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cp02-08-2011 cCity Council Workshop -February 8, 2011 — d:00 p.m. — Continuation of City Council Review AGENDA REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, FEBRUARY 8, 2011 1. CALL TO ORDER — 5:30 P.M. 2. INVOCATION — Shalom Baptist Church 3. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS 5. MINUTES (a) REGULAR MEETING OF JANUARY 25, 2011 Action — Motion to approve as presented 6. CONSENT AGENDA ( Purpose: onlyfor items requiring Council approval by external entities that would otherwise have been delegate tot e City Administrator. Traditionally, items are not discussed) (a) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 13846—A RESOLUTION FOR APPROVAL OF PARKLAND EXCHANGE (b) CONSIDERATION FOR APPROVAL OF ISSUING TEMPORARY LIQUOR LICENSE TO HUTCHINSON JAYCEES ON APRIL 30, 2011, AT HUTCHINSON CIVIC ARENA (c) CONSIDERATION FOR APPROVAL OF SETTING BOARD OF EQUALIZATION MEETING FOR APRIL 20,201 I, AT 4:30 P.M. AT THE HUTCHINSON CITY CENTER (d) CONSIDERATION FOR APPROVAL OF ISSUING TOBACCO LICENSE TO KARIM MISHAL LOCATED AT 725 BALTIMORE AVENUE (e) SUMMARY OF CLOSED MEETING PROCEEDINGS FOR THE CITY ADMINISTRAIOR PERFORMANCE APPRAISAL SESSION HELD ON JANUARY 25, 2011 (f) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Action - Motion to approve consent agenda 7. PUBLIC HEARINGS — 6:00 P.M. - NONE 8. COMMUNICATIONS RE UESTS AND PETI'T'IONS (Purpose: to provide Council with information necessary to cra t wise policy. Always oo ing toward t e uture, not monitoring past) 9. UNFINISHED BUSINESS 10. NEW BUSINESS (a) DISCUSSION OF DEVELOPING A PLAN FOR A SEASONAL FORESTRY PROGRAM Action — CITY CO(, NCIL AGENDA — FEBRUARY 8, 2011 (b) DISCUSSION OF DEVELOPING A PLAN FOR COMMERCIAL AND INDUSTRIAL FIRE INSPECTIONS Action — (c) DISCUSSION OF ESTABLISHING A FORMAL EMERALD ASH BORER FUND Action - (d) CONSIDERATION FOR APPROVAL OF SETTING JOINT MEETING WITH HUTCHINSON UTILITIES COMMISSION ON FEBRUARY 23, 201 I, AT 4:00 P.M. Action — Motion to reject — Motion to approve 11. GOVERNANCE (Purpose: to assess past organizational performance, developpolicy that guides the organisation and Council and manage the logistics of the Council. May include monitoring reports, policy development and governance process Items.) (a) HUfCHINSON ECONOMIC DEVELOPMENT AUTHORITY 2010 ANNUAL REPOR "f PRESENTATION — MILES SEPPELT, EDA DIRECTOR (b) FIRE DEPARTMENT MONTHLY REPORT FOR JANUARY 2011 (c) HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM NOVEMBER 22, 2010 (d) SIDEWALK SNOW REMOVAL MONTHLY REPORT FOR JANUARY 2011 No action required for these items. 12. MISCELLANEOUS 13. ADJOURN MINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, JANUARY 25, 2011 I. CALL TO ORDER -5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Mary Christensen, Eric Yost, Bill Arndt and Chad Czmowski. Others present were Jeremy Carter, City Administrator, Marc Sebora, City Attorney and Kent Exner, City Engineer, 2. INVOCATION — Pastor Rick Stapleton, Shalom Baptist Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS 5. MINUTES (a) REGULAR MEETING OF JANUARY 11, 2011 Motion by Arndt, second by Christensen, to approve the minutes as presented. Motion carried unanimously. 6. CONSENT AGENDA (Purpose. only for items requiring Council approval by external entities that would otherwise have been delegatec to the City Administrator. Traditionally, items are not discussed) (a) RESOLUTIONS AND ORDINANCES L RESOLUTION NO. 13843 — RESOLUTION APPROVING REVISED ASSESSMENT ROLL (SA- 5074) (b) CONSIDERATION FOR APPROVAL OF TRANSFERRING TOBACCO LICENSE ISSUED TO SMOKES4LESS #5 INC. FROM 1310 HWY 15 SOUTH TO 114 MAIN STREET NORTH (c) CONSIDERATION FOR APPROVAL OF REVISING CITY POLICY NO. 1.12 — DELEGATION OF' AUTHORITY DURING CITY ADMINISTRATOR'S ABSENCE (d) CONSIDERATION FOR APPROVAL OF ITEMS FOR INDUSTRIAL BOULEVARD SE RECONSTRUCTION AND ENERGY PARK BITUMINOUS WEAR COURSE PI,ACFMENT PROJECTS (LETTING NO. 2, PROJECT NO. 11 -02 & 11 -03) — ORDERING PREPARATION OF REPORT ON IMPROVMENNT, RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT (e) CONSIDERATION FOR APPROVAL OF ITEMS FOR TRUNK HWY 15 WATER MAIN LINING PROJECT (LETTING NO. 6, PROJECT NO. 11 -09) — ORDERING PREPARATION OF REPORT ON IMPROVEMENT, RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT (f) CONSIDERATION FOR APPROVAL OF ISSUING SHORT -TERM GAMBLING LICENSE TO MCLEOD COUNTY PHEASANTS FOREVER ON MARCH 26, 2011, AT MCLEOD COUNTY FAIRGROUNDS (g) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Item 6(e) was pulled for separate discussion. 5ta� CITY COUNCIL MINL'TF,S -- JANUARY 2j, 2011 Motion by Czmwoski, second by Arndt, to approve consent agenda with the exception of Item 6(e). Motion carried unanimously. Item 6(e) had further discussion. Council Member Yost asked if anything was going to be done differently with this project as opposed to the first time it was bid out. Kent Exner, City Engineer, explained that the scope of work will be revised, as well as identifying the items in the project that will be bid out. In addition, hopefully the bids will come in more favorable to the City. Mayor Cook asked if other end users have been surveyed as it relates to bidding projects like this (multiple Cities being the project owners). Mr. Exner noted that research has been done via consultant. Motion by Yost, second by Cook, to approve Item 6(e). Motion carried unanimously. 7. PUBLIC HEARINGS — 6:00 P.M. - NONE 8. COMMLiNICATIONS, REQUESTS AND PETITIONS (Purpose. to provide Council with information necessary to craft wise policy. Ahvays ooking toward t e future, not monitoring past) (a) DISCUSSION OF PROPOSED FORESTRY MAINTENANCE POLICY John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that a forestry maintenance policy has been developed to review hazards, removals, pruning and planting. Mr. Olson spoke to the retirement of the City forester and the expertise that has been lost. Mr. Olson noted that contractors will be used more often than in the past, which has been included in the 2011 budget. Unfortunately, not as much customer service will be offered for residents and instead they will be referred to the University of Minnesota extension office and other resources. Mayor Cook suggested that perhaps a tree care licensing program should become a priority with the loss of the city forester's expertise. Mayor Cook questioned the language in the policy that states "if resources permit ". Mayor Cook asked how programs are kept as priorities. Mr. Olson spoke to the essential services and critical services, of which forestry has been identified as. Council Member Yost asked if there was any need for an explanation of roles and expectations of a consultant. Mr. Olson explained that consultants' necessity is identified with each program. One of the biggest changes instituted with this policy is the contact with the public. 9. UNFINISHED BUSINESS (a) CONSIDERATION FOR APPROVAL OF RENEWING 2011 MEMBERSHIP TO COALITION OF GREATER MINNESOTA CITIES Mayor Steve Cook noted that this topic has been reviewed a couple of times. The topic was not discussed during 2011 budget discussions, but rather at the end of the year when the budget was being adopted. This topic was discussed at a workshop a couple of weeks ago and some Council Members noted that they see a value in being a member to the Coalition for the services that they provide, especially as it relates to local government aid. Mayor Cook reminded the Council that the mayor of Alexandria, former president of the Coalition, encouraged Hutchinson to maintain membership. Council Member Christensen noted that she feels the membership to the Coalition can only benefit the City because the City needs a voice at the legislature. Council Member Yost noted that he is still not in support of being a member to the Coalition at this time due to financial conditions. He expressed that the Coalition will continue on whether Hutchinson maintains membership or not. Mayor Cook expressed the benefits that the Coalition accomplished over the last two years with local government aid. Motion by Czmowski, second by Cook, to approve renewal of membership to Coalition of Greater Minnesota Cities for 2011. Council Member Arndt noted that he spoke with Senator Newman today. 5�j C'17 Y COUNCIL MINUTES - JANUARY 25, 2011 Newman expressed to Arndt that the legislature is tied up with lobbyists and he requested that the group Arndt is involved in on another matter contact Newman directly. Roll call vote was taken: Christensen - aye; Arndt- nay; Yost- nay; Czmowski -aye; Cook- aye. Motion carried') to 2. 10. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 13844- ARESOLUTIONAUTIfORIZING BUSINESS DEVELOPMENT PUBLIC INFRASTRUCTURE GRANT APPLICATION Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that a grant is availabte for a potential project that has been identified. The grant money would be used to aid in the reconstruction of Industrial Blvd. and bring water & sanitary sewer to the 3.09 acre lot in the Industrial Park. Motion by Arndt, second by Christensen, to approve Resolution No. 13844 - Resolution authorizing business development public infrastructure grant application. Motion carried unanimously. (b) CONSIDERATION FOR APPROVAL OF THE POSITION OF PART -TIME HUMAN RESOURCES ADMINISTRATIVE TECHNICIAN Jeremy Carter, City Administrator, presented before the council. Mr. Carter explained that currently the City has two positions within the organization, a part-time Human Resources Technician and a part -time Administrative Technician each working 20 hours per week. Both of these positions have been vacated by the current employees which have caused staff to evaluate the positions. The proposal is to combine the positions into one, with the maximum number of hours being 29 hours per week. Council Member Arndt asked about recently laid off employees being eligible for the position. Brenda Ewing, Human Resources Director, noted that all laid off employees were made aware that they were being terminated, therefore they would have to apply for any future openings. Motion by Yost, second by Czmowski, to approve the position of part -time Human Resources Administrative Technician. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 13845 - A RESOLUTION IN SUPPORT OF LOCAL GOVERNMENT AID FUNDING Mayor Cook noted this Resolution speaks to the benefit of local government aid and requests that the legislature preserve LGA at the maximum level of possible based on currently certified levels and any reduction in LGA be done fairly, with city input, and only as part of a comprehensive solution to the State budget. This Resolution will be sent to local legislators as well as legislative leaders. Motion by Czmowski, second by Christensen, to approve Resolution No_ 13845 - Resolution in support of local government aid funding. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF SETTING COUNCIL WORKSHOP TO CONTINUE POLICY GOVERNANCE REVIEW Mayor Cook noted that tonight's workshop needs to be continued and also the joint HUC meeting needs to be set in addition to this workshop. Motion by Yost, second by Cook, to set Council workshop for February 8, 2011, at 4:00 p.m. to complete the Council annual review. Motion carried unanimously. 11. GOVERNANCE (Purpose, to assesspast organizational performance, develop policy that guides the organization and Council an manage the logistics of the Council. May include monitoring reports, policy development and governance process items.) (a) HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTF,S FROM DECEMBER 22, 2010 CITYCOiJNCILMINUTES— JANUARY25, 2011 (b) CITY OF HUTCHINSON FINANCIAL REPORT FOR DECEMBER 2010 (c) CITY OF HUTCHINSON INVESTMENT REPORT FOR DECEMBER 2010 12. MISCELLANEOUS Council Member Arndt— Council Member Arndt commented that he feels the new trail on Adams Street should be a priority trail that the City maintains versus the residents. Kent Exner, City Engineer, noted that he will review the priority listing with the Public Works Manager and PRCE Director. Mayor Cook noted that there was a sidewalk previously in the same place of the trail, so residents should be used to maintaining the width of a sidewalk. Jeremy Carter — Mr. Carter noted that a meeting has been scheduled for January 31, 2011, at 7:00 a.m. with the local legislators. Motion by Arndt, second by Christensen, to set public meeting for January 31, 2011, at 7:00 a.m. with the local legislators. Motion carried unanimously. Any agenda items should be given to Mr. Carter, Mayor Cook — Mayor Cook noted that the City's local sales tax bill will be introduced in the near future at the legislature. 13. ADJOERN Motion by Arndt, second by Yost, to adjourn at 6:25 p.m. Motion carried unanimously. a SL�-� C TO: Mayor & City Council FROM: Kent Exner, DPW /City Engineer RE: Resolution for Approval of Parkland Exchange (Letting No. 1 /Project No. 06 -01) DATE: February 8, 2011 The attached `Resolution for Approval of Parkland Exchange' formailizes the conveyance of Mn/DOT property (previously purchased from the City) to the City in compensation for parklands utilized for Trunk Highway purposes (primarily stormwater detention/treatment ponds). The structure of this overall transaction was previously reviewed and approved by the City Council_ If there are any questions or concerns, City staff will be available at the upcoming City Council meeting. We recommend that the attached Resolution be approved. cc: Jeremy Carter, City Administrator & V RESOLUTION NO. 13846 RESOLUTION FOR APPROVAL OF PARKLAND EXCHANGE At the meeting of the City Council of the City of Hutchinson, held on February 8th, 2011, the following Resolution was offered by and seconded by to wit: WHEREAS, the Commissioner of Transportation has reconstructed Highway 7/22 through the City of Hutchinson, and WHEREAS, the reconstruction converted 15,402 square feet of parkland to permanent Trunk Highway right of way as shown in Exhibit "A" and Exhibit "B ", and WHEREAS, ponds receiving Trunk Highway runoff have been located in Masonic West River Park and Oddfellows Park, constituting a Trunk Highway use, and WHEREAS, the section 4(f) legislation as established under the Department of Transportation Act of 1966 (46 USC 303, 23 USC 138) provides protection for publicly owned parks, recreational areas, historic sites, wildlife and waterfowl refuges from conversion to other use. NOW, THEREFORE BE IT RESOLVED BYTHE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT the Commissioner of Transportation will provide, to the Hutchinson Park System, the parcel on Exhibit "C, approximately 4.04 acres, as compensation for parklands used for Trunk Highway purposes. Mayor, Steven W. Cook City Administrator, Jeremy J. Carter Mn /00T porsk.oel RMTi OF WAY PARCEL LAYOUT a`" "''% MINNESOTA DEPARTMENT OF TRANSPORTATION fa `wn0 Topogrophto Information reputredt Proposed R/W line & access taking. Lot lines & dimensions. Show north arrow. Outline & location of bul Icings & Improvements. Streets or highway frontage. C.S. 4308(22 = 22)902 S.P. 4302 -44 COUNTY MCLEOD PARCEL NO. 80 OWNER CITY OF HUTCHINSON Scale 1" = 100 fit. C K 2 1 5LLS _. I 9ur6 8 7 6 fE paq L {G b i a BOCK SO C.S. 4501115- 1511901 PLAT 1 Z 3 ` --------------------- h 3 L 0 C K 32 10 9 8 7 5 i Exhibit A i � �i I • n - -` ❑� �In OC 3] t� } f 9 , 4 , Layout sketch by Sip Date 06 -22 -05 Parcel No. 80 i �� s��rss:�llu(tr?[r*n®rrzmr• r1T� Z 3 ` --------------------- h 3 L 0 C K 32 10 9 8 7 5 i Exhibit A i � �i I • n - -` ❑� �In OC 3] t� } f 9 , 4 , Layout sketch by Sip Date 06 -22 -05 Parcel No. 80 i �� Mn/DOT parsk.cel MINNESOTA DEPARTMENT OF TRANSPORTATION RUGHT OF WAY PARCEL LAYOUT M Topographic Informatlon requlredl Proposed R/W Itne & access taking. Lot Imes & dimensions. Show north arrow. Outline & locatlon of buildings & improvements. Streets or highway frontage. C.S. 4302(7= 119 -22 -2) S.P. 4302 -44 COUNTY MCLEOD PARCEL NO. 206 OWNER CITY OF HUTCHINSON Scale 1" = 100 ft. N Exhibit B c.s. 43n4l7.119 -22-2� PI AT Al -A6 iP. AIM -44 RIGHT OF WAY IN TOWNSITE OF HUTCHINSON NORTH HALF PARCEL OWNER LOT BLOCI( • mwn p::i w .,. ns.n ,,.,e, umr a,�d , m nv s uw. 206. CITY OF HUTCINSON 11 '1. - 36351 1 1 C.S. 4302(7 - 119 -22 -2) PLAT 43 -47 S.P. 4302-44 206 ICITY `OF HUTCHINSON II 141 1 3951 1 1 1 FEE.- Layout sketch by Sip Date 6 -7 -05 Parcel No. 206 Y NEI /4 -SEI /4 iM CD 13� . J SE1SE1 /4 NpTLHlNSON Q O �.�o� oc a x day p w+ si 1 �' u.(0 v v x Scn[[�incOw �vEx,CU�[ xsox s � �. LK �5LaS - ,E.I.,x IIIU. e nea� i Exhibit C O �.�o� oc a x day p w+ si 1 �' u.(0 v v x Scn[[�incOw �vEx,CU�[ xsox s � �. LK �5LaS - ,E.I.,x IIIU. e nea� i February 3, 2011 CITY OF HUTCHINSON MEMO Administration Department TO: MAYOR & CITY COUNCIL FROM: JEREMY CARTER, CITY ADMINISTRATOR SUBJECT: JAYCEE HAIRBALL EVENT — APRIL 30TH, 2011 The Hutchinson Jaycees will be looking to host its 2 "d annual Hairball Concert on April 30`h, 2011. The concert will take place again at the Hutchinson Civic Arena. The first year was a huge success and profits from the event allowed the Chapter to donate and pay for almost half the cost of the new playground constructed in Jaycee Park. As is the case with a first time event, there are things that are learned that can be changed or modified to improve the event. This year the event will have a few changes: 1) The event will only be open to people of 21 years of age or older (opposed to 18 years of age or older at last year's event), 2) Additional Mini -biffs in more than one area and in a larger fenced off area will be put in place to increase the use of restrooms and to reduce the waiting period, and 3) Increasing the liquor license from 3.2 to a full liquor license will cut down on the number of bottles being opened, poured into glasses and discarded and will allow bottled beer (bud lite lime) to be purchased in keg form. In addition, the event will continue to have six Hutchinson Police officers on duty that night to ensure safety for all individuals attending the event and to ensure people returning safely to vehicles parked in the Mall parking lot or along residential streets. Parking on residential streets, the flow of traffic and the notification to area residents will continue to be the same as last year. The Jaycees committee and the Hutchinson Police department are in the process of finalizing safety issues and event details and can provide a follow -up at the next council meeting. Thanks Cc: Dan Hatten, Police Chief U(b) TENS C£ WAiC` Fa MINNE Minnesota Department of Public Safety ALCOHOL AND GAMBLING ENFORCEMENT DIVISION 444 Cedar Street Suite 133, St. Paul MN 55101 -5133 (651) 201 -7507 Fax (651) 297 -5259 TTY (651) 232 -6555 W W W.DPS.STATE.MN.US APPLICATION AND PERMIT FOR A I TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE TYPE OR PRINT INFORMAL ION l NAME OF ORGANIZATION DATE ORGANIZED TAX EXEMPT NUMBER Nufe�iiNSOrr cTa Gefs 411 / �' /- /ygoeaeo STREET .ADDRESS CITY STATE ZIP CODE Do /,3ox G.?y Ak.4112ren ff/V .ss3 _0 NA--ME- OF PERSON MAKING APPLICATION BUSINESS PHONE HOME PHONE // r/�rEm Larler (-�)z3y -5 5// moo) ySS -02//6 DATES LIQUOR WILL BE SOLD TYPE OF O ION 0 2011 B HART BLE RELI [ THERN NPR FIT ORGANIZATION OFFICER'S NAME ADDRES A41ele �/e�Son -/`Ies. i/enf // /91 Be,X 62 /rufC/ii il.mn /%N SS3So ORGANIZATION OFFICER'S NAME ADDRESS ,%rem �air�� — Treasurer Ar 19OX 0/.? ORGAN IZA ION OFFICER'S NAME ADDRESS Location license will be used. If an out area, d/escribe 9.T0 /7prrr•nmTOh .S1iceT .SLf/ 7L/!i%/30n /L%/i/ SS4 S'a e Sgmoor Ci' ✓/ c I'i�re/!a Will the applicant contract for intoxicating liquor service? If so, gi the name and address of the liquor licensee providing the service. // .fOr// /ice W /'J� bt y'r0 ✓ /�ed /ve W &e w �o /Jos 17 7-KRY J9d Tar, /��, G Will the applicant carry liquor liability insurance? If so, please provide the carrier's name and amount of coverage. Yes Zr/saraarr 4_ 2es7gn a 41 0cl Cloc9 APROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL & GAMBLING ENFORCEMENT CITY /COUNTY DATE APPROVED CITY FEE AMOUNT LICENSE DATES DATE FEE PAID SIGNATURE CITY CLERK OR COUNTY OFFICIAL APPROVED DIRECTOR ALCOHOL AND GAMBLING ENFORCEMENT NOTE: Submit this form to the city or county 30 days prior to event. Forward application signed by city and /or county to the address above. If the application is approved the Alcohol and Gambling Enforcement Division will return this application to be used as the License for the event PS-09U79 (05/06) �, (I) A� ° ® CERTIFICATE OF LIABILITY INSURANCE 1 1/19/2011 ce' THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Insurance By Design, LLC 14041 Burnhaven Drive CONTACT Melanie Skime NAME: _ s: (952) 808 -7002 _ III FAX N °1. (952)1108 -71)(04 RE,.el.nies@insurancedesign.net ADDHFSS :melanies ®insurancedesign.net _ PRODUCER 00000001 MERJDa Suite 100 INSURER(S) AFFORDING COVERAGE NAICN Burnsville MN 55337 INSURED INSURERA:Flrst Specialty Insurance Cor $ 1,000,000 INSURERS: X COMMERCIAL GENERAL LIABILITY - INSURERC:___ Minnesota Jaycees, Inc INSURER D: DAMAGETORENTEb PREMISES Ea occurrence 2101 West Highway 13 INSURER E: CLAIMSAIADE XIOCCUR Athletic Part INSURER F: IIRG 15176 Burnsville MN 55337 COVERAGES CERTIFICATE NUMBER- CL1091400663 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED A13OVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR -- rypE OF AD�DL SUBR -' POLICY NUMBER POLICY MMIDDIYYYY _ POLICY EXP MMIDDNYYY LIMITS I - LuAnn Paulet /MKS GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 X COMMERCIAL GENERAL LIABILITY - DAMAGETORENTEb PREMISES Ea occurrence $ 50,000 A CLAIMSAIADE XIOCCUR Athletic Part IIRG 15176 9/22/2010 9/22/2011 MEO EXP;Any one person) $ 5,000 PERSONAL& ADV INJURY - E 1,000,080 �X��Excl n - _ l $2,500 Deductible GENERAL AGGREGATE $ 11000,000 GEN' L AGGREGATE LIMIT APPLIES PER. PRODUCTS- COMPIOP AGG $ 2,000,000 $ I POLICY � PRO- X LOG CT AUTOMOBILE LIABILITY I COMBINED SINGLE LIMIT (Ea accident) $ ANY AUTO BODILY INJURY (Per person) $ ALL OVMED AUTOS BODILY IN (Per accident) $ SCHEDULED AUTOS HIRED ALTOS I I TY DAMADAMA PROPERGE (Per accident) $ $ NON -OANED AUTOS UMBRELLA LIAR OCCUR EACH OCCURRENCE _ S AGGREGATE S - -y EXCESS LIAB _ CLAIMS -MADE 'DEDUCTIBLE —. �— S RETENTION $ WORKERS COMPENSATION 1 AND EMPLOYERS' LIABILITY yIN ANY PROPRIETOR /PARTNERIEXECUTIVE WC STATU- OF H -' 4 E L EACH ACCIDENT $ — "- EJ_. DISEASE - EA EMPLOYE -- 8 . _ OFFICERIMEMBER EXCLUDED' ❑'NIA (Mandatary in NH) E.L. DISEASE - POLICY LIMIT $ 1 es, descnbe under DESCRIPTION OF OPERATIONS below A Liquor Liability IRG 15176 19/22/2010 9/22/2011 Each C.I.P. $1,000,000 General Aggregate $1,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS) VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space Is required) Provides evidence of insurance for the Hutchinson Jaycees as respects event to be held April 30, 2011. The City of Hutchinson is listed as Additional Insured. CFQTIFICATF Hru nFR CANCELLATION ACORD 25 (2009109) © 1988 -2009 ACORD CORPORATION. All rights reserved. INS025(200909) The ACORD name and logo are registered marks of ACORD SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. City of Hutchinson Hutchinson, MN AUTHORIZED REPRESENTATIVE I - LuAnn Paulet /MKS ACORD 25 (2009109) © 1988 -2009 ACORD CORPORATION. All rights reserved. INS025(200909) The ACORD name and logo are registered marks of ACORD OFFICE OF COUNTY ASSESSOR TO THE CLERK OF THE CITY OF HUTCHINSON McLEOD COUNTY, MINNESOTA: NOTICE IS HEREBY GIVEN, That the 20th day of April 2011 at 4:30 o'clock P.M., has been fixed as the date for the meeting of the Board of Appeal in your City for said year. This Meeting should be held in your office as provided by law. Pursuant to the provisions of Minnesota Statutes Section 274.03, you are required to give notice of said meeting by publication and posting, no later than ten days prior to the date of said meeting. Given under my hand this 14th day of January 2011 114 I A"L 1, Sue Schulz, County Ass&sor 0 McLeod County, Minnesota Filed in my office this day of 20 Clerk i i ( (C) MEMORANDUM POLICE / EMERGENCY MANAGEMENT SERVICES TO: Mayor and Council FROM: Chief Dan Hattenjg DATE: January 24, 2011 RE: Consent Agenda — Tobacco License Application — Karim Mishal A background check was conducted on Karim Mishal in reference to his obtaining a tobacco license in the City of Hutchinson. Mr. Mishal is planning to open a tobacco shop at 725 Baltimore Avenue. Mr. Mishal does not have a criminal history record. Hutchinson Police Services and the other Logis member cities have not had contact with him. There have been several court claims filed against Mishal none of which would preclude him from obtaining this license. It would be my recommendation to grant the tobacco license to Karim Mishal. 2011 -01 -0001 (-�W) LI yof -'%OCIVE F P-4 I ^LI I I t Hassan StreeL Southeast of License Fee; S175.00 Hutchinson, NN 55350 License Year: ;(310) 587-5151/Fax: (320) 234- 4240 City of Hutchinson Application for License to Sell Tobacco at Retail Applicant Information k;q -A AfipTicarif Name Phone'MNbW !A lijant Ad L rate � tesss '4 ty • a Business Information IVWX 4��- A4 iq i; Rusin6s PloKe Num&er Business Name State zip - 7 ddr'ess ji� L�'z 1 if4s�s AI/JI/ , 1 Contact: 1,714.1, i Co orate Information (if applicable) C6por5te Name -'Mporale Phone Number K -Coipoicite.Udress State ZIP z The following items need to be completed and/or attached in order for the application to be processe d- Application fee paid in full (check or money order): iyes ❑ no Application completed in full and signed: -Ayes ❑ no I hereby certify that I have completely filled out the entire above application, together and that the application is true, correct, and accurate. Signarure ofApplicanr Date Print Name Tille VOTE: No application will beforivarded to the City Council unless received two weeks prior to the regular Council meeting, filled out in completion, andjeepqvinent is attached. I internal Use Unly Building: ❑ approved Notes: Fire ❑ approved ❑ denied Notes Police ❑ approved ❑ denied 'Notes: City Council 0 approved ed Q denied Notes: rl,ba.,, d, HUTCHINSON CITY COUNCIL SUMMARY OF CLOSED MEETING PROCEEDINGS CITY ADMINISTRATOR PERFORMANCE APPRAISAL January 25, 2011 On January 25, 2011, the Hutchinson City Council closed its meeting at 4:25 p.m. to conduct the performance appraisal for the City Administrator, Jeremy Carter. Individuals present included the Hutchinson Mayor and City Council (Steve Cook, Bill Arndt, Mary Christensen, Chad Czmowski, and Eric Yost), City Administrator Jeremy Carter, City Attorney Marc Sebora, and Brenda Ewing, Human Resources Director. Mr. Carter exercised his right to close the proceedings to the public. The Council reviewed with Mr. Carter his performance for the period of January 1, 2010, to present. The appraisal system allows an individual to be rated on the scale of ratings range including Unsatisfactory (1), Needs Improvement (2), Meets Job Requirements (3), Exceeds Job Requirements (4), and Outstanding (5). The consensus of the Council is that Mr. Carter's cumulative performance for the review period was found to be outstanding on the ratings scale. Mr. Carter presented to the Council specific achievements for the review period. The list of achievements included the following: Completing the financial statements in- house. The auditors are not to be creating these documents. This resulted in an approximate $2,000 budget savings. It is the intent to complete these documents in -house for the 2010 budget. Create City Investment Policy Implement a City -Wide Accounting policy Manual. This is in the final stage review. Refining the 5 -year Budget & Guidelines The other miscellaneous accomplishments included: 1. Hospital bond refinancing / City bond refinancing 2. Obtaining short and long term financing for hospital and the senior care project 3_ Increasing utility billing ACH payment participation and reviewing the potential of on- line payments. Working to secure a 3` party vendor to process bank payment files. The objectives are to improve efficiencies and to maintain the current utility billing staffing levels. 4. Balance the 2011 General Fund budget 5. Adopted the fund balance accounting guidelines as part of GASB 6. Worked with Administrator Plotz and Human Resources to control health care costs and promote an effective wellness program 7. Improved cost accounting controls at Creek Side and general refinement of the operation Mr. Carter then reviewed with the Council his recommendations for City Administrator initiatives for 2011. The list provided includes: cc (- -e) I . Implementation of a formal employee wellness program (3 year plan). The stated goal is to reduce health care costs by 10% by year three of the program. 2. Implementation of a formal volunteer program 3. Review of internal City policies, recommend and implement required updates, changes.. and /or corrections. The goal is consistency, adherence to policy and excellence in the administration of policies as well as the promotion of professionalism, values and ethics. 4. Initiate working toward implementing GFOA Budgeting Format with utilization of a Metric System of measurements. The ultimate goal is to achieve the GFOA certification in this area. 5. Develop and Implement a City -wide Master Facilities Plan that objectively prioritizes our facilities and necessary maintenance and repairs and matches the available funding to the list. This initiative ties in with the 5 -year CIP plan. Human Resources Director, Brenda Ewing, informed the City Council that Mr. Carter's current pay rate is at compa ratio 100.0 on the 2011 pay grid. Depending on the performance appraisal cumulative rating determined by the Council, Mr. Carter is eligible for a pay rate increase from 0% to 4 %. Motion by Mr. Czmowski to determine a performance appraisal score of 4.30 that equates to a 4% increase effective March 6, 2011, second by Ms. Christensen. There was discussion regarding the current salary rate. Motion passed unanimously. Motion by Mr. Czmowski, second by Mr. Arndt to adopt the five (5) primary initiatives presented by Mr. Carter for consideration at City Administrator review to be conducted in November /December 2011. The motion passed unanimously. Motion by Mr. Arndt, second by Mr. Yost to open the closed proceedings at 527 p.m. The motion passed unanimously. Motion by Mr. Arndt, second by Mr. Czmowski to adjourn the meeting at 5:28 p.m. The motion passed unanimously. (S C-e) RSSCKREG LOG22001VO Check # 163931 163932 163933 163935 163936 163937 163938 163939 163940 163941 163942 163943 163944 163945 163946 163947 163948 163949 163950 163951 163952 163953 163954 163955 163956 163957 163958 163959 163960 Ck Date 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 Amount 75.00 1,166.49 3,000.00 509.38 275.00 146.33 10.62 CITY OF HUTCHINSON Council Check Register Vendor/ Explanation 10,000 LAKES CHAPTER A -Z RESTAURANT EQUIP CO ABDO, DICK & MEYERS ACE HARDWARE ADVANTAGE PLUMBING & HEATING I AG SYSTEMS ALBERTS, MARK 100.00 AMEM 149.86 AMENT, ADAM 166.16 AMERICAN BOTTLING CO 64.75 AMERICAN FAMILY INS CO. 350.00 AMERICAN LEGAL PUBLISHING CORP 264.94 AMERICAN MESSAGING 580.00 AMERICAN PUBLIC WORKS ASSN 57.50 AMERICAN WATERWORKS ASSOC. 72.37 AMERIPRIDE LINEN & APPAREL 7,942.52 ANDERSON CHEMICAL COMPANY 102.70 ARAMARK UNIFORM SERVICE 178.87 ARCTIC GLACIER PREMIUM ICE INC 309.00 ASCAP 2,031.29 B. W. WELDING 232.00 BAHE, MICHAEL 3,159.22 BELLBOY CORP 529.31 BERGER PLUMBING HEATING AC 1,417.73 BERNICK'S 1,110.00 BERNICK'S FOOD SERVICE 111.55 BRANDON TIRE CO 290.00 BREYER, TODD 670.00 BROTHERS FIRE PROTECTION COMPA 2/8/2011 Account Description DUES & SUBSCRIPTIONS OPERATING SUPPLIES AUDIT & FINANCE REPAIR & MAINTENANCE SUPPLIES PROFESSIONAL SERVICES REPAIR & MAINTENANCE SUPPLIES TRAVEL SCHOOL CONFERENCE DUES & SUBSCRIPTIONS UNIFORMS & PERSONAL EQUIP COST OF MIX & SOFT DRINKS ACCRUED LIFE INSURANCE OPERATING SUPPLIES COMMUNICATIONS DUES & SUBSCRIPTIONS SAFETY SUPPLIES CONTRACT REPAIR & MAINTENANCE CHEMICALS & PRODUCTS SHOP MATERIALS COST OF MIX & SOFT DRINKS DUES & SUBSCRIPTIONS EQUIPMENT PARTS TRAVEL SCHOOL CONFERENCE COST OF MIX & SOFT DRINKS CONTRACT REPAIR & MAINTENANCE FOOD PRODUCTS - CONCESSION FOOD PRODUCTS - CONCESSION CENTRAL GARAGE REPAIR OTHER CONTRACTUAL PROFESSIONAL SERVICES KI-SM -11 163962 163963 163964 163965 163966 163967 163968 163969 163970 163971 163972 163973 163974 163975 163976 163977 163978 163979 163980 163981 163982 163983 163984 163985 163986 163987 163988 163989 163990 163991 163992 163993 163994 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 475.14 BUSHMAN, RAQUEL 1,507.77 BUSINESSWARE SOLUTIONS 16,855.90 C & L DISTRIBUTING 48.00 CARTER, JEREMY 273.46 CENTRAL HYDRAULICS 79.45 COMDATA CORPORATION 1,282.50 COUNTRYSIDE FLAGPOLE 44.77 CROW RIVER AUTO & TRUCK REPAIR 288.38 CROW RIVER GLASS & SIGNS 279.65 CROW RIVER PRESS INC 6,756.90 DAY DISTRIBUTING 960.00 DEATONS MAILING SYSTEM 2,503.36 OLT SOLUTIONS 377.00 DOMINO'S PIZZA 85.55 DROP -N -GO SHIPPING, INC 16.76 DUENOW, TYLER 1,005.78 DYNA SYSTEMS 1,453.16 E2 ELECTRICAL SERVICES INC 5.65 EBERT, PAT 125.04 ECOLAB PEST ELIM 205.20 ELECTRO WATCHMAN 593.96 ELECTRONIC SERVICING 30.00 ELLIOTT, TIM 112.14 EMBASSY SUITES MINNEAPOLIS 33.00 ENGINEERING MINNESOTA 37.68 FASTENAL COMPANY 961.88 FEDERAL SIGNAL CORP 229.00 FINANCE & COMMERCE 402.25 FITZGERALD, STEPHANIE 305.40 FOREST EDGE WINERY 484.25 FOUNDATION FOR CHALLENGED CHIL 286.41 G & K SERVICES 10.00 GIFFERSON, TOM 769.00 GRAND PERE WINES INC FOOD PRODUCTS - CONCESSION CONTRACT REPAIR & MAINTENANCE COST OF SALES -BEER TRAVEL SCHOOL CONFERENCE RECEIVED NOT VOUCHERED FOOD PRODUCTS - CONCESSION OPERATING SUPPLIES CENTRAL GARAGE REPAIR CENTRAL GARAGE REPAIR PRINTING & PUBLISHING COST OF SALES -BEER CONTRACT REPAIR & MAINTENANCE DATA PROC EQUIPMENT RENTAL FOOD PRODUCTS - CONCESSION POSTAGE TRAVEL SCHOOL CONFERENCE RECEIVED NOT VOUCHERED CONTRACT REPAIR & MAINTENANCE TRAVEL SCHOOL CONFERENCE RECEIVED NOT VOUCHERED CONTRACT REPAIR & MAINTENANCE CONTRACT REPAIR & MAINTENANCE OTHER CONTRACTUAL TRAVEL SCHOOL CONFERENCE DUES & SUBSCRIPTIONS REPAIR & MAINTENANCE SUPPLIES MACHINERY & EQUIPMENT DUES & SUBSCRIPTIONS OPERATING SUPPLIES COST OF SALES -WINE COMPOST BAGS OPERATING SUPPLIES TRAVEL SCHOOL CONFERENCE COST OF SALES -WINE 163995 2/8/2011 528.40 H.A.R.T. ACCRUED DEFERRED COMP 163996 2/8/2011 174.00 HANNEMAN, MARK TRAVEL SCHOOL CONFERENCE 163997 2/8/2011 1,170.00 HANSEN DIST OF SLEEPY EYE COST OF SALES -BEER 163998 2/8/2011 5,697.50 HANSEN GRAVEL SNOW REMOVAL 163999 2/8/2011 260.00 HANSEN & VASEK CONSTRUCTION SNOW REMOVAL 164000 2/8/2011 267.14 HASLER, INC RENTALS 164001 2/8/2011 20,311.64 HCVN -TV CABLE TV 164002 2/8/2011 10,126.01 HEARTLAND CONSTRUCTION EQUIPME RECEIVED NOT VOUCHERED 164003 2/8/2011 230.00 HEMMAH, LLOYD OTHER CONTRACTUAL 164004 2/8/2011 1,396.85 HEWLETT - PACKARD CO DATA PROC EQUIPMENT RENTAL 164005 2/8/2011 532.44 HILLYARD / HUTCHINSON REPAIR & MAINTENANCE SUPPLIES 164006 2/8/2011 260.00 HJERPE CONTRACTING SNOW REMOVAL 164007 2/8/2011 139.54 HOLT MOTORS INC CENTRAL GARAGE REPAIR 164008 2/8/2011 495.00 HOLT TOUR & CHARTER OTHER CONTRACTUAL 164009 2/8/2011 2,000.00 HUTCH AUTOBODY & LOAN 164010 2/8/2011 252.00 HUTCH CAFE OPERATING SUPPLIES 164011 2/8/2011 190.00 HUTCH ELECTRIC PROFESSIONAL SERVICES 164012 2/8/2011 2,201.00 HUTCHINSON AREA HEALTH CARE COMMON AREA MAINTENANCE 164013 2/8/2011 4,657.34 HUTCHINSON CONVENTION & VISITO LODGING TAX REIMBURSEMENT 164014 2/8/2011 199.00 HUTCHINSON MEDICAL CENTER PROFESSIONAL SERVICES 164015 2/8/2011 726.00 HUTCHINSON SENIOR ADVISORY BOA OPERATING SUPPLIES 164016 2/8/2011 199.72 HUTCHINSON WHOLESALE REPAIR & MAINTENANCE SUPPLIES 164017 2/8/2011 3,000.00 HUTCHINSON, CITY OF MISCELLANEOUS 164018 2/8/2011 120.00 IACP DUES & SUBSCRIPTIONS 164019 2/8/2011 130.00 INTERNATIONAL CODE COUNCIL INC TRAVEL SCHOOL CONFERENCE 164020 2/8/2011 23.84 JACOBSEN, SEPTEMBER OPERATING SUPPLIES 164021 2/8/2011 1,097.33 A TAYLOR DIST OF MN COST OF SALES -BEER 164022 2/8/2011 35.00 JOCHUM, DANIEL TRAVEL SCHOOL CONFERENCE 164023 2/8/2011 28,958.19 JOHNSON BROTHERS LIQUOR CO. COST OF SALES -BEER 164024 2/8/2011 160.00 JOHNSON, RALPH OTHER CONTRACTUAL 164025 2/8/2011 23,941.20 JUUL CONTRACTING CO IMPROV OTHER THAN BLDGS 164026 2/8/2011 530.00 KLITZKE, LUKE OTHER CONTRACTUAL 164027 164028 2/8/2011 2/8/2011 550.00 260.00 KLITZKE, RICHARD KOSEK, JEFF OTHER CONTRACTUAL SNOW REMOVAL 164029 2/8/2011 70.77 L & P SUPPLY CO OPERATING SUPPLIES 164030 2/8/2011 45,418.00 LEAGUE OF MN CITIES -INS TRUST ACCURED WORKERS COMP 164031 2/8/2011 75.00 LEMA DUES & SUBSCRIPTIONS 164032 2/8/2011 675.15 LIFE INSURANCE COMPANY OF AMER EMPL.HEALTH & INS. BENEFIT 164033 2/8/2011 14,704.10 LOCHER BROTHERS INC COST OF SALES -BEER 164034 2/8/2011 250.00 LOKENSGARD, THOMAS OTHER CONTRACTUAL 164035 2/8/2011 137.00 MAGNUSSON, BRIAN TRAVEL SCHOOL CONFERENCE 164036 2/8/2011 122.28 MARIPOSA PUBLISHING OPERATING SUPPLIES 164037 2/8/2011 1,875.00 MBFTE DUES & SUBSCRIPTIONS 164038 2/8/2011 68.40 MCKAY, KAREN OPERATING SUPPLIES 164039 2/8/2011 200.00 MCLEOD COUNTY COURT ADMINISTRA OTHER REVENUES 164040 2/8/2011 46.00 MCLEOD COUNTY RECORDER MISCELLANEOUS 164041 2/8/2011 46.00 MCLEOD COUNTY RECORDER PRINTING & PUBLISHING 164042 2/8/2011 246.00 MCLEOD COUNTY TREASURER CONDITIONAL USE PERMITS 164043 2/8/2011 315.00 MCLEOD CTY DISTRICT COURT ADMI MISCELLANEOUS 164044 2/8/2011 150.00 MECA TRAVEL SCHOOL CONFERENCE 164045 2/8/2011 2,002.02 MENARDS HUTCHINSON REPAIR & MAINTENANCE SUPPLIES 164046 2/8/2011 394.11 MID AMERICA BUSINESS SYSTEMS CONTRACT REPAIR & MAINTENANCE 164047 2/8/2011 90.00 MIELKE, PHILLIP OTHER CONTRACTUAL 164048 2/8/2011 92.86 MILLER, AMANDA RENTS -BLDGS OTHER 164049 2/8/2011 215.28 MILLINER HERITAGE VINEYARD & WI COST OF SALES -WINE 164050 2/8/2011 33.00 MINNEAPOLIS, CITY OF OTHER CONTRACTUAL 164051 2/8/2011 51.00 MINNESOTA DEPT OF NATURAL RESO MISCELLANEOUS 164052 2/8/2011 145.00 MINNESOTA ICE ARENA MANAGERS A DUES & SUBSCRIPTIONS 164053 2/8/2011 1,090.00 MINNESOTA MUNICIPAL UTILITIES TRAVEL SCHOOL CONFERENCE 164054 2/8/2011 375.00 MINNESOTA RURAL WATER ASSN TRAVEL SCHOOL CONFERENCE 164055 2/8/2011 120.00 MINNESOTA SECRETARY OF STATE DUES & SUBSCRIPTIONS 164056 2/8/2011 56.45 MINNESOTA SHREDDING CONTRACT REPAIR & MAINTENANCE 164057 2/8/2011 750.27 MINNESOTA UNEMPLOYMENT INSURAN UNEMPLOYMENT INSURANCE 164058 2/8/2011 2,752.00 MINNESOTA VALLEY TESTING LAB OTHER CONTRACTUAL 164059 2/8/2011 70.00 MN SECTION CSWEA TRAVEL SCHOOL CONFERENCE 164060 2/8/2011 36.00 MN STTE PATROL EQUIPMENT PARTS 164061 2/8/2011 80.00 MOWER COUNTY SHERIFFS OFFICE OTHER CONTRACTUAL 164062 2/8/2011 300.00 MPCA TRAVEL SCHOOL CONFERENCE 164063 164064 164065 164066 164067 164068 164069 164070 164071 164072 164073 164074 164075 164076 164077 164078 164079 164080 164081 164082 164083 164084 164085 164086 164087 164088 164089 164090 164091 164092 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2,206.06 NASH FINCH COMPANY 420.62 NORTH CENTRAL LABORATORIES 3,978.29 NU- TELECOM 551.26 O'REILLY AUTO PARTS 151.38 OFFICE OF ENTERPRISE TECHNOLOG 117.31 OLSON'S LOCKSMITH 80.00 PAGGEN, JOSH 100.00 PAGGEN, MIKE 2,164.34 PAUSTIS & SONS WINE CO 14,357.53 PHILLIPS WINE & SPIRITS 1931 PLOTZ, GARY D 5,474.25 POLICE CENTRAL INC 23,202.00 POLY- AMERICA, L.P. 150.00 POPP, RANDY 1,720.00 POSTMASTER 22.62 PRO AUTO & TRANSMISSION REPAIR 140.11 PRO -BUILD 272.31 QUADE ELECTRIC 2,000.00 QUALITY CONTROL & INTEGRATION 20,538.27 QUALITY WINE & SPIRITS CO. 341.63 QUILL CORP 114.00 R & R SPECIALTIES INC 1,840.15 164093 250.00 164094 ^- 164095 160.00 164096 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2/8/2011 2,206.06 NASH FINCH COMPANY 420.62 NORTH CENTRAL LABORATORIES 3,978.29 NU- TELECOM 551.26 O'REILLY AUTO PARTS 151.38 OFFICE OF ENTERPRISE TECHNOLOG 117.31 OLSON'S LOCKSMITH 80.00 PAGGEN, JOSH 100.00 PAGGEN, MIKE 2,164.34 PAUSTIS & SONS WINE CO 14,357.53 PHILLIPS WINE & SPIRITS 1931 PLOTZ, GARY D 5,474.25 POLICE CENTRAL INC 23,202.00 POLY- AMERICA, L.P. 150.00 POPP, RANDY 1,720.00 POSTMASTER 22.62 PRO AUTO & TRANSMISSION REPAIR 140.11 PRO -BUILD 272.31 QUADE ELECTRIC 2,000.00 QUALITY CONTROL & INTEGRATION 20,538.27 QUALITY WINE & SPIRITS CO. 341.63 QUILL CORP 114.00 R & R SPECIALTIES INC 1,840.15 R.J.L. TRANSFER 250.00 RACH, PATRICK 130.00 REVIER, CORDERRO 160.00 REVIER, SHANE 440.00 RIDGEWATER COLLEGE 380.00 ROCHESTER ABORISTS WORKSHOP 313.86 RUNNING'S SUPPLY 1,697.72 SAM'S CLUB 2,000.00 SCHMELING &, KAREN 2,074.42 SCHMELING OIL CO 64.20 SCOTT'S WINDOW CLEANING SERVIC 60.42 SHOPKO CONTRACT REPAIR & MAINTENANCE OPERATING SUPPLIES COMMUNICATIONS CENTRAL GARAGE REPAIR COMMUNICATIONS PROFESSIONAL SERVICES OTHER CONTRACTUAL OTHER CONTRACTUAL COST OF SALES -WINE COST OF SALES -WINE TRAVEL SCHOOL CONFERENCE DATA PROC EQUIPMENT RENTAL RECEIVED NOT VOUCHERED OTHER CONTRACTUAL POSTAGE CENTRAL GARAGE REPAIR OPERATING SUPPLIES RECEIVED NOT VOUCHERED PROFESSIONAL SERVICES COST OF SALES- LIQUOR CLEANING SUPPLIES CSI PIi L•C�]i � L \I �:- a+I�I_ll�iix�IJon FREIGHT OTHER CONTRACTUAL OTHER CONTRACTUAL OTHER CONTRACTUAL TRAVEL SCHOOL CONFERENCE TRAVEL SCHOOL CONFERENCE OPERATING SUPPLIES FOOD PRODUCTS - CONCESSION LOAN CONTRACT REPAIR & MAINTENANCE CONTRACT REPAIR & MAINTENANCE OPERATING SUPPLIES 164097 2/8/2011 100.00 SOUTHWEST MN CHAPTER OF ]CC DUES & SUBSCRIPTIONS 164098 2/8/2011 2,520.13 SPRINT COMMUNICATIONS 164099 2/8/2011 11.76 STANDARD PRINTING PRINTING & PUBLISHING 164100 2/8/2011 840.38 STAPLES ADVANTAGE OPERATING SUPPLIES 164101 2/8/2011 222.85 STOTTS, CASEY TRAVEL SCHOOL CONFERENCE 164102 2/8/2011 2,558.16 SUNCOAST GARDEN PRODUCTS, INC. 164103 2/8/2011 194.60 TEK MECHANICAL RECEIVED NOT VOUCHERED 164104 2/8/2011 103.61 TENNANT SALES & SERVICE CO EQUIPMENT PARTS 164105 2/8/2011 1,652.82 THE HARTFORD EMPL.HEALTH & INS. BENEFIT 164106 2/8/2011 100.00 THE ODYSSEY GROUP TRAVEL SCHOOL CONFERENCE 164107 2/8/2011 2,700.00 TKDA PROFESSIONAL SERVICES 164108 2/8/2011 260.00 TONY FORCIER TRUCKING SNOW REMOVAL 164109 2/8/2011 22,289.25 TREBELHORN & ASSOC MOTOR FUELS & LUBRICANTS 164110 2/8/2011 2,598.85 USPS - HASLER DUE FROM HRA 164111 2/8/2011 10,379.03 VIKING BEER COST OF SALES -BEER 164112 2/8/2011 323.55 VIKING COCA COLA COST OF MIX & SOFT DRINKS 164113 2/8/2011 181.48 WALL STREETJOURNAL DUES & SUBSCRIPTIONS 164114 2/8/2011 815.78 WASTE MANAGEMENT OF WI -MN REFUSE - RECYCLING 164115 2/8/2011 1,188.00 WASTEQUIP EQUIPMENT PARTS 164116 2/8/2011 833.33 WELLS FARGO INSURANCE SERVICES PROFESSIONAL SERVICES 164117 2/8/2011 5,128.05 WINE COMPANY, THE COST OF SALES -WINE 164118 2/8/2011 1,707.50 WINE MERCHANTS INC COST OF SALES -WINE 164119 2/8/2011 10,132.99 WIRTZ BEVERAGE MINNESOTA FREIGHT Grand Total Payment Instrument Totals Check Total 402,202.39 Total Payments 402,202.39 PAYROLL ELECTRONIC FUNDS TRANSFERS PAYROLL DATE: 1/28/2011 Period Ending Date: 1/22/2011 $50,395.44 IRS - Withholding Tax Account Federal Withholding Employee /Employer FICA Employee /Employer Medicare $10,237.50 MN Department of Revenue State Withholding Tax $37,605.26 Public Employee Retirement Association Employee /Employer PERA/DCP Contributions $2,412.47 TASC Employee Flex Spending Deductions $5,748.06 TASC Employee Deductions & Employee Contribution to Health Savings Account $400.00 MNDCP Employee Contributions - Deferred Comp $1,339.60 ING Employee Contributions - Deferred Comp $2,420.00 ICMA Retirement Trust Employee Contributions - Deferred Comp $693.58 MN Child Support System Employee Deductions $111,251.91 Total Electronic Funds Transfer $3,435.19 $697.92 i-1 11 $5,061.46 $4,290.88 $13,485.45 PAYROLL ELECTRONIC FUNDS TRANSFERS PAYROLL DATE: 1/28/2011 Period Ending Date: 1/1/2011 IRS - Withholding Tax Account Federal Withholding Employee /Employer FICA Employee /Employer Medicare MN Department of Revenue State Withholding Tax Sick Leave Pay Out Checks Public Employee Retirement Association Employee /Employer PERA/DCP Contributions TASC Employee Deductions Health Savings Account MSRS - Health Savings Plan Employee Deductions to Health Savings Plan Total Electronic Funds Transfer �cf) An Economic 0cvc1opmcn; Autnorrty MEMORANDUM Date: February 3, 2011 To: Honorable Mayor & City Council From: Miles R. Seppelt, EDA Director RE: 2010 Annual Report — Hutchinson Economic Development Authority The EDA's annual report for 2010 has been completed and a copy is included in your council packet. We'll have hard copies available for you on Tuesday as well. I will have a short presentation at the City Council meeting of February 8th and will be happy to answer any questions at that time. In the meantime, if you have any questions or need additional information, please give me a call at 234 -4223. Thank you for your time and consideration. � to-) Hutchinson Economic Development Authority Annual Report Prepared by Miles R. Seppelt, EDA Director Colin Heintzeman, EDA Assistant I � La) Executive Summary 1 Governance 2 Table 1- EDA Board of Directors 2 Table 2 - EDA Finance Team 2 Internship Program 2 Activity Report 3 Business Retention & Expansion Program 3 Table 3 - Busines Retention & Expansion Visits, 2010 3 EDAM 2010 Business Recruitment Award 4 Marketing & Public Relations 4 New Industrial Park 5 Construction Completed 5 Chips Holding Company 5 Ribbon Cutting Event 5 Lot Pricing Established 5 Table 4 - Industrial Park Lot Pricing 6 Property Management 6 Grant Writing 7 Small Business Development Center 7 County Economic Development Project 7 Hutchinson Downtown Association 8 Table 5 - Downtown Association Board Members, 2010 9 Downtown Grant & Loan Programs 9 Table 6 - Sign & Awning Grants, 2010 9 Table 7 - Storefront Revitalization Matching Grants, 2010 10 Table 8 - Downtown Loans, 2010 10 Economic Development Loan Programs 10 Economic Development Loan Fund 10 MIF Loan Fund 11 EDA Finances 11 Table 9 - EDA Operations Budget, 2010 12 Summary 12 Table 10 - EDA Special Projects, 2010 13 Summary of Results: 2010 Work plan & Goals 14 2011 Work Plan & Goals 15 Appendix A - Downtown Revolving Loan Fund Status Report, 2010 Appendix B - Economic Development Loan Fund Status Report, 2010 Appendix C - MIF Loan Fund Status Report, 2010 Appendix D - EDA Year -end Financial Statements, 2010 Appendix E - Adopted EDA Budget, 2011 Appendix F - EDA Statements of Financial Position, 2008 -2010 Appendix G - Hutchinson EDA Land Holdings, 2010 � � bo-) EXECUTIVE SUMMARY After an extraordinarily busy 2007 — 2009, the pace of local economic development moderated a bit in 2010, most likely due to the slower state and national economies. Even so, the Hutchinson EDA had a busy and productive year of completing projects, closing out grants and setting the stage for future economic development initiatives. The EDA's highlights for the year include the following: • Won the 2010 "Business Recruitment Award" from the Economic Development Association of Minnesota (EDAM) for the NuCrane Manufacturing project. • Completed 17 Business Retention & Expansion (BR &E) visits. • Completed re- tiling of north 40 acres of the EDA -owned Stritesky property. • Completed industrial park expansion project. • Held ribbon - cutting / open house event to publicize new industrial park. • Completed annexation, platting and rezoning of 5.65 acre Hackbarth property. • Sold a 1.95 acre lot in the new industrial park to Chips Holdings, Inc. • Demolished buildings on Wetherell site; graded & prepared site for future development. • Created community marketing materials to assist Cornerstone Commons marketing. • Obtained $37,500 Community Development Block Grant to establish Small Business Development Center (SBDC) sub - center here in Hutchinson. • Contracted with McLeod County to assist with an economic development project. • Obtained JOBZ tax benefits for county project. • Continued support of downtown Hutchinson by providing: 0 10 Sign & Awning Grants totaling $18,596. 0 6 Storefront Revitalization Matching Grants totaling $21,375. 0 2 Downtown loans totaling $52,370. • Closed out $250,000 BDPI grant for the new industrial park. • Closed out Warrior Manufacturing and Customer Elation MIF grants. • De- federalized $700,000 in grant money; transferring $270,684 in cash to the economic development loan fund and allocating all remaining loan payments to that fund. I � LO-) GOVERNANCE The Hutchinson EDA is governed by a seven member Board of Directors comprised of business and civic leaders from throughout the community. Two City Council members also sit on the FDA Board and serve as a liaison between the City and the EDA. 2010 EDA Board membership is shown in Table 1, below. Table 1 — EDA Board of Directors Tim Ulrich EDA President Citizens Bank Mike McGraw Vice - president State Farm Insurance Steve Jansick Treasurer Wells Fargo Bank Jim Haugen Member City Council / Architect Chad Czmowski Member City Council / Downtown Business Mike Retterath Member 3M Daron Vanderheiden Member ISD 423 Advising the EDA Board on all financial matters is a 10- member Finance Team made up of financial and legal professionals in the community. Table 2, below, lists the 2010 membership of the EDA Finance Team. Table 2 — EDA Finance Team Jim Young Chair James Young & Associates Mike Cannon Member Citizens Bank Don Walser Member Kraft, Walser, Hettig & Honsey Tim Ulrich Member Citizens Bank Steve Jansick Member Wells Fargo Bank Anthony Hanson Member Citizens Bank Keith Fischer Member Wells Fargo Bank Josh Gehlen Member Home State Bank Gus Wurdell Member Hutchinson Mall INTERNSHIP PROGRAM The Hutchinson EDA continued its highly regarded internship program in 2010, hosting two interns over the course of the year. From January to late August, Patrick Brama interned, and Eric Browne filled the position from late August until the end of December. Both come to Hutchinson from St. Cloud State University, where they are majoring in Community Development. Eric Browne 1 � ACTIVITY REPORT The general theme for the year's activities was "wrapping up projects." In addition to its on- going programs, the EDA wrapped up the industrial park expansion project and completed the implementation of various grants. The major new initiative for the year was bringing back a Small Business Development (SBDC) sub - center to Hutchinson. In addition, the EDA won a state -wide award for one of its 2009 projects: NuCrane Manufacturing. Business Retention & Expansion Program The cornerstone of the Hutchinson EDA's economic development efforts continues to be its Business Retention & Expansion (BR & E) program. It is well established that the vast majority of a community's job growth comes from its existing business base. In recognition of that fact, the EDA strives to take care of Hutchinson's already existing cadre of businesses. Each year EDA staff makes personal visits to area manufacturers with a goal of visiting every manufacturer at least once every three years. For 2010, a total of 17 Hutchinson manufacturers were visited, as detailed in Table 3, below: Table 3 — Business Retention & Expansion Visits, 2010 1 Ashwill Industries Tony Ashwill 3/26/2010 1 Busy March 2 Hutch Iron & Metal Jay Freedland 415/2010 12 Doing well 3 SHOPKO Myron Berry 416/2010 Doing well 4 Customer Elation Rick Frederickson 4/28/2010 85 Doing well, adding emp. 5 Warrior Mfg, Paul Soukup 4128/2010 38 Doing well 6 Hilliard Floor Care Company Scott Haag 7/12/2010 Adding 3 emp. this year 7 Crow River Printing Mark Tice 7/1212010 30 Employment steady 8 3D C -N -C Mike Getzke 7113/2010 26 30% medical 9 Goebel Fixture Company Dick Goebel 712712010 116 Business is great 10 Hutchinson COOP / Cenex Mike Conner 8/3/2010 Adams Street 11 Ohly Chad Gunderson 8/10/2010 40 need $400K for equipment? 12 Lynn Card Company Eric Knudson 8/1712010 4 4 FT & 2 PT 13 Hutchinson Technology, Inc. Kathleen Skarvin 8119/2010 Thailand production. 14 Nordic Components Jermo Kumpula 11/10/2010 26 Needs building. 20K sf 15 RD Machine Jeff Leway 11/12/2010 21 Sales up 5 %, need emp. 16 Ag Systems, Inc. Craig Lenz 11/16/2010 70 Recent expansion 17 Pride Solutions Justin Eggert 11117/2010 15 Four divisions 3 Iii) EDAM 2010 Business Recruitment Award In recognition of its efforts on the NuCrane Manufacturing project, the Hutchinson EDA was named as the winner of the 2010 Business Recruitment Award by the Economic Development Association of Minnesota (EDAM). Awards are given annually at the EDAM Summer Conference to recognize individuals and organizations for outstanding achievement in economic development, Nominations are submitted throughout the spring and winners are selected by an awards committee comprised of EDAM members. Headquartered in Saint Paul, EDAM serves economic development professionals throughout Minnesota and has nearly 500 members who represent private enterprise, local and regional economic development agencies, chambers of commerce and utilities. � t� Competing against the State of Georgia and the incentives they offered, the Hutchinson EDA successfully recruited NuCrane Manufacturing to the State of Minnesota. Project financing included an EDA - floated Industrial Development Revenue Bond, JOBZ and loans from the Minnesota Investment Fund, Southwest Initiative Foundation and Mid- Minnesota Development Commission. The job creation at NuCrane. 20 within two years and up to 50 within five years, along with the additional business it will provide to neighboring Hutchinson Manufacturing will add significantly to the vitality of the economies of Hutchinson and the State of Minnesota. The award is the result of a high degree of professionalism and great teamwork by the EDA Board, EDA Finance Team, Hutchinson City Council and city staff. Marketing & Public Relations To help promote Hutchinson as a potential location for business expansions, EDA staff has worked hard to develop an economic development web -site that is second to none. In designing the site, staff considered what information would be most pertinent to businesses looking to expand. From that exercise, it was clear that potentially expanding businesses researching a particular community would want to know about land, buildings, financing, labor, training & education and so forth. The EDA web -site is designed to provide all the answers a prospective business is looking for, even for those questions that haven't thought of yet! In addition to the web -site, the EDA maintains a listing of available land and buildings on the State of Minnesota's "MNPRO" website. Both the EDA website and the MNPRO listings are updated on a regular basis. To promote good public relations on a local level, staff contributes a monthly column to "Crow River Business" magazine, appears several times a year on KDUZ's "Community Affairs" radio program and occasionally provides an economic development update at one of Hutchinson's local service organizations, such as the Breakfast Club, Rotary and so forth. 4 New Industrial Park Construction completed Street construction on Hutchinson's new 68- acre industrial park took place over the course of the summer and was completed in the fall of 2010. Work included construction of a 10 -ton, 38- foot wide roadway with curb & gutter throughout- Underground infrastructure included 10 -inch sanitary sewer and 6 -inch water services to each of the lots in the industrial park. Hutchinson now has a full service state-of- the -art industrial park providing a total of nine lots ranging in size from 3.09 acres up to 10.5 acres Chips Holding Company Aerial view of the new industrial park, provided by the Hutchinson Civil Air Patrol. In July, Chips Holding Company. LLC purchased 1.95 acres on the east end of the new industrial park for the establishment of a small distribution center. The location of the warehouse, on the very east end of the new industrial park, was extremely advantageous to the EDA as it resulted in natural gas and electric utilities being extended to all lots in the new industrial park. The final sales price for the lot was $58,580 — which went to the city's Community Improvement Fund as a partial reimbursement of funds that had been advanced to purchase land for the new industrial park. Ribbon Cutting Event 68 new acres for industrial growth r n To commemorate completion of the new industrial park, a ribbon- cutting ! open house event was held by the EDA in mid- October. Representatives of the Hackbarth family (original owners of the land), the City Council, EDA Finance Team, EDA Board of Directors, the media and a number of business leaders were in attendance — about 40 people in all. The weather turned out very nice and the event gained significant publicity for the opening of the new industrial park. Lot Pricing Established Following completion of the new industrial park, the EDA Board discussed appropriate pricing for each of the lots. It was the consensus of the Board that it would be advantages to all concerned to establish lot prices "up front' rather than negotiate them with each prospective buyer. Taking into consideration the cost for land acquisition and infrastructure construction and after evaluating the price of industrial park lots in other area cities, a price of $30,000 per acre with no assessments was established for the majority of lots in the new industrial park. One lot was priced at $40,000 per acre because of its high visibility location on 5" Avenue southeast and one lot was priced at $35,000 per acre because it too had 9 Avenue frontage, but still needed a storm water retention pond. Brief descriptions of each lot, along with their respective prices, are provided in Table 4, bellow. Table 4 — Industrial Park Lot Pricing 1 1 3.09 $92,700 $30,000 Needs water & sanitary sewer, has assessments 2 1 7.5 $225,000 $30,000 2 2 7.88 $236,400 $30,000 2 3 8.78 $263,400 $30,000 3 1 10.5 $315,000 $30,000 Sold to Warrior 3 2 4.11 $123,300 $30,000 3 3 3.18 $127,200 $40,000 Sth Avenue, north side Outlot "A" 1.72 $51,600 $30,000 Sold to warrior Hackbarth Lot 5.65 $197,750 $35,000 5th Avenue, south side; Needs pond Total, All Lots Sold $1,462,850 Property Management In 2010 the EDA continued to lease out the 77.37 -acre Stritesky Property as crop land. A competitive bidding process resulted in a high bid of $227.20 per acre, providing rental revenue of $16,670 for the year. In addition, the Wetherell property, located on Vh Avenue SE was leased out for the first eight months of the year at $500 per month, providing an additional $4,000 of rental revenue to the EDA. Following its acquisition by the city in 1998, the Wetherell property had been rented out continuously for 144 months — exactly 12 years. In that time a total of $72,000 of rental revenue was obtained and used to provide supplemental funding for the EDA. In mid- summer 2010 the Wetherell family voided the time remaining on their lease, moving out in September. Given the potential liability of owning run- down, vacant buildings, the FDA Board decided to demolish all structures on the property immediately, thereby preparing the site for future industrial development. C I .e low hid for the Juul Contracting provided the demolition work_ 6 C I .e low hid for the An agreement was reached with Customer Elation, Inc., which has an option to purchase the lot, to amend its option agreement with the city to include the costs of demolition. Should Customer Elation decide to purchase the lot they would do so under the EDA's "213 land write- down" program, which forgives 2/3 of the lot price over the course of 10 years, provided the company does not relocate. The end result is that Customer Elation will end up covering 113 of the demolition costs. A breakdown of the demolition costs is provided in Table 10, on page 13, which summarizes the EDA's special projects for 2010- Grant Writing The Hutchinson EDA obtained one grant in 2010 for $37,500. In the fall of the year the Minnesota Department of Employment and Economic Development (DEED) put out a request for proposals for the use of Community Development Block Grant Dollars to foster the creation of microenterprises. Working in conjunction with the Southwestern Regional Small Business Development Center the EDA was able to put together a winning proposal. Funds will be used to establish a new SBDC sub - center in Hutchinson in 2011. Small Business Development Center After an absence of several years, the Small Business Development Center (SBDC) will once again have an office in Hutchinson, thanks to the efforts of the Hutchinson EDA. The process began this past fall, with an application to the Minnesota Department of Employment and Economic Development for a grant to help promote the formation of ..microenterprises" (businesses having five or fewer employees) in the Hutchinson area. Funds obtained through the grant have enabled the EDA to contract with the Southwest Regional SBDC out of Marshall to open a sub - center here in Hutchinson. The new SBDC office will be housed at the Ridgewater Business Center in the city's industrial park. The SBDC provides confidential consulting at no cost to help give clients the tools they need to run a successful business. Advice can be obtained on a variety of business topics including feasibility analysis, start-up assistance, business plan development, finding capital, business accounting, marketing, eCommerce, web -site development, strategic planning and more. The SBDC provides the City of Hutchinson with another valuable tool with which to promote economic development and foster new job creation. County Economic Development Project In February 2010, EDA staff was contacted by a company that was interested in establishing a greenhouse operation for the large -scale production of 100% organic vegetables. All vegetables produced would be sold to twin cities supermarket chains. In addition to providing locally grown foodstuffs, the company planned to utilize "bio- energy' to heat their greenhouses — capturing waste heat from electrical generators operated by Waste 7 '� � L) Management, the operator of Spruce Ridge Landfill. These generators, in turn, are fueled by methane generated by the land fill. Staff contacted DEED about the project, and a preliminary determination was made that the project would be eligible for both JOBZ and the Minnesota Investment Fund. After it became evident that the project was intended to take place outside the city limits of Hutchinson, EDA staff notified officials at McLeod County. That initiated a conversation about the possibility of the county contracting with the Hutchinson EDA for economic development services. Milestone Payment Award of JOBZ $6,000 Award of MIF Grant $6,000 Implementation of agreements $6,00 0 TOTAL $7 Ultimately, an agreement was reached whereby the County would pay the Hutchinson EDA a total of $18,000 for services related to completing the project. Payments of $6,000 would be made upon the completion of each of three steps: award of JOBZ, award of a MIF grant, and final implementation of agreements for each. DEED made a determination that up to $500,000 of federal MIF money could potentially be available for the project. MIF funds would be in the form of a grant to the county, which in turn would lend the money to the company for the purchase of equipment. As these funds are repaid they could be used to establish a McLeod County revolving loan fund. As of this writing, the MIF grant application is approximately 80% compete, however the company decided to delay the final application for MIF funding until further notice. EDA staff has completed the state's application for JOBZ and this was approved by DEED. In support of the project, the Hutchinson EDA has transferred 10 of its JOBZ acres to Hassan Valley Township. All that remains is for the company to sign the Business Subsidy Agreement provided by DEED and the JOBZ portion of project financing will be complete. As of yearend, the project was in a "standby" status as the company seeks additional equity investors. If successfully completed, it is estimated that the project will result in 60 jobs being created within two years, with wages of $15 per hour with full benefits. Hutchinson Downtown Association The Hutchinson EDA continued to provide staff support for the Hutchinson Downtown Association in 2010. Comprised of 36 members, the Hutchinson Downtown Association (HDA) seeks to maintain and enhance the vitality of downtown Hutchinson. To that end, the HDA sponsors the downtown Farmer's Market each summer as well as "Picnic in the Park," the Library Square Popcorn Wagon and "Main Street Christmas." The 2010 Board of Directors for the HDA is shown in Table 5, on the following page. � \ L611) Table 5 — Hutchinson Downtown Association Board of Directors, 2010 Mike Cannon Mark Cormier Joanne Willmert Tina McMillan Gus Wurdell Matt Pulkerbek Chris Wilke George Quast Bill Corby Chad Czmowski Vice President Hagar Jewelry 2011 Treasurer The Village Shop 2012 Director Hutchinson Leader 2010 Director McKraut Holdings 2011 Director Hometown Realty 2011 Director Stream Computer Consulting 2012 Liaison Historic Hutchinson open Liaison Chamber of Commerce open Liaison City Council / Outdoor Motion open Downtown Grant & Loan Programs Between its three Main Street revitalization programs the EDA invested $92,341 into downtown Hutchinson in 2010. When required matching dollars are factored in, a total of $113,716 was invested in the downtown over the course of the year. Since their implementation, these programs have played a considerable role in keeping downtown Hutchinson vibrant and attractive. The EDA's Sign & Awning Grant program provides up to $2,000 for downtown business owners to purchase signage and / or awnings for their businesses. Grant awards for 2010 are shown in Table 6, below. Table 6 — Sign and Awning Grants, 2010 Approved - 2/24/2010 David Larson Financial $2,000 2/24/2010 Favorite Treasures $1,620 4/28/2010 LBC of Hutchinson $2,000 6/30/2010 Aquaria Pets $2,000 6/30/2010 BARTCO $2,000 10/27/2010 Crow River Wellness Center $1,842 10/27/2010 Town & Country Tire $2,000 10/27/2010 The Hanger $2,000 10/27/2010 Ann McMahon CPA, LLC $1,134 12/22/2010 Unity Uniform $2,000 TOTAL $18,596 � � kL) The Storefront Revitalization Matching Grant program provides matching grants of up to $5,000 to downtown property owners wishing to upgrade the "curb appeal" of their buildings. Table 7, below, lists grants awarded in 2010. Table 7 — Storefront Revitalization Matching Grants, 2010 2/3/2010 Hutchinson Hospital Auxiliary $740 4/28/2010 Kim Kotzer, State Farm $5,000 6/30/2010 Aquaria Pets $5,000 6/30/2010 Urban Hair Studio $5,000 7/28/2010 Mark's Barber Shop $3,100 11/24/2010 Unity Uniform $2,535 Total $21,375 The Commercial Rehabilitation Loan program provides very low interest loans to property owners who desire to make more substantial improvements to their downtown buildings. Loans can be for 10 years at 2% less than the Prime interest rate or for 15 years at Prime. For 2010 that translated into loans at either 1.25% or 3.25% respectively. Two loans were made in 2010, and these are listed in Table 8, below. Table 8 — Downtown Loans, 2010 Approved Recipient Amount 2/3/2010 Lorraine Meyer $35,000 9/22/2010 George Quast $17,370 Total $52,370 A comprehensive report on all downtown loans can be found in Appendix A. Economic Development Loan Programs The Hutchinson EDA has two revolving loan programs designed to facilitate manufacturing development in the city. Economic Development Loan Fund At the close of 2010 the Economic Development Loan Fund had $403,080 cash available with four loans outstanding: two to Warrior Mfg. and one each to Ashwill Industries and Customer Elation. All loans were performing as required. The Fund received a substantial boost when two "de- federalized" loans were transferred from the EDA's MIF loan fund — making those dollars available for a wide variety of economic development projects. Previously the EDA was able to obtain MIF grants of $200,000 and $500,000 to make equipment loans to Warrior Mfg. and Customer Elation, respectively. Funds were loaned out at a very low interest rate in exchange for a commitment by each company to 10 � � to-) create a certain number of jobs. When both companies attained their job creation goals, the MIF funds loaned to them were eligible to be "de- federalized" — removing all Federal restrictions on their future use. EDA staff completed the de- federalization process on both the Warrior Mfg. and Customer Elation MIF loans in the fall of the year and that $700,000 has now been transferred out of the city's MIF Loan Fund and into the EDA's Economic Development Loan Fund. Future payments on both of these loans will flow directly to the ED loan fund. In addition to its cash and loan portfolio, the Economic Development Loan Fund has a receivable in the amount of $32,461 — which represents investments previously made to develop the EDA's 77 -acre Stritesky Property. Collection of this receivable is dependent upon there being sufficient proceeds from any future sale of that property. Assets in the Economic Development Loan Fund totaled $927,071 as of end of the year. Additional information on the status of economic development loans can be found in Appendix B. MIF Loan Fund At the end of the year the MIF Loan Fund had $32,895 of cash available and one loan outstanding: NuCrane Manufacturing, which was performing as required. Once NuCrane Mfg. reaches its job creation goals, potentially as early as the second quarter of 2011, its $500,000 MIF loan will be de- federalized and those dollars transferred to the Economic Development Loan Fund. Total assets in the fund were $513,618 — which represented cash, loan balance outstanding and accumulated interest earnings. Appendix C has detailed information on the remaining MIF loan outstanding. EDA FINANCES The EDA's operations budget finished the year with revenues exceeding expenditures by $12,140. With uncertainty surrounding the future disposition of the Stritesky Property, the EDA Board elected to budget for 2010 without any anticipated rental revenues from that property. With that property being retained for the duration of the year, EDA revenues were $17,769 higher than planned. For the most part, expenditures were either on budget or slightly below. The primary exception is the "Miscellaneous" line item, which covers membership dues, property taxes, assessments and so forth. An assessment was levied against the new industrial park for maintenance of the storm water drainage system. For the year this levy totaled $8,299 and was billed to the EDA and may be reimbursed. A summary of the EDA's 2010 operations budget is provided in Table 9, on the following page. I1 1 I �� Table 9 — EDA Operations Budget Summary, 2010 Revenues $167,024 $184,793 +$17,769 Expenditures Salaries & Benefits $126,536 $126,926 over by $390 Supplies, etc. $4,200 $3,020 under by $1,180 Consulting $9,000 $3,706 under by $5,294 Services & Charges $10,450 $8,489 under by $1,961 Transfers $5,000 $5,000 even Miscellaneous (Taxes, etc.) $11,100 $24,293 over by $13,193 Capital Outlays $700 $1,181 over by $481 Total Expenditures $166,986 $172,615 over by $5,629 OPERATIONS NET BALANCE $38 $12,178 +$12,140 The major item here is a $8,299 storm water drainage assessment for the new industrial park, which may be reimbursed. Over the course of 2010 the EDA Board of Directors authorized three special projects which were funded through the operations budget. These projects, and the specific expenditures associated with each are summarized in Table 10, shown on page 13. Due to these projects, the cash position of the operations budget declined by $33,198, which is reflected in the EDA Statements of Financial Position found in Appendix F. The overall financial position of the EDA declined by $43,065 from 2009 to 2010; mostly due to a $35,641 decline in the assets of the downtown revolving loan fund — reflecting dollars invested into the downtown through the EDA's two grant programs. The balance of the decline is due to special projects the EDA undertook to improve properties it owns. The Hutchinson EDA ended the year with an estimated net worth of $3,355,000 — down slightly from 2009's $3,398,065. 4IL'IVir 11 WI The EDA completed a number of projects in 2010 that will set the stage for future economic growth and job creation. Chief among these was completion of the new 68 -acre industrial park with land that is priced below that of neighboring cities and is assessment free. By having land that is available and ready to go today, the city is well positioned to meet the needs of any company that is looking to expand or relocate. Finally, in recognition of a job well done, and as a testament to excellent teamwork, the Hutchinson EDA won the 2010 Business Recruitment Award from the Economic Development Association of Minnesota. Now companies considering Hutchinson can factor "award - winning economic development" into their location decision - making equation... 12 IILa) Item Tiling Contractor Intake Installation Table 10 — EDA Special Projects, 2010 Project Total Item Demolition Permit Hazardous Materials Assessment Hazardous Materials Removal Utility Disconnect Final Demolition Contingency Items (15%) Pre - demolition Inspection Well Sealing Furnace / sump / water heater / pressure tank Electrical removals Well Pit / Driveways / Fuel Tank / Cistern Well Sealing Grant Item Program Fee Geotechnical Testing Phase I Environmental Title Opinion ALTA Survey Project Total Project Total Expenditure Vendor $9,725 Ewert Brothers, Inc. 150 Ewert Brothers, Inc. ".M Expenditure Vendor $105 City of Hutchinson $1,250 Assessco $1,400 Assessco $0 per utility $18,450 Juul Contracting $290 Butch Schulte $606 Boener Well Company $275 Advantage Plumbing & Heating $0 Hutch Electric $5,485 Juul Contracting 300 $Z_7�6Q.64 McLeod Soil & Water District ;hovel Ready Site 000 authorized Certification Expenditure Vendor $2,950 DEED $2,220 Landmark Environmental $1,700 Braun Intertec $0 Crow River Title $1,600 Pellinan Land Surveying 58.470 TOTAL, All Projects 4 Q� 13 I � La-) Summary of Results: 2010 Work Plan & Goals 1 BUSINESS RENTENTION & EXPANSION STATUS A Conduct 15 BR & E visits, as many as possible in conjunction Visited 17 with the Chamber of Commerce. 2 DOWNTOWN A Promote new development on former Cenex site. Continuing B Continue development of Downtown Gateway Awaiting mural 3 INDUSTRIAL PARK Make Bio- science and renewable energy projects a A development priority Continuing B Complete new industrial park. DONE Complete infrastructure construction DONE Annex/ rezone / plat new lot (Hackbarth( DONE C Recruit at least 1 new company for industrial park. DONE - CHIPS D Obtain JOBZ designation for all lots in new industrial park. 4 MARKETING & PUBLIC RELATIONS A Evaluate the need for new marketing materials. DONE B Develop community marketing materials for Cornerstone DONE Commons. C Continue public relations activities. DONE Regular appearances on KDUZ "Community Affairs" program DONE Monthly column in Crow River Business Magazine DONE Speaking engagements to services clubs, etc. - as invited DONE Regular updates to EDA website DONE 5 GENERAL A Obtain $100,000 in grants (various uses) $37,500 for SBDC B Pursue development of McLeod County EDA. Continuing C Do everything feasible to fill vacant "big box" buildings. Continuing 14 2011 Work Plan & Goals 1 BUSINESS RENTENTION & EXPANSION STATUS A Conduct 15 BR & E visits, as many as possible in conjunction with the Chamber of Commerce. 2 DOWNTOWN A Promote new development on former Cenex site. Advocate paving of Les Kouba Parkway / Lind Street B Continue development of Downtown Gateway C Continue support of Hutchinson Downtown Association 3 INDUSTRIAL PARK & BUSINESS RECRUITMENT A Make Bio- science and renewable energy projects a development priority B Finalize "shovel ready" site certification for industrial park C Recruit at least 1 new company for industrial park. D Complete contracted McLeod County economic development project 4 MARKETING & PUBLIC RELATIONS A Evaluate the need for new marketing materials. B Develop community marketing materials for Cornerstone Commons. C Continue public relations activities. • Regular appearances on KDUZ "Community Affairs" program Monthly column in "Crow River Business" Magazine • Speaking engagements to services clubs, etc. - as invited • Regular updates to EDA website 5 GENERAL A Obtain $100,000 in grants (various uses) B Pursue development of McLeod County EDA. C Do everything feasible to fill vacant "big box" buildings. 15 APPENDIX A Downtown Revolving Loan Fund 2010 Status Report I � Lci)- Loan Borrower Originated Original Loan Amount Term Rate Monthly Pymt. Outstanding Balance as of 12/31/10 Maturity 1 A 2/j/1990 6,670.99 20 0.00% $16.81 $49.84 2/1/2011 2 B 5/1/1992 $7,310.00 20 0.00% $30.46 $883.31 5/1/2013 3 C 2/10/1993 $25,637.10 20 0.00% $106.82 $3,739.00 11/10/2013 4 D 6/1/1993 $3,749.00 20 0.00% $15.62 $477.75 6/1/2013 5 E 1/1/1994 $1,610.75 20 0.00% $6.71 $233.68 1/1/2014 6 F 1/1/1996 $3,536.43 20 0.00% $140.16 $19.95 12/1/2015 7 G 3/1/2001 $4,411.00 10 2.00% $40.59 $22.05 12 /1/2010 8 H 5/1/2001 $53,855.00 10 2.00% $495.54 $2,569.74 6/1/2011 9 1 5/1/2001 $1,612.34 10 2.00% $14.84 $53.76 3/1/2011 10 1 9/1/2001 $4,110.00 10 2.00% $37.82 $251.36 5/11/2011 11 K 9/1/2001 $33,580.50 10 2.00% $308.99 $3,417.29 1/1/2011 12 L 12/1/2001 $59,820.00 10 2.00% $550.42 $7,000.81 12/1/2011 13 M 4/1/2002 $27,494.00 10 2.00% $252.98 $5,153.33 9/1/2012 14 N 12/1/2002 $17,060.00 10 2.00% $156.97 $1,694.00 10/1/2011 15 0 12/1/2002 $2,960.00 10 2.00% $27.24 $319.49 12/1/2012 16 P 1/1/2003 $3,000.00 10 2.00% $27.60 $673.80 1/1/2013 17 Q 5/8/2003 $65,000.00 10 2.00% $598.09 $18,226.44 7/1/2013 18 R 1/1/2004 $130,000.00 10 2.00% $1,196.17 $109,134.37 5/1/2014 19 5 4/1/2004 $11,055.52 10 2.00% $157.56 $3,451.08 5/1/2014 20 T 9/10/2004 $130,000.00 10 2.00% $1,196.17 $51,822.70 9/1/2014 21 U 12/1/2004 $65,000.00 15 4.50% $497.25 $44,111.76 1/1/2020 22 V 2/1/2005 $130,000.00 10 2.75% $1,240.34 $55,698.93 2/1/2015 23 W 6/15/2007 $6,400.00 10 6.25% $71.86 $4,833.77 6/15/2017 24 X 8/1/2008 $130,000.00 10 3.25% $1,270.35 $102,123.26 6/1/2018 25 Y 8/1/2008 $46,703.00 10 3.00% $450.97 $37,077.96 8/1/2018 26 Z 3/27/2009 $8,300.00 15 3.25% $58.32 $7,615.09 3/1/2024 27 AA 5/23/2009 $118,581.69 15 3.25% $933.62 $113,524.36 3/23/2022 28 BB 10/1/2009 $9,226.09 10 1.25% $81.83 $8,212.21 1/1/2020 29 CC 4/1/2010 $14,857.00 10 1.25% $135.00 $13,755.34 3/1/2020 30 DD 6/1/2010 $35,000.00 10 1.25% $310.43 $33,054.45 6/1/2020 Totals $1,156,540.41 $10,427.53 $629,200.88 APPENDIX B Economic Development Loan Fund 2010 Status Report Outstanding Original Loan Monthly Balance as of Loan Borrower Originated Amount Term Rate Pymt. 12/31/10 Maturity 1 A 8/28/2007 $50,000 7 4.00% $680 $28,683 8/27/2014 2 B 1/15/2009 $30,000 6 8.00% $526 $20,900 1/14/2015 3 A2 8/28/2007 $200,000 7 2.50% $2,600 $108,631 8/27/2014 4 C 8/1/2008 $500,000 7 0.00% $5,952 $333,317 7/31/2015 TOTALS $780.000 $9.758.38 5491531 APPENDIX C MIF Loan Fund 2010 Status Report � � 6)k- Original Loan Outstanding Monthly Balance as of Loan Borrower Originated Amount Term Rate Pymt. 12131110 Maturity A 7/2/2010 $500,000 8 2.00% $5,640 $480,723 7/2/2018 TOTALS $500.000 $5.640 $480.723 r' ALIFBIPA Me Economic Development Authority 2010 Year End Financial Statements � Lo)- Hutchinson Community Development Corp - EDA (9109) AS OF DECEMBER 31, 2010 BALANCE SHEET OPERATIONS FULL ACCRUAL INTERNAL USE ONLY ASSETS TOTAL Cash $ 127,544 Accounts Receivable - TOTAL ASSETS 127,544 LIABILITIES Accounts Payable 351 Accrued Payroll & Vacation 4,917 TOTAL LIABILITIES 5,268 EQUITY Reserved - Land (Warrior Sale) 56,736 Unreserved 65,540 TOTAL FUND BALANCE 122,276 TOTAL LIABILITIES & FUND BALANCE $ 127,544 199 Hutchinson Community Development Corp - EDA (9109) AS OF DECEMBER 31, 2010 Statement of Revenues & Expenditures FULLACCRUAL INTERNAL USE ONLY Object Available Code Description Budget December YTD Balance REVENUES 4011 TAXES 165,024 - 153,176 11,848 4012 DELIQUENTTAXES - - - - 4013 PENALTIES &INTEREST - - - 4141 HOMESTEAD CREDIT - 5,666 11,123 (11,123) 4316 RENTS - - 19,670 (19,670) 4340 SALES OF PROPERTY - - - - 4625 INTEREST INCOME 1.000 - 524 476 4720 REFUNDS & REIMBURSEMENTS 1,000 - 300 700 4840 CONTRIBUTIONS & DONATIONS - TOTAL REVENUES 167,024 5,666 184,793 - 17,769 EXPENDITURES 6110 WAGES REG. EMPLOYEES 83,834 6.359 73,867 9,967 6122 WAGES TEMPORARY EMPLOYEES 20,500 1,667 20.012 488 6131 VACATION PAY - - 6,889 (6,889) 6132 HOLIDAY PAY - 335 3,444 (3,444) 6133 SICK PAY - - 2,133 (2,133) 6141 PERA - COORDINATED 5,690 469 6,037 (347) 6145 FICA -CITY PORTION 8,062 507 6,447 1,615 6150 MEDICARE 1,400 119 1,506 (106) 6160 EMPL. HEALTH & INS. BENEFIT 6,400 479 5,720 680 6167 HRA ADMINISTRATION FEE - - 54 (54) 6169 FLEX ADMINISTRATION FEE - - 42 (42) 617D WORKERS COMP INSURANCE 650 61 775 (125) TOTAL SALARIES & FRINGE BENEFITS 126,536 9,996 126,925 (390) 6205 OFFICE SUPPLIES 700 - 295 405 6210 OPERATING SUPPLIES 3,500 211 2,725 775 TOTAL SUPPLIES, REPAIRS, & MAINT. 4,100 214 3,020 1,180 6301 PROFESSIONAL SERVICES 6,000 - 3,256 2,744 6305 OTHER CONTRACTUAL 3,000 - 450 2,550 TOTAL CONSULTING 9,000 - 3,706 5,294 6310 COMMUNICATIONS 3,200 59 2,568 632 6311 POSTAGE 400 22 547 (147) 6320 TRAVEL SCHOOL CONFERENCE 1400 9 1,148 252 6321 CAR ALLOWANCE - TRAVEL 2,500 150 1.625 875 6330 ADVERTISING - - 443 (443) 6340 PRINTING & PUBLISHING 1,500 137 721 779 6370 CONTRACT REPAIR & MAINTENANCE - 142 1,437 (1,437) 6379 VEHICLE RENT 500 - - 500 6385 DATA FROG EQUIPMENT RENTAL 950 950 TOTAL OTHER SERVICE & CHARGES 10,450 519 8,489 1,961 6735 SOUTHWEST MN FOUNDATION 5,000 - 5,000 TOTAL TRANSFERS 5,000 - 5,000 - 6901 DUES & SUBSCRIPTIONS 1,000 565 872 128 6902 TAXES 9,600 - 14.819 (5219) 5909 MISCELLANEOUS 500 911 8.602 (8,102) TOTAL MISCELLANEOUS 11,100 1,476 24,293 (13,193) 7010 LAND - - - 7015 IMPROVEMENTS TO LAND - - 600 (600) 7030 MACHINERY & EQUIPMENT 700 581 119 TOTAL CAPITAL OUTLAYS 700 - 1,181 (481) TOTAL EXPENDITURES 166,986 12,202 172,615 (5,629) Revenues over (under) expenditures - Operations $ 38 S (6,536) $ 12,178 $ (12,140) Special Projects: STRITESKY PROPERTY TILING (Auth $10K) - - 9,875 (9,875) WEATHERALL PROP. DEMOLITION (Auth $30K) - - 27,561 (27,551) SHOVEL READY CERTIFICATION (Auth $10k) - 2,950 8,470 TOTAL SPECIAL PROJECTS - 2,950 45,906 (45,906) Revenues over (under) expeditures - Total 38 (9,4Sfi) (33.726) 33,756 iii) Hutchinson Community Development Corp - EDA AS OF DECEMBER 31, 2010 209 3 ECONOMIC DEVELOPMENT LOAN FUND (9114) 523,991 FULLACCRUAL (2,7401 INTERNAL USE ONLY ASSETS TOTAL Cash 3 403,080 Amovms Receivable 4D3,08D SimeSky Property 32,41131 Ncles Receivab;e S 927.071 Wafter Marmiaclunng 28.683 Ash li industries 20.900 Total Notes Receivable 49,583 Loans Receivable Warrior Manufacturing 108.631 CUetomer F13W(l 333316 � Total Loans Receivable 441,947 TOTAL ASSETS 92'7,071 LIABILITIES Acco.-as Payanlc 209 3 Geier <cU Rcveitwts 523,991 TOTAL LIABILITIES (2,7401 EQUITY tuna Balance {25.0001 Re"Ned 276.6d7 Unreserved 4D3,08D TOTAL FUND BALANCE 403,080 TOTAL LIABILITIES 8 FUND BALANCE S 927.071 ECONOMIC DEVELOPMENT LOAN FUND (9114) Statement of Revenues & Expenditures FULL ACCRUAL INTERNAL USE ONLY Object Available Corte OobcAption etrdgel December YTD Balance REVENUES 4625 IN1f RFSt FARNED 4705 LOAN RF PAYMENTS 4720 REFUNDS d REPABURSI'MEN7S 4825 IRANSFERk4 TOTAL REVENUES EXPENDITURES 6301 PROSESSADNAL 5F RVICES 6650 LOAN TOTAL EXPENDITURES Revenues over (under) expenditures 2500 4n7 209 3 10,000 1732 17.740 (2,7401 - 25,000 {25.0001 276.6d7 276.637 !27653 %) _ 12.500 278,389 314,784 4302,284) 50:000 50.000 So No $0.000 $ 37,500 $ 278.359 _$ 114,784 $ , 352,284 � � bt�)- Hutchinson Community Development Corp - EDA 1,212 AS OF DECEMBER 31, 2010 130.000 11.503 ENERGY LOAN FUND -DOWNTOWN LOAN FUND (9115) '42 FULL ACCRUAL 400 INTERNAL USE ONLY 132,600 11,503 ASSETS TOTAL Cash 5 386.902 Loans Rece,vable 629.702 Ce x Property - CapMal Asset 157 -195 Nfnght Property - CaPAW Asset 44.134 TOTAL ASSETS 1,217,933 LIABILITIES Accounts Payable 2,518 Deferred Revenues (loans receivable) 629,702 TOTAL LIABILITIES 632,220 EQUITY Invesled In Capilai Assets 201.329 Unreserxed 384,394 TOTAL FUND BALANCE 585,713 TOTAL LIABILITIES 6 FUND BALANCE T1 ENERGY LOAN FUND • DOWNTOWN LOAN FUND (91 '15) Statement of Revenues & Expenditures FULL ACCRUAL INTERNAL USE ONLY Object Available Code Description Budget December YTD Balance REVENUES 4625 INTEREST EARNED 470E COMMERCIAL LOAN REPAYMENTS 4720 REFUNDS & REIMB TOTAL REVENUES EXPENDITURES 6370 CONTRACT REPAIR & MAINT. 6650 LOANS 6909 MISCEt. tANEOUS 7-010 '—AND TOTAL EXPENDITURES Revenues over (under) expenditures 2 500 - 1,212 1,288 130.000 11.503 129.258 '42 400 0001 132,600 11,503 130,870 1,630 200,000 2 535 107,451 92.549 - - 539 1539) 200,000 2,535 107,990 92,010 (67,500) 8,968 22,880 {90,380) ) III L�) Hutchinson Community Development Corp - EDA AS OF DECEMBER 31, 2010 Code Description Budget December MINN. INVEST. LOAN FUND (9120) - (NuCrane) Balance FULL ACCRUAL INTERNAL USE ONLY REVENUES ASSETS TOTAL Casr, 5 3Z8�— Loans Receivae?, 476; LOAN REPAYMENTS - 20.146 Loan INUGanei 480.723 TOTAL ASSETS 513,618 LIABILITIES Accounts Payable Deterred Revenues {loan rece,vable) 480723 TOTAL LIABILITIES 480,733 EQUITY Unreserved 32,695 Reserved - TOTAL FUND BALANCE 32,895 TOTAL LIABILITIES & FUND BALANCE 5 513,618 MINN. INVEST. LOAN FUND (9120) - (NuCrane) Statement of Revenues & Expenditures FULLACCRUAL INTERNAL USE ONLY Object Available Code Description Budget December YTD Balance REVENUES 4625 INTEREST INCOME - - 763 1763) 476; LOAN REPAYMENTS - 20.146 136,791 (136791) 4166INTERGOVERNMENTAL REVENUE - - _Na L030 1500,040) 4720 REFUNOS&REWS TOTAL REVENUES - 20,146 631,554 (637.554) EXPENDITURES 5550LOANS 67,50 TRANSFER OUT 6969 MISCELLANEOUS 7610 LAND TOTAL EXPENDITURES Revenues over (under) expenditures 5DO 0100 (500.`300) 276637 276,637 276,637 776.637 (500,000) (256,499) (139,083) _ 131 7,354) 1�q APPENDIX E Adopted EDA Budget, 2011 oq [included in hard copy only] 11�� APPENDIX F Economic Development Authority Statements of Financial Position, 2008 — 2010 iii) Hutchinson Economic Development Authority Statement of Financial Position, 2010 As of December 31, 2010 (UNAUDITED) Cash Operations $127,544 Downtown Revolving Loan Fund $386,902 Economic Development Revolving Loan Fund $403,080 Minnesota Investment Fund (MIF) Loan Fund $32,895 Total Cash $950,421 Loans Downtown Loans $629,902 Economic Development Loans $441,947 Minnesota Investment Fund (MIF) Loans $480,723 Land Write -Down Loans (forgivable) $91,784 Total Loans $1,644,356 Real Estate (Book value) Wetherell Property (1.797 acres @ $51,694 / acre) $92,894 Note 1, Note 1A Stritesky Property (77.76 acres @ $5,208 ! acre) $405,000 Goebel Property (5.7 acres @ $26,585.32 / acre) $151,536 Cenex! Wright Property (3.03 acres, 3rd Ave. NW) $351,329 Hackbarth Property (30.74 acres @ $30,000 / acre) $922,200 Note 2 Hackbarth Property (3.18 acres $ 40K / ac; 5th Ave. n /s) $127,200 Note 3 Hackbarth Property (5.65 acres, @ $35K / ac; 5th Ave. s /s) $197,750 Total Real Estate $2,247,909 TOTAL ASSETS 54.842.686 LIABILITIES Real Estate Cenex Property (repay CIF) ($150,000) Cenex Property (1.75 ac. @ $32,967 / ac.; former RR right -of -way) ($57,692) Note 4 Hackbarth Property (Land Acquisition - to CIF) Note 7 ($933,221) Note 5 Hackbarth Property (Infrastructure - to CIF) ($346 773) Noce 6 Total Payable ($1,487,686) TOTAL LIABILITIES EDA EQUITY $13SUM Note 1: Property initally priced at $35K / acre; adjusted to $51,694 / acre to reflect building demoliton costs Note IA: Property subject to 2/3 land write -down program for Customer Elation ($30,965 actual) Note 2: Reduced by $58,579.89 for sale of 1.95266 acres to CHIPS Note 3: All Hackbarth lots north of 5th Avenue replated to be "dry" acres only and reflected in acre total noted. Note 4: City has contract - for -deed in place; can be acquired sooner by paying McLeod County Rail Authority Note 5: Reduced by $40,692.78 from 2009, proceeds from land sale to CHIPS Note 6: Reduced by $17,426.80 from 2009, proceeds from infrastrucutre "sold" to CHIPS Note 7: CIF is the city's Community Investment Fund \ to-)- Hutchinson Economic Development Authority Statement of Financial Position, 2009 As of December 31, 2009 (UNAUDITED) Cash Operations $160,742 Downtown Revolving Loan Fund $361,672 Economic Development Revolving Loan Fund $86,544 Minnesota Investment Fund (MIF) Loan Fund $171,939 Total Cash $780,897 Deposits Minnesota Community Capital Fund $25,000 Total Deposits $25,000 Grant Receivable Minnesota Investment Fund $500,000 Wetherell Property (1.797 acres @ $30,000 / acre) $500,000 Loans $405,000 Downtown Loans $690,573 Economic Development Loans $62,187 Minnesota Investment Fund (MIF) Loans $541,485 Land Write -Down Loans (forgivable) $116,204 Total Loans $1,410,449 Real Estate (Book value) Wetherell Property (1.797 acres @ $30,000 / acre) $53,910 Stritesky Property (77.76 acres @ $5,208 / acre) $405,000 Goebel Property (5.7 acres @ $26,585.32 / acre) $151,536 Cenex / Wright Property (3.03 acres, 3rd Ave. NW) $351,329 Hackbarth Property (44.79 acres) $940,800 Hackbarth Property (6.99 acres, 5th Avenue, n /s) $127,200 Hackbarth Property (5.65 acres, 5th Avenue, s /s) $197,750 Total Real Estate $2,227,525 TOTAL ASSETS 54.943.871 LIABILITIES Real Estate Cenex Property (repay CIF) ($150,000) Cenex Property (1.75 ac @ $32,967 1 ac.; former RR right -of -way) ($57,692) Hackbarth Property (Land Acquisition - to CIF) ($973,914) Hackbarth Property (Infrastructure - to CIF) ($364 200) Total Payable ($1,545,806) TOTAL LIABILITIES ($1.545.806) EDA EQUITY 3.398.065 Note: CIF = Community Investment Fund IIg Hutchinson Economic Development Authority Statement of Financial Position, 2008 As of December 31, 2008 (UNAUDITED) Cash Operations $109,796 Downtown Revolving Loan Fund $324,140 Economic Development Revolving Loan Fund $109,349 Minnesota Investment Fund (MIF) Loan Fund $67,003 Total Cash $610,288 Deposits Minnesota Community Capital Fund $25,000 Total Deposits $25,000 Loans Downtown Loans $713,067 Economic Development Loans $59,184 Minnesota Investment Fund (MIF) Loan $640,334 Land Write -Down Loans (forgivable) $141,503 Total Loans $1,554,088 Real Estate (Book value) Wetherell Property (1.797 acres @ $30,000 / acre) Stritesky Property (77.76 acres @ $5,208 / acre) Goebel Property (3.86 acres @ $26,585.321 acre) Cenex Property (2 acres total) Hackbarth Property (68.07 acres @ $15,425 / acre) Total Real Estate $53,910 $405,000 $102,619 $300,000 $1.050.000 $1,911,529 TOTAL ASSETS 54.100.905 LIABILITIES Real Estate Cenex Property (repay City Development Fund) ($150,000) Hackbarth Property (repay City Development Fund) ($200,000) Hackbarth Property Contract for Deed (5 yrs @ $192,487) ($962.4351 Total Payable ($1,312,435) TOTAL LIABILITIES (_t .312 435J EDA EQUITY $2.788.470 ) � t�) APPENDIX G Hutchinson EDA Land Holdings, 2010 Hutchinson EDA Land Holdings INDUSTRIAL PARK 1140 5th Avenue SE 1.79 Goebel Property 1020 5th Avenue SE 3.86 Goebel Property 1030 5th Avenue SE Price Stritesky Property Name Location Acres Per Acre Total Notes Energy Park North 2nd Add. Lot 1, Bilk 1 3.09 $30,000 $92,700 Energy Park North 2nd Add. Lot 1, Blk 2 7.5 $30,000 $225,000 Energy Park North 2nd Add. Lot 2, Elk 2 8.57 $30,000 $257,100 Energy Park North 2nd Add. Lot 3, Bilk 2 7.23 $30,000 $216,900 Energy Park North 2nd Add. Lot 1, Bilk 3 4.35 $30,000 $130,500 Energy Park North 2nd Add. Lot 1, Blk 4, (5th Ave. n /s) 3.18 $40,000 $127,200 Energy Park / Hackbarth 5th Ave. (south side) 5.65 $35,000 $197,750 Will need retention pond. Wetherell Property 1140 5th Avenue SE 1.79 Goebel Property 1020 5th Avenue SE 3.86 Goebel Property 1030 5th Avenue SE 1.84 Stritesky Property 765 Railroad Street SE 77.76 TOTALS 12432 Acres Cenex Redevelopment 220 3rd Avenue NW 3.03 $51,694 $92,532 Customer Elation has option $26,585 $102,619 $26,585 $48,917 $5,208 $405,000 Ponding requirements $1.896,218 Developable 0.7575 acre $3.06 psf 25% shore land district limitation (32,997 sf) 131,545 sq. feet total area Hop us out .. keep your r hhcttxxxl firE rrydrant stxn-v fii3v TO. Cifizens of the Hutchinson Fire District, Mayors, City Councils, and Town Board Supervisors Fronx Brad Emans, Fire Chief Date: 02/01/2011 Re: Monthly Update on Activities of the Hutchinson Fire Department for January 2011 Fire Department Response: The Fire Department responded to 44 calls for service in the month of January. Fire Officer Only Response: A "fire officer only" responded to 18 calls in January saving the Hutchinson Fire District the cost of a "general" alarm estimated at $3,276.00 for the month. Response Time (First Emergency Vehicle Out of the Door): January -4 minutes 30 seconds. Example of a Few of the Calls: • The FD responded to a large retailer on the south end of the city for a natural gas leak in the service area. The gas in that area was isolated /shut off and the building ventilated; • The FD responded to an apartment unit fire alarm, the alarm had been activating for a considerable amount of time before anyone in the building contacted the FD; • The FD responded to two different motor vehicle accidents in the city where victims of the accident had to be extricated; • The FD responded to a natural gas leak in an industrial building in the southeast part of the city, the building was checked for high explosive levels. The building was then naturally ventilated; • The FD responded to a person trapped in a new elevator in one of the multi -story apartment buildings in the city. The problem turned out to be operator error; • The FD responded to 10 carbon monoxide calls in the fire district, of the eight approximately half of them actually had CO in their home. Causes: faulty water heater, car running in the garage, wood buming stove exhaust pipe plugged, and a faulty furnace; • The FD responded to residential chimney fire in the southwest part of the city. The chimney was completely blocked due to poor maintenance on the wood buming system. The owner was advised to have the chimney professionally inspected due to the potential damage the fire did; • The FD responded to a large mufti- family apartment building in the southwest part of the city when a resident forgot about the food cooking on the stove. The unit suffered minimal smoke damage. • The FD responded to auto extrication in the rural fire district when a driver lost control of the vehicle and struck a tree. I I �� Breakdown of the Calls for the Month: City Type of Call Number for the Month Residential 2 CommerciaVi ndustrial 6 Mufti-Family 4 School 1 Grass 0 Medical 5 CO 9 Rescue 5 Haz-Mat Leak/Spill 5 Vehicle 0 Sk -Wam 0 Mutual Aid 0 Total 37 Structure Fires 1 Arson 0 Rural: Type of Call Number for the Month Residential 0 Commercial / Industrial 0 School 0 Farm Building 0 Grass 0 Medical 3 CO 1 Rescue 3 Haz -Mat Leak/Spill 0 Vehicle 0 Mutual Aid 0 Total 7 Structure Fires 0 Arson 0 Training: Firefighters trained on the following topicstequipment in December- • Completed one of four annual training sessions on OSHA required subject training, they include Lock- OutlTag -Out, Confined Space, Trench and Elevation Rescue Hazards; • Completed the medical First Responder required training/testing as part of the 44 Plan. This session was on CPR and AED's; • Completed the annual equipment inventory in the building and trucks; • Developed and implemented a "new" officer training class with a focus on incident command, offensiveldefensive firefighting, firefighter safety, and the affects construction type has on fire. • Page 2 I a) Fire Prevention / Public Relations / Other information: • Hutchinson FD developed and then hosted the first meeting of the area Fire Training Officers. This is an attempt to start the "Shared Services" concept, originally addressed in 2010; • The Rental Registration project for 2011 is approximately 2/3 complete; we have been very impressed by the response from our rental property owners this year. The actual inspections of the large apartment buildings will be taking place over the next 4-6 weeks; the apartment units are already scheduled for the entire year and will start in the spring. Measurements: 1. Number of calls that required more than one engine, one IC, and four firefighters and one Engine in January: 12 2. Number of Calls that required more than the "standard required by law investigation" in January:1 3. Estimated dollars "saved in property" by the Hutchinson Fire Department response for the month of January: $200,000 4. Estimated dollars "lost in property" to fire in January: $0 Pracacc S;alety ill the I- Ionic by fnslalling and NIuaraining Smokc I)ctcctois and GJr?x3r; MutIoNidt. DcWchxs • Page 3 nU) Hutchinson Public Library Board Minutes Monday, November 22, 2010 Present: John Paulsen, Stacey Nass, Abby Dahlquist, Guy Stone, Eric Yost, Janet Vacek, Roger Vacek, and Mary Henke, Ex- officio John called the meeting to order. The minutes from the Sept.27, 2010 meeting were reviewed. Abby moved the minutes be accepted and Guy seconded the motion. Carried. Old Business 1. Accidental Hero Program. Ninety people were present and the consensus was that it was a very good program. Mary reviewed the event evaluation results. More men than usual were present and a lot of people who don't usually attend our programs. New Business 1. Legacy Funds. We are in the 2nd year of a two -year cycle and will have $7,700 to spend at the McLeod Libraries by June 30. We brainstormed for program ideas and came up with a list of ideas. a. Film Festival in partnership with the State Theatre b. McLeod Co. Museum program in a trunk. Contract with Lori Pickell- Stangel, museum director to develop another program like the Pioneer Trunk on a topic like Little Crow or McLeod County's Greatest Generation. c. Take a bus into the Twin Cities to go to the Science Museum to see the King Tut exhibit, the Swedish Institute or the Bell Museum. d. Cooperative project with the Clay Coyote, Crow River Arts, or Center for the Book Arts. e. An event for the four McLeod Libraries to kick off the Summer Reading Program. 2. Disposal of the Old Computers. Pioneerland has cleared everything off the computers. 12 computers are about 4-5 years old and have the Windows XP program that can be added on. Other libraries are selling their replaced computers and monitors for $50- $100. Mary asked if we should donate them to the City if they could use them. Another option would be to give them to local charities, Friends of the Library, Burich Foundation or the Hutchinson Community Foundation. Guy made the motion to contact 1) City, 2) Funders of the computer replacement project, and 3) Local charities and non - profits to find out if they could use them. Roger seconded the motion and the motion passed. If there are any computers left, they will be offered to the library patrons. 3. Pioneerland Library System representative from Hutchinson. Roger volunteered. Steve Cook, the mayor, may want to assign a city council member to the position. Steve, John Paulsen, and Mary Christensen, the newly elected council member, will meet. Mary C. mayor may not be interested in this position. Next Meeting: There will be no December meeting unless needed. The board will be notified by email. The next meeting will be on Monday, January 24, 2011. Guy made a motion to adjourn the meeting, seconded by Roger, and motion carried. Respectfully submitted, Janet Vacek, Co- Secretary I 10- Sidewalk Snow Removal Monthly Report January 2011 Monthly Summary of Sidewalk Snow Removal Noncompliance A summary of sidewalk snow removal notices left at properties not in compliance with Chapter 90.01 Ice and Snow on Public Sidewalks, of the Hutchinson City Code of Ordinances can be found below. 24 hours were given to those receiving notice to remove snow deposited onto the public sidewalk. Number of properties that received snow removal notice I l Number of properties cleared by City order 1 0 1 Number of properties pending compliance at month's end 1 0 Properties that were ordered to be cleared by the City House Street Quadrant Property Owner City PID Dean E & Amy J Hansen 417 Stoney Point Rd SW 417 Stoney Point Rd SW 01- 116 -30 -05 -0380 Hutchinson, MN 55350 l�)