No preview available
cp06-14-2016HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, JUNE 14, 2016 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: City policy and practices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 5:30 P.M. (a) Approve the Council agenda and any agenda additions and/or corrections 2. INVOCATION — Peace Lutheran Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY PUBLIC COMMENTS (T is is an opportunity or members of the public to address the City Council on items not on the current agenda. Ifyou have a question, concern or comment, please ask to be recognized by the mayor state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of May 24, 2016 (b) Council Workshop of May 24, 2016 CONSENT AGENDA (The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed.) 7. APPROVAL OF CONSENT AGENDA I (a) Consideration for Approval of Riverside Church Event on June 22, 2016 (b) Consideration for Approval of Agreements with Independent School District 423 i. Grounds Maintenance ii. Use of Facilities iii. Park Elementary Lease (c) Consideration for Approval of Resolution No. 14571 — A Resolution to Sell at Auction Surplus Police Department Property (d) Consideration for Approval of Improvement Project Change Order No. 3 - Letting No. 1, Project No. 16-01 (2016 Pavement Management Program) (e) Consideration for Approval of Setting Public Hearing Date to Consider Comments and Input on the City of Hutchinson Storm Water Pollution Prevention Plan (f) Consideration for Approval of Purchase of Bobcat Toolcat within Wastewater Department CITY COUNCIL AGENDA JUNE 14, 2016 (g) Consideration for Approval of Issuing Temporary Liquor License to RiverSong Music Festival on July 15 & 16, 2016 (h) Consideration for Approval of Issuing Temporary Liquor License to Sustainable Farming Association for Minnesota Garlic Festival on August 13, 2016 (i) Consideration for Approval of Term Sheet with Highfield Apartments of Hutchinson, LLC 0) Claims, Appropriations and Contract Payments PUBLIC HEARINGS (6:00 P.M.) 8. APPROVE/DENY RESOLUTION NO. 14573 — RESOLUTION ADOPTING MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND THE PROPOSED ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 4-17 purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. Includes like monthly or annual reports and communications from other entities.) 9. REVIEW OF REVISIONS TO THE CITY OF HUTCHINSON TELECOMMUNICATIONS ORDINANCE AND SETTING PUBLIC HEARING DATE UNFINISHED BUSINESS 10. APPROVE/DENY ORDINANCE NO. 16-758 —AN ORDINANCE APPROVING REVISIONS TO SECTIONS OF THE HUTCHINSON CITY CHARTER AS RECOMMENDED BY THE CHARTER COMMISSION 11. APPROVE/DENY ORDINANCE NO. 16-760 — AN ORDINANCE TO REZONE PROPERTY AT 1550 SHERWOOD STREET SE TO R-2 (MEDIUM DENSITY RESIDENTIAL) FROM R-1 (SINGLE FAMILY RESIDENTIAL) AS REQUESTED BY HAZEL SITZ, PROPERTY OWNER (Second Reading and Adoption) NEW BUSINESS 12. APPROVE/DENY 2016 STATE AMATEUR BASEBALL TOURNAMENT SUPPORT REQUEST 13. APPROVE/DENY ISSUING MASSAGE LICENSE TO MARIA HAACK OF MARIA' S HAIR SALON 14. APPROVE/DENY NON -WAIVER OF TORT LIABILITY LIMITS FOR GENERAL LIABILITY 15. APPROVE/DENY PROJECT AWARD FOR 2016 HUTCHINSON DOWNTOWN SIGNAGE PROJECT — LETTING NO. 8, PROJECT NO. 16-08 a. Resolution No. 14574 - Accepting Bid and Awarding Contract 2 CITY COUNCIL AGENDA JUNE 14, 2016 16. APPROVE/DENY RESOLUTION NO. 14572 — RESOLUTION ADOPTING GARBAGE/RECYCLING/COMPOST POLICY 17. APPROVE/DENY RESOLUTION NO. 14575 — RESOLUTION AMENDING 2016 FEE SCHEDULE GOVERNANCE (The purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items.) 18. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Parks, Recreation Community Education Board Minutes from March and April 2016 MISCELLANEOUS 19. STAFF UPDATES 20. COUNCIL/MAYOR UPDATE ADJOURNMENT HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, MAY 24, 2016 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many decisions regarding agenda items are based upon this information as well as: City policy and practices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER— 5:30 P.M. Mayor Gary Forcier called the meeting to order. Members present were Chad Czmowski, Bill Arndt, Mary Christensen and John Lofdahl. Others present were Matt Jaunich, City Administrator, and Marc Sebora, City Attorney (a) Approve the Council agenda and any agenda additions and/or corrections Matt Jaunich, City Administrator, noted that Item No. 11 can be pulled from the agenda. The City received information from the Department of Revenue indicating that the massage license holder, Liz Lindemeier, has provided adequate information to them and they are no longer requesting that her license be revoked. Motion by Lofdahl, second by Christensen, to remove Item 11 from the agenda. Motion carried unanimously. 2. INVOCATION — Christ the King Lutheran Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY PUBLIC COMMENTS is is an opportunity or members of the public to address the City Council on items not on the current agenda. Ifyou have a question, concern or comment, please ask to be recognized by the mayor state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance ofthe meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals.) 5. CITIZENS ADDRESSING THE CITY COUNCIL Amy Wilde, candidate for District 18 Senate, presented before the Council. Ms. Wilde stated she is visiting cities within the district to identify what current issues they have and how she can assist as a candidate and potential legislator. 6. APPROVAL OF MINUTES (a) Regular Meeting of May 10, 2016 (b) Special Meeting of May 12, 2016 Motion by Christensen, second by Lofdahl, to approve minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed.) 7. APPROVAL OF CONSENT AGENDA I (a) Consideration for Approval of Construction Project Management Services Agreement with CITY COUNCIL MINUTES MAY 24, 2016 Signature Aquatics (b) Consideration for Approval of Issuing Short -Term Gambling License to Voiture 414 on November 22, 2016, at VFW Post 906 (c) Consideration for Approval of Resolution No. 14562 — Resolution Calling for a Public Hearing on the Proposed Adoption of a Modification to the Development Program for Development District No. 4 and the Proposed Establishment of Tax Increment Financing District No. 4-18 and Adoption of a Tax Increment Financing Plan (d) Consideration for Approval of Items for Southwind Fifth Addition i. Resolution No. 14564 — Resolution Adopting Findings of Fact and Reasons for Approval of a Lot Split at 1550 Sherwood Street SE ii. Resolution No. 14565 — Resolution Adopting Findings of Fact and Reasons for Approval of Southwind Fifth Addition Preliminary and Final Plat (e) Consideration for Approval of Items for Hutchinson High School i. Resolution No. 14566 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit and Site Plan to Allow Construction of an Addition at Hutchinson High School Located at 1200 Roberts Road SW ii. Resolution No. 14567 — Resolution Adopting Findings of Fact and Reasons for Approval of Variance Application to Increase the Allowable Building Height for Construction of Hutchinson High School Addition Located at 1200 Roberts Road SW (f) Consideration for Approval of Resolution No. 14568 — Resolution Approving Sale at Auction of Surplus Property (g) Consideration for Approval of Items for Caribou Coffee/Einstein Brothers Bagels i. Resolution No. 14569 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit and Site Plan to Allow Construction of a Caribou Coffee/Einstein Brothers Bagels Located at 1100 Highway 15 South ii. Consideration for Approval of Resolution No. 14570 — Resolution Adopting Findings of Fact and Reasons for Approval of a Variance Application to Decrease the Building and Parking Lot Setbacks Located at 1100 Highway 15 South (h) Appointment of Renee Kotlarz to HRA Board to August 2021 (i) Consideration for Approval of Issuing Transient Merchant License to Philip Westby of the Country Stop to Operate a Produce Stand Located in Plaza 15 Parking Lot (j) Claims, Appropriations and Contract Payments Item 7(g) was pulled for separate discussion. Motion by Czmowski, second by Lofdahl, to approve consent agenda with the exception of Item 7(g). Motion carried unanimously. 7(g) — Council Member Christensen asked if any soil work has to be done due to this lot previously being a gas station. Dan Jochum, Planning Director, noted that everything has been 2 CITY COUNCIL MINUTES MAY 24, 2016 approved by the MPCA. Motion by Christensen, second by Arndt, to approve Item 7(g). Motion carried unanimously. PUBLIC HEARINGS (6:00 P.M.) 8. CONSIDERATION OF ORDINANCE NO. 16-758 —AN ORDINANCE APPROVING REVISIONS TO SECTIONS OF THE HUTCHINSON CITY CHARTER AS RECOMMENDED BY THE CHARTER COMMISSION (Set Second Reading and Adoption for June 14, 2016) Public hearing was opened at 6:03 p.m. Marc Sebora, City Attorney, presented before the Council. Mr. Sebora reminded the Council that earlier this year, the Charter Commission had forwarded to them amendments to eight sections of the City Charter. All of these amendments were encapsulated in one ordinance. The Council was in favor of all of the amendments except for amendments to two of the sections, therefore the Council had to reject the entire ordinance because it could not extract sections from the Charter. Six of those amendments are back before the Council. Motion by Czmowski, second by Christensen, to close public hearing. Motion carried unanimously. Motion by Lofdahl, second by Christensen, to set second reading and adoption of Ordinance No. 16- 758 for June 14, 2016. Motion carried unanimously. COMMUNICATIONS REQUESTS AND PETITIONS (The purpose oJ this portion oJ the agenda is to provide the ounci with information necessary to craft wise policy. Includes items like monthly or annual reports and communications from other entities.) 9. REVIEW OF CHARTER COMMISSION RECOMMENDATION PERTAINING TO ORDINANCE NO. 16-755 — AN ORDINANCE ADOPTING REVISIONS TO SECTION 2.04 OF HUTCHINSON CITY CHARTER — FORM OF GOVERNMENT (MAYORAL TERMS) Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that earlier this year the City Council had adopted an ordinance changing mayoral terms from two years to four years. The ordinance was then forwarded to the Charter Commission for their review and recommendation as required by state statute. The Charter Commission met on April 27, 2016, and voted not to accept the proposed Charter amendment and instead keep the language as is with a four- year mayoral term. If the Council proceeds with the proposed Charter amendment as they adopted, Mr. Sebora suggests that the Council approve ballot language in the near future that can be forwarded to the County Auditor for ballot preparation. Council Member Arndt commented that the Charter Commission has voted three times to keep two- year mayoral terms. He does not see any issue with the current two-year system. Council Members Czmowski, Christensen and Lofdahl noted they would like to see a question on the November ballot for the voters to decide on this matter. Council Member Lofdahl commented on benefits of having a four-year mayoral term, such as building relationships with legislators. Council Member Arndt commented that the people get to decide every two years on the mayor now with the election. Mayor Forcier noted he is in favor of the voters deciding this item as a ballot question at the upcoming election. Staff will prepare ballot language for the Council to consider. Motion by Lofdahl, second by Christensen, to respectfully reject the Charter Commission's recommendation and move forward with a ballot question on four-year mayoral terms. Roll call vote: Christensen — aye; Lofdahl — aye; Arndt — nay; Czmowski — aye; Forcier — aye. Motion carried 4 to 1. CITY COUNCIL MINUTES MAY 24, 2016 UNFINISHED BUSINESS NEW BUSINESS 10. APPROVE/DENY ORDINANCE NO. 16-760 — AN ORDINANCE TO REZONE PROPERTY AT 1550 SHERWOOD STREET SE TO R-2 (MEDIUM DENSITY RESIDENTIAL) FROM R-1 (SINGLE FAMILY RESIDENTIAL) AS REQUESTED BY HAZEL SITZ, PROPERTY OWNER (WAIVE FIRST READING, SET SECOND READING AND ADOPTION FOR JUNE 14, 2016) Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that this item is related to the Southwind Fifth Addition project. This project is slated for eight twin homes and therefore needs to be rezoned from R1 to R2. Motion by Czmowski, second by Arndt, to set second reading and adoption of Ordinance No. 16- 760 for June 14, 2016. Motion carried unanimously. 12. APPROVE/DENY RESOLUTION NO. 14558 — RESOLUTION TRANSFERRING BOARD OF APPEAL & EQUALIZATION TO MCLEOD COUNTY Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich reminded the Council that at the Board of Appeal and Equalization held in April the Council noted they would be in favor of transferring the board of appeal and equalization authority to an open book format overseen by the County Assessor's Office. The Resolution before the Council is for a three-year open book period. The open book process is proposed to take place at the County Assessor's Office. Mr. Jaunich informed the Council that he did receive a request from a resident that the open book process take place within the City. The Council held a discussion on holding the process at City offices versus the County Assessor's Office and ultimately determined that the open book process will take place at the County Assessor's Office. Mr. Jaunich noted the City would still receive an annual report on market sales as has previously been provided. Mr. Jaunich noted again the Resolution is for a three-year period and if things need to be adjusted after that, it certainly could. Motion by Czmowski, second by Christensen, to approve Resolution No. 14558. Roll call vote was taken: Christensen — aye; Lofdahl — aye; Arndt — nay; Czmowski — aye; Forcier — nay. Motion carried 4 to 1. 13. APPROVE/DENY RESOLUTION NO. 14563 — APPROVING A DEBT MANAGEMENT POLICY Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich reminded the Council that a workshop was held last month regarding revising the City's debt management plan. The proposed policy would replace the current policy in place which increases the annual debt limits from $2.2 million to $2.6 million. Adoption of the policy would cause a tax increase that would go into effect in 2023 to help pay for the adjustment. The debt levy would need to be increased from 2023 to 2032 at an average annual increase of about 1.7%. Approval of this policy would affect .19 CITY COUNCIL MINUTES MAY 24, 2016 projects beginning next year. Motion by Czmowski, second by Lofdahl, to approve Resolution No. 14563. Motion carried unanimously. 14. APPROVE/DENY SETTING COUNCIL WORKSHOP FOR JULY 12, 2016, TO REVIEW THE 2015 AUDITED FINANCIAL REPORT Motion by Christensen, second by Lofdahl, to set Council workshop for July 12, 2016, at 4:15 p.m. to review 2015 audited financial report. Motion carried unanimously. Motion by Arndt, second by Christensen, to set public meeting for June 3, 2016, at 11:00 a.m. in Library Square for Council Members to attend Dairy Days. Motion carried unanimously. GOVERNANCE (The purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items.) 15. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS �a) Hutchinson Public Library Board Minutes from April 25, 2016 b) Pioneerland Library System 2015 Year in Review �c) City of Hutchinson Financial Reports and Investment Report for April 2016 d) Hutchinson Housing & Redevelopment Authority Board Minutes from April 19, 2016 �e) Planning, Zoning, Building Department First Quarter Report f) Planning Commission Minutes from April 19, 2016 MISCELLANEOUS 16. STAFF UPDATES John Olson — John Olson, Public Works Manager, informed the Council that the first mosquito spray of the season is scheduled for tomorrow. Mr. Olson provided project updates on the street improvement proj ects. Matt Jaunich — Mr. Jaunich noted that on Memorial Day City Offices will be closed. Mr. Jaunich also provided a candidate filing update: Gary Forcier has filed for Mayor, Chad Czmowski has filed for Seat 4 and one other individual has filed for Seat 3. Filing closes on May 31t . Mr. Jaunich also noted that the City received today the signed agreement from Ridgewater. Mr. Jaunich noted that he has received a request from a citizen that the Council consider adding a second compost cart. 17. COUNCIL/MAYOR UPDATE Mary Christensen — Council Member Christensen asked John Olson if he has heard anything further from NuTelecom on the request they made to the City last year regarding putting wi-fi hotspots on the City's light poles around Library Square. Matt Jaunich noted that several inquiries have been made to the City from various vendors for various pieces of equipment. Staff is putting together an ordinance to address these issues. Bill Arndt — Council Member Arndt reminded drivers to have their headlights on for safety when it is foggy and rainy. Gary Forcier — Mayor Forcier asked residents to adopt a drain and make sure the storm drains are CITY COUNCIL MINUTES MAY 24, 2016 cleaned out and not plugged up with debris. ADJOURNMENT Motion by Arndt, second by Lofdahl, to adjourn at 6:25 p.m. Motion carried unanimously. R HUTCHINSON CITY COUNCIL 2017 BUDGET KICKOFF MINUTES TUESDAY, MAY 24, 2016 - 4:00 PM CITY CENTER — COUNCIL CHAMBERS 1. Call to Order Mayor Forcier called the workshop to order at 4:00 p.m. Members present included Mary Christensen, Bill Arndt, Chad Czmowski and John Lofdahl. Others present were: Matt Jaunich, City Administrator, and Andy Reid, Finance Director 2017 BUDGET KICKOFF REVIEW 2. 2017 Budget Kickoff Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that today's workshop is to begin the 2017 budgeting season. Mr. Jaunich noted that setting the annual budget is one of the biggest policy decisions of the City Council. The City's budget documents drive the work of the city and are the forces behind achieving the City's Mission Statement. Mr. Jaunich reviewed the City's mission statement, the six core areas of focus and five long-term goals the Council should consider every budget season. Those goals include: 1. What should future tax levies look like? 2. What levels of services should the City perform and provide in the future? 3. What is an acceptable level of debt? 4. What is our level of investment in technology and equipment, and what period of payback is acceptable? 5. What are our future infrastructure needs (roads, utilities, buildings, etc.) and how are we going to pay for them? The purpose of today's workshop is to review the budget calendar that has been established. Review historical data as well as items that staff has identified as items/concerns that need to be addressed. Staff would also like to get direction from the Council on what they would like to see during the 2017 budget preparation season. Mr. Jaunich reviewed tax rate comparisons of Hutchinson with other McLeod County cities as well as with other regional center city rates. Hutchinson is the second lowest in the county and ranks the second highest amongst regional centers. Mr. Jaunich reviewed this data with data from 2006 with Hutchinson's ranking not changing within the county nor amongst regional centers. Mr. Jaunich spoke about the reasons why tax rates are what they are — mainly due to the homestead credits being replaced with an exclusion. A credit is a reduction in the amount of taxes due and an exclusion is a reduction in the amount of value subject to tax. Mr. Jaunich also reviewed Hutchinson's tax levy history over the last ten years as well as its market value history and tax capacity history. Mr. Jaunich reminded the Council that the City's tax rate is determined by its tax levy and tax capacity and tax capacity is determined by its market value. Over the past ten years, the City's market values have taken a hit and are about 2.6% lower than what it was in 2006. The 2012 Homestead Market Value Exclusion had a negative effect on the City's taxable market value. The Market Value Exclusion ended up reducing the City's taxable market value, increasing the tax rates. Mr. Jaunich then reviewed historical budget numbers. Mr. Jaunich then spoke of some very preliminary issues that the Council will need to consider when establishing the 2017 budget. These include wages and benefits expected to increase by 4%, removal of classification study, and perhaps an overall 2.3% increase in expenses. The current look at the budget includes a 0% levy increase, PILOT payment from HUC showing an 8.6% decrease, transfers -in from Hutchinson Health increasing 5%, charges for service having a .7% increase and having al% tax levy increase equal to $45,690. Mr. Jaunich also spoke about things to keep in mind when reviewing the general fund. These include needs for increases/decrease in program charges; enterprise fund transfers to the general fund, police staff turnover and its budget impact, staffing levels at Police and Liquor, permanent funding source for HSA Employer contributions, hospital lease payment, analysis of certain line item projects, funding of wages and benefits, payroll allocations, Event Center/Senior Center deficit, certain contracts in need of an analysis, continued discussion on general staffing levels and service level needs/wants, facilities maintenance fund, determine actual PILOT payment, LGA allocation policy. Mr. Jaunich then reviewed the debt management plan and the new target debt levy of $2.6 million. There will be a 1% debt levy increase in 2016 and no other increase will be needed until 2023 at which time a 1.5% increase will be seen. The proposed plan includes financing for heavy equipment in 2017-2021 and moves annual project costs from $1.5 million to $1.9 million. Mr. Jaunich also reviewed 2016-2020 CIP Projects as well as other major projects scheduled in 2017. Mr. Jaunich also noted something to think about is expanding the footprint of City Center as there are two lots for sale directly to the south of the City Center building. Mr. Jaunich then reviewed the various City fund balances. Mr. Jaunich noted that the City is fiscally healthy. Mr. Jaunich also reviewed the City's use of LGA funds. Mr. Jaunich feels that perhaps a discussion should be held on the allocation of LGA to the capital fund. Mr. Jaunich also reviewed a list of staff concerns or items in need of being addressed. These include: establishment of a funding plan for the replacement of playground equipment, full-time vs. part- time staffing levels at liquor store, staffing levels at police department, operating budget for new aquatic center in 2017, long-term funding sources for heavy equipment and employer contribution to HSA, rising city subsidy at Event Center and Senior Center, more direct LGA Policy, use of hospital money, growth of salaries & benefits, finishing financial policies, long- term plan on transfers from HUC, central budgeting for facility maintenance, parks/school grounds maintenance contract, replacement on SCBA packs for fire department. Items that Mr. Jaunich would like the Council's thoughts and ideas on include the tax levy goal for 2017, any services that they would like to see provided and/or increased/decreased, is there a specific project/item they would like to see budgeted for and/or done or any fee/rate/transfer changes to look at. Czmowski suggested a donation fund for establishing a dog park. Czmowski suggested using the skate park as a model. Lofdahl spoke about a bus transportation service. Dakota Rail is now considered a regional project which opens up legacy funds. 3. Adjournment Motion by Lofdahl, second by Arndt, to adjourn the workshop at 5:20 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Matthew Jaunich Mayor City Administrator HUTCHINSON CITY COUNCIL c'=y-fAa� Request for Board Action 7AL =-ft Agenda Item: Riverside Church Event Department: Police LICENSE SECTION Meeting Date: 6/14/2016 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: No BACKGROUND/EXPLANATION OF AGENDA ITEM: Riverside Church are requesting the rental of Library Square including the closing 1st Ave SE between Main St and Hassan St again this year for an event on Wednesday Night June 22nd. They have invited MN Adult & Teen Challenge to come and speak/Sing along with a bounce house and climbing wall. These activities will be on the 1st Ave SE. The event is open to the public. The event starts at 6:30 pm but are requesting the street be closed at 4:00 pm to allow time to set up. The Park has already been reserved through the Parks Dept. and the Hutchinson Police have reviewed the plan. We look forward to working with Riverside Church again this year. Jessie Peters Office Admin./Asst. to Dr. Lee Allison Riverside Church 320-587-2074 (Phone) 320-587-7407 (Fax) www.riversidehutch.org BOARD ACTION REQUESTED: Recommend Approval 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: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Facility Use and Joint Grounds Maintenance Agreements Department: PRCE LICENSE SECTION Meeting Date: 6/14/2016 Application Complete N/A Contact: Dolf Moon Agenda Item Type: Presenter: Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Included in the Council packet are the Facility Use and Joint Grounds Maintenance agreements for 2016-2018. The agreements with ISD 423 provide the PRCE Department in excess of $292,000 over the two year agreement. Both parties have reviewed the agreements and recommend approval. These agreements will mark the 40th year of High School Hockey in Burich Arena and the 20th year of Joint Maintenance at their conclusion. BOARD ACTION REQUESTED: I would recommend approving both agreements. Fiscal Impact: $ 292,000.00 Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: AN AGREEMENT BETWEEN THE CITY OF HUTCHINSON, MINNESOTA AND HUTCHINSON INDEPENDENT SCHOOL DISTRICT #423 RELATING TO THE ESTABLISHMENT AND OPERATION OF A JOINTLY SPONSORED GROUNDS MAINTENANCE PROGRAM THIS AGREMENT entered into this 1st day of July, 2016, between the CITY OF HUTCHINSON, A MINNESOTA MUNICIPAL CORPORATION ("City") and INDEPENDENT SCHOOL DISTRICT NO. 423, MCLEOD COUNTY, MINNESOTA, A MINNESOTA MUTUAL COPORATION ("School District"). WHEREAS, the School District is organized for the purpose of providing public school education and does provide extra curricular activities for which it maintains expenses; playgrounds, ball fields and practice facilities and has adjacent to its buildings, parking areas and sidewalks that it maintains; and WHEREAS, the City is authorized to and does provide and maintain parks, recreation areas, parking areas and sidewalks adjacent to the building that it owns; and WHEREAS, the School District and the City (collectively called the "Sponsors") within their respective powers, recognizing that through economies of scale there will be cost savings to both the City and School District through a joint agreement to maintain recreation areas and they desire to cooperate in the establishment of operation of a Joint Grounds Maintenance Program. NOW, THEREFORE, the Sponsors hereby agree with each other as follows: PURPOSE OF AGREEMENT: The Sponsors shall severally, jointly and cooperatively, pursuant to the broad authority contained in Minnesota Statute §471.59 and other applicable statutes and their respective express and implied powers, establish and operate a Joint Grounds Maintenance Program. The term Joint Grounds Maintenance Program is defined, for the purposes hereof to mean the following: A program of shared equipment, materials and labor between the Sponsors to more effectively and cost efficiently maintain the parks and recreation areas of each of the Sponsors and the parking areas and sidewalks adjacent to buildings owned by the respective Sponsors. 2. To plan and establish a Grounds Maintenance Program for the green areas of the Sponsors to implement a program mowing; fertilization; herbicide/pesticide treatment; tree pruning; watering; aeration/top dressing; stripping/demarcation of lots and fields; and sign installation. (Parking lot paint by District) 3. To plan and establish a Program for snow and ice removal from the parking lots and sidewalks adjacent to the buildings of the Sponsors and to establish a schedule or time table for such snow and ice removal. (Snow hauling by District) 4. To plan and establish a Maintenance Program of the athletic fields and playgrounds of the Sponsors, including tennis courts, baseball/softball fields, and soccer/football fields, which are the real property of the respective Sponsors. (Playground replacement parts by District) 5. Real property, equipment, supplies and employees furnished by either party hereto shall remain the property and/or employees of the party so furnishing them, except that nothing herein shall be construed as to prohibit the purchase of grounds maintenance supplies or equipment with the use of joint funds, if so agreed by the parties. LIABILITY INSURANCE: Each sponsor shall maintain public liability insurance coverage upon its public resources, including its land, buildings, machinery and employees in an amount at least as great as any statutorily imposed exposure. Employees of, and machinery and materials owned by the respective sponsors shall be deemed to remain the employee and resource of that Sponsor for insurance and liability purposes. The Sponsors agree to obtain a separate liability insurance policy to insure the Joint Grounds Maintenance Program, if necessary. SUPERVISION OF PROGRAM: All activities of the grounds Maintenance Program shall be under the direct supervision of the Superintendent of Schools and the City Administrator. LENGTH OF AGREEMENT AND WITHDRAWL: This Agreement shall remain in force and effect for a period of two (2) years from July 1, 2016 thru June 30, 2018. However, this Agreement may be terminated by either party hereto by written notice to the other party with at least one (1) year notice prior to the date of desired termination. CONSIDERATION: The School District agrees to provide a cash payment to the City of Hutchinson in the amount of $78,440.00 annually for the term of this Agreement in consideration for the ground program services identified within the Agreement and provided by the City of Hutchinson. This consideration shall be reviewed annually as part of the budget development process. 2 ACCOUNTING: Each party to this Agreement agrees to make all financial documents available for inspection by the other, if requested, with a three (3) day written notice. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by the respective duly authorized officers of the City Council of Hutchinson, Minnesota and School Board of Independent School District No. 423. INDEPENDENT SCHOOL DISTRICT NO. 423 CITY OF HUTCHINSON McLeod County, Minnesota McLeod County, Minnesota School Board Chairperson Superintendent of Schools Attest: School Board Clerk Mayor City Administrator Finance Manager Dated: Dated: USE OF FACILITIES HUTCHINSON SCHOOL DISTRICT AND CITY OF HUTCHINSON 2016-2018 Recreation Center It shall be the policy of the School District and the City of Hutchinson to rent the Recreation Center Building at a cost of $40 per hour and Burich Arena at $60 per hour for dry floor activities with the rentee providing a minimum of one building supervisor. Roberts Park/Linden Park (Softball) Estimate 40 days of use, which includes 40 softball games — 10 "A" squad games, 10 "JV squad games, 10 "C" squad games and 10 middle level games As soon as weather permits, usually the first week in April, practice is moved outdoors to Linden and Roberts Park. The above-mentioned 40 days does not account for any inclement weather cancellations. It shall be the policy of the School District and the City of Hutchinson that the school district will rent Roberts/Linden Park for $2,800 per softball season for the above-mentioned use. This cost is based on 40 days X 6 fields. This includes material, labor and use of City equipment. VMF Field (Baseball) Use of Veteran's Memorial Field shall be $1,400 for the season, which includes games and practices. General Guidelines When use of facilities or cancellation is needed because of inclement weather, a contact must be made by noon to the city's PRCE Director by the School Activities Director, and facilities can be used only upon approval of the above-mentioned directors. Renters shall always follow the approved time schedule. Renters shall assist in setup for activities or for the next activities. Renters shall leave the facilities in good condition. The renter's supervisor of the activity must stay until all participants have left the building including emergency situations. LEASE AGREEMENT HUTCHINSON SCHOOL DISTRICT Burich Arena THIS AGREEMENT, made this first day of July 2016 by the City of Hutchinson, a municipal corporation, hereinafter called First Party, and the Independent School District No. 423 of McLeod County, hereinafter called Second Party, WITNESSETH: WHEREAS, the First Party has assumed the operation and maintenance of Burich Arena, through the guidance and recommendation(s) of the Civic Arena Board; WHEREAS, it is the desire of the Second Party to rent Burich Arena for programming to be conducted and sponsored through its physical education program and/or extra -curricular programs; NOW, THEREFORE, in consideration of the premises and the terms and covenants hereinafter set forth, the parties hereby mutually agree as follows: 1. PREMISES: The First Party agrees to lease and hereby does lease, and the Second Party agrees to take and hereby does take Burtch Arena, east rink and west rink. 2. TERMS OF LEASE: This lease shall be from the term of July 1, 2016 through June 30, 2018. 3. RENTAL PAYMENT AND GAME RECEIPTS: The Second Party agrees to pay the First Party a rental payment for the premises as shown below: 2016-17 2017-18 TOTAL TOTAL Practice Ice 225 hours $175 $180 $39,375 $40,500 20 Games Varsity/J.V. $725 $750 $14,500 $15,000 TOTAL $53,875 $55,500 Each yearly total amount will be paid on or before April 1st of 2017 and 2018 respectively. All game admission receipts shall be the property and responsibility of the Second Party. Hockey games in excess of 20 Varsity/J.V shall be billed at the agreed upon game rates. 4. DEFINITIONS a. "Ice -time" - The period of time the ice is on the floor of the premises and utilized for hockey games and/or practices. b. "Non -Ice -Time" - The period of time no ice is on the floor and utilization is for sports other than hockey, i.e., lacrosse, track, softball, soccer, baseball. C. Exclusive use - The time the Second Party is in possession of the premises for "ice -time" and "non -ice -time" use, without interference from the First and/or Second Party(s), except for normal maintenance of the building. 5. USE OF FACILITIES: The First Party agrees to lease the premises for exclusive use at the following designated times and activities. a. The Second Party shall be allotted 225 hours of ice time per school year. In the event more than 225 hours practice ice time is used, the Second Party shall be billed at the agreed hourly rate. b. All practice time(s) for Boys Squads and Girls Squads shall be scheduled as agreed upon between the city's Facilities & Operations Manager and School Activities Director. C. Game ice -time shall be set by schedule. All hockey games shall be Monday through Saturday, excluding holidays. All regularly scheduled hockey games and dates are set forth in a schedule and may be canceled and/or rescheduled only after mutual consultation of the First Party and the Second Party, or their respective representatives. d. In the event the facility is rendered unfit for hockey use due to fire or any other cause, the Second Party's obligation for rent shall be adjusted on a pro -rata basis and the party of the first part shall refund within 30 days after termination that portion of the rent covering the period of non-use. If the damage cannot be repaired within 30 days, the Second Party may exercise the option to terminate. 6. FIRST PARTY RESPONSIBLITIES: a. To provide all utilities, including heat, light, water, sewer, refuse; maintain all ice -making and cleaning equipment and machines; flooding the ice rinks; cleaning of the ice surfaces; maintaining the parking lot; and the normal maintenance, repair and replacement of dasherboards, goals and nets; and make all necessary structural alterations, repairs and maintenance. b. To provide janitor service for cleaning of the locker and shower area and cleaning of the bleacher area, storage area and upper arena areas as needed. C. To operate, maintain and receive revenues from all concessions and/or vending machines, unless otherwise assigned in whole or part. 7. SECOND PARTY RESPONSIBILITIES: a. To provide personnel and supplies for the sale and collection of admission tickets. b. To provide for payment of any Minnesota sales tax for admission. C. To provide towel and laundry service. d. To designate personnel to supervise students at any time the building is being used by its students under this agreement, and to designate one individual to be responsible for key(s) for use of the building while in use by its students. e. To be responsible for loss or theft of school and/or personnel property while stored or otherwise within the premises. f. To make all arrangements and/or payment for announcer(s), scoreboard operator(s), referees and supervisory personnel. g. To designate the coach or supervisor for seeing all pieces of equipment and supplies of the school and players are picked up and properly stored in the areas and cabinets, as provided by the First Party, and to see that all students are out of the building by one-half (1/2) hour after close of practice or game. 8. RULES AND REGULATIONS: The rules and regulations of Independent School District No. 423 pertaining to student conduct shall be in effect during all times this building is used by the school. Additional policies governing the conduct of students may be developed as needed by Burtch Arena and the school administration. The policies, rules and regulations shall be enforced by school personnel as assigned by the school administration and the city personnel as assigned by the city's Facilities & Operations Manager. 9. INSURANCE: The First Party agrees to pay a sum equal to the actual expense for bodily injury and property damage insurance. 10. INDEMNIFICATIONS: The Second Party agrees to save harmless, protect and indemnify the First Party from any and all claims, not fully covered by Section 9 Insurance, of every kind and nature whatsoever arising out of the personal injury or property damage on the leased premises while it is under control of and being used by the party of the second part. Each party agrees to name the other as an "additional insured party" in liability insurance policies. 11. SUCCESSORS AND ASSIGNS: All provisions of the lease, herein stated, are binding upon the successors or assigns of the respective parties. IN WITNESS WHEREOF, the parties have signed this agreement to be effective the day and year above written. In presence of: CITY OF HUTCHINSON BY Mayor BY City Administrator INDEPENDENT SCHOOL DISTRICT NO. 423 BY Chairman BY Clerk Lease This lease agreement is made and entered into this 1st day of July, 2016, by and between the City of Hutchinson a Minnesota municipal corporation (Lessor) and Independent School District #423 (Lessee). Whereas, Lessee operates an elementary school adjacent to the leased premises; and, Whereas, Lessee currently utilizes the leased premises for the purposes of conducting educational and school related activities; and, Whereas, from time to time school personnel have intervened in situations involving students and members of the general public for the purposes of protecting students; and, Whereas, as currently structured, Lessee, its administrators and other personnel have limited authority to prevent undesirable interaction between students and the public during school hours because the leased premises is owned by the City; and, Whereas, it is the desire of the Lessor and Lessee to ensure the safety of students at the school and, by leasing the premises, school personnel would have authority over third parties that are on the premises, Therefore, for one dollar ($1.00) and other good and valuable consideration, the parties agree as follows: Leased premises. The Lessor, in consideration of all the conditions, and some premises contained herein does hereby lease to the Lessee the following described property in the City of Hutchinson, McLeod County, Minnesota: North Park excepting therefrom the North 412.5 feet of the South 478.5 feet of the East 264 feet, South Half City of Hutchinson Lessee's Use of the Leased Premises. The Lessee agrees that the leased premises shall be used only for those uses commonly associated with the education of students. Such uses shall include, but not be limited to, recess, physical education classes, scientific and other experiments and other educational uses. Hours of Use. Lessee agrees that they shall have the ability to operate under the terms of and for the purposes of this lease between the hours of 7:00 a.m. and 4:00 p.m. each day that school is in session. Additionally, these terms are applicable one hour preceding and following school activities outside the normal hours of operation. Exclusive Use. Lessor agrees that Lessee shall have the exclusive use of the leased premises during the hours mentioned above. Lessee agrees, however, that it will use sound discretion in restricting the use of the leased premises by members of the general public. Both parties recognize that the Lessee shall have the ability to limit the use of the leased premises by third parties during the above -stated hours. Subleases. The parties agree that the Lessee does not have the ability to sublease the premises to third parties. Term. The term of this lease shall be from the last date signed below until June 30, 2020, unless terminated earlier by the parties. Improvements. Lessee shall not make improvements to the leased premises without the permission of the Lessor. All improvements so made shall become the property of the Lessor. Termination. This lease may be terminated for any reason by either party by giving the other a 90 day notice of its intention to do so. Insurance. Lessee shall have in full force and affect a policy of liability insurance for the full term of this lease naming the Lessor as an additional injured in an amount of not less than $1,500,000.00. The Lessee shall provide a certificate of said insurance policy at the time this lease is entered into. Independent School District #423 City of Hutchinson By By Its Its By By Its Its Date Date RESOLUTION TO SELL AT AUCTION SURPLUS POLICE DEPARTMENT PROPERTY Resolution No. 14571 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 - 2012 Chevrolet Caprice — VIN/6G1MK5U21CL644447. Item to be sold at State auction in Arden Hills. Adopted by the City Council this 14th day of June, 2016. Mayor City Administrator HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Approval of Improvement Project Change Orders Department: PW/Eng LICENSE SECTION Meeting Date: 6/14/2016 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 OF AGENDA 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 and/or Supplemental Agreements are proposed as noted: o Change Order No. 3 — Letting No. 1 /Project No. 16-01 — 2016 Pavement Management Program This Change Order addresses unsuitable soils in trench excavation areas and provisions for temporary access. This Change Order does not affect the Substantial or Final Completion Dates. This Change Order does increase the original contract amount by $3,987.50. BOARD ACTION REQUESTED: Approval of Change Order Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: UP16-01 05/25/2016 STATE AID FOR LOCAL TRANSPORTATION CHANGE ORDER City/County of City of Hutchinson Change Order No. 3 Page 1 of 1 FEDERAL PROJECT STATE PROJECT LOCAL PROJECT NO. CONTRACT NO. NO. NO. L1 P16-01 L1 P16-01 CONTRACTOR NAME AND ADDRESS LOCATION OF WORK Wm Mueller & Sons Inc Linden Ave SW, Madson Ave SW, Milwaukee Ave SW, Church St SW, West Shore Dr 831 Park Ave, P O Box 247 SW Hamburg, MN 55339 TOTAL CHANGE ORDER AMOUNT CU YD $3,987.50 In accordance with the terms of this Contract, you are hereby authorized and instructed to perform the work as altered by the following provisions. This Change Order addresses unsuitable soils in trench excavation areas and provision for temporary access. This additional work does not affect the Substantial Completion Date or the Final Completion Date. The Change Order results in an increase to the Contract in the amount of $3,987.50. COST BREAKDOWN Item No. Item Unit Unit Price I Quantity Amount Funding Category No. 001 2105.523 COMMON BORROW (LV) CU YD $10.50 250 $2,625.00 2105.541 STABILIZING AGGREGATE CU YD $20.00 50 $1,000.00 3882.100 CONTRACTOR 10% ALLOWANCE LUMP SUM $362.50 1 $362.50 Funding Category No. 001 Total: $3,987.50 Change Order No. 3 Total: $3,987.50 * Funding category is required for federal projects. CHANGE IN CONTRACT TIME (check one) Due to this change the Contract Time: a. [ ] Is Increased by Working Days b. [ X ] Is Not Changed [ ] Is Decreased by Working Days [ ] Is Increased by Calendar Days c. [ ] May be revised if work affected the controlling operation [ ] Is Decreased by Calendar Days Approved By Project Engineer: Kent Exner Approved By Contractor: Wm Mueller & Sons Inc Signed Signed Date: 06/14/2016 Phone: (320) 234-4212 Date: Phone: (952) 467-2720 Approved by Hutchinson City Council 05/10/2016. Signed Mayor, Gary Forcier Date: 06/14/2016 Signed City Administrator, Matt Januich Date: 06/14/2016 http://hu-webs/RtAEC/Reports/rpt ChangeOrder.asp?... Change Orders: $11,860.00 Completion Date: 06/14/2017 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Setting Public Hearing for City Storm Water Pollution Prevention Plan (SWPPP) Department: PW/Eng LICENSE SECTION Meeting Date: 6/14/2016 Application Complete N/A Contact: Kent Exner/John Paulson Agenda Item Type: Presenter: Kent Exner/John Paulson Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: As required by the City's National Pollution Discharge Elimination System (NPDES) Phase II permit, City staff requests that a public hearing be set on Tuesday, June 28th, at 6:00 PM (City Council Chambers, 111 Hassan St. SE) to consider the adequacy of the City's Storm Water Pollution Prevention Plan (SWPPP). BOARD ACTION REQUESTED: Set Public Hearing as described above Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL ci vof 0' a_ � Request for Board Action 79 M-W Agenda Item: Purchase of Bobcat Toolcat within Wastewater Department Department: PW/WW LICENSE SECTION Meeting Date: 6/14/2016 Application Complete N/A Contact: Kent Exner/John Olson Agenda Item Type: Presenter: John Olson Reviewed by Staff F1 Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As reviewed and approved by the City Fleet Committee, City staff recommends that a Purchase Order (see attachment) be authorized to acquire a Bobcat Toolcat for use within the Wastewater Department. Please note that this transaction utilized the Minnesota Department of Administration Cooperative Purchasing Venture, thus a second competitive cost quotation is not necessary. BOARD ACTION REQUESTED: Approval of Purchase Order Fiscal Impact: $ 50,498.48 Funding Source: Wastewater Funds FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: PURCHASE REQUISITION Purchase Order Number 1 9 3 3 1 el?attinent ; 602-4946 Account:# ;= 90540 pate:: 05/31/16 uE?ri#ted: by' John Olson Check the Appropriate Box. Is Item Budgeted YES NO If not budgeted, where will the money come from? 4 0,77 eW S� . �f-cc7L- I7epaite ,.1-ir :1 -0� ......... �.narlG�iiiii! ; .�.�................................ .� Cil ar '' ec d inistrafor A m .::,: ENO- R Ir1Rl�11�T9ON. . .......... . livTpi HATS1i3idr 940OAdams StSE Att - . John Olson Hutchinson MN 55350 9400 Adams St SE Hutchinson, MN 55350 MN DOA Cooperative Purchasing Venture Release T-631(5) Contract 90052 IFS . T[ N QUANTITY I UNITS I DESCRIPTION I UNIT PRICEI TOTAL 1 I EA 12016 Bobcat Toolcat 5600 w! bucket 1 49,909.941 $49,909.94 EA Pallet forks 1 588.541 $588,54 �± .. ............. 'I'l L s3 "clne. ] Cc7li c• ir�� S:11BT 7A 550,498.48 V -`SAX (7.375%) ? SHIPPING �: � ' 1 Ds7r7 H � � r f 7 � Cir -'+ , �' P_�,%� TOTAL DUE $50,49$.48 List additional quotes and comments on the reverse side of this form. (You may attach quote sheets if available). ecei' :.h.. l,: ormafion: R v� of .. .......:. I7afe-Receiver! Recei ... d B Ir��oice kmoi ri# VerifieU g 19331 - 05-31-2016 - PR - Farm -Rite Equipment.xlsxPage 1 of 2 } ^ ..,.... ,,. Bobcat: r F US Hwy. 12 W. P.D. Box 26 ` Dassel, MN 55325IF 1 _ : .-__ 6 32p.273,2737 or 8f .679.A857 `��� ' ' y 1 � c" 320.693.6929 (home _ supportifarrn,,.qu .Com (email) o- TIM COX arm -Rite Equipmell L.� Sales Manager Safes - Se ryice Parts -Rental West Hwy. 12 Box 26 i L I 5�Dassel, MIDI 55325 ,. . i -2737 ,,,,,,,,,,,,,,,,,,,,,.,,,,,,,,�,�.„.�� Phone: 320-275 www.farmriieequip.com ;,........,.,v,�.,�,,,,,�v,,,,. FAX: 320-275-3232 � + "� r � � l4J C1 O L Y Ab*,�! &/) FAX DA 17E uglo skdv1� r� � IsM++�rc. e7 1 Deluxe R& V Fll� Fra,d 9++P� �h:eY � � l J[ I�Y�•Wk Grapple i Feik I L3 (DOW3 v Yl6mnry iivper ~� JI� f/ + r I Z' y � [/ � � � Yvrk P.iv 5L,7'2--3 C.m6lnv!!vp ■yvkv! .�ky„.,....e.A :G------------- Lph V 46pf ind4.kirf L4vom HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Temporary Liquor License - RiverSong Music Festival Department: Administration LICENSE SECTION Meeting Date: 6/14/2016 Application Complete Yes Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ✓❑ consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: RiverSong Music Festival has submitted a temporary liquor license application to dispense liquor at the festival being held July 15 and 16, 2016. RiverSong Music Festival is a non-profit organization that has been organized since 2007. BOARD ACTION REQUESTED: Approve issuing temporary liquor license to RiverSong Music Festival on July 15 and 16, 2016. 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: TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE Name of organization Date organized Tax exempt number RiverSong Music Festival September of 2007 014623 Address City State Zip Code PO Box 667, 17614 - 240th Street. Hutchinson MN 55350-0667 Name of person making application Business phone Home phone ohn P. Rodeberg, RiverSong Site & Security Co -Chair fi51-470-2448 320-587-0753 Date(s) of event Minnesota Department of Public Safety r _ Alcohol and Gambling Enforcement Division Club Charitable Religious fi ❑ ❑ ❑ g' ❑X Other non-profit 445 Minnesota Street, Suite 222, St. Paul, MN 55101 City State 651-241-7500 Fax 651-297-5259 TTY 651-282-6555 Alcohol & Gambling Enforcement APPLICATION AND PERMIT FOR A 7 DAY TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE Name of organization Date organized Tax exempt number RiverSong Music Festival September of 2007 014623 Address City State Zip Code PO Box 667, 17614 - 240th Street. Hutchinson MN 55350-0667 Name of person making application Business phone Home phone ohn P. Rodeberg, RiverSong Site & Security Co -Chair fi51-470-2448 320-587-0753 Date(s) of event Type of organization my 15 and 16, 2015 Club Charitable Religious fi ❑ ❑ ❑ g' ❑X Other non-profit Organization officer's name City State Zip Code Itaren Grasmon, Steering Committee Chair Hutchinson MN 55350 Organization officer's name City State Zip Code Betsy Price, Treasurer Hutchinson 1 55350 Organization officer`s name City State Zip Code MN Organization officer's name City State Zip Code MN Location where permit will be used. If an outdoor area, describe. Event to be held in the City of Hutchinson's Masonic West River Park, as it has since 2009. Site will be entirely surrounded by fence or the river, and Hutchinson Police Services will be providing on-site security and support. If the applicant will contract for intoxicating liquor service give the name and address of the liquor license providing the service. Liquor service (beer and wine) to be operated by trained and certified RiverSong volunteers. if the applicant will carry liquor liability insurance please provide the carrier's name and amount of coverage. Scott Decker of Citizen's Insurance of Hutchinson will verify and provide details once the City has confirmed appropriateness of the liquor license. APPROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT City or County approving the license Date Approved Amount Permit Date Date Fee Paid City or County E-mail Address Signature City Clerk or County Official City or County Phone Number Approved Director Alcohol and Gambling Enforcement CLERKS NOTICE: Submit this form to Alcohol and Gambling Enforcement Division 30 days prier to event. ONE SUBMISSION PER EMAIL, APPLICATION ONLY. PLEASE PROVIDE A VALID E-MAIL ADDRESS FOR THE CITY/COUNTY AS ALL TEMPORARY PERMIT APPROVALS WILL BE SENT BACK VIA EMAIL, E-MAIL THE APPLICATION SIGNED BY CITYICOUNTY TO AGE.TEMPORARYAPPLICATION @�STATE.MN.US LIQUOR LIABILITY MINNESOTA JOINT UNDERWRITING ASSOCIATION CERTIFICATE OF INSURANCE 12400 PORTLAND AVE S, STE 190 Page 1 BURNSVILLE, MN 55337 This certificate of insurance is issued as a matter of information only and confers no rights upon the Certificate Holder. �:s certificate does not amend, extend or alter the coverage afforded by the policy listed below. Polio Number: L160168 INSURED: RIVERSONG MUSIC FESTIVAL PO BOX 667 HUTCHINSON MN 55350 Policy Period: FROM 7/15/2016 TO 7/17/2016 12:01 AM Standard Time AGENT: 171 CITIZENS INS AGCY OF HUTCHINSON LLC 102 MAIN ST S PQ BOX 339 HUTCHINSON MN 55350 1 THE MJUA IS PROHIBITED BY STATUTE FROM PROVIDING PRODUCTS AND COMPLETED OPERATIONS COVERAGE NEW POLICY LIQUOR LIABILITY This is an audited policy and premium adjustments are made at the end of the policy period. This is to certify that the Policy described herein has been issued to the Insured named above and is in force at this time. Notwithstanding any requirement, term or condition of any Policy or other document with respect to which this certificate may be issued or may pertain, the coverage afforded by the Policy described herein is subject to all terms, exclusions and conditions of such Policy. The Described Location(s) covered by this policy are as follows: MASONIC WEST RIVER PARK COVERAGE Deductible Amount: NONE L. Bodily Injury Property Damage Loss of Means of Support Pecuniary LOSS Annual Aggregate Per Claimant (Each Person) (Each Occurrence) (Each Occurrence) (Each Person) (Each Occurrence) (Each Person) (Each Occurrence) Business Description: SPECIAL EVENT - SHORT TERM, LIQUOR LIQUOR LIABILITY Certificate Holder: CITY OF HUTCHINSON 111 HASSAN ST. SE HUTCHINSON MN 55359 LIMIT $50,000 $100, 000 $10, 000 $50,0()Q $100, 000 $501000 $100,000 $300,000 NONE Should tr:- above policy be cancelled before the expiration date thereof, the Association will endeavor to mail 60 days written notice to the above named certificate holder, but failure to mail such notice shall impose no obligation or liability of any kind upon the Assoc_iaticn. In the event the cancellation is for non payment of premium, the Association will mail a 10 day written notice. 5/23/16 COUNTERSIGNATURE DATE * CERTIFICATE HOLDER * OUR AUTHORIZED REPRESENTATIVE 7/15116 7/15/16 End of Certificate For Location 1 Building 1 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Temporary Liquor License - Sustainable Farming Association Department: Administration LICENSE SECTION Meeting Date: 6/14/2016 Application Complete Yes Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The Sustainable Farming Association has submitted a temporary liquor license to dispense liquor at the Minnesota Garlic Festival being held at the McLeod County Fairgrounds on August 13, 2016. The Sustainable Farming Association is a non-profit organization that has been in existence for at least three years and meets the requirements for a temporary liquor license. This is the seventh year the organization has put on the Minnesota Garlic Festival at the McLeod County Fairgrounds. BOARD ACTION REQUESTED: Approve issuing temporary liquor license to Sustainable Farming Association on August 13, 2016. 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: !0� ' AL Minnesota Department of Public Safety ALCOHOL AND GAMBLING ENFORCEMENT DIVISION 444 Cedar Street Suite 222, St. Paul MN 55101 (651) 201-7507 Fax (651) 297-5259 TTY (651) 282-6555 WWW. DPS. STAT E.M N. US APPLICATION AND PERMIT FOR A 1 TO 4 DAY TEMPORARY ON -SALE LIQUOR LICENSE TYPE OR PRINT INFORMATION NAME. OF O1tGANIZATI6N STREET ADDRESS 9747 70th Ave NAME OF PERSON MAKING APPLICATION Jerry Ford BATES LIQUOR WILL BE SOLD 8/13/16 ORGANIZATION OFFICER'S NAME .John Mesko, Executive Director KUA N IZATIC Jerry Ford f GAN~ iZATIC Locarion license will be used. If an outdoor area, describe DATE ORGANIZED 911/89 CITY STATE Milaca MN BUSINESS PHONE. (763 244-6659 TAN EXEMPTNUM13ER 41-1671893 ZIP CODE 56353 HOME PHONE 1320 543-3394 TYPE OF ORGANIZATION ADDRESS 9747 70th Ave, Milaca, MN 56353 ABDR)~SS 7616 25th St. SW, Howard Lake, MN 55349 ADDRF.SC McLeod County Fairgrounds, Pavilion V4"iliNeO applicant contract for intoxicating liquor sen ice ' If sa. give the naive and address of the liquor 1 icensee providing the service. Will the applicant carryliquor liability insurance? Ifso, please provide the can-ier's name and amount ofcoverage. Yes. Minnesvta,loint Dr,derwriters Association. Amount of covers a as stated fn 6tv o APROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL & GAMBLING ENFORCEMENT CITY/COUNTY DATE APPROVED CITY FEE AMOUNT DATE FEE PAID LICENSE DATES SIGNATURF, CITY CLERK OR COUNTY OFFICIAL APPROVED DIRECTOR ALCOHOL AND GAMBLINC, ENFORCEM PNT NOTE- Suhmlt this form to the city or county 30 days prior to event. Forward application signed by city and/or th t coun�e address above. If the appllratlon is approved the Alcohol and Gambling Enforcement division will return this ty appticatinn to he need as the License for the event PS -09079 (05/06) LIQUOR LIABILITY MINNESOTA JOINT UNDERWRITING ASSOCIATION CERTIFICATE OF INSURANCE 12400 PORTLAND AVE S, STE 190 Page 1 BURNSVILLE, MN 55337 This certificate of insurance is issued as a matter of information only and confers no rights upon the Certificate Holder. This certificate does not amend, extend or alter the coverage afforded by the policy listed below. Policy Number- L160190 Policy Period: FROM 8/13/2016 TO 8/14/2016 12:01 AM Standard Time INSURED: AGENT: 780 SUSTAINABLE FARMING ASSOCIATION MJUA JERRY FORD 12400 PORTLAND AVE S, STE 190 PO BOX 192 BURNSVILLE, MN 55337 PRINCETON MN 55371 PHONE: 952/641-0260 THE MJUA IS PROHIBITED BY STATUTE FROM PROVII]ING PRODUCTS AND COMPLETED OPERATIONS COVERAGE NEW POLICY LIQUOR LIABILITY This is an audited policy and premium adjustments are made at the end of the policy period. This is to certify that the Policy described herein has been issued to the Insured named above and is in force at this time. Notwithstanding any requirement, term or condition of any Policy or other document with respect to which this certificate may be issued or may pertain, the coverage afforded by the Policy described herein is subject to all terms, exclusions and conditions of such Policy. The Described Location (s) covered by this policy are as follows: MCLEOD CO FAIRGROUNDS, 840 CENTURY AVE, SW, HUTCHINSON, MN 55350 COVERAGE LIMIT Deductible Amount: NONE L. Bodily Injury Property Damage Loss of Means of Support Pecuniary Loss Annual Aggregate Per Claimant (Each Person) $50,000 (Each Occurrence) $100,000 (Each Occurrence) $10,000 (Each Person) $50,000 (Each occurrence) $100,000 (Each Person) $50,000 (Each Occurrence) $100,000 $300,000 NONE Business Description: SPECIAL EVENT - SHORT TERM, LIQUOR LIQUOR LIABILITY Certificate Holder: CITY OF HUTCHINSON 111 HASSAN ST. SE HUTCHINSON MN 55359 1 Should the above policy be cancelled before to c {�,.i, ru l .r'1 date thereof, the Association will endeavor to rnail EO days written notice t.s the above iiamed cert.lficate holder, but failureto mail such notice shall impose no obligation or liability of any kind upon the Association. In the event the cancellation is for non payment of premium, the Association will mail a 10 day written notice. 6/06/16 COUNTERSIGNATURE DATE C * CERTIFICATE HOLDER * OUR AUTHORIZED REPRESENTATIVE B/13I16 8113116 End of Certificate For Location 1 Building 1 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Approval of Term Sheet to Initiate a Development Agreement for a TIF District Department: Administration LICENSE SECTION Meeting Date: 6/14/2016 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Attached is a Term Sheet to initiate the Development Agreement for the Highfield Apartment TIF application with Highfield Apartments of Hutchinson, LLC (Developer - Kuepers). This term sheet is the first step in initiating what will become a Developers Agreement with the Developer. The term sheet was prepared by Ehlers and lays out some basic provisions for TIF assistance by the City. The initial analysis by Ehlers indicates that the project meets the "but-for" testing for TIF and that the project most likely would not move forward without TIF assistance. The Term Sheet has been reviewed by Staff and they are recommending your approval. A public hearing has been called on the TIF District that is scheduled for July 26. BOARD ACTION REQUESTED: Approval of Term Sheet to initiate the Development Agreement for the Highfield Apartment TIF Application 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: Term Sheet This Term Sheet is executed as of this day of , 2016 by and between Developer and the City of Hutchinson (the "City") and is intended to set forth the terms upon which the parties hereto may be willing to enter into a Development Agreement. Except for Section 11 below (which shall be binding upon the Developer), This Term Sheet shall not be deemed conclusive or legally binding upon either party and neither party shall have any obligations regarding the property defined below unless and until a definitive Development Agreement is approved by the City and executed by both parties. 1. Developer: Highfield Apartments of Hutchinson, LLC, 17018 Commercial Park Road, Brainerd, MN 56401 2. Property: TBD upon subdivision of PID 23.4810020 Lots 1, 2, & 3, block 1, Highfield Addition 3. Key Business Terms — Owner: a. Execution of Development Agreement b. Preparation and Submittal of Construction Plans C. Payment of City Assessment (Amount TBD) 4. City Conditions: a. Establishment of new Housing TIF District b. City approval of Construction Plans C. Execution of Development Agreement d. City determination that Developer has sufficient financial means to construct Minimum Improvements 5. Minimum Improvements: Improvements to the property will include the construction of three phases of 29 -units (87 -units total) of market rate multifamily housing. At least 20% of the units for any phase will be reserved for those with incomes below 50% of the area median income. 6. Construction Schedule: Commence construction by September 1, 2016, and complete by January 1, 2019. For the purpose hereof, "Commence" shall mean beginning of physical improvement to the Property, including grading, excavation, or other physical site preparation work; and "Completed" shall mean that the Minimum Improvements are sufficiently complete for the issuance of a Certificate of Occupancy. 7. Public Assistance: Subject to all terms and conditions of the Development Agreement, the City will reimburse Developer for up to $834,395 (present value) of Qualified Costs related to the Minimum Improvements (out of an estimated total of $8,395,000 anticipated total project costs). "Qualified Costs" shall mean all costs incurred in connection with the construction of the Minimum Improvements. Payments will be issued on a pay-as-you-go basis over the term of the district with interest at a rate of 3.00% per annum. Repayment of the note is anticipated by 2037, and in no way shall exceed 18 years of increment. 8. TIF Notes: The Public Assistance to be provided under section 7 will be provided through one or more TIF Notes to be provided simultaneously with the issuance of a Certificate of Occupancy for the allocated and proven costs incurred for any applicable phase of the Minimum Improvements. 9. City Administrative Costs: Ten percent (10%) of tax increment generated from the Housing TIF District is anticipated to be retained by the City for administrative costs related to the planning, management and oversight of the Housing TIF District. 10. Building Value: The building to be constructed upon the Property is anticipated to have an assessed value of approximately $50,000 per unit, or a total of $4,300,000. 11. Fees: The City acknowledges that the Developer submitted a $4,000 deposit to pay for the reasonable out-of-pocket financial consultant administrative review of the TIF application. Upon execution of this proposed Term Sheet, the developer will be required to make an additional deposit of $16,500 to the City for its reasonable out-of-pocket legal, financial consultant, TIF District Establishment, and administrative fees associated with this transaction. Any funds deposited by developer and not expended by the City for its legal, financial advisor, or other consultant fees on or before the date of execution of the development contract will be returned to the developer without interest. The developer shall pay all other normal and customary City fees, including but not limited to, planning, zoning and permit fees, access charges, and expenses, unless otherwise specified in the development agreement, for the approval and construction of the Minimum Improvements. 12. Evaluation Process for TIF Assistance: As part of the TIF Assistance process, the Project as a whole must be evaluated and the "but for" must be demonstrated. The Developer will provide full and complete information so that the City can understand the need for the requested financial assistance. 13. Miscellaneous: a. No transfer of Property or Development Agreement without City consent. b. Standard default provisions will be applicable, including default provisions for failure to commence or complete the Project. C. Developer covenants to pay property taxes and maintain customary insurance. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above. Highfield Apartments of Hutchinson, LLC (Developer) By: Its: Chief Manager CITY OF HUTCHINSON By: Its: City Administrator By: Its: Mayor CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 05/25/2016 - 06/14/2016 Check Date -------------------- 05/26/2016 Check -------------- 191290 Vendor Name --------------------------------------------------------------- MINNESOTA DEPT OF HEALTH Description ----------------------------------------------------------------------- AQUATIC CENTER PLAN REVIEW Amount -------------------- 15,000.00 06/01/2016 191291 MCLEOD COUNTY COURT ADMINISTRATOR FILING FEE FOR COMPLAINT -SUMMONS ON BEHA 347.00 06/14/2016 191294 A.M. LEONARD INC MISC PLANTING EQUIPMENT NEEDED FOR COMMU 3,010.79 06/14/2016 191295 AARP JUNE AARP 335.00 06/14/2016 191296 ABSOLUTE LOGISTICS LLC CREEKSIDE LOAD- PRINCE CORP 1,275.00 06/14/2016 191297 ACE HARDWARE VB NETS 850.29 06/14/2016 191298 VOID 0.00 06/14/2016 191299 AHLGREN ELECTRIC 3 LAMP T8 HIGH EFF BALLAST 109.54 06/14/2016 191300 ALLIED ELECTRONICS INC METER, DELUXE ELECTRONIC TEST 1,367.50 06/14/2016 191301 ALPHA WIRELESS MAINT ON CONSOLE & FIXED TRANSMITTERS JU 848.19 06/14/2016 191302 AMERICAN BOTTLING CO MISC PURCH 334.64 06/14/2016 191303 AMERIPRIDE SERVICES TOWELS, MOP, MAT 179.06 06/14/2016 191304 ANIMAL MEDICAL CENTER ON CROW RIVER CAT & DOG BOARDING 252.00 06/14/2016 191305 ARCTIC GLACIER USA INC. ICE 1,369.02 06/14/2016 191306 ARNESON DISTRIBUTING CO MAY PURCH 1,494.05 06/14/2016 191307 ARTISAN BEER COMPANY MAY PURCH 1,122.61 06/14/2016 191308 ASSURANT EMPLOYEE BENEFITS DENTAL INSURANCE FOR MAY 2016 11,012.85 06/14/2016 191309 AUTO VALUE - GLENCOE LUMEN FLASHLIGHT 206.37 06/14/2016 191310 AUTOMATIC SYSTEMS CO EMERGENCY TRIP CONTRACT RATED- HWY 15 LI 2,500.00 06/14/2016 191311 B & C PLUMBING & HEATING INC LABOR & MATERIALTO REPLACE LAV SINK AT 425.32 06/14/2016 191312 B.T. LOCK & KEY LLC KEYS DUPLICATED, LCN DOOR CLOSER RH ALUM 447.75 06/14/2016 191313 BACHMAN'S #10 LARCH, ASPEN TREE, MAPLE TREE, HONEY 3,910.20 06/14/2016 191314 BARGEN INC JEFFERSON ST SE 2013 & 2014 PROJECT AREA 43,935.00 06/14/2016 191315 BEACON ATHLETICS STEEL MAT MOP 216.84 06/14/2016 191316 BELLBOY CORP MAY PURCH 2,378.96 06/14/2016 191317 BERNICK'S MISC BEVERAGES 270.70 06/14/2016 191318 BETKER HOMES LLC 1ST QTR SURCHARGE 2016- REIMB ELECTRIC T 800.00 06/14/2016 191319 BLUE EARTH COUNTY SHERIFF ANNUAL CONTRACT- REGIONAL LOGGING MAINT 2,757.74 06/14/2016 191320 BNO SHEET METAL INC LABOR & MATERIAL TO MEASURE FABRICATE & 215.17 06/14/2016 191321 BOLTON & MENK INC. RECLAMATION OF RUNWAY 15/33, TAXIWAY A A 7,200.00 06/14/2016 191322 BRANDON TIRE CO TUBES, INSTALL TUBE 361.06 06/14/2016 191323 BREAKTHRU BEVERAGE MAY PURCH 17,220.64 06/14/2016 191324 BROKING'S TRANSPORT INC. LOAD, HILLS COUNTRY GREENHOUSE 175.00 06/14/2016 191325 BROTHERS FIRE PROTECTION COMPANY 2016 ANNUAL SPRINKLER INSPECTION 845.00 06/14/2016 191326 BS&A SOFTWARE ANNUAL SERVICE/SUPPORT FEE 5/2016-5/2017 20,790.00 06/14/2016 191327 BUSINESSWARE SOLUTIONS HP INK #72 YELLOW 2,090.12 06/14/2016 191328 C & L DISTRIBUTING MAY PURCH 63,970.99 06/14/2016 191329 CARLOS CREEK WINERY MAY PURCH 288.00 06/14/2016 191330 CENTRAL HYDRAULICS MALE PIPE, FEMALE SWIVEL 937.63 06/14/2016 191331 CENTRAL LANDSCAPE SUPPLY PAVERS, HAMMER, CHISEL, SAW 1,179.30 06/14/2016 191332 CENTRAL MCGOWAN HIGH PRESSURE CYL 104.16 06/14/2016 191333 CENTRAL TURF & IRRIGATION SUPPLY IRRIGATION SUPPLIES 548.44 06/14/2016 191334 CMK SERVICES LLC LAWN MOWING 705 DALE ST SW 480.00 06/14/2016 191335 COMDATA CORPORATION MISC PURCH 603.23 06/14/2016 191336 COMMISSIONER OF TRANSPORTATION ADVERTISING DEVICES PERMIT RENEWAL FERMI 60.00 06/14/2016 191337 CORNER POST EROSION CONTROL PARKING LOT E PROJECT 950.25 06/14/2016 191338 CORRA GROUP CREDIT REPORT- MAY 11.00 06/14/2016 191339 COUNTRYSIDE FLAGPOLE 4X6 ALL WEATHER NYLON US FLAG 88.00 06/14/2016 191340 CREEKSIDE SOILS BITCON- INFRASTRUCTURE MAINT PROJECT, PK 1,884.94 06/14/2016 191341 CROW RIVER AUTO & TRUCK REPAIR SHIFTER LOOSE- 2007 FORD F550 SUPER DUTY 586.57 06/14/2016 191342 CROW RIVER PRESS INC SENIOR NEWSLETTERS 89.95 06/14/2016 191343 CROW RIVER WINERY MAY PURCH 1,628.52 06/14/2016 191344 CUMMINS NPOWER LLC INSPECTION ON GENERATOR & TRANSFER SWITC 782.50 06/14/2016 191345 CURTIS 1000 INC - MN #10 W/ BARCODE & PRESORT STAMP 1,143.26 06/14/2016 191346 DALE A. ZORMAN TRUCKING SERVICE INC LOAD -HILL'S COUNTRY GREENHOUSE BEMIDJI 475.00 06/14/2016 191347 DAVE GRIEP CLEANING CLEAN WINDOWS 45.00 06/14/2016 191348 DAVE'S PALLET SERVICE #2 4 WAY PALLET 5,460.00 06/14/2016 191349 DEMERE, JENNIFER REFUND - CLASS CANCELLED 40.00 06/14/2016 1191350 1 DPC INDUSTRIES INC FERRIC CHLORIDE 38% 9,309.30 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 05/25/2016 - 06/14/2016 Check Date -------------------- 06/14/2016 Check -------------- 191351 Vendor Name --------------------------------------------------------------- DROP -N -GO SHIPPING INC Description ----------------------------------------------------------------------- DURA ART STONE OVERNIGHT Amount -------------------- 456.24 06/14/2016 191352 DUNDEE FRESH CUT ARRANGEMENT-JUERGENSEN 34.99 06/14/2016 191353 DYNA SYSTEMS SLASHER CUTOFF WHEEL 453.54 06/14/2016 191354 E2 ELECTRICAL SERVICES INC LOCATE RIGID PIPES FOR DRUM SCREEN 337.50 06/14/2016 191355 ECOLAB PEST ELIMINATION RODENT PROGRAM -MAY 149.34 06/14/2016 191356 ELECTRO WATCHMAN CUSTOMER BYPASSING ZONE 4, REPAIRED WIRE 320.00 06/14/2016 191357 ENVIRONMENTAL RESOURCE ASSOC COLIFORMS, SIMPLE NUTRIENTS, WASTEWATER 736.46 06/14/2016 191358 ERLANDSON, ANDREW ACTIVE SHOOTER TRAINING- CAMP RIPLEY 41.53 06/14/2016 191359 EVERBRIDGE INC EVERBRIDGE MASS NOTIFICATION UNLIMITED D 4,030.00 06/14/2016 191360 FARM -RITE EQUIPMENT CHARGE FOR USAGE OF 2009 72" BOBCAT HYD 150.00 06/14/2016 191361 FASTENAL COMPANY HCSS 921.81 06/14/2016 191362 FINANCE & COMMERCE 2016 HUTCHINSON DOWNTOWN SIGNAGE- 1_8P16- 207.06 06/14/2016 191363 FIRESHAPES STUDIO GREEN SEEKER FOR HUTCHINSON SCULPTURE ST 2,000.00 06/14/2016 191364 FIRST CHOICE FOOD & BEVERAGE SOLUTI COFFEE 228.00 06/14/2016 191365 FRED HOLASEK & SON INC FLOWERS & PLANTS 2,666.65 06/14/2016 191366 G & K SERVICES COVERALLS 215.16 06/14/2016 191367 GEB ELECTRICAL INC REPLACE 2 WALL PAK WITH NEW LED & PHOTO 1,242.60 06/14/2016 191368 GENERAL OFFICE PRODUCTS COMPANY PENCIL DRAWER 76.50 06/14/2016 191369 GERTENS WESTERN RED CEDAR MULCH 230.65 06/14/2016 191370 GRAINGER UNION, UNASSEMBLED UTILITY CART 395.81 06/14/2016 191371 GREEN EARTH LAWN CARE INC MOWING- 236 FRANKLIN, 715 FRANKLIN, 141 200.00 06/14/2016 191372 GTS M.SEBORA REG ID 92999458 175.00 06/14/2016 191373 GURSTEL STALOCK & CHARGO PA WAGE GARNISHMENT 1.13 06/14/2016 191374 HACH COMPANY FERROVER IRON ACCUVAC 306.76 06/14/2016 191375 HAGER JEWELRY INC. MONEY CLIP, KEY CHAIN ENGRAVE- BOTZET RETIRE 70.00 06/14/2016 191376 HANSEN TRUCK SERVICE R & R BRAKES 604.25 06/14/2016 191377 HANSON & VASEK CONSTRUCTION 268 LF X 9'4" SIDEWALK INSTALLED, 4500 P 22,550.00 06/14/2016 191378 HD SUPPLY WATERWORKS LTD AYM W/ GASKET 1,480.74 06/14/2016 191379 HENDRICKSON & SONS PLUMBING LLC HVAC SYSTEM 51,000.00 06/14/2016 191380 HENNEPIN COUNTY COURT ADMIN BAIL- DAC -IPS 100.00 06/14/2016 191381 HENRY'S WATERWORKS INC VB2601/1 CAST IRON DROP IN VALVE BOX RIS 218.17 06/14/2016 191382 HI -LINE INC HOUSING WEATHER, BATTERY 275.56 06/14/2016 191383 HILLYARD/ HUTCHINSON TOWEL ROLL 708.24 06/14/2016 191384 HJERPE CONTRACTING REPLACE PUMP SEPTIC SYSTEM AT AIRPORT & 500.00 06/14/2016 191385 HRA PROJ ADMIN REIMB REQUEST- GUY & KATHERIN 423.50 06/14/2016 191386 HUTCH CAFE 120 PEOPLE -SWEDISH MEATBALLS 2,749.63 06/14/2016 191387 HUTCHINSON CO-OP FUEL 5,744.39 06/14/2016 191388 HUTCHINSON CONVENTION & VISITORS BU APRIL 2016 LODGING TAX 6,152.00 06/14/2016 191389 HUTCHINSON HEALTH EMPLOYEE TESTING 515.66 06/14/2016 191390 HUTCHINSON HEALTH CARE JUNE CAM & SA 2,396.58 06/14/2016 191391 HUTCHINSON LEADER 12 MONTH SUBSCRIPTION 2,951.48 06/14/2016 191392 HUTCHINSON SENIOR ADVISORY BOARD JUNE NEWSLETTER- POSTAGE 75.20 06/14/2016 191393 HUTCHINSON UTILITIES MAY UTILITIES 4/29 - 5/31/16 65,935.28 06/14/2016 191394 HUTCHINSON UTILITIES DODGE TRUCK FOR FACILITY MGMT POSITION 6,364.18 06/14/2016 191395 HUTCHINSON WHOLESALE I M GLOSS BLACK 386.90 06/14/2016 191396 HUTCHINSON, CITY OF Storm Drainage 4/01-4/30'16 4,610.88 06/14/2016 191397 HUTCHINSON, CITY OF REPLENISH ATM 5,000.00 06/14/2016 191398 I.M.S. SHARPENING SERVICE BASIN REPAIRS 1,200.00 06/14/2016 191399 IDEALSERVICE INC FANS FOR BALDOR DRIVES- CHEMICAL ROOM 55 133.41 06/14/2016 191400 INTERSTATE POWER COMPANIES INC SOLENOID VALVE 225.80 06/14/2016 191401 IOWA DEPT OF AGRICULTURE RENEWAL OF PRODUCT FERTILIZER LICENSE 10.00 06/14/2016 191402 J & N TACTICAL DOUBLE HEADED BREAK & RAKE TOOL 800.00 06/14/2016 191403 JACK'S UNIFORMS & EQUIPMENT SAFARILAND HOLSTER, PLATES, STREAMLIGHT 9,137.44 06/14/2016 191404 JJ TAYLOR DIST OF MN MAY PURCH 11,907.95 06/14/2016 191405 JOCHUM, DANIEL SAFETY FOOTWEAR 125.00 06/14/2016 191406 JOHNSON BROTHERS LIQUOR CO. MAY PURCH 37,321.93 06/14/2016 191407 JORDAHL, JIM APRIL ADAPTED REC DANCE 200.00 06/14/2016 191408 JUHL, EHTAN SAFETY FOOTWEAR/SEASONL & TEMP- 3 YEARS 154.99 06/14/2016 1191409 IJUUL CONTRACTING CO JADJ RINGS, CEMENT, CY CLASS 1,723.60 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 05/25/2016 - 06/14/2016 Check Date -------------------- 06/14/2016 Check -------------- 191410 Vendor Name --------------------------------------------------------------- KAHNKE BROTHERS NURSERY Description ----------------------------------------------------------------------- LIBRARY SQUARE PLANTINGS Amount -------------------- 733.78 06/14/2016 191411 KDUZ KARP RADIO ADVERTISING- FISHING OPENER,TWINS BASEBA 516.50 06/14/2016 191412 KEEPRS INC GLOCK G17, GLOC G26, GLOCK G17 MAGAZINE, 12,987.00 06/14/2016 191413 KERI'S CLEANING CLEANING- CITY, LIBRARY, S DINING, FIRE 3,125.00 06/14/2016 191414 KRANZ LAWN & POWER GRASSHOPPER- 3 BLADES 85.47 06/14/2016 191415 KUHL, STACEY MOM WILL BE COACHING 40.00 06/14/2016 191416 L & P SUPPLY CO CAP SCREW, BUSHING -SLIDERS 5,114.50 06/14/2016 191417 LANDSCAPE CONCEPTS INC SOUTH ROUND A BOUT & CEMETERY 725.98 06/14/2016 191418 LEAGUE OF MN CITIES -INS TRUST 2016 Q3 WORKER COMP PREMIUM 54,382.00 06/14/2016 191419 LEAGUE OF MN CITIES -INS TRUST CLAIM C0017705 FINAL SETTLEMENT 25,000.00 06/14/2016 191420 LEAGUE OF MN CITIES -INS TRUST SETTLEMENT OF CLAIM C0035793 25,000.00 06/14/2016 191421 LEVINE, ERIC POSTAGE, ROTATING JETTER NOZZLE, COUPLE 53.91 06/14/2016 191422 LOCHER BROTHERS INC MAY PURCH 40,288.10 06/14/2016 191423 LYNDE & MCLEOD INC. CU YD COMPOST SALES 1,393.57 06/14/2016 191424 M -R SIGN RETIERMENT SIGNS-BOTZET 115.07 06/14/2016 191425 MARK BETKER CONSTRUCTION LLC CITY HOME IMPROVEMENT LOAN- GUY & KATHER 9,020.00 06/14/2016 191426 MARSHALL CONCRETE PRODUCTS CRACOVIA PAVERS, PALLETS 747.69 06/14/2016 191427 MARTIN-MCALLISTER PUBLIC SAFETY ASSESMENT, J. MONS 500.00 06/14/2016 191428 MATHESON TRI -GAS INC ACETYLENE, HIGH PRESSURE 15.97 06/14/2016 191429 MATHWIG, JASON FOOTWEAR REIMB 175.00 06/14/2016 191430 MCLEOD COUNTY COURT ADMINISTRATOR BAIL- HOLMQUIST 300.00 06/14/2016 191431 MCLEOD COUNTY COURT ADMINISTRATOR COUNTY FILE 43 -CR -15-1772 & 43 -CR -15-182 14.00 06/14/2016 191432 MCLEOD COUNTY SHERIFF'S OFFICE 2016 ACTIVE SHOOTER TRAINING AT CAMP RIP 496.98 06/14/2016 191433 MEEKER WASHED SAND & GRAVEL 80.08 SAND 2,574.91 06/14/2016 191434 MENARDS HUTCHINSON GALVANIZED PIPE-REC CTR LEVEL FOR PAVER 1,097.45 06/14/2016 191435 VOID 0.00 06/14/2016 191436 MESSAGE MEDIA MONTHLY ACCESS FEE -JUNE 30.00 06/14/2016 191437 MIDWEST CUSTOM APPAREL T SHIRTS VARIED CALORS & SIZES FOR BOWLING 2,362.50 06/14/2016 191438 MILLNER HERITAGE VINEYARD & WINERY MAY PURCH 895.20 06/14/2016 191439 MINNEAPOLIS, CITY OF APS TRANSACTION FEES FOR APRIL 81.00 06/14/2016 191440 MINNESOTA CHIEFS OF POLICE POLICE OFFICER ENTRY TEST 315.50 06/14/2016 191441 MINNESOTA DEPT OF HEALTH WATER -STATE TESTING FEE 7,573.00 06/14/2016 191442 MINNESOTA DEPT OF MOTOR VEHICLE SALES TAX & REG FEE ON 2016 CHEVY CAPRIC 1,725.34 06/14/2016 191443 MINNESOTA DEPT OF MOTOR VEHICLE TAB RENEWAL'14 CHEVY #2480 & #3205 12.00 06/14/2016 191444 MINNESOTA POLLUTION CONTROL AGENCY WWTF INDIVIDUAL ANNUAL PERMIT FEE 14,350.00 06/14/2016 191445 MINNESOTA RURAL WATER ASSN REG FEE- C FRANEK 125.00 06/14/2016 191446 MINNESOTA VALLEY TESTING LAB BOD TESTING 998.00 06/14/2016 191447 MMC REBUILD BUILDING 30 HEATING VALVE-WWTF 6,986.20 06/14/2016 191448 MN APA JOB POSTING REQUEST 25.00 06/14/2016 191449 MOTZKO, ADDIE ACERO TRUE BELIEVER - 2016 HUTCHINSON SC 1,000.00 06/14/2016 191450 MRPA HUTCHINSON MEN'SSLOWPITCH 10.00 06/14/2016 191451 MUNICIPAL BUILDERS INC INSTALL P -TRAP IN CHEMICAL PIT (WATER) 10,040.00 06/14/2016 191452 NELSON, JUDD LOST IN SPACE- 2016 HUTCHINSON SCULPTURE 1,500.00 06/14/2016 191453 NERO ENGINEERING WTP AIR GAP, MBR BLOWER STUDY, WELL #6-M 2,016.56 06/14/2016 191454 NORDMAN, KATHY DAYCARE CHILD DROPPING OUT OF LESSONS 72.00 06/14/2016 191455 NORTH AMERICAN RESCUE COVER, CAT G7 RIGID TO, 354.27 06/14/2016 191456 NORTH CENTRAL LABORATORIES PHENOLPHTHALEIN 129.40 06/14/2016 191457 NORTH STAR DENTAL SERVICES PRESSURE GAUGE, REPAIRED STERILIZER 672.35 06/14/2016 191458 NORTH STAR INDUSTRIAL ARTS STEGAPLOW FOR 2016 HUTCHINSON SCULPTURE 1,000.00 06/14/2016 191459 NORTHERN BUSINESS PRODUCTS TOWEL, PAPER, KLEENEX, TISSUE 605.46 06/14/2016 191460 NORTHERN STATES SUPPLY INC MAINT REAMER 84.00 06/14/2016 191461 NU -TELECOM JUNE PHONE SERVICE 4,330.90 06/14/2016 191462 O'REILLY AUTO PARTS MUFFLER CLAMP 21.44 06/14/2016 191463 OEM REPAIR & REPLACE RUSTED/BROKEN I BEAMS A 6,086.37 06/14/2016 191464 OFFICE OF MN IT SERVICES APRIL SERVICE 104.55 06/14/2016 191465 OLSON, JOHN FUEL FOR TRIP TO FAIR SD -CITY VEHICLE US 34.86 06/14/2016 191466 OLSON, KEVIN SAFETY FOOTWEAR 169.99 06/14/2016 191467 PAGE, JEFFREY EDA MEETING SUPPLIES 29.58 06/14/2016 1191468 1 PAPER ROLL PRODUCTS 18 1/2'X11 X1000 SHEETS 109.90 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 05/25/2016 - 06/14/2016 Check Date -------------------- 06/14/2016 Check -------------- 191469 Vendor Name --------------------------------------------------------------- PAUSTIS WINE COMPANY Description ----------------------------------------------------------------------- MAY PURCH Amount -------------------- 1,352.12 06/14/2016 191470 PHILLIPS WINE & SPIRITS MAY PURCH 21,858.59 06/14/2016 191471 PINE PRODUCTS 200 LBS OF BLACK COLORANT 150.00 06/14/2016 191472 PLAISTED COMPANIES 3/8 COMPOSTED PINE 5,455.84 06/14/2016 191473 POSTMASTER JULY NEWSLETTER 147.00 06/14/2016 191474 PRIEVE LANDSCAPING & LAWN CARE ROUND UP ROCK BEDS 106.88 06/14/2016 191475 PRO AUTO MN INC. REMOVE & REPLACE BOTH REAR BRAKE CALIPE 418.99 06/14/2016 191476 PROMAXX TRUCK PARTS ASSY BRACKET, PP -CCM, PP -MID 743.83 06/14/2016 191477 QUADE ELECTRIC LAMPS 60.00 06/14/2016 191478 QUILL CORP BP CENTER PULL TOWEL, PAPER TOWELS, PLAT 397.84 06/14/2016 191479 RJ LTRANSFER FREIGHT 4/20-5/11/16 1,334.00 06/14/2016 191480 RANGER GM 2016 CAPRICE - PD SQUAD CAR 26,208.99 06/14/2016 191481 RED BULL DISTRIBUTION COMPANY RED BULL 85.00 06/14/2016 191482 REFLECTIVE APPAREL FACTORY INC ANSI II MESH SURVEYORS VEST, ANSI 3 THE 2,689.93 06/14/2016 191483 REINER CONTRACTING DEMOLITION PERMIT FOR HOUSE AT 430 WATER 126.00 06/14/2016 191484 REINER ENTERPRISES INC FLATBED TRUCKING 5/6-5/13/16 7,172.68 06/14/2016 191485 RITE INC SUPPORT 10 HRS - LIQUOR STORE POS SOFTWARE 1,067.68 06/14/2016 191486 ROGERS, AMBER ROOKIE BB CANCELLED 40.00 06/14/2016 191487 ROYALTIRE BD DLT CAP 227.94 06/14/2016 191488 RUNNING'SSUPPLY ROUNDUP 238.96 06/14/2016 191489 SCHMIDT, CANDICE SHELTER REFUND 5/28 NORTHWOODS PARK 20.00 06/14/2016 191490 SCHOOL DIST # 423 APRIL ACTIVITIES 5,222.51 06/14/2016 191491 SEBORA, MARC COURT 152.75 06/14/2016 191492 SEH CIVIL 3D/CAD TRAINING, PROJ 131977 4,285.89 06/14/2016 191493 SEPPELT, MILES REG FOR EDAM EVENT, SB2030 WORKSHOP,MCLE 147.41 06/14/2016 191494 SHAW, KAREN PILATES & YOGA 210.00 06/14/2016 191495 SITYANN TRUCKING, LLC COMPOST LOAD TO ELK RIVER 1,250.00 06/14/2016 191496 SOUTHERN WINE & SPIRITS OF MN MAY PURCH 17,437.53 06/14/2016 191497 SPARTAN STAFFING WK ENDING 5/8/16 9,373.90 06/14/2016 191498 STAPLES ADVANTAGE BUNNOMATIC 10 CUP COFFEE BREWER 1,017.45 06/14/2016 191499 STAR TRIBUNE SUBSCRIPTION 6/2016-6/2017 169.00 06/14/2016 191500 STEVENS ENGINEERS INC BURICH ARENA PHASE 3, CONCEPTUAL PLANNIN 1,900.00 06/14/2016 191501 STRATEGIC EQUIPMENT AND SUPPLY BAGS, PASTIC LIDS & CUPS 329.88 06/14/2016 191502 STREICH TRUCKING LOAD 5/17-5/18 1,325.00 06/14/2016 191503 STREICHERS .223 CAL AMMO 75 GR GOLD DOT SP 1,895.70 06/14/2016 191504 TASC 7/1/16 - 9/30/16 HSA Adm. Fees 1,108.05 06/14/2016 191505 TASC July 2016 Flex Adm. Fees 104.80 06/14/2016 191506 TIEGS, JIM RESIDENTIAL BUILDING INSPECTOR EXAM 199.00 06/14/2016 191507 TKO WINES MAY PURCH 499.50 06/14/2016 191508 TOWMASTER INC. CK FLOW & PRESSURE ON WET APP SIDE OF SY 513.00 06/14/2016 191509 TOWN & COUNTRY TIRE TIRE MOUNTING- 2007 FORD F550 103.04 06/14/2016 191510 TRAFFIC MARKING SERVICE INC 4" BROKEN LINE YELLOW, 4" SOLID LINE YEL 6,841.55 06/14/2016 191511 TRI COUNTY WATER ROFI 138.00 06/14/2016 191512 TRIMBO, DAVID SHAMPOO INVESTIGATION, POLICE DEPT DISPA 395.00 06/14/2016 191513 TROYER, STEPHANIE REFUND FOR CANCELLED CLASS 40.00 06/14/2016 191514 TWO WAY COMMUNICATIONS INC RADIOS- LYLE & COMPOST 424.56 06/14/2016 191515 U.S. WATER SERVICES LIQUID POLYMER (4 BARRELS @ 450 IBS EA) 4,134.28 06/14/2016 191516 UNITED FARMERS COOP FUEL 26,562.75 06/14/2016 191517 URBAN SPRITE MEDIA :15 RADIO SPOTS INSIDE GARDEN BITE WITH 750.00 06/14/2016 191518 US BANK EQUIPMENT FINANCE CONTRACT ALLOWANCE 5/20-6/20 405.20 06/14/2016 191519 USA BLUE BOOK MALE X MALE HEX, ADAPTER FOR FIRE HOSE 1,113.41 06/14/2016 191520 USAQUATICS HUT13016 HUTCHINSON AQUATIC CENTER 25,940.00 06/14/2016 191521 VERIZON WIRELESS APR24-MAY23'16 USAGE 2,685.79 06/14/2016 191522 VIKING BEER MAY PURCH 30,375.33 06/14/2016 191523 VIKING COCA COLA MISC BEVERAGES 585.80 06/14/2016 191524 VINOCOPIA INC MAY PURCH 3,583.58 06/14/2016 191525 VOLL, TONY REFUND FOR TOURNAMENT FEES 260.00 06/14/2016 191526 WAHL, GARY INVADERS - 2016 HUTCHINSON SCULPTURE STR 1,000.00 06/14/2016 191527 WALSER, DON REFUND FOR CLASS 36.00 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 05/25/2016 - 06/14/2016 Check Date -------------------- 06/14/2016 Check -------------- 191528 Vendor Name --------------------------------------------------------------- WASTE MANAGEMENT OF WI -MN Description ----------------------------------------------------------------------- PROFILE CHARGE Amount -------------------- 5,273.21 06/14/2016 191529 WELLS FARGO MISC PURCH 7,586.33 06/14/2016 191530 WEST CENTRAL SANITATION INC. 1700 BUTLER FIELD- MAY 381.46 06/14/2016 191531 WINE COMPANY, THE JUNE PURCH 663.55 06/14/2016 191532 WINE MERCHANTS INC MAY PURCH 2,344.48 06/14/2016 191533 WITTE, SARA PLANT SALE 85.50 06/14/2016 191534 WM MUELLER & SONS - SEPARATE CK L1P16-01 REQ#1 210,977.95 06/14/2016 191535 YOUNG, DIANNA REFUND CLASS CANCELLED 40.00 06/14/2016 191536 ZARNOTH BRUSH WORKS INC ZBW-CW-MSD, MOBIL POLY CABLEWRAP BROOM R 416.00 06/14/2016 191537 ZELLER STUDIO GODDESS OF THE GRAPES -2016 HUTCHINSON SCULPT 1,000.00 Grand Total I I 1 1,195,188.60 HUTCHINSON CITY COUNCIL ci vof 0' a_ � Request for Board Action 79 M-W Agenda Item: RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGIg Department: EDA LICENSE SECTION Meeting Date: 6/14/2016 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: Miles R. Seppelt Reviewed by Staff r-1 Public Hearing Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The Hutchinson Economic Development Authority is proposing that an Economic Development Tax Increment Financing District be established to help pay for a portion of the planned Hutchinson Enterprise Center, our small business incubator. A TIF District for the incubator will allow us to capture any property taxes generated by the facility in order to pay for certain qualifying project costs, such as the parking lot, site work and so forth. The final step in establishing a TIF District is for the City Council to hold a public hearing and adopt the resolution establishing the TIF District. The EDA Board has reviewed the TIF plan and is recommending approval. If you have any questions or need additional information, please contact me anytime at 234-4223. BOARD ACTION REQUESTED: Adoption of the resolution establishing TIF District 4-17 (please see ATTACHED) 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: Council member CITY OF HUTCHINSON MCLEOD COUNTY STATE OF MINNESOTA introduced the following resolution and moved its adoption: RESOLUTION NO. 14573 RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4; AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 4-17 THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. BE IT RESOLVED by the City Council (the "Council") of the City of Hutchinson, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. The City Council of the City of Hutchinson (the "City") has heretofore established Development District No. 4 and adopted the Development Program therefor. It has been proposed by the City that the City adopt a Modification to the Development Program (the "Development Program Modification") for Development District No. 4 (the "Project Area") and establish Tax Increment Financing District No. 4-17 (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program and Plan"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.124 to 469.133 and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act") all as reflected in the Program and Plan, and presented for the Council's consideration. 1.02. The City has investigated the facts relating to the Program and Plan and has caused the Program and Plan to be prepared. 1.03. The City has performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Program and Plan, including, but not limited to, notification of McLeod County and Independent School District No. 423 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Program and Plan by the City Planning Commission, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the "Reports") relating to the Program and Plan and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Program and Plan. The Reports include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. 1.06. The City is expanding the boundaries of the Project Area, in part, to include the District. Section 2. Findings for the Adobtion and Annroval of the DeVelonment Program Modification 2.01. The Council approves the Development Program Modification, and specifically finds that: (a) the land within the Project area as expanded would not be available for redevelopment without the financial aid to be sought under this Development Program; (b) the Development Program, as modified, will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project by private enterprise; and (c) that the Development Program, as modified, conforms to the general plan for the development of the City as a whole. Section 3. Findings for the Establishment of Tax Increment Financing District No. 4-17. 3.01. The Council hereby finds that the District is in the public interest and is an "economic development district" under Minnesota Statutes, Section 469.174, Subd. 12 of the Act. 3.02. The Council further finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Tax Increment Financing Plan, that the Program and Plan conform to the general plan for the development or redevelopment of the City as a whole; and that the Program and Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the redevelopment or development of the District by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. Section 4. Public Puraose 4.01. The adoption of the Program and Plan conforms in all respects to the requirements of the Act and will result in increased employment in the state and will result in preservation and enhancement of the tax base of the State and thereby serves a public purpose. For the reasons described in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. The business incubator will receive assistance needed to make this development financially feasible and keep the rents at a lower than market rate to assist in the growth of new business in the City. Section 5. Approval and Adoption of the Program and Plan. 5.01. The Program and Plan, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the City Administrator. 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Program and Plan and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03 The Auditor of McLeod County is requested to certify the original net tax capacity of the District, as described in the Program and Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the City of Hutchinson is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 5.04. The City Administrator is further authorized and directed to file a copy of the Program and Plan with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. The motion for the adoption of the foregoing resolution was duly seconded by Council member , and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: June 14, 2016 Gary Forcier, Mayor (Seal) ATTEST: Matt Jaunich, City Administrator EXHIBIT A RESOLUTION NO. 14573 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 as required pursuant to M. S., Section 469.175, Subd. 3 are as follows: Finding that the Tax Increment Financing District No. 4-17 is an economic development district as defined inM.S., Section 469.174, Subd. 12. Tax Increment Financing District No. 4-17 is a single parcel within the City's Development District No. 4, delineated in the TIF Plan, for the purpose of financing economic development in the City through the use of tax increment. The District is in the public interest because it will facilitate the construction of the Hutchinson Enterprise Center, a 20,000 square foot small business incubator in the City which will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; it will increase employment in the state, and preserve and enhance the tax base of the state. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of Tax Increment Financing District No. 4-1 7permitted by the TIFPIan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the development proposed in this plan will facilitate the creation and growth of new manufacturing businesses that meet the City's objectives for economic development. The cost of site and public improvements makes development of the facility where lower than market rents can be realized infeasible without tax increment assistance. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIFPIan: The City supported this finding on the grounds that the cost of site and public improvements add to the total development cost. The project is designed to facilitate and assist new business starts in the City. In order to keep the rents at a level that will allow growth, along with funds from a capital projects grant from the State, funds from the Community Improvement Fund, EDA MIF funds, tax increment is required. The City reasonably determines that no other development of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total increase in market value will be $1,505,300. C. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $348,666. d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $1,156,634 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the TIF Plan for Tax Increment Financing District No. 4-17 conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Development District No. 4 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, increased tax base of the State, and add a high quality development to the City. Tax Increment Financing District Overview City of Hutchinson Tax Increment Financing District No. 4-17 The following summary contains an overview of the basic elements of the Tax Increment Financing Plan for Tax Increment Financing District No. 4-17. More detailed information on each of these topics can be found in the complete Tax Increment Financing Plan. Proposed action: ➢ Establishment of Tax Increment Financing District No. 4-17 (District) and the adoption of a Tax Increment Financing Plan (TIF Plan). Modification of the Development Program for Development District No. 4 which includes the establishment of Tax Increment Financing District No. 4-17 and represents a continuation of the goals and objectives set forth in the Development Program for Development District No. 4. Passing an interfund loan in conjunction with the District. Type of TIF District: An economic development district Parcel Numbers: 23.494.0060 Proposed The District is being created to enable the EDA and City to facilitate the Development: construction of the Hutchinson Enterprise Center, a 20,000 square foot small business incubator in the City. Please see Appendix A of the TIF Plan for a more detailed project description. Maximum duration: The duration of the District will be 8 years from the date of receipt of the first increment (9 years of increment). The City expects to receive the first tax increment in 2018. It is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after December 31, 2026, or when the TIF Plan is satisfied. Estimated annual tax Up to $52,700 increment: ISEHLERS LEADERS IN PUBLIC FINANCE Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that may be expended: Site Improvements.................................................................$365,000 Administrative Costs (up to 10%) ............................................$45,000 PROJECT COSTS TOTAL ...................................................$410,000 Interest.....................................................................................$85,000 PROJECT COSTS TOTAL ................................................ See Subsection 2-10, on page 2-5 of the TIF Plan for the full budget authorization. Form of financing: As presently proposed, the project is expected to be financed by an interfund loan. Administrative fee: Up to 10% of annual increment, if costs are justified. Interfund Loan If the City wants to pay for administrative expenditures from a tax increment Requirement: fund, it is recommended that a resolution authorizing a loan from another fund be bassed PRIOR to the issuance of the check. 4 Year Activity Rule After four years from the date of certification of the District one of the (§ 469.176 Subd. 6) following activities must have been commenced on each parcel in the District: • Demolition • Rehabilitation • Renovation • Other site preparation (not including utility services such as sewer and water) If the activity has not been started by approximately June 2020, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 5 Year Rule Within 5 years of certification revenues derived from tax increments must be (§ 469.1763 Subd. 3) expended or obligated to be expended. Any obligations in the District made after approximately June 2021, will not be eligible for repayment from tax increments. The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required pursuant to M.S., Section 469.175, Subd. 3, are included in Exhibit A of the City resolution. Page 2 isEHLERS LEADERS IN PUBLIC FINANCE As of June 7, 2016 Draft for Public Hearing Modification to the Development Program for Development District No. 4 and the Tax Increment Financing Plan for the establishment of Tax Increment Financing District No. 4-17 (an economic development district) within Development District No. 4 City of Hutchinson McLeod County State of Minnesota Public Hearing: June 14, 2016 Adopted: 651-697-8555 ASSOCIATES,306 5 Drive, Roseville, Minnesota 1EHLERS 65169785001�w.hlesncwww.ehlers-inc.com Table of Contents (for reference purposes only) Section 1 - Modification to the Development Program for Development District No. 4 ............................................. 1-1 Foreword............................................................. 1-1 Section 2 - Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 ................................. 2-1 Subsection 2-1. Foreword ............................................... 2-1 Subsection 2-2. Statutory Authority ........................................ 2-1 Subsection 2-3. Statement of Objectives ................................... 2-1 Subsection 2-4. Development Program Overview ............................ 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired . 2-2 Subsection 2-6. Classification of the District ................................. 2-2 Subsection 2-7. Duration and First Year of Tax Increment of the District ........... 2-3 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements ................ 2-3 Subsection 2-9. Sources of Revenue/Bonds to be Issued ...................... 2-4 Subsection 2-10. Uses of Funds ........................................... 2-5 Subsection 2-11. Business Subsidies ....................................... 2-5 Subsection 2-12. County Road Costs ....................................... 2-6 Subsection 2-13. Estimated Impact on Other Taxing Jurisdictions ................. 2-7 Subsection 2-14. Supporting Documentation ................................. 2-8 Subsection 2-15. Definition of Tax Increment Revenues ........................ 2-8 Subsection 2-16. Modifications to the District ................................. 2-9 Subsection 2-17. Administrative Expenses ................................... 2-9 Subsection 2-18. Limitation of Increment ................................... 2-10 Subsection 2-19. Use of Tax Increment .................................... 2-11 Subsection 2-20. Excess Increments ...................................... 2-11 Subsection 2-21. Requirements for Agreements with the Developer .............. 2-11 Subsection 2-22. Assessment Agreements ................................. 2-12 Subsection 2-23. Administration of the District ............................... 2-12 Subsection 2-24. Annual Disclosure Requirements ........................... 2-12 Subsection 2-25. Reasonable Expectations ................................. 2-13 Subsection 2-26. Other Limitations on the Use of Tax Increment ................. 2-13 Subsection 2-27. Summary .............................................. 2-13 Appendix A Project Description...................................................... A-1 Appendix B Map of Development District No. 4 and the District ............................. B-1 Appendix C Description of Property to be Included in the District ............................ C-1 Appendix D Estimated Cash Flow for the District ........................................ D-1 Appendix E Minnesota Business Assistance Form ....................................... E-1 Appendix F Findings Including But/For Qualifications ..................................... F-1 Section 1 - Modification to the Development Program for Development District No. 4 Foreword The following text represents a Modification to the Development Program for Development District No. 4. This modification represents a continuation ofthe goals and objectives set forth in the Development Program for Development District No. 4. Generally, the substantive changes include the establishment of Tax Increment Financing DistrictNo. 4-17 and expansion ofthe geographical boundaries of Development District No. 4. For further information, a review ofthe Development Program for Development District No. 4, most recently modified September 8, 2015, is recommended. It is available from the City Administrator or Economic Development Director at the City ofHutchinson. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Development District No. 4. Boundaries of Development District No. 4 The boundaries of Development District No. 4 are being expanded to include Tax Increment Financing District No. 4-17. City of Hutchinson Modification to the Development Program for Development District No. 4 1-1 Section 2 - Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 Subsection 2-1. Foreword The City of Hutchinson (the "City"), staff and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No. 4-17 (the "District"), an economic development tax increment financing district, located in Development District No. 4. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City has certain statutory powers pursuant to Minnesota Statutes Sections 469.124 to 469.133, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Development Program for Development District No. 4. Subsection 2-3. Statement of Objectives The District currently consists of one parcel of land and adjacent and internal rights-of-way. The District is being created to facilitate the construction of the Hutchinson Enterprise Center, a 20,000 square foot small business incubator in the City. Please see Appendix A for further District information. The City has not entered into an agreement at the time of preparation of this TIF Plan, but development is likely to occur in 2016. This TIF Plan is expected to achieve many of the objectives outlined in the Development Program for Development District No. 4. The activities contemplated in the Modification to the Development Program and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Development District No. 4 and the District. Subsection 2-4. Development Program Overview 1. Property to be Acquired - Selected property located within the District may be acquired by the City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. 5. The City proposes both public and private infrastructure within the District. The proposed reuse of private property within the District will be for a manufacturing or warehousing facility, andthere will be continued operation of Development District No. 4 afterthe capital City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 2-1 improvements within Development District No. 4 have been completed. Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The City currently owns the property to be included in the District. Subsection 2-6. Classification of the District The City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended, inclusive, finds that the District, to be established, is an economic development district pursuant to M. S., Section 469.174, Subd. 12 as defined below: "Economic development district" means a type of tax incrementfinancing district which consists of any project, or portions of a project, which the authority finds to be in the public interest because: (1) it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; or (2) it will result in increased employment in the state; or (3) it will result in preservation and enhancement of the tax base of the state. The District is in the public interest because it will meet the statutory requirement from clause 2 and 3. Pursuant to M.S., Section 469.176, Subd. 4c, revenue derived from tax increment from an economic development district may not be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities (determined on the basis of square footage) are used for a purpose other than: (1) The manufacturing or production of tangible personal property, including processing resulting in the change in condition of the property; (2) Warehousing, storage, and distribution of tangible personal property, excluding retail sales; (3) Research and development related to the activities listed in items (1) or (2); (4) Telemarketing if that activity is the exclusive use of the property; or (5) Tourism facilities; (6) Space necessary for and related to the activities listed in items (1) to (5) In meeting the statutory criteria the City relies on the following facts and findings The facilities in the District meet the conditions of Purposes 1, 2, and 6. The District is being created to assist in the construction of a 20,000 square foot building, the Hutchinson Enterprise Center. The proposed facility will be used as an incubator for new companies manufacturing goods yet to be determined and related activities. Pursuant to M. S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of MS, Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 2-2 Subsection 2-7. Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and M. S., Section 469.176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. I b., the duration of the District will be 8 years after receipt of the first increment by the City. The date of receipt by the City of the first tax increment is expected to be 2018. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2026, or when the TIF Plan is satisfied. If increment is received in 2017, the term of the District will be 2025. The City reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements PursuanttoM. S., Section 469.174, Subd. 7 andM. S., Section 469.177, Subd. l , the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2015 for taxes payable 2016. Pursuant to M. S., Section 469.177, Subds. I and 2, the County Auditor shall certify in each year (beginning in the payment year 2018) the amount by which the original value has increased or decreased as a result of Change in tax exempt status of property; Reduction or enlargement of the geographic boundaries of the district; Change due to adjustments, negotiated or court-ordered abatements; Change in the use of the property and classification; Change in state law governing class rates; or Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTO, no value will be captured and no tax increment will be payable to the City. The original local tax rate for the District will be the local tax rate for taxes payable 2016, assuming the request for certification is made before June 30, 2016. The ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Development District No. 4, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2018. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 2-3 Project Estimated Tax Capacity upon Completion (PTC) $35,203 Original Estimated Net Tax Capacity (ONTO) $1,421 Estimated Captured Tax Capacity (CTC) $33,782 Original Local Tax Rate 1.55999 Pay 2016 Estimated Annual Tax Increment (CTC x Local Tax Rate) $52,700 Percent Retained by the City 100% Tax capacity includes a 1.5% inflation factor for the duration of the District. The tax capacity included in this chart is the estimated tax capacity of the District in year 9. The tax capacity of the District in year one is estimated to be $31,250. Pursuant to M.S., Section 469.177, Subd. 4, the City shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M. S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and found no parcels for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Subsection 2-9. Sources of Revenue/Bonds to be Issued The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by a interfund loan. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $450,000 Interest $45,000 TOTAL $495,000 The City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $410,000. Such bonds maybe in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 2-4 Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the construction the Hutchinson Enterprise Center, a 20,000 square foot small business incubator in the City. The City has determined that it will be necessary to provide assistance to the project for certain District costs, as described. The City has studied the feasibility of the development of property in and around the District. To facilitate the establishment and development of the District, this TIF Plan authorizes the use of tax increment financing to pay forthe cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. USES OF TAX INCREMENT FUNDS TOTAL Site Improvements/Preparation $365,000 Administrative Costs (up to 10%) $45,000 PROJECT COST TOTAL $410,000 Interest $85,000 PROJECT AND INTEREST COSTS TOTAL $495,000 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in Subsection 2-9. Estimated capital and administrative costs listed above are subject to change among categories by modification of the TIF Plan without hearings and notices as required for approval of the initial TIF Plan, so long as the total capital and administrative costs combined do not exceed the total listed above. Further, the City may spend up to 20 percent of the tax increments from the District for activities (described in the table above) located outside the boundaries of the District but within the boundaries of the Project (including administrative costs, which are considered to be spend outside the District), subject to all other terms and conditions of this TIF Plan. Subsection 2-11. Business Subsidies Pursuant to M.S., Section 116J.993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than $150,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined MMS, Section 116J 552, Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 2-5 hazardous substance subdistrict as defined under M. S., Section 469.174, Subd. 23; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers' compensation and unemployment compensation; (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S., Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of $150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100. The City will comply with M.S., Sections 116J.993 to 116J.995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-12. County Road Costs Pursuant to M. S., Section 469.175, Subd. ]a, the county board may require the City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the City within forty-five days of receipt of this TIF Plan. In the opinion of the City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The City is aware that the county could claim that tax increment should be used for county roads, even after the public hearing. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 2-6 Subsection 2-13. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: IMPACT ON TAX BASE The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the actual Pay 2016 rate. The total net capacity for the entities listed above are based on actual Pay 2016 figures. Pursuant to M. S. Section 469.175 Subd. 2(b) : (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $450,000; (2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District on police protection is not expected. The City police department does track all calls for service including property -type calls and crimes. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment. The probable impact ofthe District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 2-7 2015/Pay 2016 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Completion to Entity Total McLeod County 36,317,959 33,782 0.0930% City of Hutchinson 9,117,687 33,782 0.3705% Hutchinson ISD No. 423 15,241,713 33,782 0.2216% IMPACT ON TAX RATES Pay 2016 Percent Potential Extension Rates of Total CTC Taxes McLeod County 0.510020 32.69% 33,782 17,229 City of Hutchinson 0.739660 47.41% 33,782 24,987 Hutchinson ISD No. 423 0.273720 17.55% 33,782 9,247 Other 0.036590 2.35% 33,782 1,236 Total 1.559990 100.00% 52,700 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the actual Pay 2016 rate. The total net capacity for the entities listed above are based on actual Pay 2016 figures. Pursuant to M. S. Section 469.175 Subd. 2(b) : (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $450,000; (2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District on police protection is not expected. The City police department does track all calls for service including property -type calls and crimes. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment. The probable impact ofthe District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 2-7 the proposed development. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. Sanitary sewer (SAC) and water (WAC) connection fees contributed by the development have not been calculated at the time this TIF Plan was prepared. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $78,975; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same, is $147,105; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 2-14. Supporting Documentation Pursuant to MS Section 469.175, Subd. I (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M. S. Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the City's findings: • Imagine Hutchinson Downtown Vision and Action Plan. • Community Asset Leadership Program of 2007 • Hutchinson Enterprise Center Business Plan of December 2015 Subsection 2-15. Definition of Tax Increment Revenues Pursuant to M. S, Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed underM. S, Section 469.177; The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the authority with tax increments; Principal and interest received on loans or other advances made by the authority with tax increments; Interest or other investment earnings on or from tax increments; Repayments or return of tax increments made to the Authority under agreements for districts for City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 2-8 which the request for certification was made after August 1, 1993. Subsection 2-16. Modifications to the District In accordance with MS, Section 469.175, Subd. 4, any: Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements of MS, Section 469.175, Subd. 4(e); Increase in amount of bonded indebtedness to be incurred; A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; Increase in the portion of the captured net tax capacity to be retained by the City; Increase in the estimate of the cost ofthe District, including administrative expenses, that will be paid or financed with tax increment from the District; or Designation of additional property to be acquired by the City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan. Pursuant to M. S., Section 469.175 Subd. 40, the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If an economic development district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria ofM.S., Section 469.174, Subd. 12 must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the District and (2) (A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the nettax capacity of those parcel(s) in the District's original net tax capacity or (B) the City agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. The City must notify the County Auditor of any modification to the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2-17. Administrative Expenses In accordance with M. S., Section 469.174, Subd. 14, administrative expenses means all expenditures of the City, other than: Amounts paid for the purchase of land; Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the District; Relocation benefits paid to or services provided for persons residing or businesses located in the District; Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M. S., Section 469.178; or Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 2-9 and planning or economic development consultants. Pursuant to M. S., Section 469.176, Subd. 3 for districts for which certification was requested before August 1, 2001, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M. S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. For districts for which certification was requested after July 31, 2001, no tax increment maybe used to pay any administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined MM S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits ofM..S., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the City and the County Treasurer shall pay the amount deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 2-18. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M. S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax incrementfinancing districtpursuanttoM.S., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax incrementfinancing district by the authority or by the owner of the parcel in accordance with the tax incrementfinancing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on thatparcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax incrementfinancingplan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity ofthe tax incrementfinancing district. The county auditor must enforce the provisions ofthis subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February I of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 2-10 street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The City or a property owner must improve parcels within the District by approximately June 2020 and report such actions to the County Auditor. Subsection 2-19. Use of Tax Increment The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: To pay the principal of and interest on bonds issued to finance a project; To finance, or otherwise pay the capital and administration costs of Development District No. 4 pursuant to M.S., Sections 469.124 to 469.133; To pay for project costs as identified in the budget set forth in the TIF Plan; To finance, or otherwise pay for other purposes as provided in M. S., Section 469.176, Subd. 4; To pay principal and interest on any loans, advances or other payments made to or on behalf of the City or for the benefit of Development District No. 4 by a developer; To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/orM.S., Sections 469.178; and To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/orMS, Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by MS, Section 469.176, Subd. 4. Tax increments generated in the District will be paid by McLeod County to the City for the Tax Increment Fund of said District. The City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for City administration (up to 10 percent) and for the costs of public improvement activities outside the District. Subsection 2-20. Excess Increments Excess increments, as defined inM.S., Section 469.176, Subd. 2, shallbe used only to do one or more ofthe following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in Development District No. 4 or the District. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 2-11 Subsection 2-21. Requirements for Agreements with the Developer The City will review any proposal for private development to determine its conformance with the Development Program and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City to demonstrate the conformance of the development with City plans and ordinances. The City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 10 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to M. S., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 10 percent of the acreage, the City concluded an agreement for the development of the property acquired and which provides recourse for the City should the development not be completed. It is currently proposed that the City will construct, own, and operate the building and therefore no development agreement will be executed. Subsection 2-22. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. It is not anticipated that the City will execute a minimum assessment agreement. Subsection 2-23. Administration of the District Administration of the District will be handled by the City Administrator. Subsection 2-24. Annual Disclosure Requirements Pursuant to M. S., Section 469.175, Subds. 5, 6, and 6b the City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before August 1 of each year. M. S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M. S., Section 469.175 Subd. 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 2-12 Subsection 2-25. Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value ofthe site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration ofthe District permitted by the TIF Plan. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon City staff awareness ofthe feasibility of developing the project site(s) within the District. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 2-26. Other Limitations on the Use of Tax Increment General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay the capital and administration costs of Development District No. 4 pursuant to M. S., Sections 469.124 to 469.133. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2. Pooling Limitations. At least 80 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 20 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 80 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 80 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. 5. Subsection 2-27. Summary The City of Hutchinson is establishing the District to preserve and enhance the tax base, and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, telephone (651) 697-8500. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 2-13 Appendix A Project Description The proposed Tax Increment District project would assist in the site preparation for the construction of the Hutchinson Enterprise Center owned by the City of Hutchinson (the "City"). The Hutchinson Enterprise Center will be a 20,000 square foot small business incubator designed to facilitate the creation and growth of new manufacturing businesses in the City of Hutchinson. The project will address the need to diversify the local economy and encourage more small to mid-sized companies in the community. Business incubators nurture the development of entrepreneurial companies, helping them survive and grow during the start-up period, when they are most vulnerable. These programs provide client companies with business support services and resources tailored to young firms. The goals ofthe incubation program include: Establish a program to grow companies & promote entrepreneurship. Attract entrepreneurs to the community. Diversify the local economy (add more small / mid-size companies). Populate the city's industrial park. Expand the tax base of the community. Expand employment opportunities in the community Create the model business incubation program in the State of Minnesota. Gain a state-wide reputation for innovative economic development and business incubation. Business incubation is a long-term economic development strategy which is driven by the time required for tenant businesses to grow. It is anticipated that tenant companies would remain in the incubator for an average ofthree to five years, until they have sufficient financial resources to build their own facility. Given that goal, the EDA will intentionally set rents as low as possible, currently targeted at $3.50/sf, so as to help companies build equity sufficient for construction of their own facility. The Hutchinson Enterprise Center will be a 20,000 square foot metal building consisting of four 4,000 square foot incubation spaces, one 2,000 square foot incubation space, and up to 2,000 square feet of offices. The facility will feature a 250'x 120' semi -truck maneuvering area and a 260'x 64' parking lot, providing 50 parking spaces. Both lots will be paved with bituminous and feature curb & gutter perimeters. The space will be leased to tenants that meet admission criteria which include: 1. Tenant company must be engaged in some form of manufacturing 2. Their product must be something that is ultimately 'exported' out of the community 3 Tenant company must be of a type that will need to expand physically as the business grows The Hutchinson Enterprise Center will be built with existing financial resources from a capital projects grant from the State, funds from the Community Improvement Fund, EDA MIF funds and increment from the proposed Tax Increment District 4-17. It is anticipated that the increment will be used to pay for site preparation and the construction of the parking lot through an interfund loan. Appendix B-1 Appendix B Map of Development District No. 4 and the District Appendix B-2 m Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcel listed below. Parcel Numbers Address Owner 23.494.0060 1164 BENJAMIN AVE SE CITY OF HUTCHINSON Appendix C-1 Appendix D Estimated Cash Flow for the District Appendix D-1 5/12/2016 IS EHLERS LEADERS INPDDUG nNANGE TIF District No 4-17 City of Hutchinson Hutchinson Enterprise Center DistrictType: Economic Development 0.00% District Name/Number: TIF District No. 4-17 First $150,000 County District #: Over $150,000 2.00% First Year Construction or Inflation on Value 2016 Rental Housing Class Rate (Rental) Existing District - Specify No. Years Remaining Affordable Rental Housing Class Rate (Aff. Rental) Inflation Rate - Every Year: 1.50 Over $106,000 Interest Rate: 4.00 Present Value Date: 1 -Aug -16 Over $500,000 First Period Ending 1 -Feb -17 Tax Year District was Certified: Pay 2016 Over $500,000 Cashflow Assumes First Tax Increment For Development: 2018 1.00% Years of Tax Increment 9 Assumes Last Year of Tax Increment 2026 Fiscal Disparities Election [Outside (A), Inside (B), or NA] NA Incremental or Total Fiscal Disparities Incremental Fiscal Disparities Contribution Ratio 0.0000% Pay 2016 Fiscal Disparities Metro -Wide Tax Rate 0.0000% Pay 2016 Maximum/Frozen Local Tax Rate: 155.999% Pay 2016 Current Local Tax Rate: (Use lesser of Current or Max.) 155.999% Pay 2016 State-wide Tax Rate (Comm./Ind. only used for total taxes) 48.6410% Pay 2016 Market Value Tax Rate (Used for total taxes) 0.19339% Pay 2016 Base Value Assumptions - Page 1 Tax Rates Exempt Class Rate (Exempt) 0.00% Commercial Industrial Preferred Class Rate (C/I Pref.) Original After Conversion Area/ Tax Capacity Conversion Orig. Tax Cap. Phase First $150,000 1.50% Over $150,000 2.00% Commercial Industrial Class Rate (C/1) 2.00% Rental Housing Class Rate (Rental) 1.25% Affordable Rental Housing Class Rate (Aff. Rental) First $106,000 0.75% Over $106,000 0.25% Non -Homestead Residential (Non -H Res. 1 Unit) First $500,000 1.00% Over $500,000 1.25% Homestead Residental Class Rate (Hmstd. Res.) First $500,000 1.00% Over $500,000 1.25% Agricultural Non -Homestead 1.00% Land Market Map # PID Owner Address Market Value Value Market Of Value Used Original Value for District Market Value Original Tax Market Value Class Original After Conversion Area/ Tax Capacity Conversion Orig. Tax Cap. Phase 23.494.0060 City of Hutchinson 94,700 0 94,700 100% 94,700 Pay 2016 Exempt - C/I Pref. 1,421 94,700 94,700 0 1,421 Note: 1. Base values are based email from County auditor on 1/11/16. Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Hutchinson\Housing - Economic - Redevelopment\TIF\TIF Districts\TIF 4-17\TIF Plan Documents\TIF Run Fiscal Implications final rates.xlsm 5/12/2016 EHLERS TIF District No 4-17 City of Hutchinson Hutchinson Enterprise Center Base Value Assumptions - Page 2 Estimated Taxable Market Value Market Value Area/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Total Sq. Ft./Units PROJECT INFORMATION Total Taxable Market Value Property Tax Class (Project Tax Project Tax Capacity Capacity) Project Tax Capacity/Unit Percentage Completed 2016 Percentage Completed 2017 Percentage Completed 2018 Percentage Completed 2019 First Year Full Taxes Payable Manufacturing 1,600,000 1,600,000 1 1,600,000 C/I Pref. 31,250 31,250 100% 100% 100% 100% 2018 TOTAL 1,600,000 31,250 Subtotal Residential 0 0 0 Subtotal CommerciallInd. 1 1,600,000 31,250 Note: 1. Market values are based upon estimates from City staff and County Assessor. Tax Disparities Tax Property Disparities Property Value oacity Tax Caoacitv Caoacitv I Taxes Taxes Taxes Taxes 1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law, and other factors which cannot be predicted. Total Taxes Per Taxes I Sa. Ft./Unit WHAT IS EXCLUDED FROM FOR Total Property Taxes 67,044 Current Market Value -Est. 94,700 less State-wide Taxes (15,200) New Market Value - Est. 1,600,000 less Fiscal Disp. Adj. 0 Difference less Market Value Taxes (3,094) Present Value of Tax Increment less Base Value Taxes (2,216) Difference 1,156,634 Annual Gross TIF Value likely to occur without Tax Increment is less than: Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Hutchinson\Housing - Economic - Redevelopment\TIF\TIF Districts\TIF 4-17\TIF Plan Documents\TIF Run Fiscal Implications final rates.xlsm 5/12/2016 is EHLERS ktAQJR� IN Pfftiq rINAR�[ TIF District No 4-17 City of Hutchinson Hutchinson Enterprise Center Tax Increment Cashflow - Page 3 vroject Vnglnal mscal captured Locai AnnualI Seml-Annual State Admin. Semi -Annual Semi -Annual I F CKIVU % of Tax Tax Disparities Tax Tax Gross Tax Gross Tax Auditor at Net Tax Present ENDING Tax Payment OTC Capacity Capacity Incremental Capacity Rate Increment Increment 0.36% 10% Increment Value Yrs. Year Date 08/01/17 02/01/18 100% 31,250 (1,421) 29,830 155.999% 46,534 23,267 (84) (2,318) 20,865 19,276 0.5 2018 08/01/18 23,267 (84) (2,318) 20,865 38,174 1 2018 02/01/19 100% 31,719 (1,421) 30,298 155.999% 47,265 23,632 (85) (2,355) 21,193 56,992 1.5 2019 08/01/19 23,632 (85) (2,355) 21,193 75,442 2 2019 02/01/20 100% 32,195 (1,421) 30,774 155.999% 48,007 24,004 (86) (2,392) 21,525 93,813 2.5 2020 08/01/20 24,004 (86) (2,392) 21,525 111,825 3 2020 02/01/21 100% 32,677 (1,421) 31,257 155.999% 48,761 24,380 (88) (2,429) 21,863 129,760 3.5 2021 08/01/21 24,380 (88) (2,429) 21,863 147,344 4 2021 02/01/22 100% 33,168 (1,421) 31,747 155.999% 49,525 24,763 (89) (2,467) 22,206 164,854 4.5 2022 08/01/22 24,763 (89) (2,467) 22,206 182,020 5 2022 02/01/23 100% 33,665 (1,421) 32,245 155.999% 50,301 25,151 (91) (2,506) 22,554 199,113 5.5 2023 08/01/23 25,151 (91) (2,506) 22,554 215,871 6 2023 02/01/24 100% 34,170 (1,421) 32,750 155.999% 51,089 25,545 (92) (2,545) 22,907 232,558 6.5 2024 08/01/24 25,545 (92) (2,545) 22,907 248,917 7 2024 02/01/25 100% 34,683 (1,421) 33,262 155.999% 51,889 25,944 (93) (2,585) 23,266 265,207 7.5 2025 08/01/25 25,944 (93) (2,585) 23,266 281,177 8 2025 02/01/26 100% 35,203 (1,421) - 33,782 155.999% 52,700 26,350 (95) (2,626) 23,630 297,079 8.5 2026 08/01/26 26,350 (95) (2,626) 23,630 312,670 9 2026 02/01/27 Total 446,071 (1,606) (44,446) 400,018 Present Value From 08/01/2016 Present Value Rate 4.00% 348,666 (1,255) (34,741) 312,670 Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Hutchinson\Housing - Economic - Redevelopment\TIF\TIF Districts\TIF 4-17\TIF Plan Documents\TIF Run Fiscal Implications final rates.xlsm Appendix E Minnesota Business Assistance Form (Minnesota Department of Employment and Economic Development) A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's activity by April 1 of the following year. Please see the Minnesota Department of Employment and Economic Development (DEED) website at http://www.deed.state.mn.us/Community/subsidies/MBAFFonn.htm for information and forms. Appendix E-1 Appendix F Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 as required pursuant to M. S., Section 469.175, Subd. 3 are as follows: Finding that the Tax Increment Financing District No. 4-17 is an economic development district as defined in M. S., Section 469.174, Subd. 12. Tax Increment Financing District No. 4-17 is a single parcel within the City's Development District No. 4, delineated in the TIF Plan, for the purpose of financing economic development in the City through the use of tax increment. The District is in the public interest because it will facilitate the construction ofthe Hutchinson Enterprise Center, a 20,000 square foot small business incubator in the City which will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; it will increase employment in the state, and preserve and enhance the tax base of the state. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of Tax Increment Financing District No. 4-1 7permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the development proposed in this plan will facilitate the creation and growth of new manufacturing businesses that meet the City's objectives for economic development. The cost of site and public improvements makes development ofthe facility where lower than market rents can be realized infeasible without tax increment assistance. The increased market value of the site that could reasonably be expected to occur without the use of tax incrementfinancing would be less than the increase in marketvalue estimated to resultfrom the proposed development after subtracting the presentvalue ofthe projected tax increments for the maximum duration ofthe TIFDistrict permitted by the TIFPIan: The City supported this finding on the grounds that the cost of site and public improvements add to the total development cost. The project is designed to facilitate and assist new business starts in the City. In order to keep the rents at a level that will allow growth, along with funds from a capital projects grant from the State, funds from the Community Improvement Fund, EDA MIF funds, tax increment is required. The City reasonably determines that no other development of similar scope is anticipated on this site without substantially similar assistance being provided to the development. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is $0. b. If the proposed development occurs, the total increase in market value will be $1,505,300. C. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $348,666. Appendix F-1 d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greaterthan $1,156,634 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the TIF Plan for Tax Increment Financing District No. 4-17 conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 4-17 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Development District No. 4 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minnesota, increased tax base of the State, and add a high quality development to the City. But -For Analysis Current Market Value 94,700 New Market Value - Estimate 1,600,000 Difference 1,505,300 Present Value of Tax Increment 348,666 Difference 1,156,634 Value Likely to Occur Without TIF is Less Than: 1,156,634 Appendix F-2 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Review of Telecommunications Ordinance and Setting Public Hearing Date Department: PW/WW LICENSE SECTION Meeting Date: 6/14/2016 Application Complete N/A Contact: Kent Exner/John Paulson Agenda Item Type: Presenter: John Paulson Reviewed by Staff ❑ Communications, Requests Time Requested (Minutes): 0 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: As previously identified and requested, City staff with consultant support has been administering an effort to revise the City's Telecommunications Ordinance. At this point, City staff would like to provide the City Council an update on the status/results of this process at the June 14th meeting. Also, City staff requests that a public hearing be set on Tuesday, June 28th, at 6:00 PM (City Council Chambers, 111 Hassan St. SE) to consider the adequacy of the revisions/additions to this ordinance and receive any public comments. At this point, City staff anticipates that the first reading of this ordinance will occur at the June 28th meeting and the second reading (ultimate City Council approval) will occur at the July 12th meeting. BOARD ACTION REQUESTED: Set Public Hearing as described above Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Consideration of Charter Commission Amendments - Second Reading Department: Administration LICENSE SECTION Meeting Date: 6/14/2016 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 OF AGENDA ITEM: The City Council reviewed and discussed this item at the last City Council meeting and set the second reading and adoption for June 14, 2016. State law requires that these amendments be approved by all Council Members. Due to the absence of Mayor Forcier, staff will be requesting that this item be tabled to June 28, 2016. BOARD ACTION REQUESTED: Table adoption of Ordinance No. 16-758 to June 28, 2016. 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. 16-758 Publication No. AN ORDINANCE ADOPTING REVISIONS TO SECTIONS 3.01, 4.011, 4.02, 7.05, 7.06 and 10.01 OF HUTCHINSON CITY CHARTER The City Council hereby ordains: WHEREAS, the Hutchinson Charter Commission met on April 27, 2016to 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 3.01 changing the first council meeting in January following a regular municipal election to be held on the first Monday rather than the first business day; and, WHEREAS, the Hutchinson Charter Commission voted unanimously for revisions to be made to Section 4.011 striking language referencing a specific month that the primary election will be held; and, WHEREAS, the Hutchinson Charter Commission voted unanimously for revisions to be made to Section 4.02 adding language allowing the City Council authority to cancel a special election if only one official candidate files for a vacant council seat; and WHEREAS, the Hutchinson Charter Commission voted unanimously for revisions to be made to Section 7.05 changing the date from June 1 to August 1 for the city administrator to prepare and submit to the council a recommended five-year capital improvement program; and, WHEREAS, the Hutchinson Charter Commission voted unanimously for revisions to be made to Section 7.06 changing the date from the first regular Council meeting in September to the second regular Council meeting in September for the budget to be considered; and, WHEREAS, the Hutchinson Charter Commission voted unanimously for revisions to be made to Section 10.01 allowing the Council to approve temporary uses of public property rather than approval being done by ordinance; 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 3.01, 4.011, 4.02, 7.05, 7.06 and 10.01 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 day of , 2016. Attest: Matthew Jaunich, City Administrator Gary T. Forcier, Mayor Section 3.01. COUNCIL MEETINGS. On the first business da Monday in in January following a regular municipal election the council shall meet at the usual place and time for the holding of council meetings. If the first Monday is a holiday, the first Tuesday in January shall then be used. At this time the newly elected members of the council shall assume their duties. Thereafter the council shall meet at such time each month as may be prescribed by ordinance and resolution. The mayor or any other three members of the council may call special meetings of the council upon at least twelve hours' notice to each member of the council and such reasonable public notice as may be prescribed by council rule in compliance with the laws of Minnesota. To the extent provided by law all meetings of the council shall be public, and any citizen shall have access to the minutes and records thereof at all reasonable times. Section 4.011. PRIMARY MUNICIPAL ELECTION. The city shall establish a primary election to coincide with state primary elections. generally the first Tuesday following the seeond Monday in September-. No later than the next city council meeting after the adoption of this charter change, the council shall designate each council seat, whether occupied or not, by a separate numerical number or letter of the alphabet and assign each council member to one of the seats, with the mayor assigned as mayor. Each council seat and the office of mayor so designated, shall be a separate office for each subsequent election. Any incumbent member of the council filing for re-election shall be a candidate only for the office of which he/she is the incumbent, except in the case where an incumbent council member files for the office of mayor. Each person filing for the office of council member shall state in his/her affidavit of candidacy, the designated council seat that he/she is a candidate for. If less than three candidates file for any one seat, the candidates or candidate shall proceed to the general or special election. Incumbency shall not be designated on the ballot. Section 4.02. SPECIAL ELECTIONS. The council may by resolution order a special election and provide all means for holding it. Except as provided in Section 2.09, the city administrator shall give at least two weeks' published notice of a special election. The procedure at such election shall conform as nearly as possible to that prescribed for other city elections, including a primary municipal election if an elective office is to be filled at the special election. In the event that there is only one official candidate on the ballot for the vacant council seat, the special election for the council seat may be canceled by the citv council on its own motion pursuant to Minnesota Statute Section 205.10 subd. 6 and that candidate shall be appointed to serve the remainder of the unexpired term for the vacant council seat. Section 7.05. CAPITAL IMPROVEMENT PROGRAM. The city administrator shall prepare and submit to the council a recommended five-year capital improvement program no later than june J August 1 each year. The capital improvement program shall include a list of all capital improvements proposed to be undertaken during the next five fiscal years, with appropriate supporting information as to the necessity for such improvements; cost estimates, method of financing and recommended time schedules for each such improvement; and the estimated annual cost of operating and maintaining the facilities to be constructed or acquired. This information shall be revised and extended each year for capital improvement still pending or in process. Section 7.06. COUNCIL ACTION ON BUDGET. The budget shall be considered by the €ice second regular monthly meeting of the council in September and at subsequent meetings until a budget is adopted for the ensuing year. The meetings shall be so conducted as to give interested citizens a reasonable opportunity to be heard. The council may revise the proposed budget but no amendment to the budget shall increase the authorized expenditures to an amount greater than the estimated income. The council shall adopt the budget by a resolution which shall set forth the total for each budgeted fund and each department with such segregation as to objects and purposes of expenditures as the council deems necessary for purposes of budget control. The council shall also adopt a resolution levying the amount of taxes provided in the budget and the city administrator shall certify the tax resolution to the county auditor in accordance with law. Adoption of the budget resolution shall constitute appropriations at the beginning of the fiscal year of the sums fixed in the resolution for the several purposes named. Section 10.01. FRANCHISES REQUIRED. No person, firm or corporation shall place or maintain any permanent or semi-permanent fixtures in, over, upon, or under any street or public place for the purpose of operating a public utility or for any other purpose, without a franchise therefore from the City, except where the city's authority is preempted by state or federal law; provided, however, that temporary uses such as street vendors, periodic displays and sales of food, beverages and merchandise, facilities for short-term public gatherings and similar enterprises shall be regulated by permit a-" ordinanee or Council approval as the Council may see fit. A franchise shall be granted only by ordinance, which shall not be an emergency ordinance. Every ordinance granting a franchise shall contain all the terms and conditions of the franchise. The grantee shall bear the costs of publication of the franchise ordinance and shall make a sufficient deposit with the city administrator to guarantee publication before the ordinance is passed. HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Southwind Fifth Addition - Rezoning Department: Planning LICENSE SECTION Meeting Date: 6/14/2016 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The applicant has submitted an application for a land rezoning for property located at 1550 Sherwood St. SE. There was previously an outlot created with the Southwind 4th Addition Plat that was completed back in 2010. The outlot needs to be made bigger in order to be subdivided into developable lots. The lot split and preliminary and final plats were approved at the last Council meeting. Nobody from the public spoke regarding this item. After brief discussion, the Planning Commission recommended unanimous approval of the rezoning from R-1 to R-2. This ordinance is for the second reading and adoption. Please let me know if there are any questions related to these items. BOARD ACTION REQUESTED: Approval of Ordinance No. 16-760 - Rezoning of 1550 Sherwood Street from R-1 to R-2. 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: PUBLICATION NO. 8174 ORDINANCE NO. 16-760 AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, TO REZONE PROPERTY AT 1550 SHERWOOD STREET SE TO R-2 (MEDIUM DENSITY RESIDENTIAL) FROM R-1 (SINGLE FAMILY RESIDENTIAL) AS REQUESTED BY HAZEL SITZ, PROPERTY OWNER. THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS: Section 1. Notice of hearing was duly given and publication of said hearing was duly made and was made to appear to the satisfaction of the City Council that it would be in the best interest of the City to rezone the property from R- 1 (Single Family Residential) to R-2 (Medium Density Residential): Section 2. That the property to be rezoned to R-2 (Medium Density Residential) is described as follows: Sitz Addition, 35.96 Acres, Outlot A, according to the recorded plat thereof, McLeod County, Minnesota. Section 3. This ordinance shall take effect from and after passage and publication. Adopted by the City Council this 14th day of June, 2016. ATTEST: Matthew Jaunich, City Administrator Gary T. Forcier, Mayor Publication Date: HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: 2016 STATE AMATEUR BASEBALL TOURNAMENT SUPPORT REQUEST Department: PRCE LICENSE SECTION Meeting Date: 6/14/2016 Application Complete N/A Contact: Dolf Moon Agenda Item Type: Presenter: John Arlt Reviewed by Staff ✓❑ New Business Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Included in the Council packet is a letter requesting City support of various Departments. The planning for this tournament began well over a year ago. This will be the third State Amateur held in Hutchinson. Approx. 6,000 fans participate in this three weekend event. BOARD ACTION REQUESTED: I would recommend supporting the Huskies request to help with the delivery of the 2016 State Amateur Baseball Tournament. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: ,V � '30 ANA q r DASSE4• Date: May 2 d 2016 To: Mayor, Council and PRCE RE: 2016 MN State Baseball This letter is to request the services of several city departments help in hosting the 93 d Annual MN State Amateur Baseball State Tournament in Hutchinson the last three weekend of August. The estimated crowds of up to 6,000 potential visitors over the three weekends will require extra help beyond the basic services that are normally provided. We have met with city staff, and reviewed the needs and special requests. This letter is to request the services and needs that will be necessary to ensure proper safety and host requirements are addressed. The services include help from several departments including PRCE, Public Works, Waste Water, Police, and Fire. Also included in the needs is the use of city owned equipment and vehicles to be used to help maintain and support the Dave Mooney Baseball Complex area. Each department has been contacted and the requests have been reviewed and are manageable per our first meeting. The Hutch Huskies have agreed to help defray costs of any above and beyond services that may be incurred, however our funds are limited, and this tournament is being hosted to help sustain our program and facility for several years. We appreciate the past and current support. Please feel free to contact any of the tri chairs with further questions. Thank you again and let's play ball in 2016! John Arlt -Facility Chair Bruce Rosenow - General Chair Kyle Messner -Operation Chair HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Massage License - Maria Haack Department: Administration LICENSE SECTION Meeting Date: 6/14/2016 Application Complete Yes Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ✓❑ consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Maria Haack of Maria's Hair Salon has submitted a massage license application into administration for review and processing. The application is for Ms. Haack to provide massage services at her business located at 37 Washington Avenue East. A background check was completed of Ms. Haack and the police department does not object to the issuing of the license. The applicant has completed the appropriate application in full and all pertinent information has been received. BOARD ACTION REQUESTED: Approve issuing massage license to Maria Haack of Maria's Hair Salon to provide massage services at 37 Washington Avenue East. 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: I ] 1 Hassan Siteet Southeast Hutchinson, MN 55354 (320) 587-5151 Fax: (320) 2344240 City of Hutchinson Application for Massage Service License (Under Ord inancc No. 1 l9) tsusmess information A Business Name Business Address Cr --� Zoning District *verb the proposed use is allowed in this =oning district Information {if Corporate Name Corporate Address ` 1aq. o'� License Fee: Operating Year: '/ 1 ti -�Zo 2-Co�-- Phone Number 04 C C -\i 'I.)p y v City State Zip ,state Phone Number Owner(sKorporate Officer(s) {list names and addresses of all persons have a beneficial interest in the Name: —10z; V S- SVVtLd z �lV r� GSSG Address City State Zap Name: Address *Ifnecessary, list additional ownerli Lessee (if Name: City on a separate sheet State Zip b Address City State Zip lerators list all individuals involved in.,Sivinp, massa a services Name: t'A R;i—L Address City State "lip Name: Address City *If necessary, list additional operators on a separate sheet ofnaver State Zip City of Hutchinson Application far Massage Service Page 2 of 5 Nature of Massage Business and Mas c� Services Offered Insurance Coverage Information (attach public liability insurance policy or certificate of insurance as required in Section 119.07 o Hutchinson Li2 Code)p� j —Aojy IT it irn Insurance ompany Agent's Name ''� SCC i fl ry,1 A 'V CO- i Address 7i t 1 � '3 C L- City State Zip IV -1 Phone Number Fax Number Statement Have you or any operators been convicted of any crime, misdemeanor, or violation of any municipal ordinance, other than traffic violations? ❑ YES W�NC If yes, state nature of offense and punishment or penalty therefore: Manager Information (Section 119.06 of Hutchinson City Code requires that the manager of the establishment be "a natural person who is a resident of the City". Please complete the following confirming compliance with this ordinance) Manager Naine Phone Number Manager Address City Checklist all items must be checked "yes" in order for the application to be State Zip The following items need to be completed and/or attached in order for the application to be processed: Copy of insurance that meets or exceeds limits established in the ordinance: Wa yes ❑ no Application fee paid in full (check or money order): j2ryes ❑ no Application completed in full and signed: U I es ❑ no City of Hutchinson Application for Massage Service Page 3 of 5 I hereby certify that I have completely filed out the entire above application, together and that the application is true, correct, and accurate. I fully understand that any person who violates any provision of Chapter 119 of the Hutchinson City Code pertaining to Massage Services is guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding $1000.00 or by imprisonment for a period not exceeding 90 days or both, plus, in either Icas,hecosts of prosecution. 4C:1 _L Sr "afAr Date Print Name Title NOTE: No application will be forwarded to the City Council unless received one week prior to Ilse regular Council meeting, filled out in completion, and fee payment is attached. Internal Use Only Zoning/ /d Building: EU proved ❑denied Notes: , Police JS approved ❑ denied Notes: � City Council ❑ approved ❑ denied Notes: H: Licer"5Mppf ieRtio&Massage.doc .s µ Certificate of Insurance ��• abm�]�-. P • OCCURRENCE COVERAGE ABMP In -Dues Liability Program: ABMP MAILING ADDRESS: MASTER POLICY HOLDER .Associated Bodywork & Massage Professionals Allied Professionals Insurance RPG 2 188 Gemesec Trail Road Suite 200 AGENT/BROKER Golden, CO 80401 Allied Professionals Insurance Services ISSUED BY: POLICY #: API-ABMP-t6 Allied Professionals Insurance Company, A Risk Retention Group, Inc. LIABILITY LIMITS (per ++renlbel ) ANNUAL AGGREGATE ............. ................................ _ $6,000,000 COMMERCIAL GENERAL LIABILITY PER OCCURRENCE LIMIT ...... ............................... -.... $2,000,000 PRODUCTS-COMP/OP .................................................. Included PROFESSIONAL LIABILITY ............... Included GENERAL LIABILITY .............. ....... Included FIRE LIABILITY LIMIT ....... ........................... ____ $100,000 To verify information, contact ABMP. Tel: 303-674-8478 Fax: 303-674-0859 This Policy is issued by your risk retention group. Your risk retention group may not be subject to al I of the insurance laws and regulations of your State. State insurance insolvency guaranty funds are not available for your risk retention group. Coverage is afforded to persons) named herein as Named Insureds according to the terms and conditions of the Policy to which this Certificate refers. No other rights or conditions, except as specifically stated herein, are granted or inferred. COVERAGES THIS IS TO C'EKTIFY THAT THE POLICY OF INSURANCE LISTED ABOVE HAS BEEN ISSULD To THE ENSURED NAMED BELOW_ THE INSURED ACTI VE DATE LISTED BELOW APPLIES ONLY To ELEMENTS OF COVERAGF CONTINUOUSLY IN PLACE SINCE THE INCEPTION OF THE NAMED INSURE}D'SPOLiCY- CHANGES TOCOV£RAQEARE EFFECTIVE RETROACTIVELY ONLY TOTHE DATE THE CHANGE WAS MADE. REPORT 1N WRITING WITHIN 49 HOURS ANY &. ALL CLAIMS, OR INC 10LNTS THAT YOU BELIEVE MAY RESULT IN A CLAIM, EVEN I GROUNDL£M. This Cerl iIIen w, along with the Policy to which it refers, is valid evidence of coverng extended to the Cud ricate Fielder Nut] below. CERTIFICATE HOLDER (Aclive Regislerecl eblenibu•s tine aI ftic with the .AB!1fPMcirrbership Dir'eclor.} Member/Named Insured: Maria Haack Membership I.D. #: 1136350 MelnberlPolicy Term Active: May -17-2016 Member/Policy Term Expires: May -16-2017 Total Member Cost: $ 199 IAB AiP MembaNh ip, hic ludic ip Nlcwbcr Liability Coverage) Authorized Representative CANCELLATION. Should any ofthe above descdb,�d policies he cancelled before the expiration date thereof, the issuing company will endeavor to mail 10 days written notice for non-payment or 40 days written notice for any other reason to the ceitiDcate holder naaied above, but failure to mail such notice shall impo- no obligation or IiabiIity of any kind upon the company, its agents or reprepentad ea. ADDITIONAL INSURED: (rrilh ivteeptiorr date) Coverage is extended subject m all ler+n.s and conditions of rhe Polic,v, HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Consideration of Non-Waiver of Tort Liability Limits for General Liability Department: Finance LICENSE SECTION Meeting Date: 6/14/2016 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Andy Reid Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: As part of the City's renewal of its general liability insurance policy for the period July 2016 through June 2017, the City must decide whether or not to waive the statutory municipal tort liability limits from $500,000 per claimant to $1,500,000 per occurrence. If the City does waive this, then the City must purchase excess liability coverage. Historically the City has not waived the municipal tort because by doing so, the City opens itself up to claims and potential payments above the statutory limit. Staff recommendation is to not waive the tort liability limits. BOARD ACTION REQUESTED: The Council is requested to not waive the tort liability limits for the policy period of July 2014 through June 2015 and for the upcoming policy period of July 2016 through June 2017. 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: HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Project Award for 2016 Hutchinson Downtown Signage Project (L&P16-08) Department: Eng/PBZ LICENSE SECTION Meeting Date: 6/14/2016 Application Complete N/A Contact: Kent Exner/Dan Jochum Agenda Item Type: Presenter: Kent Exner/Dan Jochum Reviewed by Staff ❑ New Business Time Requested (Minutes): 15 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The City received four (4) bids (see attached Bid Tabulation) for the 2016 Hutchinson Downtown Signage (L8/P16-08) project letting on Tuesday, June 7th. The apparent low bidder is Graphic House Inc. of Wausau, Wisconsin, with a bid of $92,560.00 (within the projected project budget parameters). Also, attached is a letter from the project consultant, Hoisington Koegler Group Inc., which recommends the award of this project to the apparent low bidder. Please note that the City will have additional landscaping/grading/surfacing/aesthetic costs to adequately prepare and finish the areas surrounding the proposed sign installations. At this time, these additional costs are estimated to be approximately $25,000. Thus, City staff recommends that a total project cost of $120,000 be established to fully address these improvements. In regards to funding, City staff has identified sources that include the Community Improvement Fund, Economic Development Authority funds, and/or contributions from other organizations. Currently, City staff is working to establish the exact funding allocation/contribution amounts to fully account for the proposed $120,000 (hopefully, will be able to share more details at the meeting). This project's total cost and potential funding were reviewed by the Resource Allocation Committee. City staff will provide a brief overview of the project scope, schedule, bids and costs/funding at the upcoming City Council meeting. The necessary Resolutions to award this project to the above referenced contractor in the amount of $92,560.00 are attached. We recommend approving the provided Resolutions. BOARD ACTION REQUESTED: Approval of Resolutions Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14574 RESOLUTION ACCEPTING BID AND AWARDING CONTRACT LETTING NO. 8/PROJECT NO. 16-08 Whereas, pursuant to an advertisement for bids forthe furnishing of all labor and material forthe improvement of: 2016 Hutchinson Downtown Signage: Fabrication and installation of custom metal and wood wayfinding signs, including shop drawing submittals, structural engineering review, and concrete frost footings. Site restoration work will be by City, bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: Bidder Graphic House Inc of Wausau WI Sign Source of Chanhassen MN Nordquist Sign Company of St Paul MN Capital Sign Associates LLC of Conroe TX Bid Amount $ 92,560.00 $ 94,764.39 $108,439.00 $120,929.90 and whereas, it appears that Graphic House Inc of Wausau WI is the lowest responsible bidder; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: The mayor and city administrator are hereby authorized and directed to enter into a contract with Graphic House Inc of Wausau WI in the amount of $92,560.00 in the name of the City of Hutchinson, for the improvement contained herein, according to the plans and specifications therefor approved by the City Council and on file in the office of the City Engineer. 2. The City Engineer is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed, and the deposit of the successful bidder shall be retained until satisfactory completion of the contract. Adopted by the Hutchinson City Council this 14th day of June 2016. Mayor, Gary Forcier City Administrator, Matt Jaunich CITY OF HUTCHINSON, 111 HASSAN ST SE, HUTCHINSON MN 55350 320-234-4209 BID TABULATION - CITY OF HUTCHINSON LETTING NO. 8/PROJECT NO. 16-08 2016 HUTCHINSON DOWNTOWN SIGNAGE BID OPENING: 06/07/2016 AT 11:00 AM - COMPLETION DATES: SUBSTANTIAL COMPLETION 08/15/2016 - FINAL COMPLETION: 09/15/2016 Graphic House Inc. Sign Source Nordquist Sign Company Capital Sign Associates Jasper Hartinger Terry Heydt Steve Hirtz LLC o a } 9204 Packer Drive 7660 Quattro Drive 945 Pierce Butler Route Brian Lorentzen z Wausau, WI 54409 Chanhassen, MN 55317 St Paul, MN 55104 100 N FM 3083 W vwai o a jasperh@graphichouseinc.com terryh@signsource.com SteveH@Nordquistsign.com Conroe, TX 77303 - 715-842-0402 952-908-9109 612-823-7291 Brian@capitalsignassoc.com fax: 715-848-9108 936-444-3807 BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL BASE BID $92,560.00 $94,764.39 $108,439.00 $120,929.90 BASE BID UNIT QUANTITY UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL 1 321729 DOWNTOWN ENTRY SIGN PROVIDE AND INSTALL LUMPSUM 1.00 $9,950.00 $9,950.00 $12000.00 $12,000.00 $17136.00 $17,136.00 $11791.80 $11,791.80 2 321729 DEPOT ENTRY SIGN PROVIDE AND INSTALL LUMPSUM 1.00 $8,798.00 $8,798.00 $10500.00 $10,500.00 $13217.00 $13,217.00 $9664.00 $9,664.00 3 321729 DOWNTOWN KIOSK PROVIDE AND INSTALL EACH 2.00 $7,998.00 $15,996.00 $9850.00 $19,700.00 $13057.00 $26,114.00 $8240.50 $16,481.00 4 321729 RIVER KIOSK PROVIDE AND INSTALL EACH 3.00 $7,498.00 $22,494.00 $7900.00 $23,700.00 $6869.00 $20,607.00 $8240.50 $24,721.50 5 321729 RIVER DIRECTIONAL SIGN PROFIDEAND INSTALL) EACH 5.00 $5,998.00 $29,990.00 $5500.00 $27,500.00 $4044.00 $20,220.00 $7014.00 $35,070.00 6 321729 PARKING DIRECTIONAL SIGN -SIGNAL ARM PROVIDE ONLY' EACH 6.00 $299.00 $1,794.00 $65.10 $390.60 $292.00 $1,752.00 $1064.20 $6,385.20 7 321729 PARKING DIRECTION SIGN - SIGNPOST PROVIDE ONLY EACH 5.00 $230.00 $1,150.00 $100.751 $503.75 $209.00 $1,045.00 $809.201 $4,046.00 8 321729 PARKING DIRECTIONAL SIGN - LOT MARKER PROVIDE ONLY EACH 12.00 $199.00 $2,388.00 $39.171 $470.04 $123.00 $1,476.00 $1064.20 $12,770.40 ADDITIONAL ITEMS ON NORDQUIST BID NOT ON BID PROPOSAL FORM - ENGINEERING LUMPSUM 1.00 PERFORMANCE & PAYMENT BOND $1,500, PERMITS $995 SALES USE TAX $1 877 $6,872.00 $6,872.00 -L.1$2,500, L8P16-08 -TOTAL BASE BID $92,560.00 $94,764.39 $108,439.00 $120,929.90 Pagel of 1 MEMORANDUM Hoisington Koegler Group Inc. Creating Places that Enrich People's Lives TO: Kent Exner, PE Director of Public works/ City Engineer FROM: Amy Bower, PLA HKGI - Project Landscape Architect CC' : Paul Paige HKGI - Principal in Charge DATE: June 7, 2016 RE: 2016 Hutchinson Downtown signage / letting no. 8 / project no. 16-8 Hoisington Koegler Group, Inc. recommends project award to Graphic House Inc. of Wausau Wisconsin, for a bid award price of $92,560.00 pending approvals by the City of Hutchinson Council. Recommendation is based on the following; HK 3i 1. Graphic House Inc. has submitted the lowest price for bid. 2. Graphic House Inc. has 40 years of full service sign fabrication experience, including similar projects. 3. Phone conversations with Jasper Hartinger indicate Graphic House Inc has an understanding and comfort level with project conditions and requirements. 4. The base bid received meets the project budget and no changes in scope of work are needed This recommendation does not include review of bid submittal requirements of City of Hutchinson. Feel free to call us with any questions. Hoisington Koegler Group Inc. 123 North Third Street, Suite 100 Minneapolis, Minnesota 55401 (612) 338-0800 Fax (612) 338-6838 www.hkgi.com HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Resolution 14572 Approving a Revised Garbage/Recycling/Compost Policy Department: Administration LICENSE SECTION Meeting Date: 6/14/2016 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Please find attached a revised garbage, recycling and compost policy. This policy is being rewritten and presented to you for two reasons. One is to take into account the City Council's desire to allow for a second compost cart for those who would like one. Two is to update the policy to make sure that all of our "unwritten" practices get put onto paper. When we went through the waste hauler contract switch over last year, we discovered that a lot of our current practices weren't on paper and staff wants to ensure that we get those to paper to show a clear-cut policy on what the city does and doesn't due when it comes to garbage, recycling and compost. The rewritten policy encompasses all of our current practices. The previous policy and proposed changes are attached. The previous policy is noted in black with additions noted in red and with a line through. The current policy was last updated in 1995. The proposed new policy also includes language that will allow property owners the option of obtaining a second compost cart for an annual fee of $100 (included in the revisions to the fee schedule). This proposed cost will cover the costs to the city of providing this additional service. Attached for your consideration is a resolution with a "clean version" of the policy. BOARD ACTION REQUESTED: Approve/Deny the resolution which would revise the current garbage, recycling, and compost policy and create an option for a second compost cart Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14572 A RESOLUTION APPROVING A REVISED GARBAGE, RECYCLING, AND COMPOST POLICY (NO. 2.15) WHEREAS, Policy No. 2.15 dealing with refuse, recycling and compost was adopted by the Hutchinson City Council in 1988 and updated in 1995; and WHEREAS, the current 2.15 policy from 1995 is outdated and in need of being updated to address current city practices; NOW THEREFORE BE IT RESOLVED that the Hutchinson City Council hereby approves the attached revised Garbage, Recycling, & Composting Policy (Policy No. 2.15) replacing any previous policies effective immediately. Adopted this 14th day of June, 2016 Gary T. Forcier, Mayor Attest: Matthew Jaunich, City Administrator CITY OF HUTCHINSON REFUSE GARBAGE, RECYCLING & COMPOSTING POLICY NO. 2.15 (REVISED) 4W44�SE GARBAGE The City of Hutchinson has an organized garbage collection system for all single and two family (duplexes) residential dwellings pursuant to Minnesota Statute § 115A.94. Those residential dwellings serviced by the City will be given the option of a 35, 65 or 95 gallon container. All single and two family residential dwellings are required to pay a minimum monthly base charge of a 35 gallon container for the availability of ase garbage service, whether or not the service is utilized. n business that has ., weekly -of,so . elti e that fits into ., 30tinor- nn ,.a eentainer- may ekeese te be tinder- the eit-y billing system. All residential dwellings will be allowed to have one garbage container with duplexes allowed to have up to two. Residential dwellings larger than a duplex, including manufactured housing (mobile homes) parks, and all commercial/industrial properties are not serviced by the City and are serviced on a competitive basis in the private market by a city -licensed commercial hauler. Termination of ase garbage service charges coincides with the water service. Owners/renters must notify the city of any such requests. The existing cart will remain at the residence for a new resident. A new resident shall have -3-9 60 days to change the size of a container at an address at no cost. Other- residents may eh er- size at aa� 7 , tifne but will be ehafged $ 10 at the Changing a container size after the 60 days will result in a delivery fee at a price as determined by the City's fee schedule. In the event of a missed pickup or lack of service, the owner or tenant has the responsibility to notify the City. Within 48. 24 hours the hauler must pick up the ase garbage, per city/hauler contract. Any complaints on garbage service are to be directed to "agars West canitatio,, by eall , 900 - 4 50 93:79 the City's utility billing department. In the event the problem cannot be resolved, the city administrator is to be contacted, with the subsequent referral to the city council, if necessary. A board The City Council may hold a board of review (e4yeatinei!) holds at a public hearing eae M y/jii „ annually or as determined to discuss any proposed rate changes and complaints relating to the garbage service. The public is welcome to provide additional input at this time. RECYCLING single family and dtiple�Ees. For- individuals to r-eeeive the er-edit they must r-eeyele at least eflee per- menth, tttilii4ng their- bar- eeded bitte bin. B i d4ifamily and mebile heme par4s that do fiat have individual billing aeeatifit add sies A,A,40�_ 64F, possible to er-edit. This r-eeyelifig bin should r -e. -m -At -4-j- -A* or-igifial address. All recycling within the City of Hutchinson is provided by McLeod County. COMPOSTING All single family residential dwellings will be provided with one 95 -gallon compost container and all two family (duplexes) residential dwellings will be provided with up to two 95 -gallon composting containers free of charge. All single and two family residential dwellings may receive an additional 95 -gallon compost container for an annual price as determined by the City's fee schedule. In addition to the annual price, a one-time delivery fee for the additional compost container at a price as determined by the City's fee schedule will also be charged. The annual price will not be prorated and customers will be responsible for the annual price even if the service is cancelled within the year. The annual price will automatically renew unless the City is contacted by the customer prior to the renewal date to cancel service. All single and two family residential dwellings may opt out of this service. Residents who opt out of this service will be required to pay a delivery fee if and when they choose to opt back into the service. Residential dwellings larger than a duplex, including manufactured housing (mobile homes) parks, and all commercial/industrial properties are not included in this city service and are serviced on a competitive basis in the private market by a city -licensed commercial hauler. VALET SERVICE Customers have the option of valet pickup service (adjacent to garage/house) for both garbage and compost at a price as determined by the City's fee schedule. Customers wanting this service need to contact the City's utility billing department. EVERY OTHER WEEK SERVICE Customers with a 35 gallon garbage container only may elect to have every other week service at a price as determined by the City's fee schedule. Customers with a garbage container larger than 35 gallons are not eligible for every other week service. Customers wanting this service need to contact the City's utility billing department. EXTRA BAG SERVICE The City will provide stickers at a price as determined by the City's fee schedule for customers in need of extra bag pickup for garbage. The sticker will ensure that the extra bag will be picked up by the City's hauler. Bags without stickers will not be picked up by the Hauler. LOST, DAMAGED, OR MISSING CONTAINERS The City will provide all of its customer's with one garbage and one compost container. Lost, damaged or missing containers shall be replaced and provided to a customer at no charge. The City reserves the right to charge a customer for the cost of a replacement container(s) for repeated instances of needing a new container(s). Approval Date: 1995, Updated June 14, 2016 CITY OF HUTCHINSON GARBAGE, RECYCLING & COMPOSTING POLICY NO. 2.15 GARBAGE The City of Hutchinson has an organized garbage collection system for all single and two family (duplexes) residential dwellings pursuant to Minnesota Statute § 115A.94. Those residential dwellings serviced by the City will be given the option of a 35, 65 or 95 gallon container. All single and two family residential dwellings are required to pay a minimum monthly base charge of a 35 gallon container for the availability of garbage service, whether or not the service is utilized. All residential dwellings will be allowed to have one garbage container with duplexes allowed to have up to two. Residential dwellings larger than a duplex, including manufactured housing (mobile homes) parks, and all commercial/industrial properties are not serviced by the City and are serviced on a competitive basis in the private market by a city -licensed commercial hauler. Termination of garbage service charges coincides with the water service. Owners/renters must notify the city of any such requests. The existing cart will remain at the residence for a new resident. A new resident shall have 60 days to change the size of a container at an address at no cost. Changing a container size after the 60 days will result in a delivery fee at a price as determined by the City's fee schedule. In the event of a missed pickup or lack of service, the owner or tenant has the responsibility to notify the City. Within 24 hours the hauler must pick up the garbage, per city/hauler contract. Any complaints on garbage service are to be directed to the City's utility billing department. In the event the problem cannot be resolved, the city administrator is to be contacted, with the subsequent referral to the city council, if necessary. The City Council may hold a board of review at a public hearing annually or as determined to discuss any proposed rate changes and complaints relating to the garbage service. The public is welcome to provide additional input at this time. RECYCLING All recycling within the City of Hutchinson is provided by McLeod County. COMPOSTING All single family residential dwellings will be provided with one 95 -gallon compost container and all two family (duplexes) residential dwellings will be provided with up to two 95 -gallon composting containers free of charge. All single and two family residential dwellings may receive an additional 95 -gallon compost container for an annual price as determined by the City's fee schedule. In addition to the annual price, a one-time delivery fee for the additional compost container at a price as determined by the City's fee schedule will also be charged. The annual price will not be prorated and customers will be responsible for the annual price even if the service is cancelled within the year. The annual price will automatically renew unless the City is contacted by the customer prior to the renewal date to cancel service. All single and two family residential dwellings may opt out of this service. Residents who opt out of this service will be required to pay a delivery fee if and when they choose to opt back into the service. Residential dwellings larger than a duplex, including manufactured housing (mobile homes) parks, and all commercial/industrial properties are not included in this city service and are serviced on a competitive basis in the private market by a city -licensed commercial hauler. VALET SERVICE Customers have the option of valet pickup service (adjacent to garage/house) for both garbage and compost at a price as determined by the City's fee schedule. Customers wanting this service need to contact the City's utility billing department. EVERY OTHER WEEK SERVICE Customers with a 35 gallon garbage container only may elect to have every other week service at a price as determined by the City's fee schedule. Customers with a garbage container larger than 35 gallons are not eligible for every other week service. Customers wanting this service need to contact the City's utility billing department. EXTRA BAG SERVICE The City will provide stickers at a price as determined by the City's fee schedule for customers in need of extra bag pickup for garbage. The sticker will ensure that the extra bag will be picked up by the City's hauler. Bags without stickers will not be picked up by the Hauler. LOST, DAMAGED, OR MISSING CONTAINERS The City will provide all of its customer's with one garbage and one compost container. Lost, damaged or missing containers shall be replaced and provided to a customer at no charge. The City reserves the right to charge a customer for the cost of a replacement container(s) for repeated instances of needing a new container(s). Approval Date: 1995, Updated June 14, 2016 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Approve/Deny Resolution 14575 Amending the 2016 Fee Schedule Department: Administration LICENSE SECTION Meeting Date: 6/14/2016 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Please find attached a resolution approving a few changes to the 2016 fee schedule. Here are some notes on those changes: Notary Fee -- We are asking that the Council do away with this fee since we will no longer be providing this service to the public due to liability concerns. Garbage Fees -- We are asking you to update our fee schedule to include some additional fees that are currently not on it. Items like the "delivery fee" ($10) and sticker costs for an extra bag ($2) are charges we have been doing for some time, but got missed on the fee schedule. The one new additional charge will be for the extra compost cart fee ($100/annually) BOARD ACTION REQUESTED: Approve/Deny the resolution which would update our current 2016 Fee Schedule Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14575 A RESOLUTION AMENDING THE 2016 FEE SCHEDULE WHEREAS, the City of Hutchinson is empowered by previously passed ordinances to impose fees for services; and WHEREAS, the 2016 Fee Scheduled was adopted in December of 2015 with Resolution 14495; and WHEREAS, since the adoption of the 2016 Fee Schedule there has been a need to amend portions of the fee schedule to take into account needed changes and additions to the Schedule; and WHEREAS, based upon the recommendation of costs for providing these services for various city departments; NOW THEREFORE BE IT RESOLVED that the Hutchinson City Council hereby approves the attached amendments to the 2016 Fee Schedule as was previously established by Resolution 14495. Adopted this 14th day of June, 2016 Gary T. Forcier, Mayor Attest: Matthew Jaunich, City Administrator City of Hutchinson 2016 Fee Schedule Fee Type 2016 Fees Notes 2015 Fees % Chane Last Change Licenses Carnival $525.00 Refundable deposit $525.00 0.0% 2009 Dance Permit $55.00 Short Term $55.00 0.0% 2009 Short -Term Gambling $30.00 Short Term $30.00 0.0% 2009 Garbage & Refuse Haulers: Commercial Residential Recycling Recycling $125.00 $125.00 $55.00 $30.00 /day January 1 -December 31 January 1 -December 31 January 1 -December 31 Per Day $125.00 $125.00 $55.00 $30.00 /day 0.0% 0.0% 0.0% 0.0% 2009 2009 2009 2009 Massage Services $175.00 January 1 -December 31 $175.00 0.0% 2009 Motorized Golf Cart $10.00 January 1 -December 31 $10.00 0.0% 2009 ATV $45.00 3 year license N/A new in 2016 200116n � $ 00 Per- Not.... :. ed it..... /� _/�� /% 2009 Peddler/Solicitor/Transient Merchant $125.00 Per License $125.00 0.0% 2009 Pawn Shops and Precious Metal Dealers Second Hand Goods Dealers $125.00 $125.00 January 1 -December 31 January 1 -December 31 $125.00 $125.00 0.0% 0.0% 2009 2009 Shows/Exhibitions $100.00 Short Term $100.00 0.0% 2010 Tattoo License $175.00 January 1 -December 31 $175.00 0.0% 2009 Taxi Cab License (per cab) $5.00 /cab January 1 -December 31 $5.00 /cab 0.0% 2009 Tobacco License $175.00 January 1 -December 31 $175.00 0.0% 2009 Rental Housing Registration $10.00 /unit $10.00 /unit 0.0% 2009 Food Cart $125.00 $125.00 0.0% 2013 I:\Finance\FEE SCHEDULES\2016 Fee Schedule\2016 Fee Schedule - AMENDED 6-14-2016 Page 1 of 1 6/8/2016 City of Hutchinson 2016 Fee Schedule Fee Type 2016 Fees Notes 2015 Fees % Last Chane Change Garbage Rates: Standard weekly service 30 -gallon container $20.12 per month charge $20.12 0.0% 2008 60 -gallon container $29.02 per month charge $29.02 0.0% 2008 90 -gallon container $39.92 per month charge $39.92 0.0% 2008 Standard bi-weekly service 30 -gallon container $14.16 per month charge $14.16 0.0% 2008 60 -gallon container N/A not available N/A 90 -gallon container N/A not available N/A Weekly valet service 30 -gallon container $28.46 per month charge $28.46 0.0% 2008 60 -gallon container $37.36 per month charge $37.36 0.0% 2008 90 -gallon container $48.26 per month charge $48.26 0.0% 2008 Senior Citizens/Low Income Rate Bi -weekly standard service $14.16 30 -gallon container; per month charge $14.16 0.0% 2008 Bi -weekly valet service (low income) $19.79 30 -gallon container, per month charge $19.79 0.0% 2008 Senior citizen reduced rate (low income) $2.50 per month charge $2.50 0.0% 2008 Senior citizen reduced valet $10.84 per month charge $10.84 0.0% 2008 Senior citizen reduced bi-weekly valet $6.67 per month charge $6.67 0.0% 2008 Cart delivery fee $10.00 $10.00 0.0% 2007 Stickers for extra garbage bag service $2.00 stickers available at City Center Administration window $2.00 0.0% 2007 Compost Carts First 96 gallon cart $0.00 free service $0.00 Second 96 gallon cart (optional) 1 $100.00 jannual billing - not to be prorated if cancelled within year N/A new in 2016 I:\Finance\FEE SCHEDULES\2016 Fee Schedule\2016 Fee Schedule - AMENDED 6-14-2016 Page 1 of 1 6/8/2016 MINUTES Parks, Recreation & Community Education Advisory Board March 7, 2016 Members present were John Rodeberg, Jim Waldron, Elizabeth Hanninen-Scharn, Marsha Anderson, and Don DeMeyer. Also present were Mary Haugen, John McRaith, Rhiannon Kuenzel, and Jody Harms The meeting was called to order at 5:15 pm by John Rodeberg. A motion was made by John Rodeberg to approve minutes from the February 1 meeting and was seconded by Jim Waldron. The board unanimously agreed. OLD BUSINESS Aquatic Center Update • Updated Budget • Recreation Center Updates • Contingency fund • Utilities • Time line Bid opening 3/29 Begin construction 5/15 Opening 5/29/17 NEW BUSINESS • United Way Grants •Applying for three grants. 9$2,500 Recreation scholarships 9$3,000 Adaptive Recreation •$1,500 Senior Center Mailings • Presentations by John McRaith (Recreation), September Jacobsen (Event Center), and Mary Haugen (Arena) were given for 2015 projects and programs. ADJOURNMENT The meeting was adjourned at 6:30 pm. MINUTES Parks, Recreation & Community Education Advisory Board April ll, 2016 Members present were John Rodeberg, Tim Peterson, Marsha Anderson, Marlys Hoeft, and Don DeMeyer. Also present were Dolf Moon, Mary Haugen, and Jody Harms The meeting was called to order at 5:15 pm by John Rodeberg. This meeting was called to review bids for the proposed Aquatics Center. Proposal will be presented to the board April 12. Cost Total cost is proposed at $5.9 million. The cost includes unbudgeted items that would have been addressed over the next few years. Extra items included are recreation center roof, heating unit/boiler, fire panel. Other projects that won't be addressed in this construction project will be deferred, if needed. Timin The building will be ready for fall activities (bathrooms & locker rooms) There will be no tax increase to residents. ADJOURNMENT The meeting was adjourned at 6:00 pm.