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cp09-10-2013AGENDA REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, SEPTEMBER 10, 2013 1. CALL TO ORDER — 5:30 P.M. 2. INVOCATION — Christ the King Lutheran 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 AUGUST 27, 2013 Action — Motion to reject — Motion to approve 5 min. 7. CONSENT AGENDA (Purpose: only for items requiring Council approval by external entities that would otherwise have been delegated to the City Administrator. Traditionally, items are not discussed.) (a) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 14182 - RESOLUTION TO SELL PROPERTY AT AUCTION 2. RESOLUTION NO. 14186 — RESOLUTION OF SUPPORT FOR THE TRAILS LEGACY GRANT APPLICATION DAKOTA RAIL TRAIL 3. ORDINANCE NO. 13 -715 - AN ORDINANCE APPROVING REVISIONS TO SECTIONS 5.02 AND 13.03 OF HUTCHINSON CITY CHARTER AS RECOMMENDED BY THE CHARTER COMMISSION (SECOND READING AND ADOPTION) 4. ORDINANCE NO. 13 -0716 — AN ORDINANCE ADOPTING SECTION 30.16 — EXPENDITURES BY PETITIONERS (SECOND READING AND ADOPTION) 5. ORDINANCE NO. 13 -0717 — AN ORDINANCE AMENDING SECTION 112.121 — CONSUMPTION & DISPLAY — RESTRICTIONS AND REGULATIONS (SECOND READING AND ADOPTION) (b) REAPPOINTMENT OF JULI NEUBARTH TO AIRPORT COMMISSION TO SEPTEMBER 2018 (c) APPOINTMENT OF STEVE JENSEN TO HRA BOARD TO AUGUST 2018 (d) CONSIDERATION FOR APPROVAL OF CHANGE ORDER NO. 2 — LETTING NO. 10, PROJECT NO. 13 -10 (2013 CITY PARKING LOT IMPROVEMENTS) (e) CONSIDERATION FOR APPROVAL OF ISSUING TEMPORARY CONSUMPTION & DISPLAY CITY COUNCIL AGENDA SEPTEMBER 10, 2013 PERMIT TO HUTCHINSON CENTER FOR THE ARTS ON OCTOBER 3, 2013 (f) CONSIDERATION FOR APPROVAL OF SUBORDINATION AGREEMENT FOR DASSEL MEDICAL CLINIC (g) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — CHECK REGISTER A (h) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — CHECK REGISTER B (i) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — CHECK REGISTER C Action — Motion to reject — Motion to approve 8. PUBLIC HEARINGS — 6:00 P.M. - NONE 9. COMMUNICATIONS. REQUESTS AND PETITIONS (Purpose: to provide Council with information necessary to craft wise policy. Always looking toward the future, not monitoring past) 10. UNFINISHED BUSINESS 11. NEW BUSINESS 5 min. (a) CONSIDERATION FOR APPROVAL OF SETTING HUTCHINSON REDEVELOPMENT AUTHORITY 2014 PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 14183) Action — Motion to reject — Motion to approve 5 min. (b) CONSIDERATION FOR APPROVAL OF SETTING HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY 2014 PRELIMINARY TAX LEVY (ADOPT RESOLUTION NO. 14184) Action — Motion to reject — Motion to approve 20 min. (c) CONSIDERATION FOR APPROVAL OF SETTING CITY OF HUTCHINSON 2014 GENERAL FUND AND DEBT SERVICE FUND PRELIMINARY TAX LEVIES (ADOPT RESOLUTION NO. 14185) Action — Motion to reject — Motion to approve 5 min. (d) CONSIDERATION FOR APPROVAL OF SETTING TRUTH IN TAXATION HEARING DATE Action — Motion to reject — Motion to approve 5 min. (e) CONSIDERATION FOR APPROVAL OF ADOPTING RESOLUTION NO. 14187 RESOLUTION REDEFINING THE ANNUAL CONTRIBUTION FROM THE HUTCHINSON UTILITIES COMMISSION TO THE CITY OF HUTCHINSON Action — Motion to reject — Motion to approve 10 min. (f) CONSIDERATION OF ORDINANCE NO. 13 -718 - AN ORDINANCE AMENDING SECTION 111.02 PERTAINING TO LICENSING OF TRANSIENT MERCHANTS, 2 CITY COUNCIL AGENDA SEPTEMBER 10, 2013 SOLICITORS, PEDDLERS (FIRST READING, SET SECOND READING AND ADOPTION) Action — Motion to reject — Motion to approve 5 min. (g) CONSIDERATION FOR APPROVAL OF RE- SETTING CITY COUNCIL MEETING SET FOR DECEMBER 24, 2013 Action — Motion to reject — Motion to approve 12. GOVERNANCE (Purpose: to assess past organizational performance, develop policy thatguides the organization and Council and manage the logistics of the Council. May include monitoring reports, policy development and governance process items. (a) FIRE DEPARTMENT MONTHLY REPORT FOR AUGUST 2013 (b) HUTCHINSON UTILITIES COMMISSION MINUTES FROM JULY 31, 2013 (c) HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM JULY 22, 2013 (d) SUMMARY OF PIONEERLAND LIBRARY SYSTEM GOALS (e) ECONOMIC DEVELOPMENT AUTHORITY BOARD MINUTES FROM JULY 24, 2013 13. MISCELLANEOUS 14. ADJOURN 3 MINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 27, 2013 1. CALL TO ORDER — 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Bill Arndt, Mary Christensen, Chad Czmowski and Gary Forcier. Others present were Jeremy Carter, City Administrator, Kent Exner, City Engineer and Marc Sebora, City Attorney. 2. INVOCATION — Due to the absence of a pastor, the invocation was dispensed. 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS. DONATIONS AND COMMUNITY SERVICE TO THE CITY Mayor Cook acknowledged an email he received from Randy Starke, Fairgrounds Manager, thanking all of the city departments for their partnership and workmanship between the County and the City for the multitude of events that occur at the Fairgrounds. 5. PUBLIC COMMENTS 6. MINUTES (a) REGULAR MEETING OF AUGUST 13, 2013 Motion by Arndt, second by Christensen, to approve the minutes as presented. Motion carried unanimously. 7. CONSENT AGENDA (Purpose: only for items requiring Council approval by external entities that would otherwise have been delegated to the City Administrator. Traditionally, items are not discussed.) (a) RESOLUTIONS AND ORDINANCES RESOLUTION NO. 14181 - RESOLUTION ACCEPTING DONATION FROM HUTCHINSON CHAMBER OF COMMERCE (b) PLANNING COMMISSION ITEMS CONSIDERATION OF REZONING PROPERTY AT 1025 DALE STREET SW FROM R1 TO R4 TO ALLOW FOR DEVELOPMENT OF A 30 -UNIT MEMORY CARE FACILITY WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (SECOND READING AND ADOPTION) 2. CONSIDERATION OF CONDITIONAL USE PERMIT AND SITE PLAN FOR DEVELOPMENT OF A 30 -UNIT MEMORY CARE FACILITY LOCATED AT 1025 DALE STREET WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 14176) (c) CONSIDERATION FOR APPROVAL OF APPOINTING MARK GIRARD TO THE HUTCHINSON UTILITIES COMMISSION TO DECEMBER 2016 (UNEXPIRED TERM OF CITY COUNCIL MINUTES— AUGUST 27, 2013 LEON JOHNSON) (d) CONSIDERATION FOR APPROVAL OF CHANGE ORDER NO. 1 — LETTING NO. 10, PROJECT NO. 13 -10 (2013 CITY PARKING LOT IMPROVEMENTS) (e) CONSIDERATION FOR APPROVAL OF AIRPORT WORK ORDER 2 — OBSTRUCTION REMOVAL (f) CONSIDERATION FOR APPROVAL OF ANNUAL POLY BAG FILM PURCHASE FOR BAGGING OPERATIONS AT CREEKSIDE (g) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — CHECK REGISTER A (h) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — CHECK REGISTER B (i) CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS — CHECK REGISTER C Items 7(b)2, 7(h) and 7(i) were pulled for separate action. Motion by Forcier, second by Arndt, to approve consent agenda with the exception of the items noted above. Motion carried unanimously. Item 7(b)2 had further discussion. Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained to the Council that the Planning Commission had approved the conditional use permit and site plan for the memory care facility at its August 6, 2013, meeting. Mr. Jochum noted that some neighbors had raised concerns regarding screening around the proposed facility. A revised landscape plan had been submitted by the applicant to allow for additional screening which would include trees along the driveway and portions of the western property line. Staff is suggesting that trees run all along the western side. Dan Jochum noted that 20 units in the facility would be for memory care and 10 units for high intensity care suites. Mr. Jochum is suggesting adding a condition on the CUP that these types of units will be in the facility and that the facility will be licensed as a Class F facility through the State when it opens and then will transition to a comprehensive license as the state changes its licensing terminology in the future. Matthew Tauer, Bear Paws properties, presented before the Council. Mr. Tauer explained that there is a proposed fenced in area that will be 20x20 and used by residents and will include a walking circular path. A door is included on the north side of the fence. Roman Bloemke, facility manager, presented before the Council. Mr. Bloemke explained that a high intensity care is care in between assisted living and a nursing home. Patients in high intensity care suites typically have higher level MS or Parkinsons or mobility issues. These high intensity care suites will also be utilized for short-term recovery stays as well. Mayor Cook noted that there were concerns over drainage issues. Mr. Jochum noted that there are protections listed in the conditions on the conditional use permit. If this development is affecting drainage issues for the worse, it will be the developer's responsibility to correct any issues. Traffic concerns were raised at the last meeting. The police department conducted a study using Harmony 2 CITY COUNCIL MINUTES— AUGUST 27, 2013 River which has a higher volume of residents. Harmony River averages one emergency call per month. The volumes at the proposed facility are much lower so the calls should be minimal. With the traffic at the church and preschool already present, there should be very little increased traffic with the proposed facility. Jim Pease, 1065 Dale Street, presented before the Council. Mr. Pease noted he has some concerns with the proposed tree line to be used for screening. Mr. Pease would prefer a privacy fence or a tighter shrub line fence to block site lines. Council Member Czmowski suggested to Mr. Pease that he could put up a fence on his property should he wish for more privacy. Mr. Jochum noted that the applicant is required to plant 26 trees on the property which is more than the standard amount required typically. Mr. Jochum noted that staff could require a certain type of tree be planted, such as evergreens which provide screening all year round. Motion by Czmowski, second by Cook, to approve Item 7(b)2 with the additional condition as noted previously by Mr. Jochum regarding the types of units and licensing. Motion carried unanimously. Item 7(h) had further discussion. Council Member Forcier noted he will be abstaining. Motion by Arndt, second by Christensen, with Forcier abstaining, to approve Item 7(h). Motion carried unanimously. Item 7(i) had further discussion. Council Member Czmowski noted he will be abstaining. Motion by Arndt, second by Forcier, with Czmowski abstaining, to approve Item 7(i). Motion carried unanimously. 8. PUBLIC HEARINGS — 6:00 P.M. (a) UPDATE ON OWNER OCCUPIED REHAB SMALL CITIES DEVELOPMENT PROGRAM GRANT CDAP -11- 0023- 0 -FY12 Jean Ward, HRA Executive Director, presented before the Council. Ms. Ward provided an overview of the progress on the grant received from the State of Minnesota for the northeast and southwest neighborhoods in Hutchinson. Ms. Ward noted that two homes have been completed and three homes are in process of construction. Four applicants have been approved to begin construction and two other applicants are in the application process. The average total rehabilitation costs are more than in the past mainly due to deferred maintenance and radon mitigation issues. Ms. Ward explained that $74,000 had been retained from previous projects and the State requires that that be spent down, which will allow for one more home to be rehabilitated than planned. After September 1, the HRA will begin accepting applications city -wide for the small cities development program. All interested home owners should call the HRA or visit the HRA web site. Motion by Arndt, second by Christensen, to close public hearing. Motion carried unanimously. Council Member Arndt noted that the property that was built on the 400 Lynn Road lot pumps a lot of water out of its basement and the previous home did not have this type of issue. He asked the 3 CITY COUNCIL MINUTESAUGUST27, 2013 public works department to look into the matter to see if a pipe had been blocked during demolition. John Olson, Public Works Manager, will follow up with the current home owner. 9. COMMUNICATIONS. REQUESTS AND PETITIONS (Purpose: to provide Council with information necessary to craft wise policy. Always looking toward the future, not monitoring past) (a) UPDATE BY COALITION OF GREATER MINNESOTA CITIES ON LEGISLATIVE SESSION — AMANDA DUERR Amanda Duerr, Coalition of Greater Minnesota Cities, presented before the Council. Ms. Duerr provided an update on the past year's legislative activities of the CGMC and future tasks the CGMC will be taking on. Issues addressed in 2013 include a new local government aid formula, progress in economic development, transportation funding, annexation and advocacy in energy and environment. (b) UPDATE FROM FACILITIES COMMITTEE Dan Jochum, Facilities Committee, presented before the Council. Mr. Jochum provided an overview of the projects scheduled and completed in 2013 and those scheduled over the next few years all in a priority ranking. Mr. Jochum detailed the improvements needed to the Parks garage which was the worst - ranked facility in the City. Improvements will include cleaning, painting and priming the structural steel frames, among other things. Other projects include renovation to the historic bandshell in Library Square, fire department improvements, park system roofs, Rec Center air handler, and City Center carpet replacement. Projects under $100,000 are obtained by quote and projects over $100,000 follow the formal bid process. Discussion was held regarding energy conservation on the project prioritization criteria ranking. 10. UNFINISHED BUSINESS (a) CONSIDERATION FOR APPROVAL OF AIRPORT HANGAR LEASE Jeremy Carter, City Administrator, presented before the Council. Mr. Carter noted that this item was tabled at the last meeting to allow time for staff to review the lease in more detail. Mr. Carter noted a few revisions that were made to the agreement from the last meeting. The revisions include the term of the agreement, use of the leased property, insurance policy requirements and an improvements exception for the City. John Olson, Public Works Manager, presented before the Council. Mr. Olson noted that the leaseholder, ASI Jet Ag Division, has two full time employees and four part time employees who perform aircraft maintenance at the airport. This activity has included them purchasing a vast amount of fuel from the airport and a large business increase in their agriculture spraying operations. Motion by Arndt, second by Forcier, to approve airport hangar lease with ASL Motion carried unanimously. (b) CONSIDERATION OF ORDINANCE NO. 13 -715 - AN ORDINANCE APPROVING REVISIONS TO SECTIONS 5.02 AND 13.03 OF HUTCHINSON CITY CHARTER AS RECOMMENDED BY THE CHARTER COMMISSION (FIRST READING, SET SECOND READING) CITY COUNCIL MINUTESAUGUST27, 2013 Marc Sebora, City Attorney, presented before the Council. Mr. Sebora noted that this topic is a continuation from the last Council meeting due to not having all Council Members present. Mr. Sebora reminded the Council that the Charter Commission had met earlier this year and has recommended a couple of revisions to the Charter. These include changing the petition requirements from 20% to those who voted for mayor in the last preceding election to 10% of total votes cast in the last regular election. The other revision is to require that the City cover city officials with a bond rather than requiring the City officials to give a corporate bond. Mayor Cook noted that some discussion was held at the last meeting of possibly requiring a higher petition requirement for recalls. This would need to be considered by the Charter Commission. Motion by Forcier, second by Czmowski, to approve Ordinance 13 -715, setting second reading and adoption for September 10, 2013. Motion carried unanimously. 11. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF 2013 ANNUAL RECOGNITION EVENT Jeremy Carter, City Administrator, presented before the Council. Mr. Carter noted that each Fall the City holds a recognition event for those volunteers who serve on various City boards and commissions. Mr. Carter offered out a few dates to choose from for the event for the Council to consider. A meal and short program has been part of the event in the past. Motion by Christensen, second by Forcier, to set annual recognition event for September 26, 2013, at 5:30 p.m. as public meeting. Motion carried unanimously. Council Member Czmowski noted that he will be out of town on September 26, 2013, and asked that the date be reconsidered. Motion by Czmowski, second by Forcier, to set annual recognition event for September 19, 2013, at 5:30 p.m. as a public meeting. Motion carried unanimously. (b) CONSIDERATION OF ORDINANCE NO. 13 -0716 — AN ORDINANCE ADOPTING SECTION 30.16 — EXPENDITURES BY PETITIONERS (FIRST READING, SET SECOND READING) Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that this ordinance is an outgrowth from the discussion held at the previous Council meeting. Several cities place restrictions on petition circulators prohibiting payment of any kind in connection to circulating petitions. This ordinance contains similar language used by other cities. Motion by Christensen, second by Forcier, to approve Ordinance 13 -716, setting second reading and adoption for September 10, 2013. Motion carried unanimously. (c) CONSIDERATION OF ORDINANCE NO. 13 -0717 — AN ORDINANCE AMENDING SECTION 112.121 — CONSUMPTION & DISPLAY — RESTRICTIONS AND REGULATIONS (FIRST READING, SET SECOND READING) Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that a potential 5 CITY COUNCIL MINUTESAUGUST27, 2013 business has approached the City about possibly opening a business on Main Street that would like to have liquor as part of its business plan. As part of this business venture, and potential others, staff is proposing to amend its consumption and display ordinance. The current ordinance does not allow for an establishment to hold a consumption and display permit if it did not have a liquor license or consumption & display permit prior to 1985. The amended ordinance removes this requirement and adds language from state statute listing out the establishments that would be eligible for such a license. Motion by Czmowski, second by Christensen, to approve Ordinance 13 -717, setting second reading and adoption for September 10, 2013. Mayor Cook commented that this ordinance change will allow for expansion in certain business establishments. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF SETTING COUNCIL WORKSHOP FOR SEPTEMBER 24, 2013, AT 4:00 P.M. TO DISCUSS SWIMMING POOL PROJECT Jeremy Carter, City Administrator, noted that last March the Council held a workshop to discuss various concepts for a new pool. As part of the workshop, staff was directed to study different concepts and costs associated. A second workshop is proposed to review cost estimates and various amenities. Motion by Arndt, second by Forcier, to set Council workshop for September 24, 2013, at 4:00 p.m. to discuss swimming pool project. Motion carried unanimously. 12. GOVERNANCE (Purpose: to assess past organizational performance, develop policy thatguides the organization and Council and manage the logistics of the Council. May include monitoring reports, policy development and governance process items. (a) RESOURCE ALLOCATION COMMITTEE MEETING MINUTES FROM AUGUST 6, 2013 (b) CITY OF HUTCHINSON FINANCIAL REPORTS AND INVESTMENT REPORT FOR JULY 2013 (c) PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES FROM JULY 1, 2013 (d) TREE BOARD MEETING MINUTES FROM JULY 29, 2013 (e) PLANNING, ZONING, BUILDING DEPARTMENT MONTHLY REPORT FOR JULY 2013 (f) HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM AUGUST 12, 2012, AND JULY 16, 2013 13. MISCELLANEOUS Mary Christensen — Council Member Christensen asked for an update on the Depot site. Kent Exner, City Engineer, provided an update on the recent activities and timeline of completion. The Depot has been placed on the site and sod, rain garden and pond has been put in place. The structure for the Farmers Market is to be installed by the end of September. Bill Arndt — Council Member Arndt noted the South Grade Road project is taking quite some time. Kent Exner noted that due to the excessive heat, things have been delayed and it may take another 0 CITY COUNCIL MINUTESAUGUST27, 2013 month for the project to be completed. Jeremy Carter — Mr. Carter reminded the Council that the preliminary levy will be set at the next Council meeting. In addition, meetings will be held next week with employees who are eligible for retirement to review a retirement incentive program. Kent Exner - Mr. Exner noted that the Jefferson Street project is moving along well, however the streets on the north end most likely will not be paved by the Arts & Crafts festival. The mill and overlay projects in the Grove Street area are complete and turned out very well. The parking lot improvements are also complete and turned out very well. Steve Cook — Mayor Cook thanked the County Board on their $10,000 contribution to the origin and destination study. Mayor Cook suggested holding a town hall meeting in the future with youth with both middle schoolers and high schoolers on City amenities, such as the pool, the Rec Center and other activities. 14. ADJOURN Motion by Arndt, second by Christensen, to adjourn at 7:45 p.m. Motion carried unanimously. 7 HUTCHINSON CITY COUNCIL cttyofAa� Request for Board Action Agenda Item: Resolution to Sell City Property Department: Police LICENSE SECTION Meeting Date: 9/10/2013 Application Complete N/A Contact: Daniel T. Hatten Agenda Item Type: Presenter: Daniel T. Hatten Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 2 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OFAGENDA ITEM: RESOLUTION TO SELL AT AUCTION A 2008 Ford Crown Victoria Police Interceptor — VIN# 2FAFP71 V78X174885. Vehicle to be sold at State Auction in Arden Hills. BOARD ACTION REQUESTED: The Hutchinson Police Department recommends approval of resolution to sell at auction Fiscal Impact: $ 0.00 Funding Source: 0 FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: 0 Remaining Cost: $ 0.00 Funding Source: 0 RESOLUTION NO. 14186 A RESOLUTION OF SUPPORT FOR THE TRAILS LEGACY GRANT APPLICATION DAKOTA RAIL TRAIL WHEREAS, the City of Hutchinson recognizes Dakota Rail Trail as an important regional trail asset and desires an extension of the Dakota Rail; and, WHEREAS, the Hutchinson City Council hereby supports the McLeod County Trails Association in the submission of a grant application made to the Minnesota Department of Natural Resources for the Parks and Trails Legacy Grant Program. The application is to construct a two (2) mile paved trail extension of the Dakota Rail Trail in McLeod County; and, WHEREAS, the City Council believes trails should facilitate access and connections for as many users as possible and the current end of the paved trail in a field at the Carver County/ McLeod County line limits access and connections for users from both the east and the west; and, WHEREAS, a connection to County Highway 1 in McLeod County would provide a connection for Dakota users to the City of Lester Prairie and a safe connection to the Luce Line trail in Winsted and visa versa, and in the process provide additional recreation, wellness and economic opportunities for more people, THEREFORE, BE IT RESOLVED, that the City of Hutchinson supports McLeod County's grant application to the Minnesota Department of Natural Resources for the Parks and Trail Legacy Grant Program for the construction of Two (2) miles of paved trail for the Dakota Rail Trail from the Carver/McLeod county line, through the City of Lester Prairie, and terminating at County Highway 1 on the western municipal boundary of Lester Prairie. ADOPTED BY THE HUTCHINSON CITY COUNCIL l OT" DAY OF SEPTEMBER, 2013 STEVEN W. COOK, MAYOR ATTEST: JEREMY J. CARTER, CITY ADMINISTRATOR 14ly sAd 15L RESOLUTION TO SELL AT AUCTION SURPLUS POLICE DEPARTMENT PROPERTY Resolution No. 14182 WHEREAS, the Hutchinson Police Department has accumulated surplus property. AND WHEREAS, the Hutchinson City Code provides pursuant to Section 91, Subdivision 3, Paragraph C for the sale at auction of surplus property. AND WHEREAS, the police department has determined that it is in possession of surplus property. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA. That the Hutchinson City Council hereby approves the sale at auction a 2008 Ford Crown Victoria Police Interceptor — VIN# 2FAFP71 V78X174885. Vehicle to be sold at State Auction in Arden Hills. Adopted by the City Council this 10th day of September, 2013 Mayor City Administrator HUTCHINSON CITY COUNCIL ci =y�fAa� Request for Board Action 7AL Z-vz Agenda Item: Resolution 14186 Supporting McLeod County's Dakota Trail Grant Application Department: Administration LICENSE SECTION Meeting Date: 9/10/2013 Application Complete N/A Contact: Jeremy Carter Agenda Item Type: Presenter: Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: No BACKGROUND /EXPLANATION OFAGENDA ITEM: McLeod County has submitted twice in the past a grant application to the DNR to replace a bridge and pave a section of trail that starts at the Carver County line and goes 2 miles west to County Road 1. The City Council supported this County initiative back in 2011 by passing a similar resolution. If the grant is awarded, the County would start work the summer of 2014. This latest grant application request will be the third attempt at securing Legacy Grant funds. The cost of the project is around $450,000 and uses the Dakota Railroad line that goes through the middle of Lester Prairie. The City of Lester Prairie also has approved a resolution in support of the County grant application. Please consider approving the enclosed resolution in support of the County's initiative to once again secure Legacy Grant dollars. Any questions on this topic please contact me. Thanks BOARD ACTION REQUESTED: Approve Resolution 14186 supporting McLeod County's Legacy Grant Application to the DNR for the Dakota Rail Trail. Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14186 A RESOLUTION OF SUPPORT FOR THE TRAILS LEGACY GRANT APPLICATION DAKOTA RAIL TRAIL WHEREAS, the City of Hutchinson recognizes Dakota Rail Trail as an important regional trail asset and desires an extension of the Dakota Rail; and, WHEREAS, the Hutchinson City Council hereby supports the McLeod County Trails Association in the submission of a grant application made to the Minnesota Department of Natural Resources for the Parks and Trails Legacy Grant Program. The application is to construct a two (2) mile paved trail extension of the Dakota Rail Trail in McLeod County. THEREFORE, BE IT RESOLVED, that the City of Hutchinson supports McLeod County's grant application to the Minnesota Department of Natural Resources for the Parks and Trail Legacy Grant Program for the construction of Two (2) miles of paved trail for the Dakota Rail Trail from the Carver /McLeod county line, through the City of Lester Prairie, and terminating at County Highway 1 on the western municipal boundary of Lester Prairie. ADOPTED BY THE HUTCHINSON CITY COUNCIL 10TH DAY OF SEPTEMBER, 2013 STEVEN W. COOK, MAYOR ATTEST: JEREMY J. CARTER, CITY ADMINISTRATOR HUTCHINSON CITY COUNCIL Ci =q�f�� Request for Board Action 7AL Agenda Item: Consideration of Charter Commission Amendments Department: Administration LICENSE SECTION Meeting Date: 9/10/2013 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: No BACKGROUND /EXPLANATION OFAGENDA ITEM: The City Council reviewed and discussed this item at the last City Council meeting. State law requires that these amendments be approved by all Council Members. First, with regard to Section 5.02 — Petitions. The current City Charter requires that in order for an initiative, referendum or recall to be initiated, a petition signed by registered voters of the City equal in number to 20 percent of those who voted for mayor in the last preceding city election must be obtained. Upon research and discussion of the Charter Commission, the Commission unanimously voted to amend the petition requirement to be 10 percent of those who voted in the last City election. The Commission expressed that this amount coincides with other similar size communities' requirements. The Commission also expressed that 20 percent is a much higher percentage than other petition requirements. Therefore, the Charter Commission hereby recommends that Section 5.02 of the Hutchinson City Charter be amended to require signatures in the amount of 10% of total votes of the last regular City election be required for initiatives, referendums or recalls. Section 5.02 is being recommended to be amended as shown on the attachment. Second, with regard to Section 13.03 — Official Bonds. Current City Charter requires that the mayor, city administrator and other officers or employees of the city give a corporate surety bond to the City. The bond may be either individual or blanket. The Charter Commission learned from the City Attorney that the City has blanket bond coverage through its insurance trust and therefore does not require the mayor, city administrator or other employees or officers to provide a corporate surety bond. The Charter Commission discussed that the Charter should be amended to reflect current practice of the City. Therefore, the Charter Commission unanimously voted to amend language in Section 13.03 as shown on the attachment. BOARD ACTION REQUESTED: Accept recommendations of Charter Commission for City Charter amendments and adopt Ordinance No. 13 -0715. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Ordinance No. 13 -715 Publication No. AN ORDINANCE ADOPTING REVISIONS TO SECTIONS 5.02 AND 13.03 OF HUTCHINSON CITY CHARTER The City Council hereby ordains: WHEREAS, the Hutchinson Charter Commission met on April 15, 2013, and June 24, 2013, to review sections of the City Charter for updating or amending; and, WHEREAS, the Hutchinson Charter Commission voted unanimously for revisions to be made to Section 5.02 to decrease the petition requirement from 20% of those who voted for mayor in the last preceding city election to 10% of total votes cast in the last regular city election; and, WHEREAS, the Hutchinson Charter Commission voted unanimously for revisions to be made to Section 13.03 clarifying language that certain officers of the City be covered by a surety bond from the City; and, WHEREAS, Minnesota Statute 410.12, Subd. 7, allows Charter changes to be made by ordinance, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, THAT Sections 5.02 and 13.03 of the Hutchinson City Charter as attached hereto are hereby revised and these changes to the City Charter will take effect 90 days from adoption of this ordinance. Adopted by the City Council this 10`h day of September, 2013. Attest: Jeremy J. Carter, City Administrator Steven W. Cook, Mayor Section 5.02. PETITIONS. An initiative, referendum or recall, shall be initiated by a petition signed by registered voters of the City equal in number to 2-0 10 percent of these who voted r^r merye total votes cast in the last pfeeediiig regular city election. Each petition shall be sponsored by a committee of five registered voters whose names and addresses shall appear on the petition. A petition may consist of one or more papers, but each paper circulated separately shall contain at its head or attached to it the statement required by Sections 5.06, 5.07 or 5.08, as the case may be. The signature and street address of each signer shall appear on the petition. Each separate page of the petition shall have appended to it a certificate, verified by oath, that each signature is the genuine signature of the person whose name it purports to be. The person making the certificate shall be a resident of the City. Any person whose name appears on a petition may withdraw such name by a statement in writing filed with the city administrator before the city administrator advises the council of the sufficiency of the petition. Section 13.03. OFFICIAL BONDS. The mayor, city administrator, and such other officers or employees of the city as may be specified by ordinance shall each, before entering upon the duties of their respective offices or employment, be covered by a surety bond to from the City in such form and amount as may be fixed by the council. Such bonds may be either individual or blanket bonds in the discretion of the council. They shall be approved by the city council, and approved as to form by the city attorney, and filed with the city administrator. The provisions of state laws relating to official bonds not inconsistent with this charter shall be complied with. The premiums on such bonds shall be paid by the city. HUTCHINSON CITY COUNCIL ci =y�fAa� Request for Board Action 7AL =-vz Agenda Item: An ordinance pertaining to the payment of charter change petitioners Department: Legal LICENSE SECTION Meeting Date: 9/10/2013 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OFAGENDA ITEM: The first reading of this ordinance was held at the August 27, 2013, City Council meeting. The central idea behind this proposed ordinance is that charter or ordinance changes by way of an initiative or referendum or a recall of a public official should be the result of grass -roots efforts by concerned citizens of Hutchinson who are attempting to enact an ordinance change through a genuine concern for the legislative change - not for monetary profit. BOARD ACTION REQUESTED: Approve the ordinance and its adoption. Fiscal Impact: $ 0.00 Funding Source: N/A FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Ordinance No. 13 -716 Publication No. AN ORDINANCE ADOPTING SECTIONS 30.16 — EXPENDITURES BY PETITIONERS The City Council hereby ordains: 30.16 EXPENDITURES BY PETITIONERS. No member of any initiative, referendum, or recall committee, no person circulating a paper for signatures, and no signer of any such paper, or any other person, can accept or offer any pecuniary or other reward for service rendered in connection with the circulation. This does not prevent the committee from paying for legal services and from incurring necessary expenses, including, but not limited to, stationery, copying, printing, advertising, and notary fees. A violation of this section is a misdemeanor. Adopted by the City Council this 10th day of September, 2013. ATTEST: Steven W. Cook, Mayor Jeremy J. Carter, City Administrator HUTCHINSON CITY COUNCIL ci =y�fAa� Request for Board Action 7AL Z-vz Agenda Item: An ordinance amending the City's consumption and display ordinance Department: Administration /Legal LICENSE SECTION Meeting Date: 9/10/2013 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OFAGENDA ITEM: This ordinance had its first review at the August 27, 2013, City Council meeting. Under the City's current consumption and display ordinance, a person is only entitled to a consumption and display (set -up) permit if they had a consumption display permit or some other liquor license prior to January 1, 1985 - so new businesses are not eligible for a consumption and display permit as the ordinance currently stands. The owner of a proposed new business would like the consumption and display ordinance changed to eliminate the date restriction so that the business would be eligible for a consumption and display permit and therefore wine would be allowed to be consumed on the premises. If the ordinance is changed, the business owner will be applying for a 3.2% malt liquor license which would then let the business be eligible for the consumption and display (set — up) permit. The proposed ordinance eliminates the date restriction for consumption and display permits and lists those establishments that are eligible as currently listed under state law. BOARD ACTION REQUESTED: Approve second reading and adoption of the ordinance. Fiscal Impact: $ 0.00 Funding Source: N/A FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Ordinance No. 13 -717 Publication No. AN ORDINANCE AMENDING HUTCHINSON CITY CODE SECTION 112.121 - CONSUMPTION AND DISPLAY - RESTRICTIONS AND REGULATIONS § 112.121 RESTRICTIONS AND REGULATIONS. (A) Eligible licensees. If the appliea-at is ot;iefwise- eligible, i^°„s°s may be isstle ' have thereafter- been eentifmotisly keensed for- the eenswnption a-ad displa�, of ifit& i I i - li"or-, or- v�4o have legally dispeased aleeholie beverages tinder- some other- keense, stifw-e jafvaafy 1, . Consumption and display permits may be issued only to: (1) an applicant who has not, within five .prior to the application, been convicted of a felony or of violating M provision of this chapter or rule adopted under this chapter, (2) a restaurant, 3 a hotel, (4) an establishment licensed for the sale of 3.2 percent malt liquor, a resort as defined in section Minnesota Statute 157.15: (6) a club as defined in section Minnesota Statute 340A.101, subdivision 7, or an unincorporated club otherwise meeting that definition, and (7) a bed and breakfast facility as defined in section Minnesota Statute 340A.4011, subdivisinn 1 (b) A consumption and display permit may not be issued to a club holding an on -sale intoxicating liquor license. If the license issued under this section is cancelled, suspended or revoked or allowed to lapse, for whatever reason, no renewal or reissuance of the annual license under this section will be permitted. (B) Application. Application for a license under this section shall be made at least ten days in advance of the effective date for the license, and the application shall be referred to the Chief of Police, who will make an investigation to determine whether issuance of the license would cause a nuisance to any adjoining property owners, or if the license should be denied for any other reason. (C) Unlawful act. It is unlawful to sell liquor on licensed premises. (D) License expiration. In order to coordinate the expiration of a consumption and display license with a state permit, all licenses shall expire on Rme 30 March 31 of each year. (E) State permit required. Licenses shall be issued only to holders of a consumption and display permit from the Commissioner. (F) Lockers. A club to which a license is issued under this section may allow members to bring and keep a personal supply of liquor in lockers on the club's premises. All bottles kept on the premises must have attached labels signed by the member. No minor may keep a supply of liquor on club premises. (G) Hours and days. No licensee may permit a person to consume or display liquor, and no person may consume or display liquor, between 1:00 a.m. and 10:00 a.m. on Sundays, or between 1:00 a.m. and 8:00 a.m. on Monday through Saturday. ('89 Code, § 5.70) (Am. Ord. 97 -213, passed 11- 25 -97) Penalty, see § 10.99 Adopted by the City Council this 10th day of September, 2013. Steven W. Cook, Mayor ATTEST: Jeremy J. Carter, City Administrator Dear Council Members, I would like to appoint Steve Jensen to the HRA Board to fill to position created by the completion of Becky Felling's second term. Steve is a fifteen year resident of Hutchinson and is the Environmental Health & Safety Manager for 3M Hutchinson. Steve has previously served as a board member, Vice - president and President of the Hutchinson Health Care Foundation. Steve has also been a participant in the Chamber's Leadership Institute, has served on the figure skating association board and worked on numerous committees and projects in leadership positions at work. I have spoken to Jean Ward and she thinks Steve would be a good addition to the board. I would appreciate your approval. Thank you, Mayor Steve Cook HUTCHINSON CITY COUNCIL ci =y�fAa� Request for Board Action 7AL Z-vz Agenda Item: Consideration for Approval of Project Change Orders Department: PW /Eng LICENSE SECTION Meeting Date: 9/10/2013 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OFAGENDA ITEM: As construction has proceeded on the below listed projects there has been additional work, project scope revisions, and /or construction completion date changes. The items specified below have been identified and deemed necessary to satisfactorily complete the projects per the intent of the original construction contract. The following Change Orders are proposed as noted: o Change Order No. 2 — Letting No. 10 /Project No. 13 -10 — 2013 City Parking Lot Improvements This Change Order addresses the removal and replacement of catch basins in Parking Lot B and the Hospital parking lot. This revision does not extend the final completion date. The additional work results in an increase of $22,814.00 to the contract. BOARD ACTION REQUESTED: Approval of Change Orders Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 22,814.00 Total City Cost: $ 22,814.00 Funding Source: 2013 Construction Funds Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY CENTER city of ENGINEERING DEPARTMENT 111 HASSAN STREET SE, HUTCINSON MN 55350 PHONE: 320-234-4209 FAX: 320-234-4240 LETTING NO. 10 - PROJECT NO. 13 -10 Dated: 08127/2013 CHANGE ORDER NO. 2 Page 1 of 1 Project Location: 2013 City Parking Lot Improvements: City Parking Lot B - Franklin St SW /1 st Ave SW /Glen St SW across from Park Elem., City Parking Lot J - 125 Jefferson St SE - Evergreen Apartment, & Fire Dept. - 246 Adams St SE /205 3rd Ave SE , School District locations: Administration Bldg - 30 Glen St NW, High School - 1200 Roberts Rd SW, West Elementary - 825 School Rd SW & Hutchinson Health: West Parking Lot - 3 Century Ave SW CONTRACTOR: Knife River Corporation, 4787 Shadow Wood Dr NE, Sauk Rapids MN 56379 Contract Amount: $877'796.73 Completion Date: Interim Completion Dates: School District Lots 08/09/2013 08/14/2013 & City & Hospital Lots 08/23/2013 08/28/2013 Final Completion Date: 08/30/2013 Description of Change: This Change Order addresses the removal and replacement of catch basins in Parking Lot B and the Hospital parking lot. This revision does not extend the final completion date. The additional work results in an increase of $22,814.00 to the contract. Item No. Spec. Ref. Item Name Unit Quantity Unit Price F Amount INCREASE ITEMS 59 2104.509 REMOVE & REPLACE CATCH BASINS - PARKING LOT B EACH 4.00 $3,463.00 $13,852.0 60 2104.509 RECONSTRUCT CATCH BASINS - PARKING LOT B EACH 4.00 $847.00 $3,388.0 61 2104.509 REMOVE & REPLACE CATCH BASINS - HOSPITAL LOT EACH 1.00 $3,500.00 $3,500.0 62 REPAIR FOOTING - HUTCHINSON HEALTH - WEST ENTRANCE LUMP SUM 1.00 $660.00 $660.0 63 3882.100 10% CONTRACTOR ALLOWANCE PERCENT 0.10 $21,400.00 $2,140.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 TOTAL INCREASE ITEMS $23,540.R DECREASE ITEMS: $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 TOTAL DECREASE ITEMS I I I I .00 NETCHANGE ------------------------------------------------------------------------------------------------------------------------------- -------------- - - - --- $23,540.00 In accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of $23,540.00 An extension of - -0 -- days shall be allowed for final completion. (add) /( ). ORIGI CONTRACT NAL AMOUNT PREVIOUS ADDITIONS /DEDUCTIONS THIS ADDITION /BEDUGT4 N TOTAL $877,796.73 $0.00 $23,540.00 $901,336.73 Approved: Contractor - Knife River Corporation Dated: Approved: City of Hutchinson - Mayor: Steven W Cook I Dated: 09/10/2013 Approved: City of Hutchinson - City Engineer: Kent Exner Dated: Approved: City of Hutchinson - City Administrator: Jeremy J Carter I Dated: 09/10/2013 Itran � naw ton M ESTIMATE Name /Address Date Estimate # 8/7/2013 Hutchinson Parking Lot B Att. Jesse P. Project Knife River Description Qty Cost Total Change Order 3 Here is the price to remove and install new C.B. in parking lot B 4 $3,463.00 ea. $13,852.00 ( Price excludes casting. Casting cost is per bid item. Price is for C.B. 3,4,5,6.) Here is the price to remove Blocks and 4 $847.00 ea. $3,388.00 rings from C.B. 7,8,9 and 10. replace with 3X2 6" to 18" thick rings { Price excludes casting. Casting cost is per bid item) All Items Tied unless Approved. No Bond or Retain age held for project. Quote is based on area per conversation With Owner. Quote is good for 20 days from date of bid, after that subject to change. We appreciate your business, we don't expect it! TOTAL Monson Corporation 7600 Hwy 71 South Willmar, MN 56201 Phone #(320)995 -15703 Fax # (320)995 -6783 Customer Signature Estimator Signature MONSON CORPORATION enapaRATInn ESTIMATE Name /Address Date Estimate # 8/6/2013 Hutchinson Parking Lot Att: Jesse P. Knife River Project Description Qty Cost Total C/O for C.B. in Hospital Parking Lot. INCLUDE; Remove old C.B. in center of Hospital Parking lot and replace with a new C.B. 1 $3,500.00 $3,500.00 EXCLUDES; New casting. All Items Tied unless Approved. No Bond or Retain age held for project. Quote is based on area per conversation With Owner. Quote is good for 20 days from date of bid, after that subject to change. We appreciate your business, we don't expect it! TOTAL $3,500.00 Monson Corporation 7600 Hwy 72 South Willmar, MN 56201 Phone #(320)995 -6703 Fox # (320)995 -6783 Customer Signature Estimator Signature �i 1 .� MONSON CORPORATION HANSON & VASEK CONSTRUCTION, INC. 1040 ADAMS ST. S.E. P.O. BOX 353 HUTCHINSON, MINNESOTA 55350 -0353 (320) 587.2475 O F 1 4u ,, TERMS: 1 1 l-4 PLEASE DETACH AND RETURN WITH YOUR REMITTANCE DATE � )o 1.3 NUMBER 145? DATE CHARGES AND CREDITS BALANCE FORWARD BALANCE �e �G _/ 1�oof r . na �U 11e a .r jd�< HANSON & VASEK CONSTRUCTION, INC. En" &W PAY THIS IVT IN 7HIS COLUMN HUTCHINSON CITY COUNCIL ci =y�fAa� Request for Board Action 7AL Z-vz Agenda Item: Temporary Consumption & Display Permit - Hutchinson Center for the Arts Department: Administration LICENSE SECTION Meeting Date: 9/10/2013 Application Complete Yes Contact: Jeremy Carter Agenda Item Type: Presenter: Jeremy Carter Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OFAGENDA ITEM: The Hutchinson Center for the Arts has submitted an application for a temporary consumption & display permit for an event they are holding on October 3, 2013. The temporary permit would allow for patrons to bring in their own liquor while attending the event. According to state law and city ordinance, a nonprofit organization is eligible for a temporary consumption and display permit. Upon Council approval, the application will be forwarded to the State Alcohol and Gambling Enforcement Division for their approval. BOARD ACTION REQUESTED: Approve issuing temporary consumption & display permit to Hutchinson Center for the Arts on October 3, 2013. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Minnesota Department of Public Safety (D Alcohol and Gambling Enforcement Division 444 Cedar Street, Suite 222, St. Paul, MN 55101 651 - 201 -7500 Fax 651- 297 -5259 TTY 651-282-6555 A blinq t nforeement APPLICATION AND PERMIT FOR A 1 DAY TEMPORARY CONSUMPTION AND DISPLAY PERMIT (City or county may not issue more than 10 permits in any one year) Name of or anization c -, ' j A tr " R 1 ►/c ' So G- U J 5 I late organized Tax exempt number iCH ;� — ZJU -3 6o Address City State Zip Code Minnesota Name of person making application Business phone Home phone E i� w K r L� �� - ��1 •,..�5 Date(s) of event Type of organization Organization officer's name Add New Officer Location where permit will be used, If an outdoor. 7 ( []Club [:]Charitable ❑ Religious Other non - profit City State Zip Minnesota'..._ S 5 area, describe. t—O 1= art E A- r` _,S APNHUVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT City /County City Fee mount Date Fee Paid Signature City Clerk or County Official Date Approved Permit Date Approved Direr•tor Alcohol and Gambling Enforcement NOTE- Submit this form to the city or county 30 days prior to event. Forward application signed by city and/or county to the address above. If the application is approved the Alcohol and Gambling Enforcement Division will return this application to be used as the permit for the event. Sheet 1 of 1 HUTCHINSON CITY COUNCIL ci =y�fAa� Request for Board Action 7AL Z-vz Agenda Item: Consideration of Subordination Agreement - Dassel Medical Clinic Department: Legal LICENSE SECTION Meeting Date: 9/10/2013 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OFAGENDA ITEM: In 2006, Hutchinson Health, which was then part of the City, constructed a new clinic building in Dassel. At that time, the hospital chose to finance the construction of the clinic by using a "leaseback" transaction whereby the City leased the land to the contractor, L &L Dassel LLC, for construction of the building and L &L leased the building back to the City. In order to facilitate that transaction, the City entered into a subordination agreement with L &L's then bank, M &I Bank. L &L would now like to refinance its construction loan, but in order to do this L &L's new bank, Pioneer National Bank of Duluth, is asking the City to once again subordinate the City's lease with L &L to the loan from Pioneer National Bank to L &L. This is a very common request of lenders as a condition of giving loans so that if a default situation arises, the bank will be in first position for proceeds of any sale or liquidation of the property. A similar subordination agreement was approved by the City Council for L &L's original financing with M &I Bank in 2007. 1 have spoken with Hutchinson Health and they have no objection to the new subordination agreement. It is recommended that you approve this new subordination agreement. BOARD ACTION REQUESTED: Approve subordination agreement. Fiscal Impact: $ 0.00 Funding Source: N/A FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: SUBORDINATION AND NOTICE AGREEMENT THIS SUBORDINATION AND NOTICE AGREEMENT ( "Agreement "), is made effective as of the 28th day of June, 2013, between Pioneer National Bank of Duluth, a corporation organized and existing under the laws of the United States of America, ( "Bank "), and the City of Hutchinson, a municipal corporation existing under the laws of the State of Minnesota ( "Lessor "), is with reference to the following: A. L & L Dassel, LLC a Minnesota limited liability company received financing from M & I Marshall & Ilsley Bank ( "M &I "), a Wisconsin banking corporation, on December 20, 2006 to build a medical family practice clinic on land legally described on Exhibit A, As a part of said financing M &I received a certain Leasehold Mortgage, Security Agreement and Fixture Financing Statement from L & L Dassel, LLC (L & L Dassel, LLC is referred to herein as "Mortgagor "), an Assignment of Rents and Leases, a Security Agreement and other Loan Documents, all dated December 20, 2013. Additionally, at the same time Lessor entered into a subordination agreement with M &I to give M &I priority of its' security interest. B. Bank is refinancing said loan with Mortgagor and is the currently the holder of a certain Leasehold Mortgage, Security Agreement and Fixture Financing Statement from L & L Dassel, LLC (the "Mortgage ") together with an Assignment of Rents and Leases (the "Assignment "), a Security Agreement and other Loan Documents, all dated June 28, 2013, all of which run to the Bank. The term "Mortgage" also includes any and all amendments, supplements, modifications, renewals, extensions or replacements thereto, thereof or therefor. C. Upon the recording and perfection of the Mortgage, the Mortgage will constitute a valid and existing lien on the Mortgagor's interest in the real property located in Meeker County, Minnesota, and legally described on Exhibit A which is attached hereto and incorporated herein by reference ( "Mortgaged Premises ") and in the personal property to be located on the Mortgaged Premises (collectively the "Collateral "). D. Lessor is fee owner and landlord of the Mortgaged Premises under a ground lease ( "Ground Lease ") with Mortgagor covering the Mortgaged Premises executed on December 20, 2006, and recorded with the Meeker County Recorder on January 26, 2007 as Document No. 345483, attached as Exhibit B. E. Bank wishes to confirm the priority of its security interests in the Collateral to the Ground Lease, and be granted certain rights to notice. F. The Lessor desires to be guaranteed certain rights to notice. NOW, THEREFORE, in consideration of the provisions of this Agreement and in further consideration of the sum of One Dollar ($1.00) each to the other in hand paid, the receipt and sufficiency hereof is acknowledged, the parties agree as follows: wA2074619Msubordination agreement.doc A. LESSOR'S OBLIGATIONS AND ACKNOWLEDGMENTS I. Lessor, with the understanding that Bank will rely upon the statements and representations made by Lessor herein when Bank provides a loan in an amount of up to $725,000, hereby certifies, represents, warrants and confirms to Bank, its successors and assigns, that, as of the date hereof: a. Lessor owns the Mortgaged Premises and has leased the Mortgaged Premises to L & L Dassel, LLC pursuant to the Ground Lease, executed on December 20, 2006, and recorded with the Meeker County Recorder on January 26, 2007 as Document No. 345483. b. The Ground Lease sets forth al l of the agreements and understandings of Lessor and Mortgagor with respect to the Mortgaged Premises; there are no other written or oral agreements or understandings between Mortgagor and Lessor with respect to the Mortgaged Premises; Lessor has not assigned, whether outright or by collateral assignment, all or any portion of its rights under the Ground Lease; the Ground Lease is in full force and effect in accordance with its terms; and there are no defaults of any provisions of the Ground Lease. C. The primary term of the Ground Lease commenced on December 20, 2006, and ends on December 19, 2041. Mortgagor has the following rights of renewal: (NONE) d. Mortgagor has accepted and is in possession of the Mortgaged Premises. Lessor and Mortgagor have fulfilled and complied with all conditions precedent to the acceptance and possession of the Mortgaged Premises by Mortgagor. e. Lessor shall not, without the written consent of Bank, amend the Ground Lease. 2. Lessor hereby consents to the Mortgage by Mortgagor to Bank of the Mortgagor's leasehold interest under the Ground Lease and pursuant to the provisions of Section 12 Subsection (a), the Lessor has executed this Agreement for the express purpose of making its interest in the Mortgaged Premises subject and subordinate to the Mortgage in all respects, subject only to its rights to notice and rights to payment of rents as provided below. 3. That as long as the Mortgagor has a lien or security interest in the Collateral and any obligations remain outstanding to the Bank, the Lessor releases, disclaims, waives and relinquishes all rights which it now has or hereafter acquires in and to the Collateral including, without limitation, any landlord's lien (including all rights of levy or distraint for rent), carrier's lien, warehousemen's lien, mechanic's lien, supplier's lien, whether by statute or under the common law, with respect to the Collateral (whether in the nature of inventory, equipment or fixtures [specifically including the buildings and improvements], any trade fixtures and tenant improvements) which Mortgagor has placed or installed or may hereafter place or install upon the Mortgaged Premises, and acknowledges that all such rights are hereby made subordinate and inferior to any now existing or hereafter arising lien or security interest of the Mortgagor in the Collateral. w12 0 7 4 619 31subordination agreement.doc 2 4. The Lessor further: a. agrees and consents that Bank may occupy the Mortgaged Premises for the purpose of obtaining and maintaining possession of the Collateral and for removing the same, preparing for and conducting a sale of the same, whether public or private, including without limitation the finishing of any work in process or completing construction of the Building as permitted under Section Five of the Ground Lease; b. except as set forth below, acknowledges that the Bank shall have no duty, obligation or liability whatsoever for rent or otherwise with respect to the possession, occupancy or use of the Mortgaged Premises; c. agrees to give the Bank notice of. (i) any breach of the Ground Lease at the same time as the Lessor shall give notice of such breach to Mortgagor; (ii) any legal action which Lessor may commence to evict Mortgagor from the Mortgaged Premises or to terminate or limit Mortgagor's right to use, possess or lease the Mortgaged Premises, promptly upon the commencement of any such action; and (iii) any change in the ownership of the Mortgaged Premises and the name and address of each new owner of the Mortgaged Premises, at least thirty (30) days prior to any such change in ownership; and d. agrees not to cancel the Lease without first giving the Bank at least thirty (30) days' prior written notice of such cancellation (which notice shall run concurrent with, and shall not be in addition to, any notice period afforded Mortgagor), stating the grounds for cancellation or termination. Al I notices to the Bank shall be deemed given on the earlier of the date actually received or the date which is five (5) days after being sent by first class United States mail, postage prepaid, addressed to the Bank, Attn: Wayne Hibbard, at 331 North Central Avenue, Duluth, MN 55807 At the option of the Bank, the Collateral may remain upon the Mortgaged Premises (without the Bank being deemed to be taking possession of the Mortgaged Premises) for any period of time required by the Bank after the receipt by the Bank of written notice from the Lessor specifying default in the Ground Lease. 5. Lessor agrees that subordination of its rights under the Ground Lease shall not be affected by any termination of Mortgagor's rights under the Ground Lease. Lessor further agrees that if Bank or any other person, party or entity becomes the owner of the interests of the Mortgagor under the Ground Lease as a result of the foreclosure sale, or other legal proceeding, under the Mortgage or a conveyance in lieu of foreclosure: a. Lessor shall have no claim against the Bank, and shall not be liable for, any act, omission and /or breach of the Ground Lease by the Mortgagor under the Ground Lease; b. Lessor agrees and acknowledges that upon foreclosure by the Bank of the Mortgagor's interest in the Mortgage Premises the Lessor's fee simple interest in the Mortgage Property is subordinate to the Bank's Mortgage and that upon the foreclosure of the Leasehold Mortgage, the Lessor's fee simple interest in the w:\20746M9 agreement.doc 3 Mortgaged Property shall be transferred to the purchaser at any such foreclosure sale in the same manner and with the same effect as if the Lessor had mortgaged its fee simple interest in the Mortgaged Property; C. If the Bank obtains possession of the Mortgaged Property from Tenant by a transferring in lieu of foreclosure, then Lessor agrees to deliver to Bank a Quit Claim Deed for its fee simple interest in the Mortgaged Property upon request of Bank. b. Bank may enter upon the Mortgaged Premises, at any time during Mortgagor's possession for the purpose of inspecting the Mortgaged Premises and the Collateral, and for the purpose of removing any and all of the Collateral, repairing any damage caused by removal. 7. Lessor agrees that if the Lessor shall, in the contest of any bankruptcy, elect or have on its behalf an election made to terminate the Ground Lease, then Lessor shall, to the extent that applicable law provides a right to enforce the Ground Lease despite rejection, recognize any assignment by Mortgagor to Bank of the right to either accede to the rejection of the Ground Lease by Landlord or to enforce the Ground Lease and agrees to look exclusively to Bank regarding the election to accede or enforce. 8. Lessor agrees that the proceeds of any insurance covering damage to or destruction of the improvements shall be paid over to Bank provided that so much of the proceeds as are necessary to provide for repairs or restorations of the building and improvements are used for such repairs or restoration. B. BANK'S OBLIGATIONS AND ACKNOWLEDGMENTS 9. Bank agrees to provide to Lessor copies of any written notice of default given by Bank to Mortgagor under either the Note, the Assignment or the Mortgage not later than five (S) days after delivery to Borrower. Bank agrees that Lessor has the right to cure any default of the Mortgagor. 10. Lessor acknowledges that Mortgagor has encumbered its leasehold interest and estate and that this Agreement is notice under Section 12(b) of the Ground Lease of the existence thereof and the address of the Bank as the holder. The Lessor will mail or deliver to Bank, at such address, a duplicate copy of any and all notices in writing which the Lessor may, from time to time, give to or serve on Mortgagor under and pursuant to the provisions hereof; such copies shall be mailed or delivered to Bank at, or as near as possible to, the same time as notices are given to or served on Mortgagor. 11. Bank may, at its option, at any time before the rights of Mortgagor shal I have been terminated as provided herein, pay any of the rents due hereunder or pay any taxes and assessments or do any other act or thing required by Mortgagor by the terms hereof or do any act or thing which may be necessary and proper to be done in the observance of the covenants and conditions hereof or to prevent the termination hereof, all payment so made and all things so done and performed by Bank shall be as effective to prevent a forfeiture of the rights of Mortgagor hereunder as the same would have been if done and performed by Mortgagor. Any subtenant of Mortgagor, as to whom Lessor has consented, shall have comparable rights to cure and, in turn, shall have the right, on ten (10) wA207461931subordination agreement.doc 4 days' written notice, to cure any default of Mortgagor hereunder. Lessor hereby consents to the Lease between Mortgagor and the City of Hutchinson, Minnesota, a municipal corporation existing under the laws of the State of Minnesota, by and through its enterprise fund known as Hutchinson Area Health Care ( "HAHC ") of the Land and the completed improvements pursuant to the Lease dated December 20, 2006. C. GENERAL 12. This Agreement does not imply a commitment to lend and shall be binding as long as any obligations of the Mortgagor to the Bank remain outstanding or are subject to recoupment. Each party hereto shall be entitled to specific performance of the covenants, agreements and rights contained in this Agreement. All remedies provided at law or in equity, including the right to specific performance as herein provided, shall be cumulative. 13. Bank may, without affecting the validity of this Agreement, extend, amend or in any way modify the terms of payment or performance of any of Mortgagor's liabilities to the Bank without the consent of Lessor and without notice thereof to Lessor. 14. Each party hereto shall be entitled to specific performance of the covenants, agreements and rights contained in this Agreement. All remedies provided at law or in equity, including the right to specific performance as herein provided, shall be cumulative. 15. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. No failure on the part of the Lender to exercise, and no delay in exercising any right, power or remedy hereunder shall operate as a waiver of such right, power or remedy; nor shall any single or partial exercise of any right, power or remedy hereunder preclude any other or future exercise of such right, power or remedy or the exercise of any other right, power or remedy. This Agreement expresses completely, exclusively and finally all the agreements, conditions and covenants of the parties and does not need evidence (written or oral) of prior, contemporaneous or subsequent statements or representations (express or implied) to reflect the intentions of the parties. This Agreement may not be supplemented or modified except in writing. 16. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, personal representatives, successors and assigns, including any purchaser at a foreclosure sale. 17. Any notice or other communication to any party in connection with this Agreement shall be in writing and shall be sent by manual delivery, telegram, telex, facsimile transmission, overnight courier or United States mail (postage prepaid) addressed as follows: If to Lender: Pioneer National Bank of Duluth Attn: Wayne Hibbard 331 North Central Avenue Duluth, MN 55807 wA2 0 7 4 619 31subordinalion agreement.doc If to Borrower: L & L Dassel, LLC 11 East Superior Street Duluth, MN 55802 If to Landlord: City of Hutchinson Hutchinson Area Health Care 1095 Highway 15 South Hutchinson, MN 55350 or at such other address as any party shall have specified to the other parties hereto in writing not less than five (5) Business Days prior to the effective date of the change. All periods of notice shall be measured from the date of delivery thereof if manually delivered, from the date of sending thereof if sent by telegram, telex or facsimile transmission, from the first Business Day after the date of sending if sent by overnight courier, or from four days after the date of mailing if mailed. 18. This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of Minnesota. 19. This Agreement shall be binding as long as any obligation of the Mortgagor to the Bank under the Mortgage, the Security Agreement, the Assignment, the Note and the Construction and Term Loan Agreement remains outstanding. Pioneer National Bank of Duluth By: Its: CITY OF HUTCHINSON By: Its: By: Its: STATE OF MINNESOTA ) )ss COUNTY OF On this _ day of , 2013, before me personally appeared Wayne Hibbard, the President of Pioneer National Bank of Duluth, to me known to be the person described in and who executed the foregoing instrument and acknowledged that he executed the same as his free act and deed, and the free act and deed of said corporation. Notary Public STATE OF MINNESOTA ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2013, by , the of City of Hutchinson, Minnesota, and by the of City of Hutchinson, Minnesota, a municipal corporation. Notary Public EXHIBIT A (Legal Description) Land situated in the County of Meeker, State of Minnesota, described as follows: Lots 14, 15, 16, and 17, Block 6, Town of Dassel, now City of Dassel wA207461931subordmanon agreement.doc 8 EXHIBIT B (Ground Lease) w 1207461431subordination agreement doc CITY OF HUTCHINSON R55CKREG LOG22001VO Council Check Register Check Dates 8/28- 9/10/13 Check # Ck Date Amount Vendor/ Explanation Account Description 177383 9/10/2013 747.97 ACE HARDWARE REPAIR & MAINTENANCE SUPPLIES 177384 9/10/2013 90.85 AMERICAN FAMILY INS CO. ACCRUED LIFE INSURANCE 177385 9/10/2013 6.54 AMERICAN MESSAGING COMMUNICATIONS 177386 9/10/2013 280.00 AMERICAN RED CROSS OPERATING SUPPLIES 177387 9/10/2013 100.00 ANDERSON, RACHEL RECREATION ACTIVITY FEES 177388 9/10/2013 266.10 ARCTIC GLACIER PREMIUM ICE INC COST OF MIX & SOFT DRINKS 177389 9/10/2013 119.46 ARNOLD'S OF GLENCOE, INC CENTRAL GARAGE REPAIR 177390 9/10/2013 470.19 ARROW TERMINAL LLC EQUIPMENT PARTS 177391 9/10/2013 277.33 ARROWHEAD SCIENTIFIC INC OPERATING SUPPLIES 177392 9/10/2013 3,218.00 ARTHUR J GALLAGHER RISK GENL LIAB.- INSURANCE 177393 9/10/2013 60.81 AUTO VALUE - GLENCOE EQUIPMENT PARTS 177394 9/10/2013 2,000.00 AUTOMATIC SYSTEMS CO OTHER CONTRACTUAL 177395 9/10/2013 2,549.10 BELLBOY CORP COST OF SALES - LIQUOR 177396 9/10/2013 1,038.00 BLACK HILLS AMMUNITION OPERATING SUPPLIES 177397 9/10/2013 2,358.23 BRAUN INTERTEC CORP PROFESSIONAL SERVICES 177398 9/10/2013 460.00 BRIEST, JERRY TRAVEL SCHOOL CONFERENCE 177399 9/10/2013 1,472.69 BUSINESSWARE SOLUTIONS SMALL TOOLS 177400 9/10/2013 400.00 C & C CONTRACTING CONTRACT REPAIR & MAINTENANCE 177401 9/10/2013 59,309.00 C & L DISTRIBUTING COST OF SALES -BEER 177402 9/10/2013 3,808.49 CENTRAL HYDRAULICS CENTRAL GARAGE REPAIR 177403 9/10/2013 63.67 CENTRAL MCGOWAN RECEIVED NOT VOUCHERED 177404 9/10/2013 62.36 COMDATA CORPORATION AUGUST PURCHASES 177405 9/10/2013 1,683.00 CROW RIVER AUTO & TRUCK REPAIR AUTOMOTIVE REPAIR 177406 9/10/2013 53.44 CROW RIVER FLORAL & GIFTS EMPLOYEE FLOWERS 177408 9/10/2013 3,914.10 DAY DISTRIBUTING COST OF SALES -BEER 177409 9/10/2013 27,629.00 DODGE OF BURNSVILLE TRUCKS 177410 9/10/2013 5,263.02 DPC INDUSTRIES INC CHEMICALS & PRODUCTS 177411 9/10/2013 279,299.17 DUININCK INC IMPROV OTHER THAN BLDGS 177412 9/10/2013 22,011.80 DUININCK INC IMPROV OTHER THAN BLDGS 9/4/2013 177413 9/10/2013 1,485.36 E2 ELECTRICAL SERVICES INC CONTRACT REPAIR & MAINTENANCE 177414 9/10/2013 137.87 ECOLAB PEST ELIMINATION PEST CONTROL 177415 9/10/2013 47.57 ECONO FOODS OPERATING SUPPLIES 177416 9/10/2013 1,490.50 ELECTRO WATCHMAN OTHER CONTRACTUAL 177417 9/10/2013 673.87 EMBASSY SUITES MINNEAPOLIS TRAVEL SCHOOL CONFERENCE 177418 9/10/2013 61,739.55 ENVIRONMENTAL FABRICS IMPROV OTHER THAN BLDGS 177419 9/10/2013 287.62 FARMER BROTHERS COFFEE FOOD PRODUCTS - CONCESSION 177420 9/10/2013 69.15 FARMINGTON VETERINARY CLINIC OTHER CONTRACTUAL 177421 9/10/2013 4.19 FASTENAL COMPANY EQUIPMENT PARTS 177422 9/10/2013 277.00 FIRE SAFETY USA, INC SMALL TOOLS 177423 9/10/2013 19,224.00 FLATWORKS CONCRETE CONSTR IMPROV OTHER THAN BLDGS 177424 9/10/2013 115.77 FORESTRY SUPPLIERS INC OPERATING SUPPLIES 177425 9/10/2013 137.99 G & K SERVICES SHOP MATERIALS 177426 9/10/2013 673.79 GAME TIME REPAIR & MAINTENANCE SUPPLIES 177427 9/10/2013 779.55 GEB ELECTRICAL INC CONTRACT REPAIR & MAINTENANCE 177428 9/10/2013 567.90 H.A. R.T. ACCRUED DEFERRED COMP 177429 9/10/2013 10.69 HANSEN GRAVEL REPAIR & MAINTENANCE SUPPLIES 177430 9/10/2013 1,485.00 HANSON & VASEK CONSTRUCTION CONTRACT REPAIR & MAINTENANCE 177431 9/10/2013 8.66 HAUG IMPLEMENT CO RECEIVED NOT VOUCHERED 177432 9/10/2013 30.90 HAUGEN, MARV POSTAGE 177433 9/10/2013 687.56 HAYES INSTRUMENT CO OPERATING SUPPLIES 177434 9/10/2013 316.33 HENRY'S WATERWORKS INC REPAIR & MAINTENANCE SUPPLIES 177435 9/10/2013 3,309.42 HILLYARD / HUTCHINSON CLEANING SUPPLIES 177436 9/10/2013 125.01 HIRSHFIELD'S INC REPAIR & MAINTENANCE SUPPLIES 177437 9/10/2013 71,903.74 HJERPE CONTRACTING IMPROV OTHER THAN BLDGS 177438 9/10/2013 1,754.25 HJERPE CONTRACTING CONTRACT REPAIR & MAINTENANCE 177439 9/10/2013 3,615.05 HOLT MOTORS INC CENTRAL GARAGE REPAIR 177440 9/10/2013 3,651.87 HUTCH AUTO BODY CENTRAL GARAGE REPAIR 177441 9/10/2013 2,772.00 HUTCH BOWL OPERATING SUPPLIES 177442 9/10/2013 5,000.00 HUTCHINSON CENTER FOR THE ARTS MATCHING DONATION 177443 9/10/2013 1,509.55 HUTCHINSON SENIOR ADVISORY BOA SENIOR TOUR 177444 9/10/2013 203.12 HUTCHINSON WHOLESALE EQUIPMENT PARTS 177445 9/10/2013 VOID HUTCHINSON, CITY OF BUILDING PERMIT SURCHARGE 177446 9/10/2013 1,671.48 INDUSTRIAL FABRICS CORPORATION REPAIR & MAINTENANCE SUPPLIES 177447 9/10/2013 532.00 INTERSTATE BATTERY SYSTEM MINN EQUIPMENT PARTS 177448 9/10/2013 253.61 J & R COMPLETE AUTO & RADIATO CENTRAL GARAGE REPAIR 177449 9/10/2013 2,601.89 JEFF MEEHAN SALES INC. ACCRUED COMMISSIONS PAYABLE 177450 9/10/2013 174.18 JEFF'S ELECTRIC OFFICE SUPPLIES 177451 9/10/2013 971.08 JJ TAYLOR DIST OF MN COST OF SALES -BEER 177452 9/10/2013 26,289.22 JOHNSON BROTHERS LIQUOR CO. COST OF SALES -BEER 177453 9/10/2013 200.00 JORDAHL, JIM OPERATING SUPPLIES 177454 9/10/2013 11,264.25 J U U L CONTRACTING CO IMPROV OTHER THAN BLDGS 177455 9/10/2013 40.71 KELLER, NATE CAR ALLOWANCE - TRAVEL 177456 9/10/2013 424,143.37 KNIFE RIVER IMPROV OTHER THAN BLDGS 177457 9/10/2013 60.06 KRANZ LAWN & POWER CENTRAL GARAGE REPAIR 177458 9/10/2013 1,950.00 KRUEGER &, JEFF LOAN 177459 9/10/2013 50.00 KUSESKE, JENNIFER RECREATION ACTIVITY FEES 177460 9/10/2013 47.56 LAW ENFORCEMENT TARGETS OPERATING SUPPLIES 177461 9/10/2013 51,119.75 LEAGUE OF MN CITIES -INS TRUST GENL LIAB.- INSURANCE 177462 9/10/2013 6,868.00 LEAGUE OF MN CITIES -INS TRUST GENL LIAB.- INSURANCE 177463 9/10/2013 143.00 LEXISNEXIS OTHER CONTRACTUAL 177464 9/10/2013 75.88 LITIN PAPER COMPANY RECEIVED NOT VOUCHERED 177465 9/10/2013 36,103.86 LOCHER BROTHERS INC COST OF SALES -BEER 177466 9/10/2013 99.00 LOGIS OTHER CONTRACTUAL 177467 9/10/2013 119.92 LYNDE & MCLEOD INC RECEIVED NOT VOUCHERED 177468 9/10/2013 50.07 MACQUEEN EQUIP INC EQUIPMENT PARTS 177469 9/10/2013 100.00 MADDEN, GALANTER, HANSEN LLP PROFESSIONAL SERVICES 177470 9/10/2013 104.13 MENARDS HUTCHINSON REPAIR & MAINTENANCE SUPPLIES 177471 9/10/2013 236.33 MINI BIFF RENTALS 177472 9/10/2013 370.94 MINNESOTA DEPT OF LABOR & IND PROFESSIONAL SERVICES 177473 9/10/2013 463.31 MINNESOTA DEPT OF TRANSPORTATI PROFESSIONAL SERVICES 177474 9/10/2013 923.40 MINNESOTA HOUSING FINANCE AGEf REFUNDS & REIMBURSEMENTS 177475 9/10/2013 254.00 MINNESOTA SUPREME COURT DUES & SUBSCRIPTIONS 177476 9/10/2013 550.80 MINNESOTA VALLEY TESTING LAB OTHER CONTRACTUAL 177477 9/10/2013 1,029.00 MMC CONTRACT REPAIR & MAINTENANCE 177478 9/10/2013 15.00 MORTENSON, DARRELL TREE APPLICATION /PERMITS 177479 9/10/2013 1,750.00 MOUNTAIN WEST, LLC RECEIVED NOT VOUCHERED 177480 9/10/2013 481.59 M -R SIGN SIGNS & STRIPPING MATERIALS 177481 9/10/2013 368.00 NCPERS LIFE INS. ACCRUED LIFE INSURANCE 177482 9/10/2013 1,451.00 NEW FRANCE WINE COST OF SALES -WINE 177483 9/10/2013 165.70 NORTH CENTRAL LABORATORIES CHEMICALS & PRODUCTS 177484 9/10/2013 298.27 NORTHERN STATES SUPPLY INC EQUIPMENT PARTS 177485 9/10/2013 4,450.62 NU- TELECOM COMMUNICATIONS 177486 9/10/2013 454.07 OFFICE DEPOT OFFICE SUPPLIES 177487 9/10/2013 37.00 OFFICE OF ENTERPRISE TECHNOLOG TELEPROCESSING EQUIP 177488 9/10/2013 39.55 OLIVIA FLORAL & GARDEN CENTER EMPLOYEE BEREAVEMENT FLOWERS 177489 9/10/2013 255.15 O'REILLY AUTO PARTS EQUIPMENT PARTS 177491 9/10/2013 6,617.81 PAUSTIS & SONS WINE CO COST OF SALES -WINE 177492 9/10/2013 14,992.20 PHILLIPS WINE & SPIRITS COST OF SALES - LIQUOR 177493 9/10/2013 1,411.00 PIONEER SIGNS & STRIPPING MATERIALS 177494 9/10/2013 38,118.00 PIONEERLAND LIBRARY SYSTEM QUARTERLY PAYMENT 177495 9/10/2013 1,500.00 POSTMASTER POSTAGE 177496 9/10/2013 1,512.28 PRO CARE SERVICES INC CONTRACT REPAIR & MAINTENANCE 177497 9/10/2013 1,671.51 QUALITY FLOW SYSTEMS CONTRACT REPAIR & MAINTENANCE 177498 9/10/2013 352,205.48 R & R EXCAVATING IMPROV OTHER THAN BLDGS 177499 9/10/2013 900.00 R & S INSPECTIONS, INC. HOUSING REHAB LOANS 177500 9/10/2013 900.00 R & W COMPOST SERVICE RECEIVED NOT VOUCHERED 177501 9/10/2013 1,473.00 RAMSTAD TECHNOLOGIES LLC IMPROV OTHER THAN BLDGS 177502 9/10/2013 1,236.01 RANDY'S BOBCAT SERVICE LANDSCAPE MATERIALS 177503 9/10/2013 933.44 RDO EQUIPMENT CO. RECEIVED NOT VOUCHERED 177504 9/10/2013 7,189.13 REINER ENTERPRISES, INC FREIGHT - IN 177505 9/10/2013 710.18 ROYALTIRE RECEIVED NOT VOUCHERED 177506 9/10/2013 481.65 RUNNING'S SUPPLY OPERATING SUPPLIES 177507 9/10/2013 123.98 SALTMAN LLC REPAIR & MAINTENANCE SUPPLIES 177508 9/10/2013 527.58 SAM'S CLUB FOOD PRODUCTS - CONCESSION 177509 9/10/2013 40.00 SAVAGE, CITY OF TRAVEL SCHOOL CONFERENCE 177510 9/10/2013 1,516.40 SCHMELING OIL CO RECEIVED NOT VOUCHERED 177511 9/10/2013 11,956.63 SCHOOL DIST # 423 COMMUNITY ED FEES 177512 9/10/2013 64.13 SCOTT'S WINDOW CLEANING SERVIC CONTRACT REPAIR & MAINTENANCE 177513 9/10/2013 17.00 SEH PROFESSIONAL SERVICES 177514 9/10/2013 1,092.71 SHRED -IT USA INC- MINNEAPOLIS CONTRACT REPAIR & MAINTENANCE 177515 9/10/2013 189.68 SIMONSON LUMBER CO REPAIR & MAINTENANCE SUPPLIES 177516 9/10/2013 10,407.31 SOUTHERN WINE & SPIRITS OF MN COST OF SALES -WINE 177517 9/10/2013 386.55 SPRINT COMMUNICATIONS 177518 9/10/2013 94,945.48 ST. CROIX RECREATION CO FARMERS MARKET SHELTER 177519 9/10/2013 31.03 STANDARD PRINTING OFFICE SUPPLIES 177520 9/10/2013 487.16 STAPLES ADVANTAGE OPERATING SUPPLIES 177521 9/10/2013 327.94 STEWARD ENTERPRISE INC CENTRAL GARAGE REPAIR 177522 9/10/2013 235.00 STRACHAN, JUDY OTHER REVENUES 177523 9/10/2013 572.82 STRATEGIC EQUIPMENT OPERATING SUPPLIES 177524 9/10/2013 4,155.17 STREICH TRUCKING CONTRACT REPAIR & MAINTENANCE 177525 9/10/2013 25.00 STRETCH, SHANNON RECREATION ACTIVITY FEES 177526 9/10/2013 10.00 TAGUE, HEIDI RECREATION ACTIVITY FEES 177527 9/10/2013 47.26 TARGET BANK OPERATING SUPPLIES 177528 9/10/2013 4,889.00 TEK MECHANICAL MACHINERY & EQUIPMENT 177529 9/10/2013 1,213.99 TESSMAN COMPANY CONTRACT REPAIR & MAINTENANCE 177530 9/10/2013 8.57 TOWN & COUNTRY TIRE CENTRAL GARAGE REPAIR 177531 9/10/2013 23,620.80 TREBELHORN & ASSOC MOTOR FUELS & LUBRICANTS 177532 9/10/2013 418.66 UNITED LABORATORIES CLEANING SUPPLIES 177533 9/10/2013 542.85 UNITED RENTALS NORTH AMERICA I CONTRACT REPAIR & MAINTENANCE 177534 9/10/2013 2,495.00 UNIVERSITY OF ST. THOMAS TRAVEL SCHOOL CONFERENCE 177535 9/10/2013 1,500.00 USAQUATICS BUILDINGS 177536 9/10/2013 1,115.04 USPS - HASLER POSTAGE 177537 9/10/2013 5,965.80 UTOPIC SOFTWARE, LLC SOFTWARE SUBSCRIPTION 177538 9/10/2013 15,486.63 VIKING BEER COST OF SALES -BEER 177539 9/10/2013 446.50 VIKING COCA COLA FOOD PRODUCTS - CONCESSION 177540 9/10/2013 11.88 WAL -MART COMMUNITY OPERATING SUPPLIES 177541 9/10/2013 8,523.68 WASTE MANAGEMENT OF WI -MN REFUSE - LANDFILL CHARGES 177542 9/10/2013 353.33 WELLS FARGO AUGUST PURCHASES 177543 9/10/2013 56.00 WESTAFER ENTERPRISES ACCRUED COMMISSIONS PAYABLE 177544 9/10/2013 4,242.75 WINE COMPANY, THE COST OF SALES -WINE 177545 9/10/2013 26,692.96 WIRTZ BEVERAGE MINNESOTA COST OF SALES - LIQUOR 177546 9/10/2013 629.04 WITTE SOD FARMS INC CONTRACT REPAIR & MAINTENANCE 177547 9/10/2013 55,143.87 WM MUELLER & SONS - SEPARATE C IMPROV OTHER THAN BLDGS 177548 9/10/2013 15,567.02 WM MUELLER & SONS - SEPARATE C IMPROV OTHER THAN BLDGS 177549 9/10/2013 5,361.32 WORK CONNECTION, THE OTHER CONTRACTUAL 177550 9/5/2013 500.00 LANCE ALBERS 177551 9/5/2013 15.50 HUTCHINSON, CITY OF 1,915,544.61 Grand Total Payment Instrument Totals Check Total 1,915,692.49 Total Paymen 1,915,692.49 SEPTEMBER MURAL SERVICES BUILDING PERMIT SURCHARGE R55CKREG LOG22001VO Check # Ck Date 177407 9/10/2013 CITY OF HUTCHINSON Council Check Register Check Dates 8/28-9/10/13 Amount Vendor/ Explanation 80.16 CROW RIVER SIGNS Account Description AUTOMOTIVE REPAIR 9/4/2013 R55CKREG LOG22001VO Check # Ck Date CITY OF HUTCHINSON Council Check Register Check Dates 8/28-9/10/13 Amount Vendor/ Explanation Account Description 177490 9/10/2013 67.72 OUTDOOR MOTION BIKE REPAIRS 9/4/2013 HUTCHINSON CITY COUNCIL cfi�f Request for Board Action 7AL =-wp Agenda Item: Resolution 14183 Approving the HRA Preliminary 2014 Tax Levy Department: Finance LICENSE SECTION Meeting Date: 9/10/2013 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OFAGENDA ITEM: In accordance with State Statute, the City must certify a preliminary 2014 tax levy to the County by September 16, 2013 for the HRA operations. The HRA's 2014 statutory levy limit is $153,521, which is a modest increase from the 2013 levy of $150,000. This levy will help the HRA to partner with the School construction class to build a new house at 907 Lewis Avenue. In addition, the levy will allow for a small allocation for the HRA Rehab Loan fund available city -wide for those residents with decent credit ratings unable to qualify for a Fix -up Fund Loan. The HRA Rehab Loan Fund is also a source of owner match leverage for the NE and SW SCDP neighborhoods. BOARD ACTION REQUESTED: Approve the HRA preliminary 2014 tax levy of $153,521 Fiscal Impact: Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON RESOLUTION NO. 14183 CITY OF HUTCHINSON, MINNESOTA SETTING 2014 FINAL TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON REDEVELOPMENT AUTHORITY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA THAT the City of Hutchinson hereby establishes a special taxing district for the purpose of Hutchinson Housing Redevelopment Authority (Hutchinson HRA) and the financing of such district as authorized under Minn. Stat. 469.033 WHEREAS the Minn Stat 469.033 authorizes a levy to be set for an HRA special tax of .000185 times estimated market value of the city. AND for 2014 the authorization yields :.0001815 x $829,840,600 = $153,521; the HRA Board requests for 2014 a levy of $153,521. THAT the City of Hutchinson hereby establishes a final tax levy for the above named special taxing district of: $153,521 Adopted by the City Council this 10th day of September 2013 Steve W. Cook Mayor ATTESTED: Jeremy J. Carter City Administrator HUTCHINSON CITY COUNCIL ci =y�fAa� Request for Board Action 7AL Z-vz Agenda Item: Resolution 14184 Approving the EDA Preliminary 2014 Tax Levy Department: Finance LICENSE SECTION Meeting Date: 9/10/2013 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OFAGENDA ITEM: In accordance with State Statute, the City must certify a preliminary 2014 tax levy to the County by September 16, 2013 for the EDA operations. The EDA's 2014 statutory levy limit is $150,450, which is a slight increase from the 2013 levy of $150,218. BOARD ACTION REQUESTED: Approve the EDA preliminary 2014 tax levy of $150,450. Fiscal Impact: Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON RESOLUTION NO. 14184 CITY OF HUTCHINSON, MINNESOTA SETTING 2014 PRELIMINARY TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA WHEREAS the City of Hutchinson hereby establishes a special taxing district for the purpose of Hutchinson Economic Development Authority (Hutchinson EDA) and the financing of such district as authorized under Minn. Stat. 469.107 WHEREAS the Minn Stat 469.107 authorizes a levy to be set for an EDA special tax of .0001813 times estimated market value of the city. AND for 2014 the authorization yields - .0001813 x $829,840,600 = $150,450; the EDA Board requests for 2014 a levy of $150,450. THAT the City of Hutchinson hereby establishes a preliminary tax levy for the above named special taxing district of: $150,450 Adopted by the City Council this 10th day of September 2013 Steve W. Cook Mayor ATTESTED: Jeremy J. Carter City Administrator HUTCHINSON CITY COUNCIL ci =y�fAa� Request for Board Action 7AL Z-vz Agenda Item: Resolution 14185 Approving the General Fund & Debt Service Fund Preliminary 2014 Tax Levies Department: Finance LICENSE SECTION Meeting Date: 9/10/2013 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OFAGENDA ITEM: In accordance with State Statute, the City must certify a preliminary 2014 tax levy to the County by September 16, 2013 for the General Fund and Debt Service Fund. With the additional LGA funding of $428,927 for 2014 and the sales tax exemption effective 1/1/2014, the General Fund's levy cannot be increased and is limited to $4,479,446. There is no levy limit for the Debt Levy and we are looking for a 5.0% increase for a total levy of $2,073,519. BOARD ACTION REQUESTED: Approve the 2014 preliminary tax levies for the General Fund (0% increase) and Debt Service Fund (5% increase). Fiscal Impact: Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON RESOLUTION NO. 14185 2014 PRELIMINARY TAX LEVY FOR CITY OF HUTCHINSON, MINNESOTA BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA THAT A NET tax levy for the City of Hutchinson for 2014 is hereby set in the amount of: $6,552,965 The detail for this levy is as follows: LEVY Amt. General Fund 4,479,446 Improvement Bonds 2002 41,200 2003 136,000 2004 495,608 2005 391,888 2006 236,801 2007 42,290 2008 126,491 2009 154,494 2010 76,739 2011 159,638 2012 138,061 2013 141,737 Levy Reduction - Debt Management Plan (67,428) Total Improvement Bonds $ 2,073,519 TOTAL TAX LEVY $ 6,552,965 Adopted by the City Council this 10th day of September 2013. Steve W. Cook Mayor ATTESTED: Jeremy J. Carter City Administrator HUTCHINSON CITY COUNCIL ci =y�fAa� Request for Board Action 7AL Z-vz Agenda Item: Set the Date for a Truth in Taxation Meeting Department: Finance LICENSE SECTION Meeting Date: 9/10/2013 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: No BACKGROUND /EXPLANATION OFAGENDA ITEM: As we certify our preliminary levies to the County by September 16th, we also need to notify the County of the date we will hold a Truth in Taxation meeting. This is a public meeting, not a formal hearing, which may take place at a regularly scheduled council meeting. The public meeting requirements are: 1. The meeting occurs between the dates of November 25 and December 30. 2. The truth in taxation portion of the meeting occurs after 6pm on that date. 3. Discussion of the 2014 budget and tax levy. 4. Discussion on the City's 2014 savings due to the sales tax exemption effective January 1, 2014. 5. The public is allowed to speak. BOARD ACTION REQUESTED: Set the date of a regular Council meeting where a Truth in Taxation meeting can occur. Fiscal Impact: Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL cfi�f Request for Board Action 7AL =-wp Agenda Item: Resolution 14187 Redefining the Annual Contribution to the City of Hutchinson Department: Administration LICENSE SECTION Meeting Date: 9/10/2013 Application Complete N/A Contact: Jeremy Carter Agenda Item Type: Presenter: Jeremy Carter Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OFAGENDA ITEM: The City of Hutchinson City Council approved forming a sub - committee consisting of Mayor Steve Cook, Council Member Chad Czmowski and City Administrator Jeremy Carter to have meetings over the course of this last year with a sub - committee formed by the Hutchinson Utilities Commission in an effort to discuss redefining the annual contribution made to the City of Hutchinson. Understanding on -going daily business and the financial position of both organizations can change over time the sub - committees agreed to increase the contribution to $1,900,000 for 2014, with the expectation of annually reviewing this contribution level and the annual needs of both organizations and adjusting accordingly, if need be. This redefined total annual contribution reflects an overall increase over the 2012 contribution of $443,763 and an increase over the 2013 contribution of $183,332, because of an additional one -time $250,000 transfer above the 2.75% gross operating revenue formula and ancillary reimbursements. Through sub - committee discussions and the support shown by the Hutchinson Utilities Commission in redefining the annual contribution the City of Hutchinson has continued to put itself in a more financially stable situation to continually address the short -term and long -term needs of the community. Hutchinson Utilities support is greatly appreciated and the City of Hutchinson looks forward to a continued strong partnership with Hutchinson Utilities in the future. Any questions on this topic please contact me. Thanks BOARD ACTION REQUESTED: Approve Resolution 14187, increasing the annual contribution amount to no less than $1,900,000 for 2014. Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14187 A RESOLUTION REDEFINING THE ANNUAL CONTRIBUTION TO THE CITY OF HUTCHINSON IN LIEU OF TAXES BETWEEN THE HUTCHINSON UTILITIES COMMISSION AND THE CITY OF HUTCHINSON. WHEREAS, the Hutchinson City Charter and Hutchinson Utilities Commission By -laws contain provisions for the transfer of surplus Utilities funds to the City in lieu of higher community property taxes; and, WHEREAS, heretofore the amount transferred previously was an amount equal to 2.75% of the total operating revenue of the Hutchinson Utilities Commission as determined by the second preceding years' financial audit as adopted by the Hutchinson Utilities Commission; and, WHEREAS, in addition to the 2.75% of total operating revenue, other related ancillary reimbursements were made to the City of Hutchinson by the Utilities Commission for items which included: street light power, personnel and operating costs and services provided by the City of Hutchinson; and, WHEREAS, the Hutchinson Utilities Commission and City of Hutchinson wish to redefine the scope of the Utilities Commission annual contribution, with the understanding that as circumstances change in relationship to the parties' operations, capital investments and financial position that continued open lines of communication and the ability to review the annual contribution will remain. In addition, depending on the financial position of Hutchinson Utilities an increase in the contribution to the City of Hutchinson will be considered in the future if financially feasible. NOW THEREFORE BE IT RESOLVED BY THE HUTCHINSON UTILTIIES COMMISSION AND THE CITY OF HUTCHINSON: THAT the contribution to the City of Hutchinson shall be equal to no less than an amount equal to $1,900,000, which will encompass all the ancillary reimbursements. In addition, the tree program will continue to be funded outside the scope of the annual contribution, and if, future increases in profits are realized through other businesses activities the ability to discuss those areas will be a part of the annual review. Approved by the Hutchinson City Council this 10`'' day of September, 2013. ATTEST: Jeremy J. Carter, City Administrator Steven W. Cook, Mayor Adopted August 28, 2013 RESOLUTION NO. 1010 A RESOLUTION REDEFINING THE ANNUAL CONTRIBUTION TO THE CITY OF HUTCHINSON IN LIEU OF TAXES BETWEEN THE HUTCHINSON UTILITIES COMMISSION AND THE CITY OF HUTCHINSON. WHEREAS, the Hutchinson City Charter and Hutchinson Utilities Commission By- laws contain provisions for the transfer of surplus Utilities funds to the City in lieu of higher community property taxes; and, WHEREAS, heretofore the amount transferred previously was an amount equal to 2.75% of the total operating revenue of the Hutchinson Utilities Commission as determined by the second preceding years' financial audit as adopted by the Hutchinson Utilities Commission; and, WHEREAS, in addition to the 2.75% of total operating revenue, other related ancillary reimbursements were made to the City of Hutchinson by the Utilities Commission for items which included: street light power, personnel and operating costs and services provided by the City of Hutchinson; and, WHEREAS, the Hutchinson Utilities Commission and City of Hutchinson wish to redefine the scope of the Utilities Commission annual contribution, with the understanding that as circumstances change in relationship to the parties' operations, capital investments and financial position that continued open lines of communication and the ability to review the annual contribution will remain. In addition, depending on the financial position of Hutchinson Utilities an increase in the contribution to the City of Hutchinson will be considered in the future if financially feasible. NOW THEREFORE BE IT RESOLVED BY THE HUTCHINSON UTILTIIES COMMISSION AND THE CITY OF HUTCHINSON: THAT the contribution to the City of Hutchinson shall be equal to no less than an amount equal to $1,900,000, which will encompass all the ancillary reimbursements. In addition, the tree program will continue to be funded outside the scope of the annual contribution, and if, future increases in profits are realized through other businesses activities the ability to discuss those areas will be a part of the annual review. ATTEST: wi Bord on, President Monty Morr , Secretary HUTCHINSON CITY COUNCIL ci =y�fAa� Request for Board Action 7AL Z-vz Agenda Item: Ordinance Amending Section 111.02 - Peddlers & Solicitors - License Required Department: Administration /Legal LICENSE SECTION Meeting Date: 9/10/2013 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff ✓❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND /EXPLANATION OFAGENDA ITEM: Hutchinson city code currently requires that all peddlers, solicitors and transient merchants who conduct business in the City of Hutchinson obtain a license and pay a license fee prior to conducting business within the city. Upon information received from the League of Minnesota Cities, staff is recommending that a solicitor register with the City rather than obtain a license. The major restriction on local licensing of solicitors is the Commerce Clause of the United States Constitution. The Minnesota attorney general has advised that because states are prohibited from interfering with interstate commerce, local governments cannot collect license fees from solicitors who take orders in one state for goods to be delivered in the future from another state. The League of Minnesota Cities has advised that solicitors, including interstate merchants, simply register with local authorities before engaging in their business activities. For ease and consistency of solicitor registration, staff is recommending that all solicitors register with the City - rather than obtain a license. Therefore, staff has put forth an ordinance amendment with the registration requirements of solicitors. In addition, no license fee will be collected from solicitors, but rather only from peddlers and transient merchants. BOARD ACTION REQUESTED: Approve first reading of the ordinance and set the 2nd reading and adoption on for September 24, 2013. Fiscal Impact: $ 0.00 Funding Source: N/A FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Ordinance No. 13 -718 Publication No. AN ORDINANCE AMENDING SECTION 111.02 — PEDDLERS AND SOLICITORS — LICENSE REQUIRED The City Council hereby ordains: § 111.02 LICENSE REQUIRED. It is unlawful for any peddler, selieiter or transient merchant to engage in any business within the city without first obtaining a license therefor from the city. It is unlawful for any solicitor to engage in any business within the city without first registering their business information with the City. Business information shall include: (A) Name of owner /agent of company performing solicitation (B) Company address (C) Contact phone number of owner/agent (D) List of all employee names who will be performing solicitation on behalf of company (E) Estimated time frame when solicitation will occur (F) Products being solicited (G) Other cities solicitation has occurred Where licensing is referenced throughout the remainder of this section it shall refer to peddlers and transient merchants only. Adopted by the City Council this Steven W. Cook, Mayor day of 2013. ATTEST: Jeremy J. Carter, City Administrator Ordinance No. 13 -718 Publication No. AN ORDINANCE AMENDING SECTION 111.02 — PEDDLERS AND SOLICITORS — LICENSE REQUIRED The City Council hereby ordains: § 111.02 LICENSE REQUIRED. It is unlawful for any peddler, seheite or transient merchant to engage in any business within the city without first obtaining a license therefor from the city. It is unlawful for any solicitor to engage in any business within the city without first registering their business information with the City. Business information shall include: (A) Name of owner /agent of compM performing solicitation (B) Company address (C) Contact phone number of owner /agent (D) List of all employee names who will be performing solicitation on behalf of company (E) Estimated time frame when solicitation will occur (F) Products being solicited (G) Other cities solicitation has occurred Adopted by the City Council this Steven W. Cook, Mayor day of , 2013. ATTEST: Jeremy J. Carter, City Administrator HUTCHINSON CITY COUNCIL ci =y�fAa� Request for Board Action 7AL Z-vz Agenda Item: Consideration of Re- Setting December 24, 2013, City Council meeting Department: Administration LICENSE SECTION Meeting Date: 9/10/2013 Application Complete N/A Contact: Jeremy Carter Agenda Item Type: Presenter: Jeremy Carter Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: No BACKGROUND /EXPLANATION OFAGENDA ITEM: Last year the second Council meeting in December fell on December 25th, Christmas Day. Because of that, the Council re -set the December 25th meeting to the Thursday the week prior, or December 20th. At the second meeting, the Council adopted the various City budgets and tax levies. This year the second meeting in December falls on December 24th, Christmas Eve. Staff is recommending that this meeting date be rescheduled similar to last year. If it meets in agreement with the Council Members' schedules, the second meeting in December would be held on December 19, 2013. BOARD ACTION REQUESTED: Re -set second Council meeting in December of December 25, 2013, to an alternate date. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Back to School / ball Season To: The Resident's of the Hutchinson Fire Department District, City Councils, Township Boards, and Visitors to the City of Hutchinson web -site From: Brad Emans, Fire Chief Date: 09/03/2013 This is the official monthly report on the various activities of the Hutchinson Fire Department for August 2013. Fire Department Response: The Fire Department responded to 27 emergency calls for service in the month of August. "Fire Officer Only" Response: A "fire officer only" responded to 6 calls in August saving the Hutchinson Fire District the cost of a "general" alarm estimated at $1,092.00 for the month. Response Time: First Truck "Out of the Door ": August — 3 minutes 31 seconds. Example of a Few of the Calls your FD responded to: • A Fire Officer responded to a gas grill fire in the northwest part of the city. The grill was too close to the house and when a grease fire erupted it melted the vinyl siding on the house. The fire was extinguished with a fire extinguisher and the area checked for fire extension-, • Firefighters responded to an unattended 55 gallon barrel fire in the city limits of the city. The resident was burning garbage. The fire was extinguished and the resident was informed about the city open burning ordinance-, • A Fire Officer responded to an "alarm sounding" in a Church, the fire officer was unable to make entry into the building because the door locks had been changed and a new key was not placed in the fire department key box. If you have a "Knox Box" and you change lock's you need to notify the FD; • Firefighters responded to a report of a missing child in the northwest part of the city, fortunately the child was rapidly found and returned to the parents. Happy endings always put a smile on the responders face-, 1 Firefighters responded to a report that a person drove into a restaurant located in the northwest part of the city. The incident turned out to be a vehicle struck the building and then the vehicle was hit by two other vehicles; Firefighters responded to a "heavy" gas smell in a residential property located in the northeast part of the rural district when the owners returned from a vacation. The incident commander detected a very high level of gas in the house, shut the gas off and then proceeded to ventilated the house. Type of the Calls for the Month: City Type of Call Number Residential 4 Commercial /Industrial 5 Multi - Family 4 School 1 Grass 0 Medical 0 CO 2 Rescue 2 Haz -Mat Leak/Spill 1 Vehicle 0 Sky -Warn 0 Mutual Aid 0 Total 19 Structure Fires 0 Arson 0 • Page 2 Rural Type of Call Number Residential 0 Commercial / Industrial 0 School 0 Farm Building 0 Grass 1 Medical 2 CO 0 Rescue 4 Haz -Mat Leak/Spill 1 Vehicle 0 Mutual Aid 0 Total 8 Structure Fires 0 Arson 1 Training: Firefighters Trained on the Following Topics /Equipment: • Firefighters completed the annual OSHA required emergency vehicle driving exercise at the training site; • Firefighter continued to address radio communications, safety procedures, and response procedures. It is critical that we continue to simulate various response scenario's so our firefighters are well prepared when the event actually happens; Firefighters completed their annual competency test. This year the focus was on truck operations such as pumping from a hydrant, drafting water, and aerial ladder operation. Fire Prevention / Public Relations / Other Information: • Update on Equipment: The fire department is busy working on a scheduled project to sell two fire trucks and replace them with one "multipurpose" fire truck. This consolidation will ultimately reduce our fleet by three fire trucks since 1990, at an average cost of $450,000 dollars; one can estimate the savings over the years. This project is a "combined" venture between the city and rural district. The project is currently scheduled for completion in 2015 or at the most very early 2016; • Page 3 2. The 2001 Red Dodge Durango that I drive for work will no longer be seen. After 124,000 miles, many of them hard driving miles, the motor went out. The vehicle was scheduled to be replaced in 2014, so the purchase had to be moved up one season. The FD purchased a 2013 Red Dodge Durango as it was the low bid under the state purchasing contract. • The FD participated in 19 neighborhood parties on National Night Out. Unfortunately our firefighters were not able to spend quality time at each one due to the number of parties; • The FD assisted in a company during their flammability testing of new construction material in agricultural buildings at the training site; • The FD provided at no charge Rescue, 1St Aid and Fire control for the following events at the McLeod County Fair: 1. Auto Cross; 2. Four wheel races; 3. Demolition Derby Measurements: 1. Number of calls that required more than one engine, four firefighters and one IC in August: 7 2. Number of Calls that required investigation in August: 3 3. Estimated dollars "saved" in property (building and contents) by the fire department response for the month of August: $190,000 4. Estimated dollars "lost" in property (building and contents) to fire in August: • Page 4 MINUTES Regular Meeting — Hutchinson Utilities Commission Wednesday, July 31, 2013 Call to order — 3:00 p.m. Vice President Johnson called the meeting to order. Members present: Vice President Leon Johnson; Secretary Monty Morrow; Commissioner Anthony Hanson; General Manager Michael Kumm. Members absent: President Bordson; Commissioner Lenz; Attorney Marc Sebora. 1. Approve Minutes of: June 26, 2013 Regular and July 10, 2013 Special Meetings The minutes of the June 26, 2013 regular meeting and the July 10, 2013 special meeting were reviewed. GM Kumm presented a correction to the `Call to Order' time on the July 10, 2013 special meeting minutes to be 7:03 a.m. instead of 9:03 a.m. After discussion, a motion was made by Commissioner Hanson, seconded by Secretary Morrow to approve the June 26, 2013 regular and July 10, 2013 special meeting minutes, as amended. Motion was unanimously carried. 2. Approve Vice President Leon Johnson's Resignation Vice President Johnson presented his resignation which will be effective September 1, 2013. A motion was made by Secretary Morrow, seconded by Commissioner Hanson to approve Vice President Johnson's resignation. Motion was unanimously carried. (Resignation attached.) 3. Ratify Payment of Bills for June 2013 The June 2013 payables were discussed. A motion was made by Commissioner Hanson, seconded by Secretary Morrow to ratify the payment of bills in the amount of $5,283,859.26 (detailed listing in payables book). Motion was unanimously carried. 4. Approve Financial Statements /Budget Year to Date Jared Martig presented the June 2013 financial statements /budget year -to -date. After discussion, a motion was made by Vice President Johnson, seconded by Secretary Morrow to approve the financial statements /budget year -to -date. Motion was unanimously carried. 5. Approve HUC New Commissioner Matrix GM Kumm presented the final draft of the new commissioner matrix. Discussion held regarding HUC's use of the matrix as a tool to assist in the selection process of new commissioners. A motion was made by Vice President Johnson, seconded by Commissioner Hanson to approve the new commissioner matrix to use as a tool in the selection process. Motion was unanimously carried. (Matrix attached.) 6. Approve Delegation of Authority Policy GM Kumm presented the Delegation of Authority policy which was revised from a draft policy Attorney Sebora previously presented. After discussion, a motion was 1 made by Commissioner Hanson, seconded by Secretary Morrow to approve the Delegation of Authority policy. Motion was unanimously carried. (Policy attached.) 7. Approve Assignment of New Commissioner Subcommittee After discussion of suggested subcommittee members, a motion was made by Secretary Morrow, seconded by Vice President Johnson to assign President Bordson and Commissioner Hanson as members of the new commissioner subcommittee. Motion was unanimously carried. 8. Approve Assignment of 3M Generation Subcommittee After discussion of suggested subcommittee members, a motion was made by Vice President Johnson, seconded by Secretary Morrow to assign Commissioner Hanson and Secretary Morrow as members of the 3M generation subcommittee. Motion was unanimously carried. 9. Review Policies and Requirements Booklet GM Kumm presented the policies and requirements booklet, sections: • Deposit Requirement — Residential • Deposit Requirement — Commercial /Industrial • Terminating Electric /Natural Gas Service by Customer No changes recommended for sections: deposit requirements — residential and terminating electric /natural gas service by customer. After discussion regarding the changes to the deposit requirement - commercial /industrial, the Board tabled agenda #9 until the August regular commission meeting. 10. Approve Changes to Exempt and Non - Exempt Handbooks GM Kumm presented changes to the exempt and non - exempt handbooks, sections: • Definitions • Solicitation on Utility Premises • Employee Gifts • Flowers The change to section: definitions was to add "adult child" to the definition of Immediate Family, due to the change in law. The changes made to section: solicitation on utility premises was for clarification as it is what HUC currently practices. No recommended changes to section: employee gifts. The changes made to section: flowers were for clean -up purposes only. A motion was made by Commissioner Hanson, seconded by Secretary Morrow to approve the changes to the exempt and non - exempt handbooks. Motion was unanimously carried. (Changes attached.) 2 11. Approve Requisition #5482 — Replacement of Boiler Tubes at Plant 2 Steve Lancaster presented requisition #5482 — replacement of boiler tubes at plant 2. This project was not budgeted for 2013. The boiler deteriorated so needs to be replaced. After discussion, a motion was made by Vice President Johnson, seconded by Secretary Morrow to approve requisition #5482 — replacement of boiler tubes at plant 2 by Lund Machine Works. Motion was unanimously carried. (Requisition attached.) 12. Discussion on Purchasing Strategies for Unit 6 This agenda item was tabled until the August regular commission meeting due to Attorney Sebora's absence. 13. Communication from the City Administrator City Administrator Carter was absent. GM Kumm mentioned City Administrator Carter emailed him a resolution in regards to the PILOT which will be distributed to the PILOT committee for their review. The resolution will be presented at the next regular commission meeting for approval. 14. Division Reports Finance — Jared Martig Nothing to report Natural Gas — John Webster • Purchased natural gas for November 2013 through October 2022 at a fixed price of $4.96. • Update on City of Brownton project — o Attending construction meetings • As of today, all 2 inch pipe will be installed • Met with Sue Winter and Brownton help desk clerk to assist with billing and customer service process • Week of August 12 is expected service -to- customer date Business — Jan Sifferath • New Infinity.Link test system will be starting Monday, August 5. Electric — Steve Lancaster • The title 5 air permit for plant 1 is up for renewal. • MPCA visited plant 1 today and it went well. 15. Legal Update Attorney Sebora was absent. Unfinished Business • Discuss Separate Business Unit for Wholesale Business Nothing to report 3 • Discuss Pre -Pay for Natural Gas Nothing to report • PILOT Committee Recommendation Nothing to report New Business GM Kumm reported he and John Webster met with Great Minnesota Gas last week regarding a potential capacity sale. GM Kumm also reported there will be two electric distribution projects taking place in the next year; Energy Park and Harmony River, at a cost of approximately $150,000. HUC will flip other projects to cover this cost. There being no further business, a motion was made by Commissioner Hanson, seconded by Secretary Morrow to adjourn the meeting at 3:44 p.m. Motion was unanimously carried. ATTEST: Leon Johnson, Vice President 11 Monty Morrow, Secretary Hutchinson Public Library Board Minutes Monday, July 22, 2013 Present: Roger Vacek, Mary Christensen, Steve Bailey, Dianne Wanzek, Jon Ross, Stacey Nass and Pam Dille, Ex- Officio. Absent: Julie Lofdahl Roger Vacek called the meeting to order. The minutes from the June meeting were reviewed. Mary Christensen motioned to approve the minutes. Motion passed. Roger Vacek reviewed the PLS List of Accomplishments from the last PLS Board meeting. (See document provided by Roger listing "Accomplishments and Goals ".) $7800 remains in the McLeod County Legacy budget from last year. Old Business: 1. Public Health for Libraries — Pam announced that the grant was not awarded to the Hutchinson Public Library. No definite reason was given as to why the grant was not awarded. 2. Summer Reading Program Update- 467 children have now signed up for the reading program. The support from local businesses has been generous in the form of prizes for the readers. Thursday morning reading in the park has been well attended. New Business: 1. McLeod County Legacy Program The Fort Snelling grant has been approved. At this point the plan will be for 2 buses (110 passengers) to go to Fort Snelling. Four libraries will be sharing the two buses. Publicity for the event will begin around the end of July. The Fort Snelling trip will be on September 7th and the buses will leave at approximately 8:00 am. The buses will leave Fort Snelling at approximately 2:00 pm. Bus fee and admission are paid for by the grant but travelers will be expected to bring their own refreshments and lunches. The cost per person that the grant will cover is $9.00 /adult and $5.00 /child. The cost for the bus is $575.00 /bus for a total of $1150.00. Participants must sign waivers before leaving for Fort Snelling. 2. Historical Craft Workshop: Civil War Sewing Kit On Monday, September 30th, the Minnesota History Players will work with participants to assemble Civil War era sewing kits. This event will be open to 5 -20 participants. Pam will check into a few other event options that the Minnesota History Players present as they have a list of program options. She will also check into other programming options. 3. Julie Jensen — Author Visit Julie's Hutchinson book has been released and can be purchased at the McLeod County Historical Society for $24.00. The book is a pictorial history of Hutchinson. Mary Christensen offered to donate her copy of the book to the library. 4. Minnesota Authors — Send author ideas for this winter to Pam John R. Kess — Litchfield Author - John self - published his book "Elly's Ghost" on Amazon. It was discussed that he may be an interesting author to bring in to present information on how to self - publish and to discuss his book. 5. 2014 Budget Requests — The library is requesting a 3% increase over the 2013 budget from the city of Hutchinson and a 3% increase from McLeod County. In 2013 the library received a 3% increase from the city but no increase from the county. 6. New Website Link - http : / /www.hutchinson.lib.mn.us / 7. Book Donations — Books may be donated to the library in memory of or in honor of someone with a plaque placed in the front of the book designating who the book was donated in memory /honor of. Diane Wanzek suggested having an article in the local paper regarding this to encourage citizens of Hutchinson to donate books. Next Meeting date is Monday, August 26th at 4:30 Roger Vacek adjourned the meeting at 5:30. Notes submitted by Stacey Nass 07/30/13. 410 5th St SW, Willmar, MN 56201 / 320.235.6106 May 21, 2013 As requested by the PLS Board, Laurie and I have put together this short list of accomplishments and proposed goals. Accomplishments for the period from July 1, 2012 to June 30, 2013 • $42,000446,000 savings in administrative personnel costs • Projected annual income of $60,000+ from Bremer investments versus interest income • Increased almost all local library budgets for FY2013 with entire increases being spent on local services and programs • IT infrastructure upgrades, including email server, web server, etc. • Continued implementation of policy on consolidated head librarian position, creating middle management savings in local library budgets • Managed significant privacy policy challenge, worked with Policy Committee, and concluded with a unanimous decision on revised policy by PLS Board • Obtained significant increase in Legacy funds for PLS library programming • Library website development and upgrades for consistent public image and access • Expansion of electronic resources (eBooks and Zino) from administrative savings Goals for the period from July 1, 201$ to June 30, 20 A • Manage and provide leadership for the creation of a new strategic plan for PLS • Implement major Sierra upgrade automated library system • Complete current PLS IT and information services upgrades and plan for next system- wide technology upgrades and computer replacements and options • Review administrative and management positions and structure to prepare for retirements and staff changes, both in PLS administration and in head librarian positions. • Conduct an all-staff training day EDA Board Meeting Members present in bold. Main Conference Room — City Center 11 :30 AM Friday, July 24th, 2013 MEETING MINUTES Members Tim Ulrich Steve Jansick Mary Christensen Mike McGraw Staff Lee Miller, EDA Director Nate Keller, ERA Assistant Andy Reid, City Controller Daron Vanderheiden Chad Czmowski Jonny Block Liaison Mary Hodson, Chamber President Call to order- The meeting was called to order at 11:33 AM. Il. Approve Agenda — No Action 111. Review Meeting Minutes A. June 281h Board of Directors M /S /P: Block, McGraw to approve the minutes as written; passed unanimously. B. June 19th Finance Team M /SIP: McGraw, Hodson to approve the minutes as written; passed unanimously. IV. Review June EDA f=inancial Statements — Andy Reid A. Cash available in operations is $183,629. B. $56,736 is reserved (proceeds from Warrior land sale) and $121,586 is unreserved. C. The Economic Development Loan fund has $1,196,172 in cash available. D. $100,000 is reserved (Luce Line Trail contribution) and $125,000 for Depot/ farmers market costs. $971,172 is unreserved. E. Loan payments for the month were $10,285 F. Downtown revolving loan fund has $208,140 in cash available; $165,202 is unreserved, loans totaling $754,187 and $201,329 in capital assets (Cenex & Wright property). G. Loan repayments totaled $8,912 for the month. H. MIF Loan fund has $210,001 in cash available and loans receivable of $326,896 (NuCrane). I. Loan payments for the month were $5,640. M /SIP: Jansick, Vanderheiden to approve the financials as presented; passed unanimously. V. Director's Report A. JUMPSTART DOWNTOWN —$10,000 check was disbursed for 1st place winner. Second place winner will receive a check for Sign and Awning Grant which will be disbursed later this week. B. Depot Marketplace Redevelopment: First layer of blacktop will be laid on July 25th. Sidewalk construction is expected to start week of July 28th. Final bathroom design for the Depot was approved. C. Luce Line Trail Resolution: Request came in from McLeod County asking for a Resolution of Support. M /S /P: McGraw, Block to approve request for Resolution upon correction of typo; passed unanimously. D. Program guideline review: Staff went over proposed changes and suggestions for all of the EDA's programs. Board recommended the proposed changes to be reviewed by the Finance Team. VI. Grant and Loan Applications Sign & Awning Grant Program Cindy Gregorius 4 North Main St. $862 MIS /P: Vanderheiden, Jansick to approve grant request; passed unanimously. Amy Albrecht 2 North Main St. $862 MIS /P: Christianson, Czmowski to approve grant request; passed unanimously. Gislason & Hunter 16 Washington Ave W $1,510.39 MIS /P: Czmowski, McGraw to deny request due to request not fitting guidelines and criteria; passed unanimously. Commercial Rehabilitation Loan Pro-gram $19,500 Katherine & Anthony Prellwitz 8 Main St. N MIS /P: Vanderheiden, Block to approve loan request; passed unanimously. VII. Chamber Update — Chamber is accepting applications to Leadership institution. Leadership starts September 19'h and 20th VIII. Other Business- Staff talked about a couple new companies who have inquired about building space. EDA director to attend IEDC training July 31St- August 2nd IX. Set Next meeting — August 28th, 2013 11:30 AM X. Adjourn- 12:23 PM Respectfully Submitted, Nate Keller EDA Intern