cp05-09-1989 cSUNDAY
-7-
L"
I-
IUTCHINSON
CITY
CALENDAR
WEEK OF n �_
May 1__TO r_ tay 13
VJEDNESDAY
-10-
10:00 A.M. - Directors Meet
at City Hall
7:00 P.M. - Public Hearing
at .Jr. /Sr. Cafe-
, teria Re. Bluff
Street, Waller
Drive and Carlisl
Street Projects
THURSDA
-11-
MONDAY
-8-
FRIDAY
-12-
VACATION 6 CONFERENCE:
DOUG METER - May 8 -19
GARY PLOTZ - May 10 -12
Conference
TUE '�Y
9-
11:30 A.M.
- CAER Committee
Meeting at Police
Station
2:00 P.M.
- Open Bids at City
Hall foL Nursing
Home Revenue Bond
5:30 P.M.
- Special Meetiflg of
Nursing Home Board
at Burns Manor re.
Revenue Bond
7:30 P.M.
- City Councdl
Meeting at City
Hall
SATURDAY
-13-
FISHING SEASON OPENS
�r.
r a-
_:7
AGENDA
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, NAY 9, 1989
1. Call to Order - 7:30 P.X.
2. Invocation - Rev. Lavern Johnson, Bethlehem United Methodist Church
3. Consideration of Minutes - Regular Meeting of April 25, 1989
aR_TR_DpenTng oprn 24, 1989
Action - Approve as distributed - Approve as amended
4. Routine Items
(a) Reports of Officers, Boards and Commissions
1. Building Official's Report - April 1989
2. Nursing Home Board Minutes - March 23 and April 11, 1989
3. Police Commission Minutes - April 26, 1989
• (b) Short -Term "On Sale" Ron-Intoxicating Malt Liquor License for
Hutchinson Huskies Baseball Assn. at Veterans Memorial Park
Concession Stand for May - August 1989
Action - Motion to order report and minutes filed and issue license
5. Public Hearing - 8_00 P.M.
None
6. Communications, Requests and Petitions
(a) Consideration of Request By Prudential To Offer City Employees 457
Deferred Compensation Plans As Voluntary Payroll Deduction
Action - Motion to reject - Motion to approve
(b) Consideration of Request to Operate Food Concession In Library Square
During Summer Months
Action - Motion to reject - Notion to refer to Park & Recreation Board
(c) Consideration of Request By Hutchinson Technology, Inc. to Use Civic
Arena And Recreation Center Facilities for Company Picnic On July 15
Action - Motion to reject - Motion to approve
1
CITY COUNCIL AGENDA - MAY 9, 1989
(d) Discussion of Status of Trailer Removal At Midwest Trailer Court
Action -
(e) Consideration of Request By Hutchinson Assembly of God Church to Use
Library Square On July 16, 1989 for Outdoor Concert
Action - Notion to reject - Motion to approve
7. Resolutions And Ordinances
(a) Resolution No. 8998 - Resolution for Purchase
Action - Notion to reject - Notion to waive reading and adopt
8. Unfinished Business
(a) Consideration of Additional Fees for R.C.N. Contract
(DEFERRED APRIL 25, 1989)
Action - Notion to reject - Notion to approve •
9. New Business
(a) Consideration of T.H. 15 South Left -Turn Lane Plan And Access Plan
In Vicinity of South find of Lynn Road
Action -
(b) Consideration of Sale of New Dimension Plating Loan to Community
Reinvestment Fund
Action - Notion to reject - Notion to approve sale and enter into
agreement
(c) Consideration of Hutchmobile Schedule And Policies
Action - Notion to reject - Notion to approve
(d) Consideration of Main Street Banners
Action - Motion to reject - Motion to approve
(e) Consideration of Awarding Bid for Nursing Home Revenue Bond
Action - Motion to reject - Motion to approve and adopt Resolution •
E
CITY COUNCIL AGENDA - NAY 9, 1989
(f) Consideration of Youth Center Location And Concept of Six -Month
Trial Period
Action - Notion to reject - Motion to approve and authorize City
Attorney to formalize lease terms and execute agreement - Notion
to adopt Resolution
(g) Consideration of Offer for Assessment Payments On Anderson /Beeler
Property
Action - Motion to reject - Motion to approve
(h) Consideration of Accepting Settlement Regarding Korngiebei /Pinske
Litigation
Action - Motion to reject - Motion to approve settlement
(i) Consideration of Settlement Agreement Between City And League
Insurance Trust
Action - Motion to reject - Motion to approve settlement agreement
(j) Consideration of Rental /Purchase of Equipment from Gopher State
• Action - Motion to reject - Motion to approve
(k) Consideration of Awarding Negotiated Bid for $500,000 In Financing
for Hutchinson Community Hospital
Action - Notion to reject - Motion to approve and adopt Resolution
(1) Consideration of Approval to Do Calcium Chloride Treatment On Les
Kouba Parkway In 1989
Action - Notion to reject - Motion to approve
(m) Consideration of Fire Department Selling Excess Equipment
Action - Motion to reject - Notion to approve
10. Miscellaneous
(a) Communications from City Administrator
11. Claims, Appropriations And Contract Payments
(a) Verified Claims
• Action - Notion to approve and authorize payment from appropriate
funds
12. Adjournment
K3
i
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0
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, APRIL 25, 1989
1. The meeting was called to order by Mayor Ackland at 7:30 P.X. The follow-
ing were present: Mayor Paul L. Ackland, Aldermen Mike Carls, John Mlinar,
Marlin Torgerson and Pat Xikulecky. Also present: City Administrator Gary
D. Plotz, Consultant Engineer Marlow V. Priebe and City Attorney G. Barry
Anderson.
2. INVOCATION
The invocation was given by the Reverend Walter Marth.
3. MINUTES
The minutes of the regular meeting of April 11, 1989 were approved as dis-
tributed.
4. ROUTINE ITEMS
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. FINANCIAL REPORT - MARCH 1989
2. PLANNING COMMISSION MINUTES - MARCH 21, 1989
3. HRA MINUTES - MARCH 21, 1989 AND MARCH 28, 1989
4, AIRPORT COMMISSION MINUTES - APRIL 17, 1989
(b) RENEWAL OF ON -SALE NON - INTOXICATING MALT LIQUOR LICENSES
1. CROW RIVER COUNTRY CLUB
2. GODFATHER'S PIZZA
3. GOLD COIN RESTAURANT
4, PIZZA HUT
5. LITTLE CROW BOWLING LANES
(c) RENEWAL OF OFF -SALE NOR - INTOXICATING MALT LIQUOR LICENSES
1. CASH WISE FOODS
2. ERICKSON FREEDOM STATION
3. GEORGE'S FOOD 'N FUEL
4. ONE -STOP GAS & GROCERY
5. SOUTHTOWN MOBIL
6. TOM THUMB FOOD MARKET
7. SUPER AMERICA
- HWY. 7 & HVY. 15
(d) APPOINTMENT OF JEFF HAAG TO POLICE CIVIL SERVICE COMMISSION
The motion was made by Alderman Torgerson, seconded by Alderman Xlinar,
to order report and minutes filed, issue the licenses and ratify the
1
�I
CITY COUNCIL MINUTES - APRIL 25, 1989
is
appointment. Motion unanimously carried.
5. PUBLIC HEARING
None.
6. COMMUNICATIONS, REQUESTS AND PETITIONS
(a) DISCUSSION OF ALLEY WEST OF ADAMS STREET AND NORTH OF FOOD 'N FUEL
Following discussion, Alderman Carls moved that for a period of 60 days
to stop traffic with a gate at the north property line of the Credit
Union. Notion seconded by Alderman Torgerson. The motion was amended
by Alderman Carls to read that the gate goes up one week after signs
are posted, and signs should be signed and posted with all deliberate
speed. Alderman Torgerson seconded the amended motion and unanimously
carried. Main motion carried unanimously.
(b) PRESENTATION BY CHUCK BARGER OF RCN OF WATER PLANT IMPROVEMENTS
COVERING FILTERS AND PUMP CONTROL SYSTEMS AND AUTHORIZE ADVERTISING
Mr. Chuck Barger reported on the filters and pump control systems at
the water plant. Following discussion, Alderman Mlinar moved to ap-
prove the water plant improvements of filters and pump control systems
and advertise for bids on June 2, 1989. Motion seconded by Alderman
Mikulecky and unanimously carried.
(c) CONSIDERATION OF PETITION FROM CLIFTON HEIGHTS RESIDENTS FOR
IMPROVEMENTS, STREET LIGHTING AND TRAFFIC SIGNS
Following discussion, Alderman Carls moved to approve for the 1990 im-
provement project list and refer to the Utilities, Police and Street
Departments and City Administrator. Motion seconded by Alderman Tor-
gerson and unanimously carried.
(d) WITHDRAWN FROM AGENDA
(e) UPDATE REPORT BY BILL BASSETT ON LOBBYING ACTIVITIES BY COALITION OF
GREATER MINNESOTA CITIES
Mr. Bill Bassett presented an update report on legislative action and
what the Coalition is doing.
7. RESOLUTIONS AND ORDINANCES
(a) RESOLUTION NO. 8993 - RESOLUTION FOR PURCHASE
The motion was made by Alderman Mlinar, seconded by Alderman Carls, to
waive reading and adopt Resolution No. 8993. Notion unanimously car-
ried.
2
0
CITY COUNCIL MINUTES - APRIL 25, 1989
8. UNFINISHED BUSINESS
(a) CONSIDERATION OF RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT
PROJECT NO. 89 -03, LETTING NO. 3 (DOWNTOWN SPRINKLING PROJECT)
Mr. Dwayne Peterson represented the HCDC Finance Committee and reported
on the proposed formula from its April 25, 1989 meeting. The property
owners with either no basement or a basement under 1,500 sq. ft. would
have a 5300 deferred assessment, and the additional amount from the
Revolving Loan Fund would be $135,285.
Following discussion, Alderman Carls moved to approve the report and
set hearing for May 23, 1989 at 8:00 P.M., and to waive readings and
adopt Resolutions No. 8981 and No. 8982, and make an alternate that the
5300 assessment not be deferred but rather be an activated assessment.
Motion seconded by Alderman Mlinar and unanimously carried.
(b) CONSIDERATION OF PUBLIC PARKING LOT FOR NORTH MAIN STREET UNDER THE
DEVELOPMENT DISTRICT PROGRAM TAX INCREMENT FINANCE PLAN OF 1980
Administrator Plotz reported on the alternatives for the parking lot
situation. Engineer Priebe recommended deferring the item for a re-
view by the Street Department for the cost of gravel on the lot or
possibly leasing the lot.
Alderman Mlinar moved to defer to May 9, 1989. Notion seconded by Ald-
erman Torgerson and unanimously carried.
(c) CONSIDERATION OF REJECTING BID(S) FOR REMOVAL OF TRAILERS AT MIDWEST
TRAILER COURT (DEFERRED FEBRUARY 28, 1989)
Following discussion, Alderman Torgerson moved to reject the bid from
Duiamond 5 Wrecking, Inc. Motion seconded by Alderman Mlinar and unan-
imously carried.
9. NEW BUSINESS
(a) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS
Following discussion, Alderman Mikulecky moved to discontinue service
on May 1, 1989 unless other arrangements had been made, and to defer
payment to May 25 for Dr. Steven DeKoster. Motion seconded by Alder-
man Torgerson and unanimously carried.
(b) CONSIDERATION OF ADDITIONAL FEES FOR RCM CONTRACT
Following discussion, Alderman Mikulecky moved to defer until the next
meeting for additional figures from RCM. Motion seconded by Alderman
Mlinar and unanimously carried.
3
CITY COUNCIL MINUTES - APRIL 25, 1989
(c) CONSIDERATION OF PROPOSED CONSTRUCTION AGREEMENT WITH MN /DOT FOR
TRUNK HIGHWAY NO. 22 PROJECT
Following discussion, Alderman Torgerson moved to approve and enter
Into agreement and to waive reading and adopt Resolution No, 8997.
Motion seconded by Alderman Carle and unanimously carried.
(d) CONSIDERATION OF REQUEST FROM HUTCHINSON MANUFACTURING & SALES INC.
FOR CITY SEVER HOOK -UP
Administrator Plotz recommended obtaining surveys from other cities to
determine their policy(s) for hook -up charges. Alderman Torgerson
moved to defer to May 9, 1989. Motion seconded by Alderman Mlinar and
unanimously carried.
(e) CONSIDERATION OF ELECTRICAL SERVICE AT OLD WASTEWATER TREATMENT PLANT
BY QUADE'S ELECTRIC
It was reported the cost would be $2,200 to complete the electrical
service, plus the cost for an electrical inspection. Following dis-
cussion, Alderman Mlinar moved to approve the work. Motion seconded by
Alderman Torgerson and unanimously carried.
(f) CONSIDERATION OF UNDERGROUND SPRINKLING SYSTEM AT VETERANS MEMORIAL
FIELD
Following discussion, Alderman Carle moved to approve the sprinkling
system, based on the memorandum from the Interim Parks & Recreation Di-
rector to take $9,500 from the chemical budget and one -half ($5,100)
from the salary savings for a Recreation Director. Motion seconded by
Alderman Mlinar and unanimously carried.
Interim Director Haugen reported bids had been received for this proj-
ect; however, one of the four bidders presented an alternate bid on the
sprinkling system. It was the legal opinion of the City Attorney that
the specifications had been changed, and the City only had one bid. It
was his recommendation to obtain quotes from the other three low bid-
ders.
Alderman Carle moved to direct the Interim Park & Recreation Director
to contact all three lower bidders with the specifications to receive
quotes. Motion seconded by Alderman Mlinar and unanimously carried.
(g) CONSIDERATION OF REQUEST FROM SCHOOL DISTRICT NO. 423 REGARDING
SIDEWALK AND STREET LIGHTS
Following discussion, Alderman Carle approved the request for the new
school. Motion seconded by Alderman Mlinar and unanimously carried.
(h) CONSIDERATION OF AWARDING 1989 GASOLINE AND DIESEL FUEL CONTRACT FOR
CITY VEHICLES
4
0 CITY COUNCIL MINUTES - APRIL 25, 1989
Following discussion, Alderman Mlinar moved to approve and award the
quotation to Cenex Co -Op for 5.059 per gallon over the Koch price.
Motion seconded by Alderman Torgerson and unanimously carried.
(i) CONSIDERATION OF CURBING AROUND PET HOSPITAL'S EAST AND NORTH ENTRANCES
AND DIAGONAL PARKING ALONG NORTH SIDE OF PROPERTY RIGHT- OF -VAY
Dr. & Mrs. Curtis Reiter presented a proposed site plan for improve-
ments at the Hutchinson Pet Hospital. Following discussion, Alderman
Torgerson moved that the Engineering Department do a survey and study
of the curb to extend it back as far as possible without doing a sur-
vey of the whole street and get a cost estimate for the project. Mo-
tion seconded by Alderman Mlinar and unanimously carried.
(j) WITHDRAWN FROM AGENDA
(k) CONSIDERATION OF REVISED LAYOUTS FROM MN /DOT FOR HWY. 7 EAST PROJECT
Following discussion, Alderman Carla moved to defer. Motion seconded
by Alderman Nikulecky and unanimously carried.
(1) CONSIDERATION OF ESTABLISHING HANGAR RENT FOR NEW HANGAR AT MUNICIPAL
AIRPORT AS RECOMMENDED BY AIRPORT COMMISSION
Mr. John Miller appeared before the Council to express concern regard-
ing some of the actions taken by the Airport Commission. Following
discussion, Alderman Carle moved to send all related items back to the
Airport Commission for further consideration. Motion seconded by Ald-
erman Mlinar and unanimously carried.
(m) CONSIDERATION OF CHARGING HANGAR RENT FOR CIVIL AIR PATROL PLANE AT
MUNICIPAL AIRPORT AS RECOMMENDED BY AIRPORT COMMISSION
Following discussion, Alderman Carla moved to send all related items
back to the Airport Commission for further consideration. Motion sec-
onded by Alderman Mlinar and unanimously carried.
(n) CONSIDERATION OF EXTENDING CONDITIONAL USE PERMIT REQUESTED BY CLARK
MILLER OR A & W RESTAURANT SITE WITH FAVORABLE RECOMMENDATION OF
PLANNING COMMISSION
Following discussion, Alderman Carla moved to approve the extension.
Motion seconded by Alderman Mlinar and unanimously carried.
(o) CONSIDERATION OF FINAL PLAT OF MAC SUBDIVISION (TWO NILE RADIUS) WITH
FAVORABLE RECOMMENDATION OF PLANNING COMMISSION
Following discussion, Alderman Mlinar moved to refer to the County with
no objection. Motion seconded by Alderman Mikulecky and unanimously
carried.
5
CITY COUNCIL MINUTES - APRIL 25, 1989
E
(p) CONSIDERATION OF BEGINNING ANNEXATION PROCEEDINGS ON TRACT IN SECTION 1
LYNN TOWNSHIP OFF SOUTH GRADE ROAD WITH UNFAVORABLE RECOMMENDATION OF
PLANNING COMMISSION
Following discussion, Alderman Torgerson moved to refer back to the
Planning Commission for additional information. Motion seconded by
Alderman Carls and unanimously carried.
(q) CONSIDERATION OF BEGINNING REVISED ANNEXATION PROCEEDINGS ON MCDONALD
PROPERTY WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION
Following discussion, Alderman Mlinar moved to refer to the Municipal
Board. Motion seconded by Alderman Carls and unanimously carried.
(r) DISCUSSION OF BURGER KING SITE PLAN WITH RECOMMENDATION OF PLANNING
COMMISSION
It was the recommendation of the Planning Commission that the house
located on Hwy. 7 East adjacent to the site be removed and the open
excavation be filled in, and also the open excavation to the north of
Gas 'N Grocery be filled and restored to a buildable condition within
20 days of notice by the City.
Following discussion, Alderman Carls moved to direct the City Attorney
to take the necessary steps to accomplish the recommendations of the
Planning Commission. Motion seconded by Alderman Mlinar and unani-
mously carried.
10. MISCELLANEOUS
(a) COMMUNICATIONS FROM CITY ADMINISTRATOR
City Administrator Plotz reported that six proposals were received for
remodeling or replacement of City Hall. A summary report will be pre-
pared and distributed to the Council members.
(b) COMMUNICATIONS FROM COMMUNITY EDUCATION DIRECTOR
Mr. Jim Mills reported that the Spanky's facility would be available
for use as a youth center for 53,000 /month rent. The school district
bad youth development funds available for this project; however, addi-
tional funding was needed. It was suggested that a six -month lease
arrangement be entered into between the City and School District with
the owner of the property.
Following discussion, Alderman Mlinar moved to approve the resolution
from the Youth Development Planning Committee and negotiate a proposal
for recommendation. Motion seconded by Alderman Torgerson and unani-
mously carried.
0
CITY COUNCIL MINUTES - APRIL 25, 1989
0
0
(c) COMMUNICATIONS FROM CONSULTANT ENGINEER MARLOW PRIEBE
Engineer Priebe reported that bids were received on April 24, 1989 for
Letting No. 2 and Letting No. 4. It was his recommendation to order
the preparation of Assessment Roil No. 250 for Letting No. 2 and set a
public hearing for May 23, 1989 at 8:00 P.M., and to reject the bids
for Letting No. 4 and advertise for bids on May 15, 1989 at 2:00 P.M.
Following discussion, Alderman Mlinar moved to approve and waive read-
ing and adopt Resolution No. 8994 and No. 8995 for Letting No. 2.
Motion seconded by Alderman Carls and unanimously carried.
Following discussion, Alderman Mlinar moved to reject the bids, adver-
tise for bids on May 15, 1989, and to waive reading and adopt Resolu-
tion No. 8996. Motion seconded by Alderman Carls and unanimously car-
ried.
11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS
The motion was made by Alderman Torgerson, seconded by Alderman Miku-
lecky, to approve and authorize payment from the appropriate funds.
Motion unanimously carried.
12, ADJOURNMENT
There being no further business, the meeting adjourned at 10:10 P.M.
7
•
•
MINUTES
BID OPENING
MONDAY, APRIL 24, 1989
City Administrator Gary D. Piotz called the bid opening to order at 2:00 P.M.
Also present were Consultant Engineer Marlow V. Priebe and Administrative Sec-
retary Marilyn Swanson.
The reading of Publication No. 3978 and No. 3979 was dispensed with
lowing bids were opened and read:
LBTTI80 10, 2
Juul Contracting Co., Inc.
Hutchinson, MN
N. H. Snider Construction Co.
Slayton, MN
LETTIRO 80, 4
Wm. Mueller & Sons, Inc.
Hamburg, MN
Bauerly Bros., Inc.
Sauk Rapids, MN
Mid Minnesota Hot Mix
Annandale, MN
$219,848.75 (A & B)
Deduct $1.50 /ft.
259,793.40 (A & B)
Deduct $1.00 /ft.
$86,419.40
87,509.30
79,674.56
The bids were referred to the Engineering Department for review.
The bid opening adjourned at 2:10 P.M.
The fol-
•
0
0573[ nts eaC. L�. yy
rp.a C -404 U. S."PM1TWNT of COMMtato
la.t.aal uNNVO rN CtNSUS
Period In which Patients leer"" I
IPla.w Tames any Mora N home and ndSsn, Icarani DP C."
REPORT OF BUILDING OR
553
ZONING PERMITS ISSUED
AND LOCAL PUBLIC
CONSTRUCTION
103500 27 9 9999 095 1 0
26 9999 02730
DANES MARIA OLDS OFFICIAL
Of your building permit system Ma changed.
mark fXl appropriate boa below and eaplaM
M commen4.
CITY HALL 37 WASHINGTON AVE WEST
❑ Discontinued issuing permits
HUTCHINSON RN 55350
❑ Merged with another system
❑ Split into two or more systems
❑ Annexed land areas
PLEASE COMPLETE AND MAIL
Had other changes
THIS FORM ON OR BEFORE
It no permits wore issued tluring
Bureau of the Cen.ue
Instructions are included. For
This period, mark 1X1 in the box ❑
1201 East Tenth Street
further assistance, p0 collect
and return this form
effs summille, IN 47132
VATELY OWNED
13011763-7244.
NEW RESIDENTIAL
PUBUCLY OWNED
HOUSEKEEPING
78uJidings
Number
of
BUILDINGS
Valuation of
Valuation of
Housing
construction
Buildings
Housing
g
construction
unite
Omit cants
units
Orn/ t centt
Icl
(dl
la)
Ill
( )
Single - family houses, detached
Exclude mobile homes.
5
$395,224
Single - family houses. attached
- Separated by ground to roof wall,
-No units above or below, and
- Separate heeling systems end utility meters.
(Count each unit as s separate building)
t02
Two - family buildings
103
Three - and four - family buildings
104
Five -or -more family buildings
106
TOTAL — Sum of 101 -106 = 0
108
NEW RESIDENTIAL
PRIVATELY OWNED
PUBUCLYOWNED
NONDINGS EEPING
Item
Number of
Number of
BUILDINGS
Valuation of
Valuation of
No.
Buildings
Rooms
construction
0 cants
"dings
ng
Rooms
construction
Omit CMts
Is)
01
lei
Id1
of
111
(9)
Hotels. motels. and tourist cabins
(transient accommodations only)
213
Other nonhousekeeping shelter
214
NEW
PRIVATELY OWNED
PUBLICLY
OWNED
NONRESIDENTIAL
Number
n
Valuatio of
Number
Valuation of
BUILDINGS
Item
No.
of
construction
of
construction
buildings
Omit rents
buildings
Omit cents
1.1
Ibl
IN
Id?
NI
Amusement, social, and recreational
318
Churches and other religious
318
'
Industrial
320
Parkin era es Ibuildin send open decked)
321
Service stations antl repair garages
322
Hospitals and institutional
323
Offices, banks. and professional
324
Public works and utilities
325
Schools and other educational
326
Stores and customer services
327
Other nonresidential buildings
328
S 725.00
Structures other than buildings
328
ADDITIONS,
PRIVATELY OWNED
PUBLICLYOWNED
ALTERATIONS. AND Item
CONVEgSIONS
Number
Valuation of
Number
Valuation of
No.
of
construction
of
construction
buildings
Omit cents
buildings
Omit cents
L1
Ib1
1U
l41
a)
Residential — Classify addition. of
garages and carports in item 438.
434
5
4 8,950.00
Nonresidential and nonhousekeeping
437
5
S68,500.00
1
S 5,000.00
Additions of residential garages and carports
r
attached and detachedl
438
1
$24,000.00
/LCAbE, CVN I INUE UN RE YERSE SIVE ��
EMOLITIONS AND
PRIVAT • WN
I LV W
AZING OF
UILDINOS
Ile
lam
Number of
Number of
Buikatgs
Xousirp
Bu60Ktgs
Mousing
units
units
7SVh-or-mm
(a)
Ibl
Icl
fill
al
uflnachld,nddeachadI
N6
e
411- and mll buildings
647
Y builEln a
646
All other buiidin a and structu res
bQ
RMMWMUR INDIVIDUAL PERMITS AUTHORIZING CONSTRUCTION VALUED AT 6600,000 OR MORE
Meson provide the followlnyy Information for each permit authorizing construction valued at $500.000 W more
entered In sections I through IV.
Item
No.
Owner-
Numbs, of
from
Description
Name and address of
ship
Valuation of
erg,
owns, or builder
Merk W
construction
Noosing
Suikinpa
I —IV
one
units
LI
Ibl
ICI
Idl
LI
In
191
Kl,d or Wlkinp
------------------------------------
❑Private
Shea eddnrr
1
Kind of bulking
__ ___________________
____ _______________________________
1:1 Private
❑PUWk
e
Kind el lwedlnp
____ _______________________________
Si; ;;di.; ________
____ _______________________________
❑ham
i
KW of b"N
_______________________________
SM aaaeN _____________
6
Kind of building
_ _______________________________
____ _______________________________
❑raven
SM sddnss
6
Kkd of buad'vtg
__ ______________Saddress
___ _______________________ ---------
❑pmats
________________
S adds
6
Kind of bulking
-----------------
____ _______________________________
_-----
Seas sadreN
___ _______________________________
OPUbk
e
Kkd el building
____ _______________________________
oPnwata
6
Aina of vm
__ ---------------------------------
�Mvab
Slu ila.w _______________________
f
Comments
Am You awes of any new pormltdssuing
jurisdictions? ®No ❑ Yes — Please give additional information in comments.
Nome of person to contact regarding this report
James G. NdII[d
Telephone
Title
Area code
Number
E+tenvon
Bul ;din Official
.ow c+o. n sae
612
B —
•
0
BURNS MANOR MUNICIPAL NURSING HOME
Minutes - March - 1989
The Board of Directors for Burns Manor Municipal Nursing Home
met Thursday, March 23, 1988 at 12:00 noon in the small dining room.
President Larry Graf presiding.
Members present: Larry Graf
Marge Putney
Ancher Nelsen
Members absent
Guests:
Press:
Elaine Black
Kay Peterson
Pat Mikulecky
Mavis Geier
Jim Mills
Mayor Paul Ackland
Gloria Dansereau
Bill Hargis - Good Neighbor
Jane Hodgins - Hutchinson Leader
Bob Walters - KDUZ Radio
Burns Manor board meeting was called to order by President Larry
Graf .
APPROVAL OF MINUTES
A motion was made by Pat Mikulecky and seconded by Marge Putney
to approve the minutes of February 23, 1989. All in favor. Motion
carried.
APPROVAL OF BILLS
A motion was made by Kay Peterson and seconded by Pat Mikulecky
to approve the bills in the amount of $53,177.16. All in favor.
Motion carried.
MEMORIAL 7UND
$25,000.00 was received from the Helen Zelany estate.
OLD BUSINESS
A. Smoke Free: A motion was made by Pat Mikulecky and seconded
by Kay Peterson that Burns Manor be smoke free for staff and visitors
by January 1, 1990. Residents may smoke under supervision.
B. Sale of Bonds: Bill Hargis, President of Good Neighbor,
recommended that the nursing home issue revenue bonds that will be
repaid from nursing home revenues. The state officials have approved
a consulting contract between Burns Manor and Good Neighbor, the
negotiations have not been finalized. He stressed that plans for
the facilities future must continue.
A motion was made by Kay Peterson and seconded by Ancher Nelsen
that the board recommend the City of Hutchinson finance the capital
improvement of Burns Manor. All in favor. Motion carried.
Mr. Hargis recommended the board and memorial committee members
serve on the nursing home finance, operations and capital improvements.
March Minutes
Page 2
A motion was made by Pat Mikulecky and seconded by Kay Peterson that
l Larry Graf structure the appointments. All in favor. Motion carried
Larry Graf thanked Gloria Dansereau for 11 years of dedicatied
service. Ancher Nelsen will present Gloria with a plaque that he
made.
NEW BUSINESS
A. Election of Officiers: A motion was made by Ancher Nelsen
to nominate Larry Graf for President, seconded by Marge Putney. All
in favor. Motion carried.
B. Vice President: A motion was made by Marge Putney to nominate
Ancher Nelsen for Vice President, seconded by Pat Mikulecky. All in
favor. Motion carried.
C. Legislature: A motion was made by Kay Peterson, seconded by
Marge Putney to approve Ancher Nelsen meeting with Bill Hargis and John
Bernhagen to draft a bill for the legislature. All in favor. Motion
carried.
D. Ancher Nelson reported on the meeting he attended.
E. Thanks to Ancher: Bill Hargis thanked Ancher Nelsen for
the valuable assistance he has given in formulating the Good Neighboto
and Burns Manor agreement . The state has given tentative approval
to the consulting agreement.
F. Meeting Time: A motion was made by Pat Mikulecky and seconded
by Kay Peterson to change the time of the monthly meeting to 12:00 noon.
All in favor. Motion carried.
A motion was made to adjourn by Pat Mikulecky and seconded by
Kay Peterson. All in favor. Motion carried.
There being no further business, President Larry Graf adjourned
the meeting
0
March Minutes
Page 3
The Burns Manor board of Directors will meet Thursday,
April 27, 1989 at 12:00 in the small dining room.
ATTEST:
arry braT, vresicen
Respectfully submitted:
M vis J G ier, Secretar,
BURNS MANOR MUNICIPAL NURSING HOME
Minutes - April - 1989
The Board of Directors for Burns Manor Municipal Nursing Home
met Tuesday, April 11, 1989 at 6:30 p.m. in the small dining room for
a special meeting. President Larry Graf presiding.
Members present: Larry Graf Kay Peterson
Ancher Nelsen Pat Mikulecky
Elaine Black Jim Mills
Mavis Geier
Members absent: Marge Putney
Guests: Bill Fahey, Bond Consultant
Press: Jane Hodgins - Hutchinson Leader
Bob Walters - KDUZ
The report given by Bill E. Fahey to the Burns Manor board of
Directors and the Hutchinson City Council addressing Burns Manor
Nursing Home Financing is made a part of the April 11, 1989 minutes.
The nursing home board will have to resolve the use of restricted
funds.
A motion by Pat Mikulecky, seconded by Jim Mills to request the
city council to proceed and pass the bond issue to finance nursing
home improvements. All in favor. Motion carried.
A motion was made to adjourn by Kay Peterson, seconded by Jim
Mills. All in favor. Motion carried.
There being no further business, President Larry Graf adjourned
the meeting.
Respectfully submitted
Mavis J.6eier, Secretary
ATTEST:
Carry Graff- President' /_�*
0
0
HUTCHINSON POLICE COMMISSION MEETING
The Police Commission met on April 26, 1989 at 7:00 p.m. at the Police
Department. Jeff Haag, Delores Saar and Kevin Compton were present.
The purpose of the meeting was to review the applications for the Liaison
Officer and the Patrol Officer positions.
The following twelve applicants were selected as finalists for the position of
Police /Liaison Officer.
Carl Zeidler, Kelley Jonnson, Kevin Langer, Kevin Stenson, Leonard
Swanberg, Michael Bulozomi, Charles Jones, Jeffrey Harapat, Douglas
Hoffman, Bruce Lindgren, Jeffrey Kaping, Robert Swenson.
They will be notified that they are being considered further and asked to
answer the following two questions.
1) What reason do you have for seeking the position of School Liaison
Officer in Hutchinson?
2) What primary funciton do you see as being most critical in being an
effective Liaison Officer?
These answers must be returned to the Chief of Police by May 10, 1989.
The candidates for patrolman were narrowed with the intention of reducing it
to 15 applicants. That process will continue at the next meeting.
The next meeting was scheduled for Tuesday, May 2, 1989 at 12:00 noon at the
Police Department.
j
Y (612) 587.5151
HvrCy" CITY OF HUTCHINSON
• 37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN, 55350
•
•
MEMO
MAY 9, 1989
TO: MAYOR & CITY COUNCIL
------------------------------------------------------ - - - - --
FROM: KEN MERRILL, FINANCE DIRECTOR
------------------------------------ ----------------------- - - - ---
SUBJECT:MARCH FINANCIAL REPORT
---------------------------------------------------------- - - - - - --
Attached is the March financial report which was inadvertently left
out of your packet of April 25th.
/� -�?.
MARCH
CITY OF HUTCHINSON FINANCIAL
REPORT - 1989
MARCH
REVENUE REPORT - GENERAL FUND
CURRENT
YEAR TO
ADOPTED
BALANCE
PERCENTAGE
•
MARCH
DATE ACTUAL
BUDGET
REMAINING
USED
TAXES
0.00
26378.46
1278791.00
1252412.54
2.1%
LICENSES
6512.50
7422.50
19825.00
12402.50
37.4%
PERMITS AND FEES
6565.14
10153.09
90000.00
79846.91
11.3%
INTER - GOVERNMENT REVENUE
1425.73
110289.42
1549218.00
1438928.58
7.1%
CHARGES FOR SERVICES
27817.64
89166.35
515362.00
426195.65
17.3%
FINES & FORFEITS
5558.95
8779.47
35500.00
26720.53
24.7%
MISCELLANEOUS REVENUE
10430.37
27599.48
156556.00
128956.52
17.6%
CONTRIBUTIONS FROM OTHER FUNDS
75000.00
75000.00
426000.00
351000.00
17.6%
REVENUE FOR OTHER AGENCIES
- 277.75
-4.74
200.00
204.74
-2.4%
TOTAL
133032.58
354784.03
4071452.00
3716667.97
8.7%
EXPENSE REPORT
GENERAL FUND
MAYOR & COUNCIL
5642.93
9896.13
32940.00
23043.87
30.0%
CITY ADM. /CITY CLERK
12139.45
40823.65
141512.00
100688.35
28.8%
ELECTIONS
0.00
0.00
2768.00
2768.00
0.0%
FINANCE
15147.38
61166.49
225914.00
164747.51
27.1%
MOTOR VEHICLE
5228.33
18237.77
64074.00
45836.23
28.5%
ASSESSING
0.00
0.00
20700.00
20700.00
0.0%
LEGAL
2641.25
7702.25
41000.00
33297.75
18.8%
3625.97
5378.54
12475.00
7096.46
43.1%
•PLANNING
CITY HALL
2811.21
10069.77
41856.00
31786.23
24.1%
RECREATION BUILDING
3446.91
10802.15
57366.00
46563.85
18.8%
POLICE DEPARTMENT
69504.73
243435.65
836667.00
593231.35
29.1%
FIRE DEPARTMENT
7061.78
23567.01
104915.00.
81347.99
22.5%
COMMUNITY SERVICE OFFICER
2542.92
7147.33
30482.00
23334.67
23.4%
SCHOOL LIAISON OFFICER
0.00
0.00
22039.00
22039:00
0.0%
BUILDING INSPECTION
4720.70
17114.94
61908.00
44793.06
27.6%
EMERGENCY MANAGEMENT
0.00
0.00
13238.00
13238.00
0.0%
SAFETY COUNCIL
0.00
0.00
150.00
150.00
0.0%
FIRE MARSHALL
3816.59
12496.97
50840.00
38343.03
24.6%
ENGINEERING
12073.41
49589.77
224454.00
174864.23
22.1%
STREETS & ALLEYS
28945.06
88774.26
366040.00
277265.74
24.3%
STREET MAINTENANCE A/C
5588.76
14770.08
89900.00
75129.92
16.4%
LIBRARY
14860.98
31274.42
68791.00
37516.58
45.5%
SENIOR CITIZEN CENTER
5680.93
16318.45
82860.00
66541.55
19.7%
PARK/REC. ADMIN.
5841.05
19283.79
95151.00
75867.21
20.3%
RECREATION
6039.94
25490.99
153472.00
127981.01
16.6%
CIVIC ARENA
13674.04
48051.95
112411.00
64359.05
42.7%
Pr1RK DEPARTMENT
27648.81
82511.46
409116.00
326604.54
20.2%
CEMETERY
3899.53
11067.61
49132.00
38064.39
22.5%
CCHMLti[TY DEVELOPMENT
2219.86
8874.19
33150.00
24275.81
26.8%
DEBT SERVICE
1500.00
4500.00
57000.00
52500.00
7.9%
AIRPORT
1404.90
3567.29
55075.00
51507.71
6.5%
TRA'iSIT
8319.62
25284.05
129016.00
103731.95
19.6%
E`;FR„l COUNCIL
79.68
7274.10
30000.00
22725.90
24.2%
.:'.D.P. CJORDINATRO
2795.83
12837.74
0.00
- 12837.74
0.0%
CNALLCCATED
2172.05
32140.04
355040.00
322899.96
9.1%
TOTAL
9_81074.60
949448.84
4071452.00
3122003.16
23.3%
cMARCH
0EVENUE REPORT - LIQUOR FUND
CITY OF HUTCHINSON FINANCIAL REPORT - 1989 MARCH
ENTERPRISE FUNDS
CURRENT YEAR TO ADOPTED BALANCE PERCENTAGE
MARCH DATE ACTUAL BUDGET REMAINING USED
LIQUOR SALES
34916.47
96331.08
447800.00
351468.92
21.5%
WINE SALES
10095.39
26255.23
160300.00
134044.77
16.4%
BEER SALES
49743.14
132574.47
700300.00
567725.53
1819%
BEER DEPOSITS
-77.63
- 137.29
0.00
137.29
0.0%
MISC. SALES
2361.37
7072.64
45000.00
37927.36
0.0%
INTEREST
461.77
1155.24
5600.00
4444.76
20.6%
REFUNDS & REIMBURSEMENTS
0.00
0.00
0.00
0.00
18.9%
CASH DISCOUNTS
-50.55
- 106.09
- 2800.00
- 2693.91
0.0%
TOTAL
97449.96
263145.28
1356200.00
1093054.72
19.4%
EXPENSE REPORT
LIQUOR FUND
PERSONEL SERVICES
9775.76
38322.90
133169.00
94846.10
28.8%
SUPPLIES, REPAIR & MAINTENANCE
83.08
197.54
4700.00
4502.46
4.2%
OTHER SERVICES & CHARGES
1399.97
3700.79
39800.00
36099.21
9.3%
MISCELLANEOUS
0.00
0.00
8900.00
8900.00
0.0%
CAPITAL OUTLAY
788.32
788.32
29000.00
28211.68
0.0%
TRANSFERS
0.00
0.00
110000.00
110000.00
0.0%
COST OF SALES
77492.26
194795.19
1032600.00
837804.81
18.9%
wHER
0.00
0.00
- 2300.00
- 2300.00
0.0%
TOTAL
89539.39
237804.74
1355869.00
1118064.26
17.5%
REVENUE REPORT - WATER
SEWER /FUND
FEDERAL GRANTS
0.00
0.00
0.00
0.0%
WATER SALES
43835.23
117152.72
506000.00
388847.28
23.2%
WATER METER SALES
2170.00
3365.30
6500.00
3134.70
51.8%
REFUSE SERVICES
40403.26
102692.25
412000.00
309307.75
24.9%
SEWER SERVICES
121483.42
327984.89
1147000.00
819015.11
28.6%
EPA SALES
0.00
0.00
0.00
PENALTY CHARGES
1532.81
3624.40
11000.00
7375.60
0.0%
INTEREST EARNED
3137.57
20177.99
60000.00
39822.01
33.6%
REFUNDS & REIMBURSEMENTS
1523.00
1802.32
2000.00
197.68
0.0%
OTHER
19478.00
19959.00
2000.00
- 17959.00
998.0%
TOTAL
233563.29
596758.87
2146500.00
1549741.13
27.8%
EXPENSE REPORT - WATER
SEWER /FUND
REFUSE 40721.80 142424.50 411438.00 269013.50 34.6%
A&ATER 112574.35 170140.51 853683.00 683542.49 19.9%
:WER 197884.07 337895.66 1805816.00 1467920.34 18.7%
'ASIE TREATMENT PLANT CONSTRUCT. 15861.76 23519.76 0.00 - 23519.76
TOTAL 367041.98 673980.43 3070937.00 2396956.57 21.9%
11
RETAIL "ON SALE"
�btdtc of Aill11t5ow,
COU.rTl- OF Leod_, „,_,., .... .. .. _..,._L7 ty. .. ..OF ............... .)IUt.cil.lnson
.. .......... ........._. _. ... _._..
To the _._.... City ........ ... Council ..............of the ....... City ........... ........ ....... of...... Rutchinson .... .........
State of A"Resota:
Hutchinson Tr&Ye-}ers Baseball Assn.
._._.._ ___ __._._....... _. ............. .............. ...._........._. _._.._
hereby aPPI i BS or a license for the term, of....
from the __...'!” .........day of... /Y,l a..l . _.._. _.., 19....ti f to ni!
At Retail Only, Non - Intoxicating Malt Liquors,
ua the same are drilned by law, for consumption "ON" tlwee certain premises in the _........_. ......... _. ......
. _
_._ ..........City .._._... _...._. ........._._..oj .Hutchinson ..
d"mbrd as /ollaws, to-wit:... _._._.... ......... _ .... ....... ... ......... ._.... ._ __.....
Concession Stand
L��tr�ack
Ve_�v -�awi ili�rnor�a1 tY��k..
at which place sail applicant_... operate sthe b+"iness of
and to that end represent _. and elate, .... as follows
That said apelicant._.....1 s a _.. ....... ........- .......eilisen _..... of the United States; of good moral clwracter
.......... _ .
and repute; and hn _ attained the age of $1 years; that ..... ........ _.... ...... .... ._ ... .... ........ ......._.... proprietor the
est,,Ni.vluuent for which the license will be issued d/ this application is grantrd.
That na n+annfacturer of such rain- intoxieatdng malt liquor has any ownership, in whole or in part,
in said business of said applicant ..._. or any interest therein;
That said applicant. make application pursuant and subject to all the laws of the Slate of
.lfinnesota and the ordinances and regulations of said......_..... C7 ty............. ........................_............_..... ........................._.....
upplicable thereto, whi. -A nee hereby made a part hereof, and hereby agree......to observe and obey the sane;
........... .. ... ......... ....._ .......... _ ..... _ ... ._......._.
_.. INO..u4 gM..vaW,vm.vta lt •__..._...._...... _....... ..............._.......
ur. a but nvvlvuay.)
Recommend approval with restrictions and requi reme is as ig past.
No beer allowed to be brought into III ca Cher or bat park ntic. from o tside
Drivers license I.U. to be required for purchase 1
Beer not to be consumed off ball park area.
l% � �4Lffi Pi
Each applicant farther slates tdmt Jle is not now the holder of, nor has _/le made application for,
mw dues —he intend to make application for a Federal Retail Dealer's Special tai stamp for the sale of
urtozicallog liquor.
Dated / /. /L.G�._..nl...� ............. 18.��. L' 'G(q�y..�.� ..._..
/ _ ........ ........4........ ..-:,-::................_.... ............................
._..
.4ppiicant ...
P. 0..4ddress..._....... - _. -.
•
The Prudential /
low
Mr. Gary Plotz
City Administrator
Hutchinson, Minnesota
Dear Gary,
Charles A. Becker, CLU
Agent Emeritus and Registered Representative
Private Office
101 Park Place, Hutchinson, MN 55350
612 587 -3207
rP
This is in reference to Section 457 of the Internal
Revenue Code.
We seek authorization to offer to enployees of the City
of Hutchinson, Prudential products that qualify under
the Code.
Sincerely,
Charles A. Becker, CLU &
Paul E. Peterson, CLU ChFC.
Nat,.der
:ewer /
Pruco Secunties Corporauon. N"3 M, NJ 07101 (�
u
Is
APR 1989
RECEIVED
r iU
w
4/24/89 s °� •.�....�w�/
Dear Mr. Mayor and City Council
This letter is to express my desire to operate a
food concession in the park adjacent to Peter's during the
summer months. I believe that this could enhance many of
the events taking place there and also help me when these
events consume all of the available parking around our
restaurant. I can ensure that the portable unit will be
attractive and operated in a businesslike manner.
epectl5i �
2:
Peter's Restaurant & Lounge
� Jj-,
V,Y PARKS • RECREATION • FORESTRY
900 Harrington Street Hutchinson, Minnesota 55350
(612) 587 -2975
SENIOR CENTER CIVIC AREN.
587.8564 587.4279
TO: Mayor b City Council
FROM: Mary Haugen, Civic Arena /Pool Manager
DATE: May 4, 1989
RE: 1989 H.T.I. Picnic
Hutchinson Technology Incorporated has requested approval to rent
the Civic Arena, the Recreation Center, and Linden Park on July
15, 1989 for their annual employee picnic. The conditions and
activities are basically the same as the 1988 picnic. A total
rental fee of $800 will be charged. The attached information sheet
from H.T.I. details the activities and general information regard-
ing the picnic.
The 1988 picnic was handled quite well and supervision of activit-
ies including the dance was more than adequate. A volunteer clean-
up crew did an excellent job of keeping the facilities in good
condition. Based on this information, the Parks 6 Recreation
Board has discussed the issue and feels approval is in order.
It's my understanding that in this case, permits for alcohol are
not necessary (similar to 3M's steak frys). H.T.I. has been
informed to verify this the Police Department.
We are looking forward to once again working with the picnic
committee to help make this event a continued success.
klm
C!' 'e-
The Hutchinson Technology Incorporated Picnic Committee requests
approval for the use of the Hutchinson Civic Arena /Recreation
Facility on July 15, 1989.
HTI will be using these facilities and surrounding grounds for
the 1989 company picnic.
General information regarding this use follows:
- Interior set up and decoration will take place Friday evening,
July 14.
- Picnic hours are 11 a.m. until 4 p.m.
- Picnic activities to include:
• Meal
• Concessions
• Children's games
Family activities
• Volleyball tourney (9 -4)
Tug -of -war
Small animal petting zoo (2 -4)
- Adults only dance to run 7 p.m. to 11 p.m. using Civic Arena
only.
- Crow River Band to provide entertainment.
- HTI will allow, but not provide alcohol.
- Pop will be provided free of charge.
- No glass bottles or kegs allowed.
(Above three conditions are the same as last year.)
- HTI picnic committee to arrange for /provide clean -up for
facility and all grounds.
- HTI to pay a total of $800 for rental of the facilities:
$300 - Civic Arena
$300 - Recreation Center
$200 - Park /Grounds
(These terms agreed to by Mary Haugen.)
- HTI will not be renting the swimming pool. Picnic guests may
swim for standard charge.
- Expected attendance:
• 2,000 -2,500 for picnic
• 200 -400 for dance
- Picnic committee contacts:
• Charlene Dettmann, 587 -1959
• Wendy Sullivan, 587 -1991
WS.1 /DA/04- 28 -89 /da
l-2'
0
0
v A
utchinson tm ssembly of Ad Highway 7122 West • Route 5. Box 87
HUTCHINSON, MINNESOTA 55350
Telephone: 612- 587.2074
I-lav 1, 1 989
Citr of Hutchinson
37 Washington Avenue West
Hutchinson, MN 55350
Attn Marilyn Swanson
Dear Marilyn.
Wes Vagle, Pastor
Tom Johnson, Assistant Pastor
M►E!
BY
`e;e would like to request permission from the City Council to reserve the
bandshell in Library Square on July 16, 1989.
We would like to hold a concert open to the public starting at
7 00 PM
Sincerely.
OL wX4 el'e"l
Wesley D. eagle
Pastor
-. "V2 T
— Come kow With Us —
� —F
RESOLUTION NO. 8998
CITY OF HUTCHINSON
• RESOLUTION FOR PURCHASE
The Hutchinson City Council authorizes the purchase of the following:
ITEM
COST
PURPOSE
DEPT.
BUDGET
VENDOR
66 Doz. Softballs
3365.34
Summer Rec. Program
Rec.
Yes
qN Sports Federatic
3" Water Meter
1985.00
Resale
Water
Yes
Water Products Co.
7393 Porta Feed Jr.
1625.64
Water Treatment Chemical
Water
Yes
alco Chemical Co.
Irrigation System
11700.03
Veterans Field Sprinkler
Parks
*
iley's Sprinklers
Watermain Installation
2500.00
Veterans Field Sprinkler
Parks
Juul Contracting
Remove Fuel Tanks
1600.00
MPCA Tank Removal Guide-
Airpor
Yes
J 6 M Trucking
line
*Per Authorization of C
ty Cou
it Funding of 4/25/89 Meet
ng.
(Four Equivalent Propo
al s Rec
ived)
The following items were authorized due to an emergency need:
ITEM
COST
PURPOSE
DEPT.
BUDGET
VENDOR
Aviation Fuel (4,000 Gil)
4,538
Resale
Airport
Yes
Jayco Aviation
Date Approved:
00 tion made by:
Seconded by:
May 9, 1989
Resolution submitted for Council action
by:
�q /
RESOLUTION NO. 8998 (PAGE 2)
CITY OF HUTCHINSON
RESOLUTION FOR PURCHASE .
The Hutchinson City Council authorizes the purchase of the following:
ITEM
PURPOSE
DEPT.
BUDGET
VENDOR
Tractor Cab
nclosure
Cem.
*1.
Carlson Lake Stat.
Road Oil
eal Coating
Street
Yes
Kock Asphalt Co.
Black Top
oad Repair
T,810-ORoad
Street
Yes
Wm. Mueller $ Son
Sand f, Pea Rock
oad Repair
Street
Yes
Meeker Washed San
Well Maintenance
intenance of Well #i5
Water
Yes
LTP Enterprisesra
Trees
ibrary Square Phase III
Park
*2.
Laws Nursery Inc.
Airport g Street ,
Street/
Crack Repair
unway & Street Maintenan
e Air.
Yes
Bargen, Inc.
Drag Line Rental
1120.0
Sturges Agreement
Street
Yes
Structural Specia.
ists
*1. Capital Equipme
t Budget
additional $ from 4370
*2. Reimbursed from
Firsta
Federal
The following items were authorized due to an emergency need:
ITEM I COST
Date Approved: May 9. 1989
Motion made by:
Seconded by:
PURPOSE I DEPT. IBUDGET
VENDOR
Resolution submitted for Council action
by: 0
(612) 587 -5151
HVIIl1" CITY OF HUTCHINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
MEXID
TO: MAYOR & CITY COUNCIL
FROX: DOUG HEIER
DATE: MAY 4, 1989
SUBJECT: DISPOSITION OF 80 OCTANE FUEL TANKS LOCATED AT HUTCHINSON AIRPORT
CL January 30, 1989, the Airport Commission established a list of goals to be
accomplished during 1989. One of the goals was the removal of the underground
80- octane fuel tanks once the tanks were empty of fuel. After determining
that the tanks were empty they were removed by the City Crew.
The U.S. Environmental Protection Agency (EPA) has adopted regulations
concerning underground storage tanks which became effective December 22, 1988.
These regulations require certain procedures when disposing of gasoline tanks.
The procedures and cost are as indicated below and are based on the
destruction of 2 fuel tanks:
1. Remove remaining fuel, purge and cap tanks $ 420.00
2. Closure and test site for contamination 450.00
3. Destruction of both tanks 680.00
4. Transportation of tanks to destruction site 50.00
Total cost to destroy fuel tanks £1,600.00
The cost as I have outlined above covers the destruction of both fuel tanks,
but keep in mind that the test site results are still pending. Based on those
results further expenditures may be required.
A f_w weeks ago, the City received from their insurance company an estimate of
expenditures required for underground tanks. They indicated a cost of
b_tween £600 to $1,000 per tank for insurance cost and £1,000 to $1,500 cost
to test ground around tanks to determine if there were any leaks. Eas_d en
-•_3e estimated costs, had the tanks remained in the ground, the City couli
anticipated costs between $3,200 and £5,000 for the two tanks.
AL a safety precaution I had the fuel removed from the tan's and also had the
capped to prevent vapors from escaping ani pQ:' =sibiy explcdlnz.
_ = ucn iture requ` r 1_0 1Tp__.^__. C.0 tL:1r_
c'_mt ir'm bLl':'_e line #2411 of tn_. Alrp,_rt ..
-v
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car oll
muller
later, inc.
Jllllllllllllt�ineers
rc itects
land surveyors
equal opportunity
employer
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10901 red circle drive
box 130
minnetonka, minnesota 55343
612 - 935 -6901
r,1 AY 1989 N
RECEIVED
sY
May 3, 1989
Mayor and City Council
City of Hutchinson
37 Washington Avenue West
Hutchinson, MN 55350
Attn: Marilyn Swanson
RE: Filter Rehabilitation and Control System Modifications
RCM File No. 14007.01
Honorable Mayor and Councilmembers:
The initial engineering proposal on the above projects as submitted in
June of 1988 and approved by the Council in July, suggested a hourly
fee for our professional services based upon our salary cost times a
factor of 2.4 by principals and employees engaged directly on your
project. Reimbursable expenses for mileage, printing expenses, and the
Health Departments review fee would be invoiced at actual cost when
incurred. Due to the projects uncertainties and the unknown condition
of the existing equipment, an initial fee limitation of $29,000 was
suggest, subject to additional authorization for unforeseen problems.
The proposed fee was not a lump sum quotation, as provided for the
high service pumping and well No. 7 engineering service.
At the present time, our invoicing has reached this $29,000 upset limit.
We, therefore, recommend raising this limit by $4,000 to $33,000. This
increased amount should be sufficient to complete the project through
the construction phase. The City will be invoiced only for the actual
hours used on the projects. The contract documents, as approved last
week, are presently on the street with bids scheduled for receipt on
June 2, 1989.
The questions raised at last weeks Council meeting were justified and I
am sorry that I was unable to answer them at that time. Attached is a
copy of our latest invoice showing the actual invoicing to the $29,000
upset limit, no professional time has been charged to the City beyond
this amount. Additional time has been spent on this project to complete
preparation of the documents for publication but not professional fee
will be invoiced until the limit is raised.
In my review of our internal cost accounting printouts and the initial
estimated hours, two areas of excessive time appeared. The first
involves the existing cylinder operated butterfly valves on the filters.
It was originally assumed that these valves could be reused with only
the addition of new solenoid valves on the existing cylinders. Upon
closer examination, it was determined that most of the valves were in
such poor operating condition that both the operators and the valve
require replacement at this time. Additional time and effort was
expended to investigate the problems and arrive at a satisfactory
solution. Three of the valves will remain in place with new operators
and the remaining ten will be replaced in their entirety.
t-a
City of Hutchinson
May 3, 1989
Page 2
The second item of excessive hourly overrun was in the area of the
overall control system selection. In order to familiarize the City staff
with the two different control system design philosophies and the
availability of equipment, trips were made locally to three different
control manufacturers and some of their Twin Cities' installations.
During these trips, the City staff personnel and ourselves had the
opportunity to observe the ranges of equipment available, discuss
performance with the actual user operators, and reach a consensus of
the desirable control features. While these trips consumed time not
initially foreseen, the time was invaluable in solidifying the think of
your staff and our design personnel to your system's specific needs.
The proposed system will be far more satisfactory to the City's use as a
result of this additional time. Growth is being built into the system for
future expansion and enhancement.
We encourage your prompt review to this request to enable the project
to continue without delay.
You uly,
Charles S. Barger, P.E.
RIEKE CARROLL MULLER ASSOCIATES, INC.
CSB /jj
c: Randy DeVries, City of Hutchinson
0
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Rieke Carroll Muller Associates, Inc. INVOICE I
Engineers • Architects • Land Surveyors STATEMENT
REMIT TO THE I P O. BOX 130 P.O. BOX 775 ci P.O. BOX 51 171 15 5th STREET N.E.
ACiMSS CHECKEDI MINNETONKA, MN 55343 GAYLORD. MN 55334 ST. CLOUD, MN 55301 GRAND RAPIDS, MN 55744D
AtRfL ?# 1144
INVOICE N ^. 14es
J00 NO. 14001011
CITY OF MUTCMINSCN
37 wASHINGT:N AVENUE kF ST
HUTCHINSCN# wN 5515C
ATTN: KEN MERRILL
°DR: �'EMLEILITLTIC!. C= �;.GINAL %'LTE ^5
"! PR,F£SSIG =•at S ?RVI r: ��_ °E_R'Ja�Y ♦ 19c= : 0" CH zI# 19t9
PRCPESSICNAL PERSn"% `
CIVIL ENGR
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ELECTRICAL EN51
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PLUS 14C.00 Of
f declare under the penalties of law that this account, claim or demand
is just and correct and no part of it has been paid.
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19384.3T - 1#94:5.12.
TOTAL LAt3CR 3 #334.19
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3USTCTIL S 3#374. °?
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��� Rieke Carroll Muller Associates, Inc. INVOICE I
Engineers • Architects • Land Surveyors STATEMENT
REMIT TO THE P,O. 80% 130 P O. Box 776 P.O. BOX 51 15 6th STREET N.E.
ADDRESS CHECKED MINNETONKA, MN 66343 1] GAYLORD, MN 56334 C1 ST. CLOUD. MN 66301 GRAND RAPIDS, MN $5744 D
5:LLING SUMMAP.T
"N VOI:E AMOUNT
PRFVI :US INVOICES
1CTAL T7 DATE
UPSET LIMIT
ADJJSTMENT
Il trusi m
:UTS'4h31NC :%VA12E5
',C. 1421 SATE 2/24/89 21.2-
TDTAi x1.24
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4
I declare under the penalties if law th6t this account, claim or dbrna6d
is Just and correct and no part of it has been paid.
X
$IAN. ".E - llkvW
451.9�--
T2;4L THIS J22 S 2992:.61
a-;r ssmaszc
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EXPENSES
TOTAL
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3.374.57
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•41 142.25
26.259.72
1 : 182.3+
299694.29
Il trusi m
:UTS'4h31NC :%VA12E5
',C. 1421 SATE 2/24/89 21.2-
TDTAi x1.24
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I declare under the penalties if law th6t this account, claim or dbrna6d
is Just and correct and no part of it has been paid.
X
$IAN. ".E - llkvW
451.9�--
T2;4L THIS J22 S 2992:.61
a-;r ssmaszc
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T;:TSL NOW CJE S 29443.$5
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cnaarrroll
muller
Wlales, Inc.
gineers
architects
land surveyors
equal opportunity
employer
10901 red circle drive
box 130
minnetonka, minnesota 55343
612- 935 -6901
May 3, 1989
Mayor and City Council
City of Hutchinson
37 Washington Avenue West
Hutchinson, MN 55350
Attn: Marilyn Swanson
RE: Service Line Corrosion
RCM Project No. 861907 -0
Honorable Mayor and Councilmen:
6Y
FOR YOUR INFORMATION
The final test results of the copper corrosion test coupons installed last
fall have been received and reviewed by our office. These results
verify the effectiveness of the corrosion inhibitor program placed in
operation last year at the Hutchinson Water Treatment Facilities.
The test indicated a nine to one reduction in the copper corrosion
observed prior to the operation of the chemical feed equipment. A
similar reduction is observed in the influent to the waste treatment
facilities and the final sludge concentrations. Copies of the coupon
tests are attached.
RCM recommends that the City continue to maintain the Nalco 7393
corrosion inhibitor program in your potable water system. You may
wish to perform periodic coupon tests to verify the ongoing protection.
Your truly,
Charles S. Barger, P.E.
RIEKE CARROLL MULLER ASSOCIATES, INC.
CSB/ j j
Attachment
c: Randy DeVries, City of Hutchinson
"NALCO CHEMICAL COMPANY
2415 ANNAPOLIS LANE SUITE 170 1 i PLYMOUTH. MINNESOTA 55441
City of Hutchinson
37 Washington Avenue W
Hutchinson, MN 55350
Attention: Mr. Randy DeVries
Dear Randy:
March 7, 1989
UNISOLV
AREA 612 -559 -3191
mmmm
APR 10 1989
IMeYOCuMI -Ni 4r As:uiltes ile.
uox 130 Hopkins. Minn. 55343
I just received the Analytical Report for your corMsion
coupons. These coupons were put in place October 10, 1988 and
removed on January 5, 1989.
The reason for installing .these coupons was to evaluate the
effectiveness of our Nalco 7393 'corrosion inhibitor program in
Your potable water system. Corrosion rates are measured in MPY
(Mils per year) and are judged accordingly:
0 - 2 MPY Excellent.Control
2 - 5 MPY very Good Control
5 -10 MPY Adequate Control
10 -15 MPY Need Corrective Action
15+ MPY Severe System Corrosion
The coupons in your system experienced an excellent corrosion
rating of 0.9 MPY. The report also states that corrosion was
observed over more than 508 of the surface which indicates the
corrosion is not localized.
Judging from these results, I can conclude that our Nalco
program is reducing the corrosion rate in your system and
significantly reducing the amount of copper being added to the
water supply.
If you have any further questions, please feel free to give me a
call at 559 -3191.
Sincerely,
'14X—
Scott S. Budd
Sales Representative
SSB /bjh
attachment
CC: Dick Nagy
'OPVQnnfr 0F1ICI 5 nN' N'= l:l N"" NA" nvu_LL. L.IIN013 6F)501i tn2n
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9
ANALYTICAL
- LABORATORY REPORT
From:
City of Hutchinson Analysis No. M 25361
Hutchinson, MN, Date Sampled 2/ 2/88
Sample Marked: Date Received 2/ 9/88
Once - Through Potable Date Printed 2/15/88
>>> CORROSION COUPON EVALUATION <<<
COUPON METALLURGY Copper
CORROSION INHIBITOR No Treatment
PERIOD OF EXPOSURE
Starting Date of Exposure 12/30/87
Ending Date of Exposure 2/ 2/88
Total Days of Exposure 34.0
COUPON WEIGHT LOSS
Initial Coupon Weight in Grams 9.5510
Final Coupon Weight in Grams 9.2660
Total Weight loss in Mg. 285.0
Corrosion Weight Loss in Mg. 283.0
CORROSION RATE
Mils per Year (mpy) ; 8.2
Lab Comments:
>> TYPE OF CORROSION OBSERVED <<
General - Indicates that the predominant corrosion is occurring
over more than 50% of the surface.
NALCO CHEMICAL COMPANY
One Nalco Center ANALYTICAL LABORATORIES
Naperville, IL 60566 -1024 Box87
Sugar Land, TX 77478
Form 738 (3-85)
II/ Qaad�ac�ad
N A LC O �Li-J o OQCr�I�OLR] U ��pO�j
From:
City Of Hutchinson
Hutchinson, MN
Sample Marked:
Potable Water
Analysis No.
Date Sampled
Date Received
Date Printed
M 28217
l/ 5/89
1/13/89
1/26/89
i
>>> CORROSION COUPON EVALUATION <<<
>
i
I
COUPON METALLURGY Copper
CORROSION INHIBITOR 7393
i
PERIOD OF EXPOSURE
Starting Date of Exposure 10/
7/88
Ending Date of Exposure 1/
5/89
Total Days of Exposure
90.0
COUPON WEIGHT LOSS
Initial Coupon Weight in Grams
9.5750
I
Final Coupon Weight in Grams
9,5360
Total Weight loss in Mg.
39.0
Corrosion Weight Loss in Mg.
37.0
CORROSION RATE
Mils per Year (mpy) ; 0.4
Lab Comments:
>> TYPE OF CORROSION OBSERVED <<
General - Indicates that the predominant corrosion is occurring
over more than 508 of the surface.
NALCO CHEMICAL COMPANY
One Nalco Center ANALYTICAL LABORATORIES
Naperville, IL 60566 -1024
Form PS -188 Rev. 10187
Box 87
Sugar Land, TX 77487.0087
I� Qaad��aa
From:
City Of Hutchinson Analysis No. M 28219
Hutchinson, MN Date Sampled 1/ 5/89
Date Received 1/12/89
Sample Marked: Date Printed 1/20/89
Potable Water
>>> CORROSION COUPON EVALUATION <<<
COUPON METALLURGY Copper
CORROSION INHIBITOR 7393
PERIOD OF EXPOSURE
• Starting Date of Exposure : 10/ 7/88
Ending Date of Exposure l/ 5/89
Total Days of Exposure 90.0
COUPON WEIGHT LOSS
Initial Coupon Weight in Grams 9.4850
Final Coupon Weight in Grams 9.3980
Total Weight loss in Mg. 87,0
Corrosion Weight Loss in Mg. 85.0
CORROSION RATE
Mils per Year (mpy) :
0.9
Lab Comments:
>> TYPE OF CORROSION OBSERVED <<
General - Indicates that the predominant corrosion is occurring
over more than 508 of the surface.
NALCO CHEMICAL COMPANY
One Nalco Center ANALYTICAL LABORATORIES
Naperville, IL 60566.1024
Fpm PS-108 Rev. 10187
Box 87
Sugar Land, TX 77487-0087
I( QaQ TR@jA1
NALCO U o M2 U
From:
City Of Hutchinson Analysis No. M 28220
Hutchinson, MN Date Sampled l/ 5/89
Sample Marked: Date Received 1/12/89
Potable Water Date Printed 1/20/89
>>> CORROSION COUPON EVALUATION <<<
T
COUPON METALLURGY Copper
CORROSION INHIBITOR 7393
PERIOD OF EXPOSURE
Starting Date of Exposure 10/ 7/88
Ending Date of Exposure l/ 5/89
Total Days of Exposure 90.0
COUPON WEIGHT LOSS
Initial Coupon Weight in Grams 9.5900
Final Coupon Weight in Grams 9.5090
Total Weight loss in Mg. 81.0
Corrosion Weight Loss in Mg, 79,0
CORROSION RATE
Mils per Year (mpy) ;
0.9
Lab Comments:
» TYPE OF CORROSION OBSERVED <<
General - Indicates that the predominant corrosion is occurring
over more than 508 of the surface.
NALCO CHEMICAL COMPANY
One Nalco Center ANALYTICAL LABORATORIES
Naperville, IL 60566 -1024
Fpm PS-108 R". 10187
Box 87
Sugar Land, TX 77487-0087
CC:JMH,/
AddPrSte: X25 Time: Std 0:07, Add 0:00, Tot 0:07
L�ILIUL�L�U U D�Lti1L,
NALCO 16 ° MLrTOW IJ ERP V
From:
City of Hutchinson
Hutchinson, MN
Sample Marked:
Potable Water
Analysis No.
Date Sampled
Date Received
Date Printed
>>> CORROSION COUPON EVALUATION <<<
COUPON METALLURGY Copper
CORROSION INHIBITOR 7393
PERIOD OF EXPOSURE
Starting Date of Exposure 10/ 7/88
Ending Date of Exposure l/ 5/89
Total Days of Exposure 90.0
COUPON WEIGHT LOSS
Initial Coupon Weight in Grams 9.6600
Final Coupon Weight in Grams 9.5850
Total Weight loss in Mg. 75.0
Corrosion Weight Loss in Mg. 73.0
CORROSION RATE
Mils per Year (mpy) 0,8
Lab Comments:
>> TYPE OF CORROSION OBSERVED <<
M 28218
l/ 5/89
1/20/89
2/ 1/89
General - Indicates that the predominant corrosion is occurring
over more than 508 of the surface.
NALCO CHEMICAL COMPANY
One Nalco Center ANALYTICAL LABORATORIES
Naperville, IL 60SW1024
Form PS-108 Rev. 10187
Box 87
Sugar Land, TX 77487 -0087
(612) 587 -5151
ITY OF HUTCHINSON
VASHING TON AVENUE WEST
:HINSON, MINN. 55350
M E M 0
DATE: May 4th, 1989
TO: Mayor and City Council
FROM: City Engineer
RE: T.H. 15 South
Left Turn Lane Plan
I will present the left turn lane plan completed by the State for review
and comments at the meeting.
0
MVP /pv
W,
Marlow V. Priebe
City Engineer
7—
Hutchinson Community Development Corp. 0X
587 -7500
y 0
In y ot'V�"
O: City Council
FROM: HCDC Finance Committee
0
45 Washington Ave. East
Hutchinson, Minnesota 55350
SUBJECT Sale of New Dimension Plating (NDP) loan to Community Reinvestment Fund (CRF)
Some time ago CRF approached all communities with public fund loans to businesses obtained from State
and Federal dollars, to purchase these loans. Upon further investigation and a review by CRF of the city's
loan portfolio, they extended an offer to purchase the NDP loan.
The purchase of this loan by CRF in no way changes any of the drys relationship with NDP, or its desire to
work with NDP in helping to maintain a successful business in saving and increasing additional jobs. Also,
nothing changes with the bank of record.
Having the money up front would give an opportunity of helping another project if one should be available
in the future.
Enclosed with this memo is the Finance Committee Minutes recommending sale to CRF, Exhibit A
outlining the Purchase Summary, Basic Facts Relative to Discounting of New Dimension Plating Loan,
Qualified Seller Agreement (being reviewed by City Attorney), and Lending Capacity Analysis.
To date NDP has repaid principal and interest amounting to $55,205". The loan was for 12 years at S%
interest and there are 9 years remaining. Total was for $150,000.00
"' of which $24,495.00 is principal.
9
FINANCE COMMITTEE
HCDC
MONDAY, MAY 1, 1989, 7:30 AM
CHAMBER MEETING ROOM
MEMBERS PRESENT
DuWayne Peterson, Chairman
Glenn Matejka, Bd. Rep.
Dick Burgart
Brent Schmeling
Mark Erickson
Gregg Sainsbury
Jim Young
Gary Plotz
MINUTES
Meeting was called to order by Chairman Peterson.
OTHERS PRESENT
John Bernhagen
After discussion and a review of facts presented by Dick Burgart, Matejka moved,
seconded by Burgart and carried to recommend to the City Council that they enter into
an agreement with Community Reinvestment Fund, a non - profit corporation, to
purchase the loan the city has with New Dimension Plating, Inc., subject to review by
the City Attorney regarding recourse and other input in general.
Meeting adjourned at 8:15 AM.
I�
•
01
0
0
\J
QUALIFIED SELLER AGREEMENT
BETWEEN THE
COMMUNITY REINVESTMENT FUND, INC.
THE CITY OF HUTCHINSON, MINNESOTA
April 21, 1989
QUALIFIED SELL$R AGREEMENT 0
THIS AGREEMENT entered into as of April 21, 1989 between Community Reinvestment Fund, Inc., a
Minnesota nonprofit corporation ( "CRF") and the City of Hutchinson, Minnesota, a municipality located
in the State of Minnesota ( "Seller ");
WITNESSETH
WHEREAS, the Seller desires to sell to CRF and CRF desires to purchase from Seller
one or more Development Loans (as defined herein) pursuant to the terms and conditions of this
Qualified Seller Agreement as follows;
WHEREAS, the Development Loans offered for sale have not been undertaken for the
purpose of profit or gain on the part of the Seller but for the purpose of advancing the charitable goals of
the Seller or other allowable public purposes and are not investments for profit in any conventional
business sense; and
WHEREAS, the type, nature and principal amount of Development Loans to be
purchased by CRF are limited by reason of (i) the restrictions imposed upon CRF as a condition to its
status as a corporation exempt from federal income taxes under Section 501 of the Internal Revenue Code
and (ii) the ability of CRF to resell its own debt obligations, supported by Development Loans so
purchased and certain other assets, pursuant to the Secondary Market Program of CRF; and
WHEREAS, by approving this Qualified Seller Agreement the Board of Directors of
Community Reinvestment Fund hereby designates Seller to be a Qualified Seller (for the term and as
defined herein) thereby making Seller eligible to sell Development Loans to CRF from time to time solely
in accordance with the terms and conditions of this Agreement and subject to continued compliance by
Seller with the terms and conditions hereof.
NOW THEREFORE, Seller and CRF agree as follows:
Article I
DEFINMONS
ACTUAL PURCHASE PRICE shall mean the definitive purchase price for any Development Loan as
established pursuant to a Loan Purchase Agreement.
ttvHHO WER means the corporation, partnership, association, individual or other person or persons to
whom the Development Loan was made, or if such Development Loan has been assumed or assigned,
their successors.
CLOSING means the purchase by CRF and sale by Seller of all right, title and interest of Seller in and to
one or more Development Loans and Development Loan Documents pursuant to a Loan Purchase
Agreement.
COLLATERAL means all of the real property or other property, equipment, inventory, rights, revenues,
proceeds and other assets pledged, mortgaged or otherwise assigned to secure repayment of the
Development Loan. 0
DEFAULT means the occurrence of any default or event of default under or in connection with a
0
Development Loan Document, including, without limitation, the failure to pay principal of or interest on
the Development Loan as and when due.
DEVELOPMENT LOANS means a loan for the purpose of promoting, retaining or maintaining
employment; supporting, maintaining, improving or revitalizing the economic or physical infrastructure
of the community, providing or improving affordable housing; promoting economic growth; or otherwise
financing property or activities used or useful in connection with any such purpose.
DEVELOPMENT LOAN DOCUMENTS means the loan agreement, lease agreement or other
instrument pursuant to which funds have been advanced by or on behalf of the Seller or some other lender
to or for the benefit of a Borrower together with any note or other instrument issued in connection
therewith and any mortgage, security agreement, pledge agreement, assignment of rents and leases,
guaranty or other document securing or supporting the Borrower's obligations thereunder.
ESTIMATED PURCHASE PRICE shall mean the estimated purchase price for any Development Loan
as provided in Section 6 of Article III hereof.
LOAN means the obligation of a Borrower to repay money borrowed, together with interest thereon at a
stated rate, as evidenced by a note, lease, loan agreement or other similar instrument, together with any
applicable participation agreement or certificate with respect thereto.
LOAN FILE means the file maintained and/or compiled by a Seller with respect to a Development Loan
including, at a minimum, the documents, information and other materials described in Article IL
paragraph (L).
LOAN PURCHASE AGREEMENT shall mean the agreement or agreements by such name pursuant to
which specific Development Loans are identified for sale to CRF, the Estimated Purchase Price and
Actual Purchase Price thereof is established and a Closing is scheduled.
SECONDARY MARKET PROGRAM shall mean the program of CRF pursuant to which from time to
time it shall raise or cause to be raised funds by selling debt obligations, certificates of participation or
other instruments or securities for the express purpose of applying such funds to purchase Development
Loans from Qualified Sellers pursuant to Loan Purchase Agreements and in connection with which CRF
or its assigns will pledge such Development Loans and, if any, other designated assets or funds to secure
the debt obligations.
SERVICER shall mean a bank, financial institution or other person, which may include CRF or any
Qualified Seller approved by CRF for such purpose, which is designated by CRF as a Servicer of one or
more Development Loans.
2-
Article II 0
ELIGIBILITY OF DEVELOPMENT LOANS FOR PURCHASE
Section 1. The Seller
Seller represents and warrants that it is one of the following: (i) a 501(c)(3) local economic development
organization, (ii) an organization whose Development Loans were made for Section 501(c)(3) charitable
purposes (Section 170(b)(1)(A)(vi) organization), or (iii) a unit of federal, state, county or municipal
government, or a duly constituted agency thereof (Section 170(b)(1)(A)(v) organization) that focuses its
lending activities at economically distressed or declining areas, disadvantaged persons, neighborhood or
community revitalization, or other Section 501(c)(3) charitable purposes.
Section 2. Secondary Market Program Development Loan Requirements
The Secondary Market Program being undertaken by CRF requires that all Development Loans have
common characteristics. In consideration of CRFs willingness to consider Development Loans identified
and offered from time to time by Seller to CRF, Seller hereby represents, warrants and covenants that
each Development Loan offered by Seller to CRF shall comply with the following requirements. In
addition, by execution and delivery of a Loan Purchase Agreement as to any Development Loan, the
Seller shall be deemed to represent, warrant and covenant that each such Development Loan complies
with each and every requirement set forth below.
A. Origination. Each Development Loan shall have been closed in the Seller's name as
lender or validly assigned and endorsed to Seller as a holder in due course and Seller owns all right, title
and interest to and in the Development Loan and Development Loan Documents being sold. Whether
Seller or any other entity originated or packaged the Development Loan shall not in any manner qualify
or condition Seller's representations and warranties to CRF.
B. Term, Loan Now Current. The Borrower has raised no defenses to payment of the
Development Loan and, unless otherwise disclosed to and approved by CRF in writing, the Development
Loan shall have been originated and commenced amortization at least 12 months prior to the date of
Closing, the Borrower shall have remained current in all payments since the Development Loan was
originated and no fees connected with the closing of the Development Loan shall remain unpaid. In
addition, all sums to be advanced under the Development Loan Documents shall have been advanced to
the Borrower and the Development Loan Documents do not contain any mandatory future advance
clause.
C. Compliance with Law. All requirements of all federal, state and local laws, rules and
regulations of whatever kind, nature or origin applicable to the Development Loan and the transaction
relating thereto, including without limitation, truth -in- lending, flood control, real estate settlement
procedures, usury, consumer protection disclosures and equal credit opportunity laws shall have been
fully complied with; the Development Loan and Development Loan Documents shall not be in violation
of any such laws, rules or regulations; and any right of rescission in relation to the Loan under such taws,
rules or regulations shall have expired
D. Valid Lien or Financing Statement; Not Modified. The Development Loan shall be
secured by a valid and perfected lien on the Collateral in the manner and with the priority intended by the
Development Loan Documents, a copy of the most recent Financing Statements with respect thereto shall
have been furnished to CRF, the Development Loan and Development Loan Documents shall be legal,
valid and binding obligations of the Borrower, enforceable in accordance with their respective terms and
conditions, and free from any right of set off, counterclaim or other claim or defense; no part of the
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. Collateral shall have been released from the Development Loan Documents unless expressly consented to
by CRF in writing, no guarantor shall have been released; the terms of the Development Loan shall have
not been modified, amended, or in any way waived or changed unless disclosed to and approved by CRF in
writing.
E. No Unknown Adverse Circumstances. The Col- lateral shall be undamaged by fire,
windstorm or other casualty and there shall not be pending or threatened any proceeding in eminent
domain or condemnation with respect to all or any part of the Collateral. There shall be no
circumstances or conditions with respect to the Development Loan, the Collateral or the credit standing
of the Borrower, which adversely affects the expectation of repayment of the Development Loan in full, as
and when due except to the extent previously disclosed to and approved by CRF in writing.
F. Title to Collateral. To the best of Seller's information and belief, after the exercise of
due diligence, the title to, serial numbers of, and other rights of possession of or identification of
Collateral, shown in the Development Loan Documents shall be as therein described.
G. Plat or Survey. For each Development Loan for which real property has been
pledged as Collateral, Seller shall possess a survey certified to Seller as accurate (such as the type normally
included with a mortgage title insurance policy) for such real property showing the boundaries,
improvements, setback lines, easements, and encroachments onto or off of the Collateral, or equivalent
documentation in accordance with prudent lending practices.
H. Perfection of Security Interest. Any and all actions required to perfect the security
interest in the Collateral, including without limitation, recordation (and/or registration or re- registration
or re- filing) and notification to prior lienholders (with a recorded request for notice of default where
required), shall have been validly and duly completed.
I. Insurance. There shall be in full force and effect hazard and comprehensive insurance
policies with such terms and amounts as are carried by businesses of like type and character to the
Borrower, issued by reputable carriers licensed to offer such insurance in the jurisdiction in which the
Collateral is located and sufficient in type, amount of coverage, and endorsed to protect Seller's and
CRFs interests, as may be or become applicable.
J. Payment Records. Seller or its agent shall have maintained accurate records,
prepared in accordance with generally accepted accounting principles consistently applied, reflecting all
receipts and disbursements as to each Development Loan and all funds received, retained, administered
and /or disbursed in accordance with all laws, rules, regulations and contracts relating to loan or escrow
funds.
K Loan Not in Default. There shall be no Default or delinquency under the terms and
conditions of the Development Loan or the Development Loan Documents nor shall any event have
occurred to the knowledge of Seller which, with the passage of time, the giving of notice or both, shall
become a Default under any of the Development Loan Documents.
L Loan File. Seller shall have maintained a loan file containing all pertinent
information, notices, documents, correspondence, etc., relating to such loan; and upon sale to CRF, each
such file shall be delivered to CRF or its designated agents at Closing. (Refer to Exhibit 1 for checklist.)
The Seller shall make such Loan File available to CRF, its agents, assigns and representatives, and any
prospective purchaser of the obligations sold in connection with the Secondary Market Program, and any
agents or representatives thereof at or prior to closing.
• M. Most Recent Financial Information. For each Development Loan, to the best of its
knowledge Seller shall have provided to CRF the most recent, complete and accurate financial statements
of the Borrower, and where applicable, of any guarantors thereof.
4-
N. No Omissions or Misstatements. Nothing shall have come to the attention of the
Seller which would cause it to believe that the loan file described in (L) above and other information
furnished to CRF for a Development Loan may contain any untrue statement of material fact or may omit
to state a fact which, under the circumstances, would be material in connection with CRFs determination
to purchase such Development Loan either at the price agreed to or otherwise.
O. Compliance with Qualified Seller Agreement. Acceptance of the purchase price of
any Development Loan by the Seller at Closing shall constitute a representation by Seller as of the date of
Closing that such Development Loan complies with all requirements of this Qualified Seller Agreement
and a reiteration, ratification, reaffirmation of the warranties, representations and covenants herein set
forth and such warranties, representations and covenants shall survive the Closing.
The representations, warranties, covenants, indemnities, agreements and other statements of the Seller
and its officers and authorized representatives set forth in or made pursuant to this Agreement for any
Loan Purchase Agreement and any related documents shall remain operative and in full force and effect
regardless of any investigation or statement as to the results thereof made by or on behalf of CRF or the
underwriters for the Secondary Market Program or any controlling person and will survive delivery of and
payment of the purchase price of any Development Loan.
Section 3. Seller Authorized to Sell Development Loans
Seller shall be the sole owner of the Development Loan or shall have received written permission to sell
all of its right, title and interest in and to the Development Loan and Development Loan Documents
from all parties whose consent is required, if any, and has full right, title and legal authority, and shall
have duly taken all required action and obtained any and all consents and approvals required to sell,
transfer, and assign the Development Loan and Development Loan Documents to CRF free and clear of
all claims or encumbrances of any type.
The Qualified Seller Agreement, each Loan Purchase Agreement and any related documents and any
attachments thereto shall have been duly authorized by passage of a formal resolution by the governing
body of Seller (a sample of which is attached hereto as Schedule II), shall be duly executed and delivered
by Seller, and shall be the legal, valid and enforceable obligation of Seller in accordance with its terms;
and compliance by Seller with the terms and conditions of this Qualified Seller Agreement, each Loan
Purchase Agreement and any related document shall not conflict with, result in a breach of or default
under, or be adversely affected by any terms and conditions applicable to or statutes governing Seller, the
charter or bylaws of Seller, or of any agreement or instrument to which Seller is a party, or any judgment,
order, or regulation to which Seller is subject. Seller shall at all times be a Qualified Seller of
Development Loans to CRF under the requirements set forth in this Qualified Seller Agreement and any
Loan Purchase Agreement.
Section 4. CRF Authorized to Purchase Loans; Qualified Seller Agreement Authorized
CRF hereby represents, warrants and covenants with Seller that (i) CRF has full legal authority and has
duly taken all required corporate actions and has obtained any required consents or approvals required to
enter into this Qualified Seller Agreement, (if) this Qualified Seller Agreement and any attachments
hereto have been duly authorized, executed and delivered by CRF, and is the legal, valid and enforceable
obligation of CRF in accordance with its terms; and (iii) compliance by CRF with the terms and
conditions of its Qualified Seller Agreement will not conflict with, result in a breach of or default under,
or be adversely affected by any terms and conditions of the charter or bylaws of CRF, or of any agreement
or instrument to which CRF is a party, or any judgment, order, or regulation to which CRF is subject.
0
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Article III
MOM lt ii. . .0y
Section 1. Invitation
From time to time CRF shall invite Qualified Sellers and other organizations which may be eligible to be
designated Qualified Sellers to identify and submit Development Loans to CRF for purchase. This
Qualified Seller Agreement has been approved and executed in connection with such an invitation.
Notwithstanding such invitation, CRF shall only be obligated to purchase Development Loans from time
to time pursuant to a Loan Purchase Agreement and, in such event, subject to any and all terms
limitations and conditions set forth therein.
Section 2. Loan Evaluation
Seller shall identify each Development Loan that it desires to sell, if any, and shall permit CRFs staff or
agents to review the complete Loan File for such Development Loan and any other information
pertaining thereto as described in Article II, Section 2 of this Agreement.
Section 3. Site Visits
When requested by CRF or its agents, Seller shall arrange visits to the premises of the Borrower or any
guarantor at its principal place of business and, if at a different site, at the location of the Collateral. Such
site visit shall be for the purposes of enabling CRF or its agents, where applicable, to inspect the
Collateral, to interview the Borrower and any guarantor, and to otherwise become familiar with the
business affairs of the Borrower and any guarantor.
Section 4. Presentation to CRF Loan Purchase Advisory Committee
A Confidentiality of Information Presented to Loan Purchase Advisory Committee.
Seller shall permit CRF to present information on each Development Loan, including but not limited to
financial information, proprietary product information or other information which the Borrower may
otherwise consider confidential, to CRFs Loan Purchase Advisory Committee. CRF shall exercise good
faith efforts to endeavor to protect any confidential information presented to CRF or CRFs Loan
Purchase Advisory Committee.
B. Recommendations by Loan Purchase Advisory Committee. The Loan Purchase
Advisory Committee shall make recommendations to the CRF Board of Directors as to the advisability of
purchasing each Development Loan presented to it as well as any adjustment in the price to be offered for
each Development Loan provided, however, the CRF Board of Directors shall be solely responsible for
authorizing the execution of any Loan Purchase Agreement by CRF.
Section 5. Purchase Offer
Upon approval of its Board of Directors, CRF shall offer to purchase development loans by executing and
delivering to Seller a Loan Purchase Agreement (a sample of which is attached hereto as Schedule VI).
The terms and conditions set forth in the applicable Loan Purchase Agreement together with the terms
and conditions contained herein, shall govern the purchase of any specific Development Loan by CRF
from Seller.
Section 6. Purchase Price
IsA. Estimated Purchase Price. The Loan Purchase Agreement shall specify an Estimated
Purchase Price and shall contain provisions for establishing an Actual Purchase Price.
M
B. Actual Purchase Price. On the date of Closing CRF shall determine the Actual
Purchase Price which shall be paid for each Development Loan. The Actual Purchase Price shall be
determined by calculating:
(1) The Market Value of a Development Loan which shall be the present value of such
Development Loan determined by application of a discount rate derived by CRF from
the then current spread above United States Treasury Bills necessary in the judgment of
CRF and its underwriter for the Secondary Market Program to produce adequate cash
flow to pay debt obligations issued thereunder as and when due.
(2) A transaction fee which shall be a sum not to exceed 600 basis points (which amount
may be specified with more precision in a Loan Purchase Agreement); and
(3) The Credit Reserve Retainage which shall be determined based on the risk rating of
each Development Loan as determined by CRF, its Loan Purchase Advisory Committee
and the underwriter for the Secondary Market Program.
The Actual Purchase Price shall then be finally determined according to the following
formula:
Market Value (as determined on the date of closing)
- Transaction Fee
- Credit Reserve Retainaae
Actual Purchase Price
C. Seller's Rights if Actual Purchase Price is Less Than Minimum Estimated Purchase
Price. For each Development Loan, if the Actual Purchase Price is less than the Estimated Purchase
Price because the Market Value has declined, Seller may, at its option, decline to sell a Development
Loan and shall only pay a Processing Fee of $500 per Development Loan to CRF. If Seller declines to sell
the Development Loan for the reason stated in this paragraph, CRF shall release Seller from any and all
obligations to purchase such Development Loan under the related Loan Purchase Agreement or to
service the Development Loan for the benefit of CRF as specified in Article IV of this Qualified Seller
Agreement.
Section 7. Acceptance
Delivery to CRF of two (2) originally signed copies of a duly authorized Loan Purchase Agreement by
Seller shall constitute acceptance of a purchase offer by Seller with respect to any Development Loan
approved by the CRF Board of Directors and identified in such Loan Purchase Agreement subject in all
events to the terms hereof and of such Loan Purchase Agreement.
Section & Closing; Transfer of Loans; Documenting the Sale
The Loan Purchase Agreement shall specify a date for the Closing at which time a duly authorized and
executed assignment of Note and all other Development Loan Documents, together with all original loan
files and related documents, shall be delivered to CRF or its agents. Seller shall be responsible, at its own
expense, for completing all actions and documentation necessary to effect the sale. At Closing, Seller
shall, without limitation to the generality of the foregoing, endorse the promissory note, assign (and
satisfy any necessary recordation and /or registration requirements) of the security instruments, and notify
insurers or guarantors so as to effectuate any necessary policy or guarantee endorsement to protect CRFs
interest. In addition, at any time and at its own expense, Seller shall cause such further acts to be done as
CRF shall reasonably request in order to perfect its right, title and interest in and to the Development
Loan, including without limitation, the execution and delivery of such other documents, notices or
agreements that CRF may reasonably require to perfect, memorialize or give public notice of the
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transaction or any aspect thereof.
Section 9. Interim Servicing by Seller
Upon execution of a Loan Purchase Agreement by Seller and continuing until the earlier of (a) the
Closing; (b) the date on which the Loan Purchase Agreement has expired; or (c) the date on which Seller
has been released from complying with the terms and conditions of the Loan Purchase Agreement, Seller
shall service and administer each Development Loan for which it has executed a Loan Purchase
Agreement in accordance with the terms and conditions set forth in Article IV hereof for the benefit of
CRF and its Secondary Market Program.
Section 10. Term, Purpose, Termination of Agreement
The purpose of this Qualified Sellers Agreement is to provide for an agreement among the parties hereto
as to the type of Development Loans to be purchased from time to time from Seller and the minimum
terms and conditions with respect to which such Development Loans must comply and remain eligible for
purchase by CRF for its Secondary Market Program. It is understood and agreed that CRF may rely upon
the warranties, representations and covenants of Seller, and the Seller's agreement to sell Development
Loans submitted from time to time pursuant hereto, to CRF, in connection with the Secondary Market
Program of CRF.
Based on the foregoing, it is the intention of CRF to sell bonds or other obligations pursuant to its
Secondary market Program to generate funds to purchase the Development Loans as provided in the
Loan Purchase Agreement(s). CRF shall be under no obligation under this Agreement or any Loan
Purchase Agreement unless funds are actually available to CRF under its Secondary Market Program to
purchase Development Loans at the Actual Purchase Price.
This Qualified Sellers Agreement shall remain in full force and effect until the last to occur of the
following (1) 60 days following receipt by either party of a written notice of intention to terminate this
agreement so long as no Development Loans have been purchased hereunder by CRF and no Loan
Purchase Agreement is then in effect; (2) payment in full of any Development Loan sold to CRF in
connection herewith (3) Seller's expenditures of the proceeds of the sale of all Development Loans
pursuant to the terms of Article V hereof and any applicable Loan Purchase Agreement, and (4)
termination hereof upon the mutual written agreement of the parties hereto.
Article IV
LOAN SERVICING AND ADMINISTRATION
Section 1. Interim Servicing of Development Loans
The Seller shall continue to service a Development Loan being sold to CRF pursuant to a Loan Purchase
Agreement to the date of Closing. As of Closing, the Development Loan shall be serviced by a Servicer
designated at the discretion of CRF. The Seller shall report to CRF at least monthly, and more frequently
if requested by CRF, as to the status of any Development Loan, including the principal amount
outstanding, any interest accrued and unpaid and the existence of any Default existing under or with
respect to the Development Loan Documents.
Section 2. Reports
The reports required by Section 1 of this Article may be provided on forms prescribed from time to time
by CRF.
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Article V
OTHER PROVISIONS
Section 1. Reuse of Proceeds
A. Segregation of Proceeds. Each Qualified Seller which sells a Development Loan
shall covenant and agree that substantially all of the proceeds (i.e. at least 95 %) from the sale of a
Development Loan to CRF shall be used solely to fund new Development Loans and that no more than
five percent of such proceeds shall be used for administrative expenses in connection therewith. In
furtherance of such covenant and agreement, each Qualified Seller shall segregate such proceeds (less any
amounts required to be paid to the Federal government, State or other organization which may have
initially provided moneys used to fund the Development Loan purchased by CRF) in an account, separate
and apart from any other funds of the Seller, at a commercial bank or by establishing a seperate fund or
account on the Seller's books, and shall file annual reports with CRF as to any disbursements therefrom.
B. Proceeds Not to be Used for Operating Expenses. In addition to the foregoing each
Qualified Seller shall certify and agree that no such proceeds derived from the sale of development loans
to CRF shall be used for general operating expenses of the Qualified Seller or for public infrastructure
improvements which are not directly and integrally related to specific improvements or activities of a
revenue producing enterprise which also is receiving financial assistance from the Qualified Seller in the
form of a Development Loan, either funded with moneys derived from the sale of one or more
Development Loans to Seller or otherwise.
Section 2. Optional and Mandatory Repurchase/Replacement of Development Loans
A. Optional Repurchase/Replacement of Development Loans. At the option of and
with the mutual agreement of CRF and Seller to be provided in the Loan Purchase Agreement as to any
specific Development Loan, without limitation to or exclusion of any other rights or remedies CRF may
have at law or in equity or under the terms of the Qualified Seller Agreement, upon the occurrence of any
Default relating to any such Development Loan, CRF shall have the right to require Seller to repurchase
or replace any or all Development Loans so in Default in the manner and in accordance with the
provisions set forth below.
B. Mandatory Repurchase/Replacement of Development Loans. If, as for any
Development Loan purchased by CRF from Seller, any of the warranties and representations of the Seller
are in fact untrue in any respect or if Seller fails to comply with any provision of the Loan Purchase
Agreement or this Qualified Sellers Agreement, then CRF may, in its sole option and discretion, tender
any such Development Loan to Seller for repurchase by Seller in the manner and in accordance with the
provisions set forth below.
C. Repurchase Price. The Seller shall, within ten days after the date of tender of such
Development Loan by CRF pursuant to A or B hereof, pay to CRF the same percentage of the unpaid
principal balance of the Development Loan as tendered that CRF paid to the Seller in connection with
the original purchase of such Development Loan, with adjustments for interest and any comparable items
at the time of repurchase and together with reimbursement to CRF for the aggregate amount of any
advances and court costs, or other expenses that may have been incurred by CRF in connection with such
Development Loan and the tender thereof.
PZ
11
Section 3. Reports
A. Initial Portfolio Summary. The Seller agrees that prior to the sale of its first loan to
CRF, Seller shall provide a portfolio summary on the form attached to this agreement as Schedule IV
attached hereto.
B. Annual Report to CRF. Seller also agrees to provide an annual report to CRF
containing at least the following information: (a) a description of how loan sale proceeds have been used,
e.g. new loans made, types of projects financed, jobs created, etc.; (b) a summary of the performance of all
loans in the Seller's portfolio over the preceding calendar years on the form attached to this Agreement as
Schedule IV. Except for the Initial Portfolio Summary, during the period that this Qualified Seller
Agreement is in force, Seller shall submit the portfolio summary as part of its annual report to CRF; (c)
any other information, including photographs of projects financed from loan sale proceeds, that the Seller
deems appropriate. CRF intends to use the information provided in the annual reports as a basis for
fundraising and reporting to contributors and investors in the Secondary Market Program. Reports shall
cover the preceding calendar year and shall be submitted to CRF not later than April 1 of each year.
C. Interim Servicing Reports. Seller shall submit monthly the interim servicing reports
described in Article IV, Section 1 of this Agreement.
Article VI
DEVELOPMENT LOAN CLOSING PROCEDURES
Section 1. CRF Disbursement Procedure- -Loan Proceeds
CRF will disburse the purchase price of a Development Loan in accordance with the following: Checks
issued or wire transfers for the purchase price of a Development Loan will be made payable to the Seller
or a designated payee as authorized on the Payment Instruction Authorization attached hereto as Exhibit
(4). Generally, the Payment Instructions Authorization will be completed by Seller and is to be executed
and returned upon execution of this Agreement. In the event that the Seller wishes to change its payment
instructions, a new Payment Instructions Authorization must be executed and forwarded to CRF.
Section 2. Delivery With Complete Documentation
Seller shall make delivery of Development Loans by submitting loan packages by certified mail on or
before the date specified in the Loan Purchase Agreement in the manner specified in this Section 2.
Each Development Loan submission package should be checked against this Section 2. CRF has also
provided a checklist as Schedule I which may be used by the Seller to assist in compliance with this
Section. A completed copy of the checklist should be submitted with each Development Loan submission
package.
All documentation must be clear and legible. The following documents, secured at the top by a prong
fastener (on the right side of a legal -sized manila folder) arranged in the order listed with the first item on
top, must be forwarded to CRF. (Documents denoted by # must be originals; all other documents must
be copies.)
A. Financial Statements of the Borrower, as most recently prepared, reviewed or
compiled, as applicable.
0 B. Amortization schedule reflecting the outstanding principal and interest payments.
# C. The Note or other comparable instrument evidencing the Development Loan. The
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reverse side of the Note must bear the following endorsement signed by the Seller. 'Pay
to the Order of the Community Reinvestment Fund.'
D. Any mortgage, as recorded and as amended or supplemented to date of Closing.
# E. An assignment of the mortgage (CRF Form A -1), in recordable form.
F. A UCC -11 Search of the County and Secretary of State's office reflecting the filings
made to perfect the security interest of the Seller in the Collateral and an assignment
thereof (using the UCC -3 form) to CRF.
G. Any applicable title insurance policy.
# K An assignment to CRF (using CRF Form A -2) of all other Development Loan
Documents.
I. Copies of evidence of all required insurance coverage, containing a loss mortgagee
clause identifying CRF and requiring notice to CRF upon termination or modification
thereof.
# J. Any codents to assignments required by any of the Development Loan Documents.
Section 3. Remedies
CRF shall have the right to take one or more of the following actions in the event that the Seller submits
a Development Loan package that does not meet the requirements of this Agreement:
A. CRF may adjust the purchase price for the noncomplying Development Loan as
liquidated damages. The minimum purchase price adjustment shall be 1/2 of 1% of the original principal
balance of a Development Loan.
B. CRF may, at its discretion, cancel this Qualified Sellers Agreement or any Loan
Purchase Agreement.
C. If a Development Loan has not yet been purchased, CRF may refuse to purchase the
Development Loan. If a Development Loan has already been purchased, CRF may require that the Seller
repurchase the Development Loan for the purchase price and in the manner provided in Article V
Section 2C of this Agreement.
D. The Seller may be precluded from participation in future CRF programs.
Article VII
MISCELLANEOUS
Section 1. Notices
All communications hereunder shall be in writing and, except as otherwise provided, shall be delivered at,
or mailed or telegraphed to, the following addresses: if to CRF, to 1005 Foshay Tower, 821 Marquette
Avenue, Minneapolis, Minnesota 55402 -2903 Attention: Frank Altman; if to the Seller, addressed to it at
_, Attention:
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Section 2. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of
Minnesota.
Section 3. Parties in Interest
This Agreement shall be binding upon and shall inure to the benefit of CRF and Seller, shall be for the
benefit of investors in the Secondary Market Program and the successors and assigns of CRF, Seller and
any such investors, and no other person shall acquire or have any right under or by virtue of this
Agreement.
Section 4. Time
Time shall be of the essence of this Agreement.
Section 5. Assignments
The right, title and interest of CRF in, under and pursuant hereto and in, under and to the Development
Loans and Development Loan Documents shall be assignable to any entity formed, sponsored or
controlled by CRF for the purpose of the Secondary Market Program and any trustee, agent, fiduciary or
investor therein or therefor.
Section 6. Counterparts
This Agreement may be executed in any number of counterparts.
Section 7. Survivability
The covenants, representations and warranties contained in this Agreement shall survive the purchase,
sale, and delivery of any Development Loans.
CITY OF HUTCHINSON (Seller)
Un
And By:.
• DATED: _ 1989
COMMUNITY INVESTMENT FUND, INC.
U3
Its:
And By:
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0
SCHEDULES ATTACHED TO THE QUALIFIED SELLER AGREEMENT
Checklist
II. Sample Resolution Authorizing Sale of Loan by Seller's Governing Body
III. Payment Instructions Authorization
IV. Portfolio Summary
V. Loan Purchase Agreement
VI. Sample Resolution Approving Sale of Loan
0
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SCHEDULEI
CHECKLIST
Seller shall make delivery of Development Loans by submitting loan packages by certified mail addressed
to CRF as provided in Article VII hereof.
Each Development Loan submission package should be checked against this Article V, Section 21 of the
Qualified Sellers Agreement.
All documentation must be clear and legible. The following documents, secured at the top by a prong
fastener (on the right side of a legal -sized manila folder) arranged in the order listed with the first item on
top, must be forwarded to CRF. (Documents denoted by # must be originals; all other documents must
be copies.)
A. Financial Statements of Borrower, as most recently prepared, reviewed orcompiled,
as applicable.
B. Amortization schedule reflecting the outstanding principal and interest payments.
# C. The Note or other comparable instrument evidencing the Development Loan. The
reverse side'of the Note must bear the following endorsement signed by the Seller: "Pay
to the Order of the Community Reinvestment Fund."
D. Any mortgage, as recorded and as amended or supplemented to date of Closing.
# E. An assignment of the mortgage (CRF Form A -1), duly recorded.
40 F. A UCC -11 Search of the County and Secretary of State's office reflecting the filings
made to perfect the security interest of the Seller in the Collateral and an assignment
thereof (using the UCC -3 form) to CRF.
l_ J
G. Any applicable title insurance policy.
# H. An assignment to CRF (using CRF Form A -2) of all other Development Loan
Documents.
I. Copies of evidence of all required insurance coverage, containing a loss mortgagee
clause identifying CRF and requiring notice to CRF upon termination or modification
thereof.
# J. Any consents to assignments required by any of the Development Loan Documents.
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SCHEDULE II
SAMPLE QUALIFIED SELLER'S RESOLUTION APPROVING SALE OF LOAN(S) TO
COMMUNITY REINVESTMENT FUND
DATA:
Name of Qualified
Type of Seller (e.g. City, HRA, Minnesota nonprofit corporation, etc.)
Date of Adoption of Resolution:
Type of Meeting: Regular or Special
Time of Meeting:
Place of Meeting:
Members Present:
Members Absent:
Members Voting in Favor of Resolution:
Members Voting Against Resolution:
Loan(s) to be Sold;Obligor(s):
Approximate Principal Amount:
H. CERTIFICATION:
I, the undersigned, being the duly qualified and acting of the
Qualified Seller referred to above hereby certify that attached hereto as Exhibit A is a true and complete
copy of a resolution entitled "Qualified Seller's Resolution Approving Sale of Loan to Community
Reinvestment Fund' duly adopted by the governing body of the Qualified Seller identified above on the
date referred to above at a meeting duly noticed, called and held at which a quorum was present, such
resolution being duly adopted by a majority of the Board. Such resolution is in full force and effect and
has not been amended or repealed
[Insert Name of Qualified Seller]
By:
Its:
Date: 1989
Mis
0
0
Exhibit A
QUALIFIED SELLER'S RESOLUTION APPROVING SALE OF LOAN TO COMMUNITY
REINVESTMENT FUND
RECITALS
WHEREAS, the Qualified Seller described on the cover sheet hereof (the "Qualified
Seller ") is authorized and empowered to sell the loan described on the cover sheet hereof (the 'Loan") to
Community Reinvestment Fund, Inc., a Minnesota nonprofit corporation and /or its assigns ( "CRF"); and
WHEREAS, the Qualified Seller has heretofore entered into the Qualified Seller
Agreement identified on the cover hereof, and
WHEREAS, on this date, this governing body has received a proposed Loan Purchase
Agreement and has been advised of the estimated purchase price which CRF is willing to pay for the
Loan;and
WHEREAS, Qualified Seller deems the sale of the Loan to CRF pursuant to the
proposed Loan Purchase Agreement to be in the best interest of the Qualified Seller;
NOW, THEREFORE, BE IT RESOLVED by the governing body of the Qualified Seller as follows:
1. The sale of the Loan to CRF pursuant to the Loan Purchase Agreement is hereby authorized and
approved.
2. The and of the Qualified Seller shall be authorized to execute,
deliver and perform the Loan Purchase Agreement and any assignment, agreement, instrument, certificate
or other document contemplated by the Loan Purchase Agreement in order to effectuate the sale of the
Loan to CRF pursuant to the Loan Purchase Agreement.
3. The Loan Purchase Agreement shall be in substantially the form approved hereby, but with all such
changes therein not inconsistent with law as shall be approved by the officers authorized to execute and
deliver the same, including any final purchase price established pursuant to such Loan Purchase
Agreement, which approval of any such changes by such officers shall be conclusively evidenced by the
execution thereof.
4. CRF shall be entitled to rely upon the due adoption of this Resolution and the approval of the sale of
the Loan and this Resolution shall continue in full force and effect and shall be binding upon the
Qualified Seller unless CRF is notified in writing by certified mail, return receipt requested, addressed to
CRF as follows:
Community Reinvestment Fund 1005 Foshay Tower 821 Marquette Avenue Minneapolis, Minnesota
55402 Attention: President
and such notice of revocation or amendment of this Resolution shall not be effective against CRF or any
person relying upon a certified copy of this Resolution until fourteen (14) days following receipt of such
notice by CRF in the manner described herein.
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SCHEDULE III
PAYMENT INSTRUC'T'IONS AUTHORIZATION
This form must be completed for each application- commitment agreement reviewed by CRF. Choose the
one method of payment which you wish to use in receiving loan settlement funds under the CRF
Secondary Market Program. This authorization must be signed by an appropriate officer Payment
Contact Person.
FOR CRF USE ONLY
Lender Name
Lender I.D.
Servicer I.D.
Seller's Address:
Organization:
Street:
City: State: Zip:
Telephone:
Method of Payment: (Please check one)
CHECK to above address
or
CHECK to:
Bank Name
Street Address
City/State/Zip
tr
WIRE to:
Signature:
Account Number
Payee Bank(Name of Institution)
State Tax I.D. Federal Tax
-17-
Date
0
Total Loans
in Portfolio
Total
Delinquent
Loans
Period of
Delinquency
30 -59 days
60-89 days
90+ days
In Foreclosure
0
SCHEDULE IV
PORTFOLIO SUNASARY
FYE:12/31/86 FYE:12/31/87 FYE:12/31/98
Outstanding Outstanding Outstanding
No. Balance No. Balance No. Balance
I"
I"
SCHEDULE V
SAMPLE RESOLUTION APPROVING QUALIFIED SELLER AGREEMENT WITH
COMMUNITY REINVESTMENT FUND
I. REFERENCE DATA:
Name of Qualified Seller:
Type of Seller (e.g. City, HRA, Minnesota nonprofit corporation,
Date of Adoption of Resolution:
Type of Meeting: Regular or Special
Time of Meeting:
Place of Meeting:
Members Present:
Members Absent:
Members Voting in Favor of Resolution:
Members Voting Against Resolution:
II. CERTIFICATION:
I, the undersigned, being the duly qualified and acting of the entity referred to above
hereby certify that attached hereto as Exhibit A is a true and complete copy of a resolution entitled
"Resolution Approving Qualified Seller Agreement With Community Reinvestment Fund" duly adopted
by the governing body of the Qualified Seller identified above on the date referred to above at a meeting
duly noticed, called and held at which a quorum was present, such resolution being duly adopted by a
majority of the Board. Such resolution is in full force and effect and has not been amended or repealed.
[Insert Name of Qualified Seller]
By:
Its:
Date: _ 1989
19-
0
Exhibit A
RESOLUTION APPROVING QUALIFIED SELLER SALE AGREEMENT WITH COMMUNITY
REINVESTMENT FUND
RECITALS
WHEREAS, the entity described on the cover sheet hereof desires to participate in a
program sponsored by Community Reinvestment Fund, Inc , a Minnesota nonprofit corporation ( "CRF),
pursuant to which various municipalities, development corporations, nonprofit corporations and others
who have made and /or presently own certain types of Development Loans (defined below) desire to sell
such Development Loans for the purpose of raising funds to be used for reinvestment in new
Development Loans or certain other permitted purposes; and
WHEREAS, on this date the governing body has received a form of Qualified Seller
Agreement from CRF setting forth the requirements of CRF applicable (i) to the Development Loans (as
therein defined) and (ii) to entities qualified to sell Development Loans to CRF (herein "Qualified
Sellers");
WHEREAS, this governing body deems the sale of one or more Development Loans to
CRF pursuant to the proposed Qualified Seller Agreement to be in the best interest of this body,
NOW, THEREFORE, BE IT RESOLVED as follows:
1. The entity described on the cover sheet hereof hereby determines that it qualifies as a seller of
Development Loans under the Qualified Seller Agreement and wishes to become a "Qualified Seller ".
2 The and of this body shall be authorized to execute, deliver
and perform the Qualified Seller Agreement and any assignment, agreement, instrument, certificate or
other document contemplated by the Qualified Seller Agreement.
3. The Qualified Seller Agreement shall be in substantially the form approved hereby, but with all such
changes therein not inconsistent with law as shall be approved by the officers authorized to execute and
deliver the same, which approval shall be conclusively evidenced by the execution thereof.
-20-
i
0
EXHIBIT A
PRELIMINARY LOAN PURCHASE SUMMARY PRESENTED TO
THE CITY OF HUTCHINSON, MINNESOTA
LOAN TO: New Dimension Plating Inc. CRF Loan Number 5004701
Remaining Principal as of June 1, 1989: $125,505.80
Interest Rate: 8.00%
Remaining Term: 9 years
ESTIMATED LOAN PURCHASE PRICE: $100,967.69 — I
The estimate presented here is based on current market conditions which may change between now and
the date of closing. The Actual Purchase Price will be determined on the date of closing, and payment
shall be in the form of cash and a Credit Reserve Retainage which is an agreement to reimburse Seller a
portion of the Seller's Surplus under certain circumstances as described in Section 9 of the Loan Purchase
Agreement subject to various assumptions and conditions, including no default by the Borrower. The
right to be reimbursed out of the Seller's Surplus, which may be forfeited as provided in Section 9 of the
Loan Purchase Agreement, has been mutually agreed to be valued as three (3) percent of the remaining
principal balance of the Loan based on the risk associated with the particular loan.
Cash:
$97,202.51
Discount for Credit Reserve Retainage:
$3,765.17
Total:
$100,967.69
MARKET CONDITIONS
Current market conditions require that this loan yield between 175 and 350 basis points above the most
current Treasury Bond Yield described above (herein, the "Market Rate "). Because the stated interest
rate on the Loan is less than the currently estimated Market Rate for an obligation of similar term and
credit quality, the loan must be discounted to yield the currently estimated Market Rate. The Actual
Purchase Price will be computed based on the yield derived from the most recent Treasury Bond auction
and an adjustment of not more than 300 basis points above such yield.
PRICING INFORMATION
The estimated loan purchase price has been calculated by subtracting from the loan's remaining principal
value the following components: Estimated Market Value and Estimated Transaction Fees.
Pricing Component Dollar Value Discount
Remaining Principal Balance:
$125,505.80
Estimated Market Value Discount:
$18,262.82 15%
Estimated Transaction Fees:
$6275.2 9 5%
Estimated Purchase Price:
$1003967.69 200/c
IE
LENDING CAPACITY ANALYSIS I
Selling loans_ increases the capacity of a development organization to male additional loans. The
information presented below compares the existing lending capacity, attributable to this loan only, if the
loan is held to term. If the loan is sold under the conditions shown above, and subsequent loans are also
sold at the same discounts as the original loan, Hutchinson Community Development Corporation's
lending capacity increases substantially.
Existing lending capacity if loan is not sold: $178,654.68
Lending capacity if loan is sold: $411,358.28
If future loans made from the proceeds of this loan sale bear higher interest rates, the lending capacity
will increase even more than that shown above.
0
BASIC FACTS RELATIVE TO DISCOUNTING OF NEW DIMENSIONS
LOAN:
1. CURRENT BALANCE $126,287.56
2. REMAINING MONTHS OF LOAN
110
3. TOTAL PRINCIPAL AND INTEREST TO BE RETURNED ON THE
LOAN FROM THIS POINT ON
$178,604.67
4. IF LOAN IS SOLD AND WE COULD REINVEST $100,000 FOR THE
REMAINDER OF THE LOAN TERM WE WOULD ONLY NEED TO
RECEIVE 6.45% TO BREAKEVEN.
5. IF PROCEEDS WERE EARNING 8% FOR REST OF LOAN TERM, THE
TOTAL RETURN WOULD BE $205,512 OR ALMOST $30,000 MORE
WITH ABSOLUTELY NO RISK.
6. IF LOAN WERE DISCOUNTED DIRECT TO NEW DIMENSIONS AND
THEY HAD TO BORROW THE $100,000 TO PAY US OFF, AND IF HE
HAD TO BORROW AT 12.5 %, HIS PAYMENT FOR A LIKE TERM WOULD
BE $1,531.52. SO TOTAL SAVINGS TO COMPANY IS NEGLIGIBLE.
REASONS TO DISCOUNT I REASONS TO RETAIN
1. NO ADDITIONAL RISK
2. ABILITY TO FUND ADDITIONAL PROJECTS
3. POSSIBILITY OF ADDITIONAL INTEREST
EARNINGS
4. NO MATERIAL DIFFERENCE TO COMPANY
5. SOUND DECISION IF TROUBLE IS PERCEIVED
1. KEEPING WITH INTENT OF LOAN
2. NOT NECESSARY TO SELL
PROGRAM TO COUNCIL
3.
• 0 0
(612) 587 -5151
y�ry' CITY OF HUTCHINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
April 28, 1989
MEMORANDUM
TO: MAYOR AND CITY COUNCIL
FROM: HAZEL SITZ, PERSONNEL /TRANSIT COORDINATOR l
RE: HUTCHMOBILE SCHEDULE AND POLICIES
Information was presented to the Council earlier this year about bus service
changes that were being considered. I now propose to make the following
changes effective June 5.
1. Change the service schedule to operate 5 shuttles daily instead of the
previous 7. The two least -used shuttle routes (11:25 a.m. and 4:25 p.m.)
would be eliminated, with dial -a -ride service to take care of the needs
at those times. If this causes a scheduling problem, we could reinstate
the two shuttles again in September.
2. Simplify from a 2 -price fare to a single rate of $.75. Presently we
charge f.60 for advance reservations /shuttle and f.85 for same -day
requests. About 70% of riders pay the lower price now, so this would
result in slightly higher revenues. We would continue to print coupon
books for sale at a small discount.
3. Increase the price of the 'Courtesy Coupons' used by businesses, schools
and institutions from f.30 per ride to $.40 per ride. These are sold in
lots of 50 and have been used extensively, especially by the schools. The
new imprint would state 'Not for Resale,' since they are intended to be
used for business promotions, social service agencies or titled
educational programs, not as cut -rate rides for individuals.
4. Initiate a monthly pass (non- transferable) for $20. Any passenger who
rides more than 27 times per month would benefit from this pass.
At present, this might be 15 or more individuals.
These changes are in line with trends in other transit systems throughout
the state and have been suggested in part by our MN /DOT Transit Project
manager.
0
(612) E
H• U - T - C - H - I - N - S - O•N M• 1 - N - N - E - S - O•T•A
0
37 Washington Ave. W. • Hutchinson, MN 55350
M E M O R A N D U M
TO: Mayor and City Council
FROM: Skip Quade, Chairman MAINSTREET -
SUBJECT: BANNERS FOR MAIN STREET
Date: April 27, 1989
0
Hutchinson
MAINSTREET - Hutchinson requests your authorization to place 32 MAINSTREET
- Hutchinson banners on the light poles on Main Street from College Hill to
4th Ave SE. MAINSTREET - Hutchinson will be designing the banners and be
responsible for the cost of the banner and the brackets. We request that the
City install the brackets and hang the banners.
We propose to hang the banners June 12, 1989, so they will be in place for
Water Carnival and remain thru the Arts and Crafts Festival.
The banner will be 30" X 60" have a white background, black lettering with
a teal colored building. The Design Committe of MAINSTREET - Hutchinson will be
attending the City Council meeting and have a sample of the proposed banner.
The contact person for this project is Jan Carney.
Thank you for your consideration.
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BID SUMMARY SHEET
$830,000 Nursing Home Revenue Bonds, Series 1989
City of Hutchinson, Minnesota
SALE: Tuesday, May 9, 1989
BID OPENING: 2:00 P.M. AWARD: 7:30 P.M.
Account Manager: DOUGHERTY, DAWKINS, STRAND & YOST, INC.
Account Members:
Net Interest Cost: $ 653.345.00 Net Interest Rate: 8.0809 Bid Ranking: 2
• Account Manager: MILLER & SCHROEDER FINANCIAL, INC.
•
Account Members:
Net Interest Cost: $_697.682.50 Net Interest Rate: 8.6293 Bid Ranking: 4
Account Manager:
Account Members:
MILLER SECURITIES, INC.
Net Interest Cost: $ 639-199.00 Net Interest Rate: 7.9059 Bid Ranking: 1
02248
EHLERS AND ASSOCIATES, INC.
q, E.
Account Manager: MOORE, JURAN & COMPANY, INC.
Account Members:
Net Interest Cost: $ 680, 050.00 Net Interest Rate: 8.4112 Bid Ranking:
Account Manager:
Account Members:
Net Interest Cost: $ Net Interest Rate: Bid Ranking:
Account Manager:
Account Members:
Net Interest Cost: $ Net Interest Rate: Bid Ranking:
Account Manager:
Account Members:
Net Interest Cost: $ Net Interest Rate: Bid Ranking:
3
•
•
0
11
BID FORM
The City Council
Hutchinson, Minnesota
RE: $830,000 Nursing Home Revenue Bonds, Series 1989, Dated May 1, 1989
May 9, 1989
For all or none of the above bonds, in accordance with the Terms and Conditions of
Sale, we will pay you $ / •S -cra , (not less than $814,000) plus accrued
interest to date of delivery for fully registered Bonds bearing interest rates and
maturing in the stated years as follows:
We enclose our good faith deposit in the amount of $16,600, to be held by you
pending delivery and payment. Alternatively, we have wired our good faith deposit
to the Ehlers & Associates, Inc. Bond Issue Escrow Account 11850 -788 -1 at Resource
Bank & Trust Co., Minneapolis, Minnesota. If our bid is not accepted, said deposit
shall be promptly returned to us. If the good faith deposit is wired to such
escrow account, we agree to the conditions and duties of Ehlers & Associates, Inc.,
as escrow holder of the good faith deposit, pursuant to the Offering Statement
dated May 3, 1989. This bid is for prompt acceptance and is conditional upon
delivery of said bonds to us or to a named registrar within 40 days from date
hereof, or thereafter at our option. The bonds shall be fully registrable as to
principal and interest and the City will select the registrar /paying agent and pay
the customary charges.
Account Manager: MTT.i.F.R SF.f i1RTTTFC, INC By:
JEROME D. OLSON
ACCOUNT MEMBERS:
BIDDING ALONE
The foregoing offer is hereby accepted by and on behalf of the City Council of the
Hutchinson, Minnesota this day of May, 1989.
Attest:
Title:
By:
Title:
According to our computations (the correct computation being controlling in the
award), the total net interest cost of the above bid is $ !1 crz/ and the
average net effective interest rate is 2. 70 S 7 %.
Good faith deposit received (for return to unsuccessful bidder)
v
due
1991
-7--4--%
due
1996
.7 5 %
due
2001
2
due
1992
_%
due
1997
%
due
2002
OZY %
due
1993
%
-%
due
1998
_-7
7.5<!5 %
due
2003
_fr_%
due
1994
due
1999
Z-1,51
due
2004
�_%
due
1995
%_ %S %
due
2000
We enclose our good faith deposit in the amount of $16,600, to be held by you
pending delivery and payment. Alternatively, we have wired our good faith deposit
to the Ehlers & Associates, Inc. Bond Issue Escrow Account 11850 -788 -1 at Resource
Bank & Trust Co., Minneapolis, Minnesota. If our bid is not accepted, said deposit
shall be promptly returned to us. If the good faith deposit is wired to such
escrow account, we agree to the conditions and duties of Ehlers & Associates, Inc.,
as escrow holder of the good faith deposit, pursuant to the Offering Statement
dated May 3, 1989. This bid is for prompt acceptance and is conditional upon
delivery of said bonds to us or to a named registrar within 40 days from date
hereof, or thereafter at our option. The bonds shall be fully registrable as to
principal and interest and the City will select the registrar /paying agent and pay
the customary charges.
Account Manager: MTT.i.F.R SF.f i1RTTTFC, INC By:
JEROME D. OLSON
ACCOUNT MEMBERS:
BIDDING ALONE
The foregoing offer is hereby accepted by and on behalf of the City Council of the
Hutchinson, Minnesota this day of May, 1989.
Attest:
Title:
By:
Title:
According to our computations (the correct computation being controlling in the
award), the total net interest cost of the above bid is $ !1 crz/ and the
average net effective interest rate is 2. 70 S 7 %.
Good faith deposit received (for return to unsuccessful bidder)
v
0
Ll
BID FORM
The City Council
Hutchinson, Minnesota
RE: $830,000 Nursing Home Revenue Bonds, Series 1989, Dated May 1, 1989
May 9, 1989
For all or none of the above bonds, in accordance with the Terms and Conditions of
Sale, we will pay you $ SL4 dW — , (not less than $814,000) plus accrued
interest to date of delivery for fully registered Bonds bearing interest rates and
maturing in the stated years as follows:
g v� % due 1991
�% due 1992
% due 1993
;r--2% due 1994
i �z % due 1995
7 _% due 1996
�
due 1997
%
x due 1998
x due 1999
1r-j_X due 2000
due 2001
S due 2002
�! x due 2003
S-4, % due 2004
We enclose our good faith deposit in the amount of $16,600, to be held by you
pending delivery and payment. Alternatively, we have wired our good faith deposit
to the Ehlers S Associates, Inc. Bond Issue Escrow Account #850 -788 -1 at Resource
Bank 6 Trust Co., Minneapolis, Minnesota. If our bid is not accepted, said deposit
shall be promptly returned to us. If the good faith deposit is wired to such
escrow account, we agree to the conditions and duties of Ehlers & Associates, Inc.,
as escrow holder of the good faith deposit, pursuant to the Offering Statement
dated May 3, 1989. This bid is for prompt acceptance and is conditional upon
delivery of said bonds to us or to a named registrar within 40 days from date
hereof, or thereafter at our option. The bonds shall be fully registrable as to
principal and interest and the City will select the registrar /paying agent and pay
the customary charges.
Account Manager: Miller & Schroeder Financi -l: jJ,�QPt�
Inc.
« « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « « «
The foregoing offer is hereby accepted by and on behalf of the City Council of the
Hutchinson, Minnesota this day of May, 1989.
Attest:
Title:
By:
Title:
According to our computations (the correct computation being controlling in the
• award), the total net interest cost of the above bid is = GZ,LR . SD and the
average net effective interest rate is 94/%a 93 x.
Good faith deposit received (for return to unsuccessful bidder)
DOI?SEY & WHITNEY
q 'E1
w P�muaNlF M1cwlao Paorsaaww.i EPareu,yPa
DDB PARE ATHNUR 2200 FIRST BANK PLACE EAST
NEW TOE=. NEW ToRC 10022
1908 MEET INTERSTATE CENTER
MINNEAPOLIS, MINNESOTA 55402
(RI9) Y6•RBOO
9a AOHTE a•• STREET
(612) 340 -2600
P. 0. nee
STREET
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LONDON RCDT OAT, ENOLAAD -
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GREAT PALLS. MORTARA 59401
340 MRBT NATIONAL HANB BQILDINO
(406J n?T -060¢
P. O. BOX B
ROCRESTER, MINNESOTA 66900
I¢} EAST PHONT STREET
MISSOULA. MONTANA 69809
(eOT�¢BB•0156
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610 NORTH CENTRAL LIFE TOWER
946 MINNESOTA STREET
015 MHST NATIONAL HANE BUTLMNO
ST. PAUL, MIITNBSMA SUM May 3, 1989
}INTENTS, MTNNatoa BERRI
(812)¢9} -&M'
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(e19)9rz_o0n1
n�
uAr. Gary D. Plotz
City Administrator p
v3456 �89
City of Hutchinson
�
RI
37 Washington Avenue West
�° p,1 =Y1989 N
Hutchinson, Minnesota 55350
CEVM W
N p
Mr. Kenneth Merrill
c BY._._�_...
City Finance Director
City of Hutchinson
�2Z1a0Z6�$`���
yy
37 Washington Avenue West rl`
Hutchinson, Minnesota 55350
Mr. William Fahey
Ehlers and Associates
2950 Norwest Center
90 South 7th Street
Minneapolis, Minnesota 55402
Ms. Nancy Liss
Ehlers and Associates
2950 Norwest Center
90 South 7th Street
Minneapolis, Minnesota 55402
Re: $830,000 Nursing Home Revenue Bonds,
Series 1989
City of Hutchinson, Minnesota
Dear Ms. Liss and Gentlemen:
O
Enclosed is a draft of the Bond Resolution
the bonds referred to above for consideration by
\ p-,d
for aT a
the
Council
City
at its meeting on Tuesday, May 11th. Please
the
review i
resolution to ensure that it conforms to your expectations.
You should
pay particular attention to the provisions of
Section 4, which
sets forth the revenue pledge, the
provision
q 'E1
UoRSEY & WHITNEY
Page -2-
Mr. Gary D. Plotz
Mr. Kenneth Merrill
May 3, 1989
Mr. William Fahey
Ms. Nancy Liss
relating to the reserve fund, the provisions for the issuance
of parity additional bonds and subordinate additional bonds
and the covenants of the City with respect to the operation
of the Burns Manor Nursing Home.
If you have any questions, please give me a call.
Yours truly,
Jerome P. Gilligan
e✓ .
JPG:cmn
Enclosure
LJ
0
•
0
r�
U
The City Administrator presented affidavits showing
publication in a legal newspaper having general circulation in
the City, and in a daily or weekly periodical published in a
Minnesota city of the first class, which circulates throughout
the state and furnishes financial news as a part of its
service, of the notice of sale of $830,000 Nursing Home Revenue
Bonds, Series 1989 of the City, bids for which are to be
considered at this meeting as provided by the resolution of the
City Council adopted April 11, 1989. The affidavits were
examined and approved and ordered placed on file in the office
of the City Administrator.
It was reported that —�— sealed bids for the
purchase of said Bonds had been received from the following
institutions at or before the time stated in the notice, and
the bids were then publicly read and considered, and were all
found to conform to the notice of sale and the terms and
conditions of sale and to be accompanied by the required
security, and the purchase price, interest rates and net
interest cost under the terms of each bid were found to be as
follows:
Bidder Purchase Price Interest Rates Net Interest Cost
9F
0 Councilmember then introduced the
following resolution and moved its adoption:
RESOLUTION RELATING TO $830,000 NURSING HOME REVENUE
BONDS, SERIES 1989; AUTHORIZING THE ISSUANCE, AWARDING
THE SALE, FIXING THE FORM AND DETAILS AND PROVIDING
FOR THE EXECUTION AND DELIVERY THEREOF AND SECURITY
THEREFOR
BE IT RESOLVED by the City Council of the City of
Hutchinson, Minnesota (the City), as follows:
Section 1. Recitals, Authorization and Sale of Bonds.
1.01. Authorization and Recitals. This Council under
the authority of Minnesota Statutes, Sections 447.45 to 447.50
and Chapter 475 and pursuant to a resolution adopted by this
Council on April 11, 1989 determined that it is necessary and
expedient for the City to issue and sell its Nursing Home
Revenue Bonds, Series 1989 (the Bonds) to defray the expenses
incurred and to be incurred by the City in constructing
improvements to the City's nursing home, which is known as the
Burns Manor Nursing Home (the Facility), and acquiring and
installing items of equipment therein, including every item of
• costs of the kinds authorized in Minnesota Statutes, Section
475.56. $16,000 of the principal amount of the Bonds
represents interest as provided in Minnesota Statutes, Section
475.56. Under Minnesota Statutes, Sections 447.45 to 447.50,
the City is authorized to issue revenue bonds to finance the
betterment of the Facility, and to pledge and appropriate the
revenues to be derived from operation thereof to pay the
principal of and interest on the Bonds when due; to create and
maintain reserves for that purpose and for the purpose of
paying operating expenses of the Facility; and to make and
enter into all covenants determined to be necessary or proper
to assure the marketability of the Bonds, the completion of the
improvements to the Facility, the segregation of the revenues
pledged, and the sufficiency thereof for the prompt and full
payment of all of the Bonds and interest thereon. There are
presently no outstanding obligations of the City which are
payable from the revenues of the Facility.
1.02. Sale of Bonds. Notice of the sale of the BOnds
was duly published as required by Minnesota Statutes, Section
475.60. Pursuant to the Notice of Bond Sale and the Terms and
Conditions of Sale, 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 which are 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 valid issuance of the Bonds
having been done, existing, having happened and having been
performed, it is now necessary for this Council to establish
the form and terms of the Bonds, to provide security therefor
and to issue the Bonds forthwith.
Section 2. Form of Bonds. The Bonds shall be
prepared in substantially the following form:
-2-
0 [Face of the Bonds]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF MCLEOD
CITY OF HUTCHINSON
NURSING HOME REVENUE BOND
SERIES 1989
Date of
Interest Rate Maturity Original Issue CUSIP
May 1, 1989
SEE REVERSE
FOR CERTAIN
DEFINITIONS
-3-
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 named
above, or
registered assigns, the principal amount specified
above, on
the maturity date specified above, with interest
thereon from
the date of original issue specified above, or
from the
most recent interest payment date to which interest
has been
paid or duly provided for, at the annual rate
specified
above. Interest hereon is payable on May 1 and
November
1 in each year, commencing November 1, 1989, 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 principal
office of
the Bond Registrar hereinafter designated, the
principal
hereof are payable in lawful money of the United
States of
America by check or draft of
of
I , as bond registrar,
transfer
agent and paying agent (the Bond Registrar), or its
successor
designated under the Resolution described herein.
Additional provisions of this Bond are contained on
the reverse
hereof and such provisions shall for all purposes
.
have the
same effect as though fully set forth hereon.
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• 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 the manual
signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Hutchinson, McLeod
County, Minnesota, by its City Council, has caused this Bond to
be executed by the facsimile signatures of the Mayor and the
City Administrator and by a printed facsimile of the official
seal of the City.
(Facsimile Signature)
City Administrator
Date of Authentication:
�J
•
(Facsimile Seal)
(Facsimile Signature)
Mayor
iCERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the
Resolution mentioned within.
as Bond Registrar
By
Authorized Representative
[Reverse of the Bonds]
This Bond is one of an issue in the aggregate
principal amount of $830,000 (the Bonds), issued pursuant to a
resolution adopted by the City Council on May 9, 1989 (the
Resolution), to finance the costs of constructing improvements
to the City's nursing home facility (the Facility) and
acquiring and installing items of equipment therein, 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, Sections
447.45 to 447.50 and Chapter 475. The Bonds are payable from
net revenues derived from the operation of the Facility which
have been pledged to the payment of the Bonds by the Resolution
and from amounts on deposit in the Reserve Account established
by the Resolution (the Reserve Account). This Bond shall not
be payable from nor charged upon any funds of the City other
than the net revenues of the Facility pledged to the payment
thereof and amounts on hand in the Reserve Account. No owner
of this Bond shall ever have the right to compel any exercise
of the taxing powers of the City to pay this Bond or the
interest thereon, nor to enforce payment thereof against any
property of the City, except the net revenues of the Facility
and amounts on hand in the Reserve Account. The Bonds are
issuable only as fully registered bonds in denominations of
$5,000 or any multiple thereof, of single maturities.
Bonds maturing in the years 1991 through 1993 are
payable on their respective stated maturity dates without
option of prior payment, but Bonds having stated maturity dates
in 1994 and later years 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 in $5,000
principal amounts selected by lot within a maturity, on May 1,
1993 and on any interest payment date thereafter, at a price
equal to the principal amount thereof to be redeemed plus
accrued interest to the date of redemption. At least thirty
® days prior to the date set for redemption of any Bond, notice
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of the call for redemption will be published in a daily or
weekly periodical, published in a Minnesota city of the first
class or its metropolitan area, which circulates throughout the
state and furnishes financial news as a part of its service,
and 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. 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.
0
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 this Bond a valid and
binding obligation of the City according to its terms, have
been done, do exist, have happened and have been performed in
regular and due form as so required; that in the Resolution the
City has pledged the net revenues to be derived from the
operation of the Facility to the payment of the Bonds; and that
the issuance of this Bond does not cause the indebtedness of
the City to exceed any constitutional or statutory limitation.
Q.
[A copy of the opinion of Bond Counsel shall be
printed on the Bonds, below which the following certificate
shall appear.)
We certify that the above is a full, true and correct
copy of the legal opinion rendered by Bond Counsel on the issue
of Bonds of the City of Hutchinson, Minnesota, which includes
the within Bond, dated as of the date of delivery of and
payment for the Bonds.
(Facsimile Signature)
City Administrator
The following abbrevia
inscription on the face of this
though they were written out in
laws or regulations:
(Facsimile Signature)
Mayor
=ions, when used in the
Bond, shall be construed as
full according to applicable
TEN COM -- as tenants UNIF GIFT MIN ACT..... Custodian.....
in common (Gust) (Minor)
TEN ENT -- as tenants
by the entireties
• under Uniform Gifts to
JT TEN -- as joint tenants Minor3
with right of
survivorship and Act ......................
not as tenants in (State)
common
Additional abbreviations may also be used.
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:
0
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE:
I
I
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, enlarge-
ment or any change whatsoever.
Signature(s) must be guaran-
teed by a commercial bank or
trust company or by a broker-
age firm having a membership
in one of the major stock
exchanges.
Section 3. Bond Terms Execution and Delivery.
3.01. Maturities, Interest Rates, Denominations,
Payment. The City shall forthwith issue and deliver the Bonds,
which shall be denominated "Nursing Home Revenue Bonds, Series
1989" and shall be payable primarily from the Bond Account of
the City created in Section 4.04 hereof. The Bonds shall be
dated initially as of May 1, 1989, shall be issuable in the
denominations of $5,000 or any integral multiple thereof, shall
mature on May 1 in the years and amounts set forth below, and
Bonds maturing in such years and amounts shall bear interest
from May 1, 1989 until paid or duly called for redemption at
the rates per annum set forth opposite such years and amounts,
respectively:
Year Amount Rate Year Amount Rate
1991 $30,000 % 1998 $ 50,000 %
1992 25,000 1999 75,000
1993 50,000 2000 75,000
1994 50,000 2001 75,000
1995 50,000 2002 75,000
1996 50,000 2003 75,000
1997 50,000 2004 100,000
The Bonds shall be issuable only in fully registered
form, of single maturities. The interest thereon and, upon
surrender of a Bond at the principal office of the Registrar
described herein, the principal amount thereof, shall be
payable by check or draft issued by the Registrar. Each Bond
shall be dated by the Registrar as of the date of its
authentication.
. 3.02. Interest Payment Dates. Interest on the Bonds
shall be payable on May 1 and November 1 in each year,
no
commencing November 1, 1989, to the owners thereof as such
appear of record in the bond register as of the close of
business on the fifteenth day of the immediately preceding
month, whether or not such day is a business day.
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 office a bend 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 to the
Registrar 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 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, interest rate
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 valid and genuine and that the requested
transfer is legally authorized. The Registrar shall incur
40 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, interest rate, 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 receipt by the Registrar of
evidence satisfactory to it that such Bond was lost, stolen
or destroyed, and of the ownership thereof, and upon
receipt by 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.
(i) Authenticating Agent. The Registrar is hereby
designated authenticating agent for the Bonds, within the
meaning of Minnesota Statutes, Section 475.55,
Subdivision 1.
3.04. Appointment of Initial Registrar. The City
hereby appoints , of
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, as the initial Registrar. The
Mayor and the City Administrator are authorized to execute and
deliver a contract with the Registrar on behalf of the City.
Upon merger or consolidation of the Registrar with another
corporation, if the resulting corporation is a bank or trust
company authorized by law to conduct such business, such
corporation shall be authorized to act as successor Registrar.
The City agrees to pay the reasonable and customary charges of
the Registrar for the services performed. 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. On or
before each principal or interest due date, without further
order of this Council, the City Administrator shall transmit to
the Registrar, from the Bond Account described in Section 4.04,
money sufficient for the payment of all principal and interest
then due.
3.05. Redemption. Bonds maturing in the years 1991
through 1993 are payable on their respective stated maturity
dates without option of prior payment, but Bonds having stated
maturity dates in 1994 and later years are each subject to
redemption, at the option of the City and in whole or in part,
• and if in part in inverse order of maturities and in $5,000
principal amounts selected by lot within a maturity, on May 1,
1993 and on any interest payment date thereafter, at a
redemption price equal to the principal amount thereof to be
redeemed plus accrued interest to the date of redemption.
Notice of redemption shall be published in a newspaper which is
published in a Minnesota city of the first class or its
metropolitan area, which circulates throughout the state and
furnishes financial news as a part of its service, and shall be
mailed by the City Administrator, at least 30 days before the
date of redemption, to the Registrar and to the holder of each
Bond to be redeemed. 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.
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 and shall be sealed with
the official corporate seal of the City; provided that said
signatures and the corporate seal may be printed, engraved, or
lithographed facsimiles thereof. In case any officer whose
signature, or a facsimile of whose signature, shall appear on
the Bonds shall cease to be such officer before the delivery of
any Bond, such signature or facsimile shall nevertheless be
valid and sufficient for all purposes, the same as if such
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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 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
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 price.
Section 4. Security Provisions.
4.01. Nursing Home Fund. So long as the Bonds and
any additional bonds payable from the Bond Account, as
hereinafter defined, issued under Section 4.09 hereof are
outstanding, all of the gross income and revenue derived from
the operation of the Facility, and of any further additions or
improvements to the Facility, including all amounts received
with respect to services and commodities furnished by the
Facility to any person, and any lease rentals from the
Facility, are hereby set aside, appropriated and pledged to the
Nursing Home Facility Fund, which is hereby created and shall
be maintained as a separate and special fund on the books of
the City (the Nursing Home Facility Fund). The City =tee
shall maintain the books and records showing all
receipts and disbursements of revenues herein pledged to the
Nursing Home Facility Fund and of all other moneys pertaining
to the Facility, on which books and records there shall be
maintained the separate subfunds or accounts hereinafter
designated in this Section 4.
4.02. Capital Expenditures Account. In the Nursing
Home Facility Fund there is created and shall be maintained as
a separate account a Capital Expenditures Account (the Capital
Expenditures Account). The Capital Expenditures Account shall
be used only to pay expenses which under generally accepted
accounting principles constitute capital costs necessarily
incurred for the acquisition and betterment of nursing home
related facilities, including the Facility, and including but
not limited to land, easements, buildings, structures and
equipment; the cost of all architectural, engineering, legal
and other professional services, printing and publication, and
other costs reasonably necessary and incidental thereto; and
interest on the Bonds or additional bonds issued to finance
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• capital improvements or additions to the Facility and any
improvements or additions thereto and for a reasonable period
thereafter. To this Account shall be credited all of the
proceeds of the Bonds except the amount thereof to be deposited
in the Bond Account and the Reserve Account as provided in
Sections 4.04 and 4.05, and the proceeds of any other bonds of
the City issued in the future as contemplated by this
Resolution or otherwise, for the financing of capital
improvements or additions to the Facility, and such other
moneys as may from time to time be appropriated thereto for
this purpose. The balance, if any, remaining in the Capital
Expenditures Account after completion of any improvement or
addition to the Facility, including but not limited to, the
improvements financed with the Bonds, shall be transferred to
the Bond Account to the extent necessary to pay interest on
bonds payable therefrom and if not so required shall be
transferred to the Operating Account for working capital.
4.03. Operating Account. In the Nursing Home
Facility Fund there is created and shall be maintained as a
separate account an Operating Account (the Operating Account).
All gross revenues received from the operation of the Facility
and all other funds appropriated to pay costs of operation,
administration and maintenance of the Facility shall be
credited to the Operating Account. The moneys on hand in the
• Operating Account shall be used only to pay promptly when due,
expenses which under generally accepted accounting principles
constitute current, reasonable and necessary costs of the
operation, maintenance and current repair of the Facility,
exclusive of depreciation and interest costs, and to maintain a
reasonable working reserve for recurring expenses. The
revenues of the Facility from time to time on hand in the
Operating Account in excess of the foregoing requirements are
the net revenues pledged and appropriated to make the transfers
to the other subfunds or accounts in the Nursing Home Facility
Fund required in this Section 4.
s
4.04. Bond Account. In the Nursing Home Facility
Fund there is created and shall be maintained as a separate
account a Bond Account (the Bond Account). There is hereby
appropriated to the Bond Account from the proceeds of the
Bonds, the sum of $ to pay the estimated interest to
accrue on the Bonds during the period of construction of the
improvements to the Facility to be financed with the Bonds.
Commencing in May, 1990, there is appropriated and shall be
credited to the Bond Account each month from the net revenues
on hand in the Operating Account, a sum of not less than
one - twelfth of the total amount of principal to become due on
the next two interest payment dates, and a sum not less than
one -sixth of the total amount of interest to become due on the
next interest payment date on all of the then outstanding bonds
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. payable from the Bond Account. This requirement is cumulative,
and if the full amount required cannot be transferred in any
month, the deficiency shall be restored from the next net
revenues available. The moneys on hand in the Bond Account
shall be used only to pay the principal of and interest on the
Bonds and on any additional bonds payable from the Bond Account
issued pursuant to Section 4.09 hereof when due. The balance
therein on each payment date shall be used first pro rata to
pay the interest then due on all of said bonds, and then pro
rata to pay the principal then due. Upon the call of any such
bonds for redemption in advance of maturity, there shall also
be appropriated and credited in the Bond Account, over and
above the amounts herein required, additional funds from
surplus revenues, the Reserve Account or the proceeds of
refunding bonds sufficient to pay the principal amount of the
obligations redeemed and the premium required for such
redemption, if any.
4.05. Reserve Account. In the Nursing Home Facility
Fund there is created and shall be maintained as a separate
account a Reserve Account (the Reserve Account). There is
hereby appropriated and shall be credited to the Reserve
Account from the proceeds of the Bonds, the sum of $
There shall be maintained in the Reserve Account an amount
equal to the "Reserve Requirement ", as hereinafter defined.
• The "Reserve Requirement" shall be an amount equal to the
lesser of (i) ten percent (10 %) of the aggregate original
principal amount of all series of bonds payable from the Bond
Account (including any additional bonds issued pursuant to
Section 4.09) which are then outstanding or (ii) the maximum
amount of principal and interest to come due in any future
calendar year on all bonds payable from the Bond Account
(including any additional bonds issued pursuant to Section
4.09). In calculating the amount on deposit in the Reserve
Account, investments therein shall be valued at the market
value thereof. All income derived from the investment of
amounts in the Reserve Account shall remain in, and be credited
to, the Reserve Account if the balance therein is less than the
Reserve Requirement until such time as the balance therein is
equal to the Reserve Requirement. If the balance in the
Reserve Account equals or exceeds the Reserve Requirement, the
income shall be transferred to any Account established pursuant
to Section 4.07 or to the Repair and Replacement Account. If
the balance in the Reserve Account is less than the Reserve
Requirement there shall be transferred to the Reserve Account
the net revenues remaining after the required transfers to the
Operating Account and Bond Account until the balance therein
equals the Reserve Requirement. If the balance in the Reserve
Account exceeds the Reserve Requirement, the excess may be
transferred to any Account established pursuant to Section 4.07
. or to the Repair and Replacement Account. Amounts in the
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• Reserve Account can only be used to make up deficiencies in the
Operating Account or Bond Account; provided that if any amounts
in the Reserve Account are transferred to the Operating Account
or Bond Account there must be included in the next annual
budget of the Facility an amount necessary to restore the
balance in the Reserve Account to the Reserve Requirement.
4.06. Repair and Replacement Account. In the Nursing
Home Facility Fund there is created and shall be maintained as
a separate account a Repair and Replacement Account (the Repair
and Replacement Account). The Repair and Replacement Account
shall be used to segregate net revenues of the Facility from
time to time received in excess of those currer'ly needed for
the purpose of the Operating Account, the Bond Account and the
Reserve Account, and any balance therein shall be transferred
to these Accounts whenever and to the extent needed for
replacements, improvements and additions to the Facility; or
may be transferred to the Capital Expenditures Account to
finance improvements or additions to the Facility, or to the
Bond Account for the purpose of redemption of bonds in advance
of maturity, or to any Account established pursuant to Section
4.07 for the payment of other bonds issued to finance the
acquisition and betterment of facilities for the Facility.
4.07. Establishment of Other Accounts. The City
• reserves the right to establish other accounts in the Nursing
Home Facility Fund for the purpose of segregating revenues for
the payment of principal of and interest on general obligation
revenue bonds or revenue bonds which may be issued by the City
on a junior and subordinate basis to the Bonds pursuant to
Section 4.10, to finance costs of improvements or additions to
the Facility or the acquisition and installation of equipment
therein, and the right to pledge revenues of the Facility to
any such Account for such purpose; provided that the pledge of
such revenues is e- ressly made junior and subordinate to the
pledge herein of such revenues to the Bond Account and Reserve
Account.
4.08. Deposit and Investment of Funds. All revenues
and bond proceeds appropriated to the Nursing Home Facility
Fund, when uninvested, shall be kept on deposit with one or
more depository banks duly qualified under the laws of the
State, with the security therein required. Such revenues and
funds shall be kept invested and reinvested so far as possible,
solely in securities which are authorized by law for the
investment of municipal sinking funds. All securities so
purchased shall mature at or before the time when it is
estimated that the proceeds thereof will be needed for the
purposes of the account from which funds are withdrawn for the
purchase. All income, gain and loss on such investments shall
• be credited or charged, as the case may be, to the account from
which the investment was made.
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• 4.09. Issuance of Additional Parity Bonds. The City
may issue additional bonds payable from the Bond Account on a
parity with the Bonds and any additional bonds previously
issued under this Section 4.09 to finance the improvement of
the Facility or additions thereto, or the acquisition and
installation of items of equipment in the Facility, or to
refund the Bonds or any additional bonds issued pursuant to
this Section 4.09 upon the following conditions:
(a) upon the issuance of any such additional bonds
there shall be deposited in the Reserve Account an amount
necessary to cause the balance therein to equal the Reserve
Requirement taking into account the issuance of such
additional bonds; and
(b) either (i) the proceeds of the additional bonds
are used to finance improvements to the Facility ordered by
any governmental body (other than the City), or (ii) the
average annual amount of net revenues of the Facility which
was available for deposit in the Bond Account pursuant to
Section 4.04 hereof for the last two calendar years is at
least one hundred twenty -five percent (125° %) of the maximum
amount of principal and interest on the Bonds and any
additional bonds issued pursuant to this Section 4.09
(including the proposed additional bonds to be issued) to
. come due on the then current year or any future calendar
year, or (iii) the additional bonds are to be issued to
refund the Bonds or any additional bonds issued pursuant to
this Section 4.09, and the maximum amount of principal and
interest to come due on the bonds to be issued is not
greater than the maximum principal and interest
requirements on the refunded bonds for any calendar year
prior to the final stated maturity of all Bonds and
additional bonds issued pursuant to this Section 4.09 then
outstanding which will remain outstanding following the
issuance of the refunding bonds, or (iv) the proceeds of
the bonds are to be used to finance the improvement of the
Facility or additions thereto or the acquisition and
installation of equipment therein, and the City obtains a
written report from an independent consultant who is
qualified to study operations of nursing homes and has a
reputation for skill and experience in such work, which
report sets forth and states the estimated net revenues of
the Facility which will be available for deposit in the
Bond Account pursuant to Section 4.04 hereof for the three
calendar years following the year in which it is estimated
the improvements, additions or equipment financed by the
bonds are to be placed in service, is not less than one
hundred twenty -five percent (125° %) of the maximum amount of
principal and interest to come due on the Bonds and any
• additional bond issued pursuant to this Section 4.09
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• (including the proposed additional bonds to be issued) to
come due in the calendar year in which such improvements,
additions or equipment is expected to be placed in service
or any future calendar year thereafter. Any report
delivered under (iv) above shall also state the relevant
assumptions on which the estimate of net revenues contained
therein is based.
4.10. Junior and Subordinate Lien Bonds. The City
may issue additional bonds for the purpose of financing
improvements of the Facility or additions thereto, or the
acquisition and installation of items of equipment in the
Facility or to refund the Bonds or any additional bonds issued
pursuant to Section 4.09 or this Section 4.10 without meeting
the conditions set forth in Section 4.09 hereof, provided that
such additional bonds are expressly made subject and junior and
subordinate to the lien and charge of the net revenues
contained herein in favor of the Bonds and any additional bonds
issued under Section 4.09 hereof.
4.11. Imposition of Charges. The City hereby
covenants and agrees with the holders from time to time of the
Bonds, and any additional bonds issued pursuant to Section
4.09, that so long as any Bond is outstanding the City will
impose and collect reasonable rates, fees and charges for the
use of the Facility according to schedules calculated to
• produce net revenues which after the making of the reasonably
expected deposits to the Operating Account, will produce one
hundred twenty -five percent (125 %) of the amount necessary to
pay all principal and interest when due on the Bonds, and any
additional bonds payable from the net revenues of the Facility
(excluding from such principal and interest requirements
interest on the Bonds and any additional bonds for any period
has been capitalized or otherwise credited to the Bond Account
to pay interest during construction of improvements or
additions to be financed with such bonds and said net revenues,
to the extent available and necessary, are hereby irrevocably
pledged and appropriated to the payment of the principal and
and interest thereon. If, in the reasonable opinion of the
City Council (as set forth in a resolution of the Council) any
laws, rules or regulations enacted or promulgated by the United
States of America, the State of Minnesota or any agency or
instrumentality of either of them shall not permit the City to
produce the level of net revenues required pursuant to the
preceding sentence, the City shall, in conformity with then
prevailing laws, rules or regulations, maintain rates, fees and
charges which will produce the maximum permissible net revenues.
•
4.12. Insurance. The City will procure and keep in
force insurance on the Facility and the equipment and
furnishings therein, protecting against loss or damage by fire,
-17-
. tornado, windstorm, flood, theft and all other causes
customarily insured against for like properties by prudent
owners, in amounts sufficient to cover total loss thereof. In
the event of loss covered by said insurance policies or bonds,
the proceeds shall be used to repair or restore the damage
compensated thereby or to retire Bonds and any additional bonds
issued pursuant to Section 4.09.
4.13. Books of Account. The City shall at all times
keep proper and adequate books of account showing all receipts
and disbursements of moneys derived from the operation of the
Facility, which books shall show the segregation and
application of revenues of the Facility in accordance with the
provisions of this Resolution.
4.14. Licenses. The City will apply for and maintain
all licenses necessary to permit the continued operation of the
Facility as a nursing home.
4.15. Tax Exemption of Bonds. The City will not take
any action the effect thereof would be to adversely affect the
exemption from federal income taxation of the interest on the
Bonds.
4.16. Continued Ownership. The City will continue
• its ownership and will operate the Facility or cause the
Facility to be operated as a nursing home, and will cause it to
be maintained in good and efficient operating condition, free
from all liens on the revenues or the physical properties
thereof, other than the liens herein provided or authorized,
and will not sell or otherwise dispose of any capital assets of
the Facility except at their fair market value, and will use
the proceeds of any such sale or disposition to procure other
capital assets of equal usefulness for the purposes of the
Facility or to pay and redeem the Bonds and any additional
bonds issued pursuant to Section 4.09.
Section 5. Defeasance. When all of the Bonds have
been discharged as provided in this Section 5, 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 irrevocably depositing with the Registrar on or before that
date a sum sufficient for the payment thereof in full; or, if
any Bond should not be paid when due, the City may nevertheless
discharge its obligations with respect thereto by depositing
with the Registrar a sum sufficient for the payment thereof in
full with interest accrued to the date of such deposit. The
City may also discharge its obligations with respect to any
prepayable Bonds called for redemption on any date when they
are prepayable according to their terms, by depositing with the
•
S:
• Registrar on or before that date a sum sufficient for the
payment thereof in full; provided that notice of the redemption
thereof has been duly given as provided in Section 3.05. 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 times 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 or, if notice of redemption as herein
required has been duly provided for, to such earlier redemption
date.
Section 6. Countv Auditor Registration, Certi
MrA
a
6.01. County Auditor 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 the
• County Auditor shall require, and to obtain from said County
Auditor a certificate that the Bonds have been entered on his
bond register 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, Bond Counsel to the City, 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 furnished, shall be deemed
representations of the City as to the facts recited therein.
6.03. Covenant. The City
the owners from time to time of the
or permit to be taken by any of its
agents any action which would cause
to become subject to taxation under
of 1986, as amended (the Code), and
promulgated thereunder (the Regulat
-19-
covenants and agrees with
Bonds that it will not take
officers, employees or
the interest on the Bonds
the Internal Revenue Code
the Treasury Regulations
ions), 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 the Bonds will not become subject
to taxation under such Code and Regulations. The City agrees
that it will not enter into any contracts for the management of
the Facility by a third party that would jeopardize the tax
exempt nature of the interest on the Bonds.
6.04. Investment of Money on Deposit in the Bond
Account. After May 1, 1993 the City Administrator shall
ascertain monthly the amount on deposit in the Bond Account.
If after May 1, 1993 the amount on deposit therein ever exceeds
by more than $41,500 the aggregate amount of principal and
interest due and payable from the Bond Account within the next
succeeding 12 months, such excess shall be used to prepay and
redeem Bonds or be invested at a yield less than or equal to
the yield on the Bonds, based upon their amounts, maturities
and interest rates on their date of issue, computed by the
actuarial method. If any additional bonds are ever issued and
made payable from the Bond Account, the dollar amount in the
preceding sentence shall be changed to equal 5 percent of the
aggregate original principal amount of the bonds of all series,
including the Bonds, of which any bonds are then outstanding
and payable therefrom. The City reserves the right to amend
the provisions of this Section at any time, whether prior to or
after the delivery of the Bonds, if and to the extent that this
• Council determines that the provisions of this Section are not
necessary in order to ensure that the Bonds are not "arbitrage
bonds" within the meaning of Section 148 of the Code and
Regulations.
L
6.05. Arbitrage Certification. The Mayor and the
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 certification in accordance with the
provisions of Section 148 of the Code, and Sections 1.103 -13,
1.103 -14 and 1.103 -15 of the Regulations, stating the facts,
estimates and circumstances 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 the 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.
6.07. Official Statement. The Official Statement
relating to the Bonds, dated May _, 1989, prepared and
-20-
. distributed on behalf of the City by Ehlers and Associates,
Inc., is hereby approved. 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.
6.08. Authorization of Receipt of Bond Proceeds and
Pavment of Certain Costs of Issuance of the_
heBonds. The
Registrar is hereby authorized and directed, on the date of
issuance and delivery of the Bonds, to receive the Bond
proceeds and to pay from such proceeds the fees and expenses of
the following persons in the following amounts incurred in
connection with the issuance of the Bonds upon receipt by the
Registrar of a statement therefor:
Payee
Ehlers and Associates, Inc
Minneapolis, Minnesota
Service
Performed
Financial
Consultant
Registrar and
Paying Agent
Amount
The claims of the above persons in the amounts set forth
• opposite the names of such persons are hereby approved and no
further action of this Council shall be necessary in connection
with the payment of such fees and expenses of issuance of the
Bonds. The Registrar shall transfer the remaining Bond
proceeds to, or at the direction of, the City.
Attest:
City Clerk- Administrator
E
-21-
Mayor
0 The motion for the adoption of the foregoing
resolution was duly seconded by Councilmember
and upon vote being taken thereon, the following voted in favor
thereof:
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.
11
•
_22_
The following resolution is presented for your consideration:
Note: School District No. 423 has approved /disapproved the attached resolution
as of May 9, 1989:
BE IT RESOLVED that the City of Hutchinson enter into a contractual lease
agreement for a six month period with the current owner of the local facility
known as Spanky's. The purpose of said agreement to provide a chemical /tobacco
free youth facility in Hutchinson. This agreement subject to the following
conditions:
1. City of Hutchinson to pay $75,000 for leasehold improvements and fixtures
to the current owner of Spanky's. Said owner to refund all but $12,500
at the end of six months should said operation be determined unsuccess-
ful. The City of Hutchinson reserves the right to renew said agreement
for additional six -month periods with refunds by said owner of all but
$25,000 at the end of one year, all but $37,500 at 18 months, all but
$50,000 at two years, all but $62,500 at 30 months and no refund at the
end of three years. Said additional scheduled refunds by the owner shall
be contingent on operations determined as unsuccessful at the end of each
six month interval.
2. Rent to be $1,000 per month for six months with first month to be paid by
current owner.
3. Owner to refurbish facility including cleaning, painting, repair /refinish
tables as needed, add one television set, repair /paint chairs. A11 work
to be completed prior to opening of facility.
4. Owner to repair and maintain all mechanical equipment, i.e., plumbing and
heating, air conditioning, refrigeration equipment, including ice machines
and coolers, during said lease period.
5. Owner to provide limited food service in adjoining facility.
6. City of Hutchinson to cover all operational costs of said facility for a
six -month period except as noted in the aforementioned conditions.
7. Opening date as agreed upon by the City of Hutchinson and the current
owner.
E
9F
-2-
PROJECTED MONTHLY OPERATING COSTS
OF FACILITY TO BE PAID BY LESSEE
ESTIMATED MONTHLY INCOME
Rent
$1,000
10 games - $1,500
Utilities
400
Soft drinks /snacks - 400
Junker (refuse)
40
Sewer /water
80
Other income - dance cover
charge; membership fee;
Common area
100
city and school subsidy
Cable TV
30
Insurance
100
ASCAP /BMI
50
Repairs
100
Telephone
60
Maintenance
400
$2,360
Labor /Management
$2,000 per month
Mgr 1,500 per month
Other 500 per month
0
-3-
Furthermore, it should be noted that the most critical factors in the success of
this venture, beyond funding, are the direct involvement of youth in the manage-
ment structure and competent adult supervision /management.
Motion
Passed
Date:
0
0
Second
Failed
BE IT RESOLVED, that Independent School District No.
423 dedicate $5,000 of the 1989 -90 Community Education Youth
Development levy to provide for a portion of the operating
costs, other than capital improvements, of the local facility
known as Spanky's.
FURTHERMORE, it is understood that these funds are to
be transferred to the City of Hutchinson as requested to be
used in conjunction with City of Hutchinson funds to provide
for a chemical /tobacco free youth facility. Said resolution
to be contingent upon the City Council of Hutchinson entering
into an agreement with the owner of said facility for a six
month period to include an appropriate agreed upon financial
commitment by the City of Hutchinson.
FURTHERMORE, that Independent School District No. 423
shall assume no liability or obligation of any kind for the
operation of said faciity except for the partial funding
commitment set out above.
Motion
Passed
Second
Failed
9 -F'
0
0
a
May 3, 1989 a56�
X23 8g�
N
Mr. Gary D. Plotz o MpY19a w
Hutchinson City Administrator N ttEC —
37 Washington Avenue West 0� BY -- - ---
Hutchinson, Minnesota 55350 s2a��2zz1Z�26`�
Re: City of Hutchinson v. Korngiebel and Pinske
Our File Number: 3188 -87 -0047
Dear Gary:
I have been informed that Mr. Korngiebel sent a check payable to the
City in the amount of $812.10 to settle the above - referenced litigation.
Of the $812.10, $247.10 reimburses the City in full for the repair of
faulty pipe in the restrooms. The remaining $565.00, is half of the
cost to repair the facility's heating system. I also understand Mr.
Pinske has inspected and repaired the roof and extended the roof's
warranty for an additional year. In light of Defendants' recent
remedial steps with regard to the facility's problems, I recommend that
any further litigation be discontinued. The City has realized its
primary objectives in the litigation therefore any further legal
proceedings are unnecessary.
In the City's Complaint against Defendants Korngiebel and Pinske we
included a number of potential damages which are not included in
Plaintiff's settlement offer, however, our main objective in serving the
Complaint was to force Defendants to remedy the facility's heating
problem, faulty restroom pipe, and leaky roof. Excepting the 508
settlement of the cost to repair the facility's heating system, our
objectives have been fully met. As noted above, Defendants have
reimbursed the City for half the heating repairs. I believe this to be
a fair settlement in light of the difficulty in legally demonstrating
Defendants are liable for the heating system's failures. The monetary
amount at issue is inadequate to further press the issue. Further, many
of the additional items of damage we claimed in our Complaint occurred
.outside the warranty period and no legitimate claim exists for these
items. We recommend approval of the settlement. With the Council's
approval I will dismiss the Complaint as it pertains to Mr. Korngiebel,
but will not dismiss as to Mr. Pinske to insure that he will comply with
the promise to warrant the roof for an additional year.
q /Vr
ARNOLD & MGDOWELL
ATTORNEYS AT LAW
DAVID B. ARNOLD
5881 GEDAR LASE ROAD
OF COUNSEL
CHARLES R. CARMICHAEL
MINNEAPOLIS. MINNESOTA 55418 -1492
WILLI" M. O VIZOR
GARY D. McDOWELL
PAUL D. DOVE
STEVEN A. ANDERSON
(812) 545 -9000
O. BARRY ANDERSON
MN TOLL FREE 800 -343 -4545
STEVEN S. HUGE
501 SOUTH FOURTH STREET
LAURA K. FRETLAND
GABLE MGLAW MINNEAPOLIS
PRINCETON. MINNESOTA 55371
DAVID A. BRUEOOEMANN
TELECOPSEA (812)545 -V B3
(812) 389.2214
TELECOPIER(612) 389 -5508
JOSEPH M. PAIEMENT
JAMES UTLEY
101 PARE PLACE
JULIA A. CHRISTIANS
HUTCHINSON, MINNESOTA 55350
RICHARD G. McOEE
(812) 587- 7575
TELEOOPIER (e12) 587-0095
May 3, 1989 a56�
X23 8g�
N
Mr. Gary D. Plotz o MpY19a w
Hutchinson City Administrator N ttEC —
37 Washington Avenue West 0� BY -- - ---
Hutchinson, Minnesota 55350 s2a��2zz1Z�26`�
Re: City of Hutchinson v. Korngiebel and Pinske
Our File Number: 3188 -87 -0047
Dear Gary:
I have been informed that Mr. Korngiebel sent a check payable to the
City in the amount of $812.10 to settle the above - referenced litigation.
Of the $812.10, $247.10 reimburses the City in full for the repair of
faulty pipe in the restrooms. The remaining $565.00, is half of the
cost to repair the facility's heating system. I also understand Mr.
Pinske has inspected and repaired the roof and extended the roof's
warranty for an additional year. In light of Defendants' recent
remedial steps with regard to the facility's problems, I recommend that
any further litigation be discontinued. The City has realized its
primary objectives in the litigation therefore any further legal
proceedings are unnecessary.
In the City's Complaint against Defendants Korngiebel and Pinske we
included a number of potential damages which are not included in
Plaintiff's settlement offer, however, our main objective in serving the
Complaint was to force Defendants to remedy the facility's heating
problem, faulty restroom pipe, and leaky roof. Excepting the 508
settlement of the cost to repair the facility's heating system, our
objectives have been fully met. As noted above, Defendants have
reimbursed the City for half the heating repairs. I believe this to be
a fair settlement in light of the difficulty in legally demonstrating
Defendants are liable for the heating system's failures. The monetary
amount at issue is inadequate to further press the issue. Further, many
of the additional items of damage we claimed in our Complaint occurred
.outside the warranty period and no legitimate claim exists for these
items. We recommend approval of the settlement. With the Council's
approval I will dismiss the Complaint as it pertains to Mr. Korngiebel,
but will not dismiss as to Mr. Pinske to insure that he will comply with
the promise to warrant the roof for an additional year.
q /Vr
Mr. Gary D. Plotz
May 3, 1989
Page 2
i think it's appropriate to set
Council's consideration for next
should you have any questions or
contact me.
Very truly yours,
ARNOL & ELL
G. Barry Anderson
GBA /dps
RGM \3188 \47- LTR.05
this matter on the agenda for the
week's council meeting. As always
concerns, please don't hesitate to
•
i
C
DAVID B. ARNOLD
CHARLES R. CARMICHAEL
GARY D. MCDOWELL
STEVEN A. ANDERSON
G. BARRY ANDERSON
STEVEN S. HOGE
CHARLES L. NAIL. JR.
LAURA E. FRETLAND
DAVID A. BRUEOGEMANN
JOSEPH M. PAIEMENT
JAMES UrLEY
JULIA A. CHRISTIANS
April 19, 1989
ARNOLD & MGDOWELL
ATTORNEYS AT LAW
5881 GEDAR LAKE ROAD
MINNEAPOLIS, MINNESOTA 55416
(612) 545 -9000
MN TOLL FREE 800- 343 -4545
CABLE MCLaw MINNEAPOLIS
Mr. Gary D. Plotz
City Administrator
37 Washington Avenue West
Hutchinson, Mn. 55350
TELECOPIER (012) 545 -1790
Re: O'Borsky Matter
Our File No. 3188 -87 -0006
Dear Gary:
n_� J
V
I SOUTH } OURTH STREET
BINGETON, MINNESOTA 55371
(612) 388 -2214
101 PARE PLACE
.L` HCTCHINS, MINNESOTA 55350
( 12) 587 -7575
P
NAPA 7,980
ti
Z
I am enclosing herewith for Council action and I would appreciate
it if you would include it in the next packet, a copy of the
settlement agreement resolving the outstanding dispute between the
City and the League Insurance Trust.
You will note that the Settlement Agreement does make reference to
Exhibit "A" and I have not attached Exhibit "A" to this Agreement.
That document is merely a denial of coverage on part of the League
Trust and to include it in the packet would be duplicative and a
waste of time.
As previously noted, this Agreement has been accepted, but I
suppose it would be appropriate to have the Council approve the
settlement _
If you have any questions with regard to this matter, do not
hesitate to contact me.
Thank you.
Very truly yours,
ARNOLD & cDOWELL�
. G. Barry Anderson
GBA:lm
Enclosure
9 t
POLICY HOLDERS RELEASE
9
I am the for the City of Hutchinson
(Name) (Title)
and I verify that I am signing this release for and on behalf of the
City of Hutchinson and am duly authorized by the city council
to do so.
In consideration of the sum of Nine Thousand Five Hundred Fourteen
and Forty One Cents Dollars ($9514.41 ) paid, the receipt and
sufficiency of which is hereby acknowledged, the City of Hutchinson
does hereby release and forever discharge the League of Minnesota
Cities Insurance Trust, its heirs, administrators, executors,
successors, and assigns from any and all actions, causes of actions,
demands, claims or potential claims, whatsoever for, upon, or by reason
of any damage, loss or injury, and all consequential damage which
heretofor have been or which hereafter may be sustained by the city in
consequence of any a r ct o r amr oission on the part of any city employee
official, administrato ogent concerning the emnlovment andinr
re-
Further, in consideration of the above payment, the undersigned for and
on behalf of the City of Hutchinson also expressly declares and
agrees:
1. That neither the payment of the aforementioned amount nor execution
of this release shall be construed as an admission of liability or
coverage for liability.
2. Correspondence from Robert A. Weisbrod, addressed to G. Barry
Anderson, dated January 23, 1989 and attached hereto as Exhibit A. is
evidence of the disputed nature of this compromised claim.
Witness whereof, the hand and seal of the undersigned is set hereunto
this _ day of , 19_
WITNESS
WITNESS
READ CAREFULLY BEFORE SIGNING
(Seal)
(Seal)
q --7-
ACKNOWLEDGMENT Page 2 of 2
STATE OF )
i ss..
COUNTY OF 1
On the day of ,19_,
before me came
to me known who being by me duly sworn did
depose and say that he /she resides in
; that he /she is the
of the City of
that he /she executed the foregoing instrument;
that the sealed affixed to said instrument is
such corporate seal; that it was so affixed by
order of the governing body of said corporation;
and that he /she signed his /her name thereto by
like order.
NOTARY
p-Z.
0
(612) 587 -5151
f/UTIH' CITY OF HUTCHINSON
37 WASHING TON AVENUE WEST
HUTCHINSON, MINN. 55350
M E M 0
DATE: May 4th, 1989
TO: Mayor and City Council
FROM: City Engineer
RE: Gopher State One Call
The new system on calling for utilities locations, mandated by State Law, copy
of which is attached, is causing problems in this office.
We request immediate rental /purchase of equipment from Gopher State, the same
as being used by Hutchinson Utilities.
This equipment will provide us with proper data that we can provide builders,
etc... and retain for our files as required.
MVP /pv
attachment
u
W, y. e.
Marlow V. Priebe
City Engineer
9 -C.
RECEIVING APPLICATIONS
RECOMMENDED EQUIPMENT AND PRICES
Only equipment and software provided by One Call Concepts, Inc. is warranted to
operate effectively for its proposed use with your computerized one -call center.
One Call Concepts does not recommend or in any way guarantee the performance of
products other than those listed herein and strongly advises against the use
of other types of application. One Call Concepts incorporates herein by reference
the disclaimers and limitations of liability and warranty previously set forth.
RECEIVING EQUIPMENT OPTION
LEASE /PURCHASE
WITH MAINTENANCE
OPTION I
One Call Concepts receiving
Printer unit $ 50 per month
-- Receive only printer
-- Internal or external modem
-- 120 cps print speed
-- Low to medium volume design
OPTION 2
AT &T 5310 teleprinter
-- Receive only printer $125 per month
-- Internal or external modem
-- 160 cps print speed
-- Medium to heavy volume design
OPTION 3
Remote entry stations
-- Data General CRT $100 per month
-- High speed error - correcting modem
-- CRT to modem interface cable
-- Notification input training
RENTAL
WITH MAINTENANCE
$ 40 per month
One year minimum
$100 per month
$ 75 per month
The lease purchase term for each of the above items is 24 months.
maintenance fees will be required after this initial period. On -going
All prices are firm for 60 days. After 60 days, they are subject to change
without notice.
The direct cost of shipping, installation, state and local taxes, if any,
will be included on your statement.
0
0
11
9s
MINNESOTA STATUTES
CHAPTER 216D. ONE CALL EXCAVATION NOTICE SYSTEM
Section
216D.01. Definitions.
2160.02. Notice to excavators and underground yg6q operators.
2160.03. No6flca6on center.
216D.04. Excavation.
216D.05. Precautions to avoid damage.
216D.06. Damage to facilities.
216D.07. Effect on local ordinances.
2160.01. DeflnNlons
Subdivision 1. Applicability. The definitions in this section apply to
sections 2160.01 to 2160.07.
Subd. 2 Damage. "Damage" means:
(1) the substantial weakening of structural or lateral support of an under-
ground facility;
(2) penetration, impairment, or destruction of any underground protective
coaling, housing, or other protective device; or
(3) impact with or the partial or complete severance of an underground
facility to the extent that the facility operator determines that repairs are re-
quired.
Subd. 3. Emergency. "Emergency" means a condition that poses a
clear and immediate danger to life or health, or a significant loss of property.
Subd. 4. Emergency responder. "Emergency responder" means a fire
department or company, a law enforcement official or office, an ambulance
or other emergency rescue service, or the division of emergency services
created by section 12.04, subdivision 1.
Subd. 5. Excavation. " Excavabon" means an activity that moves, re-
moves, or otherwise disturbs the soil by use of a motor, engine, hydraulic
or pneumatically- powered tool, or machine - powered equipment of any kind,
or by explosives. Excavation does not include:
(1) the repair or Installation of agricultural drainage file for which notice
has been given as provided by section 1161.07, subdivision 2;
(2) the extraction of minerals;
(3) the opening of a grave in a cemetary;
(4) normal maintenance of roads and street d the maintenance does not
change the original grade and does not involve the road ditch; or
(5) plowirq, Cultivating, planting, harvesting, and similar operations in con-
nection with growing crops, unless any of these activities disturbs the soil
to a depth of 16 inches or more; or
(6) kindsaping or gardening unless one of the eceviries disturbs the sod to
a depth of 12 inches or mom.
Subd. 5. Excavator. "Excavator" means a person who conducts ex-
cavation in the state.
"M. 7. Local govaremenfal unit. "Local governmental unit" me-
ans a county, town, or statutory or home rule charter city.
Subd. 0. NoUlkallon cantor. "Notificaabon center' means a center that
receives notice from excavators of planned exavation and transmits this no-
60 to participating operators.
Subd. 0. Operator. "Operator" means a person who owns or oper-
ates an underground facility. A person is riot considered an operator solely
because the person is an owner or tenant of real property where Underground
facilities are looted if the underground facilities are used exclusively to fur-
nish services or commod'or'es on that property.
Subd. 10. Person. "Person" means the state, a public agency, an in-
dividual, corporation, partnership, association, or other business or public
entity or a trustee, receiver, assignee, or personal representative of any of
mm.
Subd. 11. Underground facility, "Underground fatality" means an un-
derground line, facility, system, and its appurtenances used to produce, store,
transmit, or distribute communications, data, dec6icily, power, heat,
Oil, petroleum products, water including storm water, steam, sewage,
other similar substances.
2160.02. Notice to excavators end underground facility operators
Subdivision 1. Display and distribution. Local governmental units that
Issue permits for an activity, invoMrp excavation must continuously display
an excavator's and operator's notice at the location where permits are ap-
plied for and obtained. An excavator and operator's notice and a Copy of sec-
tions 2160.03 to 216D.07 must be furnished lo each person obtaining a permit
for excavation.
Saw. t Para[. The norl5eatlorf center slab pracribe an excevator a.
operator's notice. The notice must Worm excavators and operators of their
Obligation to comply with sections 216D.03 to 216D.07. The center shall fur-
nish to local govemmental units:
(1) a copy of the notice and sections 216D.03 to 216D.07 in a form suita-
ble for photocopying;
(2) a copy of the display and distribution requirements under subdivision
1: and
(3) the telephone number and mailing address of the notification center.
21801.03. Notification center
Subdivision 1. Participation. An operator shall participate in and share
in the costs of one statewide notification center operated by a vendor select-
ed under subdivision 2.
Subd. 2 Eatabllalrmad of notification center. (a) The notification center
services must be provided by a nonprofit corporation approved in writing by
the commissioner. A group or nonprofit corporation that intends to seek ap-
proval under this paragraph shall notify the commissioner by Septmeber 1,
1987, of the date, time and location of its first meeting. The commissioner
shall provide advance notice of the first organirationl meeting by publication
in qualified legal newspapers and in appropriate trade journals and by written
notice to all appropriate trade associations.
The nonprofit corporation must be governed by a board of directors of up
to 20 members one of whom is the director of the office of pipeline safety.
The other board members must represent and be elected by operators, exca-
vators, and other persos.:8gible to participate for the center. By Novembe
1, 1987, the board shall, with input from all interested parties, determine the
operating procedures and technology needed for a single statewide notifica-
tion center and establish a notification process and Competitive bidding proce-
ours to select a vendor to provide Ole notification service. In deciding to approve
a nonprofit corporation, the commissioner shall Consider whether 4 meets
the requirements of this paragraph and whether it demonstrates that 9 has
the ability to Contract for and implement the notification center service
(b) O the commissioner has not approved a nonprofit corperi ion under
paragraph (a) by January 1. 1988, the Commissioner $hah follow One proce-
dure in Orris paragraph. The commissioner shall prepare a preliminary draft
of operating Procedures and technology needed for a statewide notification
center and the method for assessing the cost of the service arorg opera-
lots. After holding at least one public hearing on the Preliminary oral[ lo8ow-
ing notice given in the manner required by paragraph (a), the commissioner
shall adopt final operating procedures, technology, and assessment me6lods.
The preliminary draft, pubk hearings, and final adoption are not subject to
chapter 14. By June 1. 1988, the commissioner shall select a vendor b pro-
vide the notification center service. The commissioner shah advertise for bids
as provided in section 168. 07. subdivision 3, and base the selection of a
vendor on an Identification of the lowest responsible bidder as provided in
section 16B.09, subdivision 1. The commissioner shah select and contract
with the vendor to provide the noti6catlon center service, but all costs of the
center must be paid by the operators. The commissioner may at any time
appoint a task force to advise on the renewal of the contract or any other
matter involving the center's operations.
(c) The rotfcation center must be in operation by October 1, 1988. An
operator may submit a bid and be selected to Contract to provide the notfh-
cation center service under paragraph (a) or (b). The commissioner shall an-
nually review the services provided by the nonprofit corporation approved
under paragraph (a) or the vendor selected under paragraph (b).
Subtl. S. Cooperation with Meat govemmML In establishing operat-
ng procedures and technology for the statewide notification center, the board
1f directors or the Commissioner must work In cooperation with the league
if Minnesota cities, the assocaton of Minnesota counties, and the township
dficers' association. The purpose of this Cooperation is to maximize the par-
icipation of teal governmental units that issue permits for activities irwolv- 9 J
ng excavation to assure that excavators receive notice of and comply with
the requirements of sections 216D.01 to 216D.07.
Suter 4. Notice fa but goveremmbl rnlb. The notification center
shall provide kocaI governmental units with a master list, by county. of the
Operators in the county who are participants in the notification abler, and
the telephone number and mailing address of the noOBation cm.
216D.04, Excavation
Subdivision 1. Notice of excsvellon required; contents. (a) Except
in an emergency, an excavator shall contact the notification center and pro.
vide an excavation notice at least 48 hours before beginning any excavation,
excluding Saturdays, Sundays, and holidays. An excavation begins, for pur-
poses of this requirement, the first time excavation occurs in an area that
was not previously identified by the excavator in an excavation notice.
(b) The excavation notice may be oral or written, and must contain the
following information:
(1) the name of the individual providing the excavation notice:
(2) the precise location of the proposed area of excavation;
(3) the name, address, and telephone number of the excavator or the ex-
cavator's company;
(4) the excavator's field telephone number, t one is available;
(5) the type and the extent of the proposed excavation work;
(6) whether or not the discharge of explosives is anticipated; ant
(7) the date and time when excavation is to commence.
Sold. 2. DuOU If notification center. The notification center shall as-
sign an inquiry Identification number to each excavation notice and retain a
record of all excavation notices received for at least six years. The center shall
immediately transmit the information contained in an excavation notice to
every operator that has an underground facility in the area of the proposed
excavation.
Sued. S. Locating underground facilities (a) An operator shall, within
46 hours after receiving an excavation notice from the center, excluding Satur-
days, Sundays, and holidays, unless otherwise agreed to between the exca-
vator and operator, bate and mark or otherwise provide the approximate
horizontal location of the underground facilities of the operator, without cost
to the excavator, the excavator shall determine the precise location of the
underground facility, without damage, before excavating within two feet of
the marked location of the underground facility.
(b) For the purpose of this section . the approximate horizontal location of
the underground facilities is a strip of land two feet on either side of the un-
dergrourh0 facilities.
(c) Mariners used to designate the approximate location of underground fad -
M" must follow the current color code standard used by fine American Pub-
lic Works Association.
(d) N the operator cannot Complete marking of the excavation area before
the excavation commencement ikee stated in the excavation notice, the oper-
ator shag promptly comaCI the excavator. If the excavator postpones the ex-
avaton Commencement time stated in the excavation notice by more than
48 hours, or cancels the excavation, the excavator shall notify to no6fioa-
Oon center.
216D.05 PreewOraa fa avid damage
An excavator shelf:
(1) plan the excavation to avoid damage to and minimize interference wit
underground hikes in and near the construction arss;
(2) maintain a dearaha between an urndegroud pettily and
edge or point of ally mmof *W "llipment, Corpfderkhp tlhe lohown rent c
control of the cutting edge Of point to avoid damage to the facility:
(3) provide support for underground facilities in and near the Constructio,
area, including during backhll operations, to protect the facilities; and
(4) conduct the excavation in a careful and prudent manner.
21611.08. Damage to facilities
Subdivision 1, Nona; repairs. (a) If any damage occurs to an undergrounc
facility or its protective covering, the excavator shall notify the operator a:
soon as reasonably possible. When the operator receives a damage notice
the operator shall promptly dispatch personnel to the damage area to inves
tigate. If the damages endangers fife, health, or property, the excavator repon
sible for the work shall take immediate action to protect the public and property.
and to minimize the hazard until arrival of the operator's personnel or unu
emergency responders have arrived and taken charge of the damaged area
(b) An excavator shall delay backfilling in the immediate area of the damagec
underground facilities until the damage has been investigated by the opera
tor, unless the operator authorizes otherwise. The repair of damage must be
pertormed by the operator or by qualified personnel ahrthorired by the operator
(c) An excavator who knowingly damages an underground facility, and whc
does not notify the operator as soon as reasonably possible or who backfius
in violation of paragraph (b), is guilty of misdemeanor.
Subd. 2. Cal mimbrrsemed. (a) If an excavator damages an underground
facility, the excavator shag reimburse the operator for the cost of necessary
repairs, and for a pipeline five Cost the product that was being carried in the
pipeline and was lost as a direct result of the damage.
rho Raimlwnaarn.nt it not required if the damage to the hudergrw*
ty was caused by sole negligence of the operator or the operator failb, to
comply with section 2160.04, subdivision 3.
Subd. 3 Prime iaefa evidence of negfigeace. it is prima We evidence
Of the excavator's negligence in a CM court action fi damage to the under-
ground facilities of an operator resulted from excavation, and the excavator
failed to give an excavation notice under section 216D.04 or provide support
as required by section 216D.05.
216D.07 food as local erdinaacea
(a) Sections 216D.01 to 216.007 do not affect or knpafr local ordinances,
charters, or other providons of law regulring permits to be obtained before
excavating.
(b) A person with a permit for excavation from the state or public agency
is su*C1 to sections 2160.01 b 2160.07. The state tat issued a permit
for excavation is not Sable for We actions of an excavator who fags to Com-
ply with sections 2160.01 to 216.07.
1
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:'FFICE OF PIPELINE SAFETY
MARKET HOUSE
269 EAST FIFTH STREET ROOM 130
ST. PAUL. MINNESOTA 55101
TELEPHONE. (612) 296.9636
October 25, 1988
a>_
STATE OF MINNESOTA
DEPARTMENT OF PUBLIC SAFETY
t'r
v
MEMO TO: MEMBERS OF THE MINNESOTA SENATE
MEMBERS OF THE MINNESOTA HOUSE OF REPRESENTATIVES
FROM. 11i✓ WLYILLIAM BARSEAU nIRECTOR
SUBJECT: UPDATE ON THE GOPHER STATE ONE -CALL PROGRAM
As I said earlier, I intend to keep you up -to -date regarding
actions taken to improve the effectiveness of the one -call
notification center.
As you know, the notification center is operated by a vendor (One -
Call Concepts) who is governed by a non - profit Board of Directors
(Gopher State One - Call). M.S. 216D. mandates that the Director of
the Office of Pipeline Safety serve on the Board, along with
representatives of the operator and excavating communities. In
order for any meaningful change to occur, the full Board must adopt
practices or take actions directing the vendor to implement such
improvements.
I have enclosed a copy of a letter forwarded to all underground
operators in Minnesota from Gopher State One -Call that outlines
temporary remedial actions taken to improve the notification
centers operation. The attached letter also addresses future
issues that will be resolved.
It is the intent of the Board of Directors of Gopher State to
continue to monitor the one -cal! center on a daily basis. The
enclosed letter demonstrates the level of remedial action already
taken to addrez3 problems with the center. Further, the Gopher
State One -Call Board is thoroughly reviewing the entire project.
The Board will direct the vendor to implement all necessary long
term solutions that will contribute to a more efficient use of the
center.
The bottomline for this program remains enhancing safety. The
concept of one -call is right. The public will be safer. Your
continued understanding of the problems and willingness to forged
ahead contributes to the overall level of safety for all
Minnesotans.
Enclosure
wb /mnleg
AN EQUAL OPPORTUNITY EMPLOYER
q -,I
Minnesota utilities
October 19, 1988
Page 2
Terminal Code
ABCOEF 01
NLA
Ticke_ t_ Ner
1
We recognize that this temporary action will result in excavators not
being able to call the center to determine location status. We apologize
for this inconvenience, but we need to keep the maximum number of lines
open to receive location requests.
° Several operators are attempting to use receiving equipment which is not
compatible to the notification center equipment. It is imperative that
operations not obtaining receiving equipment from One Call Concepts use
compatible equipment. The general specifications of all receiving equip-
ment is:
° Minimum baud rate - 1200 baud, 2400 baud preferable.
° 1200 baud receives must handle at least 150 characters per second (CPS)
or utilize an 8K buffer.
° 2400 baud receivers must handle at least 350 CPS or utilize an 8K
buffer.
° 7 databits, 1 stopbit, even parity.
° Receiver must be equipped with an audible alarm bell for high priority
messages which recognizes a Control "G" to generate alarm.
° 30 column paper capacity.
° XONAOFF flow control (Control "S" and Control `Q•),
Bell- compatible modem.
Operators must recognize that due to the variety of equipment on the
market place the only method for discerning receiver compatibility is to
test the receiver on -line with the notification center. The notification
center reserves the right to reject all non - compatible equipment.
° Operators who have not yet submitted their database should submit this
information immediately. If you have any questions or need additional
information, write the notification center at the following address:
Gopher State One -Call
2025 Centre Pointe Boulevard
Suite 310
Mendota Heights, MN 55120
Please report in writing all damage to underground facilities to the
notification center. The notification center will be compiling this
information to analyze damage occurring within the state.
i
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Minnesota Utilities
October 19, 1988
Page 3
SGSOC's contract with OCC does not require OCC to r
services on any equipment not leased from OCC. P ovide free consulting
° For operators with receiving equipment, receiving equipment and related
telephone lines must be de
day, seve dicated to receiving transmissions 24 hours a
n days a week. Some operators have unplugged their equipment or
used the dedicated equipment or telephone lines for other purposes. This
practice must cease for the notification center to operate.
° Operators must verify their database printout from the center. A written
verification must be submitted indicating one of the following:
1. The database as entered is correct; or,
2. The data base will be correct once the following modifications are
made. (Please attach list of additions /deletions.)
Only emergency additions to operator databases will be accepted by tele-
phone (612) 454 -8388; however, a follow up written confirmation will be
required. All other database changes must be made in writing.
The notification center is not a replacement for common sense. If an
excavator is aware of other underground facilities in an area:
° Have the excavator contact the operator directly; and,
° Urge the operator to join the notification center.
° Operators and excavators are using the location request lines for adminis-
trative questions. Only location requests will be accepted on the loca-
tion
request lines.
center'sladministratuve umberr(612)454 8388.s should be
° In the metro area, several excavators are providing incomplete street
crossing information. The complete street and cross- street names must be
used. For example, "26th and 5th" must be stated as °East 26th Street and
5th Avenue South ". If there is any doubt regarding an address, it should
be verified before calling the notification center. (We recommend having
backup township range, section, quarter section information to speed the
Process.)
° There has been some confusion about the respective roles of the Gopher
Pipeline Safety.
State One -Call Board, One Call Concepts, Inc. and the Minnesota Office of
° Minnesota Department of Public Safety, Office of Pipeline Safety
- Responsible for implementation of Minnesota Statutes Chapter 2160,
including creation of GSOC.
Minnesota Utilities
October 19, 1988
Page 4
° Gopher State One -tall, Inc. (GSOC) 9
- Volunteer Non - Profit Board
- Responsible for development, implementation and oversight of state-
wide notification center
- Act on behalf of all Minnesota excavators and operators
° One Call Concepts, Inc.
- Operator of the state -wide notification center
- Reports to GSOC
Actions
The GSOC Board has taken the following actions to improve the call handling ability
Of the notification center:
Authorized One Call Concepts to hire an additional seven answering atten-
dants.
One Call Concepts is in the process of obtaining additional incoming lines
to increase call handling capacity.
° Authorized One Call Concepts to obtain an additional 2,000 square feet of S
Office space to house more receiving attendants.
° Authorized One Call Concepts to install two FAX machines in the center.
If operators are interested in FAXing location requests to the notifica-
tion center, contact the center at (612) 454 -8388.
° Temporarily eliminated NLR call backs into the center and replaced this
process with mailing NLR's to the center within 48 hours of receipt.
° Through this letter, operators will be better equipped to interface with
the center and are being advised to share these actions with the exca-
vators they interface with.
° implementation of an education plan which includes, among other things,
the addition of two full time staff members to interface with the operator
and excavator community.
The Board is GSOC appreciates the support and patience shown by the operators and excavators.
notification enter ae viable edamage gpreventionetoolXperienced to date and make the
Ver my urs,
rz-
RogwKiffineyer,
airman
yours,
•
e encourage you to share this information with other operators or excavators.
Please feel free to reproduce or quote any portion of this letter in any news-
letters or other media you come in contact with.)
0 9 but n
community
hospital —
1095 Hignv ay 15 South, Hutchinson, htlnnesota 55350 • Telephone 61211587 -2148
May 9, 1989
The Honorable Mayor Paul Ackland and
Members of the City Council
City Hall
37 Washington Avenue West
Hutchinson, MN 55350
Dear Mayor Ackland and City Council Members:
Negotiations of the final rate and selection of the successful bidder for
the sale of a $500,000 five -year revenue note were completed yesterday. We
recommend the City Council award the bid for sale of such note to First
Midwest Lease Corporation of St. Paul, Minnesota, with a total required
payment of $604,194.60.
• As mentioned in a previous letter to you, we negotiated with six firms, one
of which elected not to submit bids. Results of the bidding process show
the total required payments ranged from a low of $604,194.60 to a high of
$629,450. The negotiated rate from First Midwest Lease Corporation shows
the lowest total required payment bid, with an average P & I of $120,838.92
paid monthly. The average maturity was 2.75 years, with a true interest
cost of 7.995% and arbitrage interest cost of 7.4 %. The issue includes all
costs of issuance.
The resolution and documents for this sale are being prepared by the firm
Briggs & Morgan.
This proposal has been reviewed in detail and meets our hospital's
requirements. Specific details of these bids are available upon request.
Thank you for your consideration of this recommendation.
Very truly yours,
HUTCHINSON COMMUNITY HOSPITAL
Francis P. Seivert
Director of Finance
FPS:lh
9 -�
hutcl-linson
community
hospital
1095 Highway 15 South, Hutchinson, Minnesota 55350 • Telephone 6121587 -2148
May 5, 1989
The Honorable Mayor Paul Ackland and
Members of the City Council
City Hall
37 Washington Avenue West
Hutchinson, MN 55350
Dear Mayor Ackland and City Council Members:
On Tuesday, March 28, 1989, the City Council approved a request from the Hospital
Board of Directors to issue a "revenue note or other form of revenue bonds" for
the specific purpose of purchasing various capital assets.
This issue would pledge the revenues from the Hospital only, and would not pledge
assets of the City of Hutchinson in any specific way.
Over the past few weeks, I have been in contact with various investor
representatives, seeking various forms of financing alternatives. I have
evaluated proposals of issuing "revenue bonds," "a revenue note," a tax - exempt
equipment lease(s) with annual appropriations, and general obligation
certificates of indebtedness for equipment. I have had discussions with Mr.
Barry Anderson, City Attorney; Mr. Gary Plotz, City Administrator; and with Mr.
Bill Fahey, City Financial Consultant.
I have sent out a "Request for Proposal" (RFP) to five different firms which have
the resources to place these types of issues with investors. These firms
include:
1. Ehlers & Associates;
2. First Midwest Lease Corporation;
3. Norwest Bank of Minneapolis;
4. Piper Jaffray & Hopwood; and
5. Bell- Atlantic Leasing.
Throughout the past weeks, I have been negotiating with these firms for a
reasonable interest rate. I have also analyzed the issuing costs and have
decided to include those in the issue and subsequent payment streams.
Since this is being treated as a negotiated sale, I have set Monday, May 8, 1989,
as the date to negotiate the final rate and select the successful bidder. We
will present our recommendation to you for your approval at your regular meeting
on Tuesday, May 9.
We are enclosing a sample resolution for your review. Our recommendation is
conditional upon receiving satisfactory opinions from the City bond counsel
and /or the City Attorney.
q K•
The Honorable Mayor Paul Ackland and
Members of the City Council
May 5, 1989
Page Two
Since this financing will be negotiated with the investor, I hope that the
closing date can take place within the next week.
If you need any further information, please do not hesitate to contact me or Mr.
Phil Graves, Hospital Administrator.
Thank you, in advance, for your consideration of this matter.
Very truly yours,
nKICHINSON COMMUNITY HOSPITAL
l�
cis AS02�%
Director of Finance
FPS: Ih
0
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�1� l 0
RESOLUTION AUTHORIZING ISSUANCE OF A HOSPITAL REVENUE
NOTE, PLEDGING HOSPITAL REVENUES TO THE PAYMENT THEREOF
AND GRANTING A SECURITY INTEREST
CI" 'o4wt7L
BE IT RESOLVED by the Eeerrrty ward of County,
Minnesota, (the "Issuer ") as follows:
WHEREAS:
(1) the Issuer owns and operates ,
a county hospital facility (the "Hospital") as a revenue
producing enterprise;
(2) the Issuer has incurred or intends to incur certain
capital costs in connection with the Hospital more fully
described in Exhibit A -2 attached to the Note and incorporated
herein by reference (the "Project"). In anticipation of
amortizing the costs of the Project through tax exempt
financing the Issuer has by this Resolution authorized the
issuance and execution of bonds in the form of a single debt
instrument in the form attached as Exhibit A hereto (the
"Note ") to permanently finance the Project, the pledge of
Hospital Revenues (as defined in the Note), and the grant of a
security interest in the Project to secure payment of the
Note, all in accordance with the provisions of Minnesota
Statutes, Section 447.45 to 447.50 (the "Act ");
(3) the amount estimated to be necessary to finance the
Project will require the issuance of the Note in the principal
amount of $ as hereinafter provided;
(4) the Note and the interest accruing thereon are
payable solely from the net revenues of the municipal hospital
and facility and do not give rise to a charge against the
general credit or taxing powers of the Issuer and neither the
full faith and credit nor the taxing powers of the issuer is
pledged for the payment of the Note or interest thereon.
NOW THEREFORE BE IT RESOLVED AS FOLLOWS:
1. Authorized Amount and Form of Note. The Note
issued pursuant to this Resolution shall be dated as of the
date of its issuance and shall be in substantially the form
set forth on Exhibit A attached hereto and incorporated herein
by reference, with such appropriate variations, omissions and
insertions as are permitted or required by this Resolution, .
and in accordance with the further provisions hereof; and the
total principal amount of the Note that may be outstanding
hereunder is expressly limited to $
2. Sale of the Note. That the offer of First
Midwest Municipal Lease Corporation (it and any registered
assign of the Note being hereinafter called the "Lender ") to
purchase the $ Hospital Revenue Note, Series
, referred to herein as the "Note ", in accordance with
the terms and at the rates of interest therein set forth, and
to pay therefor the sum of $ is hereby accepted.
3. Execution. The Note shall be executed on behalf
of the Issuer by the signatures of the Chairman of the County
Board and County Auditor and shall be sealed with the seal of
the Issuer; provided that the seal may be omitted as provided
by law. In case any officer whose signature shall appear on
the Note shall cease to be such officer before the delivery of
the Note, such signature shall nevertheless be valid and
sufficient for all purposes, the same as if had remained in
office until delivery. In the event of the absence or
disability of the Chairman of the County Board or the County
Auditor such officers of the Issuer as, in the opinion of the
Issuer's attorney, may act in their behalf, shall without
further act or authorization of the Issuer to execute and
deliver the Note.
4. Delivery of Initial Note. Before delivery of
the Note there shall be filed with the Lender (except to the
extent waived by the Lender) the following items: (1) the
executed Certification of the Issuer in the form attached
hereto as Exhibit B; (2) the executed UCC financing statement
in the form attached hereto as Exhibit C -1 and C -2; (3) an
executed Information Return for Tax Exempt Governmental Bonds
in the form attached hereto as Exhibit D; (4) an opinion of
counsel for the Issuer in substantially the form attached
hereto as Exhibit E; and (5) such other documents and opinions
as the Lender may reasonably require.
5. Registration of Transfer. The Issuer will cause
to be kept at the office of the County Treasurer a Note
Register in which, subject to such reasonable regulations as
it may prescribe, the Issuer shall provide for the
registration of transfers of ownership of the Note. The Note
shall be initially registered in the name of the Lender and
shall be transferable upon the Note Register by the Lender in
person or by its agent duly authorized in writing, upon
E
2
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•
surrender of the Note together with a written instrument of
transfer satisfactory to the County Treasurer, duly executed
by the Lender or its duly authorized agent. The following
form of assignment shall be sufficient for said purpose.
For value received hereby sells,
assigns and transfers unto
the within Note of County, Minnesota,
and does hereby irrevocably constitute and
appoint attorney to
transfer said Note on the books of said
Issuer with full power of substitution in
the premises. The undersigned certifies
that the transfer is made in accordance with
the provisions of Section 19 of the Note.
The Registered Owner attests that this
assignment and transfer is in full
compliance with applicable state and federal
security laws; including, specifically,
registration requirements and exemption from
registration requirements and further
certifies that no further action on the part
of Itasca County or its officials is
necessary.
Dated:
Registered Owner
Upon such transfer the Treasurer shall note the date of
registration and the name and address of the new Lender in the
Note Register and in the registration blank appearing on the
Note.
6.
on of Oual
In order to qualify the Note as a "qualified tax - exempt
obligation" within the meaning of Section 265(b)(3) of the
Code, the Issuer hereby makes the following factual statements
and representations:
(a) the Note is issued after August 7, 1986;
(b) the Note is not a "private activ.ity bond" as
defined in Section 141 of the Code;
(c) the Issuer hereby designates the Note as a
"qualified tax - exempt obligation" for purposes of Section
265(b)(3) of the Code;
(d) the reasonably anticipated amount of tax - exempt
obligations (other than private activity bonds, treating
qualified 501(c)(3) bonds as not being private activity
bonds) which will be issued by the Issuer (and all
subordinate entities of the Issuer) during this calendar
year 19_ will not exceed $10,000,000; and
(e) not more than $10,000,000 of obligations issued
by the Issuer during this calendar year 19 have been
designated for purposes of Section 265(b)(3) of the Code.
The Issuer shall use its best efforts to comply with any
federal procedural requirements which may apply in order to
effectuate the designation made by this paragraph.
7. Preservation of Tax Exempt Status of the Note.
In order to preserve the tax exempt status of the Note, the
Issuer covenants that it shall take such actions as are
required and within their reasonable control to prevent the
interest on the Note from becoming taxable for federal income
tax purposes for the owners thereof including but not limited
to the following:
(A) Not Private Activity Bond.
hereby covenants not to use the Project or
permit it to be used by a non - governmental
such a manner as to cause the Note to be a
activity bond" within the meaning of Secti
through 150 of the Code.
The Issuer
to cause or
person, in
"private
ins 103 and 141
(B) Yield Restriction; Rebate. The Issuer
shall comply with requirements under Section 148 of the
Code relating to temporary periods for investments,
limitations on amounts invested at a yield greater than
the yield on the Note, and the rebate of excess
investment earnings to the United States if the Note
(together with other obligations reasonably expected to
be issued and outstanding at one time in this calendar
year) exceeds the small- issuer exception amount of
$5,000,000 hereinafter described. For purposes of
qualifying for the small issuer exception to the federal
arbitrage rebate requirements, the Issuer hereby finds,
determines and declares that the aggregate face amount of
all tax - exempt bonds (other than private activity bonds)
issued by the Issuer (and all subordinate entities of the
Issuer) during the calendar year in which the Note is
issued and outstanding at one time is not reasonably
L .J
4
expected to exceed $5,000,000, all within the meaning of
Section 148(f)(4)(C) of the Code.
8. Registration of Resolution. The Treasurer is
authorized and directed to cause a copy of this Resolution to
be filed with the County Auditor of Itasca County, and to
obtain from said County Auditor a certificate that the Note as
a bond of the Issuer has been duly entered upon his or her
bond register.
9. Authorization to Execute Documents. The forms
of the Note, Certificate of the Issuer, UCC -1 Financing
Statements and Information Return for Tax Exempt Governmental
Bonds are hereby approved in substantially the forms attached
hereto as Exhibits A, B, C -1, C -2 and D, together with such
additional details therein as may be necessary and appropriate
and such modifications thereof, deletions therefrom and
additions thereto as may be necessary and appropriate and
approved by Bond Counsel and the Issuer Attorney prior to the
execution of the documents. The Chairman of the County Board
and County Auditor are authorized to execute such documents
together with any other documents as Bond Counsel consider
appropriate in connection with the issuance of the Note. In
the event of the absence or disability of the Chairman of the
County Board or the County Auditor such officers of the Issuer
as, in the opinion of the Issuer Attorney, may act in their
behalf, shall without further act or authorization of the
Issuer do all things and execute all instruments and documents
required to be done or executed by such absent or disabled
officers. The execution of any instrument by the appropriate
officer or officers of the Issuer herein authorized shall be
conclusive evidence of the approval of such documents in
accordance with the terms hereof.
Adopted:
0
J
Brad Emans
Asst. Chief, H.F.D.
Dear Mayor and Council:
HUTCHINSON
FIRE DEPARTMENT
205 Third Avenue South East
HUTCHINSON, MINNESOTA 55350
Chief: Orlin "Butch "Henke
May 2, 1989
It is spring cleaning time and we have old excess to sell.
1) 15 Minitor pagers that are 10 to 12 years old that we can sell for
$50.00 each to McManus Communications. My recommendation would be to
use the sale money to buy 2 new Minitor II pagers. As you know we are
in the middle of replacing all are pagers.
2) 5 to 7 pair of odd size bunker pants that we can sell for $50.00 to
$75.00 per pair. The sale money could be put in our equipment budget.
If you have any questions, feel free to call me.
Sincerely,
Brad Emans
Is
9-/4
May 5, 1989
AArroLD & MGDOwELL
ATTORSEY4 AT LAW
101 PARK PLACE-
HCTCHINSON, MINNESOTA 55'150
Mr. Gary D. Plotz
City Administrator
37 Washington Avenue West
Hutchinson, Mn. 55350
(6I2) 587 -7575
TELECOPIER(012) 587' 4008
RESIDENT ATTORNEY
G. BARRY ANDERSON
Re: Sturges vs. City of Hutchinson
our File No. 3244 -87 -0008
Dear Gary:
,F I'll 11.1
WILLIAM W. CAMERON
PAUL D. DOVE
5881 CEDAR LAKE ROAD
MINNEAPOLIS, MINNESOTA 55416
(612')545 -6000
MN TOLL FREE 800.343 -4545
TELEGOPIER(612) 545 -1103
501 SOUTH FOURTH STREET
PRINCETON, MINNESOTA 5ri.371
((112) J89-22L4
TELECOPIER(012) 380 -5509
�2345g)\
91-"
REC iV�z„€3
tZ
I am requesting that the above referenced matter be placed one
• again on the agenda for consideration next Tuesday. I am enclosing
herewith a revised Easement for the signature of Delmer Sturges and
his wife, Doris Sturges.
I am also enclosing a copy of my settlement letter of January 6,
1989.
This settlement was held up because of a couple of concerns.
First, the City felt it would be helpful to have an engineer on
board to review the settlement prior to final approval. I have
separately written Marlow on this subject.
Second, I had expressed some concern about the language in the
proposed easement having to do with granting permission to Mr. and
Mrs. Sturges to drain into the system. Limiting language
restricting that right to agricultural purposes has been inserted
into the easement. The easement has also been modified slightly
to make it clear that it is at City discretion as to whether or not
the pipe will be buried.
There was one question raised by the Council to which there may
never be a satisfactory answer. That issue concerns the obligation
in the easement for covering the pipe. As the former City Engineer
mentioned during our last discussion of this subject, that could
be an expensive proposition. on the other hand, the property owner
. sees no reason to make a contribution to the covering of the pipe
since the pipe has little if any benefit to him. Further, since
�C _X7
DAVID U. ARNOLD
CHARLES R. CARMICIIAEL
CARY D. M' DOW'ELL
STEVEN A. ANDERSON
0. DARR1 ANDERSON
STEVEN S. HOLE
LAURA H. FRETLAND
DAVID A. DRCEOCEMANN
JOSEPH M. FAIEMENT
JAMES UTLEY
JULIA A. CHRISTIANS
RICHARD G. MCGEE
May 5, 1989
AArroLD & MGDOwELL
ATTORSEY4 AT LAW
101 PARK PLACE-
HCTCHINSON, MINNESOTA 55'150
Mr. Gary D. Plotz
City Administrator
37 Washington Avenue West
Hutchinson, Mn. 55350
(6I2) 587 -7575
TELECOPIER(012) 587' 4008
RESIDENT ATTORNEY
G. BARRY ANDERSON
Re: Sturges vs. City of Hutchinson
our File No. 3244 -87 -0008
Dear Gary:
,F I'll 11.1
WILLIAM W. CAMERON
PAUL D. DOVE
5881 CEDAR LAKE ROAD
MINNEAPOLIS, MINNESOTA 55416
(612')545 -6000
MN TOLL FREE 800.343 -4545
TELEGOPIER(612) 545 -1103
501 SOUTH FOURTH STREET
PRINCETON, MINNESOTA 5ri.371
((112) J89-22L4
TELECOPIER(012) 380 -5509
�2345g)\
91-"
REC iV�z„€3
tZ
I am requesting that the above referenced matter be placed one
• again on the agenda for consideration next Tuesday. I am enclosing
herewith a revised Easement for the signature of Delmer Sturges and
his wife, Doris Sturges.
I am also enclosing a copy of my settlement letter of January 6,
1989.
This settlement was held up because of a couple of concerns.
First, the City felt it would be helpful to have an engineer on
board to review the settlement prior to final approval. I have
separately written Marlow on this subject.
Second, I had expressed some concern about the language in the
proposed easement having to do with granting permission to Mr. and
Mrs. Sturges to drain into the system. Limiting language
restricting that right to agricultural purposes has been inserted
into the easement. The easement has also been modified slightly
to make it clear that it is at City discretion as to whether or not
the pipe will be buried.
There was one question raised by the Council to which there may
never be a satisfactory answer. That issue concerns the obligation
in the easement for covering the pipe. As the former City Engineer
mentioned during our last discussion of this subject, that could
be an expensive proposition. on the other hand, the property owner
. sees no reason to make a contribution to the covering of the pipe
since the pipe has little if any benefit to him. Further, since
�C _X7
Mr. Gary D. Plotz
May 5, 1989
Page 2
the easement is granted solely for a municipal improvement, the
maintenance of that municipal improvement, if it creates any
liability, creates liability for the City of Hutchinson and no one
else. In other words, it will be to the City's benefit to cover
the ditch when and if that issue arises in the future.
To the extent there is any benefit to the property owner from
covering the ditch (land reclamation and the like) , those costs may
very well be accessible to the property owner although I hesitate
to make any firm comments in view of the long period of time that
will likely pass before any significant discussion concerning
enclosing the ditch occurs.
On balance, I believe the settlement is a sensible one with the
easement to be executed as revised. I would ask that the City
approve the revised easement and the terms of the settlement
involving a payment of $14,000 by the City of Hutchinson and the
balance by the City's insurance carrier.
If you have any questions with regard to this matter, do not
hesitate to contact me.
Thank you.
Very truly
G. 'B"arry_Anderson
GBA:lm
DAVID B. ARNOLD
.CHARLES R. CARMICHAEL
GARY D. MIDOMELL
STEVEN A. ANDERSON
O. BARRY ANDERSON
STEVEN S. MOOR
CHARLES L NAIL, JR.
LAURA R. PRETLAND
DAVID A. BRUEOOEMANN
JOSEPH M. PAIEMENT
JAMES UTLEY
JULIA A. CHRISTIANS
January 6, 1989
ARNOLD & McDOWELL
ATTORNEYS AT LAw
101 PARR PLACE
HUTCHINSON. MINNESOTA 55350
(612) 587 -7575
RESIDENT ATTORNEY
O. BARRY ANDERSON
Honorable Paul Ackland
Mayor of Hutchinson
148 Hassan Street
Hutchinson, Mn. 55350
Mr. John Mlinar
704 Hilltop Drive
Hutchinson, Mn. 55350
Mr. Michael Carls
915 Neal
• Hutchinson, Mn. 55350
Mr. Marlin Torgerson
1245 Rolling Oaks Lane
Hutchinson, Mn. 55350
Mr. Pat Mikulecky
605 Harmony Lane
Hutchinson, Mn. 55350
Re: Sturges vs. City of Hutchinson
Our File No.: 3244 -87 -0008
Gentlemen:
6061 CEDAR LAME ROAD
MINNEAPOLIS, MINNESOTA 66410
(612) 645 -0000
MN TOLL FREE 600 -040 -4546
501 SOUTH FOURTH STREET
PRINCETON, MINNESOTA 66071
(612) 3BG -2214
As you may recall, I was authorized by the city council to commense
eminant domain proceedings if a negotiated settlement could not be
reached on the claims of Mr. Sturges regarding construction of a
ditch located on the southerly edge of the City of Hutchinson.
To review briefly, you may also recall that the settlement proposal
made by the plaintiff in this matter was a demand in the neighbor-
hood of $35,000.00 plus the loss of use of the real estate.
Since council authorization, I have been in contact with the attorney
for the plaintiff and this matter has been thoroughly analysed and
argued; plaintiff's demand has dropped steadily and the settlement
proposal now on the table, without any additional offer on the part
of the City of Hutchinson, is $15,000.00., A copy of the settlement
proposal is included in your packet.
January 6, 1989
Page 2
0
The insurance carrier for the City of Hutchinson has no responsibility
for damages arising out of the loss of the land. Nonetheless, I have
arranged to have the insurance carrier contribute $1,000.00 towards
the settlement amount plus pay the additional damages claimed by
Sturges for the loss of the use of the land (which amounts to only
$160.00).
Thus, the settlement proposal before the city council is to pay the
sum of $14,000.00 ($15,000.00 minus $1,000.00) in exchange for an
easement and in exchange for a commitment to cover the ditch when
it would become appropriate and consistent with existing city policy.
The precise language would need to be approved by the city engineer,
but I assume in general this concept is acceptable.
It would be my recommendation to the city council that the proposal
now before the City of Hutchinson be approved. It is possible, of
course, that if an eminent domain proceeding were completed the
damages would be less than $14,000.00. However, I think a more
likely outcome is probably of an award of somewhere between ten and
twelve thousand dollars and frankly, the risk of a much higher award
is not worth the gamble represented by the additional two thousand
dollars in the proposed settlement.
It would be my recommendation to simplify matters and to have the .
settlement proposal as outlined by Mr. Malecki's letter dated
December 28, 1988, approved subject to approval by the city engineer
and city attorney of tha language to be included in the release of
all claims.
Obviously, we would also need an easement from Mr. Sturges as part
of the settlement.
The easiest way to handle this matter is to allow this matter to be
placed on the agenda unless someone objects strongly and wishes to
have a closed meeting. Please let the administrator know if that is
your wish.
Thank you.
Best personal regards,
ARNOLD & McDOWELL
G. Barry Anderson
GBA:mb
CC: Gary D. Plotz
EASEMENT
•
In return for the payment to them of $15,000, the receipt of
which is hereby acknowledged, Delmer Sturges and Doris Sturges,
husband and wife, of the County of McLeod, State of Minnesota,
hereinafter referred to as "GRANTORS," do hereby grant, bargain,
and convey to the City of Hutchinson, a Minnesota municipal
corporation, its heirs and assigns, a perpetual easement and right -
of -way for the location, establishment, construction, and
maintenance of an open drainage ditch (subject to the conditions
recited hereinafter) approximately 90 feet in width and 665 feet
in length, in a corridor over and across the Southwest Quarter (SW
1/4) of the Northeast Quarter (NE 1/4) of Section 12, Township
• 116N, Range 30W, McLeod County, Minnesota, said corridor being
located over and across said Southwest Quarter (SW 1/4) of the
Northeast Quarter (NE 1/4) of Section 12- 116N -30W, as shown on the
surveyor's sketch dated September 11, 1987, marked Exhibit "A,"
attached hereto and made a part hereof by reference. The grant of
this easement to include the grant of reasonable access over lands
adjacent to said open ditch for future maintenance purposes,
provided that any future maintenance work so undertaken is done in
such a manner as to minimize crop or other damage to the adjacent
lands.
The sole purpose for the grant of the within easement is for
said open drainage ditch or later buried pipe or buried storm sewer
drain to receive storm sewer drainage waters discharged or to be
• discharged by the City of Hutchinson into said drainage ditch or
later buried pipe or buried storm sewer drain.
As additional consideration for the grant of the within
easement and as a condition for the continuation of the easement,
GRANTORS and their heirs and assigns shall have the perpetual
right, without fee, cost or expense, to drain their lands in-the
Southwest Quarter (SW 1/4) of the Northeast Quarter (NE 1/4),
Section 12- 116N -30W, into the open drainage ditch or later buried
pipe or buried storm sewer drain, to be located within the easement
granted hereby. It is understood that the permission to drain is
granted by the City solely for agricultural purposes.
As additional consideration for the grant of the within
easement and as a condition for the continuation of the easement,
the City of Hutchinson shall, at such time in the future as real
estate development conditions on or near the Southwest Quarter (SW •
1/4) of the Northeast Quarter (NE 1/4) of Section 12- 116N -30W
warrant and at the discretion of the City, convert the open
drainage ditch presently permitted by the within easement into a
buried pipe or buried storm sewer drain, at which time the easement
granted hereby shall, without further action by GRANTORS, their
heirs or assigns, be modified or amended to provide to the City of
Hutchinson, a perpetual easement for the location, establishment,
construction and maintenance of a buried pipe or buried storm sewer
drain within the corridor described herein above, with rights to
the use of the surface above said buried pipe or buried storm sewer
drain to revert to GRANTORS, their heirs, and assigns, provided
that the exercise of said rights with respect to the use of the
surface lands above said buried storm sewer pipe or storm sewer •
drain shall in no way interfere with or otherwise harm the
• continued operation and maintenance of said buried pipe or buried
storm sewer drain by the City of Hutchinson.
Dated this day of May, 1989.
Delmer Sturges
Doris Sturges
STATE OF MINNESOTA)
ss.
COUNTY OF McLEOD )
The foregoing instrument was acknowledged before me this
day of May, 1989, by Delmer Sturges and Doris Sturges, husband and
wife, Grantors.
0
Drafted by:
G. Barry Anderson
ARNOLD & MODOWELL
101 Park Place
Hutchinson, Mn. 55350
Telephone (612) 587 -7575
Attorney I.D. No. 196X
0
Notary Publ
CENTRAL GARAGE FUND
*PERA
Hutch Sports Inc.
Brandon Tire
Boyu!n Equipment
Carquest Auto Parts
Farm & Home
Hutch Wholesale
Jerabek Machine Shop
• MTI Dist. Co.
MacQueen Equipment
Pederson Sells Equipment
Sorenson Farm Supply
U.S.Postmaster
Wigen Chev.
employer contribution
REGULAR COUNCIL MEETING
May
9, 1989
•
6.00
gutter broom
202.50
parts
WATER $ SEWER FUND
supplies
9.80
supplies
*PERA
employer contribution
$322.89
parts
*U.S. Postmaster
postage for water bills
161.77
parts
Ed Dulas
polish
7.50
meter postage
Davies Water Equipment
repairs
135.39
Pro Maintenance Inc.
quartz
4000.00
City Hall $ offices
1" meter
145.50
Am. National Bank
agents fees
364.80
Am. National Bank
principal and interest
401,506.25
Anderson Interiors
supplies & rental
46.95
Coast to Coast
supplies
155.85
Commissioner of Revenue
sales tax
760.04
Curtin Scientific
chemicals
30.23
Data Stream Systems
repairs
1250.00
Dixie Petro Chemical
chemicals
427.70
Erickson More 4
supplies
3.69
Ed Davis Bus Machines
office supplies
148.20
Fisher Scientific
supplies
1811.52
Farm F, Home
supplies
31.81
Farmers Elevator Assn
lawn mix
92.50
Floor Care Supply
supplies
659.59
Fitzloff Hardware
supplies
19.38
G & K Services
uniform rental
96.80
Hach Co.
supplies
95.00
•
The Hotsy Corp,
supplies
39.00
Hutch Utilities
gas $ electricity
14,301.05
Hutch Fire $ Safety
repairs
27.80
Junker Sanitation
refuse charges
37,299.80
Mn. Valley Testing Lab
testing
214.20
Plaza Hardware
supplies
34.08
Power Process Equipment
chart
81.95
Sorenson Farm Supply
ladder rental
12.50
State Treasurer
Class IV certificate -Meece
15.00
State Treasurer
certification fee -Lanz
15.00
Tri Co. Water Cond.
salt
8.00
U.S. Postmaster
meter postage
93.40.
$ 464,349.14
CENTRAL GARAGE FUND
*PERA
Hutch Sports Inc.
Brandon Tire
Boyu!n Equipment
Carquest Auto Parts
Farm & Home
Hutch Wholesale
Jerabek Machine Shop
• MTI Dist. Co.
MacQueen Equipment
Pederson Sells Equipment
Sorenson Farm Supply
U.S.Postmaster
Wigen Chev.
employer contribution
$50.91
parts
53.25
repairs
6.00
gutter broom
202.50
parts
1096.01
supplies
9.80
supplies
485.23
supplies
11.75
parts
321.67
parts
2376.00
parts
52.89
supplies
3.50
meter postage
3.25
repairs $ parts
164.29
$ 4837.05
11-al l
GENERAL FUND
*U.S.Postmaster
May postage for Sr. newsletter
5165.44
*Dept. of Natural Resources
DNR registration fees
486.00
•
*Templeton Funds Trust Co.
employer contribution
164.08
*Mn. Renaissance Festival
tickets
231.25
*Chanhassen Dinner Theatres
46 tickets
1077.75
*PERA
employer contribution
4168.27
*McLeod Co. Treasurer
chloride treatment
2701.00
*Dept. of Natural Resources
DNR registration fees
435.00
*Roger Bakken
5 3M tapes
12.50
*11SU Dept. of Theatre Arts
46 tickets
287.50
Kathy Stouvenal
MRPA conf.
67.08
Mary Haugen
Mn Aquatic conf.
100.08
Millie Messner
shelter reservation
10.00
Marlin Torgerson
damage to sprinkler head
20.00
Floyd Groehler
seminar expenses
10.57
Douglas Meier
seminar expenses
15.97
Edward J. Harper
%safety boots
30.00
Arne Heil
tour refund
15.00
Rex Haraldson
prom refund
18.00
Finley Mix
%safety glasses
80.00
Leo Lamecker
gas key refund
30.00
Jay Berglund
partial refund overpayment
145.00
Lori Galles
league fee partial refund
33.00
Maggie Mueller
overpayment partial refund
103.00
Evan Swanson
league deposit refund
25.00
Donald Krussow
brackets $ opening car doors
70.00
Hazel Sitz
logis training meeting
31.43
•
Lori Adamietz
CAD training
17.97
Janet Brown
CAD training
37.78
Nancy Buss
Logis training
65.63
Jean Gray
CAD training
78.28
Barbara Mathwig
CAD training
12.82
Sharon Zieman
CAD training
14.72
Steven C. Madson
expenses
327.79
American Trest Center
repairs
545.00
AMI Roto Rooter
opening line
38.00
Americ Inn
room -Liz Gerebie
129.16
Bargen Inc.
crack routing etc.
12,036.00
Beacon Products Inc.
supplies
481.00
Bureau of Bus. Practice
subscription
65.88
Clareys Safety Equipment
supplies
151.50
Carlton Inn
hotel reservation-
2726.00
Com.of Transportation
4 signs
340.00
Flaherty Equipment Corp.
repairs
520.93
Government Training Office
registration fee
15.00
Gemplers Inc.
supplies
39.90
Int'l Conf. Bldg. Officials
uniform code
18.90
Jayco Aviation
aviation gas
4538.40
Kandi Roofing Co.
patching $ repairing hole
144.00
Mn.State Armory Bldg. Com.
yearly payment
1000.00
Marks TV service
buzzer & speaker
100.00
McLeod Co. Historical Society
1st payment for 1989
2500.00
•
Mn. Public Transit Assn.
registration fees
20.00
Mn. Bookstore
peace officer training manuel
5.50
NRPA
dues to NRPA
85.00
Natl Fire Prot. Assn.
subscription
17.50
Natl Auto Dealers
used car guide subscription
35.00
-3-
Office Products
repairs
$25.00
Old Log Theatre
46 tickets
1046.50
Peters
meeting
20.00
•
Priebe Eng. PA
eng.services $ expenses
2141.37
Publications Center
literature
15.30
R.E. Mooney F, Assoc.
supplies
973.20
Rickman Seed Center
chemicals
328.00
The Sheep Shedde
conf. with park director
20.66
Technical Inst. of Hutchinson
firefighter class
32.00
Wesleys Pharmacy
film processing
4.86
Albinson
supplies
76.03
Albrecht Oil Co.
gasoline $ kerosene
305.04
Allen Office
supplies
14.95
Allen Office
supplies
61.74
Allied MechanicalSystems
supplies
22.73
AN.Welding Supplies
cylinder rental
6.50
Bremis Concrete Co.
supplies
232.69
Bureau of CriminalAppr.
CJDN connection chgs.
150.00
Brinkman
film
13.98
Bennett Office
repairs
47.67
Bennett Office Supplies
repairs F, supplies
68.04
BRW
prof. services
1113.55
John Bernhagen
May compensation
1800.00
Carr Flowers
plant -K.Moe
15.00
Chapin Pub.Co.
publication costs
72.00
Carquest Auto Parts
supplies
16.11
Crown River Vet Clinic
boarding fees
157.90
Coast to Coast
supplies
10.02
•
Coast to Coast
supplies
263.53
Coast to Coast
supplies
480.00
Chamber of Commerce
rental $ secretarial
379.51
Copy Equipment
repairs & supplies
531.20
Co. Treasurer
DL fees
102.50
Co. Treasurer
real estate tax es
708.16
County Market
supplies
22.87
Chas. Bailly Y Co.
audit services
11,715.00
Culligan Water Cond.
repairs $ salt
31.70
Ericksons More 4
supplies
25.75
Family Rexall Drug
pictures
6.57
Family Rexall Drug
supplies
91.03
Farm $ Home
supplies
216.53
Feed Rite Controls
chemicals
15.00
Floor Care Supplies
cleaning supplies
3097.61
Fitzloff Hardware
supplies
213.93
GF Nemitz Sons
pint
35.50
G.A. Ernst $ Asso.
29 audits
2916.00
Gopher State One Call
58 calls
342.50
Guardian Pest Control
pest control
44.00
G $ K Services
uniform rental
488.24
Hager Jewelry
UPS charges
6.47
Hager Jewelry
name plaque
S .-S
Henrys Candy Co.
supplies
582.97
.
Home Bakery
Hutch Conventions $ Vistors Bureau
cookies
March collection tax
9.00
1308.66
Hutch Com. Hospital
laundry
32.40
Hutch Iron $ Metal
iron
16.29
Hutch Landscaping
tree
35.00
Hutch Leader
advertising
697.16
-4-
Hutch Utilities
gas $ electricity
$8652.63
•
Hutch Wholesale
supplies
418.81
Hutdh Wholesale
supplies
26.49
Hutch Fire $ Safety
maintenance
96.90
HCVN #10
cable franchise
750.00
Ink Spots
printing
128.45
Insurance Planners
ins. agent fees
63.10
K Mart
supplies
30.91
Kokesh
supplies
175.56
Marco Bus. Products
office supplies
267.27
Mankato Mobile Radio
repairs
45.00
McLeod Coop Power Assn.
electricity
519.44
Meeker WashedSand
p. rock $ sand
852.36
Mid Central Inc.
equipment
256.00
Kenneth Merrill
logis meetings
35.37
Mn.U.C.Fund
unemployment comp.
300.44
Mn. Elevator Inc.
elevator service
54.85
MRPA
dues
110.00
MRPA
workshop reg. fees
35.00
McGarvey Coffee
coffee
125.51
Northern States Supply
supplies
102.35
Plaza Hardware
supplies
134.52
Quades Sport Shop
supplies
672.70
Rutz Plbg & Htg
repairs
45.00
Schmeling.0il Co.
gasoline & diesel fuel
14.65
Shopko
supplies
45.83
•
Sorensen Farm Supply
supplies 4 rental
212.50
Standard Printing
printing
143.47
Two Way Com. Inc.
repairs & equipment
1124.00
Two Way Com. Inc.
repairs
104.40
Tri Co. Water Cond.
salt $ service
55.50
U.S. Postmaster
meter postage
478.35
Xerox Corp.
contract payt & maintenance
524.19
West Central Ins. Inc.
supplies
1106.74
Wigen Chev co.
repairs
2164.77
Wm. Mueller & Sons
sand
115.50
$ 95,840.81
Menard Buildings
8 unit hanger
104,900.00
BOND FUNDS
1984 Parking Impr. Bonds
First Trust
agent fees
$ 703.50
Bonds of 1987 DebtService
Am. National Bank
bond principal $ interest
137,300.00
Bonds of 1979
•
Norwest Bank
interest & agent fees
5,896.25
Bonds of 1977
Norwest Bank
bond principal,interest $ fees
82,200.00
MM
LIQUOR STORE FUND
Withhold Tax Account
City of Hutchinson
Withhold Tax Account
City of Hutchinson
PERA
Commissioner of Revenue
PERA
Quality Wine F, Spirits
Johnson Brothers
Griggs Cooper $ Co.
Ed Phillips &Sons
Quality Wine & Spirits
Griggs Cooper $ Co.
Johnson Brothers Wholesale
Ed Phillips & Sons
Quality Wine $ Spirits Co.
Johnson Brothers
Griggs Cooper $ Co.
Ed Phillips $ Sons
is
0
employer contribution
$291.74
payroll
4046.88
employer contribution
293.03
payroll
4283.08
employer contribution
160.68
April sales tax
8184.96
employer contribution
163.45
wine & liquor
447.14
wine $ liquor
3139.72
wine & liquor
3425.05
wine & liquor
1034.52
wine $ liquor
1419.31
wine & liquor
1619.88
wine $ liquor
1468.39
wine & liquor
37.96
wine & liquor
2419.55
wine $ liquor
1994.47
wine $ liquor
1792.47
wine $ liquor
6860.96
$39,443.24
0
(612) 587 -5151
JW ITY OF HUTCHINSON
WASHINGTO N AVENUE WEST
CHINSON, MINN. 55350
TO
MAYOR & CITY COUNCIL
MEMO
3/_\7
FROM: KEN MERRILL, FINANCE DIRECTOR
---------------------------------------- - - - - --
_3
SUBJECT: PERMANENT PART TIME EMPLOYEE
------------------------------------------ - - - - --
FOR YOUR INFORMATION
In the 1989 Finance Department budget we have budgeted funds for
a permanent part -time position. Internally we have met and
reviewed what is anticipated of the position.
Hazel Sitz, Personnel Coordinator, has created the job description
for the position based upon the discussion. Gary Plotz, has
reviewed and agrees to the request.
If there is no objection by the City Council, we will begin
advertising for this position in the Thursday (May 4, 1989) edition
of the Hutchinson Leader. We will of course post the job
internally giving our employees first opportunity. We then will
fill the job under current city council policy.
TITLE ACCOUNTING TECHNICIAN jobdes70
5 -89
DEPARTMENT FINANCE -36-
SUPERVISED BY DIRECTOR OF FINANCE
SUMMARY THIS IS DATA ENTRY AND RECORD KEEPING WORK RELATING TO
CITY FINANCIAL RECORDS
DUTIES AND RESPONSIBILITIES
1 Prepares verified claims for payment for each city council meeting.
Enters data on terminal.
2 Assists in processing checks for payment of claims after checks are
printed. Files verified accounts after payment.
3 Assists in preparation and entry of cash receipts into computer
terminal.
4 Prepares miscellaneous billings. Maintains records on miscellaneous
billings.
6 Assists with perpetual inventory system of liquor store, including
invoice entry.
7 Assists with special assessment data maintenance.
8 Serves as backup for other finance department functions.
9 Performs related duties as required.
EQUIPMENT
Typewriter, calculator, data entry terminal
DESIRABLE QUALIFICATIONS
Training and experience in computerized accounting methods and procedures.
Efficient work habits with accuracy and attention to detail. Ability to
prioritize work and assume increasing responsibility.
WORKING CONDITIONS
Average 20-25 hours per week; flexible hours as arranged with director.
STARTING RATE
$7.00 /hour DOG
9
0
E
DAVID B. ARNOLD
CHARLES R. CARMICHAEL
GARY D. MCDOWELL
STEVEN A. ANDERSON
G. BARRY ANDERSON
STEVEN S. HOGE
LAURA E. PRETLAND
DAVID A. BRUEGGEMAHN
JOSEPH M. PAIEMENT
JAMES UTLEY
JULIA A. CHRISTIANS
RICHARD G. McOEE
May 1, 1989
AANOLD & MGDOWELL
ATTORNEYS AT L.Aw
5881 CEDAR LASE ROAD
MINNEAPOLIS, MIR"NESOTA 55419 -1492
(612) 545 -9000
MN TOLL FREE 800- 343-4545
CABLE MGLAW MINNEAPOLIS
TELEGOPIER (612)545 -1703
Mr. Gary D. Plotz
Hutchinson City Administrator
37 Washington Avenue West
Hutchinson, MN 55350
RE: Our File No.: 3244 -88 -0027
Dear Gary:
OF COUNSEL
WILLIAM W. CAMERON
PAUL D. DOVE
501 SOUTH FOURTH STREET
PRINCETON, MINNESOTA 55371
(612) 389 - 2214
TELECOPIER(612) 388 -5506
101 PARR PLACE
HUTCHINSON. MINNESOTA 55350
(610) 561 -0575
TELECOPiER (012)56] -4086
3p31-1231 �2`� .� Se
^ti (
r CC � M,EY 1919
N _ h
l0 _mac.
Y
(� 7f �2�2o2bLSi1ti��`
FOR YOUR INFORMATION
This letter is to advise you, and for you to pass along to the
council at the next regularly scheduled 'c- counciu meeti erg, ctra�
the Mayor and myself met with Richard Horak, a professional
construction manager (and also a registered engineer) to discuss
issues relating to the police station and the resolution of still -
open claims between the City of Hutchinson and the construction
manager assigned to the project.
I have not heard from Mr. Horak regarding his opinion and I will
advise you of any developments.
Thank you.
Very truly yours,
(612) E
H • U • T•
C • H
• I N • c • 0 • N
tv1 =!
• N
N -E
• S • _,O •T • A
,fie �
'..G.-
,-rte -- .�,!�,�,�_
�'.�,�_
�'_
�< °�
r r-- �, ^- Lc%^',..,,,•-
37 bvashington Ave. W. • Hutchinson. MN 55350
FOR YOUR INFORMATION
M E M O R A N D U M
DATE: May 4, 1989
To: Mayor & City Council
FROM: Skip Quade, Chairman
MAINSTREET Hutchinson
RE: Christmas Street Light Decoration
Replacement Committee
We request that the following members of MAINSTREET Hutchinson be
appointed to the Christmas Street Light Decoration Replacement
Committee:
Colleen Willhite
Joanne Willmert
Jay Beytien
The MAINSTREET Hutchinson project is organized and well underway. We re-
quest your consideration for appointments to any boards or commissions re-
lating to our downtown community.
Thank you in advance for your support.
0 /ms
TO:
FROM:
SUBJECT
r(612) 587 -5151
CITY OF HUTCHINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
M E M O R A N D U M
DATE: May 5, 1989
FOR YOUR INF_ORMAJV
Mayor and Council
------------------------ - - - - --
Downtown Design Review Committee
-- — — — — — — — — — — — — — — — — — — — — — — — — — — — —
—CHRISTMAS STREET LIGHT DECORATION REPLACEMENT COMMITTEE
— ---------------------- - - - - --
We request that the following member of the Downtown Design Review
Committee be appointed to the Christmas Street Light Decoration
Replacement Committee:
Rich Westlund
Thank you in advance for your support.
/bb
1]
Y.Y PARKS • RECREATION • FORESTRY
900 Harrington Street Hutchinson, Minnesota 55350
5 , 4 ,g
(612) 587 -2975
SENIOR CENTER CIVIC ARENA
587 -6584
6�A
TO: Gary Plotz, Administrator
FROM: Dolf Moon, Director of Parks & Recreation
DATE: May 4, 1989
RE: Library Square Lights FOR YOUR INFORMATION
Quade Electric has informed me they are waiting to recieve lamps.
They anticipate recieving the lamps Friday, May 5, 1989 and in-
stallation will begin immediately, Friday, time and weather per-
mitting. If installation cannot be completed by Friday, they
will take care of the situation early next week. I impressed
upon them the urgency of this matter.
klm
=S EN
ENGINEERSI ARCNITECM ■PLANNERS
April 19, 1989
222 EASTLITTLE CANADA ROAD, ST PAUL, MINNESOTA 55177 672 4840272
u
Mr. Gary D. Plotz,
Administrator
City of Hutchinson
37 Washington Avenue West
Hutchinson, Minnesota 55350
Dear Mr. Plotz:
9
APR�. �is S a^
RECE r ED
m
v
LJ
FOR YOUR INFORMATION
We would like to modify our submittal for the Needs
Assessment /Space Study for the City Hall to include optional
consultants to be considered by the City's.
The firm of Kaeding and Associates /Wentz (Electrical /Mechanical)
are very familiar to us; we have worked together on numerous
assignments. Orfield Associates (Acoustics) even though we have
not worked with them is considered qualified to work on your
project.
We do not anticipate any change in our scope regarding the
acoustics however you may wish to broaden Orfields work and the
fees then would be adjusted accordingly.
Sincerely,
Short - Elliott - Hendric o Inc.
Da in M. Lind? 1, AIA
DML /dma Project Manag
0
SHORT ELLIOTT ST PAUL, CHIPPEWA FALLS,
HENDRICKSON 1NC. MINNESOTA WISCONSIN
0
0
HUTCHINSON POLICE DEPARTMENT MEMORANDUM
TO Gary Plotz
FROM Ron Kirchoff
SUBJECT Echo, Oakland & Main Street traffic accidents
DATE April 25, 1989
FOR YOUR INFORMATION
Ref. accidents at Echo Drive & Oakland and Echo Drive & Highway 15 for 1988
they are as follows:
12 -9 -88 Echo Drive & Oakland Avenue
10 -20 -88 Main Street & Echo Drive
12 -16 -88 Echo Drive & Oakland Avenue
12 -16 -88 Oakland Avenue & Echo Drive
From 1 -1 -89 through 4 -24 -89 there have been no accidents reported at either locations.
(612) 587 -5151
F CITY Of HUTCHINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
DATE: May 1st, 1989
TO: Planning CommissiDn
City Council
FROM: City Engineer
RE: Annexation - Section 1, T116N, R30W
0
FOR YOUR INFORMATION
The balance of the SE 1/4 of the SW 1/4 of Section 1 owned by Ron Hanson and
others, not presently in the City, should be annexed. To the best of our
knowledge the area is completely surrounded by the City. At present, the City
does not have the ability to control the land use or the type of structures.
The only assessment is the deferred 1969 SW Storm Sewer. This was inplace
when Mr. Hanson purchased the property and I believe some of the other present
owners.
I have checked with the Municipal Board and the area to be annexed can be
described as follows:
All that part of the SE 1/4 of the SW 1/4 of Section 1, Township 116
North, Range 30 West, not presently in the City of Hutchinson, but
surrounded by the City. Containing 6.6 acres more or less.
Marlow V. Priebe
City Engineer
MVP/PV
0
0
W X612) 587.5151
ITY OF HUTCHINSON
WASHINGTON AVENUE WEST
CHINSON, MINN. 55350
M E M 0
DATE: May 4th, 1989
TO: Mayor and City Council
FROM: City Engineer
RE: Main Street South
FOR YOUR INFORMATION
We have inspected the condition of the sod between 4th Avenue and 5th Avenue
installed on the City contract.
It is our opinion that damage is due to salt, etc... from winter weather
conditions. Replacement would have to be an additional cost to the contract.
If we are to replace same, request approval to do so.
MVP /PV
cc: Cal Rice
Marlow V. Priebe
City Engineer
(612) 587.5151
ITV OF HUTCHINSON
VASHINGTON AVENUE WEST
'HINSON, MINN, 55350
M E M 0
DATE: May 4th, 1989
TO: Mayor and City Council
FROM: City Engineer
RE: Hook -up Charges
E
FOR YOUR INFORMATION
City Attorney Barry Anderson and myself expected to have a report on
hook -up charges available for the May 23rd Council Meeting.
Marlow V. Priebe
City Engineer
MVP/PV
0
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4/191 F}5'
HUTCHINSON L TIES COMMISSION PAGE i
HUTC[{:[N_ MINNESOTA
�
MARCH 3 1, 1909 SHEET
MARCH 3
FOR YOUR INFORMATION
x x x ELECTRIC x x x
x x x x x GAS x x x x H
x x x x TOTAL • x x x - -- _
ASSETS
UTILITY PLANT
LAND & LAND RIGHTS
140,963,10
13,978.10
154,941.20
VEPRECIADLE UTILITY F'LANT
23,067,321.64
2,419,215.21
25,486_,536.85
TOTAL UTILITY PLANT
23,200,284.74
2,433.193.31
25,641,470.05 -:
LESS ACCUMULATED DEPRECIATION_
(11,88.6,_820.75)
(1,027,120.03)
(12,913,940.78)
'TOTAL ACCUMULATED DEPRECIATION
)
(11,006,820,75)
(1,027,120.03)
(12,913,940.78) :-
CONSTRUCTION IN -PROGRESS
11,417.54
115,931.92
TOTAL CONSTRUCTION IN PROGRESS
_104,514.38 _ _
- - - - - --
104,514 38
11 417.54
_
!15,931 92
)
TOTAL UTILITY PLANT DEPREC VALUE
11,425,975.37
1,417,490.82_
_ 12,843,4.6.9_.1.9
1 RESTRICTED FUNDS & ACCOUNTS
FUTURE EXPANSION & DEVELOPMENT
--.-,FUTURE
- - --- -- - -
1'900,000.00
-- -
1,250,000.00
3,0.`;0,000.00 -
F OR FUEL OtL-
- -
750,000.00 - - -_ -
_ .00
750,000.00
1 MEDICAL INSURANCE_
60,000.00
40,000.00
100,000.00
ITA - OPERATING & MAINT RESERVE
200,000.00
.00
200,000.00 ^-
INSURANCE LOSS
300,000.00
.00
300j000.00 -
' POND & INTEREST PAYMENT 1986
220,903.14
.00
220.983.i4
1966 POND RESERVE
392,000.00
.00
392,000.00___
CATASTROPHIC FAILUFE FUND
750,000.00
.00
750,000.00 -,
FEDERAL INTERPRETATION
.00
627,266.16
627,266.16 -
MAIN REPLACEMENT
FUND
_9
.00
1,0001000_._00
1,00.01000.00
TOT AL RESTRICTED
FUNDS ACCOUNTS
4,472,983.14
2,917,266.16
_
7,390,249.30
)
CURRENT & ACCRUED ASSETS
-
CASH IN SANK
168,581,59
471,695.02
640,276.61 _.
I INVESTMENTS & SAVINGS ACCOUNTS
442,447.48
108,098.88
550,546.36
CONTRACT
,00
49 983.64
49,983.64
ACCOUNTS kECEIVAbLE
843,533,59
472,111,34
1,315,644.93 -'
INVENTORIES
518,069.33
60,406.39
578,475.72
PREPAID - INSURANCE_ _ _ _ - _ —___-
17,403.17
_._
6,_110.22
23,513.39
Af.Cf <IJED INTEkES7 RECEIVAS)LE
__.
171.909.57
93,933.28
_ -_.
265,842.85 -'
TOTAL CURRENT & ACCRUED ASSETS
2,161,944.73
1,262.338.77
3,424,283.50 -
DEFERRED CHARGE
DOND DISCOUN'P 1986
85,337.97
.00 -
85,337.97- -
TUTf.L DEFERRED CHARGE
65,337.97
.06
85 337.97
TOTAL ASSETS
- 18,146,244.21
5,597,095.75
- 23,743,339.96
4/19/89 HUTCHINSON UTILITIES COMMISSION PPGF_
HUTCHINSON, MINNESOTA
BALANCE SHEET
MARCH 31, 1.969
w w w EIEC'iRIC w w w w w w w w GAS w w w w w .x « w w TOTAL
g�
9
rp,
MUNICIPAL EQUITY d LIABILITIES;
� ...._- 'MUNICIPAL EQUTTY _
)I MUNICIPAL EQUITY
13,621,309,78
4,943,423.28
18,564,733.06
�S
UNAPPROPRIATED RETAINED EARNINGS_
349,87; O
270,397.93
620,273.13
C:
_
CONTRIBUTION TO CITY
___
(112,500.00)
_ _
(.00)
(112,500.06)
). TOTAL MUNICIPAL_ EQUITY
13,850,684.98
5, 213,821.21
19,072,506.19
r-
:._ "LONG TERM LIABILITIES- NET...OF
CURRENT MATURITIES
. 1986 BONDS
3,510,000.00
.00
3,_:.,1.0,0_0_0_._00_
-
_L __ .__- _
TOTAL LIABILITIES
_ .
3,10,000.00
_ ..
___
- .00
_ _ _
- 3,510,000 00
CONSTR CONTRACTS A ACCTS PAY RETAIN
-
..
_ _ _ _ _ —___ ___
TOTAL CONSTRUCTION A ACCTS FAY
.00
__
. 00
__
- - - .00
CURRENT 6 ACCRUED LIABILITIES
-
ACCOUNTS PAYABLE ____ ___
- _
-540--,-501 .H4
_
363.390.66
_.._____
903,99 2.50
-
_ INTEREST ACCRUED
61,916.61
.00
61,916.61
ACCT PAYABLE TO ASSOCIATED COMPANY
(13,408.83)
(.00)
(1.3,408.83)
ACCRUED PAYROLL
_
17,832.10
3,835.20
_
_
ACCRUED VACATION PAYABLE
77,803.84
16,040.68
93,852.52
CUSTOMER DEPOSITS
—.
92,661.64
.00
92,861.64
-'
- — _—_—_ _.
OTHER CURRENT 6 ACCRUED LIAHILITI F_5
_ -
_
5 ^.03
_ _ __ _
4.00
"._.___- .— _�.__.
56.03
TOTAL CURRENT 6 ACCRUED LIAR
777,559.23
383,274.54
1,160,833.77
TOTAL MUNICIPAL EQUITY d LIAB
18,146,244.21
5,597,095.75
23,743,339.96
g�
9
ELI. CTNIC DIVISION
HUTCHIN'.0N 01 1 S COMMISSION
HU7'CI- IIN6(/ *NNESOTA
£a ATEMENT OF INCOME 6 EXPENSES
MARCH 31, f.YBY
w * CURRENT MONTH r 4
F'F,GE S
w x YEAF: -TO -BATE: .x +
INCOME STATEMENT
OF•E V:RTiNG kEVE:A!CIE
`:ALES - E.L.ECfT "R].0 ENERC,Y 733,594.24CR 2,195,369,F•6CR
NET INCOME FROM OTHER SOURCCS 2,492.02CR 6,730. 1'OCR
SECtIkI iY LIGHTS - f.,065,50Ck 3,196_500R
POLE F'ENTAL 1,916.25Ck 1, 916.25CR
TOTAL OPERAT INC. REVENUE '739, 368, OiCR ._ 207,213.if CR
DEPRECIATION "22,500.00
TOTAL OPERATING EXPENSES 632,745.61 1,909,414.12
OPERATING INCOME 106 6..2 .40CR 297,798 .99CR
• OTHER INCOME AND DEDUCTIONS
.._ _. -- ___ -_.- --__-
OTHER MET 735.42 210.20Ck
INTEREST INCOME 32,890.83CR 95,7 79.33CR
MISC INCOME /EXPENSE 1,081,65CR _ 1,OR6.68CR
INTEREST EXPENSE 15,000.00 45,000.00
TOTAL OTHER INCOME AND DEDUCTIONS 18,237.06CR 52,076,23CR
NET INCOME 124,859.46CR 349,875.20CR
0
u
11
l
OPERATING EXPENSES
PRODUCTION OPERATION - 3
37,361.65 1
108,205.10
PRODUCTION MAINTENANCE 2
20,251.58 3
36,61.1.68
PURCHASED POWER 4
426,551.23 1
1,264,097.69
TRANSMISSION OPERATION
7 7.75
_
_.._ ___ _.- _.__..____.___._ _
_ -_ ' -_-__. ___
DISTRIBUTION OPERATION 1
17,216.38 4
45,470.17
DISTRIBUTION MAINTENANCE 6
6,i54.24 _
27,020.87_ _
CUSTOMER EXPENSES 6
_
_
CUSTOMER SERVICES 1
1,067,96 2
2,643.32
ADMINISTRATIVE 6 GENERAL EXPENSES 5
53,757.65 1
167,743.92
59,500.00
0
u
11
l
4'19189
HI ITCHINSON UTILITIES COMMISSION
P(,CE ^_
HUTCHINSON, MINNESOTA
GAS DIVISIiIN
STATEMENT OF INCOME 6 EXPENSES
MARCH 31, 1989
w w CURRENT MONTH • w
+ + YEAR-TO-DATE w
.INCOME STATEMENT
'
OF'C. fi'A71 NG REVENUE„
SALES
470,359.8iCR
1,547,734.57CR
r
FURFEITED DISCOUNT'S
3, 665.
_
'TOTAL OPERATING REVENUE -
_ _1_,231.34Cf,
- 471, S71.SSCR
_ _1.3CR
1, 550, 794.70CR
OPERATING EXPENSE
MFG GAS PRODUCTION UF£RAT ION
-- - 219.22 - -
- 759. u3 - --
MFG GAS PRODUCTION MAINTENANCE
25.02
St2.59
PURCHASED GAS EXPENSE
336,795.83_
1,197,050.58
DISTRIBUTION OPERATION
..16,851.78. ..
-46, 199.'4
DISTRIBUTION MAINTENANCE -
1,606.14
6,133.46
CUSTOMER EXPENSES
4,427_.28
12,724. ^5
CUSTOMER SERVICF_S -
711.97 - -
_ _ _
-- -�- 1,762.21
ADMINISTRATION 1. GENERAL-
18,679.67
53,871_26
DEPRECIATION
7,100._00_
.. 1,300.00
-- --
TOTAL OPERATING EXPENSES'
_ _ .
- 388,416.91
1,344,912.92 -
OPERATING INCOME
83,i54.24CR
205,886.76CR
j
OTHER INCOME AND DEDUCTIONS
C
OTHER - NET
112.20CR
144.7iCR
-:; INTEREST INCOME -- �- �---- ----
-22,099.63CR -------- � - - - - -- --- --�
- - - - 63,209.59CR
MISC INCOME /EXPENSE
343,95CR
1,i56.65CR
TOTAL OTHER INCOME AND DEDUCTIONS
22,555.78CR
64,511.SSCR
i
NET INCOME
105,7i0.02CR
270,397,93CR
1 :
:l
t'
is l
l
L
i
THE HUTCHINSON SAFETY COUNCIL
The Hutchinson Safety Council met
Fire Hall. There were 12 members
the program on hot liquid burns.
points were highlighted:
A 3rd degree burn can occur
Turn down your water heater
your water heater setting in
125° F.
FOR YOUR INFORMATION
March 27, 1989 at 12 noon at the
present. George Fields presented
A movie was shown and the following
in I second at 145° F.
to prevent hot liquid burns. Keep
the low to medium range at around
407 of the burns found in burn units are hot liquid burns.
George will tape the movie to make available to area groups. (Babysitter
clubs, home ec classes or family studies classes were some suggestions.)
The meeting was called to order by President John Reynolds. The February
meeting minutes and Treasurer's report were approved as read.
OLD BUSINESS
1. Les Smith will update the Safety Council in April concerning the
use of the safety trailer at the County Fair.
2. New member solicitation: The Secretary will locate the form letter
to send to potential new members and will bring to the next meeting.
It was suggested that we solicit membership from the Hospital, KDUZ, the
Hutchinson Leader and area organizations. The Secretary will also
write up a press release concerning the Safety Council meeting to try to
"market" the Safety Council to potential new members.
NEW BUSINESS
1. Randy Exstad stated that Tornado Awareness Week if April 2 -6. The
schools will be holding a drill on Thursday, April 6.
2. Les Smith stated that the State Council would attend our May meeting.
Because of Memorial Day weekend our May meeting will be held on May 22nd.
Carol Buftan from the State Safety Council will present the program.
3. John Reynolds said that several parents had expressed concern
regarding a shortage of space on the school buses so that their children
were required to stand. Les Linder stated that there is enough space
for all the children to sit and if children were standing it was because
they didn't want to sit.
The meeting was adjourned by motion and seconded.
Next meeting will be Monday, April 24 at 12 noon at the Fire Hall. Bernie
Knutson from the Civil Air Patrol will present the program.
Submitted by Jean Ward, Secretary /Treasurer
TREASURER'S REPORT: Checking Balance April 30, 1989 $210.77
Savings Balance April 30, 1989 $169.17
THE HUTCHINSON SAFETY COUNCIL
FOR YOUR "NFOR
Mq
The Hutchinson Safety Council met on Monday, April 24, 1989 at 12 noon /'O�6
at the Fire Hall. There were 11 members present. Bernie Knutson from
the Civil Air Patrol spoke about how the Civil Air Patrol can provide
support to law enforcement and rescue personnel in the Hutchinson area.
The Civil Air Patrol works in the following areas: 1) Civil Defense
2) Emergency services and 3) Cadet Program. The Civil Air Patrol can
provide assistance with the following emrgency situations:
1) Chemical spills
2) Medical / Transplants
3) Drowning victims
4) Flooding
5) Aviation training
6) Search and rescue
The meeting was called to order by President John Reynolds. The March
meeting minutes and Treasurers report were approved as read.
OLD BUSINESS
1. Les Smith will update the Safety Council in May concerning the use
of the safety trailer at the County Fair. John Reynolds will contact
Glen Witte concerning the space.
2. New members: it was suggested that letters be sent to the following:
1) MN Highway Dept. 5) Civil Air Patrol
2) Legion Commander 6) MN Highway Patrol
3) VFW Commander 7) Student Council (High School)
4) Fred Luedke, TPA
NEW BUSINESS
1. George Fields suggested that future meetings be held at Park Towers
because it is handicapped accessible. There will be further discussion
regarding this at the next meeting.
2. There will be no lunch provided at the next meeting.
3. President John Reynolds gave information regarding the Citation Awards
program to Jim Haasl.
4. The Hutchinson Safety Council approved unanimously to support the Civil
Air Patrol by asking the City Council to provide funds for a hangar at the
Hutchinson Airport for storage of the Civil Air Patrol air craft. (George
Fields moved that we support the Civil air Patrol in Hutchinson. Grant Knutson
seconded and the motion carried unanimously.)
The meeting was adjourned by motion and seconded.
Next meeting will by Monday, May 22 at 12 noon at the Fire Hall. No
lunch will be provided.
Submitted by Jean Ward, Secretary /Treasurer
TREASURER'S REPORT:
Safety vest for Senior Party
Checking Balance:
$210.77
-24.99
$185.78
Savings Balance: $169.17
is
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FOR YOUR INFORMATIOI
PIONEERLAND LIBRARY SYSTEM EXECUTIVE COMMITTEE MEETING
April 10, 1989
PRESENT: Steve Boehlke representing Chippewa Cty.
Gladys Nelson .1
Lorna Carlson
Carol Conradi
Judy Oestreich
Howard Turck
Linda Ulrich
David Lauritsen, Chippewa
Kathy Matson, Associate
Burton Sunberg, Director
Ortonville
Swift Cty.
" Willmar
Litchfield
" Meeker County
" Renville
County Library
The Executive Committee meeting was called to order at
7:35 PM by Chairman Boehlke. Nelson / Turck moved approval
of Secretary's minutes for March 13; carried. Conradi/
Nelson moved acceptance of Treasurer's report; carried.
The Financial Report showed that, with a quarter of the
year passed, we have spent 26.96% of budget. The auditor's
report was distributed and briefly examined. This will
be looked at further next month at a full Board meeting.
The monthly statistics and Public Library Newsletter
were passed around. Mrs. Matson noted the upcoming events
for or by PLS staff:
April 20 - Adult Program Ideas - Redwood Falls
(sponsored by SAMMIE)
May 12 - Effective Communication Skills - Willmar Library
April 26 - Health Fair - Kandi Mall - The Willmar Library
will have a display titled "Children's Health"
Nelson / Oestreich moved payment of bills; carried.
Concerning Extension of Access implementation, Mr.
Sundberg reported he had sent a letter to the Lac Qui Parle
Board of Commissioners informing them of the costs involved
in joining PLS earlier than January 1990. Also, Mr. Sundberg-
and Mrs. Matson will meet with the Clarkfield librarian and
Board to answer questions concerning their joining the PLS. Z-
Following a discussion dealing with the possibility
of pro- rating non - resident fees this last year before Extension
of Access goes into effect, a motion was made (Oestreich /Conradi)
and carried to request the staff to look at some options
and present them at our next meeting.
Mrs. Matson gave a Legislative Update reporting that
two items currently being dealt with in the Legislature,of
interest to libraries,were library funding and tax levy
limits.
The Family Ties project currently has received $6,500
with which to provide family living materials to selected
libraries in our System.
Pioneerland Executive Committee Meeting Minutes - April
Page 2
A motion was made to authorize a meeting of the Finance
committee April 25 at 7 PM (Nelson / Oestreich); passed.
Nelson / Oestreich moved the adoption of a mileage rate
of 24t /mile as approved by the IRS; carried.
A Trustee Workshop, developed by LDS, would be available
to PLS. We will look, at this program in more detail at
our next full Board meeting which is May 8.
Mrs. Matson then shared some of the highlights of the
1988 Annual Report submitted to LDS.
The meeting was adjourned.
Respectfully submitted,
Judy Oestreich, Secretary
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HCDC -
Board of Directors
Wednesday, February 1, 1989
7:00 AM - Chamber Meeting Room
MINUTES
Directors Present
T.A. (Buzz) Burich, Chairman
Carol Haukos
Phil Graves
Jim Bullard
Glenn Matejka
Meeting was called to order by Chairman Burich.
Alu
FOR YOUR INFORMATION
Others Present
John Bernhagen, Exec. Dir.
Jeff Green, HTI
Motion by Matejka, seconded by Bullard and carried to approve the minutes of February 1, 1989.
Motion by Matejka, seconded by Haukos and carried to approve the Treasurer's report.
Bernhagen and Bunch reported on information regarding the purchase of the loan on New Dimension
Plating, Inc., by the Community Reinvestment Fund, a non - profit corporation. Matejka moved,
seconded by Bullard and carried to secure formal documents and have the issue reviewed by the
Finance Committee.
Jeff Green reported on activities at Hutchinson Technology Inc. (HTI), he indicated that employment will
remain at approximately 2,000 employees for the foreseeable future at the Huthinson facility. They have
turned down a merger offer, but there are two other companies interested in HTI. The value of HTI is
in keeping the company's management, resource and development personnel in place at this location.
While the company did show a loss for the previous quarter, they were expecting to show a profit this
quarter.
Bernhagen reported on a Revolving Loan Fund proposal by other cities in the county. Started primarily
by Winsted and Glencoe. Bullard will be attending a meeting on this and reporting back at the next Board
meeting.
Graves and Bernhagen reported on their presentation to the City Council regarding past accomplish-
ments and goals for 1989.
There being no further business, meeting adjourned at 8:30 AM.
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A G E N D A
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
WEDNESDAY, MAY 10, 1989
Jr. /Sr. High School Cafeteria
7:00 P.M.
1. Call to Order
2. PUBLIC HEARINGS:
LETTING NO. 5. PROJECT NO. 89 -15
A. Bluff Street Improvements
B. Waller Drive Improvements
C. Carlisle Street Improvements
• Action: Motion to close hearing(s) - Motion to reject - Motion to
approve Project No. 89 -15 and call for plans and specifications -
Motion to waive readings and adopt Resolutions
3. Adjournment
PUBLISHED IN THE HUTCHINSON LEADER ON THURSDAY, APRIL 27TH, 1989, AND ON
THURSDAY, MAY 4TH, 1989.
. NOTICE OF HEARING
LETTING NO. 5
PROJECT NO. 89 -15
S.A.P. 133 - 104 -03 S.A.P. 133-112 -02
S.A.P. 133 - 121 -01 C.S.A.P. 43- 607 -07
Publication No. 3983
TO WHOM IT MAY CONCERN:
Notice is hereby given that the City Council of Hutchinson, Minnesota,
will meet in the Hutchinson Jr. /Sr. High School Cafeteria at 7:00 P.H. on the
10th day of May, 1989, to consider the making of an improvement on Bluff
Street from T.H. 7 to 2,600' North by the Construction of Grading, Gravel
Base, Curb and Gutter, Retaining Wall, Bituminous Surfacing, and
Appurtenances; improvement of the Drainage Area Adjacent to Bluff Street from
the South Fork of the Crow River to 2,600' North of T.H. 7 by the Construction
of Storm Sewer Lines, Manholes, Catch Basins, Lead Lines, and Appurtenances;
and Improvement of Certain Areas of Bluff Street, as needed, by the
Construction of Sanitary Sewer Mains, Watermains, and Appurtenances; pursuant
to Minnesota Statutes, Sections 429.011 to 429.111. The area proposed to be
assessed for such improvement is the benefitted property, for which property
owners shall receive mailed notice.
.
The estimated City /County /State Cost
with an estimated Assessable Cost of
of said improvement
$361,400.00, for the
is $1,319,900.009
Total Estimated Cost
of $1,681,300.00
•
Such persons as desire to be heard with reference to the proposed improvement
will be heard at this meeting. n(���
Dated: April 25th, 1989 ��,� A ,{�\Ft,O'4
City Admin rator
PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS REARING, 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, JANUARY 12TH, 1988, AND ON
THURSDAY, JANUARY 19TH, 1989.
. NOTICE OF HEARING
LETTING NO. 5
PROJECT NO. 89 -15
Publication No. 3984
TO WHOM IT MAY CONCERN:
Notice is hereby given that the City Council of Hutchinson, Minnesota,
will meet in Hutchinson Jr. /Sr. High School Cafeteria at 7:00 P.M. on the 10th
day of May, 1989, to consider the making of an improvement on Waller Drive
from Bluff Street to 800' South and East by the Construction of Bituminous
Surfacing and Appurtenances; pursuant to Minnesota Statutes, Sections 429.011
to 429.111. The area proposed to be assessed for such improvement is the
benefitted property, for which property owners shall receive mailed notice.
The estimated City Cost of said improvement is $3,100.00, with an estimated
$7,200.00 Assessable Cost, for the Total Estimated Cost of #10,300.00.
Such persons as desire to be heard with reference to the proposed improvement
will be heard at this meeting.
Dated: April 25th, 1989
• City —Adml istra
•
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.
n
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PUBLISHED IN THE HUTCHINSON LEADER ON THURSDAY, JANUARY 12TH, 1988, AND ON
THURSDAY, JANUARY 19TH, 1989.
• NOTICE OF HEARING
LETTING NO. 5
PROJECT NO. 89 -15
Publication No. 3985
TO WHOM IT MAY CONCERN:
Notice is hereby given that the City Council of Hutchinson, Minnesota,
will meet in Hutchinson Jr. /Sr. High School Cafeteria at 7 :00 P.H, on the 10th
day of Hay, 1989, to consider the making of an improvement of Carlisle Street
Area by the Construction of Storm Sewer Lines, Catch Basins, Lead Lines, and
Appurtenances; pursuant to Minnesota Statutes, Sections 429.011 to 429.111.
The area proposed to be assessed for such improvement is the benefitted
property, for which property owners shall receive mailed notice.
The estimated
#8 City Cost of said improvement is ;27,250.00, with an estimated
,250.00 Assessable Cost, for the Total Estimated Cost of $35,500.00.
Such persons as desire to be heard with reference to the proposed improvement
Will be heard at this meeting.
Dated: April 25th, 1989
City Addun,
• .strat�r
E
PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS HEARING, WHE.MR YOU ARE
FOR OR AGAINST THE PROJECT,
BETTER INFORMED OF IN ORDER TRAT YOUR COUNCIL CAN BE
A TRUE REPRESENTATION OF OPINION.
��.%� .� �- ��- }�� �-,,•� �"`- �J ,:ems -� - `J •
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MAY 111£'9
RECEIVED
BY
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Ol �'
DAVID D. ARNOLD
isCHARLES R. CARMICHALL
GARF D. -W DOWELL
SI "EVEN A. ANDERSON
0' BARRY ANDERSON
STEVEN S. HOOF,
LAURA H. FRETLIND
DAVID A. DRUEG6EMANN
JOSEPH M. PAIEMFNT
JAMES UTLEY
JULIA A. CHRISTIANS
RICHARD G. M,GEE
May 5, 1989
AR'VOLD & MGDOWELL
ATTORNEYS AT LAW
101 PART{ PLACE
HCTGHINSON, MINNESOTA 55350
(612) 587 -7575
TELECOPIER(612)587 -40D,f
Mr. Gary D. Plotz
City Administrator
37 Washington Avenue West
Hutchinson, Mn. 55350
RESIDENT ATTORNEY
0. BARRY ANDERSON
Re: Connection Charges
Our File NO. 3188 -87 -0001
Dear Gary:
OF 11011,\ I
WILLIAM W. CAMERON
PAUL D. DOVE
5881 CEDAR LANE ROAD
MINNEAPOLIS, MINNESOTA 5.5420
(61 2) 545 -9000
MN TOLL FREE 600-04J -4545
T£LEGOPIER (612) 545 -1790
502 SOUTH FOURTH STREET
PRINCETON, MISNESOTA 55371
(61'2)369 -2214
TELECOPI£R(6l ?)3BG -5506
RR pp 9�
FOR YOUR INFORMATION
• It is my understanding that in view of the upcoming Bluff Street
hearing, Marlow has requested that the subject of connection
charges be deferred to the last meeting in May. I concur with his
suggestion. In that regard, and as additional reading material for
the Council, I am providing a copy of my letter to you of April 12,
1988 which summarized our position on the subject of connection
charges. I suggest this information be provided to the Council for
their review as they are considering this subject.
If you have any questions with regard to this matter, do not
hesitate to contact me.
Thank vou.
Very truly yours,
G. (Barry Anderson
GBA:lm
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DAVID E. ARNOLD
CHARLES R. CARMICHAEL
MICHAEL B. LRBARON
GARY D. WDOWELL
PAYE RNOWLES
STEVEN A. ANDERSON
O. BARRY ANDERSON
STEVEN S. HOOF
CHARLES L. NAII. JR.
]AURA R. FRETLAND
DAVID A. BRUEOOEMANN
JOSEPH M. PAIEMENT
JAMES UTLEY
April 12, 1988
ARNOLD & MCDOWELL
AT oRNEYs AT LAW
lot PARR PLACE
HUTCHINSON. MINNESOTA 68880
(812) 887 -7373
Mr. Gary D. Plotz
City Administrator
37 Washington Avenue West
Hutchinson, Mn. 55350
RESIDENT ATTORNEY
O. BARRY ANDERSON
Re: Deferred Assessments and
Other Assessment Problems
Our File No. 3188 -87 -0019
and Our File No. 3188 -87 -0050
Dear Gary:
5881 CEDAR TARE ROAD
MINNEAPOLISo MINNESOTA 66416
(e12) 616.0000
MN TOLL FREE 800. 040.4646
601 SOUTH FOURTH STREET
PRINCETON. MINNESOTA 66071
(ei2)060 -2214
This letter will be a follow up to prior communication on the sub-
ject of deferred assessments and specifically on the Twin Oaks
assessment problem.
We have spent a considerable amount of time over the course of the
last month investigating the question of whether or not the City may
have other avenues available to it for reimbursement for expenses
incurred in the 1970 improvement project which resulted in installa-
tion of storm sewer service.
Our conclusion is in the affirmative with the caveat that there is
not a great deal of law on this subject. We also conclude that it
is appropriate for the City to proceed in an effort to collect some
of the past cost incurred in installing the project.
There are at least two methods by which recovery could be made.
First, Minnesota Statute Section 429.051 states as follows:
"The municipality may subsequently reimburse itself for all or
any of the portion of the cost of a water, storm sewer, or
sanitary sewer improvement so paid by levying additional
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Mr. Gary D. Plotz
April 12, 1989
Page 2
assessments upon any properties abutting on but not previously
assessed for the improvement, on notice and herein is provided
for the assessments initially made..."
The current owner of the property has never been assessed for the
storm sewer project and thus application of this provision is
appropriate. Further, there has never been an assessment levied
against this property since the only reference to an assessment was
a deferred assessment which was never imposed on the property pur-
suant to Chapter 429 of Minnesota Statutes.
Any assessment under this provision is subject to the typical rules
of governing special assessments such as a requirement that benefit
to the property owner exceed the amount accessed in terms of market
value. Anderson vs. City of Bemid'i, 295 N.W. 2d, 555 (Minn. 1980).
In addit on, t e City s presumed to have established the special
• assessment legally until the contrary is established. Carlson -Long
Realty Company vs. City of Windom, 240 N.W. 2d, 517 (Minn. 1976).
40
It is interesting to note that in this case the recovery of past
cost will result in a smaller figure than the original assessment
which will, of course, make proving benefit significantly easier.
The second avenue for collection of these costs and expenses is the
imposition of use, availability and /or connection charges. The City
of Hutchinson does have an ordinance that governs this subject which
is identified as Section 280.20 "Connections of Sewer and Water
Mains to Lands Not Assessed for Cost of Construction." That ordi-
nance specifically provides that no person in possession of property
fronting a sewer or water main shall connect with the same or any
other public sewer or water main unless:
I. The property to be benefited has been assessed;
2. The person owning the property shall first pay into
the treasury a sum of money calculated on a per foot
basis as was assessed against other property owners,
together with interest from the date of construction to
date of payment, providing that the amount shall in no case
exceed the cost of constructing a six inch sewer or water
main in front of the property at the time of connection.
Mr. Gary D. Plotz
April 12, 1988
Page 3
This would appear to be a connection charge. Connection charges are
specifically authorized by Minn. Stat. Section 444.075(3) which pro-
vides as follows:
"Charges for connection to the facilities may in the discre-
tion of the governing body be fixed by reference to the por-
tion of the cost thereof which has been paid by assessment of
the premises to be connected in comparison with other Fremi-
ses, as well as the cost of making or supervising the
connection."
There is some case law upholding validity of such connection
charges. See, for example, Crown Cor and Seal Com an Inc. vs.
City of Lakeville, 313 N.W. 2 , 196 (M nn. 1981); Nor 'g vs. C
of Maplewood, 326 N.W. 2d, 640 (Minn. 1982).
At this point I would recommend attempting to collect past costs
associated with the construction of this improvement from the
current owner of the property or in the alternative to assess a con- •
nection fee pursuant to Section 280 of the Hutchinson Municipal
Ordinances. Although it may not strictly be required, I believe a
due process hearing in the nature of an assessment hearing should be
held regardless of which alternative is selected and I think this is
particularly true in view of the amount of money involved in the
dispute.
I hope this is responsive to your inquiry.
Thank you. Best personal regards.
Very truly yours,
ARNOLD & McDOWELL
G. Barry Anderson
GBA:lm
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• TUESDAY, MAY 23, 1989
INTERVIEW SCHEDULE
ARCHITECTURAL /ENGINEERING SERVICES
FOR
REMODELING AND /OR REPLACEMENT OF CITY HALL
4:30 P.M. - SHORT - ELLIOTT- HENDRICKSON, INC.
St. Paul, Minnesota
5:00 P.M. - BOARMAN & ASSOCIATES
Minneapolis, Minnesota
5:30 P.M. - PAULY OLSEN BETTENDORF EASTWOOD & ASSOC.
0 St. Cloud, Minnesota
•