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cp10-23-2012 cWorkshop — 4: 00 p.m. —Enterprise Funds Budgets AGENDA REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, OCTOBER 23, 2012 1. CALL TO ORDER — 5:30 P.M. 2. INVOCATION — Bethlehem United Methodist Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF OCTOBER 9, 2012 (b) TOWN HALL MEETING OF OCTOBER 16, 2012 Action — Motion to approve as presented 7. CONSENT AGENDA (Purpose: onlyfor items requiring Council approval by external entities that would otherwise ave een delegated to the City Administrator. Traditionally, items are not discussed.) (a) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 14058 — RESOLUTION TO DONATE FOUND PROPERTY 2. RESOLUTION NO. 14060 — RESOLUTION CALLING FOR A PUBLIC HEARING ON THE CLOSEOUT OF THE CITY'S CDBG MICROENTERPRISE ASSISTANCE GRANT 3. RESOLUTION NO. 14063 — RESOLUTION CERTIFYING SPECIAL ASSESSMENTS 4. RESOLUTION NO. 14064 - RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC CONTROL DEVICES (b) PLANNING COMMISSION ITEMS 1. CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW A 528 SQUARE FOOT ADDITION TO A 948 SQUARE FOOT GARAGE FOR A TOTAL SQUARE FOOTAGE OF 1476 SQUARE FEET LOCATED AT 22 MCLEOD AVENUE NE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 14057) (c) CONSIDERATION FOR APPROVAL OF TURKEY TROT 5K RUN (d) CONSIDERATION FOR APPROVAL OF ISSUING CATERER'S PERMIT TO FRATERNAL ORDER OF EAGLES HUTCHINSON AERIE 4441 ON NOVEMBER 8, 2012 CITY COUNCIL AGENDA —OCTOBER 23, 2012 (e) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Action — Motion to approve consent agenda 8. PUBLIC HEARINGS — 6:00 P.M. - NONE 9. COMMUNICATIONS RE UESTS AND PETITIONS (Purpose. to provide Council with information necessary to cra t wise pa icy. A ways look ng toward the uture, not monitoring past) 10. (a) CONSIDERATION FOR APPROVAL OF ACCESS AND SIGN EASEMENT FOR "HUTCHINSON" SIGN INSTALLATION Action — Motion to reject — Motion to approve 11. NEW BUSINESS (a) ORDINANCE NO. 12 -696 - AN ORDINANCE AMENDING LEASE AGREEMENT WITH HUTCHINSON HEALTH CARE (SECOND READING AND ADOPTION) Action — Motion to reject — Motion to approve (b) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 14059 - RESOLUTION RELEASING PORTIONS OF CITY OWNED HEALTH CARE SYSTEM REAL PROPERTY TO HUTCHINSON HEALTH CARE AND WAIVING RIGHT OF FIRST REFUSAL Action — Motion to reject — Motion to approve (c) ORDINANCE NO. 12 -697 - AN ORDINANCE CONVEYING PROPERTY TO HUTCHINSON HEALTH CARE Action — Motion to reject — Motion to approve (d) CONSIDERATION FOR APPROVAL OF LETTER OF INTENT WITH AMERESCO FOR DEVELOPMENT OF A SOLAR PHOTOVOLTAIC SYSTEM Action — Motion to reject — Motion to approve (e) CONSIDERATION FOR APPROVAL OF GRANT APPLICATION AND COMMITTING TO LOCAL MATCH FOR DEPOT MARKETPLACE PROJECT — ADOPT RESOLUTION NOS. 14061 AND 14062 Action — Motion to reject — Motion to approve (0 DISCUSSION ON THE ORDINANCE ALLOWING GARAGES OVER 1000 SQUARE FEET BY CONDITIONAL USE PERMIT Action - (g) CONSIDERATION FOR APPROVAL OF SETTING PUBLIC MEETINGS - DEPARTMENT OF REVENUE TAX REFORM TOWN HALL MEETING ON NOVEMBER 8, 2012, AT 7:00 P.M. AT HUTCHINSON EVENT CENTER - LUCE LINE STATE TRAIL WORKSHOP ON NOVEMBER 13, 2012, AT 9:30 A.M. IN THE COUNTY COMMISSIONERS CHAMBERS AT THE MCLEOD COUNTY COURTHOUSE - MEEKER - MCLEOD - SIBLEY HEALTH COMMUNITY FORUM ON NOVEMBER 14, 2012, AT 2 CITYCOUNCIL AGENDA —OCTOBER 23, 2012 12:00 P.M. AT HUTCHINSON EVENT CENTER Action — Motion to reject — Motion to approve 12. GOVERNANCE (Purpose. to assess past organizational performance, developpolicy that guides the organization and Counci�e the logistics of the Council. May include monitoring reports, policy development and governance process items.) (a) PLANNING, ZONING, BUILDING REPORT FOR SEPTEMBER 2012 (b) LIQUOR HUTCH QUARTERLY REPORT FOR JULY — SEPTEMBER 2012 (c) CITY OF HUTCHINSON FINANCIAL REPORT FOR SEPTEMBER 2012 (d) CITY OF HUTCHINSON INVESTMENT REPORT FOR SEPTEMBER 2012 (e) RESOURCE ALLOCATION COMMITTEE MEETING MINUTES FROM OCTOBER 2, 2012 (f) JOINT PLANNING BOARD MINUTES FROM AUGUST 15, 2012 (g) PLANNING COMMISSION MINUTES FROM AUGUST 21, 2012 (h) HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM SEPTEMBER 18, 2012 13. MISCELLANEOUS 14. ADJOURN MINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, OCTOBER 9, 2012 1. CALL TO ORDER — 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Mary Christensen, Chad Czmowski, and Bill Arndt. Member absent was Eric Yost. Others present were Jeremy Carter, City Administrator, Kent Exner, City Engineer and Marc Sebora, City Attorney. 2. INVOCATION — Rev. Paul Baker, Bethlehem United Methodist Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF SEPTEMBER 25, 2012 Motion by Arndt, second by Czmowski, to approve the minutes as presented. Motion carried unanimously. 7. CONSENT AGENDA (Purpose: onlyfor items requiring Council approval by external entities that would otherwise ave een a egate to t e City Administrator. Traditionally, items are not discussed.) (a) RESOLUTIONS AND ORDINANCES - NONE (b) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDERS - CHANGE ORDER NO. 1 -LETTING NO. 5, PROJECT NO. 12 -06 (TRUNK HWY 15 RETAINING WALL) - CHANGE ORDER NO. 2 — LETTING NO. 3, PROJECT NO. 12 -04 (2012 PAVEMENT MANAGEMENT PROGRAM) (c) CONSIDERATION FOR APPROVAL OF ACCESS AND SIGN EASEMENT FOR "HUTCHINSON" SIGN INSTALLATION (d) CONSIDERATION FOR APPROVAL OF ACTIVATION OF DEFERRED ASSESSMENTS — SA5059H (e) CONSIDERATION FOR APPROVAL OF RECOMMENDING CHARTER COMMISSION APPLICANTS TO BE FORWARDED TO CHIEF DISTRICT JUDGE — DON WALSER AND CHRIS KLEIMAN (f) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Items 7(c) and 73(e) were pulled for separate discussion. Motion by Christensen, second by Arndt, to approve consent agenda with the exception of the items noted above. Motion carried unanimously. Item 7(c) had further discussion. Jeremy Carter, City Administrator, noted this item should be pulled to vrz 1 CITY COUNCIL MINUTES - OCTOBER 9, 2012 allow time to receive formal approval from HAHC for this easement Motion by Czmowski, second by Arndt, to table Item 7(c) to the next Council meeting. Motion carried unanimously. Item 7(e) had further discussion. Marc Sebora, City Attorney, explained that, by law, the Chief Judge of the judicial district makes the appointments to the Charter Commission. The City has received the names of Chris Kleiman and Don Walser who are interested in serving. With Council's approval, these names will be forwarded to the Chief Judge for consideration. Mr. Sebora noted that there are still openings on the Charter Commission, so if there are any more interested persons, they should submit an interest form to the administration department. Motion by Czmowski, second by Christensen, to approve Item 7(e). Motion carried unanimously 8. PUBLIC HEARINGS - 6:00 P.M. - NONE 9. COMMUNICATIONS RE UESTS AND PETITIONS (Purpose: to provide Council with information necessary to craft wise po icy. A ways looking toward t e uture, not monitoring past) (a) DISCUSSION OF ADDING ROOF TO STAGE AT WEST RIVER PARK John Rodeberg, RiverSong Steering Committee, presented before the Council. Mr. Rodeberg spoke of efforts being made by RiverSong and other non - profit agencies in developing a plan to construct a roof over the recently constructed stage in Masonic West River Park for use by RiverSong, Water Carnival and other community events. RiverSong is requesting a partnership with the City and other organizations to help get the project going. The proposal is that the City consider allowing the engineering department to complete soils tests and Park/Rec and Public Works staff to help with the construction. The remaining costs are then proposed to be split with the City and the community groups. Total project costs are estimated at just over $78,000. The proposal includes City labor support in the amount of $12,150 and a financial obligation from the City in the amount of $33,000. Community groups would raise the other $33,000. City funds would come from the public sites fund. The Mayor proposed a $35,000 commitment from the City. Motion by Czmowski, second by Christensen, to approve supporting the construction of the roof over the stage which includes a $35,000 financial contribution. Motion carried unanimously. 10. 11. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF ISSUANCE OF $2,275,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2012C (ADOPT RESOLUTION NO. 14056) Bruce Kimmel, Ehlers & Associates, presented before the Council. Mr. Kimmel explained that two bids were received today for the bond sale. The low bidder was BAIRD with a bid that included a true interest rate of 2.1615 %. Mr. Kimmel summarized the results and reviewed the debt service schedules and assessment payments. Mr. Kimmel then reviewed the summary provided by the bond rater, Standard & Poor's. The bond rating remains at AA -. Motion by Arndt, second by Czmowski, to approve issuance of $2,275,000 general obligation improvement bonds, Series 2012C, adopting Resolution No. 14056. Motion carried unanimously. (b) ORDINANCE NO. 12 -696 - AN ORDINANCE AMENDING LEASE AGREEMENT WITH HUTCHINSON HEALTH CARE (FIRST READING AND SET SECOND READING AND ADOPTION FOR OCTOBER 23, 2012) Mayor Cook introduced Paul Torgerson, special legal counsel, to present before the Council. Mr. Torgerson assisted the City with the hospital privatization in 2007 and has assisted with the lease amendment now. Mr. (9-) CITY COUNCIL MINUTES — OCTOBER 9. 2012 Torgerson explained that current lease agreement and the relationship between Hutchinson Health Care and the City of Hutchinson. Mr. Torgerson explained that with the evolution of health care, the theme has become integration delivery. As such, the Hutchinson Medical Center and Hutchinson Area Health Care have a desire to integrate their two organizations. However, there are some roadblocks in the current lease agreement. Mr. Torgerson spoke of the multitude of benefits of an integration. The modified lease arrangement retains City connections with communications and input, consultation in "change of control' situations and the City will continue as the landlord. The City will receive additional cash and continuity of lease cash flows and is relieved of its exposure to the outstanding general obligation bonds. The cash payment to the City is proposed at $2 million along with a continual lease payment. (Eric Yost arrived at 6:08 p.m.) Dr. Steve Mulder, HHC CEO, presented before the Council. Dr. Mulder spoke of the good communication that has been part of this end result. The end result is beneficial to both HHC and the City of Hutchinson. Motion by Czmowski, second by Christensen, to set second reading and adoption of Ordinance No. 12 -696 for October 23, 2012. Motion carried unanimously. (c) DISCUSSION ON BURNS MANOR PROPERTY AND CONSIDERATION FOR APPROVAL OF RIGHT OF FIRST REFUSAL Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that HAHC informed the City of Hutchinson that it had received a bona fide offer for the Burns Manor property. According to the lease agreement, the City has the option to match the offer and retain the property or allow HAHC to retain the property and dispose of it as desired. Mr. Sebora explained that should the City wish to revert the property to HAHC, there are mechanisms in place to regulate development of that property. Mayor Cook noted that the Council had met in a workshop prior to the Council meeting on this topic. The overall consensus of the Council was not to match the offer and allow it to be reverted to HAHC. Motion by Czmowski, second by Cook, to not match the offer received by HAHC. Motion carried unanimously. The City will need to release the property to HAHC and follow -up with appropriate documentation. Mayor Cook noted if the developer could not meet the requirements of building the project, the sale will not go through and the property will remain with the hospital. (d) CONSIDERATION FOR APPROVAL OF SETTING TOWN HALL MEETING FOR OCTOBER 16, 2012, AT 7:00 P.M. FOR DISCUSSION OF AMENDING LEASE AGREEMENT WITH HUTCHINSON HEALTH CARE Motion by Czmowski, second by Christensen, to set town hall meeting for October 16, 2012, at 7:00 p.m. to discuss amending the lease agreement with Hutchinson Health Care. Motion carried unanimously. (e) CONSIDERATION FOR APPROVAL OF SETTING PUBLIC MEETING FOR JOHN DAVIS WORKSHOP ON THE ARTS & ECONOMIC DEVELOPMENT FOR OCTOBER 25, 2012, FROM 8:00 — 9:30 A.M. AT THE CENTER FOR THE ARTS Mayor Cook explained that John Davis has worked with the City of New York Mills and the City of Lanesboro and their accomplishments of being known for the arts. This workshop works well with the "Imagine Hutchinson" project. Mr. Davis spoke previously in Litchfield on this topic. Motion by Christensen, second by Yost, to set public meeting for John Davis Workshop on the Arts & Economic Development for October 25, 2012, from 8:00— 9:30 a.m. at the Hutchinson Center for the Arts. Motion carried unanimously. Motion by Czmowski, second by Yost, to set public meeting for October 24, 2012, at 12 — 1:30 p.m. and (S (--) CITY COUNCIL MINUTES— OCTOBER 9, 2012 7:00 — 8:30 p.m. at the Hutchinson Center for the Arts for John Davis Workshop. Motion carried unanimously. 12. GOVERNANCE (Purpose: to assess past organizational performance, develop policy that guides the organization and Counci a manage the logistics of the Council. May include monitoring reports, policy development and governance process items) (a) FIRE DEPARTMENT MONTHLY REPORT FOR SEPTEMBER 2012 (b) PUBLIC LIBRARY BOARD MINUTES FROM JULY 23, 2012 (c) WEED NOTICE MONTHLY REPORT FOR SEPTEMBER 2012 (d) PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM AUGUST 6, 2012 Council Member Arndt asked if notices could be sent to the property owners along Edmonton Avenue and such informing them that it is their responsibility to maintain the weeds. Some property owners may need to hire contractors to take care of this. 13. MISCELLANEOUS Ralph Geier, 805 School Road NW #105, presented before the Council. Mr. Geier noted that a developer will be calling the mayor tomorrow morning to discuss the Burns Manor property. Bill Arndt — Council Member Arndt encouraged residents to water their trees due to the dry weather. Council Member Arndt also noted that Lindsay Whalen and the Lynx are heading to the national championship again. He asked that the City send them a card with best wishes. Council Member Arndt also asked that a presentation be given by Lori Pickell - Stangel of the McLeod County Historical Museum in honor of the 150` Anniversary of the Indian uprising. He asked that this be given at the City recognition event on October 25, 2012. A small donation is given to the museum for this presentation. This will come out of the Council's budget. Kent Exner — Mr. Exner provided a project update and noted that leaf pick up started today. Mr. Exner also noted that an open house will be scheduled in the next month or so on the Hwy 15 South roundabout. Mayor Cook — Mayor Cook spoke of the annual transfer given by HUC to the City. There is currently a formula in place that calls for a 2.75% payment of their sales. Discussions have been taking place to increase that percentage. HUC has agreed to an additional payment of $250,000 in 2013 to the City in addition to their transfer amount. 14. ADJOURN Motion by Arndt, second by Cook, to adjourn at 6:40 p.m. Motion carried unanimously. 4 (D 6,L) Minutes Hospital Lease Amendments Town Hall Meeting October 16, 2012, 7:00 p.m. — Hutchinson City Center Present: Mayor Steve Cook, Council Member Bill Arndt, Council Member Eric Yost, Council Member Mary Christensen, City special counsel, Paul Torgerson and members of the public. Mayor Cook called the Town Hall Meeting to order. The mayor noted that tonight's meeting is to explain in more detail the lease amendments that are being proposed to the lease between the City and Hutchinson Health Care. The amendments are mainly driven to accommodate the integration between the Hutchinson Medical Center and Hutchinson Health Care. Paul Torgerson presented. Mr. Torgerson explained that in 2007, Hutchinson Area Health Care was converted from a municipally -owned organization to a private, non- profit organization. With that conversion, a lease agreement was entered into in which the City retained certain interests which included appointing a minority of the board of directors, springing membership rights, leasing of real estate and personal property and turning over other operating assets and receipt of an annual lease payment starting at $160,000. Mr. Torgerson explained that due to changes in health care, more and more organizations are integrating health care delivery. The Hutchinson Medical Center and Hutchinson Health Care have determined they would like to integrate their organizations for more efficient health care delivery. The proposed lease amendments would include the City having the ability to appoint one member to the Board of Directors, HAHC paying a $2,000,000 cash payment and annual rent, the City leasing of real estate and HAHC paying off of the general obligation bonds. Mr. Torgerson further explained that 1. the integration objectives are beneficial to the community; 2. the integration entity can bring together clinical and service line planning, strategic planning and coordinated budgeting; stability for physicians and other local health care providers; physician- driven organization; 3. the integration entity can be the focus for global contracting, shared savings, integrated quality improvement, evolving focus on "total cost of care ", patient experience, and population health, etc.; 4. continuing City connections consisting of communications and input, consultation in "change of control" situations and continues as landlord; 4. the City receives additional cash and continuity of lease cash flows; 5. the City is relieved of exposure on outstanding general obligation bonds. Mayor Cook noted that the agreement was made that the $2million cash payment must be used for community health, wellness and/or recreation. This number was arrived at based cV ( ' on market research. In addition, the City/hospital wanted to give something back to the City. Mayor Cook spoke to how well everyone has worked together to get this result. Roger Kranz, member of the public, noted that he is personally delighted with the hospital /medical center integration. Mr. Kranz asked how the $2million will be used for a wellness -based project. Mayor Cook noted that decision process will begin with the Council and public input will be sought. Raymond Norton, member of the public, asked the timetable for the exchange of monies. Mayor Cook noted that the $2million will be receipted in over three years. The bonds will be paid out based on their maturity dates and call dates. Council Member Arndt asked if Harmony River is part of this transaction at all. Dr. Steven Mulder explained that Harmony River is technically owned by Hutchinson Health Care but is managed by Presbyterian Homes. HHC is not involved in the day -to -day management, but works closely with operations and financials. The current hospital board is also the board of Hutchinson Senior Care Services. Discussions will be held if the hospital board will still want to remain in this capacity or if the senior care facility will need a more specialized board. The town hall meeting closed at 7:35 p.m. (' G6) RESOLUTION TO DONATE FOUND PROPERTY Resolution No. 14058 WHEREAS, Hutchinson Police Services has accumulated found property; AND WHEREAS, the Hutchinson City Code provides pursuant to Section 91 for the donation of found property. AND WHEREAS, the found property has been in the possession of Hutchinson Police Services for more than thirty days; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: That the Hutchinson City Council hereby approves the donation of 22" Men's Schwinn Falcon Bicycle to New Century Charter School for utilization in their developmentally handicapped therapy program. Adopted by the City Council this 23 day of October 2012. Mayor City Administrator l (a-) JAL Hutchinson MINNESOTA'S MANUFACTURING CITY MEMORANDUM Date: October 12, 2012 To: Hutchinson City Council From: Miles R. Seppelt EDA Director RE: Required Public Hearing Honorable Mayor & City Council, We are in the process of closing out a grant that the city obtained in 2010 that was designed to facilitate economic development through the establishment, stabilization and expansion of microenterprises (businesses with five or fewer employees). Upon obtaining the grant, the city contracted with the Southwest Regional Small Business Development Center (SBDC) to provide assistance to microenterprises in McLeod, Meeker and Renville counties. One of the requirements of the grant close -out is that a public hearing be held to report on the project and its outcomes. A resolution calling for a public hearing on Tuesday, November 13`" is included in your packet. If you have any questions or need additional information, please give me a call at 234 -4223. Thank you for your time and consideration. � 6 L RESOLUTION NO. 14060 A RESOLUTION CALLING FOR A PUBLIC HEARING ON THE CLOSEOUT OF THE CITY'S CDBG MICROENTERPRISE ASSISTANCE GRANT WHEREAS, a public hearing is required to close out a Community Development Block Grant Microenterprise Assistance Grant; and, WHEREAS, a public hearing provides an opportunity to inform the public about the outcomes of the Microenterprise Assistance program, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, That a public hearing on the closeout of the CDBG Microenterprise Assistance Grant is hereby called and shall be held on November 13`", 2012, at 6:00 PM, at the City Council Chambers located in City Center, located at 111 Hassan Street SE, Hutchinson, Minnesota; Adopted by the City Council this 23 day of October, 2012. ATTEST: Jeremy J. Carter Steven W. Cook City Administrator Mayor `) (99- -�' 14063 :IAL ASSESSMENTS CERTIFICATION CITY OF HUTCHINSON TO THE COUNTY OF MCLEOD BE IT RESOLVED BY THE CITY COUNCIL OF HUTCHINSON, hat the following embraces unpaid assessments levied by the City Council `Hutchinson, Minnesota, under Statutes Sec.429.011 to 429.111 for the rrious assessments of the City of Hutchinson, to be levied and assessed upon e properties as listed for the following purposes for the current year, and that copy be sent to the County Auditor - Treasurer of said McLeod County, Minnesota: 04 -03 Sanitary Sewer 04 -13 Sanitary Sewer 08 -01 Watermain,Sanitary Sewer 04 -03 Let 3 03 -17 Storm Sewer 03 -19 Storm Sewer 04 -06/7 Storm Sewer 04 -05 Storm Sewer 04 -09 Storm Sewer 04 -10 Storm Sewer 02 -09 Storm Sewer 04 -04 Storm Sewer 05 -17 Storm Sewer 06 -01 Storm Sewer O6 -01 Storm Sewer 08 -04 Storm Sewer 08 -02 Storm Sewer 08 -05 Storm Sewer 02 -18/02 Storm Sewer 09 -0313 Strom Sewer 06 -01 Storm Sewer 03 -05 Bituminous Surfacing 03 -19 Lateral Trunk ROW 05 -04 & 05 -05 Sidewalk & Street Lights 05- 04/05 -05 Concrete Side walk 10 -01 Adams St 10 -01 Adams St 10 -02 Sherwood St SE extension 10 -02 Sherwood St SE extension 11 -04 Let 3 PMP James, Kouwe, Water 11 -04 Let 3 PMP James, Kouwe, Water 11 -01 Let 1 School Rd NW 11 -02,03 Let 2 Industrial Blvd 11 -05 Let 4 PMP Jackson, Roberts, Bradford, others 12 -04 Let 3 PMP Ash, Oak, Maple, Northwoods 12 -01 Let 1 5th Ave NW 12 -09 Let 8 Les Kouba Parkway & Lind St 03 -01 Trunk & Lateral Sanitary Sewer 05 -10 Trunk & Lateral Storm Sewer 06 -03 Lateral Storm & Sewer 09 -0414 Lateral Water Main 05 -01 Trunk & Lateral Storm Sewer 9 (Q- C: Userslmstarke\ AppData \Locai\Microsoft\Windows\Temporary Internet Files \Content.Outlook\TPEWQF4912012 CERTIFICATION RESOLUTION WATERMAIN AND SANITARY SEWER 9th installment of 10 yr assessment Roll #5070 9th installment of 10 yr assessment Roll #5071 5th installment of 10 yr assessment Roll #5088 1 st installment of 9 yr assessment Roll #5070C STORM SEWER 10th installment of 10 yr assessment Roll #5063 10th installment of 10 yr assessment Roll #5064 9th installment of 10 yr assessment Roll#5066 9th installment of 10 yr assessment Roll #5067 9th installment of 10 yr assessment Roll#5068 9th installment of 10 yr assessment Roll#5069 9th installment of 10 yr assessment Roll #505913 8th installment of 10 yr assessment Roll #5072 8th installment of 10 yr assessment Roll #5077 7th installment of 10 yr assessment Roll#5079 6th installment of 9 yr assessment Roll #5079B 5th installment of 5 yr assessment Roll #5086 5th installment of 10 yr assessment Roll #5087 5th installment of 10 yr assessment Roll #5089 5th installment of 10 yr assessment Roll#5059F 4th installment of 10 yr assessment Roll#5090 3rd installment of 10 yr assessment Roll #5079C STREET IMPROVEMENTS 10th installment of 10 yr assessment Roll#5062 1 Oth installment of 10 yr assessment Roll#5065 8th installment of 10 yr assessment Roll #5074 7th installment of 9 yr assessment Roll #5080 3rd installment of 10 yr assessment Roll #5093 3rd Deferred Assessments RoIWt5093A 3rd installment of 10 yr assessment Roll#5094 3rd Deferred Assessments Roll #5094A 2nd installment of 10 yr assessment Roll #5096 2nd Deferred Assessments Roll #5096A 2nd installment of 10 yr assessment Roll #5097 2nd installment of 10 yr assessment Roll #5098 2nd installment of 10 yr assessment Roll#5099 1st installment of 10 yr assessment Roll #5101 1st installment of 10 yr assessment Roll #5102 1st installment of 10 yr assessment Roll #5103 TRUNK SANITARY SEWER loth installment of 10 yr assessment Roll #5061 3th installment of 10 yr assessment Roll #5075 rth installment of 10 yr assessment Roll #5082 fth installment of 10 yr assessment Roll #5092 ird installment of 10 yr assessment Roll#5075B 04 -03 Sanitary Sewer 04 -13 Sanitary Sewer 08 -01 Watermain,Sanitary Sewer 04 -03 Let 3 03 -17 Storm Sewer 03 -19 Storm Sewer 04 -06/7 Storm Sewer 04 -05 Storm Sewer 04 -09 Storm Sewer 04 -10 Storm Sewer 02 -09 Storm Sewer 04 -04 Storm Sewer 05 -17 Storm Sewer 06 -01 Storm Sewer O6 -01 Storm Sewer 08 -04 Storm Sewer 08 -02 Storm Sewer 08 -05 Storm Sewer 02 -18/02 Storm Sewer 09 -0313 Strom Sewer 06 -01 Storm Sewer 03 -05 Bituminous Surfacing 03 -19 Lateral Trunk ROW 05 -04 & 05 -05 Sidewalk & Street Lights 05- 04/05 -05 Concrete Side walk 10 -01 Adams St 10 -01 Adams St 10 -02 Sherwood St SE extension 10 -02 Sherwood St SE extension 11 -04 Let 3 PMP James, Kouwe, Water 11 -04 Let 3 PMP James, Kouwe, Water 11 -01 Let 1 School Rd NW 11 -02,03 Let 2 Industrial Blvd 11 -05 Let 4 PMP Jackson, Roberts, Bradford, others 12 -04 Let 3 PMP Ash, Oak, Maple, Northwoods 12 -01 Let 1 5th Ave NW 12 -09 Let 8 Les Kouba Parkway & Lind St 03 -01 Trunk & Lateral Sanitary Sewer 05 -10 Trunk & Lateral Storm Sewer 06 -03 Lateral Storm & Sewer 09 -0414 Lateral Water Main 05 -01 Trunk & Lateral Storm Sewer 9 (Q- C: Userslmstarke\ AppData \Locai\Microsoft\Windows\Temporary Internet Files \Content.Outlook\TPEWQF4912012 CERTIFICATION RESOLUTION OFF STREET PARKING /SIDEWALK installment of 9 yr assessment Roll#5076A Plaza 15 parking lot installment of 10 yr assessment Roll#5100 11 -06 Let5 Plaza 15 parking lot REASSESSED ROLLS City Property ID # STORM WATER Address 5th installment of 10 yr assessment Roll #5085 08 -04 SW project DAMIAN AMBERG UTILITY - STREET CONSTRUCTION- ENERGY PARK NORTH $471.27 4th installment of 10 yr assessment Rol#15091 09 -01 Utility- street APPLEGATE PROPERTIES DEFERRED ASSESSMENT ROLLS ACTIVATED FOR COLLECTION 9th installment of 10 yr assessment Roll #294D 94 -03 Storm Water 8th installment of 10 yr assessment Roll #281 B 1992 Water Main 8th installment of 10 yr assessment Roll #293D 1994 Storm Sewer 8th installment of 10 yr assessment Roll#30313 1995 Storm Sewer 2nd installment of 5 yr assessment Roll#5082A 06 -03 Let 3 1st installment of 10 yr assessment RoIW5059H 02 -18 Let 9 Jefferson St $2.37 BE IT FURTHER RESOLVED: WATER, SEWER 06- 116 -29 -12 -0140 ALL THESE UNPAID BILLS TO BE CERTIFIED TO 2012 TAXES 570 GLEN ST SW 526.29 COLLECTION IN 2013. WATER, SEWER 31- 117 -29 -09 -0710 Unpaid water, sewer bills, weed cutting, 584 BLUFF ST NE 59.91 snow removal and tree removal services to be certified to taxes City Property ID # Owner Address Amount County PID # Description 07- 116 -29 -03 -0120 DAMIAN AMBERG 1056 JORGENSON ST SE $471.27 23.159.0200 WATER, SEWER 31- 117 -29 -14 -0310 APPLEGATE PROPERTIES 126 FRANKLIN ST NW $380.84 23.056.2880 WATER, SEWER 06- 116 -29 -03 -0980 MABEL BASEMAN 234 JEFFERSON ST SE S45.84 23.050.2080 WATER, SEWER 06- 116 -29 -07 -0580 BRAD BURCH 445 ADAMS ST SE $210.96 23.050.3700 WATER, SEWER 12- 116 -30 -09 -0060 COUNTY FAIR MARKET PLACE 1310 HWY 15 S #106 $2.37 23.325.0060 WATER, SEWER 06- 116 -29 -12 -0140 JESSE DOHERTY 570 GLEN ST SW 526.29 23.143.0240 WATER, SEWER 31- 117 -29 -09 -0710 KEVIN ERICKSON 584 BLUFF ST NE 59.91 23.056.0360 WATER, SEWER 06- 116 -29 -08 -0150 JOHN FORCIER 415 HURON ST SE $196.36 23.050.3430 WATER, SEWER 10- 116 -30 -01 -0900 FORECLOSURE 1113 PRAIRIE VIEW DR SW $18.45 23.427.0020 WATER, SEWER 31- 117 -29 -09 -0430 FORECLOSURE 245 HWY 7 E $5.10 23.056.0150 WATER, SEWER 01- 116 -30 -01 -0160 FORECLOSURE 32 LYNN RD SW $39.28 23.108.0140 WATER, SEWER 31- 117 -29 -02 -0120 FORECLOSURE 3511TH AVE NE 511.08 23.106.0120 WATER, SEWER 06- 116 -29 -07 -0560 FORECLOSURE 436 MONROE ST SE S472.44 23.050.3680 WATER, SEWER 31- 117 -29 -10 -0510 FORECLOSURE 488 PROSPECT ST NE $60.06 23.056.1380 WATER, SEWER 06- 116 -29 -06 -0880 FORECLOSURE 546 JEFFERSON ST SE 5645.47 23.050.4890 WATER, SEWER 31- 117 -29 -07 -0450 FORECLOSURE 831 MAIN STN $76.72 23.232.0040 WATER, SEWER 01- 116 -30 -15 -0410 FORECLOSURE 955 KEITH ST SW $44.48 23.394.0010 WATER, SEWER 01- 116 -30 -07 -0560 FORECLOSURE 966 LEWI5 AVE SW $5.59 23.172.0070 WATER, SEWER 06- 116 -29 -03 -0080 EMILGERMER 25 JEFFERSON ST SE $45.84 23.050.0380 WATER, SEWER 07- 116 -29 -03 -0460 EMCGOODWIN 1085 RANDALL RD SE 5144.56 23.160.0290 WATER, SEWER 25- 117 -30 -12 -0380 HUTCH FAIRWAY DEV 1402 HERITAGE AVE NW $73.82 23.428.0590 WATER, SEWER 01- 116 -30 -02 -0450 MYRON JOHNSON 907 LEWIS AVE SW 535.86 23.112.0590 WATER, SEWER 06- 116 -29 -15 -0220 PATRICIA KOBRIN 940 JEFFERSON ST SE 545.84 23.216.0040 WATER, SEWER 06- 116 -29 -11 -0480 BRUCE KRECKOW 814JEFFERSON ST SE 545.84 23.145.0800 WATER, SEWER 01- 116 -30 -07 -0820 SHON LANDFAIR 965 OSGOOD AVE SW $141.32 23.180.0140 WATER, SEWER 01- 116 -30 -10 -0870 JENNIFER LUNDERBY 745 DALE ST SW 5132.29 23.176 -0420 WATER, SEWER 36- 117- 3D -02 -0270 MEADOWLINKS PAR 3 & GOL1900 NORTH HIGH DR NW 5895.96 23.309.0030 WATER, SEWER 31- 117 -29 -12 -0360 BEVERLY SCHEURER 465 WATER ST NW 545.84 23.056.0990 WATER, SEWER 31- 117 -29 -07 -0690 BRYAN SCHREPPEL 626 OAK ST NE $45.84 23.088.0140 WATER, SEWER 01- 116 -30 -16 -0640 SCOTT SCHUETTE 934 CHURCH STSW $118.62 23.133.0280 WATER, SEWER 31- 117 -29 -12 -0370 MOHAMMED SHAHIDULLAH 455 WATER ST NW $45.84 23.056.1030 WATER, SEWER 06- 116 -29 -11 -0490 KON SORENSEN 125 OAKLAND AVE SE $944.80 23.145.0820 TREE REMOVAL 01- 116 -30 -08 -0871 CHRISTOPHER JOHNSON 686 5TH AVE SW $801.62 23.124.0210 TREE REMOVAL 01- 116 -30 -09 -0670 BRETT OMAN 537 MILLER AVE SW $801.63 23.112.1770 TREE REMOVAL 01 -116 -30-01 -0410 LINCOLN BENTON 646 HARMONY LANE SW $500.00 23.112.0270 NUISANCE HRG r ) &,. Jeremy J. Carter, City Administrator Adopted by the City Council this 23rd day of October, 2012 Steven W. Cook, Mayor q (pj3 RESOLUTION NO. 14064 RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC CONTROL DEVICES WHEREAS, the Police Chief, City Engineer and Public Works Manager agree that the following areas have traffic control concerns which warrant traffic control devices, and; WHEREAS, the Hutchinson City Council has the authority to establish locates as points where traffic control devices shall be erected, pursuant to Section 7.04, Subdivision 1 of the Hutchinson City Code, and; WHEREAS, twenty feet of access space is required for emergency vehicles; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON: That the Council hereby establishes the following traffic control devices shall be installed and enforced 1. "NO PARKING" on both sides of Service Road — 4 (from Hwy 7 E to East Highland Park Dr NE and from East Highland Park Drive NE to Hwy 7 East). NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON: Adopted by the City Council this 23rd day of October 2012.. Mayor ATTEST: Jeremy J. Carter City Administrator W. Cook 1 (�Lj H MEMORANDUM DATE: October 17, 2012 for the October 23, 2012, City Council Meeting TO: Hutchinson City Council FROM: Dan Jochum, Planning Director SUBJECT: Consideration of a conditional use permit to allow a 528 sq. ft. addition to a 948 sq. ft. detached garage for a total square footage of 1476 sq. ft. located at 22 McLeod Ave. N.E. Background: The property owner, Jim Gierke, is requesting a conditional use permit to allow a 528 square foot addition to an existing 948 square foot garage for a total of 1476 square feet. Allowable lot coverage is 50 %. Approximate lot coverage with the garage addition is 37 %. Garages over 1,000 sq. ft. require a conditional use permit. The garage addition will be used as storage of vintage cars. The building meets the setbacks. Conditional use permits must meet the following conditions for approval as noted in Section 154.70 of the Zoning Ordinance: (a)The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b)The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare, and (c)The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. Additional information is contained in the attached staff report and attachments. City Council Memo October 16, 2012 22 McLeod Ave. N.E. Conditional use permit Page 2 Planning Commission Meeting: The Planning Commission held a public hearing and considered the request at their October 16 meeting. Neighboring property owner, Linus Svoboda, 39 — 5 th Ave. N.E., spoke in favor of the addition to the garage. Recommendation: The Planning Commission recommended approval of the request with the following recommendations: 1. If a building permit is not applied for within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void. 2. A home occupation is not allowed exclusively in accessory building. 3. The exterior of the proposed garage shall be consistent with the exterior of the home. 4. The garage must be accessed by a concrete or bituminous driveway. 5. The garage must not exceed 16' in height. 6. The building may not be pole constructed. 7. Drainage must not affect the neighboring properties. 8. All other applicable zoning regulations must be followed. Requested Action: Approval of the following: Approval of the Conditional Use Permit to construct a 528 sq. ft. addition to a 948 sq. ft. garage for a total of 1476 sq. ft. r ) ( 16 ) CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA RESOLUTION NO. 14057 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF CONDITIONAL USE PERMIT TO ALLOW CONSTRUCTION OF A 528 SQ. FT. ADDITION TO AN EXISTING 948 SQ. FT. DETACHED GARAGE LOCATED AT 22 MCLEOD AVE. N.E. FOR A TOTAL GARAGE AREA OF 1476 SQ. FT. REQUESTED BY JAMES GIERKE, PROPERTY OWNER FACTS 1. James Gierke, property owner, has submitted a conditional use permit request to allow construction of a 528 sq. ft. addition to an existing 948 sq. ft. detached garage located at 22 McLeod Ave N.E., Hutchinson Minnesota, for a total garage area of 1,476 sq. ft.; and, 2. The proposed property is legally described as: Auditor's Plat of Subdivision of Lot 5, North Half City of Hutchinson, Lot E 3. The Planning Commission met on October 16, 2012, and held a public hearing on the request and considered the effects of the proposal on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and consistency with the Comprehensive Plan, and hereby recommends approval of the conditional use permit request. 4. The City Council of the City of Hutchinson reviewed the request at its meeting on October 23, 2012, and has considered the recommendation and findings of the Planning Commission and recommends approval with the following recommendations: a. City Council has considered the recommendation of the Planning Commission and the effect of the proposed use on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and the effect of the use on the Comprehensive Plan. b. The Council has determined that the proposed use is in harmony with the general purpose and intent of the Zoning Ordinance and the Comprehensive Plan. c. If a building permit is not applied for within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void. d. A home occupation is not allowed exclusively in accessory building. e. The exterior of the proposed garage shall be consistent with the exterior of the home. f The garage must be accessed by a concrete or bituminous driveway. g. The garage must not exceed 16' in height. h. The building may not be pole constructed. i. Drainage must not affect the neighboring properties. j. All other applicable zoning regulations must be followed. APPLICABLE LAW 5. The conditional use permit request meets the standards of Section 154.170 in the City Code. CONCLUSIONS OF THE LAW 6. The requested conditional use permit is consistent with the City Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the application to issue a conditional use permit to James Gierke to allow construction of detached garage addition for a total square footage of 1,476 sq. ft. is hereby approved Adopted by the City Council this 23`" day of October, 2012. ATTEST: Jeremy J. Carter City Administrator Steven W. Cook Mayor `) C6) DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Brad Finans, Dolf Moon, Dave Hmsstad, Miles Seppelt, Aaron Othoudt, Jean Ward, Judy Flemming, John Webster, John Olson, Lenny Rutledge, Kent Exner, John Paulson, Marc Scbora, Jeremy Carter, Dan Hasten, Dick Nagy, Dan Joehum and Bonnie Baumetz (Persons in attendance at Planning Staff Meeting (in bold) Date: October 1, 2012, for October 16, 2012, Planning Commission Meeting Application: CONDITIONALUSE PERMIT TO ALLOW A 528 SQ. FT. ADDITION TO A 948 SQ. FT. GARAGE FOR A TOTAL SQUARE FOOTAGE OF 1476 SQ. FT. LOCATED AT 22 MCLEOD AVENUE N.E. Applicant: James Gierke, property owner CONDITIONAL USE PERMIT — Property owner, Jim Gierke, is requesting a conditional use permit to allow a 528 square foot addition to an existing 948 square foot garage, for a total of 1476 square feet Allowable lot coverage is 50 %, Approximate lot coverage with the garage addition is 37 %. Garages over 1,000 sq. ft. require a conditional use permit. The garage addition will be used as storage of vintage cars. The building meets the setbacks. GENERAL INFORMATION Existing Zoning: R -2 (Medium density residential) Property Location: 22 McLeod Ave. N.F. t)( l Conditional Use Permit Garage — 22 McLeod Ave NE Planning Commission — 10 -16 -12 Page 2 Lot Size: Existing Land Use: Adjacent Land Use And Zoning: Comprehensive Land Use Plan: Zoning History: Applicable Regulations: Analysis and Recommendation: 15,250 sq. ft. Single Family Residential R -2 (Medium density residential) Traditional Residential Neighborhood The lot is zoned R -2 and the house was constructed in approximately 1938. It appears the existing garage was constructed in 1960. Section 154.026 Staff discussed concerns with allowing garages over 1,000 sq. ft. within the City and placing reasonable conditions on these structures to protect neighboring landowners. They commented on run -off, aesthetics, screening and future uses of larger garages. Approval of a conditional use permit (CUP) is required in order to allow construction of an accessory building or garage per single family home shall exceed 1,000 square feet of floor area. A CUP shall be granted only if evidence is presented to establish the following: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. The proposal was reviewed at the October 1, 2012, staff meeting. Staff finds that the request would meet the requirements of granting a conditional use permit (Section 154.170) and recommends approval subject to the findings and conditions listed in the draft Resolution, including these specific conditions: 1. If a building permit is not applied for within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void. 2. A home occupation is not allowed exclusively in accessory building. 3. The exterior of the proposed garage shall be consistent with the exterior of the home. 4. The garage must be accessed by a concrete or bituminous driveway. 5. The garage must not exceed 16' in height. 6. The building may not be pole constructed. 7. Drainage must not affect the neighboring properties. 8. All other applicable zoning regulations must be followed. ')(4 1 S 1 4 J � CO P0 66A . Fxii*ie5 'a!o,'1s ;1 o� i � r_ 063. D070 C Y 04 Hu +61 Son Q S Lk �uIK 6 -N y f} 0T E 0 G o a � �i nf fi� Ne `� �, �� ,- , . .� -�J Yl � SOCJt CV% J s W MEMORANDUM POLICE / EMERGENCY MANAGEMENT SERVICES TO: Mayor and Council FROM: Daniel T. Hatten DATE: 10 -16 -12 RE: Turkey Trot 5K Run This Memorandum is a request from Mark Morris and SNAP fitness to conduct a 5K Run in the City of Hutchinson. The proceeds from this run will go to our local food shelf in preparation for Thanksgiving. My staff has also met with Mr. Morris and reviewed the following outline of his request. • The run would be help on 11 -17 -12 at 9:00 a.m. • The route of the 5K would be as follows • Start SNAP Fitness Franklin and 1 a1 Ave NW • Franklin St. to 2 nd Ave SW o2 nd Ave. SW to Lake St • Lake St. to Lewis Ave. • Lewis Ave. to School Rd. • School Rd. to Luce Line Trail • Continue east on the trail until approximately Main St (end) • The run would require police assistance My staff and I have reviewed the request from Mr. Morris and are comfortable accommodating it with the following provisions. • SNAP Fitness pay for two officers for two hours at the standard Rate of $51.00 per hour. • The Council approves "No Parking" beginning 24 hours prior to the event, concluding immediately following the event from: • Between Dale St. to Lake St. on 2 nd Ave. SW (south side of roadway) • Between Lake St. to School Rd on Lewis Ave (south side of roadway) If the council chooses to approve this request the Police Department looks forward to working with Mr. Morris and SNAP Fitness to make this a safe and successful event. r)(C) III Hassan Street southeast Hutchinson, MN 55350 (320)587- 5151/Fax:(320) 234 -4240 CITY OF HUTCHINSON CATERER'S PERMIT APPLICATION License Fees Annual $300.00 To obtain a Caterer's Permit, applicant must currently hold a valid retail on -sale intoxicating liquor license at a restaurant. All liquor laws and rules apply to both the on -sale license as well as this caterer's permit. Liquor liability and workers compensation insurance are mandatory and a certificate showing off premises coverage must accompany this application for a caterer's permit. Cancellation or suspension of the on -sale license invalidates the caterer's permit also. Only the licensee holding the caterer's permit shall provide food and liquor at catered events. Applicant Name (Individual. Partnership. Corporation (fCor )ioralion state f Il corporate name) DOB Social Securih 4 Trade Name or DBA of Restaurant Address of Restaurant •V or county where on -sale license issued Location Telephone m ov hi W ! Z- Dates) of Event I certify that the above information provided by the applicant is true, complete, correct and made in good faith and agree to comply with the above paragraph's requirements and all other applicable law in the Please attach the following documents to this form: I ) A copy of the applicant's caterer's permit issued by the State of Minnesota 2) A copy of the applicant's valid on -sale intoxicating liquor license 3) A copy of the applicant's valid restaurant license issued by the Health Department 4) A certificate of liquor liability insurance that states "off premises coverage included" (No applications, binders or declarations). /• 5) $100 check or money order payable to the City of Hutchinson Z: \Licenses\Applications \Caterer's Permit.doc / ,\ Signature — Authorized Applicant Date Print Full Name of Person Signing FRAT E -1 UP ILr 4TT DATDIYYYYI CERTIFICATE OF LIABILITY INSURANCE 09(29 o�2s11z 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(U AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the cerNBCate holder Is an ADDITIONAL INSURED, the polley(I4s) must be endorsed. If SUBROGATION 19 WAIVED, subject to the terms and conditions of the policy, certain policies may require an andorsameld. A statement on this certificate does not confer rights to the certl0cats holder In Ilau of such endorsemen s . PRODUCER cowun 320 -657 -2298 NAME: Insurance Planners 320 -587 -0808 PROBE I Na: 101 Main Street South E•M PO Box Be AU Jeff F Borke ha en, Ci INSURE S AFFORDING GOVERAOE NAIL e Jeff F BorkeMlagsn, CIC _ INSURED HUTCHINSON AERIE 4441 1000 Hwy 7 W Hutchinson, MN 55350 INEURENC: COVERAGES CERTIFICATE NUMBER: REVISION NU III THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE 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 AFFORDEO 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. 111 HASSAN ST un TYPE OFINSURANCE POLICY fiFF POLICY fi %I POLICY NUMe6R MM100y Y MMIDWYYYY UNIT! GENERAL LIABILITY I EACH OCCURRENCE 3 1.000,66 A X COMMERVALGENERALLIABEITY 1 0948118- 09028739.12 03116112 0316113 v ENM aoccurrana a 300,00 DU403 -MADE X❑ OCCUR MED E %P M ana anon S 10,00 PERSONAL S ADV INJURY S 1,000,00 GENERAL AGGREGATE s 1,000,00 GEHL AGGREGATE LIMIT APPLIES PER ! PRGM=T COW" AG S 1.000,00 POLICY PRO LOC $ GO N IIt GL LIMIT LIAe1LrtY ALI70 BODILY WJURYIPer arader,0 S RAAf1y LLOWNED SCHEDULED UTOT NON -O GQ PRDpnR DAMAGE PpeccNON PtE0 AUT09 AUrOS 3 UMMLLA LAS OCCUR o cc EACH OGCURRENCE 3 AGGREGATE S ETCeSSLJAe j 3 OE RETENTION WCSTATU- I EEL YRDRNEas COMPENSATION E.L EA EASI C a 600,00 A AND EMPLOYERS' LIABILITY YIN 09/)93294 0316/12 0915H3 ANY PROPRIETORIPARTNERIEXECUrIW OFFICERNEMOER EXCLUOED7 MIA E.L DISEASE- EA EAD'LOYEES 66Or0O 1mandaw In N10 ryas, deacnpa Mdar EL.OISEATE- POLIGYLIMM s 61)0,00 DESCRIPTION OF OPERATIONS 1)01 w A jProperty Section 084600- 0802973942 09115112 09716712 DWRIPTmN OF OFOAAEONS I LACAiroM3I VEHICLES IAIGCM ACORD 101, AE00N91 RWRM 309091% Irmon space to reyulNm OFF PREMISES COVERAGE INCLUDED CERTIFICATE HOLDER cAnccL.L.A I wn CITY OF HUTCHINSON 3140ULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE SxPIRATION DATE THEREOF, NOTICE WILL BE OELIVEREO IN ACCORDANCE WITH THE POLICY PROVISIONS. 111 HASSAN ST ._ AUTNORIEED RERIETEMTATNE HUTCHINSON, MN 55350 Jeff F Borkenhagen, CI .nnmr, Y•noonaAYlnFLI All riehtsreserved. ACORD 26 (2010105) The ACORD name and logo are registered marks of ACORD r ) () City of - Hutchinson Fraternal Order of Eagles Hutchinson Aerie 4441 1000:Hwv W Hutchinson NIN 5535 DBA: Fraternal Order of Eagles Hutchinson Aerie 4441 j;'! License Tv'ae:. �'. On -Sale Sunday Intox cating - C City of Hutchinson Fraternal Order of Eagles Hutchinson Aerie 4441 1000 Hwy 7 W Hateh1nson N1N 55350 DBA: Fraternal Order of Eagles Hutchinson Aerie 4441 L_CEHSE_ypE; On .Sale SntoxY :�. C LICENSE: 00003502 Issued Date: 04101/2012 Expi=ation Date: 03/31/2013 ?c'rs!__t to ty Ordinances and _=_oulz :ons a nd "cond_tioced upon - payment of t- ^.e'rec -_ ±'red fee, License is - hereby = -Anted for the tetm and o=oss stated.' POST AT LOCATION' LICENSED _NOT - TRANS EPLAB E LICENSE: 00003538 Issued Date:. 04/01/20.12 Expiration Date: - 03/31/2013 2ursuant to ay 0. di .znces and . _egui=_tzons a nd condizioned uron payment of .the red,ired fee, '?icense is hereby - .te�- for toe tee and v —.e ` stated. _i - - Q POST AT LOCATION LICENSED uo "' yid _ 2 �_ may ^_T - C -_y Rd,_^__SCr - NOT VALID UNLESS' COUNTERS'IGNE V _ — MINNESOTA DEPARTMENT OF PUBLIC SAFETY ALCOHOL AND GAMBLING ENFORCEMENT 444 CEDAR ST/SUITE 222 - ST. PAUL. MN 55101 RETAIIER5 c IDD CAR �L��iO >' a if e 02 1R $ 00.32 000 5560 88 6 VAR28 2012 MAILED FROF7 ZIP CODE 55 55 2 5333 FOE Aes•;c' 44=41 FOE Oer 4441 100-0 Hh W POST MINNESOTA DEPARTMENT of HEALTH CONSPICUOUSLY 625 Robert Street North, P.O. Box 64975 Environmental Health Division St. Paul, Minnesota 55164 -0975 (651) 201 -4505 LICENSE NO. FBL -6542 - 26274 FOR THE OR9RATION,AF License Categories: Alcohol Bar Service, t pt c Establishment LICENSE PERIOD: q7 i 4. A 1 :&12 Al ISSUED TO: V7 .. F O F A " 4441 f H it chins . . _. ere o r 1000 HlghWay 7 West Hutchinson, Minnesota 55350 NOT TRANSFERABLE AS TO PERSON OR PLACE Fee Paid: $722.50 168 MENT NAME: ie 4441 of Hutchinson �Iyw pwyTWest H' ,,.'Nnson, Minnesota 55350 County: McLeod License Types Restaurant/Place of Refreshment 1 PS 9022(8 -98) #taft of fffinnulata No. Department of Public #afetg Alrohol & Gambling Enforcement Division CATERER'S PERMIT FOE Aerie 4441 FOE Aerie 4441 1000 Hwy 7 W Hutchinson, MN 55350 HAS BEEN ISSUED THIS LICENSE/PERMIT BY THE STATE OF MINNESOTA PURSUANT TO MINNESOTA STATUTES CHAPTER 340A AND RELATED REGULATIONS 7/21/2013 EXPIRES V\ ' Alcohol & Gambling Enforcement Director THIS LICENSEIPERMIT MUST BE CONSPICUOUSLY DISPLAYED R55CKREG LOG22001VO CITY OF HUTCHINSON Council Check Register 10 /10- 10/23/12 10/18/2012 Check # Ck Date Amount Vendor/ Explanation Account Description 172735 10/10/2012 24,360.11 DUININCK INC IMPROV OTHER THAN BLDGS 172736 10/23/2012 471.32 3D SPECIALTIES SIGNS & STRIPPING MATERIALS 172737 10/23/2012 344.00 AARP PROFESSIONAL SERVICES 172738 10/23/2012 694.75 ACE HARDWARE RECEIVED NOT VOUCHERED 172739 10/23/2012 53.44 ALPHA WIRELESS COMMUNICATIONS 172740 10/23/2012 112.80 AMERICAN BOTTLING CO COST OF MIX & SOFT DRINKS 172741 10/23/2012 90.85 AMERICAN FAMILY INS CO. ACCRUED LIFE INSURANCE 172742 10/23/2012 6.55 AMERICAN MESSAGING COMMUNICATIONS 172743 10/23/2012 420.00 AMERICAN RED CROSS OPERATING SUPPLIES 172744 10/23/2012 10.50 AMERICAN WELDING & GAS CENTRAL GARAGE REPAIR 172745 10/23/2012 137.52 AMERIPRIDE SERVICES CONTRACT REPAIR & MAINTENANCE 172746 10/23/2012 1,468.90 ANDERSON CHEMICAL COMPANY CHEMICALS & PRODUCTS 172747 10/23/2012 895.55 ANIMAL MEDICAL CENTER ON CROW OTHER CONTRACTUAL 172748 10/23/2012 48.93 ARAMARK UNIFORM SERVICE UNIFORMS & PERSONAL EQUIP 172749 10/23/2012 202.80 ARCTIC GLACIER PREMIUM ICE INC COST OF MIX & SOFT DRINKS 172750 10/23/2012 316.00 ARNESON DISTRIBUTING CO COST OF SALES -BEER 172751 10/23/2012 44.74 ARROW TERMINAL LLC EQUIPMENT PARTS 172752 10/23/2012 450.71 ASPEN EQUIPMENT CO EQUIPMENT PARTS 172753 10/23/2012 310.00 AWWA- MINNESOTA SECTION DUES & SUBSCRIPTIONS 172754 10/23/2012 832.00 B & L UTILITY MAINTENANCE CONTRACT REPAIR & MAINTENANCE 172755 10/23/2012 298.64 B. W. WELDING RECEIVED NOT VOUCHERED 172756 10/23/2012 2,880.32 BACHMAN'S REPAIR & MAINTENANCE SUPPLIES 172757 10/23/2012 550.00 BCA TELEPROCESSING EQUIP 172758 10/23/2012 2,463.82 BEACON ATHLETICS OPERATING SUPPLIES 172759 10/23/2012 1,847.45 BECKER ARENA PRODUCTS OPERATING SUPPLIES 172760 10/23/2012 180.25 BERNICK'S COST OF MIX & SOFT DRINKS 172761 10/23/2012 3,400.00 BLUE VALLEY SOD RECEIVED NOT VOUCHERED 172762 10/23/2012 505.69 BRANDON TIRE CO AUTOMOTIVE REPAIR b 172763 10/23/2012 795.15 BUSINESSWARE SOLUTIONS OFFICE SUPPLIES 172764 10/23/2012 15,170.74 C & L DISTRIBUTING COST OF SALES -BEER 172765 10/23/2012 89.40 CALIFORNIA CONTRACTORS SUPPLIE SAFETY SUPPLIES 172766 10/23/2012 68.40 CARDIAC SCIENCE OPERATING SUPPLIES 172767 10/23/2012 124.99 CARTER, DION UNIFORMS & PERSONAL EQUIP 172768 10/23/2012 209.25 CARTER, JEREMY TRAVEL SCHOOL CONFERENCE 172769 10/23/2012 90.00 CARTER, RANDY CENTRAL GARAGE REPAIR 172770 10/23/2012 55.67 CENTRAL HYDRAULICS CENTRAL GARAGE REPAIR 172771 10/23/2012 182.77 CENTRAL MCGOWAN RENTALS 172772 10/23/2012 5,271.66 CHEMISOLV CORP CHEMICALS & PRODUCTS 172773 10/23/2012 500.00 CHISAGO COUNTY COURT ADMIN OTHER REVENUES 172774 10/23/2012 120.00 CHRIST THE KING RECREATION ACTIVITY FEES 172775 10/23/2012 100.00 CLABO, ARM INTA EMPLOYER HSA CONTRIBUTIONS 172776 10/23/2012 245.00 COLLINGS, GINA RENTS -BLDGS OTHER 172777 10/23/2012 454.50 COMDATA CORPORATION PROFESSIONAL SERVICES 172778 10/23/2012 1,860.00 COOK, STEVE MEETINGS 172779 10/23/2012 499.50 CORNER POST EROSION CONTROL CONTRACT REPAIR & MAINTENANCE 172780 10/23/2012 890.26 CRAGUN'S RESORT & HOTEL ON GUL TRAVEL SCHOOL CONFERENCE 172781 10/23/2012 538.73 CROW RIVER AUTO & TRUCK REPAIR AUTOMOTIVE REPAIR 172782 10/23/2012 135.28 CROW RIVER GLASS & SIGNS CONTRACT REPAIR & MAINTENANCE 172783 10/23/2012 105.00 CROW RIVER PRESS INC PRINTING & PUBLISHING 172784 10/23/2012 60.00 DAHLMAN, DUANE RENTS -BLDGS OTHER 172785 10/23/2012 3,215.40 DAY DISTRIBUTING COST OF SALES -BEER 172786 10/23/2012 330.10 DENNIS 1ESCH COST OF MIX & SOFT DRINKS 172787 10/23/2012 1,540.85 DOEPKE, PAUL RECEIVED NOT VOUCHERED 172788 10/23/2012 95.00 DOUBLE 0 AUTO REFUNDS & REIMBURSEMENTS 172789 10/23/2012 1,905.64 DPC INDUSTRIES INC CHEMICALS & PRODUCTS 172790 10/23/2012 2,062.39 DROP -N -GO SHIPPING, INC RECEIVED NOT VOUCHERED 172791 10/23/2012 640.36 E2 ELECTRICAL SERVICES INC CONTRACT REPAIR & MAINTENANCE 172792 10/23/2012 188.10 ECOLAB PEST ELIM RECEIVED NOT VOUCHERED 172793 10/23/2012 17.45 ECONO FOODS OPERATING SUPPLIES 172794 10/23/2012 170.00 ELECTRO WATCHMAN CONTRACT REPAIR & MAINTENANCE 172795 10/23/2012 194.00 EXTREME BEVERAGE LLC COST OF MIX & SOFT DRINKS 172796 10/23/2012 161.75 FARMER BROTHERS COFFEE OPERATING SUPPLIES 172797 10/23/2012 48.13 FASTENAL COMPANY COMMUNICATION MAINTENANCE b 172798 10/23/2012 56.88 FILZEN, MARY TRAVEL SCHOOL CONFERENCE 172799 10/23/2012 424.00 FIRST CHOICE FOOD & BEVERAGE 5 OPERATING SUPPLIES 172800 10/23/2012 4.62 FREY, DAGAN ACCOUNTS PAYABLE MANUAL 172801 10/23/2012 158.25 G & K SERVICES OPERATING SUPPLIES 172802 10/23/2012 60.00 GABRIELSON, TODD RECREATION ACTIVITY FEES 172803 10/23/2012 2,283.00 GARTNER REFRIGERATION & MFG, I CONTRACT REPAIR & MAINTENANCE 172804 10/23/2012 3,200.00 GAVIN, OLSON & WINTERS, LTD PROFESSIONAL SERVICES 172805 10/23/2012 5,947.67 GE WATER & PROCESS TECHNOLOGIE EQUIPMENT PARTS 172806 10/23/2012 1,621.62 GEB ELECTRICAL INC CONTRACT REPAIR & MAINTENANCE 172807 10/23/2012 2,618.05 GRAINGER SAFETY SUPPLIES 172808 10/23/2012 253.30 GRANIT BRONZ OPERATING SUPPLIES 172809 10/23/2012 528.53 GREEN LIGHTS RECYCLING REFUSE - RECYCLING 172810 10/23/2012 1,611.72 GURSTEL, STALOCK & CHARGO PA ACCRUED GARNISHMENTS 172811 10/23/2012 552.65 H.A.R.T. ACCRUED DEFERRED COMP 172812 10/23/2012 1,087.43 HACH COMPANY OPERATING SUPPLIES 172813 10/23/2012 32.45 HAMMOND, MICHELLE MEETINGS 172814 10/23/2012 119.70 HANSEN GRAVEL REPAIR & MAINTENANCE SUPPLIES 172815 10/23/2012 2,257.51 HANSEN TRUCK SERVICE RECEIVED NOT VOUCHERED 172816 10/23/2012 3,040.00 HANSON & VASEK CONSTRUCTION CONTRACT REPAIR & MAINTENANCE 172817 10/23/2012 682.81 HARPER BROOMS REPAIR & MAINTENANCE SUPPLIES 172818 10/23/2012 318.90 HASLER, INC RENTALS 172819 10/23/2012 1,675.34 HD SUPPLY WATERWORKS LTD METERS & METER PARTS 172820 10/23/2012 155.17 HED, MARILYN OFFICE SUPPLIES 172821 10/23/2012 117.27 HENKE, MARY TRAVEL SCHOOL CONFERENCE 172822 10/23/2012 441.38 HILLYARD/ HUTCHINSON CLEANING SUPPLIES 172823 10/23/2012 170.96 HIRSHFIELD'S INC REPAIR & MAINTENANCE SUPPLIES 172824 10/23/2012 3,716.46 HJERPE CONTRACTING COMMUNICATION MAINTENANCE 172825 10/23/2012 5,977.50 HOISINGTON KOEGLER GROUP INC PROFESSIONAL SERVICES 172826 10/23/2012 1,075.07 HOLT MOTORS INC CENTRAL GARAGE REPAIR 172827 10/23/2012 96.00 HOME LINE TRAVEL SCHOOL CONFERENCE 172828 10/23/2012 261.62 HUTCH CAFE OPERATING SUPPLIES 172829 10/23/2012 500.00 HUTCHINSON AREA CHAMBER OF CON TRAVEL SCHOOL CONFERENCE 172830 10/23/2012 3,848.00 HUTCHINSON AREA HEALTH CARE COMMON AREA MAINTENANCE 172831 10/23/2012 300.00 HUTCHINSON CENTER FOR THE ARTS MISCELLANEOUS 172832 10/23/2012 11,123.49 HUTCHINSON CO -OP MOTOR FUELS & LUBRICANTS 172833 10/23/2012 1,804.82 HUTCHINSON LEADER PRINTING & PUBLISHING 172834 10/23/2012 126.00 HUTCHINSON WHOLESALE RECEIVED NOTVOUCHERED 172835 10/23/2012 5.00 HUTCHINSON, CITY OF REPAIR & MAINTENANCE SUPPLIES 172836 10/23/2012 4,445.21 HUTCHINSON, CITY OF UTILITIES 172837 10/23/2012 4,000.00 HUTCHINSON, CITY OF MISCELLANEOUS 172838 10/23/2012 375.00 ICE SKATING INSTITUTE DUES & SUBSCRIPTIONS 172839 10/23/2012 9.17 INDEPENDENT EMERGENCY SERVICES COMMUNICATIONS 172840 10/23/2012 24,070.26 INDEPENDENT SCHOOL DIST #423 REFUNDS & REIMBURSEMENTS 172841 10/23/2012 345.00 INTERNATIONAL ECON DEV COUNCIL DUES & SUBSCRIPTIONS 172842 10/23/2012 562.96 INTERSTATE BATTERY SYSTEM MINN EQUIPMENT PARTS 172843 10/23/2012 479.72 JEFF'S ELECTRIC CONTRACT REPAIR & MAINTENANCE 172844 10/23/2012 139.25 JJ TAYLOR DIST OF MN COST OF SALES -BEER 172845 10/23/2012 331.36 10CHUM, DANIEL TRAVEL SCHOOL CONFERENCE 172846 10/23/2012 44,362.31 JOHNSON BROTHERS LIQUOR CO. COST OF SALES -WINE 172847 10/23/2012 92.00 KDUZ KARP RADIO PRINTING & PUBLISHING 172848 10/23/2012 275.77 KLOSS, TOM TRAVEL SCHOOL CONFERENCE 172849 10/23/2012 200.00 KNUTSON- ELDER, JOLA RENTS -BLDGS OTHER 172850 10/23/2012 1,225.00 KOHLS SWEEPING SERVICE CONTRACT REPAIR & MAINTENANCE 172851 10/23/2012 2,320.58 KRIS ENGINEERING CENTRAL GARAGE REPAIR 172852 10/23/2012 310.22 L & P SUPPLY CO CENTRAL GARAGE REPAIR 172853 10/23/2012 40.00 LAUER, BURNELL OTHER CONTRACTUAL 172854 10/23/2012 60.00 LAUER, TAMMY OTHER CONTRACTUAL 172855 10/23/2012 39.74 LAW OFFICE OF JOE PEZZUTO ACCRUED GARNISHMENTS 172856 10/23/2012 139.00 LEXISNEXIS OTHER CONTRACTUAL 172857 10/23/2012 1,210.62 LIFE INSURANCE COMPANY OF AMER EMPL.HEALTH & INS. BENEFIT 172858 10/23/2012 808.72 LIFE INSURANCE COMPANY OF AMER EMPL.HEALTH & INS. BENEFIT 172859 10/23/2012 760.86 LIFE INSURANCE COMPANY OF AMER ACCRUED LIFE INSURANCE 172860 10/23/2012 13,544.60 LOCHER BROTHERS INC COST OF SALES -BEER 172861 10/23/2012 2,076.26 LYNDE & MCLEOD INC RECEIVED NOT VOUCHERED 172862 10/23/2012 9,282.69 MACQUEEN EQUIP INC CENTRAL GARAGE REPAIR 172863 10/23/2012 372.00 MADDEN, GALANTER, HANSEN LLP PROFESSIONAL SERVICES 172864 10/23/2012 48.86 MAIN STREET SPORTS BAR OPERATING SUPPLIES U 172865 10/23/2012 4,719.45 MANKATO, CITY OF COMMUNICATION MAINTENANCE 64.86 MARSHALL CONCRETE PRODUCTS SIGNS & STRIPPING MATERIALS 11.86 MATHESON TRI -GAS INC RENTALS 3,500.00 MAXFIELD RESEARCH INC PROFESSIONAL SERVICES 548.39 MAYTAG LAUNDRY & CAR WASH PROFESSIONAL SERVICES 85.50 MCKAY, KAREN OPERATING SUPPLIES 2,490.00 MCLEOD COUNTY AUDITOR - TREASURE LICENSES & TAXES 1,990.00 MCLEOD COUNTY AUDITOR - TREASURE LICENSES & TAXES 933.00 MCLEOD COUNTY AUDITOR - TREASURE LICENSES & TAXES 2,059.00 MCLEOD COUNTY AUDITOR - TREASURE LICENSES & TAXES 383.00 MCLEOD COUNTY AUDITOR- TREASURE LICENSES & TAXES 50.00 MCLEOD COUNTY HISTORICAL SOCIE MISCELLANEOUS 602.00 MCLEOD COUNTY RECORDER PROFESSIONAL SERVICES 101.34 MCRAITH, JOHN OPERATING SUPPLIES 99,424.41 MEDICA EMPL.HEALTH & INS. BENEFIT 504.00 MELBERG- SCHROEDER, MELANIE 579.40 MENARDS HUTCHINSON 30.00 MESSAGE MEDIA 1,068.75 MIDWEST MACHINERY CO 87.14 MINI BIFF 4,092.00 MINNESOTA OFFICE OF ADMIN HEAR 50.00 MINNESOTA SECRETARY OF STATE 2,948.60 MINNESOTA VALLEY TESTING LAB 110.00 MN -CSWEA 18,816.42 MOTOROLA 85.50 MURPHY GRANITE CARVING 1,731.67 MYTANA MANUFACTURING CO INC 360.35 NAGEL, JOSEPH 72.28 NELSON, STEPHANIE 462.93 NORTH CENTRAL INTERNATIONAL 260.71 NORTHERN BUSINESS PRODUCTS 4,993.15 NORTHLAND PCC INC 100.85 OFFICE DEPOT 229.99 OFFICE OF ENTERPRISE TECHNOLOG 397.54 O'REILLY AUTO PARTS RENTS -BLDGS OTHER OPERATING SUPPLIES COMMUNICATIONS RENTALS RENTALS PROFESSIONAL SERVICES PROFESSIONAL SERVICES OTHER CONTRACTUAL TRAVEL SCHOOL CONFERENCE COMMUNICATION MAINTENANCE CONTRACT REPAIR & MAINTENANCE CONTRACT REPAIR & MAINTENANCE TRAVEL SCHOOL CONFERENCE TRAVEL SCHOOL CONFERENCE RECEIVED NOT VOUCHERED OPERATING SUPPLIES CONTRACT REPAIR & MAINTENANCE OFFICE SUPPLIES TELEPROCESSING EQUIP CENTRAL GARAGE REPAIR 172866 10/23/2012 172867 10/23/2012 172868 10/23/2012 172869 10/23/2012 172870 10/23/2012 172871 10/23/2012 172872 10/23/2012 172873 10/23/2012 172874 10/23/2012 172875 10/23/2012 172876 10/23/2012 172877 10/23/2012 172878 10/23/2012 172879 10/23/2012 172880 10/23/2012 172881 10/23/2012 172882 10/23/2012 172883 10/23/2012 172884 10/23/2012 172885 10/23/2012 172886 10/23/2012 172887 10/23/2012 172888 10/23/2012 172889 10/23/2012 172890 10/23/2012 172891 10/23/2012 172892 10/23/2012 172893 10/23/2012 172894 10/23/2012 172895 10/23/2012 172896 10/23/2012 172897 10/23/2012 172898 10/23/2012 172899 10/23/2012 64.86 MARSHALL CONCRETE PRODUCTS SIGNS & STRIPPING MATERIALS 11.86 MATHESON TRI -GAS INC RENTALS 3,500.00 MAXFIELD RESEARCH INC PROFESSIONAL SERVICES 548.39 MAYTAG LAUNDRY & CAR WASH PROFESSIONAL SERVICES 85.50 MCKAY, KAREN OPERATING SUPPLIES 2,490.00 MCLEOD COUNTY AUDITOR - TREASURE LICENSES & TAXES 1,990.00 MCLEOD COUNTY AUDITOR - TREASURE LICENSES & TAXES 933.00 MCLEOD COUNTY AUDITOR - TREASURE LICENSES & TAXES 2,059.00 MCLEOD COUNTY AUDITOR - TREASURE LICENSES & TAXES 383.00 MCLEOD COUNTY AUDITOR- TREASURE LICENSES & TAXES 50.00 MCLEOD COUNTY HISTORICAL SOCIE MISCELLANEOUS 602.00 MCLEOD COUNTY RECORDER PROFESSIONAL SERVICES 101.34 MCRAITH, JOHN OPERATING SUPPLIES 99,424.41 MEDICA EMPL.HEALTH & INS. BENEFIT 504.00 MELBERG- SCHROEDER, MELANIE 579.40 MENARDS HUTCHINSON 30.00 MESSAGE MEDIA 1,068.75 MIDWEST MACHINERY CO 87.14 MINI BIFF 4,092.00 MINNESOTA OFFICE OF ADMIN HEAR 50.00 MINNESOTA SECRETARY OF STATE 2,948.60 MINNESOTA VALLEY TESTING LAB 110.00 MN -CSWEA 18,816.42 MOTOROLA 85.50 MURPHY GRANITE CARVING 1,731.67 MYTANA MANUFACTURING CO INC 360.35 NAGEL, JOSEPH 72.28 NELSON, STEPHANIE 462.93 NORTH CENTRAL INTERNATIONAL 260.71 NORTHERN BUSINESS PRODUCTS 4,993.15 NORTHLAND PCC INC 100.85 OFFICE DEPOT 229.99 OFFICE OF ENTERPRISE TECHNOLOG 397.54 O'REILLY AUTO PARTS RENTS -BLDGS OTHER OPERATING SUPPLIES COMMUNICATIONS RENTALS RENTALS PROFESSIONAL SERVICES PROFESSIONAL SERVICES OTHER CONTRACTUAL TRAVEL SCHOOL CONFERENCE COMMUNICATION MAINTENANCE CONTRACT REPAIR & MAINTENANCE CONTRACT REPAIR & MAINTENANCE TRAVEL SCHOOL CONFERENCE TRAVEL SCHOOL CONFERENCE RECEIVED NOT VOUCHERED OPERATING SUPPLIES CONTRACT REPAIR & MAINTENANCE OFFICE SUPPLIES TELEPROCESSING EQUIP CENTRAL GARAGE REPAIR 775.00 OSTLUND SUPPLY 8,609.93 PAUSTIS & SONS WINE CO 4,289.25 PEAT INC. 16,859.85 PHILLIPS WINE & SPIRITS 915.55 PINE VALLEY ECO PRODUCTS 4,522.22 PLAISTED COMPANIES 5.00 PLATH, DUSTIN 11.95 PRO AUTO & TRANSMISSION REPAIR 8.34 PROMAXX TRUCK PARTS FREIGHT COST OF SALES-WINE COST OF SALES -WINE CHEMICALS & PRODUCTS RECEIVED NOT VOUCHERED OTHER REVENUES CENTRAL GARAGE REPAIR EQUIPMENT PARTS 129.25 QUADE ELECTRIC 172900 10/23/2012 CONTRACT REPAIR & MAINTENANCE 172901 10/23/2012 59.82 R & R SPECIALTIES INC 172902 10/23/2012 RECEIVED NOT VOUCHERED 172903 10/23/2012 2,610.00 RIDGEWATER COLLEGE 172904 10/23/2012 REFUNDS & REIMBURSEMENTS 172905 10/23/2012 44.70 SCHMELING OIL CO 172906 10/23/2012 ACCOUNTS PAYABLE MANUAL 172907 10/23/2012 33.30 SEBORA, MARC 172908 10/23/2012 PERMITS 172909 10/23/2012 172910 10/23/2012 172911 10/23/2012 172912 10/23/2012 172913 10/23/2012 172914 10/23/2012 172915 10/23/2012 172916 10/23/2012 172917 10/23/2012 172918 10/23/2012 172919 10/23/2012 172920 10/23/2012 172921 10/23/2012 172922 10/23/2012 172923 10/23/2012 172924 10/23/2012 172925 10/23/2012 172926 10/23/2012 172927 10/23/2012 172928 10/23/2012 172929 10/23/2012 172930 10/23/2012 172931 10/23/2012 172932 10/23/2012 172933 10/23/2012 775.00 OSTLUND SUPPLY 8,609.93 PAUSTIS & SONS WINE CO 4,289.25 PEAT INC. 16,859.85 PHILLIPS WINE & SPIRITS 915.55 PINE VALLEY ECO PRODUCTS 4,522.22 PLAISTED COMPANIES 5.00 PLATH, DUSTIN 11.95 PRO AUTO & TRANSMISSION REPAIR 8.34 PROMAXX TRUCK PARTS FREIGHT COST OF SALES-WINE COST OF SALES -WINE CHEMICALS & PRODUCTS RECEIVED NOT VOUCHERED OTHER REVENUES CENTRAL GARAGE REPAIR EQUIPMENT PARTS 129.25 QUADE ELECTRIC REPAIR & MAINTENANCE SUPPLIES 360.00 QUALITY FLOW SYSTEMS CONTRACT REPAIR & MAINTENANCE 35.40 QUILL CORP OFFICE SUPPLIES 59.82 R & R SPECIALTIES INC REPAIR & MAINTENANCE SUPPLIES 1,537.31 RBSCOTT EQUIPMENT RECEIVED NOT VOUCHERED 82.37 RDO EQUIPMENT CO. RECEIVED NOT VOUCHERED 2,610.00 RIDGEWATER COLLEGE TRAVEL SCHOOL CONFERENCE 70.00 RIVERDALE ENVIRONMENTAL SERVIC REFUNDS & REIMBURSEMENTS 403.04 ROYAL TIRE CENTRAL GARAGE REPAIR 44.70 SCHMELING OIL CO MOTOR FUELS & LUBRICANTS 34.62 SCHOOL, SHARON ACCOUNTS PAYABLE MANUAL 64.13 SCOTT'S WINDOW CLEANING SERVIC CONTRACT REPAIR & MAINTENANCE 33.30 SEBORA, MARC TRAVEL SCHOOL CONFERENCE 725.48 SEH PERMITS 6,636.94 SHI INTERNATIONAL CORP DUE FROM UTILITIES 78.05 SHRED -IT USA INC - MINNEAPOLIS REFUSE - RECYCLING 900.00 SOIL CONTROL LAB RECEIVED NOT VOUCHERED 33.96 SORENSEN'S SALES & RENTALS RECEIVED NOT VOUCHERED 10,423.83 SOUTHERN WINE & SPIRITS OF MN COST OF SALES- LIQUOR 79.00 SPS COMMERCE RECEIVED NOT VOUCHERED 732.10 STANDARD PRINTING RECEIVED NOT VOUCHERED 789.10 STAPLES ADVANTAGE CLEANING SUPPLIES 79.30 STAR TRIBUNE DUES & SUBSCRIPTIONS 72.80 STAR TRIBUNE DUES & SUBSCRIPTIONS 235 .00STEARNS COUNTY COURT ADMINISTR OTHER REVENUES 172934 10/23/2012 13,000.00 STEILE CONSTRUCTION SMALL TOOLS 172935 10/23/2012 3,664.61 STRETCH TRUCKING FREIGHT - IN 172936 10/23/2012 16.00 STRUCTURAL SPECIALTIES INC REPAIR & MAINTENANCE SUPPLIES 172937 10/23/2012 71.25 TASC FLEX ADMINISTRATION FEE 172938 10/23/2012 868.99 THOMSON WEST OPERATING SUPPLIES 172939 10/23/2012 425.51 TITAN MACHINERY RECEIVED NOT VOUCHERED 172940 10/23/2012 367.98 TRI COUNTY WATER OFFICE SUPPLIES 172941 10/23/2012 2,420.00 TRIPLE G COMPANIES CONTRACT REPAIR & MAINTENANCE 172942 10/23/2012 996.24 TRUE FABRICATIONS ADVERTISING 172943 10/23/2012 914.82 TWIN CITY GARAGE DOOR CO CONTRACT REPAIR & MAINTENANCE 172944 10/23/2012 217.19 UNIFORMS UNLIMITED UNIFORMS & PERSONAL EQUIP 172945 10/23/2012 323.54 UNITED LABORATORIES CLEANING SUPPLIES 172946 10/23/2012 235.00 UNIVERSITY OF MINNESOTA TRAVEL SCHOOL CONFERENCE 172947 10/23/2012 39.96 VERIZON WIRELESS COMMUNICATIONS 172948 10/23/2012 69.95 VERTECH SOLUTIONS & SERVICES CONTRACT REPAIR & MAINTENANCE 172949 10/23/2012 12,823.59 VERTICAL LIMIT CONSTRUCTION COMMUNICATION MAINTENANCE 172950 10/23/2012 258.15 VESSCO INC EQUIPMENT PARTS 172951 10/23/2012 10,744.35 VIKING BEER COST OF SALES -BEER 172952 10/23/2012 393.00 VIKING COCA COLA COST OF MIX & SOFT DRINKS 172953 10/23/2012 2,445.00 VINOCOPIA INC COST OF SALES - LIQUOR 172954 10/23/2012 1,495.26 VISUAL EFFECTS SIGN & GRAPHICS LOAN 172955 10/23/2012 8.00 WASTE MANAGEMENT MISCELLANEOUS 172956 10/23/2012 1,608.52 WASTE MANAGEMENT OF WI -MN UTILITIES 172957 10/23/2012 46,960.78 WASTE MANAGEMENT OF WI -MN REFUSE - HAULING 172958 10/23/2012 8,632.00 WEBB PALLET RECEIVED NOT VOUCHERED 172959 10/23/2012 29.98 WEIS, MARK UNIFORMS & PERSONAL EQUIP 172960 10/23/2012 60.00 WELCOME NEIGHBOR ADVERTISING 172961 10/23/2012 828.05 WELLS FARGO TRAVEL SCHOOL CONFERENCE 172962 10/23/2012 523.24 WEST TITLE ACCOUNTS PAYABLE MANUAL 172963 10/23/2012 87.17 WILLIAMSON, BRENT ACCOUNTS PAYABLE MANUAL 172964 10/23/2012 1,522.00 WINE COMPANY, THE COST OF SALES -WINE 172965 10/23/2012 1,199.32 WINE MERCHANTS INC COST OF SALES -WINE 172966 10/23/2012 16,659.09 WIRTZ BEVERAGE MINNESOTA COST OF SALES - LIQUOR 172967 10/23/2012 1,789.50 WOOD'N PALLETS, INC. RECEIVED NOT VOUCHERED r 172968 10/23/2012 996.55 WORK CONNECTION, THE 172969 10/23/2012 210.00 WORKMAN &, SHIRLEY 172970 10/23/2012 842.75 XEROX CORP 172971 10/23/2012 244.63 ZEP MANUFACTURING CO 601,896.09 Grand Total Payment Instrument Totals Check Total 601,896.09 Total Paymei 601,896.09 OTHER CONTRACTUAL CEMETERY FEES COPY MACHINE EQUIPMENT PARTS PAYROLL ELECTRONIC FUNDS TRANSFERS PAYROLL DATE: 10/19/2012 Period Ending Date: 10/13/2012 $52,436.04 IRS - Withholding Tax Account Federal Withholding Employee /Employer FICA Employee /Employer Medicare $10,767.14 MN Department of Revenue State Withholding Tax $39,302.15 Public Employee Retirement Association Employee /Employer PERA/DCP Contributions $2,115.32 TASC Employee Flex Spending Deductions $6,530.38 TASC Employee Contributions to Heath Savings Account $525.00 MNDCP Employee Contributions - Deferred Comp $1,340.00 ING Employee Contributions - Deferred Comp $1,230.00 ICMA Retirement Trust Employee Contributions - Deferred Comp $414.85 MN Child Support System Employee Deductions $0.00 MSRS - Health Savings Plan Employee Deductions to Health Savings Plan $114,660.88 Total Electronic Funds Transfer I �e-) ELECTRONIC FUNDS TRANSFERS 10/23/2012 TAX FUEL SALES TAX USE TAX SALES & USE TAX FUND HATS LIQUOR PRCE CIVIC ARENA PAYABLE TO MN DEPT OF REV MN DEPT OF REV MN DEPT OF REV WATER SEWER CREEKSIDE MN DEPT OF REV AMOUNT $1,143.99 $38,813.00 $596.00 $12,407.00 $52,959.99 C Marc A. Sebora, City Attorney Office of the City Attorney Ill Hassan Street SE Hutchinson, MN 55350.2522 320- 587.5151/Fax 320 -234 -4201 h/� �t[�"C6 1111 ro, To: Hutchinson City Council Members From: Marc A. Sebora, City Attorney Re: Agenda Item 10(a) Date: October 18, 2012 Please recall that at the October 9, 2012, City Council meeting, this item was tabled so that formal approval of the Hutchinson sign along Highway 15 North could be obtained from Hutchinson Health Care. Find enclosed for your approval a letter from Cary Linder giving permission for the sign. In consideration of this, I would ask that you approve the easement for the sign's placement. Printed on recycled paper - 1 O ca—) Hutchinso Area Health Care Hutckinson Community Hospital Burns Nanor,Vursing Nome • Dassel.Vedical Center 1095 Highway 15 South Hutchinson, MN 55350 (320) 234 -5000 October 17, 2012 Jeremy Carter City Administrator 111 Hassan Street SE Hutchinson, MN 55350 Dear Mr. Carter: You previously provided me with a proposal for a Welcome to Hutchinson sign to be located on property leased by Hutchinson Health Care along Highway 15 on the north side of Hutchinson. It is proposed that the area for the sign be provided for through an easement reserving the space to the City for the sign. As you know, the lease agreement between the City and Hutchinson Health Care requires written permission from Hutchinson Health Care in order for the property to be encumbered in such a manner. I have discussed your proposal with Hutchinson Health Care administration and we have no objection to your proposal for the sign as long as the sign is constructed within the area you have provided to the hospital and the area is well maintained. Should you have further questions about this, please contact me. Sincerely, Caryiinder Foundation Director i0(C—) PERMANENT ACCESS AND SIGN EASEMENT This indenture made and entered into this 9th day of October , 2012, by and between the City of Hutchinson, Minnesota, hereinafter ( "Grantors "), and the City of Hutchinson, a Minnesota municipal corporation, hereinafter ( "Grantee "). Now therefore, for good and valuable consideration, which both parties acknowledge to be sufficient, Grantors hereby grant a permanent easement for access and sign purposes over, under and across that part of the Southwest Quarter of the Southeast Quarter of Section 30, Township 117 North, Range 29 West, McLeod County, Minnesota, described as follows: Commencing at the southeast corner of said Lot 12; thence westerly, along the south line of said Lot 12 a distance of 1138.40 feet; thence northerly, deflecting to the right 90 degrees 00 minutes 00 seconds 293.00 feet to the point of beginning of the easement to be described; thence westerly, parallel with said south line of Lot 12 a distance of 91.25 feel to the intersection with a line, parallel with and a distant 20 feet easterly of, the easterly right of way line of State Highway No. 15; thence northerly, along said parallel line 145.00 feet; thence easterly, parallel with said south line of Lot 12 a distance of 20.156 feet; thence southerly, parallel with said easterly right of way line 84.55 feet to the intersection with the north line of the South 353.00 feet of said Lot 12; thence easterly, along said north line of the South 353.00 feet a distance of 63.74 feet to the intersection with a line perpendicular to said south line of Lot 12, drawn from the point of beginning; thence southerly, along said perpendicular line 60.00 feet to the point of beginning. (see attached 'Exhibit A). This easement shall be binding upon the successors, heirs and assigns of the parties in perpetuity. The Grantee shall have at any time the right to enter the described easement area to construct, operate and maintain all sign improvements and appurtenances upon said permanent easement. The granting of this easement shall include the right to construct an adequate access to the sign facility as the Grantee deems necessary. The Grantee shall be responsible for the maintenance of the easement area. The Grantors shall have the right to utilize the easement area in a manner that does not adversely impact the functioning of or access to the sign facility. In witness whereof, said Grantors here unto have set their hands to this instrument on the day and year first above written. GRANTORS: CITY OF HUTCHINSON By: Jeremy J. Carter, City Administrator STATE OF MINNESOTA } ) ss COUNTY OF McLEOD } The foregoing instrument was acknowledged before me this day of 2012, by Jeremy J. Carter, City Administrator for the City of Hutchinson, a Minnesota Municipal Corporation. SIGNATURE OF PERSON TAKING ACKNOWLEDGEMENT This document was drafted by: Kent Exner Hutchinson City Engineer 111 Hassan St SE Hutchinson MN 55350 C� LGL-) r ' O DD 100 LOO sae 1. In f..r 1 .�" 1 I .{ f Mn�]p, 11 Y \ 4 1 1 , 1Yb..W.L OMn 4 Yaa I.It I r1.ral :.SJLH. r' —�•-_ 113410 - ••_ -__ NORTH HIGH DRNE `\ Dal erne sf Its le In .p / 30 / I � I I I I I bn.f aollb 1X41 tllb lVrnl. Pie. ar / r xapali na .I I far rl .I at a1 YIN.I .Ir IIr nMrVltl.11 n4 lost 1 m a w', Ilnna. ar Lana ras »r ..4s, n loss, u 4.r a I ar . State al PlUaW LND 8URMING, WC Lose o r.. P O Boa 35 HmmIlli nI MMO"ta '53330 J./ • ao ��� '����� pilots, (1 U?7 ?66 0Oal �( ? �y[/Z_ u.. x..1%4/339 F. (RW Dl7 -3764 ,/ JOE NO 12147 ox ACCESS & SIGN EASEMENT EXHIBIT FOR THE CITY OF HUTCHINSON ' oFwwTlat M .beer! tr tacau anf aqn purfswa war ana avoa rMl pot s/ Lb IL N 1M ` y MIDRDI! HAT OF TIE lOIIM INV OP lECTWN ]O 1!O TIE NpilM IWf 6 9ECIfON 31. It x � T011a/M 1 17 wxTw rta112E a9 !Elr. x4as4 e.ana. Mnnawb, b.basa a. ron.eC ! Cbrrana N a N .W UI IY'. tl.Iln a awlo aM aW - - ow w M1 111. IqM 1q Orv.a. OD m M1N: lrMrtf, bl v of Let IL a a.irea N 1131ST III N boa bW4.fi j.4 W=f ft l of rbwl.a . . pits LW.00 TM N xt p.r N It 4 f Ix. n 911 Reba n.lw at.fM V1111 aW ..Yb Ile N L et It ft— .T f la c n o m t' rlaor oT nr a of. Iti naw..doY m a f l fbil.l aed s slam m M1b a j m aM1rlr w 0.ec of 8M1M 14f1ba1 Ma. IIX IMllee mrNlab. ciao aW psMl most 141 Mr. IMnq oss saal.rfj, pnrdM1l MM aVe .nb IL a rrin N 2G1! " MIN11 I IM N IM f b 1m wells I p >NM NI! rk aoMry M of Y si 4 .111 . lm 's N 1 , ow xn. xe 9oulh lot, N aaM Lal I etnb . b aW Oe !wH t es, 1.0 /. o e a aff s r1 ham, 35 IN IL, bPo w a a.arlH N 63.71 M1w ro xe wn 11,st V!x 4 V. fapblatWl b .W .aYm N all M N taplrellt Urea aabxM. WM aW p.rpwgkYb NI. ( l of ms eaDD M1.1 b IM falnl A waM1+a. 00 I L E � i l I oP ��o caES l AUD PLAT OF S lit OF SEC 30 AND ---- -- -- -� I i LOT 13 202ND CIRCLE + T {� `Yw larva vta I Lp eC baYlrt 12 J1. TI lie llA. 3 ' N 1i2 OF SEC 31, T / 17 N., R.29 � nags! s sax 24sFaE J� gf I MI T�oelEllr axFA• a F1 3 F ,/ a4 a.b n. LOT 12 VO N 2 I '_ � , I iYrlt al l�bab Lw alu lJY rra. al/a6J0aal/f I / � `n 1 p- I� H IIYaIYMYbr YL0a M1 /1a11aM ral.tsaoaal.asal. rlrx xea aC - -- PAID r ' O DD 100 LOO sae 1. In f..r 1 .�" 1 I .{ f Mn�]p, 11 Y \ 4 1 1 , 1Yb..W.L OMn 4 Yaa I.It I r1.ral :.SJLH. r' —�•-_ 113410 - ••_ -__ NORTH HIGH DRNE `\ Dal erne sf Its le In .p / 30 / I � I I I I I bn.f aollb 1X41 tllb lVrnl. Pie. ar / r xapali na .I I far rl .I at a1 YIN.I .Ir IIr nMrVltl.11 n4 lost 1 m a w', Ilnna. ar Lana ras »r ..4s, n loss, u 4.r a I ar . State al PlUaW LND 8URMING, WC Lose o r.. P O Boa 35 HmmIlli nI MMO"ta '53330 J./ • ao ��� '����� pilots, (1 U?7 ?66 0Oal �( ? �y[/Z_ u.. x..1%4/339 F. (RW Dl7 -3764 ,/ JOE NO 12147 ox Ordinance No. 12 -696 Publication No. AN ORDINANCE AMENDING ORDINANCE NO. 07 -0473 — LEASING OF CERTAIN LAND, BUILDINGS AND OTHER PROPERTY TO HUTCHINSON HEALTH CARE The City of Hutchinson hereby ordains that: WHEREAS, on September 11, 2007, the Hutchinson City Council adopted Ordinance No. 07 -0473 approving leasing of certain land, buildings and other property to Hutchinson Health Care; and, WHEREAS, Hutchinson Health Care and Hutchinson Medical Clinic, P.A. have made the decision to integrate the enterprises to more effectively deliver heath care services to the community; and, WHEREAS, the City of Hutchinson believes this integration will promote the independence, flexibility and stability of health care services in the community and therefore supports this integration; and, WHEREAS, the City of Hutchinson and Hutchinson Health Care have agreed to amend the terms of the lease agreement to provide for, among other things,: 1. A payment of Two Million dollars (2,000,000.00) to the City of Hutchinson, 2. Prepayment of the City of Hutchinson's bonded indebtedness by Hutchinson Health Care, 3. Modification of the City of Hutchinson's membership rights under the exiting lease, 4. Modification of Hutchinson Health Care's operating parameters under the existing lease The terms of which are more fully set out in the lease amendment attached hereto as "exhibit A" NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, THAT THE LEASE AGREEMENT WITH HUTCHINSON AREA HEALTH CARE IS HEREBY AMENDED TO READ AS ATTACHED IN EXHIBIT A TO THIS ORDINANCE. Adopted by the City Council this 23 day of October, 2012. Attest: Jeremy J. Carter, City Administrator Steven W. Cook, Mayor � L,�L--) DRAFT 10.1.12 PMT FIRST AMENDMENT TO LEASE AND AGREEMENT This First Amendment to Lease and Agreement ( "First Amendment ") is made and entered into as of , 2012, by and between the City of Hutchinson, a Minnesota municipal corporation ( "City "), as landlord, and Hutchinson Health Care, a Minnesota nonprofit corporation ( "HHC "), as tenant. RECITALS WHEREAS, City and HHC are parties to that certain Lease and Agreement dated effective December 31, 2007 (the "Lease and Agreement ") relating to certain leased property which is described in the Lease and Agreement, and the City has certain rights under the Articles of Incorporation and Restated Bylaws of HHC adopted and made effective by HHC as of December 31, 2007 (collectively, the "Privatization Documents ") which were intended by the Parties to carry out a "privatization" of HHC and its health care delivery services and related activities to the extent set forth therein. WHEREAS, since the effective date of the Privatization Documents, further and significant changes have occurred within the health care industry, most of which incent and encourage still further integration among health care providers. WHEREAS, specifically, HHC and Hutchinson Medical Clinic P.A. ( "HMC ") (the physicians of which constitute the majority of the medical staff of HHC) believe fuller integration of their respective activities could provide a more stable and sustainable platform from which health care can best be provided to residents of Hutchinson and the surrounding communities. WHEREAS, HHC and HMC have reached agreement with respect to a transaction in which HMC assets essential in the operation of the clinic will be acquired by HHC and the employees, other than physician employees, of HMC will become employees of HHC and HHC will concurrently contract with HMC to provide HMC's entire physician capacity to HHC for the operation of a hospital owned, provider -based clinic (the "Transaction "). WHEREAS, City believes that for the foreseeable future, the interests of its citizens in local availability of a wide range of health care services can best be met by facilitating and supporting the Transaction and the fuller integration of HHC and HMC. � `LO-) WHEREAS, the City has evaluated the various rights it holds under the Privatization Documents, the potential value of those rights, the potential volatility of such value, potential risks the City may have faced if it were ever to have re- entered the health care enterprise in the event of a default under the Privatization Documents, and the range of amounts and the variety of transactions entered into by other municipalities in similar and other privatization circumstances. WHEREAS, the City obtained input from its independent financial advisors in connection with the economic effects of this First Amendment and proposed operating performance parameters, and City personnel evaluated the impact of the proposed payments to the City contemplated under this First Amendment on the vitality and sustainability of HHC and evaluated generally the prospects for local delivery of care under a variety of market and regulatory scenarios. WHEREAS, the City reaffirms its views that (1) a more integrated and independent community based nonprofit health care corporation creates the most flexibility to proactively address the health care needs in Hutchinson and the surrounding communities and to react to the rapid changes occurring in the industry and make the necessary resource allocation decisions in that environment, (2) the Board of Directors, management and medical staff of HHC have the necessary capabilities to conduct and oversee the local health care activities and make reasonable decisions regarding future strategic direction, and (3) entering into this First Amendment, with the City retaining the ongoing rights reflected herein, leaves all Parties in the best position to effectively and efficiently carry out their respective missions and duties. Moreover, the City believes that the additional consideration set forth herein is reasonable and sufficient to warrant the resignation of certain rights as described herein. WHEREAS, under this First Amendment, the City will continue as a landlord of HHC under the terms of the Lease, and the parties wish to modify the financial and performance commitments of HHC to align with and protect the City's interests as a landlord. WHEREAS, HHC is a nonprofit corporation organized under the laws of the State of Minnesota and is exempt from federal income taxes as an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code "), and HHC intends to operate consistent with its charitable purposes. NOW, THEREFORE, in consideration of the premises, covenants and agreements set forth herein, the parties hereto hereby amend the Lease and Agreement as follows: 1. Definitions The following definitions set forth in Article 1 of the Lease and Agreement are amended to read in their entirety as follows: Ill-) "1.1 Agreement This Lease and Agreement and First Amendment to Lease and Agreement, including the following exhibits attached hereto and made a part hereof: Exhibit A — Legal Description of the Land Exhibit B — Excluded Assets Exhibit C — Motor Vehicles Exhibit D — Operating Parameters Exhibit E — 2012 Bylaws 1.18 Existing Bonds The following bonds issued by City: General Obligation Taxable Medical Facilities Revenue Refunding Bonds, Series 1998; General Obligation Medical Facilities Revenue Bonds, Series 2003A; General Obligation Medical Facilities Revenue Refunding Bonds, Series 2009C; General Obligation Medical Facilities Revenue Refunding Bonds, Series 2010A and General Obligation Medical Facilities Revenue Refunding Bonds, Series 2010B, together with Future Financings, if any, as to which the City has any liability. 1.42 Operating Parameters and Revised Operating Parameters The financial, quality, operating and other parameters initially set forth in Exhibit A to the Amended and Restated Bylaws of HHC, as now updated and completely restated as Exhibit D, attached to the First Amendment. For purposes of measuring compliance with such operating parameters, Harmony River financial information will be excluded. However, HHC will also calculate the operating parameters without excluding Harmony River financial information and forward that information to the City at the same time for informational purposes. This is consistent with the current practice at the time the First Amendment was adopted." Capitalized terms not defined in this First Amendment shall have the same meaning assigned to them in the Lease and Agreement. 2. Annual Rent Section 3.1 of the Lease and Agreement is hereby amended by the addition of the following new subsection (e) to read as follows: "(e) On or before the Effective Date defined in Section 12 of the First Amendment, HHC shall irrevocably prepay in whole that part of the Annual Rent specified in Section 3.1(a)(2), to the same extent and upon the same terms as the City has the right to prepay or defease its obligations with respect to the Existing Bonds, in accordance with the terms of the Existing Bond Documents." 3. Additional Consideration Article 3 of the Lease and Agreement is hereby amended by the insertion of a new Section 3.4 to read in its entirety as follows : (� "3.4 Additional Consideration (a) In consideration of the City resigning its Member rights and other rights and interests it held in connection with HHC under the Amended and Restated Bylaws, HHC shall pay to the City as additional rent (in addition to Annual Rent and other Rent payments due to City under the Lease and Agreement), the amount of Two Million Dollars ($2,000,000.00) (the "Additional Consideration "), payable at the times set forth herein: (a) $666,666.66 on the Effective Date of the First Amendment; and (b) the balance in two equal installments payable on or before each of the next two anniversary dates of such Effective Date. The pro- ration provision of Section 3.1 shall not apply to the Additional Consideration. The City agrees to use the Additional Consideration to promote community health, wellness and/or recreation opportunities." 4. No Future Bonding Obligations Article 17, Section 17.10 is hereby amended by adding the following sentence at the end thereof: "Notwithstanding the foregoing, with the adoption of the First Amendment and the modifications to the HHC Bylaws implemented under the 2012 Bylaws, the Parties do not anticipate that in the future the City would issue General Obligation Bonds or otherwise have any direct obligations with respect to future HHC financings." 5. Section Reference Correction Article 18, Section 18.15 is amended to substitute 17.10 for the reference to 17.11 in such section. 6. Default Section 20.1(a) and (b) are hereby amended to read in their entirety as follows: "(a) HHC defaults in the payment of any Annual Rent, Additional Costs described in Section 3.3, or Additional Consideration set forth in Section 3.4, payable under this Agreement or the First Amendment and HHC does not cure such default within fifteen (15) days after actual receipt of notice thereof." "(b) HHC fails to satisfy an Operating Parameter set forth in Exhibit D and the failure is not cured as required or in the manner set forth in Exhibit D." 7. Change in Control• Transfer or Disposition of Health Care System Section 21.2 is amended to read in its entirety as follows: "21.2 Change in Control Transfer or Disposition of Health Care System The parties acknowledge that the Lease and Agreement and related arrangements under the HHC Bylaws were premised, among other things, on the concept that HHC would be locally controlled and that the City would have a role in any decision to 11 x-) alter the local control features. With the payment of the Additional Consideration, and under other provisions of the First Amendment, the City relinquishes its role in such fixture determinations of structure and control; except for the consultation and pre- condition rights provided herein. (a) HHC agrees that it will consult with the City regarding any proposal to transfer ultimate control or ownership to one or more third parties (regardless of how or what form is utilized to achieve such transfer) (a "Change of Control "). Such consultation will be sufficiently in advance of the HHC Board taking action on the Change of Control to reasonably permit the City to consider the proposed change and to provide input, if the City desires, for the HHC Board within a reasonable time period. For purposes of this Section 21.2, HHC agrees that Change of Control will be broadly defined, and will include, without limitation, any transaction, affiliation, amendments to HHC's Articles of Incorporation or Bylaws, Board make -up alteration, or any agreement, the result of which would be that the majority of the HHC Board was not made up of independent residents of HHC's Geographic Service Area (as defined in its Amended and Restated Bylaws) or that any matter considered or decided by the HHC Board required approval of any other party before having the effect of a final act or decision of the Board (whether by Board supermajority, board overlap, membership rights, joint venture rights, other ownership rights, or other agreement rights of any other nature, officer positions (whether appointed or ex officio), or any other arrangement through which the actions of HHC's Board are directly or indirectly controlled by another party). (b) HHC agrees and covenants that any Change in Control approved by HHC, shall be conditioned upon, and shall not take effect until: (i) payment of all remaining amounts due under Section 3.4, as amended by the First Amendment to Lease and Agreement, and (ii) prepayment (calculated at present value by a financial advisor of the City's choosing) of all remaining payments due under Section 3.1(a) through the next date on which HHC would be permitted to exercise the Purchase Option under the first sentence of Section 26.1 (the "First Option Date "). Such present value calculation shall be based on an investment rate based on what the City could reasonably be expected to achieve at the time under the criteria of Minn. Stat. Chapter I I 8 as if the funds were to be invested through the First Option Date. (Such investment rate is used for purposes of calculating the present value amount only and does not obligate the City to invest the fund in any particular manner or limit the City's ability to otherwise use the funds.) Notwithstanding the foregoing, in the event HHC objects to the City's present value calculation, then each party shall select a financial advisor and those two shall agree on a third financial advisor. The advisor selected by the other two shall make the present value calculation which shall be final and binding on the parties. The costs of the "third" financial advisor utilized in the event HHC objects to the City's initial present value calculation shall be borne equally by HHC and the City. I � Lc�_) (c) Upon completion of a Change of Control transaction and payment of the amounts described in (b) above to the City, HHC shall exercise the Purchase Option and carry out all required related steps as set forth in Article 26 of the Lease Agreement. (d) Notwithstanding any other provision to the contrary, the City shall have an independent right to enforce Section 21.2, including, in its sole discretion, pursuit of injunctive relief in addition to any other remedy it may have." 8. Exercise of Option Article 26 is amended by adding before the last sentence of Section 26.1, the following sentence: "In addition, upon the occurrence of a Change in Control as described in Section 21.2 and payment to the City of the amounts set forth in Section 21.2(b), HHC shall exercise the Option described in Article 26 and the Parties agree to take all steps which are necessary or required to transfer title to Healthcare System Real Property to HHC under the provisions of Article 26." 9. Miscellaneous Article 27 is hereby amended by adding at the end thereof the following new sections which read in their entirety as follows: "27.6 Resignation of City Rights Under HHC Bylaws City does hereby resign any and all member rights, other rights, and other interests it holds, if any, under the current Amended and Restated Bylaws and consents to the adoption of the Second Amended and Restated Bylaws adopted by HHC as of the Effective Date (the "2012 Bylaws ")." 27.7 Contractual Right to Elect HHC Director During the period between the Effective Date of the First Amendment and until the later of the following events occurs: (a) termination of the Lease and Agreement as a result of the exercise by HHC of the Purchase Option, or (b) payoff of all the Existing Bonds, the City shall have the right to elect one (1) member of the Board of Directors of HHC who is not a member of HHC's medical staff (and, in the City's sole discretion, to remove and replace such Board member in compliance with Section 1.5 of the 2012 Bylaws, a copy of which is reproduced and attached hereto as Exhibit E) and HHC agrees that such right shall, in addition, be set forth in any future amended or restated bylaws of HHC, until the later of the two foregoing conditions occurs. 27.8 Additional Communications City and HHC acknowledge the value of ongoing direct communication between City representatives and HHC to limit circumstances in which their independent actions, intended to benefit the community, could be in conflict. In recognition of the longstanding relationship of HHC and the City and the City's rights to appoint a director of HHC, HHC acknowledges that the City appointed director should be free to communicate with the City about issues of mutual interest to the parties, and the City acknowledges that I I (a-) appropriate confidentiality and fiduciary duties principles will apply in connection with such communications. In addition, HHC and the City, at the reasonable call of either the CEO or Mayor /City Administrator, respectively, agree to meet to discuss matters of mutual interest and coordinate actions when either Party believes it would be desirable to do so, provided however, that in furtherance of this Section, neither the City appointed director or HHC is obligated to provide information in a form that would subject such information to public disclosure as a result of the City's obligations as a municipality, and further provided, that neither party shall be obligated under this provision to meet more than twice in any calendar year. Further, in addition, during any period in which there are Existing Bonds outstanding, the HHC Board of Directors agrees to exercise its committee appointment authority in a manner such that at all times during that period, an individual concurrently serving in one of the following roles at the City (Mayor, City Administrator, City Finance Director or City Controller) and selected by the City is also serving as a member of the HHC audit committee. HHC shall have the right to remove the appointed audit committee appointee for reasonable cause, provided however, that the removed committee member is immediately replaced on the committee by another individual holding another of the qualified roles at the City as the City shall select. 10. Representations and Covenants of City City hereby makes the following representations and covenants as of the date of this First Amendment and on the Effective Date of this First Amendment. 10.1 Power and Authority City has the power and authority to execute and deliver this First Amendment, and to carry out the transactions contemplated herein. The Hutchinson City Council, acting on behalf of City in connection with this Agreement, is the properly appointed, acting and duly authorized governing body of City, and is acting in accordance with the provisions of all applicable laws and regulations. 10.2 First Amendment Valid and Binding This First Amendment is duly executed and delivered and is a valid and legally binding obligation of City enforceable in accordance with its terms. The execution and delivery of this First Amendment does not, and the consummation of the transactions contemplated hereby will not, result in the creation of any lien, charge or encumbrance or the acceleration of any indebtedness or other obligation of City, and are not prohibited by, in violation of or in conflict with any provisions of, and will not result in a default under or a breach of (i) any constitutional provision affecting City; (ii) any ordinance, law or regulation; or (iii) any order, decree or judgment or any court of governmental agency to which City or the Health Care System is a party or is bound. 11. Representations and Covenants of HHC HHC hereby makes the following representations and covenants as of the date of this First Amendment and on the Effective Date of this First Amendment: 1 � to-) 11.1 Formation of HHC HHC is a nonprofit corporation duly organized and in good standing under the laws of the State of Minnesota. HHC has the power to lease and to own assets and to carry on its business as contemplated under this First Amendment. 11.2 Power and Authority HHC has the power to execute and deliver this First Amendment and to carry out the transactions contemplated herein. All corporate actions required to be taken by HHC to authorize the execution, delivery and performance of this First Amendment and all transactions contemplated hereby have been duly and properly taken. 11.3 First Amendment Valid and Binding The First Amendment has been duly executed and delivered and is a valid and legally binding obligation of HHC enforceable in accordance with its terms. The execution and delivery of this First Amendment does not, and the consummation of the transactions contemplated hereby will not, result in the creation of any lien, charge or encumbrance or the acceleration of any indebtedness or other obligation of HHC, and are not prohibited by, in violation of or in conflict with any provisions of, and will not result in a default under or a breach of (i) any contract, agreement or other instrument to which HHC is a party or is bound; (ii) any ordinance, law or regulation; or (iii) any order, decree or judgment or any court of governmental agency to which HHC is a party or is bound. 12. Condition Precedent to Effectiveness of First Amendment The effectiveness of this First Amendment is expressly conditioned upon the consummation of the Transaction, which is currently anticipated to occur on January 1, 2013, and the prepayment contemplated in Section 2 of the First Amendment (the "Prepayment "). On the date the Transaction is consummated (the "Effective Date "), and provided the Prepayment has occurred, this First Amendment shall automatically become operative. Neither Party shall have any obligations to the other under this First Amendment until the Effective Date. Upon request, each Party agrees to sign a declaration confirming the Effective Date of this First Amendment 13. Condition Subsequent Within ninety (90) days of the Effective Date referenced in Section 12 above, HHC shall have completed and filed all documents required by the Internal Revenue Service ( "IRS ") and necessary to support document the conclusion of the Parties that the Prepayment constitutes an approved remedial option (within the meaning of applicable IRS regulations) with respect to the Existing Bonds and a copy of that documentation and communications with the IRS in connection therewith has been provided to City. 14. City's Costs of Entering First Amendment On or before the Effective Date of the First Amendment, HHC shall pay City's reasonable, direct, out of pocket transaction expenses, including reasonable legal and consulting fees incurred by the 1 I LQ—) City in connection with the negotiations and transactions in connection with this First Amendment. 15. Ratification Except to the extent specifically set forth in this First Amendment, all provisions of the Lease and Agreement remain unmodified and in full force and effect. 16. Successors and Assigns This First Amendment shall be binding upon and be enforceable by City and HHC and their successors and assigns. 17. Indemnification In the event that the interest on any Tax Exempt Bonds is included in gross income of the holders for federal income tax purposes for any reason, and that fact results in expenses or costs of any kind being incurred by City, HHC agrees to indemnify the City with respect to any such expenses or costs and to reimburse the City within 60 days following receipt of notice from the City that such expenses or costs have been incurred. 18. Counterparts This First Amendment may be executed in any number of counterparts, all of which shall be considered one and the same First Amendment, even though all parties hereto have not signed the same counterpart. Any party shall, however, deliver an original signature for this First Amendment to the other party upon request. ►�c-Q-) IN WITNESS WHEREOF, the parties hereto have executed this instrument as of the day and year first above written. CITY OF HUTCHINSON By: _ Its And by: Its [Notary] HUTCHINSON HEALTH CARE By: Its And by Its [Notary] THIS INSTRUMENT WAS DRAFTED BY tb. us.7765061 02 Lck—) EXHIHT'f A Legal Description of the Land Hospital Land (which also encompasses Medical Office Building Land): Beginning at the NW corner of the NW Quarter of Section 7, TI 16N. R29W. Thence South along the West line of said NW quarter 1.t distance of 633 feel to the point of beginning of the parcef to he described. Thence. continuing South along the West line of the NW quarter, a di.;lancc 44 5 feet to the westerly extension Oft lie North Right of Way tine of Cell mry Ave. SF. Thence Fasterly. along the North Right of Way line ol'Century .Ave. SF a distance of 1218.3 I co, - ( hence North. a distance of 500.2 feet to die centerline of Freemnni Ave. SF. 'Thence West, along the centerline of Frcemont AN c. SE. a distance of 1221.1 feet to the point of beginning and there terminating. F'.xclusive of existing Road Right of Way. Nursing home Land: fhc followirw described Real 8state, situated in the County of Mcleod and State of Minnesota, cicscrihed as follo+,s, to -wit: Beginning at a point 1138.4 feet wet and 293 feet north of the southeast corner of Lot 12_ Auditors Plat of the South I lalf Section 30 and the North Hall of Section 3L Township 117 N, Range 29 W. according to the plat thercnf on file and of record in the (0fice of the Register of Deed of Mcleod County, Minnesota: thence north 358.9 feet to the north line of said Lot l2: thence west along said north line of I,ot 12 a distance of 74.2: to the castciiy 11311. of rvay tine ofTrunk Hw,v No. 15: thence southerly along said custerls right of way line 160.6 fret thence east 128 feet to the point of beginning A \D I,ot 12 Lscepi tracts South 260 feet of West 268 feet and 167.5 feet X 260 Net and 260 feet X 90 lint and .75 acres in Nonliwest Corner. Auditor's Plat of I.ot 10, Auditor's Plat South Half Section 30 and North Huff Section 31- 117 -29 ;AND 'That part of l,oi 13 of the Auditor's Plat of the South Half of Section 3U and the North Halfol Sccuun "i I. Tot+ -nship 117, Range 29, described as follows: Commencing at the Southwest corner of laid Lot 11. thence easterly along the south line of said I.ot 13 a distance L4771.18 feet to the point of hea inn ing ofthe land to be described: thence northerly dellectine to the left 90 deereei 00 minutes 00 seconds. 465.00 feet; thence westerly, parallel with said uruth Iinc. 266.75 abet to a point 370.00 feet easterly, as measured parallel with .aid moth line from the cnsterly right of way Ilnc of State Hwy No. IS, thence nordterl) 98.72 feet to the south end of Line A: (said Line A is described as commencing at the intersection of the easterly right of wav line of state tlwv No. 15 and the north line of Lot 14 ursaid Auditor's Plat: thence southerly along said rw-ht of tray line. 13990 feet: thence easterly, parallel with said north line, 3:4.48 feet: thence eautherly, deflecting to the right 90 degrees 09 rninutes 00 seconds, 220.13 feet to the north line of said I.oi 13 and the beginning of said Line A: thence southerly, along a prolongation of the last described course. 186.44 feet and said Line A there tenninatingi thence northerly. along said I i,;c A. 186.44 feet to the north line of said Lot 13: thence easterly, along said north line of Lot 13, n46-16 feel to the northeast corner of said I,ot 13: thence southerly, along the east fine of said Lol 1 + LQ-) '1 feet to the southeast corner of said Lot 13: thence westerk, alonL . the south line of said Lot [),a distance of 547.75 feet to the Mint of beginning. A loo a 60.u0 foot wide easement for access to the aborc described tract of land. I'he west line of said easement is described as commencing at the intersection of the casterh right of way line of State Hwy No IS and the north line of Lot 14 of said Auditar's Pta.t: thence southerly along said right oftray line 139.00 feet: thence easterly, parallel with said north Tine of Lot 1.g a distance of 359.00 feet to the beginning of said west line of the easement: thence southerly, deflecting to the right 90 degrees 02 minutes 00 seconds, 220.13 feet to the nudh line ot'said Lot 13 and said west line there terminating. (NCSIT:: The 60.00 foot casement lies outside the cin limits) AND The following described Real Estate, situated in the County of McLeod and State of Minnesota, described as follows, urwit: That part of Lot 13 of the Auditor's Plat of the South Half of Section 30 and the North I lalf of Section 31. Township 117 N, Range 29 `vV, described as folloos: Comtnencim, 31 the southwest corner of said Lot 13, iaid southwest comer being at the intersection of the south line of said Lot 13 and the west line of the southeast quarter of said Section 30; thence easterly, along said south line a distance ol'771.I8 feet to the point of beginning of the land fo be described: thence northerly, deflecting 90 degrees 00 minute:. 00 ;cc onds left. a distance of 465.00 feet: thence westerly, parallel with said south line, a distance of 266.75 feet to a pint 370 feet easterly, as measured parallel with said south line, of the easterly right of wac line of State Hwy No. 15: thence southerly, parallel with said right of way line. a distance of 466.39 feet to said south line of Lot l 3, thence easterly, along said south line. a d1St3oee of A) 1.20 feet to the point of beginning Shopping Center Land: Lots One (1) and I wo l2) in Block One (1) in CEDAR ACRES SUBDIV ISION. uaoording to the plat (h crew on file and of record in the Office of the Registrar of Titles. Mcleod Countyv, Minnesota. Incepting therefrom the following described tiacC Beginning it the Northwest corner of said Lot I. thence Easterly, along the North line of said Lot I a distance of 222.71 feet; thence Southerly, dctlec(ing m the right 89 degrees 18 minutes 43 seconds 200.01 feet to the South line of the North 200.00 feet of said Lot l: thence Westerly. along said South line of the North 300.00 feet of Lot t a distance of 72157 Cect to the West fine of Said Let I : thence Northerly, along said West line of Lot i a distance of 200.02 feet to the point of beginning. Dassel Medical Center Land: tots I I & 15, Bhrok 6. Village of Dassel I ots 16 & I7. Block 6. Village of Dassel Regional Eye Land: Lot 8, Block 2. Cedar Acres Subdivision 1 1(-) Auxiliary Land. 22 feat north of southern 22 feel 8 inches. Lot 8. Block 49, North Hall of Cite Birchwood Property: Lot 1, BILQk I_Stearns Woods Senior (lousing Property: Beginning at the southeast comer of Section 7 Township 116 Range 29, thence west along the south litre of said Section Seven (7), 2476 feet to a point marked by a stone set in the public road; which is 1376.2 feet east of the west line of the Last Hall ofthe Southwest Quarter of said Section 7; thence north 778.6 feet to a point marked by an iron pipe 1376,2 feet east of the west line of the East Half ofthe Southwest Quarter of said Section 7: thence f -;ast parallel to the south line of said Section Seven (7) 2:377.1 leci to the center line of a public highway. known as the Hutchinson and Glencoe road: thence southeasterly along the center line of said road to the south line of Section Light (8) "1 owrtship One I lundred Sixteen (t 16) Range Twenty -nine (29); thence trest along the south line of said Section Eight (8) 264 feet to the place of beginning. containing 45 acres, more or leas, in the County of McLeod and State of Minnesota hsceptutg thcrcl}om the following: 'That part of I_ot 12 of Auditor's Plat of Section 7, Township 116 North, Range 29 Nest and that part of the Southwest Quarter of the Southwest Quarter o1 Section 8, Township 1 16 Nonh, Range 29 West described as follows: Commencing at the southeast corner ofsaid Section 7; thence Nest, assumed bearing, ❑long the south line ofsaid Section 7, a distance of475.:6 feet: thence North 490.1 2 feet to the point of beginning of the land to be described, thence continuing North 288.48 feel m the north line of said l.ot 12; thence East, along said north line, 383.32 feet to the center line of County Highway No. 25; thence southeasterly, along said center line, 317.70 feet to a point hearing Fast from the point of beginning; thence West 516.38 feet to the point ofbeginning. (A) EXHIBIT B Excluded Assets No Excluded Assets � � L) EXHIBIT (' Motor Vehicles - T9 - 96 - ' — Dodge Caravan Van Ford Ambulance 2000 — Ford Ambulance Ford F250 PickupT 2001 �_Dod Ram Pickup' 2003 GMC Sierra Pickup 2005 Ford Ambulance 2007 1 Ford E450 Ambulan IFTNKILSEB82012 6Y 8 1 S22 75 30 4 V6 A r.04, 1 FDXE45P37D, ID86F24K47131 I I (r,-) EXHIBIT D Operating Parameters On or before the 150th day after the end of HHC's Fiscal Year, HHC will submit to the City its computations and certification of compliance with each of the following parameters (the "Operating Parameters ") based on financial results audited by a firm of qualified Certified Public Accountants: (1) Maximum Annual Debt Coverage Ratio of at least 1.3 times. (2) Days Cash on Hand of 60 days. If HHC is not in compliance with any of these Operating Parameters when such computations are due, the City may require HHC to engage, within forty-five (45) days of the City's written notice, a management consultant mutually selected by the City and HHC (the "Consultant ") for the purpose of reviewing the deficiency and making recommendations regarding the operation and administration of the health care system. HHC shall give full and prompt consideration to the Consultant's recommendations and, to the fullest extent feasible and consistent with HHC's charitable mission, its obligations under this Agreement, and the interests of the community it serves, HHC shall undertake its best efforts to implement such recommendations. Notwithstanding the foregoing, HHC shall take no action pursuant to its Workplan or in response to the Consultant's recommendations that would jeopardize HHC's 501(c)(3) status, compliance with bond covenants under any Existing Bonds or any future financing issued pursuant to Section 17.10 of the Lease as amended, or its adherence to legal, regulatory or accreditation standards and requirements. So long as HHC fails to satisfy any of the Operating Parameters, HHC will provide to the City, not later than on the last day of each fiscal quarter, or at such other interval as HHC and the City may agree, a letter from the Consultant (if engaged) to the effect that in his or her judgment, HHC is implementing such recommendations in orderly fashion. HHC's adherence to the requirements of this paragraph, including HHC's continued best efforts to implement any recommendations of the Consultant, shall be deemed to cure any failure to satisfy the Operating Parameters. Amendments The parties acknowledge that the Operating Parameters have been designed as indicators of financial or quality jeopardy under current market conditions. It is also acknowledged that the Operating Parameters are also based on Generally Accepted Accounting Principles ( "GAAP ") that currently exists. HHC and the City shall, from time to time, amend the Operating Parameters as necessitated by changes in GAAP and market conditions in order to maintain their status as indicators of financial or quality jeopardy, taking into consideration I � Lam) the performance of similarly situated nonprofit corporations having comparable operations to HHC's. Certain Definitions: Days Cash on Hand: means the result of dividing the Unrestricted Liquid Funds of HHC by daily operating expenses. Daily operating expenses is computed by dividing Total Operating Expenses less depreciation and amortization expense for such Fiscal Year by the number of days in that Fiscal Year. Existing Bonds: The Bonds defined under Section 1.18 of the Lease as amended. Fiscal Year: Each 12 month period ending on the date specified in the Bylaws of HHC. Currently, the fiscal year ends on December 31. Generally Accepted Accounting Principles (GAAP): GAAP is the standard framework of guidelines for financial accounting, as established in the United States of America. It includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements. GAAP for this purpose means those guidelines and rules applicable to HHC. Lease: That certain Lease dated December 31, 2007 by and between City of Hutchinson and Hutchinson Health Care, as amended by the First Amendment and any subsequent amendments adopted by the parties to such Lease. Long -Term Debt: All obligations which appear as a long -term liability on HHC's financial statement in accordance with GAAP, including but not limited to revenue bonds, capital leases, bank or installment debt, and contracts for deed, plus or minus any amounts for unamortized discounts /premiums or deferred losses on refunding. However, Long -Term Debt excludes the debt to the City related to the payment required in Section 3.1 of the Lease Agreement. Maximum Annual Debt Coverage Ratio: Net Revenues for a Fiscal Year divided by the Maximum Annual Principal and Interest Requirement due in future fiscal years. The ratio is to be computed based on HHC's audited financial statements. For any computation that requires reference to one or more Fiscal Years prior to the effective date of the Lease Agreement, the ratio is to be computed using the Net Revenues and Maximum Principal and Interest Requirement from the applicable Fiscal Year audited financial statements of the City enterprise Hutchinson Area Health Care. Maximum Annual Principal and Interest Requirement: The sum of the maximum principal and interest payments required to be paid in any future Fiscal Year on Long -Term Debt. If a Long -Term Debt issue has a balloon payment, for the purposes of this computation that balloon payment is to be amortized over a period of years equal to the lesser of 30 years less the total number of years that the issue has been outstanding (from 1� 60 inception) prior to the date of the balloon payment, or the remaining useful life of the asset being financed. For purposes of the preceding sentence, the "remaining useful life" shall be defined as the number of years remaining until the asset is fully depreciated per the depreciation schedule maintained by HHC in accordance with GAAP. The interest rate to be applied during this period is equal to the rate required to be paid on the issue in the fiscal year preceding the balloon payment. The principal and interest amortization for the Fiscal Years including and subsequent to the balloon payment is to be computed assuming an equal annual amortization. If Long -term Debt includes a debt issue that has a variable interest rate, for purposes of computing future year interest requirements, the interest rate to be used is the rate in effect at the end of the Fiscal Year for which this computation is being made. Net Revenues: The aggregate of all operating and nonoperating revenues less Total Operating Expenses, except excluding (1) depreciation (2) amortization and (3) interest expense of HHC, all determined in accordance with GAAP, for a Fiscal Year. However, Net Revenues are to exclude any (1) contribution or investment income that has been restricted by its donor for endowment (permanently restricted) purposes (2) unrealized gains and losses on investments (3) extraordinary or non - recurring items including gains or losses on refinancing, extinguishment of indebtedness, gains or losses of sales or other dispositions of property not in the ordinary course of business. Total Operating Expenses: All expenses reported as operating expenses, in accordance with GAAP, that HHC reports for a Fiscal Year, including (1) depreciation (2) amortization and (3) interest expense. Unrestricted Liquid Funds: means (i) unrestricted cash, (ii) cash equivalents, (iii) escrow funds, if any, under that certain Escrow Agreement effective December 31, 2007 by and between HHC and the City of Hutchinson, and (iv) board designated marketable debt and equity securities, but excluding and exclusive of: (1) all trustee -held funds; and (2) borrowed funds that are entrusted with a lender. �P_) EXHIBIT E (Excerpt from 2012 Bylaws) DIRECTORS SECTION 1.1 Number and method of election The Board of Directors of this corporation shall consist of an odd number of no fewer than seven (7) and no more than eleven (11) persons, and, subject to such limitation, the number of members of the Board of Directors shall be such as may be designated from time to time by the Board of Directors. There shall be one (1) City Director and an equal number of Physician Directors and Community Directors, each as defined below. Each category of directors shall be elected or appointed as set forth below, subject to the limitations in Section 1.2, and in accordance with the nominations process described in Section 4.5 of these Bylaws. (a) City Director The City Director shall be appointed by the City Council of the City of Hutchinson, Minnesota (the "City Council "). This person may concurrently serve as a member of the City Council. (b) Physician Directors The Physician Directors shall be appointed by Hutchinson Medical Center, P.A. ( "HMC "). These persons need not be physicians. (c) Community Directors The Community Directors shall be elected by the Board of Directors of this corporation at the annual meeting of this corporation. The majority of the Community Directors shall be residents of the hospital's Geographic Service Area at the time of election, and of those, at least one director shall be a resident of the City. The Geographic Service Area shall mean the area composed of the lowest number of contiguous zip codes from which the hospital draws at least 75 percent of its inpatients during the previous fiscal year. (d) Ex Officio Director There shall be one (1) Ex Officio Director, who shall be the physician serving from time to time as the Chief of the Medical Staff of the hospital. The Ex Officio Director shall not have voting rights. An Ex Officio Director may simultaneously serve as a voting City Director, Physician Director or Community Director if appointed or elected as such. SECTION 1.2 Board Composition The composition of the Board of Directors is subject to the following limitations: (a) Credentialed practitioners At any given time, less than one -half of the voting directors may be health care professionals credentialed to provide services at the hospital or any other health care facility owned by this corporation. L) (b) Directors of other systems At any given time, a majority of the voting directors of this corporation shall be persons who are neither: (i) directors of any other health care providers or health care systems residing outside the hospital's Geographic Service Area; nor (ii) directors of any single health care provider or health care system. (c) Employees No employee of this corporation shall be a member of the Board of Directors; provided, however, that this requirement shall not apply to health care professionals credentialed to provide services at the hospital or any other health care facility owned by this corporation. SECTION 1.3 Terms Except as otherwise provided in Section 1. 1, each director of this corporation other than the Ex Officio Director shall be elected or appointed to serve for a term of three years, and, unless the Board of Directors has determined that a successor will not be elected or appointed, until his or her successor has assumed office; or until the director's prior death, resignation or removal. Directors (other than the Ex Officio Director) are limited to serving three consecutive terms. The term of office of the Ex Officio Director shall be coterminous with his or her term as Chief of the hospital's Medical Staff. The Board of Directors shall each be divided into three classes as nearly equal in number and category as possible, so that the terms of office of approximately one -third of directors shall expire each year. SECTION 1.4 Compensation Directors shall not receive compensation for their service as directors; provided, however, that this corporation may reimburse directors for reasonable and necessary expenses incurred while performing the duties of a director. SECTION 1.5 Removal vacancies Any director may at any time be removed with or without cause by the Board of Directors; provided, however, that a City Director may be removed by the Board of Directors only for cause by the affirmative vote of two - thirds of the directors of this corporation. For purposes of the foregoing sentence, "cause" shall mean breach of fiduciary duty. A City Director may also be removed with or without cause by the City Council. Any director may resign at any time by giving written notice to the Chair or the Secretary. The resignation shall be effective without acceptance when the notice is received by the Chair or the Secretary, unless a later effective date is specified in the notice. Any vacancy occurring because of the death, resignation or removal of a Community Director may be filled by a person elected by the Board of Directors for the unexpired term of such director. Any vacancy occurring because of the death, resignation or removal of a City Director or Physician Director shall be filled by a person appointed by the City Council or HMC, respectively; which shall fill the vacancy within 60 days following the date the vacancy occurs. All directors elected or appointed to fill any such vacancies shall comply with the requirements of Section 1.1 and Section 1.2 of these Bylaws. -2- � 1 lam) Marc A. Sebora, City Attorney Office of the City Attorney 111 Hassan Street Hutchinson, MN 55350.2522 22 320.587.5151/Fax 320. 2344201 Memorandum To: Hutchinson City Council Members From: Marc A. Sebora, City Attorney Re: Agenda Items I I (b) and I I (c) Date: October 18, 2012 At the last City Council meeting on October 9, 2012, the Council decided not to exercise its right of first refusal with regard to the offer being made for the Burns Manor pursing home building and surrounding parcels of land. Therefore, please find enclosed the following items: Resolution No. 14059, which is a resolution formally waiving the City's right of first refusal to purchase the Burns Manor properties and authorizing a conveyance to Hutchinson Health Care pursuant to the lease we have with Hutchinson Health Care. This document is necessary to formalize the Council's decision in a recordable form that can be recorded at the McLeod County Recorder's office for future title purposes. 2. Ordinance No. 12 -697, which is an ordinance authorizing the disposition of the Burns Manor properties and giving Jeremy Carter power to sign any and all closing documents. The Hutchinson City Charter requires that if any time city -owned property is sold or otherwise disposed of, such disposition be done via ordinance. I ask that you approve these two items so that Hutchinson Health Care can proceed with its plans for these parcels of land. Printed on recycled paper - 11(x) RESOLUTION NO. 14059 A RESOLUTION RELEASING PORTIONS OF CITY OWNED HEALTH CARE SYSTEM REAL PROPERTY TO HUTCHINSON HEALTH CARE AND WAIVING RIGHT OF FIRST REFUSAL WHEREAS, on September 11, 2007, The city of Hutchinson adopted an ordinance (Ordinance #07 -0473) entering into a lease agreement with Hutchinson Health Care permitting Hutchinson Health Care to lease certain land and buildings and other property known as "The Health Care System Real Property "; and, WHEREAS, said lease contains a provision permitting Hutchinson Health Care to sell or transfer portions of the health care system real property to third persons after having first offering the City an opportunity to match the net proceeds of such a third party transfer; and, WHEREAS, Hutchinson Health Care has received a bona fide third -party offer for the purchase of the following parcels of the health care system real property: Attached as Exhibit A WHEREAS, after due deliberation and consideration of the offer received by Hutchinson Health Care, the City has determined not to exercise the right of first refusal as set out in the lease document; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON that the City of Hutchinson does waive its right of first refusal for the sale of the foregoing enumerated portions of the Health Care system as presented in the offer received by Hutchinson Health Care and consequently those enumerated parcels in Exhibit A are released from those parcels listed as "Health Care System Real Property" and shall be transferred to Hutchinson Health Care. Adopted by the City Council this 23` day of October, 2012. ATTEST: Jeremy J. Carter Steven W. Cook 1(6) Exhibit A Parcel 1 The following described Real Estate, situated in the County of McLeod and State of Minnesota, described as follows, to -wit: Beginning at a point 1138.4 feet west and 293 feet north of the southeast comer of Lot 12, Auditors Plat of the South Half Section 30 and the North Half of Section 31, Township 117 N, Range 29 W, according to the plat thereof on file and of record in the Office of the Register of Deed of McLeod County, Minnesota; thence north 358.9 feet to the north line of said Lot 12; thence west along said north line of Lot 12 a distance of 74.2; to the easterly right of way line of Trunk Hwy No. 15; thence southerly along said easterly right of way line 360.6 feet; thence east 128 feet to the point of beginning Parcel 2 Lot 12 Except tracts South 260 feet of West 268 feet and 167.5 feet X 260 feet and 260 feet X 90 feet and .75 acres in Northwest Comer, Auditor's Plat of Lot 10, Auditor's Plat South Half Section 30 and North Half Section 31 -117 29 Parcel 3 That part of Lot 13 of the Auditor's Plat of the South Half of Section 30 and the North Half of Section 31, Township 117, Range 29, described as follows: Commencing at the Southwest corner of said Lot 13; thence easterly along the south line of said Lot 13 a distance of 771.18 feet to the point of beginning of the land to be described; thence northerly, deflecting to the left 90 degrees 00 minutes 00 seconds, 465.00 feet; thence westerly, parallel with said south line, 266.75 feet to a point 370.00 feet easterly, as measured parallel with said south line from the easterly right of way line of State Hwy No. 15; thence northerly 98.72 feet to the south end of Line A; (said Line A is described as commencing at the intersection of the easterly right of way line of State Hwy No. 15 and the north line of Lot 14 of said Auditor's Plat; thence southerly along said right of way line, 139.00 feet; thence easterly, parallel with said north line, 354.48 feet; thence southerly, deflecting to the right 90 degrees 02 minutes 00 seconds, 220.13 feet to the north line of said Lot 13 and the beginning of said Line A; thence southerly, along a prolongation of the last described course, 186.44 feet and said Line A there terminating) thence northerly, along said Line A, 186.44 feet to the north line of said Lot 13; thence easterly, along said north line of Lot 13, 846.16 feet to the northeast corner of said Lot 13; thence southerly, along the east line of said Lot 13, 745.21 feet to the southeast corner of said Lot 13; thence westerly, along the south line of said Lot 13, a distance of 547.75 feet to the point of beginning. Also a 60.00 foot wide easement for access to the above described tract of land. The west line of said easement is described as commencing at the intersection of the easterly right of way line of State Hwy No. 15 and the north line of Lot 14 of said Auditor's Plat; thence southerly along said right of way line 139.00 feet; thence easterly, parallel with said north line of Lot 14 a distance of 359.00 feet to the beginning of said west line of the easement; thence southerly, deflecting to the right 90 degrees 02 minutes 00 seconds, 220.13 feet to the north line of said Lot 13 and said west line there terminating. (NOTE: The 60.00 foot easement lies outside the city limits) Parcel 4 The following described Real Estate, situated in the County of McLeod and State of Minnesota, described as follows, to -wit: That part of Lot 13 of the Auditor's Plat of the South Half of Section 30 and the North Half of Section 31, Township 117 N, Range 29 W, described as follows: Commencing at the southwest comer of said Lot 13, said southwest comer being at the intersection of the south line of said Lot 13 and the west line of the southeast quarter of said Section 30; thence easterly, along said south line a distance of 771.18 feet to the point of beginning of the land to be described; thence northerly, deflecting 90 degrees 00 minutes 00 seconds left, a distance of 465.00 feet; thence westerly, parallel with said south line, a distance of 266.75 feet to a point 370 feet easterly, as measured parallel with said south line, of the easterly right of way line of State Hwy No. 15; thence southerly, parallel with said right of way line, a distance of 466.39 feet to said south line of Lot 13; thence easterly, along said south line, a distance of 301.20 feet to the point of beginning � � ('0 ORDINANCE NO. 12 -0697 PUBLICATION NO. AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AUTHORIZING THE TRANSFER OF MUNICIPALLY OWNED REAL PROPERTY TO HUTCHINSON HEALTH CARE THE CITY OF HUTCHINSON ORDAINS: Section 1. That the municipally owned real property legally described as follows: Attached as Exhibit A is hereby transferred and conveyed to Hutchinson Health Care together with all hereditaments and appurtenances belonging thereto. Section 2. The City Administrator, Jeremy J. Carter, or his designee is authorized to sign any and all documents on behalf of the City to effectuate the closing of this transaction. Section 3. This ordinance shall take effect upon its adoption and publication. Adopted by the City Council this 13 day of November, 2012. Steven W. Cook Mayor ATTEST: Jeremy J. Carter City Administrator MC) Exhibit A Parcel 1 The following described Real Estate, situated in the County of McLeod and State of Minnesota, described as follows, to -wit: Beginning at a point 1138.4 feet west and 293 feet north of the southeast comer of Lot 12, Auditors Plat of the South Half Section 30 and the North Half of Section 31, Township 117 N, Range 29 W, according to the plat thereof on file and of record in the Office of the Register of Deed of McLeod County, Minnesota; thence north 358.9 feet to the north line of said Lot 12; thence west along said north line of Lot 12 a distance of 74.2; to the easterly right of way line of Trunk Hwy No. 15; thence southerly along said easterly right of way line 360.6 feet; thence east 128 feet to the point of beginning Parcel 2 Lot 12 Except tracts South 260 feet of West 268 feet and 1675 feet X 260 feet and 260 feet X 90 feet and .75 acres in Northwest Comer, Auditor's Plat of Lot 10, Auditor's Plat South Half Section 30 and North Half Section 31 -117- 29 Parcel 3 That part of Lot 13 of the Auditor's Plat of the South Half of Section 30 and the North Half of Section 31, Township 117, Range 29, described as follows: Commencing at the Southwest corner of said Lot 13; thence easterly along the south line of said Lot 13 a distance of 771.18 feet to the point of beginning of the land to be described; thence northerly, deflecting to the left 90 degrees 00 minutes 00 seconds, 465.00 feet; thence westerly, parallel with said south line, 266.75 feet to a point 370.00 feet easterly, as measured parallel with said south line from the easterly right of way line of State Hwy No. 15; thence northerly 98.72 feet to the south end of Line A; (said Line A is described as commencing at the intersection of the easterly right of way line of State Hwy No. 15 and the north line of Lot 14 of said Auditor's Plat; thence southerly along said right of way line, 139.00 feet; thence easterly, parallel with said north line, 354.48 feet; thence southerly, deflecting to the right 90 degrees 02 minutes 00 seconds, 220.13 feet to the north line of said Lot 13 and the beginning of said Line A; thence southerly, along a prolongation of the last described course, 186.44 feet and said Line A there terminating) thence northerly, along said Line A, 186.44 feet to the north line of said Lot 13; thence easterly, along said north line of Lot 13, 846.16 feet to the northeast comer of said Lot 13; thence southerly, along the east line of said Lot 13, 745.21 feet to the southeast comer of said Lot 13; thence westerly, along the south line of said Lot 13, a distance of 547.75 feet to the point of beginning. Also a 60.00 foot wide easement for access to the above described tract of land. The west line of said easement is described as commencing at the intersection of the easterly right of way line of State Hwy No. 15 and the north line of Lot 14 of said Auditor's Plat; thence southerly along said right of way line 139.00 feet; thence easterly, parallel with said north line of Lot 14 a distance of 359.00 feet to the beginning of said west line of the easement; thence southerly, deflecting to the right 90 degrees 02 minutes 00 seconds, 220.13 feet to the north line of said Lot 13 and said west line there terminating. (NOTE: The 60.00 foot easement lies outside the city limits) Parcel 4 The following described Real Estate, situated in the County of McLeod and State of Minnesota, described as follows, to -wit: That part of Lot 13 of the Auditor's Plat of the South Half of Section 30 and the North Half of Section 31, Township 117 N, Range 29 W, described as follows: Commencing at the southwest corner of said Lot 13, said southwest corner being at the intersection of the south line of said Lot 13 and the west line of the southeast quarter of said Section 30; thence easterly, along said south line a distance of 771.18 feet to the point of beginning of the land to be described; thence northerly, deflecting 90 degrees 00 minutes 00 seconds left, a distance of 465.00 feet; thence westerly, parallel with said south line, a distance of 266.75 feet to a point 370 feet easterly, as measured parallel with said south line, of the easterly right of way line of State Hwy No. 15; thence southerly, parallel with said right of way line, a distance of 466.39 feet to said south line of Lot 13; thence easterly, along said south line, a distance of 301.20 feet to the point of beginning (C-) C TO: Mayor and City Council Members FROM: John Paulson, Environmental Specialist Kent Exner, City Engineer RE: AMERESCO Letter of Intent DATE: 10/19/2012 City staff has been tracking the progress of potential renewable energy grant opportunities since the completion of the Westwood Feasibility Analysis that was done during 2011. As you may recall, the results of the Westwood assessment indicated that without grants or tax credits a renewable energy system was a break even proposition. Staff was directed at that time to monitor incentives and grant opportunities that could make solar photovoltaic (solar pv) or wind energy economically feasible. The City discussions with tenKsolar in December 2011 originated from a tax credit that could be used to bring down the net project costs. The grant referenced below is different in nature but achieves the same goal. The grant that we are pursuing is the Xcel Energy Renewable Development Fund (RDF). The RDF grant program was started in 2001 and has awarded $60 million in grants over three funding rounds. In April 2012 Governor Dayton signed legislation that allowed for the development of another RDF grant round. The RDF grant release has been delayed due to further Xcel program development and final appointments to the RDF Advisory Board. A Request For Proposals is expected to be released in November. Preliminary design of a solar pv system is ongoing by AMERESCO. They are doing this to prepare information that will likely be needed to assist the City in submitting an Xcel RDF grant application. The next step will be to execute the "Letter of Intent" which specifies the commitments of all parties. If the City is awarded a grant in the amount that the City believes makes the project economically viable then Ameresco will begin to develop a Power Purchase Agreement which will include the proposed scope of work, implementation costs, guaranteed cost savings, project fees, and be compliant with MN Statute 471.345, Subd. 13. This statute references the Energy Saving Performance Contracting section of the Minnesota Municipal Contracting Law which does apply to renewable energy projects. The Letter of Intent commits the City to a cost of $1,250 for the assembly and submittal of the Xcel RDF grant. City staff will work with AMERESCO and their grant writer to prepare the application. After receiving a grant the next step is to begin the development of Power Purchase Agreement, as referenced in the Letter of Intent. In consideration of the resources that Ameresco will devote to the preparation of the PPA, the City agrees to compensate Ameresco $15,000 for Ameresco's work to develop a PPA ( "Development Fee "). Ameresco agrees to waive the Development Fee if the City executes a PPA with Ameresco. The Letter of Intent (LOI) with Ameresco is attached for your review and consideration. The LOI will allow city staff to work with Ameresco to prepare the grant application once it becomes available. If a grant is received the Council will have another opportunity to consider proceeding with the development of the Power Purchase Agreement. City staff welcomes your comments and will assist the council in any way we can. w� C October 23, 2012 Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350 -2522 320- 587.5151/Fax 320.234 -4240 Mr. John Neville Regional Director — Midwest Region Ameresco, Inc. 9855 West 78` Street, Suite 310 Eden Prairie, MN 55344 Re: Development of a Solar Photovoltaic System Dear Mr. Neville: The City of Hutchinson ( "City ") has chosen Ameresco, Inc. ( "Ameresco ") to develop a ground -mount solar photovoltaic system ( "System ") at the City's Wastewater Treatment Plant/Municipal landfill site located at 1300 Adams Street SE. The System shall be installed under a power purchase agreement between the City and Ameresco or an affiliate and in accordance with Minnesota Statutes Section 471.345, Subdivision 13. Scone. Ameresco shall prepare a feasibility study for installation of the System which shall include a preliminary price range for the power to be generated by the System and sold to the City. The study and proposed pricing shall consider whether any grant funds from Xcel Energy's 2012 Renewable Development Fund (RDF) would be available to the City, and the effect of those funds on the price. We shall also evaluate alternatives on how the City can maximize the economic value of any grants, including direct payment by the City for non -asset services involved in the design, permitting, and construction of the System. The City agrees to cooperate with Ameresco in providing such information as Ameresco may need for preparation of the feasibility study. Such cooperation shall include but not be limited to supplying historical utility data, site plans, environmental reports, geotechnical studies as they relate to the proposed site. Attached as Exhibit A are preliminary project parameters and a proposed layout of the solar modules on the landfill site. Grant. Upon the City's approval of the feasibility study, Ameresco shall work with the City to apply for grant funds from Xcel Energy's 2012 RDF on behalf of the City. Ameresco is under no obligation to install the System or perform any additional work unless RDF grant funds are awarded to the City in amounts sufficient to make the project economically viable. In Printed on recycled paper - � � LA) consideration of the resources that Ameresco will devote to the preparation of the grant application, the City shall pay Ameresco $1,250 within 30 days after the date of this letter. PPA. If the expected grant funds are awarded to the City, at an amount mutually agreed upon, would be sufficient to allow Ameresco to prepare an economically viable PPA for the City, then the parties shall commence negotiations of a power purchase agreement ( "PPA "). In consideration of the resources that Ameresco will devote to the preparation of the PPA, the City agrees to compensate Ameresco $15,000 for Ameresco's work to develop a PPA ( "Development Fee "). Ameresco agrees to waive the Development Fee if the City executes a PPA with Ameresco. If the City does not execute a PPA with Ameresco, then the City agrees to pay Ameresco its Development Fee within 60 days following receipt of the PPA. Exclusivity The City of Hutchinson agrees to negotiate exclusively with Ameresco for development of the System. The period of exclusivity shall begin on the date of this Letter and continue for 90 days after Ameresco provides the first draft of a power purchase agreement. The exclusivity period shall extend by 90 additional days upon a written letter from Ameresco delivered to the City before the end of the initial 90 -day exclusivity period. Each party shall bear its own costs in negotiating the PPA, whether or not the parties enter into the PPA. In the event negotiations end, the City shall return to Ameresco all drawings or other design documents provided by Ameresco to City pertaining to the proposed solar System, and all other documentation regarding the System or otherwise (such as sample contracts), it being acknowledged by the City of Hutchinson that all such drawings and documentation are the sole and exclusive property of Ameresco. Sincerely, City of Hutchinson, Minnesota By: Name: Title: Accepted: Ameresco, Inc. By: Name: iii) Tifle-4 EXHIBIT A Preliminar Project Paran-icters Pro"ect Size: 400 kW DC Project kW-, 500 I h 000 to 700,000 kWh (sized appropriatel to be uti-lized entirel on site Project Site-. it of Hutchinson, MN capped landf-111 PPA Price: 7.37 cents/kWh,, with a 0 - 2% annual prico escalator PPA Tenn: 10 y ears, -1 y ears (The System would be tumed over to the Cit at the expiration of the PP A.) RDF Grant: 40% - 60% of capital cost Conceptual Site Plan "JiL" Hutchinson MINNESOTA'S MANUFACTURING CITY MEMORANDUM Date: October 15, 2012 To: Hutchinson City Council From: Miles R. Seppelt EDA Director RE: Depot Marketplace — local match for grant & resolutions Honorable Mayor & City Council, Investigation of the former railroad depot site located at 25 Adams Street SE has revealed that significant environmental cleanup is needed before it can be redeveloped as the new downtown Farmer's Market. Staff has identified a grant opportunity from the Minnesota Department of Employment & Economic Development that can cover up to 75% of the site remediation costs. The grant program requires that the remaining 25% of costs come from the City. As I write this, it is estimated that environmental cleanup costs at the Depot site would be approximately $500,000. If the grant application is successful it would provide up to $375,000; leaving $125,000 for the City to cover I will have a short presentation on the status of the project and an update on projected cleanup costs at the October 23` City Council meeting. Council action would be needed to adopt two resolutions: one providing approval for the grant application and the other committing to the local match. Copies are included in your packet. If you have any questions or need additional information, please give me a call at 234 -4223 Thank you for your time and consideration. I I te) RESOLUTION NO. 14061 A RESOLUTION PROVIDING CITY COUNCIL APPROVAL FOR A GRANT APPLICATION TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT WHEREAS, it is in the best interests of the City to facilitate the environmental cleanup of the "Depot Site "; and, WHEREAS, the State of Minnesota Department of Employment and Economic Development has a grant program available that can assist with said cleanup, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, That the City of Hutchinson has approved the Contamination Cleanup grant application to be submitted to the Department of Employment and Economic Development on or about November 1, 2012. Adopted by the City Council this 2V day of October, 2012. ATTEST: Jeremy J. Carter Steven W. Cook City Administrator Mayor iti(C-) RESOLUTION NO. 14062 A RESOLUTION COMMITTING A LOCAL MATCH AND AUTHORIZING CONTRACT SIGNATURE WHEREAS, the City of Hutchinson is applying for a grant from the Minnesota Department of Employment and Economic Development to assist with the environmental cleanup of the "Depot Site "; and, WHEREAS, said grant requires a 25% local match of any funds awarded, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, That the City of Hutchinson act as the legal sponsor for the project contained in the Contamination Cleanup Grant Program application to be submitted on or about November 1, 2012 and that Jeremy J. Carter is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of the City of Hutchinson. BE IT FURTHER RESOLVED that the City of Hutchinson has the legal authority to apply for financial assistance, and the institutional, managerial and financial capability to ensure adequate project administration. BE IT FURTHER RESOLVED that the sources and amounts of the local match identified in the application are committed to the project identified. BE IT FURTHER RESOLVED that the City of Hutchinson has not violated any Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the state, the City of Hutchinson may enter into an agreement with the State of Minnesota for the above- referenced project, and that the City of Hutchinson certifies that it will comply with all applicable laws and regulations as stated in all contract agreements. NOW, THEREFORE BE IT FINALLY RESOLVED that the Mayor and the City Administrator are hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. Adopted by the City Council this 23r day of October, 2012. ATTEST: Jeremy J. Carter Steven W. Cook City Administrator Mayor MEMORANDUM DATE: October 17, 2012 for the October 23, 2012, City Council Meeting TO: Hutchinson City Council FROM: Dan Jochum, Planning Director SUBJECT: Discussion on the ordinance allowing garages over 1,000 sq. ft. by conditional use permit Background: There has been some discussion recently on Section 154.026 — Accessory Buildings, in the Zoning Ordinance. The ordinance states: "No accessory building or garage per single- family homes shall occupy more than 25% of a rear yard, nor exceed 1,000 square feet of floor area. Garages which exceed the aforementioned maximum may be allowed with a conditional use permit'. There have been several conditional use permit requests in recent months for garages over 1,000 square feet. Does the City want to allow additions to garages or new garages over 1,000 square feet? Is a 1,000 square foot garage sufficient for the vast majority of residential storage needs? Planning Commission Meeting: The Planning Commission discussed the item at their October 16 meeting. Recommendation: After discussion, the consensus of the Planning Commission was not to amend the ordinance and leave it as it is. The Planning Commission felt there enough safeguards in place with setbacks, lot coverage maximums, and the existing Conditional Use Permit Process to allow garage over 1,000 square feet without having negative impacts to surrounding residences. Staff recommended that this issue be forward to the City Council for further discussion and to make the City Council aware of the discussions that took place at the Planning Commission level. Staff will be available to answer questions regarding this issue at the October 23, 2012 City Council Meeting. Planning, Zoning, and Building Dept. Monthly Report September 2012 Building Department Permit Activities Commercial Remodel: Hutchinson Utilities foundation & structural seal $380,000, Cash Wise parking lot $202,000 *Started tracking Plan Review June 1" 2 New Single Family: Other Building Inspection Activities: Planning, Zoning, and Building Department— Other Activities Facilities Management/Maintenance Activities: Evergreen Meals served in September, 2012 Park Silver Week Of Hutchinson Towers Lake Glencoe Brownton Stewart 912011 912012 2011 Year to Date 2012 Year to Date Total Number Inspections 185 114 486 914 Total Number Plan Review 69 10 * 69 24 Building Permits Issued by Type Number of Permits & Valuation Number of Permits & Valuation Year to Date Number Permits & Valuation Year to Date Number Permits & Valuation Commercial (new) 0 0 1 - $1,450,000 3-$11,900 Commercial Additions/ Remodels 11 - $273,100 10 - $631,500 79 - $2,355,320 64 - $2,747,000 Industrial (new) 0 0 0 0 Industrial Additions/Remodels 0 1—$14,600 1 - $8,500 2-$858,500 Fire Sprinkling 1 -$4,900 0 2 - $139,700 2-$1,600 Total New Residential Units (Single Family, twins, townhomes) 1 -$267,500 0 2 2-$522,500 4 - $655,140 Residential misc. additions, repairs, remodels, etc 16 - $163,900 6-$57,300 119 - $735,262 88 - $675,264 Set fee permits reside, reroof, window replacement, misc. * 97 55 435 478 HRA Permits 6-$163,400 1 - $38,000 14 - $363,400 12 - $118,946 Subtotal Building Permits: $872,800 $741,400 $5,574,682 $5,074,450 Mechanical 20-$38,949 20-$24,673 129- $2,168,322 117 - $1,120,624 Plumbing* 6 7 42 55 Signs* 4 5-$80 58 77-$188 Total Permits issued and valuation 162- $911,749 105 $766,153 883 - $7,743,004 900 - $6,195,262 * Set fees not included in valuation Commercial Remodel: Hutchinson Utilities foundation & structural seal $380,000, Cash Wise parking lot $202,000 *Started tracking Plan Review June 1" 2 New Single Family: Other Building Inspection Activities: Planning, Zoning, and Building Department— Other Activities Facilities Management/Maintenance Activities: Evergreen Meals served in September, 2012 Park Silver Week Of Hutchinson Towers Lake Glencoe Brownton Stewart 911-918 205 126 55 116 67 50 919-9/15 228 162 69 160 69 56 9/16--9/22 256 168 77 153 70 67 9/23-9/30 248 168 61 172 63 69 Total 937 624 262 601 269 242 Total Meals served in September -2,935 Dates Closed: 9/3/2012 Planning, Zoning, and Building Dept. Monthly Report for September, 2012 Page 2 Planning and Zoning Monthly Activities Month[Year: September, 2012 Activity Number Additional Info. Number of Planning Applications Reviewed and 2 Conditional use permit garage over 1000 sq. ft — 22 McLeod Ave Processed Rezone Burns Manor property (withdrawn) Number of Joint Planning Board Applications Reviewed 1 Conditional use permit for a church use in 1 -1 district and Processed Number of Planning Commission Meetings 0 Number of Joint Planning Meetings 0 Number of Zoning Reviews for Building Permits 4 Number of Land Use Permits Issued 10 Number of Zoning Review for Sign Permits 5 Number of Predevelopment/Pre Application Meetings 2 Animal Ordinance Review Erosion Control /Grading permit meeting Number of Misc. Planning Meetings 14 2- Management team meetings Conf. call w /SEH on Comp Plan 2 -City Council meetings Conf. call meeting Transportation Plan 2- Downtown plan meetings Wellness Committee Imagine Hutchinson open house Evan Wilson — house on South Grade Rd Meeting McKinstry Civic Arena Subdivision /Development meeting Attended MNAPA Conference Number of Zoning Enforcement Cases 22 17 -sign violation letters Dirt pile on Wert property Sign Violation follow -up Met with Holiday manager Pizza Hut letter Patio without permit letter Number of Walk -In Customers Served 342 Site Visits 5 Follow -up on Cars on Patrol — Michigan Ave. 1170 West Shore Dr — swimming pool Glen St property line issue 1235 Rolling Oaks — no permit 18 Jefferson Misc Activities — Plannin¢ Director Dan Jochum attended the Minnesota State Plannine Conference in Alexandria. To: Mayor and Council From: Candice Woods, Liquor Hutch Director Date: 10/01/12 Re: Quarterly Report July — September 2012 2012 2011 Change Year to Date Sales: $3,876,606 $3,680,426 5.3% increase Liquor $1,251,944 $1,197,859 4.5% increase Beer $1,985,172 $1,877,989 5.7% increase Wine $ 557,859 $ 524,196 6.4% increase Year to Date Gross Profit Dollars: $961,733 $905,195 6.2% increase Customer Count: 167,178 161,605 3.4% increase Average Sale per Customer: $23.19 $22.77 $0.42 increase Gross Profit Percentage: 24.81% 24.60% 0. 21 % increase (Note: Industry Benchmark for GP% = 23 %) Third Quarter Store Activity Highlights: • Annual 25% Off Wine Sale July 23rd — August 4th produces record sales. • Liquor and Wine Department resets done to accommodate Holiday packages. • Beer Cooler resets done to accommodate Fall packages. • September Grapevine Wine Tasting produces $520 in sales. • 18 additional In -Store Tasting Events held throughout the third quarter. Further details of all statistics have been provided to the Administrative Department. Please feel free to contact me with any questions or requests for additional data. I Z-«) CITY OF HUTCHINSON Financial Report - GENERAL FUND For the month of September, 2012 SUMMARY FINANCIAL STATEMENT: 2012 2012 2012 2012 2011 2011 Category Month of September Approved Budget % Used September Approved % Used September YTD Budget Balance YTD Budget REVENUES: 4005 Taxes &Penalties - 2,301,076 4,491,446 2,190,370 51.2% 2,142,863 4,491,446 47.7 4050 Licenses 124 52,209 53,500 1,291 97.6% 47,140 51,300 91.9% 4070 Permits 12,987 137,107 158,950 21,843 86.3% 137,886 246,600 55.9% 4100 Inter ovemmental 56,658 1,001,715 1,194,876 193,161 83.8 1,137,569 1,144,277 99.4% 4250 Char es for Services 80,303 1,038,175 1,852,400 814,225 56.0% 1,019,039 1,843,596 55.3% 4400 Fines & Forfeitures 4,805 42,067 45,000 2,933 93.5% 34,475 45,000 76.6% 4620 Investment Earnin s 5,568 35,000 29,432 15.9% 85.7% 27,423 286,739 70,000 568,385 50.4% 4700 Reimbursements 28,060 8,530 348,737 773,892 407,152 2,090,376 58,415 1,316,484 37.0% 735,696 2,161,535 34.0% 4800 Transfers 738 5,486 350 5,136 1557.3% 204 400 50.9 ° h 4890 Surcha a 10,000 10,000 0.0% - 15,000 0.0% 4998 Fund Balance - - TOTAL REVENUES 192,204 5,706 032 10,339 050 (4,633,018) 55.2% 5,569,034 10,637,539 52.4% EXPENDITURES: 6105 Salaries & Frin a Benefits 527,319 4,923,232 6,633,597 1,710,365 74.2% 5,096,269 6,607,157 77.1% 6200 Su lies, Re airs, Maint. 56,137 586,152 790,835 204,684 74.1% 584,263 761,532 76.7% 6300 Contractual Services 109,949 349,939 462,442 112,503 304,272 465,925 65.3% ° h 6306 Services & Char es 292,930 1,524,943 2,155,664 630,721 70.7 ° k 1,692,762 2,233,927 75.8 - 0.0% - - U. % 6600 Debt Service - 44,825 - 91,650 92,750 1,100 98.8% 45,525 89,300 51.0% 6700 Transfers 6900 Misc. Expenses 74,567 235,568 203,762 1 31,806 115.6% 165,457 479,698 34.5% 7000 Capital Outlay - 1,420 - 1,420 100.0% 972 - 100.0% TOTAL EXPENDITURES 1,106,728 7 712 904 10,339 2,626,146 74.6% 7,889,521 10 637 539 74.2 TOTAL REVENUE OVER UNDER EXPENDITURES 913 523 2006 872 - 1 100.0% (2,320,4871 100 COMMENTS: REVENUES: Taxes & Penalties The 2012 first half tax settlement received in June is Higher than in 2011 due to the State discontinuing the Market Value Homestead Credit in 2012. Intergovernmental This category is reflecting a YTD decrease from last year mainly due to the timing of the Police Pension Aid. We received the aid in September last year versus October this year; $132,687. Reimbursements This category is reflecting a YTD increase over last year mainly due to the Workers Compensation premium rebate received in April, $32,004. Transfers This category is reflecting a YTD increase over last year due to an increase in the Hutchinson Utilities transfer through June; $18,960. Also contributing to the increase is the transfer from Hutchinson Utilities related to the 2012 energy tree program; $12.193 EXPENDITURES: Salaries & Fringe Benefits YTD expenses are tracking with the budget. The decrease in YTD 2012 from 2011 is due to the payout in 2011 of severance and vacation balances to the employees who accepted the early retirement at 1 213 112 01 0. Services & Charges The decrease in YTD 2012 from 2011 is due in part to a timing difference in payment of the 3rd and 4th quarter general liability insurance premiums; $67,351. Also contributing to the decrease is the 2012 transfer to the Equipment Replacement Fund; $192,615, which is $48,176 lower than in 2011. Transfers The City's second half 2012 transfer to HATS was made in September; $44,825. Last year the transfer was made in October. Misc. Expenses The 2012 YTD activity includes a payment to the School district for reimbursement of grant funds; $49,933. This expense is offset 100% by grant proceeds accounted for within Intergovemmental revenue. The Police Department, in conjunction with the School district, procured a $74,835 grant to install a new surveillance system in the four Hutchinson schools. Installation of new servers covered by the grant will also give the Hutchinson PD real -time access to the surveillance equipment. The School district is responsible for the expenses while the City handles the grant reporting, requests grant funding as costs are incurred and reimburses the School district for grant funds received. The remaining grant dollars have been reported and received in October 2012; $24,070. `! 1�`C) ti A(C) EXPENDITURES BY DEPARTMENT: 2012 Month of 2012 September 2012 Approved 2012 Budget %Used 2011 September 2011 Approved %Used Department September YTD Budget Balance YTD Budget Mayor & City Council 2,531 26,384 53,814 27,430 49.0% 28,832 51,866 55.6% City Administrator 29,432 282,230 380,851 98,621 74.1% 395,663 385,766 102.6% 580 9,532 16,000 6,468 59.6% 771 10,000 7.7% Elections Finance Department 24,570 273,927 364,529 90,602 75.1% 337,842 381,614 88.5% Motor Vehicle 21,626 214,213 271,910 57,697 78.8% 222,851 252,887 88.1% Assessing 61,079 61,079 61,911 832 98.7% - 61,911 17,072 167,802 233,181 65,379 72.0% 161,365 234,519 68.8% Legal 11,494 111,973 117,320 5,347 95.4% 117,080 170,830 68.5% Planning Information Services 31,680 294,388 452,687 158,299 65.0% 231,873 360,943 64.2% Police Department 293,139 2,256,439 2,915,131 658,692 77.4% 2,118,913 3,029,871 69.9% Emergency Management 122 11,306 13,025 1,719 86.8% 8,270 10,000 82.7% - 7,726 13,450 5,724 57.4% 9,281 13,450 69.0% Safety Committee 32,949 235,518 296,805 61,287 79.4% 236,340 460,763 51.3% Fire Department 13,528 127,681 206,188 78,507 61.9% 115,755 155,350 74.5% Protective Inspections 38,167 364,335 457,614 93,279 79.6% 370,042 463,959 79.8% Engineering 123,262 1,011,574 1,308,421 296,847 77.3% 1,240,158 1,437,814 86.3% Streets & Alleys 8,200 77,228 121,698 44,470 63.5% 83,123 131,427 63.2% City Hall Building ParklRecreation Administration 14,519 154,412 215,295 60,883 71.7% 158,645 211,546 75.0% 180,826 217,894 37,068 83.0% 186,959 218,893 85.4% Recreation 12,513 47,698 67,635 19,937 70.5% 49,665 72,990 68.0% Senior Citizen Center 5,497 Civic Arena 14,129 208,865 326,765 117,900 63.9% 239,047 331,624 72.1% Park Department 62,627 591,178 721,981 130,803 81.9% 589,293 720,738 81.8% Recreation Building & Pool 7,153 160,455 187,760 27,305 85.5% 150,389 185,393 81.1% Events Center 13,066 135,044 231,225 96,181 58.4% 147,008 224,688 65.4% Evergreen Building 964 7,184 12,305 5,121 58.4% 8,699 13,130 66.3% 40,285 137,528 183,970 46,442 74.8% 137,693 183,759 74.9% Library 6,703 69,408 108,400 38,992 64.0% 138,868 112,511 123.4% Cemetery 3,702 59,867 100,235 40,368 59.7% 70,936 101,314 70.0% Airport Revenue Department - - 50,000 50,000 - 50,000 Unallocated General Expense 215,137 427,105 631,050 203,945 67.7% 334,159 597,983 55.9 TOTAL EXPENDITURES 1 105,728 7,712 10 339 050 2 74.6% 7 889 621 10,637.639 74.2 ti A(C) Department: Liquor Fund: jUguor 2012 2012 2012 Approved Category Month of September Approved September Approved %Used September YTD Budget YTD Budget REVENUES: Sales: 2012 2011 Chancre 2012 2011 Chan 128,621 134,530 4.4% 1,263,037 1,208,328 4.5% 5 7,246 57,461 .0.4% Wine Wine =5%�tem Beer 2,013,416 1,902,853 0% 2,833 3,662 -22.6% 20,084 -29.0% Other Total Sales 128,621 1,263,037 1,705,453 Average Sale per Customer % 1,208,328 1,705,453 70.9% 4450 Sales - Li uor 57,246 583,506 852,364 Comparisons to the prior year are not effective this year due to the change in accounting. % 549,462 759,895 72.3% 4450 Sales - Wine 208,688 2,013,4 16 2,601,267 4% 1,902,853 2,681,718 71.0% 4450 Sales - Beer 2,833 14, 256 21,142 6,886 67.4% 20,084 11,142 180.3% 4450 Sales -Other 207 1,456 1,000 456 145.6% 947 3,000 31.6% 4620 Investment Earnin s 2,711 2,000 711 135.6% 1,616 - 100.0% 4700 Reimbursements 397,595 3,878,382 5183,226 1,304 844 74.8% 3,683,290 5161,208 71.4% TOTAL REVENUES 94,865 934,174 1,248,158 (313,984) 74.8% 635,593 1,223,629 51.9% Gross Margin 24A% 24.1% 17.3% 23.7% % EXPENDITURES: 302,524 2,940,041 3,932,068 992,027 74.8% 3,045,134 3,934,579 6800 Cost of Sales 36,885 352,718 436,850 84,132 1 80.7% 334,719 439,644 76.1 6105 Salaries 8 Frin a Benefits 16,600 8,081 51.3% 8,949 20,400 43.9% 6200 Su lies, Re airs, Maint. 114 8,519 186,500 59,014 68.4% 132,942 168,105 79.1% 6306 Services B Cha es 15,603 127,486 128,035 128,035 D.0% - 128,048 0.0% 6600 Debt Service - 420,000 420,000 0.0% _ 451,030 0.0% 6700 Transfers - 77,671 77,671 0.0% - 77,671 0.0% 6898 De reciation ' 7,599 3,650 3,949 206.2% 3,402 3,250 104.7 6900 Misc. EX arises - 355125 3436363 5201,374 1,765011 6601% 3,525147 5,222927 67.5% TOTAL EXPENDITURES TOTAL REVENUE OVER 442 019 (18,148) 460,167 - 2435.6% 168.1 61 T79 - 256.2% UNDER EXPENDITURES 42 470 COMMENTS: REVENUES: Sales Total YTD sales are up 5.3% over last year while the YTD customer count is up 3.4 %. The September customer count decreased 4.5% from last year resulting in a 4.8% decrease in sales for the month. The September decrease is due mostly to losing two sales days prior to Labor Day in September 2012 versus September 2011. ia(<) YTD YTD September September Sales: 2012 2011 Chancre 2012 2011 Chan 128,621 134,530 4.4% 1,263,037 1,208,328 4.5% 5 7,246 57,461 .0.4% Wine Wine 583,506 549,462 5 .2% 5. 208,688 221,932 -6.0% Beer 2,013,416 1,902,853 0% 2,833 3,662 -22.6% 20,084 -29.0% Other Total Sales 14,256 3,874,215 3,880,727 5.3Y. 397,388 417,585 4.8% YTD Customer Count 167,178 161,605 34% 17,694 18,534 4.5% -0.3% Average Sale per Customer $ 23.17 $ 22.81 1.6% $ 22.46 $ 22.53 EXPENDITURES: implemented a change in accounting for Cost of Sales and Inventory. We are now accounting for actual inventory Cost of Sales In April we levels where in prior years we updated inventory only at year end. This change will bring the monthly financials in line monthly with reports generated by Candice and will present a more accurate Cost of Sales on a monthly basis. Comparisons to the prior year are not effective this year due to the change in accounting. Loan payments to Water and Sewer Funds are made in December of each year. Debt Service Depreciation Depreciation is calculated and booked at year -end. ia(<) Department: Creekside Fund: 1C om Ost 2011 2011 2012 2012 2012 2012 Category Month of September Approved Butlget %Used September Approved %Used September YTD Budget Balance YTD Budget REVENUES: Charges for Services $28,500. The remaining 50% tip fee is expected to be billed in October. This category also includes freight services; reimbursement for hauling raw material out of Ramsey County; $46,632. The freight revenue is an offset to the freight expense in Cost of Sales. YTD 2012 sales have been very favorable due to the weather. Creekside has sold 285,020 more bagged product YTD 2012 Sales 6,169 127,153 132,000 4,847 96.3% 94,035 20,000 470.2% 4250 Cha as for Services Bagged ( #of bags) 179,124 145,000 34,124 123.5% 108,015 100,000 106.0% 4450 Sales - Bulk Product 14,115 1,759,629 70,595 104.0% 1,543,299 1700,000 90.8% 4450 Sales - us so Product 50,299 1,830,224 66,000 7,742 111.7% 60,304 67,000 90.0% 4450 Sales - Other 2,586 73,742 705 100.0% 1,582 - 100.0% 4620 Investment Eamin s 705 1,000 148 85.2% 1,811 2,000 90.6% 4700 Reimbursements 0 852 73 168 2,211 800 2,103,629 108 171 105.1% 1,809,046 1 95.8% TOTAL REVENUES 22,635 611,113 769,686 (158,573) 79.4% 326,404 1,011,000 32.3% Gross Margin 33.8% 29.3% 39A% 19.1% 54.2 % EXPENDITURES: 44,365 1,471977 1,200,943 271,034 122.6% 1385,214 856,000 161.8% 6800 Cost of Sales 27,361 298,260 478,605 180,345 62.3% 317,520 578,863 54.9% 6105 Salaries 8 Frin a Benefits 24,350 47,651 -95.7% 2,462 52,130 -4.7% 6200 Su lies, airs, Maint. 4,606 23,301 18,651 132.2% 33,770 43,000 78.5 0 d Services 630 Contracted 11,619 76,651 58,000 117,800 63,161 46.4% 87, 697 150,295 58.4% 6306 6 Services &Char as 1,311 54,639 57 800 57,800 0.0% - 57,800 0.0% 6700 Transfers 8,792 77,594 70,290 147,884 - 110.4% 80,946 146,184 -55.4% 6898 De reciation 11,921 8,500 3,421 140.2% 6,445 12,500 51.6% 6900 Misc. Ex rises 174 - 125,000 125,000 0.0% 23,345 94,000 24.8% 7000 Ca dal Outla - 68 462 1 812 552 2141 288 328 736 84.6% 1,770,582 1 990,772 88.9% TOTAL EXPENDITURES TOTAL REVENUE OVER 37659 436907 - 1060.2% 38463 101772 -3T. UNDER EXPENDITURES 4706 399248 COMMENTS: REVENUES: YTD 2012 includes the sale of the debagger to St. Cloud; $45,000 and 50% of the tip fee from St. Cloud for composting Charges for Services $28,500. The remaining 50% tip fee is expected to be billed in October. This category also includes freight services; reimbursement for hauling raw material out of Ramsey County; $46,632. The freight revenue is an offset to the freight expense in Cost of Sales. YTD 2012 sales have been very favorable due to the weather. Creekside has sold 285,020 more bagged product YTD 2012 Sales than in 2011, equating to a 21.5% increase. Bulk sales have increased by 7,112 yards YTD 2012 over 2011. In all of 2011 we sold 1,405,977 bagged product and 9,509 yards of bulk product so we've already outsold last year, however last year was a poor year due to wet weather. ,RD YTD September September Chance Yc Sales; 2012 2011 Chance Ya 2011 21.5% 55,901 58,606 (2,705) -4.6% Bagged ( #of bags) 1,609,152 1,324,132 285,020 93.3% 1,290 1,568 (278) -17.7% Bulk (yards) 14,736 7,624 7,112 EXPENDITURES: Cost of Sales YTD 2012 is higher than 2011 primarily due to the higher level of sales. Contracted Services The majority of this expense category relates to temporary labor used in operations and marketing The remaining activity relates to services for turning the compost rows at the St. Cloud operation which we are managing; $13,432. Transfers Transfers are made at year -end. Depreciation Depreciation is calculated and booked at year -end. The negative activity all year is due to including depreciation in the cost of the product, essentially moving the cost from the P&L to inventory on the Balance Sheet. 1 c J Department: Refuse Fund: Refuse 2012 zolz 2g11 2011 2012 2o12 Approved Budget %Used September Approved %Used Category Month of September YTD Budget September YTD Budget Balance REVENUES: 7,711 26,000 16,289 29.7% 4,554 29,466 15.5% 41ter overnmental 00 In 0.0% 0.0% 4250 r es for Services Cha " 850,913 1.143,100 292,187 74.4% 856,612 1,167,000 73.4% 4450 Sales 95,406 997 100.0% 4,067 100.0% 4620 Investment Eamin s 997 0 0 % _ 0.0% 4700 Reimbursements 95,406 859620 1,169,100 309,480 73.5% 865,233 1,196,466 72.3 ° h TOTAL REVENUES EXPENDITURES: 5,000 5,000 0.0% 1,820 5,000 36.4% 6800 Cost of Sales 132,588 148,420 15,832 69.3 % 128,444 143,945 89.2% 6105 Salaries & Fnn a Benefts 13 922 68,700 41 624 39.4% 98,463 122,950 80.1 6200 Su lies, Re airs, Maint. 13,549 27,076 15,000 7,166 52.2% 11,666 31,000 6300 Contracted Services 1249 7,834 658,417 227,191 65.5% 463,487 667,800 6306 Services B Char es 50,335 431,226 55,000 55,000 0.0% 6700 Transfers _ 163,073 163,073 0.0% 264, Bit 0.0% 6898 De reciation _ 286 - 286 100.0% - 6900 Misc. Ex nses 120 _ 0.0% 8,732 154,000 5.7% 7000 Ca ital Outla - 79175 599011 1,113,810 514,599 53.8% 712612 1389,506 51.3% TOTAL EXPENDITURES TOTAL REVENUE OVER 56,490 205-120 469.7% 152,621 193 040 "79.1 UNDER) EXPENDITURES 16 231 260 COMMENTS: REVENUES: Intergovernmental This income category Consists of the County reimbursement for the site montior (SCORE). We received the 2nd quarter reimbursement in August; $7,711 and the 1st quarter reimbursement in October; $4,919. We will request the 3rd quarter reimbursement at the end of October and expect to receive the funds in November. Sales YTD sales are tracking to budget. EXPENDITURES rimanl y to the compost po bag program; $(67,85 ram; We changed our program in Supplies, Repairs, Maint. The YTD 2012 decrease from YTD 2011 is due p 7). 2011, handing out bags to residents on pre - determined dates at the Fairgrounds and anytime at City Center rather than delivering door- to-door. History has shown that many bags delivered door -to door were simply being thrown out in the trash. This change has resulted in a significant savings in bag Cost. Services & Charges The majority of the decrease in YTD 2012 from YTD 2011 is due to the timing of payments made to Waste Management. YTD. 2012 includes payment for eight months of service where YTD 2011 includes payment for nine months of service. The hauling Contract with Waste Management includes bi- annual increases to the hauling fees based on the CPI. The increases effective April 2012 and October 2012 are 0.93% and 0.98 %, respectively. Transfers Transfers are made at year -end. Depreciation Depreciation is calculated and booked at year -end. ,V_(C) Department: 1water Fund: lWater 2012 2012 2012 2012 2011 2011 Category Month of September Approved Budget %Used September Approved %Used September YTD Budget Balance YTD Budget REVENUES: 4005 Taxes 65,074 304,909 252,000 52,909 121.0% - - 0.0% - 0.0% 580 - 100.0% 4020 S ecial Assessments - - 0.0% 4100 Inter overnmental - 9,271 - 9.271 2,755 100.0% 106.6% - 28,020 - 32,000 87.6% 4250 Char as for Services 1,852 252,694 34,755 1,856,801 32,000 2,347,500 490,699 79A% 1,797,466 2,501,500 71.9% 4450 Sales 3,101 20,000 16,899 15.5% 10,758 20,000 4620 Investment tannin s - 15,768 19,052 64,017 44,965 29.8% 625 63,802 4700 Reimbursements 60 100.0% 120 4800 Transfers - 60 TOTAL REVENUES 335,389 2,227 949 2,715 517 487,568 82.0% 1,816 054 2 617 302 69.4% EXPENDITURES: 6105 Salaries 8 Firm a Benefts 35,439 298,677 443,330 144,653 67.4% 295,198 452,846 65.2% 6200 Su lies, Re airs, Maint. 2,688 64,344 143,975 79,631 1 44.7% 79,827 149,600 53.4% 6300 Consultin 1,099 13,138 50,000 36,862 26.3% 15,950 50,000 31.9% 6306 Services 8 Char as 39,648 253,248 405,550 152,302 62.4% 265,722 485,450 54.7% 1,026,220 1,218,884 192,664 84.2% 1,045,850 1,211338 86.3% 6600 Debt Service - 43,145 43,145 0.0% 43,145 0.0% 6700 Transfers - - 1,020,000 1,020,000 0.0% - 1.000.000 0.0% 6898 Depreciation - 50 10,980 15,850 4,870 69.3% 5,428 13,450 1 40.4% 6900 IMisc. Expenses 18,936 250,000 231,064 7.6% - 240,000 1 0.0% 7000 1 Ca ital Outla - TOTAL EXPENDITURES 78 924 1 3,590,734 1,905 192 46.9% 1,707 976 3 645 829 46.8% TOTAL REVENUE OVER 256 465 542 407 875 21 1 417 624 $2.0% 108 079 1 028 527 -10.5% UNDER EXPENDITURES COMMENTS: REVENUES: Taxes This income category consists of the Local Sales Tax which was effective January 1, 2012. The YTD 2012 amount shown above reflects January thm July receipts from the State. Sales Water sales are tracking slightly above budget while total consumption is flat from last year. Industrial consumption is down about 23% from last year due mostly to the drop in usage by HTI's production process. Commercial consumption is up about 14% while residential consumption is up 9 %. The dry summer is a factor in the residential and commercial usage increase with landscape watering. EXPENDITURES: Services 8 Charges September 2012 activity includes costs to repair the damaged hydrant at the corner of Hwy 15 and Century next to McDonalds; $15,678. We received full reimbursement from the truck drivers insurance in October. Debt Service All debt service payments have been made for the year, including principal payments of $735,000 and interest payments of $475,884. An adjustment will be made at year end to accrue a portion of 2012 interest expense that will be paid in 2013. Transfers Transfers are made at year -end. Depreciation Depreciation is calculated and booked at year -end. )_(C) Department: 1wastewater Fund: Sewer Category 2012 Month of September 2012 September YTD 2012 Approved Budget 2012 Budget Balance % Used 2011 September YTD 2011 Approved Budget % Used spreading biosolids on farm fields this year as opposed to hauling to the landfill and incurring fees. The weather is the main factor in spreading biosolids on the fields. With the wet spring of 2011, we incurred $35,287 in landfill charges to dispose of LOAD SURCHARGES biosolids compared to no landfill charges in 2012. Debt Service All debt service payments have been made for the year, including principal payments of $1,071,000 and interest payments of Industrial Users: 3M HTI Ohly YTD 2012 $ 128,564 $ 77,027 170,395 REVENUES: Change S (10,556) (200,958) 25,198 % -7.6% -72.3% 17.4% YTD 2012 $ 20,334 - 348,865 YTD 2011 $ 26,338 11,897 422,571 Change $ (6,004) (11,897) 73,706 % -22.8% - 100.0% -17.4% Total 4005 4070 4250 4450 4620 4700 4800 Taxes Permits Charges for Services Sales Investment Earnings Reimbursements Transfers 89,864 - 315,518 32,334 - 421,065 6,700 10,360 2,556,784 4,467 44,412 - 348,000 7,000 R3,636,017 73,065 300 3,360 633,216 15,533 19,605 - 121.0% 95.7% 148.0% 80.1% 22.3% 69.4% 0.0% - 6,900 1,578 2,832,437 16,155 36,817 - - 7,500 6,000 3,494,000 20,000 - 63,802 0.0% 92.0% 26.3% 81.1% -80.8% 100.0% 0.0% TOTAL REVENUES 437,716 3,043,789 592,228 817% 2,861,576 3,591,302 79.7% EXPENDITURES: lies, Re airs, Maint. WCons ulfin laries & Frin a Benefits nsultin rvices&Char es bt Service nsfers reciation sc. Ex nses ital Outla 47,157 7,549 5284 39,186 - 450,911 189,235 74,393 435,164 1,339,475 - - 16,983 - 623,725 405,500 120,000 747,300 1,527,212 43,145 1,620,000 27,000 350,000 172,814 216,265 45,607 312,136 187,737 43,145 1,620,000 10,017 350,000 72.3% 46.7% 62.0% 58.2% 87.7% 0.0% 0.0% 62.9% 0.0% 434,349 298,372 78,640 516,749 1,329,939 - 19,741 - 620,093 404,500 120,000 737,225 1,516,000 43,145 1,620,000 22,600 350,000 70.0% 73.8% 65.5% 70.1% 87.7% 0.0% 0.0% 87.3% 0.0% TOTAL EXPENDITURES 99.1761 2,506,160 5 2,957 722 45.9% 2 5,433,563 49.3% TOTAL REVENUE OVER UNDER EXPENDITURES 338.540 537.628 1 827 865 2 365 493 -29.4% 183,787 (1 10.0% COMMENTS: REVENUES: Taxes This income category consists of the Local Sales Tax which was effective January 1, 2012. The YTD 2012 amount shown above reflects January thru July receipts from the State. Sales Sewer sales are tracking above budget but 10% below last year through September The decrease from 2011 is due mostly to the reduced wastewater from HTI. Revenue from HTI's wastewater flow is down 72% YTD, equating to approximately a $200,000 decrease. Load surcharge revenue is down $91,607 for all three industrial users with Ohly accounting for the majority of the decrease; $73,706. The loss in load surcharge revenue is offset by less chemical expense to treat the wastewater. EXPENDITURES: Supplies, Repairs, Maint. The majority of this expense category is for chemicals, which is tracking below budget YTD and substantially below last year's expense level. This is due mainly to issues last year with treating high levels of phospates discharged by Ohly. The issue is under control this year resulting in less expense which in turn results in lower revenue as we billed Ohly for treating the higher phospate levels. Services & Charges YTD 2012 activity is favorable to the budget and to YTD 2011 mainly due to Utilities and Refuse - Landfill Charges. Utilities is favorable due to only eight monthly payments in 2012 versus nine in 2011. Refuse - Landfill Charges is favorable due to FLOW REVENUE spreading biosolids on farm fields this year as opposed to hauling to the landfill and incurring fees. The weather is the main factor in spreading biosolids on the fields. With the wet spring of 2011, we incurred $35,287 in landfill charges to dispose of LOAD SURCHARGES biosolids compared to no landfill charges in 2012. Debt Service All debt service payments have been made for the year, including principal payments of $1,071,000 and interest payments of Industrial Users: 3M HTI Ohly YTD 2012 $ 128,564 $ 77,027 170,395 YTD 2011 139,120 277,985 145,197 Change S (10,556) (200,958) 25,198 % -7.6% -72.3% 17.4% YTD 2012 $ 20,334 - 348,865 YTD 2011 $ 26,338 11,897 422,571 Change $ (6,004) (11,897) 73,706 % -22.8% - 100.0% -17.4% Total $ 375,986 $ 562,302 $ (186,317) -33.1% $ 369,199 $ 460,806 $ (91,607) -19.9% EXPENDITURES: Supplies, Repairs, Maint. The majority of this expense category is for chemicals, which is tracking below budget YTD and substantially below last year's expense level. This is due mainly to issues last year with treating high levels of phospates discharged by Ohly. The issue is under control this year resulting in less expense which in turn results in lower revenue as we billed Ohly for treating the higher phospate levels. Services & Charges YTD 2012 activity is favorable to the budget and to YTD 2011 mainly due to Utilities and Refuse - Landfill Charges. Utilities is favorable due to only eight monthly payments in 2012 versus nine in 2011. Refuse - Landfill Charges is favorable due to spreading biosolids on farm fields this year as opposed to hauling to the landfill and incurring fees. The weather is the main factor in spreading biosolids on the fields. With the wet spring of 2011, we incurred $35,287 in landfill charges to dispose of biosolids compared to no landfill charges in 2012. Debt Service All debt service payments have been made for the year, including principal payments of $1,071,000 and interest payments of $445,212. An adjustment will be made at year end to accrue a portion of 2012 interest expense that will be paid in 2013. Transfers Transfers are made at year -end. Depreciation Depreciation is calculated and booked at yearend. Department: Storm Water Fund: Storm Water Wil 2011 2011 2012 2012 2012 209 Approved % Used Category Month of September Approved Bud et %Used September September YTD Budget Balance YTD Budget REVENUES: 0.01Y. 4070 Permits 100 1'240 1,240 - 100.0% 0.0% - 25,651 _ 100.0% 4100 Inte overnmenlal 1,000 6,941 794.1% 42,750 - 100.0% 4250 Char as for Services 5,393 7941 613,250 143,974 76.5% 434,986 566,250 76.8% 4450 15ales 52,743 469,276 1,000 324 67.6% 5,375 1,000 537.5% 4620 Investment Earnin s 676 914 100.0% 500 1,650 30.3% 4700 Reimbursements 914 - 58,236 480 048 615 250 135,202 78.0% 509,262 568 900 89.5% TOTAL REVENUES EXPENDITURES: 10,898 90,287 205,610 115,323 43.9% 93421 203,770 45.8 °h 6105 Salaries 8 Fein a Benefits 33,100 21,980 33.6% 29,491 33,100 89. 6200 Su lies, Re airs, Maint. 1,073 11,120 1,688 108.4% 640 20,000 3.2% 6300 Consultin 2,085 21,688 20,000 122,250 30,796 74.8% 86,031 104,950 82.OYo 6306 Services &Char as 14,275 91,454 165,340 18,085 89.1% 143,365 165,400 86. 6600 Debt Service 147,255 6700 Transfers - 90,000 90,000 0.0% 6898 De reciation - 163 2,200 2,037 7.4% 189 2,200 8.6% 6900 Misc. Ex rises 53 157,000 157,000 0.0% 33,785 120,000 282% 7000 Ca ilal Outla - 28,385 361,967 795,500 433533 45.5% 386,923 729420 53.0% TOTAL EXPENDITURES TOTAL REVENUE OVER 118 080 180 250 298 330 -65.5% 122,339 160 520 -76.2 UNDER EXPENDITURES 29 851 COMMENTS: REVENUES: Charges for Services YTD 2011 activity consists of the proceeds from the sale of the Elgin street sweeper; $42,000. Sales Stormwater fees reflect an increase due to the budgeted 8.3% increase in the fee schedule. YTD fees are tracking with the budget. EXPENDITURES: Supplies, Repairs, Maint. YTD 2011 activity includes sand bagging costs related to flood prevention efforts; $21,242. Consulting The majority of the YTD 2012 expense is related to the south central drainage study performed by SEH; $15,751. Debt Service All debt service payments have been made for the year, including principal payments of $120,000 and interest payments of $45,340. An adjustment will be made at year end to accrue a portion of 2012 interest expense that will be paid in 2013. We also paid interest on the Challenger street sweeper in the amount of $6,875. Depreciation Depreciation is calculated and booked at year-end. Capital Outlay The 2011 activity represents the first year's lease payment on the Challenger street sweeper, which was reclassed at 12f3112011 to apply the principal payment to Contracts Payable account on the balance sheet and the interest payment to Interest Expense. The 2012 lease payment was made in February and coded directly to the balance sheet; $26,910 and Interest Expense; $6,875. `a(C) (Department: 1HAT5 Fund: IHATS 2012 zolz 2011 2011 zolz Month of 2012 September Approved Budget % Used September Approved Category September YTD Budget Balance yTD Budget REVENUES: 38,221 114,739 131,150 16,412 87.5% 131,350 131,350 4100 Inter ovemmenlat 36,303 338,080 480,000 141,920 70.4% 420,158 380,000 4250 Char es for Services 220 1,000 780 22.0% 506 1,000 4620 Investment Earnin s 1,397 2,000 603 710 2,000 4700 Reimbursements 941 89,650 89,650 - 10x0% 43,525 87,050 4800 Transfers 44,825 120,269 544 085 703 800 159,715 77.3% 596,249 601,400 TOTAL REVENUES EXPENDITURES: 5,364 52,906 55,375 1469 95.5% 52,467 51,290 6105 Salaries & Fn n is Benefits 59,489 348,118 492,900 144,782 70.6% 444,384 393,900 6200 Su lies, Re airs, Maint. 1,455 1,455 0.0% - 1,625 6300 Consullin 23,140 97,918 154,000 56,082 63. 93,7 152,58 6306 Services &Cha es 879 70 809 1255.00 % 6900 Misc. Ex nses _ 0.0% 2,000 7000 Ca ital Outla - 87 994 499,820 703,800 203 980 71.0% 590 639 601 400 TOTAL EXPENDITURES TOTAL REVENUE OVER 286 44 265 44 265 5 611 - rriunER1EXPENDITURES 32 - - % Used COMMENTS: REVENUES: Intergovernmental This income category consists of the funding from State and County. The State is paying monthly and the County is paying semi - annually in May and October. The remaining budget balance of $16,412 will be reduced to -0- at year -end as the State pays monthly. Charges for Services This income category consists of the fuel sales to various governmental entities and is tracking slightly below budget YTD. The decrease from 2011 is due in part to Trailblazer Transit no longer using our fuel system. Transfers This income category consists of the funding from the City. EXPENDITURES: Supplies, Repairs, Maint. budget YTDQ he decrease consists from 2011 s due in part to for use TailblazerT a st no entities fuelsys em.ing slightly hlly Services & Charges This expense category consists mainly of Liabithy Insurance, Utilities and Contract Repair & Maintenance. Utility Expense is trending below budget due to the mild winter. CITY OF HUTCHINS ON In vestment Report Forth e Month En ded Septemb er 30, 2012 Edward aeries F C8 14" rest CurTeat Deft of Pam of Par Cu rrent Puroase U nrealized Pre"um Next Inadhition Descripflon Rate YWd ftrchase Maturity Value VaILO Amount Gainf _ CA Dato SMOP Bame Mone Mark-at G,CW% Mone Market 0.010% $13p399,323.$1 100.0% 1011.ov/. 1,-655,035.88 1,855 035 1.855.035.88 - NIA Smilh Barne CD's 3-300% 3-230% W1 =09 Mlor.2013 100.W0.00 101 028.W 100,000.00 1,928.00 NIA Smith Barne CD's 3.300% 3.230% 0 '1 =C(* 0611 0r9013 100,000-130 101928-00 100!000, 00 1,928.00 WA Smith Barne cua 3. 400% 3-380% WIMC09 0611 Dr2013 100, 000.80 101997.00 100,000. 00 1 WAS Smith Bame C Era 0-55a% 0-540% 07)31 MI 2 Oti :- -;013 248.000 DO 248017.36 248, 001.00 17-36 WA Smith Barr C Dos 0,55D% 0.450% 07t3112C 1 2 081 7)12013 248,000.00 247.809.04 248,000-00 QM112012 WA Smith Barnay CDP$ 0.600% 01:590% QW1 312C 1 Oar 12014 249,000.00 249:L`b 7.23 249.000 01) 57.23 N/A Smith Barney Ws 0.800% 0.801% 0W12/2C12 121'1512014 249.000.00 248,4W51 249,00100 �530.49 N/ Smith, Barm c1l)"s 0,950% 0.940% 02/031N12 02=1.201 248,000.00 248,788-64 248,003-00 7-x.64 NIA Srnflh Bamey CM 1.053% 1.040% 0210312012 0210912015 248,".D0 248.788-64 248,01)).00 7".64 MIA Smith Barne CD's 0-90% 0.340% CVOU2012 021 1012015 248.000.00 248.786,16 248.000.00 786.16 NIA Smith Barne Wt. 1.100% 1 100% 0 &0 M012 08 15 115.000-00 114,763.10 115,000.00 ( 236-90 ) WA smiti Barney CD's 0. a w/6 0 aw% 0611612012 0611 51M 15 249,000-00 248,4S4.69 249.000.00 (545,31) WA Smile Barne CD ®s 1. 05 GOA 1.050% 0611312012 0611 _IVX 18 248.000,DO 247,459.36 248,00000 ( 640.64 ) N/A Smit-i Barne cops 1.100% 1.100% 07t3112012 OEV1 CV2015 248,000.00 247 248, 000.00 (783-68) NIA SmFh Barne CDs 0.800% 0,800% 107131 X01 2 0&1712016 249 248.248-02 249.000-00 J 751.98) NIA Smith Barne CD's 1.250% 1.250% (171:3112012 0&09M16 145,000.00 144,33445 145.0W 00 (665.55) NIA Brom Sam ay CD' � 1,75A 11750% 071311 ' 7 00,' 0312017 130, . go 129,91-5-60 13 0°1. 00 ( 83.20 ) NIA -Smith Barne CD's 1-750% 1-7509 07131120'2 ^9. 031201 7 247.000-00 246,955-:54. 24/ :���.00 44,46 a NIA SrDker'rotall 41.3% 5,524,035-88 5,527,993.74 5:524,03S. 88 3.957.W Edward aeries F C8 4.875% 4130% 051131201 1 0111712017 431.000.00 508.5 9, 493.022.83 15,557-17 62,022-83 NIA Mone Market S2.433.773-45 13.2% S2l9W,707-21 22.3% broker To 5 3,672.957.86 27.4% 3,669.475-97 27.4% 3,481.89 3.0% 4$1; X 508.560.00 4931022-83 1607-17 52,022.83 1,046,.07010 7.8% 1.047.900.00 7.8% Wells Far Mone Market 0.010% $13p399,323.$1 100.0% 1011.ov/. $16,722-37 5+ y ears 5, 7'37,942.50 42-8% 9,556.67 9,556.67 9.55667 - - WA Wells Far PHLB - Step 1,250% 1-250114 0312IJ2012 M, f .QD22 Government Bonds 8% INVESTMENT WAS CALLED 912112012.: $525,000 X6,000,000. 00 ... Wel Is Far FHLB - Step 1, 000% 0.990% 05M212012 051242M 2� Y-10 COD. 00 390,031.20 39D,000-00 31-20 1112412012 Wel Is Far FHLB - Step 2.000% 1-990% 0512312012 DW $7,73,747 A, INVESTMFJVT WAS CALLED 9121,12012; S1,000,00-0 M $244.334 W�lla Far FHLB . step I-000% O, W% 0 01 M2'�2DK 8�6.0 u.clo 875.105.00 875,000-00 106-00 12121W12 Wel Is Far FHLB - Step 1.010% I-com QM112012 0 S/ 1 512 02 2-1, 1,000,000.00 1.000,D80.00 1:000.000-00 $0 Co. 1111 U2012 Wel Is Far FHLB - Step 1.500% 1.500% CM712012 09.1' 2!7D22 500,000 00 500,565 QQ 5W.000-01) 565.00 12/1212012 WeI13 Far FHLB - Step 1.000% 0.990% 09104J2012 09V2112022 1.070,000.00 1,070,128.40 1 128.40 121`21/2012 Wel 13 Far FHLB - Slep 1.000% 1.000% 0,911812012 09/2&2D22 950,000.00 950 .00 950.000-00 1212M01 2 Wel I•} Far FHLB - Step 1.500% 1.490% 09118=12 1 GKW2D22 950 PDR 00 95Z,LD33'00 950.00000 2.03HO 0110,412013 Eroker Total 42.9% 5,744,556.67 5,747,499-27 5,744.556 67 2.942.60 U88 F inarrall m0fle Market 0. 130% 569,180.90 569,180.90 50,180-90 NIA UBS FinarwAall Taxable Muni 5.300% 5.050% 11 , 241201 0 01101 X20 500,0W.00 524,5}.00 :541.020 00 ( 16.340.00 ) 41.020= MIA UBS Fir ml FNNA - NTS 1.500% 1.500% 0942112011 0W2112-)16 INVESTMENT WAS CALLED 9t2112012; 5500, +' LISS Fin zmiial Taxable Muni 2�40$% 2.310% 0411712012 0110112.)17 500.000.00 521,390-0.0 524, 500.00 (3,110.00 24,500.00 MIA Biroker Total 12.1% 1,569.18010 1,615,250.,90 1,634.700.90 ( 19,450= ) 65.520.00 TOTAL INIVESTMENTS 10041 11-268,773AS S 13,3",323.01 $ 13,396 316.28 $ 3,� 5 127, 2-83 PORTFOLIO BY PRODUCT TYPE I MATU R ITY SCH EDUL E 91=2012 U/B of $13142012 % of Monthl Maturi Current Valm % Pr duenT Total Vialut Total Total Valise TOW ch-ari Lez5 than I y ear $3,235,452-85 24_ 1 - 2 �*a-s 773,747.23 5-8% Mone Market S2.433.773-45 13.2% S2l9W,707-21 22.3% 1,$556,933-76) 5 3,672.957.86 27.4% 3,669.475-97 27.4% 3,481.89 2 - 3 y ms 2.101,W4.44 15-79k GOVeMMent BORCIS 6.246,522,60 46.6% 5,67:5.518.36 4:12. 4 571.004-24 3 - 4 t sars 144,334.45 1 1% Municipal gondE 1,046,.07010 7.8% 1.047.900.00 7.8% 1, 830 2 4 - 5 d ears 1 x,842, 34 1D,5% TOTAL $13p399,323.$1 100.0% 1011.ov/. $16,722-37 5+ y ears 5, 7'37,942.50 42-8% TOTAL $13,399 100.0% $ 7,000,000.00 M u ni cip a[ Bonds Government Bonds 8% X6,000,000. 00 ... Mone Marx x CD's I $7,73,747 A, M $244.334 so,cw) - Less than 1 year 1-2 2 - � y ears 3 - 4 y ears 4 - 5 wears 5+ Y"rs Resource Allocation October 2, 2012 4:00 PM Committee Hutchinson City Center Attendees: Steve Cook, Jeremy Carter, Kent Exner (Committee Members) Dolf Moon, John Olson, Miles Seppelt, John Paulson (Contributing Pa rticipants) Meeting Minutes Solar PV Project — review proposed Letter of Intent and future considerations John P. reviewed Ameresco's draft Letter of Intent to form a formal relationship with the City in order to purse a grant opportunity for a potential solar energy generation project. At this point, City staff has provided feedback regarding this document to Ameresco, and we await their response /approach. 2. Watershed District — review approach to engage policymakers, citizens and stakeholders - John P. and Kent E. provided and reviewed a copy of the summary of the City Council workshop meeting that was held a couple of months ago to address the potential formation of a watershed district within the South Fork of the Crow River's drainage basin. RAC members agreed that City staff should meet with interested citizens/organizations to potentially develop a grass -roots approach to further pursuing this initiative. Also, everyone agreed that the development of a local lake association may be a reasonable and beneficial step in the ultimate pursuit of establishing a formal watershed district. 3. South Central Drainage Area Study — review draft document information and recommendations - John O. and Kent E. provided a review of the draft South Central Drainage Area Study document. This analysis finds that there could be localized drainage improvements achieved around the Rec. Center area and within South Grade Road (including adjacent neighborhoods/streets) if the study's recommendations are implemented. At this point, City staff will begin to examine this information to determine how these potential improvements could be constructed in a phased manner. Also, RAC members had a discussion regarding the possibility of a new aquatic center north of the Rec. Center, and it was determined that none of the identified drainage improvements would be adversely impacted by the construction of that project. 4. MCRA Depot Site — review approach to the potential site redevelopment and use - Miles S. gave a status update on the potential redevelopment of the McLeod County Rail Authority depot site. It was noted that the environmental analysis/recommendations would require a significant existing soils remediation effort. However, the scope /cost of this necessary work has been dramatically reduced due to recent considerations by the MPCA, and that the City's remediation costs could be significantly further reduced by a possible DEED grant. City staff will continue to examine the proposed redevelopment to firmly establish the scope/cost of a potential project and determine if a phased construction approach is desirable. 5. Other Discussion - RAC members discussed the potential of the HUC's annual transfer to the City being increased $250,000 to address City infrastructure needs. In the new future, City Public Works staff will be reviewing the recently prepared Infrastructure Maintenance Needs document to determine the most urgent/timely issues that could be addressed with this new funding source. aC�) MINUTES HUTCHINSON AREA JOINT PLANNING BOARD Wednesday, August 15, 2012 Hutchinson City Council Chambers CALL TO ORDER 5:30 P.M. The meeting was called to order by Chairman Jim Lauer at 5:30 p.m. with the following members present: Tom Wirt, Lynn Splittgerber, Garrett Luthens, Bill Arndt and Chairman Lauer. Absent: Sheldon Nies Also present: Dan Jochum, City Planning Director, Marc Sebora, City Attorney, Marc Telecky, McLeod County Assistant Zoning Administrator and Bonnie Baumetz, Planning Coordinator 2. APPROVAL OF MINUTES a) Consideration of Minutes dated July 18, 2012. Mr. Wirt made a motion to approve the minutes of July 18, 2012. Seconded by Mr. Arndt, the motion carried unanimously. 3. PUBLIC HEARINGS a) CONSIDERATION OF A CONDITIONAL USE PERMIT TO ALLOW A CHURCH USE IN AN EXISTING BUILDING IN THE 1 -1 (LIGHT INDUSTRIAL DISTRICT) AT 16457 HWY 7 EAST Chairman Lauer opened the hearing at 5:31 p.m. with the reading of publication #7947 published in the Hutchinson Leader on Sunday, August 5, 2012. Mr. Telecky explained Mr. Schaffer is requesting a conditional use permit for a church to use part of the building on Lot 2, Block 1, AMS Subdivision, the old drive -in theater site. This property is zoned 1 -1 (Light Industrial). He reported the Joint Planning Ordinance, Section 7, Subd. 4, Part 8 states "Any conditionally permitted use in the Fringe Commercial District (C4) ". Churches are a conditionally permitted use in the C4 district. In an analysis of the request, Mr. Telecky explained that the area is used for commercial /light industrial activity. The church use would require additional parking requirements (1 space for every 3 seats) as well as handicap accessibility upgrades (minimum or 2 direct exterior exits). He stated staff has concerns with this request due to potential future conflicts between uses and staff would like it to be known that they feel industrial use areas are generally not the best area for churches. Barry Schaffer, applicant, commented on the concerns of staff and the present land usage. He explained the church has tried to find a permanent home with no success. Church representatives are aware of the surrounding area and uses. He commented on the possibility of too much noise and that the businesses there today do not create much noise. He stated the church will be leasing a portion of the building. Mr. Lauer asked about the water and septic capacity. Mr. Schaffer stated the septic and water was built for 5 businesses. Mr. Telecky commented on potential water use. Discussion followed on the need to remodel the building for the church use. Craig Tromberg, Elder of the church, reported there will be light use of the building during the week and the church usage will not conflict with the present businesses. There may be occasional funerals and weddings besides the normal Sunday worship. There was discussion on the attendance and long range plans and growth plan and if the building can handle the number of people from now and for the next 5 years. Discussion followed on the church working with the other businesses regarding smells and dust possibilities. Mr. Schaffer commented that they understand the present uses and, so far, his business has not had a I -�Lf) Minutes Joint Planning Board —August 15, 2012 Page 2 problem with the other uses in the district. Mr. Luthens stated he has concerns with possible complaints from the church. Mr. Arndt moved to close the hearing. Seconded by Mr. Splittgerber, the hearing closed at 5:46 p.m. Mr. Telecky commented on the difficulty of rural business in the same area. He explained a conditional use permit cannot restrict the number of days of use but it can condition the seats available to the number of members. He commented on the water and septic use protection. Mr. Jochum commented on the Board recognizing the fact there are agricultural uses with agricultural smells, dust and noise. The Board could state in the conditions that they recognize this is a rural area with agricultural uses with smells, dust and noise. Mr. Telecky commented on the I -1 permitted uses. He noted we can't control future conflict uses but can limit the number of persons in the building at any time. Atty. Sebora reminded the Board they must have reasonable conditions you can enforce not the conflict of other businesses. The conditions have to be able to be defined and enforced. Mr. Wirt made a motion to approve the request. Seconded by Splittgerber, the motion carried unanimously. Discussion followed on the number of church members and possible attendance. There was also discussion regarding the township road and maintenance from additional traffic. Atty. Sebora reminded the Board that they should be considering number of church members or attendees. Discussion followed on parking numbers available. The church should prepare a number count and look into the future possibility of number of attendees. There is difficulty in monitoring the number of people at the church functions. Discussion followed on the future growth of the congregation. One condition could be adding marked parking. Mr. Telecky stated staff will designate parking. Mr. Jochum suggested the church should send a letter to the County or City to indicate membership numbers annually. Mr. Wirt commented on possible conditions he stated it is hard to put a condition on this request. Mr. Telecky suggested adding a condition that there be no further increase in size or capacity of the building for the church use. Mr. Arndt made a motion to amend the motion and add the condition "There be no further increase in size or capacity of the building for the church use." Seconded by Mr. Wirt to also include to provide for marked parking. Mr. Arndt explained the gravel parking is difficult to stripe. Mr. Telecky stated the total area is looked at when calculating parking needs. Mr. Wirt moved to withdraw the motion for marked parking. Mr. Arndt called for the motion with the amendment there be no further increase in size or capacity of the building for the church use and grant the conditional use permit with the condition. Seconded by Mr. Wirt, the motion passed 3 ayes, 2 nays. Mr. Telecky stated this item would be forwarded to the County Board and placed on their regular agenda, September 4, 2012, at 10:00 a.m. 4. NEW BUSINESS None 5. OLD BUSINESS None 6. COMMUNICATION FROM STAFF a) Mr. Telecky commented on the need to request from the County Board to amend the Joint Planning Area Zoning Ordinance and add an interim use section. He explained the need for an interim use section. Atty. Sebora explained permitting of a conditional use permit. p -K) Minutes Joint Planning Board — August 15, 2012 Page 3 7. ADJOURNMENT There being no further business a motion by Mr. Arndt, seconded by Mr. Wirt, the meeting adjourned at 6:20 p.m. MINUTES HUTCHINSON PLANNING COMMISSION Tuesday, August 21, 2012 Hutchinson City Council Chambers CALL TO ORDER 5:30 P.M. The meeting was called to order by Chairman John Lofdahl at 5:30 p.m. with the following members present: Raymond Norton, Christie Hantge, Bill Arndt, Dean Kirchoff, Dave Johnston and Chairman Lofdahl. Absent: Jim Fahey Also present: Dan Jochum, Planning Director, Kent Exner, City Engineer, Marc Sebora, City Attorney and Bonnie Baumetz, Planning Coordinator 2. PLEDGE OF ALLEGIANCE 3. CONSENT AGENDA a) Consideration of Minutes dated June 19, 2012 Mr. Arndt moved to approve the consent agenda as submitted. Seconded by Mr. Kirchoff. The consent agenda was approved unanimously 4. PUBLIC HEARINGS a) CONDITIONAL USE PERMIT TO ALLOW A TATTOO ESTABLISHMENT IN THE C -3 (CENTRAL COMMERCIAL) DISTRICT AT 15 WASHINGTON AVENUE EAST Chairman Lofdahl opened the hearing at 5:31 p.m. with the reading of publication #7949 as published in the Hutchinson Leader on August 8, 2012. Mr. Jochum reminded the Commissioners the zoning ordinance was amended on July 10, 2012, to allow tattoo establishments by conditional use permit in the C -3 District. Mr. Jochum explained Mr. Moulton is now requesting a conditional use permit to allow a tattoo establishment in the C -3 (Central Commercial) district located at 15 Washington Avenue E. which was an existing vacant building owned by Scott Rech, Stix and Brix Inc. of Litchfield, MN. Mr. Moulton is presently operating a body jewelry and piercing business at this location. He states that they intend to provide tattoo and piercing services in accordance with state and local laws. The proposed business hours will be Monday — Sunday from 10:00 am to 7:00 pm. He reported staff finds that the request would meet the requirements of granting a conditional use permit (Section 154.063) and recommends approval subject to the findings and conditions listed in the draft Resolution, including these specific conditions: 1. The proposal would meet the standards for granting a conditional use permit, subject to the conditions stated. 2. The business must remain in accordance with MN State Statues and meet all health standards for tattooing, piercing, body art, or similar services per the State of Minnesota and /or City of Hutchinson regulations. 3. The applicant must provide the City with yearly documentation of State licensure. 4. The applicant must apply for a City of Hutchinson license to operate a tattoo establishment within the City. 5. Any signage for the business will require a sign permit. 6. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use requires approval of a new conditional use permit. Minutes Planning Commission — August 21, 2012 Page 2 Roger Stearns, 720 Park Island Drive S.W. questioned the need for a conditional use permit in the C -3 District. Mr. Jochum explained the process for this business. Discussion followed on recommendation #3 regarding other businesses in the C -3 district such as beauty shops, etc., not being required to provide documentation of State licensure to the City. Atty. Sebora commented on the City Council discussions regarding the tattoo business. He reported the Council was concerned with State licensure compliance and the need to provide the license information to the City yearly for a tattoo business. Mr. Kirchoff made a motion to close the hearing. Seconded by Ms. Hantge, the hearing closed at 5:37 p.m. Mr. Norton made a motion to recommend approval of the request with staff recommendations. Seconded by Mr. Kirchoff, the motion carried 5 ayes to 1 nay. Chairman Lofdahl stated this item will be placed on the City Council regular agenda at their meeting held August 28, 2012 in the Council Chambers at 5:30 p.m. b) CONDITIONAL USE PERMIT TO ALLOW A DOG DAYCARE BUSINESS IN THE C-4 (FRINGE COMMERCIAL) DISTRICT AT 405 CALIFORNIA STREET N.W. Chairman Lofdahl opened the hearing at 5:38 p.m. with the reading of publication #7949 as published in the Hutchinson Leader on August 8, 2012. Mr. Jochum explained the applicant, Adult Training and Habilitation, is requesting a conditional use permit to allow dog daycare services in the C-4 (Fringe Commercial) district at 405 California Street N.W. The building at 405 California St. S.W. is owned by Dr. John Froning and previously had been a veterinary clinic. The business plan states that ATHC would like to start- up a dog daycare that would be open during the weekdays from 7 am — 6 pm. They are proposing an indoor dog run /play area as well as a fenced outdoor run /play area. The proposed placement for an outdoor run would be on the east side of the building and run the entire length of the building. The fence would run east across the property line between 405 California St. S.W. and 427 California St. NW (owned by ATHC). He reminded the Commissioners the zoning ordinance was amended on July 10, 2012, to allow dog daycare businesses by conditional use permit in the C -4 District. He reported staff finds that the request would meet the requirements of granting a conditional use permit (Section 154.064) and recommends approval subject to the findings and conditions listed in the draft Resolution, including these specific conditions: 1. The proposal would meet the standards for granting a conditional use permit, subject to the conditions stated. 2. If the proposed dog daycare use fails to start business within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. 3. If the proposed dog daycare use ceases for more than one year, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. 4. ATHC must provide a letter to the City that states the fence going over the property line is acceptable. 5. In the event the dog daycare use changes or either property is sold and the new owner does not want to continue the dog daycare use, the fence must be removed. 6. Pet waste must be cleaned up at least twice per day. 7. Pets are not allowed to be boarded on holidays, weekends, or overnight. 8. The maximum amount of dogs allowed is no more than 12 at any one time. Minutes Planning Commission — August 21, 2012 Page 3 There were questions on recommendation #5 regarding the removal of the fence. Mr. Jochum explained the fence is over the property line and if either property is sold for another use there is potential for a problem with the fence. Discussion followed on the 12 dog limit. There was discussion on the need for recommendation #7 since it was a veterinary clinic which did have dogs overnight. Mr. Jochum stated that a dog daycare is not as intense as a boarding or kennel usage. There was an application for a dog daycare in the C -3 (Central Commercial) District downtown which staff denied because of the lack of space for a dog run. Mr. Arndt made a motion to close the hearing. Seconded by Mr. Johnston, the hearing closed at 5:47 p.m. Mr. Arndt made a motion to recommend approval of the request with staff recommendations amending #5 adding: Any new owners will have an agreement the fence could remain over the property line. Seconded by Mr. Johnston, the motion carried unanimously. Chairman Lofdahl stated this item will be placed on the City Council consent agenda at their meeting held August 28, 2012, in the Council Chambers at 5:30 p.m. c) CONDITIONAL USE PERMIT TO ALLOW A LICENSED NURSING HOME TO PROVIDE FOR RESIDENTS WITH DEBILITATING DISEASES LOCATED IN THE R -2 (MEDIUM DENSITY RESIDENTIAL) DISTRICT AT 710 PARK ISLAND DR. SW. (FORMERLY BIRCHWOOD HOSPICE) Chairman Lofdahl opened the hearing at 5:49 p.m. with the reading of publication #7949 as published in the Hutchinson Leader on August 8, 2012. Mr. Jochum commented on the request for a conditional use permit to provide specialized care and support for up to 10 residents suffering from debilitating diseases such as Parkinson's and other movement disorders located in the R -2 (Medium Density Residential) district. Approval of a conditional use permit (CUP) is required in order to allow a licensed nursing home to provide for residents with debilitating diseases located in the R -2 District. He explained the house was originally a hospice home from 2006 — 2011 and has been vacant since July, 2011. There discussion on the limiting the number of full time employees that would be serving this house. Mr. Jochum explained the reason for limiting the number of employees was to allow enough parking for visitors. Discussion followed on limiting expansion for the use. There was a question of ownership. Judy Figge, representing Prairie River Home Care explained they are purchasing the building from ConnectCare. The will partner with a Twin Cities Healthcare facility that works with Parkinson's patients. She reported this type of home is a real need in the rural areas. She stated there is not a large turnover of population. The house will be staffed with a licensed nurse in the daytime and 24 hour home health aides. She explained there will be some support group meetings once a quarter for families of patients. Ms. Figge explained there are other patients that may live there with Muscular Dystrophy, Multiple Sclerosis, ALS and other similar disabilities. Parkinson's is the largest need for this type of facility. There are 11 parking stalls. This use is less intense than the prior use with an office. There was discussion on staffing and shift changes. Ms. Figge stated they have an office in Hutchinson and will not need this building for the office site as was the case with ConnectCare . There will be nurses, PT and OT coming into the facility to work with the patients. The ratio of staff for 10 patients would be 1 to 2 on the night shift which depends on the number of patients. Nursing staff could come in from the office. She explained 5 staff is ample. Discussion followed on the adequate parking. There was a question regarding shuttle service. Ms. Figge reported there will be a vehicle to take residents to appointments. Roger Stearns, neighboring property owner, stated he gave the land to ConnectCare and he knows the prospective owners and they are successful business people who care. He is comfortable with the owners. Mr. Stearns reported he would believe there will not be as much staff traffic in and out of the facility. iac� Minutes Planning Commission — August 21, 2012 Page 4 Tim Jeske, 620 Park Island Drive, questioned the .35 space per bed parking ordinance. He is concerned with visitors parking on Park Island Drive. He questioned the support traffic and safety. Mr. Jeske asked if the City would consider speed bumps on the street to slow down traffic. He reported, in the past, visitors and staff parked on the street and he is concerned with speed and traffic in the area. Mr. Jochum commented on the parking for visitors and the ordinance recommendations. He explained there could be parking on the street as there is from time to time in residential neighborhoods. He reported that this is a different volume of use from the hospice uses. Mr. Arndt commented on the previous discussion at the time of the conditional use permit with the hospice house having an office use creating more traffic. He stated this is the best use for the house. There was a question on a planned name for the facility. Ms. Figge stated the name will be kept Birchwood House since the Birch family was so instrumental in seeing the residence was constructed. She commented on the traffic in a residential area and explained this use can't compare with the previous hospice use and office. She explained that occasionally there will be support group meetings. This is the best use of the building. Ms. Figge again stated they will not move their office to this facility. Discussion followed on the shift lengths. It was noted this use is more specialized than the nursing home or assisted living and patients will stay until the end of life. She commented on the six houses in the Twin Cities for Parkinson's. There will be visits to the facility in Hutchinson to meet the standards. They would like to have an Open House in the Fall and Spring. Mr. Exner commented on the difficulty to change the speed limit which is only for schools. He stated speed bumps are not advised. He suggested the neighbors work with Prairie River Home Care should there are any issues to be resolved. Jason Schmitz, 610 Park Island Dr. SW, commented on the daycare in the neighborhood and traffic especially with the delivery drivers. Mr. Jochum commented on other areas in the community with the same traffic issues. Mr. Schmitz reported he welcomes the home and, as a neighborhood will keep open communication with the home. Mr. Exner stated traffic issues can also be handled with enforcement. Mr. Jochum reported staff finds that the request would meet the requirements of granting a conditional use permit (Section 154.057) and recommends approval subject to the findings and conditions listed in the draft Resolution, including these specific conditions: 1. The proposal would meet the standards for granting a conditional use permit, subject to the conditions stated. 2. If the proposed nursing home use fails to start business within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. 3. If the proposed nursing home use ceases to exist for more than one year, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. 4. In the event the use ceases to exist, the house cannot be used as a multiple family dwelling. The use must be kept a type of care facility. 5. A new conditional use permit will be needed if the type of care facility or use of the property were to change in the future. 6. No large meeting (beyond 10 persons) relating to personnel shall be held at the home. (This shall exclude items such as open houses, regular use of the home for care purposes, etc.) 7. A maximum of 5 FTE's is allowed to work at the location at any one time. This standard would ensure that any expansion of the organization would not occur at the property. 8. Retail sales or leasing of goods from the facility is not permitted. Minutes Planning Commission — August 21, 2012 Page 5 9. No office space for Prairie River Home Care or any other business is permitted. Office space incidental to the on -site operation of the facility is allowed. 10. Parking requirements for nursing home is .35 per bed. There appears to be sufficient parking on the premises. 11. Any remodeling necessary at the facility (main floor or basement) will need a building permit and need to meet all State of Minnesota requirements for this type of facility. 12. Directional street signage changes at McDonald Dr] School Rd. and Park Island Dr. will be at the property owner's expense, should the property owner want signage for the facility. Mr. Arndt made a motion to close the hearing. Seconded by Ms. Hantge, the hearing closed at 6:24 p.m. Mr. Kirchoff made a motion to recommend approval of the request with staff recommendations. Seconded by Ms. Hantge, the motion carried unanimously. Chairman Lofdahl stated this item will be placed on the City Council consent agenda at their meeting held August 28, 2012 in the Council Chambers at 5:30 p.m. d) PRELIMINARY AND FINAL 3 LOT PLAT AND VACATION OF EASEMENTS A REPLAT OF MONTREAL PLACE TO BE KNOWN AS MONTREAL PLACE SECOND ADDITION AND SITE PLAN REVIEW OF A DOLLAR TREE DEVELOPMENT IN MONTREAL PLACE SECOND ADDITION Chairman Lofdahl opened the hearing at 6:25 p.m. with the reading of publication #7949 as published in the Hutchinson Leader on August 8, 2012. Mr. Jochum commented on the request by Jacob Wert, Carlton Holdings I, LLC, for a three lot re -plat of Montreal Place, to be known as Montreal Place Second Addition located south of Kwik Trip. The re -plat will include vacating the existing easements and platting new easements on the three lots. The proposed use for lot one of the new plat is a Dollar Tree retail store. A one stop shop was held on July 16` with the developers of the proposed Dollar Tree Store. Staff has reviewed the preliminary and final plat, vacation of easements and site plan and recommends approval of the request with the following recommendations: 1. The applicant shall record the final plat prior to issuance of any building permits for the project. 2. The proposed building and site improvements would comply with the standards of the C -2 district and the Zoning Ordinance. 3. A certified property survey showing the building elevations is required at the time of building permit. 4. SAC and WAC fees will be calculated upon building plan submittal and due at the time of building permit issuance. 5. All signage shall meet the requirements of the C -2 district. Sign permits are required prior to installation of the signage. 6. Exterior lighting must be shielded and shall not cause glare to adjacent properties. Mr. Jochum stated this is a straight forward plat and staff had no concerns. He reported that the site plan would have a north and a south entrance off Montreal Street S.E. There will be a cargo door for delivery in the back of the building. The front would face Hwy 15. He explained the site plan meets the ordinance and the landscaping requirements by staff have been met. There is a shared access point and staff agrees with limiting the amount of accesses. He commented on the on -site parking requirements. Mr. Exner stated he agrees with limiting of access points as brought forward by the applicant. He explained that shared access compromises the setback requirements but, in doing so, 12,L�) Minutes Planning Commission — August 21, 2012 Page 6 meets the green space and landscape requirements. He explained that ponding is accounted for with the large pond on the north side of Edmonton which can accommodate future development. Mr. Norton made a motion to close the hearing. Seconded by Mr. Kirchoff, the hearing closed at 6:33 p.m. Ms. Hantge made a motion to recommend approval of the request with staff recommendations. Seconded by Mr. Kirchoff, the motion carried unanimously. Chairman Lofdahl stated this item will be placed on the City Council consent agenda at their meeting held August 28, 2012 in the Council Chambers at 5:30 p.m. e) PRELIMINARY AND FINAL ONE LOT PLAT AND VACATION OF EASEMENTS TO BE KNOWN AS STONEY POINT RIVERVIEW LOCATED AT 1209 LEWIS AVENUE S.W. Chairman Lofdahl opened the hearing at 6:34 p.m. with the reading of publication #7949 as published in the Hutchinson Leader on August 8, 2012. Commissioner Hantge excused herself to the audience. Mr. Jochum explained the plat will combine three residential lots into one large lot along the South Fork of the Crow River. It was noted the plat will clean up the lot. Easements will also be vacated in the plat and new easements will be platted. The existing house encroaches over a lot line and the plat will clean up the lot lines on the property. The plat will also bring the property into conformance with shoreland issues. He reported the house meets City requirements. Staff has reviewed the preliminary and final plat and vacation of easements and recommends approval of the request with the following recommendations: 1. The applicant shall record the final plat prior to issuance of any future building permits. 2. Any future modifications to the site shall comply with shoreland district requirements. 3. Any future construction on the property must comply with Zoning Ordinance requirements. Christie Hantge, 1210 Lewis Ave. S.W. asked what the plans are for the property. Jim Pauly, representative for Reiter and Schiller, P.A., explained there are plans to market the property. Ms. Hantge asked if they would sell the property as is or complete the house. Mr. Jochum reported that his understanding is to market the property as is. He explained the house meets the zoning and legal requirements. Ms. Hantge stated the concerns by the neighborhood are that the house will not be completed. Mr. Jochum explained the property will be compliant after the plat is approved. He reported the building height, impervious coverage and exterior will be in compliance. Mr. Arndt made a motion to close the hearing. Seconded by Mr. Johnston, the hearing closed at 6:43 p.m. Mr. Arndt made a motion to recommend approval of the request with staff recommendations. Seconded by Mr. Norton, the motion carried unanimously. Chairman Lofdahl stated this item will be placed on the City Council consent agenda at their meeting held August 28, 2012, in the Council Chambers at 5:30 p.m. 5. NEW BUSINESS a) LOT SPLIT AT 1485 SOUTH GRADE RD Mr. Jochum explained the property owner is requesting a lot split to split the 2.77 acre former building site from the 10.00 acre farmland. He stated the proposed lot split would meet the 1 alp�) Minutes Planning Commission — August 21, 2012 Page 7 requirements of the Zoning Ordinance, recommended findings and conditions: therefore staff recommends approval with the following 1. The proposed lot split would meet the standards of the R -1 zoning district. 2. There will be only one access point from South Grade Road to two lots. 3. City water and sewer will be utilized on the site. 4. The lot split must be recorded at McLeod County Recorder's Office within one year of approval by the City. Mr. Jochum has spoken to the property owner and Mr. Wilson, prospective property owner. He explained the access drive will remain as from the previous home by easement. The property will utilize the Bridgewater development drainage and utility easement to get services to the property. Water service will come from Bridgewater Estates. The City will administer the installation of water service agreement with Mr. Wilson to convey the operation to the property owner. Gas and electric will come from South Grade Rd. He explained the location of the present service from the east and west. Mr. Arndt made a motion to recommend approval of the request with staff recommendations. Seconded by Mr. Johnston, the motion carried unanimously. Chairman Lofdahl stated this item will be placed on the City Council consent agenda at their meeting held August 28, 2012 in the Council Chambers at 5:30 p.m. 6. OLD BUSINESS COMMUNICATION FROM STAFF Mr. Jochum gave a Comprehensive Plan update to let the Commissioners know there will be Downtown Plan public meeting from 6 -8 p.m. on September 2e at the Public Arts Center. 8. ADJOURNMENT There being no further business the meeting adjourned at 6:56 p.m. RA Hutchinson Housing & Redevelopment Authority Regular Board Meeting Tuesday, September 18, 2012, 7:00 AM Minutes 1. GALL TO ORDER: Chairman Becky Felling called the meeting to order. Members Present: Rill Arndt, LOUAnn Holmquist, LaVonne Hansen and Joel Kraft. Staff Present: Jean Ward and Judy Flemming. Z. CONSIDERA'I'[ON OF MINUTES OF THE REGULAR BOARD MEETING ON AUGUST 21,201 LaVonne I Jansen moved to approve the Minutes of the regular board meeting as written. LouAnn I lohnquist seconded and the motion carried unanimously. 3. FINANCIAL REPORTS a. LouAnn Holmquist moved to approve the City Center General Fund payments of $13,717.81 for checks 8143 to 81$6 and consideration of August 2012 City Center Financial Statements. Bill Arndt seconded and the motion carried unanimously. b. Joel Kratt moved to approve the Park Towers payments of $32,523.14 for checks 12098 to 12127 and consideration of Park "Powers July 31, 2012 Financial Statements. LouAnn Holmquist seconded and the motion carried unanimously. PARK TOWERS UPDATE. a. Occupancy Update — Currently there is one vacancy. b. Jean Ward reviewed with the Board the Risk Control Policy Statement which is the first step to receive a Risk Control Dividend, LaVonne Hansen moved to approve Resolution #2012 -13 Adopting Risk Control Policy Statement. Bill Arndt seconded and the motion carried unanimously. c. 'File Board discussed the letter from Nahro and PHADA requesting Housing Authorities to join in litigation vs. federal goverrumcnt for breach of contract for the 2012 operating reserve offset. After consulting with the City Attorney, Board members decided that it may not be in our best interest to join in the litigation. Chairman Becky Felling suggested that at least a letter should be sent to HUD. Joel Kraft moved to send a letter to HUD. LouAnn Holmquist seconded and the motion carried unanimously. d. Joel Kraft moved to approve Resolution #2012 -14 setting the Passbook Savings Rate Effective 9/18/2012. LouAnn seconded and the motion carried unanimously. s. 734 SOU'I - HVIEW DRIVE UPDATE Judy Flemming updated the Board on the bids from the material suppliers and the sub - contractors. CONSIDERATION OI' EXECUTION OF LEAD HAZARD GRANT AGREEMENT WITH MINNESOTA DEPARTMENT OF HEALTH FOR I1P TO $5915 IN Ft INDING FOR SF.i.F('TFT) SCDP IDENFFIFI ED PROJECT Rill Arndt moved to approve the execution of the Lead Hazard Grant Agreement with MDI I for up to $5,915 in funding for selected SCDP identified project. Joel Kraft seconded and the motion carried unanimously. 7. FYI FORECLOSURE REPORT S. RI:VIEW OF DEMOLITION CHECKLIST September 19, 2012 M inutes r3tGe 1 of Jean Ward review with the Board the proposed demolition checklist. The Board asked Jean to research if there are any funding programs nvnilable for the demolition of homes. 9. PUBLIC I IEARINO 7:30 A.h1. OF PHA ANNUAL PLAN, CAPITAL FUND PROGRAM AND 3013 PLAT RENT a. Joel Kraft moved to approve the Civil Rights Certification and Board Resolution 42012 -15 for 2013 Annual Plan. Bill Arndt seconded and the motion carried unanimously. b. Bill Arndt moved to approve the 3013 Capital Fund Program Annual Statement. LouAnn Iolmquist seconded and the motion carried unanimously. c. Joel Kraft moved to approve the Capital Fund Program Five Year Annual Plan. LouAnn Holmquist seconded and the motion carried unanimously. d. Bill Arndt moved to approve the 2013 Flat Rent Proposal. LaVonne Hansen seconded and the motion carried unanimously. IQ DISCUSSION OF UNDERWRITING REQUIREMENTS FOR PROPOSED HRA REHAB LOAN PROGRAM .lean Ward reviewed with the Board the proposed FIRA Rehab Loan Program. Funding for this proposed program would use the project funds from the tax levy - $40,000 for four loans. The Board decided that they would like to see lower income limits for this program. Staff will come back next month with the revisions. 1 1. CONSIDERATION Of SEl'TING A MEETING DATE WPrH MCLEOD COUNTY HRA Chairman Becky Felling and Jean met with Jim Mills from the County I -IRA. The Board is willing to meet with the County I IRA and the Comity Commissions to talk about the I lutchinson I IRA programs. 12. CORRESPONDENCE Jean showed the pictures oft lie Smoke Free signs at Park 'rowers from a McLeod County grant. 13. ADJOURNMI NT Bill Arndt moved to adjourn and LaVonne Hansen seconded. 'there being no other business, Chairman Becky Felling declared the meeting adjourned. Recorded by .lean Ward, HRA EXeCUtive Director LaVonne Hansen, Secretary /Treasurer SepDamher I3.2D1' minlllC6 Pave2,d'2 ����