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cp05-13-86 cdUTCH INS ON
CITY
CALENDAR
Play 11 TO May 17
1986
WEDNESDAY
-14-
11:00 A.M. - Directors Meetin;
at City Hall
ti 1s.
SUNDAY
-11-
MOTHER'S DAY
THURSDAY
-15-
MONDAY
-12-
FRIDAY
-16-
TUEQAY
-1.3-
SPECIAL CITY ELECTION
8 :00 P.M. - City Council
Meeting at City
Hall
SATURDAY
-17-
VACATION & CONFERENCES:
DEAN O'BORSKY
- Vacation
May 13 -16
2:00 P.M. - Open Bids at City
CHUCK NELSON
- Vacation
Hall for Insurance
May 12 -17
Proposals
MARLOW PRIEBE
- Conference
May 15 -16
GARY PLOTZ
- Conference
May 14 -16
TUEQAY
-1.3-
SPECIAL CITY ELECTION
8 :00 P.M. - City Council
Meeting at City
Hall
SATURDAY
-17-
0
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r (612) 587 -5151
CITY OF HUTCHINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
N E X 0 R A N D U M
DATE: May 8, 1986
TO: Mayor & City Council
— ------------- — — — — — — — — — — — — — — — —
ggOM: Gary D. Plotz, Cit y Administrator
------------------------------
SUWECT: Tour of Damaged Jail
--- -------- ----------- -- - - - - --
7:45 P.M. - TUESDAY. MAY 13
Dean O'Borsky would like the Council members to take a tour of the
police station jail and observe the damage that was done to the cell
by a recent occupant. He will also give an explanation of security.
/ms
cc: Dean O'Borsky
AGENDA
REGULAR MEETING - HUTCHINSON CITY COUNCIL
• TUESDAY, MAY 13, 1986
•
1. Call to Order - 8:00 P.M.
2. Invocation - Reverend Gerrit Molenaar, Jr.
3. Consideration of Minutes - Regular Meeting of April 22, 1986; Special
ee 1ng Tp-riT $6 and April 29, 1986; Bid Opening of April 29, 1986
Action - Approve as distributed - Approve as amended
4. Routine Items
(a) Reports of Officers, Boards and Commissions
1. Building Official's Report - April 1986
2. Nursing Home Board Minutes dated March 20, 1986
3. Parks & Recreation Board Minutes dated April 2, 1986
4. Tree Board Minutes dated April 2, 1986
(b) Consideration of Application to Sell Cigarettes At Retail By Roberts
Park Concession Stand
(c) Consideration of Appointments to Community Energy Council
Action - Motion to reject - Motion to order report and minutes filed,
issue cigarette license and ratify appointments
5. Public Hearing - 8:00 P.M.
None
6. Communications, Requests and Petitions
(a) Presentation And Discussion On Status of McLeod County Heritage Center
By Carol Haukos and Everett Hantge
Action -
(b) Consideration of Request for Wastewater Treatment Plant Operator to
Attend Water Pollution Control Meeting May 14 -16, 1986
Action - Motion to reject - Motion to approve request
1
CITY COUNCIL AGENDA - MAY 13, 1986
(c) Consideration of Request for Mayor And City Administrator to Attend •
Coalition of Outstate Cities Legislative Conference May 29 -30, 1986
Action - Motion to reject - Motion to approve
(d) Consideration of Recommendation from Police Station Building Committee
for Execution of Contract for'Construction Manager
Action - Motion to reject - Motion to approve entering into contract
(e) Consideration of Request by Police Station Building Committee to
Execute Contract with Ardchitectural firm of Thorbeck b Lambert, Inc.
Action - Motion to reject - Motion to approve entering into contract
(f) Presentation of Cost Estimate for Water Service Leads Problem By Chuck
Barger of RCM
Action -
(g) Petition from Residents In Milwaukee Avenue Area Regarding Request for
Stop Signs
Action -
(h) Consideration of Request for Parade Permit for Annual Memorial Day
Parade On May 26, 1986
Action - Motion to reject - Motion to approve and issue permit and
waive permit fee
7. Resolutions and Ordinances
(a) Resolution No. 8277 - Appointing Legal Counsel
Action - Motion to reject - Motion to waive reading and adopt
(b) Resolution No. 8278 - Resolution for Purchase
Action - Motion to reject - Motion to waive reading and adopt
(c) Resolution No. 8279 - Resolution Canvassing Election Returns of City
Special Election Held May 13, 1986
Action - Motion to reject - Motion to waive reading and adopt
(d) Resolution No. 8280 - Resolution Authorizing Execution of Agreement
Action - Motion to reject - Motion to waive reading and adopt
•
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CITY COUNCIL AGENDA - MAY 13, 1986
8. Unfinished Business
(a) Consideration of Rezoning As Requested By City Staff (Wastewater
Treatment Plant Site) with favorable recommendation of Planning
Commission (DEFERRED APRIL 22, 1986)
Action - Motion to reject - Motion to approve rezoning - Motion to
waive first reading of Ordinance No. 11/86 and set second reading May
27, 1986
(b) Consideration of City Composte Project In Fall 1986 (DEFERRED 4 -8 -86)
Action - Motion to reject - Motion to approve
9. New Business
(a) Consideration of Airport Ditch Cleanout
Action - Motion to reject - Motion to approve proposal
(b) Consideration of Utilities West of School Road
Action - Motion to reject - Motion to approve construction
(c) Consideration of Request By Civil Air Patrol to Move Training Classroom
Trailer to Airport
Action - Motion to reject - Motion to approve request
(d) Consideration of Storm Sewer Improvement
Action - Motion to reject - Motion to approve improvement work
(e) Consideration of Application for Wine License for Shakey's Pizza
Action - Motion to reject - Motion to set public hearing May 27, 1986
at 8:00 P.M.
(f) Consideration of Settlement for Auto Accident of September 16, 1985
Action - Motion to reject - Motion to approve proposed settlement
(g) Consideration of Settlement for Hutchinson Fire Truck /Motor Vehicle
Accident of June 16, 1985
Action - Motion to reject - Motion to approve proposed settlement
(h) Consideration of Employment Status of Assistant to Engineer
Action -
3
CITY COUNCIL AGENDA - MAY 13, 15085
(i) Consideration of Obtaining Appraisal for Service Road On T.H. 7 West In Is
Conjunction With Highway Improvement Project
Action -
(j) Discussion of Possible Lighting In City Parking Lots
Action -
(k) Discussion of Enforcement of Sign Ordinance
Action -
(1) Consideration of Installation of Handicap Ramp Near Entrance of Public
Library (Requested by Alderman Mike Carls)
Action -
(m) Consideration of Purchase of IBM Computer for Burns Manor Nursing Home
Action - Motion to reject - Motion to approve purchase
(n) Consideration of Reducing Tennis Court Fee for Youth
Action - Motion to reject - Motion to approve 0
(o) Consideration of Request for Funds for Excavation of Fill At Recreation
Center
Action - Motion to reject - Motion to approve excavation
(p) Consideration of Late Night Use of Softball Field At Roberts Park
Action - Motion to reject - Motion to approve
(q) Consideration of Preliminary LAWCON /LCMR Grant Applications for Tartan
Park And Linden Park
Action - Motion to reject - Motion to approve applications
10. Miscellaneous
(a) Communications from City Administrator
11. Claims, Appropriations and Contract Payments
(a) Verified Claims
Action - Motion to approve and authorize payment from appropriate i
funds
12. Adjournment
4
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, APRIL 22, 1986
1. The meeting was called to order by Mayor Ackland at 7:30 p.m. The
following were present: Alderman Mike Carls, Alderman John Mlinar,
Alderman Marlin Torgerson, Alderman Pat Mikulecky and Mayor Paul L.
Ackland. Also present: City Administrator Gary D. Plotz, City Attorney
James Schaefer and Engineering Director Marlow V. Priebe.
2. INVOCATION
The invocation was given by Reverend Darrell Thalmann.
3. MINUTES
The minutes of the bid opening of April 2, 1986, special meetings of
April 7, 1986 and April 10, 1986 and regular meeting of April 8, 1986,
were approved as distributed.
4. ROUTINE ITEMS
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. FINANCIAL REPORT - MARCH 1986
2. PLANNING COMMISSION MINUTES DATED MARCH 20, 1986
Alderman Torgerson moved to order the financial report for March 1986 and
the planning commission minutes dated March 20, 1986 filed. Motion
seconded by Alderman Mikulecky and unanimously carried.
5. PUBLIC HEARING - 8:00 P.M.
(a) STATE HIGHWAY 7/22 IMPROVEMENT PROJECT
Mayor Ackland opened the public hearing at 8:00 p.m. Jim Koivisto,
traffic engineer for MN Department of Transportation summarized the
proposed project. This is a safety project on T.H. 7 West, which
includes about one mile of highway, from Shady Ridge Road east to
Kouwe Street. The project would include a signal light at the
School Road intersection (cost about $75,000) and road widening with
the addition of left and right turn slots at School Road and
California Street (cost about $550,000). After approval of the
proposed layout and plan, the project would be put up for bids in
July, 1986, with the expectation of completion this fall. The city
and state would participate in 25% of the cost of the signal light
and federal participation would be 75% for the light. There would
be no cost to the city for the highway improvement portion of the
project. A detour would be necessary on service roads during
. construcion. After construction, the state would restore service
roads to the previous condition. About 100 feet of surfaced
1
CITY COUNCIL MINUTES
APRIL 22, 1986
temporary road should remain after the project for the city's
benefit. The state's future plans are for a four -lane highway
through town on T.H. 7, with the inclusion of curb and gutter.
Daily traffic count on the highway is now 9,000 and growing.
Everett Hantge and John Miller expressed concern that approaches to
property on Hwy 7 will be removed or moved and that businesses on
the north side of the highway will have reduced access. The manager
of the Big Bear Store asked about reduced access to his business.
Mr. Koivisto responded that all proposed changes are necessary for
improved safety. A future service road on the north side of the
highway would be a partial solution.
There was discussion of the appropriate speed limit in the area.
The highway is now posted for 55 mph and the city council prefers
lower speed. Engineering Director Priebe recommended that the city
plan for access roads on the entire length of affected highway
before any improvements are made.
The hearing was closed at 9:10 p.m, on a motion by Alderman
Torgerson, seconded by Alderman Mikulecky and carried unanimously.
Resolution No. 8270 for Layout Approval of T.H. 7/22 was adopted
on a motion by Alderman Torgerson, seconded by Alderman Mikulecky
and carried unanimously. Resolution No. 8275 Approving
Channelization and Traffic Control Signals was adopted on a motion
by Alderman Mlinar, seconded by Alderman Torgerson and carried
unanimously.
The council requested that MN Department of Transportation consider
the city's concerns about an appropriate lower speed limit and good
access to the north side of the highway. There should also be more
advance public hearings for any future projects. Engineering
Director Priebe was instructed to prepare a report showing stubbing
out service lines for the service road area.
6. COMMUNICATIONS, REQUESTS AND PETITIONS
(a) REPORT BY CITY ATTORNEY ON ROBERT MCGEE LAWSUIT
City Attorney Schaefer reported that Mr. McGee and his attorney have
been served and that there has been no response yet. The court is
being petitioned for a trial date. Junker Sanitation and their
attorney have been served.
(b) CONSIDERATION OF REQUEST BY CITY ADMINISTRATOR TO ATTEND CITY /COUNTY
ANNUAL MANAGEMENT CONFERENCE MAY 14 -16, 1986
•
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(c) CONSIDERATION OF REQUEST FOR JAYCEE WATER CARNIVAL PERMITS:
1. PARADE PERMIT 2. DANCE PERMIT 3. FIREWORKS PERMIT •
4. PERMISSION TO CLOSE STREETS AND USE LIBRARY SQUARE
CITY COUNCIL MINUTES
APRIL 22, 1986
(d) CONSIDERATION OF REQUEST BY CITY ADMINISTRATOR TO ATTEND MINNESOTA
PLANNING ASSOCIATION CONFERENCE APRIL 24 -26
(e) CONSIDERATION OF REQUEST BY PERSONNEL /TRANSIT COORDINATOR TO ATTEND
SPRING PUBLIC TRANSIT CONFERENCE MAY 8 -9
(f) CONSIDERATION OF REQUEST FOR REDUCED REFUSE RATE
(g) CONSIDERATION OF REQUEST BY CITY ATTORNEY TO ATTEND DWI SEMINAR ON
MAY 8 -9
On a motion by Alderman Mikulecky, seconded by Alderman Carls,
requests (b) through (g) were approved unanimously.
(h) CONSIDERATION OF PETITION REGARDING NO PARKING ZONE ON HARRINGTON
STREET
Residents of the 800 and 900 blocks of Harrington Street presented a
written petition to prohibit parking on the east side of the street
due to congestion from the civic arena and recreation facility. In
discussion, it was pointed out that part of the problem might be
temporary since the parking lots will be completed this spring. The
situation should be reviewed again after parking lots are in use.
• On a motion by Alderman Mlinar, seconded by Alderman Carls and
carried unanimously, the no parking request was approved.
7. RESOLUTIONS AND ORDINANCES
(a) ORDINANCE NO. 10/86 - ORDINANCE AMENDING CABLE TELEVISION FRANCHISE
AGREEMENT
Following discussion, motion was made by Alderman Carls to waive
second reading and adopt Ordinance No. 736 Amending Cable Television
Franchise Agreement and to adopt Resolution 8274 Authorizing
Disbursement of Cable Television Franchise Fees. Motion was
seconded by Alderman Mlinar and carried unanimously.
(b) RESOLUTION NO. 8273 - RESOLUTION FOR PURCHASE
Resolution No. 8273 for the purchase of recreation equipment was
approved on a motion by Alderman Carls, seconded by Alderman Mlinar
and carried unanimously.
8. UNFINISHED BUSINESS
(a) CONSIDERATION OF UPDATING WATER NEEDS REPORT BY RCM (DEFERRED MARCH
25, 1986)
. Chuck Barger from RCM presented the recommendation that a study be
done to determine appropriate timing in upgrading equipment and to
3
CITY COUNCIL MINUTES
APRIL 22, 1986
update water use data, which has changed significantly since last •
report. Cost of the study would be $3,000.
After discussion, motion was made by Alderman Carls, seconded by
Alderman Torgerson and carried unanimously to authorize the study.
(b) ITEM DELETED
(c) CONSIDERATION OF KENTON KNUTSON FARM RENTAL
Grant Knutson was present to request consideration on the 1985
rental of airport farmland since 12 to 13 acres were lost due to
heavy rainfall and ditch drainage problems. A reduction of 15% of
the rental, or $1,000, was made for similar reasons in 1984. It is
anticipated that ditch maintenance to be done by the city this
summer will alleviate any future problems. Future reductions should
not be needed.
Motion was made by Alderman Mlinar to reduce the Knutson rent for
1985 by 15 %. Seconded by Alderman Torgerson, it carried
unanimously.
9. NEW BUSINESS
(a) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS •
Motion was made by Alderman Carls to discontinue service on listed
accounts on April 28 at 12 noon unless arrangements for payment are
made. Seconded by Alderman Mlinar, the motion carried unanimously.
(b) CONSIDERATION OF RENTAL AGREEMENT WITH MIDCONTINENT THEATRE CO.
FOR MOTOR VEHICLE OFFICE SPACE
Rental agreement at $350 per month was approved on a motion by
Alderman Carls, seconded by Alderman Torgerson, carried unanimously.
(c) CONSIDERATION OF PROPOSAL FOR WORK ON CITY /SCHOOL DISTRICT TENNIS
COURT
A motion was made by Alderman Torgerson to defer action until June 1
at which time usage and rentals of new tennis courts at the
recreation facility will also be discussed. Motion was seconded by
Alderman Mikulecky and carried unanimously.
(d) CONSIDERATION OF ON -SALE NON- INTOXICATING MALT LIQUOR LICENSES:
1. PIZZA HUT 2. J'S PIZZA GARTEN 3. GOLD COIN RESTAURANT
4. GODFATHER'S PIZZA 5. CROW RIVER BOWLING LANES 6. CROW
RIVER COUNTRY CLUB 7. 40 -HOUR WEEK
Motion was made by Alderman Carls to approve requests and issue •
licenses. Seconded by Alderman Mlinar, carried unanimously.
4
CITY COUNCIL MINUTES
APRIL 22, 1986
•
(e) CONSIDERATION OF OFF -SALE NON - INTOXICATING MALT LIQUOR LICENSES:
1. DEAN'S DISCOUNT FOODS 2. HUTCHINSON TOM THUMB FOOD MARKET
3. SOUTHTOWN MOBIL 4. MORE FOUR 5. ONE -STOP GAS 'N GROCERY
6. GEORGE'S FOOD & FUEL 7. ERICKSON FREEDOM STATIONS
Motion was made by Alderman Carls to approve requests and issue
licenses. Seconded by Alderman Mlinar, carried unanimously.
(f) CONSIDERATION OF CONDITIONAL USE PERMIT SUBMITTED BY MARK GILHOUSEN
WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION
Motion was made by Alderman Torgerson to approve and waive reading
and adopt Resolution No. 8266. Seconded by Alderman Carls, carried
unanimously.
(g) CONSIDERATION OF CONDITIONAL USE PERMIT SUBMITTED BY LEONARD RIEMANN
WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION
Motion was made by Alderman Mlinar to approve and waive reading and
adopt Resolution No. 8267. Seconded by Alderman Torgerson, the
motion carried unanimously.
(h) CONSIDERATION OF CONDITIONAL USE PERMIT SUBMITTED BY FARID
• CURRIMBHOY WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION
Alderman Mikulecky moved to approve and waive reading and adopt
Resolution No 8268. Motion was seconded by Alderman Torgerson and
carried unanimously.
•
(i) CONSIDERATION OF PRELIMINARY PLAT OF SCHMIDTBAUER'S THIRD ADDITION
SUBMITTED BY RICHARD SCHMIDTBAUER WITH FAVORABLE RECOMMENDATION OF
PLANNING COMMISSION
Alderman Torgerson moved to approve and waive reading and adopt
Resolution No. 8269. Seconded by Alderman Carls, motion carried
unanimously.
(j) ITEM DELETED
(k) CONSIDERATION OF REQUEST FOR TEMPORARY SIGN FOR BROWN GREENHOUSE
WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION
Motion was made by Alderman Torgerson to approve temporary sign,
seconded by Alderman Mikulecky and carried unanimously.
(1) CONSIDERATION OF SKETCH PLAN AS SUBMITTED BY ALTON ALBRECHT TO
MCLEOD COUNTY (WITHIN TWO MILE RADIUS) WITH NO OBJECTION FROM
PLANNING COMMISSION
I
CITY COUNCIL MINUTES
APRIL 22, 1986
Motion was made by
with no objection.
unanimously.
Alderman Torgerson to recommend to the County
Seconded by Alderman Mikulecky, carried
(m) CONSIDERATION OF BIDS RECEIVED ON RENTAL FARMLAND PROPERTY AT
MUNICIPAL AIRPORT (BIDS OPENED 4 -22)
Administrator Gary Plotz reported no bids had been received except
that of Eugene Birk, for $50 per acre for one year, with payment to
be made May 1 and November 1.
Motion was made by Alderman Torgerson and seconded by Alderman Carls
to accept the Birk bid; motion subsequently amended by Alderman
Carls, seconded by Alderman Torgerson to change the terms to one
payment on November 1, consistent with other farmland rental.
Amended motion carried unanimously.
(n) CONSIDERATION OF REQUEST FOR PURCHASE OF EQUIPMENT FOR THE
RECREATION - POOL FACILITY
After discussion, motion was made by Alderman Mikulecky to approve
the request, omitting bleachers in the amount of $3880. Motion was
seconded by Alderman Carls and carried unanimously.
(o) CONSIDERATION OF RECOMMENDATION BY DIRECTOR OF ENGINEERING REGARDING
WATER SERVICE LEADS
Director of Engineering Priebe showed samples of copper pipe in
pitted condition. Chuck Barger of RCM reported there could be many
possible causes for this deterioration, including electrolysis,
excessive water velocity, aereated water, faulty manufacture, or
water softening (in homes). Similar conditions have been noted in
other areas. A detailed study would be required to pinpoint the
cause or causes and to recommend a solution. Local industry would
also benefit from the clearing up of the problem, since it would
allow greater discharges of industrial copper. A couple of weeks
time would be sufficient to develop a cost estimate for a study.
Motion was made by Alderman Torgerson, seconded by Alderman
Mikulecky and carried unanimously to request a study cost estimate
from RCM.
(p) CONSIDERATION OF ESTABLISHING A SPECIAL COUNCIL MEETING /WORKSHOP
DATE TO COMPLETE CITY POLICY HANDBOOK (PERSONNEL SECTION)
The date of the meeting was set for Monday, April 28, 1986 at 8:00
p.TrL in the city council chambers.
(q) CONSIDERATION OF RECOMMENDATION BY DIRECTOR OF ENGINEERING TO SET
BID DATE FOR MAY 20, 1986 ON PROJECTS 86 -06 AND 86 -07
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CITY COUNCIL MINUTES
APRIL 22, 1986
On a motion by Alderman Mlinar, seconded by Alderman Torgerson and
carried unanimously, the bid date was set for May 20.
10. MISCELLANEOUS
(a) COMMUNICATIONS FROM CITY ADMINISTRATOR
Administrator Plotz reported he had negotiated a contract for deed
for the police station site on Franklin Street. Appraisal for the
property was $96,703. The final negotiated price is $90,000, with a
waiver of relocation benefits. Mrs. Goeders has asked for
flexibility of a week or two from the August 1 possession date in
case her final moving is delayed.
There will need to be a special council meeting on Tuesday, April 29
at 5:30 p.m. for the purpose of accepting improvement bonds.
After discussion concerning the special election for the police
facility to be held on May 13, the council authorized the police
building committee to design a quarter page advertisement in the
Sho er, on a motion by Alderman Torgerson, seconded by Alderman
s.
asubsequently amended by Alderman Carls, seconded by Alderman
Mlinar and carried unanimously.
• Following discussion about dilapidated property on Roberts Road
which is scheduled for demolition, motion was made by Alderman
Carls, seconded by Alderman Mikulecky and carried unanimously to
instruct city crews to put snow fence around the house as soon as
possible.
(b) COMMUNICATIONS FROM ALDERMAN MLINAR
Alderman Mlinar reported a complaint from Joe Wesley concerning
water drainage onto his property. Engineering Director Priebe was
directed to present a report on options to relieve the problem.
(c) COMMUNICATIONS FROM ALDERMAN MIKULECKY
Alderman Mikulecky reported Shady Ridge residents have complained
about the breakup of the road near Crow River Press. Engineering
Director Priebe stated there will be storm sewer and new street
construction next year in that area.
(d) COMMUNICATIONS FROM ENGINEERING DIRECTOR
Engineering Director Priebe reported a utility manhole is needed in
the area of the liquor store. He has instructed that it be placed
on the south half of the liquor store parking lot alleyway to allow
for possible future expansion of the store.
•
7
CITY COUNCIL MINUTES
APRIL 22, 1986
The agreement for the parking lot adjacent to the Benjamin /Nemitz •
property provides for portable curb. Permanent curb is preferred by
the council. On a motion by Alderman Torgerson, seconded by
Alderman Mikulecky and carried unanimously, the construction of
permanent curb was authorized.
11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS
The motion was made by Alderman Torgerson, seconded by Alderman
Carls, to approve the claims and authorize payment from the
appropriate funds. Motion carried unanimously.
12. ADJOURNMENT
There being no further business, the meeting adjourned at 10:40
p.m.
•
•
'_13
MINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
MONDAY, APRIL 28, 1986
Mayor Ackland called the special meeting to order at 8:00 P.M. Present were:
Alderman Mike Carls, Alderman John Mlinar, Alderman Marlin Torgerson, Alderman
Pat Mikulecky, and Mayor Paul L. Ackland. Also present: City Administrator Gary
D. Plotz, and Police Chief Dean O'Borsky.
EDUCATION INCENTIVE AND TUITION REIMBURSEMENT PROGRAMS
Police Chief O'Borsky presented a report on the education incentive and tuition
reimbursement programs and requested this item be included in the personnel
policy.
REVIEW OF PERSONNEL POLICY IN HANDBOOK
City Administrator Plotz and the City Council continued their review of the
Hutchinson Handbook On Council Policies, Procedures And Practices, And Admin-
istrative Orders. The last section to be covered was Personnel. During dis-
cussion, several changes were made in the proposed text.
• There was discussion regarding authority over the Police Department. The Police
Commission has authorization for hiring, firing and disciplinary action within
the Police Department while the City Council controls its budget.
The duties and responsibilities of the City Administrator were discussed.
It was reported that the break room at City Hall is now equipped for use of the
employees. After discussion, the Council directed the City Administrator to
send out a memorandum to all employees regarding coffee breaks.
Alderman Carls suggested that the City Council hold a periodic educational
meeting at which time someone knowledgeable about a specific topic or area
would make a presentation.
Alderman Mikulecky inquired about the upcoming Special City Election.
ADJOURNMENT
There being no further business, the meeting adjourned at 11:00 P.M.
0
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0
MINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, APRIL 29, 1986
The special meeting was called to order by Mayor Ackland at 5:30 P.M. The
following were present: Alderman Mike Carls, Alderman John Mlinar, Alderman
Marlin Torgerson, Alderman Pat Mikulecky, and Mayor Paul L. Ackland. Also
present: City Administrator Gary D. Plotz, Finance Director James Schaefer,
and bond consultant Bill Fahey.
Mr. Bill Fahey reported on the seven bids received and opened this morning.
It was his recommendation to acceptthe bid of Allison - Williams Company of Min-
neapolis, Minnesota for $463,012.50 at 6.1735 %. He then reviewed Resolution
No. 8276.
The motion was made by Alderman Mikulecky, seconded by Alderman Torgerson, to
waive reading and adopt Resolution No. 8276, awarding the bid to Allison -
Williams Company. Motion unanimously carried.
There being no further business, the meeting adjourned at 5:52 P.M.
W
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IJ
MINUTES
BID OPENING
TUESDAY, APRIL 29, 1986
The bid opening was called to order by City Administrator Plotz at 11:00 A.M.
Present were: City Administrator Gary D. Plotz, Finance Director Kenneth B.
Merrill, Bond Consultant Bill Fahey, and Administrative Secretary Marilyn
Swanson.
The publication notice for $1,075,000 General Obligation Improvement Bonds
of 1986 was read. The following bids were opened:
Allison - Williams Company
$463,012.50
6.1735%
Cronin & Co.
475,523.75
6.34031%
First Bank
466,050.00
6.214%
Miller Securities
465,562.50
6.2075%
Northern Trust Co.
493,880.00
6.5850%
Norwest Investment Services
470,637.50
6.2751%
John G. Kinnard & Co.
470,017.50
6.2669%
The bids were referred to the bond consultant for review and a recommendation
to the City Council at a special meeting at 5:30 P.M. this evening.
There being no further business, the meeting adjourned at 11:17 A.M.
s
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Section I - NEW RESIDENTIAL HOUSE-
PRIVATELY OWNED
PUBLICLY OWNED
KEEPING BUILDINGS AND
INm
No.
MunOer
Valuation of
Nmaber
Valuation of
Itdines
Housint
Builtlinp
Mousin
MOBILE HOMES
construction
construction
u i s
(Om/f cent.)
y!
'an$ csnfel
UI
it l
7
(it)
One - family houses. detached
101
2
2
154,746
One - family houses attached, each unit
pervu
t
separated from adjoining units) by a
well that extends from ground to roof
102
8
8
379,131
Two - family buildings
103
Three- and four - family buildings
104
Five-or -more family buildings
105
TJeTaI
t9
TOTAL (Sum of 101 -105)
109
10
10
533,877
Mobile homes
112
3
3
Section 11 - NEW RESIDENTIAL NON.
PRIVATELY
OWNED
PUBLICLY
OWNED
HOUSEKEEPING
I„Om
Number
Valuation of
Number
Valuation of
Utlines
Rooms
iltlin s
g
geoms
BUILDINGS
construction
ffhMf cents)
Construction
Mini, Cenral
(a)
Bbl
Ic)
Oil
lei
ifl
l I
Motels, motels, and tourist cabins
-
intended for transient accommodations
213
Other nonhousekeeping shelter
214
Section III -NEW NONRESIDENTIAL
PRIVATELY
OWNED
PUBLICLY
OWNED
BUILDINGS
lNeom
Number
Valuation of
Numbs
Valuation of
Iltlinp
ousint
IsulNln
onsint
eonstruclion
construction
(a)
lb)
mils
Icl
(Donn canal
(d)
(e)
unity
If)
(Omlf cents)
Ig)
Amusement and recreational buildings
318
-
Churches and other religious buildings
319
Industrial buildings
320
Parking garages lopen to general public)
321
Service stations and repair garages
322
Hospitals and other institutional buildings
323
Office, bank, and professional buildings
321
'_
Public works and utilities buildings
325
'
Schools and other educational buildings
326
Stores and other mercantile buildings
327
Other nonresidential buildings
31B
Structures other than buildings
$a ism IV - ADDITIONS AND
ALTERATIONS
An increase in the number of housing
- units (in the housing units column,
`o w enter only the number of additional
_ - units)
433
0
,$ $change
in Me number of
-
a n
ho
housing units
431
4
114.947
- c
_°
A decrease in the number of housing
units (in the housing units column.
enter only the number of decreased
n
units)
435
Residential garages and carports
r•
(attached and detached)
436
1
10,532
Ell
All other buildings and structures
437
4
1,710,597
2
A
5 60
r. nuu'.9
'P Sign 66 Permits - $2,379,251 Valuation
PLEASE CONTINUE ON REVERSE SIDE �►
i
I
• t
i
I
UCH" V - CONVERSIONS
FMATSLY oaal0
►uoLIDLY
onto
mor*w
Yakatha of
Neapr
Val"U" at
Kom
tlesilt{
ldhN
M
Mq
CanablKHOn
aaKa
Ralf aaaea7
laws ft1
4:4
ante
ffaMe epnW
lal
UI Id
UI
lei
In
41
Nonresidential and m housskasping
buildings to housekeeping buildings
540
Housekeeping buildings to nonresidential
and nonhousekeeping buildings
541
Saetlaa VI - DEMOLITIONS AND
RA21NG OF BUILDINGS
One - family buildings attached
and detached
645
1
1
T.o-fsmily buildings
646
_
Y
Three- and four - family buildings
647
-
Five -or -more family buildings
646
All other buildings and structures
649
Section Vll - ADDITIONAL INFORMATION FOR INDIVIDUAL PERMITS OF $500,000 OR MORE
Please provide in the space below, additional information for each individual permit valued at $500,000 or more
entered in sections I through V.
tem r6
Irom
Narne and address of
Owner$hip
Valuatl cf
Numner of
Number
Sec.
Des[riDtiM
owner n Wilder
Mark (Xf
[on3eu[ei0r1
hnU3ing
Ot
I -V
une
(Omit w W
units
buildings
(a)
(b)
(c)
(d)
(a)
Y)
lg)
Kind M building
3 M C:PWany_____________
0j Private
Industrial
Sib adtlreaa
115L. -- ---- __ ________
E] Public
7
Hwy. 22 South Hutch.
Hutchinson, MN 55350
51,703,500
-
Kind of building
_______________________
❑Private
_____________
51M adbsas
_______________________
❑Public
Kind of Wilding
❑ Private
fill address
_______________________
❑Public
Kind of building
_________
❑Private
______________
Site aadrus
_______________________
❑Public
Kind M building
_______________________
❑Private
Site adhaas
__ _
❑ Publie
Kind of building
__ _
❑Private
Sib awns
_______________
❑Public
Kind of Wilding
_____
❑Private
Sib address
_____________
❑Public
Kind b Wilding
❑ Private
-Cl; _ a___
ddasa _ _____________
_______________________
❑Public
Kind of Wilding
_______________________
Pirate
Site aldrasa
_______________________
❑Public
Comments
Name of person m contact Yawing this spat
Tele"Nne
Honer Pittman
Nsa code
Number
Ealenmon
Title
1
Suildincr Official
612
587 -5151
210
eowu uov a -n -en
1
i
i
i
r
•
•
BURNS MANOR MUNICIPAL NURSING HOME
Minutes - March - 1986
The Board of Directors for Burns Manor Municipal Nursing Home
met Thursday, March 20, 1986 at Burns Manor, 5:30 p.m., President
Larry Graf presiding.
Members present: Larry Graf Gloria Dansereau
Keith Duehn Esther Kuehl
Jim Mills Marge Putney
Mavis Geier David Jensen
Members absent: John Mlinar
Guests present: Walt Clay and Randy Bruer, Hutchinson
Telephone Co. representatives.
Walt Clay, Hutchinson Telephone Company, presented the electronic
telephone system, that is suggested for Burns Manor. Discussion
followed concerning cost and if the system is large enough to
facilitate an updated facility. The phone will be installed in a
new location and personnel will be hired as receptionists.
Larry Graf, President, welcomed the new members, Jim Mills
and Marge Putney to the board of directors.
• MINUTES OF PAST MEETING:
A motion was made by Keith Deuhn and seconded by Gloria
Dansereau to approve the minutes, with the correction of purchase
instead of purpose, for Memorial Funds. Motion carried.
ACCOUNTS PAYABLE:
A motion was made by Esther Kuehl and seconded by Keith Duehn
to approve for payment the attached listing of accounts and cash
disbursements in the amount of $47,327.98. Motion carried.
TELEPHONE SYSTEM:
A motion was made by Gloria Dansereau and seconded by Esther
Kuehl to install the electronic telephone system. All in favor.
Motion carried.
FINANCIAL REPORT:
David Jensen presented a detailed financial report and budget.
A motion was made by Gloria Dansereau and seconded by Keith Duehn
to approve the budget as presented by David Jensen, Financial
Advisor. All in favor. Motion carried.
The Board of Directors thanked David Jensen for the report.
OLD BUSINESS:
A. Lawsuit: Tom Hinde vs City of Hutchinson. The Attorneys
are scheduled at Burns Manor, May 8, 1986, at 12:30 p.m.
// -2 (z)
March Minutes
Page 2
OLD BUSINESS CONTINUED:
B. Employee Health Insurance: Larry Graf reported on his
discussion with Gary Plotz concerning employee health insurance.
The City Attorney has rendered the opinion that the health insur-
ance is to be put out on bids. The specifications will combine
the entities in different groupings.
A motion was made by Gloria Dansereau and seconded by Jim Mills
that Burns Manor Employees be grouped alone in the bid specifica-
tions. Motion carried.
NEW BUSINESS:
A. Tom Hinde Paintings: Barb Bullert wishes to donate the
paintings that she assisted Tom in painting while he lived at Burns
Manor. Tom has given the paintings to Barb as a gift. I have re-
ceived legal opinions from Jim Schaefer and Mark N. Stageberg,
(Lommen, Nelson, Cole and Stageberg) and was assured that Burns
Manor may accept the gift of Tom's paintings which will be dis-
played in the hall near the room where Tom lived.
A motion was made by Jim Mills and seconded by Gloria Dansereau
to accept the donation from Barb Bullert of Tom Hinde's paintings.
All in favor. Motion carried.
B. Risk Management Consultants: American Risk Services, Inc.
is providing the services that had been offered by Dwight Tange.
If the contract is renewed, the cost will be approximately $800.00
per month, travel will be an added expense. The City Council
will hire the consultants and we will be assessed our share.
C. S.T.E.P. Students: S.T.E.P. Students from Vo -Tech are
receiving their practical experience at Burns Manor.
D. Patient Satisfaction Surveys: Patient Satisfaction
Surveys were available.
E. Quality Assurance: Quality Assurance Assessments were
completed in February. New classification rates should be in
effect April 1, 1986.
F. Burns Manor Task Force: The Governer is considering
appointing a Task Force for an interpretation of the Nursing
Home moratorium to address upgrading of existing facilities.
11
E
L
March Minutes
Page 3
There being no further business, President Larry Graf
adourned the meeting.
The Burns Manor Board of Directors will meet Thursday, April
24, 1986 at 5:30 p.m., in the Annex Sun Porch at Burns Manor
Municipal Nursing Home.
ATTEST:
Larry Graf, President
Respectfully submitted:
Mav s J. Ge er, Secretary
• MINUTES
Parks & Recreation Board
April 2, 1986
Membere Present: Lyle Block, Roy Johnsen, Pat Mikulecky, Roger Haggemmiller,
Betsy Connelly and Kathy McGraw. Also present were Bruce Ericson, John
McRaith, Tracy Meisner, Mary Haugen, Mark Schnobrich and Karen McKay.
The meeting was called to order at 5:40 p.m.
Minutes
There was a correction for the March minutes, the field house is to be used for
tennis, volleyball and basketball purposes. The minutes dated March 12, 1986
were then approved by a motion made by Roger Haggenmiller and seconded by Roy
Johnsen. The board unanimously agreed.
Representing the Junior Parks and Recreation Board was Matt Hayden. He
summarized for the the board the interests of the junior and senior high
students for summer recreation. The activities will be organized and published
in the summer brochure.
• 1986 -g/ LAWCON Application
Ralph Johnson and Dale Redetzke were present, their interest was with
environmental education. They felt the area north of Tartan Park would
provide a good location for student study and that students would also help
clean up the park. Bruce told the board that grant applications are due by May
5th and that environmental study areas are a high priority for grant money.
Pat Mikulecky made a motion that the preliminary grant forms be filled out for
Tartan Park and related to environmental study. Betsy Connelly seconded the
motion and the board unanimously agreed.
Linden Park Master Plan
The board saw a blueprint showing the landscape plan for Linden Park. The
improvements include, the addition of two ballfields and excavation of the dirt
north of the building. There will be some additional curb cuts made in the
parking lot some time in May.
Roy Johnsen made a motion to approve the master plan for Linden Park, Roger
Haggenmiller seconded the motion and the board unanimously agreed.
Proposal for 86' Concessions For Tartan Park
The Traveler's are interested in supplying manpower in the concession stand at
Tartan Park. The city will continue to order all of the supplies for the
concession stands. The profits will be split between the city and the Baseball
Association 70/30 with the city retaining 30 %.
Roger Raggenmiller made a notion to accept the Travelers proposal for one year,
Pat Mikulecky seconded the motion and the board unanimously agreed.
Update on Recreation Center
Bruce told the board that the plumbers have been notified that the water heater •
needs to be replaced and the water softner has been installed. The lines in
the field house will be repainted in aid -May, all activities will be completed
by that time and nothing will be scheduled. The pool will be filled and
started the week of April 21st.
Betsy Connelly, representing the Swim Club requested that a rate be set for the
club to use the pool for two weeks while the high school pool is dam for
maintenance. After a brief discussion, Roger Raggenailler made a notion that
$15 per hour maxima be set. Pat Mikulecky seconded the motion and the board
unanimously agreed.
1986 Summer Programs
The mass registration is scheduled for Saturday, May 3rd from 9:00 am-12 noon.
There will registration for the Junior programs also. Something new this year
is T -Ball for 5 year olds at Linden Park only.
Miscellaneous
Kathy McGraw was concerned about the height of the tennis nets, Bruce told her
that the it has already been taken care of. She also informed the board that
the Tennis Association will not be having a indoor invitational tournament this
year because they did have a sponsor.
Adjournment •
The meeting was adjourned at 7:45 p.m. by a motion made by Roy Johnsen and
seconded by Betsy Connelly.
klm
ID
MINUTES
Tree Board Meeting
April 1986
Members Present: Roy Johnsen, Pat Mikulecky, Gary Plotz, Mark
Schnobrich, Jerry Brown
Stump Contractor
As of date there has been no returning of bids for stump grinding
in 1986. Mark Schnobrich will relax bids and attempt to secure a
bid for this year.
Arbor Day Plans
Along with the Chamber of Commerce, the City will be holding a joint
Arbor Day, Green Up -Clean Up day on May 10th at Library Square. Also
boulevard tree distribution will take place at Roberts Park from
9:00 Am to 12:00 Noon.
Plowman Parking Lot
Firstate Federal Savings and Loan will be donating the plant materials
•for landscaping that city owned lot. Schnobrich is working with
Jay Beytien on that project.
Combining Boards: Park Board & Tree Board
Gary Plotz was present to get opinions as to whether the Tree Board
should be combined with the Park Board to make one board. After
discussion, Roy Johnsen and others present felt the duties now being
performed such as landscaping of municipal buildings and park and
street tree maintenance warranted a Tree Board. It was emphasized
that the Tree Board would be getting final approval on park and laxd-
scaping projects from the Park Board. Gary Plotz then decided to
continue the activities of the Tree Board.
Ivan Larson and Roy Johnsen have expired terms and an advertisement for
board membership will be let out.
Leasing Stump Grinder
Again the board felt that due to liability costs and initial capital
outlay being so high that the city should continue to contract out
stump removal on city property.
AFS Grove Park
Jay Beytien, AFS Representative requested permission to place a large
rock at the AFS Grove at Roberts Park. The rock would be used for
permanently marking the Grove and also provide a site for plaques to
be placed on describing the students the trees were planted for.
Permission was granted.
,//-a. (�)
0
•
6tate of Ainnvgotav City ..... ........ ...... of ............. ..................
County of ........ .... McLeod. .4ppZication No . ................ ....... .. ............
Application for License to Sell Cigarettes at Retail
The undersi?ncd resident ... of the .. City of Hutchinson
in the county of McLeod,,,,. State of Minnesota, HEPEBY MAKE , .4PIILJC,,J-
TIOXFO-I? LICENSE to be issued to. Parks
arks .... &.,,.R.e..c.r.e.a.,t,i,o.n..,.D,e,p,ar.t,.m,e.n,t .... ...... _ ......... .............................
to sell cigar6ttes and cigarette papers and wrappers at retail at......._ .. ........ . .. ... . .........
Roberts Park Concession Stand,
............................ -.1 ....... .... . ..... I ............ ........ .................. .. .............
in the ..Of Hutchinson
........................... - ................ i
.... .. n said county and state for the term of
six months . .... ..... - ..... ....... beginning ......day of...... ..... Aiay-- .... ... . ..... .........
g with the ....... _14th
19.86_ , subject to the laws of the State of Minnesota and the ordinances and regulations of said
City Hutchinson
....... . ... ....... I .............................. of ........... --- ........... -.. - ..... - ....... -- ......................... pertaining thereto, and herewith deposit
$ 0- ______ .... .... ........ in payment of the fee therefor.
Dated.5 -................ ..._......_.............._....1 199. ........ . ......
"00 1
(612) 587 -5151
f1U1lN' CITY OF HUTCHINSON
• 37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
M E M O R A N D U M
DATE: May 7, 1986
T0: Mayor and City Council —
- - - -- -- ----------- - -- - --
FROM: Gary D. Plotz, City --
-- - - - - -- -- ---- - - - - --
SUBJECT: Annual Water Pollution Control Meeting _ Milwaukee — _ — —
CED /Donohue has recommended that Randy DeVries attend the attached
• seminar /meeting. See attached conference program.
Randy has circled several of the topics he feels are most valuable.
There are sufficient monies to the sewer fund for this expense. I
recommend approval.
/ms
Attachment
•
W
AEGISMA MUN
A!1 persons attending the meeting are required to
register. Admissions to all technical sessions and
social functions will be by registration badge or
specified ticket.
Registration Times:
I iivsday — 5:00 p.m. -8:00 p.m.
Vvorinesday -8:00 a.m. -5:00 p.m.
I hursday — 8:00 a.m.-5:00 p.m.
Friday — 8:00 a.m. -10:00 a.m.
We urge your advance registration. By registering
in advance you are assured of admission into all
functions & activities. Advance registration closes
May 2, 1986.
For pre - registrants, badges & tickets will be availa-
ble at the registration desk during scheduled regis-
tration times.
Student Registration
r:ollege and University students are encourged to
ttend the meeting and become better acquainted
uh working professionals In their chosen field.
Students will be receiving registration material
directly through their school.
TECHNICAL PROGRAM
Wednesday • May 14, 1 966
Mornl Plant Tours
I our of th Island–Wastewater
Treatment Plant will be available Wednesday
morning, May 14, at no cost, but pre - registration Is
required. A special registration form is provided on
the plant tour Information sheet and should be
returned with your meeting registration form.
Afternoon
1:30 Opening Session and Keynote Address
SE891oN A Industrial Was- te
2:25 -2:55 pm' Innovative Process for Removing
SESSION B besign
2:25 -2:55 p.m. Phosphorus Removal Ina Mu-
Heavy Metals from Wastewater
(K.V. Mayenkar)
3:00 -3:30 p.m
`5a iuy of Le achate Col-
3:00 -3:30 p.m.
lection and Treatment at the
Omega Hills Landfill (G.C. Woelfel)
3:30 -3:55 p.m.
Break
3:654:25 p.m.
Pre - Treatment of Contaminated
Surface Runoff from O'Hare Inter-
national Airport (D.M. Arntzen)
4:30 -5:00 p.m.
Hazardous Material Control at an
Industrial Wastewater Pre- Treat-
4:30 -5:00 p.m.
ment Plant (A.L. Haase)
SESSION B besign
2:25 -2:55 p.m. Phosphorus Removal Ina Mu-
An Innovative Solution to Ad-
vanced Treatment Standards at 60
Percent of the Cost (G.J. Bizjak)
TECHNICAL PROGRAM
Thursday - May 15, 1966
Morning
SESSION C Groundwater*
8:55-9:25 a.m. Removal of Volatile Organic Com-
pounds In Groundwater Using an
Advanced Water Treatment
System (J.L. Pope)
9:30 -10:00 a.m. An Assessment of Ground
water Contamination Polei t!
In the Grand Calumet Rivei
Basin (W.A. Melville)
10:00 -10:25 a.m. Break
10:25 -10:55 a.m. Well Contamination Potern, .
from Submersible Pump s -
ing Oils (B.G. Urben)
11:00 -11:30 a.m. Remedial Action for Eau
Claire Well Field VOC Con
lamination (E.T. Manning)
SESSION D Op ns
8:55 -9:25 a.m. onsiderations in Selecting
Air Monitorin Egtli_Went
LflnedSpace � 9:30 -10:00 a.m.lts of a New Con Entry Program
)
10:00 -10:25 a.
10:25 -10:55 a.m n -Line Instruments as Pro-
cess Control Tools
(R.J. Bro - -�
11:00 -11:30 a. f -based Plant
Management System Expe-
riences at the Litchfield, fs1N
Wastewater Treatment Facil !
(D.L. Ching)
Afternoon
SESSION E.:
ovwent AYfatts�
Murphy, chair
1:35 -3:35 p. n Liability Insurance
s the answers?
Keynote Spa
Representative Thomas Hauke, Chairman, t'
consin Insurance Commissioner's Task Forcr:
Insurance Liability
Reactor Panel:
Robert S. Smith, Esq., PE, NSPE Liability T,
Force
Bruce A. Weber, PE, President, Consulting f'
nears Council of Wisconsin
Gerald W. Farquhar, Esq. Consulting Attorn
the Office for Professional Liability Researr h
nicipal Stabilization Pond by
Batch Chemical Precipitation
(M.A. Zagar) '
3:00 -3:30 p.m.
Small Community Alternative
Sewers (C.J. Pyche)
3:30 -tDesign
3:55 -r
Supply and UV Disinfection;
and Computer Control
the Madison, Wisconsin Ninb
rings Wastewater Treatment
- Reusser, R.R. Riessi
4:30 -5:00 p.m.
Flow - Relate mats:
An Innovative Solution to Ad-
vanced Treatment Standards at 60
Percent of the Cost (G.J. Bizjak)
TECHNICAL PROGRAM
Thursday - May 15, 1966
Morning
SESSION C Groundwater*
8:55-9:25 a.m. Removal of Volatile Organic Com-
pounds In Groundwater Using an
Advanced Water Treatment
System (J.L. Pope)
9:30 -10:00 a.m. An Assessment of Ground
water Contamination Polei t!
In the Grand Calumet Rivei
Basin (W.A. Melville)
10:00 -10:25 a.m. Break
10:25 -10:55 a.m. Well Contamination Potern, .
from Submersible Pump s -
ing Oils (B.G. Urben)
11:00 -11:30 a.m. Remedial Action for Eau
Claire Well Field VOC Con
lamination (E.T. Manning)
SESSION D Op ns
8:55 -9:25 a.m. onsiderations in Selecting
Air Monitorin Egtli_Went
LflnedSpace � 9:30 -10:00 a.m.lts of a New Con Entry Program
)
10:00 -10:25 a.
10:25 -10:55 a.m n -Line Instruments as Pro-
cess Control Tools
(R.J. Bro - -�
11:00 -11:30 a. f -based Plant
Management System Expe-
riences at the Litchfield, fs1N
Wastewater Treatment Facil !
(D.L. Ching)
Afternoon
SESSION E.:
ovwent AYfatts�
Murphy, chair
1:35 -3:35 p. n Liability Insurance
s the answers?
Keynote Spa
Representative Thomas Hauke, Chairman, t'
consin Insurance Commissioner's Task Forcr:
Insurance Liability
Reactor Panel:
Robert S. Smith, Esq., PE, NSPE Liability T,
Force
Bruce A. Weber, PE, President, Consulting f'
nears Council of Wisconsin
Gerald W. Farquhar, Esq. Consulting Attorn
the Office for Professional Liability Researr h
TECHAAL PROGRAM
Friday - May 16, 1986
"ruing Operator's Breakfast
9 00 a.m. Speaker to be Announced
"SION F Biological Treatment
15 a m. An Evaluation of the Com-
bined Trickling Filter /Acti-
vated Slud �r„ces
(T. igmund)
10 20 a m. bmerged Biological Con-
tactor - A State -of- the -Art
Development in the Fixed /
Film Reactor Technology
,15 -10:55 a.m.
Design oT a igh Oxygen
6:30 a.m.
Transfer Efficiency Closed
8:30 a.m.
Loop Reactor for the DuPage
8:55 a.m.
County, IL Knollwood Waste-
11:00 a.m.
water Treatment Plant
1:30 p.m.
(G.W. Wilcox)
1 00 -11:30 a.m.
Removal of Nutrients Using
2:25 p.m.
Biological Processes(G.Daigger)
SESSION G
Potpourri
3.15445 a.m.
The Effects of Reduced Chlo-
Friday,
rine Usage on Coliform Popu-
7:30 a.m.
lations in the Receiving Water
9:15 a.m.
(J.H. Moser)
1a0-10:20 a.m.
'The Evaluation of the Use of
Ozone for the Disinfection of
a Contaminated Municipal
Groundwater Supply
10 55 a. nergy Conservation in Was-
tewater Treatment Facilities -
' n0- 11,30
wave Total Solids Procedure
for Processing and Agricultu-
ral Application of Sludge
,!,,r and wastewater operator certification
,'its will be granted for all technical sessions.
'alerworks credit - all others wastewater.
DISPLAY AREA
Exhibit hours have been expanded this year with
the display area being open from 11:00 a.m. -6:30
p.m. on Wednesday, May 14, and from 8:00 a.m. -
12:00 p.m. on Thursday, May 15.
SPOUSES PROGRAM
ad in the
Spouses Program Brochure, a hospitality room
featuring an abundance of refreshments through-
out the day in a quiet and relaxed atmosphere will
be open on Wednesday and Thursday from 8:30
a.m. -5:00 p.m., and from 8:30 a.m. -11:30 a.m. on
Friday for registered spouses of meeting atten-
dees.
ENTERTAINMEN1t
The 59th Annual Meeting will begin with a Meet
and Greet on Tuesday evening, May 13 from 7:00
p.m. -10:30 p.m. Come and sample some Milwau-
kee Gemutlichkelt and enjoy an evening of ethnic
music and dancing presented by the Milwaukee
CFU Tamburitzans.
Following the awards banquet on Thursday even -
Ing, May 15, be prepared fora fun filled "Las Vegas
Nite."
"ON YOUR OWN" ENTERTAINMENT
The Milwaukee area offers a broad range of fine
restaurants and attractions for your free time enter-
tainment. Detailed Information will be available In
the registration area throughout the annual meet-
ing.
TRANSPORTATION
Most major airlines and several commuter airlines
provide service to the Milwaukee County Airport
- General Mitchell Field from which limousine, taxi,
and rental car services are available to the Pfister
Hotel and other Downtown Milwaukee hotels.
For those who drive, parking Is available at the
hotel and in several parking facilities nearby.
Central Staft
Water Pollution Control
Association
59th
w Annual
M �Y Meeting
May 144691986
Pfister Hotel Milwaukee, Wisconsin
Tuesday, May 13, 1986
7:00 p.m. Meet & Greet
Wednesday,
May 14, 1986
6:30 a.m.
Golf Tournament
8:30 a.m.
Jones Island Wastewater
8:55 a.m.
Treatment Plant Tour
11:00 a.m.
Displays Open
1:30 p.m.
Opening Session
3:45 p.m.
& Keynote Address
2:25 p.m.
Technical Sessions
Thursday,
May 15, 1986
7:30 a.m.
State Section Meeting
8:00 a.m.
Displays Open
8:55 a.m.
Technical Sessions
12:00 p.m.
Association Luncheon
1:35 p.m.
Government Affairs Session
3:45 p.m.
Business Meeting
6:00 p.m.
Social Hour
7:00 p.m.
Annual Banquet
9:00 p.m.
Entertainment
Friday,
May 16, 1986
7:30 a.m.
Operator's Breakfast
9:15 a.m.
Technical Sessions
(612) 587 -5151
JffJH3UTCHINSONMINN,55350 ITY OF HUTCHINSON
WASHINGTON AVENUE WEST
M E M O R A N D U M
DATE: May 8, 1986
TO: Mayor & City Council
FROM: — —
Gary D. Plotz, City—Administrator
----- --- -- ----- ------ - -- - --
SUB.TECT: — Coalition Of Outstate— Cities Legislative Confgrgnge— — — —
Approval is requested to attend the Minnesota Coalition Of Outstate Cities
• Legislative Conference May 29 -30 in Brainerd. Please see the attached
agenda.
Both the Mayor and I would like to attend. Sufficient monies are budgeted.
/ms
Attachment
40
MINNESOTA COALITION OF OQTSTATE CITIES
LEGISLATIVE CONFERENCE
May 29 -30, 1986
Madden's Resort and Conference Center
on Gull Lake near Brainerd
AGENDA
Thursday, May 29:
10:00 Registration
10:30 -12:00 Review Coalition's legislative activity
during the 1986 session.
Review and evaluate 1986 consultant contract
and performance.
Preview of major legislative issues for
the 1987 session.
12:00 -1:00 Lunch
1:00 -3:30 Consideration of Legislative Committee
recommendations and action by the Coalition:
a. Legislative strategy and positions
for the 1987 session.
b. Consultant contract and assessment
level for the 1987 legislative session.
Other Coalition business
3:30 -6:00 No scheduled activities
6:00 -7:30 Reception for Coalition members and legislators
7:30 -9:00 Dinner
Keynote address - "Economic Recovery Initiatives for
Outstate Minnesota" - Senator Roger Moe and Representative
Doug Carlson
Friday, May 30: /
9:30 -11:30 Presentations by Coalition members
and discussions with legislators
about Coalition positions on Local
Government Aid, property taxation
and other issues.
Coalition member cities should arrive at Madden's by 10:00 a.m.
for an important Coalition business meeting.
TO: GRRY PLOTZ, CITY ROMIHISTRRTOR
FROM: RICHRRO H. BURGRRT, UICE CHRIRMRH
POLICE FRCILITY TRSK FORCE
DRTE: MRY B. 1986
SUBJECT: ITEMS FOR CONSIDERRTION RHO INCLUSION TO THE RGENDR FOR
THE REGULRR CITY COUNCIL MEETING OF MRY 13, 1986
Ue would like to have two items included on the agenda for the
council meeting scheduled for May 13. It is our feeling that these
items be considered separately and in the order as presented here.
1. The approval of the contract between the City of Hutchinson and
CRM, INC. The committee, by unanimous vote has recommeded that the
city authorize the execution of this contract.
2. The approval of the contract between the City of Hutchinson and
Thorbeck & Lambert. The committee, also by unanimous vote, has
recommended that the city authorize the execution of this contract.
3. The following supporting material is submitted for inclusion in
the packets:
R.
R copy of
the contract with
CRM, INC.
B.
R copy of
the contract with
Thorbeck 8. Lambert.
C.
R memorandum from CRM to the
committee.
D.
Copies of
minutes of meeting
recommending Council action.
Ue feel that the issues are two separate issues and that they should
be considered individually and in the logical sequence.
R representative of CRM, INC and members of the task force will be
present to answer- any questions. Ue would request an early
appearance due to travel time restrictions on personnel from CRM.
•
�- E r
Police Department Building Committee May B. 1906
Present: Uice Chairman Dick Burgart, Pat Durfee, Norman Tulman, •
Chuck Jones, John Gregor, Dean 0 "Borsky, Uergil Florhaug,
Sandra L. DuMez
Absent: Chad Piehl, Phyllis Hegrenes
Mr. Uergil Florhaug, President of CAM, INC., and Sandra DuMez,
Executive Uice President of CAM. INC, once again net with the
committee and discussed the items discussed in their memo of
May 3, 1906. Members of the committee addressed questions and
concerns to Mr. Florhaug and Ms. DuMez.
Tulman introduced the following motion: "The Police Facility Building
Committee requests that the City Council authorize the execution of a
contract between the City of Hutchinson and CAM, INC." The motion
was seconded by Durfee, and following discussion, the motion was
Passed unanimously.
D : urfee introduced the following motion " The Police Facility
Building Committee requests that the City Council authorize the
execution of a contract between the City of Hutchinson and Thorbeck 8
L'anbert." The notion was seconded by 0 "Borsky, and following
discussion, the motion was passed unanimously.
There being no further business, the meeting was adjourned. •
40
�—e� TE
k
ki
CONSTRUCTION • ANALYSIS AND MANAGEMENT INCORPORATED
7401 CENTRAL AVENUE NORTH EAST e MINNEAPOLIS • MINNESOTA 55432
MEMORANDUM
TO: BUILDING COMMITTEE MEMBERS
FROM- CONSTRUCTION ANALYSIS AND MANAGEMENT, INC.
Vergil M. Florhaug, President
RE: HUTCHINSON POLICE STATION
DATE: May 3, 1986
We met with T b L Architects and presented our theories on Project/
Construction Management to them. It is our opinion that they will be an
advantageous Team member.
We.broadly discussed fees, and they presented a letter to us that
• suggested deletions to their responsibilities to reduce their fee to 7.5 %.
This letter was addressed to the Hutchinson City Council and dated
January 23, 1986.
Our comments regarding this letter are as follows:
Item 1: We have no problem with this item.
Item 2: This reduction is realistic, but a cost would have to be
budgeted to retain other consultants to.achieve competitive bidding.
Item 3: We have no problem with this item if the Committee has the time
required for three to four trips. It seems to us that it would be less
costly and time consuming to have the meetings in Hutchinson.
Item 4: Two visits a month should be a minimum, with a credit to the
Owner if one or both are not used.
Item 5: If this item is to be utilized, coordination and approvals must
be pre- arranged to assure quality plans and specifications for the bid
market. All documents must be a part of the bid package.
We further discussed the $5,000.00 paid for programming to date. It is
T 6 L's opinion that this was a separate contract and could not be applied
to their fee request.
•
TELEPHONE (6
786 -7151
MEMORANDUM TO
BUILDING COMMITTEE MEMBERS
May 3, 1986
Page Two .
We naturally have not performed a cost model at this point for your
project, but in reviewing the projected square footage vs. T b L's
projections of S85.00 /square foot for 10,557 square feet, the calculations
show a budget of $899,045. It was our understanding that $750,000 is
the total dollar amount to include construction, fees, and other costs
such as F.F.E., but excluding the cost of the land. T b L informed us
that this may be due to reduction in size and scope. We do not have
information on this but T b L indicated that they would review their
files in an attempt to locate such information.
Any architectural agreement should address that the fee includes the
potential of fast tracking the footing and foundation plans if this
becomes necessary to perform this work prior to winter weather.
Any agreement should also be based on a fixed fee for services based on
the City's total budget.
At your request, we solicited a preliminary quote for total
Architectural /Engineering services from a firm familiar with your type of
project. Their quote was 7.5% - 8 %. Based on the information available
and the utilization of Construction Management, they felt 7.5% was
realistic, including program review. .
It is our feeling that if the goal for meeting with the City Council on
May 13th is to be reached that our tentative meeting on May 8th, while
it can be very short, is imperative.
END OF MEMORANDUM
0
•
Police Department Building Committee May 1, 1986
Present: Chairman Chad Piehl, Dick Burgart, Pat Durfee, Norman Tulman,
Chuck Jones, John Gregor, Dean O'Borsky, City Attorney Jim
Schaefer, Vergil Florhaug.
Absent: Phyllis Hegrenes
Mr. Vergil Florhaug, President of Construction, Analysis and
Management, Inc., met with committee members and discussed his contract,
fees, etc; He agreed to meet with Mr. Bob Lambert and discuss his theory
on Project /Construction Management. He also agreed to talk to another
architectural firm whom he has previously done business with to compare
fees.
City Attorney Jim Schaefer was also present and met with Mr. Florhaug
regarding the contract.
A meeting was set for 9:00 a.m., May 8, 1986 at the Fire Station to
further discuss the information which will be put into the packet for
the May 13th Council meeting. Included in the packet will be Mr. Florhaug's
memo to the Building Committee members (enclosed), the City Attorney's letter
of approval of the contract and the actual terms of the contract.
(812) 587 -5151
%/any" CITY OF HUTCHINSON
37 WASHINGTON AVENUE WEST •
HUTCHINSON, MINN. 55350
May 51 1986
Cpp y
Paul Ackland and the
Hutchinson City Council
RE: Hutchinson Police Station Construction Project
Dear Councilmembers:
I have reviewed a copy of the Standard Form of
Agreement Between Owner and Construction Manager proposed for
the Hutchinson Police Station Project by Construction Analysis
and Managements Inc. I find that the contract as proposed
would be a valid and binding obligation between the city of
Hutchinson and Construction Analysis and Managements Inc. if
executed by the respective parties. For questions concerning
the appropriateness of this type of contract for the proposed
project and the qualifications of Construction Analysis and •
Managements Inc. to perform the work required I would refer
you to the Police Station Planning Committee. It is also my
understanding that a representative of Construction Analysis
and Management, Inc. will be present at the meeting in which
this agreement will be considered by the Council and should be
able to answer specific questions you may have.
Sincerely yours,
CITY OF HUTCHINSON
By/
James H. Schaefer
Hutchinson City Attorney
JHS:dlp
cc: Dean O'Borsky
Sandra L. DuMez
U
�Q — el_4
i .- PrMimmen COPY
THE ASSOCIATED GENERAL CONTRACTORS
STANDARD FORM OF AGREEMENT
BETWEEN OWNER AND
CONSTRUCTION MANAGER
(OWNER AWARDS ALL TRADE CONTRACTS)
I, Document has important legal and insurance consequences; consultation with an attorney Is encouraged with respect
o its completion or modification.
AGREEMENT
Made this day ist of May
BETWEEN
in the year Nineteen Hundred and Eighty Six
CITY OF HUTCHINSON, MINNESOTA the Owner, and
CONSTRUCTION ANALYSIS AND MANAGEMENT, INC. the Construction Manager.
7401 Central Avenue Northeast - Minneapolis, Minnesota 55432
For services in connection with the following described Project: (Include complete Project location
and scope) CITY OF HUTCHINSON, MINNESOTA POLICE STATION
The Architect/ Engineer for the Project is
The Owner and the Construction Manager agree as set forth below:
main provisions of this document have been derived, with modifications, from the following documents published by The American Institute of Architects -. AIA Document A111,
wne,Contractor Agreement, © 1974; AIA Document A201, General Conditions, ©1976; AIA Document B801, Owner Construction Manager Agreement, ©1973, by The American
Institute of Architects. Usage made of AIA language, with the permission of AIA, does not apply AIA endorsement or approval of this document. Further reoroduchnn of nnnvdnhr =n
AIA materials without separate written permission from AIA is prohibited.
AGC DOCUMENT NO. 510
© 1979 Associated General Contractors of America
OWNER CONSTRUCTION MANAGER AGREEMENT (OWNER AWARDS CONTRACTS!
v+
TABLE OF CONTENTS
ARTICLES
PAGE
1
The Construction Team and Extent of Agreement
1
2
Consvi -'. -i Manager's Services .. _ ........
1
3
The Owner's Responsibilities ............ _ . ... _
4
4
Trade Contracts . .....:.........................
'.4
5
Pieject Schedule ..............................
5
6
Construction Manager's Fee. .. .. .. ..
5
7
Reimbursable Costs ..... .. .. .. ...... ..
_ _6
6
Changes in the Project ................. ..
7
9
Payments to the Construction Manager ............
7
10
Insurance. Indemnity and Waiver of Subrogation
_ 7
11
TerwdraMn, of the Agreement and Owner's Right to
Perform Construction Manager's Obligations......
_ 9
12
Assignment and Governing Law ........ ...........
.10
13
Miscellaneous Provisions .... ....................... _
_ ......10
14
Arbitration ... ...... ....._..._ .... _._....._....
i
0
ARTICLE 1
The Construction Team and Extent of Agreement
•The CONSTRUCTION MANAGER accepts the relationship of trust and confidence established between him and the Owner by this
Agreement. He covenants with the Owner to furnish his best skill and judgment and to cooperate with the Architect/ Engineer in fur-
thering the interests of the Owner. He agrees to furnish efficient business administration and superintendence and to use his best ef-
forts to complete the Project in the best and soundest way and in the most expeditious and economical manner consistent with the in-
terest of the Owner.
1.1 The Construction Team: The Construction Manager, the Owner, and the Architect/ Engineer called the "Construction Team" shall
work from the beginning of design through construction completion. The Construction Manager shall provide leadership to the Con-
struction Team on all matters relating to construction.
1.2 Extent of Agreement This Agreement represents the entire agreement between the Owner and the Construction Manager and
supersedes all prior negotiations, representations or agreements. When Drawings and Specifications are complete, they shall be iden-
tified by amendment to this Agreement. This Agreement shall not be superseded by any provisions of the documents for construction
and may be amended only by written instrument signed by both Owner and Construction Manager.
1.3 Definitions -
1.3.1 The Project is the total construction to be managed under this Agreement.
1.3.2 The Work is that part of the construction that a particular Trade Contractor is to perform and such General Condition Items
that the Construction Manager performs with his own forces.
1.3.3 General Condition Items as used herein shall be deemed to mean provision of facilities or performance of work by the Con-
struction Manager for items which do not lend themselves readily to inclusion in one of the separate trade contracts. General condi-
tion items may include (but are not limited to) the following: watchmen; scaffolding; hoists; signs; safety barricades; water boys;
cleaning; dirt chutes; cranes; shanties; preparation for ceremonies including minor construction activity in connection therewith; tem-
porary toilets; fencing; sidewalk bridges; first aid station; trucking; temporary elevator, special equipment; winter protection; tem-
porary heat, water, and electricity; temporary protective enclosures; field office and related costs thereof such as equipment fur-
nishings and office supplies; progress, final and miscellaneous photographs; messengers; installation of Owner furnished items; post
and planking; general maintenance; subsoil exploration; refuse disposal; field and laboratory tests of concrete, steel and soils;
surveys; bench marks and monuments; storage on -site and off -site of long lead procurement items; and miscellaneous minor construc-
tion work when it is not feasible for the Owner to secure competitive bids or proposals thereon.
1.3.4 The term day shall mean calendar day unless otherwise specifically designated
ARTICLE 2
Construction Manager's Services
The Construction Manager will perform the following services under this Agreement in each of the two phases described below
2.1 Design Phase
Z.1.1 Consultation During Project Development: Advise the Owner on site selection and participate in development of project feasibility studies.
Schedule and attend regular meetings with the Architect/Engineer during the development of conceptual and preliminary design to advise
on site use and improvements, selection of materials, building systems and equipment. Provide recommendations on construction feasiblity,
availability of materials and labor, time requirements for installation and construction, and factors related to cost including costs of alternative
designs or materials, preliminary budgets, and possible economies.
2.1.2 Scheduling: Develop a Project Schedule that coordinates and integrates the Architect/ Engineer's design efforts and the
Owner's activities with construction schedules. Update the Project Schedule incorporating a detailed schedule for all activities of the
project, including realistic activity sequences and durations, allocation of labor and materials, processing of shop drawings and
samples, and delivery of products requiring long lead -time procurement. Include the Owner's occupancy reauirements showing por-
tions of the Project having occupancy priority.
2.1.3 Project Construction Budget: Prepare a Project budget as soon as major Project requirements have been identified, and update
periodically for the Owner's approval. Prepare an estimate based on a quantity survey of Drawings and Specifications at the end of the
schematic design phase for approval by the Owner as the Project Construction Budget. Update and refine this estimate for Owner's ap-
proval as the development of the Drawings and Specificas proceeds, and advise the Owner and the Architect/ Engineer if it appears that
the Project Construction Budget will not be met and make recommendations for corrective action.
AGC DOCUMENT NO. 510 • OWNER CONSTRUCTION MANAGER AGREEMENT IOWNER AWARDS CONTRACTS) A}NE 197q
2 1.4 Coordination of Contract Documents: Review the Drawings and Specifications as they are being prepared, recommending
alternative solutions whenever design details affect construction feasibility or schedules without, however, assuming any of the Ar-
chitect /Engineer's responsibilities for design.
2.1.5 Construction Planning. Recommend for purchase by the Owner and expedite the procurement of long -lead items to ensure
their delivery by the required dates. •
2.1.5.1 Make recommendations to the Owner and the Architect/ Engineer regarding the division of Work in the Drawings and
Specifications to facilitate the bidding and awarding of Trade Contracts, allowing for phased construction taking into consideration
such factors as time of performance, availability of labor, overlapping trade jurisdictions, and provisions for temporary facilities.
2.1.5.2 Review the Drawings and Specifications with the Architect/ Engineer to eliminate areas of conflict and overlapping in the
Work to be performed by the various Trade Contractors and prepare prequalification criteria for bidders.
2.1.5.3 Develop Trade Contractor interest in the Project and as working Drawings and Specifications are completed, assist the
Owner in taking competitive bids on the Work of the various Trade Contractors. After analyzing the bids, recommend to the Owner
that such contracts be awarded.
2.1.6 Equal Employment Opportunity. Determine applicable requirements for equal employment opportunity programs for inclusion
in Project bidding documents.
2.2 Construction Phase
2.2.1 Project Control.' Monitor the Work of the Trade Contractors and coordinate the Work with the activities and responsibilities of
the Owner, Architect/ Engineer and Construction Manager to complete the Project in accordance with the Owner's objectives of cost,
time and quality.
2.2.1.1 Maintain a competent full -time staff at the Project site to coordinate and provide general direction of the Work and progress
of the Trade Contractors on the Project.
2.2.1.2 Establish on -site organization and lines of authority in order to carry out the overall plans of the Construction Team,
2.2.1.3 Establish procedures for coordination among the Owner, Architect/ Engineer, Trade Contractors and Construction Manager
with respect to all aspects of the Project and implement such procedures.
2.2.1.4 Schedule and conduct progress meetings at which Trade Contractors, Owner, Architect/ Engineer and Construction Manager
can discuss jointly such matters as procedures, progress, problems and scheduling.
2.2.1.5 Provide regular monitoring of the Project Schedule as construction progresses. Identify potential variances between schedul-
ed and probable completion dates. Review schedule for Work not started or incomplete and recommend to the Owner and Trade Con-
tractors adjustments in the schedule to meet the probable complete date. Provide summary reports of each monitoring and document
all changes in schedule.
2.2.1.6 Determine the adequacy of the Trade Contractors' personnel and equipment and the availability of materials and supplies to
meet the schedule. Recommend courses of action to the Owner when requirements of a Trade Contract afre not being met.
2.2.2 Provision of Facilities: Provide all supervision, labor, materials, construction equipment, tools and subcontract items which are
necessary for the completion of the General Condition Items which are not provided by either the Trade Contractors or the Owner.
2.2.3 Cost Control: Develop and monitor an effective system of Project cost control. Revise and refine the initially approved Project
Construction Budget, incorporate approved changes as they occur, and develop cash flow reports and forecasts as needed. Identify
variances between actual and budgeted or estimated costs and advise the Owner and Architect/ Engineer whenever projected cost ex-
ceeds budgets or estimates.
2.2.3.1 Maintain cost accounting records on authorized Work performed under unit costs, actual costs for labor and materials, or other
basis requiring accounting records. Afford the Owner access to these records and preserve them for a period of three (31 years after final
payment.
2.2.4 Change Order. Develop and implement a system for the preparation, review and processing of Change Orders. Recommend
necessary or desirable changes to the Owner and the Architect/ Engineer, review requests for changes, submit recommendations to the.
Owner and the Architect/ Engineer, and assist in negotiating Change Orders.
2.2.5 Payments to Trade Contractors: Develop and implement a procedure for the review, approval, processing and payment of applica-
tions by Trade Contractors for progress and final payments.
2 AGC DOCUMENT NO. 510 • OWNER CONSTRUCTION MANAGER AGREEMENT IOWNER AWARDS CONTRACTS) JUNE 1979
2.2.6 Permits and fees: Assist the Owner and Architect/ Engineer in oblaininrj all building permits and special permits for permanent im-
provements, excluding any permits required to be obtained by the various Trade Contractors, such as permits for inspection, temporary
facilib,Vs, etc. Assist in obtaining approvals from all the authorities having jurisdiction.
2.2.7 Owner's Consultants: If required, assist the Owner in selecting and retaining professional services of a surveyor, testing
.laboratories and special consultants, and coordinate these services.
2.2.8 Review of Work and Safety_ Review the Work of Trade Contractors for defects and deficiencies in the Work without assuming any
of the Architect/ Engineer's legal responsibilities for design and inspection. Review the safety programs of each of the Trade Contractors
and make appropriate recommendations. In making such reviews, he shall not be required to make exhaustive or continuous inspections
to check quality of work, safety precautions and programs in connection with the Project. The performance of such services by the Con-
struction Manager shall not relieve the Trade Contractors of their responsibilities for performance of the work and for the safety of per-
sons and property, and for compliance with all federal, state and local statutes, rules, regulations and orders applicable to the conduct of
the Work.
2.2.9 Document Interpretation. Refer all questions for interpretation of the documents prepared by the Architect/ Engineer to the Ar-
chitect /Engineer.
2.2.10 Shop Drawings and Samples: In collaboration with the Architect/ Engineer. establish and implement procedures for expediting
the processing and approval of shop drawings and samples.
2.2.11 Reports and Project Site Documents. Record the progress of the Project. Submit written progress reports to the Owner and the
Architect/ Engineer including information on the Trade Contractors' Work, and the percentage of completion. Keep a daily log available to
the Owner and the Architect/ Engineer.
2.2.11.1 Maintain at the Project site, on a current basis: records of all necessary Contracts, Drawings, samples, purchases, materials,
equipment, maintenance and operating manuals and instructions, and other construction related documents, including all revisions. Ob-
tain data from Trade Contractors and maintain a current set of record Drawings, Specifications and operating manuals. At the completion
of the Project, deliver all such records to the Owner.
2.2.12 Substantial Completion. Determine Substantial Completion of Work or designated portions thereof and prepare for the Ar-
chitect /Engineer a list of incomplete or unsatisfactory items and a schedule for their completion.
•2.2.13 Start -Up: With the Owner's maintenance personnel, direct the checkout of utilities, operations systems and equipment for
readiness and assist in their initial start -up and testing by the Trade Contractors.
2.2.14 Final Completion. Determine final completion and provide written notice to the Owner and Architect/ Engineer that the Work is
ready for final inspection. Secure and transmit to the Architect/ Engineer required guarantees, affidavits, releases, bonds and waivers.
Turn over to the Owner all keys, manuals, record drawings and maintenance stocks.
2.2.15 Warranty, The Construction Manager shall collect and deliver to the Owner any specific written warranties or guarantees given
by others, including all required Trade Contractor guarantees and warranties.
2.3 Additional Services
At the request of the Owner, the Construction Manager will provide the following additional services upon written agreement between
the Owner and Construction Manager defining the extent of such additional services and the amount and manner in which the Construc-
tion Manager will be compensated for such additional services.
2.3.1 Services related to investigation, appraisals or valuations of existing conditions, facilities or equipment, or verifying the accuracy
of existing drawings or other Owner - furnished information.
2.3.2 Services related to Owner- furnished equipment, furniture and furnishings which are not a part of the Work.
2.3.3 Services for tenant or rental spaces.
2.3.4 Services related to construction performed by the Owner.
2.3.5 Consultation on replacement of Work damaged by fire or other cause during construction, and furnishing services for the replace-
ment of such Work.
. 2.3.6 Services made necessary by the default of a Trade Contractor.
2.3.7 Preparing to serve or serving as an expert witness in connection with any public hearing, arbitration proceeding, legal pro-
ceeding.
DOCUMENT NO. 510 • OWNER CONSTRUCTION MANAGER AGREEMENT (OWNER AWARDS CONTRACTS) JUNE 1979
2.3.0 Firiding housing for construction labor, and defining requirements for establishment and maintenance of base camps.
2.3.9 Obtaining or training maintenance personnel or negotiating maintenance service contracts.
2.3.10 Services related to Work performed by the Construction Manager other than General Conditions items.
2.3.11 Inspections of and services related to the Project after completion of the services under this Agreement. •
2.3.12 Providing any other service not otherwise included in this Agreement.
ARTICLE 3
Owner's Responsibilities
3.1 The Owner shall provide full information regarding his requirements for the Project.
3.2 The Owner shall designate a representative who shall be fully acquainted with the Project and has authority to approve Project Con-
struction Budgets, Changes in the Project, render decisions promptly consistent with Project Schedule and furnish information ex-
peditiously.
3.3 The Owner shall retain an Architect/ Engineer for design and to prepare construction documents for the Project. The Ar-
chitect/ Engineer's services, duties and responsibilities are described in the Agreement between the Owner and the Archttect /Engineer, a
copy of which will be furnished to the Construction Manager. The Agreement between the Owner and the Architect/ Engineer shall not
be modified without written notification to the Construction Manager.
3.4 The Owner shall furnish for the site of the Project all necessary surveys describing the physical characteristics, soil reports and sub-
surface investigations, legal limitations, utility locations, and a legal description.
3.5 The Owner shall secure and pay for necessary approvals, easements, assessments and charges required for the construction, use or
occupancy of permanent structures or for permanent changes in existing facilities.
3.6 The Owner shall furnish such legal services as may be necessary for providing the items set forth in Paragraph 3.5, and such auditing
services as he may require. •
3.7 The Construction Manager will be furnished without charge all copies of Drawings and Specifications reasonably necessary for the
execution of the Work.
3.8 The Owner shall provide the insurance for the Project as provided in Paragraph 10.4, and shall bear the cost of any bonds required
3.9 The services, information, surveys and reports required by the above paragraphs shall be furnished with reasonable promptness at
the Owner's expense, and the Construction Manager shall be entitled to rely upon the accuracy and completeness thereof.
3.10 If the Owner becomes aware of any fault or defect in the Project or non - conformance with the Drawings and Specifications, he
shall give prompt written notice thereof to the Construction Manager.
3.11 The Owner shall furnish reasonable evidence satisfactory to the Construction Manager that sufficient funds are available and com-
mitted for the entire cost of the Project. Unless such reasonable evidence is furnished, the Construction Manager is not required to com-
mence any Work, or may, if such evidence is not presented within a reasonable time, stop the Project upon 15 days notice to the Owner.
3.12 The Owner shall communicate with the Trade Conti Actors only through the Construction Manager
ARTICLE 4
Trade Contracts
4.1 All portions of the Project other than General Condition Items shall be performed under Trade Contracts including contracts for general
construction work with several construction trades. The Construction Manager shall assist the Owner in requesting and receiving proposals
from Trade Contractors and Trade Contracts will be awarded by the Owner after the proposals are reviewed by the Architect/ Engineer, Con-
struction Manager and Owner.
4.2 Trade Contracts will be between the Owner and the Trade Contractors. The form of the Trade Contracts including the General and Sup- .
plementary Conditions shall be satisfactory to the Construction Manager.
AGC DOCUMENT NO. 510 • OWNER - CONSTRUCTION MANAGER AGREEMENT !OWNER AWARDS CONTRACTS) JUNE 1979
u
ARTICLE 6 '
Project Schedule
6.1 The services to be provided under this Contract shall be in general accordance with the following schedule:
DESIGN PHASE (THROUGH BID PERIOD):
CONSTRUCTION PHASE:
Four (4) Months
Ten (10) Months
5.2 At the time work commences, a Date of Substantial Completion of the project shall also be established.
5.3 The Date of Substantial Completion of the Project or a designated portion thereof is the date when construction is sufficiently com-
plete in accordance with the Drawings and Specifications so the Owner can occupy or utilize the Project or designated portion thereof for
the use for which it is intended. Warranties called for by this Agreement or by the Drawings and Specifications shall commence on the
Date of Substantial Completion of the Project or designated portion thereof-
5.4 If the Construction Manager is delayed at, any, time in the progress of the Project by any act or neglect of the Owner or the Ar-
chitect /Engineer or by any employee of either, or byany separate contractor employed by the Owner, or by changes ordered in the Pro-
ject, or by labor disputes, fire, unusual delay in transportation, adverse weather conditions not reasonably anticipatable, unavoidable
casualties or any causes beyond the Construction Manager's control, or by delay authorized by the Owner pending arbitration, the Con-
struction Completion Date shall be extended by Change Order for a reasonable length of time.
ARTICLE 6
Construction Manager's Fee
6.1 In consideration of the performance of the Contract, the Owner agrees to pay the Construction Manager in current funds as com-
pensation for his services a Construction Manager's Fee as set forth in Subparagraphs 6, 1.1 and 6.1.2.
6.1.1 For the performance of the Design Phase services, a fee of FIFTEEN THOUSAND AND NO /100 DOLLARS
($15,000.00)
which shall be paid monthly, in equal proportions, based on the scheduled Design Phase time.
6.1.2 For work or services performed during the Construction Phase, a fee of TWENTY THOUSAND AND NO /100 DOLLARS
($20,000.00)
which shall be paid proportionately to the ratio the monthly payment for the Cost of the Project bears to the estimated cost. Any balance
of this fee shall be paid at the time of final payment.
6.2 Adjustments in Fee shall be made as follows:
6.2.1 For changes in the Project as provided in Article 8, the Construction Manager's Fee shall be adjusted by % of the addi-
tional cost of the work for increases in the scope of the Project.
6.2.2 For delays in the Project not the responsibility of the Construction Manager, there will be an equitable adjustment in the fee to
compensate the Construction Manager for his increased expenses, overhead and profit.
6.2.3 The Construction Manager shall be paid an additional fee in the same proportion as set forth in 6.2.1 if the Construction Manager
performs services in connection with the reconstruction of any insured or uninsured loss.
6.3 Including in the Construction Manager's Fee are the following:
6.3.1 Salaries or other compensation of the Construction Manager's employees at the principal office and branch offices, except
employees listed in Subparagraph 7.2.2.
6.3.2 General operating expenses of the Construction Manager's principal and branch offices other than the field office.
•6.3.3 Any part of the Construction Manager's capital expenses, including interest on the Construction Manager's capital employed for
the Project.
6.3.4 Overhead or general expenses of any kind, except as may be expressly included in Article 7.
AGC DOCUMENT NO. 510 • OWNER- CONSTRUCTION MANAGER AGREEMENT (OWNER AWARDS CONTRACTS) JUNE 1979
ARTICLE 7
Reimbursable Costs
7.1 The Owner agrees to pay the Construction Manager for the reimbursable costs he incurs as defined in Paragraph 7.2. Such payment
shall be in addition to the Construction Manager's Fee stipulated in Article 6.
7.2 Reimbursable Cost Items
7.2.1 Wages paid for labor in the direct employ of the Construction Manager in the performance of General Condition Items under ap-
plicable collective bargaining agreements, or under a salary or wage schedule agreed upon by the Owner and Construction Manager, and
including such welfare or other benefits, if any, as may be payable with respect thereto.
7.2.2 Salaries of the Construction Manager's employees when stationed at the field office, in whatever capacity employed, employees
engaged on the road in expediting the production or transportation of materials and equipment, and employees in the main or branch of-
fice performing the functions listed below: (Rates include all costs enumerated in sub - paragraph 7.2.3
related thereto.)
PROJECT COORDINATOR: At Cost
PROJECT MANAGER: Preconstruction (Design Phase): Non - Reimbursable
Construction Phase: Non - Reimbursable up to eight (8) hours per week
only when stationed at the Field Office for construction requirements).
Requirements over eight (8) hours per week shall be reimbursable at
$30.00 per hour.
7.2.3 Cost of all employee benefits and taxes for such items as unemployment compensation and social security, insofar as such cost is
based on wages, salaries, or other remuneration paid to employees of the Construction Manager referred to in Subparagraphs 7.2.1 and
7.2.2.
7.2.4 The proportion of reasonable transportation, traveling, moving, and hotel expenses of the Construction Manager or of his officers
or employees incurred in discharge of duties connected with the Project. Mileage will be reimbursable at .25¢ /mile,
for 12P miles rotund tri�.
7.2.5 Cost including rental of all materials, supplies and equipment required to per orm General ondition It ms, including costs of
transportation, storage and maintenance thereof.
7.2.6 Cost of the premiums for all insurance which the Construction Manager is required to procure by this Agreement or is deemed
necessary by the Construction Manager.
7.2.7 Sales, use, gross receipts or similar taxes related to the Project imposed by any governmental authority, and for which the Con-
struction Manager is liable.
7.2.8 Permit fees, licenses, tests, royalties, damages for infringement of patents and costs of defending suits therefor, and deposits lost
for causes other than the Construction Manager's negligence. If royalties or losses and damages, including costs of defense, are incurred
which arise from a particular design, process, or the product of a particular manufacturer or manufacturers specified by the Owner or Ar-
chitect /Engineer, and the ConstructionManager has no reason to believe there will be infringement of patent rights, such royalties, losses
and damages shall be paid by the Owner.
7.2.9 Losses, expenses or damages to the extent not compensated by insurance or otherwise fincluding settlement made with the writ-
ten approval of the Owner.)
7.2.10 Minor expenses such as telegrams, long- distance telephone calls, telephone service at the site, expressage, and similar petty
cash items in connection with the Project.
7.2.11 Cost of removal of all debris.
7.2.12 Cost incurred due to an emergency affecting the safety of persons and property.
7.2.13 Cost of data processing services required in the performance of the services outlined in Article 2.
7.2.14 Legal costs reasonably and properly resulting from prosecution of the Project for the Owner.
7.2.15 All costs directly incurred in the performance of the Project and not included in the Construction Manager's Fee as set forth in
Paragraph 6.3
6 AGC DOCUMENT NO. 510 • OWNER CONSTRUCTION MANAGER AGREEMENT (OWNER AWARDS CONTRACTSI JUNE 1979
ARTICLE 8
Changes in the Project
8.1 The Owner, without invalidating this Agreement, may order Changes in the Project within the general scope of this Agreement isting of additions, deletions or other revisions, the Guaranteed Maximum Price, if established, the Construction Manager's Fee and the
onstruction Completion Date being adjusted accordingly. All such Changes in the Project shall be authorized by Change Order.
8.2 A Change Order is a written order to the Construction Manager signed by the Owner or his authorized agent issued after the execu-
tion of this Agreement, authorizing a change in the scope of the Project, services to be provided, and /or the Construction Manager's Fee
or the Construction Completion Date. The Construction Manager's Fee shall be adjusted as provided in Paragraph 6.2.
•
ARTICLE 9
Payments to the Construction Manager
9.1 The Construction Manager shall submit monthly to the Owner a statement, sworn to if required, showing in detail all moneys paid
out, costs accumulated or costs incurred on account of the Cost of the Project during the previous month and the amount of the Con-
struction Manager's Fee due as provided In Article 6. Payment by the Owner to the Construction Manager of the statement amount shall
be made within ten (10) days after it is submitted.
9.2 Final payment constituting the unpaid balance of the Cost of the Project and the Construction Manager's Fee shall be due and
payable when the Project is delivered to the Owner, ready for beneficial occupancy, or when the Owner occupies the Project, whichever
event first occurs, provided that the Project be then substantially completed and this Agreement substantially performed.
9.3 If the Owner should fail to pay the Construction Manager within seven (7) days after the time the payment of any amount becomes
due, then the Construction Manager may, upon seven (7) additional days' written notice to the Owner and the Architect/ Engineer, stop
the Project until payment of the amount owing has been received.
9.4 Payments due but unpaid shall bear interest at the rate the Owner is paying on his construction loan or at the legal rate, whichever is
higher.
ARTICLE 10
Insurance, Indemnity and Waiver of Subrogation
10.1 Indemnity
10.1.1 The Construction Manager agrees to indemnify and hold the Owner harmless from all claims for bodily injury and property
damage (other than the work itself and other property insured under Paragraph 10.4) that may arise from the Construction Manager's
operations under this Agreement.
10.1.2 The Owner shall cause all Trade Contractors to agree to indemnify the Owner and the Construction Manager and hold them
harmless from all claims for bodily injury and property damage (other than property insured under Paragraph 10.4) that may arise from
that contractor's operations. Such provisions shall be in a form satisfactory to the Construction Manager.
10.2 Construction Manager's Liability Insurance
10.2.1 The Construction Manager shall purchase and maintain such insurance as will protect him from the claims set forth below which
may arise out of or result from the Construction Manager's operations under this Agreement.
10.2.1.1 Claims under workers' compensation, disability benefit and other similar employee benefit acts which are applicable to the
work to be performed.
10.2.1.2 Claims for damages because of bodily injury, occupational sickness or disease, or death of his employees under any applicable
employer's liability law.
10.2.1.3 Claims for damages because of bodily injury, or death of any person other than his employees.
10.2.1.4 Claims for damages insured by usual personal injury liability coverage which are sustained (1) by any personas a result of an of-
fense directly or indirectly related to the employment of such person by the Construction Manager or (21 by any other person.
AGC DOCUMENT NO. 510 OWNEA- CONSTRUCTION MANAGER AGREEMENT (OWNER AWARDS CONTRACTS) JUNE 1979
10.2.1.6 Claims for damages, other than to the wom Itself, because of injury to or des«uctiun el tangibie propel ty, incluomg less of use
therefrom.
10.2.1.6 Claims for damages because of bodily injury or death of any person or property damage arising out of the ownership,
maintenance or use of any motor vehicle.
10.2.2 The Construction Manager's Comprehensive General Liability Insurance shall include premises — operations (including explo-
sion, collapse and underground coverage) elevators, independent contractors, completed operations, and blanket contractual liability on
all written contracts, all including broad form property damage coverage.
10.2.3 The Construction Manager's Comprehensive General and Automobile Liability Insurance, as required by Subparagraphs 10.2.1
and 10.2.2 shall be written for not less than limits of liability as follows:
a. Comprehensive General Liability
1. Personal Injury $ 1,000,000 Each Occurrence
$ 1,000,000 Aggregate
(Completed Operations)
2. Property Damage $ 1,000,000 Each Occurrence
$_1,000,000 Aggregate
b. Comprehensive Automobile Liability
1. Bodily Injury $ 1,000,000 Each Person
$ 11000,000 Each Occurrence
2. Property Damage $ 1,000,000 Each Occurrence
10.2.4 Comprehensive General Liability Insurance may be arranged under a single policy for the full limits required or by a combination
of underlying policies with the balance provided by an Excess or Umbrella Liability policy.
10.2.5 The foregoing policies shall contain a provision that coverages afforded under the policies will not be cancelled or nor renewed
until at least sixty (60) days' prior written notice has been given to the Owner. Certificates of Insurance showing such coverages to be in
Force shall be filed with the Owner prior to commencement of the Work.
10.3 Owner's Liability Insurance
10.3.1 The Owner shall be responsible for purchasing and maintaining his own liability insurance and, at his option, may purchase and
maintain such insurance as will protect him against claims which may arise from operations under this Agreement.
10.4 Insurance to Protect Project
10.4.1 The Owner shall purchase and maintain property insurance in a form acceptable to the Construction Manager upon the entire
Project for the full cost of replacement as of the time of any loss. This insurance shall include as named insureds the Owner, the Construc-
tion Manager, Trade Contractors and their Trade Subcontractors and shall insure against loss from the perils of Fire, Extended Coverage,
and shall include "All Risk" insurance for physical loss or damage including without duplication of coverage at least theft, vandalism,
malicious mischief, transit, collapse, flood, earthquake, testing, and damage resulting from defective design, workmanship or material.
The Owner will increase limits of coverage, if necessary, to reflect estimated replacement cost. The Owner will be responsible for any co-
insurance penalties or deductibles. If the Project covers a, 3ddition to or is adjacent to an existing building, the Construction Manager,
Trade Contractors and their Trade Subcontractors shall be named as additional insureds under the Owner's Property Insurance covering
such building and its contents.
10.4.1.1 If the Owner finds it necessary to occupy or use a portion or portions of the Project prior to Substantial Completion thereof,
such occupancy shall not commence prior to a time mutually agreed to by the Owner and Construction Manager and to which the in-
surance company or companies providing the property insurance have consented by endorsement to the policy or policies. This insurance
shall not be cancelled or lapsed on account of such partial occupancy. Consent of the Construction Manager and of the insurance com-
pany or companies to such occupancy or use shall not be unreasonably withheld.
10.4.2 The Owner shall purchase and maintain such boiler and machinery insurance as may be required or necessary. This insurance
shall include the interests of the Owner, the Construction Manager, Trade Contractors and their Trade Subcontractors in the Work.
10.4.3 The Owner shall purchase and maintain such insurance as will protect the Owner and Construction Manager against loss of use
of Owner's property due to those perils insured pursuant to Subparagraph 10.4.1. Such policy will provide coverage for expediting ex-
penses of materials, continuing overhead of the Owner and Construction Manager; necessary labor expense including overtime, loss of
income by the Owner and other determined exposures. Exposures of the Owner and the Construction Manager shall be determined by
mutual agreement and separate limits of coverage fixed for each item.
AGC DOCUMENT NO. 510 • OWNER CONSTRUCTION MANAGER AGREEMENT IOWNER AWARDS CONTRACTS) JUNE 1979
10.4.4. 1 he Uwnel snag, Itied cupy or an pvuues Will it l.unsuucllun ivlyiagel neIore an unpu,,we to loss may a;wi. Cuptes of any
subsequent endorsements will be furnished to the Construction Manager. The Construction Manager will be given sixty (601 days nobce
of cc rlcellation, non- renewal, or any endorsements restricting or reducing coverage. If the Owner does riot intend to purchase such in-
surance, he shall inform the Construction Manager in writing prior to the commencement of the Work. The Construction Manager may
then effect insurance which will protect the interest of himself, the Trade Contractors and their Trade Subcontractors in the Project, the
cost of which shall be reimbursable pursuant to Article 7. If the Construction Manager is damaged by failure of the Owner to purchase or
• maintain such insurance or to so notify the Construction Manager, the Owner shall bear all reasonable costs properly attributable thereto.
10.5 Property Insurance Loss Adjustment
10.5.1 Any insured loss shall be adjusted with the Owner and the Construction Manager and made payable to the Owner and Construc-
tion Manager as trustees for the insureds, as their interests may appear, subject to any applicable mortgagee clause.
10.5.2 Upon the occurrence of an insured loss, monies received will be deposited in a separate account and the trustees shall make
distribution in accordance with the agreement of the parties in interest, or in the absence of such agreement, in accordance with an ar-
bitration award pursuant to Article 14. If the trustees are unable to agree on the settlement of the loss, such dispute shall also be submit-
ted to arbitration pursuant to Article 14.
10.6 Waiver of Subrogation
10.6.1 The Owner and Construction Manager waive all rights against each other, the Architect/ Engineer, Trade Contractors, and their
Trade Subcontractors for damages caused by perils covered by insurance provided under Paragraph 10 4, except such rights as they may
have to the proceeds of such insurance held by the Owner and Construction Manager as trustees. The Owner shall require similar waivers
from all Trade Contractors and their Trade Subcontractors.
10.6.2 The Owner and Construction Manager waive all rights against each other and the Architect/ Engineer, Trade Contractors and
their Trade Subcontractors for loss or damage to any equipment used in connection with the Project and covered by any property in-
surance. The Owner shall require similar waivers from all Trade Contractors and their Trade Subcontractors.
10.6.3 The Owner waives subrogation against the Construction Manager, Architect/ Engineer, Trade Contractors, and their Trade Sub-
contractors on all property and consequential loss policies carried by the Owner on adjacent properties and under property and conse-
quential loss policies purchased for the Project after its completion.
10.6.4 If the policies of insurance referred to in this Paragraph require an endorsement to provide for continued coverage where there is
a waiver of subrogation, the owners of such policies will cause them to be so endorsed.
ARTICLE 11
Termination of the Agreement and Owner's
Right to Perform Construction Manager's Obligations
11.1 Termination by the Construction Manager
11.1.1 If the Project is stopped for a period of thirty days under an order of any court or other public authority having jurisdiction, or as a
result of an act of government, such as a declaration of a national emergency making materials unavailable, through no act or fault of the
Construction Manager, or if the Project should be stopped for a period of thirty days by the Construction Manager for the Owner's failure
to make payment thereon, then the Construction Manager may, upon seven days' written notice to the Owner and the Ar-
chitect /Engineer, terminate this Agreement and recover from the Owner payment for all work executed, the Construction Manager's Fee
earned to date, and for any proven loss sustained upon any materials, equipment, tools, construction equipment and machinery, in-
cluding reasonable profit and damages.
11.2 Owner's Right to Perform Construction Manager's Obligations and Termination by the Owner for Cause
11.2.1 If the Construction Manager fails to perform any of his obligations under this Agreement, the Owner may, after seven days' written
notice during which period the Construction Manager fails to perform such obligation, make good such deficiencies.
11.2.2 If the Construction Manager is adjudged a bankrupt, or if he makes a general assignment for the benefit of his creditors, or if a
.receiver is appointed on account of his insolvency, or persistently disregards laws, ordinances, rules, regulations or orders of any public
authority having jurisdiction, or otherwise is guilty or a substantial violation of a provision of the Agreement, then the Owner may,
without prejudice to any right or remedy and after giving the Construction Manager and his surety, if any, seven days' written notice, dur-
ing which period Construction Manager fails to cure the violation, terminate the employment of the Construction Manager and take
possession of the site and of all materials, equipment, tools, construction equipment and machinery thereon owned by the Constructior.
MENT NO. 510 • OWNER- CONSTRUCTION MANAGER AGREEMENT (OWNER AWARDS CONTRACTS) JUNE 1979
Manager and may finish the Project by whatever method he may deem expedient. In such case, the Construction Manager shall not he
entitled to receive any further payment until the Project is finished nor shall he be relieved from his obligations assumed under Article 6'
11.3 Termination by Owner Without Cause
11.3.1 If the Owner terminates this Agreement other than pursuant to Subparagraph 11.2.2 or Subparagraph 11.3.2, he shall reimburse
the Construction Manager for any unpaid Reimbursable Cost of the Project due him under Article 7, plus 111 the unpaid balance of the Fee
computed upon the Cost of the Project to the date of termination at the rate of the percentage named in Subparagraph 6.2.1 or if the
Construction Manager's Fee be stated as a fixed sum, such an amount as will increase the payment on account of his fee to a sum which
bears the same ratio to the said fixed sum as the Cost of the Project at the time of termination bears to a reasonable estimated Cost of the
Project when completed. The Owner shall also pay to the Construction Manager fair compensation, either by purchase or rental at the
election of the Owner, for any equipment retained. In case of such termination of the Agreement the Owner shall further assume and
become liable for obligations, commitments and unsettled claims that the Construction Manager has previously undertaken or incurred in
good faith in connection with said Project. The Construction Manager shall, as a condition of receiving the payments referred to in this
Article 11, execute and deliver all such papers and take all such steps, including the legal assignment of his contractual rights, as the
Owner may require for the purpose of fully vesting in him the rights and benefits of the Construction Manager under such obligations or
commitments.
.11.3.2 After the completion of the Design Phase, if the final cost estimates make the Project no longer feasible from the standpoint of
the Owner, the Owner may terminate this Agreement and pay the Construction Manager his Fee in accordance with Subparagraph 6.1.1
plus any costs incurred pursuant to Article 7,
ARTICLE 12
Assignment and Governing Law
12.1 Neither the Owner nor the Construction Manager shall assign his interest in this Agreement without the written consent of the
other except as to the assignment of proceeds.
12.2 This Agreement shall be governed by the law of the place where the Project is located.
ARTICLE 13 •
Miscellaneous Provisions
10 AGC DOCUMENT NO. 510 • OWNER - CONSTRUCTION MANAGER AGREEMENT (OWNER AWARDS CONTRACTS) JUNE 1979
ARTICLE 14
Arbitration
14.1 All claims, disputes and other matters m question arising out of, or relating to, this Agreement or the breach thereof, except with
.respect to the Architect /Engineer's decision on matters relating to artistic effect, and except for claims which have been waived by the
making or acceptance of final payment shall be decided by arbitration in accordance with the Construction Industry Arbitration Rules of
the American Arbitration Association then obtaining unless the parties mutually agree otherwise. This Agreement to arbitrate shall be
specifically enforceable under the prevailing arbitration law.
LJ
•
14.2 Notice of the demand for arbitration shall be filed in writing with the other party to this Agreement and with the American Arbitra-
tion Association. The demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter in question
has arisen, and in no event shall it be made after the date when institution of legal or equitable proceedings based on such claim, dispute
or other matter in question would be barred by the applicable statute of limitations.
14.3 The award rendered by the arbitrators shall be final and judgment maybe entered upon it in accordance with applicable law in any
court having jurisdiction thereof.
14.4 Unless otherwise agreed in writing, the Construction Manager shall continue to carry out his responsibilities under this Agreement
and maintain the Contract Completion Date during any arbitration proceedings, and the Owner shall continue to make payments in accor-
dance with this Agreement.
14.5 All claims which are related to or dependent upon each other, shall be heard by the same arbitrator or arbitrators even though the
parties are not the same unless a specific contract prohibits such consolidation.
This Agreement executed the day and year first written above.
ATTEST:
ATTEST:
OWNER:
CITY OF HUTCHINSON, MINNESOTA
0
CONSTRUCTION MANAGER:
CONSTRUCTION ANALYSIS AND MANAGEMENT, INC.
By
ergs or aug, President
AGC DOCUMENT NO. 510 • OWNER - CONSTRUCTION MANAGER AGREEMENT IOWNER AWARDS CONTRACTS) JUNE 1979
THE AMERICAN INSTITUTE OF ARCHITECTS
i~3
AIA Document 8141
Standard Form of Agreement Between
Owner and Architect
1977 EDITION
7HIS DOCU,MFA0 IIAS I%WONIAN7 I I(,AL CONSEQC)ENCES; CONSULTATI ON WITH
AN ATTORNLV III 6NC0URA(,M W)III RISPLCT To I7S C OMPIETION OR MODIFICATION
AGREEMENT
0 ade as of the day of in the year of Nineteen
undred and
BETWEEN the Owner
and the Architect
City of Hutchinson
755 Maple
Hutchinson, MN 55350
Thorbeck & Lambert, Inc.
1409 Willow Street
Minneapolis, Minnesota 55403
For the following Project:
(include detai!ed descr!ptior of Project location and scope.)
HUTCHINSON POLICE STATION
Hutchinson, Minnesota
The Owner and the Architect agree as sett iorth below.
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1HE AMLKI(AN EOlIII,II 01 AK( III I1 1 S ',I v 1 %% J AU AA�)HIIA1 11� nr_ Lx [, B141 -1
TERMS AND CONDITIONS OF AGREEMENT BETWEEN OWNER AND ARCHITECT
ARTICLE 1
ARCHITECT'S SERVICES AND RESPONSIBILITIES
BASIC SERVICES
The Architect's Basic Services consist of the five
phases described in Paragraphs 1.1 through 1.5 and
include normal structural, mechanical and electrical
engineering services and any other services included
in Article 15 as part of Basic Services.
1.1 SCHEMATIC DESIGN PHASE
1.1.1 The Architect shall review the prOgr,1111 funushed
by the Owner to ascertain the requirements of the Project
and shall review the understanding of such requirements
with the Owner.
1.1.2 The Architect shall provide a preliminary evalua-
tion of the program and the Project budget requirements,
each in terms of the other, subject to the limitations set
forth in Subparagraph 3.2.1.
1.1.3 The Architect shall review with the Owner Mterna-
tive approaches to design and construction of the Project.
1.1.4 Based on the mutually agreed upon program and
Project budget requirements, the Architect shall prepare,
for approval by the Owner, Schematic DvNign Do( unlenh
consisting of drawings and other documents illustrating
the scale and relationship of Project components.
1.1.5 The Architect shall submit to the Owner a State-
ment of Probable Construction Cost based on current
area, volume or other unit costs.
1.2 DESIGN DEVELOPMENT PHASE
1.2.1 Based on the approved Schematic Design Docu-
ments and any adjustments authorized by the Owner in
the program or Project budget, the Architect shali pre-
pare, for approval by the Owner, Design Development
Doeuments'consisting of drawings and other documents
to fix and describe the size and character (if the entire
Project as to architectural, structural, mechanical and elec-
trical systems, materials and such other element, a, may
be appropriate.
1.2.2 The Architect shall submit to the Owner a further
Statement,of Probable Construction Cost.
1.3 CONSTRUCTION DOCUMENTS PHASE
1.3.1 Based on the approved Design Development Doc-
uments and any further adjustments in the scope or qual-
ity of the Project or in the Project budget authorized by
the Owner, the Architect shall prepare, for approval by
the Owner, Construction Documents consisting of Draw-
ings and Specifications setting forth in detail the require-
ments for the construction of the Project.
1.3.2 The Architect shall assist the Owner in the prepara-
tion of the necessary bidding information, bidding forms,
the Conditions of the Contract, and the form of Agree-
ment between the Owner and the Contractor.
1.3.3 The Architect shall advise the Owner of anv adjust-
merits to previous Statements of Probable Construction
Cost indicated by changes in requirements or general
market conditions.
1.3.4 The Architect shall assist the Owner in connection
with the Owner's responsibility for filing documents re-
quired for the approval of governmental authorities hav-
ing jurisdiction over the Project.
1.4 BIDDING OR NEGOTIATION PHASE
1.4.1 The Architect, following the Owner's approval of
the Construction Documents and of the latest Statement
of Probable Construction Cost, shall assist the Owner in
obtaining bids or negotiated proposals, and assist in
awarding and preparing contracts for construction.
1.5 CONSTRUCTION PHASE — ADMINISTRATION
OF THE CONSTRUCTION CONTRACT
1.5.1 The Construction Phase will commence with the
award of the Contract for Construction and, together with
the Architec I's obligation to provide Basic Services under
chi. ,lgreement, will terminate when final payment to the
Contractor is due, or in the absence of a final Certificate
for Payment or of such due date, sixty days after the Date
Of Substantial Completion of the Work, whichever occurs
lira.
1.5.2 Unless otherwise provided in this Agreement and
incorporated in the Contract Documents, the Architect
shall protide administration of the Contract for Construc-
tion as set forth below and in the edition of AIA Docu-
ment A201, General Conditions of the Contract for Con-
struction, current as of the date of this Agreement.
1.5.3 The Architect shall be a eepresentative of the
Owner during the Construction Phase, and shall advise
and consult with the Owner. Instructions to the Contrac-
tor shall be forwarded through the Architect. The Archi-
tect .hall .have authority to act on behalf of the Owner
only to the extent provided in the Contract Documents
unless olhemise modified by written instrument in ac-
cordance with Subparagraph - 1.5.16,
1.5.4 The Architect shall visit the site at intervals ap-
propriate to the stage of construction or as otherwise
agreed by the Architect in writing to become generally
familiar with the progress and quality of the Work and to
determine in general if the Work is proceeding in accord-
ance with the Contract Documents. However, the Archi-
tect shall not be required to make exhaustive or con-
tinuous on -site inspections to check the quality or quan-
tity of the Work. On the basis of such on -site observa-
tions as an architect, the Architect shall keep the Owner
informed of file progress and quality of the Work, and
shall endeavor to guard the Owner against defects and
deficiencies in the Work of the Contractor.
1.5.5 The Architect shall not have control or charge of
and shall not be responsible for construction means,
methods, techniques, sequences or procedures, or for
Safety precautions and programs in connection with the
Work. for the acts or omissions of the Contractor, Sub-
AIA DOCUMENT 0141 • UtwNf R- ARCHITECT ACRI.I ME \T I IIIISII I \ItI r. Dl TION • It. u I'97 • A1.1% • r iq'T
THE ANILRIC.AN INSTITUTE Of AROII TLC Is ; -3. \1 %% %OPK ' \iNt'I, N11. \ \ All IM;ION 11. C. B'[X" 9141 -1977 3
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W c ntractors or any other persons performing any of the
or for the failure of any of them to carry out the
in accordance with the Contract Documents.
1.5.6 The Architect shall at all times have access to the
Work wherever it is in preparation or progress,
15.7 The Architect shall determine the amounts owing
to the Contractor based on observations at the site and on
evaluations of the Contractor's Applications for Payment,
and shall issue Certificates for Payment in such amounts,
as provided in the Contract Documents.
1.5.8 The Issuance of a Certificate for Payment shall
constitute a representation by the Architect to the Owner,
based on the Architect's observations at the site as pro-
vided in Subparagraph 1.5.4 and on the data comprising
the Contractor's Application for Payment, that the Work
has progressed to the point indicated; that, to the ho.t of
the Architect's knowledge, information and belief, the qual-
ity of the Work is in accordance with the Contract Docu-
ments (subject to an evaluation of the Work for con-
formance with the Contract Documents upon Subsontial
Completion, to the results of any subsequent tests re-
quired by or performed under the Contract DOCIIII1CI11A,
to minor deviations from the Contract Documents cor-
rectable prior to completion, and to any specific qualifies
tions stated in the Certificate for Payment); and that the
Contractor is entitled to payment in the amount certified,
However, the issuance of a Certificate for Payment shall
not be a representation that the Architect has made any
examination to ascertain how and for what purpose the
ntractor has used the moneys paid on account of the
tract Sum.
.9 The Architect shall be the interpreter of the re-
quirements of the Contract Documents and the judge of
the performance thereunder by both the Owner and
Contractor. The Architect shall render interpretations nec-
essary for the proper execution or progress of the Work
with reasonable promptness on written request of either
the Owner or the Contractor, and shall render wrinen de-
cisions, within a reasonable time, on all claims, disputes
and other matters in question between the Owner and the
Contractor relating to the execution or progress of the
Work or the interpretation of the Contract Documents.
1.5.10 Interpretations and decisions of the Architect shall
be consistent with the intent of and reasonabiv inferable
from the Contract Documents and shall he in written or
graphic form. In the capacity of interpreter .Ind judge,
the Architect shall endeavor to secure faithful perform-
ance by both the Owner and the Contractor. shall not
show partiality to either, and shall not be liable for the
result of any interpretation or decision rendered in good
faith in such capacity.
1.5.11 The Architect's decisions in matters relating to
artistic effect shall be final if consistent with the intent of
the Contract Documents. The Architect's decisions on
any other claims, disputes or other matters, in(Imling
those in question between the Owner and the CnnI.-M tor,
shall be subject to arbitration as provided in this Agree-
ment and in the Contract Documents.
0 12 The Architect shall have authority to reject Work
ich does not conform to the Contract Documents.
Whenever, in the Architect's reasonable Opinion, it is
necessary or advisable for the implementation of the intent
of the Contract Documents, the Architect will have author-
ity to require special inspection or testing of the Work in
accordance with the provisions of the Contract Docu-
ments. whether or not such Work be then fabricated, in-
stalled or completed.
1.5.13 The Architect shall review and approve or take
other appropriate action upon the Contractors submittals
such as Shop Drawings, Product Data and Samples, but
only for conformance with the design concept of the
Work and with the information given in the Contract
Documents. Such action shall be taken with reasonable
promptness so as to cause no delay. The Architect's ap-
proNal of a specific item shall not indicate approval of an
assembly of which the item is a component.
1.5.14 The Architect shall prepare Change Orders for
the Owners approval and execution in accordance with
the Contract Documents, and shall have authority to order
minor changes in the Work not involving an adjustment
in the Contract Sum or an extension of the Contract Time
which are not inconsistent with the intent of the Contract
Documents.
1.5.15 The Architect shall conduct inspections to deter-
mine the Dues of Substantial Completion and final com-
pletion, shall receive and forward to the Owner for the
Owner's review written warranties and related documents
required by the Contract Documents and assembled by
the Contractor, and shall issue a final Certificate for Pay-
ment.
1.5.16 The extent of the duties, responsibilities and lim-
itations of authority of the Architect as the Owner's rep-
resentative during construction shall not be modified or
extended without written consent of the Owner, the Con-
tractor and the Architect.
1.6 PROJECT REPRESENTATION BEYOND BASIC SERVICES
1.6.1 If the Owner and Architect agree that more ex-
tensive representation at the site than is described in
Paragraph 13 shall he provided, the Architect shall pro-
vide one or more Project Representatives to assist the
Architect in carrying out such responsibilities at the site.
1.6.2 Sueb Project Representatives shall be selected, em-
ployed and directed by the Architect, and the Architect
shall be compensated therefor as mutually agreed be-
tween the Owner and the Architect as set forth in an ex-
hibit appended to this Agreement, which shall describe
the duties, responsibilities and limitations of authority of
such Project Representatives.
1.6.3 Through the observations by such Project Repre-
sentatives, the Architect shall endeavor to provide further
protection for the Owner against defects and deficiencies
in the Work, but the furnishing of such project representa-
tion shall not modify the rights. responsibilities or obliga-
tions of the Architect as described in Paragraph 1.5.
1,7 ADDITIONAL SERVICES
the following Ser'ices are not included in Basic
Services unless so identified in Article 15. They shall
be provided if authorized or confirmed in writing by
the Owner, and they shall be paid for by the Owner
as provided in this Agreement, in addition to the
compensation for Bask Services.
4 6141 -1977 AIA DOCUMENT 8141 • ttll'NER- NRCHIII C1 A(,RI I VENT • rHIRWNTH EDITION • IUEY 19:' • AIA9 • Z 1977
1111. ANTI Kit A\ INti I I Ii 11 111 AN( III III I, 1'G NI%% NOR AVINUI, N.w'., l \'45111 NGTON, D.C. 21W*
1.7.1 Providing analyses of the Owner's needs, and pro-
gramming the requirements of the Project.
1.7.2 Providing financial feasibility or other special
studies.
1.7.3 Providing planning surveys, site evaluations, envi-
ronmental studies or comparative studies of prospective
sites, and preparing special surveys, studies and submis-
sions required for approvals of governmental authorities
or others having jurisdiction over the Project.
1.7.4 Providing services relative to future facilities, sys-
tems and equipment which are not intended to he con-
structed during the Construction Phase.
1.7.5 Providing services to investigate existing conditions
or facilities or to make measured drawings thereof, or to
verify the accuracy of drawings or other information fur-
nished by the Owner.
1.7.6 Preparing documents of alternate, separate or
sequential bids or providing extra services in connection
with bidding, negotiation or construction prior to the
completion of the Construction Documents Phase, when
requested by the Owner.
1.7,7 Providing coordination of Work performed by
separate contractors or by the Owner's own forces.
1.7.8 Providing services in connection with the work of
a construction manager or separate consultants retained
by the Owner.
1.7,9 Providing Detailed Estimates of Construction Cost,
analyses of owning and operating costs, or detailed quan-
tity surveys or inventories of material, equipment and
labor.
1.7.10 Providing interior design and other sim'lar ser-
vices required for or in connection with the selet tion,
procurement or installation of furniture, furnishings and
related equipment.
1.7.11 Providing services for planning tenant or rental
spaces.
1.7.12 Making revisions in Drawings, Specifications or
other documents when such revisions are inconsistent
with written approvals or instructions previOLIsly given,
are required by the enactment or revision of codes, laws
or regulations subsequent to the preparation of such doc-
uments or are due to other causes not solely within the
control of the Architect.
1.7.13 Preparing Drawings, Specifications and Supporting
data and providing other services in connection with
Change Orders to the extent that the adjusnnenl in the
Basic Compensation resulting from the adjusted Con-
struction Cost is nut ronvnemurate wnh the services re-
quired of the Architect, provided such Change Orders are
required by causes not solely within the control of the
Architect.
1.7.14 Making investigations, surveys, valuations, inven-
tories or detailed appraisals of existing facilities, and serv-
ices required in connection with construction performed
by the Owner.
1.7.15 Providing consultation concerning replacement of
any Work damaged by fire or other cause during con-
struction, and furnishing services as may be required in
connection with the replacement of such Work.
1.7.16 Providing services made necessary by the default
of the Contractor, or by major defects or deficiencies in
the Work of the Contractor, or by failure of performance
of either the Owner or Contractor under the Contract for
Construction.
1.7.17 Preparing a set of reproducible record drawings
Showing significant changes in the Work made during
construction based on marked -up prints, drawings and
other data furnished by the Contractor to the Architect.
1.7.18 Providing extensive assistance in the utilization of
any equipment or system such as initial start -up or testing,
adjusting and balancing, preparation of operation and
maintenance manuals, training personnel for operation
and m,unienance. and consultation during operation.
1.7.19 Providing services after issuance to the Owner of
life final Certificate for Payment, or in the absence of a
final Certificate for Payment, more than sixty days after
the Date of Substantial Completion of the Work.
1.7.20 Preparing to serve or serving as an expert witness
in connection with any public hearing, arbitration pro-
ceeding or legal proceeding.
1.7.21 Providing services of consultants for other than
the normal architectural, structural, mechanical and elec-
trical engineering services for the Project.
1.7.22 Providing any other services not otherwise in-
cluded in this Agreement or not customarily furnished in
accordance with generally accepted architectural practice.
1,8 TIME
1.8.1 The Architect shall perform Basic and Additional
Services as expeditiously as is consistent with professional
skill and care and the orderly progress of the Work. Upon
request of the Owner, the Architect shall submit for the
Owner's approval a schedule for the performance of the
Architect's services which shall be adjusted as required as
the Project proceeds, and shall include allowances for peri-
ods of time required for the Owner's review and approval
of submissions and for approvals of authorities having
jurisdiction over the Project. This schedule, when approved
hx the Owner, shall not, except for reasonable cause, be
exceeded by the Architect.
ARTICLE 2
THE OWNER'S RESPONSIBILITIES
2.1 The Owner shall pro0cle full information regarding
requirements for the Project including a program, which
shall .el forth the Owner's design objectives, constraints
and criteria, including space requirements and relation-
ships, flexibility and expandability, special equipment and
systems and site requirements.
2.2 If the Owner provides a budget for the Project it
shall include contingencies for bidding, changes in the
Work during construction, and other costs which are the
responsibility of the Owner, including those described in
this Article _' and in Subparagraph 3.1.2. The Owner shall,
at the request of the Architect, provide a statement of
funds available for the Project, and their source.
AIA DOCUMENT a141 • OWNER - AR( .III IE( i ALRI I MINI • LI IIRII IN I I I I LIMON • µ'I) ' I477 • AIM+ • 0 1T7
THE AMERICAN INSTITUTE OF ARCHITECTS, 173, NU9 1URI, AVENUE, N.%V.. %%ASHINCTON, D.C. ]WW 6141 -1977 5
0
r1
�The Owner shall designate, when necessary, a rep -
tative authorized to act in the Owner's behalf with
respect to the Project. The Owner or such authorzed
representative shall examine the documents submitted by
the Architect and shall render decisions pertaining thereto
promptly, to avoid unreasonable delay in the progress of
the Architect's services.
2.4 The Owner shall furnish a legal description and a
certified land survey of the site, giving, as applicable,
grades and lines of streets, alleys, pavements and adjoin-
ing properly; rights -of -way, restrictions, easements, en-
croachments, zoning, deed restrictions, houndaries and
contours of the site; locations, dimensions and complete
data pertaining to existing buildings, other improvement,
and trees; and full information concerning available ser-
ice and utility lines both public and private, aiwr c and
below grade, including inverts and depths.
2.5 The Owner shall furnish the services of soil engi-
neers or other consultants when such services are deemed
necessary by the Architect. Such services shall include test
borings, test pits, soil bearing values, percolation tests, air
and water pollution tests, ground corrosion and resistivity
tests, including necessary operations for determining sub-
soil, air and water conditions, with reports and appropri-
ate professional recommendations.
2.6 The Owner shall furnish structural, mechanical,
chemical and other laboratory tests, inspections and re-
ports as required by law or the Contract Documents.
The Owner shall furnish all legal, accounting and in-
nce counseling services as may be necessary at any
e for the Project, including such auditing services as
the Owner may require to verify the Contractor's Applica-
tions for Payment or to ascertain how or for what pur-
poses the Contractor uses the monevs paid by or on be-
half of the Owner.
2.8 The services, information, surveys and reports re-
quired by Paragraphs 2.4 through 2.7 inclusive shall be
furnished at the Owner's expense, and the Architrct shall
be entitled to oely upon the accuracy and completeness
thereof.
2.9 If the Owner observes or otherwise becomes aware
of any fault or defect in the Project or nonconto nlance
with the Contract Documents. prompt avritten notice
thereof shall be given by the Owner to the Ar hilec t.
2.10 The Owner shall furnish required information and
services and shall render approvals and decisions as ex-
peditiously as necessary for the orderly progress of the
Architect's services and of the Work.
ARTICLE 3
CONSTRUCTION COST
3.1 DEFINITION
3.1.1 The Construction Cost shall be the total cost or
estimated cost to the Owner of all elements of the Project
designed or specified by the Architect.
1*2 The Construction Cost shall include at current
rket rates, including a reasonable .dlmkanre for over-
head and profit, the cost of labor and m.ii,ml, nunOwd
by the Owner and any equipment which has been do-
signed, specified, selected or specially provided for by
the Architect.
3.1.3 Construction Cost dues not include the compen-
sation of the Architect and the Architect's consultants,
the cost of the land, rights -of -way, or other costs which
are the responsibility of the Owner as provided in Arti-
cle 2.
3.2 RESPONSIBILITY FOR CONSTRUCTION COST
3.2.1 Lvaluations ut the Owner's Project budget, State.
ment, of Prnhahle Construction Cost and Detailed
Estimates of Construction Cost, if any, prepared by the
Architect, represent the Architect's best judgment as a
design professional familiar with the construction indus-
trv. It i, rrco,.ni7ed, however, that neither the Architect
nor the Owner has control over the cost of labor, mate-
rials or equipment, over the Contractor's methods of de-
termining bid prices, or over competitive bidding, market
or negrlti, Ling conditions, Accordingly, the Architect
cannot and does not %Narrant or represent that bids or
negotiated prices will not vary from the Project budget
proposed, established or approved by the Owner, if any,
or from any Statement of Probable Construction Cust or
other cost estimate or evaluation prepared by the Archi-
tect.
3.2.2 No fixed limit of Construction Cost shall be estab-
lished as a condition of this Agreement by the furnishing,
proposal or establishment of a Project budget under Sub-
paragraph - 1.1.2 or Paragraph 12 or otherwise, unless such
fixed limit has been agreed upon in writing and signed by
the parties hereto. If such a fixed limit has been estab-
lished, the Architect shall be permitted to include con -
tingencie, for design, bidding and price escalation. to de-
termine what materials, equipment, component systems
and type, of construction are to be included in the Con -
Iraci Documents, to make reasonable adjustments in the
scope of the Project and to include in the Contract Docu-
ments alternate bids to adjust the Construction Cost to the
fixed limit. Anv such fixed limit shall be increased in the
amount of any increase in the Contract Sum occurring
after execution of the Contract for Construction.
3.2.3 If the Bidding or Negotiation Phase has not com-
menced within three months after ;he Architect submits
the Construction Documents to the Owner, any Project
budget or fixed limit of Construction Cost shall be ad-
juster) to reilect any change in the general level of prices
in the construction industry between the date of submis-
Nion of the Construction Documents to the Owner and
the dale on which proposals are sought.
3.2.4 If a Project budget or fixed limit of Construction
Cbst 'adjusted as provided in Subparagraph 3.2.3) is ex-
corded by the lowest bona fide bid or negotiated pro-
posal, the Owner Shall (1! give written approval of an
increase in Such fixed limit, (2) authorize rebidding or re-
negotialine of the Project within a reasonable time, (3) if
the I'nyert is abandoned, terminate in accordance with
Paragraph 10.2, or (4) cooperate in revising the Project
scope and quality is required to reduce the Construction
Cost. In the case of (4), provided a fixed limit of Construc-
tion Cost has been established as a condition of this Agree-
ment, tho , \rrhileri, without additional charge, shall mod -
nv the Drawings and Specifications as necessary to comply
6 0141 -1977 AIA 001 UMF%t BN11(M\t.a AxuunI I;.,, x i nu a.; i ua iu.enn. DnuEN. W to -1177. MAN • ®1977
THE AMILRICAN IW HUtl 01 .SRUIIU.I.T�, CV. NL %% 10¢6 M'UVE. N.L \'., wA6niNGTON, D.C. 20006
with the fixed limit. The providing of such service shall be
the limit of the Architect's responsibility arising from the
establishment of such fixed limit, and having done so, the
Architect shall be entitled to compensation for all ,err6 c,
performed, in accordance with this Agrvenwrit. kvhvil er
or not the Construction Phase i =_ commencvd
ARTICLE 4
DIRECT PERSONNEL EXPENSE
4.1 Direct Personnel Expense is defined as the diretr sal-
aries of all the Architect's personnel eng,lged on the Prol-
ect, and the portion of the cnNt of thvil oral n,l,llnr .roll
customary contributions and henefit, related thereto -I.,. h
as employment 6rxv, and other slalul„ry emplo,,m h, 1.
fits, insurance, sick leave, holidays, vacations, pen,ior,
and similar contributions and benefits.
ARTICLE 5
REIMBURSABLE EXPENSES
5.1 Reimbursable Expenses are in addition to the Com-
pensation for Basic and Additional Services and include
actual expenditures made by the Architect and tho Arch -
lect's employees and consultants ir, the interest of Ili(,
Project for the expenses listed in the following Suh-
paragraphs:
5.1.1 Expense of Irinsportation in connection with the
Project; living expenses in connection with out- of -IoNSn
travel; long distance communications; and fees paid for
securing approval of authorities having jurisdiction over
the Project.
5.1.2 Expense of reproductions, postage and handling of
Drawings, Specifications and other documents, excluding
reproductions for the office use of the Architect and the
Architect's consultants.
5.1.3 Expense of data processing and photographic pro-
duction techniques when used in connection wilh Addi-
tional Services. ,
5.1,4 If authorized in advance by the Owner, expen,(, „I
overtime work requiring higher than regular rates.
5,1.5 Expense of renderings, models and mock -up, re-
quested by the Owner.
5.1.6 Expense of any additional insurance coverage or
limits, including professional liabilitv insurance, requeaed
by the Owner in excess of that nommalb. r.irrwrl hs
Architect and the Archile( Y, ronsuL'anh.
ARTICLE 6
PAYMENTS TO THE ARCHITECT
6.1 PAYMENTS ON ACCOUNT OF BASIC SERVICES
6.1.1 An initial payment aN set forth in I'arai ;r,rl•h I • ,
the minimum payment under this Agreement.
6.1.2 Subsequent payment, for Basic Svmfvs ,h,dl irr
made monthly and shall he in pn qn ill on In set nos pel
formed within each Phase of services, on 16o 1,,l. ,rl
forth in Article 14.
6.1.3 If and to the extent that the contract Iitne iniu, lit
established in the Contract for Construction is vN(code,l
or extended through no fault of the Architect, compensa-
tion for any Basic Ser -ic-es required for such extended
period of Administration of The Construction Contract
,hall he compulvd as set forth in Paragraph 14.4 for Addi-
honal Svrvicvs.
6.1.4 "lien compensation I, haled nn a percentage of
(- un,trucbon Cost, and any portions of the Project are
deleted or otherwise not cunslrlafed. compensation for
North portion, of the Project ,hall be payable to the extent
,mire, are performed on such purlions, in accordance
mill the ,(hedule set forth In Subparagraph - 14.2.2. based
on i 1) The Intl ea bona tide hid or negotiated proposal or,
21 r no ,u, h hid or proposal i, roreiced, the most recent
Statemenl of Probable Construction Cost or Detailed Esti-
rnaL• (it (- on,lau lion C.oN[ for ,uch pnlLons of the Project.
6.2 PAYMENTS ON ACCOUNT OF
ADDITIONAL SERVICES
6.2.1 Payments on account of the Architect's Additional
Sor ices a, defined in Paragraph '1.7 and for Reimbursable
Ixpenw, is defined in Article 5 shall be made monthly
upon Iv,•.vnlalion of the Architect's statement of services
rendered or expenses incurred.
6.3 PAYMENTS WITHHELD
6. 3.1 No deductions shall he made from the Architect's
compensation on account of penalty, liquidated damages
or other sums withheld from p,rwlnents to contractors, or
on account of the cost of changes in the Work other than
these Ion �%hich, the Architect is held legally liable.
6,4 PROJECT SUSPENSION OR TERMINATION
6.4,1 If the Project is suspended or abandoned in whole
or in pant fur more than three months, the Architect shall
be compensated for all services performed prior to receipt
of written notice from the Owner of such suspension or
abandonment, together with Reimbursable Expenses then
due and all Termination Expenses as defined in Paragraph
10,4. If the Project is resumed after being suspended for
more than three months, the Architect's compensation
shall be equitably adius+ed.
ARTICLE 7
ARCHITECT'S ACCOUNTING RECORDS
7.1 Records of Reimbursable Expenses and expenses per -
laining to Additional Semites and services performed on
the he,i, of i xlultiple of Direct Personnel Expense shall
be kept wl the ha,is of genvr,dly accepted accounting
purl iplo, and shall be awai!able to the Owner or the
(hN,wi , auhhorired repr,- Prilative at mutually convenient
I,mrv.
ARTICLE 8
OWNERSHIP AND USE OF DOCUMENTS
B.1 Doming, and Specifications aN instruments of serv-
i, e are ,Ind ,hall remain the prupen) of the Architect
whvtI, r the Proiecl for which they are made is executed
of not the tAwnvi shall he perroillvd to retain copies, in-
, luddrg relnoducible copies, of Drawings and Speeifiea-
lions for information and reference in connection with the
f AN nvr', u• -v and orcupunn of thv Project. The Drawings,
and spec tuallon, ,hall not he used by the Owner on
AIA DOCUMINT 0141 -1 IwNiR AR( 11111, l N11611P \I -.I I IIF IIt .!I 1W I, ,; It I1 1 ^' \I.• •.. pq;
THE AMERICAN INSolUTL 01 ARCHInC1%. 1735 NL1w TURI: n'.','.., -.N NASHIN4IUN. U.C. :(xM 0141 -1977 7
n
•
other projects, for additions to this Project, or for cgmple-
Oon of this Project by others provided the Architect is not
n default under this Agreement, except by agreement in
writing and with appropriate compensation to the Archi-
tect.
8.2 Submission or distribution to meet official regulatory
requirements or for other purposes in connection with the
Project is not to be construed as publication in derogation
of the Architect's rights.
ARTICLE 9
ARBITRATION
9.1 All claims, disputes and other matters in question
between the parties to this Agreement, arising out of or
relating to this Agreement or the breach thereof, shall be
decided by arbitration in accordance with the Construc-
tion Industry Arbitration Rules of the American Arbitra-
tion Association then obtaining unless the parties mutu-
ally agree otherwise. No arbitration, arising out of or ro-
lating to this Agreement, shall include, by consolidation,
joinder or in any other manner, any additional person not
a party to this Agreement except by written consent con-
taining a specific reference to this Agreement and signed
by the Architect, the Owner, and any other person sought
to be joined. Any consent to arbitration involving an ad-
ditional person or persons shall not constitute consent 111
ITT of any dispute not described therein r with
any person not named or described therein. This Agree-
ament to arbitrate and any agreement to arbitrate with an
dditional person or persons duly consented w by the
parties to this Agreement shall be specifically enforceable
under the prevailing arbitration law.
9.2 Notice of the demand for arbitration shall be filed in
writing with the other party to this Agreement and with
the American Arbitration Association. The demand shall
be made within a reasonable time after the dainl, dispute
or other matter in question has arisen. In no event shall
the demand for arbitration be made after the date when
institution pf legal or equitable proceedings based on
such claim, dispute or other matter in question would be
barred by the applicable statute of limitations.
9.3 The award rendered by the arbitrators shall be final,
and judgment may be entered upon it in accordance with
applicable law in any cou•t having jurisdiction thereof.
ARTICLE 10
TERMINATION OF AGREEMENT
10,1 This Agreement may be terminated by either party
upon seven days' written notice should the other party
fail substantially to perform in accordance to :th it, terms
through no fault of the party initialing the termination.
10.2 This Agreement may he terminated by the Owner
upon at least seven days' written notice u1 the Architect
in the event that the Project is permanently abandoned.
10.3 In the event of termination not the fault of the Ar-
chitect, the Architect shall be compensated for all services
performed to termination date, together with Rcimburs-
able Expenses then due and all Termination Nliernes as
defined in Paragraph 10.4.
10.4 -- Termination Expenses include expenses directly at-
tributable to termination for which the Architect is not
otherwise compensated, plus an amount computed as a
percentage of the total Basic and Additional Compensa-
tion earned to the time of termination, as follows:
.1 20 percent if termination occurs during the Sche-
matic Design Phase; or
.2 10 percent if termination occurs during the Design
Development Phase; or
.3 5 percent if termination occurs during any subse-
quent phase.
ARTICLE 11
MISCELLANEOUS PROVISIONS
11.1 Unless otherwise specified, this Agreement shall be
governed by the law of the principal place of business of
the Architect.
11.2 Terms in this Agreement shall have the same mean-
ing as those in AIA Document A201, General Conditions
of the Contract for Construction, current as of the date
of this Agreement.
11.3 As between the parties to this Agreement: as to all
acts or failures to act by either party to this Agreement,
any applicable statute of limitations shall commence to
run and any alleged cause of action shall be deemed to
have accrued in any and all events not later than the rele-
vant Date of Substantial Completion of the Work, and as
to any acts or failures to act occurring after the relevant
Date of Substantial Completion, not later than the date of
issuance of the final Certificate for Payment.
11.4 The Owner and the Architect waive all rights
against each other and against the contractors, consult-
ants, agents and employees of the other for damages cov-
ered by any property insurance during construction as set
forth in the edition of AIA Document A201, General Con-
ditions, current as of the date of this Agreement. The
Owner and the Architect each shall require appropriate
similar waivers from their contractors, consultants and
agents.
ARTICLE 12
SUCCESSORS AND ASSIGNS
12.1 The Owner and the Architect, respectively, bind .
themselves, their partners, successors, assigns and legal
representatives to the other party to this Agreement and
to the partners, successors, assigns and legal representa-
tives of such other party with respect to, all covenants of
this Agreement- Neither the Owner nor the Architect shall
as,ign, sublet ur transfer anv interest in this Agreement
vv ithout the written consent of the other.
ARTICLE 13
EXTENT OF AGREEMENT
13.1 This Agreement represents the entire and integrated
agreement between the Owner and the Architect and
supersedes all prior negotiations, representations or agree-
ments, either written or oral. This Agreement may be
amended only by written instrument signed by both
Owner and Architect.
8 8141 -1977 AIA UOCUMt Nf B141 • ORNLR AR( HIT[( I AURI I MEN I • 1111 RI1ELN111 LOT I ION • IULY 19,77 • AIA4 • Q 1977
THE AMERICAN INSrITUTr Of ARCHITECTS. 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20a6
_ 1
ARTICLE 14
BASIS OF COMPENSATION
The Owner shall compensate the Architect for the Scopf• of Service,. provided, in accordance with Article 6, Payments
to the Architect, and the other Terms and Conditions of this Agreement, as follows:
14.1 AN INITIAL PAYMENT of dollars ($
shall be made upon execution of this Agreement and credited to the Owner's account as follows:
14.2 BASIC COMPENSATION
14.2.1 FOR BASIC SERVICES, as described in Paragraphs 1.1 through 1.5, and any other ,ervices included in Article 15
as part of Basic Services, Basic Compensation shall he computed as follows:
fifew In....t N", of rnmponwlinn, mdudlnR h"'I amnunn mutr,p,.. n. ..enema,, and ulenlify Phases to which particular methods of compensa-
tion appfy, if nonssaw I
7.5% of the total construction cost.
r�
�J
14.2.2 Where compensation is based on a Stipulated Sum or Percentage of Construction Cost, payments for Basic
Servic ,gs shall be made as provided in Subparagraph 6.1.2, so that Basic Compensation for each Phase shall
equal the following percentages of the total Basic Compensation payable:
(Include anv additional Phases as appmpriate I
Schematic Design Phase: percent 115 %)
Design Development Phase: percent ( 20 %)
Construction Documents Phase: percent ( 4 0 %)
Bidding or Negotiation Phase: percent( 5 %)
Construction Phase: percent ( 20 %)
14.3 FOR PROJECT REPRESENTATION BIYOND ItAsle SERVICES, as described in Paragraph 1.6, Compensation shall
be computed separately in accordanm with Subparagraph 1.6.2.
AIA DOCUMENT 8141 • OWNER- ARCHITECT ACRrrUI V • 1HIR111 \TII I DITION • K IN In" . \10 • C 1977 5141 -1977 9
THr AM[ RIt AN ICN111,11 01 `,KC1 II I It 11. t Il %1 \t Ni SRI. \\ ".I 1 N\C \t 1, C. ?'"N'
1144 COMPENSATION FOR ADDITIONAL SERVICES
.4.1 FOR ADDITIONAL SERVICES OF TI If ARCI Ill ECT, as described in Paragraph 1.7, and any other services in-
cluded in Article 15 as part of Additional Services, but excluding Additional Services of consultants, Compen-
sation shall be computed as follows:
plrn• m..vt Weis of cnmprnwoon. n(hu/mR rate, and.ur mdl,p!rr W 1)or.. I'r,.annrt rape .e l... pnm ,p.li, and lmpfm ... + and ldrnW, P.....'.10,
and due fy - mpin)'re,. if ,rglp,,,J Idenely .pro In .. .. n.. m .. fl., 1, pxl., A" rxdunl. nt romp....... f ..n apply. it nrrr..my I
PRINCIPALS' TIME: Robert Lambert, Architect $60.00 /Hour
Duane Thorheck, Architect $60.00 /Hour
Roger Martin, Landscape Architect $60.00 /Hour
ASSOCIATES' TIME:
SENIOR STAFF:
JUNIOR STAFF:
11
$45.00 /Hour
$30.00 /Hour ,
$25.00 /Hour
14.4.2 FOR ADDITIONAL SERVICES Or CONSULTANTS, including additional structural, mechanical and electrical
engineering services and those provided under Subparagraph 1.7.21 or identified in Article 15 as part of Addi-
tional Services, a multiple of 1.20 times the amounts billed
do the Architect for such vrviLu,
pdrnfiq, y+,,ific i,pe, ill cnn.u!Alnf, m A,In 1, 1. d r, ,. u..
14.5 FOR9¢EIMBURSABLE EXPENSES, as described in Article 5, and any other items included in Article 15 as Reim.
bursable Expenses, a multiple of 1 1.0 1 times the amounts ex.
pended by the Architect, the Awhile d', employees and (nsLltants in the interest of the Project.
14,6 Payments due the Architect and unpaid under this Agreement shall bear interest from the date payment is
due at the rate entered below, or in the absence thereof, at the legal rate prevailing at the principal place of
business of the Architect. Eight percent (8%) interest rate accrued on invoices over 60 days past due.
tllmr ,meet any ..ale n/ mfrrrsl aGrrrJ upon �
Uwr, ta... and ...... mrnl. ,... Ill. {patrol Ini:h •+ Irn.' q; ;1.... .;,,:.. ..,) ;,.•,,; ..Lt I.",. and oth... ...gool'o "• a, 11h•
0x." , and Anha"I" punr,pal plau•, ni bu.. nr.. !I .. .,...ran ........ nJ . ,... nwo rn... +`.im,r Th.- vX,da, .4 Ili .. prnv...m (n••r inr IrG,J
arty.., J...dr! hr n,!,:n +l .rrth ...,pr.J :o il. b... ,a-, i ..n ur nlhi i ....•......1, a, .. nm n ....rl.nu.r+ or uaicr,, ,
14.7 The Owner and the Architect agree in accordance wilh the Terms and Conditions of this Agreement that:
14.7.1 IF THE SCOPE of the Project or of the Arcbilect's Services is changed materially, the amounts of compensation
shall be equitably adjusted,
a4,7.2 IF TI-11 SERVICES covered by this Agnrinenl have not been completed within thirty
1301 nvnlhs of the date hrrrnt, ihl))uph nn Ludt n1 Ihr An hltrt t. Ihr amounts of compensation. rates and
multiples set forth herein shall be e,lui61b1', adjusted.
1U 8141 -1977 AIA WKL lktl%i Hill -, q1m R lyt 11111, I Pd., I UINI. IIIIk Itl Nlil i-DolUN• WI\ 07•AIAV.p 19:7
111 E A611. KI1. nC IV.II Id IL OF ARCI I I I I C I. I -Jr, NLA% IORK \y ENU E. N, W.. 11 ASH ING TO N, 0. C. 20006
ARTICLE 15
OTHER CONDITIONS OR SERVICES
15.1 The Architect shall provide a site visit one month prior to
the end of the warranty period. Costs for this visit to be
reimbursed by the owner.
15.2 The Onwer will provide design and engineering services for tele-
phone, fire alarm, communications, and security systems.
Architect to provide empty conduit to locations requested by
the Owner.
15.3 Architect is to meet in Hutchinson with the Building Committee
twice during the design phases and once during the construction
document phase; and with the City Council at theend of each
phase for project and budget review and authorization to proceed.
Any other meetings with thePolice Chief or others are to be
in the Architect's office.
15.4 The Architect will visit the site once a month for construction
observation. Additional site visits by the Architect, if
necessary, to be reimbursed by the Owner.
15.5 The basic services shall include landscape architecture related
to site development.
AIA DOCUMINt B141. C A %SIR AS, 1111111 Ni Allv1I '.I • um: i -; 1 1111 a ICI I,, . h IA I . AI :A• II' -
IHE AA" RI( A' IVSIIIUII u1 AN( 1'171(l1, 1-4. '.1 N V 1 . 1,,A1I 1. A AAA IIIA41UV, 11( 3A0I6 6141 -1977 11
0
0
0
This Agreement entered into as of the day and year first written above.
OWNER ARCHITECT
CITY OF HUTCHINSON THORBECK & LAMBERT, INC.
1409 Willow Street
755 Maple Minneapolis,
BY
Hutchinson, Minnesota 55350 Minnesota 55403
BY
Robert Lambert
Its: Mayor Its: Secretary- Treasurer
BY
0s: Council Administrator
BY
AU DM UMI.NT nu, Av'. ��' II L; ( , I I11'111 '.I IIHIUv • ICI) V -- • AIA� - -, 1977
12 B141 -1977 1HF A11[B;(I% I. _ I'I AM HII -�'. 3 %1 %� WK, -N1cU N.AY_ WASHINGTON- D.C. DC 20006
• May 7, 1986
Mr. Marlow Priebe, P.E.
Director of Engineering
City of Hutchinson
37 Washington Avenue West
Hutchinson, MN 55350
RE: Service Line Corrosion
MRF 9617005
Dear Marlow:
We are pleased to respond to the City Council's request to investigate the
copper service line corrosion problem occuring in the Hutchinson
distribution system. As mentioned at the April 22 Council meeting, copper
tubing in water supply systems is subject to a number of corrosion attacks.
General corrosion attack is rare and generally occurs at low rates so that
the service life of the tubing is not significantly reduced. Impingement and
pitting attacks can be both rapid and severe. It appears that all three
forms of attacks may be present.
deke
=BROe It is difficult at this time to estimate the duration and depth of the
�SOCiates, inc. investigation necessary to isolate the primary cause and develop an
architects effective corrosion control measure. RCM suggests a two step process.
engineers The first step would include the evaluation of the September 12 1985 test
land surveyors p P
results, an examiniation of the recovered service lines, and some additional
testing of the existing water corrosiveness. Following the investigation
and evaluation of the probable cause, we would report back to the City
with our study results.
Upon acceptance of the above study and authorization to proceed, RCM
would enter into the second step of developing effective corrosion control
alternatives. Depending on the results of the initial study, RCM will
investigate a series of corrective actions appropriate to the Hutchinson
situation and present our recommended alternatives.
We propose to provide the investigative and evaluation services indicated
using an hourly rate plus reimbursable expenses. This method allows
maximum latitude for investigation of possible alternatives and analysis of
service line problems. The City of Hutchinson would compensate RCM
only for the actual time and expenses incurred on this project.
Compensation for services shall be as follows:
Senior Professional Engineer $75 per hour
Junior Professional Engineer $48 per hour
Clerical $24 per hour
• Travel Expenses At Cost
Testing Services Provided by
Others Through RCM Cost Plus 10%
1011 first street south
post office box 130
hopkins, minnesota 55343
612- 935 -6901
• Mr. Marlow Priebe, P.E.
May 7, 19a6
Page 2
If testing services are contracted directly by the City, RCM will provide
assistance in determining type and number of tests required at no extra
expense.
In order to provide you with a tentative budget amount, we recommend an
initial investigation and evaluation level of 50 hours of senior engineering
time with a budget expense of $4,000 plus $1,000 for testing and a
corrective action level of 25 hours of senior engineering time with a budget
expense of $2,000. These levels of expenditures would be exceeded only if
authorized by the City.
If you have any questions regarding this proposal, please feel free to
contact Dale Watson or myself in our Hopkins office.
Very tr ly yours,
Charles S. Barger, P.E/
RIEKE CARROLL MULLER ASSOCIATES, INC.
• CSB:jj
Accepted:
CITY OF HUTCHINSON
m
F-M
Date
0
• HUTCHINSON POLICE DEPARTMENT MEMORANDUM DATE 5 -9 -86
TO Mayor and Council
FROM Dean M. O'Borskv Chief of Police
SUBJECT Stop Sign Request
Attached is a memo from Officer Michael Kirchoff requesting stop signs
be placed where Franklin, Glen, Brown and Grove Streets intersect Milwaukee
Avenue. I agree with his recommendation and request the Council enact an
Ordinance so authorizing those signs.
CJ
• DMO:neb
��G
POLICE DEPARTMENT MEMORANDUM
TO 201
FROM 207
SUBJECT
Request for Stop Signs
DATE 5 -8 -86
on 5 -8 -86, I investigated a 10 -50 at the intersection of
Glen & Milwaukee. It was fortunately just property damage at this
time. This intersection, as all others along Milwaukee Avenue
(Franklin, Glen, Brown, & Grove), are presently uncontrolled. All
the other east -west streets in the area are through streets and
have stop signs at the intersections. This causes much confusion
and accidents.
While I was conpleting the report, 5 -10 adults who live in
the area asked me what they had to do to get stop signs. They
stated there are many children in the area, and they are concerted
for their safety.
I am requesting stop signs at all streets that intersect with
Milwaukee Avenue. This is the four aforementioned streets of
Franklin, Glen, Brown, and Grove Streets.
Thank you.
MR/ly
0
•
9
� - G. .
I
4
J
r
�{ ph2 �p ✓1el /[ce h e�1OA7
I \e�a 3 %eMrrY! /SS /O�j
d b1 atre Cc 1 Cz 6f Ole
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q;� 9.-30) /+' rxrc,� ! -�1O ec /DYJ
Fa vl
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0 RESOLUTION NO. 8277
APPOINTING LEGAL COUNSEL
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
THAT James Schaefer be appointed as City Attorney at a retainer fee
for a six month period from July 1, 1986 to December 31, 1986. Services to be
included within the retainer fee are: prosecution of Police Uepartment cases;
attendance at all City Council and Planning Commission meetings; attendance at
City staff meetings held the first and third Wednesday each month; preparation
of Resolutions and Ordinances; negotiating property acquisition and counseling
property owners on relocation law and benefits; legal services for all bond
issues, except legal services for industrial revenue and tax increment bond /note
issues and other customary legal services in the normal cause of City business.
Matters such as appearance in county, state district, or federal dis-
trict court will be billed separately, with an annual ceiling for such legal
expenditures as determined by the City Council. State Supreme Court Appeals
will be billed as extra legal services outside of the retainer fee and afore-
mentioned ceiling. Legal action initiated to collect obligations owing the
City or its agencies may be billed on a contingent fee basis and any amounts
received for such actions shall not be included in any aforementioned ceiling.
Adopted by the City Council this 13th day of May, 1986.
ATTEST:
Gary D. Plotz
City Clerk
�J
Paul L. Ackland
Mayor
17,
`r
RESOLUTION NO. 8278
CITY OF HUTCHINSON
RESOLUTION FOR PURCHASE
•
The Hutchinson City Council authorizes the purchase of the following:
ITEM 1
111,311.5
COST
— PURPOSE JDEPT.j
DEPT.
BUDGET
VENDOR
Signs
Cleaning Sewer
Locator Signs
Library
Construc
Serigraphics
tion
Sign Systems
Nalco 85WP -208
2,845.8
Sludge Thickener
Sewer
Yes
Nelco Checmical Co.
_ Am
Garage
Choice of hiring outside
1W
I:...
COE
*
,t *
The following items were authorized due to an emergency need:
ITEM -
t Cutter
COST
PURPOSE
DEPT.
BUDGET
VENDOR
1,150.0
Cleaning Sewer
Sewer
*
Flexible Pipe
Tool Co.
pressor
1,475.0
Replacement
Central
**
G.T.C.
Garage
Choice of hiring outside
con
ractor at cost of over $3,6
0 or purchase
to
1 to allow
our crew to do clean
out of
ine. Is in operation and w
rks very
well.
Old compressor inope
atable
And not repairable. Necessa
v to repair
larg
equipment
immediately.
Date Approved: May 13, 1986
• Motion made by:
Seconded by:
Resolution submitted for Council action
by:
RESOLUTION NO. 8279
• RESOLUTION CANVASSING ELECTION RETURNS OF CITY
SPECIAL ELECTION HELD MAY 13, 1986
WHEREAS, the City Council has duly met as a canvassing board as required
by the City Charter for the purpose of canvassing the election returns of the
City Special Election held May 13, 1986, wherein voting machines were used for
the casting of votes in every voting precinct of the City, and
WHEREAS, the City Council has duly inspected the Return Sheets of each
Precinct using voting machines at said election, prepared and certified to by
the election officers of the several precincts in which the election was held,
therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON THAT:
1. Said election returns be hereby canvassed, and the number of votes re-
ceived at such election, together with the number of absentee ballots and spoiled
ballots, if any, is hereby determined to be as follows:
SPECIAL ELECTION
• On the Question: Shall the City of
Hutchinson transfer funds in an amount
not to exceed $99,500.00 from the Fire
Hall Construction Fund of 1981 proceeds
and accrued interest earnings thereon to
a Police Facility Construction Account?
PRECINCTS
TOTAL
VOTES
1
2
3
4
5
YES 274
56
55
76
48
39
NO 94
13
16
24
19
22
Absentee Ballots 6
1
-
4
1
-
Total Votes Cast 368
69
71
100
67
61
iled Ballots
is
7 —(�'
• 2. That the total good ballots cast at said election was
3. That the Judges for said election were as follows:
Precinct #1 Precinct #4
Julie Flaa Jo Gilhousen
Verna Anderson Norma Schepers
Mary Wangerin Rosemary Santelman
Olga Kern Gladys Madson
Precinct #2
Delain Rolfe
Sedona Miller
Evelyn Prochnow
Precinct #3
• Doris Daggett
Tesi Antony
Darlene Kn.
gge
La Verne Miller
•
Margaret Sorenson
Grace Kottke
Mary J. Brummond
Irma Kreie
Registration Table
Fern Frank
Norma Totushek
• 4. That the attached is a true copy of the ballots used as absentee
ballots in said election:
OFFIC W BALLOT
SPECIAL
CITY ELECTION
CITY OF HUTCHINSON, MINNESOTA
TUESDAY, MAY 131 1986
7 A.M. T08 P.M.
C�
INSTRUCTIONS TO VOTERS:
PLACE AN X IN THE SQUARE SELECTED.
SHALL THE CITY OF HUTCHINSON
TRANSFER FUNDS IN AN AMOUNT
NOT TO EXCEED $99,500.00
FROM THE FIRE HALL CONSTRUCT-
ION FUND OF 1981 PROCEEDS AND
MACCRUED INTEREST EARNINGS
YES THEREON TO A POLICE FACILITY
NO CONSTRUCTION ACCOUNT?
n
LA
0
0
S. That the following are true copies of the ballot used on the voting
machine in said election.
(To be attached after 30-day grace period on machines.)
QUESTION
"Shall the City of Hutchinson
transfer funds in an amount not
to exceed $99,500.00 from the
Fire Hall Construction Fund of
1981 Proceeds and Accrued In-
terest Earnings thereon to a
Police Facility Construction
Account ?"
OFFICIAL BALLOT
CITY ELECTION
MAY 139 1986
• Adopted by the City Council this 13th day of May, 1986.
ATTEST:
Gary D. Plotz
City Clerk
•
is
Paul L. Ackland
Mayor
•
0
I1
LJ
RESOLUTION NO. 8280
RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT
Be it resolved that City of Hutchinson enter
(grantee)
into a grant agreement with the State of Minnesota for the project entitled
New Dimension Plating
(project title
to be conducted
during the period from April 22, 1986 through May 31, 1988
(beginning date) (ending date)
City Administrator is hereby authorized to execute such
(title of authorized official)
agreements as are necessary to implement the project on behalf of
City of Hutchinson
(grantee)
I certify that the above resolution was adopted by the
City Council of City of Hutchinson
(grantee)
on May 13, 1986
(date)
SIGNED:
(signature)
Mayor
(title)
May 14, 1986
(date)
SCDP VI /11 -1
WITNESSED:
executive body
signature
City Clerk
(title)
14, 1986
(date
7-66,
De amne t of Ener
P gY
� and Economic Development
•
Community Development Division
296.5005
April 28, 1986
Mr. Gary Plotz
City Administrator
37 Washington Avenue W
Hutchinson, MN 55350
RE: Grant Number 16026EO0686
Grant Title: New Dimension Plating
Dear Mr. Plotz:
Qda �J
S,
900 American Center
150 East Kellogg Boulevard
St. Paul, Minnesota 55101
�' - * °s
MAY !996
On April 22, 1986, Commissioner Dayton approved funding for your project.
Enclosed are the documents which you will need to complete and sign to enter
into an official agreement with the State. Also enclosed are a Program Manual,
Environmental Handbook, and reporting forms which you will need for the
administration of your project.
Here's how to proceed:
1.
Have your board or council take action on the resolution aut114Llzing
execution of agreement. ease note that the beginni— ng ending dates in
the reso u ion s ould be the same as the dates in paragraph 5 of the grant
agreement.
2. Once the resolution has been executed, the grant agreement may be signed.
Read the grant agreement thoroughly, especially the special conditions,
which may require action before funds can be disbursed. Complete the
information required on the top of the signature page and have the person
designated as the authorized official in the resolution (above) sign and date
the section labeled "Grantee ". This signed agreement must be returned to
me. The remaining copy should be kept for your records.
3. The grantee Summary Information Sheet must be completed (see sheet for
instructions).
4. The First Source Agreement for job recruitment, referral and placement
between the Minnesota Department of Jobs and Training and the Employer
should be executed and a copy retained in your files.
Once you have completed these four steps, send the resolution, the original
signed grant agreement, and summary sheet to me. I will forward the grant
agreement to the appropriate state officials for signature and then return the
completely signed agreement to you for your records.
AN EQUAL OPPORTUNITY EMPLOYER
1-1 —do o
. Mr. Plotz 2 April 28, 1986
Please read the Program Manual and Environmental Handbook before beginning
any work on your grant. The information in these books requires that certain
processes and steps be followed at various points in your project. Before
implementation of your project can begin, the Project Director must attend an
individualized training session (implementation workshop). Please contact me at
(612) 296 -3898 immediately to set a date for training. Please note that the
requirements for environmental review (explained in Section Two) apply to your
project and must be addressed before you can begin your project.
We look forward to working with you on this project. Good luck?
Sincerely,
C a4 (� c E�
Carol Pressley -Olson
Economic Development Specialist
pb
CM IV /2 -CP & CP1 (2 -1 & 2 -2)
Enclosures
•
•
. STATE OF MINNESOTA
DEPARTMENT OF ENERGY AND ECONOMIC DEVELOPMENT
COMMUNITY DEVELOPMENT DIVISION
Grant Agreement
#16026E00686
This Agreement is made this 22nd day of April, 1986 by and between the State of
Minnesota, acting by and through the Department of Energy and Economic Development
(hereinafter called the Grantor) and the City of Hutchinson (hereinafter called the
Grantee);
WHEREAS, the Grantor has been allocated funds by the United States Department of
Housing and Urban Development under the Community Development Block Grant
Program; and
WHEREAS, the Grantee has made application to the Grantor for a portion of such
allocation for the purpose of conducting the project entitled New Dimension Plating in
the manner described in Grantee's "APPLICATION ", which is hereby incorporated by
reference.
NOW, THEREFORE, in consideration of and in reliance upon the mutual covenants and
agreements contained herein, the parties hereto do covenant and agree, each for
• themselves and their respective successors and assigns, as follows:
The Grantor shall grant to the grantee the total sum of One Hundred Fifty -Two
Thousand Five Hundred Dollars ($152,500), which shall be federal funds appropriated to
the State of Minnesota under the Community Development Block Grant program. The
Grantee shall perform and accomplish such purposes and activities as are specified
herein during the period from April 22, 1986, through May 31, 1988.
Funds made available pursuant to this Agreement shall be used only for expenses
incurred in performing and accomplishing such purposes and activities during the grant
period described above. All other provisions of this Agreement notwithstanding, it is
understood that any reduction or termination of Housing and Urban Development funds
provided to the Grantor may result in a like reduction to the Grantee.
Where provisions of the Grantee's "APPLICATION" are inconsistent with other
provisions of this Agreement, the other provisions of this Agreement shall take
precedence over the provisions of the "APPLICATION ".
CM IV /6 -CP (6 -1)
•
7 _v-'
Required Resolution
Grantee shall attach hereto, prior to submission, certified copies of resolutions or •
other authority by the appropriate governing body or bodies, as shall legally authorize
the execution of this Agreement on behalf of the Grantee.
Accounting
For all expenditures of funds made pursuant to this Agreement, Grantee shall keep
financial records including properly executed payrolls, time records, invoices,
contracts, receipts, vouchers, and other documents sufficient to evidence in proper
detail the nature and propriety of the expenditure. For all personnel compensated out
of such funds, Grantee shall keep time distribution records which identify each
individual compensated by name and indicate the calendar dates and number of hours
of each day for which the individual is compensated by the source of such
compensation. These time records must be signed by both the individual and
supervisor. A written record shall also be maintained that clearly indicates the
amount of vacation, sick leave, and compensatory time earned and taken. For
contracts with individual consultants, invoices for payment must state that the work
performed and invoiced is in accordance with the terms of the consultant contract.
Furthermore, these invoices must also state the calendar dates and number of hours of
each day for which the consultant is requesting compensation. Accounting methods for
this program must meet the standards set forth in OMB Circular A -102.
Reporting
Grantee shall submit to Grantor a progress report on the form prescribed by the •
Grantor for each calendar quarter which falls wholly or partially within the grant
period. These reports must be received by Grantor on the 25th day of each October,
January, April, and July which follows a report period. A final project report will
be submitted at the closeout of the grant. Grantee shall promptly submit other
reports as Grantor shall reasonably request.
Payment /Disbursement Schedule
Grantor shall disburse funds to the Grantee pursuant to this Agreement, based upon a
Payment Request submitted by the grantee and reviewed and approved by the Grantor.
Payment Requests shall be reviewed and processed on a weekly basis.
Provisions for Contracts and Subgrants
The Grantee shall include in any contract and subgrant, in addition to provisions to
define a sound and complete agreement, such provisions as to assure contractor and
subgrantee compliance with applicable state and federal laws. In addition, contractor
shall certify that it has received a certificate of compliance from the Commissioner of
Human Rights pursuant to Minnesota Statutes, 1982, Section 363.073, if applicable.
The Grantee shall obtain evidence from any contractor or subgrantee of compliance
with the worker's compensation insurance coverage requirement of Minnesota Statutes,
1982, Section 176.181, Subdivision 2. 0
F
Each contract or subgrant shall include the following wording:
• ANTITRUST: Contractor hereby assigns to the State of Minnesota any and
all claims for overcharges as to goods and /or services provided in
connection with this contract resulting from antitrust violations which arise
under the antitrust laws of the United States and the antitrust laws of the
State of Minnesota.
NOTICE TO CONTRACTOR: You are required by Minnesota Statutes,
1982, Section 270.66 to provide your social security number or Minnesota
tax identification number if you do business with the State of Minnesota.
This information may be used in the enforcement of federal and state tax
laws. Supplying these numbers could result in action to require you to file
state tax returns and pay delinquent state tax liabilities. This contract
will not be approved unless these numbers are provided. These numbers
will be available to federal and state tax authorities and state personnel
involved in the payment of state obligations.
Social Security
Minnesota Tax ID
Federal Employer ID
Termination Clause
40 When the Grantor finds that there has been a failure to comply with the provisions of
this Agreement, that reasonable progress has not been made, or that the purposes for
which the funds were granted have not been or will not be fulfilled, notwithstanding
any other provisions of this Agreement to the contrary, the Grantor may take action
to protect the interests of the State of Minnesota, including the refusal to disburse
additional funds and requiring the return of all or part of funds already disbursed.
Financial Closeout
Grantee shall liquidate all unpaid obligations related to the project which were
incurred on or before the last day of the grant period within ninety (90) days
immediately following the expiration of the grant per ?od. Grantee shall return any
funds received under this Agreement, which are not obligated as of the last day of
the grant period, to Grantor by check made payable to "Treasurer, State of
Minnesota ".
The State of Minnesota will make payments for approved expenditures up to, but not
exceeding, the amount of funds awarded under this grant.
Audit and Inspection
The Grantee shall furnish the Grantor with an acceptable independent audit of
• expenditures of program funds, including grant and other funds, prior to closeout of
the grant.
0
Accounts and records related to the funds provided under this Agreement shall be
accessible to authorized representatives of the Grantor for the purposes of examination
and audit. In addition, Grantee will give the State of Minnesota, Department of •
Energy and Economic Development, Legislative Auditor, State Auditor's Office, and
the Comptroller General of the United States, through any authorized representatives,
access to and the right to examine all records, books, papers, or documents related
to the grant.
STANDARD GRANT CONDITIONS
Section 104(b) of Title I of the Housing and Community Development Act, as
amended, requires that the State of Minnesota certify that all subgrants will comply
with the provisions of this title and other applicable laws. Certain statutes are
expressly made applicable to activities under the Act by the Act itself, while other
laws not referred to in the Act may be applicable to such activities by their own
terms. Therefore, in compliance with the requirements of the Act, the Grantee shall
comply with:
1) Title VI of the Civil Rights Act of 1964 (P.L. 88 -352), which provides that no
person in the United States shall on the grounds of race, color, or national
origin, be excluded form participation in, be denied the benefits of, or be
subjected to discrimination under any program or activity receiving federal
financial assistance.
2) Title VIII of the Civil Rights Act of 1968 (P.L. 90 -284), known as the Fair •
Housing Act of 1968, which provides that it is the policy of the United States to
provide, within constitutional limitations, for fair housing throughout the United
States and prohibits any person from discrimination in the sale or rental of
housing, the financing of housing, or the provision of brokerage services,
including in any way making unavailable or denying a dwelling to any person
because of race, color, religion, sex, or national origin.
3) Executive Order 11063, as amended by Executive Order 12259, which prohibits
discrimination because of race, color, religion (creed), sex, or national origin,
in the sale, leasing, rental, or other disposition of residential property and
related facilities (including land to be developed for residential use), or in the
use of occupancy thereof, if such property and related facilities are among
other things, provided in whole or in part with the aid of loans, advances,
grants, or contributions agreed to be made by 'he federal government.
4) Section 109 of the Housing and Community Development Act of 1974, as
amended, which provides that no person in the United States shall, on the
grounds of race, color, national origin or sex, be excluded from participation in,
be denied the benefits of, or be subjected to discrimination under any program or
activity funded in whole or in part with funds provided under the Act. Any
prohibition against discrimination on the basis of age under the Age
Discrimination Act of 1975 or with respect to otherwise qualified handicapped
individuals as provided in Section 504 of the Rehabilitation Act of 1973 shall also
apply to any such program activity.
•
4
5) Title II of the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 and implementing regulations (24 CFR Part 42 and 24 CFR
• 570.602(a)7.
6) Davis -Bacon Act, as amended, requiring payment of wages at prevailing rates,
and the Contract Work Hours and Safety Standards Act.
7) The National Environmental Policy Act of 1969.
8) Section 3 of the Housing and Urban Development Act of 1968 which requires that
to the greatest extent, feasible opportunities for training and employment be
given to lower income persons residing within the unit of local government in
which the project is located; and that contracts for work in connection with the
project be awarded to eligible business concerns which are located in, or owned
in substantial part by persons residing within the unit of local government.
9) Title IV of the Lead Based Paint Poisoning Prevention Act, as amended (42
U.S.C. Section 4831).
10) All parts of Title 1 of the Housing and Community Development Act of 1974, as
amended, which have not been cited previously as well as with other applicable
state and federal laws.
11) The regulations, policies, guidelines, and requirements of OMB Circular A -102,
Revised, and OMB Circular A -87 as they relate to the application, acceptance,
and use of federal funds under this part.
• 12) The Minnesota Government Practices Act, Chapter 13, including but not limited
to Section 13.31.
13) Minnesota Statute 471.87 and 88, addressing interest in contracts on the part of
public officers (commonly referred to as conflict of interest).
14) The regulations, reporting, and recordkeeping requirements as stated in the
"Program Manual ", as supplemented, provided by the Grantor.
15) Grantee hereby assigns to the State of Minnesota any and all claims for
overcharges as to goods and /or services provided in connection with this contract
resulting from antitrust violations which arise under the antitrust laws of the
United States and the antitrust laws of the State of Minnesota.
CM III /7 -CP
•
9
SPECIAL CONDITIONS
•
FOR: Grant Number 16026E00686
Project Title: New Dimension Plating
1. Within 30 days of grant award, Grantee will complete and submit a Community
Profile.
2. All recipients of funds must report progress and expenditures under standard
activity categories, using the appropriate activity number. The applicable activity
categories and their numbers are:
12. Administration
13. Assistance to For - profit Entities
3. The $100,000 bank financing for a line of credit for working capital is deleated
from source and use of funds. Transferred $10,000 equity from working capital to
equipment based on letter received April 7, 1986.
4. Funds will not be released until the following is submitted to the Grantor and
approved:
a. Evidence that the $100,000 of cash equity is on deposit in a company escrow •
account.
5. A loan agreement and promissory note must be reviewed by an attorney to assure
that the City of Hutchinson is adequately protected. The loan agreement must
spell out conditions, terms, and rates of the loan, as stated in the approved grant
application. Special conditions 6, 7, 8, 9, 10, 11, and 12, included in this grant
agreement must be incorporated into the loan agreement. A copy of the loan
agreement, promissory note, and amortization schedule must be submitted to the
Grantor for approval prior to requesting funds.
6. The loan of grant funds to New Dimension Plating, Inc., by the City of Hutchinson
will be governed by the conditions, terms, rates, and purposes stated in the
(approved) application, and may not be modified without prior written approval
from the Grantor.
7. The Grantee may not request funds from the Grantor for disbursement to New
Dimension Plating, Inc., until the Grantee has received documentation
demonstrating acquisition costs. The Grantee must request funds for acquisition
costs from the Grantor based on a cost - sharing ratio of 50 percent grant funds to
50 percent other funds.
8. Leveraging funds described in the approved application must be used for the same
purposes and under the same terms, rates, and conditions, as specified in the
approved application, unless prior written concurrence is received from the •
Grantor.
6
9. The Grantee must provide evidence that the jobs created are filled by or made
available to low and moderate income persons. To meet this requirement, the •
Grantee must follow one of the following two options:
a) Once the jobs are filled, the Grantee must verify that the persons hired are
of low and moderate income households, as per Section 8 income guidelines; or
b) The Grantee must verify that jobs have been made available to persons of low
and moderate income, by documenting that:
• the skill level of the jobs available meets that of the general LMI
population,
• the education and experience required meets that of the LMI population,
• that training provided by the employer, if training is needed, will make the
jobs available to the LMI population,
• that advertising, recruitment, and other outreach efforts are made to
contact and involve the LMI population, and
• the jobs are physically accessible to the LMI population.
If these 5 points are met and documented, it will be assumed by the Grantor
that the jobs are available to the LMI population.
10. The Grantee must include job creation information in each quarterly progress •
report. This information must include:
• jobs created by quarter
• rate of pay and job title per job
• date employee(s) hired
• jobs created to date (cumulative total)
• any layoffs by quarter
• jobs retained to date
11. The Grantee must report on job creation until 15 FTE jobs specified in the grant
application for the New Dimension Plating activity are created. The 15 FTE jobs
must be created by the Grantee's target date of May 31, 1988. The Grantee must
also report on job retention for the 29 jobs created prior to the award of this
grant. If 44 total jobs are not created and retained, the Grantee may be required
to return to the Grantor a proportional share of the grant.
12. Grantee must secure from New Dimension Plating, Inc., the necessary documentation
that loan proceeds and leveraged funds have been used for the items and purposes
stated in the grant application, prior to requesting grant closeout from the
G rantor.
13. Principal and interest payments from the loan to New Dimension Plating, Inc., must
be used to establish and maintain a revolving loan fund, provided that the purpose
of that loan fund is to further future economic development in the City of .
Hutchinson, thereby creating additional LMI jobs in the community.
7
14. Once grant funds are expended, an audit meeting the requirement of OMB Circular
• A -128, must be performed. This grant will not be processed for final closeout
until the audit has been submitted and accepted by the Grantor.
CM II /8 -CP (8 -1)
•
is
Grant Number 16026EO0686
Project Title: New Dimension Plating
• Notice to Grantee
You are required by Minnesota Statutes, 1981 Supplement, Section 270.66, to pro-
vide your Minnesota tax identification number if you do business with the State
of Minnesota. This information may be used in the enforcement of federal and
state tax laws. Supplying these numbers could result in action to require you
to file state tax returns and pay delinquent state tax liabilities. This
contract will not be approved unless these numbers are provided. These numbers
will be available to federal and state tax authorities and state personnel
involved in the payment of state obligations.
Minnesota Tax ID
Federal Employer ID
IN WITNESS WHEREOF, the Grantor has caused this Agreement to be duly
executed on its behalf and its seal to be hereunto fixed and the Grantee has
caused the same to be duly executed on its behalf.
APPROVED:
Commissioner of Administration
is By
Date
APPROVED:
Commissioner of Finance
By
Date
APPROVED AS TO FORM AND
EXECUTION THIS DAY OF
19
ATTORNEY GENERAL
STATE OF 'MINNESOTA
• BY _
Title
CM II /9 -CP (9 -1)
GRANTEE: I have read and I agree
to all of the above provisions of
this agreement.
as
Title
Date
STATE OF MINNESOTA by and
through the Department of Energy
and Economic Development.
0
Title
Date
(612) 587.5: i
F CITY OF I. UTCY%fINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
MEMORANDUM
Date: April 16, 1986
TO: Hutchinson City Council
FROM: Hutchinson Planning Commission
SUBJECT: Request for Rezoning as Submitted by City of Hutchinson
Pursuant to Section 6.06, C4, of Zoning Ordinance No. 464, the Hutchinson
Planning Commission is hereby submitting its findings of fact and
recommendation with respect to the aforementioned request for rezoning.
imillldil
At the regular meeting of the Planning Commission on Thursday, March 20,
the Planning Commission set a public hearing on the proposed rezoning of
property located on Hwy. 22 South, (Wastewater Treatment Plant Site plus)
from C -2 (Commer cial) R -2 (Residential) to I -1 (Limited Industrial), as
• submitted by the City of Hutchinson. A public hearing was held on Tuesday,
April 15, 1986, at which time, Mr. Wayne Oliva, adjoining property owner
as well as a representative of Hassan Valley Township, stated his concern
about so much of the property being rezoned. He stated they would like
the southern most portion of the property to remain residential.
FINDINGS OF FACT
1. The required application, site plan and application fee were waived
as this is a City request.
2. Notices was published in the Hutchinson Leader on Thursday, April 3,
1986.
3. The proposed rezoning is in conformance with the Comprehensive Plan.
RECOMMENDATION
It is the recommendation of the Planning Commission that the aforementioned
request to rezone be granted, and further recommends that the council look
at property on southeast boundary of the proposal as remaining R -2.
Respectfully submitted,
Roland Ebent, Chairman
Hutchinson Planning Commission
OAF t
(612) 587 -5151
FCITY OF HUTCHINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
rwaiLej
DATE: May 6th, 1986
TO: Mayor and City Council
FROM: Director of Engineering
RE: S.E. Area Annexation
Attached is a map with the City owned land recently annexed outlined in red.
This is the area to be considered for rezoning.
Marlow V. Priebe
Director of Engineering
MVP/PV
attachment
cc: Wayne Oliva
Jim Schaefer
Gary Plotz
C�
J
C�
0
8� Q.
11 . -
V. 1110
i
(812) 587 -5151
I CITY OF HUTCHINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
DATE: April 1, 1986
TO: Mayor and City Council
FROM: Director of Engineering
RE: Solid Waste Management
At the March 26th meeting of the City Solid Waste Management Committed, the
proposal to have a City wide collection of leaves in the fall of 1986 for a
City composte project was given favorable approval.
• We, therefore, request the City Council to consider this proposal. It would,
also, be our request that if approved, the City Council could work out a
pick -up program with Junker Sanitation. our committee is willing to assist
in this project in any way possible.
Marlow V. Priebe
Director of Engineering
MVP/PV
cc: Mark Schnobrich, Chairman
40
Yay 20 1986
City of Hutchinson
37 Washingtcn Avenue West
Hutchinson, Yinnesots 55350
RE: Airport Ditch Cleanout
We submit the u•zetetion of $'„ 500.00, to
clean out the Ai:nport ditch.
• We
propose reginr._r_g the work on Jttr_e 1 ,
1986. The exFct date will be determined
by hiEh v.rater in the ditch.
P?CY.SC" x iE.'rLIly` CC-,7 PACTIN"
,n
Pre ident
0
r C1612) 587 -5151
T Y OF HUTCHINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
M E M O
DATE: May 5th, 1986
TO: Mayor and City Council
FROM: Director of Engineering
RE: Airport Ditch Cleanout
Attached is a quotation from Erickson & Templin to do the ditch work
that has been programmed for 1986. The cost estimate is the same as
quoted in 1984. I recommend approval for same.
Marlow V. Priebe
Director of Engineering
MVP /pv
attachment
cc: Ralph Neumann
Ken Merrill
?- �t
E T
IONTRACTING ��e�e �t[ice �1Z =5871 8 io�e 587 =8211
Yay 29 1986
City of Hutchinson_
37 Iffs shins tcn Avenue West
Hutchinson, Vinnesota 55350
RE: Airport Ditch Clea.nout
We sar ^it the q,lictFtion of to
clean out t::e hi --port ditch.
We prorose reginn -_nE the work on June 1 ,
19LQI Tlie exact date :gill be determined
by hiE_;h wEzter it the ditch.
;pT ^,YSC;, x X1'1, Iliv' CC_'`^FACTT *'^
ki
L. _e �_ lin , r E ident
►_.I
•
•
(612) 587.5151
JWJ37 /TY O F HUTCH/NSON
WASHINGTON AVENUE WEST
CHINSON, MINN. 55350
M E M 0
DATE: May 5th, 1986
TO: Mayor and City Council
FROM: Director of Engineering
RE: Utilities West of School Road
Attached are the plans for sanitary sewer and watermain extension Nest of
School Road on the proposed service road and highway by -pass.
Total construction now, based on 1986 contract prices, is as follows:
340'
- 6"
Watermain
$ 3,400
1
- 6"
Hydrant
830
1
- 6"
Valve & Box
306
1
- 8"
x 6" Reducer
94
340'
- 8"
P.V.C. Sewer Main
3,400
3
- 8"
x 4" Wye
90
60'
- 4"
Service Lead
396
1
- Manhole - 12' Deep
1,130
TOTAL------- ---- - - - --- $ 9,246
Partial construction and future construction, based on 1986 contract prices,
is as follows:
2
- Manhole - 12' Deep
$ 2,260
50'
- 8" P.V.C. Sewer Main
500
PARTIAL CONSTRUCTION --
$ 2,760
1
- Manhole - 12' Deep
$ 1,130
300'
- 8" P.V.C. Sewer Main
3,000
3
- 8" x 4" Wye
90
100'
- 4" Service Lead
1,000
340'
- 6" Watermain
4,080
1
- 6" Hydrant
900
1
- 6" Valve and Box
350
1
- 8" x 6" Reducer
100
FUTURE CONSTRUCTION - -- $11,550
It is my recommendation we do the total construction at this time.
MVP /pv
Marlow V. Priebe
Director of Engineering
ROLLIN
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49.85
Ord-21 58/'-5151
f i �' CT HUTCHINSON
• r iC rVES
May 2, 1986
M E M O R A N D U M
•
•
TO: MAYOR AND CITY COUNCIL
FTM: RALPH NE[A1ANN
The local chapter of the Civil Air Patrol has been offered a
training classroom mobile hone type trailer from Green Giant of
Glencoe. This 14' X 70' structure is nice looking and in
excellent condition and would be blocked up, skirted and tied
down in an area that once housed a mobile hone used by the
airport maintenance manager.
The State CAP would own this unit having approved accepting it
from Green Giant. No water or sewer will be needed. Electricity
is available for this site.
CAP meetings previously were held in the office area which
became overcrowded.
No county permit is needed. However, we will need a township
permit.
I
i
(612) 587.5151
ITY OF HUTCHINSON
VASHINGTON AVENUE WEST
;HINSON, MINN. 55350
M E M 0
DATE: May 2nd, 1986
TO: Mayor and City Council
FROM: Director of Engineering
RE: Storm Sewer Improvement
During the recent period of wet weather, I have been informed of a problem
in the area of Prospect Street between 5th Avenue and 6th Avenue.
We have found that at the time the Northeast Storm Sewer System was
installed, about 24 years ago, an additional manhole and old lines should
have been connected to the new system in said area.
• Attached is an estimate of cost to do such work and request approval to
proceed.
MVP/PV
attachment
•
Marlow V. Priebe
Director of Engineering
LISTING CHART
JUUL CONTRACTING CO.
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960,00
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fT�if t�fM
INfYf�NCt
THOMAS B. DOLDER
Auto - Life - Health -Name and Business
336 MAIN ST S
HUTCHINSON, MN 55350 PHONE (612) 587 -2565
May 9, 1986
City Hall
ATTN Kay Link
37 Washington Ave. W.
Hutchinson, Mn. 55350
Dear Kay,
This is a request for a 3.2 license for Shakey's and also a wine license
for Shakey's Pizza located on Highway 7 West at the Hutch Bowl complex.
We would like these licenses in effect as soon as possible. The corporate
name is Do -West, Inc. The stockholders are at 42% Rich Westlund, 42%
Tom Dolder, and 16% Dave Westlund. We will have our applications in by
the 13th of May.
Any questions,
. Sin /c ly,
Tom Dolder
please give me a call.
(612) 587 -5151
%H!/1liY" CITY OF HUTCHINSON
212s *3 °�
37 WASHINGTON AVENUE WEST `� 1
N
- - HUTCHINSON, MINN. 55350 N
0
N '
a.
April 28, 1986
Mayor Paul Ackland and the
Hutchinson City Council
RE: Auto Accident of 9 -16 -85
Dear Councilmembers:
I am enclosing for your information copies of the City
file concerning an accident involving a street department
truck and a Rockite Silo vehicle. Damage estimates to the
city vehicle range from $254 to $269. The insurance company
for Rockite Silo, CNA, has offered 708 settlement. This would
• make the Rockite portion of the damages $188.58 and the city's
damage $80.82 if the highest damage estimate is utilized as a
basis for settlement. Please review this file and determine
whether you wish to accept CNA's offer of a 708 settlement.
If the offer is not acceptable, I would seek authority to
initiate conciliation court action to recover the full amount
of the claimed damages. I would again point out that the
costs of trial in this matter will exceed the disputed amount
and there is a risk that any trial will result in a finding
that the municipality was more than 308 negligent, thereby
reducing the amount of settlement obtained.
Sincerely yours,
CITY OF HUTCHINSON
Bye ,„',7 l� jf�'
Jamesldi. Schaefer
Hutchinson City Attorney
JHS:dlp
Enclosures
•
1 -F
N m 01 OuMOM whccr
an
Ium
p /owman ..L.
MOM W 474
'STN[ OLD RILIASLE .IM. HU'
./MOOtK�.
■ WW"VIKINIa
NMMV UATK
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ear or w
MOOT TT.K
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SMAL r1.
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WORK
Me" AND
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aAVININ" f
0
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-
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=!ECT TO INVOICE PRICE CHANGES *US TOTAL$ O 304 ing
• TrM asn.r.1 M rar r Y IrliT.w r w. r.r aw.w w.TNW\ M1wi[ Y TOTAL
..I[w r.Ip. WT r wwY.Ir yTY 11.[ .w IYI I[r w1MT.0. Y1Y T..[ NIIIt
.1.1 Itr.r..�l r W WY .Yf. r.wtN .Y IpT alnlbff r .IMT Il.a.iTlr W1
r MLKK TAX
[Yw ..rs.T w rr� TwT.rrT Iwoa. T.r wT.W T[ u w .rraw.n .roTa.a. p
a
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• Phom:(6171$07•1240
_—_ MYRON WIGEN CHEV. CO.
WE USE COMPLrITI SOOT a AUTOM001LE PAINnNG
• GLASS INSTALLM
HUTCMNSONT MINNESOTA 55350
BODY AND FENDER REPAIRS • EXPERT REFINISHING
D f471.111s
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SJIECT TO INVOICE PRICE CHANGES SUS TOTALS .?p
Tlaa an.." w "+ t• w wracv,s, Aw w[ w cww rrnwL a+wa r TOTAL
LAM WAA ru w .ar11N. rTa. T .M. w. MAN .TYTe. YTaw TI.a .M
me aTYTe. o OR *, N TART* WCM AM AAT 4N OR TIaAT mWww I NOT
e O.a CACU, YATI.YAT TM. aAT.WTa CYYT a ft Me. CWF C1CHM N.T. SALSS TAX
•YCIa w v T. Cw.lAa Ally~ WKa. TYC 92 "ima [ M IY .YWi.1T' AaCOTNia. TOTAL
syl
EennArr soon � _ 1 t �i•_A•e0• R - F,_ ■ ARIA& :
INSURANCE PLANNERS
Box 68 • 135 Third Avenue Southeast
Hutchinson, Minnesota 65350
587 -2298
April 10, 1986
ATTN: Jo Runke
City Hall
Hutchinson, MN 55350
RE: City of Hutchinson
vs. Rockite Silo Inc.
Accident 9 -16 -86
Dear Jo,
Enclosed are the copies of the estimates we sent in to CNA on
11- 15 -86.
If we can be of further assistance, let me know.
Sincerely,
i
Peg Reding
are.�E�T YOU RA' nOrOHW ^f
0
•
•
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•
ORIGINATOR - DETACH & RETAIN
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•
(612) 587 -5151 roc"� 212s2g3 HRH CITY OF HUTCHINSON APR, 37 WASHINGTON AVENUE WEST � HUTCHINSON, MINN. 55350
April 28, 1986
Paul Ackland and Members of
the Hutchinson City Council
HUTCHINSON CITY HALL
37 Washington Avenue West
Hutchinson, MN 55350
RE: Allen R. Reid
Gentlemen:
On June 16th of 1985 a Hutchinson Fire Truck driven by
• John Roy Madson was involved in an accident with a motor
vehicle driven by Randall Scott Reid. In reviewing the
attached Traffic Accident Report prepared by the Hutchinson
Police Department it would appear that the fire truck was
heading westbound on Roberts Road when it attempted to make a
right turn into the parking lot of the St. Anatasia Catholic
Church. Mr. Madson indicates that he had engaged the turn
signals in a proper and timely manner. While engaged in the
righthand turn, the city -owned vehicle was struck in the right
front area by the car driven by Randall Scott Reid. The
Traffic Accident Report indicates that Mr. Reid was attempting
to pass the fire truck on the right. The report also states
that Mr. Reid indicates he did not see the signals on the fire
truck.
•
The total damage to the city vehicle was estimated at
$436.92. The matter was submitted to Mr. Reid's insurer,
Western National Mutual Insurance Company. On March 20th of
1986 Western National denied responsibility for damage. I am
enclosing a copy of a letter of that date for your files. On
April 2, 1986 I contacted Western National, outlined the
city's position and made a demand for payment. I am also
enclosing a copy of that letter for your records. On April
23rd of this year Western National offered to pay 50% of the
damages based on all the facts of the accident.
9 -G
Paul Ackland and Council
April 28, 1986
Page Two
If this offer is acceptable to you, I would like
authority to contact the Western National Mutual Insurance
Company and obtain payment. This would make the city's cost
$218.46. If the council does not wish to accept this offer, I
would seek authorization to initiate legal action in McLeod
County Court. Since Mr. Reid is not a resident of McLeod
County use of Conciliation Court is prohibited and County
Court, having state -wide jurisdiction, must be utilized.
Again, you should be aware that in this situation, as in
others brought before the Council, pursuit of this matter
through the court system will undoubtedly result in court
costs that exceed the $218 being sought. Please review this
matter so that I may obtain the Council's decision at the
first council meeting in May.
Sincerely yours,
CITY OF HUTCHINSON
Jame rSchaefer
Hutchinson City Attorney
JHS:dlp
Enclosures
0
11
11
WESTERN NATIONAL
Mutual Insurance Company
• 5350 WEST 78TH STREET
P.O. BOX 1463 - MINNEAPOUS, MINNESOTA - 55440
March 20, 1986
City of Hutchinson
37 Washington Ave. West
Hutchinson, MN 55350
RE: Our File No: A 80246
Insured: L & K Reid
Policy No: 108132
D/L 6 -17 -85
FILE E COP Y
EDINA INTERCHANGE CENTER
612 035.5350
Our obligation as an Insurer is not to pay all losses, but only those
our insured is legally obligated to pay because of his negligence.
Our determination of negligence is based on all facts and information
available to us.
• We have been fair and impartial in deciding this loss and have concluded
our insured is not responsible for your damage.
Bonnie Marsh
Claims Department
PC
•
Q- G,
(612) 587 -5151
CITY OF HUTCHINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
April 2, 1986
Bonnie Marsh
Claims Department
Western National Mutual Insurance Company
3530 West 78th Street
P.O. Box 1463
Minneapolis, MN 55440
FILE COPY
RE: Your file No. A80246; insured Allen R. Reid; Policy No.
108132
Dear Ms. Marsh:
Your letter of March 20, 1986 in which you indicate
that you have concluded that your insured Randall Scott Reid
was not responsible for damage to a Hutchinson Fire Department
truck as a result of a collision which occurred on the 16th
day of June, 1985 has been referred to my office.
In reviewing the •Traffic Accident •Report prepared by
the Hutchinson Police Department it would appear 'that a
Hutchinson Fire Department ladder truck being driven by John
Roy Madson was heading westbound on Roberts Road in the city
of Hutchinson. Roberts Road is a two lane thoroughfare with
one lane for eastbound traffic and another lane for westbound
traffic. The fire truck attempted to make a right turn into
the parking lot of the St. Anatasia Catholic Church.
Mr. Madson indicates that he had engaged his turn signals in a
proper and timely manner. While engaged in the right -hand
turn the city -owned vehicle was struck in the right front area
by a vehicle driven by your insured Randall Scott Reid. The
Traffic Accident Report indicates that Mr. Reid was attempting
to pass the fire truck on the right. The report also
indicates that Mr. Reid stated that he did not see the signals
on the fire truck.
Assuming that Mr. Madson's contention that he was
properly signalling is correct there appears to be no evidence
of any negligence that could be attributable to the driver of
•
•
•
q -G
s
Bonnie Marsh
April 2, 1986
Page Two
the city -owned vehicle. If the proper signals were in fact
given, Mr. Reid apparently either failed to see the signals or
ignored them. Either instance would be evidence of negligence
on Mr. Reid's part. This negligence was further compounded
when Mr. Reid attempted to pass the fire truck on the right in
a one lane street.
This is not a large claim, totalling only $436.92. No
would request that you reconsider your position in this
matter. If I have not heard from you by April 301 19861 I
will assume that you continue to maintain your current
position and will take other action to collect the damages
suffered by the City of Hutchinson.
Sincerely yours,
CITY OF HUTCHINSON
. Bye
James H. Schaefer
Hutchinson City Attorney
JHS:dlp
cc: Ken Merrill
r 1
1 �t
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(612) 587 -5151
HtrrcH' CITY OF HUTCHINSON
. 37 WASHINGTON AVENUE WEST
NUTCH/NSON, MINN. 55350
May 7, 1986
MEMORANDUM
TO: MAYOR AND CITY COUNCIL
RE: EMPLOV,E STATUS OF CAL RICE, ASSISTANT TO ENGEilM
Earlier this year, Cal Rice's employment status was changed fran
hourly to salaried, based on the increased level of his administrative
daties.
As construction season commences, this change has limited the
flexibility of work hours which Cal had in previous seasons; i.e.,
• previously he had up to 12 months to use earned time off that
resulted from the long work weeks during construction.
This year it will prove extremely difficult to handle the office
work generated by the field crew if Cal is required to use earned
time off within 30 days, as is now required of salaried employees.
It is requested that an exception to the policy be made in this
situation so that the longer necessary work hours in the department
will be efficiently handled between now and October 1. After that
date, this summLex's construction should be completed and the time
off can be granted without impairing the schedule.
0
(612) 587 -5151
JWJHUTCHINSON, ITY OF HUTCHINSON
WASHINGTON AVENUE WEST
MINN. 55350
M E M O R A N D U M
DATE: May 7, 1986
TO: Mayor & City Council
------------ -- --- ------- - - - - --
FROM: Homer Pittman, Building Official
- ----- ---- -------- ---- -- - -- - --
SUBJECT: Enforcement Of Sign Ordinance
------------------ ------ - - -- --
The Building Department lately has been experiencing a problem with en-
forcement of the City's sign ordinance, in particular the portable tempor-
ary signs on wheels and the temporary.
• When we try to enforce the ordinance with the people, we tell them the
ordinance requirements and follow -up with a letter. Then these people
call the Council members, and we are told to go easy with these people.
We are caught in the middle, and it is frustrating and almost impossible
to do our job.
My question to the Council is, are we supposed to enforce the sign ordi-
nance on everybody or on certain people, or not at all?
If we are not going to enforce this particular part of the sign ordinance,
I would like to request that it be taken out of the sign ordinance.
/ms
0
a_ K
•
•
D.O.COMEN (1914-1967)
RONALD J.MCGRAW
May 12, 1986
RAW . p . A.
escw
P. G. BOX 9B
CITIZENS BANK BUILDING
HUTCHINSON. MINNESOTA 55350
TO: City Council
Meeting for Tuesday, May 13, 1986
TELEPHONE
612 -S67 -3900
a
MAY
ZD
n BY
FROM: K. McGraw, Hutchinson Library / Member Building Committee
It is important that the Handicap Access to the new addition to our
Library be as close as possible to the main entrance. It is not apparent
at this point that it is. Are the openings at the north and south ends of
the sidewalk to be considered the handicap access to the library? - a half a
block away from the building? It may be nice on a nice summer day but we
still have snow in the winter and rain in the spring in Minnesota, don't we?
Please inform the Library Board when this mistake will be corrected.
Thank you in advance for your prompt attention to this matter.
Sincerely,
i
Kathleen McGraw
32S Washington Avenue W.
Hutchinson, Mn. 55350
(587 -3298)
/ — ,�
0
•
•
hutchinson
rm community
hospital
1095 Highway 15 South. Hutchinson, Minnesota 55350 • Telephone 61215872168 'An Equal Opportunity Employer'
May 1, 1986
Ms. Mavis Geier
Administrator,
Burns Manor Nursing Home
North High Drive
Hutchinson, MN 55350
RE: Computer Service
Dear Ms. Geier:
In response to your request I wish to inform you that Hutchinson
Community Hospital can provide the nursing home with computer
services.
Our new hospital information system, which will be fully operational
this summer or early fall, can provide you with the following services
without any modifications:
A) A complete payroll reporting system, similar, but much
expanded from our present system;
B) General ledger accounting and financial reporting system,
not presently being provided.
At this time, the software being installed has everything but
the capability to do your nursing home case -mix analysis and
reporting as required by the State of Minnesota. However, our
system is quite large, flexible and certainly can be customized
and modified to provide this service. At this time I'm not sure
of the cost to do this.
I realize this is an important part of your data processing needs.
Unfortunately, not many nursing home software packages are available
in the marketplace today, let alone one that can handle a specific
case -mix reporting system required only for Minnesota.
Page 2
Ms. Mavis Geier
May 1, 1986
Since we presently do not have this customized software for case -mix
available on our system, an alternative might be:
A) Purchase an IBM PC XT /AT which would interface to our system
(we have the capability) for payroll and general ledger
accounting.
B) Purchase customized software for case -mix only to run on the
IBM PC XT /AT, which could then be interfaced into general
ledger accounting.
C) Equipment would be at the nursing home and operated by your
employees.
I want you to know that our system is large enough to handle any of
your needs, but would have to be modified to provide case -mix management.
I present the above suggestion only as an alternative to what we can
offer, without significant change.
I am not prepared at this time to give you any cost information on
specific customization or modification to our software, but would
be more than willing to pursue this with you.
•
Thank you for your request. I know the importance of data processing •
in today's health care environment. If I can be of further assistance,
please do not hesitate to call.
Sincerely,
HUTCHINSON COMMUNITY HOSPITAL
Qavr�1
Francis P. Seivert
Administrative Assistant
FPS: sIk
cc to Mr. Phil Graves
Mr. Bill Rosenow
11
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COMPUTER CENTER
April 10, 1986
Burns Manor Nursing Home
ATTN: Linda
" North High Drive
Hutchinson, MN 55350
Dear Linda:
Thank you for the opportunity to demonstrate the Great Plains Accounting soft-
ware to you and your staff last week.
The following are the price
quotations
that you requested:
OPTION I
OPTION II
IBM AT
Epson Equity III
,•
30 Meg. Hard Drive $
5,995.00
40 Meg. Hard Drive
$ 5,090.00
Monochrome Monitor/
Monochrome Monitor/
Adapter Board
525.00 '
Adapter Board
278.00
Epson 286 Printer
749.00
Epson 286 Printer
749.00
Printer Cable
55.00-
Printer Cable
55.00
Dos 3.1 Operating System
85.00 ✓
Dos Operating System
NIC
Great Plains Software:
Great Plains Software:
Payroll
695.00
Payroll
695.00
Accounts Receivable
695.00
695.00
$
8,799.00
$ 7,562.00
ADDITIONAL OPTIONS:
Power Back -up $ 1,495.00
Tape Back -up $ 1,495.00
Training & Installation $ 320.00
8 Hrs. @ $ 40.00 per hr.
1 - Box Diskettes $ 48.00
1 - Box Paper $ 35.00
If you have any questions concerning this price quotations, please feel free to
call me at our Toll Free number 1- 800 - 247 -0125.
• Sincerely,
Merlin Dressel
Marco Computer Center
1510 St Germain, Box 279, St Cloud, MN 56302
255 -0415 1 -800- 247 -0125)
"Lei I /LULU&/ LoJ - _ --
Third Avenue Northwest
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Minnc7om 55330
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RENTAL AGREEMENT
•
This AGREEMENT, made this day of 19_,
between
MELYX CORPORATION, party of the first part, and
located at
party of the second part entitles party of the second part to the
use of hardware as listed herewith:
IBM PC /AT 1.2 Meg DSQD, 512K, 30 Meg
5295.00
Amber Amdek Monitor 310A
230.00
Monochrome Display & Printer Adapter
250.00
Epson LQ -1000 Printer with 7K Buffer
995.00
r
Tractor Feed & Printer Cable
75.00
Dos 3.1
85.00
Work Station Basic Operating System
650.00
.4
Password Asynchronous 1200 Baud Modem
449.00
HARDWARE
8029.00
LESS: Super Saver Discount
- 1870.00
NET HARDWARE COST
6159.00
THREE DAYS OF INSTALLATION HELP AND TRAINING
AT OUR MINNEAPOLIS OFFICE
450.00
{.
PLUS THE USE OF SOFTWARE PROGRAMS AS FOLLOWS:
REPORT GENERATOR
640.00
PAYROLL
2195.00
ACCOUNTS RECEIVABLE, PLUS CENSUS, &
TRUST FUND ACCTG
3975.00
f'
ACCOUNTS PAYABLE
1285.00
r
SOFTWARE
ga �- gOq�. 00
TOTAL TRAINING, SOFTWARE
AND HARDWARE -----------------------
14704.00
The party of the second part to have all rights thereto,
henceforth,
as of the effective date of this agreement with the
following
exceptions:
(1) It is understood that the software is proprietary
and all rights
thereto remain the property of MELYX CORPORATION.
The copying,
divulgence, transferring, or attempted reselling
of MELYX SOFTWARE
•
Page 2
•
without prior written authorization will constitute a breach of
contract and recovery of damages will be instituted to the full
extent of the law.
(2) MELYX CORPORATION assumes no obligation, implied or otherwise for
damages due to erroneous output information
TERMS
Forty eight (48) equal monthly payments of Yllo Plus tax of
to be made as follows:
The payment for the last six (6) months of this contract
period to be made as of the original date of this agreement.
The effective date of implementation of this contract, (hereinafter
referred to as the contract period), shall be the first of the month
following receipt of the hardware by the party of the second part.
The remaining balance of the forty two (42) payments of
plus tax of shall be made monthly as of the first ooh month
beginning wit first month of the contract period.
TERMINATION •
After the first twelve (12) equal monthly payments have been made
under the terms of this agreement, termination can be consummated by
the party of the second part by 30 days written notice of intent
thereof, whereupon MELYX CORPORATION will advise as to the disposition
of the computer hardware involved. Such notice to be given on or
before the last day of the month prior to the month with which it is
desired that such rental agreement shall terminate.
Any payments made up and through the termination date automatically
remain with MELYX CORPORATION. If no rent is due and unpaid as of the
termination date, and if the computer hardware is returned in good
working order, then the party of the second part has no further
obligation to MELYX CORPORTION.
In the event that any rent shall be due and unpaid, then in any such
case the said party of the first part or his legal representatives
may, immediately or any time thereafter, take possession of the said
property wherever it may be found, without being taken or deemed
guilty of any manner of trespass, and without rendering themselves
liable to refund any sums received as rent as aforesaid, and thereupon
this agreement shall terminate, but without prejudice to any remedies
which the party of the first part might otherwise use for arrears of
rent or any breach of the covenants by the said party of the second •
part herein contained.
Page 3
0
At the coficlusion of the four year rental period described above, the
party of the second part may at its option (a) Renew this rental
agreement on an annual basis at $50.00 per month or (b) Purchase the
hardware on this agreement for a one time payment of $500.00.
IN WITNESS WHEREOF, said parties have hereunto set their hands
this day of 19_
IN PRESENCE OF:
•
by:
name tit e
MELYX CORPORATION
by:
name tit e
If non - taxable, enter tax exempt k
•
a
1
s
MEL
OhpOhafiOn
5622 WEST LAKE
STREET • ST. LOUIS PARK, MN 55416
4 -25 -8
612/920.9290
•
Linda Jensen
Burns Manor Nursing Home STk141
Hutchinson, MN 55350
Dear Linda:
Per our conversation of this morning, I am enclosing
a sample of our 1986 Maintenance Agreement for Software
Maintenance.
Software Maintenance is gratis for the first 90 days,
and after that it is computed at the rate of 1% per
t month of the value of the software which you have at
your location.
In December, Maintenance Agreements are sent out to
our users with the yearly charge computed and payable
in either one or two payments covering either a six
or twelve month period.
r
Alternately, you could opt for an hourly charge for
software maintenance, but over a period of time your
software would gradually get out of date, and you
would eventually want to have massive changes made
in order to correct that situation.
I guess that you could say that Melyx Corporation is going
to continually change their programs to improve them
and I am sure that you will want to have these changes.
You would certainly be disappointed if we were to tell you
that we were not going to change our programs to keep
up with the times. In fact, if we said that, you should
not consider doing business with us. Software updates,
enhancements, and service simply is a part of a good
computer installation.
I hope I have not bored you with the details. Please
let me hear from you if you have any questions regarding
the above.
• -':
Best rds,
Ru sell C. J nston
•
1edth Cage Specialists
I-Mu 1
MELYA
O'' KQf`OH 562 WEST LAKE STREET • ST. LOUIS PARK, MN 55416
C 1 612920.8290
1986 MAINTENANCE AGREEMENT
EFFECTIVE DATE:
The maintenance is a form of 'insurance policy' which protects your investment
in your software. You will want to use the Support Program because it provides:
(a) Telephone support
(b) Priority service for software modifications and new
releases
(c) Continuity of service from Melyx Corporation
(d) The most economical method of keeping your Melyx Software
up -to -date via Software Updates
(e) All the Melyx designed enhancements during the maintenance
period
The Support Agreement is available for your facility for the time period
stated above at a price of --------------------------------------- - - - - --
If you prefer, we can invoice you now and in at --- - - - - --
• (Total fee /2 plus .5%)
PLEASE INDICATE YOUR PREFERENCE
n
LJ
[ ] 1 Payment
[ ] 2 Payments
Note: Effective as of January 1, 1986, all support calls will be invoiced at
$50.00 per hour with a minimum charge of $10.00 per call unless arrangements
for a Support Agreement have been made prior to that date.
As soon as Melyx Corporation receives this application, you will be assigned
a support identity number for your facility.
Please return one copy of the above to Melyx Corporation with your preference
noted.
Thank you. Signed:
N For:
cJ4,Ah C., Speciakfs
/_Z7 r
F (612) 587 -5151
CITY OF HUTCHINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
TO: Mayor 6 City Council
FROM: Bruce Ericson, Parks & Recreation Director
DATE: May 8, 1986
SUBJECT: Youth Tennis Rate Change
At the regular May meeting of the Parks and Recreation
Board, it was recommended by the board that youth, reserving
tennis courts pay a reduced fee of $4 /hour /court. The
$8 /hour /court would still be in effect if an adult is play-
ing tennis with an adult.
klm
•
•
(612} 587 -5151
ff /TY Of HU TCH/NSON
WASHINGTON AVENUE WEST
HINSON, MINN. 55350
TO: Mayor & City Council
FROM: Bruce Ericson, Parks & Recreation Director
DATE: May 7, 1986
SUBJECT: Request for funds for excavation of fill at Recreation Center
In the specifications for the construction of the
Recreation Center, all fill was to remain on site. This
fill is currently the large pile located north of the gym.
I am requesting authorization to have this dirt moved
on site in order to establish the proper grade for the
north side of the park. This needs to be done at this
time so we can establish grass.
This can be done at an hourly rate with an estimated
cost of $2,00 to $3,000.
• klm
LJ
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(612) 587.5151
!/UTCH' CITY OF HUTCHINSON
• 37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
TO: Mayor & City Council
FROM: Bruce Ericson, Parks & Recreation Director
DATE: May 8, 1986
SUBJECT: Late Night Use at Roberts Park
Hutchinson Technology Inc has again requested to play
softball for the 1986 season on Tuesday nights from
12:00 Midnight to 1:30 a.m.
The Parks & Recreation Board reveiwed this and discussed
the complaints received from the prior year. The board
recommended that Hutchinson Technology be allowed to con-
tinue with their league with the stipulation that the
lights will be turned out no later than 1:30 a.m. They
• will be using only the two north fields.
klm
(612) 5874151
CITY OF HUTCHINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
TO: Mayor & City Council
FROM: Bruce Ericson, Parks & Recreation Director
DATE: May 8, 1986
SUBJECT: Preliminary Grant Applications
U
At the May 7th meeting of the Parks and Recreation Board,
the board recommended that we pursue the attached preliminary
grant applications for Tartan Park and Linden Park.
klm
P R E L I N I N A A Y APPLICATION
LAWCON/LCHR OUTDOOR RECREATION ACQUISITION AND DEVELOPMENT GRANTS
Fiscal Year 1987
LOCK UNIT OF GOVERMENT RESPONSIBLE FOR PROJECT:
PRIMARY CONTACT PERSON FOR THE PROJECT:
Address 900 Harrington Avenue, Hutchinson MN Zip 55350
County McLeod Phone (work) 612 -587 -2975 /(home) 612 -587 -2192
NAME OF PARK: Linden Park
PROJECT COST BREAKDOWN: (list acres to be acquired and/or facilities to be developed - see pages 3 and 4)
e.g. 1
Quantity
1
1
PROJECT LOCATION:
Type of Facility
Picnic shelter - 32' diameter with concrete slab
ParkinG Lot (North)
Walkway @ 150
sg.
fee
(.ac
/W )
Walkway @ 150
sq.
feet
(East
End)
Top Surfacing
of
Parking
Lot
(South)
Cost
$10,000
18,000
1,000
80,000
TOTAL= $102,300
Indicate the location of the proposed project as follows:
Township ♦ 116 Range I 30 Section / 1 (numbers must be exact for processing of application)
SITE PLAN:
Attach a plan for the proposed project which shows:
• Boundary of park property (red)
• Zoning of surrounding land and present uses
• Layout of existing facilities (red)
• Layout of grant proposed facilities (yellow)
• Layout of future proposed facilities (blue)
• A north arrow, scale, and legend
11
F-M
0
L I N D E N P A R K
The Linden Park project represents the completion of
a major recreation area within the city of Hutchinson.
The park has been developed as an active recreation
area and features facilities such as the Civic Arena,
Recreation Center, ballfields and outdoor pool.
The city has completed construction of the Recreation
Center and pool which was funded in the following ways:
-a referendum passed by the citizens August
7, 1984.
-sale of an old armory building which housed
Park and Recreation offices and a gymansium.
- Federal Revenue sharing.
-Funds raised through donations by the Hutch-
40 inson Jaycees for the addition of the wading
pool.
The items in this proposal provides for the completion
of necessary access roads, parking and walkways.
0
�.- LL--- - - - --� t - -••'— - --J j L ---- - - - --�
. e o
outdoor Hockey j • •0000 ®• •
.• e e • e • •w �.�
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7-.-- - - - - )
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PARKING
•
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Walkway
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Parking
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�•
PRELIMINARY APPLICATION
LAYCON/LCNR OUTDOOR RECREATION ACQUISITION AND OEVELOPNENT GRANTS
Fiscal Year 1987
OCAL UNIT OF GOVERNMENT RESPONSIBLE FOR PROJECT:
PRIMARY CONTACT PERSON FOR THE PROJECT:
Now Bruce Ericson Title Director. Parks b Recreation Department
Address 900 Harrington Avenue, Hutchinson, MN Zip 55350
County McLeod Phone (work) 612 -587 -2975 /(home) 612 -587 -2192
PROJECT COST BREAKDOWN: (list acres to be acquired and/or facilities to be developed - aee pages 3 and 4)
Quantity
Type of Facility
Cost
e.g.. 1
Picnic shelter - 32' diameter with concrete slab
$10,000
1
Fishing Dock
$21,000
3
Bridges 1 @ 80' (12,500) 2 @ 40' (5,150 ea.)
22,800
4
Picnic Shelters at 6000 each
24,000
. 1
Fish Cleaning Station
8,000
1
Parking Area (North)
15,000
1
Parking Area (South)
8,000
Landscaping (trees, shrubs, grass seed 500)
4,500
Dredging (earthwork) 20.000 cu. vards
29.000
TOTAL= $132,300
PROXCi LOCATION:
Indicate the location of the proposed project as follows:
Township i Ii6 N Range i 29W Section i 6 (numbers must be exact for processing of application)
SITE PLANS
Attach a plan for the proposed project which shows:
• Boundary of park property (red)
• Zoning of surrounding land and present uses
• Layout of existing facilities (red)
• Layout of grant proposed facilities (yellow)
• Layout of future proposed facilities (blue)
LA north arrow, scale, and legend
11
T A R T A N P A R K
The Tartan Park Development Project represents a plan
which has been formulated through the efforts of service
organizations, the Department of Natural Resources and
the City of Hutchinson. The athletic portion has been
funded through monies and volunteer labor from the Hutch-
inson Baseball Association (letter enclosed). These
funds were donated by several other service organizations
to the Hutchinson Baseball Association. To the North an
Urban fishing area has been created and will enhance the
development of the Luce Line Trail.
Through several meetings with the Department of Natural
Resources regarding the Luce Line Trail and the current
low- clearance dam located on Highway 15 in Hutchinson,
the plan that follows has been recommended for the fol-
lowing reasons.
-the City of Hutchinson will provide maintenance
of the trail as it passes through Tartan Park.
- fishing at the dam location, which is extremely
dangerous and this project would provide an
urban fishing area which would be safe and readily
accessible.
-the Tartan Park location provides excellent
habitat which would serve as an ideal location
for the Elementary Schools nature study area.
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11
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ishing Dock
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$ 41,644.49
CENTRAL GARAGE FUND
REGULAR COUNCIL MEETING
May
13, 1986
Social Security
WATER $ SEWER FUND
*Public Employess Retirement
pera
•
Old Dominion Brush
supplies
336.00
Big Bear
*D.O.E.R.
Social Security
378.67
supplies
*Public Employees Retirement
PERA
225.09
6.73
*U.S. Postmaster
postage for bills
153.81
Crow River Glass Co.
Richard Ebert
water seminar
186.96
sunplies
Henry Heinecke
safety glasses
39.55
Donohue $ Associates
enginering services
1144.99
Chemical Engineering
subscription
27.50
Dynamic Systems Inc.
pressure switch
121.34
Flexible Pipe Tool Co.
parts
245.25
C.Jergens Estate
double payment refund
20.90
McAndrews
parts
61.25
Big Bear
supplies
90.48
Commissioner of Revenue
April sales tax
782.99
Coast to Coast
supplies
35.48
Curtin Scientific Inc.
chemicals
6.65
Electro Watchman
quarterly charges
198.00
Fadden Pump Co.
repairs
144.23
Family Rexall Drug
film $ pictures
7.98
Fitzloff Hardware
supplies
10.68
Farm & Home
supplies
38.50
Feed Rite Controls
supplies
740.49
G F, K Services
uniform rental
82.80
Hutch Coop
gasoline
425.54
Wholesale
supplies
8.90
•Hutch
Hutch Utilities
money collected certifications
756.96
Hutch Utilities
electricity
11,499.65
Hutch Plbg $ Htg.
repairs
4.30
Juul Contracting
repairs
1307.55
Johnson Super Valu
bleach $ distilled water
22.53
Junker Sanitation
refuse charges
21,640.75
L & P Supply
lawn boy mower
329.00
League of Mn. Cities
conf. reg. fees
120.00
Mn. Valley Test. Lab
testing
73.00
McLeod Co. Landfill
April dumping charges
11.00
Plaza Hardware
supplies
44.60
Quades
supplies
26.85
Schramm Implement
parts
2.25
Water Products
meter & parts
628.02
$ 41,644.49
CENTRAL GARAGE FUND
*D.O.E.R.
Social Security
$ 51.74
*Public Employess Retirement
pera
30.75
Old Dominion Brush
supplies
336.00
Big Bear
supplies
30.89
Brandon Tire
supplies
80.41
• Coast to Coast
supplies
6.73
Farm & Home
supplies
1.50
Crow River Glass Co.
supplies
34.98
GTC Auto Parts
sunplies
1165.17
Hutch idholesale Supply supplies $282.81
Plowmans Inc. repairs 69.90
•Schmeling Oil Co. grease tubes 154.17
Schramm Implement supplies 119.02
Town 4 Country Tire repairs 43.00
Wigen Chev. CO. parts 1.40
W. D. Cooling Clinic repairs 24.00
$ 2,435.47
GENERAL FUND
*Dept. of Natural Resources
boat registration fees
$ 24.00
*U.S. Postmaster
express mail
10.75
*Dept. of Natural Resources
boat registration fees
119.00
*Dept. of Natural Resources
boat registration fees
58.00
*Orchestra Hall Group Sales
balance due on tickets
14.00
*Dept, of Natural REsources
boat registration fees
129.00
*Robert Ringstrom
advance to attend seminar
100.00
*D.O.E.R.
social security
3456.49
*Public Employees REtirement
pera
4077.19
*M.S.A.B.C.
armory rental
140.00
*Dept. of Natural Resources
boat registration fees
50.00
*Dept. of Natural REsources
boat registration fees
59.00
*William Wegner
advance for seminar
300.00
*Dept. of Natural Resources
boat registration fees
48.00
•*Dept.
of Natural Resources
*Dept. of Natural Resources
snowmobile reg. fees
fees
22.00
4.00
snowmobile reg.
American Planning Assn.
dues
85.00
Arco Minn. Ins.
punch
34.97
Baltimore Paints
supplies
2710.65
Beacon Products Co.
moisture absorbent
727.50
Butterworth Legal
moving traffic violation
24.00
Commissioner of Transportation
adv. sign permit
40.40
Commissioner of Transportation
airport
1162.67
Crowley Co. Inc.
fence material
4895.00
Color Press
printed material
188.33
Ed Davis Bus. Machines
2 punches
56.95
Fire Engineering
subscription
16.95
Govt. Finance Officers Assn.
membership
70.00
Human Services Film Dist.
film strip
9.25
Hutch Computer Ins.
4 printer stands
111.80
Kables
microwave $ refrigerator
267.92
Little Crow Bowling Lanes
handicap bowling
31.00
Luxor Lighting Industries
lites
128.49
Mn.Coalition of OUtstateCities
assessment for 1986
1896.00
Midcontinent Theatre
125 tickets
125.00
Midcontinent Theatre
office rental
350.00
Maddens
room reservations
119.90
National Auto Dealers Car Guide
2 used car guides
64.00
Public Documents
update state engery code
15.00
Floor Covering
30 rug samples
12.00
•Reid
St: Paul Pioneer Press
subscription
81.12
Universal Title Ins. Co.
assessment search refund
2.00
Willmar A TI
CIM refresher training
60.00
lcood _?':nc E, Decorating Center
blind cleaner
9.95
Viking Safety Products
safety glasses
$ 42.49
{VUSA
tape on Mn. Marvel
29.95
H. Schiebel
supplies
19.05
.William
Tracy Meisner
conference expenses
20.00
Gale Boelter
pick up trees
5.00
Jan Hahn
gardening class - sr.citizens
12.00
CharlottePutz
refund
8.00
Michael Schmidt
refund on variance request
45.00
Richard Olson
basketball referee
30.00
Bruce Summar
rec.center nite attendant
60.30
Earl Haarsted
pick up trees
25.77
Mary Haugen
Mn. Aquatic Conf.
76.54
Mark Schnobrick
gas
5.00
Jessie Bye
piano lessons
60.00
Maxine Yost
rental refund
15.00
Joe Sic
cleaning $ supplies
330.50
John McRaith
repairs advanced
111.23
Allen Office Products
office supplies
66.46
American Welding Supplies
welding gas
10.95
American Risk Services
ins. consulting services
375.00
Big Bear
supplies
25.34
Bennett Office Supplies
legal folders
43.95
John Bernhagen
May compensation $ stamps
1772.50
Central Garage
door repair
12.52
Carr Flowers
plant $ dish garden
20.00
Central Mn. Com. Inc.
parts
30.00
River Vet Clinic
boarding dogs etc.
143.50
•Crow
Coast to Coast
supplies
177.67
Coca Cola Bottling
supplies
292.50
Chamber of Commerce
office rental
125.00
Copy Equipment Inc.
supplies
28.83
Co. Treasurer
dl fees for county
133.00
Charles Bailley $ Co.
audit fees
11,500.00
Co.Treasurer
real estate taxes
1690.30
Culligan
tank rental F, salt
102.60
Crow River Press
summer activity brochure
733.90
Co. Recorder
recording use permits
30.00
Co. Recorder
recording Resolution
10.00
ERicksons
supplies
49.00
Family RExall Drug
office supplies
175.25
Farm & Home
april invoices
173.47
George Field
registration fees
15.00
Floor Care Supply
cleaning supplies
189.20
Great Plains
supplies
62.26
GTC Auto Parts
parts
19.50
Fitzloff Hardware
supplies
83.03
G $ K Services
uniform rental
337.33
Home Bakery
election supplies
20.40
Holmstein Ice Rinks
3 rolls white paper
192.85
Hager Jewelry
UPS charges
5.93
Hutch Coop
gasoline
2208.87
Henrys Candy Co.
supplies
433.31
•Home
Bakery
supplies
57.79
Hutch Fire Dept.
training budget exp.
1118.00
Hutch Leader
publication costs
1180.65
Hutch Utilities
chiesel
17.75
$ 67,305.71
•
-4-
•
Hutch Utilities
electricity
10,172.05
Hutch Wholesale
supplies
6.84
Hutch Fire $ Safety
repairs $ supplies
42.90
Ink Spots
printing forms
155.50
Insurance Planners
insurance
146.00
Jahnkes Red Owl
supplies
33.90
Jerabek Machine
supplies
3.52
Joes Sport Shop
supplies trophies
121.00
Krasen Plbg $ Htg.
repairs & parts
137.16
L $ P Supply
supplies & parts
222.42
Lamberts Hi Way Service
car washings
4.00
League of Mn. Cities
conference registration fees
1200.00
Marco Bus. Products
repairs
61.88
Mankato Bus. Products
repairs
35.00
McLeod Coop Power Assn.
electricity
547.86
Meeker Washed San
street sand
505.11
Kenneth Merrill
expenses
56.91
McGarvey Coffee
coffee
142.40
Northwestern Bell
leased phone line
325.59
Northland Beverages
supplies
84.21
No. American Cable Systems
basic cable $ circus
21.53
Dean O'Borsky
expenses
22.00
Pitney Bowes
repairs $ maintenance agreement
214.00
Plaza Hardware
supplies
454.21
Priebe
expenses
219.82
•Marlow
Gary Plotz
expenses
200.64
Quades
repairs
3226.31
Rutz Plbg $ Htg.
repairs
150.00
Rockmount Research
chemicals
92.05
Schmeling Oil Co.
oil
13.75
Sears
shop vac
93.59
Shopko
supplies
48.88
Simonson Lbr.
supplies
86.41
Hazel Sitz
transit conference
68.90
Sorenson Farm Supply
supplies
22.70
James Schaefer
', May compensation
1001.00
Tri Co.Water Cond.
3 months rental $ salt
40.30
United Bldg. Center
supplies
29.48
Xerox
contract payment
270.92
Wm. Mueller & Sons
road materials
439.48
NaNCY Buss
CJRS school
3.83
James Haasl
police school
114.94
$ 67,305.71
•
_5_
BOND FUNDS
•Bands of 1984
*1st Trust of St. Paul bond principal & interest 141,462.50
Library Debt Service
*1st Trust of St. Paul
bond principal $ interest
57,850.00
1984 Parking Impr. Bonds
*1st Trust of St. Paul
bond principal $ interest
71,018.75
Library Construction Bonds
Baker 4 Taylor
books (Westlund donation)
25.86
Pool 4 Recreation Const. Fund
Culligan Water Condition
aqua sensor
3,366.50
Electro Watchman
alarm system
232.98
Bonds of 1977
Norwest Bank of Minneapolis
principal,interest,fees
87,693.60
Bonds of 1979
Norwest Bank of Minneapolis
interest $ fee
14,085.75
•
MUNICIFAL- b1QU9R- 9TQRE -F9ND
Ed Phillips $ Sons
mix
38.25
Ed Phillips $ Sons
mix
36.00
Griggs Cooper & Co.
mix
79.56
Griggs Cooper $ Co.
mix
39.48
Twin City Wine Co.
wine $ liquor
2057.40
Griggs Cooper $ Co.
wine $ liquor
165.38
Griggs Cooper F, Co.
wine $ liquor
1082.74
Old Peoria & Spirits Co.
wine & liquor
1997.86
Ed Phillips $ Sons
wine & liquor
1863.79
Locher Bros. Inc.
beer
7001.20
Friendly Beverages Inc.
beer
1665.30
Lenneman Beverages Inc.
beer
15,684.85
Triple G
beer
9744.40
Bernick Pepsi Cola Bottling
mix
45.00
Northland Beverages Inca
mix
296.10
Andy Lundholm
mix
28.45
Tombstone Pizza
supplies
24.00
Hutch Utilities
electricity
501.07
City of Hutchinson
water /sewer /refuse
61.57
American Linen Supply
towels
17.60
Hutchinson Telephone Co.
phone
69.40
Travelers Directory Service
advertising
182.00
City of Hutchinson
payroll
4171.74
.City
of Hutchinson
payroll
4234.66
DOER
social security
279.99
Public Employees Retirement
pera
166.43
internal Revenue Service
wine $ special tax
648.73
r' -° trucking
freight charges
497.44
33, ?10.39
/"(612) 587 -5151
7110rwITY OF HUTCHINSON
37 WASHINGTON AVENUE WEST 23466789
HUTCHINSON, MINN. 55350
a AIAY190 N
W
N
May 51 1986 m
s' A £Z221Z026`�`V
Paul Ackland and the FOR YOUR INFORMATION
Hutchinson City Council
RE: Sale of Municipal Property
Dear Councilmembers:
I have been asked to comment concerning the uses to
which the funds received by the municipality from the sale of
certain hospital property to Green Castle may be put.
Minnesota Statutes places no limitation on use of the
• proceeds from the municipally owned property where that
property was not designated by gift or contract for a specific
purpose. Since there are no limitations in the Deed of
conveyance by which the City received title to the property,
the State of Minnesota places no restrictions on the use of
the proceeds by the municipality.
Section 12.04 of the Hutchinson City Charter deals
with the sale of real property. That section states in part,
"The proceeds of any sale of such property shall be used as
far as possible to retire any outstanding indebtedness
incurred by the City in the purchase, construction, or
improvement of this or other property used for the same public
purpose. If there is no such outstanding indebtedness, the
Council may by resolution designate some other public use for
the proceeds."
The property in question was part of a larger parcel
purchased by the City of Hutchinson through the use of general
fund monies. Bonds were subsequently issued and the proceeds
of the bond sale were utilized to construct the current
facility and to repay the municipality for the expenditure
made in the purchase of the real estate. There is apparently
an outstanding balance on this bond issue remaining to be
paid.
In discussing this matter with Hospital officials and
• the City Accountant, it would appear that due to the age of
Councilmembers
May 5, 1986
Page Two
the bond the interest accrued on the unpaid balance is several
percentage points less than the interest hospital funds are
currently earning through investments. If the proceeds of the
sale of the hospital property are utilized to prepay the bond
in part, the municipality and hospital will suffer a net loss
of funds in an amount equal to the potential interest earnings
of the funds less the interest savings of the prepayment.
Section 12.04 uses the words "as far as possible ".
This language seems to give the Council some discretion in
determining the manner in which funds should be utilized.
Section 12.04 also fails to specify that the funds should be
used to retire the particular indebtedness incurred in the
purchase of the property. By utilizing the words "any
outstanding indebtedness" the charter does not limit the
repayment of the indebtedness to simply indebtedness accrued
in the purchase but seems to broaden the restriction to
indebtedness utilized in the construction or improvement of
the property at any time. Hospital officials have indicated
that the sale proceeds will be utilized to differ the expenses
of construction and improvements to the current hospital
facilities. In my opinion use of the funds for this purpose
will comply with the spirit of Section 12.04.
Sincerely yours,
CITY OF HUTCHINSON ` 1
James H. Schaefer
Hutchinson City Attorney
JHS:dlp
0
•
11
0
0
(612) 587 -5151
F CITY OF HUTCHINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON, MINN. 55350
May 6, 1986
Mayor Paul Ackland and the
Hutchinson City Council
RE: McKimm Milk Transit, Inc.
Dear Councilmembers:
/345678 C
MAY 1988
v&o
FOR YOUR INFORMATION
Enclosed please find a copy of a letter
received from R. J. McGraw on the 6th day of May,
would anticipate receiving a final draft of any
between McKimm Milk Transit, Inc. and 3M Company
When I have received a copy of the contract, I will
to determine compliance with State Statute
Ordinances.
Sincerely yours,
CITY OF HUTCHINSON
By/ • W+
James Schaefer
Hutchinson City Attorney
JHS:dlp
Enclosure
which I
1986. I
contract
shortly.
review it
and City
D.O. COMER (1914 -1997)
PCHALD J.MCOHAW
May 5, 1986
Mr. James Schaefer
Attorney at Law
105 2nd Avenue S.W.
P. O. Box 363
Hutchinson, MN 55350
Dear Mr. Schaefer:
R.J. McGRAW. P.A.
ATTORNEY AT LAW
•. D. 9Dx N
CITIREMS "M9 DUILDIMO
HUTCHINSON, MINNESOTA 55360
Re: McKim Milk Transit, Inca -
3M - Refuse Contract
TCLVHOM[
■1i- 997-390D
This will confirm in writing the discussion we had on May 1 regarding
the above - captioned matter and also serves as a response to your letter of
April 23, 1986.
Larry McKimm of McKimm Milk Transit, Inc. and 3M are negotiating on a
refuse contract and expect to have the final draft completed within ten days
to two weeks. As soon as we have the completed contract or agreement, we
will provide your office with a copy. We believe that the agreement in its
final form will comply with State Statute and City Ordinances regarding
refuse contracts, including any contract that you now have with Mr. Junker.
As a result of our effort to complete a contract, it would be my
understanding that you will take this matter off the agenda for the May 13,
1986, Hutchinson City Council meeting.
If any of my assumptions are incorrect, please contact me immediately
upon receipt of this letter.
Yours very truly,
R. J. McGraw
RJM:Md
cc: Larry McKimm
CJ
0
•
•
•
W (612) 587 -5151
ITY OF HUTCHINSON
WASHINGTON AVENUE WEST
CHINSON, MINN. 55350
Mary C. Ryan
Enforcement Section
Division of Water Quality
Minnesota Pollution Control Agency
1935 West County Road B2
Roseville, MN 55113 -2785
RE: City of Hutchinson
Dear Mary:
May 2nd, 1986
,I)RIONAVOV
Enclosed is a copy of the response from Hercules Incorporated, relative
to their Notice of Violation, which was submitted to the City this date.
We will furnish you a copy of our review response on this matter, as soon
as it is completed.
MVP /pv
enclosure
cc: Mayor and City Council v
Gary Plotz, City Adm.
Ralph Neumann, Dir. of Maint.
Randy DeVries, Wastewater Supt.
Gary Warren, Donohue
Sincerely,
CITY OF HUTCHINSON
'W4.Jo�•�L. <�"
Marlow V. Priebe
Director of Engineering
K e G O - bl-AI86
HE�t+a Hercules Incorporated
�1CVLES Pure Culture Products Div.
35 Adams Street North
P. O. Box 100 •
Hutchinson, MN 55350
(812) 587 -2481
May 1, 1986
Marlow Priebe
City Engineer
City of Hutchinson
37 Washington Avenue West
Hutchinson, MN 55350
RE: Plant Discharge of Contaminated Yeast
Dear Mr. Priebe:
The need for discharge of the product to the sanitary sewer on
February 5 and 6, 1986, was the result of the edible food yeast
being contaminated with bacteria. The last time the problem occurred
was in December 1983, and was handled the same as in February. A
plan to be used in the future if the contamination problem happens
again would be to chlorinate the spoiled product to inhibit the further
bacterial growth, then using a controlled flow method to introduce
the effluent to the sanitary sewer. This controlled flow can be
sustained for the period of time required to empty the tank contents •
and prevent any violation of the company's waste treatment permit.
Alternate methods are being discussed but we have no assurance at
this time of the possible success; therefore, the controlled flow
method can be used successfully until the other methods are tested.
Our desire is to not have any contamination episodes, but when it
happens the product must be disposed of in the most acceptable manner.
You can be assured of our total cooperation when these problems happen.
Sincerely,
J. L. Rainwater
Plant Manager
lw
cc: City of Hutchinson file
•
0
`. Dep rent f Energy FOR YOUR INFORMATION
and Economic Develo�tnent
Offke of the Commissioner 900 American Center
(612) 2% -6424 150 East Kellogg Boulevard
/ St. Paul, Minnesota 55101
April 22, 1986 /
J
Mr. Gary Plots J? "�
City Administrator
37 Washington Avenue West
Hutchinson, MN 55350
Dear Mr. Plots:
I am pleased to inform you that your application for a Minnesota Small
Cities Economic Development program grant has been approved in the amount of
$152,500. As outlined in the approved application, the City of Hutchinson will
make a loan of $150,000 to assist New Dimension Plating in the acquisition of
Ty's Metal Finishing and the expansion of its operation. In addition, the City
is authorized to utilize up to $2,500 for grants administration costs related to
this project.
This grant is made from the federal Community Development Block Grant
program. A grant agreement is being prepared by the Community Development
Division staff. They will also provide you with additional information about
your grant award and will do all they can to help you achieve your community
development goals. Also, please note that your approved application becomes part
of the grant agreement. For additional information, contact Robert Benner,
Deputy Commissioner, at (612) 297 -3184.
Finally, let me extend my congratulations to you and your staff for devel-
oping an approach which will effectively address your community development
needs.
With best regards.
A.arcel...,ton L I
Commissioner
/jmk
III/101-1
AN EQUAL OPPORTUNITY EMPLOYER
-410.®
MINUTES FOR YOUR �hfOR
HUTCHINSON CHARTER
Wednesday, April 23N
1986 MgT�Oh
1. CALL TO ORDER
Chairman Chuck Carlson called the meeting to order at 7:35 p.m. The
following members were present: Walt Clay, Tom Dolder, Phil Graves,
Jeff Haag, Harold Juul, Dale McLain, Dick Popp, Jean Peterson, Kay
Peterson, Delores Saar, June Wick and Chairman Carlson. Members absent:
None. Also present: Alderman Mike Carts, Alderman Marlin Torgerson,
Police Chief Dean O'Borsky, Dr. Robert Prochnow (Civil Service
Commission), City Attorney James Schaefer.
2. MINUTES
Mr. Clay made a motion to accept the minutes dated Wednesday, April 2,
1986, as corrected. (Grammatical corrections in Section 2.07 and 2.10.)
Seconded by Jean Peterson, the motion carried unanimously.
3. PRESENTATION - CITY CHARTER REVIEW
Alderman Mike Carls made the following comments regarding the revision
of the City Charter:
Section 2.01. Form of Government: Mr. Carls stated that this is his
biggest area of concern, and that he is happy to see that the Commission
• is looking at changing commission form to mayor /council plan.
Section 2.02. Departments: Mr. Carls suggested that if Section 2.02 is
retained, the term superintendent should be defined as to clarify the
role for the aldermen.
Section 2.04. Elective Officers: Mr. Carls asked if the election is
changed to even- numbered years as has been discussed, what the procedure
for those already in office will be.
Section 2.05: Appointive Officers: Mr. Carls stated he was happy to
see term city clerk being officially changed to city administrator. He
noted that it had been changed by resolution during D. J. Black's term.
Section 2.06 Mayor and vice President: Mr. Carls stated that he feels
"neglect, dereliction of duty" is wide open for interpretation, leaving
room for it to become a policitcal issue.
Section 2.08. Salaries: Mr. Carls asked if "by ordinance after a
public hearing" means a special hearing just for that item or as part of
a public hearing on the budget in general. He stated that he can see
it getting lost in the shuffle.
Section 3.04 Ordinances, Resolutions and Motions: Mr. Carls asked if
this section means that for an ordinance to be voted upon, all five
members of the council must be there, and if there must be at least 3
votes (in favor) for it (the ordinance) to pass. (City Attorney
Schaefer stated that he has always taken the position that if there
are enough members of the Council present to meet (quorum /3), unless
otherwise stated, they may proceed with any business brought before
them.) Mr. Carls stated that he thinks this should be more clearly
. designated.
Section 3.07. Procedure on Resolutions: Mr. Carls stated that the
Council doesn't operate this way. There is usually a motion to waive
the reading; but he's not sure if it's necessarily unanimous. He doesn't
see any problem with the way they are proceeding now. Attorney Schaefer
responded that unless an alderman specifically states, 'Let it be read', •
it's assumed that the vote to waive reading is unanimous.
Section 7.10. Disbursements: Mr. Carls commented that the statement 'No
such check shall be issued until the claim to which it relates has been
supported by an itemized bill, payroll or time -sheet approved and signed
by the responsible city officer who vouches for its correctness and
reasonableness' is a good provision, but it may be inconsistent, as
there are many checks issued (utilities payroll, for example) with the
City Administrator's signature that he has not seen any support for.
Section 11:02 Appointments and Terms. Mr. Carls stated that he doesn't
remember ever considering compensation for members of the utilities
commission. (This section states that the council will determine
compensation annually.)
Section 12.03. Official Bonds: Mr. Carls asked if the Mayor is bonded.
(NOTE: The Mayor is not officially bonded at this time.)
Section 12.04. Sale of Real Property: Mr. Carls stated that there needs
to be some clarification about when the ordinance authorizing the sale
must be dated. At present the City Attorney has said that it can be
dated afterwards as ratification of the sale.
Alderman Torgerson had no additional comments.
4. PRESENTATION - POLICE DEPARTMENT /CIVIL SERVICE COMMISSION
Police Chief Dean O'Borsky was present to explain how he understands the
role of the Civil Service Commission and the City Council with regard to
the Police Department.
Chief O'Borsky explained that all police officers in the state of
Minnesota are licensed. The police department is unique in that it
deals with life- threatening situations. What makes the police
department different (from other City departments) is that there is a
state statute that places 3 nonelected civilians in charge of hiring,
firing and discipline. Chief O'Borsky stated that he sees no problem
with the mayor being Superintendent of Police, as long as it is
understood that state statute governs the conduct of police officers,
including himself. (It was later pointed out that 'police department'
includes everyone from dispatchers to the chief of police.)
The majority of police chiefs are not civil service employees. When
they are not, the position can become a political one, where the chief
of police serves at the whims of the mayor. Chief O'Borsky stated that
the state of Minnesota has worked very hard to establish and maintain
the civil service statute in order to keep the position of police chief
from becoming a political one. This allows the police chief to use his
own discretion as how to act in the best interest of the government of
the city, based on his professional training and experience.
Alderman Carls stated that he agrees with depoliticizing the police
department. He asked to what extent the police department is
accountable to the police civil service commission, and how do they •
monitor the officers.
Chief O'Borsky responded that there is a handbook of rules and
• regulations which details all of the procedures regarding the hiring,
firing and discipline of police department employees. If there is a
complaint from anyone, which includes any citizen, other officer, the
police chief, council, etc., there is a detailed grievance procedure to
be followed, as outlined in the handbook. The Civil Service Commission
then becomes a true civilian review board, which makes a decision based on
the documented details of the complaint.
Chief O'Borksy stated that he feels the police department is accountable
to the City Council for such items as salary, vacation, budgeted items
and other policy related items.
Alderman Carls asked how Chief O'Borsky interprets the line of authority
from the City Administrator. Chief O'Borsky responded that in regard to
discipline, he feels the City Administrator has no authority over his
position. He feels the City Administrator serves as the liason between
himself and the City Council on policy related matters. He stated that
the City Administrator does a performance review of his perfomance in
regard to goals, accomplishments, etc. If the administrator or council
has a complaint about the conduct of the police chief, they have the right
to take that matter to the Civil Service Commission. Chief O'Borsky stated
that giving the City Administrator authority over the police department is
making him a nonprofessional police person and takes away the discretion
of the trained police chief.
• It was further pointed out that the Civil Service Commission is
accountable to the City Council, as they are appointed by the City
Council. There was discussion of appointments and terms of Civil
Service Commissioners. Chief O'Borsky stated that once a commissioner
is appointed, he can only be dismissed for reason or cause. It was
later pointed out that that may refer to the time during the three year
appointment. There was discussion as to if they must be reappointed.
Jean Peterson asked if the Civil Service Commission meets regularly.
Chief O'Borsky responded that they are meeting more often now. In
recent years they have been meeting formally once a year and as needed.
They are now meeting quarterly.
Dr. Robert Prochnow, member of the Civil Service Commission, was present
to state that they have not had reason to meet in recent years as they
did several years ago as basically, they administer tests and do hiring
and firing and there have been no firings and there has been only one
hiring in 7 years.
During discussion, Mr. Clay asked if the City Administrator could be an
exofficio member of the Police Civil Service Commission. City Attorney
Schaefer responded that he didn't think there would be any problem with
that.
Kay Peterson expressed her concern over the lines of responsibility and
• the lack of checks and balances (in the operation of the police
department.)
In other matters, June Wick expressed concern about the enforcement of
the Charter once is it revised. Attorney Schaefer responded that it is
not a criminal offense to violate the charter. Depending upon the
situation and the violation, there may be cause for removal from office is
position.
Chairman Carlson asked if the number of terms a commissioner serves can be
put in charter (in reference to civil service commission.) Attorney
Schaefer responded that that may be interpreted as conflicting with state
statute.
After discussion about the authority and duties of the City
Administrator, it was the consensus of the commission that the City
Adminstrator and City Council submit to the Charter Commission a list of
minimum duties and responsibilities of the the City Administrator that
they would like to see specified in the City Charter.
5. MEETING DATES
After discussion, it was decided that the next meeting will be on
Wednesday, May 7, 1986, at 7:30 p.m. at the Fire Station. Looking
ahead, May 21, June 4 and June 18 have been discussed as future meeting
dates.
6. ADJOURNMENT
There being no further business, Mr. Graves made a motion to adjourn the
meeting. Seconded by Mr. Clay, the motion carried unanimously and the
meeting was adjourned at 9:37 p.m. .
0
2
THE HUTCHINSON SAFETY COUNCIL FOR YOUR INFORMATION
The Hutchinson Safety Council met March 31, 1986 at 12e00 noon at the
Fire Hall.
There were 15 members and 3 guests present.
The meeting was called to order by President Gals Boelter.
A program of the disposal of hazzardous waste from the 3 -M Plant in
Hutchinson was given by Bob Bowen.
Due to the length of the program, the February aLnuetes and treasurer's
report were not read.
Janel Reiter appeared in behalf of the Hutchinson Mall to tell of KIDS
IDENTIFACATION WEEK, April 7 - 13• She asked to have members of the Safety
Council there, Gale Boelter will represent us. A letter to the Hutchinson
Leader Iditor was requested endorsing safety.
Sherri Syverson of the First National Bank appeared to request our help
in crossing streets, stressing the corners by the Post Office.
Motion was made for adjurnment by John Reynolds, seconded by Larry Ladd.
She next meeting will be April 28th. at 12:00 noon at the Fire Hall.
Submitted byi Gale Boelter, President
• Eileen ?orry, Secretary/Treasurer
TREASURER'S REPORT Balance on Hand as of 3/1/86 $179.64
Total Deposits .00
Disbursements .00
Balance On Hand as of 3/28/86 $179.64
Savings Balance as of 3/28/86 $151.87
�J
..
v i '=i.M. _v .i�, h- Ri, "£�Y � f^'n f4''y � l,;'�S' S ),. �rYS.'fMY]�i �6 , -:.' AVM �i
jr fIL'T t-.1 JF^ HUa 0r.bid:Jd.sX
„? V'✓ SHrNGTON AVENUE WEST
HUTCHINSON, MINN. 55350
FOR YOUR INFORMATION
M E M O R A N D U M
DATE: May 13, 1986
TO: Alderman Pat Mikulec — —ky
-- ---- ------ ------ ---- - - - - --
FROM: — Kenneth—B. Merrill,—Finance—Director
- -- - --- ------- --- --- - - -- --
SUBJECT: Outstanding Hospital Debt
----------- ------- ------ - - - - --
Per your request, the outstanding principal as of today for the 1968
• hospital bonds is $355,000.
/ms
cc: Mayor & City Council
0
•
•
IMIXIA
EMPLOYMENT ADVISORY TO MAYOR AND CITY COUNCIL
Y , a.i01•,
i
ADDRESS
JOB TITLE as listed - attached
SUPERVISED BY Bruce Ericson, Parks/Rec. Director
EMPLOYMENT STATUS
PAY RATE as listed
FOR YOUR INFORMATION
13, 1986
X NEW EMPLOYEE X OTHER: some retur"r tamps
FULL TIME xPART TIME OR SEASONAL
Simmer programs
COMMENTS Sumer staff as Per budget
THE ABOVE PERSONNEL ACTION CONFORMS TO ADOPTED PERSONNEL
POLICY AND TO THE COUNCIL APPROVED SELECTION PROCESS,
l
DE RTMEN HEAD
�j a
PERSINNEL ORDINATOR
• :a4
CITY OF HUTCHINSON
37 WASHINGTON AVENUE WEST
HUTCHINSON M/NN. 55350
Hazel Sitz
Bruce Ericson, Parks & Recreation Director
May 9, 1986
Summer Staff
The following list includes the majority of the
summer staff needed for the Parka S Recreation Department.
Baseball
Scott Bauer - Supervisor
$4.75 /hour
Andrew Rostberg
3.75 /hour
Russell Jonas
3.75 /hour
T -Ball
Joanna Mahling - Supervisor
6.00 /hour'
Lori Galles (also softball)
4.00 /hour
Tim McGraw (also playground)
4.00 /hour
Margaret Mueller (also playground)
4.00 /hour
Maintenance
Michael Larson
3.50 /hour
Matthew Larson
3.50 /hour
John Arlt
3.50 /hour
William Field
3.50 /hour
Brian Knudsen
3.50 /hour
- Anthony Parsons
3.50 /hour
- Swimming
Jerry Carlson - Head Lifeguard
6.00 /hour
- Jennifer Kern - Asst.
5.00 /hour
Karen Dettman - Asst.
5.00 /hour
Paul Moehring
4.00 /hour
Patrick Beatty
4.00 /hour
Mardi Miller
4.00 /hour
- ; Mark Wetterling
4.25 /hour
j Denise Baumann
4.35 /hour
Jason Moehring
4.45 /hour
- Patty Hartman
4.25 /hour
' Donna Bordson
4.25 /hour
Tamie Moehring
4.75 /hour
_ Lifeguard /Pool Attendant
Michelle Carrigan
3.50 /hour
- _ Scott Bauman
3.50 /hour
Tiny Tots /Handicapped
Kiberly Brehmer - Supervisor $4.50 /hour
Karen Haggenmiller 3.75 /hour
Sue Wetterling 3.75 /hour
Holly Jones 3.75 /hour
Parks & Recreation Office
Kris Hoikka 4.25 /hour
0
•
•
0
•
1
EMPLOYMENT ADVISORY TO MAYOR AND CITY COUNCIL
Martin Dreyer
FOR YOUR INFORMATION
DATE May 9, 1986
ADDRESS
735 Lynn Road
JOB TITLE Cemetery Maintenance (mowinq)
SUPERVISED BY Ralph Netiunann - Floyd Groehler
EMPLOYMENT STATUS
PAY RATE T2
COMMENTS
NEW EMPLOYEE X OTHER: Retiree
FULL TIME _X PART TIME OR SEASONAL
THE ABOVE PERSONNEL ACTION CONFORMS TO ADOPTED PERSONNEL
POLICY AND TO THE COUNCIL APPROVED SELECTION PROCESS,
\D`E-PARoTME EAD
PERSONNEL ORDINATOR
ey . �.�
CITY 1- O.
I*
E
PIONEERLAND LIBRARY sYBTBM BOARD zxacvm camMYOUR INFORMATION
April 14, 1986
Presents Curtis Johnson, Appleton
Wayne Hebrink, Renville
James Phalan, Graceville
Howard Turck, Litchfield
Jeanette Buchanan, Willmar
Burton Sundberg, Director
Robert Bosse, Associate Director
Katherine Matson, Associate Director
Absent: LeRoy Sanders, Willmar*
Linda Ulrich, Renville*
Lilah Buhr, Stewart*
Representing: Appleton
" Kandiyohi County
" Big Stone County
" Meeker County
" Willmar
Representing: Willmar
" Renville
" McLeod County
The meeting was called to order by Director Sundberg in absence of the Chairman and
the Vice Chairman. Buchanan /Johnson moved and seconded that Wayne Hebrink serve as
Chairman for this meeting. Carried unanimously. C. Johnson/Buchanan moved and second-
ed approval of the March 10 secretary's minutes. Carried.
C. Johnson /Phalen moved and seconded acceptance of Treasurer's report. Carried.
The Director's Report was given. The March statistical report showed a marked in-
crease over March of 1985. Also presented were the monthly registration report
and quarterly bookmobile circulation report. It was noted that as of June 1986
most nursing homes will be the responsibility of the local library instead of the
van and the bookmobile. The March and April LDS newsletters and newspaper clippings
were passed around. National Library Week wds April 7 -12.
Turck /Johnson moved and seconded approval of payment of bills. Carried.
Mr. Boese reported on the Automation Program. (see attached requests for Informa-
tion for six models.) It was noted that Requests for Information were not for
bids and not binding. Phalen /Johnson moved and seconded that the letters for infor-
mation be sent to vendors. Carried. A summary of the returns should be available
at the July meeting.
Mr. Boese also reported that letters of inquiry regarding grants for the automation
project were sent to nine foundations. He will keep the Board informed of develop-
ments. It was noted that there was no change from last month on governing units
with regard to automation funds except for a letter from the Willmar City Clerk -
Treasurer, a copy of which is attached. This matter will be put on the May agenda.
Long Range Plan -- K. Matson stated this is due into the state office by the middle
of June, 1986: This is to be placed on the May agenda and draft copies of this
will be sent to all Board members prior to the meeting.
Communications:
1. state Office of Library Development and Services -- the Advisory Council to LDS
has requested that a plan be sent to them indicating how we would implement services
in counties not being served now if they were to comply with the Ecual Access Bill.
Staff will work on this and report later. Counties affecting Pioneerland will be
Lac Qui Parle, Renville, and Yellow Medicine.
2. Letter from Glencoe City Clerk regarding insurance on library contents was read.
Mr. Sundberg had felt all libraries' contents insurance was low. Therefore limits
were increased by 258 in all eight of the larger libraries. Premium increase will
be approximately $300.
3. A letter from the Litchfield Library staff requesting an appearance before the
Pioneerland Board was read. They will be given a time slot at the May meeting.
4. Current legislation -- Library aid in FY1987 may be cut approximately 103. Mr.
Lewis from LDS has indicated this amount could possibly be offset by LSCA funds.
S. The Minnesota Library Association annual conference will be in St. Paul on
April 16 -18.
Unfinished Businesse
1. Status of Meeker County Task Force -- Attached is a letter dated March 18 from
the Mayor of Dassel. Mr. Sundberg stated that letters from Grove City and Cosmos
mayors also concur with Dassel. These cities apparently are not going to pay the
$6,000 shortage from the amount requested from Meeker County for the 1986 opera-
tional budget. Mr. Sundberg
proposed changes in the Agreement which would make Pioneerland operate
under a quasi- consolidated/federated system. Motion made and seconded by Turck/
Buchanan that Mr. Sundberg could present this information to the full Board at the
May meeting. Carried. The May agendas will be sent out early so members can review
all of the above.
2. The proposed Board member /Library (staff) Relations Policy was tabled until May.
3. Adjustments for possible state /federal aid cuts for 1987 -- Mr. Sundberg will
obtain more information from LDS and this adjustment to the budget will be re-
viewed again after the first six months of our budget year have passed.
4. Procedures for developing and approving the 1987 budget -- any change in this
would require a bylaws or Agreement change. C. Johnson/Buchanan moved and seconded
that the attached proposed Article X be placed on the May agenda. Carried. Voting
on this would then be at the June meeting.
The Finance Committee will meet April 28.
The meeting adjourned at 10:25 p.m.
Jeanette Buchanan
Secretary
r
roo
April 1986 PIONEERLAND LIBRARY SYSTEM
Treasurer's
Report Curtis Johnson,
Treasurer
AUTOMATION
INCOME
BUDGM INCOME
BUDGET INCOME
MTD
YTD
MTD
YTD
BUDGET
•ance .00
.00
$76,024.64
$90,281.48
(Adjustment by Auditor)
+ 113.86
+ 113.86
$76,138.50
$90,395.34
Receipts:
Basic State /Federal Aid
55,776.00
205,000.00
Big Stone County
658.00
5,574.25
11,148.50
22,297.00
*Chippewa County
2,123.00
18,318.75
36,637.50
*73,275.00
Kandiyohi County
24,551.25
49,102.50
98,205.00
McLeod County
1,201.50
15,740.00
31,480.00
62,960.00
Meeker County
15,693.25
31,386.50
62,773.00
Swift County
16,305.50
16,305.50
32,611.00
Appleton 138.00
376.00
2,195.00
4,390.00
8,780.00
Benson
548.00
4,390.00
8,780.00
17,560.00
Glencoe
659.00
5,758.00
11,516.00
23,032.00
Graceville
117.00
978.00
1,956.00
3,912.00
Hutchinson 693.50
1,387.00
12,571.50
25,143.00
50,286.00
Kerkhoven 57.00
114.00
940.75
1,881.50
3,763.00
Litchfield -
— 886.00
9,618.50
19,237.00
38,474.00
Ortonville 191.00
382.00
3,227.25
6,454.50
12,909.00
Willmar
20,087.50
40,175.00
80,350.00
Bird Island
206.00
1,665.00
3,330.00
6,660.00
*Dawson
285.00
2,306.75
4,613.50
* 9,227.00
Hector
188.00
1,519.25
3,038.50
6,077.00
*Madison
332.00
2,684.25
5,368.50
*10,737.00
Renville 112.00
224.00
1,811.75
3,623.50
7,247.00
Cash Receipts
3,67.77
15,750.26
48,000.00
Gifts
84.00
Interest
(Not avail.)
2,285.20
9,000.00
Reimbursements (local govt)
*Chippewa County
8,007.00
16,014.00
*32,028.00
*Dawson
862.25
1,724.50
* 5,394.00
*Madison
1,348.50
2,697.00
* 3,449.00
Other Reimbursements
529.09
3,164.46
6,994.00
Other
Total Receipts 1,191.50
9,586.50
180,341.11
413,062.92
941,000.00
Other funds:
Glencoe Fund
4,022.00
Automation Grant (LSCA)
11,998.00
Swift County Est. Grant (LSCA)
10,175.00
Implementation Grant (1985 - State)
1,840.00
Raymond Project (Bremer Grant 6
Mielke Estate) 52,619.13
57,619.13
57,619.13
KCWL
1,536.00
4r AL RECEIPTS & BALANCE. $1,191.50
$309,098.74
$561,077.39
$1,028,190.13
Automation Totals
$9,586.50
$19,505.00
TOTAL RECEIPTS, BALANCE 6 AUTOMATION MTD i YTD
$310,290.24
$570,663.89
$1,047,695.13
Page 1 (OVER)
April 1986
E%PENDITURESt
PIONEERLAND LIBRARY SYSTEM TREASURER'S REPORT (Continued)
CATALOGING
OCLC AND OTHER CHARGES
_.[OM_VE%DOis- CHARGES
_ - ACCT GROUP... - 133.
VEHICLES - -
OP-ERAjI ON-kND_- MAIN:, LNA'i.LE. 2,063t
INSURANCE -
AMORTIZATION
6O>1MUNICATION
TELEPHONE AND LIVE CHARGES
_TERHIN.-AL_MA1N1EMNCE
POSTAGE AND SHIPPING
NEW EQUIPMENT
A/V EQUIPMENT
_-- _i4A.INI.ENENLES
45.68%
YTO- -- -i_OF
EXP :_CURR
_
- -- -------- - ----- - - -- - - -- -- --- -----
- -MTO_ _
ExPENDITUKFS
_..__._._
ExPE�1CITT ES
TO EST
DUDGIP
--- -- ACCT
--- GRn UP...._----
---- - -. 00
11271.02
84.73%
1,500.00
-
118RAwY
.00%
4,00AL0
89.55%
500.00
PERSONAL SERVICES
890•,.35.__
2.562.68
_ 44.38; _
5.775.00
S_AN-0 WAG ?S
50.940.55___
2021836.23
32.75%
._619.294.00
_ _SALARZ -E
HEALTH INSURANCE
1.770.32
7.6 30.81
32.75%
239300.00
HEALTH INSURANCE - CEDUCTI °.LE
525.27
669.27
15.94%
49200.00
_REtLPEMENLLNSURA,'10E
__-- 4t641.41_�18
284.40
32.65%__
569000.00_
ACCT GROUP...
57,877.55
2299420.71
32.64%
702,794.00
MATERIALS
i
900.00
30.00%
39000.00
-_- BOOKS_. -.. ADULT ______._____.
15.00
.75.00
37.50%
200.00
BOOKS - CHILDREN
1,398.75
69284.48
37.504
169760.00
GENERAL REFEREML2
Ir3?4.00
39115.00
62.30%
5,003.00
PERIObSCALS-_____ -.___ __..- _ __-
__- 339.18____
9_52.23
4.5? %__2.190[0.00
4 022 00
PAMPHLETS
100.00
350.00
116.67%
300.00
SWIFT CDULTY MATERIALS
524.38
524.3E
8.74%
69000.07
__._BMR -C. L6M8
-00
.00
99.231
3.900..00 _
VIDEO 3ISCS C TAPES
491.90
1,0`0.31
15.45%
6r 800.00
AUDIO DISCS AND TAPES
26.30
26.30
26.3C%
100.00
SLL0_ES_4NO._EIL.MS7?IP5_ -__. -
.00
43 .4.5
172.58;
250.00_
MICROFORMS -
.�-
.00
.00%
.00
BINDING ` - -_
_ -__•c0
_. 255.44
26.89%
950.00
CATALOGING
OCLC AND OTHER CHARGES
_.[OM_VE%DOis- CHARGES
_ - ACCT GROUP... - 133.
VEHICLES - -
OP-ERAjI ON-kND_- MAIN:, LNA'i.LE. 2,063t
INSURANCE -
AMORTIZATION
6O>1MUNICATION
TELEPHONE AND LIVE CHARGES
_TERHIN.-AL_MA1N1EMNCE
POSTAGE AND SHIPPING
NEW EQUIPMENT
A/V EQUIPMENT
_-- _i4A.INI.ENENLES
`:. 1 t084. 471
.00-
732.04
ACCT GROUP... 1,816.5
ACCT GROUP...
29996.90
29639.94
5.636.84
352.710 - - y3
- = 84.70
152.00.
19654.90
rr
33.30%
900%
33.00%
30.64%
19.24%
60.29t-
39.08%
37.44%
99000.00
89000.00
189400.00
700.00
159100.00
OTHER
45.68%
18,000.00
_89222.10
5 ,703s5�
53.45%
_10,671.00
-- '13,925.68
48.57%
28,571.00
6r39js8Z
37.63%
1790_0.00
11271.02
84.73%
1,500.00
' .00
.00%
4,00AL0
`:. 1 t084. 471
.00-
732.04
ACCT GROUP... 1,816.5
ACCT GROUP...
29996.90
29639.94
5.636.84
352.710 - - y3
- = 84.70
152.00.
19654.90
rr
33.30%
900%
33.00%
30.64%
19.24%
60.29t-
39.08%
37.44%
99000.00
89000.00
189400.00
700.00
159100.00
OTHER
-
- 1OSTOOLALSUP2LIES--AND_UUtP -Mr NN'L
48.08 _
435.93 _-
43.59%
1,000._00_
_
SUPPLIES AND PRINTING
2,247.60
6,448.03
27.44%
2395CO.00
PROMOTIONAL AND PROGRAMMING
432.85
447.75
89.55%
500.00
__ - --MI LEA GL__kN4IMEETINCIj =3TA EE_ - --
890•,.35.__
2.562.68
_ 44.38; _
5.775.00
MILEAGE AND MEETINGS - TRUSTEES
336.62
19275.31
39.85%
3.200.00
PROF. MEMBERSHIPS (TRUSTEES)
.00
510.00
100.00%
510.00
-. TN.SSIRAN.CE
44.31
7.307.31
_114.18%
6.400.00
Ijc -1 NO LEGA1, N�TICFS
86.76
86.76
96.40%
90.00
AUDITING
•DO
.00
.00%
1,200.00
_ - -
225.00 -
900.00
30.00%
39000.00
_BOOKKEEPING
fONXIMILNG FOUCAT ION -
15.00
.75.00
37.50%
200.00
ACCT GROUP...
49386.77
209048.77
44.18%
45,375.00
SPECIA
- -.
-
fI FAf LF FRiENDS-,_I BA
.00
- 174.67'
4.34%
4 022 00
KCML
.- .00
'- .00
.00%
1.536.00
SALARY STUDY
.00
10170.00
63.59%
19840.00
AUTJ ATSOPLFI X"1.00ALJ
-00
- As11D�90 41s582
19.50510.0_
AUTOMATION GRANT (STATE)
•00
- .00
.00%
119998.00
THE RAYMOND PROJECT
-00 -
2.000.00
40.00%
5,00,00
AfrT GROUP...
.00
11.454.67
26.09%
43 :9 0
ORG. TOTAL...
ENDING CASH BALANCE
77#621
$232,663.14
Page 2
338x000.75
$232,663.14
33.97% 99590
•
BOSCHWTTZ
'Z Cnif eb 'Stales 'Senaf e
WASHINGTON. O.C. 20510
April 18, 1986
Marilyn Swanson
37 Washington Avenue W.
Hutchinson, Minnesota 55350
Dear Marilyn:
:0%'A' -TEE ASSIGNMENTS
AGRICULTURE
BUDGET
FOREIGN RELATIONS
SMALL BUSINESS
VETERANS AFFAIRS
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By- .............
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FOR YOUR INFORMATION
Thank you for contacting me about funding for the General
Revenue Sharing (GRS) program.
As you know, the news about General Revenue Sharing has not
been what local governments want to hear. For Fiscal Year 1986
(FY86), Minnesota was originally scheduled to receive $89.6
million in GRS funds. However, with completion of the
appropriations process here in Congress and implementation of the
Gramm- Rudman Amendment, GRS payments to Minnesota in FY86 will be
reduced to $78.4 million. Further, the President's budget
proposal for FY87 would eliminate the GRS payment for the fourth
quarter of FY86 (which is not payable until FY87) -- that will
reduce Minnesota's GRS receipts for FY86 to roughly $64 million
-- if Congress passes President Reagan's proposal.
Last year in the Senate Budget Committee, I supported a plan
to spread the $4.6 billion authorized for FY86 over two years
(FY86 and FY87). However, Congress instead adopted a budget
which originally called for full funding for FY86 and then
allowed the program to end.
In its FY87 budget resolution, the Budget committee
recommends that the GRS program be allowed to expire as
scheduled. However, the committee also proposes to provide an
additional $1.8 billion for two quarterly payments in FY87 -- if
a bill to reauthorize the program can be enacted and if
legislation is passed to raise the needed funds. It must be
remembered that the Budget Committee only recommends overall
spending and revenue totals for the entire federal budget. The
Finance Committee has jurisdiction over the GRS program and must
develop legislation to reauthorize it. If the program is
reauthorized, that committee is also responsible for raising the
needed revenue.
My feeling is that we absolutely must reduce the size of the
deficit ... and that means slowing the growth of federal
• spending. Still, we have to be very careful about how we do
that; otherwise, we will end up changing only those programs
which are easy targets and that would not be a fair solution to
the problem.
April 18, 1986
Page 2
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Recognizing this, four years ago I suggested the "Fair Play
Budget ", under which all government programs would be treated
exactly the same. In my budget plan, all programs (I made no
exceptions) would have been allowed to grow slowly (4 or 5
percent) while income (which normally grows at 9.5 percent)
caught up. Whether it was defense, education, Social Security,
GRS or Civil Service Retirement, all would get equal treatment.
I felt that was the way to balance the budget.
My Fair Play Budget was suggested when deficits were $60
billion, not $200 billion. Unfortunately, it usually takes a
crisis around here to get anything accomplished. Since we didn't
have a crisis, the Fair Play approach -- sensible as it was,
wasn't adopted, though we did make some progress in slowing
spending. However, whereas several years ago we could have let
the budget grow at 4 to 5 percent a year, now our problems are
more serious, which is why I modified my plan to a freeze and
then subsequently supported the budget passed by the Congress.
Again, all this is not what you want to hear, but I believe
it is the direction we must take. I will continue to support the
funding of Community Development Block Grants and other federal
grant and support programs to those communities in greatest need
so that at least some of the slack from removing GRS will be •
taken up. In addition, I will support resumption of General
Revenue Sharing when we have revenue Sctshare.
Thanks for getting in touch wfth me.
Sin4erely,
Rudy Bosc witz
United States Senator
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,Z cnif eb .$Motes Zenaf e
WASHINGTON. D.C. 20510
April 24, 1986
Ms. Marilyn Swanson
City of Hutchinson
37 Washington Avenue West
Hutchinson, Minnesota 55350
Dear Marilyn:
FOR YOUR INFORMATION
Thank you for taking the time to share with me your views
on the General Revenue Sharing Program (GRS).
As you know, I have long been an active supporter of this
important program. Last year, I led the fight for full funding
of GRS when the appropriations bill came to the floor of the
Senate. I share your concern that the elimination of this vital
program will create financial hardships for local governments.
Under the restraints of the Gramm- Rudman - Hollings
budget- cutting law, Congress can no longer avoid its growing
responsibility to cut the federal deficit and reduce spending.
Although Congress extended GRS through fiscal year 1986, it is
very unlikely that the current GRS program will be again
reauthorized, despite our concerted efforts to save it.
Today, the Federal government can not even pay its own
bills, much less share its revenues with wealthy cities and
counties. But I strongly believe it has a continuing
responsibility to help those communities so burdened by federal
aid cuts, unfunded mandates and new responsibilities that they
are unable to provide a minimum level of basic public services
to their citizens.
To assist these communities, I have introduced a bill to
create a new program called Targeted Fiscal Assistance (TFA)
5.2037. This proposal retains the heart of GRS and applies it
to today's economic realities. Under TFA, most local
governments will continue to receive general purpose grants they
can use to meet their own funding priorities. But the program
will better target the funds to those communities that need it
most: communities that face above average service demands and do
not have the resources to meet these needs on their own.
I will be working hard to move this bill through the Senate
and to preserve federal funding to our neediest communities. I
have enclosed a factsheet and a Congressional Record statement
• explaining my proposal further. With your help, I believe we
can save the best features of the revenue sharing program.
Ms. Marilyn Swanson 10 April 24, 1986
Page 2
Again, it's good to hear from you.
incerely,
D ve Durenberger
United States Senator
DD /tjc
Enclosures
•
•
PJ
•
S. 2037
eted Fiscal
Background
ram:
Over the next few years state and local governments will
confront a tremendous challenge -- to provide basic and
essential services to their citizens during a period
characterized by limited and declining resources. As part of
the effort to reduce the budget deficit, federal aid to state
and local governments is expected to decline precipitously.
Additionally, tax reform changes are likely to affect the
ability of state and local governments to finance their services
from their own resources.. Finally, in accordance with current
law and the FY 1986 budget resolution, General Revenue Sharing
will expire at the end of PY 1986. The elimination of GRS will
mean the demise of virtually the only federal program that seeks
to lessen fiscal disparities among our local governments.
While many governments will be able to continue to provide
their citizens with important services despite federal cutbacks,
there remains a large group of communities that simply do not
have the fiscal resources to make up the difference. For these
communities, the loss of federal aid means they will be forced
to forego or cutback on important and vital services such as
meals for the elderly, police and fire protection, and health
care for the indigent.
The national government can no longer afford to share its
revenues with wealthy cities and communities, but neither can it
afford to neglect communities crippled by federal aid cuts and
increased responsibilities which are unable to meet the basic
needs of their citizens. Senator Durenberger is proposing to '
create a new general purpose fiscal assistance program for local
governments. The new program called Targeted Fiscal Assistance
(TPA) will serve as a fiscal safety net for needy communities.
This program will ensure that in our efforts to balance the
budget, we do not ignore the very real and legitimate needs of
our weaker partners in the federal system.
Outline of Proposal
TFA will provide general purpose grants to local
governments, enabling the local officials and citizens to
determine the best uses for the funds. An interstate formula
will determine each state's allocation which, in turn, will be
distributed to local governments through an intrastate formula.
By utilizing appropriate measures of need and fiscal capacity,
the program will target funds to those communities with the
greatest needs.
Authorization Level Funding will be $2.3 billion per year for
three years. While this represents a 50% reduction from GRS ,
TFA will have a greater effect in reducing the fiscal
disparities that exist amcna communities.
Interstate Formula Changes Under the interstate formula, low
income, low fiscal capacity states will receive a greater
proportion of funds than high income, high fiscal capacity .
states.
A single formula based on population, tax effort, and fiscal
capacity will determine the total allocation for all communities
in a state. The population of the state will be adjusted by
heavily weighting that portion of a state's population under
1508 of the poverty level, thereby reflecting need. Relative
tax effort is included in the formula to reward those states
that attempt to meet their own needs.
In the interstate formula, total taxable resources (TTR)
will be used as a measure of fiscal capacity. TTR, a
comprehensive measure of fiscal capacity devised by the
Department of Treasury, is the sum of all economic resources of,,,,
a state -- all income received or produced in the state. It is
more appropriate than per capita income because it includes
income received by the state's residents that was produced
elsewhere, as well as income produced in -state by out -of -state
firms and individuals.
TTR will be incorporated into a "fiscal gap" factor that
measures how much a state's fiscal capacity is below the
national average.
Intrastate Formula The intrastate formula (which distributes
the state's allocation among the localities) will target the
funds to communities with the fewest resources but greatest
needs. It will restrict and, in some cases, eliminate aid to
jurisdictions that are well above the state average in fiscal
capacity. Over 858 of the local governments that received
funding under GRS will receive grants under TFA. The formula
utilizes population, relative tax effort and per capita income
(as the measure of fiscal capacity). As in the interstate
formula, tax effort is rewarded providing an incentive for
jurisdictions to meet their needs from their own resources.
The formula cuts off grants entirely to relatively wealthy
communities with per capita income above 1258 of the state
average. At the same time, the cap on grants to poor, high tax
effort jurisdictions will be set at 2008 or twice the state's
average per capita grant. (GRS sets a cap at 1458.) Finally,
the program will not have a floor on grants so that small
"paper" governments, which provide virtually no services, will
not receive any funds.
The effect of both the interstate and intrastate formulas
will be to direct the greatest proportion of a state's
allocation to poor rural and urban communities, particularly
those that have above average tax effort relative to resources.
0
} Congressional `Record
LW
U m.d Stan
• ./A..,in PROCEEDINGS AND DEBATES OF THE 99th CONGRESS, SECOND SESSION
Ibl. 132 WASHINGTON, THURSDAY, JANUARY 30, 1986 No. 7
Senate
TARGETED FISCAL ASSISTANCE ACT has been declining since its highpoint
• Mr. DURENBERGER. Mr. Press -in 1980. In that year, Federal aid
dent, today DAN EVANS and I are intro - equaled 31.7 percent of all State and
ducing a bill to establish a new pro* local own - source revenue. By 1984, this
gram of "targeted fiscal assistance" figure had fallen to 23.7 percent and
for local governments. Representatives in 1986 it is expected to be around 20
BOB MCEWEN, JOHN CONYEaS, and percent —a decline of 38 percent since
PETER Vlscl.ossv are introduclnS a 1980. another way, defense expendl-
Over the years, our failure to use companion bill in the House. tures have increased 43 percent over
'
the Federal grant system effectively to hg years, and ave own b 2 pe nt. Meanwhile.
address disparities In State and local Federal aid to State and local govern-
fiscal capacities has been a basic fall -menu has been cut more deeply than
ing in our intergovernmental partner -any other segment of the Federal
ship. This is a responsibility whichbudget: Down 25 percent in current
central governments have long as- outlays; down 25 percent in the
sumed in every other major Federalnumber of programs; down 15 percent
system. Today, as we stand on the as a proportion of GNP; down 20 per -
verge of a fundamental restructuring cent as a proportion of the Federal
of our budgetary priorities, the need budget. And this is only the beginning•
to assure a minimum level of basic As the President has said, "you ain't
public services nationwide can no seen nothin' yet."
longer be ignored. Budget cuts are not the only chal-
• Over the next few years, State and lenge confronting State and local gov-
local governments will confront a tre- ernments in the months and years
mendous challenge: To provide basic ahead. They will continue to face
and essential services to their citizens more and more unfunded Federal
during a period marked by limited and mandates as we, to Congress, search
declining resources. Deficit reduction for shortcuts to achieve what we are
has a price, and I'm afraid that price no longer willing to pay for.
will include eliminating or drastically This practice is hardly unprecedent-
cutting many of the programs that ed. Since the 1960's, Congress has
have formed the basis of our intergov- often found It easier and cheaper to
ernmental partnership over the past rely on Federal mandates to achieve
decade.
These are programs that have en- its goals, thereby directing the policies
ed the national, State and local and allocating the resources of State
go and local governments. Although they
the Bel
governments to work as partners v seem like bargains in Washington,
ices succh h of important public sere- . these mandates impose substantial
as highways and bridges, costs. One study conducted in 1978
schools and hospitals, health care for
the poor and elderly, education and found that the total cost to local gov-
ernments of six mandates averaged
Job training for the disadvantaged, $25 per capita in seven jurisdictions -
ing—t cleaner air and water, and public afraid roughly comparable to the amount of
ing —to name just a few. I'm afraid
that many of these programs will funds received by local governments
ceive deep seductions in the next few ew under general revenue sharing.
years. In short. State and local govern -
And the fact of the matter is, these ments have had to shoulder new re-
programs have already taken it on the sporsibilities and to pay for them out
chin. Since 1981, a " Ve Facto New of their own pockets. Some can afford
Federalism" has been occurring as the it. What they need Is a smooth transt-
national Government has struggled to tion —time to adjust their spending
get a hold on the deficit by reducing and revenues to the new realities.
• domestic spending. Federal aid as a Yet some communities have no such
percentage of State and local revenue options. In many rural areas, the prop-
•
J
0
erty tax base is plummeting with fall-
ing land and market values, with the
closure and declining profits of many
farm - dependent businesses, and with
Increased rates of tax delinquencies.
In many urban areas, the problems are
equally severe. Nationwide, property
tax rates averaged 37 percent higher
in our central cities than in surround-
ing suburbs —before the cuts. Where
are they to turn? The same is true of
towns hit hard by closing mines or for-
eign competition. From Maine to Ari-
zona, the issue is the same. Some com-
munities lack the fiscal resources they
will need to offer basic public services.
Not for want of trying; it's a simple
matter of arithmetic. Given the same
level of tax effort, a low income com-
munity can only generate half the tax
revenues of a high income community.
For these communities, the loss of
Federal aid means they will be forced
to forgo or cut back on important and
vital public services such as meals for
the elderly, police and fire protection,
and health care for the indigent.
Ironically, these developments come
just when the President and Congress
have agreed to terminate general reve.
nue sharing. As one of the strongest
supporters of GRS over the years, I
have accepted that decision with great
reluctance. In its time, GRS has been
one pf our best grant-in-aid programs.
It has been virtually the only Federal
program that seeks to lessen fiscal dis.
parities among our local governments.
It has been the most efficient program
in the Federal arsenal; 99 percent of
GRS funds go directly to recipients.
Its "no- strings" grants to local govern-
ments allowed officials at the local
level, the officials closest to the
People. to determine the best use of
the funds. For many local govern-
ments, it has been the single most im-
portant intergovernmental grant.
But the time for GRS has passed.
The national Government no longer
can afford to share revenues it doesn't
have with wealthy cities and commu-
nities. Neither can it afford to neglect
communities which are so crippled by
Federal aid cuts, increased responsibil-
ities and a declining local tax base
that they can no longer meet the basic
needs of their citizens. In this era of
budget cutbacks, we have a responsi-
bility to establish our priorities with
the utmost care. But such national pri-
orities include reducing fiscal dispari-
ties so severe that they prevent citi-
zens from receiving basic public serv-
ices. That need will be addressed by
the program I am introducing here
today called targeted fiscal assistance
1TFAI.
President Reagan has assured us all
that he will never let solutions to the
deficit erode our basic safety net for
needy individuals. Programs providing
food, shelter, and health services to
our poorest citizens must be main-
tained.
Yet, a real safety net is more than
direct cash and In -kind assistance to
Individuals. It also includes vital public
services— police, fire, sanitation, public
health and child protection— provided
by local governments. And I firmly be-
lieve it is a responsibility of the Feder-
al Government to help ensure that all
citizens enjoy a minimum level of
these public services. The Targeted
Fiscal Assistance Program I am pro-
posing will ensure just that.
TFA is a well- targeted program of
general purpose grants to needy com-
munities. Even with a moderate fund-
ing level of $2.3 billion, it will reduce
the fiscal disparities between high -
income and low- income governments
by 20 to 25 percent. It will reduce the
fiscal disparities that are responsible
for the substantial differences in the
level and quality of basic community
services.
The formulas used in distributing
these funds are based on need, tax
effort, and fiscal capacity. They are
designed so that the greatest propor-
tion of a State's allocation will go to
poor rural and urban communities,
particularly those that have above av-
erage tax effort relative to resources.
While over 90 percent of thecommu-
nities that received funds under gener-
al sharing will also receive funds under
the Targeted Fiscal Assistance Pro-
gram, the relative distribution of
funds within a State will be altered
dramatically. Wealthy communities,
defined as those whose average per
capita income 25 percent or more
above the State average will not be eli-
gible to receive funds. Communities
with low - fiscal capacity but high tax -
effort can receive up to twice the aver-
age State per capita grant. Finally,
small "paper' governments which pro-
vide virtually no services will not re-
ceive funds.
Mr. President, the realities we face
today are clear. Less money. Less Fed-
eral involvement. Tougher choices.
Tougher competition.
To many, the future looks much less
clear. There are those who find the
old ways comfortable. The old inter-
governmental relationships we had
may not have been perfect, but all of
us knew what was expected of us.
But if we are to act responsibly —if
we are to shape the future —we cannot
stand in the wings. We must go forth
to meet the challenges we face.
Targeted fiscal assistance can help
us in this quest.
0 0
FOR YOUR INFORMATION
0
Oops! Puluth.,police blow
up attorney's briefcase
DULUTH "(AP) — M. George; short time later to get the briefcase incident began when an
- "It blows it 'to pieces," Johnson
.`JThe
Downs. no doubt will think twice for City Council meeting. :
unidentified man noticed the brief -
said.'
before leaving his briefcase behind! ButwhanhereturnedtoCityHall, `case
'and;' told a City Hall
The briefcase then was "examin-
e m It might get blown to tutg
he was teld police were in-
maintenanee worker, according to
ed by them and determined not to
in '"
s vesGgajing a -report, of a possible „a
police news release. Because it
contain an explosive device or any
owns, a city councilor,' stashed bomb:.,' , ,+ `N
appeared to have been hidden and,
other dangerous devices,” , the
t�g briefcase containing working 'IN it`ywas
because the identity of the man who
release
- release said.
papers behind a statue in city hall George's briefcase until we came
first reported it wasn't known,
r Police handed Downs what was
lrionday evening to avoid having to,- up here and they said they blew up it
police contacted the St. Louis Coun.
left of his papers in a large paper
c8 my it across the street to dinner., strange briefcase and there were
ty bomb squad.
bag.
He plannedIto return ,to City Hall a papers exploding all over the
They also handed him his brief -
pplace,'1;: said Councilor Joyce
' The bomb squad opened it with a
case — "demolished," Downs said.
ii - '7he blew u George's s resolu- :Sheriff
Perl ;� Benson. p g
blast of high- pressure water, said
Ernie Grams. The squad set
-
For IOC81 sports coverage
tionsand ordinances, " she said with
}} } a laugh,+:
lIC,'; :Policesaidtheythoughtthebrief-
off a small, controlled explosion
that shot water through a metal
tube at very high speed, according
at its best
`" read The Journal
'' case might contain
to bomb squad member Al Johnson.
'
��
A 544 APRIL-MY
Hutchinson, Md 55350 Volume 1, Number 9
•® „�j - j7•�
(612) 587 -4040
UNITS SELMMED FOR MUMS, OFFICE
Two long- anticipated milestones - the completion and fur-
.
nistning of model condominium units for public display and
( �- .•. ! ..�
the move of our offices from our temporary quarters down-
town back to GRFMR'ASTLE are now "just around the comer."
T'he units selected for models and temporary Sales and Dis-
play Center are those on the east side of the courtyard fac-
ing west, across the hall from the garages. (For those of you
No, you can't move in
with building plans, Units 123, 125, 127 and 129). For the
with me, Harvey! I
time being, until our front entrance off Freenwnt Avenue is
told you a month ago,
coupleted, access to the office and models will be a garage
the early bird gets the
entrance. We invite you to stop by to see us. We'll be
worm AND the coIndominniuml
planning soon for group tours (likely in June), and - a bit
# ##
later, probably in July - our Open House celebration. -- More
on that in the rent GREETER.
•
MDRE ABOUT HOME COSTS
COMTRUCTION IS 2IPPINGI
VS HiOMEOWNER FEES
The interior is shaping up with the final floors being poured;
In an effort to let pros-
meaning also, of course, the completion of the installation of
pective Greencastle torte-
plumbing and wiring. The walls are going into place with sheet -
owners see hew the amounts
rock transforming the interior of the building from a maze of
they pay ncm for various ser-
blueprint-predetermined upright wood columns into spacious
vices stacks up with our
areas becoming the living room, bedrooms, baths, hallways
Homeowners Association Fees,
and porches of comfortable, well - designed homes. The expanse
MHrketing Representative
of glass on each ham which signifies the porches has been
Sheryl Bakewell has had a
co plemantedduring the past week by the installation of the
busy week putting together
outer patio door. And, if the walls are going up, can their
a comparison sheet. Attenpt-
completion, the addition of the woodwork and the wood staining
ing to compare apples with
be far behind? It may have been a long winter, but spring
apples," she has made count -
means new life. The form - giving, "life - instilling" oonstruc-
less phone calls and heated
tion craws at the site are putting it all together to make
her calculator to a rosy -
Greencastle cane more alive each day.
•
glow to make those compari-
# ##
sons just as accurate as pos-
sible. She now has a work-
"GRAYING" MpH4(Ef STUDY REVEALS
sheet which she is anxious to
CHAILOX S, OPPORTUNITIE.9
show everyone who is interest-
According to a story in the April, 1986, trade publication,
ed in the numbers. It proves
"Professional. Builder:" "Construction of retirement !musing
that the Homeowners Associa -
is for guilders who are interested in people and are willing
tion Fees are a good buy, To
to provide a service rather than just seek a profit."
see a copy or to sit down
Fran the beginning, Greencastle Developer Newell P. Weed,
with Sheryl for an itemrby-
Jr., has held as high priority considerations not only the
.item discussion, give us a
services to be afforded to the men and women who would be
call at 587 -4040.
owners of his dream condominium, but also their comfort,
# ##
security and long -timma happiness. He therefore finds himself
SHOW WINNERS
in agreement with many of the sentiments expressed in the "Pro-
In keeping with our Green-
fessional Builder" story, entitled "Meeting the Varied Market
castle image, the prizes
for the Graying of America." The statements are from builders
selected for the April 12 b
providing housing for "young old" and older old" Americans.
13 Home and Recreation Show
Excerpts of the story follow:
at the Civic Arena vere lush
ceding housing for a graying America is a service and
green plants and evergreen
managmmmmntroriented field, says Leo Baldwin, Washington, D. C.,
seedlings.
president of I.EO Inc., and former housing coordinator for the
We wish everyone could
American Association of Retired Persons.
have won. HERE ARE THE IV=
The only successful builders in this business are those who
WIC:
really care for older people, says Justus Ammons, bui.Lder /de-
Myron Clapp, Hutchinson
veloper of the Sprinngimoor Life Care Retirement Center in
Bob Garberg, Hutchinson
Raleigh, N.C. The approach in this field is tonally different
Reuben Helmut, Hutchinson
from building conventional apartments and single - family hones.
Mary Ludowese, Hutchinson
He adds, "It's a lot more complicated than what most builders
Tony Pewlecki, Silver Lake
are used to."
hots. Hoverd Taws, Glencoe
Operating a retirement facility is more like running a hotel
ODNGRATUTATIONSII
than an apartment building, says Albert Schneider, president
(You can still "win" a
of Retirement Community Developers, Alexandria, VA.
beautiful new home at Green-
Leo Baldwin believes that just four percent of persons over
castle by registering your
the age of 65 will migrate out of the state in which they
•
interest soon with a Green-
reached 65. Of residents in a typical retirement community,
(Continued on next page).
(Continued on next page).
0
•
•
Loma will find a way. Indifierenm will
find ao esc"sc.
Ch.A. al.. aryl. . ' Id.nl Lwhenn
Uull hose salesman to limo girl's
m,aher.'7t's also an educational ruy—il
aamcs with a mortgage."
(Continued from page one)
castle Marketing representa-
tive. Just call our offices,
587 -4040, or stop by.)
# ##
IS TV HEM FFEMONT
OUR 3TREEVS NAMWJM7
The possibility that the
hem of the recent TV mini-
series, "Dream West," is the
same Fremont for whom Free -
mont Avenue in Hutchinson is
named prompted a call to
Hutchinson City EYngineer. Mar-
low Priebe.
In case you missed it, the
miniseries told the story of
the 19th century explorer,
politician and military man
who charted the Oregon Tra11
and other parts of the West
and conquered California for
the United States. Fre. rest
was the first Republican can-
didate for president, losing
to Democrat Janes Buchasan in
1856.
Bette Hubin was the first to
suggest that OUR Freanant
might be THAT Fremont, but
with a change in. spelling.
Marlow falls us that the
MAL story is nothing no ro-
mantic. Seem some streets in
the newly - developing south part
of the city needed tames, and
Marlow proposed Fraenpnt, re-
m acbering it as a street in
Minneapolis.
In spite of "the rest of the
story," watching the miniseries
was more interesting because of
the possible connection with
Greencastle. And, after all,
Who ]mows the origin of the
Freesmt for vd m the Minnea-
polis street was named???
(Continued from page one.)
858 will have moved fewer than 25 miles.
Persona age 65 or older totaled 27.4 million in 1984 --
11.79 of the U.S. population, according to the Bureau of
Census. By the year 2000, persons 65 and older are expected
to represent 139 of the U.S. population, and 21.28 of 2030.
Nearly 276 of all households headed by a person 65 or older
have enough income to put then in the "luxury" class, accord-
ing to study by the Census Bureau and The Conference Board.
Their per capita income - $5633- reflects the fact that these
persons have no children to support,. often have paid -off
mortgages, and receive tax breaks. !brewer, this grail has
equity from the sale of the family ham to contribute to the
purchase of a new house. All of these factors contribute to
the discretionary spending capability of this group.
William B. Scott, of the Woodridge project of Escondido, CA,
agrees that marketing the product (c=kminiun) to the empty
nester and active retiree calls for a different approach.
Buyers have to be taken through the purchase steps so that they
can be sure they are getting what they pay for, he says. They
have to be reassured they are doing the right thing and that
their investment is a good ores they want to be sure they are
getting security and value.
Results of an exclusive survey of builders reveal these
additional findings:
*Given a choice, empty nesters and retirees prefer out-
right ownership of their home.
*Most empty nesters and retirees plan to relocate near
where they currently live instead of heading for aplace in
the Stye Belt states, as is a canon perception. More than
906 of empty resters remain in the state they live in row.
Less than 206 of retirees nave out of state.
*A ccnrwdty's activities and the opportunity for social-
izing "turn on" older Americans.
*Personal security -type items —such as nonslip tile and
a argency /fire alarms— indicate that empty nesters and re-
tirees need to feel secure in their home.
# ##
QUESTIONS, WE (,'Er QUESTIONS ...
Qs Now do S sell my unit?
As The resident or the heirs contact the Greencastle Board
of Directors indicating their desire to sell their unit.
The seller establishes his own price. At that time, the
Board would provide nacres from the waiting list of all
those interested in purchasing that size unit. The
seller receives ALL the money from the sale of the unit.
Qs Will there be unsoftened drinking water in my unit?
As Yes. The cold water tap In the kitchen is hard waters
the remaining taps are all softened water (hot & cold).
ANY QUESTIONS you might have about Greencastle are welcome.
If you would like them answered in the GREL,,TEB, 77o�f then down
and mail then to us at Box 544, Hutchinsanr M4 S950. If
you would, like an immediate answer, give ui a ¢aYl at 587-
4040. # ##
"Can that possibly be the same man whocomplains every Sunday
about uncomfortable church pews?'
Hutchinson, MinnesntW!&hil>l "`may- � " "�"r�;, .`'.•
Mt, Gary Plotz, City Admits.
Hutchinson City Hall
37 Washington Ave. W
Hutchinsm, Mw 55350
• CERTIFICATION OF MINUTES RELATING TO
$1,075,000 GENERAL OBLIGATION
IMPROVEMENT BONDS OF 1986
Issuer: City of Hutchinson, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting, held
on April 29, 1986, at 7:30 o'clock p.m., in the City Hall.
Members present:
Members absent:
Documents Attached:
Minutes of said meeting (pages): 1 through 18
RESOLUTION NO. 8276
RESOLUTION RELATING TO $1,075,000
GENERAL OBLIGATION
IMPROVEMENT BONDS OF 1986;
FIXING THE FORM AND DETAILS, PROVIDING FOR
THE EXECUTION AND DELIVERY THEREOF AND
• THE SECURITY THEREFOR AND
LEVYING AD VALOREM TAXES FOR THE
PAYMENT THEREOF
I, the undersigned, being the duly qualified and
acting recording officer of the public corporation issuing the
obligations referred to in the title of this certificate,
certify that the documents attached hereto, as described above,
have been carefully compared with the original records of said
corporation in my legal custody, from which they have been
transcribed; that said documents are a correct and complete
transcript of the minutes of a meeting of the governing body of
said corporation, and correct and complete copies of all
resolutions and other actions taken and of all documents
approved by the governing body at said meeting, so far as they
relate to said obligations; and that said meeting was duly held
by the governing body at the time and place and was attended
throughout by the members indicated above, pursuant to call and
notice of such meeting given as required by law.
WITNESS my hand officially as such recording officer
this 29th day of April, 1986.
• Gary D. Plotz
City Administrator
(SEAL)
Member introduced the •
following resolution and moved its adoption:
RESOLUTION NO. 8276
RESOLUTION RELATING TO $1,075,000 GENERAL OBLIGATION
IMPROVEMENT BONDS OF 1986; FIXING THE FORM AND
DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY
THEREOF AND THE SECURITY THEREFOR AND LEVYING AD
VALOREM TAXES FOR THE PAYMENT THEREOF
BE IT RESOLVED by the City Council of the City of
Hutchinson, Minnesota, as follows:
Section 1. Recitals.
1.01. Authorization. This Council has heretofore ordered
various local improvement projects designated as Project No.
86 -01, Project No. 86 -02, Project No. 86 -03, Project No.
86 -03A, Project No. 86 -04, Project No. 86 -05, Project No. 86 -06
and Project No. 86 -07 (the Improvements), to be constructed
within the City under and pursuant to Minnesota Statutes,
Chapter 429. The present estimated total cost of the
Improvements is as follows:
Construction $ 752,000 •
Engineering 162,000
Contingency 32,000
Cost of Issuance 28,000
Capitalized Interest 80,000
Registration 3.000
Subtotal
$1,057,000
Discount
18,000
TOTAL
$1,075,000
1.02. Sale. Pursuant to Resolution No. 8252 , this
Council determined to issue and sell $1,075,000 principal
amount of General Obligation Improvement Bonds of 1986, of the
City (the Bonds) to defray the expense incurred and estimated
to be incurred by the City in making the Improvements,
including every item of cost of the kinds authorized in
Minnesota Statutes, Section 475.65, and $18,000 representing
interest as provided in Minnesota Statutes, Section 475.56.
Pursuant to Resolution No. 8252 , a public sale of the Bonds
was held on April 29, 1986 and this Council, by resolution
0
• adopted on that date, accepted the bid of
, of
(the Purchaser), to purchase the Bonds on the terms and
conditions set forth in the Terms and Conditions of Sale.
•
11
1.03. Issuance of Bonds. All acts, conditions and things
required by the Constitution and laws of the State of Minnesota
to be done, to exist, to happen and to be performed prior to
the issuance of the Bonds have been done, do exist, have
happened, and have been performed, wherefore it is now
necessary for this Council to establish the form and terms of
the Bonds, to provide for the security thereof, and to issue
the Bonds forthwith.
1.04. Maturities. This Council finds and determines that
the maturities of the Bonds, as set forth in Section 3.01
hereof, are warranted by the anticipated collection of the
assessments and ad valorem taxes to be levied for the cost of
the Improvements.
Section 2. Form of Bonds.
2.01. Form of Bonds. The Bonds shall be prepared in
substantially the following form:
-2-
(Face of Bonds] •
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF MCLEOD
CITY OF HUTCHINSON
GENERAL OBLIGATION
IMPROVEMENT BOND OF 1986
Date of
Rate Maturitv Original Issue CUSIP
May 1, 1986 SEE REVERSE
FOR CERTAIN
DEFINITIONS
REGISTERED
OWNER:
PRINCIPAL
AMOUNT: DOLLARS
THE CITY OF HUTCHINSON, McLeod County, Minnesota (the •
City), acknowledges itself to be indebted and, for value
received, hereby promises to pay to the registered owner above
named, the principal amount indicated above, on the maturity
date specified above, with interest thereon from the date
hereof at the annual rate specified above, payable on May 1 and
November 1 in each year, commencing November 1, 1986, 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, the principal
hereof, are payable in lawful money of the United States of
America by check or draft of ,
in 1 , 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.
n
U
-3-
• This Bond shall not be valid or become obligatory for
any purpose or be entitled to any security or benefit under the
Resolution until the Certificate of Authentication hereon shall
have been executed by the Bond Registrar by manual signature of
one of its authorized representatives.
IN WITNESS WHEREOF, the City of Hutchinson, McLeod
County, State of Minnesota, by its City Council, has caused
this Bond to be executed by the facsimile signatures of the
Mayor and the City Administrator and by a printed facsimile of
the official seal of the City and has caused this Bond to be
dated as of the date set forth below.
Dated:
(Facsimile Signature) (Facsimile Signature)
City Administrator Mayor
(Facsimile Seal)
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the
• Resolution mentioned within.
n
LJ
By
Authorized Representative
[Reverse of the Bonds]
This Bond is one of an issue in the aggregate
principal amount of $1,075,000 (the Bonds), all of like date
and tenor except as to serial number, interest rate, and
maturity date, issued to pay the cost of construction of local
improvements in the City (the Improvements), and is issued
pursuant to and in full conformity with the provisions of the
Constitution and laws of the State of Minnesota thereunto
enabling, including Minnesota Statutes, Chapters 429 and 475.
This Bond is payable primarily from the 1986 Improvement Bond
Fund (the Fund) of the City, but the City is required by law to
pay maturing principal hereof and interest thereon out of any
funds in the treasury if moneys on hand in the Fund are
insufficient therefor. The Bonds are issuable only as fully
-4-
registered bonds, in denominations of $5,000 or any integral .
multiple thereof, of single maturities.
Bonds maturing in the years 1988 through 1993 are
payable on their respective stated maturity dates without
option of prior payment, but Bonds having stated maturity dates
in the years 1994 through 1997 are each subject to redemption
and prepayment, at the option of the City and in whole or in
part and if in part, in inverse order of maturities and by lot,
assigned in proportion to their principal amount, within any
maturity, on May 1, 1993 and on any interest payment date
thereafter, at a price equal to the principal amount thereof to
be redeemed plus interest accrued to the date of redemption.
At least thirty days prior to the date set for redemption of
any Bond, notice of the call for redemption will be 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 partial
redemption of any Bond, a new Bond or Bonds will be delivered
to the registered owner without charge, representing the
remaining principal amount outstanding. •
As provided in the Resolution and subject to certain
limitations set forth therein, this Bond is transferable upon
the books of the City at the principal office of the Bond
Registrar, by the registered owner hereof in person or by his
attorney duly authorized in writing upon surrender hereof
together with a written instrument of transfer satisfactory to
the Bond Registrar, duly executed by the registered owner or
his attorney; and may also be surrendered in exchange for Bonds
of other authorized denominations. Upon such transfer or
exchange, the City will cause a new Bond or Bonds to be issued
in the name of the transferee or registered owner, of the same
aggregate principal amount, bearing interest at the same rate
and maturing on the same date, subject to reimbursement for any
tax, fee or governmental charge required to be paid with
respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the
person in whose name this Bond is registered as the absolute
owner hereof, whether this Bond is overdue or not, for the
purpose of receiving payment and for all other purposes, and
neither the City nor the Bond Registrar shall be affected by
any notice to the contrary.
•
-5-
. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED
that all acts, conditions and things required by the
Constitution and laws of the State of Minnesota to be done, to
exist, to happen and to be performed precedent to and in the
issuance of this Bond in order to make it a valid and binding
general obligation of the City according to its terms have been
done, do exist, have happened and have been performed as so
required; that prior to the issuance hereof the City has levied
or agreed to levy special assessments on property specially
benefited by the Improvements and ad valorem taxes on all
taxable property within the City, collectible in the years and
amounts required to produce sums not less than 5% in excess of
the principal of and interest on the Bonds as such principal
and interest respectively become due, and has appropriated the
same to the Fund in the manner specified in Minnesota Statutes,
Section 429.091, Subdivision 4; that, to take care of any
accumulated or anticipated deficiency in the Fund, additional
ad valorem taxes are required by law to be levied upon all
taxable property in the City without limitation as to rate or
amount; and that the issuance of this Bond does not cause the
indebtedness of the City to exceed any charter, constitutional
or statutory limitation.
• The following abbreviations, when used in the
inscription on the face of this Bond, shall be construed as
though they were written out in full according to the
applicable laws or regulations:
•
TEN COM -- as tenants UNIF GIFT MIN ACT..... Custodian.....
in common (Gust) (Minor)
TEN ENT -- as tenants
by the entireties
JT TEN -- as joint tenants
with right of
survivorship and
not as tenants in
common
under Uniform Gifts to
Minors
Act...... .. .......
(State)
Additional abbreviations may also be used.
we
ASSIGNMENT .
FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto
the within Bond and all rights thereunder, and hereby
irrevocably constitutes and appoints
attorney to transfer the within Bond on the books kept for
registration thereof, with full power of substitution in the
premises.
Dated:
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE:
NOTICE: The signature to this
assignment must correspond with
the name as it appears upon the
face of the within Bond in every
particular, without alteration
or any change whatsoever.
Signature(s) must be guaranteed by a commercial bank
or trust company or by a brokerage firm having a membership in
one of the major stock exchanges.
2.03. Form of Certificate. A certificate in
substantially the following form shall appear on the reverse
side of each Bond, following a copy of the text of the legal
opinion of Bond Counsel:
We
copy of the
of Bonds of
Bond, dated
Bonds.
(Facsimile
City Adm
certify that the above
legal opinion rendered
the City of Hutchinson
as of the date of deli
signature)
inistrator
is a full, true and correct
by Bond Counsel on the issue
which includes the within
very of and payment for the
(Facsimile signature)
Mayor
Section 3. Bond Terms ExeCution and Delivery.
3.01. Maturities, Interest Ratea, Denominations,
Payment. The City shall forthwith issue and deliver the Bonds,
which shall be denominated "General Obligation Improvement
Bonds of 1986" and shall be payable primarily from the 1986
Improvement Bond Fund created in Section 9.02 hereof. The
Bonds shall be issuable in the denomination of $5,000 each 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 date of issue until
-7-
•
•
paid or duly called for redemption at the rates per annum shown
opposite such years and amounts as follows:
Year Amount Rate Year Amount Rate
1988 $ 100,000 1993 $ 100,000
1989 100,000 1994 100,000
1990 100,000 1995 125,000
1991 75,000 1996 150,000
1992 75,000 1997 150,000
The Bonds shall be issuable only in fully registered form. The
interest thereon and, upon surrender of each Bond, the
principal amount thereof, shall be payable by check or draft
issued by the Registrar described herein.
3.02. Dates: Interest Payment Dates. Each Bond shall
be dated as of the last interest payment date preceding the
date of authentication to which interest on the Bond has been
paid or made available for payment, unless (i) the date of
authentication is an interest payment date to which interest
has been paid or made available for payment, in which case such
Bond shall be dated as of the date of authentication, or
(ii) the date of authentication is prior to November 1, 1986 in
. which case such Bond shall be dated as of May 1, 1986. The
interest on the Bonds shall be payable on May 1 and November 1
in each year, commencing November 1, 1986, to the owner of
record thereof as of the close of business on the fifteenth day
of the immediately preceding month, whether or not such day is
a business day.
•
3.03. Registration. The City shall appoint, and
shall maintain, a bond registrar, transfer agent and paying
agent (the Registrar). The effect of registration and the
rights and duties of the City and the Registrar with respect
thereto shall be as follows:
(a) Register. The Registrar shall keep at its
principal corporate trust office a bond register in which
the Registrar shall provide for the registration of
ownership of Bonds and the registration of transfers and
exchanges of Bonds entitled to be registered, transferred
or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer
of any Bond duly endorsed by the registered owner thereof
or accompanied by a written instrument of transfer, in form
satisfactory to the Registrar, duly executed by the
registered owner thereof or by an attorney duly authorized
�E
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 and maturity, as
requested by the registered owner or the owner's attorney
duly authorized in writing.
(d) Cancellation. All Bonds surrendered upon any
transfer or exchange shall be promptly cancelled by the
Registrar and thereafter disposed of as directed by the
City.
(e) Improper or unauthorized Transfer. When any Bond
is presented to the Registrar for transfer, the Registrar
may refuse to transfer the same until it is satisfied that
the endorsement on such Bond or separate instrument of
transfer is legally authorized. The Registrar shall incur •
no liability for its refusal, in good faith, to make
transfers which it, in its judgment, deems improper or
unauthorized.
(f) Persons Deemed owners. The City and the
Registrar may treat the person in whose name any Bond is at
any time registered in the bond register as the absolute
owner of such Bond, whether such Bond shall be overdue or
not, for the purpose of receiving payment of, or on account
of, the principal of and interest on such Bond and for all
other purposes, and all such payments so made to any such
registered owner or upon the owner's order shall be valid
and effectual to satisfy and discharge the liability of the
City upon such Bond to the extent of the sum or sums so
paid.
(g) Taxes. Fees and Charges. For every transfer or
exchange of Bonds, 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
QM
• destroyed, the Registrar shall deliver a new Bond of like
amount, number, maturity date and tenor in exchange and
substitution for and upon cancellation of any such
mutilated Bond or in lieu of and in substitution for any
such Bond lost, stolen or destroyed, upon the payment of
the reasonable expenses and charges of the Registrar in
connection therewith; and, in the case of a Bond lost,
stolen or destroyed, upon filing with the Registrar of
evidence satisfactory to it that such Bond was lost, stolen
or destroyed, and of the ownership thereof, and upon
furnishing to the Registrar of an appropriate bond or
indemnity in form, substance and amount satisfactory to it,
in which both the City and the Registrar shall be named as
obligees. All Bonds so surrendered to the Registrar shall
be cancelled by it and evidence of such cancellation shall
be given to the City. If the mutilated, lost, stolen or
destroyed Bond has already matured or been called for
redemption in accordance with its terms, it shall not be
necessary to issue a new Bond prior to payment.
3.04. Appointment of Initial Registrar. The City
hereby appoints , as
the initial Registrar. The Mayor and the City Administrator
are authorized to execute and deliver, on behalf of the City, a
contract with , as
• Registrar. 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 1986 Improvement Bond Fund described in
Section 4.02 hereof, moneys sufficient for the payment of all
principal and interest then due.
•
3.05. Redemption. (a) Bonds maturing in the years
1988 through 1993 shall not be subject to redemption prior to
maturity, but Bonds maturing in the years 1994 through 1997
shall each be subject to redemption and prepayment, at the
option of the City, in whole or in part, and if in part, in
inverse order of maturities and, within any maturity, in $5,000
principal amounts selected by the Registrar by lot, on May 1,
1993 and on any interest payment date thereafter at a price
-10-
equal to the principal amount thereof to be redeemed plus •
interest accrued to the date of redemption. At least thirty
days prior to the date set for redemption of any Bond, the City
Administrator shall cause notice of the call for redemption to
be 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 to be mailed to the
Registrar and to the registered owner of each Bond to be
redeemed, but no defect in or failure to give such mailed
notice of redemption shall affect the validity of proceedings
for the redemption of any Bond not affected by such defect or
failure.
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
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 authenti-
cation on each Bond shall be conclusive evidence that it has
been authenticated and delivered under this resolution. When
the Bonds have been so executed and authenticated, they shall
be delivered by the City Administrator to the purchaser thereof
upon payment of the purchase price in accordance with the
contract of sale heretofore made and executed, and the
purchaser shall not be obligated to see to the application of
the purchase price.
Section 4. Security Provisions.
4.01. 1986 Improvement Construction Fund. There is
hereby created a special bookkeeping fund to be designated as
the "1986 Improvement Construction Fund" (hereinafter referred
to as the Construction Fund), to be held and administered by
the City Administrator separate and apart from all other funds
of the City. The City appropriates to the Construction Fund
•
-11-
. (a) the proceeds of the sale of the Bonds, and (b) all
collections of special assessments levied for the Improvements
until completion and payment of all costs of the Improvements.
The Construction Fund shall be used solely to defray expenses
of the Improvements, including but not limited to the transfer
to the Bond Fund, created in Section 4.02 hereof, of amounts
sufficient for the payment of interest and principal, if any,
due upon the Bonds prior to the completion and payment of all
costs of the Improvements and the payment of the expenses
incurred by the City in connection with the issuance of the
Bonds set forth in Section 9 hereof. Upon completion and
payment of all costs of the Improvements, any balance of the
proceeds of Bonds remaining in the Construction Fund may be
used to pay the cost, in whole or in part, of any other
improvements instituted pursuant to the Act, as directed by the
City Council, but any balance of such proceeds not so used
shall be credited and paid to the Bond Fund.
4.02. 1986 Improvement Bond Fund. So long as any of
the Bonds are outstanding and any principal of or interest
thereon unpaid, the City Administrator shall maintain a
separate and special bookkeeping fund designated "1986
Improvement Bond Fund" (hereinafter referred to as the Bond
Fund) to be used for no purpose other than the payment of the
principal of and interest on the Bonds and on such other
• improvement bonds of the City as have been or may be directed
to be paid therefrom. The City irrevocably appropriates to the
Bond Fund (a) the collections of special assessments and other
funds to be credited and paid thereto in accordance with the
provisions of Section 4.01, (b) any taxes levied in accordance
with this resolution, and (c) all such other moneys as shall be
received and appropriated to the Bond Fund from time to time.
If the balance in the Bond Fund is at any time insufficient to
pay all interest and principal then due on all bonds payable
therefrom, the payment shall be made from any fund of the City
which is available for that purpose, subject to reimbursement
from the Bond Fund when the balance therein is sufficient, and
the Council covenants and agrees that it will each year levy a
sufficient amount to take care of any accumulated or
anticipated deficiency, which levy is not subject to any
constitutional or statutory tax limitation.
E
4.03. Additional Bonds. The City reserves the right
to issue additional bonds payable from the Bond Fund as may be
required to finance costs of the Improvements not financed
hereby; provided that the City Council shall, prior to the
delivery of such additional bonds, levy or agree to levy by
resolution sufficient additional special assessments and ad
valorem taxes, if any, which, together with other moneys or
revenues pledged for the payment of said additional
-12-
obligations, will produce revenues at least five percent (5 %) •
in excess of the amount needed to pay when due the principal
and interest on all 'bonds payable from the Bond Fund. The
additional special assessments, ad valorem taxes and moneys or
revenues so pledged, levied or agreed to be levied shall be
irrevocably appropriated to the Bond Fund in the manner
provided by Minnesota Statutes, Section 475.61.
4.04. Levy of Special Assessments. The City hereby
covenants and agrees that for payment of the cost of each of
the Improvements it will do and perform all acts and things
necessary for the full and valid levy of special assessments
against all assessable lots, tracts and parcels of land
benefited thereby and located within the area proposed to be
assessed therefor, based upon the benefits received by each
such lot, tract or parcel, in an aggregate principal amount not
less than twenty percent (20 %) of the cost of such
Improvement. In the event that any such assessment shall be at
any time held invalid with respect to any lot, piece or parcel
of land, due to any error, defect or irregularity in any action
or proceeding taken or to be taken by the City or this Council
or any of the City's officers or employees, either in the
making of such assessment or in the performance of any
condition precedent thereto, the City and this Council hereby
covenant and agree that they will forthwith do all such further
acts and take all such further proceedings as may be required •
by law to make such assessments a valid and binding lien upon
such property. The Council presently estimates that the
special assessments shall be payable in not more than _
installments, the first installment to be collectible with
taxes during the year 198_, and that deferred installments
shall bear interest at the rate of percent (—%) per
annum from the date of the resolution levying said assessment
until December 31 of the year in which the installment is
payable.
4.05. Ad Valorem Taxes. The full faith and credit
and taxing powers of the City are irrevocably pledged for the
prompt and full payment of the principal of and interest in the
Bonds as the same become respectively due. For the purpose
there is hereby levied upon all of the taxable property of the
City a direct, annual ad valorem tax, which shall be spread
upon the tax rolls prepared in each of the following years and
collected with other taxes in the following years and amounts
as follows:
E
-13-
• Levy Collection
Year Year Amount
1986
1987
1987
1988
1988
1989
1989
1990
1990
1991
1991
1992
1992
1993
1993
1994
1994
1995
1995
1996
The foregoing tax levies are such that if collected in full
they will produce at least five percent (5%) in excess of the
amount needed to pay when due the principal of and interest on
the Bonds. This tax shall be irrevocably appropriated to the
Bond Fund as long as any of the Bonds are outstanding and
unpaid; provided that the City reserves the right and power to
reduce the levies in the manner and to the extent permitted by
Minnesota Statutes, Section 475.61.
4.06. Full Faith and Credit Pledged. The full faith
• and credit of the City are irrevocably pledged for the prompt
and full payment of the principal of and the interest on the
Bonds, and the Bonds shall be payable from the Bond Fund in
accordance with the provisions and covenants contained in this
resolution. It is estimated that the taxes and special
assessments levied and to be levied for the payment of the
Improvements will be collected in amounts not less than five
percent (5 %) in excess of the annual principal and interest
requirements of the Bonds. If the money on hand in the Bond
Fund should at any time be insufficient for the payment of
principal and interest then due, this City shall pay the
principal and interest out of any fund of the City, and such
other fund or funds shall be reimbursed therefor when
sufficient money is available to the Bond Fund. If on
October 1 in any year the sum of the balance in the Bond Fund
plus the amount of taxes and special assessments theretofore
levied for the Improvements and collectible through the end of
the following calendar year is not sufficient to pay when due
all principal and interest become due on all Bonds payable
therefrom in said following calendar year, or the Bond Fund has
incurred a deficiency in the manner provided in this
Section 4.06, a direct, irrepealable, ad valorem tax shall be
levied on all taxable property within the corporate limits of
the City for the purpose of restoring such accumulated or
anticipated deficiency in accordance with the provisions of
• this resolution.
-14-
Section 5. Defeasance. When all of the Bonds and all
coupons appertaining thereto have been discharged as provided
in this section, all pledges, covenants and other rights
granted by this resolution to the holders of the Bonds shall
cease. The City may discharge its obligations with respect to
any Bonds and coupons appertaining thereto which are due on any
date by depositing with the paying agent on or before that date
a sum sufficient for the payment thereof in full; or, if any
Bond or coupon should not be paid when due, it may nevertheless
be discharged by depositing with the paying agent a sum
sufficient for the payment thereof in full with interest
accrued to the date of such deposit. The City may also at any
time discharge its obligations with respect to any Bonds,
subject to the provisions of law now or hereafter authorizing
and regulating such action, by depositing irrevocably in
escrow, with a bank qualified by law as an escrow agent for
this purpose, cash or securities which are general obligations
of the United States or securities of United States agencies
which are authorized by law to be so deposited, bearing
interest payable at such time and at such rates and maturing on
such dates as shall be required, without reinvestment, to pay
all principal and interest to become due thereon to maturity.
Section 6. Registration. Certification of
Proceedings Investment of Moneys and Arbitrage.
6.01. Registration.
•
The City Administrator is hereby
authorized and directed to file a certified copy of this
resolution with the County Auditor of McLeod County, together
with such other information as he shall require, and to obtain
from the County Auditor a certificate that the Bonds have been
entered on his bond register and that the tax required for the
payment thereof has been levied and filed as required by law.
6.02. Certification of Proceedings. The officers of
the City and the County Auditor of McLeod County are hereby
authorized and directed to prepare and furnish to the
Purchaser, and to Dorsey & Whitney, Bond Counsel, certified
copies of all proceedings and records of the City, and such
other affidavits, certificates and information as may be
required to show the facts relating to the legality and
marketability of the Bonds as the same appear from the books
and records under their custody and control or as otherwise
known to them, and all such certified copies, certificates and
affidavits, including any heretofore furnished, shall be deemed
representations of the City as to the facts recited therein.
6.03. Covenant. The City covenants and agrees with
the holders from time to time of the Bonds that it will not
take or permit to be taken by any of its officers, employees or
•
-15-
• agents any action which would cause the interest on the Bonds
to become subject to taxation under the Internal Revenue Code
of 1954, as amended (the Code), and Regulations promulgated
thereunder.
6.04. Investment of Moneys on Deposit in Bond Fund.
Unless and until the regulations under Section 103(c) of the
Code which have been promulgated by the Internal Service prior
to the date hereof have been modified or amended in pertinent
part, the City Administrator shall ascertain monthly the amount
on deposit in the Bond Fund. If the amount on deposit therein
ever exceeds by more than $161,250 the aggregate amount of
principal and interest due and payable from the Bond Fund
within 12 months thereafter plus a reasonable carryover amount
not exceeding the greater of one year's earnings on the Bond
Fund or one - twelfth of the annual debt service payable
therefrom, such excess shall not be invested except at a yield
less than or equal to the yield on the Bonds, based upon their
amount, maturities and interest rates on their date of issue,
computed by the actuarial method. If any additional
improvement bonds are ever issued and made payable from the
Bond Fund pursuant to Section 4.03 hereof, the dollar amount in
the preceding sentence shall be changed to equal fifteen
percent (15 %) of the aggregate original principal amount of all
bonds, including the Bonds, which are then outstanding and
• payable therefrom. The City reserves the right to amend the
provisions of this Section 6.04 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
6.04 are not necessary in order to assure that the Bonds are
not arbitrage bonds under Section 103(c) of the Code and the
applicable Regulations.
17J
6.05. Arbitrage. The Mayor and City Administrator,
being the officers of the City charged with the responsibility
for issuing the Bonds pursuant to this resolution, are
authorized and directed to execute and deliver to the Purchaser
a certificate in accordance with the provisions of Section
103(c) of the Code, and Treasury Regulations, Sections
1.103 -13, 1.103 -14 and 1.103.15, stating the facts, estimates
and circumstances in existence on the date of issue and
delivery of the Bonds which indicate that the proceeds of the
Bonds will not be used in a manner that would cause the Bonds
to be arbitrage bonds within the meaning of said Code and
Regulations.
Section 7. Compliance with New Legislation and
Regulations. This Council is aware that the United States
House of Representatives adopted on December 17, 1985, H.R.
3838 (the Tax Reform Bill) which imposes certain requirements
-16-
which must be satisfied by the issuers of municipal obligations •
if the interest on such obligations is to be exempt from
federal income taxation, and that the Tax Reform Bill is now
pending before the United States Senate. In order to enhance
the marketability of the Bonds this Council has determined that
it is necessary and desirable to structure the Bonds and the
application of the proceeds thereof so as to comply with the
Tax Reform Bill, assuming that, if finally enacted into law,
the Tax Reform Bill would apply to the Bonds. The City
covenants and agrees with the holders from time to time of the
Bonds that it will take, or it will cause its officers,
employees or agents to take, all action within its powers which
may be necessary to ensure that the interest on the Bonds will
not become subject to taxation under any federal legislation
adopted (including, without limitation, the Tax Reform Bill) or
federal tax regulations promulgated during the period for which
the Bonds are issued and during which the Bonds are
outstanding, including, without limitation, the rebate to the
federal government of any investment income earned by the City
from the investment of the proceeds of the Bonds at a yield
greater than the yield on the Bonds. The City covenants that
not less than five percent (5$) of the net proceeds of the
Bonds will be expended within thirty (30) days of the date of
issuance of the Bonds on the Improvements. The City further
covenants and agrees with such holders that it will take, or it
will cause its officers, employees or agents to take, all •
action necessary to ensure that complete and accurate financial
records are maintained regarding any investments made of all
Bond proceeds, in order to,assure compliance by the City with
any rebate requirements hereafter established by new federal
law (including, without limitation, the Tax Reform Bill) or
federal tax regulations, and that it will take, or it will
cause its officers, employees or agents to take, all actions
necessary to comply with the reporting requirements imposed on
the City with respect to the Bonds by the Tax Reform Bill and
any reporting requirements imposed-on the City with respect to
the Bonds by new federal law or federal tag regulations.
Section 8. Designation of Bonds for Purposes of
Section 802(e) of Tax Reform Bill. This Council hereby
designates the Bonds as "qualified tax exempt obligations" for
purposes of Section 802(e) of the Tax Reform Bill. In making
this designation this Council represents that the reasonably
anticipated qualified tax- exempt obligations which will be
issued by the City during 1986 do not exceed $10,000,000, and
that the City has not issued any other qualified tax exempt
obligations under Section 802(e) of the Tax Reform Bill during
1986.
•
-17-
• Section 9. Authorization of Payment of Certain Costs
of Issuance of the Bonds. The City Administrator is hereby
authorized and directed on the date of issuance and delivery of
the Bonds to pay from the proceeds of the sale of the Bonds,
deposited in the Construction Fund the fees and expenses of the
following persons incurred in connection with the issuance of
the Bonds up to the maximum amount set forth opposite the name
of such person upon receipt by the City of a satisfactory
statement therefor:
Payee
Ehlers & Associates, Inc.
Minneapolis, Minnesota
Dorsey & Whitney
Minneapolis, Minnesota
Service
Performed
Financial Consultant
Bond Counsel
Maximum
Amount
$13,708.75
$ 2,750.00
Moody's Investors
Service, Inc.
New York, New York Rating of Bonds $ 1,500.00
The claims of the above persons up to the maximum amount set
• forth opposite the name of such person is hereby approved and
no further action of this Council shall be necessary in
connection with the payment of such fees and expenses of
issuance of the Bonds.
Mayor
Attest:
City Administrator
(SEAL)
•
-18-
The motion for the adoption of the foregoing 0
resolution was duly seconded by Member
, and
upon vote being taken thereon, the following voted in favor
thereofand the following voted against the same:
whereupon said resolution was declared duly passed and adopted,
and was signed by the Mayor, which was attested by the City
Administrator.
-19-
•
E
ADMINISTRATIVE
UPDATE
APRIL 22, 1986
CITY OF HUTCHINSON
GUTORMSON SHED TO BE REMOVED WEDNESDAY MORNING
Doug Meier has notified me that Juul Contractin
will be removing the shed Wednesday morning.
SPECIAL COUNCIL MEETING TO ACCEPT BID
IMPROVEMENT BONDS
As mentioned at the last council meeting, there
will need to be a special council meeting on
Tuesday, April 29 at 5:30 p.m. for the purpose
of accepting improvement bonds.
PROPOSED SEWAGE TREATMENT PROJECT
On Monday, April 21, City staff met on a "check
list" of scope of services for Phase III on the
posed sewage treatment project.
ed on this meeting, CED /Donohue & Associates
will propose a Scope of Services and Associated
Costs. The council would review the scope of
services in late May or early June and then
forward this to MPCA for approval. Subsequently
(October) MPCA would decide on authorization
to proceed with execution of a contract.
SPECIAL ELECTION
Attached is a memorandum from Dean O'Borsky
requesting an insert be placed in City billings
to explain the May 13th vote.
Since our water /refuse billing comes out quar-
terly, this will not be possible. The next
gas /electric billings will not be out until
approximately May 10 (election May 13).
In the past we have produced an insert in the
Leader or Shopper. Does the city council want
such an information piece for this vote? Any
suggestions are welcomed by the city staff and
especially the police department.
NO NEW PROPOSAL /BIDS FOR FARMLAND RENTAL
le city advertised bids for farmland rental
at the airport. No bids were received, however
Eugene Birk said he bids.
ISSUE NO.
CONTRACT FOR DEED - EILEEN GOEDERS/
CITY OF HUTCHINSON
As requested, I negotiated with Mrs.
Goeders for (Lot 2 and Lot 3, Block 9)
the police station site.
The appraisal was for $96,703. The final
negotiated price is $90,000, with a waiver
of relocation benefits (copy attached).
Also attached is a letter acknowledging the
right to build upon the premises, during the
term of the contract for deed. Other terms
of the contract are as proposed at the last
council meeting (contract for deed attached).
HUTCHINSON POLICE DEPARTMENT MEMORANDUM
TO Gary Plotz
FROM Dean M. O'Borsky, Chief of Police
SUBJECT Special Election
DATE 4 -18 -86
Could you see to it that an insert is placed in city billings which explains
what the vote is about and what it means to the taxpayer, etc?
I would like to see it before it goes out.
•
LA
DMO:neb 0
W. B. (BILL) HAAS
• ATTORNEY AT LAW
212 CITIZENS BANK BUILDING TELEPHONE
P.O. BOX 157 612 -587 -4777
HUTCHINSON, MINNESOTA 55350 -0157
April 23, 1986
Mr. Gary Plotz
City Administrator
City Hall
37 Washington Ave W
Hutchinson, MN 55350
Re: Eileen Goeders
Dear Gary:
Enclosed herewith is the proposed contract for deed between
Eileen Goeders and the City of Hutchinson.
• Eileen will execute the document waiving relocation expenses, and
does herein acknowledge that the city has the right to build upon
the premises without her permission.
I trust that this will cover the matter.
Thank you.
Very truly yours,
z
W. B. Haas
WBH:cz
enc.
P.S. Do not execute the Contract in behalf of the City until you
tender the dam payment to Mrs. Goeders.
40
0
WAIVER OF RELOCATION BENEFITS
The undersigned owner - occupant being first duly sworn
does state as follows:
1. That prior to any action by the City of Hutchinson
does hereby state that she is willing to sell
certain real estate and requests that the property
be acquired through negotiations with the said
City.
2. State that she has received the "Residential
Relocation Guide" for the City of Hutchinson, and
understands that she may be eligible for
relocation benefits.
3. That she does voluntarily waive any relocation
assistance, services, payments and benefits for
which she may be eligible.
4. Further state that she has voluntarily signed this
agreement and has not been threatened by eminent
domain proceedings by the City of Hutchinson, but •
that she reserves the right to request friendly
condemnation proceedings if she so desires.
n
i
Dated this day of 1986.
j
Ilene Goeders
0
6782— CON TPPCT FOP DEED 1818a1
IrIM ... 1 Selbr to C '1.1lon
No delinquenttaxes and iransfer entered;
Certificate of Real Estate Value
(
)filed ( )not required
19 —.
•
By
County Auditor
MORTGAGE REGISTRY TAX DUE HEREON:
$
tar payment datal ' April 18 86
Date:
THIS CONTRACT FOR DEED is made on the above date by Eileen goec* , fm.,m, -ly
krnan as Eilem Rusch .•'rt.,., .,n,pnur '�
(marital status)
Seller (whether one or more), and '
corporti under the laws of the State of
Miruwsota ,Purchaser.
Seller and Purchaser agree to the following terms:
1. PROPERTY DESCRIPTION. Seller hereby sells, and Purchaser hereby buys, mat property in
Mr•1ur1 County, Minnesota, described as follows:
Lots 2 and 3, Block 9, Citl;.'of Hutchinson, South Half
•
together with all hereditaments and appurtenances belonging thereto (the Property).
2. TITLE. Seller warrants that title to the Property is, on the date of this contract, subject only to the
following exceptions:
(a) Covenants, conditions, restrictions, declarations and easements of record, if any;
(b) Reservations of minerals or mineral rights by the State of Minnesota, if any;
(c) Building, zoning and subdivision laws and regulations;
(d) The lien of real estate taxes and installments of special assessments which are payable by
Purchaser pursuant to paragraph 6 of this contract; and
(e) The following liens or encumbrances:
3. DELIVERY OF DEED AND EVIDENCE OF TITLE. Upon Purchaser's prompt and full performance
of this contract, Seller shall: ylananty, Deed, in
(a) Execute, acknowledge and deliver to Purchaser e
recordable form, conveying marketable title to the Property to Purchaser, subject only to the
following exceptions:
(i) Those exceptions referred to in paragraph 2(a), (b), (c) and (d) of this contract;
(ii) Lima, encumbrances, adverse claims or other matters which Purchaaerhas created, suffered
or permitted to accrue after the date of this contract; and
•
0 (iii) The following liens or encumbrances:
`J
;and
(b) Deliver to Purchaser the abstract of title to the Property or, if the title is registered, the owner's
duplicate certificate of title.
PURCHASE PRICE. Purchaser shall pay to Seller, at her resider oe
Ninety thousand and no/100th. doll 90.000,00the sum of
as and for the purchase price for the Property, payable as follows:
$18,000.00, cash in hand paid receipt of which is hereby acknowledged,
the principal balance of $72,000 shall bear interest at the rate of 8.58
per annum frrxn the date of possession and shall be paid as follows:
$1,500 on the first day of Septeuber, 1986, and on the first day of each
nmnth thereafter to and including the first day of July, 1991. The entire
unpaid prirxdpal balance and any accrued interest thereon shall be due and
payable on the first day of August, 1991.
Possession of the premises shall be given to the buyer on the first day of
August, 1986. The buyer shall have the right to reaove the buildings fran
the premises.
The purchase price stated herein is allocated $60,000 to lot 2, and $30,000
to lot 3, block 9, City of Hutchinson, South Half.
5. PREPAYMENT. Unless otherwise provided in this contract, Purchaser shall have the right to fully or
partially prepay this contract at any time without penalty. Any partial prepayment shall be applied
first to payment of amounts then due under this contract, including unpaid accrued interest, and the
balance shall be applied to the principal installments to be paid in the inverse order of their maturity.
Partial prepayment shall not postpone the due date of the installments to be paid pursuant to this
contract or change the amount of such installments.
6. REAL ESTATE TAXES AND ASSESSMENTS. Purchaser shall pay, before penalty accrues, all real
estate taxes and installments of special assessments assessed against the Property which are due and
payable in the year 1992 and in all subsequent years. Real estate taxes and installments of special
assessments which are due and payable in the year in which this contract is dated shall be paid as
follows:
Seller shall pay 7 /12ths of the taxes and installments of special
assessments, if any, and the buyer shall pay the balance, for the year of 1986.
Seller warrants that the real estate taxes and installments of special assessments which were due and
payable in the years preceding the year in which this contract is dated are paid in full.
7. PROPERTY INSURANCE. -
(a) INSURED RISKS AND AMOUNT. Purchaser shall keep all buildings, improvements and
fixtures now or later located on or a part of the Property insured against loss by fire, extended ,
coverage perils, vandalism Malicious mischief and, if applicable, steam boiler explosion for at
least the amount of
If any of the buildings, improvements or fixtures are located in a federally designated flood prone
area, and if flood insurance is available for that area, Purchaser shall procure and maintain flood
insurance in amounts reasonably satisfactory to Seller.
(b) OTHERTERMS. Theinsurance policy shall contains loss payableclause in favor ofSellerwhich
provides that Seller's right to recover under the insurance shall not be impaired by any acts or
omissions of Purchaser or Seller, and that Seller shall otherwise be afforded all rights and
privileges customarily provided a mortgagee under the so- called standard mortgage clause.
• (c) NOTICE OF DAMAGE. In the event of damage to the Property by fire or other casualty,
Purchaser shall promptly give notice of such damage to Seller and the insurance company.
8. DAMAGE TO THE PROPERTY,
(a) APPIJCA71ON OF INSURANCE PROCEEDS. If the Property is damaged by fire or other
casualty, the insurance paoceede paid on account of such damage shall be applied to payment of
the amounts payable by Purchaser under this contract, even if such amounts are not then due to be
paid, unless Purchaser makes a permitted election described in thenextparagraph . Such amounts
shall be fiat applied to unpaid accrued interest and neat to the installments to be paid as provided .
in this contract in the inverse order of their maturity. Such payment shall not postpone the due -
date of the installments to be paid pursuant to this contract or change the amount of such -
installments. The balance of insurance proceeds, if any, shall be the property of Purchaser.
(b) PURCHASER'S ELEMON TO REBUILD. If Purchaser is not in default under this contract, or
after curing any such default, and if the mortgagees, in any prior mortgages and sellers in any
• prior contracts for deed do not require otherwise, Purchaser may elect to have that portion of such
insurance proceeds necessary to repair, replace or restore the damaged Property (the repair work)
deposited in escrow with a bank or title insurance company qualified to do business in the State of
Minnesota, or such other party e s may be mutually agreeable to Seller and Purchaser. The election
may only be made by written notice to Seller within sixty days after the damage occurs. Also, the
election will only be permitted if the plane and specifications and contracts for the repair work are
• approved by Seller, which approval Seller shall not unreasonably withhold or delay. If such a
permitted election is made by Purchaser, Seller and Purchaser shall jointly deposit, when paid,
such insurance proceeds into such escrow. If such insurance proceeds are insufficient for the
repair work, Purchaser shall, before the commencement of the repair work, deposit into such
escrow sufficient additional money to insure the full payment for the repair work. Even if the
insurance proceeds are unavailable or are insufficient to pay the cost of the repair work,
Purchaser shall at all times be responsible to pay the full coat of the repair work. All escrowed
funds shall he disbursed by the escrowee in accordance with generally accepted sound
construction disbursement procedures. The costs incurred or to be incurred on account of such
escrow shall be deposited by Purchaser into such escrow before the commencement of the repair
- work. Purchaser shall complete the repair work as soon as reasonably possible and in a good and
workmanlike manner, and in any event the repair work shall be completed by Purchaser within
one year after the damage Occurs. If, following the completion of and payment for the repair work,
there remain any undisbursed escrow funds, such funds shall be applied to payment of the
amounts payable by Purchaser under this contract in accordance with paragraph S (a) above.
9. INJURY OR DAMAGE OCCURRING ON THE PROPERTY.
(a) LIABILITY. Seller shall be free from liability and claims for damages by reason of injuries
occurring on or after the date of this contract to any person or persons or property while on or about
the Property. Purchaser shall defend and indemnify Seller from all liability, loss, costs and
obligations, including reasonable attorneys' fees, on account of or arising out of any such injuries.
However, Purchaser shall have no liability or obligation to Seller for such injuries which are
caused by the negligence or intentional wrongful acts or omissions of Seller.
(b) LIABILITY INSURANCE. Purchaser shall, at Purchaser's own expense, procure and maintain
liability insurance against claims for bodily injury, death and property damage occuring on or
about the Property in amounts reasonably satisfactory to Seller and naming Seller as an
additional insured.
10. INSURANCE, GENERALLY. The insurance which Purchaser is required w procure and maintain
pursuant to paragraphs 7 and 9 of this contract shall be issued by an insurance company or companies
licensed to do business in the State of Minnesota and acceptable to Seller. The insurance shall be
maintained by Purchaser at all times while any amount remains unpaid under this contract. The
insurance policies shall provide for not less than ten days written notice to Seller before cancellation,
non - renewal, termination or change in coverage, and Purchaser shall deliver to Seller a duplicate
original or certificate of such insurance policy or policies.
Il. CONDEMNATION. If all or any part of the Property is taken in condemnation proceedings instituted
under power of eminent domain oris conveyed in lieu thereof underthreat of condemnation, the money
paid pursuant to such condemnation or conveyance in lieu thereof shall be applied to payment of the
amounts payable by Purchaser under this contract, even if such amounts are not then due to be paid.
Such amounts shall be applied first to unpaid accrued interest and next to the installments to be paid
as provided in this contract in the inverse order of their maturity. Such payment shall not postponethe
due date of the installments to be paid pursuant to this contract or change the amount of such
• installments. The balance. if any, shall be the property of Purchaser.
12. WASTE, REPAIR AND LIENS. Purchaser shall not remove or demolish any buildings, im-
provements or fixtures now or later located on or a part of the Property, nor shall Purchasercommit or
allow, waste of the Property. Purchaser shall maintain the Property in good condition and repair.
Purchaser shall not create or permit to accrue liens or adverse claims against the Property which
constitute a lien or claim against Seller's interest in the Property. Purchaser shall pay to Seller all
amounts, costs and expenses, including reasonable attorneys' fees, incurred by Seller to remove any
such liens or adverse claims.
13. DEED AND MORTGAGE REGISTRY TAXES. Seller shall, upon Purchaser's full performance of this
contract, pay the deed tax due upon the recording or filing of the deed to be delivered by Seller to
Purchaser. The mortgage registry tax due upon the recording or filing of this contract shall be paid by
the party who records or files this contract; however, this provision shall not impair the right of Seller
to collect from Purchaser the amount of such tax actually paid by Seller as provided in the applicable
law governing default and service of notice of termination of this contract.
14. NOTICE OF ASSIGNMENT. If either Seller or Purchaser assigns their interestin the Property, a copy
of such assignment shall promptly be furnished to the non - assigning party.
15. PROTECTION OF INTERESTS. If Purchaser fails to pay any sum of money required under the terms
of this contract or fails to perform any of Purchaser's obligations as set forth in this contract, Seller
may, at Seller's option, pay the same or cause the same to be performed, or both, and the amounts so
paid by Seller and the coat of such performance shall be payable at once, with interest at the rate stated
in paragraph 4 of this contract, as an additional amount due Seller under this contract.
If there now exists, or if Seller hereafter creates, suffers or permits to accrue, any mortgage,contract for
deed, lien or encumbrance against the Property which is not herein expressly assumed by Purchaser,
and provided Purchaser is not in default under this contract, Seller shall timely pay all amounts due
thereon, and if Seller fails to do so, Purchaser may, at Purchaser's option, pay any such delinquent
amounts and deduct the amounts paid from the installment(s) next coming due under this contract.
16. DEFAULT. The time of performance by Purchaser of the terms of this contractis an essential part of
this contract. Should Purchaser fail to timely perform any of the terms of this contract, Seller may, at
Seller's option, elect to. declare this contract cancelled and terminated by notice to Purchaser in
accordance with applicable law. All right, title and interest acquired under this contract by Purchaser
shall then cease and terminate, and all improvements made upon the Property and all payments made
by Purchaser pursuant to this contract shall belong to Seller as liquidated damages for bre ach of this
contract. Neither the extension of the time for payment of any sum of money to be paid hereunder nor
any waiver by Seller of Seller's rights to declare this contract forfeited by reason of any breach shall in
any manner affect Seller's right to cancel this contract because of defaults subsequently occurring, and
no extension of time shall be valid unless agreed to in writing. After service of notice of default and
failure to cure such default within the period allowed by law, Purchaser shall, upon demand, surrender
possession of the Property to Seller, but Purchaser shall be entitled to possession of the Property until
the expiration of such period.
17. BINDING EFFECT. The terms of this contract shall run with the land and bind the parties hereto and
their successors in interest.
18. HEADINGS. Headings of the paragraphs of this contract are for Convenience only and do not define,
limit or construe the contents of such paragraphs. •.
19. ASSESSMENTS BY OWNERS' ASSOCIATION. If the Property is subject to a recorded declarafion
providing for assessments to be levied against the Property by any owners' association, which
assessments may become a lien against the Property if not paid, then:
(a) Purchaser shall promptly pay, when due, all assessments imposed by the owners' association or
ether governing body as required by theprovisions of the declaration or other related documents;
and
(b) So long as the owners' association maintains a master or blanket policy of insuranceagainatfire,
extended Coverage perils and such other hazards and in such amounts as are required by this
contract, then:
W Purchaser's obligation in this Contract to maintain hazard insurance coverage on the
Property is satisfied; and
(ii) The provisions in paragraph 8 of this contract regarding application of insurance proceeds
shall be supemeded by the provisions of the declaration or other related documents; and
(iii) In the event of a distribution of insurance proceeds in lieu of restoration or repair following an
insured casualty loss to the Property, any such proceeds payable to Purchaser are hereby
assigned and shall be paid to Seller for application to the sum secured by this contract, with
the excess, if any, paid to Purchaser-
20. ADDITIONAL TERMS:
SELLER(S)
Eileen Goeders tcErinerly krxran as
F' 1INen Rnerh
State of Minnesota
J,.
County of Mcleod
PURCHASER
BY
its
BY _
Its
RI WWRFf
The foregoing instrument was acknowledged before me this —day of April
by and
the and of
a NRm pal �,, p ,rR .adn„ under the laws of Mi m.ecnta
on behalf of the
NOTARIAL 4rAMP OR SEAL )O0. OTNRR TITLE OA MNMJ
State of Minnesota
x.
County of LKcI'aOd il
SIGNATURE OF NOTARY PUBLIC OR OTHER OFFICIAL
The fore ofp g instru ent was acknolivledged beforeBpag this °"`tlBy of April 19 86
by 11eeR n , former y xrLVxr1 as 1 een 1�i, a wl'�le
r NOTARIALSTAMP OR SEAL ,OROTHERTITLE OR RANK,
AIX'SF, WILLIAM D. HAAS
Y��t����tttLLLSfylt NOTARY PUBLIC - MINNESOTA
`,ARV MCLEOD COUNTY
My Lammlssmn Erp-5 Jum 31. 199
THIS INSTRUMENT WAS DRAFTED BY (NAME AND ADDRESS):
W. B. HAAS IAW OFFICE
212 Citizens Bank Building
P.O. Box 157
Hutchinson, MN 55350 -0157
Phone (612) 587 -4777
Tn S1aW(( RKRawipopely(axrMinitasilsms Wwwta'.
CITY OF HUICHIMON
37 Washirgtzxt Ave W
Hutchin cri, MN 55350
•
FAILURE TO RECORD OR FILE THIS CONTRACT FOR DEED MAY GIVE OTHER PARTIES
PRIORITY OVER PURCHASER'S INTEREST IN THE PROPERTY. •
