714.18
71.42
0
714.18
1.083
47.95
762.13
762.13
278
1992
5.25X
3744.28
374.43
0
3,744.28
-
0.083
16.32
3,760.60
3,760.60
--- - - - --
--25,013.51
----- - - - - --
37,357.42
----- -
34,105.77
- - - --
CITY OF HUTCHINSON, 37 WA.3HINGTON AVENUE WEST, HUTCHINSON, MN 55350 (612) 587 -5151
TAX FORFEIT PROPERTY - TA 'ES NOT PAID IN 1%6
PER CITY POLICY - YEAR TAXES NOT PAID, INTEREST TO BE ADDED AS POLICY FOR DEFERRED ASSESSMENTS IS COMPUTED
INTEREST RATE - FIRST 10 YEARS AT NET INTEREST ON BONDS - YEARS AFTER AT 5%
PROPERTY ID NUMBER: 12-11C30-011-00W) PROPERTY ADDRESS. 720 ATLANTA AVENUE
PROPERTY DESCRIPTION: LOT 3, BLOCK 2, PADEN FIRST ADDITION
TOTAL PRINCIPAL AND INTEREST ON ASSESSMENTS ON TAX FORFEIT PROPERTY COMPUTED THRU. JANUARY 31, 1993
DATE COMPUTED 12 -31 -1992
1986 DEFERRED PRINCIPAL ENGINEERING NEWS RECORD COST INDEX AMOUNT
SPECIAL ORIGINAL INTEREST ANNUAL YEARS BALANCE 1992 TOTAL &INTEREST ENRCI ENRCI ENRCI ENRCI DUE
ASSESS YEAR PRINCIPAL RATE PAYMENT PAID TO PAY 0.083 INTEREST AMOUNT RATE AMOUNT YEARLY AMOUNT & PAYABLE
SA -103
1981
$4,315.67
10,50%
$431.57
4
$2,589.40
7.063
$1,925.87
$4,515,27
1.5039
$6,490.14
$649.01
$3,894.09
$3,894.09
SA -121
1981
$14.695.70
7,00%
$1,46957
4
$8,817.42
7.083
$4,37197
$13,189.39
1.5039
$22,100.21
$2,210.02
$13,280.12
$13,189.39
SA -122
1981
$1,813.39
7.00%
$181.34
4
31,086,03
7.083
$539.48
$1,627.52
1,5039
$2,727.08
$272.71
$1,636.25
$1,827.52
SA -123
1961
$1,738.24
7.00%
$17382
4
$1,042.94
7.083
$517.13
$1,580.07
1.5039
$2,614.06
$261.41
$1568.44
$1,580.07
SA -149
1982
$3,72589
10.50%
$372.59
3
$2,608,12
7.083
$1,939.79
$4547.91
1.3610
$5, 070.94
$507.09
$3,549.86
$3,849.88
SA -150
1982
$2,065.18
1050%
$20652
3
$1,445,63
7,083
$1,075.18
$2520.81
1,3610
$2,810.71
$28107
$1,967.50
$1,987.50
SA -159
1983
$3704.37
910%
$370.44
2
$2,963.50
7.083
$1,910.22
S4,873.72
1.2806
$4,743.65
$474.37
$3,794.92
$3,794.92
SA -270
1991
$714.18
618%
$71.42
0
$714.18
1.083
$47.81
$761.99
NA
NA
NA
NA
$761.99
SA -278
1992
$3744.28
5.25%
$374.43
0
$3,744.28
0083
$16.38
$3,750.68
NA
NA
NA
NA
$3,760.66
$36516.90
$3,65169
$25013.51
$12,34384
$37.357.34
434,105.79
•
This letter confirms our conference of this past Thursday. As you
know, John Rodeberg, myself and you met to discuss the status of
assessments in Paden's Addition. we have received a request from
Attorney Pete Kasal, representing Mark Schantzen, for a very
substantial reduction in the assessments on one of the lots so that
development of the property becomes feasible.
I am advised that the lot in question, Lot 3, Block 2, has
approximately $36,000 in assessments and also may have soil
correction problems. Lot 4 in the same block, owned by Joe
Krammer, also has substantial assessments and apparently has severe
soil correction problems.
There is significant confusion with respect to the Schantzen
property as to whether or not Schantzen received correct
information regarding the status of the assessments. John Rodeberg
prepared a detailed letter outlining some of the history of the
assessment searches regarding this property, but in summary, it
appears at least possible that Schantzen might have been cognizant
of an assessment search setting forth an assessment in the amount
of approximately $22,000 as opposed to the actual assessment
amount.
Regardless, there are a variety of problems associated with the
assessments in this subdivision.
CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION X — �Y,
��CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION U / r
ARNOLD, ANDERSON & DOVE
PROFESSIONAL LIMITED LIABILITY PARTNERSHIP
ATTORNEYS AT LAW
101 PARK PLACE
DAVID B. ARNOLD' HUTCHINSON, MINNESOTA 55350.2563
OF COUNSEL
STEVEN A. ANDERSON
RAYMOND C. LALLIER
G. BARRY ANDERSON' (612) 5877575
,JANE VAN VALKENBURG
STEVEN S. HOGE FAX 1612) 587- 4096
LAURA K. FRETLAND
5881 CEDAR LAKE ROAD
DAVID A. BRUEGGEMANN RESIDENT ATTORNEY
MINNEAPOLIS, MINNESOTA 55416
PAUL D. DOVE **
G. BARRY ANDERSON
(612) 545 -9000
RICHARD G. McGEE
FAX (612) 5451793
CATHRYN D. REHER
GINA M. BRANDT
501 SOUTH FOURTH STREET
BRETT D. ARNOLD
PRINCETON, MINNESOTA 55371
April 7, 1995
16121 3832214
ALSO ADMITTED IN TE..A...Cw 1011n
FAX 16121389 -5506
Mr. Gary D. Plotz
City Administrator
Hutchinson City Center
111 Hassan Street S.E.
Hutchinson, Mn. 55350
Re: Paden's Addition
Our File No. 3188 -94262
Dear Gary:
•
This letter confirms our conference of this past Thursday. As you
know, John Rodeberg, myself and you met to discuss the status of
assessments in Paden's Addition. we have received a request from
Attorney Pete Kasal, representing Mark Schantzen, for a very
substantial reduction in the assessments on one of the lots so that
development of the property becomes feasible.
I am advised that the lot in question, Lot 3, Block 2, has
approximately $36,000 in assessments and also may have soil
correction problems. Lot 4 in the same block, owned by Joe
Krammer, also has substantial assessments and apparently has severe
soil correction problems.
There is significant confusion with respect to the Schantzen
property as to whether or not Schantzen received correct
information regarding the status of the assessments. John Rodeberg
prepared a detailed letter outlining some of the history of the
assessment searches regarding this property, but in summary, it
appears at least possible that Schantzen might have been cognizant
of an assessment search setting forth an assessment in the amount
of approximately $22,000 as opposed to the actual assessment
amount.
Regardless, there are a variety of problems associated with the
assessments in this subdivision.
CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION X — �Y,
��CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION U / r
Mr. Gary D. Plotz
April 7, 1995
Page 2
My suggestion is that the City acquire these two lots, if it can be
done on an extremely economical basis. I have reason to believe
that the Schantzen property could probably be acquired for
something in the neighborhood of $1500 and I would presume that a
similar amount could be offered to Mr. Krammer for his property.
Before making the offer, we would want to review the status of
title with respect to these property, particularly since there is
at least some indication that the FGIC may have a claim to all or
a portion of the subject property.
However, this would allow the City to use the Krammer property as
a wetlands area and perhaps, at some point in the hypothetical
distant future, the Schantzen property could be developed. Once we
acquire the property, the issue of assessments largely disappears.
We might also want to consider acquiring the Daggett property which
suffers from some of the same circumstances. That property is a
metes and bounds described parcel of Lot 4, Block 3 and is adjacent
to the Word of Life real estate.
It is my understanding that this item is going to be placed on the
City Council agenda next Tuesday evening for discussion. If I can
provide any additional information, please do not hesitate to
contact me.
Thank you.
Very truly yours,
ARNOLD, ANDERSON & DOVE, P.L.L.P.
G. Barry Anderson
GBA:lm
0
0
LJ
u
DAVID B. ARNOLD'
STEVEN A. ANDERSON
G. BARRY ANDERSON'
STEVEN S. HOGE
LAURA K. FRETLAND
DAVID A. BRUEGGEMANN
PAUL D. DOVE —
RICHARD G. McGEE
CATHRYN D. REHER
GINA M. BRANDT
BRETT D. ARNOLD
'ALSO ADMITTED IN TES.s AND NEw YDRK
ARNOLD, ANDERSON & DOVE
PROFESSIONAL LIMITED LIABILITY PARTNERSHIP
ATTORNEYS AT LAW
101 PARK PLACE
HUTCHINSON, MINNESOTA 55350 -2563
Mr. Gary D. Plotz
City Administrator
Hutchinson City Center
111 Hassan Street S.E.
Hutchinson, Mn. 55350
(612) 567 -7575
FAX (612) 587-4096
RE51DENT ATTORNEY
G. BARRY ANDERSON
May 19, 1995
Re: Paden's Addition Assessment Issue
Our File No. 3188 -94262
Dear Gary:
OF COUNSEL
RAYMOND C. LALLIER
JANE VAN VALKENBURG
5881 CEDAR LAKE ROAD
MINNEAPOLIS, MINNESOTA 55416
(612) 545 -9000
FAX (61 2) 545 -1793
501 SOUTH FOURTH STREET
PRINCETON, MINNESOTA 55371
(612)389 -2214
FAX 16121 309 -5506
I believe I corresponded with you on this matter a few weeks ago.
As you may recall, John Rodeberg and I had a meeting with Pete
Kasal regarding assessment problems in Paden's Addition.
I would like to have this matter placed on the agenda for the next
regularly scheduled City Council meeting as I believe we do owe Mr.
Kasal a response to his request.
He has pointed out that the present level assessments, plus soil
correction costs, makes the property that he purchased virtually
undevelopable. He also has some issues relating to the matter in
which certain assessment searches were handled.
As I see it, it appears that the Council has three choices.
First, the Council can choose to do nothing, leaving the present
assessments in place with interest continuing to accrue. In the
near term, under this scenario, it is unlikely the property will
develop.
Second, the Council can engage in a land write down program to
reduce the assessments to a level more consistent with the value of
the property and the expense of constructing buildings on the
property. As you may recall, significant soil problems are present
with respect to many of the lots.
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 ,� r 1
Mr. Gary D. Plotz
May 19, 1995
Page 2
The third possibility is to have the City make a one time, non
negotiable, offer to purchase the property. In the case of the
property in which Mr. Kasal has an interest, the offer would likely
be in the $2,000 range which is just slightly more than the
investment made by Mr. Kasal and his partner. The upside of this
proposal is that the City would control development of the site.
The downside is that the City would probably need to extend similar
offers to other property owners in the interests of fairness.
I believe John Rodeberg can furnish you with additional information
regarding the status of assessments against the various lots and
some of the history of this whole transaction.
Since Mr. Kasal has been patiently waiting for the City to decide,
even if the decision is to do nothing, I would like to have this
matter considered at the May 23rd City Council meeting.
Thank you for your attention to these matters. Best regards.
Very truly yours,
ARNOLD, ANDERSON & DOVE, P.L.L.P.
G. Barry Anderson
GBA:lm
•
0
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June 8, 1995
' �I
SUBJECT: BOND SALE FOR 1995
Bids for the bonds for the improvement projects 1995 and the tri-
agency facility will be opened Monday afternoon. We will have bid
tabs and the resolutions to approve the sale of these bonds for the
Monday evening meeting.
Cin Center
111 Hassan Street SE
Hutchinson, MN 55350 -2522
(612) 587 -5151
Fart612)234 -4240
Parks & Recreation
900 Harrington Street SW
Hutchinson, MN 55350 -3097
612) 587-2975
Fax (612) 234 -422 40
- Prinred nn r,, w led puper -
Police Services
10 Franklin Street SW
Hutchinson, MN 55350 -2464
(612) 587 -2242
Fax (612) 587 -64'7
dr
ESTIK&TE: $1,781,079
5.619L
BID SUMMARY SHEET
• $4,185,000 General Obligaton Improvement Bonds, Series 1995A
City of Hutchinson, Minnesota
SALE: June 12, 1995
BID OPENING: 3:00 p.m. Central
•
Account Manager: CRONIN & COMPANY, INC.
SMITH BARNEY, INC.
Account Members:
Net Interest Cost: $1,642,056.92 Net Interest Rate: 5.2058 Bid Ranking: 4
Account Manager: DAIN BOSWORTH. INC.
Account Members:
Net Interest Cost: $1,633,008.12 Net Interest Rate: 5.1750 Bid Ranking: 2
Account Manager: FBS INVESTMENT SERVICES, INC.
Account Members: Dougherty, Dawkins, Strand & Bigelow, Inc.
Juran & Moody, Inc.
American Bank National Association
John G. Kinnard & Company
Net Interest Cost: $1, 618, 235.83 Net Interest Rate: 5.128 Bid Ranking: I
EHLERS AND ASSOCIATES, INC.
/i ,
Account Manager: FIRSTAR BANK MILWAUKEE, NA. .
Account Members:
Net Interest Cost: PASS Net Interest Rate: Bid Ranking:
Account Manager: HARRIS TRUST AND SAVINGS BANK
Account Members: Boatmen's National Bank of St. Louis
Firstar Bank Milwaukee, N.A.
Josephthal, Lyon & Ross, Inc.
Southwest. Securities Inc.
Net Interest Cost: PASS Net Interest Rate: Bid Ranking:
11
Account Manager: WILLIAM R. HOUGH & CO.
RAYMOND JAMES & ASSOCIATES, INC.
NIKE SECURITIES L.P.
Account Members:
Net Interest Cost: $1, 634, 789. 17 Net Interest Rate: 5. 1835 Bid Ranking: 3
Account Manager. KEMPER SECURITIES, INC.
Account Members:
Net Interest Cost: PASS Net Interest Rate: Bid Ranking:
•
SERIES 1995A
• Account Manager. NORWEST INVESTMENT SERVICES, INC.
PIPER JAFFRAY INC.
Account Members: Miller & Schroeder Financial, Inc.
Peterson Financial Corp.
Net Interest Cost: PASS Net Interest Rate: Bid Ranking:
Account Manager. PRUDENTIAL SECURITIES, INC.
DEAN WITTER REYNOLDS, INC.
ABN AMRO SECURITIES (USA) INC
Account Members:
Net Interest Cost: PASS Net Interest Rate: Bid Ranking:
•
Account Manager:
Account Members:
Net Interest Cost: PASS Net Interest Rate: Bid Ranking:
Account Manager.
Account Member$:
Net Interest Cost: PASS Net Interest Rate: Bid Ranking:
•
•
•
•
ESTIKATE: $855,434
BID SUMMARY SHEET 5.892
$1,500,000 General Obligaton Bonds, Series 1995B
City of Hutchinson, Minnesota
SALE: June 12, 1995
BID OPENING: 3:00 p.m. Central
Account Manager: CRONIN & COMPANY, INC.
SMITH BARNEY, INC.
Account Members:
Net Interest Cost: $795,349.87 Net Interest Rate: 5.5023 Bid Ranking: 1
Account Manager: DAIN BOSWORTH, INC.
Account Members:
Net Interest Cost: $796.817. 13 Net Interest Rate: 5.5131 Bid Ranking: 2
Account Manager: FBS INVESTMENT SERVICES, INC.
Account Members: Dougherty, Dawkins, Strand & Bigelow, Inc.
Juran & Moody, Inc.
American Bank National Association
John G. Kinnard & Company
Net Interest Cost: PASS Net Interest Rate:
EHLERS AND ASSOCIATES, INC.
Bid Ranking:
?A< <>>
Account Manager: FIRSTAR BANK MILWAUKEE, NA.
Account Members:
Net Interest Cost: PASS Net Interest Rate: Bid Ranking:
Account Manager: HARRIS TRUST AND SAVINGS BANK
Account Members: Boatmen's National Bank of St. Louis
Firstar Bank Milwaukee, N.A.
Josephthal, Lyon & Ross, Inc.
Southwest Securities Inc.
Net Interest Cost: PASS Net Interest Rate: Bid Ranking:
Account Manager: WILLIAM R. HOUGH & CO.
RAYMOND JAMES & ASSOCIATES, INC.
NIKE SECURITIES L.P.
Account Members:
Net Interest Cost.
PASS
Net Interest Rate:
Account Manager. KEMPER SECURITIES, INC.
Account Members:
Bid Ranking:
Net Interest Cost: PASS Net Interest Rate: Bid Ranking:
0
r1
U
•
SERIES 1995B
• Account Manager: NORWEST INVESTMENT SERVICES, INC.
PIPER JAFFRAY INC.
Account Members: Miller & Schroeder Financial, Inc.
Peterson Financial Corp.
Net Interest Cost: PASS Net Interest Rate: Bid Ranking:
Account Manager
Account Members:
Net Interest Cost: PASS Net Interest Rate: Bid Ranking:
• Account Manager.
Account Members:
Net Interest Cost: PASS Net Interest Rate: Bid Ranking:
Account Manager.
Account Members:
Net Interest Cost: PASS Net Interest Rate: Bid Ranking:
•
•
Pw"3316N..L t.1YI"D LIA TUTY PAQ ZN HIP
NEW YORK
PILLSBURY CENTER SOUTH
WASHINGTON, D. C.
220 SOUTH SIXTH STREET
DENVER
MINNEAPOLIS, MINNESOTA 66402 -1488
ORANGE COUNTY, CA
(612) 340 -2600
LONDON
PAX (416) O 2B
BRUSSELS
HONG KONG
F-1 L
C,
J
Mr. Kenneth Merrill
City of Hutchinson
111 Hassan Street
Hutchinson, MN 55350
DoxsEY & WHITNEY
Pw"3316N..L t.1YI"D LIA TUTY PAQ ZN HIP
PILLSBURY CENTER SOUTH
SEATTLE
220 SOUTH SIXTH STREET
ROCHESTER, MN
MINNEAPOLIS, MINNESOTA 66402 -1488
(612) 340 -2600
BILLINGS
PAX (416) O 2B
GREAT FALLS'
MISSOULA
JEROMB P. OIILGAN
DES MOINES
(612) 940-288'd
PARGO
June 8, 1995
Re: General Obligation Improvement Bonds, Series 1995A
General Obligation Bonds, Series 1995B
City of Hutchinson, Minnesota
Dear Ken:
RECEIVED
LIN if95
CITY OF HUTCHINSON
Enclosed for consideration by the City Council at Monday's meeting is a
copy of the resolutions awarding the sale and setting forth the terms, conditions and
security for the Bonds referred to above. The resolutions contain various blanks
which will be completed once the sale details have been determined.
Should you have any questions or comments, please give me a call.
JPG:cmn
Enclosures
CC. Steve Apfelbacher
Yours truly,
�rO e P. Gillig
q'
• CERTIFICATION OF MINUTES RELATING TO
$4,185,000 GENERAL OBLIGATION
IMPROVEMENT BONDS SERIES 1995A
Issuer: City of Hutchinson, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting, held on June 12, 1995,
at 6:00 o'clock p.m., in the Council Chambers at the Hutchinson City Center.
Councilmembers present:
Councilmembers absent:
Documents Attached:
Minutes of said meeting (pages): 1 through 20
RESOLUTION NO. 10494
RESOLUTION RELATING TO $4,185,000 GENERAL OBLIGATION
IMPROVEMENT BONDS SERIES 1995A; AUTHORIZING THE
• ISSUANCE, AWARDING THE SALE, FLYING THE FORM AND
DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY
THEREOF AND THE SECURITY THEREFOR AND LEVYING AD
VALOREM TAXES FOR THE PAYMENT THEREOF
I, the undersigned, being the duly qualified and acting recording officer
of the public corporation issuing the obligations referred to in the title of this
certificate, certify that the documents attached hereto, as described above, have been
carefully compared with the original records of said corporation in my legal custody,
from which they have been transcribed; that said documents are a correct and
complete transcript of the minutes of a meeting of the governing body of said
corporation, and correct and complete copies of all resolutions and other actions
taken and of all documents approved by the governing body at said meeting, so far
as they relate to said obligations; and that said meeting was duly held by the
governing body at the time and place and was attended throughout by the members
indicated above, pursuant to call and notice of such meeting given as required by
law.
WITNESS my hand officially as such recording officer this _ day of
1995.
. Gary D. Plotz
(SEAL) City Administrator
q— A
The City Administrator reported that proposals had been •
received by the City prior to 3:00 P.M., Central Daylight Time today for the purchase
of the Bonds in accordance with the Terms and Conditions of Sale for the $4,185,000
General Obligation Improvement Bonds, Series 1995A of the City as previously
approved by a resolution of the City Council. The bids have been read and
tabulated, and the terms of each have been determined to be as follows:
Total Interest
Bid for Interest Cost -Net Average
Dame of Bidder Principal Rates Rate
•
E
• Councilmember introduced the
following resolution and moved its adoption, the reading of which was dispensed
with by unanimous consent:
RESOLUTION NO. 10494
RESOLUTION RELATING TO $4,185,000 GENERAL OBLIGATION
IMPROVEMENT BONDS, SERIES 1995A; AUTHORIZING THE
ISSUANCE, AWARDING THE SALE, FIXING THE FORM AND
DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY
THEREOF AND THE SECURITY THEREFOR AND LEVYING AD
VALOREM TAXES FOR THE PAYMENT THEREOF
BE IT RESOLVED by the City Council of the City of Hutchinson,
Minnesota (the City), as follows:
Section 1. Recitals.
1.01. Authorization. This Council has heretofore ordered various local
improvement projects designated as Project Nos.
• (the Improvements), to be constructed within the
City under and pursuant to Minnesota Statutes, Chapter 429. The present estimated
total cost of the Improvements is as follows:
Project Costs .. ...........................:... $3,982,985
Discount .... ............................... 50,220
Cost of Issuance ............................. 24,455
Capitalized Interest .......................... 160.076
Subtotal ..... ............................... 4,217,736
Less: Interest Earnings ....................... 32.736
TOTAL ............................... 000
This Council has previously determined to issue and sell $4,185,000 principal
amount of General Obligation Improvement Bonds, Series 1995A, of the City (the
Bonds) to defray the expense incurred and estimated to be incurred by the City in
making the Improvements, including every item of cost of the kinds authorized in
Minnesota Statutes, Section 475.65, and $38,170 representing interest as provided in
• Minnesota Statutes, Section 475.56.
1.02. Sale of Bonds. The City has retained Ehlers and Associates, Inc., •
an independent financial advisor, to assist the City in connection with the sale of
the Bonds. The Bonds are being sold pursuant to Minnesota Statutes, Section 475.60,
Subdivision 2, paragraph (9), without meeting the requirements for public sale
under Minnesota Statutes, Section 475.60, Subdivision 1. Pursuant to the Terms and
Conditions of Sale for the Bonds, sealed bids for the purchase of the Bonds
were received at or before the time specified for receipt of bids. The bids have been
opened and publicly read and considered, and the purchase price, interest rates and
net interest cost under the terms of each bid have been determined.
The most favorable proposal received is that of
of (the Purchaser), to purchase the
Bonds at a price of $ the Bonds to bear interest at the rates set
forth in Section 3.01. The proposal is hereby accepted, and the Mayor and the City
Administrator are hereby authorized and directed to execute a contract on the part of
the City for the sale of the Bonds with the Purchaser. The good faith checks of the
unsuccessful bidders shall be returned forthwith.
1.03. Issuance of Bonds. All acts, conditions and things required by the
Constitution and laws of the State of Minnesota to be done, to exist, to happen and
to be performed prior to the issuance of the Bonds have been done, do exist, have
happened, and have been performed, wherefore it is now necessary for this Council
to establish the form and terms of the Bonds, to provide for the security thereof, and
to issue the Bonds forthwith.
1.04. Maturities. This Council finds and determines that the •
maturities of the Bonds, as set forth in Section 3.01 hereof, are warranted by the
anticipated collection of the assessments and ad valorem taxes to be levied for the
cost of the Improvements.
1.05. Consolidation of Improvements. Pursuant to Minnesota
Statutes, Section 435.56, the Improvements are hereby consolidated and joined as
one project.
Section 2. Form of Bonds. The Bonds shall be prepared in substantially
the following form:
-2- •
• UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF McLEOD
CITY OF HUTCHINSON
GENERAL OBLIGATION
IMPROVEMENT BOND, SERIES 1995A
Date of
Rate Maturity Original Issue CUSIP
June 1, 1995
REGISTERED
OWNER:
PRINCIPAL
AMOUNT: DOLLARS
• THE CITY OF HUTCHINSON, McLeod County, Minnesota (the "City"),
acknowledges itself to be indebted and, for value received, hereby promises to pay to
the registered owner above named, the principal amount indicated above, on the
maturity date specified above, with interest thereon from the date hereof at the
annual rate specified above computed on the basis of a 360 -day year consisting of
twelve 30-day months, payable on February 1 and August 1 in each year,
commencing February 1, 1996, to the person in whose name this Bond is registered
at the close of business on the 15th day (whether or not a business day) of the
immediately preceding month, all subjecf to the provisions referred to herein with
respect to the redemption of the principal of this Bond before maturity. The interest
hereon and, upon presentation and surrender hereof at the office of the City Finance
Director, in Hutchinson, Minnesota, as Registrar, Transfer Agent and Paying,Agent
(the 'Bond Registrar "), or its successor designated under the Resolution described
herein, the principal hereof, are payable in lawful money of the United States of
America by check or draft of the City or the Bond Registrar if a successor to the City
Finance Director as Bond Registrar has been designated under the Resolution
described herein.
This Bond is one of an issue in the aggregate principal amount of
$4,185,000 (the 'Bonds "), all of like date and tenor except as to serial number, interest
• rate, redemption privilege and maturity date, issued pursuant to a resolution
-3-
adopted by the City Council on June 12, 1995 (the 'Resolution ") to pay the cost of •
construction of local improvements in the City (the "Improvements "), and is issued
pursuant to and in full conformity with the provisions of the Constitution and laws
of the State of Minnesota thereunto enabling, including Minnesota Statutes,
Chapters 429 and 475. This Bond is payable primarily from the 1995 Improvement
Bond Fund (the "Fund ") of the City, but the City is required by law to pay maturing
principal hereof and interest thereon out of any funds in the treasury if moneys on
hand in the Fund are insufficient therefor. The Bonds are issuable only as fully
registered bonds, in denominations of $5,000 or any integral multiple thereof, of
single maturities.
Bonds maturing in the years 1997 through 2001 are payable on their
respective stated maturity dates without option of prior payment, but Bonds having
stated maturity dates in the years 2002 through 2007 are each subject to redemption
and prepayment, at the option of the City and in whole or in part and if in part, in
the maturities selected by the City and by lot, assigned in proportion to their
principal amount, within any maturity, on February 1, 2001 and on any date
thereafter, at a price equal to the principal amount thereof to be redeemed plus
interest accrued to the date of redemption. At least thirty days prior to the date set
for redemption of any Bond, notice of the call for redemption will be mailed to the
Bond Registrar and to the registered owner of each Bond to be redeemed at his
address appearing in the Bond Register, but no defect in or failure to give such
mailed notice of redemption shall affect the validity of proceedings for the •
redemption of any Bond, not affected by such defect or failure. Official notice of
redemption having been given as aforesaid, the Bonds or portions of Bonds so to be
redeemed shall, on the redemption date, become due and payable at the redemption
price herein specified and from and after such date (unless the City shall default in
the payment of the redemption price) such Bond or portions of Bonds shall cease to
bear interest. Upon the partial redemption of any Bond, a new Bond or Bonds will
be delivered to the registered owner without charge, representing the remaining
principal amount outstanding.
As provided in the Resolution and subject to certain limitations set
forth therein, this Bond is transferable upon the books of the City at the principal
office of the Bond Registrar, by the registered owner hereof in person or by his
attorney duly authorized in writing upon surrender hereof together with a written
instrument of transfer satisfactory to the Bond Registrar, duly executed by the
registered owner or his attorney; and may also be surrendered in exchange for Bonds
of other authorized denominations. Upon such transfer or exchange, the City will
cause a new Bond or Bonds to be issued in the name of the transferee or registered
owner, of the same aggregate principal amount, bearing interest at the same rate and
maturing on the same date, subject to reimbursement for any tax, fee or
governmental charge required to be paid with respect to such transfer or exchange.
-4- •
• The City and the Bond Registrar may deem and treat the person in
whose name this Bond is registered as the absolute owner hereof, whether this
Bond is overdue or not, for the purpose of receiving payment and for all other
purposes, and neither the City nor the Bond Registrar shall be affected by any notice
to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED
that all acts, conditions and things required by the Constitution and laws of the State
of Minnesota to be done, to exist, to happen and to be performed precedent to and in
the issuance of this Bond in order to make it a valid and binding general obligation
of the City according to its terms have been done, do exist, have happened and have
been performed as so required; that prior to the issuance hereof the City has levied
or agreed to levy special assessments on property specially benefited by the
Improvements and ad valorem taxes on all taxable property within the City,
collectible in the years and amounts required to produce sums not less than 5% in
excess of the principal of and interest on the Bonds as such principal and interest
respectively become due, and has appropriated the same to the Fund in the manner
specified in Minnesota Statutes, Section 429.091, Subdivision 4; that, to take care of
any accumulated or anticipated deficiency in the Fund, additional ad valorem taxes
are required by law to be levied upon all taxable property in the City without
limitation as to rate or amount; and that the issuance of this Bond does not cause
the indebtedness of the City to exceed any charter, constitutional or statutory
. limitation.
This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security or benefit under the Resolution until the Certificate of
Authentication hereon shall have been executed by the Bond Registrar by manual
signature of the Bond Registrar, or in the event the City Finance Director is no
longer acting as Bond Registrar, one of the authorized representatives of the Bond
Registrar.
IN WTTNESS WHEREOF, the City of Hutchinson, McLeod County,
State of Minnesota, by its City Council, has caused this Bond to be executed by the
signatures of the Mayor and the City Administrator and has caused this Bond to be
dated as of the date set forth below.
Date of Authentication:
City Administrator
E
-5-
Mayor
CERTIFICATE OF AUTHENTICATION •
This is one of the Bonds delivered pursuant to the Resolution
mentioned within.
City Finance Director,
as Bond Registrar
The following abbreviations, when used in the inscription on the face
of this Bond, shall be construed as though they were written out in full according to
the applicable laws or regulations:
TEN COM -- as tenants UNIF TRANS MIN ACT.......... Custodian ..........
in common (Cult) (Minor)
TEN ENT -- as tenants
by the entireties
under Uniform Transfers to
JT TEN — as joint tenants Minors
with right of
survivorship and Act .................... ...............................
not as tenants in (State)
common
Additional abbreviations may also be used.
P
-6- •
. ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto the within Bond and all
rights thereunder, and hereby irrevocably constitutes and appoints
attorney to transfer the within Bond on the books kept
for registration thereof, with full power of substitution in the premises.
Dated:
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE:
Signature(s) must be guaranteed by an
•
"eligible guarantor institution"
meeting the requirements of the
Bond Registrar, which requirements
include membership or participation
in the Securities Transfer Association
Medalion Program (STAMP) or such
other "signature guaranty program"
as may be determined by the Bond
Registrar in addition to or in
substitution for STAMP, all in
substitution for STAMP, all in
accordance with the Securities
Exchange Act of 1934, as amended.
NOTICE: This signature(s) to this
assignment must correspond with
the name as it appears upon the face of
the within Bond in every particular,
without alteration, enlargement or
any change whatsoever.
3.01. Maturities, Interest Rates, Denominations, Payment. The City
shall forthwith issue and deliver the Bonds, which shall be denominated "General
Obligation Improvement Bonds, Series 1995A" and shall be payable primarily from
the 1995 Improvement Bond Fund created in Section 4.02 hereof. The Bonds shall
be issuable in the denomination of $5,000 each or any integral multiple thereof,
. shall mature on February 1 in the years and amounts set forth below, and Bonds
-7-
maturing in such years and amounts shall bear interest from date of issue until paid
or duly called for redemption at the rates per annum shown opposite such years and
amounts as follows:
Year
Amount Rate
Year
Amount Ike
1997
$ 75,000
2003
$420,000
1998
260,000
2004
445,000
1999
345,000
2005
475,000
2000
360,000
2006
500,000
2001
380,000
2007
525,000
2002
400,000
The Bonds shall be issuable only in fully registered form. The interest thereon and,
upon surrender of each Bond, the principal amount thereof, shall be payable by
check or draft issued by the Registrar described herein. Each Bond shall be dated by
the Registrar as of the date of its authentication.
3.02. Dat • Interest Payment hates. Interest on the Bonds shall be
payable on February 1 and August 1 in each year, commencing February 1, 1996, to
the owner of record thereof as of the close of business on the fifteenth day of the
immediately preceding month, whether or not such day is a business day. Interest
on the Bonds will be computed on the basis of a 360 -day year consisting of twelve 30- •
day months and will be rounded pursuant to the rules of the Municipal Securities
Rulemaking Board.
3.03. Registration. The City shall appoint, and shall maintain, a bond
registrar, transfer agent and paying agent (the Registrar). The effect of registration
and the rights and duties of the City and the Registrar with respect thereto shall be as
follows:
(a) Register. The Registrar shall keep at its principal corporate trust
office a bond register in which the Registrar shall provide for the registration
of ownership of Bonds and the registration of transfers and exchanges of
Bonds entitled to be registered, transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of any Bond duly
endorsed by the registered owner thereof or accompanied by a written
instrument of transfer, in form satisfactory to the Registrar, duly executed by
the registered owner thereof or by an attorney duly authorized by the
registered owner in writing, the Registrar shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new Bonds
of a like aggregate principal amount and maturity, as requested by the
transferor. The Registrar may, however, close the books for registration of
-8- •
• any transfer after the fifteenth day of the month preceding each interest
payment date and until such interest payment date.
(c) Exchange of Bonds. Whenever any Bond is surrendered by the
registered owner for exchange, the Registrar shall authenticate and deliver
one or more new Bonds of a like aggregate principal amount and maturity, as
requested by the registered owner or the owner's attorney duly authorized in
writing.
(d) Cancellation. All Bonds surrendered upon any transfer or
exchange shall be promptly cancelled by the Registrar and thereafter disposed
of as directed by the City.
(e) Improper or Unauthorized Transfer. When any Bond is presented
to the Registrar for transfer, the Registrar may refuse to transfer the same
until it is satisfied that the endorsement on such Bond or separate instrument
of transfer is legally authorized. The Registrar shall incur no liability for its
refusal, in good faith, to make transfers which it, in its judgment, deems
improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar
• may treat the person in whose name any Bond is at any time registered in the
bond register as the absolute owner of such Bond, whether such Bond shall be
overdue or not, for the purpose of receiving payment of, or on account of, the
principal of and interest on such Bond and for all other purposes, and all such
payments so made to any such registered owner or upon the owner's order
shall be valid and effectual to satisfy and discharge the liability of the City
upon such Bond to the extent of the sum or sums so paid.
(g) Taxes. Fees and Charges. For every transfer or exchange of Bonds
(except for an exchange upon a partial redemption of a Bond), the Registrar
may impose a charge upon the owner thereof sufficient to reimburse the
Registrar for any tax, fee or other governmental charge required to be paid
with respect to such transfer or exchange.
(h) Mutilated. Lost. Stolen or Destroyed Bonds. In case any Bond shall
become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a
new Bond of like amount, number, maturity date and tenor in exchange and
substitution for and upon cancellation of any such mutilated Bond or in lieu
of and in substitution for any such Bond lost, stolen or destroyed, upon the
payment of the reasonable expenses and charges of the Registrar in
connection therewith; and, in the case of a Bond lost, stolen or destroyed,
upon filing with the Registrar of evidence satisfactory to it that such Bond
• was lost, stolen or destroyed, and of the ownership thereof, and upon
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furnishing to the Registrar of an appropriate bond or indemnity in form,
substance and amount satisfactory to it, in which both the City and the •
Registrar shall be named as obligees. All Bonds so surrendered to the
Registrar shall be cancelled by it and evidence of such cancellation shall be
given to the City. If the mutilated, lost, stolen or destroyed Bond has already
matured or been called for redemption in accordance with its terms, it shall
not be necessary to issue a new Bond prior to payment.
3.04. Appointment of Initial Registrar. The City hereby appoints the
City Finance Director, as the initial Registrar. In the event that the City determines
to discontinue the book entry-only system for the Bonds as described in paragraph
(c) of Section 3.07, or DTC, as defined in Section 3.07, determines to discontinue
providing its services with respect to the Bonds and a new securities depository is
not appointed for the Bonds, the City will designate a suitable bank or trust company
to act as successor Registrar if the City Finance Director is then acting as Registrar.
The City reserves the right to remove any Registrar upon thirty (30) days' notice and
upon the appointment of a successor Registrar, in which event the predecessor
Registrar shall deliver all cash and Bonds in its possession to the successor Registrar
and shall deliver the bond register to the successor Registrar.
3.05. Redemption. Bonds maturing in the years 1997 through 2001
shall not be subject to redemption prior to maturity, but Bonds maturing in the
years 2002 through 2007 shall each be subject to redemption and prepayment, at the •
option of the City, in whole or in part, and if in part, in the maturities selected by the
City and, within any maturity, in $5,000 principal amounts selected by the Registrar
by lot, on February 1, 2001 and on any date thereafter at a price equal to the principal
amount thereof to be redeemed plus interest accrued to the date of redemption. At
least thirty days prior to the date set for redemption of any Bond, the City
Administrator shall cause notice of the call for redemption to be mailed to the
Registrar and to the registered owner of each Bond to be redeemed, but no defect in
or failure to give such mailed notice of redemption shall affect the validity of
proceedings for the redemption of any Bohd not affected by such defect or failure.
The notice of redemption shall specify the redemption date, redemption price, the
numbers, interest rates and CUSIP numbers of the Bonds to be redeemed and the
place at which the Bonds are to be surrendered for payment, which is the principal
office of the Registrar. Official notice of redemption having been given as aforesaid,
the Bonds or portions thereof so to be redeemed shall, on the redemption date,
become due and payable at the redemption price therein specified and from and
after such date (unless the City shall default in the payment of the redemption price)
such Bonds or portions thereof shall cease to bear interest.
In addition to the notice prescribed by the preceding paragraph, the City
shall also give, or cause to be given, notice of the redemption of any Bond or Bonds
or portions thereof at least 35 days before the redemption date by certified mail or
10- •
• telecopy to the Purchaser and all registered securities depositories then in the
business of holding substantial amounts of obligations of the character of the Bonds
(such depositories now being The Depository Trust Company, of Garden City, New
York; Midwest Securities Trust Company, of Chicago, Illinois; Pacific Securities
Depository Trust Company, of San Francisco, California; and Philadelphia
Depository Trust Company, of Philadelphia, Pennsylvania) and one or more
national information services that disseminate information regarding municipal
bond redemptions; provided that any defect in or any failure to give any notice of
redemption prescribed by this paragraph shall not affect the validity of the
proceedings for the redemption of any Bond or portion thereof.
Bonds in a denomination larger than $5,000 may be redeemed in part
in any integral multiple of $5,000. The owner of any Bond redeemed in part shall
receive, upon surrender of such Bond to the Registrar, one or more new Bonds of
such same series in authorized denominations equal in principal amount to the
unredeemed portion of the Bond so surrendered.
3.06. Preparation and Delivery. The Bonds shall be prepared under the
direction of the City Administrator and shall be executed on behalf of the City by the
signatures of the Mayor and the City Administrator. In case any officer whose
signature shall appear on the Bonds shall cease to be such officer before the delivery
of any Bond, such signature shall nevertheless be valid and sufficient for all
• purposes, the same as if such officer had remained in office until delivery.
Notwithstanding such execution, no Bond shall be valid or obligatory for any
purpose or entitled to any security or benefit under this resolution unless and until
a certificate of authentication on such Bond has been duly executed by the manual
signature of the Registrar, or in the event the City Finance Director is no longer
acting as Registrar, an authorized representative of the Registrar. Certificates of
authentication on different Bonds need not be signed by the same representative.
The executed certificate of authentication on each Bond shall be conclusive evidence
that it has been authenticated and delivered under this resolution. When the
Bonds have been so executed and authenticated, they shall be delivered by the City
Administrator to the purchaser thereof upon payment of the purchase price in
accordance with the contract of sale heretofore made and executed, and the
purchaser shall not be obligated to see to the application of the purchase pricq.
•
3.07. Securities Depository. (a) For purposes of this Section the
following terms shall have the following meanings:
"Beneficial Owner" shall mean, whenever used with respect to a Bond,
the person in whose name such Bond is recorded as the beneficial owner of such
Bond by a Participant on the records of such Participant, or such person's subrogee.
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"Cede & Co." shall mean Cede & Co., the nominee of DTC, and any .
successor nominee of DTC with respect to the Bonds.
"DTC" shall mean The Depository Trust Company of New York,
New York.
"Participant" shall mean any broker - dealer, bank or other financial
institution for which DTC holds Bonds as securities depository.
"Representation Letter" shall mean the Representation Letter from the
City and the Registrar to DTC with respect to the Bonds, substantially in the form
presented to this Council and ordered placed on file in the office of the City
Administrator.
(b) The Bonds shall be initially issued as separately authenticated fully
registered bonds, and one Bond shall be issued in the principal amount of each
stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds
shall be registered in the bond register in the name of Cede & Co., as nominee of
DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and
exclusive owner of the Bonds registered in its name for the purposes of payment of
the principal of or interest on the Bonds, selecting the Bonds or portions thereof to
be redeemed, if any, giving any notice permitted or required to be given to registered
owners of Bonds under this resolution, registering the transfer of Bonds, and for all
other purposes whatsoever; and neither the Registrar nor the City shall be affected •
by any notice to the contrary. Neither the Registrar nor the City shall have any
responsibility or obligation to any Participant, any person claiming a beneficial
ownership interest in the Bonds under or through DTC or any Participant, or any
other person which is not shown on the bond register as being a registered owner of
any Bonds, with respect to the accuracy of any records maintained by DTC or any
Participant, with respect to the payment by DTC or any Participant of any amount
with respect to the principal of or interest on the Bonds, with respect to any notice
which is permitted or required to be given to owners of Bonds under this
resolution, with respect to the selection by DTC or any Participant of any person to
receive payment in the event of a partial redemption of the Bonds, or with respect
to any consent given or other action taken by DTC as registered owner of the Bonds.
So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the
Registrar shall pay all principal of and interest on such Bond, and shall give all
notices with respect to such Bond, only to Cede & Co. in accordance with the
Representation Letter, and all such payments shall be valid and effective to fully
satisfy and discharge the City's obligations with respect to the principal of and
interest on the Bonds to the extent of the sum or sums so paid. No person other
than DTC shall receive an authenticated Bond for each separate stated maturity
evidencing the obligation of the City to make payments of principal and interest.
Upon delivery by DTC to the Registrar of written notice to the effect that DTC has
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• determined to substitute a new nominee in place of Cede & Co., the Bonds will be
transferable to such new nominee in accordance with paragraph (e) hereof.
(c) In the event the City determines that it is in the best interest of the
Beneficial Owners that they be able to obtain Bonds in the form of bond certificates,
the City may notify DTC and the Registrar, whereupon DTC shall notify the
Participants of the availability through DTC of Bonds in the form of certificates. In
such event, the Bonds will be transferable in accordance with paragraph (e) hereof.
DTC may determine to discontinue providing its services with respect to the Bonds
at any time by giving notice to the City and the Registrar and discharging its
responsibilities with respect thereto under applicable law. In such event the Bonds
will be transferable in accordance with paragraph (e) hereof.
(d) The execution and delivery of the Representation Letter to DTC by
the Mayor, in the form presented to this Council with such changes, omissions,
insertions and revisions as the Mayor shall deem advisable, is hereby authorized,
and execution of the Representation Letter by the Mayor shall be conclusive
evidence of such approval. The Representation Letter shall set forth certain matters
with respect to, among other things, notices, consents and approvals by registered
owners of the Bonds and Beneficial Owners and payments on the Bonds. The
Registrar shall have the same rights with respect to its actions thereunder as it has
with respect to its actions under this resolution.
• (e) In the event that any transfer or exchange of Bonds is permitted
under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished
upon receipt by the Registrar of the Bonds to be transferred or exchanged and
appropriate instruments of transfer to the permitted transferee in accordance with
the provisions of this resolution. In the event Bonds in the form of certificates are
issued to owners other than Cede & Co., its successor as nominee for DTC as
owner of all the Bonds, or another securities depository as owner of all the Bonds,
the provisions of this resolution shall also apply to all matters relating thereto,
including, without limitation, the printing of such Bonds in the form of bond
certificates and the method of payment of principal of and interest on such Bonds in
the form of bond certificates.
Section 4. Security Provisions.
4.01. 1925 Improvement Construction Fund. There is hereby created a
special bookkeeping fund to be designated as the "1995 Improvement Construction
Fund" (hereinafter referred to as the Construction Fund), to be held and
administered by the City Finance Director separate and apart from all other funds of
the City. The City appropriates to the Construction Fund (a) the proceeds of the sale
of the Bonds, and (b) all collections of special assessments levied for the
• Improvements until completion and payment of all costs of the Improvements.
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The Construction Fund shall be used solely to defray expenses of the Improvements, •
including but not limited to the transfer to the Bond Fund, created in Section 4.02
hereof, of amounts sufficient for the payment of interest and principal, if any, due
upon the Bonds prior to the completion and payment of all costs of the
Improvements and the payment of the expenses incurred by the City in connection
with the issuance of the Bonds set forth in Section 7 hereof. Upon completion and
payment of all costs of the Improvements, any balance of the proceeds of Bonds
remaining in the Construction Fund may be used to pay the cost, in whole or in
part, of any other improvements instituted pursuant to the Act, as directed by the
City Council, but any balance of such proceeds not so used shall be credited and paid
to the Bond Fund.
4.02. 1995 Improvement Bond Fund. So long as any of the Bonds are
outstanding and any principal of or interest thereon unpaid, the City Finance
Director shall maintain a separate and special bookkeeping fund designated "1995
Improvement Bond Fund" (hereinafter referred to as the Bond Fund) to be used for
no purpose other than the payment of the principal of and interest on the Bonds
and on such other improvement bonds of the City as have been or may be directed
to be paid therefrom. The City irrevocably appropriates to the Bond Fund (a) the
collections of special assessments and other funds to be credited and paid thereto in
accordance with the provisions of Section 4.01, (b) any taxes levied in accordance
with this resolution, (c) all income derived from the investment of amounts on
hand in the Bond Fund, and (d) all such other moneys as shall be received and •
appropriated to the Bond Fund from time to time. If the balance in the Bond Fund
is at any time insufficient to pay all interest and principal then due on all bonds
payable therefrom, the payment shall be made from any fund of the City which is
available for that purpose, subject to reimbursement from the Bond Fund when the
balance therein is sufficient, and the Council covenants and agrees that it will each
year levy a sufficient amount to take care of any accumulated or anticipated
deficiency, which levy is not subject to any constitutional or statutory tax limitation.
There are hereby established'two accounts in the Bond Fund,
designated as the 'Debt Service Account" and the "Surplus Account." All money
appropriated or to be deposited in the Bond Fund shall be deposited as received into
the Debt Service Account. On each February 1, the City Finance Director shall
determine the amount on hand in the Debt Service Account. If such amount is in
excess of one - twelfth of the debt service payable from the Bond Fund in the
immediately preceding 12 months, the City Finance Director shall promptly transfer
the amount in excess to the Surplus Account. The City appropriates to the Surplus
Account any amounts to be transferred thereto from the Debt Service Account as
herein provided and all income derived from the investment of amounts on hand
in the Surplus Account. If at any time the amount on hand in the Debt Service
Account is insufficient to meet the requirements of the Bond Fund, the City Finance
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• Director shall transfer to the Debt Service Account amounts on hand in the Surplus
Account to the extent necessary to cure such deficiency.
4.03. Additional Bonds. The City reserves the right to issue additional
bonds payable from the Bond Fund as may be required to finance costs of the
Improvements not financed hereby; provided that the City Council shall, prior to
the delivery of such additional bonds, levy or agree to levy by resolution sufficient
additional special assessments and ad valorem taxes, if any, which, together with
other moneys or revenues pledged for the payment of said additional obligations,
will produce revenues at least five percent (5 %) in excess of the amount needed to
pay when due the principal and interest on all bonds payable from the Bond Fund.
The additional special assessments, ad valorem taxes and moneys or revenues so
pledged, levied or agreed to be levied shall be irrevocably appropriated to the Bond
Fund in the manner provided by Minnesota Statutes, Section 475.61.
4.04. Levy of Special Assessments. The City hereby covenants and
agrees that for payment of the cost of each of the Improvements it will do and
perform all acts and things necessary for the full and valid levy of special
assessments against all assessable lots, tracts and parcels of land benefited thereby
and located within the area proposed to be assessed therefor, based upon the benefits
received by each such lot, tract or parcel, in an aggregate principal amount not less
than twenty percent (20 %) of the cost of the Improvements. In the event that any
is such assessment shall be at any time held invalid with respect to any lot, piece or
parcel of land, due to any error, defect or irregularity in any action or proceeding
taken or to be taken by the City or this Council or any of the City's officers or
employees, either in the making of such assessment or in the performance of any
condition precedent thereto, the City and this Council hereby covenant and agree
that they will forthwith do all such further acts and take all such further proceedings
as may be required by law to make such assessments a valid and binding lien upon
such property. The Council presently estimates that the special assessments shall be
in the principal amount of $ payable in not more than
installments, the first installment to be collectible with taxes during the year 199_,
and that deferred installments shall bear interest at the rate of percent
(_ %) per annum from the date of the resolution levying said assessment until
December 31 of the year in which the installment is payable.
0
4.05. Ad Valorem Taxes. The full faith and credit and taxing powers of
the City are irrevocably pledged for the prompt and full payment of the principal of
and interest in the Bonds as the same become respectively due. For the purpose
there is hereby levied upon all of the taxable property of the City, a direct, annual ad
valorem tax, which shall be spread upon the tax rolls prepared in each of the
following years and collected with other taxes in the following years and amounts as
follows:
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Levy Collection •
Year Year Amount
1995
1996
1996
1997
1997
1998
1998
1999
1999
2000
2000
2001
2001
2002
2002
2003
2003
2004
2004
2005
2005
2006
The foregoing tax levies are such that if collected in full they will produce at least
five percent (5 %) in excess of the amount needed to pay when due the principal of
and interest on the Bonds. This tax shall be irrevocably appropriated to the Bond
Fund as long as any of the Bonds are outstanding and unpaid; provided that the City
reserves the right and power to reduce the levies in the manner and to the extent
permitted by Minnesota Statutes, Section 475.61.
4.06. Full Faith and Credit Pledges. The full faith and credit of the City
are irrevocably pledged for the prompt and full payment of the principal of and the
interest on the Bonds, and the Bonds shall be payable from the Bond Fund in
accordance with the provisions and covenants contained in this resolution. It is
estimated that the taxes and special assessments levied and to be levied for the
payment of the Improvements will be collected in amounts not less than five
percent (5 %) in excess of the annual principal and interest requirements of the
Bonds. If the money on hand in the Bond Fund should at any time be insufficient
for the payment of principal and interest then due, this City shall pay the principal
and interest out of any fund of the City, acid such other fund or funds shall be
reimbursed therefor when sufficient money is available to the Bond Fund. If on
October 1 in any year the sum of the balance in the Bond Fund plus the amount of
taxes and special assessments theretofore levied for the Improvements and
collectible through the end of the following calendar year is not sufficient to p' ay.
when due all principal and interest become due on all Bonds payable therefrom in
said following calendar year, or the Bond Fund has incurred a deficiency in the
manner provided in this Section 4.06, a direct, irrepealable, ad valorem tax shall be
levied on all taxable property within the corporate limits of.the City for the purpose
of restoring such accumulated or anticipated deficiency in accordance with the
provisions of this resolution.
-16- •
Section 5. Defeasance. When all of the Bonds have been discharged as
provided in this section, all pledges, covenants and other rights granted by this
resolution to the holders of the Bonds shall cease. The City may discharge its
obligations with respect to any Bonds which are due on any date by depositing with
the paying agent on or before that date a sum sufficient for the payment thereof in
full; or, if any Bond should not be paid when due, it may nevertheless be discharged
by depositing with the paying agent a sum sufficient for the payment thereof in full
with interest accrued to the date of such deposit. The City may also at any time
discharge its obligations with respect to any Bonds, subject to the provisions of law
now or hereafter authorizing and regulating such action, by depositing irrevocably
in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or
securities which are general obligations of the United States or securities of United
States agencies which are authorized by law to be so deposited, bearing interest
payable at such time and at such rates and maturing on such dates as shall be
required, without reinvestment, to pay all principal and interest to become due
thereon to maturity.
Section 6. Registration, Certification of Proceedings. Investment o
Moneys. Arbitrage and Official Statement.
6.01. Registration. The City Administrator is hereby authorized and
directed to file a certified copy of this resolution with the County Auditor of McLeod
County, together with such other information as he shall require, and to obtain
from the County Auditor a certificate that the Bonds have been entered on his bond
register and that the tax required for the payment thereof has been levied and filed
as required by law.
6.02. Certification of Proceedings. The officers of the City and the
County Auditor of McLeod County are hereby authorized and directed to prepare
and furnish to the Purchaser, and to Dorsey & Whitney P.L.L.P., Bond Counsel,
certified copies of all proceedings and records of the City, and such other affidavits,
certificates and information as may be required to show the facts relating to the
legality and marketability of the Bonds as the same appear from the books and
records under their custody and control or as otherwise known to them, and all
such certified copies, certificates and affidavits, including any heretofore fumjshed,
shall be deemed representations of the City as to the facts recited therein.
6.03. Covenant. The City covenants and agrees with the holders from
time to time of the Bonds that it will not take or permit to be taken by any of its
officers, employees or agents any action which would cause. the interest on the
Bonds to become subject to taxation under the Internal Revenue Code of 1986, as
amended (the Code), and Regulations promulgated thereunder (the Regulations), as
such are enacted or promulgated and in effect on the date of issue of the Bonds, and
covenants to take any and all actions within its powers to ensure that the interest on
-17-
the Bonds will not become subject to taxation under such Code and Regulations. •
The Improvements and any other improvements financed pursuant to Section 4.01
will be owned and maintained by the City and available for use by members of the
general public on a substantially equal basis. The City shall not enter into any lease,
use or other agreement with any non - governmental person relating to the use of
such improvements or security for the payment of the Bonds which might cause the
Bonds to be considered "private activity bonds" or "private loan bonds" within the
meaning of Section 141 of the Code.
6.04. Arbitrage Rebate. The City acknowledges that the Bonds are
subject to the rebate requirements of Section 148(f) of the Code. The City covenants
and agrees to retain such records, make such determinations, file such reports and
documents and pay such amounts at such times as are required under said Section
148(f) and applicable Regulations to preserve the exclusion of interest on the Bonds
from gross income for federal income tax purposes, unless the Bonds qualify for the
exception from the rebate requirement under Section 148(f)(4)(B) of the Code and no
"gross proceeds" of the Bonds (other than amounts constituting a 'bona fide debt
service fund ") arise during or after the expenditure of the original proceeds thereof.
In furtherance of the foregoing, the City Finance Director is hereby authorized and
directed to execute a Rebate Certificate setting forth the undertakings of the City to
comply with the foregoing requirements, and the City hereby covenants and agrees
to observe and perform the covenants and agreements contained therein, unless
amended or terminated in accordance with the provisions thereof.
6.05. Arbitrage Certification. The Mayor and City Administrator, being
the officers of the City charged with the responsibility for issuing the Bonds
pursuant to this resolution, are authorized and directed to execute and deliver to the
Purchaser a certificate in accordance with the provisions of Section 148 of the Code,
and Section 1.148- 2(b)(2) of the Regulations, stating the facts and estimates in
existence on the date of issue and delivery of the Bonds which make it reasonable to
expect that the proceeds of the Bonds will not be used in a manner that would cause
the Bonds to be arbitrage bonds within the'meaning of said Code and Regulations.
6.06. Interest Disallowance. The City hereby designates the Bonds as
"qualified tax- exempt obligations" for purpose of Section 265(b) of the Code relating
to the disallowance of interest expenses for financial institutions. The City
represents that in calendar year 1995 it does not reasonable expect to issue tax -
exempt obligations which are not private activity bonds (not treating qualified
501(c)(3) bonds under Section 145 of the Code as private activity bonds for purposes
of this representation) in an amount in excess of $10,000,000-
6.07. Official Statement. The Official Statement relating to the Bonds,
dated June 2, 1995, prepared and distributed on behalf of the City by Ehlers and
Associates, Inc., is hereby approved. The officers of the City are hereby authorized
-18- 0
and directed to execute such certificates as may be appropriate concerning the
accuracy, completeness and sufficiency of the Official Statement.
Section 7. Authorization of Payment of Certain Costs of Issuance of th
Bonds. The City Finance Director is hereby authorized and directed on the date of
issuance and delivery of the Bonds to pay from the proceeds of the sale of the Bonds,
deposited in the Construction Fund the fees and expenses of the following persons
incurred in connection with the issuance of the Bonds up to the maximum amount
set forth opposite the name of such person upon receipt by the City of a satisfactory
statement therefor:
ronk-
Ehlers & Associates, Inc.
Minneapolis, Minnesota
Moody's Investors Service,
Inc.
Service
Performed
Financial Consultant
Rating of Bonds
Maximum
Amount
The claims of the above persons up to the maximum amount set forth opposite the
name of such person is hereby approved and no further action of this Council shall
is be necessary in connection with the payment of such fees and expenses of issuance
of the Bonds.
Attest:
0
City Administrator
-19-
Mayor
The motion for the adoption of the foregoing resolution was duly
seconded by Councilmember and upon vote being taken
thereon, the following Councilmembers voted in favor thereof:
and the following Councilmembers voted against the same:
whereupon said resolution was declared duly passed and adopted, and was signed by
the Mayor, which was attested by the City Administrator.
•
-20- •
• CERTIFICATION OF MINUTES RELATING TO
$1,500,000 GENERAL OBLIGATION
BONDS, SERIES 1995B
Issuer: City of Hutchinson, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting, held on June 12, 1995,
at 6:00 o'clock p.m., in the Council Chambers in the Hutchinson City Center.
Councilmembers present:
Councilmembers absent:
Documents Attached:
Minutes of said meeting (pages): 1 through 19
RESOLUTION NO. io495
RESOLUTION RELATING TO $1,500,000 GENERAL OBLIGATION BONDS,
SERIES 199513; AUTHORIZING THE ISSUANCE, AWARDING THE SALE,
• FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION
AND DELIVERY THEREOF AND THE SECURITY THEREFOR AND
LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF
I, the undersigned, being the duly qualified and acting recording officer
of the public corporation issuing the obligations referred to in the title of this
certificate, certify that the documents attached hereto, as described above, have been
carefully compared with the original records of said corporation in my legal custody,
from which they have been transcribed; that said documents are a correct and
complete transcript of the minutes of a m&ting of the governing body of said
corporation, and correct and complete copies of all resolutions and other actions
taken and of all documents approved by the governing body at said meeting, so far
as they relate to said obligations; and that said meeting was duly held by the
governing body at the time and place and was attended throughout by the members
indicated above, pursuant to call and notice of such meeting given as required by
law.
• (SEAL)
WITNESS my hand officially as such recording officer this _ day of
1995.
Gary D. Plotz
City Administrator
�—X i
The City Administrator reported that proposals had been
received by the City prior to 3:00 o'clock p.m., Central Daylight Time today for the
purchase of the Bonds in accordance with the Terms of Proposal for the sale of the
$1,500,000 General Obligation Bonds, Series 1995B of the City as previously approved
by a resolution of the City Council. The proposals have been read and tabulated, and
the terms of each have been determined to be as follows:
Total Interest
Bid for Interest Cost -True Interest
Principal Rates Cost
u
C�
40
• Councilmember
introduced
the following resolution and moved its adoption, the reading of which was
dispensed with by unanimous consent:
RESOLUTION NO. 10495
RESOLUTION RELATING TO $1,500,000 GENERAL OBLIGATION
BONDS, SERIES 1995B; AUTHORIZING THE ISSUANCE,
AWARDING THE SALE, FIXING THE FORM AND DETAILS,
PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND
THE SECURITY THEREFOR AND LEVYING AD VALOREM TAXES
FOR THE PAYMENT THEREOF
BE IT RESOLVED by the City Council of the City of Hutchinson,
Minnesota (the City), as follows:
Section 1. Recitals.
1.01. Authorization. This Council has previously determined to issue
• and sell $1,500,000 principal amount of General Obligation Bonds, Series 1995B, of
the City (the Bonds) to defray the expense incurred and estimated to be incurred by
the City to construct a vehicle maintenance facility to be used by the City, McLeod
County and the Minnesota Department of Transportation, including every item of
cost of the kinds authorized in Minnesota Statutes, Section 475.65, and $22,421
representing interest as provided in Minnesota Statutes, Section 475.56. Issuance of
the Bonds was authorized by Minnesota Law 1994, Chapter 522.
1.02. Sale of Bonds. The City has retained Ehlers and Associates, Inc.,
an independent financial advisor, to assist the City in connection with the sale of
the Bonds. The Bonds are being sold pursuant to Minnesota Statutes, Section 475.60,
Subdivision 2, paragraph (9), without meeting the requirements for public sale
under Minnesota Statutes, Section 475.60, Subdivision 1. Pursuant to the Teums of
Proposal for the sale of the Bonds, proposals for the purchase of the Bonds
were received at or before the time specified for receipt of proposals. The proposals
have been opened and publicly read and considered, and the purchase price, interest
rates and net interest cost under the terms of each bid have been determined. The
most favorable proposal received is that of
of (the Purchaser), to
purchase the Bonds at a price of $ . the Bonds to bear interest at
the rates set forth in Section 3.01. The proposal is hereby accepted, and the Mayor
and the City Administrator are hereby authorized and directed to execute a contract
• on the part of the City for the sale of the Bonds with the Purchaser. The good faith
checks of the unsuccessful bidders shall be returned forthwith.
1.03. Issuance of Bonds. All acts, conditions and things required by the S
Constitution and laws of the State of Minnesota and City Charter to be done, to exist,
to happen and to be performed prior to the issuance of the Bonds have been done,
do exist, have happened, and have been performed, wherefore it is now necessary
for this Council to establish the form and terms of the Bonds, to provide for the
security thereof, and to issue the Bonds forthwith.
Section 2. Form of Bonds. The Bonds shall be prepared in substantially
the following form:
•
-2- •
• UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF MCLEOD
CITY OF HUTCHINSON
GENERAL OBLIGATION
BOND, SERIES 1995E
Date of
Rate Maturity Original Issue CUSIP
June 1, 1995
REGISTERED
OWNER:
PRINCIPAL
AMOUNT: DOLLARS
• THE CITY OF HUTCHINSON, McLeod County, Minnesota (the "City"),
acknowledges itself to be indebted and, for value received, hereby promises to pay to
the registered owner above named, the principal amount indicated above, on the
maturity date specified above, with interest thereon from the date of original issue
specified above at the annual rate specified above computed on the basis of a 360 -day
year consisting of twelve 30 -day months, payable on February 1 and August 1 in each
year, commencing February 1, 1996, to the person in whose name this Bond is
registered at the close of business on the 15th day (whether or not a business day) of
the immediately preceding month, all subject to the provisions referred to herein
with respect to the redemption of the principal of this Bond before maturity. The
interest hereon and, upon presentation and surrender hereof at the office of the City
Finance Director, in Hutchinson, Minnesota, as Registrar, Transfer Agent and
Paying Agent (the 'Bond Registrar "), or its successor designated under the
Resolution described herein, the principal hereof, are payable in lawful money of
the United States of America by check or draft of the City or the Bond Registrar if a
successor to the City Finance Director as Bond Registrar has been designated under
the Resolution described herein.
This Bond is one of an issue in the aggregate principal amount of
$1,500,000 (the 'Bonds "), all of like date and tenor except as to serial number, interest
• rate, redemption privilege and maturity date, issued pursuant to a resolution
-3-
adopted by the City Council on June 12, 1995 (the 'Resolution "), and is issued .
pursuant to and in full conformity with the provisions of the Constitution and laws
of the State of Minnesota thereunto enabling, including Minnesota Statutes,
Chapter 475 and Minnesota Law 1994, Chapter 522. The Bonds are issuable only as
fully registered bonds, in denominations of $5,000 or any integral multiple thereof,
of single maturities.
Bonds maturing in the years 1997 through 2003 are payable on their
respective stated maturity dates without option of prior payment, but Bonds having
stated maturity dates in the years 2004 and thereafter are each subject to redemption
and prepayment, at the option of the City and in whole or in part and if in part, in
inverse order of maturities and by lot, assigned in proportion to their principal
amount, within any maturity, on February 1, 2003 and on any date thereafter, at a
price equal to the principal amount thereof to be redeemed plus interest accrued to
the date of redemption. At least thirty days prior to the date set for redemption of
any Bond, notice of the call for redemption will be mailed to the Bond Registrar and
to the registered owner of each Bond to be redeemed at his address appearing in the
Bond Register, but no defect in or failure to give such mailed notice of redemption
shall affect the validity of proceedings for the redemption of any Bond, not affected
by such defect or failure. Official notice of redemption having been given as
aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the
redemption date, become due and payable at the redemption price herein specified
and from and after such date (unless the City shall default in the payment of the •
redemption price) such Bond or portions of Bonds shall cease to bear interest. Upon
the partial redemption of any Bond, a new Bond or Bonds will be delivered to the
registered owner without charge, representing the remaining principal amount
outstanding.
As provided in the Resolution and subject to certain limitations set
forth therein, this Bond is transferable upon the books of the City at the principal
office of the Bond Registrar, by the registered owner hereof in person or by his
attorney duly authorized in writing upon surrender hereof together with a written
instrument of transfer satisfactory to the Bond Registrar, duly executed by the
registered owner or his attorney; and may also be surrendered in exchange for Bonds
of other authorized denominations. Upon such transfer or exchange, the City will
cause a new Bond or Bonds to be issued in the name of the transferee or registered
owner, of the same aggregate principal amount, bearing interest at the same rate and
maturing on the same date, subject to reimbursement for any tax, fee or
governmental charge required to be paid with respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in
whose name this Bond is registered as the absolute owner hereof, whether this
Bond is overdue or not, for the purpose of receiving payment and for all other
-4- •
• purposes, and neither the City nor the Bond Registrar shall be affected by any notice
to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED
that all acts, conditions and things required by the Constitution and laws of the State
of Minnesota and City Charter to be done, to exist, to happen and to be performed
precedent to and in the issuance of this Bond in order to make it a valid and binding
general obligation of the City according to its terms have been done, do exist, have
happened and have been performed as so required; that prior to the issuance hereof
the City has levied ad valorem taxes on all taxable property within the City,
collectible in the years and amounts required to produce sums not less than 5% in
excess of the principal of and interest on the Bonds as such principal and interest
respectively become due; that, additional ad valorem taxes if needed to meet the
principal and interest requirements of the Bonds, shall be levied upon all taxable
property in the City without limitation as to rate or amount; and that the issuance of
this Bond does not cause the indebtedness of the City to exceed any charter,
constitutional or statutory limitation.
This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security or benefit under the Resolution until the Certificate of
Authentication hereon shall have been executed by the Bond Registrar by manual
signature of the Bond Registrar, or in the event the City Finance Director is no
longer acting as Bond Registrar, one of the authorized representatives of the Bond
Registrar.
IN WITNESS WHEREOF, the City of Hutchinson, McLeod County,
State of Minnesota, by its City Council, has caused this Bond to be executed by the
signatures of the Mayor and the City Administrator and has caused this Bond to be
dated as of the date set forth below.
Date of Authentication:
City Administrator
L�
-5-
Mayor
CERTIFICATE OF AUTHENTICATION •
This is one of the Bonds delivered pursuant to the Resolution
mentioned within.
mz
City Finance Director,
as Bond Registrar
The following abbreviations, when used in the inscription on the face
of this Bond, shall be construed as though they were written out in full according to
the applicable laws or regulations:
TEN COM — as tenants
in common
TEN ENT — as tenants
by the entireties
JT TEN -- as joint tenants
with right of
survivorship and
not as tenants in
common
UNIF TRANS MIN ACT.......... Custodian ..........
(Cult) (Minor)
under Uniform Transfers to
Minors
Act.................... ...............................
(State)
Additional abbreviations may also be used.
-6- •
• ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto the within Bond and all
rights thereunder, and hereby irrevocably constitutes and appoints
attorney to transfer the within Bond on the books kept
for registration thereof, with full power of substitution in the premises.
Dated:
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE:
L /
Signature(s) must be guaranteed by an
• "eligible guarantor institution"
meeting the requirements of the
Bond Registrar, which requirements
include membership or participation
in the Securities Transfer Association
Medation Program (STAMP) or such
other "signature guaranty program"
as may be determined by the Bond
Registrar in addition to or in
substitution for STAMP, all in
accordance with the Securities
Exchange Act of 1934, as amended.
NOTICE: The signature(s) to
this assignment must correspond with
the name as it appears upon the face of
the within Bond in every particular,
without alteration, enlargement
or any change whatsoever.
3.01. Maturities. Interest Rates. Denominations, Payment. The City
shall forthwith issue and deliver the Bonds, which shall be denominated "General
Obligation Bonds, Series 199513". The Bonds shall bear a date of original issue of
June 1, 1995, shall be issuable in the denomination of $5,000 each or any integral
multiple thereof, shall mature on February 1 in the years and amounts set forth
below, and Bonds maturing in such years and amounts shall bear interest from date
of original issue until paid or duly called for redemption at the rates per annum
• shown opposite such years and amounts as follows:
-7-
Year
Amoun Rate
Year
Amount Rag •
1997
$ 65,000
2005
$100,000
1998
70,000
2006
110,000
1999
75,000
2007
115,000
2000
80,000
2008
120,000
2001
85,000
2009
130,000
2002
85,000
2010
135,000
2003
90,000
2011
145,000
2004
95,000
The Bonds shall be issuable only in fully registered form. The interest thereon and,
upon surrender of each Bond, the principal amount thereof, shall be payable by
check or draft issued by the Registrar described herein. Each Bond shall be dated by
the Registrar as of the date of its authentication.
3.02. Dates; Interest Payment Dates. Interest on the Bonds shall be
payable on February 1 and August 1 in each year, commencing February 1, 1996, to
the owner of record thereof as of the close of business on the fifteenth day of the
immediately preceding month, whether or not such day is a business day. Interest
on the Bonds will be computed on the basis of a 360 -day year consisting of twelve 30-
day months and will be rounded pursuant to the rules of the Municipal Securities •
Rulemaking Board.
3.03. Registration. The City shall appoint, and shall maintain, a bond
registrar, transfer agent and paying agent (the Registrar). The effect of registration
and the rights and duties of the City and the Registrar with respect thereto shall be as
follows:
(a) Register. The Registrar shall keep at its principal corporate trust
office a bond register in which the Registrar shall provide for the registration
of ownership of Bonds and the registration of transfers and exchanges of
Bonds entitled to be registered, transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of any Bond duly
endorsed by the registered owner thereof or accompanied by a written
instrument of transfer, in form satisfactory to the Registrar, duly executed by
the registered owner thereof or by an attorney duly authorized by the
registered owner in writing, the Registrar shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new Bonds
of a like aggregate principal amount and maturity, as requested by the
transferor. The Registrar may, however, close the books for registration of
-8- •
• any transfer after the fifteenth day of the month preceding each interest
payment date and until such interest payment date.
(c) Exchange of Bonds. Whenever any Bond is surrendered by the
registered owner for exchange, the Registrar shall authenticate and deliver
one or more new Bonds of a like aggregate principal amount and maturity, as
requested by the registered owner or the owner's attorney duly authorized in
writing.
(d) Cancellation. All Bonds surrendered upon any transfer or
exchange shall be promptly cancelled by the Registrar and thereafter disposed
of as directed by the City.
(e) Improper or Unauthorized Transfer. When any Bond is presented
to the Registrar for transfer, the Registrar may refuse to transfer the same
until it is satisfied that the endorsement on such Bond or separate instrument
of transfer is legally authorized. The Registrar shall incur no liability for its
refusal, in good faith, to make transfers which it, in its judgment, deems
improper or unauthorized.
(0 Persons Deemed Owners. The City and the Registrar
• may treat the person in whose name any Bond is at any time registered in the
bond register as the absolute owner of such Bond, whether such Bond shall be
overdue or not, for the purpose of receiving payment of, or on account of, the
principal of and interest on such Bond and for all other purposes, and all such
payments so made to any such registered owner or upon the owner's order
shall be valid and effectual to satisfy and discharge the liability of the City
upon such Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. For every transfer or exchange of Bonds
(except for an exchange upon a partial redemption of a Bond), the Registrar
may impose a charge upon the owner thereof sufficient to reimburse the
Registrar for any tax, fee or other governmental charge required to be paid
with respect to such transfer or exchange.
(h) Mutilated, Lost. Stolen or Destroyed Bonds. In case any Bond shall
become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a
new Bond of like amount, number, maturity date and tenor in exchange and
substitution for and upon cancellation of any such mutilated Bond or in lieu
of and in substitution for any such Bond lost, stolen or destroyed, upon the
payment of the reasonable expenses and charges of the Registrar in
connection therewith; and, in the case of a Bond lost, stolen or destroyed,
upon filing with the Registrar of evidence satisfactory to it that such Bond
was lost, stolen or destroyed, and of the ownership thereof, and upon
0
furnishing to the Registrar of an appropriate bond or indemnity in form,
substance and amount satisfactory to it, in which both the City and the .
Registrar shall be named as obligees. All Bonds so surrendered to the
Registrar shall be cancelled by it and evidence of such cancellation shall be
given to the City. If the mutilated, lost, stolen or destroyed Bond has already
matured or been called for redemption in accordance with its terms, it shall
not be necessary to issue a new Bond prior to payment.
3.04. Appointment of Initial Registrar. The City hereby appoints the
City Finance Director, as the initial Registrar. In the event that the City determines
to discontinue the book entry-only system for the Bonds as described in paragraph
(c) of Section 3.07, or DTC, as defined in Section 3.07, determines to discontinue
providing its services with respect to the Bonds and a new securities depository is
not appointed for the Bonds, the City will designate a suitable bank or trust company
to act as successor Registrar if the City Finance Director is then acting as Registrar.
The City reserves the right to remove any Registrar upon thirty (30) days' notice and
upon the appointment of a successor Registrar, in which event the predecessor
Registrar shall deliver all cash and Bonds in its possession to the successor Registrar
and shall deliver the bond register to the successor Registrar.
3.05. Redemption. Bonds maturing in the years 1996 through 2003
shall not be subject to redemption prior to maturity, but Bonds maturing in the
years 2004 and thereafter shall each be subject to redemption and prepayment, at the •
option of the City, in whole or in part, and if in part, in inverse order of maturities
and, a
within any maturity, in $5,000 principal mounts selected by the Registrar by
lot, on February 1, 2003 and on any date thereafter at a price equal to the principal
amount thereof to be redeemed plus interest accrued to the date of redemption. At
least thirty days prior to the date set for redemption of any Bond, the City Clerk -
Treasurer shall cause notice of the call for redemption to be mailed to the Registrar
and to the registered owner of each Bond to be redeemed, but no defect in or failure
to give such mailed notice of redemption shall affect the validity of proceedings for
the redemption of any Bond not affected by such defect or failure. The notice of
redemption shall specify the redemption date, redemption price, the numbers,
interest rates and CUSIP numbers of the Bonds to be redeemed and the place at
which the Bonds are to be surrendered for payment, which is the principal office of
the Registrar. Official notice of redemption having been given as aforesaid, the
Bonds or portions thereof so to be redeemed shall, on the redemption date, become
due and payable at the redemption price therein specified and from and after such
date (unless the City shall default in the payment of the redemption price) such
Bonds or portions thereof shall cease to bear interest.
In addition to the notice prescribed by the preceding paragraph, the City
shall also give, or cause to be given, notice of the redemption of any Bond or Bonds
or portions thereof at least 35 days before the redemption date by certified mail or
-10- 40
• telecopy to the Purchaser and all registered securities depositories then in the
business of holding substantial amounts of obligations of the character of the Bonds
(such depositories now being The Depository Trust Company, of Garden City, New
York; Midwest Securities Trust Company, of Chicago, Illinois; Pacific Securities
Depository Trust Company, of San Francisco, California; and Philadelphia
Depository Trust Company, of Philadelphia, Pennsylvania) and one or more
national information services that disseminate information regarding municipal
bond redemptions; provided that any defect in or any failure to give any notice of
redemption prescribed by this paragraph shall not affect the validity of the
proceedings for the redemption of any Bond or portion thereof.
Bonds in a denomination larger than $5,000 may be redeemed in part
in any integral multiple of $5,000. The owner of any Bond redeemed in part shall
receive, upon surrender of such Bond to the Registrar, one or more new Bonds of
such same series in authorized denominations equal in principal amount to the
unredeemed portion of the Bond so surrendered.
3.06. Preparation and Delivery. The Bonds shall be prepared under the
direction of the City Administrator and shall be executed on behalf of the City by the
signatures of the Mayor and the City Administrator. In case any officer whose
signature shall appear on the Bonds shall cease to be such officer before the delivery
• of any Bond, such signature shall nevertheless be valid and sufficient for all
purposes, the same as if such officer had remained in office until delivery.
Notwithstanding such execution, no Bond shall be valid or obligatory for any
purpose or entitled to any security or benefit under this resolution unless and until
a certificate of authentication on such Bond has been duly executed by the manual
signature of the Registrar, or in the event the qty Finance Director is no longer
acting as Registrar, an authorized representative of the Registrar. Certificates of
authentication on different Bonds need not be signed by the same representative.
The executed certificate of authentication on each Bond shall be conclusive evidence
that it has been authenticated and delivered under this resolution. When the
Bonds have been so executed and authenticated, they shall be delivered by the City
Administrator to the purchaser thereof upon payment of the purchase price in
accordance with the contract of sale heretofore made and executed, and the
purchaser shall not be obligated to see to the application of the purchase prick.
11
3.07. Securities Depository. (a) For purposes of this Section the
following terms shall have the following meanings:
"Beneficial Owner" shall mean, whenever used with respect to a Bond,
the person in whose name such Bond is recorded as the beneficial owner of such
Bond by a Participant on the records of such Participant, or such person's subrogee.
-11-
"Cede & Co." shall mean Cede & Co., the nominee of DTC, and any •
successor nominee of DTC with respect to the Bonds.
"DTC" shall mean The Depository Trust Company of New York,
New York.
"Participant" shall mean any broker - dealer, bank or other financial
institution for which DTC holds Bonds as securities depository.
"Representation Letter" shall mean the Representation Letter from the
City and the Registrar to DTC with respect to the Bonds, substantially in the form
presented to this Council and ordered placed on file in the office of the City
Administrator.
(b) The Bonds shall be initially issued as separately authenticated fully
registered bonds, and one Bond shall be issued in the principal amount of each
stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds
shall be registered in the bond register in the name of Cede & Co., as nominee of
DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and
exclusive owner of the Bonds registered in its name for the purposes of payment of
the principal of or interest on the Bonds, selecting the Bonds or portions thereof to
be redeemed, if any, giving any notice permitted or required to be given to registered
owners of Bonds under this resolution, registering the transfer of Bonds, and for all
other purposes whatsoever; and neither the Registrar nor the City shall be affected •
by any notice to the contrary. Neither the Registrar nor the City shall have any
responsibility or obligation to any Participant, any person claiming a beneficial
ownership interest in the Bonds under or through DTC or any Participant, or any
other person which is not shown on the bond register as being a registered owner of
any Bonds, with respect to the accuracy of any records maintained by DTC or any
Participant, with respect to the payment by DTC or any Participant of any amount
with respect to the principal of or interest on the Bonds, with respect to any notice
which is permitted or required to be given to owners of Bonds under this
resolution, with respect to the selection by DTC or any Participant of any person to
receive payment in the event of a partial redemption of the Bonds, or with respect
to any consent given or other action taken by DTC as registered owner of the J3onds.
So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the
Registrar shall pay all principal of and interest on such Bond, and shall give all
notices with respect to such Bond, only to Cede & Co. in accordance with the
Representation Letter, and all such payments shall be valid and effective to fully
satisfy and discharge the City's obligations with respect to the principal of and
interest on the Bonds to the extent of the sum or sums so paid. No person other
than DTC shall receive an authenticated Bond for each separate stated maturity
evidencing the obligation of the City to make payments of principal and interest.
Upon delivery by DTC to the Registrar of written notice to the effect that DTC has
-12- •
• determined to substitute a new nominee in place of Cede & Co., the Bonds will be
transferable to such new nominee in accordance with paragraph (e) hereof.
(c) In the event the City determines that it is in the best interest of the
Beneficial Owners that they be able to obtain Bonds in the form of bond certificates,
the City may notify DTC and the Registrar, whereupon DTC shall notify the
Participants of the availability through DTC of Bonds in the form of certificates. In
such event, the Bonds will be transferable in accordance with paragraph (e) hereof.
DTC may determine to discontinue providing its services with respect to the Bonds
at any time by giving notice to the City and the Registrar and discharging its
responsibilities with respect thereto under applicable law. In such event the Bonds
will be transferable in accordance with paragraph (e) hereof.
(d) The execution and delivery of the Representation Letter to DTC by
the Mayor, in the form presented to this Council with such changes, omissions,
insertions and revisions as the Mayor shall deem advisable, is hereby authorized,
and execution of the Representation Letter by the Mayor shall be conclusive
evidence of such approval. The Representation Letter shall set forth certain matters
with respect to, among other things, notices, consents and approvals by registered
owners of the Bonds and Beneficial Owners and payments on the Bonds. The
Registrar shall have the same rights with respect to its actions thereunder as it has
with respect to its actions under this resolution.
• (e) In the event that any transfer or exchange of Bonds is permitted
under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished
upon receipt by the Registrar of the Bonds to be transferred or exchanged and
appropriate instruments of transfer to the permitted transferee in accordance with
the provisions of this resolution. In the event Bonds in the form of certificates are
issued to owners other than Cede & Co., its successor as nominee for DTC as
owner of all the Bonds, or another securities depository as owner of all the Bonds,
the provisions of this resolution shall also apply to all matters relating thereto,
including, without limitation, the printing of such Bonds in the form of bond
certificates and the method of payment of principal of and interest on such Bonds in
the form of bond certificates.
Section 4. Security Provisions.
4.01. 1995 Improvement Construction Fund. There is hereby created
on the books and records of the City a special bookkeeping fund to be designated as
the "1995 Improvement Construction Fund" (hereinafter referred to as the
Construction Fund), to be held and administered by the City Finance Director
separate and apart from all other funds of the City. The City appropriates to the
Construction Fund $1,477,579 from the proceeds of the sale of the Bonds. The
Construction Fund shall be used solely to defray expenses of the projects authorized
•
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to be financed with the proceeds of the Bonds. Upon completion and payment of all •
costs of the projects to be financed with the proceeds of the Bonds, any balance of the
proceeds of Bonds remaining in the Construction Fund shall be credited and paid to
the Bond Fund established by Section 4.02 hereof or used for any other purpose
authorized by law.
4.02. 1995 Bond Fund. So long as any of the Bonds are outstanding and
any principal of or interest thereon unpaid, the City Finance Director shall on the
books and records of the City maintain a separate and special bookkeeping fund
designated "1995 Bond Fund" (hereinafter referred to as the Bond Fund) to be used
for no purpose other than the payment of the principal of and interest on the Bonds
and on such other Bonds of the City as have been or may be directed to be paid
therefrom. The City irrevocably appropriates to the Bond Fund (a) all proceeds
received by the City upon the sale of the Bonds in excess of $1,477,579, (b) all taxes
levied in accordance with this resolution, (c) all income derived from the
investment of amounts on hand in the Bond Fund, and (d) all such other moneys
as shall be received and appropriated to the Bond Fund from time to time. If the
balance in the Bond Fund is at any time insufficient to pay all interest and principal
then due on all bonds payable therefrom, the payment shall be made from any fund
of the City which is available for that purpose, subject to reimbursement from the
Bond Fund when the balance therein is sufficient, and the Council covenants and
agrees that it will each year levy a sufficient amount to take care of any accumulated
or anticipated deficiency, which levy is not subject to any constitutional or statutory •
tax limitation.
There are hereby established two accounts in the Bond Fund,
designated as the "Debt Service Account" and the "Surplus Account." All money
appropriated or to be deposited in the Bond Fund shall be deposited as received into
the Debt Service Account. On each February 1, the City Finance Director shall
determine the amount on hand in the Debt Service Account. If such amount is in
excess of one - twelfth of the debt service payable from the Bond Fund in the
immediately preceding 12 months, the City Finance Director shall promptly transfer
the amount in excess to the Surplus Account. The City appropriates to the Surplus
Account any amounts to be transferred thereto from the Debt Service Account as
herein provided and all income derived from the investment of amounts on hand
in the Surplus Account. If at any time the amount on hand in the Debt Service
Account is insufficient to meet the requirements of the Bond Fund, the City Finance
Director shall transfer to the Debt Service Account amounts on hand in the Surplus
Account to the extent necessary to cure such deficiency.
4.03. Ad Valorem Taxes. The full faith and credit and taxing powers of
the City are irrevocably pledged for the prompt and full payment of the principal of
-14- •
• and interest in the Bonds as the same become respectively due. For the purpose
there is hereby levied upon all of the taxable property of the City a direct, annual ad
valorem tax, which shall be spread upon the tax rolls prepared in each of the
following years and collected with other taxes in the following years and amounts as
follows:
Levy
Collection
Year
Year Amount
1995
1996
1996
1997
1997
1998
1998
1999
1999
2000
2000
2001
2001
2002
2002
2003
2003
2004
2004
2005
2005
2006
2006
2007
2007
2008
• 2008
2009
2009
2010
The foregoing tax levies are such that if collected in full they will produce at least
five percent (5 %) in excess of the amount needed to pay when due the principal of
and interest on the Bonds. This tax shall be irrevocably appropriated to the Bond
Fund as long as any of the Bonds are outstanding and unpaid; provided that the City
reserves the right and power to reduce the levies in the manner and to the extent
permitted by Minnesota Statutes, Section 475.61.
If the money on hand in the Bond Fund should at any time be insufficient for the
payment of principal and interest then due, this City shall pay the principal and
interest out of any fund of the City, and such other fund or funds shall be
reimbursed therefor when sufficient money is available to the Bond Fund. Yon
October 1 in any year the sum of the balance in the Bond Fund plus the amount of
taxes theretofore levied for the payment of the Bonds collectible through the end of
the following calendar year is not sufficient to pay when due all principal and
interest become due on all Bonds payable therefrom in said following calendar year,
or the Bond Fund has incurred a deficiency in the manner provided in this Section
4.03, a direct, irrepealable, ad valorem tax shall be levied on all taxable property
within the corporate limits of the City for the purpose of restoring such accumulated
or anticipated deficiency in accordance with the provisions of this resolution.
-15-
Section 5. Defeasance. When all of the Bonds have been discharged as ,
provided in this section, all pledges, covenants and other rights granted by this
resolution to the holders of the Bonds shall cease. The City may discharge its
obligations with respect to any Bonds which are due on any date by depositing with
the paying agent on or before that date a sum sufficient for the payment thereof in
full; or, if any Bond should not be paid when due, it may nevertheless be discharged
by depositing with the paying agent a sum sufficient for the payment thereof in full
with interest accrued to the date of such deposit. The City may also at any time
discharge its obligations with respect to any Bonds, subject to the provisions of law
now or hereafter authorizing and regulating such action, by depositing irrevocably
in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or
securities which are general obligations of the United States or securities of United
States agencies which are authorized by law to be so deposited, bearing interest
payable at such time and at such rates and maturing on such dates as shall be
required, without reinvestment, to pay all principal and interest to become due
thereon to maturity.
Section 6. ReglAration. Certfication of Proceedings, Investment of
Moneys. • and Official Statement.
6.01. Registration. The City Administrator is hereby authorized and
directed to file a certified copy of this resolution with the County Auditor of McLeod •
County, together with such other information as he shall require, and to obtain
from the County Auditor a certificate that the Bonds have been entered on his bond
register and that the tax required for the payment thereof has been levied and filed
as required by law.
6.02. Certification of Proceedings. The officers of the City and the
County Auditor of McLeod County are hereby authorized and directed to prepare
and furnish to the Purchaser, and to Dorsey & Whitney P.L.L.P., Bond Counsel,
certified copies of all proceedings and recotds of the City, and such other affidavits,
certificates and information as may be required to show the facts relating to the
legality and marketability of the Bonds as the same appear from the books and
records under their custody and control or as otherwise known to them, and 01
such certified copies, certificates and affidavits, including any heretofore furnished,
shall be deemed representations of the City as to the facts recited therein.
6.03. Covenant. The City covenants and agrees with the holders from
time to time of the Bonds that it will not take or permit to be takgn by any of its
officers, employees or agents any action which would cause the interest on the
Bonds to become subject to taxation under the Internal Revenue Code of 1986, as
amended (the Code), and Regulations promulgated thereunder (the Regulations), as
such are enacted or promulgated and in effect on the date of issue of the Bonds, and
-16- •
• covenants to take any and all actions within its powers to ensure that the interest on
the Bonds will not become subject to taxation under such Code and Regulations.
The facility to be financed with the Bonds will be owned, operated and maintained
by one or more governmental entity. The City shall not enter into any lease, use or
other agreement with any non - governmental person relating to the use of such
facility or security for the payment of the Bonds which might cause the Bonds to be
considered "private activity bonds" or "private loan bonds" within the meaning of
Section 141 of the Code.
6.04. Arbitrage Rebate. The City acknowledges that the Bonds are
subject to the rebate requirements of Section 148(f) of the Code. The City covenants
and agrees to retain such records, make such determinations, file such reports and
documents and pay such amounts at such times as are required under said Section
148(f) and applicable Regulations to preserve the exclusion of interest on the Bonds
from gross income for federal income tax purposes, unless the Bonds qualify for the
exception from the rebate requirement under Section 148(f)(4)(C) of the Code and no
"gross proceeds" of the Bonds (other than amounts constituting a 'bona fide debt
service fund ") arise during or after the expenditure of the original proceeds thereof.
In furtherance of the foregoing, the City Finance Director is hereby authorized and
directed to execute a Rebate Certificate, in the form prescribed by Bond Counsel, and
the City hereby covenants and agrees to observe and perform the covenants and
agreements contained therein, unless amended or terminated in accordance with
• the provisions thereof.
6.05. Arbitrage Certification. The Mayor and City Finance Director,
being the officers of the City charged with the responsibility for issuing the Bonds
pursuant to this resolution, are authorized-and directed to execute and deliver to the
Purchaser a certificate in accordance with the provisions of Section 148 of the Code,
and Section 1.148- 2(b)(2) of the Regulations, stating the facts and estimates in
existence on the date of issue and delivery of the Bonds which make it reasonable to
expect that the proceeds of the Bonds will not be used in a manner that would cause
the Bonds to be arbitrage bonds within the meaning of said Code and Regulations.
6.06. Interest Disallowance. The City hereby designates the Bonds as
"qualified tax —exempt obligations" for purpose of Section 265(b) of the Code relating
to the disallowance of interest expenses for financial institutions. The City
represents that in calendar year 1995 it does not reasonably expect to issue
tax —exempt obligations which are not private activity bonds (not treating qualified
501(c)(3) bonds under Section 145 of the Code as private activity bonds for purposes
of this representation) in an amount in excess of $10,000,000.
6.07. Official Statement. The Official Statement relating to the Bonds,
dated June 2, 1995, prepared and distributed on behalf of the City by Ehlers and
Associates, Inc., is hereby approved. Ehlers and Associates, Inc., is hereby authorized
-17-
of behalf of the City to prepare and distribute to the Purchaser a supplement to the
Official Statement listing the offering price, the interest rates, other information
relating to the Bonds required to be included in the Official Statement by Rule 15c2-
12 adopted by the Securities and Exchange Commission under the Securities
Exchange Act of 1934. Within seven business days from the date hereof, the City
shall deliver to the Purchaser copies of the Official Statement and such supplement.
The officers of the City are hereby authorized and directed to execute such certificates
as may be appropriate concerning the accuracy, completeness and sufficiency of the
Official Statement. The officers of the City are hereby authorized and directed to
execute such certificates as may be appropriate concerning the accuracy,
completeness and sufficiency of the Official Statement.
Section 7. Authorization of Payment of Certain Costs of Issuance of th e
Bonds. The City Finance Director is hereby authorized and directed on the date of
issuance and delivery of the Bonds to pay from the proceeds of the sale of the Bonds,
deposited in the Construction Fund the fees and expenses of the following persons
incurred in connection with the issuance of the Bonds up to the maximum amount
set forth opposite the name of such person upon receipt by the City of a satisfactory
statement therefor:
F[i
Ehlers and Associates, Inc.
Minneapolis, Minnesota
Moody's Investors Service,
Inc.
Service
Performed
Financial Consultant
Rating of Bonds
0 ,
The claims of the above persons up to the maximum amount set forth opposite the
name of such person is hereby approved and no further action of this Council shall
be necessary in connection with the paymetlt of such fees and expenses of issuance
of the Bonds.
Attest:
City Administrator
ffn
Mayor
10
•
0
!
The motion for the adoption of the foregoing resolution was duly
seconded by Councilmember
and upon vote being taken
thereon, the following Councilmembers voted in favor thereof:
and the following Councilmembers voted against the same:
whereupon said resolution was declared duly passed and adopted, and was signed by
the Mayor, which was attested by the City Administrator.
-19-
0 0 0
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�J
Moody's Municipal
Daily Rating Recap
Hutchinson, Minnesota Rating date: June 9, 1995
Moody's rating: Boa 1
$4,185,000 General Obligation Improvement Bonds,
Series 1995A
$1,500,000 General Obligation Bonds, Series 1995B
Sale: $5,685,000
Date of Sale: June 12
Type: Competitive
Security: General obligation, unlimited tax.
Use of Proceeds: Series 1995A will finance various
improvements in the city; Series 1995B will fund the
city's portion of a vehicle maintenance facility.
Last Rating change: August 1990: Ato Baal
Update of related ratings:
Hutchinson, Minnesota
•Moody's rating: Baal
General Obligation Hospital Revenue Bonds
CJ
Credit Comment: Key factors supporting the confir-
mation of the Baa I rating on the general obligation
bonds of this central Nhnnesota city are as follows:
■ Unaudited fiscal year 1994 results of the city-owned
hospital show an improvement in net income, with
revenues rising at twice the rate of expenditures,
providing ample coverage of debt service on the siza-
ble amount of outstanding city general obligation hos-
pital/revenue bonds. In the prior year, net revenues
were inadequate to cover debt service resulting in a
draw on the hospital's cash reserves. Financial per-
formance for the hospital in fiscal year 1995 is antici-
pated to be similar to fiscal 1994 results. The
hospital's small size and area competition are
long -tern credit concerns; however, the hospital
intends to continue to pay this debt from its own
sources. At the present time, we are also confirming
the Boa I rating on Hutchinson's general obliga-
tion/hospital revenue bonds.
• A diverse local economy, includes medical, trade and
service sectors. The 3 -M Company is also an impor-
tant and substantial element in the employment and
tax base. Moderate tax base growth has been a
favorable trend of this city of nearly 12,000 inhabi-
tants. The city's socioeconomic profile is somewhat
below that of the state in general.
• Although the city's debt burden and debt per capita
are well above the medians for similarly sized cities,
debt load appears manageable, given the support for
most of the city's general obligation debt from hospi-
tal and utility enterprise revenues, special assess-
ments, and tax increments. Additionally, the city
plans to issue $2.0 million general obligation bonds in
1996 for infrastructure improvements to be paid pri-
marily from special assessments.
■ Satisfactory financial operations are depicted by the
maintenance of a healthv General Fund balance. In
unaudited fiscal 1994, a modest General Fund operat-
ing surplus is anticipated due to higher than budgeted
building permits and interest earnings. Year -to -date
financial operations are consistent with the 1995
budget and the city projects balanced operations.
analyst: Mark S. Taylor
(212) 553 -1024
q, A,
As of June 9, 1995 Moody's Municipal Dally Rating Recap
Hutchinson, Minnesota (continued)
0
�� Copyrigln 1995 by Moody -s Imestoa Service, Inc.. 99 Church .Street. "few York. New Yosk 1000"
All riglns reserved. ALL I.NFORMATIO. CONTAINED HERELN IS COPYRIGHTED IN THE NAME OF MOODY'S INVESTORS SERVICE, LNG (•`MOODY'S ").
AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED,
DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SLBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY PORES
OR MANNER OR BY ANY MEANS WHATSOEVER BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.
All indomntim contained herein is obtained by MOODY'S firm sources believed by it to be accnme and reliable. Because of the PocrilriEty of Nt os mechantial error as well
u other farms. however, such irifommion v provided "v io widran warranty of any kind and MOODY'S, in partiailer. unka ro repewmauon m wausnty. mpreas m implied, m
to the aocmery. cmelinen, completeness. meclwmdnluy or:mess for any peraotder purpose of any such info�aon Under no amaastmas slnll MOODY'S dmve any liability to
any person or entity for (a) my loss u, damage in whole or in port caused by, resulting from or relating W. son error (negligent Cr odwraise) m other cmhmnerse or cmritge c'
within a outside the control of MOODY'S or any of its directors. officers, emPloym or aquas in conmecdon with de pocm i ms, collection compilation analysis. imeryteiiaron
cmmnrtiatioa
Publication or delivery of eery such mfoccaetion, or (b) my direct usirre;t speckd, crosegttenmal, coroperumay, or inciderld damages whm ver (ktchdbg without
lkmtation let profits). even if MOODY'S u advised in advarha of the possibility of such damages. tapir$ ftvn de tree of m inaheliry w ma ary ash itd'®adm.
The credit ratings. if any, wnainning pmt of the indo® coruessd herein m, acd corn be construed solely u, smemms of opntict' and cwt mumrerts a fact or
rec®ederiotn to purdme, sell or hold my sectmties. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS,
. MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE
BY MOODY ^S IN ANY FORM OR MANNER WHATSOEVER Each ratig or other opinion nme be weighed solely ss an factor in any unvatmmt decision made by or on
behalf of any user of die infonnndon contained herein. and eecb such user norm accordingly make its own study and evshinum of each security and of each issuer and gtwaram' of. acid
each Provider of credit support far. each security dot it may consider p rclasing. holding or selling. Purmant to Section 1'(b) of the Securitiea Act of 1933. MOODY'S hereby
discloses that most issuers of debt smnssiea (including corporate and municipal bonds, debentures. notes aM couauer del Papa) Ord preferred stock rated by MOODY'S lava. prior to
ustgumem of any rating. agreed to pay to MOODY'S for appraisal and rating mitts tendered by it fees ranging from 53.000 no S350.000.
t
,s : /SS Q 212- 553 - 4000 -> 1 612 Z34 4240 !body's Inuestors Page 005
f
Copyright 1995 by Moody's Investors Service, Inc., 99 Church Street, New York,
New York 10007. All rights reserved. ALL INFORMATION CONTAINED HEREIN IS
COPYRIGHTED IN THE NAME OF MOODY'S INVESTORS SERVICE, INC. ( ,,MOODY'S "),
AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED,
FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR
STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY
FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT
MOODY'S PRIOR WRITTEN CONSENT.
All information contained herein is obtained by POWY'S from sources believed
by it to be accurate and reliable. Because of the possibility of human or
mechanical error as well as other factors, however, such information is
provided "as is" without warranty of any kind and MOODY'S, in particular,
makes no representation or warranty, express or implied, as to the accuracy,
timeliness, completeness, merchantability or fitness for any particular
purpose of any such information. Under no circumstances shall MOODY'S have
any liability to any person or entity for (a) any loss or damage in whole or in
part caused by, resulting from, or relating to, any error (negligent or
otherwise) or other circumstance or contingency within or outside the control
of MOODY'S or any of its directors, officers, employees or agents in
connection with the procurement, collection, compilation, analysis,
interpretation, communication, publication or delivery of any such information,
or (b) any direct, indirect, special, consequential. compensatory or
incidental damages whatsoever (including without limitation, lost profits),
even if MOODY'S is advised in advance of the possibility of such damages,
resulting from the use of or inability to use, any such information.
The credit ratings, if any, constituting part of the information contained
herein are, and must be construed solely as, statements of opinion and not
statements of fact or recommendations to purchase, sell or hold any securities.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS,
MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR
OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR
MANNER WHATSOEVER. Each rating or other opinion must be weighed solely as
one factor in any investment decision made by or on behalf of any user of
the information contained herein, and each such user.must accordingly make
its own study and evaluation of each security and of each issuer and
guarantor of, and each provider of credit support for, each security that
it may consider purchasing, holding or selling. Pursuant to Section 17(b)
of the Securities Act of 1933, MOODY'S hereby discloses that most issuers
of debt securities (including corporate and municipal bonds, debentures,
notes and commercial paper) and preferred stock rated by MOODY'S have,
prior to assignment of any rating, agreed to pay to MOODY'S for appraisal
and rating services rendered by it fees ranging from $1,000 to $350,000.
C
JLLIIC 1J, 1777
M E M O R A N D U M
TO MAYOR AND CITY COUNCIL
FROM HAZEL SITZ, HUMAN RESOURCES COORDINATOR 4V
RE ANNUAL CITY APPRECIATION PICNIC
The normal date for the 21st Annual City Appreciation Picnic for
employees, boards and commissions (300 -plus guests) would be
Wednesday, August 23 this year. Some items need to be decided
about the picnic:
1 Location - the Civic Arena has been used in recent years=
however, due to remodeling, it will not be available this
August. Other location options would be
'Riverside Park - used in the past - rain -out could cause a
problem.
*Recreation Center - swimming and other adult and youth
activities continue there until 9 p.m.
2 Beverages - What policy does the council want to use this
year regarding serving beer and wine coolers?
3 Menu - Recently, the Pork Producers have grilled pork chops,
served along with catered food. Recommendation for this
year?
4 Other - Does the Council have suggestions for other changes?
City Center
I I Hassan Street SE
Hutchinson, MN 55350 -2522
(612) 587 -5151
Fax(612)234 -4240
Parks & Recreation
900 Harrington Street SW
Hutchinson, MN55350 -3097
(612) 587 -2975
Fax(612)234 -4240
- P"w'd i'n rrn'<led PPer -
Police Services
10 Franklin Street SW
9_ Hutchinson, MN 55350 -2464
(612) 587 -2242
Fax(612)587 -6427
C,
To : Mayor and Council
From: Dolf Moon, Director - Parks, Recreation and Community Education
Mary Haugen, Facilities and Operations Manager
Date: June 2, 1995
Re: Bid award for used refrigeration equipment
A bid opening was held Thursday, May 25 for the sale of the Civic Arena's
used refrigeration equipment - ie. - cooling mats and compressors. The
following bids were received:
Redwood Area Hockey Association
Redwood Falls, Minnesota
$4500.
Sun Blades Ice Arena
Clearwater, Florida
$8100.
We recommend that Sun Blades Ice Arena be awarded the bid in the amount of
$8100. The buyer has until July 28th to pick up the equipment. The compressor
package has already been moved away from the site so that the arena contractor
can begin his work.
City Center
!!! Hassan Street SE
utchinson, MN 55350 -2522
(612) 587 -5151
Fax (612) 234 -4240
Parks & Recreation
900 Harrington Street SW
Hutchinson, MN 55350 -3097
(612) 587 -2975
Fax(012)234 -4240 — Y
- P,mled nn reryrled Myrer -
Police Services
10 Franklin Street SW
Hutchinson, MN 55350 -2464
(612) 587 -2242
Fax(612)587 -6427
7. In submitting this bid, it is understood that the City retains the right to reject
any and all bids and to waive irregularities and informalities therein and to
award the bid to the best interests of the City.
8. It is understood that the bids may not be withdrawn for a period of 45 days after
the date and time set for the opening of bids, It is understood that the City
reserves the right to retain the certified check or bid bond of the three highest
bidders for a period not to exceed 45 days after the date set for the opening of
bids.
We, the buyer agree to the conditions as described above. We propose to purchase the
used refrigeration equipment from the City of Hutchinson for the following amount:
I► •
0
Total Amount Bid
EGA /Tr�•��e ✓O �NC/ yv�r Jie � Di��rfi�
S�A1+0. 4 A AilE,�1,g-
Name (ComDany or Individual)
Signed
1 ubja ICC1t enL
R�tnRO
Ruthda. C.enlr2 (813)5*%0
welc. tL 34620 - 1
Title
_ /GKA�20 �/�S /4ELr/1K/
Printed Name of Signer
L_
�� L
BID PROPOSAL
OFFER TO PURCHASE
CIVIC ARENA USED REFRIGERATION EQUIPMENT
• OPENING DAY AND TWE - THURSDAY, MAY 25TH, 1995 2:00 P.M.
CITY CENTER, 111 HASSAN STREET SE, HUTCHINSON, MN
Honorable City Council
City of Hutchinson
City Center
111 Hassan Street SE
Hutchinson, Minnesota 55350
Dear Council Members:
The undersigned, being familiar with the used compressor package and refrigeration
mats, having had the opportunity for making the field inspections and investigations
deemed necessary, and being familiar with other factors and conditions such as
transportation, reconnection expense, do agree to the following:
1. The equipment is purchased "as is ". The City makes no claims, warranties or
guarantees as to its condition or remaining life. The buyer assumes any and all
risks and any associated costs.
2. Payment must be made by cashier's or certified check payable in U.S. funds on
or before July 29, 1995. The equipment shall not be removed unless and
until full payment is received.
3. The equipment must be removed from the premises by the above mentioned
payment date. Failure to remove by the stated date shall result in a storage fee
of $200. for each week that it remains.
4. All transportation fees shall be paid by the buyer. The City agrees to assist in
the loading of the refrigeration mats only. A tractor will be available to lift
them on to the buyer's vehicle or trailer.
5. Upon payment in full, the equipment becomes the sole responsibility of the
buyer. All liability and stewardship is transferred to the buyer including
environmental protection from any spilled or leaked substances including
refrigeration oil, ethylene glycol, and R -22 refrigerant.
6. A bidder's bond, certified check or cash deposit in the amount of five percent
(5 %) of the amount bid needs to be included as part of this bid. The bond or
check should be made payable to the City of Hutchinson and is subject to
forfeiture in the event of default on the part of the bidder.
•
7. In submitting this bid, it is understood that the City retains the right to reject
any and all bids and to waive irreguwidea and informalities therein and to
award the bid to the best interests of the (may,
8. It is understood that the bids may not be 'withdrawn for a period of 45 days after
the date and time ad for the opening of bids, -It is understood that the City
reserves the right to retain the certified check or bid bond of the three highest
bidders for a period not to exceed 45 days tiler the date set for the opening of
bids.
We, the buyer agree to the conditions as described above. We propose to purchase the
used refrigeration equipment from the City of Hutchinson for the following amount:
// 1 WMWT41
I
&Wood ,area &gam As-We
Name (Company or Individual)
WIM
Printed Name of Signer
TnTa 0 n'
0
•
•
LJ
DAVID B. ARNOLO'
STEVEN A. ANDERSON
G. BARRY ANDERSON'
STEVEN S. HOGE
LAURA K. FRETLAND
DAVID A. BRUEGGEMANN
PAUL D. DOVE"
RICHARD G. McGEE
CATHRYN D. REHER
GINA M. BRANDT
BRETT D. ARNOLD
'ALSO ADMm[o IN TEXAS AND NEw TOnn
ARNOLD, ANDERSON & DOVE
PROFESSIONAL LIMITED LIABILITY PARTNERSHIP
ATTORNEYS AT LAW
101 PARK PLACE
HUTCHINSON, MINNESOTA 55350 -2563
(612) 587 -7575
FAX (612) 887 -4096
Mr. Gary D. Plotz
City Administrator
Hutchinson City Center
111 Hassan Street S.E.
Hutchinson, Mn. 55350
RESIDENT ATTORNEY
G. BARRY ANDERSON
June 9, 1995
Re: Lowell D. Otto Property
Our File No. 3244 -95084
Dear Gary:
OF COUNSEL
RAYMOND C. LALLIER
JANE VAN VALKENBURG
5881 CEDAR LAKE ROAD
MINNEAPOLIS, MINNESOTA 55416
(612) 545 -9000
FAX (612) 545 -1793
501 SOUTH FOURTH STREET
PRINCETON, MINNESOTA 55371
(612) 389-2214
FAX 1612) 389-3506
F;ECEWED
JOIN ') 1995
CITY OF HUTCHINSON
This correspondence is for the purpose of updating the Council on
the status of the above referenced matter. A criminal complaint
was issued against Mr. Otto relating to the care and maintenance of
certain property owned by Mr. Otto located at 215 Fifth Avenue
N.E., Hutchinson, Minnesota.
Although our City Ordinance provides a civil method of cleaning up
the property, by giving appropriate 15 days written notice and then
proceeding forward with an effort to clean up the property and
assessing the cost against the property owner, in discussing this
matter with Lt. Schwartz, the conclusion I reached is there is some
probability of a counterclaim by Otto relating to the disposition
of his personal property. In other words, if we simply use a
summary proceeding, without a court appearance, we run the risk of
some litigation concerning the wrongful seizure of his property.
However, there is another way to go forward with this matter which
will reduce, although not eliminate, that possibility. I recommend
that the Council adopt an Order pursuant to Chapter 463 of
Minnesota Statutes which we will then serve on Mr. Otto and all
lien holds associated with the property. Mr. Otto will have thirty
(30) days from the date of service of the Order to clean up the
property, presumably around mid July. If he does not do so, the
City can simply secure an Order permitting the City to clean up the
property and assess the cost against him.
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
9 -D.
Mr. Gary D. Plotz
June 9, 1995
Page 2
I have already secured from the District Court Administrator a date
for the Motion for Summary Enforcement of the Order and that date
will be July 28, 1995 at 10:00 A.M.
I realize that a preference has been expressed for having the
property completely cleaned up by July 1, but I think a more
realistic date is going to be August 1. I am advised by Lt.
Schwartz that the clean up process will involve a fairly good sized
City crew and perhaps a week or two of time to get the property in
order.
If you have any questions in connection with the foregoing, please
advise.
Thank you. Best regards.
Very trul., ....,,,
ARNOLD,
G. Barry
GBA:lm
Enclosure
P.
•
•
40
• TO: LOASLL D. OTTO NOTICE TO REPAIR OR REMOVE
Pursuant to the authority of Minnesota Statutes Section 463.15
through 463.261, you are individually and collectively ordered to
repair or remove defective and unsafe health conditions
accumulating on and about 215 Fifth Avenue N.E., Hutchinson, Mn.
55350, legally described as:
Said property constitutes "hazardous property" as defined by
Minn. Stat. §463.15 as property, because of inadequate maintenance,
abandonment, and unsanitary conditions, constitutes a hazard to
and personal property presently accumulated on said property (b)
removal of rats and other rodents; (c) elimination of noxious weeds
and control of grass. For further information contact the
Hutchinson Police Department. These improvements shall be made
within thirty (30) days of the date of this Order. A Motion for
Summary Enforcement of the Order will be made to the District Court
of McLeod County, First Judicial District of the State of Minnesota
unless corrective action is taken or an answer filed within twenty
(20) days from the date of service of this notice. The cost of any
corrective action taken by the City pursuant to Court Order,
including costs of repair, removal or enforcement, shall be charged
• against the real estate as provided by Minnesota Statute §463.21.
public safety or health.
Repair or
removal of the hazardous
conditions includes, but is
not limited
to (a) removal of all junk
and personal property presently accumulated on said property (b)
removal of rats and other rodents; (c) elimination of noxious weeds
and control of grass. For further information contact the
Hutchinson Police Department. These improvements shall be made
within thirty (30) days of the date of this Order. A Motion for
Summary Enforcement of the Order will be made to the District Court
of McLeod County, First Judicial District of the State of Minnesota
unless corrective action is taken or an answer filed within twenty
(20) days from the date of service of this notice. The cost of any
corrective action taken by the City pursuant to Court Order,
including costs of repair, removal or enforcement, shall be charged
• against the real estate as provided by Minnesota Statute §463.21.
Adopted this 12th day of June, 1995
CITY OF HUTCHINSON
By:
Marlin Torgerson, Mayor
Attest:
Gary D. Plot2
City Administrator
r1
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Hutchinson City Caner / I I I Hassan Street SE / Hutchinson, Minnesota S53S0 -2522 / Phone (612) 234 -4209 /FAX (612) 234.4240
• ENGINE ERINGREPORT
TO: Mayor and City Council
FROM: John P. Rodeberg, Director of Engineering/Public Works
DATE: June 12th, 1995
SUBJECT: Letting No. I/Project No. 96-01
I have studied the following areas and find that the proposed project is feasible and recommend it be
constructed.
Project No. 96-01: 13th Avenue NW in Krsiean Acres a/k/a Lots 1 & 2 of Block 1 and Lots 1
through 3 of Block 2, in Krsiean Acres, hereby petition that such property be improved by construction
of sanitary sewer and services, watermain and services, street restoration and appurtenances.
Construction Cost
• Engmoenng/Administraton
Fiscal/LcgA(lnterest
ESTIMATED TOTAL
Assessable Cost
Deferred Assessable Cost
Citv Bonded
City Other Funds
MSA
Mn/DOT
ESTIMATED TOTAL
• Does gl Include Trunk Asssesaments!
a: Cal Riu - Enguwermg Department
file: L 1/96 -01
•
S65,000.00
S10,400.00
S 5,200.00
S 80,600.00
S 0.00
S 0.00
S 0.00
S 0.00
S 0.00
—2 ,
CITY OF HUTCHINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON, MN 55350
ENGINEER'S REPORT
DATE:
TO: Mayor and City Council
FROM: John P. Rodeberg, Director of Engineering
RE: Letting No. I , Project No. ' 6 - O 1
I have studied the following areas and find that the proposed project is feasible and recommend it be
constructed. If acceptable, I recommend a hearing be held on the day of '19 .
6k
Project No. `6� 1 $T+ qv? W4 .N ci Cv hc2 c3
by construction of and appurtenances.
Construction Cost $ �7 6SooC
Engineering/Administration (16 %) $ 10, s1GG
Fiscal /Lepl/Capitalized Interest (8%) $ S, Z. cc
ESTIMATED TOTAL S Fr- b c
Assessable Cost
Deferred Assessable Cost
City Bonded
City Other Funds
MSA
MNDOT
ESTIMATED TOTAL
JPR/PV
S
i
C.
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• AGREEMENT OF ASSESSMENT, WAIVER OF HEARING AND
WAIVER OF IRREGULARITY AND APPEAL
LETTING NO.
PROJECT NO.
This Agreement, is made this 22nd day of Bay , 1995, between the City of Hutchinson, State of
Minnesota, hereinafter referred to as the City and Property Owners of Lots 1 bt 2 of Block 1 and Lots 1 through
3 of Block 2 in Rrsiean Acres, hereinafter referred to as Owners.
In consideration of the action of the City Council, at the owners' request, to cause the improvement of
Lots 1 bt 2 of Block 1 and Lots 1 through 3 of Block 2 in Krsiean Acres by construction of sanitary sewer and
services, watermain and services and appurtenances, and to assess 100% of the cost of said improvements to the
Owner, the Owner agrees to pay said percentage, as may be determined by the Council of the City to be a fair
apportionment of the costs of said improvement not to exceed S 77.000.00 , plus interest, over a period ten years.
Owner expressly waives hearing and objection to any irregularity with regard to the said improvement
assessments and any claim that the amount thereof levied against owner's property is excessive, together with all
rights to appeal in the courts.
This agreement shall be binding upon and extend to the heirs, representatives, assigns and successors of the
parties.
In testimony, whereof, said Owners have hereunto set his hand, the day and year first above written
Owners Signature:
Legal Description:
Mayor
CITY OF HUTCHINSON
In Presence of:
City Administrator
U
We the above signed are requesting to have city sever and water, curb and gutter
and road paved as soon as the City can work us into their schedule. Three of the
five signatures now have severs that are not working correctly. We would like to
have our street completed as well, when you do the sever and water. Please let us
know what the City's decision is as soon as possible. Approved by above signatures.
• l_7`
Sharon Daniels
q E
51111 Lei on reTWOM3 a 13 Q 701,55 J, J a lye 51 • : • ' . \ • :7►I S.
LETTING •
PROJECT
Hutchinson, Minnesota
Dated: 5 -22 -1995
TO THE CITY COUNCIL OF HUTCHINSON, MINNESOTA:
We, the owners of real property known and described as Lots I & 2 of Block 1 and Lou I through 3 of Block 2,
in Krsiean Acres, hereby petition that such property be improved by construction of sanitary sewer and services,
watermain and services and appurtenances pursuant to Minnesota Statutes, Chapter 429.
This petition shall be binding upon and enend to the heirs, representative, assigns and successors of the parties.
• Cry►I S • : r l; � 1 1J1 • ►
/ I! , ! =
12t 2, Blk
I have caused an examination to be made of the records provided by the County of McLeod, in order to
ascertain the names and addresses of each person, firm or corporation having an interest in each lot, tract or parcel
for which improvement is requested and against which a special assessment will be made for the entire cost of the
improvement. After making search and inquiry, I am unable to find any other persons, firms or corporation who
have interest other than those listed To my best knowledge, the persons herein named are all the owners of
properties affected by the petitioned improvement.
CITY OF HUTCHINSON
By:
We the above signed are requesting to have city sews
and road paved as soon as the City can work us into
five signatures now have severs that are not working
have our street completed as well, when you do the a
knw what the City's decision is as soon as possible.
Sharon Daniels
r and water, curb and gutter
their schedule. Three of the
correctly. We would like to
ewer and water. Please let us
Approved by above signatures.
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RESOLUTION NO. 10496
• RESOLUTION DECLARING ADEQUACY OF PETITION AND
ORDERING PREPARATION OF REPORT
LETTING NO. 1
PROJECT NO. 9&01
WHEREAS, a petition requesting the improvement of Lots 1 & 2 of Block 1 and Lots 1 through 3 of
Block 2, in Rrsiean Acres, hereby petition that such property be improved by construction of sanitary sewer and
services, watermain and services and appurtenances, was duly presented to the Council on the 12th day of June, 1995.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF HUTCHINSON,
MINNESOTA:
1. Said petition is hereby declared to be signed by the required percentage of owners of property affected
thereby. This declaration is made in conformity to Minnesota Statutes. Section 429.035.
2. The proposed improvement is hereby referred to the Director of Engineering and he is instructed to
report to the Council with all convenient speed advising the Council m a preliminary way as to whether the
proposed improvement is feasible and as to whether it should best be made as proposed or in connection with some
other improvement, and the estimated cost of the improvement as recommended.
Adopted by the Council this 12th day of June, 1995.
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Ciry Administrator
l I
Mayor
RESOLUTION NO. 10497
RESOLUTION RECEIVING REPORT AND WAIVING HEARING ON IMPROVEMENT •
LETTING NO. 1
PROJECT NO. 9601
WHEREAS, pursuant to a resolution of the Council adopted June 126, 1995, a report has been prepared by
the Director of Engineering, with reference to the improvement of 13th Avenue NW in Krsiew Acres a/k/a Lots 1 &
2 of Block 1 and Lots 1 through 3 of Block 2, in Krnean Acres, hereby petition that such property be improved by
construction of sanitary sewer and services, watermain and services, street restoration and appurtenances and said report
was received by the Council on June 12th, 1995.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HUTCHINSON, MINNESOTA:
1. The Council will consider the improvements of such streets in accordance with the reports and the assessment
of benefuted property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429,
at an estimated total cost of the improvement of $80,600.00.
2. The public hearing on such proposed improvements is hereby waived, as said improvement was petitioned
for and hearing waived by 100% of the property owners.
Adopted by the Hutchinson City Council this 12th day of June, 1995,
Mayor
City Administrator
•
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RESOLUTION NO. 10498
RESOLUTION ORDERING IMPROVEMENT
AND PREPARATION OF PLANS AND SPECIFICATIONS
LETTING NO. 1
PROJECT NO. 9601
WHEREAS, a resolution of the City Council adopted the 12th day of June, 1995, waived public hearing on the
improvement of 13th Avenue NW in Rrsiean Acres a/k/a Lots 1 8c 2 of Block 1 and Lots 1 through 3 of Block 2, in
Krsiean Aces, hereby petition that such property be improved by construction of sanitary sewer and services, watermain
and services, street restoration and appurtenances.
NOW THEREFORE, BE rT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
1. Such improvement is hereby ordered as proposed in the resolution adopted the 126 day of June, 1995.
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 12th day of June, 1995.
C�
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City Adrr^ rust MOr
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Mayor
/'z
RESOLUTION NO. 10499
RESOLUTION APPROVING PLANS AND SPECIFICATIONS
AND ORDERING ADVERTISEMENT FOR BIDS
LETTING NO. 1
PROJECT NO. 96-01
WHEREAS, the Director of Engineering has prepared plans and specifications for the improvement of 13th
Avenue NW in Krsiean Acres a/k/a Lots 1 & 2 of Block 1 and Lots 1 through 3 of Block 2, in Krsiean Acres, hereby
petition that such property be improved by construction of sanitary sewer and services, watermain and services, street
restoration and appurtenances.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
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 publicly opened at 10:00 am
on Friday, July 14, 1995, 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 July 25, 1995, 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 12th day of June, 1995.
Mayor
City Administrator
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• Hutchinson City Center/ I (I Hassan Street SE / Hutchinson, Minnesota 55350 -2522 /Phone (612) 2344209 /FAX (612) 2344240
EN GIN EE RING REPORT
TO: Mayor and City Council
FROM: John P. Rodeberg. Director of Engineering/Public Works
DATE: June 12th, 1995
SUBJECT: Letting No. 2/Project No. % -02
I have studied the following areas and find that the proposed project is feasible and recommend it be
constructed. If acceptable. I recommend a hearing be held on the 27th day of June. 1995 at 6:00 pm.
Project No. 96-02: Arch Street from 1000' East of Michigan Street to the Railroad Tracks by
construction of Storm Sewer, Grading, Gravel Base, Concrete Curb and Gutter, Bituminous Base and
Wear Course, and Appurtenances.
TOTAL
Constntcaon Cost s0 00000
ErIg meering/Administra ton
• F=&Legal/Interest S 8,000.00
S 4,000.00
ESTIMATED TOTAL 562.000.00
Assessable Cost
Deferred Assessable Cost
S31,000.00 -
City Bonded
S 0.00
City Other Funds
531,000.00
MSA
S 0.00
Mn/DOT
S 0.00
S 0.00
ESTIMATED TOTAL
$62.000.00
' Assumed poficy of assessment to lots in Industrial Park
being
paid for by City per HCDC recommendation.
cc. Col Rice - Fleeting Dcportmeat
tik: [2196 -02
•
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PUBLICATION NO.
NOTICE OF HEARING ON PROPOSED IMPROVEMENT
LETTING NO.2 •
PROJECT NO. 96.01
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 800 P.M. on the 27th day of June, 1995, to
consider the making of an improvement of Arch Street from 1000' East of Michigan Street to the Railroad Tracks by
construction of Storm Sewer, Grading, Gravel Base, Concrete Curb and Gutter, Bituminous Base and 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 beneficed property, for which property owners shall receive mailed notice.
The estmated City Cost of said improvement u S with an estimated f Assessable Cost,
for the total estimated cost of f
Such persons as desire to be heard with reference to the proposed improvement will be heard at this meeting.
Dated: June 11th, 1995.
City Administrator
•
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, JL ,;E 13TH, 1995 AND THURSDAY,
JUNE 22ND, 1995.
•
RESOLUTION NO. 10500
• RESOLUTION ORDERING PREPARATION OF REPORT ON IMPROVEMENT
LETTING NO. 2
PROJECT NO. 9602
WHEREAS, it is proposed to improve Arch Street from 1000' East of Michigan Street to the Railroad
Tracks by construction of Storm Sewer, Grading, Gravel Base, Concrete Curb and Gutter, Bituminous Base
and Wear Course, and Appurtenances.
WHEREAS, it is proposed to assess the benefitted property for all or a portion of the cost of the improvement,
pursuant to Minnesota Statutes, Chapter 429,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HUTCHINSON, MINNESOTA.
THAT, the proposed improvement be referred to the Director of Engineering for study and that he is instructed
to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed
improvement is feasible and as to whether it should best be made as proposed or in connection with some other
improvement, and the estimated cost of the improvement as recommended
Adopted by the Council this 12th day of June, 1995.
•
City Administrator
40
Mayor
RESOLUTION NO. 10501
RESOLUTION RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT •
LETTING NO. 2
PROJECT NO. 96.02
l�'7 ffREA$, pursuant to a resolution of the Council adopted June 12, 1995, a report has been prepared by the
Director of Engineering, with reference to the improvement of Arch Street from 1000' East of Michigan Stree to the
Railroad Trade by construction of Storm Sewer, Grading, Gravel Base, Concrete Curb and Gutter, Bituminous Base
and Wear Course, and Appurtenances. Said report was received by the Council on June 12th, 1995.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HUTCHINSON, MINNESOTA:
1. The Council will consider the improvements of such streets in accordance with the reports and the assessment
of benefitted property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429,
at an estimated total cost of the improvement of $62,000.00.
2. A public hearing shall be held on such proposed improvements on the 27rh das of June, 1995, in the Council
Chambers of the Hutchinson City Center at 6:00 PM., and the Clerk shall give mailed and published notice of such
hearing and improvements as requ red by law.
Adopted by the Hutchinson City Council this 12th day of June, 1995.
Mayor
City Administrator
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DAVID B. ARNOLD
STEVEN A. ANDERSON
G. BARRY ANDERSON"
STEVEN S. HOGE
LAURA K. FRETLAND
DAVID A. BRUEGGEMANN
PAUL O. DOVE **
RICHARD G. McGEE
CATHRYN D. REHER
GINA M. BRANDT
BRETT D. ARNOLD
'ALSO no MITTCO IH rz.AS AND NEw TOR.
ARNOLD, ANDERSON & DOVE
PROFESSIONAL LIMITED LIABILITY PARTNERSHIP
ATTORNEYS AT LAW
101 PARK PLACE
HUTCHINSON, MINNESOTA 55350-2563
(612) 587- 75 75
FAX (612) 587 -4096
Mr. Gary D. Plotz
City Administrator
Hutchinson City Center
111 Hassan Street S.E.
Hutchinson, Mn. 55350
RESIDENT ATTORNEY
G. BARRY ANDERSON
June 9, 1995
Re: Solitra USA
Our File No. 3244 -95083
Dear Gary:
OF COUNSEL
RAYMOND C. LALLIER
JANE VAN VALKENSURG
SSBI CEDAR LAKE ROAD
MINNEAPOLIS, MINNESOTA 55416
(6121545 -9000
FAX IS 12) 545 -1793
501 SOUTH FOURTH STP.EET
PRINCETON, MINNESOTA 55371
(6121389-2214
FAX (612) 389 -5506
RECEIVED
'1,
CITY OF HUTCHINSON
I spoke with Bill Brody, the attorney representing the Daggett
Estate. I believe we have several minor matters to attend to.
First, Mr. Brody would like to receive a copy of the standard
assessment search provided by the City of Hutchinson reflecting
that the assessments on this property have been relieved. Please
send the assessment search to my attention and I will forward it to
him. It should reflect zero assessments.
Second, the Daggett family, after consulting with the law firm of
Fredrickson & Byron, would like an indemnity agreement fr_rom ±hP
City relative to any environmental claims associated with the
property, they should not also be donating potential liability. As
far as I know, the ground has never been anything other than
agricultural and the request for the indemnity agreement is I would
ask that this be placed on the City Council agenda for action at
the next regularly scheduled City Council meeting, so that delay
can be avoided.
Lastly, counsel for the Daggett family will need the legal
description for the property and there seems to be some confusion
about where the abstract for the property is. My recollection is
that Dick had spoken with Bud prior to his death about this issue
and perhaps he can shed some light on this question. At some
point, the abstract will be required any way. Perhaps Dick or
someone from his staff could track down the mystery of the missing
abstract.
CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION —L /♦
—CERTIFIED AS A REAL PROPERTY LAW SPECIALIST 81 THE MINNESOTA STATE BAR ASSOCIATION
Mr. Gary Plotz
June 9, 1995
Page 2
If you have any additional questions in connection with the
foregoing, please advise. Thank you. Best regards.
Very truly yours,
OLD, AN ERSON & DOVE, P.L.L.P.
,� e
G. Barr kndersbrf
GBA:lm
CC Dick Lennes
9
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ORDINANCE NO. 95• -152, 2ND SERIES
• PUBLICATION NO.
AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AUTHORIZING
THE BALE, DISPOSITION OR TRANSFER OF CERTAIN REAL ESTATE TO
HUTCHINSON COMMUNITY DEVELOPMENT CORPORATION 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 the
Hutchinson Community Development Corporation (HCDC), a Minnesota
non profit corporation, legally described as follows:
Lot Eight (8) , Block one (1) , First Addition in the Hutchinson
Industrial District, McLeod County, Minnesota.
Section 2. City Code Chapter 1 entitled "General Provisions
and Definitions Applicable to the Entire City Code Including
Penalty for Violation" and Section 2.99 entitled "Violation a
Misdemeanor" are hereby adopted in their entirety, by reference, as
though repeated verbatim herein.
Section 3. This ordinance shall take effect upon its adoption
• and publication.
Adopted by the City Council this _ day of June, 1995.
Attest:
Gary D. Plotz
City Administrator
Published in the Hutchinson Leader:
First reading: June 12, 1995
Second reading: June 27, 1995
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hutchinson
community
hospital
burns manor nursing home
1095 Highway 15 South • Hutchinson, MN 55350 • 612/234 -5000
An Equal opportunity Employer
June 2, 1995
The Honorable Mayor Marlin Torgerson and
Members of the City Council
Hutchinson City Center
111 Hassan St. S.
Hutchinson, MN 55350
REcaVED
JUN 1 21995
CITY OF HUTCHINSON
Dear Mayor Torgerson and City Council Members:
The board of directors of Hutchinson Community HospitaUBums Manor Nursing Home, as part of their regular
meeting on May 23, considered a request for purchase of Emergency Room cardiac monitors to add to our existing
oring system. The addition of these monitors will allow our Emergency Services
Critical Care Unit (CCU) monit
physicians to administer life - saving thrombolytic drugs to cardiac patients within minutes of their arrival at the
Emergency Room (ER), rather than needing to wait until these patients can be moved to the CCU for monitored drug
• administration. Other trauma patients will benefit, as well.
Because the monitors would be an addition to our existing system, the usual bidding process was not followed.
HCH/BMNH staff obtained a quotation of $55,000 from the manufacturer of our CCU monitors (SpaceLab) to assure
compatibility of the monitors and eliminate the need to purchase an entire replacement system for the CCU and ER.
We are pleased to relay that funding for the equipment has been acquired. Because the need for this equipment was
not apparent earlier and, therefore, not included in our capital equipment budget we took this request to the
Hutchinson Community Hospital Auxiliary at their May 10 meeting. In an overwhelming illustration of this group's
generosity, full funding for the equipment was approved by the Auxiliary.
The following reflects governing board action taken on May 23:
«x r 'tnrin¢ Enuinment >' The board members welcomed Dori Johnson, president of the Hutchinson
Community Hospital Auxiliary, and Dr. George Gordon, emergency medical director to the meeting. Dr.
Gordon presented a request to purchase monitoring equipment for the emergency room at a quoted cost of
approximately $55,000. Johnson relayed the Auxiliary's decision to donated funds for purchase of the
equipment. She noted that $37,000 was originally requested by Dr. Gordon to outfit one ER bay with the
monitors; however, after learning of the benefit to patients, the group offered to provide an additional $18,000
to outfit a second bay, as well.
`Board members thanked Johnson for the Auxiliary's donation and recognized the outstanding continued olun support
evident through their work. Management staff added their appreciation for the Auxiliary'
• of the organization.
/o -,A
Mayor Marlin Torgerson and
City Council Members
June 2, 1995
Page Two
"Following discussion:
"Motion was made by Myers, seconded by Black, to accept the $55,000 donation from the
Hutchinson Community Hospital Auxiliary and recommend to the City Council approval of
purchase of the monitoring equipment at a cost not to exceed $55,000. All were in favor.
Motion carried."
We, therefore, respectfully request City Council authority to purchase the ER monitors.
If I can answer further questions, please contact me.
Sincerely,
HUTCHINSON COMMUNITY HOSPITAL/
URNS MANOR NURSING HOME
r
Philip G. Graves
President
PGG:lh
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OPEN -HOLD COUNCIL REPORT Mon Jun 12 1995 11:05:35
1986 IMPRO.BDS
Page 1
• AM.NATIONAL BANK PAYING AGENT FEES $321.20
$321.20
1994 IMPRO CONST
JUUL CONTRACTING CO LETTING #3 PROJ #94 -03 $95,594.81
MID -MN HOT MIX INC PROJ94- 10/94 -12 ESTIMA $5,700.00
$101,294.81
1995 IMPRO CONST
BAUERLY BROS INC. LETTING #7 PROJ 95 -07 $134,430.32
WM MUELLER & SONS LETTING #2 PROD 95 -OS $93,729.14
$228,159.46
BURNS MANOR DS
AM.NATIONAL BANK MAINT FEES $282.85
$282.85
CENTRAL GARAGE
BRANDON TIRE CO
TIRES
$226.81
CARQUEST AUTO PARTS
DUAL TEMP SYSTEM
$633.27
CITY OF HUTCHINSON
JUNE MEDICAL
$432.09
•EARL ANDERSON ASSOC
CABLE
$99.33
FORTIS BENEFITS
JUNE LTD
$17.93
G & K SERVICES
CLOTHING & UNIFORMS
$51.40
GRAFIX SHOPPE
CUSTOM SQUAD CAR
$975.47
HUTCH COOP CENEX
MAY FUEL
$248.61
HUTCHINSON WHOLESALE
SUPPLIES
$77.69
JERABEK MACHINE SERV
MATERILAS
$320.72
KUSTOM SIGNALS INC
RADAR DASH
$62.40
L & P SUPPLY CO
CARE KIT
$5.42
MN MUTUAL LIFE
JUNE LIFE
$6.72
MOTOR VEHICLE
SALES TAX TITLE PLATES
$833.46
MTI DIST.CO
OIL FILTER
$150.89
OLSONS LOCKSMITH
REKEY NEW
$160.00
POSTAGE BY PHONE
MAY POSTAGE
$2.88
RAY ALLEN MANUFACTURING CO
K9 SYSTEM PAGER
$852.00
SCHMELING OIL CO
FLUID
$90.74
SCHRAMM IMPLEMENT
REPAIR & MAINTENANCE S
$194.92
SNAP ON TOOLS CORP
JAW CAP
$71.31
STREICHERS
BRITE BUMPER
$2,342.37
SUPERIOR FORD INC
F150 PICKUP
$12,507.00
TWO WAY COMM INC
CITY TRANSIT
$45.00
UNITED BLDG CENTERS
SHELF BRACKET, SHELVIN
$13.50
W.D. COOLING CLINIC
REPAIR AIR CONDI
$73.55
WIGEN CHEVROLET CO
SWITCH -BA
$10.76
$20,506.24
WENERAL FUND
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OPEN -HOLD COUNCIL REPORT Mon Jun 12 1995 11:05:35
Page 2
& B ELECTRIC
WIRE UNIT HEATER
$59.54
•A
ALLEN OFFICE PROD
6 CLIP BOARDS
$56.42
ALLIED MECH.SYSTEMS
URINAL VALVE
$73.82
ANDERSON'S DECORATING CENTER
1 GALLON PAINT
$26.64
APCO AFC INC.
FCC LICENSE SERVICE
$525.00
ARLT, JOHN
M.SOFTBALL OVERPAYMENT
$21.00
ARNOLD & MCDOWELL
MAY COMPENSATION
$4,164.00
AUTOMATION SUPPLY CO
TONER
$184.42
BACKEN, BILL
REFUND
$11.00
BADGE- A -MINIT
500 BADGE PARTS
$79.69
BARGEN INC
CRACK SEALANT
$6,418.12
BENGSTON, SHARPIE
REFUND
$11.00
BENNETT OFFICE SUP.
SUPPLIES
$76.57
BERNHAGEN ELECTRIC
LIGHT SOCKETS
$30.00
BERNICK & LIFSON
FRANCHISE SERVICE
$6,112.80
BEST WESTERN MAPLEWOOD INN
TRAVEL SCHOOL CONFEREN
$316.25
BROWNS GREENHOUSE
MARIGOLDS
$317.88
BUSINESSWARE SOLUTIONS
PRINTER REPAIR
$100.00
CAMERA SHOP
PROCESSING
$74.96
CARLSON, ROB
ADDL MILEAGE COST
$3.90
CARLSON, WAYNE
INSTALL CARPET
$75.00
CARQUEST AUTO PARTS
REPAIR & MAINTENANCE S
$64.86
CARR FLOWERS
MISCELLANEOUS
$69.90
CARTER, RON
REFUND
$60.00
CELLULAR 2000
APRIL CELLULAR
$50.01
CENTRAL GARAGE
6 MOS RENT
$65,655.50
LABS
CLEANERS
$697.34
•CENTURY
CHAMBER OF COMMERCE
BREAKFAST
$1,515.00
CITY OF HUTCHINSON
JUNE MEDICAL
$39,446.91
COAST TO COAST
SUPPLIES
$559.40
COMM TRANSPORTATION
ES HANGER LOANS
$700.00
COUNTRY KITCHEN
PRISONER MEALS
$12.25
CROW RIVER AREA QUALITY COUNCI
MAY SESSION
$4.00
CROW RIVER PRESS INC
BUSINESS CARD
$368.65
CROW RIVER VET CLINIC
K -9 FOOD
$162.35
CURTIS INDUSTRIES
BLACK WIRE TIE
$92.21
D & K CLEANERS
2 JACKETS CLEANED
$16.24
DARK REFRIGERATION
REPAIRD
$61.28
DANCER, LORI
REFUND
$10.00
DRESSEL, MONA
REFUND
$13.00
DUMMER, KRISTIE
REFUND
$10.00
EARL ANDERSON ASSOC
THINNER 5 GALLONS
$51.33
ELECTRO WATCHMAN
ANNUAL CHARGES
$435.37
EMBLEM ENTERPRISES
EMBROIDERED PATCHES
$1,432.69
FAMILY REXALL DRUG
PENS, BADGES, FOLDERS
$114.19
FARM & HOME DIST. CO
SUPPLIES
$120.26
FEED RITE CONTROLS
CHLORINE, SODA CAUSTIC
$955.51
FESTIVAL FOODS
SUPPLIES
$393.91
FICK, SHARON
REFUND
$10.00
FITZLOFF HARDWARE
BRUS, PRIMER
$219.78
FLAIL - MASTER
WEED BUTCHER II, BLADE
$14.60
FORMS & SYSTEMS
ADDRESS FORMS
$244.00
FORTIS BENEFITS
JUNE LTD
$1,361.15
OPEN -HOLD COUNCIL REPORT Mon Jun 12 1995 11:05:35
Page 3
G & K SERVICES
OTHER CONTRACTUAL
$748.00
G F NEMITZ SONS
BROWN PAINT
$28.70
•
GLENCOE UNIFORMS
GLOVE HOLDER
$139.52
GORDON, BRENDA
REFUND
$10.00
GRAY, JEAN
SCHOOL TRAVEL EXP
$566.66
GREAT PLAINS SUPPLY
ENTRY LOCK
$13.83
GRINA, LISA
RECORD NOTARY
$50.00
GUARDIAN PEST CTL
PEST CONTROL
$21.57
GUTHERY, TOM
,AY MOTORCYCLE LEASE
$79.59
HAMMOND- JOHNSON, MICHELLE
SCHOOL TRAVELEXP
$151.37
HAUGEN, BARB
SCHOOL TRAVEL EXP
$48.90
HCVN -TV
SOLTRA ANNOU
$18,326.04
HENRYS FOODS INC
SUPPLIES
$968.92
HILLYARD FLOOR CARE / HUTCHINSON
WORXWELL, LOOP TWISTER
$729.00
HOFF, RANDY
M.SOFTBALL OVERPAYMENT
$12.00
HUHN, LARRY
SCHOOL EXP
$75.00
HUTCH COMM HOSPITAL
BLOOD TESTS
$88.05
HUTCH CONVENTION &
COLLECTION FOR FEB
$5,479.04
HUTCH COOP CENEX
MOTOR FUELS & LUBRICAN
$4,223.46
HUTCH PLBG & HTG CO
CONTRACT REPAIR & MAIN
$107.88
HUTCHINSON JAYCEES
WATER CARNIVAL DONATIO
$1,000.00
HUTCHINSON LEADER
NOTICES
$885.93
HUTCHINSON TEL CO
JUNE PHONE
$5,852.89
HUTCHINSON UTILITIES
UTILITIES
$6,315.34
HUTCHINSON WHOLESALE
PARTS
$16.17
ICMA
ANNUAL DUES
$499.82
INDEP INFO SERVICES
NESTEGG
$80.00
JUUL CONTRACTING CO
MANHOLE COVER
$70.00
K MART
BATTERIES, DUCT TAPE
$22.19
KEMPFERT DESIGN
FOAM CORE BOARD, POSTE
$41.04
KERR TRANSPORTATION SERVICES
METRO TEST DRUG
$68.00
KOELLN, BRIAN
M:SOFTBALL OVERPAYMENT
$50.00
KREBS, TOM
REFUND
$29.99
L & P SUPPLY CO
RECOIL
$74.71
LAW ENFORCE EQUIP
UNIFORMS
$258.90
LEAGUE OF MN CITIES
LEAGUE OF MN CITIES TR
$458.30
LENNES, RICHARD
MAY COMP
$2,163.00
LEUNG, WILLIAM
INTERPRET SERVICES
$15.00
LUNDAHLS
61 DINNERS
$792.00
MANKATO MOBILE RADIO
SPECTRA VHF
$8,251.32
MARCO BUS.PRODUCTS
CRDIT
$473.86
MARKS TV
METAL DETECTOR REPAIR
$33.52
MCGARVEY COFFEE INC
COFFEE
$169.65
MEEKER SAND & GRAVEL
REPAIR & MAINTENANCE S
$320.71
METRO CONNECTIONS
LUNCHES
$32.00
MICROWAREHOUSE
HITACHI SUPERSCAN
$10.90
MIDWEST CABLEVISION
JUNE SERVICE
$4.46
MIKE'S MOBIL BAIT & TACKLE
CLOTHING & PERS.EQUIP
$80.97
MINNE- SEW -TA VAC
REG SERVICE
$34.50
MN ELEVATOR INC.
ELEVtor service
$62.95
MN MUTUAL LIFE
JUNE LIFE
$503.58
MN PLAYGROUND INC
BIKE RACK
$315.28
MN SPORTS FEDERATION
MISCELLANEOUS
$32.00
•
MUELLER, DAVE
OPERATING SUPPLIES
$460.31
OPEN -HOLD COUNCIL REPORT Mon Jun 12 1995 11:05:35
Page 4
MUELLER, LISA
CLOTHING & PERS.EQUIP
$60.00
•
MUN LIQUOR STORE
MVTL LABORATORIES
REMB FOR D BROTEN
WILLOW NIOBE
$197.78
$154.43
NICKLASSON ATHLETIC CO
PITCHING RUBBERS
$96.01
NO STATES SUPPLY INC
BOLTS, ETC
$39.46
NORTH STAR TURF INC
GEN TURF MIXTURE
$65.59
NORTHERN SAFETY CO
ZX PLUS CHARTREUSE
$62.73
OLSONS LOCKSMITH
60 FORD KEYS
$111.83
ONDRACEK, KRISTY M
SOCCER COACH
$50.00
ORDWAY MUSIC THEATRE
SHOW BOAT TICKETS SR C
$2,114.00
PANKAKE, GARY
REMB
$60.00
PETERSON BUS SERVICE
HANSKA
$535.00
PETZEL, RAQUEL
INTERPRET SERVICES
$15.00
PLOTZ, GARY D.
TRAVEL EXP
$49.00
PLOWMANS
TOW SERVICE CALL
$26.63
POLYTANK CORP
ORGANIZERS
$27.26
POPP ELECTRICAL INC
GARAGE DOOR SERVICE
$40.60
POSTAGE BY PHONE
MAY POSTAGE
$1,259.24
PRO MAINTENANCE
CLEANING
$3,155.36
QUADE ELECTRIC
YELLOW WIRE
$3,531.58
QUAST, GENISE
REFUND
$11.00
RECREONICS
PVC LATERALS LGTH
$551.75
RIBICH, NANCY
REFUND
$10.00
S M A HC
GEN SUPPORT CONTR
$100.00
SCHIEBEL, NATHAN
CONCESSIONS
$247.00
SCHUETTE, SCOTT
SCHOOL TRAVEL EXP
$182.59
SERVICEMASTER
CLEANING SERVICE
$288.56
SHAW, KAREN
COUNTRY DANCE
$90.00
SHOEN, ROBIN
TRAVEL SCHOOL EXP
$79.91
SHOPKO
MEMO BOOKS, VIDEOS
$166.40
SKAAR STUDIO, DAVID
DEPARTMENT PHOTOS
$370.00
SORENSEN FARM SUPPLY
REPAIR & MAINTENANCE S
$4.04
STANDARD PRINTING
STAPLERS, PINS, PUNCH,
$151.35
STAR TRIBUNE
RECREATIONPROFITGURESK
$123.50
STATE TREASURER
AIPORT LICENSE RENEWAL
$15.00
STREICHERS
HORIZONTAL SLIDE
$462.83
TRI CO WATER COND
20 BAGS SALT
$117.57
TWO WAY COMM INC
BEE CASE
$79.88
UNIFORMS UNLIMITED
UNIFORMS SHOES
$64.56
UNITED BLDG CENTERS
GALV BOX NAILS
$82.15
UNITED LABORATORIES
NEOFLECIION AEROSOL
$96.10
VALLEY VIEW ASSOCIATES
BOOSTER PUMP
$372.75
VICTORIAN INN
MISCELLANEOUS
$698.61
VIKING COCA COLA
MISC
$239.25
W. M. MONTGOMERY
PROF SERVICE
$70.00
WAGNER, CHERYL
REFUND
$16.00
WAL -MART
OPERATING SUPPLIES
$29.62
WALLY PIKAL
DANCE BAND FOR SR PROM
$125.00
WEBER, SCOTT
REFUND
$24.00
XEROX
METER USAGE
$155.00
XEROX CORP
METER USAGE
$155.00
$211,837.44
.NSURANCE
FUNDS
OPEN -HOLD COUNCIL REPORT Mon Jun 12 1995 11:05:35
Page 5
•AMERICAN HEART ASSC REG FEES $50.00
CREATIVE PROMOTIONS SHAPEUP CHAL $82.58
$132.58
LIBRARY FUND DS
AM.NATIONAL BANK PAYINGAGENT FEES $304.25
$304.25
LIQUOR STORE
AM.LINEN SUPPLY CO
SUPPLIES
$172.09
DEFERRED COMP.
ARANGO CIGAR CO
CIGAR PUR MAY
$593.22
GREAT WEST LIFE INS. CO.
BERNICKS PEPSI COLA
MISC DRINKS
$266.06
BUREAU OF ALCOHOL ETC
SPECIAL TAX RENEWAL
$250.00
DEFERRED COMP.
CDI OFFICE PRODUCTS LTD
SUPPLIES
$60.98
ICMA RETIREMENT TRUST
CITY OF HUTCHINSON
JUNE DENTAL
$35,654.18
CMI REFRIGERATION
ICE BAGS
$836.70
LIFE INSURANCE
COAST TO COAST
SUPPLIES
$13.38
PERA- D.C.P.
FESTIVAL FOODS
SUPPLIES
$17.58
FORTIS BENEFITS
JUNE LTD
$31.08
$155.00
HENRYS FOODS INC
MISC PUR
$1,424.55
ACCURED
HERMEL WHOLESALE
MISC SUPPLIES
$535.39
HUTCHINSON LEADER
ADV FOR LIQ STORE
$611.16
HUTCHINSON TEL CO
JUNE PHONE
$116.17
DEFERRED COMP.
HUTCHINSON UTILITIES
UTILITIES
$837.03
WADELL & REED
•K D U Z
ADV LIQHUTCH
$193.60
KARP RADIO
ADV FOR MAY
$24.00
$29,292.61
KKJR
ADV FOR LIQU HUTCH
$64.60
MMBA
ANNUAL MEMBERSHIP DUES
$425.00
MN MUTUAL LIFE
JUNE LIFE
$11.55
POSTAGE BY PHONE
MAY POSTAGE
$17.16
SPRENGLER TRUCKING
FREIGHT
$979.59
STANDARD PRINTING
CASSETTE
$102.11
VETERANS OF FOREIGN WARS
ADV BASEBALL TOURNMENT
$52.50
VIKING COCA COLA
MISC PUR MAY
$505.45
$43,795.13
PAYROLL FUND
AETNA VARIABLE LIFE ASS. CO.
ACCURED
DEFERRED COMP.
$655.00
GREAT WEST LIFE INS. CO.
ACCURED
DEFERRED COMP.
$100.00
H.R.L.A.P.R.
ACCURED
DEFERRED COMP.
$147.57
ICMA RETIREMENT TRUST
ACCURED
DEFERRED COMP.
$1,642.45
PERA LIFE INS CO.
ACCURED
LIFE INSURANCE
$136.50
PERA- D.C.P.
DUE TO PERA- D.C.P.
$52.02
PRUDENTIAL
ACCURED
DEFERRED COMP.
$155.00
PRUDENTIAL MUTUAL FUNDS
ACCURED
DEFERRED COMP.
$318.46
PUBLIC EMPLOYEES
DUE TO OTHER -PERA
$13,201.93
TEMPLETON INC
ACCURED
DEFERRED COMP.
$448.46
WADELL & REED
ACCURED
DEFERRED COMP.
$150.00
•
WITHHOLDING TAX ACCT
DUE TO MEDICARE
$29,292.61
$46,300.00
OPEN -HOLD COUNCIL REPORT Mon Jun 12 1995 11:05:35
Page 6
• PUBLIC SITES
LORENCE & ASSC APPRAISAL FEE $500.00
$500.00
RURAL F. D.
HUTCH COOP CENEX MOTOR FUELS & LUBRICAN $44.75
$44.75
WATER /SEWER FUND
AAGARD WEST
MAY PICKUP
$24,403.79
AG SYSTEMS
BLOTS
$1.45
AM.PAYMENT CENTERS
BOX SERVICE
$71.00
BRO -TEX INC.
SCRIM DISPENSER
$84.18
BUSINESSWARE SOLUTIONS
HP OMNIBOOK 4000C
$4,937.33
CARTER, RANDY
SAFETY BOOTS REMB
$60.00
CELLULAR 2000
MAY CELLULAR
$3.61
CITY OF HUTCHINSON
JUNE MEDICAL
$4,266.71
COAST TO COAST
SHIPPING
$298.18
CROW CHEMICAL CO
GALLON PH70 PRE
$70.82
CURTIN SCIENTIFIC CO
BOTTLE HDPE
$1,384.49
D.P.C.IND.INC
CHLORINE
$878.70
D2 SERVICES
BATTERY
$37.00
DEPT OF LABOR & INDUSTRY
RENEWAL FEE 67272
$10.00
•ELECTRO
WATCHMAN
ANNUAL CHARGES
$988.04
FADDEN PUMP CO.
FILTER, ELECTRODE
$72.09
FAMILY REXALL DRUG
ALBUMS, PAGES
$75.58
FARM & HOME DIST. CO
MULCHING BLADES
$59.37
FARMERS ELEVATOR ASSN
2 BU OASTS
$10.00
FEED RITE CONTROLS
FERROUS CHLORIDE
$406.14
FERCHE MILLWORK INC
SCRAP WOOD
$1,500.00
FESTIVAL FOODS
SUPPLIES
$27.44
FORTIS BENEFITS
JUNE LTD
$186.91
G & K SERVICES
UNIFORMS
$243.25
HACH COMPANY
LAB SUPPLIES
$188.42
HANSON, SCOTT
SAFETY BOOTS
$49.99
HENRY & ASSOCIATES
GASKET
$54.96
HILLYARD FLOOR CARE / HUTCHINSON
55 GAL 2 MIL
$57.93
HUTCH COOP CENEX
MAY FUEL
$1,344.35
HUTCHINSON TEL CO
JUNE PHONE
$554.71
HUTCHINSON UTILITIES
POSTAGE
$18,644.24
HUTCHINSON WHOLESALE
BELTS
$193.94
INFRATECH
MARKING PAINT
$425.52
L & P SUPPLY CO
OIL FILTER
$79.04
LAKEVILLE MOTOR EXPRESS
IRON PIPES
$36.66
LEAGUE OF MN CITIES
SEWER CLAIM
$5,000.00
M & G SALES
UHF ANTENNA
$28.68
MARCO BUS.PRODUCTS
WALLETS
$19.04
MCNELLY GROUP
LEASE
$6,025.00
•
MERKINS, KYLE
MESSNER, KEN
BOOT REMB
REM
$39.99
$40.00
OPEN -HOLD COUNCIL REPORT Mon Jun 12 1995 11:05:35
Page 7
$745,493.43
J
•
MN DEPT OF HEALTH
2ND QUARTER CONN FEES
_______
$4,855.00
____ _________________ __
•MN
MUTUAL LIFE
MVTL LABORATORIES
JUNE LIFE
CYANIDE AMENABLE
$69.30
$294.00
NCL
PLASTIC AMPL
$476.99
NORTHERN WATER WORKS SUPPLY
REHAB PIPELINE
$4,453.32
POSTAGE BY PHONE
MAY POSTAGE
$135.72
QUADE ELECTRIC
REPAIR CONTROL CIRCUIT
$63.50
SANIFILL INC
REFUSE - LANDFILL CHAR
$6,202.22
SERCO LABORATORIES
PH MEASURE IN WATER
$939.00
SORENSEN FARM SUPPLY
REPAIR & MAINTENANCE S
$426.75
STATE TREASURER
CERTIFICATION
$15.00
TREASURY DEPT Q240
VIDEO FOR PERFECT OFFI
$297.43
TRI CO WATER COND
WATER BOTTLES
$14.70
TRI -STATE
CUTTER
$374.85
UNITED BLDG CENTERS
BRWN WOODTITE
$31.63
VIKING SAFETY PRODUCTS
LIME MN DOT VEST
$151.99
VWR SCIENTIFIC INC
OPERATING SUPPLIES
$108.93
WAL -MART
SLIDE TRAY
$10.47
WARD, DAN
STEEL TOE BOOTS REMB
$49.99
WINTER, LAWRENCE
CONNECTORS
$185.38
$92,014.72
$745,493.43
J
•
m
IMMEDIATE PAY COUNCIL REPORT Mon Jun 12 1995 11:05:10 Page 1
---------------
GENERAL FUND
ALL SEASONS 36 TREES $5,100.27
BENNETT OFFICE SUP.
SERVICE CONTRACT
$126.00
$6,316.15
BIG BEAR
BULK
$64.36
CHAMPLAIN PLANNING PRESS
8 SUBSCRIPTIONS
$67.00
LIQ PUR MAY
COUNTY TREASURER
STATE DEED TAX- COWGER
$1.65
FRIENDLY BEVERAGE CO
DEPT NATURAL RESOURCES
DNR REG FEES
$2,931.00
JACOB WETTERLING FOUNDATION
PROG FEES SAFETY CAMP
$228.00
KERR TRANSPORTATION SERVICES
DRUG TEST
$34.00
$9,680.35
STANDARD PRINTING
PAPER
$237.96
$3,850.75
US POSTAL SERVICE
NEWSLETTER POSTAGE
$276.50
$9,607.93
$9,066.74
CASE DEPOSITS
LIQUOR STORE
CITY OF HUTCHINSON
LOTTERY SALES
$6,316.15
COLLINS BROTHERS INC
SUPPLIES
$162.77
ED PHILLIPS & SONS CO.
LIQ PUR MAY
$2,812.31
FRIENDLY BEVERAGE CO
CASE DEP
$2,084.45
FRONTEER DIRECTORY CO
CROW RIVER DIR ADV
$1,173.00
GRIGGS COOPER & CO
LIQ PUR MAY
$9,680.35
INSURANCE PLANNERS
LIQ LIAB INSU CARE
$3,850.75
JOHNSON BROTHERS LIQUOR CO.
WINE PUR MAY
$9,607.93
JORDON BEVERAGE INC.
CASE DEPOSITS
$1,052.70
LENNEMAN BEVERAGE DIST. INC
CASE DEPOSITS
$2,570.45
LOCHER BROS INC
CASE DEPOSITS
$18,293.80
•PAUSTIS & SONS
BEER PUR MAY
$459.00
QUALITY WINE & SPIRITS CO.
CREDIT
$1,263.65
TRAVELERS DIRECTORY SERVICE
ADD'L OWED
$23.40
TRI CO WATER COND
COOLER RENTAL
$64.59
TRIPLE G DISTRIBUTING INC
MIX DRINKS
$29,181.50
$88,796.80
PAYROLL FUND
AETNA VARIABLE LIFE ASS. CO.
EMPLOYEE CONTRIB
5 -20
$655.00
AMERICAN FAMILY INS CO.
EMPLOYEE CONTRIB
5 -20
$89.16
GREAT WEST LIFE INS. CO.
EMPLOYEE CONTRIB
5 -20
$100.00
H.R.L.A.P.R.
EMPLOYEE CONTRIB
5 -20
$147.57
ICMA RETIREMENT TRUST
EMPLOYEE CONTRIB
5 -20
$1,757.45
PERA LIFE INS CO.
EMPLOYEE CONTRIB
5 -20
$124.50
PERA - D.C.P.
EMPLOYEE CONTRIB
5 -20
$52.02
PRUDENTIAL
EMPLOYEE CONTRIB
5 -20
$155.00
PRUDENTIAL MUTUAL FUNDS
EMPLOYEE CONTRIB
5 -20
$318.46
PUBLIC EMPLOYEES
EMPLOYEE CONTRIB
5 -20
$13,245.11
TEMPLETON INC
EMPLOYEE CONTRIB
5 -20
$448.46
WADELL & REED
EMPLOYEE CONTRIS
5 -20
$150.00
WITHHOLDING TAX ACCT
EMPLOYEE CONTRIB
5 -20
$28,877.63
$46,120.36
WATER /SEWER FUND
• MPCA REG- R.DEVRIES $80.00
IMMEDIATE PAY COUNCIL REPORT Mon Jun 12 1995 11:05:10
WIRE TRANSFER
Page 2
$80.00
$144,063.90
GO WASTEWATER TREATMENT BONDS
AMERICAN BANK INTEREST 156,400.00
AMERICAN BANK PRINCIPAL 350,000.00
PAYROLL FUND
MN DEPT OF REVENUE WITHHOLDING TAXES 5761.81
L J
l �
• EMBER REICHGOTT JUNGE
ASSISTANT MAJORITY LEADER
Senator 46th District
Room 205 State Capitol
75 Constitution Avenue
St- Paul, MN 55155 -1606
Phone: 296 -2889
and
7701 48th Avenue North
New Hope, Minnesota 55428
June 5, 1995
Mayor Marlin Torgerson
City of Hutchinson
111 Hassan Street S.E.
Hutchinson, MN 55350 -2522
Dear Mayor Torgerson:
FOR YOUR INFORMATION
Senate
State of Minnesota
DECEIVED
UN 7 1995
CITY OF HUTCHINSON
Thank you for contacting me at various times during the 1995
legislative session regarding your support for the Hutchinson
sales tax. I appreciated hearing from you.
As a member of the House - Senate conference committee on the
• Omnibus Tax Bill, I did support the Hutchinson sales tax and
discussed the initiative with my Senate colleagues on several
occasions. However, there were no other votes for the sales tax
on the Senate side. They indicated that the sales tax proceeds
were dedicated for uses that were too broad as compared to
previous uses approved by the Senate. I was unable to persuade
my colleagues on this issue, and eventually, the House acceded to
the Senate position.
I am sorry that the sales tax provision was not enacted into law.
You may want to talk further with Sen. Doug Johnson, Chair of the
Senate Tax Committee, about how to structure this initiative
should you pursue it again in 1996.
Best wishes.
Sin
��L
Ember Reichgott Junge
Assistant Majority Leader
ERJ:ms
cc: Sen. Steve Dille
• COMMITTEES: Vice Chair, Ethics & Campaign Reform • Vice Chair, Rules & Administration
Taxes & Tax Laws Education • Education Funding Division • Judiciary • Chair, Special Subcommittee
on Ethical Conduct Legislative Audit Commission • Legislative Commission on Planning & Fiscal Policy
Re. fed ny . Legislative Coordinating Commission
20% w,r-
o .e, ru,e, SERVING • Crystal • New Hope • Robbinsdale • Brooklyn Center • Golden Valley
.Aelpo W
TO: Mayor and Council
FROM: Brad Emans, Fire Chief
May, 1995
The fire department responded to 18 calls in May.
Breakdown of the calls:
• 1 - Rural Residential
2 - Rural Haz-mat Incidents
3 - Medicals
3 - 10 -52 (Accident with injury)
2 - City Residential
7 - City Commercial /Industrial
• SCBA Check
• Auto Extrication (4 cars)
• Hose Testing
• Car Fires
• DNR Wildland Fires
•
HUTCHINSON
FIRE DEPARTMENT
205 Third Avenue South East
HUTCH IN SON, MINN ESOTA 55350
STATE OF /�
FA DEPARTMENT OF NATURAL
NICHOLS OFFICE CENTER, 9180, 410 JACKSON ST.,
PHONE NO. (507) 389 -6713 '
May 15, 1995
Brad Emons, Chief
Hutchinson Fire Department
111 Hassan Street SE
Hutchinson, MN 55350 -2522
Dear Brad:
RESOURCES
MANKATO, NN 56001
FILE NO.
Thank for your help at the Hutchinson Regional Arbor Day
Celebration. The men you provided were very helpful and
great to work with, and a fine example of how the fire
service can respond to help out another agency.
We really appreciate that. Please thank Casey, the water
tender driver, and the grass rig driver for me. I think the
850 fourth graders got a good fire prevention and fire
awareness lesson.
Very truly yours,
k10 0-n c�( awl t
D8TL _Ame_11
Assistant Regional
mek
Forester
AN EQUAL OPPORTUNITY EMPLOYER
0
0
HUTCHINSON FIRE DEPARTMENT MINUTES
REGULAR MEETING
Monday, May 1, 1998
0 The meeting opened at 8:05 P.M.
The minutes were read and approved.
COMMITTEE'S
Uniforms - Rob Carlson reported that everyone had been given two 1st responder patches. Rob
and the uniform committee will determine were there are to be placed on the uniforms.
Rural Tanker - Tom Pessek announced that the committee has a couple of options to present to
the Townboards for approval. A meeting date will be made soon.
BILLS
City, Fire Marshall and Rural Account
None
General Account
None
RUNS
413
VFW
4/16
3M
413
Prince of Peace
4/18
3M
4/4
Luthens - Barn
4/17
Medical
4/4
Patterson - F/A
4/17
Medical
4/4
Rescue - Rural
4/18
Rescue - City
4/5
St. John's Parsonage
4/20
Medical
4/8
Medical
4/23
Roth - Car
419
Medical
4/25
Robinson - Grass
4/10
3M
413
SCBA's
4/11
Greencastle Apts.
4/3
Drill / Meeting
4112
Goebels
4110
Drill
4/14
Rescue - Rural
4/17
Drill
4/15
Medical
MMS to approve the runs as read. Motion passed.
COMMUNICATION'S
None
NEW BUSINESS
Jeff Neis announced a mass disaster drill will be rescheduled in August. Silver Lake vAll host a
tornado /mass casualty drill on June 1 Q 8:00 P.M. See signup sheet for trucks to take.
Brent Reiner asked about Scuba tank filling. Steve Schramm said it world cost abort $500 to
set up to fill tanks.
Steve Schramm stated that the key for the garbage container is in the control room.
Randy Redman talked about Stale Fire School and the Regional Sectional fire school July 22 at
Litchfield.
Chief Emans went over the Skywam procedures. Put the copies of the procedure in your SOP
books.
Chief Emans thanked Casey Stotts for the nice job on the dance. Applause followed.
Chief Emans also talked about discussions with City Engineer, Jon Rodeberg about traffic
controls on 3rd & Main and Adams & 3rd- No action at this time.
Chief Emans also talked about the new alarms being installed in the city.
The meeting adjourned at 8:50 p -m.
Respectfully submitted by,
Jim Brodd
Secretary
f•
0
HUTCHINSON FIRE DEPARTMENT MINUTES
OFFICER'S MEETING
Monday, May 8, 1995
The meeting opened at 8:55 p.m.
Jim P. talked about the upcoming Silver Lake drill on June 1st. There was discussion on %bich
tricks to take.
Tom P. talked about the tanker. The townboard meeting will be scheduled for late June and will
be presented to the Department at the June business meeting.
Casey S. talked about the policy for the residents of the High Rises and Elderly Housing and that
he has instructed them to stay in their rooms during alarms and that the firefighters would escort
them out if needed. Casey S. also stated that tours for the Village Coop, Prince of Peace, and
Augusta Homes was being set-up-
Duane H. that the Dept. of Health did a site inspection for the list responder training certification.
Steve S. stated that the Hurst Tod rep. will check on our unit this week for the power loss
problem.
Steve S. talked about the Skywam policy. The priority if only three positions can be manned will
be Heatwde, Co. #14, and Belle Lake. You can use 2338 and the Fire Marshall's car. The other
three locations will be you own vehicles. Policy will be to go out only between the hours of 7:00
a.m. and 10:00 p.m. This will be strictly voluntary for responding.
Randy R. stated that accountability will be discussed at the Chiefs meeting on Wednesday the
10th at Silver Lake. Randy also mentioned that we have received another full face mask from
3M and that the extra cartridges are In the air room.
Meeting adjourned at 9:30 p.m.
Respectfully submitted by,
Jim Brodd
Secretary
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"`L
• LIGHT TRAFFIC TASK FORCE
MINUTES
Monday, April 10, 1995
6:30 p.m.
Members present: Leslie Smith, Lucille Smith, Ed Dodng, Mary Ann Kasich, Dolf Moon,
John Rodeberg, Rick Larson, Brian Bonte, John Adt and Dave
Mueller
Guest: Ted Liepold
A) Education - Dave Mueller reported on the program he and Officer Scott
Schutte are presenting at the Elementary school teaching bike safety and
promoting the Bike Bonanza. He stated 750 children will be reached at Park
Elementary and he will be going to St. Anastasia School and the 6th Grade
at the Middle School.
B) Walking - Rick Larson stated the VolksSports group would like to have a
• booth at the Bike Bonanza and the State President of the organization may
be in attendance.
C) Running - No reports
D) Biking - Brian Bonte reported on the first bike club meeting on March 28th
which included 14 members. He stated the club will be open to all ages and
types of riders. The meetings are held at the A -1 Bike Shop.
A. BIKE BONANZA
Dolf Moon stated Dave Mueller is heading the group in charge of the event
which will be held May 6th, 10:00 a.m. - 1:00 p.m. Ted Liepold is also
involved in the event. Dave stated Cashwise and Festival Foods have
donated food for the event and he has solicited donations from business for
prizes to be given that day. The key will be participation. Dave stated there
is a need for many volunteers to help make the day a success. Some of the
actives will be a helmet give away, bicycle safety inspection, obstacle course
for safe riding, lunch, exhibits, drawing for bicycles, etc. Promotion is the key
. to the success.
HUTCHINSON LIGHT TRAFFIC TASK FORCE
MINUTES - APRIL 10, 1995
Discussion followed on organizations that could possibly be asked to help at
the Bike Bonanza.
B. B -BOP DAY - MAY 18TH
Mary Ann handed out packets with information on the B -Bop day event. She
stated with the Bike Bonanza planning in full gear this event would possibly
not be promoted as much as she would like. Dolf Moon commented that the
City of Hutchinson employees wellness committee will be promoting the day
in conjunction with the Shape Up Challenge event for city employees.
C. TABULATE SURVEYS
Several members began tabulating the 1000 surveys which were returned.
None
IV OTHER 0
The next meeting will be Monday, May 8th, at 6:30 p.m.
2 •
SLIGHT TRAFFIC TASK FORCE
MINUTES
Monday, May 8, 1995
6:30 p.m.
Members present: Leslie Smith, Lucille Smith, Ed Doring, Mary Ann Kasich, Doff Moon,
John Rodeberg, Rick Larson, Al Koglin, Will Mangum, Linda Madison,
Brenda Ewing and Dave Mueller
A) Education - No report
B) Walking - Rick Larson commented on the display booth at the Bike Bonanza
on May 6th. He stated the State Walking President and Presidents from
Mankato and Twin Cities Clubs all attended Hutchinson's event and were
very impressed with the turnout and the behavior. Rick commented on the
upcoming Tri -Club picnic to be held in Hutchinson on August 12th. This is a
one day event and the task force is invited on the guided walk.
• C) Running - Will Mangum commented on the new runners club which met at
the Library prior to the Light Traffic Task Force meeting. There were 6
members present with more possible names for the club from Glencoe as
well as Hutchinson. They discussed club names, recruiting members,
sponsorship, and the organization.
D) Biking - No report
A. RECAP OF "BIKE BONANZA" MAY 6TH - DAVE MUELLER
Dave Mueller commented on the success of the event in which over 700
participants took part. He stated a suggestion for next year would be to
incorporate a separate roller blade section to teach safety on roller blades.
A video was made of the event and there was discussion on the use of the
video possibly on Cable T.V.
B. B -BOP DAY - MAY 18TH
Mary Ann stated the task force could possibly make more of a push next
year. Doff Moon stated the city employees will be promoting the event and
the Heart at Work Committee has the packet of information.
HUTCHINSON LIGHT TRAFFIC TASK FORCE
MINUTES - APRIL 10, 1995 •
C. SURVEY RESULTS
Dolf handed out the survey results and commented on the responses. He
stated Lee Brady will get these results and a presentation will be made to the
City Council with charts and graphs. There will be a follow -up in the
Hutchinson Leader. The comments will be tabulated at a later date.
A) DISCUSSION OF CO -CHAIR POSITION OR NEW CHAIR POSITION
Mary Ann commented on the fact she has been the chairperson for over a
year and asked the committee their wishes regarding the position. After
discussion, Ed Doring made a motion to set the term as a 3 year position
with Mary Ann Kasich completing her term January 1, 1997, and Rick Larson
will serve as vice chair assuming the chairmanship January of 1997.
Seconded by Al Koglin the motion carried unanimously.
IV OTHER •
Al Koglin explained there is a county wide trail committee being formed which will
consist of one person from each of the 5 commission districts. He stated the
committee will work on a county map designating road for bike /pedestrian paths.
The meeting will be in the next 30 days.
The City Council will also act on the plan before the County acts on it. Don
Winkler,MnDot, will attend the first meeting.
u ► reysTiw
The next meeting will be Monday, June 5th, at 6:30 p.m., Lee Brady and Bob Works
will possibly attend to discuss the survey. Dave Mueller will show the video and
photographs from the Bike Bonanza.
2 0
LIGHT TRAFFIC TASK FORCE
MINUTES
Monday, June 5, 1995
6:30 p.m.
Members present: Leslie Smith, Lucille Smith, Ed Doring, Dolf Moon, John Rodeberg,
Rick Larson, Brenda Ewing, Rick Kjonaas, Brian Bonte, John Ark and
Ron Mortenson, MnDot
A) Education - No report
B) Walking - Rick Larson commented on the informational meeting held last
week. He stated another meeting in planned for next week. Rick explained
he now has the packet to form a club here. There is a video available on
VolkSports which Rids will bring to the meeting in July. A Tri Club picnic and
activity is being planned for August 12th to be held in Hutchinson.
C) Running - No Report
D) Biking - Brian Bonte reported as meeting was held before the Bike Bonanza
and there were a number of people helping at the event. He stated meetings
are held at the Bike Shop. Tuesdays and Thursdays are 20 mile road biking
events. Wednesdays will be mountain biking at the land fill and Saturdays
the bike club will try a family biking event of 10 miles around Hutchinson.
E) Willmar meeting report - John Rodeberg reported on the meeting held in
Willmar. He stated the State bike plan was presented at that meeting. John
stated the Luce Line trail may be completed this year. The Bluff Street bridge
will be held back to next year. John has a request for proposal ready for a
$75,000 grant from MnDot.
Rick Kjonaas commented on the pave shoulder on County Rd. 12 to be
completed in July. Ron Mortenson, MnDot, explained that the design
standards are being changed for the paving of shoulders. There was
discussion on the wide shoulders being used as vehicle passing lanes
instead of the intended bike lanes.
John commented on the meeting with OSM representatives to review the site
and plans for the Luce Line Trail. Discussion followed on the interest by
Silver Lake residents to complete the trail to that community. Enhancement
funds for the project must be initiated by the County, DNR or a City over
5,000 population.
HUTCHINSON LIGHT TRAFFIC TASK FORCE
MINUTES - JUNE 5, 1995
A. VIDEO OF "BIKE BONANZA" MAY 6TH - DOLF MOON
Doff showed portions of the video taped at the Bike Bonanza event which
was well attended.
B. REVIEW OF SURVEY
Dolf Moon commented on the presentation by the Light Traffic Task Force
at the June 12th, City Council meeting. He showed the transparencies and
charts which will be presented to the council.
A. DISCUSSION OF BROCHURES AND POSTERS
Doff stated educational money for brochures and posters may be available
to the task force. The present account was spent on the surveys. Doff stated
Mr. Bob Works is working on obtaining additional funding for educational
brochures.
�
A. The helmets were not in on time and the orders were not all correct. Doff
stated all vendors are behind. The problem is being resolved.
B. Doff commented on the conference call held on May 22nd with people from
Finland and Washington D.C. The next conference call will be held on
August 2nd at 9:00 a.m.
fY�Ii�LI��rI.CHH_
The next meeting will be Monday, July 10, 1995, at 6:30 p.m.
2 0
Administrative Office
n M. Houlahan, Director PILiIBMY oneedand
Fifth street sw
O. Box 327 SYSTEM
Box
Willmar, Minnesota 56201 -0327
Phone: (612) 235 -6106 Fax: (612) 235 -3169 wilmarpi@forgus.cfa.org
PIONEERLAND LIBRARY SYSTEM BOARD MEETING
May 18, 1995
Meeting was called to order at 7:30 p.m. at Chippewa County Library
in Montevideo.
Joel Egge gave another short explanation of plans to remodel and
renovate the building next door for PLS Admin /Service Center.
New board members were introduced.
Canfield /Griffin moved approval of minutes.
Rudningen /Bohm moved approval of April 1995 financial reports.
Motion carried. 1996 budget draft was distributed.
Rudningen /Sanders moved approval of 1994 audit. Motion carried.
Personnel Committee report was given by Schoener. Canfield/Rude
moved approval of revised job descriptions and 1996 pay ranges.
Motion carried, two opposed. Canfield /Rude moved approval of
implementation plan for personnel recommendations. Motion carried.
New educational requirements will apply to newly hired employees.
Employees currently on job will be given opportunity to get the
skills and educational opportunities they may need.
Approval of flexible benefits plan was tabled until more
information can be obtained.
Rudningen moved approval of payment of 25% of accrued unused sick
leave to those employees no longer earning sick leave. Motion
carried.
System Study Committee report given by Alsop. Brunner moved
approval of FY 1996 regional library basic system support grant.
Motion carried. Brunner moved approval of PLS Board appointments to
SAMMIE governing board. Notion carried.
Policy Committee report was given by Alsop. Committee is working on
revising PLS bylaws, drafting amendments to agreement, and new
contract with Grant County, South Dakota.
Report of director and assistant director was summarized and
discussed.
Next meeting will be Thursday, June 15, 1995, 7:30 p.m., Kandiyohi
County Highway Department, Willmar.
Dorothv Tebben
Secretary
Fawce
Fy FOR YOUR INF_ORMATTOK
ing & Associates, Ltd.
820 North Sibley CERTIFIED PUBLIC ACCOUNTANTS
Litchfield, Minnesota 55355 Principals: Cedl R. Fawcett, James A. Young, Paul A. Harvego
Telephone: (612) 6937975
i
f
•
I
ACCOUNTANTS' REVIEW REPORT
To the Board of Advisors
Hutchinson Area Convention and Visitors Bureau
101 Main Street So.
Hutchinson, Minnesota 55350
Telephone: (612) 5874747
We have reviewed the acco!npryin8 statement of financial position of Hutchinson Area Convention and
Visitors Bureau (CVB) (a division of the Hutchinson Area Chamber of Commerce (RACC), a non -profit
corporation) as of December 31, 1994 and 1993, and the related statements of activities and cash flows for
the years then ended, in accordance with Statements on Srmrdrads for Accounang and Review Services issued
by the American Institute of Certified Public Accountants. All information included in these financial
statements is the representation of the management of CVB.
A review consists principally of inquiries of CVB personnel and analytical procedures applied to financial
data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards,
the objective of which is the expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be made to the
ples
accompanying financial statements in order for them to be in conformity with generally accepted accounting
princi.
Our review was made for the purpose of expressing limited assurance that there are no material modifications
that should be made to the financial statements in order for them to be in conformity with generally accepted
accounting principles. The information included in the accompanying Schedules 1 -3 is presented only for
supplementary analysis purposes. Such information has been subjected to the inquiry and analytical
procedures applied in the review of the basic financial statements, and we are not aware of any material
modifications that should be made thereto.
FAWCETT, YO G ASSOCIATES, LTD.
Certified Public Accountants
Hutchinson, Minnesota
April 19, 1995
M
MEMBERS OF: MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AND AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
HUTCHINSON AREA CONVENTION AND VISITORS BUREAU
STATEMENT OF FINANCIAL POSITION
December 31, 1994 and 1993
ASSETS
Current Assets
Cash
Receivables
City lodging tax
Advertising
Total Current Assets
Pro eeM and Equipment
Equipment
Less accumulated depreciation
Net Property and Equipment
T TOTAL ASSETS
LIABILITIES AND NET ASSETS
Liabilities
Accounts payable
Net Assets
Unrestricted
TOTAL LIABILITIES AND NET ASSETS
See Accountants' Review Report.
See accompanying Notes to the Financial Statements.
-3-
Exhibit A
1994 1993
$ 18,827 $ 13,863
11562 3,112
330 0
$ 20,719 $ 16,975
S 2,776 $ 2,776
(1,477) (976)
S 1,299 S 1,800
22 018 18 775
S 0 $ 918
22,018 17,857
22 018 S 18.775
Ewmm
General Operating
Managtaorm fee
Board expense
Legal and amwming
Office expenses
Total General Opwiag
Visitor Marketing
Travel directory
Event brochures
Billboard
Media dvvtiring
Total Vaitor Marketing
Group Markd4
Trade shows
Welcome matcialr
Coupon protnouon
Tour brochures
Muoellareous
Total Group Marketing
Co®tmrty Development
MultiCommuoi y Development
Ca®unny Eduratwn
Business appreciation
Taal Community Development
Relered Associations
Aso dim dues
Fair booth
Total Related Associations
' Conference and Travel
Seminars and oorfceaces
' Total Expenses
Increase (Decrease) in Net Aseu
Net Assets, Beginning of Year
NET ASSETS, END OF YEAR
See Amaunamr' Revsew Report.
See accompanying Notes to the Financial Statement.
4-
$ 8,200
S 6,380
f 6,380
Ednibit B
500
STATEMENT OF ACTIVITIES • BUDGET AND ACTUAL
139
750
For The Year Eroded Deounber 31, 1994
750
2,500
With Comparative Actual Atmmh For The Year Ended Deeamber 31,
1993
1994
1993
Revenue
Budget
Actual
Actin •
City lodging tax
S 24,000
S 22,130
S 23,150
Entered
600
243
216
State Fort
1,800
3,082
Coupon packet
2,000
1,540
2,540
Mircellaaccws
1100
45
210
Total Revenues
f 27.800
; 23958
$ 26.658
Ewmm
General Operating
Managtaorm fee
Board expense
Legal and amwming
Office expenses
Total General Opwiag
Visitor Marketing
Travel directory
Event brochures
Billboard
Media dvvtiring
Total Vaitor Marketing
Group Markd4
Trade shows
Welcome matcialr
Coupon protnouon
Tour brochures
Muoellareous
Total Group Marketing
Co®tmrty Development
MultiCommuoi y Development
Ca®unny Eduratwn
Business appreciation
Taal Community Development
Relered Associations
Aso dim dues
Fair booth
Total Related Associations
' Conference and Travel
Seminars and oorfceaces
' Total Expenses
Increase (Decrease) in Net Aseu
Net Assets, Beginning of Year
NET ASSETS, END OF YEAR
See Amaunamr' Revsew Report.
See accompanying Notes to the Financial Statement.
4-
$ 8,200
S 6,380
f 6,380
500
408
139
750
750
750
2,500
1,461
1,833
501
501
S 11,950
f 9,500
; 9.603
S 1,200
S 865
600
925
S 4,934
1,800
1,500
1,500
7,000
2,540
7,926
S 10.600
$ 5,830
S 14,360
S 1,025
S 682
S 079
500
267
2,073
1,490
•
500
400
85
77
$ 2,725
f 2,524
S 3,525
S 500
500
S 894
250
172
1,250
S 1,066
; 0
S 100
S 260
f 260
575
ISO
160
$ 675
S 410
S 420
S 600
; 467
S 343
S 27,800
S 19.797
S 28,251
S 0
S 4,161
S (1,593)
17,857
19.470
S 21,018
•
CITY OF HUTCHINSON
LIQUOR STORE COMPARISON
MAY 1994
MAY
1994
LIQUOR
BEER
WINE
MISC.
TOTAL
TOTAL
BY WEEK
2
1,098
1,608
309
148
3,163
TOTAL
3
1,502
1,468
249
135
3,354
1
4
1,063
2,122
229
187
3,601
2
5
1,646
2,506
441
263
4,856
3
6
2,608
4,817
736
271
8,432
4
7
2,636
5,657
1,146
378
9,817
5
2,582
6,331
821
324
10,038
33,223
9
1,308
1,714
263
130
3,415
10
1,006
2,205
296
160
3,667
8
11
1,074
2,365
394
126
3,959
9
12
1,958
3,712
519
219
6,408
10
13
2,776
6,418
825
383
10,402
11
14
2,870
5.130
1,057
304
9,361
12
3,154
6,921
1,062
420
11,557
37,212
16
838
1,743
207
104
2,892
17
960
2,354
292
93
3,699
15
18
2,057
2,625
344
178
5,204
16
19
1,772
4,194
561
283
6,810
17
20
2,640
6,564
868
425
10,497
18
21
2,483
5,763
840
540
9,626
19
2,917
6,752
1,083
395
11,147
38,728
23
1,052
2,370
294
217
3,933
24
970
2,198
307
202
3,677
22
25
1,696
2,426
515
169
4,806
23
26
2,172
3,901
841
265
7,179
24
27
4,108
8,269
1,080
546
14,003
25
28
3,791
9,275
1,297
857
15,220
26
5,017
8,995
1,217
608
15,837
48,818
30
323
844
87
101
1.355
31
1,255
2,218
363
230
4,066
29
545
1,761
223
233
2,762
5,421
TOTAL
47,662
94,466
14,360
6,914
163,402
93 TOTAL
44,311
82,534
13,751
5.883
146,479
% OF SALE
29
58
9
4
12,737
100
SALES INC
OR DEC
16.324
16,923
12
%
i 0
CITY OF HUTCHINSON
LIQUOR STORE COMPARISON
MAY
1995
MAY
TOTAL
1995 LIQUOR
BEER
WINE
MISC.
TOTAL
BY WEEK
1
1,175
1,929
381
120
3,605
2
1,393
2,299
283
201
4,176
3
1,273
2,212
395
162
4,042
4
1,572
3,270
454
182
5,478
5
2,582
6,331
821
324
10,038
6
2,773
5,508
1,103
432
9,816
37,155
8
1,545
1,840
317
134
3.836
9
1,439
1,833
369
138
3,779
10
1,285
2,288
449
190
4,212
11
1,703
3,972
432
324
6,431
12
3,154
6,921
1,062
420
11,557
13
3,195
4,991
1,060
486
9,732
39,547
15
1,184
2,139
311
250
3,884
16
1,618
2,244
498
136
4,496
17
1,394
2,771
343
217
4,725
18
1,659
3,932
477
283
6,351
19
2,917
6,752
1,083
395
11,147
20
3,051
5,741
989
792
10,573
41,176
22
1,319
2,241
337
185
4,082
23
1,274
2,314
327
184
4,079
24
1,750
2,943
493
458
5,644
25
1,939
4,645
518
265
7,367
26
5,017
8,995
1,217
608
15,837
27
4,386
8,008
1,406
706
14,506
51,515
29
545
1,761
223
233
2,762
30
1,887
2,672
512
258
5,109
31
1,476
2,700
464
226
4,866
12,737
TOTAL
54,265
103,252
16.324
8,289
182,130
94 TOTALS
47,662
94,466
14,360
6,914
163,402
% OF SALE
30
57
9
5
100
SALES INC OR DEC
18,728
11
%
76 COUNTY
5/15/ C LEOD COUNTY
15:46 :52 021 CITY
DESCRIPT
PIONEERLANI RARY SYSTEM COUNTY 34
INTEGRATED ANCIAL SYSTEM IF 0 PAGE 22
STATEMENT OF REVENUES AND EXPENDITURES AS OF 4/30/95 EDD: 5/15/95 13 :00:08
CURRENT YEAR CURRENT Z OF X OF
MONTH _ _ -TO -DATE _ BUDGET _ BOGT YEAR
FUNDS
REVENUES
-
--
-- -
- - --
-
RESERVE
.00
r•
.00
++
15,687.000R
+a
0
33
-CITY _
. _ _ ._ _ _ - - _ . _ . _
17,8.76.50CR_ar
_ _35_•753.000R
i►
719115.000R
q
50
33
COUNTY UPERATING
.00
*►
10,278.75CR
_
a►
_ _._
41,115.000A
___
+t
25
33
STATE OPERATING
.00
r►
.p0
rr
_FEDERAL UPERATING
.00
ir_
,pp
rr
CAPITAL
- _ _- .00
ra
.00
++
GIFTS
20C.000R
►►
670.000R
to
400.000R
►t
169
33
INTEREST
__,_____.00
y• �
___
CHARGES. FINES
25.30CR
rt
146.26CR
•+� __
200.000R
rs
73
33
COPY MACHINE
.00
rt■
.00
++
- _ - - - -- - _.00
•r
.00
■r
FAX MACHINE
.00
►■
.00
ar
- --
-
-- -- --
BOOK SALES
.DO
■+
.00
+r
600.000R
++
0
33
rXI
OTHER
350.ODCk
tr
350.000R
u
TOTAL REVENUES
189451.60CR
■r►
47,198.01CR
rrr
129,508.000R
tsy
36
33
EXPENOTTUAFS
SALARIES AND WAGES
6.766.76
+a
249731.19
a+
76,455.00
t♦
32
33
HEALTH INSURANCE
76.24
♦+
304.96
y+
984.00
tr
31
33
- M�_LTH_INSURANCE - _--- -
- -... s
.
3.00
rt
0
SS /PtRA /M =_DICARE
756.23
+r
2,914.15
rs
-
8,104.00
+r
36
_3E
33
_ BOOKS
1,513.24
rt
6,243.50
r+
27,000.00
r♦
23
33
37.12
it
2,440.55
•r
4,000._0_0
sa
33
VIDEO TAPES
.00
►a
.00
++
_61
BINDINGS
.00
►r
.00
+s
100.00
rr
0
33
- _ QCLC AND OTHER CHARGES
_ 00
++
.DO
y COM VENDOR CHARGES
.00
r•
.00
•t
VEHICLE OPERATION
.00
r►
.00
p
VEHICLE INSURANCE -- ,_ -
-_ --- �- �- -.r,
TELEPHONE AND LINE CHARGES
.00
rt+
-_QQ
.00
a+
- POSTAGE AND SHIPPING
72.00
++
288.00
a►
950.00
+r
30
33
- __NEW_ EOUIP"T__` -__
.00
►►
yQ
ti
4,000.00
►•
033
- MAINTENANCE AND CONTRACTS
.00
rt►
206.74
r+
-- SUPPLIES AND PRINTING
.00
r+
249.30
►+
600.00
•+
42
33
_ __ „_ PROMOTIONAL AND PUBLICITY __ -
_ .00_
rr
X00
ty
MILEAGE AND MEETINGS - STAFF
.00
ra
.00
++
MILEAGE AND MEETINGS - TRUSTEES
.00
►►
.00
at
_
EMBERSHIP3.
WORK COMP/PROPERTY/LIABILITY
WORK INSURANCE
.00
ty
1,234.64
+s
19101.00
as
112
33
ADS AND LEGAL NOTICES
.00
rs
.00
as
- AUDITING
.00
►y
00
ry
58 QO
rs
0
33
BOOKKEEPING
9.68
yr
47.81
•r
113.00
■r
42
33
CONTINUING EDUCATION
000
a+
000
++
- LEGAL SERVICES
.00
rr
.00
-
_ STATE SALES TAX
.00
•►
.00
►►
200.00
a•
0
33
---TOT AL EXPENDITURES _ _ _
`�
_ 9.231 .j7
rrr
3B�¢¢O.B4
s ►r
13 985.00
r►r
3133
;i TOTAL FUNDS
99220.53CR
yr►r
8,537.17CR
+ +yr
59523.000R
irq
155
33
BA E SHEET
AF O, 1995
ASSETS
UTILITY PLANT - AT COST
LAND 6 LAND RIGHTS
DEPRECIABLE UTILITY PLANT
TOTAL UTILITY PLANT
LESS ACCUMULATED DEPRECIATION
TOTAL ACCUMULATED DEPRECIATION
CONSTRUCTION IN PROGRESS
TOTAL CONSTRUCTION IN PROGRESS
TOTAL UTILITY PLANT DEPREC VALUE
RESTRICTED FUNDS 6 ACCOUNTS
INVESTMENT - GAS RESERVES
MEDICAL INSURANCE
BOND 6 INTEREST PAYMENT 1993
BOND RESERVE -- 1993
TOTAL RESTRICTED FUNDS 6 ACCOUNTS
CURRENT 8 ACCRUED ASSETS
CASH IN BANK
INVESTMENTS 6 SAVINGS ACCOUNTS
ACCOUNTS RECEIVABLE _
INVENTORIES
PREPAID INSURANCE
TOTAL CURRENT 6 ACCRUED ASSETS
DEFERRED CHARGE
BOND DISCOUNT 1993 _
TOTAL DEFERRED CHARGE
TOTAL ASSETS
w w w w TOTAL w w w w
891,734.75
51,502,319.00
52,394,053.75
(16,7691548.98)__
(16,769,549.98)
301,446.99
301,446.99
_35,925,951.76_
864,905.55
100,000.00
449,684.00
1,38.9_,320.0.0
2,803,909.55
2,051,366.68
548,647.54
1,585,666.37
1,478,333.62
78,060.81
5,742,075.02 _
178,264.23 _
178,264.23
44,650,200.56___
5/25/95 HUTCHINSON U1111 ITIES COMMISSION
bAL SHEEI'
APRIL 30, 1995
MUNICIPAL EQUITY 6 LIABILITIES _
MUNICIPAL EQUITY
MUNICIPAL EQUITY
UNAPPROPRIATED RETAINED EARNINGS _
TOTAL MUNICIPAL EQUITY
LONG TERM LIABILITIES -NET OF
CURRENT MATURITIES
1993 BONDS
TOTAL LONG TERM LIABILITIES
CONSTR CONTRACTS 8 ACCTS PAY RETAIN
ACCRUED EXPENSES - RETAINAGE
TOTAL CONSTRUCTION 6 ACCTS PAY
CURRENT 6 ACCRUED LIABILITIES
ACCOUNTS PAYABLE
INTEREST ACCRUED
ACCRUED PAYROLL
ACCRUED VACATION PAYABLE
ACCRUED MEDICAL FUND
ACCRUED REC PAYMENT
CUSTOMER DEPOSITS
OTHER CURRENT 8 ACCRUED LIABILITIES
TOTAL CURRENT 6 ACCRUED LIAB
TOTAL MUNICIPAL EQUITY 6 LIAB
PAGE
■ w w TOTAL • * • •
29,452,219.76
( 46_0_, 792_ . 00 )
28,991,427.76 --- - - - - --
13,725,000.00
.. ..13,725.000.00 -- - -- -- --
200,147.34
-- - 200, 147.34 -- -- -_ -- -
1,084,133.02
273,194.40
82,809.23
137.954.76 - - - -..- - - -- -- - - - -..
39,628.39
75.92
33,844.74
1,733,625.46
44,650,200.56
STATFME.NT OF
OME 6 EXPENSES
APO, 1995
PREVIOUS
CURRENT
BUDGETED
BUDGET
ANNUAL
YEAR TO DATE
--- ----- -----
YEAR TO DATE
--------------
YEAR TO DATE
----- --------
DEVIATION
-------- ------
BUDGET
--------------
INCOME STATEMENT
OPERATING REVENUE
_
SALES - ELECTRIC ENERGY
3,386,148.31
3,393,739.33
3,294,206.75
99,532.58
10,540,505.00
SALES FOR RESALE
510.00
993.00
930.00
63.00
3,100,000.00
NET INCOME FROM OTHER SOURCES
15,344.26
14,853.i8
18,890.00
_ (4,036.82)
_ _ 53,000.00
SECURITY LIGHTS
3,674.00
3,632.00
4,620.00
(988.00)
14,000.00
POLE RENTAL
.00
.00
.00
.00
4,000.00
SALES - GAS
2,456,273.65
1,961,378.44
2,593,160.00
(631,781.56)
5,650,000.00
TOTAL OPERATING REVENUE
5,861,950.22
3,374,595.95
5,911,806.75
(537,210.80)
19,361,505.00
OPERATING EXPENSES
PRODUCTION OPERATION
264,986.14
301,255.71
289,958.49
(11,297.22)
1,004,327.00
PRODUCTION MAINTENANCE
47,709.35
112,644.05
106,405.00
(6,239.05)
193,000.00
PURCHASED POWER
1,795,601.60
1,878,597.96
1,569,945.00
(308,652.96)
3,324,500.00
TRANSMISSION OPERATION
.00
.00
.00
.00
3,400.00
TRANSMISSION MAINTENANCE
13,575.16
3,894.39
5,080.00
1.185.61
35,500.00
ELECTRIC DISTRIBUTION OPERATION
60,500.36
84,995.99
71,394.16
(13,601.83)
ELECTRIC DISTRIBUTION MAINTENANCE
63,093.99
57,098.81
59,435.27
2,336.46
_213,263.00
125,819.00
MFG GAS PRODUCTION OPERATION
884.24
271.50
.00
(271.50)
2,500.00
MFG GAS PRODUCTION MAINTENANCE
1,041.39
703.73
1,710.00
1,006.27
2_,000.00
PURCHASED GAS EXPENSE
2,024,459.27
1,926,738.45
2,674,465.00
947,726.55 -
19,963 ' iob.00
GAS DISTRIBUTION OPERATION
66,395.25
78,759.53
71,467.95
(7,291.58)
205,602.80
GAS DISTRIBUTION MAINTENANCE
14,173.11
17,583.51
14,389.00
(3,194.51)_
_ 48,400.00
-
CUSTOMER EXPENSES
44,526.50
- 49,967.37
43,103.13
_ _
(6,864.24)
152,612.50
CUSTOMER SERVICES
11,599.88
9,852.80
12,506.00
2,653.20
33,800.00
ADMINISTRATIVE 6 GENERAL EXPENSES
411,228.63
529,567.27
510,953.80
<18,613.47)
1,496,684.00
DEPRECIATION
483,333.32
579,999.60
574,200.00
(51799.60)
- 1,900,000.00
TOTAL OPERATING EXPENSES
5,303,106.19
5,631,930.67
6,205,012.80
573,082.13
17,704,510.30
OPERATING INCOME
558,842.03
(257,334.72)
(293,206.05)
35,871.33
1,656,994.70
OTHER INCOME
OTHER - NET
21,041.39
91577.38
_
24,670.00
_ _ _
<15,D92.62)
77,000.00
INTEREST INCOME
53,862.93
70,353.04
70,000.00
353.04
200,000.00
MISC INCOME
2,947.13
30,533.14
1,830.00
28,703.14
30,°" .00
MISC INCOME - GAS
142,475.90
82,355 -.49
85,000.00 --
_
(2,644.51)
500,000.00
TOTAL OTHER INCOME
220,327.35
192,819.05
181,500.00
51,319.05
807,500.00
OTHER EXPENSES
MISC EXPENSES
1,743.24
15,692.33
18,450.00
2,757.67
41,000.00
INTEREST EXPENSE
221,820.00
218,084.00
219,875.04
1,791.04
670,288.00
TOTAL OTHER EXPENSES
223,563.24
_ 233,776.33
238,325.04
4,548.71
711,288.00
CONTRIBUTION TO CITY
162,500.00
162,500.00
168,750.00
6,250.00
675,000.00
TOTAL CONTRIBUTION TO CITY
162,500.00
162,500.00
168,750.00
- 6,250.00
675,000.00
NON -OPERATING INCOME
(165,735.89)
(263,457.28)
(225,575.04)
22,117.76
(578,788.00)
NET INCOME
393,106.14
(460,792.00)
(518,781.09)
57,989.09
1,078,206.70
MEMO. FOR YOUR INFORMATION
•
To: Mayor, Coun 6 Planning Commission, and Planning Staff
From: Brenda ffilanning Coordinator
Subject: Lot Split Form
Date: May 23, 1995
Attached is the form that we will be using when an applicant proposes a lot split. The form and
the required survey should provide the information needed to properly consider the proposals.
If you have any questions or comments, please contact me at 234 -4239.
Enc.
C J
Date Filed:
As owner(s) of the property described as
I / we do request that the City Council approve the split of the above described lot.
(C=1C �)
City Parcel ID Number:
Address of Property:
Property Owner(s):
Phone:
Signature:
County Parcel ID Number:
NOTE: A Registered Land Survey identifying the lot split and the two resulting lots shall be submitted with
this request. All existing structures and the setbacks from property lines, easements, adjacent streets and
rights -of -ways shall be identified on the survey.
