No preview available
cp07-26-2016HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, JULY 26, 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, input from constituents, and other questions or information that has notyet been presented or discussed regarding an agenda item) CALL MEETING TO ORDER — 5:30 P.M. (a) Approve the Council agenda and any agenda additions and/or corrections 2. INVOCATION — Crosspoint Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 15488 — Resolution Accepting Donation from Dolores Brunner for Hutchinson Police Department PUBLIC COMMENTS (This 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 speak for 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 July 12, 2016 (b) Workshop Minutes of July 12, 2016 CONSENT AGENDA (The items listedfor coni eration 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 Issuing Short -Term Gambling License to Fire Department Relief Association on September 10, 2016 (b) Consideration for Approval of Purchase of Annual Bag Film Order for CreekSide (c) Consideration for Approval of Resolution No. 14592 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit to Allow Construction for a Pole Buildinu for Storage at 805 Hwy 7 West Parcel B in an I -C Zoning District, Harley Albers, Applicant (d) Consideration for Approval of Contract Between City of Hutchinson and the South Central Minnesota Regional Radio Board and the State of Minnesota for the 800 MHz City/Regional Integrated Public Safety Radio Communication Subsystem CITY COUNCIL AGENDA JULY 26, 2016 (e) Consideration for Approval of Resolution No. 14593 — Resolution Authorizing Redevelopment Grant Application and Committing to Local Match (f) Claims, Appropriations and Contract Payments — Check Register A 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Check Register B PUBLIC HEARINGS (6:00 P.M.) 9. APPROVE/DENY ADOPTION OF A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4, THE PROPOSED ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 4-18 WITHIN DEVELOPMENT DISTRICT NO. 4 AND THE PROPOSED ADOPTION OF A TAX INCREMENT FINANCING PLAN purpose o t is portion o t e agen a is to provi e t e ounci with information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) 10. PRESENTATION OF CITY OF HUTCHINSON FIVE-YEAR CAPITAL IMPROVEMENT PLAN ACCORDING TO CITY CHARTER SECTION 7.05 UNFINISHED BUSINESS NEW BUSINESS 11. APPROVE/DENY ORDINANCE NO. 16-762 - AN ORDINANCE ISSUING FRANCHISE TO CARIBOU COFFEE (FIRST READING, SET PUBLIC HEARING AND SECOND READING AND ADOPTION FOR AUGUST 9, 2016) 12. APPROVE/DENY PAVING PROJECT AT CREEKSIDE 13. APPROVE/DENY PUBLIC WORKS EQUIPMENT ACQUISITIONS a. 2015 Loader -Mount Snow Blower b. 2016 Wheel Loader With Snow Equipment c. Snow Wing Snowplow 14. APROVE/DENY RESOLUTION NO. 14589 — RESOLUTION PLACING PROPOSED CITY CHARTER REVISIONS ON NOVEMBER 2016 ELECTION BALLOT 15. APPROVE/DENY SETTING COUNCIL BUDGET WORKSHOP FOR AUGUST 23, 2016, AT 4:00 P.M. 16. APPROVE/DENY SETTING AUGUST 12, 2016, TO CANVASS PRIMARY ELECTION 2 CITY COUNCIL AGENDA JULY 26, 2016 RESULTS GOVERNANCE (T e 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.) 17. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Housing and Redevelopment Authority Board Minutes from June 21, 2016 (b) City of Hutchinson Financial and Investment Reports for June 2016 c Planning, Zoning, Building Department Second Quarter Report (d) Planning Commission Minutes from June 21, 2016 (e) Library Board Minutes from June 27, 2016 MISCELLANEOUS 18. STAFF UPDATES 19. COUNCIL/MAYOR UPDATE ADJOURNMENT HUTCHINSON CITY COUNCIL c'=y-fAa� Request for Board Action 7AL =-ft Agenda Item: Resolution 14588 Accepting Donation Department: Finance LICENSE SECTION Meeting Date: 7/26/2016 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ Recognition of Gifts/Donations Time Requested (Minutes): 1 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: Dolores Brunner has donated $50 to the Hutchinson Police Department. BOARD ACTION REQUESTED: Approve resolution #14588 accepting the donation from Dolores Brunner. 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: CITY OF HUTCHINSON RESOLUTION NO. 14588 RESOLUTION ACCEPTING DONATIONS WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17; and WHEREAS, the following person has offered to contribute the cash amount set forth below to the city: Name of Donor Amount Donation Date Dolores Brunner $50.00 7/9/2016 WHEREAS, such donation has been contributed to the Hutchinson Police department as a general donation. WHEREAS, the City Council finds that it is appropriate to accept the donation offered. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: THAT, the donation described above is hereby accepted by the City of Hutchinson. Adopted by the City Council this 26th day of July 2016. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, JULY 12, 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, input from constituents, and other questions or information that has notyet 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, and Mary Christensen. Member absent was John Lofdahl. Others present were Matt Jaunich, City Administrator, Marc Sebora, City Attorney and Kent Exner, City Engineer. (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Czmowski, second by Christensen, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — Crosspoint Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY PUBLIC COMMENTS (This 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 speak for 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 Deane Dietel, Arch Street, presented before the Council. Mr. Dietel noted that he has a friend that lives in Miller townhomes on School Road and he is appalled with the area after a large rainfall and the amount of debris that is left behind. Lots of debris comes on the street after a large rainfall because of inadequate drainage and pollution going down the storm drains. Stoney Point Bay is very low. He asked the City to take this concern seriously. Kent Exner, City Engineer, noted that the City is taking measures to improve incidents with its street sweeping program and other MS4 requirements. A river/lakes basin improvement study was approved at the Resource Allocation Committee meeting last week. A consultant will review the functionality of the spillway structure, upstream vegetation, and sediment/contamination. Sediment accumulation coming upstream from the river is a concern for everyone. Mr. Dietel also requested that everyone that mows grass, including city workers, not blow the grass into the street. 6. APPROVAL OF MINUTES (a) Regular Meeting of June 28, 2016 Motion by Christensen, second by Arndt, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items listedfor coni eration will be enacted by one motion unless the Mayor, a member of the City Council or CITY COUNCIL MINUTES JULY 12, 2016 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 Issuing Temporary Liquor License to St. Anastasia Catholic Church on September 10 & 11, 2016 (b) Consideration for Approval of Resolution No. 14583 - Resolution Revising and Adopting Assessments for 2016 Pavement Management Program Project (Letting No. 1, Project No. 16-01) (c) Consideration for Approval of Resolution No. 14586 - Resolution Appointing Election Judges for Primary and General Elections (d) Consideration for Approval of Issuing McLeod County Agriculture Association a Short - Term 3.2 Malt Liquor License on Augustl7, 2016, and a Temporary Liquor License From August 18-21, 2016, for the McLeod County Fair (e) Consideration for Approval of Improvement Project Change Orders i. Change Order No. 4 — Letting No. 1, Project No. 16-01 (2016 Pavement Management Program) ii. Change Order No. 1 —Letting No. 8, Project No. 16-08 (2016 Hutchinson Downtown Signage) (f) Consideration for Approval of Items for Denver Avenue SE Project — Letting No. 1, Project No. 17-01 i. Resolution No. 14584 - Resolution Ordering Preparation of Report on Improvement ii. Resolution No. 14585 - Resolution Receiving Report and Calling Hearing on Improvement (g) Claims, Appropriations and Contract Payments — Check Register A Motion by Arndt, second by Christensen, to approve Consent Agenda I. Motion carried unanimously. 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Check Register B Motion by Christensen, second by Arndt, with Czmowski abstaining, to approve Consent Agenda II. Motion carried unanimously. PUBLIC HEARINGS (6:00 P.M.) 9. APPROVE/DENY ORDINANCE NO. 16-761 AN ORDINANCE ISSUING FRANCHISE TO DAME'S DIGS, LLC (WAIVE FIRST READING, SET SECOND READING AND ADOPTION FOR JULY 26, 2016) Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that Dame's Digs LLC owns the Hometown Realty building located on Washington Avenue. Mr. Sebora noted that back in the 1990s when the building was constructed it was discovered that the building encroached approximately 1.5 feet into the right-of-way on Jefferson Street. Because of this, the Council granted a 20 -year franchise to the owners to occupy the right-of-way due to 2 CITY COUNCIL MINUTES JULY 12, 2016 the construction error. Mr. Sebora explained that while he was speaking with the property owner, Cheryl Dooley, a discussion was held with regard to the possibility of the City selling this portion of right-of-way to the property owner so that a franchise would no longer be necessary. Further discussion will need to be held, however Mr. Sebora asked that the public hearing be held tonight and the item tabled indefinitely to allow time for this to be discussed. Motion by Arndt, second by Christensen, to close the public hearing. Motion by Czmowski, second by Christensen, to table this item indefinitely. Motion carried unanimously. purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. Wes items like monthly or annual reports and communications from other entities.) 10. UPDATE ON ARTPLACE GRANT— STEVE COOK Steve Cook, 728 Juul Road SW, presented before the Council. Mr. Cook provided the Council an update on the application that was submitted for the ArtPlace grant. Regrettably, Hutchinson was not successful in achieving the grant mainly due to a health component that was a requirement of the grant application that the City could not fulfill. Mr. Cook along with other organizations will continue to pursue other grant opportunities. UNFINISHED BUSINESS 11. APPROVE/DENY ORDINANCE NO. 16-759 — AN ORDINANCE ADOPTING CITY OF HUTCHINSON TELECOMMUNICATIONS ORDINANCE — CHAPTER 154.119 (SUOND READING AND ADOPTION) John Paulson, Environmental Specialist, presented before the Council. Mr. Paulson reminded the Council that a public hearing and first reading of the ordinance was held at the last Council meeting. Mr. Paulson noted that no changes have been made to the ordinance since the last meeting. Mr. Paulson also provided a summary ordinance for the Council to consider for publication. Motion by Christensen, second by Czmowski, to approve Ordinance No. 16-759 along with the summary ordinance for publication. Motion carried unanimously. NEW BUSINESS 12. APPROVE/DENY THE 2015 AUDITED FINANCIAL REPORT Andy Reid, Finance Director, introduced Kyle Meyers, Abdo, Eick, & Myers, the City's financial auditor. Mr. Reid noted that the financial report is on the City's web site and is also available in hard copy at the city center and at the public library. Mr. Meyers presented before the Council. Meyers noted that the audit is clean and there are no findings. Mr. Meyers also noted a new standard that was implemented and spoke about the report being submitted to the GFOA. Mr. Meyers stated that City has received a certificate of financial excellence for the 19th year in a row. Mr. Meyers reviewed the 2015 financial results. The City's total net position increased by $7,308,000 which is an increase from last year. Over $4.3 million in capital grants and contributions in 2015 were included along with the City's enterprise funds contributing over $4.8 million. The City's general fund year-end fund balance held at 59.8% of the 2016 expenditure budget. Most all City funds have positive CITY COUNCIL MINUTES JULY 12, 2016 fund balances. Debt service requirements steadily decrease over the next 10 years. Capital projects funds have built up healthy reserves in the capital improvement projects and community improvement funds. All enterprise funds currently have sufficient cash flows to fund operating costs and debt service payments and healthy cash reserves to pay three months of operating costs and one year of debt service payments. Motion by Czmowski, second by Christensen, to approve 2015 audited financial report. Motion carried unanimously. 13. APPROVE/DENY SUBDIVISION AGREEMENT FOR HIGHFIELD ADDITION PLAT Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that the Highfield Addition Plat was recently approved by the Council for the apartment complex development on Hwy 15 South. The subdivision agreement sets out criteria for the development with the developer. The agreement clarifies site improvements and utility installations, funding and dedications, other fees, charges and expenditures and other general conditions. The developer is in agreement with the terms spelled out in the agreement. Motion by Arndt, second by Czmowski, to approve subdivision agreement for Highfield Addition Plat. Motion carried unanimously. 14. APPROVE/DENY RE -SETTING AUGUST 9, 2016, CITY COUNCIL MEETING Matt Jaunich, City Administrator, explained that the primary election is being held on August 9, 2016, and no public meetings may be held between 6:00-8:00 p.m. on that date. Mr. Jaunich offered some suggestions to re -set the meeting. Motion by Arndt, second by Christensen, to re -set August 9, 2016, City Council meeting to begin at 4:00 p.m. Motion carried unanimously. Mr. Jaunich noted that earlier in the agenda the Council approved Resolution No. 14585 which set a public hearing time for 6:00 p.m. Mr. Jaunich recommended amending the Resolution for the public hearing to be held at 4:30 p.m. Motion by Czmowski, second by Forcier, to amend Resolution No. 14585 for public hearing to be held at 4:30 p.m. Motion carried unanimously. GOVERNANCE (T e 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 Housing & Redevelopment Authority Board Minutes from May 17, 2016 �b) PRCE Board Minutes from June 7, 2016 c) Liquor Hutch Quarterly Report for January — June 2016 MISCELLANEOUS .19 CITY COUNCIL MINUTES JULY 12, 2016 16. STAFF UPDATES Kent Exner — Mr. Exner provided an update on the improvement projects which are moving along as scheduled. Sealcoating is almost complete with some striping yet to be completed. Golf Course Road water tower reconstruction will begin August 1. Mr. Exner addressed Mr. Dietel's concerns raised earlier in the meeting and acknowledged the Hutchinson Waters group that is working diligently on protecting the City's water streams. Mott Jaunich — Mr. Jaunich reminded the Council of the joint meeting with the EDA on July 19 at 12noon and the joint meeting with the County Board on July 21 t at 12noon at the Solid Waste Facility. Mr. Jaunich also noted that Senator Franken plans on visiting Hutchinson this Saturday to discuss infrastructure from highways to trails to energy. 17. COUNCIL/MAYOR UPDATE Mary Christensen — Council Member Christensen noted that she has received several complaints on the parking lot condition behind the mall and Cash Wise. Mr. Jaunich noted that he has received complaints as well over the last six months, however the property is privately - owned. Unless the City wants to put in place an ordinance regulating private parking lots, the City really has no authority to regulate them. Bill Arndt — Council Member Arndt commented on the mosquito spraying quality and to confirm that the City is receiving the same service as it has in the past. Council Member Arndt also spoke about funding for projects along the Crow River. ADJOURNMENT Motion by Arndt, second by Christensen, to adjourn at 6:40 p.m. Motion carried unanimously. HUTCHINSON CITY COUNCIL REVIEW OF 2015 FINANCIAL REPORT WORKSHOP MINUTES TUESDAY, JULY 12, 2016 AT 4:15 PM CITY CENTER — COUNCIL CHAMBERS 1. Call to Order Mayor Forcier called the workshop to order at 4:15 p.m. Members present included Mary Christensen, Bill Arndt and Chad Czmowski. Member absent was John Lofdahl. Others present were Matt Jaunich, City Administrator, and Andy Reid, Finance Director. REVIEW OF 2015 FINANCIAL REPORT 2. 2015 Financial Report Andy Reid, Finance Director, introduced Kyle Meyers of Abdo, Eick & Meyers who presented the City's 2015 audited financial report. Kyle Meyers presented before the Council. Mr. Meyers explained that the auditing firm completes an audit opinion which includes a testing of Minnesota legal compliance, internal controls over financial reporting and other law provisions, regulations, contracts and grant agreements. The audit opinion is clean and there were no findings. The City has received the GFOA certificate of achievement award for the 19th year in a row. Mr. Meyers reviewed specific financial results from the completed audit. Standard & Poor's bond rating of the City is "AA-". The City has retained a general fund balance between 55-60% for the last several years. The City's policy is 40%. The State Auditor and League of Minnesota Cities recommend that an unrestricted fund balance reserve be between 35-50% for cash flow purposes. Mr. Meyers detailed general fund revenues by source and other facets of the general fund as well as the make up of the special revenue funds. Mr. Meyers reviewed the debt service requirements for the next 10 years as well as the capital projects funds. Mr. Meyers also reviewed cash balances/flows of all funds. Mr. Meyers went on to review the enterprise fund cash flows and rates as well as the internal service funds. Mr. Meyers also provided a peer group comparison with other third class cities. Lastly, Mr. Meyers spoke about future accounting standards. The City is very financially healthy. 3. Adjournment Motion by Czmowski, second by Arndt, to adjourn the workshop at 4:55 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Short-Term Gambling License - Fire Dept. Relief Association Department: Administration LICENSE SECTION Meeting Date: 7/26/2016 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 Hutchinson Fire Department Relief Association has submitted a short-term gambling license application into administration for review and processing. The application is for an event the organization is holding on September 9, 2016. The applicant has completed the appropriate application in full and all pertinent information has been received. BOARD ACTION REQUESTED: Approve issuing short-term gambling license to Hutchinson Fire Department Relief Association on September 9, 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: Citty of • I I 1 Hassan Street Sauthcasi l lutchmsm. MN 55350 [3 201 587-5151 ha: (320) 234-1240 City of Hutchinson APPLICATION FOR GAMBLING DEVICES LICENSE In provisions of the City of Hutchinson Ordinance No. 655 and Minnesota Statutes Chapter 349 All applications must be received at least 30 days before event in order to be considered pplication Type _- Ad Short -berm Date(s) Fee: $30.00 ont _ ay-IYear - M nth1Dgy1Year r anix , on Information }}G1�G� rilSo� 'Name Phone Number . p5-- - } j _ _•�_ Address where regular nreeling are held City State Zip Federal or State IIJ; L//_-- Uay and time of mectings?�� — R Is this organization organized under the laws of the State of Minnesota? hal yes ❑ no How long has xhe organisation been in existence?.� How may members in the organization? j�— What is the purpose of the organization? f,,p,,_%�- -,,1-e_ C;A.L r ��..�r+.rl+-� w+ -{h fa..•nI}+cnf� flst In whose custody will organization records 66 kept? Address Name Phone Number city state zip Duly Authorized Officer of the Organization Information True Name Phone Number l2eTclenc•e A tNo-ess City Stare Zip Date of Birth: / - 1- �� 1 --- Place of Birth: NAVA,, w so c\ �m Month/dgwYear City Slate I lave you ever been convicted of any crime other than a traffic I offense? ❑ yes no byes, explain: � 7 . C'ilr of HVIChonsola 'ipplicavron forC ambling Uerices license Page 2 of 3 Desi Hated Gambling Mana er { uali eed under Minnesota Statute §329) -,W 77 True Name Phone Number Residence Address City ,state Zip Date of Binh: - - -1� 1 y Place of Birth: AlonIhldaylyear City State Have you ever been convicted of any crime other than a traffic offense? ❑ yes -19 no li'yes, explain: ]tow ]on- have you been a rne3nber of the organization? Game ]nf'onnation- — -�- -_ Name q/ location w ere game will be played Phone Number 74u� f Address u/ ioctuion where game will he played city State � Zip Date(s) and/or day(s) gambling devices will be used: ,e �� _ through �p AM I lours oFthe day gambling devices will be used: From - f�'Or� ��� To 67152 Maximum number of player: Q Will prises be paid in money or merchandise? Z money ® merchandise Will refreshments be served during the time the gambling devices will be used? 14 yes ❑ no —_ 1Fyes, will a charge be made for such refreshments? ❑ yes -lam no _ Game lnformation Location 42 - Name o location where game will be played Address q/ loceilion where game will he played Phone Number City State Zip Date(s) and/or day(s) gambling devices will be used: through AM 1 lours of the day gambling devices will be used: From pM To Maximum number of player: Will prizes be paid in money or merchandise? ❑ money ❑ merchandise Will refreshments be served during the time the gambling devices evilI be used? _ ]Fyes, w.iII a charge be made for such refreshments? ❑ yes. ❑ no ❑ yes ❑ no AM ('rnv of111achrnson ipplicationfar Gumhlil�g Ouvic'es License Puke 3 of 3 Officers of the Organization tifnecess Name list additional names on Residence A ddres.s Title City State Lip Name Title Residence Address City Slate Zip Name Title Residence Address City State Zi Officers or other Persons Paid for Services Information (if necessary, fist additional names on separate sheet) Name Residence Address Name Residence Address Title City State Zip Title City State Zip Name Title -- Residence Address OLY State Zi I -lave you (Gambling Manager and Authorized Officer) read, and do you thoroughly understand the provisions of all laws, ordinances, and regulations governing the operation and use of gambling devices (as outlined in City of Hutchinson Ordinance 114.20 and Minnesota Statutes Chapter 349)? Gambling Manager -Byes G n� Authorized Officer kes ❑ no Initial Initial 1 declare that the information 1 have provided on this application is truthful, and 1 authorize the City of Hutchinson to investigate the information submitted. Also, 1 have received from the City of Hutchinson a copy of the City Ordinance No, 114.20 relating to gambling and 1 will familiarize myself with the contents thereof. Signature of atrthorived officer o (7r antes IOn Date Srnutai r�Ji`�crnahling manager or organization Date Internal Use Onl City Council J approved J denied Notes: HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Consideration for Approval of Purchase of Annual Bag Film Order for CreekSide Department: Compost LICENSE SECTION Meeting Date: 7/26/2016 Application Complete N/A Contact: Andy Kosek Agenda Item Type: Presenter: Andy Kosek Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Poly bag film for the Premier Tech automated bagging line that Creekside employs is ordered on an annual basis. In order to receive favorable pricing based on volume, a two year supply (based on historical sales) is ordered each year. A total of four quotes were received. The lowest priced quote was received from Direct Plastics at $65,095.00, while the second lowest priced quote was received from Niaflex at $69,333.50. Staff is confident in the quality of Direct Plastics' products as we have utilized them numerous times over recent years. Staff recommends the approval to purchase the bag film order from Direct Plastics. BOARD ACTION REQUESTED: Approve the purchase of the bag film quote received from Direct Plastics, as recommended by CreekSide staff. Fiscal Impact: $ 65,095.00 Funding Source: Compost Fund FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 65,095.00 Total City Cost: $ 65,095.00 Funding Source: Compost Fund Remaining Cost: $ 0.00 Funding Source: Creekside & WonderBlend Products Received Quotes Summary 7115/2016 Direct Plastics NiaFlex Cs QTY Unit $ per M Ext Cost CS QTY Unit $ Ext Cost Compost 25 244.80 $ 6,120.00 Compost 25 214,40 $ 5,360.00 10 Potting 15 239.90 $ 3,598.50 10 Potting 15 317.10 S 4,756.50 Brawn 85 255.90 $ 16,633.50 Brown 65 26$,76 $ 17,339.40 Red 85 252.40 $ 21,454.00 Red 85 266.76 $ 22,674.60 Gold 30 273.20 $ 81196-00 Gold 30 266,76 $ 8,002.80 220 $ 56,002.00 $ 254.55 220 $ 58,133.30 $ 264.24 Plate charges Plate charges $0 0 $ - $0 0 $ - Creekside Total $ 56,002.00 $ 254.55 Peekside Total $ 58,133.30 $ 264.24 We We Gardeners Soil 35 259.8 $ 9,093.90 Gardeners Soil 35 205.72 $ 7,209.20 35 $ 9,093.00 35 $ 7,200.20 Plate charges Plate charges $0.00 0 $ - $4,000 1 $ 4,000.00 $ 9.093.00 $ 259.80 $ 11,200.20 $ 329.01 RFQ Total wlplats charges $ 65,095.00 pT Trinity Packaging Golden Eagle Extrusions CS QTY Unit $ Ext Cost Cs QTY Unit $ Ext Cost Compost 25 269.00 $ 6,725.00 Compost 25 319.80 $ 7,995.00 10 Potting 15 168.00 $ 2,520.90 10 Potting 15 318.19 $ 4,771.50 Brown 65 350.00 $ 22,750.00 Brown 65 267.50 $ 17,387.50 Red 85 343.00 $ 29,155.00 Red 85 267.50 $ 22,737.59 Gold 30 370.00 $ 11,100.00 Gold 30 267.50 $ 8,025.00 220 $ 72,250.00 $ 328.41 220 $ 60,916.50 $ 276.89 Plate charges Plate charges $5,590 1 $ 5,590.00 $7,800 1 $ 7,800.00 Creekside Total $ 77,849.00 $ 353.82 Creekside Total $ 68,716.50 $ 312.35 Wa WS Gardeners Soil 35 283.00 $ 9,905.00 Gardeners Soil 35 317.50 $ 11,112.50 35 $ 9,905.00 35 $ 11,112.50 Plate charges Plate charges $1,275 1 $ 1,275.00 $4,800 1 $ 4,800.90 $ 11,189.00 $ 319.43 $ 15,912.50 $ 454.64 RFQ Total w IatB cha $ 89,020.66 RFQ Total wlplate charges $ 84,629.00 Direct Plastics QUOTE FORM Description of Soil Packaging Product (size, thickness, color process, operationals attributes): Product Type Quantity 2017 Season Quote 2.75 mil CreekSide 1 cu.ft Brown Mulch 65,000 imps $ 255.901M 1 cu.ft Red Mulch 85,000 imps $ 252.40/M 1 cu.ft Gold Mulch 30,000 imps $ 273 20/M 40# CreekSide Compost 25,000 imps $ 9d4 Anu 10# CreekSide Potting Soil 15,000 imps $ 239 90/m WonderBlend 1 cu.ft Gardener's Soil 35,000 imps $ 259.801M The above pricing is based on repeat graphics of previous runs. New graphic charges will be confirmed upon receipt of graphics. Product Graphics Development (set-up, film & plate) included Yes StorageMlarehousing Costs, if any: $ No If no, $ 16 mths $ Number of days for delivery, after business is awarded: General Warranty: Yes No Vendor's Name and Address: CreekSide Compost Facilities is a tax-exempt entity Duration 112 mths Notes: ■ If there are price break points on the film, please include them on the quote form. ■ If your company's quotation form covers the information above, this form doesn't need to be completed. Please submit your company's form. ■ If you have additional information that is not requested above, and feel that it would be beneficial, please include. Sales Quote Niafiex Corporation CORPORATION 7549 Brokerage Drive Orlando, FL 32809 PH: (407) 851-6624 FX: (407) 855-3910 Customer: City of Hutchinson 111 Hassan St Se Hutchinson, NIN 55350 Phone Fax: Ouote Descrintion: Ship To: Quote Number Quote Date: Expires On: FOB: Page: Creekside Soil 1500 Adams St SE Hutchineson MN 55350 Phone: Far 18328 7!5115 815116 Destination I of 2 Sales Ren: Rouse CQ§R! Snow Minimum Quantity Item Number -Description Unit Unit Price 180 33.6" (00275) Clear Centerfold sheeting, No Slip, Linear Low, UVI, Printed 4 Colors, 22" Repeat, Creekside Brown Mulch, Red Mulch, Gold Mulch M Imp $2fi8.78 25 28.6" (00275) White Opaque Centerfold Sheeting, No Slip, Linear Low, UVI, Printed SColors, 18.25" Repeat, Cres ksida Compost wlManure 40LB M Imp $214.40 15 20" (00276) White Opaque Centerfold Sheeting, No Slip, Linear Low, UVI, Printed 8 Colors, 13.5" Repeat, Creekside Potting Soil 10LS M Imp $317.10 Customer will incur additional surcharges for an order cancelled after prod uctlon has begun. Customer is responsible for any and all inventory produced and will be invoiced if product is not shipped within 60 days. Cust. will be responsible for and costs incurred for art work, art plates, or other materials related to order already made prior to cancellation. Minimum Total Order Quantity: Notes. Estimated Lead Time: 4-5 Weeks Terms: Net 30 We gladly accept credit cards as a form of payment Please be advised that credit card fees will be added to your invoice if this is the form of payment I Sales Quote N108f Niaflex Corporation CDRPORATf01V 7549 Brokerage Drive Orlando, FL 32809 PH: (407) 851-6624 FX: (407) 855-3910 Customer: Gertens 5500 Blaine Avenue Inver Grove Heights MN 55076 Phone: Fax. red590 x.180 ni.aol.conz Ouote Descrintionc LEE 0 Quote Number Quote Date: Expires On: FOB: Page: Hutchineson MN 55350 18292 6129116 7129/16 Destination 1 of 2 Sales Rep: House CSR: Snow Minimum Quantity Ito in Humber -Description knit Unit Price 35 29.5" (j0275j White Opaquo Centerfold Sheeting, No Slip, Linear Low, t1Vi, Printed 7Colors, 18.5" Repeat, Wonder6lend Gardener Mix 1CF M Imp $205.72 Plus Artwork and Plates t Customer will incur additional surcharges for an order cancelled after production has begun. Customer Is responsible for any and all inventory produced and will be invoiced if product Is not shipped within 60 days. Cust, will be responsible for and costs incurred fpr art work, art plates, or other materials related to order already made prior to cancellation. lvllniFrium t, Otai urger vuanti Notes: Estimated Lead Time: 4-5 Weeks"(Subject to Final Artwork Approval)` Terms: Net 30 We gladly accept credit cards as a form of payment Please be advised that credit card fees will be added to your invoice if this is the form of payment Disclaimer: This quote is subject to the Terms and Conditions listed on the follow in page. Trinity Packaging Inc Creekside Products 1. 2 cu.ft CreekSide Brown Mulch —roll -stock, printing one side: 33.5" WEB X 22.00" RPT X 2.75 MIL/ U Film/4 color process plus OL / B-3 unwind / core diameter 3" minimum / roll diameter 24" maximum / Clear film/UVI low slip/full gauage/anti static. Quantity: 65,000 impressions $350.00/M Art & Plate: $ 1,200.00 2. 2 c u A CreekSide Red Mulch —roll -stock, printing one side: 33.5" WEB X 22.00" RPT X 2.75 MIL/ U Film/4 color process plus OL / B-3 unwind / core diameter 3" minimum / roll diameter 24" maximum / Clear film/UVI low slip/full gauage/anti static. Quantity: 85,000 impressions $343.00/M Art & Plate: $ 1,200.00 12 cu.ft CreekSide Gold Mulch —roll -stock, printing one side: 33.5" WEB X 22.00" RPT X 2.75 MIL/ U Film/4 color process plus OL / B-3 unwind / core diameter 3" minimum / roll diameter 24" maximum / Clear film/UVI low slip/full gauage/anti static. Quantity: 30,000 impressions $370.00/M Art & Plate: $ 1,200.00 4.40# CreekSide Premium Compost —roll -stack, printing one side: 28.5" WEB X 18.25" RPT X 2.75 MIL/ U Film/6 color process plus OL / B-3 unwind / core diameter 3" minimum / roll diameter 24" maximum / white opaque film / UVI low slip/full gauage/anti static. Quantity: 25,000 impressions $269.00/M Art & Plate: $ 1,190.00 S. 10# CreekSide Potting Soil —roil -stock, printing one side: 20" WEB X 13.5" RPT X 2.75 MIL/ U Film/6 color process plus OL / B-3 unwind / core diameter 3" minimum / roll diameter 24" maximum / white opaque film / UVI low slip/full gauage/anti static. Quantity : 15,000 impressions $168.00/M Art & Plate: $ 800.00 WonderBlend Products 1. 1 cu.ft Won derBIend Gardener's Mix- roll -stock, printing two sides : 29.5" WEB X 18.5" RPT X 2.75 MIL/ U Film/ 7 color process plus OL/ B-3 unwind/ core diameter 3" minimum / roll diameter 24" maximum / white opaque film / UVI low slip/full gauage/anti static. Quantity: 35,000 impressions $283.00/M Art & Plate: $ 1,275.00 QUOTEFORM Description of Soil Packaging Product (size, thickness, color process, operationals attributes): Product Tyne Quanuty 2017 Season Quote 2,75 rail CreekSide 1 cu.ft Brown Mulch 65,000 imps 1 cu.ft Red Mulch 85,000 imps 1 cu.ft Gold Mulch 30,O0O imps 40# CreekSide Compost 25,000 imps 109 CreekSide Potting Soil 15,000 imps $ :s $ $ 2!� nn " 3ict-`in 1?5C $ 1_; - . c 13c Wonq2fflleag 1 cu.ft Gardener's Soil 35,000 imps $ 5 �-, 3 k 7 , ;5G ;e,�, - )6G , cC Product Graphics Development (set-up, film & plate) Included Yes No If no, $ 3 oo )4 r StorageANarehousing Costs, if any: $T�16 mths $ 112 mths Number of days for delivery, after business is awarded: General Warranty: Yes No Duration l VAndnr's NaMA and Addrams- CreekSide Compost Facilities is a tax-exempt entity Notes: If there are price break points on the film, please include them on the quote form. • If your company's quotation form covers the information above, this form doesn't need to be completed. Please submit your company's form. • If you have additional information that is not requested above, and feel that it would be beneficial, please include. It is required of the successful bidder to provide Creekside Soils working files of the bag images when complete. Files and information to be included are: 111ustrator files with placed images, artwork on dieline for proper positioning and color breakdown of all bags being produced ExanWle artwork file farmats would be .ai or .cps HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: C.U.P. FOR POLE STORAGE BUILDING - 805 HWY 7 W PARCEL B Department: Planning LICENSE SECTION Meeting Date: 7/26/2016 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: This request is very straightforward. All uses in the I/C Zoning District require a Conditional Use Permit. In addition, all pole framed buildings need a CUP. The lot is a vacant, landlocked lot with easement access. Because it is landlocked it is not visible from HWY 7 or any other public street. The applicant is proposing a 40'x 80' pole structure with steel siding and roof. Nobody from the public spoke regarding this request. The applicant, Harley Albers was present to answer questions. The Planning Commission unanimously approved the request. BOARD ACTION REQUESTED: Approval of CUP. 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: CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA RESOLUTION NO. 14592 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF CONDITIONAL USE PERMIT TO ALLOW CONSTRUCTION FOR A POLE BUILDING FOR STORAGE AT 805 HWY 7 W PARCEL B IN AN I -C ZONING DISTRICT, HARLEY ALBERS, APPLICANT. FACTS 1. Harley Albers is the applicant and owner of a parcel of land located at 805 HWY 7 W Parcel B, Hutchinson Minnesota; and, 2. The subject property is legally described as: THAT PART OF THE NE'/4 OF SE 1/4 , SECTION 36, TOWNSHIP 117, RANGE 30, COMMENCING AT THE SOUTHWEST CORNER OF SAID NE'/4 OF SE 1/4 ; THENCE NORTHERLY ALONG THE WEST LINE OF SAID NE'/4 OF SE 1/4 264 FEET TO THE POINT OF BEGINNING; THENCE CONTINUE NORTHERLY ALONG SAID WEST LINE 109.86 FEET TO THE INTERSECTION WITH A LINE DRAWN WESTERLY, PARALLEL WITH THE SOUTH LINE OF SAID NE'/4 OF SE 1/4 , FROM THE NORTHWEST CORNER OF THAT PARCEL DESCRIBED IN BOOK 134 OF DEEDS, AT PAGE 155; THENCE EASTERLY, ALONG SAID PARALLEL LINE, 165 FEET; THENCE SOUTHERLY PARALLEL WITH SAID WEST LINE 109.86 FEET TO A POINT DISTANT 264.00 FEET NORTHERLY OF SAID SOUTH LINE; THENCE WESTERLY PARALLEL WITH THE SOUTH LINE 165 FEET TO THE POINT OF BEGINNING. Harley Albers, applicant and property owner, has applied to the City for a conditional use permit for a pole building for storage use at 805 HWY 7 W Parcel B in an PC zoning district. 4. The property is located in the PC Industrial/Commercial) Zoning District. 5. The request for a conditional use permit is required because of Section 154.066 and 154.123 of the Hutchinson Zoning Ordinance. 6. Following a public hearing on the application, the City of Hutchinson Planning Commission has recommended approval of the Conditional Use Permit on July 19, 2016 with the following findings and conditions: a. The standards for granting a conditional use permit would be met, subject to the conditions stated. b. The proposed building improvements shall comply with the standards of the FC district and the Zoning Ordinance. c. Drainage from this lot/project cannot negatively impact adjacent properties. d. The applicant must utilize the area outlined in the easement document for the driveway to access the property or obtain an easement in the location of the existing driveway. Findings of Fact — Resolution 14592 Conditional Use Permit 805 HWY 7 W PARCEL B 7/26/2016 Page 2 e. The applicant must plant evergreen trees at least 6 feet in height every 15 feet along the north side of proposed building within 6 months of obtaining certificate of occupancy for building. These trees are for screening purposes. f Two paved parking stalls are needed for the building and must be at least 8.5' x 20' in size in order to meet zoning ordinance requirements. g. At which time the uses changes to a more intense public storage facility or a different use from storage, the driveway from HWY 7 up to the proposed structure must be improved to a concrete or bituminous surface. h. The Applicant must obtain all necessary permits for any construction that would be needed. i. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another use requires approval of a new conditional use permit. 7. The City Council of the City of Hutchinson reviewed the requested conditional use permit at its meeting on July 26, 2016 and has considered the recommendation and findings of the Planning Commission and hereby does recommend approval of the conditional use permit, subject to the following findings and conditions: j. The standards for granting a conditional use permit would be met, subject to the conditions stated. k. The proposed building improvements shall comply with the standards of the VC district and the Zoning Ordinance. 1. Drainage from this lot/project cannot negatively impact adjacent properties. in. The applicant must utilize the area outlined in the easement document for the driveway to access the property or obtain an easement in the location of the existing driveway. n. The applicant must plant evergreen trees at least 6 feet in height every 15 feet along the north side of proposed building within 6 months of obtaining certificate of occupancy for building. These trees are for screening purposes. o. Two paved parking stalls are needed for the building and must be at least 8.5' x 20' in size in order to meet zoning ordinance requirements. p. At which time the uses changes to a more intense public storage facility or a different use from storage, the driveway from HWY 7 up to the proposed structure must be improved to a concrete or bituminous surface. q. The Applicant must obtain all necessary permits for any construction that would be needed. r. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another use requires approval of a new conditional use permit. APPLICABLE LAW 8. The conditional use permit request meets the following standards as required in Section 154.175 of the City of Hutchinson Municipal Code. (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; Findings of Fact — Resolution 14592 Conditional Use Permit 805 HWY 7 W PARCEL B 7/26/2016 Page 3 (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. CONCLUSIONS OF THE LAW 9. The requested conditional use permit is consistent with the comprehensive plan. 10. The proposed use will not have a substantial or undue adverse effect upon adjacent property, character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare. 11. The proposed use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the application to issue a conditional use permit to allow Harley Albers, applicant and property owner, to have a pole storage building in the UC zoning district at 805 HWY 7 W Parcel B is hereby approved. Adopted by the City Council this 26th day of July, 2016. ATTEST: Matt Jaunich City Administrator Gary T. Forcier Mayor �1141-�A. f. - DIRECTORS REPORT - PLANNING DEPARTMENT .. 3' .3' .3' .3' .i'.3' .3' .3' .i'.3' .3' .3' .3' .3' .3' .3' .3: a%'-;$";$•�;�"',$';�"',$"',$'�;�"',$"',�"',�"',$'�;�"',$"',�"',�"',$'�;$"',$"',$'�;�"',$"',�"',�"',$'�;�"',$"',�"',�"',$'�;$"',$"',$'�;�"',$';�"',$"',$'�; To: Hutchinson Planning Commission From: Dan Jochum, AICP and City of Hutchinson Planning Staff Date: July 14, 2016, for July 19, 2016, Planning Commission Meeting Application: CONSIDERATION OF A CONDITIONAL USE PERMIT FOR A POLE STORAGE BUILDING IN THE I/C INDUSTRIAL/COMMERICAL DISTRICT LOCATED AT 805 HWY 7W PARCEL B. Applicant: HARLEY ALBERS, APPLICANT AND PROPERTY OWNER CONDITIONAL USE PERMIT FOR A POLE STORAGE BUILDING IN THE I/C DISTRICT This request is very straightforward. All uses in the PC Zoning District require a Conditional Use Permit. In addition, all pole framed buildings need a CUP. The lot is a vacant, landlocked lot with easement access. Because it is landlocked it is not visible from HWY 7 or any other public street. The applicant is proposing a 40'x 80' pole structure with steel siding and roof. Conditional Use Permit 805 HWY 7 W Parcel B — Storage Planning Commission — 7-19-2016 Page 2 GENERAL INFORMATION Existing Zoning: UC (Industrial/Commercial District) Property Location: 805 HWY 7 W. Parcel B. Lot Size: .42 Acres Existing Land Use: Vacant Lot — Some outdoor storage. Adjacent Land Use And Zoning: R-3 to north. Everything else is UC. Comprehensive Land Use Plan: Commercial Applicable Regulations: Sections 154.066 and 154.123 Conditional Use Permit: The Conditional Use Permit (CUP) is required because all uses in the PC District require a CUP and all pole structures require a CUP. The applicant is proposing to build a 40' x 80' pole structure for personal storage. The lot is currently vacant of buildings but has most recently had old construction equipment parked on it. The lot is accessed through and easement with the owner of 845 HWY 7 West. There is a residential neighborhood and houses directly to the north of this property. There are currently trees in place but staff recommends 6 foot evergreen trees be planted every 15 feet to screen this use from the adjacent residential uses year -around. It should also be noted that drainage cannot impact adjacent property owners. The building will have to be set back 50 feet from the residential zoning boundary and 20 feet from interior lot lines. A concrete or bituminous apron will need to be constructed in the front of the building (west side) that can accommodate two parking stalls to meet zoning ordinance requirements for storage uses. These parking spaces must be at least 8.5' x 20' in size. As noted above, this is a very straightforward request and staff recommends approval. The following are standards for granting a conditional use permit: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. Conditional Use Permit 805 HWY 7 W Parcel B — Storage Planning Commission — 7-19-2016 Page 3 Recommendation: Staff recommends approval of the proposal with the following conditions. If the Planning Commission recommends approval of the applicant's request, staff suggests the following conditions be part of the approval: 1. The standards for granting a conditional use permit would be met, subject to the conditions stated. 2. The proposed building improvements shall comply with the standards of the UC district and the Zoning Ordinance. 3. Drainage from this lot/project cannot negatively impact adjacent properties. 4. The applicant must utilize the area outlined in the easement document for the driveway to access the property or obtain an easement in the location of the existing driveway. 5. The applicant must plant evergreen trees at least 6 feet in height every 15 feet along the north side of proposed building within 6 months of obtaining certificate of occupancy for building. These trees are for screening purposes. 6. Two paved parking stalls are needed for the building and must be at least 8.5' x 20' in size in order to meet zoning ordinance requirements. 7. At which time the uses changes to a more intense public storage facility or a different use from storage, the driveway from HWY 7 up to the proposed structure must be improved to a concrete or bituminous surface. 8. The Applicant must obtain all necessary permits for any construction that would be needed. 9. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another use requires approval of a new conditional use permit. ROLLING MEADOWS EAST CERTIFICATE of SURVEY FOR HARLEY ALBERS N88 'O5'E 165 --------L Pat wH .nh the s.slh Wo of the NE 1/4 ^' - - ��NW carne M SE IN of SK 36. T,w 01 N.. $00 W. pprHl """"aram—� W M y} In 9R 134 O.odi on Pop. 156 Tg 4+ - PROPOSED BUILDING - Li � � ---- sese3is•o5•w 165 ----• �� � AREA -0.42 Acres e o ra ao loo g 18126 SQ Ft (- Scale Ie feel E 81 } i All � � f + `.1 The orientation of the bearings Shown an this survey are based on the McLeod County Coordinate System NAD83, 1996 adjustment, u Www m ! 1 + DESCRIPTION PROVIDED +:' IM �� That part of the NE 1/4 of SE 1/4, Section 36, Township 117, Range 30, commencing at the Southwest corner of said NE 1/4 �r�- of SE 1�4: thence Northerly along the West line of said NE 1 4 _ r' of SE 1/4, 264 feet to the paint of beginning. thence continue Northerly along said west line 109,86 feet to the intersection a - with a line drown Westerly, parallel with the South line of said NE 1i4 SE 1/4, from S _r- --� n3'41 of the Northwest corner of that parcel described In Book 134 1 ' end of Deeds, at page 155: thence easter) along said parallel line. 165 feet-, thence Southerly parallel with + A sold West line 109.86 feet to a point distcnt 264,00 feet ¢ Northerly of sold South line; l Na, thence westerly parallel with the PLA South line 165 feet f H1 ��GH7 F 4,,4r 10 the point of beginning. ❑ ` �RUtdK QRTAI')ON �F 7RAN5P H17�96 "WWI iM SE�l 4 of Secrwon 36 OEPA814EN � cemun� ' '� oho b 0'n' -r MINNESOTA � I hereby cerilTy +hof ihwc Survey, plan or Report was prepared by me or under my d lr ee t SE;orner Tf South 11" of ME NE 1/4 W tin ! Land supervision and that I pm p duly licensed PK111NEN �A SURVEYING INC Land Surveyor under th■ laths of 1h■ $late 6f the Net 1M of the SiE SiE " of SE 1i4 of Sec 56. T.I i7 N., k3a W. AAlnnesata. P ❑ Box 35 Datrotea iron monument found Hutchinson, Minnesota 55350 O Denatea Iran monument Ser J@46R R uech Phone (320) 587-4789 Dots: llc. rfo. ��� Fax 1320) 587-3752 JOB NO 16058 SK P-350 Pg 63 65'to lot line r= V_ 7- 0 0 `- W CK 0 165'-0" BO' BUILM W it z J F O O F 0 N N SFSE GIhN 4 tl HAPIEY A6$ERS -E 1 � - HUrCHINSM MN,_,__ _ 90'x&1'h 14LLH 5 9z as z� Lu cc! N 0 w M — — — — — — — — — — — — — .- — — — — — — — — — — — — — — — — — — — — — — — — — — — j e> 1 I i 24'-6" I I � I I nI N 'o 10'x 12'H r r I F tr 1 I OVERHEAD DOOR I p io 1 W I M N I Ir 0o I I U1° I� I 2z o I N a I� Xo o — — — —1 L — CONTINUOUS PRQFII EVENT— — — — — — — — — — — — — — — — — �z = �� IL 0 1 I q N I IW I 1 1 o I I N I I N I 16'-0" wall to window 1 16'-O'Ibetween windows I — — — — — — — — 4030 wt Shutters — — — — — -- 44130-w/.9hutters— — — — 42"-IDEWALL - — — — — — — — — — — — I Bottom is 6'-0" above fin floor FLOOR PLAN Bottom is 6-0" above fin floor 36" WAINSCOT PERIMETER OVERHANGS N W E S O HARLEY ALDERS BUILDING DESCRIPTION: HUTCHINSON MN 40' x 80' x 14'H N W E S O 4 _ x ON" HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Approval of Contract between the City of Hutchinson and State of Minnesota for Department: Police LICENSE SECTION Meeting Date: Application Complete N/A Contact: Dan Hatten/Matt Jaunich Agenda Item Type: Presenter: Reviewed by Staff F1 Consent Agenda Time Requested (Minutes): 5 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: Staff believes this contract had been previously approved by Council, but we have been unable to verify that. Either which way, the contract is in need of being approved by the Council. As part of the signature process previously, the contract would have gone before the South Central Minnesota Regional Advisory Committee and then on to the Regional Radio Board for their signature. The board would then forward to the State for signature at the State Radio Board level. All copies of the contract were apparently lost somewhere between the RAC receiving the contracts and the State Radio Board receiving them. The State has requested the contracts to be re-circulated for signatures. These contracts are being presented to you for your review and approval of signatures. BOARD ACTION REQUESTED: Approve request for designated personnel to sign contract on behalf of the City of Hutchinson. 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: CONTRACT Between the CITY OF HUTCHINSON and the SOUTH CENTRAL MINNESOTA REGIONAL RADIO BOARD And the THE STATE OF MINNESOTA THROUGH ITS COMMISSIONER OF TRANSPORTATION for the DESIGN, PROCUREMENT, CONSTRUCTION AND OPERATION of an 800 MHz CITYIREGIONAL INTEGRATED PUBLIC SAFETY RADIO COMMUNICATION SUBSYSTEM City of Hutchinson Contract No. Minnesota Department of Transportation Contract No. _01836_ TABLE OF CONTENTS ARTICLE PAGE ARTICLE1. PURPOSE..................................................................................................................2 ARTICLE11. COOPERATION......................................................................................................2 ARTICLE III. DEFINITION OF TERMS.. .................. ................................................................2 ARTICLEIV. TERM.....................................................................................................................4 ARTICLEV. CANCELLATION...................................................................................................4 ARTICLE VI. CONFORMANCE TO SRB STANDARDS, PLANS, NETWORK INTERCONNECTION AND AUTHORIZATION FOR USE...........................................5 ARTICLE VII. USE OF BACKBONE SYSTEM RESOURCES.................................................5 ARTICLE VIII. THIS ARTICLE INTENTIONALLY LEFT BLANK.......................................6 ARTICLE 1X. OWNERSHIP OF FIXED ASSETS.......................................................................6 ARTICLE X. COLLOCATION ON CITY PROPERTIES, TOWERS & SHELTERS .. ...............6 ARTICLE XI. COLLOCATION ON Mn/DOT PROPERTIES, TOWERS & SHELTERS .........8 ARTICLE XII. ALLOCATIONS OF AR -MER BACKBONE OPERATING COSTS..... ............. 9 ARTICLE X111. ALLOCATIONS OF COMMUNCIATION SITE OPERATING COSTS .........9 ARTICLE XIV. PAYMENT AND TRANSFER OF FUNDS.....................................................10 ARTICLE XV. SUBSYSTEM DETAILED DESIGN APPROVAL...........................................10 ARTICLE XVI. CONSTRUCTION AND SYSTEM ACCEPTANCE.......................................10 ARTICLE XVII. FCC LICENSES...............................................................................................10 ARTICLE XVIII. NETWORK OPERATIONS, PRIORITIES AND PROTOCOLS .................1 1 ARTICLE XIX. SYSTEM MAINTENANCE AND UPGRADES...............................................I l ARTICLE XX. LIABILITY AND INSURANCE........................................................................12 TABLE OF CONTENTS City of Hutchinson, Mn/Dot Cooperative Agreement for ARMER Subsystem Continued ARTICLE PAGE ARTICLE XXI. CONFLICT RESOLUTION...............................................................................13 ARTICLE XXII. CONTRACT ADMINISTRATION.................................................................1.3 ARTICLEXXIII. NOTICE............................................................................................. ......14 ARTICLE XXIV. MERGER AND MODIFICATION................................................................14 ARTICLE XXV. AUDITS AND ACCESS TO RECORDS........................................................14 ARTICLEXXVI. DATA PRIVACY....................................................................................... 14 ARTICLE XXVII. INDEPENDENT CONTRACTOR...............................................................15 ARTICLE XXVIII. MINNESOTA LAWS GOVERN AND SEVERABILITY .........................15 ARTICLE XXIX. CONTRACTOR INSURANCE......................................................................16 ARTICLE XXX. APPLICABLE PROVISIONS OF LAW.........................................................17 City of Hutchinson, Mn/Dot Cooperative Agreement for ARMER Subsystem EXHIBITS EXHIBIT A. EQUIPMENT OWNERSIP DEPICTION FOR SHARED SUBSYSTEM EXHIBIT B. MN/DOT EQUIPMENT LOCATED ON CITY TOWERS & SHELTERS EXHIBIT C. CITY EQUIPMENT LOCATED ON MN/DOT TOWERS & SHELTERS City of Hutchinson, Mn/Dot Cooperative Agreement for ARMER Subsystem COOPERATIVE AGREEMENT FOR THE DESIGN, PROCUREMENT, CONSTRUCTION AND OPERATION OF AN 800 MHz COUNTY/REGIONAL INTEGRATED SUBSYSTEM THIS AGREEMENT, made and entered into by and between City of Hutchinson, a body politic and corporate, under the laws of the State of Minnesota, hereinafter referred to as the "CITY," City of Hutchinson, 111 Hassan St. SE„ Hutchinson, MN 55350, and the South Central Minnesota Regional Radio Board, a political subdivision pursuant to the provisions of Minn. Stat. §403.22, Subd. 1 ("REGIONAL RADIO BOARD") c/o Commissioner Kip Bruender, 401 Carver Road, Mankato, MN, 56002 and the STATE OF MINNESOTA through its Commissioner of Transportation, MS -100, Transportation Building, 395 John Ireland Boulevard, St. Paul, MN 55155, hereinafter referred to as "Mn/DDT." WITNESSETH: WHEREAS, a Statewide Public Safety Radio and Communication plan, hereinafter referred to as "the Plan" has been developed and adopted in accordance with Minnesota Statutes §403.35, Subdivision 2, and it provides for the construction, ownership and operation of a statewide public safety radio and communication system; and WHEREAS, Minnesota Statutes section 403.36 provides that the Statewide Radio Board, hereinafter referred to as "Board" has overall responsibility for the Plan, and for assuring that generally accepted project management techniques are utilized for each phase of the Plan implementation; and WHEREAS, Minnesota Statutes section 403.37 provides that the Board is responsible for oversight of Plan implementation, and for establishing and enforcing performance and operational standards for the statewide public safety radio and communication system; and WHEREAS, the Commissioner of Public Safety is directed by Minnesota Statutes Section 403.36 (Subdivision I e), to implement the Plan and to contract with the Commissioner of Transportation to construct, own, operate, maintain, and enhance the elements of the backbone defined in the Plan; and WHEREAS, the Commissioner of Transportation is directed by Minnesota Statute, Section 403.36 (subdivision le), to contract for, or procure by purchase or lease (including joint purchase and lease agreements), construction, installation of materials, supplies and equipment, and other services as may be needed to build, operate, and maintain the backbone of the statewide public safety radio and communication system; and Mn/DOT is authorized to enter into this Agreement by Minnesota Statutes § 174.02 and § 174.70. WHEREAS, Minnesota Statutes Chapter 403 authorizes City of Hutchinson and Mn/DOT to enter into this agreement; City of Hutchinson, Mn/Dot Cooperative Agreement for ARM ER Subsystem 4 WHEREAS, the Board has approved the City of Hutchinson Counties Local Pian for integration with the statewide public safety radio and communication system; and WHEREAS, the parties wish to enter into an agreement setting forth their respective roles and responsibilities regarding the operation of the City of Hutchinson enhancements to the backbone of the statewide public safety radio and communication system; NOW, THEREFORE, in consideration of the mutual undertaking and agreements hereinafter set forth, the City of Hutchinson, the REGIONAL RADIO BOARD and Mn/DOT agree as follows: ARTICLE I_ PURPOSE 1.01 The purpose of this Agreement is to define the rights and obligations of the CITY, REGIONAL RADIO BOARD and Mn/DOT with respect to the cooperative and coordinated design, procurement, construction, ownership, operation, communication facility sharing, funding and maintenance of a City/Regional Integrated Subsystem to be integrated with the ARMER public safety radio communications system. ARTICLE II. COOPERATION 2.Ot The CITY, REGIONAL RADIO BOARD and Mn/DOT will cooperate and use their best efforts to ensure that the various provisions of this Agreement are fulfilled. The parties agree in good faith to undertake resolutions of disputes, if any, in an equitable and timely manner in accordance with the provisions of this Agreement. ARTICLE III. DEFINITION OF TERMS 3.01 AUTHORIZED USERS. "Authorized Users" means those Eligible Users, as described in 3.06 below, who are authorized to operate upon the System. 3.02 BACKBONE. "System backbone" or "backbone" means a public safety radio communication system that consists of a shared, trunked, communication, and interoperability infrastructure network, including, but not limited to, radio towers and associated structures and equipment. 3.03 BACKBONE ANTENNA SITE. "Backbone Antenna Site" is comprised of the following: tower, shelter, LP tank, fence and radio equipment components. Land as defined in this agreement may or may not be included in the Backbone Antenna Site. City of Hutchinson, Mn/Dot Cooperative Agreement for ARMER Subsystem 3.04 BOARD. "Board" or "radio board" means the Statewide Radio Board. 3.05 SUBSYSTEM. "Subsystems" or "public safety radio subsystems" means systems identified in the plan or a plan developed under section 403.36 as subsystems interconnected by the system backbone and operated by a regional radio board or local government units for their own internal operations. 3.06 ELIGIBLE USERS. "Eligible Users" means those public and private entities and individuals eligible to hold FCC licenses in the Public Safety and Special Emergency Radio Services as defined by 47 C.F.R. Part 90, Subparts B and C, and those entities and individuals eligible to operate radios in the Public Safety and Special Emergency Radio services under the provisions of 47 C.F.R. §90.421. 3.07 ITINERANT USE. "Itinerant Use" means limited temporary use of elements of the System by an Authorized User that are not Subsystem Users. 3.08 LAND. "Land" for the purpose of this agreement refers to the parcel of land that the Backbone and Subsystem Antenna Site is located on. Ownership of the land will be defined in this Agreement as either City or Mn/DOT. 3.09 LOCAL PLAN. "Local Plan" means the plan for a Subsystem by the Political Subdivision which has been adopted by the Political Subdivision's governing body and approved by the Board and any amendments thereto. 3.10 MUTUAL AID USE. "Mutual Aid Use" means limited temporary use of the elements of the System by Authorized Users that are not Subsystem Users in response to a specific incident or call for assistance. 3.11 PLAN. "Plan" means the plan adopted by the Board for a statewide public safety communication system in accordance with Minnesota Statutes §403.36, Subdivision 2, including subsequent amendments to the Plan adopted by the Board. 3.12 PROJECT DIRECTOR. "Project Director" means the person(s) designated by each party to this Agreement to represent that party's interest on all technical and contractual matters. 3.13 REGIONAL RADIO BOARD. "Regional Radio Board" has the meaning provided for in Minnesota Statutes §403.21, subdivision 13. 3.14 SUBSYSTEM ANTENNA SITE. "Subsystem Antenna Site" can be comprised of the following: tower, shelter, LP tank, fence and radio equipment components, which are added to the Backbone configuration by the CITY as part of a Local Plan enhancing the Backbone coverage. Land as defined in this Agreement may or may not be part of the Subsystem Antenna Site. City of Hutchinson, MnYDot Cooperative Agreement for ARMER Subsystem 6 3.15 SUBSYSTEM USERS. "Subsystem Users" means Authorized Users who are associated with the Political Subdivision and authorized by the Political Subdivision as regular users of the Political Subdivision's Subsystem. 3.16 SYSTEM. "System" collectively means the Backbone and Subsystems maintained by a Political Subdivision. For purposes of this Agreement, reference to System refers to that portion of the backbone where elements of the Political Subdivision's Subsystem provide enhanced coverage or capacity to Authorized Users. ARTICLE IV. TERM 4.01 This Agreement shall take effect upon execution by all parties hereto and appropriate state officials and shall remain in effect until such time as either the ARMER backbone or the City/Regional Integrated Subsystem is either removed from service, or is substantially replaced, at the end of its useful life, or this Agreement is terminated or canceled pursuant to Article V of this Agreement, whichever occurs first. ARTICLE V. CANCELLATION 5.01 In the event the CITY does not award vendor purchase agreements for its City/Regional Integrated Subsystem pursuant to Article XV of this Agreement, this Agreement may be canceled by the CITY or Mn/DOT upon serving 30 (thirty) calendar day's written notice of intent to cancel to the other party or parties. 5.02 Any material violation of the terms and conditions of this Agreement shall constitute a default. In the event of a default, the non -defaulting party or parties shalt give the defaulting party or parties notice of said default. Upon notice, the defaulting party or parties shall have a period of 30 (thirty) calendar days to cure said default. If the default is not cured to the satisfaction of the non -defaulting party or parties, said party or parties may terminate this Agreement immediately. 5.03 All parties to this Agreement shall provide the remaining parties to this Agreement with written notice within five (5) working days of receipt or transmission of any notice of non-performance or default on the part of the defaulting party or company with which the defaulting party to this Agreement has entered into an agreement. City of Hutchinson, Mn/Dot Cooperative Agreement for ARMER Subsystem ARTICLE VI. CONFORMANCE TO SRS STANDARDS, PLANS, NETWORK INTERCONNECTION AND AUTHORIZATION FOR USE 6.01 The City/Regional Integrated Subsystem shall be constructed and operated in conformance with the CITY's Local Pian and technical design approved by the Regional Radio Board and the Statewide Radio Board. 6.42 The City/Regional Integrated Subsystem, including subscriber equipment operated on the City/Regional Integrated Subsystem, shall comply with operational, technical and performance standards established or adopted by the Regional Radio Board and the Statewide Radio Board. 6.03 The CITY and Mn/DOT agree to integrate the City/Regional Integrated Subsystem with the ARMER Backbone, utilizing compatible technology. 6.04 Any material changes and/or additions to the City/Regional Integrated Subsystem infrastructure shall be based on mutual written agreement between the CITY, and Mn/DOT. 6.05 Subject to the terms and conditions of this Cooperative Agreement, the CITY and Mn/DOT shall make the City/Regional Integrated Subsystem available for Itinerant Use by Authorized Users in conformance with the Statewide Radio Board's Plan or policies. 6.06 The CITY and Mn/DOT shall allow Authorized Users to have access to the City/Regional Integrated Subsystem. The CITY, consistent with its Local Plan, shall determine whether Local Authorized Users may have access to the City/Regional Integrated Subsystem for Day to Day Use and subject to the terms and conditions of this Cooperative Agreement. 6.07 Subject to the terms and conditions of this Cooperative Agreement, the CITY and Mn/DOT shall make the City/Regional Integrated Subsystem available for Day to Day use by those Authorized Users that the S.RB or an appropriate agency of the State of Minnesota has approved to use the City/Regional Integrated Subsystems for Day to Day Use. ARTICLE VII. USE OF BACKBONE SYSTEM RESOURCES 7.01 MnIDOT, consistent with the Statewide Radio Board Plan and standards, shall provide the CITY with use of the ARMER Backbone for Mutual Aid Use, itinerant Use, Day to Day Use for emergency medical services, Day to Day Use for wide area operational units routinely operating outside the CITY, network switching functions, microwave transport, City of Hutchinson, MnlDot Cooperative Agreement for ARMER Subsystem antenna site use, telephone interconnect use, and other services provided to Authorized Users. 7.62 Mn/DOT, consistent with the Statewide Radio Board Plan and standards, shall use its best efforts to provide the CITY with access to, and use of, adequate frequencies, talk groups, unit IDs and other system resources, on a shared basis, within the overall capacities available, necessary to provide an equivalent grade of service afforded to any and all other Authorized Users, including provisions for planned growth. ARTICLE VIII. THIS ARTICLE INTENTIONALLY LEFT BLANK ARTICLE IX. OWNERSHIP OF FIXED ASSETS 9.01 The CITY shall own the City/Regional Integrated Subsystem infrastructure equipment, dispatching equipment and subscriber units purchased by the CITY with the exception of the equipment transferred to Mn/DOT in Article VIII of this agreement and any interface card integrated into an equipment rack owned by Mn/DOT. A table highlighting equipment ownership is shown in exhibit A. 9.02 Mn/DOT shall own that equipment necessary to add City/Regional Integrated Subsystem equipment to an ARMER Backbone site that is physically integral to, and constitutes an incremental expansion of, ARMER Backbone equipment. Examples of equipment owned by Mn/DOT includes, but is not limited to, interface cards in master site audio switch, interface cards in Mn/DOT microwave channel bank equipment 9.03 Prior to construction of the City/Regional Integrated Subsystem, the final detailed equipment ownership lists, and identification of all ARMER and CITY sites, shall be agreed to by the CITY and Mn/DOT. ARTICLE X. COLOCATION ON CITY PROPERTIES, TOWERS & SHELTERS 10.01 MnIDOT shall be permitted to install and maintain ARMER and other Mn/DOT Public Safety communications related equipment, more fully described in Exhibit B of this document, on or in the Subsystem Antenna Site as defined in 3.14 of this Agreement: Hutchinson City of Hutchinson, Mn/Dot Cooperative Agreement for ARMER Subsystem 9 The TERM of use of the above Subsystem Antenna Site(s) shall be in accordance with conditions as described in Article IV of this document. CANCELLATION for use of the above Subsystem Antenna Site(s) shall be in accordance with conditions as described in Article V of this document. COST for the use of the above Subsystem Antenna Site(s) shall be in accordance with conditions as described in Articles XII, XII1 and XIV of this document. 10.02 CITY retains approval authority for, and shall own, any and all improvements made to the Subsystem Antenna Sites) described in 10.01 above including, but not limited to, structural improvements to towers and shelters and upgraded mechanical and electrical systems. 10.03 Except for radio channels (frequencies) covered by ARTICLE XVII of this Agreement, Mn/DOT agrees to obtain and maintain the proper FCC licensing and comply with all FCC Rules and Regulations governing the use of the equipment installed at the facilities noted in paragraph 10.01 above. 10.04 Exhibit B of this document describes the Mn/DOT equipment and placement of Mn/DOT equipment at the Subsystem Antenna Site(s) noted in paragraph 10.01 above. Changes to that described in Exhibit B must be submitted to CITY in writing. All changes must be approved by CITY in writing prior to making any changes. 10.05 Mn/DOT shall have unlimited access 24171365. 10.05 CITY and Mn/DOT agree that each party, and all subcontractors, will be responsible for its own acts and the results thereof to the extent authorized by law and shall not be responsible for the acts of any others and the results thereof. CITY, and subcontractors, agree to maintain self insurance or acquire at its sole expense during the term of this Agreement, commercial general liability insurance. 10.07 Mn/DOT shall notify CITY in advance of entry to any of the Subsystem Antenna Site(s) noted in paragraph 10.01 above. In case of an emergency, Mn/DOT shall notify CITY of entry on the next regular business day. NOTIFICATION shall be made to: City of Hutchinson Attn: Tom Gifferson 10 Franklin St. South Hutchinson, MN 55350 Phone 320-234-4498 City of Hutchinson, Mn/Dot Cooperative Agreement for ARMER Subsystem 10 ARTICLE XI. COLOCATION ON Mn/DOT PROPERTIES, TOWERS & SHELTERS 11.01 CITY shall be permitted to install and maintain ARMER and other CITY Public Safety communications related equipment, more fully described in Exhibit C of this document, on or in the Backbone Antenna Site(s) as defined in Paragraph 3.03 of this Agreement: N/A The TERM of use of the above Backbone Antenna Site(s) shall be in accordance with conditions as described in Article IV of this document. CANCELLATION for use of the above Backbone Antenna Site(s) shall be in accordance with conditions as described in Article V of this document. COST for the use of the above Backbone Antenna Site(s) shall be in accordance with conditions as described in Articles XII, X1II and XIV of this document. 11.02 Mn/DOT retains approval authority for, and shall own, any and all improvements made to the Backbone Antenna Site(s) described in 11.01 above including, but not limited to, structural improvements to towers and shelters and upgraded mechanical and electrical systems. 11.03 Except for radio channels (frequencies) covered by ARTICLE XVII of this Agreement, CITY agrees to obtain and maintain the proper FCC licensing and comply with all FCC Rules and Regulations governing the use of the equipment installed at the Backbone Antenna Site(s) noted in paragraph 10.01 above. 11.04 Exhibit C of this document describes the COUTNY equipment and placement of CITY equipment on the Backbone Antenna Site(s) noted in paragraph 11.01 above. Changes to that described in Exhibit C must be submitted to Mn/DOT in writing. All changes must be approved by MnIDOT in writing prior to malting any changes. 11.05 CITY shall have unlimited access 24/7/365. 1 1.06 CITY and Mn/DOT agree that each party, and all subcontractors, will be responsible for its own acts and the results thereof to the extent authorized by law and shall not be responsible for the acts of any others and the results thereof. CITY, and subcontractors, agree to maintain self insurance or acquire at its sole expense during the term of this Agreement, commercial general liability insurance. 11.07 CITY shall notify Mn/DOT in advance of entry to any of the Backbone Antenna Site(s) noted in paragraph 10.01 above. In case of an emergency, CITY shall notify Mn/DOT of entry on the next regular business day. NOTIFICATION shall be made to: City of Hutchinson, Mn/Dot Cooperative Agreement for ARMER Subsystem Shane Chatleain Mn/DOT Statewide Maintenance & Operations Supervisor ................. 1500 West County Road B2 ................. Roseville, MN 551 l3 551-234-7971 ARTICLE XII. ALLOCATIONS OF ARMER BACKBONE OPERATING COSTS 12.01 At the time of this agreement the Statewide Radio Board and Department of Public Safety (DPS) have provided funding to Mn/DOT for the operating costs of the State owned portions of the ARMER Backbone. Therefore there are no user fees, except for site operating utilities as outlined in Article XIII below, to be collected from the CITY by Mn/DOT for the CITY's attachment to/or operation on the ARMER Backbone. In the event that operating funding directed to Mn/DOT from DPS is discontinued or the Statewide Radio Board assesses user fees, Mn/DOT and the CITY shall work cooperatively to renegotiate this section of this cooperative agreement. ARTICLE XIII. ALLOCATIONS OF COMMUNCIATION SITE OPERATING COSTS 13.01 Mn/DOT shall not charge rent to the CITY for CITY equipment collocated at Backbone Antenna Site(s) other than items covered under Article XIV. 13.02 The CITY shall not charge rent to Mn/DOT for Mn/DOT equipment collocated at Subsystem Antenna Site(s) other than items covered under Article XIV. 13.03 CITY's cost for the operating utilities are based upon the number of base stations owned by the CITY and usage of Mn/DOT'S backup emergency generator as outlined below and completed in a separate lease agreement: 1 to 2 Stations = $300.00 per year 3 to 4 Stations = $400.00 per year 5 or more Stations = $500.00 per year ARTICLE XIV. PAYMENT AND TRANSFER OF FUNDS 14.01 If applicable, MnIDOT shall invoice the CITY annually for the operating utilities from the Backbone Antenna Site(s) payable by the CITY. The CITY shall make full and prompt payment to the Mn/DOT following receipt of an invoice from Mn/DOT for the CITY's share of annual operating utilities for the Backbone Antenna Site(s). City of Hutchinson, Mn/Dot Cooperative Agreement for ARMER Subsystem 12 ARTICLE XV. SUBSYSTEM DETAILED DESIGN APPROVAL 15.01 Prior to construction of the City Regional Integrated Subsystem, the CITY shall forward the detailed design of the Subsystem, including the acceptance test plan, to the Statewide Radio Board for its review and approval. ARTICLE XVI. CONSTRUCTION AND SYSTEM ACCEPTANCE 16.01 The CITY and Mn/DOT shall develop a construction plan for the construction of the City/Regional Integrated Subsystem. 16.02 City/Regional Integrated Subsystem design changes during the construction phase that are material and detrimentally impact the ability of an Authorized User to utilize the Backbone System shall be reviewed and approved in accordance with administrative change order procedures mutually agreed to by the CITY and Mn/130T. Said change order procedures shall not require formal Statewide Radio Board or Operations and Technical Committee approval unless the change order constitutes a material change in the City/Regional Integrated Subsystem that has the potential to adversely affect the Regional Integrated System, as determined by the Statewide Radio Board. 16.03 CITY agrees that the acceptance plan adopted by Mn/DOT for approval of the City/Regional Integrated Subsystem is acceptable to the CITY except that the CITY may add additional approval requirements as part of the CITY's Purchase Order or contract for the City/Regional Integrated Subsystem. ARTICLE XVII. FCC LICENSES 17.01 The CITY shall, apply to the Federal Communications Commission, hereinafter referred to as "FCC", to become a co -licensee for the additional National Public Safety Planning Advisory Committee (NPSPAC) frequencies added to the City Subsystem and subscriber units. The CITY shall pay all costs, and shall provide all administrative support, associated with its portion of the FCC co -licensing applications, subject to the appropriation and encumbrance of funds for such purpose as required by law. 17.02 The CITY reserves the right to retain sufficient currently licensed voice and non -voice frequencies and to license additional frequencies to accommodate departments electing not to use the 800 MHz system, fire paging, mutual aid, and for non -voice such as SCADA, siren control, mobile data, GPS, etc. City of Hutchinson, Mn/Dot Cooperative Agreement for ARMER Subsystem 13 ARTICLE XVIII. NETWORK OPERATIONS, PRIORITIES AND PROTOCOLS 18.01 The CITY shall provide the services of a designated City/Regional Integrated Subsystem administrator who shall coordinate with the Mn/DOT network administrator regarding City/Regional Integrated Subsystem operations and overall Backbone System network management issues. 18.02 The CITY and Mn/DOT shall operate the City/Regional Integrated Subsystem in conformance with the Statewide Radio Boards Plan for mutual aid usage, roaming between Subsystems, scanning between Subsystems, telephone interconnect, SCADA, mobile data, GPS and other uses potentially effecting system wide performance. 18.03 The CITY shall have authority and responsibility for the establishment of operating procedures, protocols, priorities, and standards for local government operations including dispatching occurring within the City/Regional Integrated Subsystem. If conditions occur which affect focal system or state/regional operation, Mn/DOT and the CITY agree to mutually resolve the issue in accordance with Article XXI of this Agreement. 18.04 The CITY shall determine whether Authorized Users have access to CITY assigned talk groups and encryption code groups subject to terms and conditions determined by the CITY. ARTICLE XIX. SYSTEM MAINTENANCE AND UPGRADES 19.01 Mn/DOT is responsible for the maintenance and the associated maintenance costs for all equipment owned by Mn/130T. 19.02 The CITY is responsible for the maintenance and the associated maintenance costs for all equipment owned by the CITY. 19.03 The CITY shall include any CITY owned equipment that is interconnected with the ARMER Backbone in the system Software Subscription Agreement (SSA) with the system vendor. The CITY shall be responsible for the incremental costs associated with the addition of CITY owned equipment to the SSA. This would include any interconnect console equipment, network management equipment or any other interconnected equipment. City of Hutchinson, MnlDot Cooperative Agreement for ARM ER Subsystem 14 19.04 The system will require periodic system upgrades and maintenance that may be system impacting. Some of this work may result in reduced communications during the upgrade or maintenance activity. MnIDOT shall notify the CITY of this work and the CITY and Mn/DOT shall work to find a mutually agreeable time to schedule this work in order to minimize impact to the radio users in the CITY. The CITY shall not reasonably withhold the ability of Mn/DOT to complete upgrades or system maintenance. 19.05 System capacity upgrades: It is anticipated that traffic on the system will grow over time, as this occurs the CITY and Mn/DOT will use actual system traffic reports to determine how the growth impacts performance of the system. In the event that the usage growth requires system additions, the CITY and Mn/DOT will work cooperatively to determine how the expansions are to occur and how any costs associated with the expansion will be split between the CITY and Mn/DOT. ARTICLE XX. LIABILITY AND INSURANCE 20.01 Each party agrees that it will be responsible for its own acts and the results thereof, to the extent authorized by the law, and shall not be responsible for the acts of the other party and the results thereof_ The CITY's and Mn/DOT'S liability is governed by the provisions of Minn. Stat., Chapter 466 [CITY] and Minn. Stat. Chapter 3 [Mn/DOT]. The CITY and Mn/DOT each warrant that they are able to comply with the aforementioned liability requirements through an insurance or a self-insurance program and have minimum coverage consistent with the liability limits contained in Minn. Stat., Chapter 466 [CITY ] and Minn. Stat. Chapter 3 [Mn/DOT]. ARTICLE XXI. CONFLICT RESOLUTION 21.01 If a dispute should arise between the parties to this Agreement with respect to this Agreement or any of its provisions, the parties involved agree to attempt to settle such dispute through the use of a mediator mutually acceptable to the disputing parties prior to commencement of any legal action on the part of either party with respect to this Agreement, any of its provisions and/or its enforcement. The costs of such mediation shall be shared in accordance with an Amendment to this agreement entered into prior to mediation that specifically addresses the responsibility of each party for the expenses of such mediation. City of Hutchinson, Mn/Dot Cooperative Agreement for ARMER Subsystem 15 ARTICLE XXII. CONTRACT ADMINISTRATION 22.01 In order to coordinate the activities of the CITY and Mn/DOT so as to accomplish the purposes of this Agreement, the following individuals, or their designees or successors, shall manage this Agreement on behalf of the CITY and Mn/DOT: CITY: City of Hutchinson City Administrator Attn: Matt Jaunich I 1 I Hassan St. SE Hutchinson, MN 55350 Phone 324-234-4241 MnIDOT: Director of the Office of Electronic Communications MS 730 395 John Ireland Boulevard St. Paul, Minnesota 55155 ARTICLE XXIII. NOTICE 23.41 Any notice, report or demand which must be given or made by a party hereto under the terms of this Agreement or any statute or ordinance shall be in writing, and shall be sent registered or certified mail. Notices to the CITY shall be sent to the City Administrator at the addresses contained in Article XXII to this Agreement and to the City of Hutchinson Attorney's Office, l I 1 Hassan St. SE, Hutchinson, MN 55350. Notices to Mn/DOT shall be sent to Director of Electronic Communication at the address given in Article XXII. ARTICLE XXIV. MERGER AND MODIFICATION 24.01 It is understood and agreed that the entire Agreement between the parties is contained herein and that this Agreement supersedes all oral agreements and negotiations between the parties relating to the subject hereof. All exhibits attached to this Agreement are incorporated into this Agreement and all items referred to in this Agreement are incorporated by reference and are deemed to be part of this Agreement. City of Hutchinson, Mn[Dot Cooperative Agreement for ARMER Subsystem 16 Any alterations, variations, modifications, or waivers of provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement signed by the parties hereto. ARTICLE XXV. AUDITS AND ACCESS TO RECORDS 25.01 The CITY and Mn/DOT agree that each party hereto, the State Auditor, the Legislative Auditor, or any of their duly authorized representatives at any time during normal business hours, and as often as they reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and transcribe any books, documents, papers, records, etc., which are pertinent to the accounting practices and procedures of the other party hereto and involve transactions relating to this Agreement. ARTICLE XXVI. DATA PRIVACY 26.01 The CITY and Mn/DOT agree to abideby all applicable State and Federal laws and regulations regarding confidential information concerning individuals and/or data including but not limited to information made non-public by such laws or regulations. ARTICLE XXVIL INDEPENDENT CONTRACTOR 27.01 Each party is, and shall remain, an independent contractor with respect to all services performed under this Agreement. Each party shall select the means, method, and manner of performing their respective services herein. Nothing is intended or should be construed in any manner as creating or establishing the relationship of co-partners or joint ventures between the parties hereto or as constituting either party as the agent, representative, or employee of the other for any purpose or in any manner whatsoever. Each party represents that it has or will secure at its own expense all personnel required in performing their respective services under this Agreement. Any and all personnel of either party or other persons engaged in the performance of any work or services under this Agreement shall have no contractual relationship with the other party, and shall not be considered an employee of any other party. Any and all claims that might arise under the Unemployment Compensation Act, the Workers' Compensation Act of the State of Minnesota, or any other applicable Federal or State law, rule, or regulation on behalf of said personnel, arising out of employment or alleged employment, including, without limitation, claims of discrimination against either party, its officers, agents, contractors, or employees shall in no way be the responsibility of the other party. Such personnel or other persons shall neither require nor be entitled to any compensation, rights, or benefits of any kind whatsoever from the other party, including, without limitation, tenure rights, medical and hospital care, sick and vacation leave, Workers' Compensation, Re - Employment Insurance, disability, severance pay, or PERA. City of Hutchinson, Mn/Dot Cooperative Agreement for ARMER Subsystem 17 ARTICLE XXVIII, MINNESOTA LAWS GOVERN AND SEVERABILITY 28.01 The laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations and performance obligations between the parties herein. The provisions of this Agreement shall be deemed severable. If any part of this Agreement is rendered void, invalid, or unenforceable, such rendering shall not affect the validity and enforceability of the remainder of this Agreement unless the part or parts that are void, invalid or otherwise unenforceable shall substantially impair the value of the entire Agreement with respect to the parties. One or more waivers by said party of any provision, term, condition or covenant shall not be construed by the other parties as a waiver of a subsequent breach of the same by other parties. ARTICLE XXIX. CONTRACTOR INSURANCE 29.01 The CITY agrees that any construction contracts let by the CITY for the Construction of the CITYIREGIONAL Integrated Subsystem as provided in this Agreement shall includes clauses that will: 1) require the contractors to defend, indemnify, and save harmless the Regional Radio Board, Mn/DOT, the CITY, and their officers, agents and employees from claims, suits, demands, damages, judgments, costs, interests, expenses (including, without limitation, reasonable attorney's fees, witness fees and disbursements incurred in the defense thereof) arising out of or by reason of the negligent or otherwise wrongful act or omission, including breach of a specific contractual duty, of said contractor, its officers, employees, agents or subcontractors; and 2) require the contractors to provide and maintain insurance as follows: 1. Comprehensive General Liability Insurance Policy with minimum limits in an amount not less than the statutory tort liability limits in Minn. Stat. §§ 3.736 and 466.03, combined single limit (CSL), with coverage pertaining to operation and premises of contractor; 2. Automobile Liability Insurance including owned, non -owned and hired vehicles in an amount not less than the statutory tort liability limits in Minn. Stat. §§ 3.736 and 466.03,combined single limit (CSL) for total bodily injuries and/or damages arising from any one accident. If automobiles are not used, we must receive a letter from you stating this; City of Hutchinson, Mn/Dot Cooperative Agreement for ARMER Subsystem IN 3. Professional Liability Insurance (when required) in an amount not less than the statutory tort liability limits in Minn. Stat. §§ 3.736 and 466.03,combined single limit (CSL); 4. Excess Umbrella Liability Policy in the amount not less than the statutory tort liability limits in Minn. Stat. §§ 3.736 and 466.03 will be additionally required if any of the above policies have lower limits than stated; 5. Workers' Compensation Insurance as required by Minnesota laws; And to provide Mn/DOT and CITY with Certificates of Insurance naming Mn/DOT and CITY as additional insured's, and 3) Require the contractor to be an independent contractor for the purposes of completing the work provided for in this Agreement. ARTICLE XXX. APPLICABLE PROVISIONS OF LAW 30.01 Applicable provisions of Minnesota State Law, Federal Law and any applicable local ordinance shall be considered a part of this Agreement as though fully set forth herein. Specifically, CITY agrees to comply with all federal, state and local applicable laws and ordinances relating to nondiscrimination, affirmative action, public purchases, contracting, employment including workers' compensation and state labor wage provisions, and surety deposits required for construction contracts. Notwithstanding the foregoing or any other provision of this Agreement, Mn/DOT does not agree to be subject to or bound by local ordinances. THE REMAINDER OF THIS PACE INTENTIONALLY LEFT BLANK. City of Hutchinson, Mn/Dot Cooperative Agreement for ARM ER Subsystem 19 CITY APPROVAL The State of Minnesota through its Commissioner of Transportation having signed this contract and the City of Hutchinson has duly approved this contract on the day of , 2016, and pursuant to such approval, the proper CITY officials having signed this contract, the parties hereto agree to be bound by the provisions herein set forth. CITY OF HUTCHINSON By: Dated: City Administrator Approved as to form: By: Dated: City Attorney SOUTH CENTRAL MINNESOTA REGIONAL RADIO BOARD By: Dated: Chairman of the BOARD Approved as to form: By: Dated: Board Attorney STATE OF MINNESOTA Through its Commissioner of Transportation By: Mukhtar Thakur Title: Director Dated: City of Hutchinson, Mn/Dot Cooperative Agreement for ARMER Subsystem 20 Exhibit `A" ARMER Equipment ownership depiction Regional MnIDOT owned equipment (Mn/DOT maintenance responsibility) City of Hutchinson Owned equipment - maintenance responsibility Hutchinson Exhibit B City of Hutchinson Cooperative Agreement Mn/DOT Communications Equipment located on CITY property This exhibit identifies communications equipment owned by Mn/DDT collocated at CITY sites. City sites that Mn/DOT has installed communications equipment: Hutchinson See the following pages of this exhibit for the details of equipment at each of the above sites. EXHIBIT B Hutchinson Site Mn/DOT Equipment installed at site ANTENNAS. AGENCY ANTENNA MODEL * ANTENNA HEIGHT AZIMUTH (degrees) (to base QTY COAX TYPE Mn/DOT 800 MHz Trunked Biscay Ii MICROWAVE ANTENNAS SITE NAME RX SITE HEIGHT (AGL — centerline) AZIMUTH (degrees) ANTENNA ANTENNA COAX MODEL DIAMETER TYPE Hutchinson Biscay * - Or equivalent model antenna System includes one Celwave A-490144 Tower Top Amplifier HI COMMUNICATIONS EQUIPMENT RACKS SITE NAME RACK NUMBER EQUIPMENT IN RACK Hutchinson 800 MHz Trunked Equipment Exhibit C City of Hutchinson Cooperative Agreement CITY Communications Equipment located on Mn/DOT Towers & Shelters This exhibit identifies communications equipment owned by the CITY collocated at Mn/DOT antenna sites. Mn/DOT sites that the CITY has installed communications equipment: NIA See the following pages of this exhibit for the details of equipment at each of the above sites. HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Authorizing Redevelopment Grant Application and Committing to Local Match Department: EDA LICENSE SECTION Meeting Date: 7/26/2016 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: none Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: To facilitate the redevelopment of the parcel owned by the City on the northeast corner of Hwy 7 & 15 (the proposed Hotel development site) the City is applying for a Redevelopment Grant from the Minnesota Department of Employment and Economic Development. One of the requirements of the grant application is that the City Council adopts a resolution to A) provide authorization for city staff to apply for the grant, and, B) committing to provide matching dollars if the grant is awarded. If grant dollars are obtained, they would be used to help make the Hwy 7 & 15 lot more development ready by helping pay for the construction of a frontage road and needed retaining wall. If you have any questions or need additional information, please give me a call anytime at 234-4223. BOARD ACTION REQUESTED: Adoption of Resolution No. 14593 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: RESOLUTION # 14593 RESOLUTION AUTHORIZING REDEVELOPMENT GRANT APPLICATION AND COMMITTING TO LOCAL MATCH BE IT RESOLVED that the City of Hutchinson act as the legal sponsor for project contained in the Redevelopment Grant Program to be submitted on July 29, 2016 and that Matt Jaunich, City Administrator, is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of the City of Hutchinson. BE IT FURTHER RESOLVED that the City of Hutchinson has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration. BE IT FURTHER RESOLVED that the sources and amounts of the local match identified in the application ARE COMMITTED to the project identified. BE IT FURTHER RESOLVED that if the project identified in the application fails to substantially provide the public benefits listed in the application within five years from the date of the grant award, the City of Hutchinson may be required to repay 100 percent of the awarded grant per Minn. Stat. § 116J.575 Subd. 4; BE IT FURTHER RESOLVED that the City of Hutchinson has not violated any Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the state, the City of Hutchinson may enter into an agreement with the State of Minnesota for the above referenced project, and that City of Hutchinson certifies that it will comply with all applicable laws and regulation as stated in all contract agreements. NOW, THEREFORE BE IT RESOLVED that Matt Jaunich, City Administrator is hereby authorized to execute such agreements as are necessary to implement the project(s) on behalf of the applicant. I CERTIFY THAT the above resolution was adopted by the City Council of the City of Hutchinson on July 26, 2016. SIGNED Authorized Official Gary T. Forcier, Mayor ATTEST City Administrator Date: July 26, 2016 CHECK REGISTER A - FOR CITY OF HUTCHINSON CHECK DATE FROM 07/13/2016 - 07/26/2016 Check Date -------------------- 07/26/2016 Check -------------- 192202 Vendor Name --------------------------------------------------------------- AARP Description ----------------------------------------------------------------------- AARP INSTRUCTIONS -JULY Amount -------------------- 420.00 07/26/2016 192203 ACE HARDWARE TWINE COTTON 1,108.91 07/26/2016 192204 VOID 0.00 07/26/2016 192205 AERATION INDUSTRIES INT'L INC WALL MOUNT BRACKETS FOR OXIDATION DITCH 2,602.10 07/26/2016 192206 AHLGREN ELECTRIC SQD 1P BOLT ON CIRCUIT BREAKER, PHOTOCON 447.43 07/26/2016 192207 ALBERTS, LESLIE SKATING PROGRAM EXPENSES- ICE MARKERS 26.80 07/26/2016 192208 ALPHA WIRELESS MAINT ON CONSOLE & FIXED TRANSMITTERS - 848.19 07/26/2016 192209 AMERICAN RED CROSS LIFEGUARDING REVIEW ITEM - 5 STUDENTS 135.00 07/26/2016 192210 AMERIPRIDE SERVICES TOWEL BAR, MOPS 89.53 07/26/2016 192211 ANIMAL MEDICAL CENTER ON CROW RIVER CAT & DOG BOARDING 477.00 07/26/2016 192212 APWA-MN CHAPTER 2016 PWX CHAPTER DINNER - K. EXNER 35.00 07/26/2016 192213 ARCTIC GLACIER USA INC. ICE 805.14 07/26/2016 192214 ARNESON DISTRIBUTING CO JULY PURCH 579.00 07/26/2016 192215 ARROW TERMINAL LLC REFLECTORS, SOLDER FOR SOLDER 851.91 07/26/2016 192216 ARTHUR GALLAGHER RISK WATERPARK BLDERS RISK INS 5,000.00 07/26/2016 192217 ARTISAN BEER COMPANY JULY PURCH 836.35 07/26/2016 192218 ASSEMBLY OF GOD 2016 CREEKSIDE MAIL -IN REBATE -JUNE 6.00 07/26/2016 192219 AUTO VALUE - GLENCOE SPECIAL ORDER 5.31 07/26/2016 192220 B & B SPORTS DOG BONE 30AMP MALE 24.65 07/26/2016 192221 B & C PLUMBING & HEATING INC HYDRAULIC ACTUATOR CARTRIDGE-ODDFELLOWS 84.20 07/26/2016 192222 BEACON ATHLETICS HANGING BAT RACK-ROBERTS PARK 419.66 07/26/2016 192223 BELLA VITA BAGS MISC PURCH 188.68 07/26/2016 192224 BELLBOY CORP PINEAPPLEJUICE 1,185.03 07/26/2016 192225 BENNY'S MEAT MARKET DIRECTOR'S PICNIC 2016 268.96 07/26/2016 192226 BERNICK'S MISC BEVERAGES 293.20 07/26/2016 192227 BIOBAG AMERICAS INC BAGS 8,880.00 07/26/2016 192228 BIOCYCLE 2 YEAR SUBSCRIPTION 120.00 07/26/2016 192229 BLUETARP FINANCIAL INC. PALLET JACK 4,873.71 07/26/2016 192230 BOETTCHER, TOM 2016 CREEKSIDE MAIL -IN REBATE - JUNE 6.00 07/26/2016 192231 BOLTON & MENK INC. RECLAMATION OF RUNWAY 15/33, TAXIWAY A A 15,000.00 07/26/2016 192232 BRANDED SOLUTIONS WINE CORK SCREWS 343.49 07/26/2016 192233 BRAUN INTERTEC CORP 2016 PAVEMENT MANAGEMENT PROG- CITY PROJ 6,070.25 07/26/2016 192234 BREAKTHRU BEVERAGE JULY PURCH 14,018.66 07/26/2016 192235 BRET BERGS CONSTRUCTION LLC RE -ROOFING OF TRAINING HOUSE AT RANGE FA 6,700.00 07/26/2016 192236 BROWN, MARK 2016 CREEKSIDE MAIL -IN REBATE - JUNE 9.00 07/26/2016 192237 BUREAU OF CRIM. APPREHENSION CJDN UNIT 390.00 07/26/2016 192238 BUSINESSWARE SOLUTIONS H P 83A BLACK TONER 130.00 07/26/2016 192239 C & L DISTRIBUTING JULY PURCH 18,904.32 07/26/2016 192240 CALIFORNIA CONTRACTORS SUPPLIES 10# ANSI/OSHA FIRST AID KIT 389.00 07/26/2016 192241 CARLOS CREEK WINERY JULY PURCH 600.00 07/26/2016 192242 CARS ON PATROL SHOP LLC LABOR -DECOMMISSION OLD SQUAD #5, REWIRE 5,953.31 07/26/2016 192243 CARTER, LOGAN 2016 CREEKSIDE MAIL -IN REBATE - JUNE 3.00 07/26/2016 192244 CENTRAL HYDRAULICS STRAIGHTTHREAD CONNECTOR, ADAPTER -SEMI 1,794.02 07/26/2016 192245 CENTRAL MCGOWAN HIGH PRESSURE CYL 134.40 07/26/2016 192246 CLARKE ENVIRONMENTAL MOSQUITO MANAG MOSQUITO SPRAYING -JUNE 18,090.00 07/26/2016 192247 CMK SERVICES LLC LAWN MOWING 112 GARDEN RD NE 240.00 07/26/2016 192248 CRANDALL, BETH SWIMMING LESSON REFUND 14.00 07/26/2016 192249 CREEKSIDE SOILS 50/50 COMPOST BLACK DIRT, COFFEE MULCH 516.84 07/26/2016 192250 CROW RIVER AUTO & TRUCK REPAIR FRONT PASSENGER TIRE LEAK 20.23 07/26/2016 192251 CROW RIVER PRESS INC SENIOR NEWLETTERS 89.95 07/26/2016 192253 CROW RIVER WINERY JULY PURCH 503.67 07/26/2016 192254 DAVE GRIEP CLEANING CLEAN WINDOWS 45.00 07/26/2016 192255 DAVE'S PALLET SERVICE #2 4 WAY PALLET 2,730.00 07/26/2016 192256 DECKER, DEBI 2016 CREEKSIDE MAIL -IN REBATE - JUNE 48.00 07/26/2016 192257 DEMERE, JENNIFER LITTLE SCIENTIST CLASS CANCELLED 30.00 07/26/2016 192258 DODGE, DIANE 2016 CREEKSIDE MAIL -IN REBATE - JUNE 24.00 07/26/2016 192259 DROP -N -GO SHIPPING INC COPIES 2,487.23 07/26/2016 192260 DUNDEE FUNERAL PLANT FOR RETIREE 35.00 07/26/2016 192261 DUQUETTE, SUSAN 2016 CREEKSIDE MAIL -IN REBATE - MAY 30.00 CHECK REGISTER A - FOR CITY OF HUTCHINSON CHECK DATE FROM 07/13/2016 - 07/26/2016 Check Date -------------------- 07/26/2016 Check -------------- 192262 Vendor Name --------------------------------------------------------------- DYNA SYSTEMS Description ----------------------------------------------------------------------- METAL GROOM GENERAL DEGREASER, PENETRANT Amount -------------------- 616.92 07/26/2016 192263 E2 ELECTRICAL SERVICES INC CAT 6 RUNS PER QUOTE 5,982.48 07/26/2016 192264 EHLERS & ASSOCIATES INC TIF DISTRICT #4-18: 2016 ESTABLISHMENT 11,241.25 07/26/2016 192265 ELK RIVER COMPOSTING INC CONTRACTED COMPOST- MAY 5,977.66 07/26/2016 192266 ENG, CLIFF 2016 CREEKSIDE MAIL -IN REBATE - JUNE 21.00 07/26/2016 192267 ENGELMANN, MICHAEL SPONSOR REIMB PRCE/REFUND TO MIKE 495.00 07/26/2016 192268 EPSKY, PATTY 2016 CREEKSIDE MAIL -IN REBATE -JUNE 18.00 07/26/2016 192269 ERICKSON, ESTHER 2016 CREEKSIDE MAIL -IN REBATE -JUNE 9.00 07/26/2016 192270 EVERSON, GORDON 2016 CREEKSIDE MAIL -IN REBATE - JUNE 3.00 07/26/2016 192271 FASTENAL COMPANY 14X1/8X20 MM TICUTWHL 503.17 07/26/2016 192272 FIRST ADVANTAGE LNS OCC HEALTH SOLU EMPLOYEE TESTING 301.85 07/26/2016 192273 FOSTER MECHANICAL INSTALL 10 TON ROOFTOP UNIT WITH 210,000 9,685.00 07/26/2016 192274 FREDRICKSON, RUTH 2016 CREEKSIDE MAIL -IN REBATE - JUNE 17.00 07/26/2016 192275 FRENCH, JUDY 2016 CREEKSIDE MAIL -IN REBATE - JUNE 3.00 07/26/2016 192276 G & K SERVICES MATS, TOWELS 82.82 07/26/2016 192277 GALCO INDUSTRIAL ELECTRONICS OVERLOAD RESET BUTTON, HOUR METER, GASKE 352.92 07/26/2016 192278 GEB ELECTRICAL INC REPLACED BREAKERS AT REC CENTER 140.00 07/26/2016 192279 GEOTEK ROD POST 1,246.50 07/26/2016 192280 GEYER SIGNAL WATER CARNIVAL PARADE BARICADES 1,260.00 07/26/2016 192281 GOBLIRSCH, SAMUEL 2016 CREEKSIDE MAIL -IN REBATE -JUNE 3.00 07/26/2016 192282 GOLDSTEIN, KAREN 2016 CREEKSIDE MAIL -IN REBATE -JUNE 3.00 07/26/2016 192283 GOPHER STATE FIRE EQUIPMENT CO. AMEREX ABC RECHARGE, ANNUAL INSPECT 263.18 07/26/2016 192284 GRAINGER IBC SPILL CONTAINMENT/DRAIN 1,230.12 07/26/2016 192285 GREEN LIGHTS RECYCLING 4' & 5' UNDER FLUORESCENT LAMPS 81.58 07/26/2016 192286 GREER, BOB 2016 CREEKSIDE MAIL -IN REBATE -JUNE 30.00 07/26/2016 192287 HAMILTON, MELISSA REFUND FOR 7/25 SWIM LESSON 40.00 07/26/2016 192288 HANSEN GRAVEL TRUCKING- KIMBERLY PARK 176.00 07/26/2016 192289 HANSON & VASEK CONSTRUCTION STREET, SIDEWALK, ALLEY CONCRETE REPAIRS 1,995.00 07/26/2016 192290 HAUGEN, LINDA 2016 CREEKSIDE MAIL -IN REBATE -JUNE 78.00 07/26/2016 192291 HAYES INSTRUMENT CO AERVOE INVERTED PAINT FLORESCENT PINK 390.81 07/26/2016 192292 HD SUPPLY WATERWORKS LTD OMNI 1-1/2"T2 MTR 1000G 918.72 07/26/2016 192293 HEATREX REPLACEMENT HEATER IN BLDG 100 3,903.31 07/26/2016 192294 HELENA CHEMICAL COMPANY BAG+ PROSCAPE 25-0-5 70% MESA 258.00 07/26/2016 192295 HENRY'S WATERWORKS INC UPM 3 SPRING/FALL GRADE COLD PATCH 756.00 07/26/2016 192296 HERMAN, CHARLEE 2016 CREEKSIDE MAIL -IN REBATE - JUNE 18.00 07/26/2016 192297 HI -LINE INC ZZ ASSORTMENT, LOOM FLEXIBLE 494.84 07/26/2016 192298 HICKLIN, KAREN 2016 CREEKSIDE MAIL -IN REBATE -JUNE 3.00 07/26/2016 192299 HILL,JANEY 2016 CREEKSIDE MAIL -IN REBATE -JUNE 6.00 07/26/2016 192300 HILLYARD/ HUTCHINSON TOWEL ROLL 770.53 07/26/2016 192301 HIRSHFIELD'S INC DTM ACR GLS SFTY, SUPERFAV FTP 396.38 07/26/2016 192302 HOHENSTEINS INC JULY PURCH 265.87 07/26/2016 192303 HOISINGTON KOEGLER GROUP INC HUTCHINSON DOWNTOWN SIGNAGE- JUNE 2016 447.50 07/26/2016 192304 HOLT TOUR AND CHARTER INC. BLACK BEAR LODGE & JASPER THEATER- 8/17/ 1,195.00 07/26/2016 192305 HOME SWEET HOME QUILT & DESIGN HEM PANTS, APPLIQUE BARS 41.00 07/26/2016 192306 HORVATH, KELLY 2016 CREEKSIDE MAIL -IN REBATE -JUNE 30.00 07/26/2016 192307 HP INC DISPATCH RECORDS 286.11 07/26/2016 192308 HRON, DAN 2016 CREEKSIDE MAIL -IN REBATE -JUNE 90.00 07/26/2016 192309 HUTCH AUTO BODY LT DOOR GLASS REPAIR 81.00 07/26/2016 192310 HUTCHFIELD SERVICES INC COMMERCIAL JANITORIAL -JULY 1,512.28 07/26/2016 192311 HUTCHINSON CO-OP 89 OCT 10% ETHANOL GAS 24,226.33 07/26/2016 192312 HUTCHINSON FIGURE SKATING ASSOC PROF SERVICES- SUMMER SKATING INSTRUCTIO 1,077.00 07/26/2016 192313 HUTCHINSON HEALTH EMPLOYEE TESTING 669.92 07/26/2016 192314 HUTCHINSON JAYCEES GRANT REIMB -JAYCEES WATER CARNIVAL FLO 12,626.33 07/26/2016 192315 HUTCHINSON LEADER ADVERTISING 316.81 07/26/2016 192316 HUTCHINSON UTILITIES JUNE UTILITIES 5/31- 6/30/16 103,880.57 07/26/2016 192317 HUTCHINSON UTILITIES 2ND QTR BILLING- B.FITZPATRICK 13,166.00 07/26/2016 192318 HUTCHINSON WHOLESALE OIL, AIR & HYDRAULIC FILTER 306.44 07/26/2016 192319 HUTCHINSON, CITY OF WATER SERVICE THRU 5/1-5/31/16 11,640.85 07/26/2016 1192320 1 HUTCHINSON, CITY OF REPLENISH ATM 4,000.00 CHECK REGISTER A - FOR CITY OF HUTCHINSON CHECK DATE FROM 07/13/2016 - 07/26/2016 Check Date -------------------- 07/26/2016 Check -------------- 192321 Vendor Name --------------------------------------------------------------- INTERNATIONAL CODE COUNCIL INC Description ----------------------------------------------------------------------- 15 MINNESOTA FIRE CODE Amount -------------------- 190.00 07/26/2016 192322 INTERSTATE POWER COMPANIES INC HARROW BEARING -TURNER 128.03 07/26/2016 192323 IOWA DEPT OF AGRICULTURE TONNAGE FEE 1ST HALF 1/1-6/30/16 44.94 07/26/2016 192324 ISKIERKA, PAM 2016 CREEKSIDE MAIL -IN REBATE -JUNE 30.00 07/26/2016 192325 JACKA, MIKE 2016 CREEKSIDE MAIL -IN REBATE -JUNE 45.00 07/26/2016 192326 JAY MALONE MOTORS TUBE 39.66 07/26/2016 192327 JEFF MEEHAN SALES INC. JUNE COMMISSIONS 6,874.81 07/26/2016 192328 JEFFREY, SHARON 2016 CREEKSIDE MAIL -IN REBATE -JUNE 3.00 07/26/2016 192329 JJ TAYLOR DIST OF MN JULY PURCH 7,935.15 07/26/2016 192330 JOBS FOUNDATION/ TECH DUMP PRINTERS + MISC LOWGRADE ITEMS, EXTENDED 175.00 07/26/2016 192331 JOHNSON BROTHERS LIQUOR CO. JOHNSON BROTHERS LIQUOR 14,863.66 07/26/2016 192332 JOHNSON,TONI REFUND UNDER THE LIGHTS 50.00 07/26/2016 192333 JOHNSTONE, CYNTHIA 2016 CREEKSIDE MAIL -IN REBATE -JUNE 3.00 07/26/2016 192334 JUSTESEN, GINGER 2016 CREEKSIDE MAIL -IN REBATE -JUNE 12.00 07/26/2016 192335 KDUZ KARP RADIO ADVERTISING 369.50 07/26/2016 192336 KENNEDY SCALES INC SCALE- HT TRIP CHARGE ZONE 1,106.13 07/26/2016 192337 KERI'S CLEANING CITY CENTER, LIBRARY, SENIOR DINING & FI 1,875.00 07/26/2016 192338 KEYSTONE COMPENSATION GROUP LLC COMPENSATION STUDY PMT#1 9,750.00 07/26/2016 192339 KLINE, KAREN 2016 CREEKSIDE MAIL -IN REBATE - JUNE 15.00 07/26/2016 192340 KNIFE RIVER TILE CAPS FOR VMF 10.10 07/26/2016 192341 KOHLS SWEEPING SERVICE JD 700H DOZER- PILED CONCRETE 1,690.00 07/26/2016 192342 KUJALA, SUSAN 2016 CREEKSIDE MAIL -IN REBATE - JUNE 3.00 07/26/2016 192343 KUTTER, MIKE SAFETY FOOTWEAR/SEASONAL 175.00 07/26/2016 192344 L & P SUPPLY CO CHAIN 943.68 07/26/2016 192345 LADWIG, PETER REFUND UNDER THE LIGHTS 50.00 07/26/2016 192346 LAUINGER, ERICA 2016 CREEKSIDE MAIL -IN REBATE -JUNE 18.00 07/26/2016 192347 LAURIE,VERONICA 2016 CREEKSIDE MAIL -IN REBATE -JUNE 3.00 07/26/2016 192348 LEDOUX, KATHLEEN 2016 CREEKSIDE MAIL -IN REBATE -JUNE 3.00 07/26/2016 192349 LETG LLC LETG JAIL- BOOKING PHOTO INTERFACE, JAIL 2,216.00 07/26/2016 192350 LEXISNEXIS JUNE 2016 USER 155.95 07/26/2016 192351 LOCHER BROTHERS INC JULY PURCH 27,786.25 07/26/2016 192352 LOGAN, BARB 2016 CREEKSIDE MAIL -IN REBATE -JUNE 24.00 07/26/2016 192353 LOGIS JUN APPLSUP 7,229.50 07/26/2016 192354 LONG, LISA REFUND SWIM LESSONS 40.00 07/26/2016 192355 LTP ENTERPRISES WELL#6 PUMP REMOVAL & DEBIS TESTING 1,535.00 07/26/2016 192356 MADDEN GALANTER HANSEN LLP SERVICES THRU 6/30/16 42.09 07/26/2016 192357 MAKI, CONNIE 2016 CREEKSIDE MAIL -IN REBATE -JUNE 2.00 07/26/2016 192358 MATHESON TRI -GAS INC ACETLENE, HIGH PRESSURE 15.45 07/26/2016 192359 MAYTAG LAUNDRY & CAR WASH LINEN 360.08 07/26/2016 192360 MCLEOD COUNTY ARAUJO, ALEXI- FUTURE SHOWSTOPPERS, NEVE 26.00 07/26/2016 192361 MCLEOD COUNTY SHERIFF'S OFFICE 40 MM PROJECTILE FERRET BARRICADE POWER 2,425.70 07/26/2016 192362 MCLEOD PUBLISHING INC ADVERTISER DISPLAY WEDDING DIRECTORY 17.50 07/26/2016 192363 MCRAITH, JOHN OLD LOG THEATER TICKETS 60.00 07/26/2016 192364 MCSHANE, KELLY 2016 CREEKSIDE MAIL -IN REBATE -JUNE 60.00 07/26/2016 192365 MEDICA MEDICAL INSURANCE FOR AUGUST 2016 123,316.11 07/26/2016 192366 MEEKER COUNTY BUILDING DEPT ULLAND CASE- PREPARATION FOR S. ULLAND T 125.00 07/26/2016 192367 MEEKER WASHED SAND & GRAVEL 60.11 SAND 8,416.98 07/26/2016 192368 MENARDS HUTCHINSON 20"X15' FROSTED P&S 545.10 07/26/2016 192369 MESSAGE MEDIA MONTHLY SERVICE FEE -JUNE 41.04 07/26/2016 192370 MICHIGAN DEPARTMENT OF AGRICULTURE TONNAGE FEE 1ST HALF 12.60 07/26/2016 192371 MIDWEST PLAYGROUND CONTRACTORS PLAYWORLD SYSTEMS PLAYSTRUCTURE 1,550.00 07/26/2016 192372 MILLNER HERITAGE VINEYARD & WINERY JULY PURCH 1,125.60 07/26/2016 192373 MINI BIFF RENT -REG BLUE COUNTRY CLASSIC 487.30 07/26/2016 192374 MINNESOTA ASSN OF CEMETERIES MN ASSOC OF CEMETERIES, DUES FOR OAKLAND 85.00 07/26/2016 192375 MINNESOTA DEPT OF AGRICULTURE SOIL AMENDMENT & FERTILIZER TONNAGE 2,264.36 07/26/2016 192376 MINNESOTA DEPT OF MOTOR VEHICLE TITLE/REG FEES 2012 FORD F550- PARKS 2,456.25 07/26/2016 192377 MINNESOTA MUNICIPAL BEVERAGE ASSOC ANNUAL DUES 7/2016-7/2017 3,700.00 07/26/2016 192378 MINNESOTA NURSERY & LANDSCAPE ASSN 2016-2017 MEMBER MNLA MEMBER RENEWAL 519.00 07/26/2016 1192379 1 MINNESOTA PIPE & EQUIP 18"X12" SCH 40 REDUCER FAB 479.89 CHECK REGISTER A - FOR CITY OF HUTCHINSON CHECK DATE FROM 07/13/2016 - 07/26/2016 Check Date -------------------- 07/26/2016 Check -------------- 192380 Vendor Name --------------------------------------------------------------- MINNESOTA UNEMPLOYMENT INSURANCE Description ----------------------------------------------------------------------- 2ND QTR UNEMPLOYMENT BENEFITS 2016 Amount -------------------- 3,455.45 07/26/2016 192381 MINNESOTA VALLEY TESTING LAB BOD 1,245.00 07/26/2016 192382 MOELLER, SUSAN 2016 CREEKSIDE MAIL -IN REBATE -JUNE 3.00 07/26/2016 192383 MORRIS, SARA LITTLE SWIMMERS CLASS 20.00 07/26/2016 192384 MWOA 7/27 CONFERENCE -J. & D. PAULSON 550.00 07/26/2016 192385 NELSON, JUDY 2016 CREEKSIDE MAIL -IN REBATE - JUNE 3.00 07/26/2016 192386 NELSON, LYNDA 2016 CREEKSIDE MAIL -IN REBATE -JUNE 3.00 07/26/2016 192387 NELSON, PAUL 2016 CREEKSIDE MAIL -IN REBATE -JUNE 363.00 07/26/2016 192388 NIELSEN, JOYCE 2016 CREEKSIDE MAIL -IN REBATE - JUNE 12.00 07/26/2016 192389 NORTH CENTRAL LABORATORIES SODIUM HYDROXIDE 234.18 07/26/2016 192390 NORTH SHORE ANALYTICAL INC EFFLUENT, INFLUENT, GELMAN AQUAPREP 410.00 07/26/2016 192391 NORTHERN BUSINESS PRODUCTS CLEANER PINE SOL, PAPER, DISH SOAP 128.09 07/26/2016 192392 NORTHERN POWER PRODUCTS LIGHTTONER- PUMP SOLENOID 100.18 07/26/2016 192393 NU -TELECOM JULYSERVICES 74.95 07/26/2016 192394 O'REILLYAUTO PARTS BLADERUNNER 581.03 07/26/2016 192395 OFFICE DEPOT CENTON DATASTICK 95.54 07/26/2016 192396 PAGEL, MAX NO TEAM TOGETHER 136.00 07/26/2016 192397 PARTIDA, MARY 2016 CREEKSIDE MAIL -IN REBATE - JUNE 9.00 07/26/2016 192398 PEARCE, MARY PROF SERVICES- LIFEGUARD RE-CERTIFICATIO 250.00 07/26/2016 192399 PEAT INC. CY REED SEDGE FINE 5,006.25 07/26/2016 192400 PHILLIPS WINE & SPIRITS JULY PURCH 6,725.32 07/26/2016 192401 PHILLIPS, DAVID 2016 CREEKSIDE MAIL -IN REBATE -JUNE 30.00 07/26/2016 192402 PIONEER MANUFACTURING CO BRITE STRIPE WHITE 1,188.00 07/26/2016 192403 POSITIVE ID INC HUC EMPLOYEE BADGE, NAME CHANGE 19.15 07/26/2016 192404 PRIEVE LANDSCAPING & LAWN CARE ROUND UP ROCK BEDS 106.88 07/26/2016 192405 QUADE ELECTRIC BAGGER- AB 100-CO9010 CONTACTOR 1,056.95 07/26/2016 192406 QUILL CORP 20X20X2 FILTER 317.82 07/26/2016 192407 RABER, MICAELA 2016 CREEKSIDE MAIL -IN REBATE -JUNE 12.00 07/26/2016 192408 RANDY'S BOBCAT SERVICE SCREENED BLACK DIRT 144.00 07/26/2016 192409 RDO EQUIPMENT CO. HAND CONTR-TURNER 2,836.81 07/26/2016 192410 RED BULL DISTRIBUTION COMPANY RED BULL 304.00 07/26/2016 192411 REFLECTIVE APPAREL FACTORY INC ANSI ZIPPERED MESH VEST 346.13 07/26/2016 192412 REINER ENTERPRISES INC FLATBED TRUCKING 6/21-6/24 1,559.47 07/26/2016 192413 RHEN, RODNEY 2016 CREEKSIDE MAIL -IN REBATE -JUNE 15.00 07/26/2016 192414 ROBERTS, KEITH 2016 CREEKSIDE MAIL -IN REBATE -JUNE 6.00 07/26/2016 192415 ROYALTIRE LP225 USED TRUCK TIRES -WALKING FLOOR TRA 300.00 07/26/2016 192416 RUBY, EMILY WITHDRAW FROM LITTLE SWIMMERS 36.00 07/26/2016 192417 RUNNING'SSUPPLY JEANS 153.94 07/26/2016 192418 RYCH LEY, WENDY 2016 CREEKSIDE MAIL -IN REBATE -JUNE 6.00 07/26/2016 192419 SCHMALZ, KERMIT 2016 CREEKSIDE MAIL -IN REBATE -JUNE 9.00 07/26/2016 192420 SCHOOL DIST # 423 JUNE ACTIVITIES 47,325.85 07/26/2016 192421 SCHUETTE, DONOVAN SAFETY GLASSES REIMB 100.00 07/26/2016 192422 SCHWARDT, SHARON 2016 CREEKSIDE MAIL -IN REBATE - JUNE 6.00 07/26/2016 192423 SEH HUTCH 2015 ANTENNA PROJECTS 5,256.56 07/26/2016 192424 SEPPELT, MILES MIF TRAINING, LUNCH MEETING, BRIEFING RE 201.81 07/26/2016 192425 SHORTER, RASHELLE 2016 CREEKSIDE MAIL -IN REBATE -JUNE 6.00 07/26/2016 192426 SHUFELT, LOIS 2016 CREEKSIDE MAIL -IN REBATE -JUNE 6.00 07/26/2016 192427 SILL, SHARON 2016 CREEKSIDE MAIL -IN REBATE - JUNE 24.00 07/26/2016 192428 SCRENSEN'S SALES & RENTALS BED EDGER 268.00 07/26/2016 192429 SOUTHERN WINE & SPIRITS OF MN JULY PURCH 11,503.75 07/26/2016 192430 SOUTHWAY GREENHOUSE PLANT FOR EMPLOYEE RELATIVE FUNERAL-S.W 39.90 07/26/2016 192431 SPARTAN STAFFING WK ENDING 6/26/16 6,086.14 07/26/2016 192432 SPS COMMERCE INC WEBFORMS MONTHLY SUBSCRIPTION -JUNE 122.17 07/26/2016 192433 STACHOWSKI, CINDY 2016 CREEKSIDE MAIL -IN REBATE -JUNE 6.00 07/26/2016 192434 STANDARD PRINTING STAMP, PARCHMENT COVER 13.53 07/26/2016 192435 STAPLES ADVANTAGE THERMAL POSROLLS, 3 TAB 500.28 07/26/2016 192436 STAR TRIBUNE SUBSCRIPTION 7/24/16-1/22/17 171.86 07/26/2016 192437 STATE OF WISCONSIN FERTILIZER LICENSE 260.70 07/26/2016 1192438 ISTEPP MFG CO INC ISHOVEL CLEANER ASSY 439.44 CHECK REGISTER A - FOR CITY OF HUTCHINSON CHECK DATE FROM 07/13/2016 - 07/26/2016 Check Date -------------------- 07/26/2016 Check -------------- 192439 Vendor Name --------------------------------------------------------------- STIX AND BRIX Description ----------------------------------------------------------------------- UB refund for account: 3-320-4810-5-04 Amount -------------------- 40.63 07/26/2016 192440 STRAUB, MARY 2016 CREEKSIDE MAIL -IN REBATE -JUNE 33.00 07/26/2016 192441 STREICH TRUCKING LYNDE TO CREEKSIDE/ 3 LOADS 6,125.00 07/26/2016 192442 SWIERCESKI, PAT 2016 CREEKSIDE MAIL -IN REBATE -JUNE 6.00 07/26/2016 192443 SZALAPSKI, VICTORIA 2016 CREEKSIDE MAIL -IN REBATE -JUNE 30.00 07/26/2016 192444 TACTICAL SOLUTIONS CERTIFICATION OF RADAR & TUNING FORKS 265.00 07/26/2016 192445 TESSMAN COMPANY NUF PRODEUCE GL 725.32 07/26/2016 192446 THOMSON REUTERS -WEST WEST INFORMATION CHARGES- MAY 1,579.70 07/26/2016 192447 TKO WINES JULY PURCH 129.00 07/26/2016 192448 TNL CREATIONS 44" URN STAND 252.20 07/26/2016 192449 TRETTIN, RUSSELL UB refund for account: 2-975-0950-1-00 20.95 07/26/2016 192450 TRI COUNTY WATER CSSV, SERV, SUPP- REC CENTER 213.14 07/26/2016 192451 TUFFNER, KENNETH 2016 CREEKSIDE MAIL -IN REBATE -JUNE 3.00 07/26/2016 192452 TWO WAY COMMUNICATIONS INC LYLE'S RADIO- REPLACED LCD FUSE PACKING 170.00 07/26/2016 192453 UNIVERSITY OF MINNESOTA PESTICIDE WORKSHOP- D. SCHUETTE 140.00 07/26/2016 192454 UNUM LIFE INSURANCE CO OF AMERICA LIFE & LTD INSURANCE FOR AUGUST 2,095.58 07/26/2016 192455 URBAN SPRITE MEDIA :15 RADIO SPOTS INSIDE GARDEN BITE WITH 750.00 07/26/2016 192456 US COMPOSTING COUNCIL USCC MEMBERSHIP 295.00 07/26/2016 192457 US IDENTIFICATION MANUAL US IDENTIFICATION MANUAL UPDATE SERVICE 82.50 07/26/2016 192458 USA BLUE BOOK 1/2" PVC CROSS SOC SCH80 85.69 07/26/2016 192459 VAAGENES, BONNIE 2016 CREEKSIDE MAIL -IN REBATE -JUNE 12.00 07/26/2016 192460 VALLEY PROPERTIES UB refund for account: 1-575-0550-5-01 18.82 07/26/2016 192461 VANDER HEIDEN, JACOB SAFETY FOOTWEAR SEASONAL 95.95 07/26/2016 192462 VANDUREN, ALBERT 2016 CREEKSIDE MAIL -IN REBATE -JUNE 12.00 07/26/2016 192463 VARIN, ANTHONY 2016 CREEKSIDE MAIL -IN REBATE -JUNE 9.00 07/26/2016 192464 VERIZON WIRELESS JUNE SERVICES 38.22 07/26/2016 192465 VERTECH SOLUTIONS & SERVICES RENTAL AC -A4#12053 DISHMACHINE 69.95 07/26/2016 192466 VIKING AUTOMATIC SPRINKLER REPAIR LEAKING 2.5" OF PIPE 489.00 07/26/2016 192467 VIKING BEER JULY PURCH 14,847.46 07/26/2016 192468 VIKING COCA COLA MISC BEVERAGES 403.20 07/26/2016 192469 VIKING SIGN & GRAPHICS INC S. PARK RISE GOLF -10X13 ALUM SIGNS FOR D 360.00 07/26/2016 192470 VINOCOPIA INC JULY PURCH 937.50 07/26/2016 192471 WAGNER, KEN 2016 CREEKSIDE MAIL -IN REBATE -JUNE 6.00 07/26/2016 192472 WALKER, RICK 2016 CREEKSIDE MAIL -IN REBATE -JUNE 18.00 07/26/2016 192473 WASTE MANAGEMENT OF WI -MN 6/16-6/30/16 DISPOSAL FEES 13,989.78 07/26/2016 192474 WCCO-AM ADVERTISING 6/27-7/03/16 2,050.00 07/26/2016 192475 WELCOME NEIGHBOR HUTCHINSON NEW RESIDENTVISITS 60.00 07/26/2016 192476 WELLS FARGO MISC PURCH 2,673.06 07/26/2016 192477 WEST CENTRAL SANITATION INC. JUNE REFUSE SERVICES 45,568.58 07/26/2016 192478 WEST CENTRAL SHREDDING PAPER SHRED -JULY 51.00 07/26/2016 192479 WICKLEM, ROBERT 2016 CREEKSIDE MAIL -IN REBATE -JUNE 6.00 07/26/2016 192480 WINE COMPANY, THE JULY PURCH 472.40 07/26/2016 192481 WINTER, KELLY 2016 CREEKSIDE MAIL -IN REBATE -JUNE 36.00 07/26/2016 192482 WM MUELLER & SONS STREETS, PAVEMENT REPAIRS 12,908.09 07/26/2016 192483 ZENON ENVIRONMENTAL CORPORATION ASSY, ZW500D, LEAP, QUAD, O-RING 1,684.33 07/26/2016 192484 ZIEGLER INC GRINDER- BASE 54.90 GRAND TOTAL 795,220.67 CHECK REGISTER B - FOR CITY OF HUTCHINSON CHECK DATE FROM 07/13/2016 - 07/26/2016 Check Date Check ---------------------------------- 07/26/2016 192252 Vendor Name --------------------------------------------------------------- CROW RIVER SIGNS Description Amount ----------------------------------------------------------------------- -------------------- SQUAD CAR # 5 -VEHICLE GRAPHICS 750.00 GRAND TOTAL 1 750.00 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: RESOLUTIONS ADOPTING TIF PLAN MODIFICATION TO THE DEVELOPME6 Department: HRA LICENSE SECTION Meeting Date: 7/26/2016 Application Complete N/A Contact: Jean Ward Agenda Item Type: Presenter: Nick Anhut, Ehlers Reviewed by Staff ❑ Public Hearing Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: The Hutchinson Housing & Redevelopment Authority is proposing that a Housing Tax Increment District 4-18 be created for Highfield Apartments, a three phase eighty seven unit apartment project located off Denver Avenue. Financing is needed to bridge the shortfall between the development costs and the financing available to the project. A TIF district will allow the capture of property taxes from the project to provide the financing to bridge that shortfall. With a general occupancy apartment vacancy rate of less than 2.0% in Hutchinson, apartments are in short supply and new rental construction is badly needed to achieve a healthy vacancy rate of 5.0%. 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 Public Hearing will review the proposed modification of Development District 4 and the proposed establishment of Tax Increment Financing District 4-18 to implement the Program and Plan. The HRA Board has reviewed the TIF Program and Plan and is recommending approval by the City Council. See attached HRA resolution. In addition, the Planning Commission has determined that the TIF Plan conforms with the City Comprehensive Plan. See attached Planning Commission resolution. The HRA Board has also reviewed the TIF Development Agreement, whose purpose is to achieve the objectives of the TIF Program and Plan and to assist the Developer with the financing of certain costs of the project. The HRA Board recommends approval by the City Council. If you have any questions, or need additional information, please feel free to contact me at 234-4235. BOARD ACTION REQUESTED: Adopt Resolution to modify the Development Program For Development District No. 4 and the Establishment of Tax Increment Financing District No. 4-18 and adopt Resolution to approve TIF Development Agreement Fiscal Impact: $ 0.00 Funding Source: N/A FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Tax Increment Financing District Overview City of Hutchinson Tax Increment Financing District No. 4-18 The following summary contains an overview of the basic elements of the Tax Increment Financing Plan for Tax Increment Financing District No. 4-18. 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. 4-18 (District) and the adoption of a Tax Increment Financing Plan (TIF Plan). Modification of the Development Program for Development District No. 4 to include the establishment of Tax Increment Financing District No. 4-18 and represents a continuation of the goals and objectives set forth in the Development Program for Development District No. 4. Type of TIF District: A housing district Parcel Numbers: 23.481.0020* *The parcel listed will be subdivided prior to certification of the District. The final property to be included in the District will consist of three newly created parcels and adjacent rights-of-way. The proposed legal descriptions of the subdivided parcels are as follows: Lot 1, block 1, Highfield Addition Lot 2, block 1, Highfield Addition Lot 3, block 1, Highfield Addition Proposed The District is being created to facilitate the construction of up to 87 units of Development: market -rate and affordable rental housing 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 17 years from the date of receipt of the first increment (18 total years of increment). The City expects to receive the first tax increment in 2019. It is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after December 31, 2036, or when the TIF Plan is satisfied. Estimated annual tax Up to $48,306 increment: IS EHLERS LEADERS IN PUBLIC FINANCE Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that may be expended over the life of the TIF District: Land/Building Acquisition .....................................................$425,000 Site Improvements/Preparation ..............................................$175,000 Utilities................................................................................... $240,000 Other Qualifying Improvements ............................................$162,725 Administrative Costs (up to 10%) ..........................................$135,155 PROJECT COSTS TOTAL ................................................$1,137,880 Interest...................................................................................$348,824 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 pay-as-you- go notes not to exceed $834,395 in total. The notes will be issued to reimburse a portion of the developer's upfront costs of the project. The TIF Note will carry an interest rate of 3.0% and is to be repaid exclusively from 90% of the increment as received by the City. Housing TIF To qualify as a Housing District, at least 20% of the units will be occupied by Qualifications: persons at or below 50% of the area median income. As part of the Development Agreement, the developer will covenant to ensure compliance. Administrative Fee: Up to 10% of annual increment to cover authorized administrative costs. Interfund Loan If the City wants to pay for any administrative expenditure prior to the receipt Requirement: of increment, it is recommended that a resolution authorizing a loan from another fund be passed 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 August 2020, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 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 July 13, 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. 4-18 (a housing district) within Development District No. 4 City of Hutchinson McLeod County State of Minnesota Public Hearing: July 26, 2016 Adopted: is EHLERS Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.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. 4-18 ................................. 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 ....................................... 2-6 Subsection 2-12. County Road Costs ....................................... 2-7 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 ........................ 2-9 Subsection 2-16. Modifications to the District ................................. 2-9 Subsection 2-17. Administrative Expenses .................................. 2-10 Subsection 2-18. Limitation of Increment ................................... 2-10 Subsection 2-19. Use of Tax Increment .................................... 2-11 Subsection 2-20. Excess Increments ...................................... 2-12 Subsection 2-21. Requirements for Agreements with the Developer .............. 2-12 Subsection 2-22. Assessment Agreements ................................. 2-12 Subsection 2-23. Administration of the District ............................... 2-13 Subsection 2-24. Annual Disclosure Requirements ........................... 2-13 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 Housing Qualifications for the District ........................................ E-1 Appendix F Findings for the District ................................................... 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 of the 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 District No. 4-18. For further information, a review ofthe Development Program for Development District No. 4, most recently modified June 14, 2016, is recommended. It is available from the City Administrator at the City of Hutchinson. 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. 18. 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. 4-18 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. 4-18 (the "District"), a housing 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 87 units of market -rate and affordable rental housing in the City. Please see Appendix A for further District information. The City proposed to enter into an agreement with Highfield Apartments of Hutchinson, LLC as the developer. 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. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 2-1 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 may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. 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 a housing district pursuant to M. S., Section 469.174, Subd. 11 and M. S., Section 469.1761 as defined below: M.S., Section 469.174, Subd. I ]: "Housing district" means a type of tax increment financing district which consists of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in chapter 462A, Title H of the National Housing Act of 1934, the National HousingAct of 1959, the United States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts, and that satisfies the requirements ofM.S., Section 469.1761. Housing project means a project, or portion of a project, that meets all the qualifications of a housing district under this subdivision, whether or not actually established as a housing district. M.S., Section 469.1761: Subd. 1. Requirement imposed. (a) In order for a tax increment financing district to qualify as a housing district: (1) the income limitations provided in this section must be satisfied; and (2) no more than 20 percent of the square footage of buildings that receive assistance from tax increments may consist of commercial, retail, or other nonresidential uses. (b) The requirements imposed by this section apply to property receiving assistance financed with tax increments, including interest reduction, land transfers at less than the authority's cost of acquisition, utility service or connections, roads, parking facilities, or other subsidies. The provisions of this section do not apply to districts located within a targeted area as defined in Section 462C. 02 Subd 9, clause (e). (c) For purposes of the requirements ofparagraph (a), the authority may elect to treat an addition to an existing structure as a separate building if City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 2-2 (1) construction of the addition begins more than three years after construction of the existing structure was completed; and (2) for an addition that does not meet the requirements of paragraph (a), clause (2), if it is treated as a separate building, the addition was not contemplated by the tax increment financing plan which includes the existing structure. Subd. 2. Owner occupied housing. For owner occupied residential property, 95 percent of the housing units must be initially purchased and occupied by individuals whose family income is less than or equal to the income requirements for qualified mortgage bond projects under section 1430 of the Internal Revenue Code. Subd. 3. Rental property. For residential rental property, the property must satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code. The requirements of this subdivision apply for the duration of the tax increment financing district. Subd. 4. Noncompliance; enforcement. Failure to comply with the requirements of this section is subject to M.S., Section 469.1771. In meeting the statutory criteria the City relies on the following facts and findings: • The District currently consists of one parcel that is expected to be subdivided to three parcels. • The development will consist of 87 units of multi -family rental housing • 20% of the units will be occupied by person with incomes less than 50% of median income 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. Subsection 2-7. Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax increment oftheDistrictmust beindicated within the TIF Plan. Pursuant to M. S., Section 469.176, Subd. Ib., the duration of the District will be 17 years after receipt of the first increment by the City (a total of 18 years of tax increment). The City elects to receive the first tax increment in 2019, which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2036, or when the TIF Plan is satisfied. 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 2016 for taxes payable 2017. Pursuant to M. S., Section 469.177, Subds. I and 2, the County Auditor shall certify in each year (beginning in the payment year 2019) the amount by which the original value has increased or decreased as a result of: City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 2-3 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 ONTC, 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 2017, assuming the request for certification is made before June 30, 2017. 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 ofthe available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2019. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. Project Estimated Tax Capacity upon Completion (PTC) $53,750 Original Estimated Net Tax Capacity (ONTO) $5,444 Estimated Captured Tax Capacity (CTC) $48,306 Original Local Tax Rate 1.55999 Pay 2016 Estimated Annual Tax Increment (CTC x Local Tax Rate) $75,357 Percent Retained by the City 100% 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 pay-as-you-go notes. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 2-4 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 $1,351,549 Interest $135,155 TOTAL $1,486,704 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 $1,137,880. 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. Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the construction of three phases of 29 -unit apartment complexes. 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 or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the 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 Land/Building Acquisition $425,000 Site Improvements/Preparation $175,000 Utilities $240,000 Other Qualifying Improvements $162,725 Administrative Costs (up to 10%) $135,155 PROJECT COST TOTAL $1,137,880 Interest $348,824 PROJECT AND INTEREST COSTS TOTAL $1,486,704 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 costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. The City City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 2-5 may expend funds for qualified housing activities outside of the District boundaries. 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 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 116J993 to 116J995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 2-6 Subsection 2-12. County Road Costs Pursuant to M. S., Section 469.175, Subd. I 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. 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: 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. The District will be certified under the actual Pay 2017 rates, which were unavailable at the time this TIF Plan was prepared. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 2-7 IMPACT ON TAX BASE 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 48,306 0.1330% City of Hutchinson 9,117,687 48,306 0.5298% Hutchinson ISD No. 423 15,241,713 48,306 0.3169% IMPACT ON TAX RATES Pay 2016 Percent Potential Extension Rates of Total CTC Taxes McLeod County 0.510020 32.69% 48,306 24,637 City of Hutchinson 0.739660 47.41% 48,306 35,730 Hutchinson ISD No. 423 0.273720 17.55% 48,306 13,222 Other 0.036590 2.35% 48,306 1,768 Total 1.559990 100.00% 75,357 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. The District will be certified under the actual Pay 2017 rates, which were unavailable at the time this TIF Plan was prepared. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 2-7 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 $1,351,549; (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 and road improvements to access the site will be assessed to the property. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no significant additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. Sanitary sewer (SAC) and water (WAC) connection fees will be contributed by the development but 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 $237,197; (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 $441,821; (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 MS 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. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 2-8 Subsection 2-14. Supporting Documentation Pursuant to M.S., Section 469.175, Subd. I (a), clause 7, the TIF Plan must contain identification and description of studies and analyses used to make 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: • 2012 Maxfield Housing Market Study • 2015 Hutchinson HRA Year End Report • Developer's Total Project Costs Estimate and Pro Forma 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; and Repayments or return of tax increments made to the Authority under agreements for districts for 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 ofthe 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 ofthe 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 a housing district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M. S., Section 469.174, Subd. 11 must be documented. 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 ofthe parcel(s) eliminated from the District equals or exceeds the net tax 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 nettax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 2-9 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, and planning oreconomic development consultants. PursuanttoM.S., Section 469.176, Subd. 3, "Fordistricts for which certification was requested before August 1, 2001, no tax increment shall be used to pay any administrative expenses for a project which exceed ten percent of the total estimated tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the project, whichever is less." For districts for which certification was requested after July 31, 2001, no tax increment may be 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 0.36 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. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 2-10 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 ofthe 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 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 July 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 4620 M.S., Sections 469.152 through 469.165, and/orMS, Sections 469.178. Revenues derived from tax increment from a housing district must be used solely to finance the cost of housing projects as defined in M.S., Sections 469.174, Subd. 11 and 469.1761. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the City may be included in the cost of a housing project. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 2-11 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. 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 ofthe 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. S, 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. 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 ofthe 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. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 2-12 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. 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. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon City staff awareness of the feasibility of developing the project site(s) within the District. 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. Housing District Exceptions to Restriction on Pooling; Five Year Limit. Pursuant to M.S., Section 469.1763, (1) At least 80% of the tax increment derived from the District must be expended on Public Costs incurred within said district, and up to 20% of said tax increments may be spent on public costs incurred outside of the District but within Development District No. 4; provided that in the case of a housing district, a housing project, as defined in M.S., Section 469.174, Subd. 11, is deemed to be an activity in the District, even if the expenditure occurred after five years. Subsection 2-27. Summary The City of Hutchinson is establishing the District to provide an impetus for residential development and provide safe and decent life cycle housing 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. 4-18 2-13 Appendix A Project Description The proposed Tax Increment Financing District will be established in order forthe City to assist in facilitating the financing and construction of up to 87 units of multifamily rental housing. The City's Comprehensive Housing Market Analysis completed in 2012 identified the need for additional market rate and affordable general occupancy rental housing within the City. Highfield Apartments of Hutchinson, LLC has proposed to meet a portion of the housing need identified. The developer anticipates constructing three phases of apartment buildings each consisting of 29 units of a mix of affordable and market rate multifamily rental housing on this proposed site. Construction is expected to commence with the initial phase in September, 2016. Completion of the three phases expected by early 2019. At least 20% of the units for any phase will be reserved for those with incomes below 50% of the area median income. The City plans to utilize Tax Increment from the District to enable private development ofthe site by assisting in financing the housing project. The City expects to utilize one or more pay-as-you-go revenue notes to reimburse the developer's qualifying land acquisition, site improvement, infrastructure and housing project costs associated with the estimated $8.4 million project. Appendix A-1 Appendix B Map of Development District No. 4 and the District Appendix B-1 oil Tax Increment Financing Housing District No 4-18 no BE Development District No. 4 City of Hutchinson McLeod County, Minnesota mill -: Wit. �.•��� _..'t': -_ 6i = ■ Tax Increment — Financing District No. 4-18 Highfield Addition Block 1 ��mvnu■ ■mv�uu■ ■mingrr■ ammiu■ 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 Number Address Owner 23.481.0020* UNASSIGNED CARLTON HOLDINGS I LLC * The parcel listed will be subdivided prior to certification of the District. The final property to be included in the District will consist of three newly created parcels and adjacent rights-of-way. The proposed legal descriptions of the subdivided parcels are as follows: Lot 1, block 1, Highfield Addition Lot 2, block 1, Highfield Addition Lot 3, block 1, Highfield Addition Appendix C-1 Appendix D Estimated Cash Flow for the District Appendix D-1 6/9/2016 DistrictType: District Name/Number: County District #: First Year Construction or Inflation on Value Existing District - Specify No. Years Remaining Inflation Rate - Every Year: Interest Rate: Present Value Date: First Period Ending Tax Year District Certified: Cashflow Assumes First Tax Increment For Development: Years of Tax Increment Assumes Last Year of Tax Increment Fiscal Disparities Election [Outside (A), Inside (B), or NA] Incremental or Total Fiscal Disparities Fiscal Disparities Contribution Ratio Fiscal Disparities Metro -Wide Tax Rate Maximum/Frozen Local Tax Rate: Current Local Tax Rate: (Use lesser of Current or Max.) State-wide Tax Rate (Comm./Ind. only used for total taxes) Market Value Tax Rate (Used for total taxes) EHLERS EE�PERF tM PU9NG !!NhKGE Highfield Apartments (Preliminary Estimate) City of Hutchinson, MN Three Phases - 29 -unit Apartments Housing TIF 4-18 2017 0.00 3.00 1 -Aug -16 1 -Feb -17 Pay 2016 2019 18 2036 155.999% Pay 2016 155.999% Pay 2016 48.6410% Pay 2016 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.) 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 $100,000 0.75% Over $100,000 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 Market Of Value Used Original Original Tax Original After Conversion Area/ # PID Owner Address Market Value Value Value for District Market Value Market Value Class Tax Capacity Conversion Oria. Tax Cap. Phase 653,900 F - --- 435,497 N ote: 1. Base values are based upon review of County website on 5/20/2016. Property will be subdivided. 2/3rds of existing parcel value is assigned to the potential District property. Prepared by Ehlers & Associates, Inc. -Estimates Only N:\Minnsota\Hutchinson\Housing - Economic - Redevelopment\TIF\TIF Districts\TIF 4-18\Hutchinson - TIF for Fiscal Impacts.xls 6/9/2016 EHLERS LEADERS IN PUBLIC:INANCE Highfield Apartments (Preliminary Estimate) City of Hutchinson, MN Three Phases - 29 -unit Apartments Base Value Assumptions - Page 2 N ote: 1. Market values are based upon estimates only provided by the County Assessor's office. Note: 1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted. WHAT IS EXCLUDED FROM MARKET FOR Total Property Taxes 92,165 Current Market Value -Est. 435,497 less State-wide Taxes 0 New Market Value - Est. 4,300,000 less Fiscal Disp. Adj. 0 Difference less Market Value Taxes (8,316) Present Value of Tax Increment less Base Value Taxes (8,492) Difference 2,897, 77 Annual Gross TIF Value likely to occur without Tax Increment is less than:2,891053 Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Hutchinson\Housing - Economic - Redevelopment\TIF\TIF Districts\TIF 4-18\Hutchinson - TIF for Fiscal Impacts.xls TAX CALCULATIONS O a11 r, bual LUUNr-oca Isca a - IVIUr e Tax Disparities Tax Property Disparities Property Value Total Taxes Per New Use Capacity Tax Capacity Capacity Taxes Taxes Taxes Taxes Taxes Sq. Ft./Unit Residential 17,917 0 17,917 27,950 0 0 2,772 30,722 1,059.37 Residential 17,917 0 17,917 27,950 0 0 2,772 30,722 1,059.37 Residential 17,917 0 17,917 27,950 0 0 2,772 30,722 1,059.37 Note: 1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted. WHAT IS EXCLUDED FROM MARKET FOR Total Property Taxes 92,165 Current Market Value -Est. 435,497 less State-wide Taxes 0 New Market Value - Est. 4,300,000 less Fiscal Disp. Adj. 0 Difference less Market Value Taxes (8,316) Present Value of Tax Increment less Base Value Taxes (8,492) Difference 2,897, 77 Annual Gross TIF Value likely to occur without Tax Increment is less than:2,891053 Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Hutchinson\Housing - Economic - Redevelopment\TIF\TIF Districts\TIF 4-18\Hutchinson - TIF for Fiscal Impacts.xls 6/9/2016 EHLERS CCAUEAS IN PUUGC FINANCE Highfield Apartments (Preliminary Estimate) City of Hutchinson, MN Three Phases - 29 -unit Apartments Tax Increment Cashflow - Page 3 % of OTC vrolect Tax Capacity anginal mscal Tax Disparities Capacity Incremental captured Tax Capacity Loca1Annual Tax Rate Gross Tax Increment I semi -Annual Gross Tax Increment state Auditor 0.36% Aamm. at 10% semi -Annual Net Tax Increment semi -Annual I Present Value I'CFtIUU ENDING Yrs. Tax Year Payment Date 02/01/17 08/01/17 02/01/18 08/01/18 - - - 02/01/19 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 30,901 0.5 2019 08/01/19 37,679 (136) (3,754) 33,789 61,346 1 2019 02/01/20 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 91,340 1.5 2020 08/01/20 37,679 (136) (3,754) 33,789 120,892 2 2020 02/01/21 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 150,006 2.5 2021 08/01/21 37,679 (136) (3,754) 33,789 178,691 3 2021 02/01/22 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 206,951 3.5 2022 08/01/22 37,679 (136) (3,754) 33,789 234,794 4 2022 02/01/23 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 262,225 4.5 2023 08/01/23 37,679 (136) (3,754) 33,789 289,251 5 2023 02/01/24 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 315,878 5.5 2024 08/01/24 37,679 (136) (3,754) 33,789 342,111 6 2024 02/01/25 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 367,956 6.5 2025 08/01/25 37,679 (136) (3,754) 33,789 393,420 7 2025 02/01/26 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 418,507 7.5 2026 08/01/26 37,679 (136) (3,754) 33,789 443,223 8 2026 02/01/27 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 467,574 8.5 2027 08/01/27 37,679 (136) (3,754) 33,789 491,566 9 2027 02/01/28 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 515,202 9.5 2028 08/01/28 37,679 (136) (3,754) 33,789 538,490 10 2028 02/01/29 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 561,433 10.5 2029 08/01/29 37,679 (136) (3,754) 33,789 584,037 11 2029 02/01/30 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 606,307 11.5 2030 08/01/30 37,679 (136) (3,754) 33,789 628,248 12 2030 02/01/31 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 649,865 12.5 2031 08/01/31 37,679 (136) (3,754) 33,789 671,162 13 2031 02/01/32 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 692,145 13.5 2032 08/01/32 37,679 (136) (3,754) 33,789 712,817 14 2032 02/01/33 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 733,184 14.5 2033 08/01/33 37,679 (136) (3,754) 33,789 753,250 15 2033 02/01/34 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 773,020 15.5 2034 08/01/34 37,679 (136) (3,754) 33,789 792,497 16 2034 02/01/35 100% 53,750 (5,444) 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 811,686 16.5 2035 08/01/35 37,679 (136) (3,754) 33,789 830,592 17 2035 02/01/36 100% 53,750 (5,444) - 48,306 155.999% 75,357 37,679 (136) (3,754) 33,789 849,219 17.5 2036 08/01/36 37,679 (136) (3,754) 33,789 867,570 18 2036 02/01/37 Total 1,356,432 (4,883) (135,155) 1,216,394 Present Value From 08/01/2016 Present Value Rate 3.00% 967,449 (3,483) (96,397) 867,570 Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Hutchinson\Housing - Economic - Redevelopment\TIF\TIF Districts\TIF 4-18\Hutchinson - TIF for Fiscal Impacts.xls Appendix E Housing Qualifications for the District INCOME RESTRICTIONS - ADJUSTED FOR FAMILY SIZE (HOUSING DISTRICT) - MCLEOD COUNTY MCLEOD COUNTY MEDIAN INCOME: $69,800 No. of Persons 50% of Median Income 60% of Median Income 1 -person $24,650 $29,580 2 -person $28,150 $33,780 3 -person $31,650 $37,980 4 -person $35,150 $42,180 Source: Department of Housing and Urban Development and Minnesota Housing Finance Agency The two options for income limits on a standard housing district are 20% of the units at 50% of median income or 40% of the units at 60% of median income. There are no rent restrictions for a housing district. ***PLEASE NOTE: THESE NUMBERS ARE ADJUSTED ANNUALLY. ALL INCOME FIGURES REPORTED ON THIS PAGE ARE FOR 2016. Appendix E-1 Appendix F Findings for the District The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 4-18, as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: Finding that Tax Increment Financing District No. 4-18 is a housing district as defined in M.S., Section 469.174, Subd. 11. TIF District No. 4-18 currently consists of one parcel which will be subdivided prior to certification of the District. The development will consist of up to 87 units of multifamily rental housing. All or a portion of which will receive tax increment assistance and will meet income restrictions described in M.S., Section 469.1761. At least 20 percent of the units/homes receiving assistance will have incomes at or below 50 percent of statewide median income. Appendix E of the TIF Plan contains background for the above finding. 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. This finding is supported by the fact that the development proposed in this plan is a housing district that meets the City's objectives for development and redevelopment. Due to the cost of building affordable new housing in the City and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. Rents for the Hutchinson area do not support high enough market rents to pay for all costs of acquisition, construction, site and public improvement, and ongoing operating costs of the project. The necessity of public assistance is true for most affordable rental housing developments in Minnesota. The developer was asked for and provided its project budget and financial projections that demonstrate the need fortax increment assistance as described in this Plan (documents on file in City Hall). City staff and its financial advisor have reviewed the developer's financing assumptions and have recommended to the Council that the assistance is necessary to provide adequate returns to attract private investment in the proposed housing project. Based upon this evidence, it is determined that the development would not go forward without public assistance. 3. Finding that the TIF Plan for Tax Increment Financing District No. 4-18 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 TIF Plan for Tax Increment Financing District No. 4-18 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Development District No. 4 by private enterprise. Through the implementation of the TIF Plan, the City will provide an impetus for residential development, which is desirable or necessary for meeting housing needs of people of a variety of incomes, a need to increase life -cycle housing within the City, and support increases in population. Appendix F-1 DEVELOPMENT AGREEMENT IN DEVELOPMENT DISTRICT NO. 4 AND TAX INCREMENT FINANCING DISTRICT NO. 4-18 HUTCHINSON, MCLEOD COUNTY, MINNESOTA between CITY OF HUTCHINSON, MINNESOTA and HIGHFIELD APARTMENTS OF HUTCHINSON, LLC for the Highfield Apartments Dated as of 2016 This Document Was Drafted By: DORSEY & WHITNEY LLP Suite 1500 50 South Sixth Street Minneapolis, Minnesota 55402 TABLE OF CONTENTS ARTICLE 1 DEFINITIONS............................................................................................................2 1.01. Definitions................................................................................................................2 ARTICLE 2 REPRESENTATIONS AND WARRANTIES...........................................................4 2.01. City Representations................................................................................................4 2.02. Developer Representations......................................................................................4 2.03. Use, Ownership of Development Property; Restrictions; Use of 3.03. DevelopmentProperty.............................................................................................6 2.04. Ownership of Development Property......................................................................6 2.05. Declaration of Restrictive Covenants......................................................................6 2.06. Damage or Destruction............................................................................................6 2.07. Relocation Costs......................................................................................................6 ARTICLE 3 CONSTRUCTION OF PROJECT..............................................................................6 3.01. Construction Plans...................................................................................................6 3.02. Undertaking of Minimum Improvements................................................................7 3.03. Certificate of Occupancy; Certificate of Completion..............................................7 3.04. Progress Reports......................................................................................................8 3.05. Access to Development Property.............................................................................8 ARTICLE 4 DEFENSE OF CLAIMS; INSURANCE....................................................................8 4.01. Defense of Claims....................................................................................................8 4.02. Insurance..................................................................................................................9 ARTICLE 5 PUBLIC ASSISTANCE...........................................................................................10 5.01. Development Costs................................................................................................10 5.02. Reimbursement for Qualified Costs.......................................................................10 5.03. Conditions Precedent to Provision of Public Assistance.......................................12 5.04. Satisfaction of Conditions Precedent.....................................................................12 5.05. Notice of Default....................................................................................................12 ARTICLE 6 PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER ..........................13 6.01. Transfer of Property and Assignment....................................................................13 6.02. Termination of Limitations on Transfer................................................................13 ARTICLE 7 EVENT OF DEFAULT; FEES.................................................................................13 7.01. Events of Default...................................................................................................13 7.02. Remedies on Default..............................................................................................14 7.03. No Remedy Exclusive............................................................................................15 I 7.04. Waivers..................................................................................................................15 7.05. Agreement to Pay Attorneys' Fees........................................................................15 ARTICLE 8 GENERAL PROVISIONS.......................................................................................15 8.01. Conflict of Interests; City Representatives Not Individually Liable .....................15 8.02. Equal Employment Opportunity............................................................................15 8.03. Restrictions on Use................................................................................................15 8.04. Titles of Articles and Sections...............................................................................16 8.05. Business Subsidies Act..........................................................................................16 8.06. Term of Agreement................................................................................................16 8.07. Provisions Surviving Termination.........................................................................16 ARTICLE 9 ADMINISTRATIVE PROVISIONS........................................................................16 9.01. Notices and Demands............................................................................................16 9.02. Counterparts...........................................................................................................17 9.03. Binding Effect........................................................................................................17 9.04. Severability............................................................................................................17 9.05. Amendments, Changes and Modifications............................................................17 9.06. Further Assurances and Corrective Instruments....................................................17 9.07. Captions.................................................................................................................17 9.08. Applicable Law......................................................................................................17 EXHIBIT A DEVELOPMENT PROPERTY EXHIBIT B COVENANTS AND RESTRICTIONS EXHIBIT C PROJECT DESCRIPTION; PROJECT COSTS EXHIBIT D PROJECTED PAYMENT SCHEDULE EXHIBIT E CERTIFICATE OF COMPLETION EXHIBIT F FORM OF LIMITED TAX INCREMENT REVENUE NOTE 11 DEVELOPMENT AGREEMENT THIS Development Agreement (this "Agreement"), made and entered into as of this day of , 2016, between the CITY OF HUTCHINSON, a municipal corporation and political subdivision of the State of Minnesota (the "City"), and Highfield Apartments of Hutchinson, LLC, a limited liability company of the State of Minnesota (the "Developer"). WITNESSETH: WHEREAS, the City has designated a development district in the City denominated Development District No. 4 (the "Development District") and has approved a modification to the Development Program for the Development District (the "Modification") pursuant to and in accordance with Minnesota Statutes ("M.S."), Sections 469.124 through 469.133, as amended; and WHEREAS, the City adopted a resolution establishing Tax Increment Financing District No. 4-18, a "housing district" pursuant to M.S., Section 469.174, Subdivision 11 (the "TIF District") and approved a Tax Increment Financing Plan therefore (the "TIF Plan"); and WHEREAS, in order to achieve the objectives of the Development Program, the Modification, and the TIF Plan, the City intends to provide assistance to the Developer through tax increment financing, as described in the TIF Act, to finance certain costs of the development and construction of three phases of 29 units (87 units total) of market rate multifamily housing (the "Project"); WHEREAS, the City has determined that, in order to accomplish the purposes specified in and to carry out the Development Program, the Modification, and the TIF Plan, it is necessary and desirable for the City to reimburse the Developer for certain costs to be incurred and paid by the Developer in connection with the Project; and WHEREAS, the City will apply tax increment revenues generated from the TIF District to (i) pay or reimburse the City for administrative expenses relating to the TIF District to the extent permitted by the TIF Act and, (ii) to reimburse the Developer, with interest, for certain costs incurred in connection with the construction of the Minimum Improvements associated with the Project; and WHEREAS, the City believes that the development activities associated with the Project pursuant to this Agreement are in the best interests of the City and benefits the health, safety, morals and welfare of its residents, and complies with the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the foregoing premises and the mutual obligations set forth in this Agreement, the parties hereto hereby agree as follows: ARTICLE 1 Definitions 1.01. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minnesota Statutes, Sections 469.124 through 469.133. "Agreement" means this Agreement, as the same may be from time to time modified, amended or supplemented. "Available Tax Increment" means 90 percent (90%) of the tax increment revenues generated by Tax Increment Financing District No. 4-18 as computed pursuant to Minnesota Statutes, Section 469.177, or its successor. "Business Subsidies Act" means Minnesota Statutes, Sections 116J.993 through 116J.995. "Certificate of Completion" means a certification in the form attached hereto as Exhibit E, to be provided to the Developer pursuant to this Agreement. "City" means the City of Hutchinson, Minnesota. "City Council" means the City Council of the City of Hutchinson, Minnesota. "Construction Plans" means the plans, specifications, drawings and related documents for the construction work to be performed by the Developer on the Development Property. "County" means the County of McLeod, Minnesota. "Default Notice" means written notice from the City to the Developer setting forth the Event of Default and the action required to remedy the same. "Developer" means Highfield Apartments of Hutchinson, LLC, and its successors and assigns. "Development District" means Development District No. 4 designated pursuant to Minnesota Statutes, Sections 469.124 through 469.133. "Development Program" means the Development Program developed for Development District No. 4. "Development Property" means the real property described in Exhibit A attached hereto. "Event of Default" means as any of the events set forth in Section 7.01 hereof. 2 "Minimum Improvements" means the minimum improvements to be undertaken by the Developer as a part of the Project on the Development Property all as further described in Exhibit C attached hereto. "Modification" means the Modification to the Development Program for Development District No. 4. "Mortgage" means any mortgage made by the Developer which covers, in whole or in part, the Development Property. "Mortgagee" means the owner or holder of a Mortgage. "McLeod County" means the County of McLeod, Minnesota, a political subdivision of the State of Minnesota. "Phase" means the construction and development of any of the three phases of 29 units of market rate multifamily housing. "Project" means the construction and development of three phases of 29 units (87 units total) of market rate multifamily housing with at least 20% of the units for any phase reserved for those with incomes below 50% of the area median income. "Project Costs" means certain costs incurred and to be incurred by the Developer during the Project, the estimated types and amounts of which are shown on Exhibit C to this Agreement. "Public Assistance" means the Available Tax Increment to be paid under Section 5.02 hereof. "Qualified Costs" means costs incurred by Developer in connection with construction of the Minimum Improvements that are reimbursable from tax increment in a total amount not to exceed $834,395, which are shown on Exhibit C to this Agreement. "Restrictions" means the easements, covenants, conditions and restrictions set forth in Exhibit B attached hereto. "Section" means a Section of this Agreement, unless used in reference to Minnesota Statutes. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794 "TIF District" means Tax Increment Financing District No. 4-18 established by the City. "TIF Plan" means the Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 approved by the City. 3 "Unavoidable Delay" means a failure or delay in a party's performance of its obligations under this Agreement, or during any cure period specified in this Agreement which does not entail the mere payment of money, not within the party's reasonable control, including but not limited to acts of God, governmental agencies, the other party, strikes, labor disputes (except disputes which could be resolved by using union labor), fire or other casualty, or lack of materials; provided that within ten (10) days after a party impaired by the delay has knowledge of the delay it shall give the other party notice of the delay and the estimated length of the delay, and shall give the other party notice of the actual length of the delay within ten (10) days after the cause of the delay has ceased to exist. The parties shall pursue with reasonable diligence the avoidance and removal of any such delay. Unavoidable Delay shall not extend performance of any obligation unless the notices required in this definition are given as herein required. ARTICLE 2 Representations and Warranties 2.01. City Representations. The City makes the following representations to the Developer (a) The City is a municipal corporation duly organized and existing under the laws of Minnesota. Under the provisions of the Act, the City has the power to enter into this Agreement and carry out its obligations hereunder. (b) The City has designated the Development District and has adopted the Development Program and Modification in accordance with the provisions of the Act and has created the TIF District and adopted the TIF Plan in accordance with the provisions of the TIF Act. 2.02. Developer Representations. The Developer represents and warrants that (a) The Developer is a Minnesota limited liability company, has power to enter into this Agreement and has duly authorized, by all necessary corporate action, the execution and delivery of this Agreement. (b) Developer will, to the extent required by this Agreement, construct or cause the construction of the Minimum Improvements in accordance with the terms of this Agreement, the TIF Plan and all local, state and federal laws and regulations. (c) It is anticipated that the Project will be constructed so that when completed the Development Property will have a market value as determined pursuant to Minnesota Statues, Section 273.11, of at least $4,300,000. (d) At such time or times as may be required by law, the Developer will have complied with all local, state and federal environmental laws and regulations applicable to the Minimum Improvements, and will have obtained any and all necessary environmental reviews, licenses and clearances. The Developer has received no notice or M communication from any local, state or federal official that the activities of the Developer or the City with respect to the Development Property may be or will be in violation of any environmental law or regulation. The Developer is aware of no facts the existence of which would cause it to be in violation of any local, state or federal environmental law, regulation or review procedure with respect to the Development Property. (e) Neither the execution or delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented by, limited by, conflicts with, or results in a breach of, any restriction, agreement or instrument to which the Developer is now a party or by which the Developer is bound. (f) The Developer has no knowledge or information that any member of the City Council or any other officer of the City has any direct or indirect financial interest in the Developer, the Development Property or the Project. (g) The Developer recognizes that the City intends that the TIF District be an "housing district" under the TIF Act. As owner in fee simple of the Development Property, the Developer represents to the City that the Development Property and the Minimum Improvements will be operated in a manner such that the TIF District will qualify and continue to qualify as a "housing district" under the TIF Act until the later of (i) the date which is fifteen (15) years after the date on which 50 percent of the residential units in the Project are occupied, or (ii) the date the TIF district is decertified. (h) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all local, state and federal laws and regulations which must be obtained or met in connection with the Minimum Improvements. Without limitation to the foregoing, the Developer will request and seek to obtain from the City all necessary variances, conditional use permits and zoning changes. (i) The Developer would not undertake the Project without the financial assistance to be provided by the City pursuant to this Agreement and the TIF Plan. 0) Apart from the assistance to be provided under this Agreement, the Developer shall pay all standard charges and fees due with respect to real estate developments and allocable to the Development Property under City ordinances and the City Code, including but not limited to special assessments for local improvements, sewer and water use charges, building permit fees, plat fees, inspection fees, storm water fees and the like used against the Development Property. (k) The financial assistance received by the Developer will be used to create housing. (1) The Developer has submitted to the City a $4,000 deposit to pay for the reasonable out-of-pocket financial consultant administrative review of the TIF application. E (m) On or before the date hereof, Developer will make a deposit of $16,500 to the City for the City's reasonable out-of-pocket legal, financial consultant, TIF District Establishment, and administrative fees associated with the development. 2.03. Use, Ownership of Development Property: Restrictions: Use of Development Property. The Developer's use of the Development Property shall be subject to and in compliance with all of the conditions, covenants, restrictions and limitations imposed by this Agreement, the Restrictions and all applicable laws, ordinances and regulations. 2.04. Ownership of Development Property. The Developer hereby represents and warrants that the Developer is the owner in fee simple of the Development Property and that there are no liens, defects or other encumbrances upon title to the Development Property that would hinder the development of the Development Property by the Developer as contemplated by this Agreement. 2.05. Declaration of Restrictive Covenants. The Developer shall prepare, execute, and record on the title to the Development Property a Declaration of Restrictive Covenants, in form approved by the City, which includes the Restrictions set forth in Exhibit B. If the Developer determines that operation of the Development Property and the Minimum Improvements would endanger the financial viability thereof, the Developer may request the City Council to consent to the amendment, modification or termination of any of the restrictions in any respect. The City is under no obligation to amend, modify or terminate any of the restrictions and may, in its sole and absolute discretion, refuse to do so. 2.06. Damage or Destruction. Upon any damage or destruction of the Project, or any portion thereof, by fire or other casualty, the Developer shall within one hundred twenty (120) days after such damage or destruction, commence the process required to repair, reconstruct and restore the damaged or destroyed Project, or portion thereof, to substantially the same condition or utility value as existed prior to the event causing such damage or destruction and shall diligently pursue such repair, reconstruction and restoration. 2.07. Relocation Costs. The Developer shall pay all relocation costs or expenses required under federal or state land to be paid to any owner or occupant of the Development Property as a result of the Project, and shall indemnify and hold harmless the City, its governing body members, officers, and agents including the independent contractors, consultants, and legal counsel, servants and employees thereof from any such relocation costs and expenses in accordance with the provisions of Section 4.01. ARTICLE 3 Construction of Proi ect 3.01. Construction Plans. Prior to commencing construction of the Minimum Improvements for a Phase, the Developer shall make available to the City for review Construction Plans for the Phase. The Construction Plans shall provide for construction of the Phase in conformity with the Development Program, the Modification, the TIF Plan, this Agreement, and all applicable state and local laws and regulations. The City shall approve the Construction Plans in writing if, in the reasonable discretion of the City, the Construction Plans: 0 (a) conform to the Development Program, the Modification, the TIF Plan, this Agreement, and to any subsequent amendments thereto approved by the City; (b) conform to all applicable federal, state and local laws, ordinances, rules and regulations; (c) are adequate to provide for construction of the Minimum Improvements; and (d) no Event of Default has occurred. No approval by the City shall relieve the Developer of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to properly construct the Project. No approval by the City shall constitute a waiver of an Event of Default. Any disapproval of the Construction Plans shall set forth the reasons therefore, and shall be made within thirty (30) days after the date of their receipt by the City. If the City rejects the Construction Plans, in whole or in part, the Developer shall submit new or corrected Construction Plans within thirty (30) days after written notification to the Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the City. 3.02. Undertaking of Minimum Improvements. (a) Subject to Unavoidable Delays, Developer shall commence the first Phase of the Project by September 15, 2016, and cause the Project to be completed in accordance with the terms of this Development Agreement by January 1, 2019. (b) Developer is required to commence and complete the first Phase of the Project and is required to complete any subsequent Phase that has been commenced. However, nothing in this Agreement will require the Developer to commence any Phase beyond the first Phase. (c) All work with respect to the Minimum Improvements shall be in substantial conformity with the Construction Plans approved by the City. (d) The Developer shall not interfere with, or construct any improvements over, any public street or utility easement without the prior written approval of the City. All connections to public utility lines and facilities shall be subject to approval of the City and any private utility company involved. Except for public improvements, which are undertaken by the City or other governmental body and assessed against benefited properties, all street and utility installations, relocations, alterations and restorations shall be at the Developer's expense and without expense to the City. The Developer, at its own expense, shall replace any public facilities or utilities damaged during the Project by the Developer or its agents or by others acting on behalf of or under their direction or control of the Developer. 3.03. Certificate of Occupancy; Certificate of Completion. (a) Upon the Developer's request following the City's issuance of a certificate of occupancy with respect to any Phase, the City will furnish the Developer with a Certificate of Completion for the Phase in substantially the form attached hereto as Exhibit E as conclusive evidence of satisfaction and termination of the agreements and covenants of this Agreement with respect to the obligations of the Developer to complete 7 the Phase. The furnishing by the City of such Certificate of Completion shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any Mortgagee. (b) If the City shall refuse or fail to provide a Certificate of Completion following the Developer's request, the City shall, within ten (10) days after the Developer's request, provide the Developer with a written statement specifying in what respects the Developer has failed to complete the Phase in accordance with this Development Agreement, or is otherwise in default, and what measures or acts will be necessary, in the opinion of the City, for Developer to obtain the Certificate of Completion. 3.04. Progress Reports. Until the Certificate of Completion is issued for the final Phase, the Developer shall make, in such detail as may reasonably be required by the City, and forward to the City, on a monthly basis, a written report as to the actual progress of construction. 3.05. Access to Development Property. The Developer agrees to permit the City and any of its officers, employees or agents access to the Development Property at all reasonable times for the purpose of inspection of all work being performed in connection with the Project; provided, however, that the City shall have no obligation to inspect such work. 3.06. Modification; Subordination. The City agrees to subordinate its rights under this Agreement to the holder of any Mortgage securing construction or permanent financing, in accordance with the terms of a subordination agreement in a form reasonably acceptable to the City; provided, however, that the holder of any such Mortgage shall acknowledge that the Developer may not assign the Note (as defined in Section 5.02), except as provided in Section 6.01. ARTICLE 4 Defense of Claims; Insurance 4.01. Defense of Claims. (a) The Developer shall indemnify and hold harmless the City, its governing body members, officers, and agents including the independent contractors, consultants, and legal counsel, servants and employees thereof (hereinafter, for the purposes of this Section, collectively the "Indemnified Parties") for any expenses (including attorneys' fees), loss, damage to property, or death of any person occurring at or about, or resulting from any defect in, the Project; provided, however, the Developer shall not be required to indemnify any Indemnified Party for any claims or proceedings arising from any negligent or unlawful acts or omissions of such Indemnified Party. Promptly after receipt by the City of notice of the commencement of any action in respect of which indemnity may be sought against the Developer under this Section 4.01, such person will notify the Developer in writing of the commencement thereof, and, subject to the provisions hereinafter stated, the Developer shall assume the defense of such action (including the employment of counsel, who shall be counsel reasonably satisfactory to the City) and the payment of expenses insofar as such action shall relate to any alleged liability in respect of which indemnity may be sought against the Developer. The City shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall not be at the expense of the Developer unless the employment of such counsel has been specifically authorized by the Developer. Notwithstanding the foregoing, if the City has been advised by independent counsel that there may be one or more legal defenses available to it which are different from or in addition to those available to the Developer, the Developer shall not be entitled to assume the defense of such action on behalf of the City, but the Developer shall be responsible for the reasonable fees, costs and expenses (including the employment of counsel) of the City in conducting its defense. The Developer shall not be liable to indemnify any person for any settlement of any such action effected without the Developer's consent. The omission to notify the Developer as herein provided will not relieve the Developer from any liability which they may have to any Indemnified Party pursuant hereto, otherwise than under this section. (b) The Developer agrees to protect and defend the Indemnified Parties, and further agrees to hold the aforesaid harmless, from any claim, demand, suit, action or other proceeding whatsoever by any person or entity arising or purportedly arising from the actions or inactions of the Developer (or other persons acting on its behalf or under its direction or control) under this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Project; provided, that this indemnification shall not apply to the warranties made or obligations undertaken by the City in this Agreement or to any actions undertaken by the City which are not contemplated by this Agreement but shall, in any event, apply to any pecuniary loss or penalty (including interest thereon from the date the loss is incurred or penalty is paid by the City at a rate equal to the Prime Rate) as a result of the Project, as constructed and operated by the Developer, causing the TIF District to cease to qualify as a "housing district" under the TIF Act or to violate limitations as to the use of the revenues therefrom as set forth in the TIF Act. (c) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City and not of any governing body member, officer, agent, servant or employee of the City, as the case may be. 4.02. Insurance. (a) The Developer shall keep and maintain the Development Property and Minimum Improvements at all times insured against such risks and in such amounts, with such deductible provisions, as are customary in connection with facilities of the type and size comparable to the Minimum Improvements, and the Developer shall carry and maintain, or cause to be carried and maintained, and pay or cause to be paid timely the premiums for direct damage insurance covering all risks of loss, including, but not limited to, the following: 1. fire 2. extended coverage perils 3. vandalism and malicious mischief 0 4. boiler explosion (but only if steam boilers are present) 5. collapse on a replacement cost basis in an amount equivalent to the full insurable value thereof. ("Full insurable value" shall include the actual replacement cost of the Minimum Improvements, exclusive of foundations and footings, without deduction for architectural, engineering, legal or administrative fees or for depreciation.) Insurance in effect with respect to any portion of the Minimum Improvements to be rehabilitated or renovated as a part of the Project prior to the issuance by the City of a Certificate of Completion under Section 3.03 hereof with respect thereto shall be maintained on an "all-risk" builder's risk basis during the course of construction. The policies required by this Section 4.02 shall be subject to a no coinsurance clause or contain an agreed amount clause, and may contain a deductibility provision not exceeding $25,000. (b) Subject to the terms of any mortgage relating to the Development Property, policies of insurance required by this Section 4.02 shall insure and be payable to the Developer, and shall provide for release of insurance proceeds to the Developer for restoration of loss. The City shall be furnished certificates showing the existence of such insurance. In case of loss, the Developer is hereby authorized to adjust the loss and execute proof thereof in the name of all parties in interest. The Developer shall annually file with the City a schedule describing all such policies in force, including the types of insurance, names of insurers, policy numbers, effective dates, terms of duration or any other information the City deems pertinent. Such list shall be accompanied by a certificate executed by the Developer stating that, to the best of the knowledge of the Developer, insurance on the Minimum Improvements then in force complies with this Section 4.02. ARTICLE 5 Public Assistance 5.01. Development Costs. The Developer has agreed to and shall be responsible to pay all of its respective costs of the Project, as herein provided. However, the City, in order to encourage the Developer to proceed with the construction of the Minimum Improvements, and to assist the Developer in paying the costs thereof, is willing to provide the Public Assistance and thereby reimburse the Developer for a portion of the project costs, as permitted by the TIF Act and in accordance with the TIF Plan, that will be incurred by the Developer to construct the Minimum Improvements. 5.02. Reimbursement for Qualified Costs. The City agrees to reimburse the Developer, using Available Tax Increment on a pay -as -you -go -basis, for Qualified Costs of the Project. The City shall, upon completion of the Minimum Improvements for each Phase and the issuance of a the Certificate of Completion therefor, make reimbursement payments pursuant to a limited revenue tax increment note (the "Note") for that Phase, the form of which is attached hereto as Exhibit F, with said payments of principal and interest to be made on the dates (the "Payment Dates") and in the amounts set for 10 such payments in Exhibit D hereto, which is incorporated herein, but subject to the following terms and conditions: (a) The principal amount of any one Note for any Phase will not exceed $296,000. (b) The sum of the principal amounts of all the Notes issued for each Phase will not exceed $834,395. (c) No payments shall be made by the City to the Developer unless and until the Developer has provided written evidence reasonably satisfactory to the City that Qualified Costs in the amount to be reimbursed from the Available Tax Increment have been incurred for the Phase and paid by the Developer and the Certificate of Completion has been issued as contemplated in Section 3.03 hereof. (d) The City shall be obligated to make the payments to the Developer required pursuant to this Section 5.02 only from and to the extent of the Available Tax Increment actually received from the TIF District for any tax year, and such payments shall never be considered to be a general obligation or indebtedness of the City. (e) The City will retain 10% of the Tax Increment generated for administrative costs and apply the retained Tax Increment first to pay any administrative expenses relating to the Development Property to the extent permitted by the Tax Increment Act and to the extent that such expenses have not been paid or reimbursed to the City by the Developer. Any of the retained Tax Increment remaining after the payment of any administrative expenses then due and owing (the "Available Tax Increment") shall be paid to the Developer for reimbursement of the Qualified Costs plus interest on the Payment Dates. (f) Upon thirty (30) days' written notice to the Developer, the City may prepay all or a portion of the outstanding principal balance due to the Developer pursuant to this Section 5.02 without penalty, on any date at a prepayment price equal to the outstanding principal balance to be prepaid plus accrued interest to the prepayment date. (g) The City shall not be obligated to make any payments hereunder subsequent to the termination of this Agreement as provided in Section 8.06 hereof, and any amounts remaining unpaid as of such date (other than by reason of failure of the City to comply with the terms of this Agreement) shall be considered forgiven by the Developer and shall cease to be owing. (h) The Developer may assign the payments to be made to Developer under this Section 5.02 to secure financing incurred by the Developer to pay costs of the Project. 11 5.03. Conditions Precedent to Provision of Public Assistance. Upon payment by the Developer of Qualified Costs for each Phase, which are eligible to be reimbursed pursuant to the TIF Act, the Developer will deliver to the City an instrument executed by the Developer specifying (i) the amount and nature of the Qualified Costs of the Minimum Improvements for the Phase to be reimbursed, and (ii) certifying that such costs have been paid to third parties unrelated to the Developer or if any costs have been paid to third parties related to the Developer, that such costs do not exceed the reasonable and customary costs of services, labor or materials of comparable quality, dependability, availability and other pertinent criteria and that such costs have not previously been contained in an instrument furnished to the City pursuant to this Section 5.02. Together with such instrument, the Developer shall deliver to the City evidence reasonably satisfactory to the City of the payment by the Developer of such costs to be reimbursed. Thereafter, the City will provide to the Developer reimbursement for the Phase, constituting a portion of the Assistance described in Section 5.01 hereof, paid up to the maximum amount then due and payable, in accordance with Section 5.02. 5.04. Satisfaction of Conditions Precedent. Notwithstanding anything to the contrary contained herein, the City's obligation to reimburse the Developer for Qualified Costs shall be subject to satisfaction, or waiver in writing by the City, of all of the following conditions precedent: (i) the conditions precedent in this Section 5.03 hereof have been satisfied; (ii) the Developer shall have cured any title defects with respect to the Development Property; (iii) the Developer shall not be in default under the terms of this Agreement beyond any applicable cure period; (iv) the Developer shall have executed and recorded on the title to the Development Property, the Declaration of Restrictive Covenants required by Section 2.05 hereof, (v) the Developer shall have closed on financing sufficient to pay all costs to be incurred in connection with the applicable Phase of the Project. In the event that all of the above conditions required to be satisfied as provided in this Section 5.03 have not been satisfied by January 1, 2019, either the City or the Developer may terminate this Agreement. Upon such termination, the provisions of this Agreement relating to the Minimum Improvements shall terminate and, except as provided in Article 8, neither the Developer nor the City shall have any further liability or obligation to the other hereunder. 5.05. Notice of Default. Whenever the City shall deliver any notice or demand to the Developer with respect to any breach or default by the Developer in its obligations or covenants under this Agreement, the City shall at the same time forward a copy of such notice or demand to each holder of any permitted mortgage, lien or other similar encumbrance at the last address of such holder shown in the records of the City. Each such holder shall have the right, at its option, 12 to cure or remedy such breach or default and to add the cost thereof to the mortgage debt and the lien of its mortgage; provided that if the breach or default is with respect to construction of the Project, nothing contained in this Agreement shall be deemed to permit or authorize such holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the construction or completion of the Project without first having expressly assumed the obligation to the City, by written agreement satisfactory to the City, to complete the construction the Project in accordance with the plans and specifications therefor and this Development Agreement. Any such holder who shall properly complete the construction of the Project shall be entitled, upon written request made to the City, to a certification by the City to such effect in the manner provided in Section 3.03. ARTICLE 6 Prohibitions Against Assignment and Transfer 6.01. Transfer of Property and Assignment. The Developer has not made and will not make, or suffer to be made, any total or partial sale, assignment, conveyance, lease (other than leases of space in the Minimum Improvements constructed as a part of the Project or a Mortgage securing financing for the Project), or other transfer, with respect to this Agreement (other than any assignment of the payments to be made under Section 5.02 hereof to secure financing incurred by the Developer to pay costs of the Project) or the Development Property or any part thereof or any interest therein, or any contract or agreement to do any of the same. 6.02. Termination of Limitations on Transfer. The provisions of Section 6.01 as to the sale, assignment, conveyance, lease of each Phase of the Project or the Development Property (but not with respect to any transfer or assignment of this Agreement) shall terminate for each Phase at such time as the Certificate of Completion for such Phase shall have been furnished in accordance with Section 3.03 hereof. ARTICLE 7 Event of Default; Fees 7.01. Events of Default. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any one or more of the following events which occurs and continues for more than thirty (30) days after written notice by the defaulting party of such default (and the term "default" shall mean any event which would with the passage of time or giving of notice, or both, be an "Event of Default" hereunder): (a) Failure of the Developer to construct or reconstruct the Minimum Improvements as required hereunder. (b) Failure of the Developer to furnish the Construction Plans as required hereunder. (c) Failure of the Developer to pay to the City any amounts required to be paid by the Developer hereunder. 13 (d) Failure of the Developer or the City to observe and perform any other covenant, condition, obligation or agreement on its part to be observed or performed hereunder. (e) Failure of the Developer to pay any taxes on the Development Property as they become due. (f) Filing of any voluntary petition in bankruptcy or similar proceedings by the Developer; general assignment for the benefit of creditors made by the Developer or admission in writing by the Developer of inability to pay its debts generally as they become due; or filing of any involuntary petition in bankruptcy or similar proceedings against the Developer which are not dismissed or stayed within sixty (60) days. 7.02. Remedies on Default. In the event the City desires to exercise any of its rights or remedies as provided herein or otherwise available to the City at law or in equity, the City shall first provide written notice to Developer setting forth with specific particularity the Event of Default and the action required to cure or remedy the same (the "Default Notice"). Developer shall have thirty (30) days from receipt of a Default Notice to cure or remedy the Event of Default specified in the Default Notice, or such longer period as may be reasonably required to complete the cure as soon as reasonably possible under the circumstances. If, following Developer's receipt of a Default Notice, Developer does not cure or remedy the Event of Default therein specified within the time provided above, the City may take any one or more of the following actions at any time prior to Developer's curing or remedying the Event of Default: (a) Suspend its performance under this Development Agreement until it receives assurances from Developer, deemed adequate by the City, that Developer will cure its default and continue its performance under this Agreement. (b) Terminate all rights of Developer under this Agreement. (c) Withhold the Certificate of Completion. (d) Take whatever action at law or in equity may appear necessary or desirable to the City to enforce performance and observance of any obligation, agreement, or covenant of Developer under this Agreement. In the event the City should fail to observe or perform any covenant, agreement or obligation of the City on its part to be observed and performed under this Development Agreement, Developer may take any one or more of the following actions: (a) Suspend its performance under this Development Agreement until it receives assurances from the City deemed adequate by Developer, that the City will cure its default and continue its performance under this Development Agreement. (b) Terminate all rights of the City under this Agreement. 14 (c) Take whatever action at law or in equity may appear necessary or desirable to Developer to enforce performance and observance of any obligation, agreement, or covenant of the City under this Agreement. 7.03. No Remedy Exclusive. No remedy herein conferred upon or reserved to the City or to the Developer is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the City or Developer to exercise any remedy reserved to them, it shall not be necessary to give notice, other than such notice as may be required under this Agreement. 7.04. Waivers. All waivers by any party to this Agreement shall be in writing. If any provision of this Agreement is breached by any party and thereafter waived by another party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. 7.05. Agreement to Pay Attorneys' Fees. Whenever any Event of Default occurs and the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of the Developer herein contained, the Developer agrees that it shall, on demand therefor, pay to the City the reasonable fees of such attorneys and such other expenses so incurred by the City. ARTICLE 8 General Provisions 8.01. Conflict of Interests, City Representatives Not Individually Liable. No member, official, employee, or consultant or employee of a consultant of the City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, consultant or the consultant's employees or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is directly or indirectly interested. No member, official, consultant or consultant's employee, or employee of the City shall be personally liable to Developer, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to Developer or successors or on any obligations under the terms of this Agreement. 8.02. Equal Employment Opportunity. Developer, for itself and its successors and assigns, agrees that during the construction of the Project it will comply with any applicable affirmative action and nondiscrimination laws or regulations. 8.03. Restrictions on Use. Developer agrees for itself, and its successors and assigns, and every successor in interest to the Development Property, or any part thereof, that Developer, and such successors and assigns, shall devote the Development Property to, and only to and in 15 accordance with, the uses specified in the Development Program, this Agreement and other agreements entered into between the Developer and the City, and shall not discriminate upon the basis of race, color, creed, religion, national origin, sex, marital status, disability, status with regard to public assistance, sexual orientation, and familial status in the sale, lease, or rental or in the use or occupancy of the Development Property or any improvements erected or to be erected thereon, or any part thereof. 8.04. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. 8.05. Business Subsidies Act. Based on the representations of the Developer contained in Section 2.02(k) of this Agreement, the assistance being provided by the City to the Developer under this Agreement is not a business subsidy under the Business Subsidies Act and subsidy agreement as described in Minnesota Statutes, Section 116J.994, Subd. 3 and Subd. 4 is not being entered by the City and Developer. 8.06. Term of Agreement. This Agreement shall terminate upon the earlier to occur of (i) reimbursement of the Developer's costs by the City as provided in Section 5.02 hereof, (ii) the decertification of the TIF District; or (iii) the City and the Developer agree in writing to terminate this Agreement; it being expressly agreed and understood that the provisions of this Agreement are intended to survive the expiration and satisfaction of any security instruments placed of record contemporaneously with this Agreement, if such expiration and satisfaction occurs prior to the expiration of the term of this Agreement, as stated in this Section 8.06. 8.07. Provisions Surviving Termination. Sections 4.01 and 7.05 hereof shall survive any termination, rescission, or expiration of this Agreement with respect to or arising out of any event, occurrence, or circumstance existing prior to the date thereof. ARTICLE 9 Administrative Provisions 9.01. Notices and Demands. Except as otherwise expressly provided in this Development Agreement, a notice, demand, or other communication under this Development Agreement by any party to another party shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally as follows: (a) in the case of Developer, addressed to or delivered personally to: Highfield Apartments of Hutchinson, LLC 17018 Commercial Park Road, Brainerd, MN 56401 Attn: Steve Kuepers (b) in the case of the City, addressed or delivered personally to: 16 City of Hutchinson 111 Hassan St. SE Hutchinson, MN 55350 Attn: City Administrator The City and the Developer, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications should be sent. 9.02. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. 9.03. Bindin Effect. ffect. This Agreement shall inure to the benefit of and shall be binding upon the City and the Developer and their respective successors and assigns. 9.04. Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 9.05. Amendments, Changes and Modifications. This Agreement may be amended or any of its terms modified only by written amendment authorized and executed by the City and the Developer. 9.06. Further Assurances and Corrective Instruments. The City and the Developer agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Development Property or the Minimum Improvements or for carrying out the expressed intention of this Agreement. 9.07. Captions. The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope of intent of any provisions or Sections of this Development Agreement. 9.08. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota without giving effect to the conflicts -of -laws principles thereof. 17 IN WITNESS WHEREOF, the parties hereto have caused this Development Agreement to be executed as of the date first above written. CITY OF HUTCHINSON, MINNESOTA 3 And Mayor City Administrator HIGHFIELD APARTMENTS OF HUTCHINSON, LLC 3 In Steven D. Kuepers Its Chief Manager STATE OF MINNESOTA ) ) ss. COUNTY OF MCLEOD ) The foregoing instrument was acknowledged before me on this day of , 2016, by , the Mayor, and , the City Administrator, of the City of Hutchinson, a Minnesota municipal corporation, on behalf of the corporation. IN WITNESS WHEREOF, I have set my hand and my official seal this day of '2016. STATE OF MINNESOTA ss. COUNTY OF Notary Public The foregoing instrument was acknowledged before me on this day of , 2016, by Steven D. Kuepers, the Chief Manager of Highfield Apartments of Hutchinson, LLC, a Minnesota limited liability company, on behalf of the limited liability company. IN WITNESS WHEREOF, I have set my hand and my official seal this day of '2016. Notary Public 19 EXHIBIT A DEVELOPMENT PROPERTY The real property and interests in such property located in the County of McLeod, State of Minnesota and described as follows: Lots 1, 2, & 3, Block 1, Highfield Addition A-1 EXHIBIT B COVENANTS AND RESTRICTIONS 1. The Property shall not be exempt from real estate taxes notwithstanding the ownership or use of the land. 2. The Property shall not be sold, transferred, conveyed or leased to any of the following parties: (a) An institution of purely public charity; (b) A church or ancillary tax-exempt housing; (c) A public hospital; (d) A public school district; (e) An organization exempt from federal income taxes pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, if as a result of such sale, transfer, conveyance or lease the Property would become exempt from real estate taxes; or (f) A Minnesota cooperative association organized under Minnesota Statutes, Section 308.05 and 308.18 for the purpose of complying with the provisions of Minnesota Statutes, Section 273.133, subdivision 3, or any other party that would cause the Property to be valued and assessed for real estate tax purposes at a lower percentage of its market value than the Property is then being valued and assessed for real estate tax purposes or would result in the Property becoming exempt from real estate taxes. 3. The Property shall not be used for any of the following purposes: (a) The operation of a public charity; (b) A church or house of worship; (c) The operation of a public hospital; (d) The operation of a public schoolhouse, academy, college, university or seminary of learning; or (e) Any other use which would cause the Property to be valued and assessed for real estate tax purposes at a lower percentage of its market value than the Property is then being valued and assessed for real estate tax purposes or would result in the Property becoming exempt from real estate taxes. 4. The Property shall be devoted to uses consistent with a "housing district" under Minnesota Statutes, Sections 469.174 through 469.1794. 5. The Property owner shall: (a) not discriminate on the basis of color, creed, national origin, or sex in the sale, lease, use or occupancy of the Property, the Minimum Improvements or any part thereof, (b) develop the Development Property in an orderly manner consistent with the City's zoning ordinances and comprehensive plan. (c) develop the Development Property and the Project for persons of low and moderate income and ensure that 20% of the units will be occupied by persons at or below 50% of the area median income. 6. The covenants and restrictions herein contained shall run with the title to the Property and shall be binding upon all present and future owners and occupants of the Property; provided, however, that the covenants and restrictions herein contained shall inure only to the benefit of the City and may be released or waived in whole or in part at any time, and from time to time, by the sole act of the City, and variances may be granted to the covenants and restrictions herein contained by the sole act of the City. These covenants and restrictions shall be enforceable only by the City, and only the City shall have the right to sue for and obtain an injunction, prohibitive or mandatory, to prevent the breach of the covenants and restrictions herein contained, or to enforce the performance or observance thereof. 7. The covenants and restrictions herein contained shall remain in effect until the payment in full of principal of, and interest on the limited revenue tax increment note issued in accordance with the Development Agreement, and thereafter shall be null and void. EXHIBIT C PROJECT DESCRIPTION; PROJECT COSTS Project Description The construction and development of three phases of 29 -units (87 -units total) of market rate multifamily housing in the City of Hutchinson. The units are designed to be affordable for persons of low and moderate income in the City of Hutchinson, Minnesota, and at least 20% of the units for any phase reserved for those with incomes below 50% of the area median income. Project Costs Minimum Improvement Architectural & Engineering Construction Loan Interest Soft Costs/City Fees Contingency Street Assessment Land and Grading Buildings & Site Work Estimated Cost $285,000 $225,000 $425,000 $195,000 $210,000 $600,000 $6,455,000 Total: $8,395,000 C-1 Cost Reimbursable with TIF (Qualified Cost) Up to $834,395 Total: Up to $834,395 EXHIBIT D PROJECTED PAYMENT SCHEDULE Highfield Apartments (Preliminary Est(mate) City of Hutchinson, MN Three Phwie5 - 29 •unit Apartments 1'407$Ct rCr•{lrJl FY�aa4 G■64rrN �yc� IVRVr >��NIIWI i+u�4 �Ylr► 11MY�Mtr1 7�1:113GG 'A44 TU fur 0i4p4rt54t4 Tax ToQ4D44 Tai droOaTu Ail «467104 X160111! OV"M Tn Psyll.- OTC � 6■cewn4■4 Inor4r.4nt WA Ya7w Yrs. Y. 02Otn9 O&J1n Min 1 100% 17,Y 1 (5444} 12.473 155 004% t6.470 0.728 [s5i (MOl 6 7;4 con 08 2411 OH01n 1 1W% 20,770 (5,144} 48.3% tss9"% 75.767 0.72/ 71.515 {36} (136) (1pj CUR 3.724 33.7" 10.077 41M 1 1.6 2616 2424 Milo owl= 440% (7.730 [0.4x4} 48106 156 4(0% 75.767 37 at 37A7f (4361 (131) (3.786) (3.7641 33.70 33 760 70.617 406,044 2 L5 2020 2021 OMIJ21 ftoml !W% 33,750 M"4) 48306 M9w% 76.337 VA" VAN (131) (1345 WK (37665 33 M 33710 136,165 140.107 3 34 14)1 Mn (1yWO M*Ir1 400!1 13.730 (6.444) 40 506 153M"75.767 ".00 RAM rfin (1310 n (3.734) s�aa� 13 710 1�,;s 219.FM 4 4.3 2073 D64 G 400% 63.760 @1444) 48 304 11,5.010% 75.367 37)Pi Vol (1348 (134) ((.764! (3.754) 33710 33,769 i ?AG2 274.427 5 5.5 (4373 2]324 Ow" Dw1g4 i(a% 53,760 (3.444} 44,706 166016% 75.737 VA" VA" (136) (134) (3,754) (3.754) 93 706 537" 331.064 327,767 6 46 7074 2028 cpl M D6*IFA SOMA 67,710 (6,444) 48306 165080% 75.767 3700 VA" (136) (170) (5.756) ($1754) 33 709 33,7" 353.132 376,1478 1 7.6 2023 2MM 0210116 MOM Ito% 53,730 (5.144} 48 306 1539M 76.367 77{79 71970 (136) (131) (3.754) (3.754] s3. To 33 710 10,.643 426.344 6 $ S 2026 ?077 MV27 owt?7 IW % 531750 (5.141) 46 ]00 165 f"X T5.76T 3700 3TA" (M (1105 (3,754) (3.7w 337" 33710 452.760 00.742 1 5 5 2w 202$ MOV26 060116 100% 63.760 (k444) 40 3M 155.410% 75.367 VA7f 3709 Ow ('36j M_ ?" (3 nd) a?" 3,1.7" «376 !(71.(100 !:02"viT= 10.5 202f mien IW% 57.760 (3141} 40 300 164 410% 75,3b? 37,$4! 7709 (']6j (31) (3.764) [3154) 3.x?" 33.70 540,444 660,Ys 11 11.0 2020 2030 02.0tw MOM 100% S3,7i0 (6,444} 41X16 156040% 761367 71,809 37.84 (136) (+56) [3.754) (3.751) 33.700 33.7" 541.493 613,424 12 x3,6 2030 2031 Wotrst Mini 31A78 (136) (5,754) 33.70 915,041 11 2071 ro*iw 100'11 53,770 [3.144} N.]OR 156140% 75.797 VAM [116} (3.'754) 33.70 6se•134 13.3 2403 mom 77A79 (154) (3.754) 371749 677,71! 14 2632 ! KIV" IW% SJ•750 (i 144} 48306 156040% TS,387 $?An (136) (3794) 33.760 tS67,443 44.7 2003 MOM 3709 (13% (3,764) 33,7" 778'"0 15 033 02Atrs4 100% S-3 750 [k444) 44 306 154A4e% 75 367 37,07! (13% (7,'154) 37,70 750,429 15.5 2034 050tr34 77An (134 (3,7W Was 758.166 14 2004 0WAG IW% $3.760 (5.44.4) - 4305 156 No% 75317 37" (130) (3.754) 33,700 777.673 16.3 2031 060'.56 3FAM (130 (3.716) 33.709 710.802 17 2066 020'r38 !OQ'% 53.760 '5144•(} 48706 SS Rio% 76 357 37A76 (!36) (2.796) Was $16.766 175 2M 0101r3a TOW 1 7" 034 749 18 2036 OZM? 1$103) (dwJ797f ���■ 01444/11 Yr4r6 lryal 421047!117 Pna+M Y4M fE1G 314% ti�dll 9176« 490.711)834M D-1 EXHIBIT E CERTIFICATE OF COMPLETION WHEREAS, Highfield Apartments of Hutchinson, LLC, a limited liability company of the State of Minnesota ("the Developer"), is the owner and the Developer of the property in the County of McLeod and State of Minnesota described on Exhibit A hereto and made a part hereof (the "Development Property"); and WHEREAS, the Development Property is subject to the provisions of a certain Development Agreement (the "Agreement") in Development District No. 4 and Tax Increment Financing District No. 4-18, dated as of 2016, between the Developer and the City of Hutchinson, Minnesota (the "City"); and WHEREAS, the Developer has fully and duly performed all of the covenants and conditions of Developer under the Agreement with respect to the completion of the Phase of the Project (as defined in the Agreement); NOW, THEREFORE, it is hereby certified that all requirements of the Developer under the Agreement with respect to the completion of the Phase of the Project have been completed and duly and fully performed, and this instrument is to be conclusive evidence of the satisfactory termination of the covenants and conditions of the Agreement as they relate to the completion of the Phase of the Project. All other covenants and conditions of the Agreement shall remain in effect and are not terminated hereby. Dated this day of , 2016. CITY OF HUTCHINSON, MINNESOTA an And E-1 Mayor City Administrator No. R-1 EXHIBIT F FORM OF LIMITED TAX INCREMENT REVENUE NOTE UNITED STATES OF AMERICA STATE OF MINNESOTA CITY OF HUTCHINSON LIMITED TAX INCREMENT REVENUE NOTE OF 2016 (Highfield Apartments) PRINCIPAL AMOUNT: $ INTEREST RATE: 3.0% The City of Hutchinson, Minnesota (the "City") for value received, promises to pay, but solely from the source, to the extent and in the manner hereinafter provided, to Highfield Apartments of Hutchinson, LLC, or its registered assigns (the "Owner"), the principal sum of ($ ), in semi-annual installments payable on , and on each February 1 and August 1 thereafter up to and including February 1, 2037 (each being a "Scheduled Payment Date"), together with interest on the outstanding and unpaid principal balance of this Note at the rate of 3.0% per annum. Installment payments shall be applied first to interest and then to a reduction of outstanding principal. Interest on the outstanding balance of this Note shall accrue from the date hereof and shall be added to the principal amount on each February 1 and August 1 installment payment date unless paid on such date. Each payment on this Note is payable in any coin or currency of the United States of America which on the date of such payment is legal tender for public and private debts and shall be made by check or draft made payable to the Owner and mailed to the Owner at the postal address within the United States designated from time to time by the Owner. This Note is subject to prepayment on any Scheduled Payment Date at the option of the City, in whole or in part, upon payment to the Owner of the principal amount of the Note to be prepaid, without premium or penalty. This Note is a special and limited obligation and not a general obligation of the City, which has been issued by the City in aid of financing a project pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including M.S., Sections 469.174 through 469.1794. This Limited Tax Increment Revenue Note of 2016 (Tax Increment Financing District No. 4-18) (or "Note") is issued pursuant to the provisions of that certain Development Agreement, dated as of , 2016, as the same may be amended from time to time (the "Development Agreement"), by and between the City of Hutchinson, Minnesota (the "City") and Highfield Apartments of Hutchinson, LLC (the "Developer"). THIS NOTE IS NOT PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN PLEDGED TAX INCREMENT, AS DEFINED BELOW. F-1 The Note Payment Amounts due hereon shall be payable solely from a portion of the tax increments, less the City's administrative fee of ten percent (10%), from the Development Property within the City's Tax Increment Financing District No. 4-18 (the "Tax Increment District") within its Development District No. 4, which are paid to the City and which the City is entitled to retain pursuant to the provisions of M.S., Sections 469.174 through 469.1794, as the same may be amended or supplemented from time to time (the "Available Tax Increment"). The City makes no representation or covenant, express or implied, that the Available Tax Increments will be sufficient to pay, in whole or in part, the amounts which are or may become due and payable hereunder. The City shall pay to the Owner on each Scheduled Payment Date all Available Tax Increment on that date to the extent necessary to pay principal and interest then due and any past due installment. To the extent that the City is unable to pay the total principal and interest due on this Note at or prior to the February 1, 2037 maturity date hereof as a result of its having received as of such date insufficient Available Tax Increment, such failure shall not constitute a default under this Note and the City shall have no further obligation hereon. This Note shall not be payable from or constitute a charge upon any funds of the City, and the City shall not be subject to any liability hereon or be deemed to have obligated itself to pay hereon from any funds except the Available Tax Increment, and then only to the extent and in the manner herein specified. The Owner shall never have or be deemed to have the right to compel any exercise of any taxing power of the City or of any other public body, and neither the City nor any council member, officer, employee or agent of the City, nor any person executing or registering this Note shall be personally liable hereon by reason of the issuance or registration hereof or otherwise. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the City Council of the City of Hutchinson has caused this Note to be executed by the manual signatures of the Mayor and the City Administrator and has caused this Note to be dated as of .2016. Mayor F-2 City Administrator HUTCHINSON ROUSING AND REDEVELOPMENT AUTHORITY CITY OF HUTCHINSON MCLEOD COUNTY STATE OF MINNESOTA RESOLUTION NO. 2016-10 RESOLUTION RECOMMENDING THAT THE CITY COUNCIL MODIFY DEVELOPMENT DISTRICT NO. 4, ESTABLISH TAX INCREMENT FINANCING DISTRICT NO. 4-I8 THEREIN AND ADOPT A MODIFICATION TO THE DEVELOPMENT PROGRAM AND ADOPT THE TAX INCREMENT FINANCING PLAN THEREFOR. WHEREAS, there is a proposal to modify Development District No. 4, establish Tax Increment Financing District No. 4-18, adopt a Modification to the Development Program (the "Development Program Modification"), and adopt the Tax Increment Financing Plan (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program Modification and TIF 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, inclusive, as amended (the "Act"); and WHEREAS, the City of Hutchinson (the "City") has investigated the facts relating to the Programs Modification and TIF Plan and has caused the Program Modification and TIF Pian to be prepared; and WHEREAS, the City has performed ail actions required by law to be performed prior to the adoption of the Program Modification and TIF Plan, and has scheduled a public hearing on the Program Modification and TIF Plan upon published notice as required by law. NOW, THEREFORE, BE IT RESOLVED by the Hutchinson Housing and Redevelopment Authority (the "HRA") as follows: I . The HRA hereby finds that the Program Modification and TIF Plan conform in all aspects to the requirements of the Act and will help fiilfill a need to develop an area of the State of Minnesota for affordable and high quality housing and thereby serves a public purpose. 2. The HRA further finds that the Program Modification and TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Development District No. 4 by private enterprise in that the intent is to provide only that public assistance necessary to male the private developments financially feasible. 3. The HRA hereby approves the Program Modification and TIF Plan, as presented to the HRA on this date, and recommends that they be established and adopted by the City Council of the City. Approved by the Hutchinson Housing and Redevelopment Authority this 19`x' day of July, 2016. "`^ Chair ATTEST: Executive Director PLANNING COMMISSION CITY OF HUTCHINSON, MINNESOTA RESOLUTION NO. lb — 4 3 RESOLUTION OF THE CITY OF HUTCHINSON PLANNING COMMISSION FINDING THAT A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 4-18 CONFORMS TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY. WHEREAS, the City of Hutchinson (the "City") has proposed to adopt a Modification to the Development Program for Development District No. 4 (the "Development Program Modification") and a Tax Increment Financing Plan for Tax Increment Financing District No. 4-18 (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Prograin and Plan") and has submitted the Program and Plan to the City Planning Commission (the "Commission") pursuant to Minnesota Statutes, Section 469.175, Suhd. 3, and WHEREAS, the Commission has reviewed the Program and Plan to determine their conformity with the general pians for the development and redevelopment of the City as described in the comprehensive plan For the City. NOW, THEREFORE, BE IT RESOLVED by the Commission that the Program and Plan conform to the general plans for the development and redevelopment of the City as a whole. Dated: July 19, 2016 Chair ATTEST: S ary-- Council member CITY OF HUTCHINSON MCLEOD COUNTY STATE OF MINNESOTA introduced the following resolution and moved its adoption: RESOLUTION NO. 14590 RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 4-18 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 a 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. 4-18 (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 ("M.S."), 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. 1.05. The City is modifying the boundaries of the Project Area to include the District. Section 2. Findings for the Adobtion and Annroval of the DeVelonment Program 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. 4-18. 3.01. The Council hereby finds that Tax Increment Financing District No. 4-18 is in the public interest and is a "housing district" under M.S., Section 469.174, Subd. 11. 3.02. The Council further finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future; 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 development or redevelopment 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 help fulfill a need to develop an area of the City which is already built up, to provide housing opportunities, to improve the tax base and to improve the general economy 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. A private developer will receive only the assistance needed to make this development financially feasible. As such, any private benefits received by a developer are incidental and do not outweigh the primary public benefits. 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 the Minnesota Department of Revenue and the Office of the State Auditor pursuant to M.S., Section 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: July 26, 2016 Gary Forcier, Mayor (Seal) ATTEST: Matt Jaunich, City Administrator EXHIBIT A RESOLUTION NO. The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 4-18, as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: Finding that Tax Increment Financing District No. 4-18 is a housing district as defined in M.S., Section 469.174, Subd. 11. TIF District No. 4-18 currently consists of one parcel which will be subdivided prior to certification of the District. The development will consist of up to 87 units of multifamily rental housing. All or a portion of which will receive tax increment assistance and will meet income restrictions described in M.S., Section 469.1761. At least 20 percent of the units/homes receiving assistance will have incomes at or below 50 percent of statewide median income. Appendix E of the TIF Plan contains background for the above finding. 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. This finding is supported by the fact that the development proposed in this plan is a housing district that meets the City's objectives for development and redevelopment. Due to the cost of building affordable new housing in the City and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. Rents for the Hutchinson area do not support high enough market rents to pay for all costs of acquisition, construction, site and public improvement, and ongoing operating costs of the project. The necessity of public assistance is true for most affordable rental housing developments in Minnesota. The developer was asked for and provided its project budget and financial projections that demonstrate the need for tax increment assistance as described in this Plan (documents on file in City Hall). City staff and its financial advisor have reviewed the developer's financing assumptions and have recommended to the Council that the assistance is necessary to provide adequate returns to attract private investment in the proposed housing project. Based upon this evidence, it is determined that the development would not go forward without public assistance. 3. Finding that the TIF Plan for Tax Increment Financing District No. 4-18 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 TIF Plan for Tax Increment Financing District No. 4-18 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Development District No. 4 by private enterprise. Through the implementation of the TIF Plan, the City will provide an impetus for residential development, which is desirable or necessary for meeting housing needs of people of a variety of incomes, a need to increase life -cycle housing within the City, and support increases in population. CITY OF HUTCHINSON MCLEOD COUNTY STATE OF MINNESOTA Council member introduced the following resolution and moved its adoption: RESOLUTION NO. 14591 RESOLUTION APPROVING A DEVELOPMENT AGREEMENT FOR DEVELOPMENT DISTRICT NO. 4 AND THE TAX INCREMENT FINANCING DISTRICT NO. 4-18 THEREIN. 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 a Development Program therefor, and adopted a Modification to the Development Program (the "Development Program Modification") for Development District No. 4 and established Tax Increment Financing District No. 4-18 (the "District") therein and adopted 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 ("M.S."), 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. In order to achieve the objectives of the Program and Plan and, particularly, to make the land in the District available for development in conformance with such plans, the City desires to enter into a Development Agreement (the "Development Agreement") by and between the City and Highfield Apartments of Hutchinson, LLC (the "Developer") to assist the Developer with the financing of certain costs of the project as more particularly set forth in the TIF Plan and the Development Agreement (the "Project"). Section 2. Findings. 2.01. The City has reviewed the Development Agreement and certain related documents. 2.02 The City hereby finds that the Development Agreement is in the best interest of the City and meets the redevelopment goals of the City and is in accordance with the public purpose and provisions of the applicable state and local laws and requirements under which the Project has been undertaken and complies with the requirements of the Development Program and the TIF Plan. Section 3. Approval of Development Agreement. The City hereby adopts and approves the Development Agreement in substantially the form presented to and on file with the City as of this date and directs the Mayor and City Administrator to execute the Development Agreement and documents related thereto. Section 4. Effective Date. This resolution is effective upon the date of its approval. 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: July 26, 2016 Gary Forcier, Mayor ATTEST: Matt Jaunich, City Administrator HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Preliminary 5-Year Capital Improvement Plan (CIP Plan) Department: Finance LICENSE SECTION Meeting Date: 7/26/2016 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ Communications, Requests Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Attached is the preliminary 5-year capital improvement plan (CIP) as required by city charter by August 1 st. The plan is based on recommendations from the Fleet, Facility and Resource Allocation committees. Department directors have also included other miscellaneous capital items that are not addressed by the three committees. The CIP will be subject to change throughout the year with a final CIP coming to council for approval before year-end. The plan contains two sets of reports. The first reports show the capital expenditures within the department acquiring the asset. The second reports show the funding sources for the capital expenditures. If there are any questions ahead of time or if the council would like to see further details of the 5-year CIP plan, please let me know. BOARD ACTION REQUESTED: 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: 5 -YEAR CAPITAL IMPROVEMENT PLAN 2017-2021 Preliminary Plan — July 26, 2016 CITY OF HUTCHINSON - CAPITAL PLAN Administrative Summary VISIONS AND GOALS Each year, as part of the annual budgeting process, the City of Hutchinson prepares a five-year Capital Improvement Plan (CIP) that includes the following years' capital budget. The CIP identifies projects that will support existing and projected needs in the following areas: transportation, parks & recreation and public safety, etc. It is based upon numerous long range planning documents that are updated regularly as identified by the Facilities Committee, Fleet Committee, Resource Allocation Committee and City staff. The CIP prioritizes the use of limited resources that are available for capital items by identifying which projects will be funded, how they will be paid for and when they will be purchased. It establishes a comprehensive development program that is used to maximize outside revenue sources and effectively plan for the growth and maintenance of the City's infrastructure. POLICIES Criteria identified for inclusion of capital items in the CIP plan are as follows: 1) Capital Item must have a minimum cost of $10,000 2) Project must define year proposed 3) Funding source should be identified 4) Detail should include annual operating costs or savings for proposed capital item 5) Department priority should be established 6) Must have a useful life of three years or greater The plan encompasses projects using the following priority levels: Priority 1: (Urgent) Projects currently underway or those that are considered essential to the departments of City operations, and should not be delayed beyond the year requested. Failure to fund these projects will seriously jeopardize City's ability to provide service to the residents and/or expose the City to a potential liability and negative legal exposure. Priority 2: (Very Important) Projects that are needed by a department or the City to improve or maintain their operations, and to delay would cause deterioration or further deterioration of their current operation and/or level of service to the residents of the City. These should not be delayed beyond the year requested. Priority 3: (Important) Projects that are needed by a department or the City to improve or maintain their operations, and should be done as soon as funds can reasonably be made available. Priority 4: (Less Important) Projects, which are desirable, but needing further study. Priority 5: (Future Consideration) Projects, which sometime in the future will need to be funded to maintain operations, safety or infrastructure desired within the community. CIP PROCESS 1. Finance distributes CIP forms and the prior year's data to departments for updating. Any new capital items should be requested at this time. 2. Departments add, remove and update CIP data from the prior year's report. 3. Finance updates the CIP database with recommendations made by the department directors and the Fleet, Facility and Resource Allocation committees. 4. Initial draft is reviewed with City Administrator and Department directors; corrections or adjustments are made. Preliminary CIP plan is submitted to City council by August 1st 6. Final CIP plan is reviewed and adopted by City council by year-end. PROCESS CALENDAR April/May - Departments work on updating CIP Plan. Any new capital items should be requested at this time. The Facilities, Fleet and Resource Allocation Committees begin meeting to review and prioritize potential improvement projects submitted by Departments. June/July - Departments return updated CIP items. The Facilities and Fleet Committees submit a recommended five year plan to the City Administrator. An initial CIP draft is reviewed with Department directors and corrections or adjustments are made. Current year CIP items are incorporated into the early stages of the budgeting process during this time frame. August 1 st — Per Section 7.05 of the Hutchinson City Charter, the City Administrator shall submit to the council a preliminary CIP Plan no later than August 1st of each year. December 31st - Final CIP plan is adopted by City council prior to year-end. City of Hutchinson, MN CITY OF HUTCHINSON - CAPITAL PLAN 2017 thm 2021 DEPARTMENT SUMMARY Department 2017 2018 2019 2020 2021 Total Administration 50,000 50,000 Airport 180,000 300,000 1,000,000 1,480,000 Cemetery 10,000 10,000 94,413 35,504 35,504 185,421 City Center 300,000 300,000 Civic Arena 590,000 675,000 140,000 1,405,000 Compost 643,000 189,227 180,000 503,000 580,000 2,095,227 Engineering 27,000 127,204 26,663 32,239 213,106 Event Center 200,000 200,000 Fire 155,500 114,000 55,000 324,500 Information Technology 54,586 18,000 43,000 115,586 Infrastructure Improvements 5,354,302 5,562,848 3,814,841 10,746,124 4,866,472 30,344,587 Library 80,000 80,000 Liquor Fund 20,000 20,000 Parks 343,000 59,500 472,500 145,000 47,500 1,067,500 Police 257,000 278,000 132,000 164,250 119,000 950,250 Pool & Recreation Building 3,150,000 250,000 640,000 4,040,000 Public Works 44,000 100,000 100,000 244,000 Refuse 290,374 85,000 91,500 35,000 501,874 Storm Water 37,000 170,346 370,579 40,000 103,732 721,657 Streets 89,845 222,863 132,874 180,302 167,167 793,051 Wastewater 989,827 184,123 266,967 381,300 633,061 2,455,278 Water 169,500 247,500 317,500 258,500 319,739 1,372,739 TOTAL 11,940,934 7,968,611 6,680,174 14,210,643 8,099,414 48699,776 City of Hutchinson, MN CITY OF HUTCHINSON - CAPITAL PLAN 2017 thm 2021 PROJECTS BY DEPARTMENT Department Project# Priority 2017 2018 2019 2020 2021 Total Administration Downtown Wayfnding Signage ADMIN -1601 3 50,000 50,000 Administration Total 50,000 50,000 Airport Seal pavements AIRP 00 2 180,000 180,000 T -Hangar Site Preparation AIRP 01 3 300,000 300,000 T -Hangar Construction AIRP 02 4 1,000,000 71000,000 Airport Total 180,000 300,000 1,000,000 1,480,000 Cemeter Cemetery mower CEMT001 4 25,504 25,504 51,008 Tractor/Loader/Backhoe CEMT002 3 84,413 84,413 Cemetery Fencing/Roadway CEMT01 3 10,000 10,000 10,000 10,000 10,000 50,000 Cemetery Total 10,000 10,000 94,413 35,504 35,504 185,421 City Center City Center Security Remodel C. CTR -1701 3 300,000 300,000 City Center Total 300,000 300,000 Civic Arena Replace Dehumidification Units CA -1501 2 200,000 200,000 Replace East Rink Roof CA -1502 1 300,000 300,000 East Rink Insulation Resurface CA -1504 2 200,000 200,000 Replace East dasher boards CA -1505 3 170,000 170,000 West Rink low emissivity ceiling CA -1507 2 90,000 90,000 East Rink Locker Room Improv CA -1509 3 80,000 80,000 HVAC system upgrades CA -1510 2 225,000 225,000 Zamboni ice resurfacer CA -2101 3 140,000 140,000 Civic Arena Total 590,000 675,000 140,000 1,405,000 Compost Bituminous Improvements COW 1503 3 50,000 50,000 Bagging Line Upgrades COW 1504 3 35,000 30,000 65,000 Skidsteer Loader COW 1604 3 51,227 51,227 Grinder replacement COW 1703 3 500,000 500,000 Mack truck (used) COW 1704 4 58,000 58,000 Turner - Face Replacement COW 1803 3 50,000 50,000 Mack truck (used) COW 1804 4 58,000 58,000 Stacking Conveyor (2 used) COW 1901 4 100,000 100,000 Walking Floor Trailer COW 1902 4 80,000 80,000 80,000 240,000 Forklift Replacement COMP -2001 3 35,000 35,000 Department Project# Priority 2017 2018 2019 2020 2021 Total 1 ton 44 crewcab pickup COMP -2002 3 38,000 38,000 McCloskey Screener replacement COMP -2020 3 350,000 350,000 Compost Turner Replacement COMP -2101 3 500,000 500,000 Compost Total 643,000 189,227 180,000 503,000 580,000 2,095,227 Engineering Survey Equipment Upgrades ENGR 01 4 33,650 33,650 1/2 ton work truck ENGR 100 3 27,000 27,000 1/2 ton work truck ENGR 101 3 29,504 29,504 Replace SUV ENGR 102 3 26,663 26,663 1/2 ton work truck ENGR 103 3 32,239 32,239 Survey Equipment ENGR-1801 4 64,050 64,050 Engineering Total 27,000 127,204 26,663 32,239 213,106 Event Center Event Center Carpet EC -1901 3 200,000 200,000 Event Center Total 200,000 200,000 Fire PPE Washer & Drying Equip FD -1702 3 20,500 20,500 Breathing Air Pack Replacement (SCBA) FD -1704 2 135,000 135,000 Exhaust Capture System FD -1801 3 55,000 55,000 Rescue 8 - 1 ton truck FD -1901 3 80,000 80,000 Rescue 8 - slide -in skid unit FD -1902 3 24,000 24,000 Chevy crewcab 44 pickup truck (used) FD -1903 4 10,000 10,000 Fire Total 155,500 114,000 55,000 324,500 Information Technology New Minivan lT 1501 4 24,586 24,586 Generator City Center lT 1701 4 30,000 30,000 Virtual Server Refresh /T 1801 4 18,000 18,000 Core Switch Upgrade lT 1901 2 43,000 43,000 Information Technology Total 54,586 18,000 43,000 115,586 Infrastructure Improvements South Central Trunk Storm (Pond & Ballfelds) Newconst 07 3 800,000 800,000 SC Trunk Storm (local storm sewer) Now const 02 3 600,000 600,000 Bluff St/Northwoods trail Now const 04 4 450,000 450,000 South Grade Trail (Dale -Hwy 15 S) Now const 05 4 247,934 247,934 Roberts St/Rd SW (McDonald to School) Partial 01 3 1,372,745 1,372,745 School Rd SW (Roberts -Hwy 7) Partial 02 3 1,725,400 1,725,400 Clinton Ave SW (Harrington -Merrill) Partial 03 3 196,650 196,650 Merrill St SW (SGR-Clinton) Partial 04 3 218,275 218,275 Neal Ave SW (Keith -Sunset) Partial 05 3 208,150 208,150 5th Ave SW/SE (Lynn Rd SW - Ontario St SE) Partial 08 3 1,478,015 1,478,015 Dale St SW (SGR-Roberts) Partial 09 3 1,668,205 1,668,205 Washington Ave W (Lynn -Main) Partial 10 3 1,236,477 1,236,477 Pavement Management Program PMP 2 413,223 413,223 413,223 413,223 413,223 2,066,115 Church St SW (SGR-Linden) Reclaim 05 3 254,700 254,700 Clinton Ave SW (Merrill -Lynn) Reclaim 06 3 127,350 127,350 Harrington St SW (SGR-Linden) Reclaim 07 3 255,350 255,350 Merrill St SW (Clinton -Linden) Reclaim 08 3 129,300 129,300 Department Project# Priority 2017 2018 2019 2020 2021 Total Neal Ave SW (Dale -Keith) Reclaim 09 3 343,000 101,653 Police 101,653 Sunset St SW (SGR-Linden) Reclaim 10 3 Squad car#2 replacement PD -1401 263,600 2 263,600 Roberts Rd SW (School -Dale) Reclaim 12 3 795,000 40,000 40,000 Squad Car #3 replacement PD -1501 795,000 Linden Ave SW (Dale -Harrington) Reclaim 14 3 Squad Car#7 replacement PD -1502 600,000 2 600,000 McDonald Dr SW (Lakewood - School) Reclaim 15 3 3 129,000 750,200 Squad car#5 replacement PD -1601 750,200 Northwoods, Spruce, 11th Ave NE Reclaim 16 3 Squad car#8 replacement PD -1602 861,000 38,000 861,000 1stAve NE (Main -Adams) Reclaim 19 3 3 40,000 40,000 371,901 371,901 1 st Ave SE (Main -Adams) Reclaim 20 3 371,901 371,901 2nd Ave SW (Franklin -Main) Reclaim 21 3 148,760 148,760 Grove St SW (2nd -Washington) Reclaim 22 3 289,256 289,256 Hassan St (5th Ave S -1st Ave N) Reclaim 23 3 738,650 738,650 2nd Ave SE Bridge Recon 01 3 1,149,500 1,149,500 Century Ave SE (Hwy 15 -Jefferson) Recon 02 3 1,968,500 1,968,500 TH 15/Main St Reconstruction Recon 03 2 8,400,000 8,400,000 Pavement sealing/Seal coating SCFS/RP 3 250,000 250,000 500,000 Infrastructure Improvements Total 5,354,302 5,562,848 3,814,841 10,746,124 4,866,472 30,344,587 Library Library carpet replacement L18-1901 3 80,000 80,000 Library Total 80,000 80,000 Liquor Fund Security Camera System Update LIQ -1601 3 20,000 20,000 Liquor Fund Total 20,000 20,000 Parks Roberts Park -lighting improvements PARK -1601 1 350,000 350,000 North Park -tennis court improv PARK -1602 3 60,000 60,000 1/2 Ton 42 pickup PARK -1604 3 24,000 24,000 John Deere tractor 4710 44 PARK -1702 3 61,000 61,000 1 ton 44 PARK -1703 4 48,000 48,000 1 ton 44 pickup PARK -1704 4 48,000 48,000 1/2 Ton 4X2 pickup PARK -1802 4 24,000 24,000 1 -ton 4x2w/flat dump PARK -1803 4 48,000 48,000 1/2 ton 42 pickup PARK -1804 4 29,500 29,500 1/2 Ton 4X4 Pickup PARK -1901 4 27,000 27,000 1/2 Ton 4X2 Pickup PARK -1902 4 27,000 27,000 3/4 -ton 44 pickup PARK -1903 4 38,500 38,500 Skid steer loader S250 used PARK -2001 4 42,000 42,000 John Deere mower 12 wide PARK -2002 4 73,000 73,000 Rail Line Purchase Debt (Exp 2020) PARK -2020 3 30,000 30,000 30,000 30,000 120,000 Tractor, 4720 w/ cab PARK -2101 3 47,500 47,500 Parks Total 343,000 59,500 472,500 145,000 47,500 1,067,500 Police Squad car#2 replacement PD -1401 2 40,000 40,000 Squad car#6 replacement PD -1402 2 40,000 40,000 Squad Car #3 replacement PD -1501 2 41,500 41,500 Squad Car#7 replacement PD -1502 2 41,500 41,500 Police Special Response Vehicle PD -1503 3 129,000 129,000 Squad car#5 replacement PD -1601 2 42,750 42,750 Squad car#8 replacement PD -1602 2 38,000 44,000 82,000 Police Firearms Berm Improvement PD -1701 3 40,000 40,000 Department Project# Priority 2017 2018 2019 2020 2021 Total Replace Minivan PD -1703 4 19,000 19,000 PSAP Equipment Upgrade PD -1801 2 179,000 179,000 Locker room remodel PD -1901 4 75,000 75,000 New Chief vehicle PD -1902 4 24,500 24,500 New 3/4 ton 44 crew cab pickup PD -1903 4 24,500 24,500 SUV, Suburban 44 PD -2001 4 50,000 50,000 Replacement of portable radios PD -2002 3 121,500 121,500 Police Total 257,000 278,000 132,000 164,250 119,000 950,250 Pool & Recreation Building PoolANaterpark improvements PR -1601 2 3,150,000 3,150,000 Recreation Center Roof (gym area) PR -1701 2 250,000 250,000 Rec Center/Civic Arena Parking Lot PR -1702 3 640,000 640,000 Pool & Recreation Building Total 3,150,000 250,000 640,000 4,040,000 Public Works Tip up joint sealant replacement HATS 01 4 14,000 14,000 Pavement repairs, seal coat HA TS 02 3 30,000 30,000 Pond excavation, ditch shaping HATS 03 4 35,000 35,000 Stormceptor for wash area HA TS O4 4 65,000 65,000 Wash bay / Water fill station HATS 05 4 100,000 100,000 Public Works Total 44,000 100,000 100,000 244,000 Refuse Stacking Conveyor REFS -1601 3 45,000 45,000 Leaf Vacuum REFS -1701 3 45,374 45,374 Airlift Separator for plastics REFS -1703 3 50,000 50,000 Tipping Building Remediation REFS -1704 1 150,000 150,000 Truck, TA w/hooklift REFS -1801 3 85,000 85,000 Walking Floor Trailer REFS -1901 3 91,500 91,500 Forklift Replacement REFS -2101 3 35,000 35,000 Refuse Total 290,374 85,000 91,500 35,000 501,874 Storm Water Leaf Vacuum STWT007 3 98,346 53,732 152,078 Mechanical Street Sweeper STWT002 3 175,579 175,579 Skid steer loader STWT003 3 17,000 17,000 Storm Sewer System Repairs STWT01 3 20,000 20,000 20,000 20,000 20,000 100,000 Ridgewater College Flood Study STWT 02 4 12,000 72,000 Alan Street outfall management STWT03 3 40,000 40,000 Bradford St SE flood improvement STWT 04 3 100,000 100,000 9th Ave NW flood improvement STWT05 3 75,000 75,000 Greens pond improvement STWT06 3 20,000 20,000 Bridgewater pond improvement STWT 07 4 30,000 30,000 Storm Water Total 37,000 170,346 370,579 40,000 103,732 721,657 Streets Dustless Sandblasting Equipment STRT002 4 50,000 50,000 1 Ton 4x4w/aerial bucket STRT07 3 65,673 65,673 Brush chipper STRT04 2 43,845 43,845 1 -ton 44 truck w/ snowplow STRT08 3 45,895 40,598 86,493 Tractor w/ 12' mower STRT 10 3 35,453 35,453 Department Project# Priority 2017 2018 2019 2020 2021 Total 1 -Ton flatbed truck STRT 11 4 47,271 47,271 Tandem -axle Dump Truck STRT 12 3 95,668 101,494 197,162 1/2 Ton 44 pickup STRT 13 3 31,300 32,239 63,539 Skid steer loader STRT 18 3 46,000 46,000 1 -ton dump truck STRT 19 3 50,150 50,150 100,300 1 -ton Service truck STRT20 3 57,315 57,315 Streets Total 89,845 222,863 132,874 180,302 167,167 793,051 Wastewater Pumps & Generators WWTF001 2 31,827 18,008 49,835 Tractor Mower WWTF 004 1 19,123 19,123 1 Jon truck w/plow WWTF 005 2 38,267 38,267 Utility vehicle WWTF 006 4 13,000 13,000 Utility vehicle WWTF 007 4 10,692 10,692 Work truck WWTF 008 3 31,300 32,239 63,539 Pressure Washer WWTF 009 3 15,000 15,000 Harmony Ln Lift Station WWTF 07 4 40,000 40,000 Biosolids Spreader WWTF010 3 35,822 35,822 Boiler Replacement (10 or 90) WWTF 02 3 70,000 70,000 MBR Cassette Replacement WWTF 03 3 400,000 400,000 HVAC system upgrade WWTF 04 4 80,000 80,000 Grit Removal System (30) WWTF 05 3 225,000 225,000 WWTF SCADA Upgrade WWTF 06 3 150,000 150,000 Biosolids Handling WWTF 07 3 500,000 500,000 Lift station repairs & upgrades WWTF 08 3 50,000 50,000 50,000 50,000 50,000 250,000 Additional MBR cassettes WWTF 09 4 160,000 160,000 Dry storage warehouse/garage WWTF 10 4 35,000 35,000 MBR blower upgrade WWTF 11 4 100,000 100,000 Oxidation ditch Aiero 2 bridges WWTF 12 4 200,000 200,000 Wastewater Total 989,827 184,123 266,967 381,300 633,061 2,455,278 Water Pavement repairs & maintenance W/WW07 3 27,500 27,500 27,500 27,500 27,500 137,500 Garage roof replacement WA TR 02 3 10,000 10,000 Water Meter Replacement Program WA TR 03 3 200,000 200,000 200,000 600,000 WATR SCADA Upgrade WA TR 04 3 100,000 100,000 Roof& building repairs WA TR 05 3 20,000 20,000 Replace CIP pump VFD WA TR 07 3 15,000 15,000 WeII #6 Cleaning WA TR 08 3 90,000 90,000 WeII #5 Cleaning WA TR 09 3 90,000 90,000 High bay lighting WA TR 10 4 16,000 16,000 1/2 ton work truck WA TR 100 3 27,000 32,239 59,239 Replace HSP #2 VFD WA TR 11 3 15,000 15,000 WeII #5 Rehabilitation WA TR 12 3 80,000 80,000 WeII #8 Rehabilitation WA TR 13 3 80,000 80,000 Water Total 169,500 247,500 317,500 258,500 319,739 1,312,739 GRAND TOTAL 11,940,934 7,968,611 6,680,174 14,210,643 8,099,414 48,899,776 City of Hutchinson, MN CITY OF HUTCHINSON - CAPITAL PLAN 2017 thm 2021 FUNDING SOURCE SUMMARY Source 2017 2018 2019 2020 2021 Total Airport Construction Fund 18,000 60,000 78,000 Capital Projects Fund 70,000 209,000 30,000 151,500 460,500 Capital Projects Fund - Facilities Plan 360,000 590,000 600,000 730,000 995,000 3,275,000 Capital Projects Fund - Misc Infrastructure Maint 250,000 250,000 500,000 Community Improvement Fund 50,000 50,000 Compost Fund 143,000 189,227 183,000 503,000 80,000 1,098,227 Cooperative Agreement - HUC 20,265 20,265 Equipment Replacement - Heavy Fleet 129,000 95,668 84,413 241,494 550,575 Equipment Replacement - Small Fleet 482,431 235,199 419,374 390,219 214,916 1,742,139 G.O. Improv Bonds - Debt Tax Levy 1,856,944 2,044,160 1,928,060 1,839,810 2,071,705 9,740,679 G.O. Stormwater Bonds 800,000 800,000 General Fund 64,000 145,435 31,000 240,435 General Fund (Perpetual Care Fund) 10,000 10,000 10,000 10,000 10,000 50,000 Grants - Federal 321,500 998,000 240,000 71559,500 Grants - Other 14,666 33,332 200,000 247,998 Grants - State 679,667 33,334 6,000,000 6,713,001 HATS Fund (City only) 14,667 33,334 48,001 Lease Purchase 450,000 500,000 950,000 Liquor Fund 20,000 3,000 23,000 Municipal State Aid 700,000 364,000 400,000 1,000,000 1,000,000 3,464,000 Pool Project - Capital Projects Fund 1,000,000 71000,000 Pool Project - Community Improvement Fund 900,000 900,000 Pool Project - General Fund Reserves 500,000 500,000 Pool Project - Interfund Loan 750,000 750,000 Refuse Fund 290,374 85,000 91,500 35,000 501,874 Rural Fire Dept Fund 52,000 52,000 Sale or Trade in of Equipment 50,000 50,000 Special Assessments 1,104,858 796,288 908,381 449,314 1,165,167 4,424,008 Storm Water Utility Fund 185,500 329,746 473,209 540,000 256,666 1,785,121 Wastewater Fund 1,275,577 471,873 571,602 1,198,550 935,144 4,452,746 Water Fund 427,750 407,750 494,635 948,250 594,322 2,872,707 GRAND TOTAL 11,940,934 7,968,611 6,680,174 14,210,643 8,099,414 48899,776 City of Hutchinson, MN CITY OF HUTCHINSON - CAPITAL PLAN 2017 thm 2021 PROJECTS BY FUNDING SOURCE Source Project# Priority 2017 2018 2019 2020 2021 Total Airport Construction Fund 1 Seal pavements AIRP00 2 18,000 18,000 T -Hangar Site Preparation AIRP 01 3 60,000 60,000 Airport Construction Fund Total 18,000 60,000 78,000 Capital Projects Fund Rail Line Purchase Debt (Exp 2020) PARK -2020 3 30,000 30,000 30,000 30,000 120,000 Police Firearms Berm Improvement PD -1701 3 40,000 40,000 PSAP Equipment Upgrade PD -1801 2 179,000 179,000 Replacement of portable radios PD -2002 3 121,500 121,500 Capital Projects Fund Total 70,000 209,000 30,000 151,500 460,500 Capital Projects Fund - Facilities Plan City Center Security Remodel C. CTR -1701 3 300,000 300,000 Replace Dehumidification Units CA -1501 2 200,000 200,000 Replace East Rink Roof CA -1502 1 300,000 300,000 East Rink Insulation Resurface CA -1504 2 200,000 200,000 Replace East dasher boards CA -1505 3 170,000 170,000 West Rink low emissivity ceiling CA -1507 2 90,000 90,000 East Rink Locker Room Improv CA -1509 3 80,000 80,000 HVAC system upgrades CA -1510 2 225,000 225,000 Event Center Carpet EC -1901 3 200,000 200,000 Exhaust Capture System FD -1801 3 55,000 55,000 Library carpet replacement LIB -1901 3 80,000 80,000 Roberts Park -lighting improvements PARK -1601 1 350,000 350,000 North Park -tennis court improv PARK -1602 3 60,000 60,000 Locker room remodel PD -1901 4 75,000 75,000 Recreation Center Roof (gym area) PR -1701 2 250,000 250,000 Rec Center/Civic Arena Parking Lot PR -1702 3 640,000 640,000 Capital Projects Fund - Facilities Plan 360,000 590,000 600,000 730,000 995,000 3,275,000 Total Capital Projects Fund - Misc Infrastru� Pavement sealing/Seal coating SCFS/RP 3 250,000 250,000 500,000 Capital Projects Fund - Misc 250,000 250,000 500,000 Infrastructure Maint Total Community Improvement Fund Downtown Wayfnding Signage ADMIN -1601 3 50,000 50,000 Source Project# Priority 2017 2018 2019 2020 2021 Total Community Improvement Fund Total 50,000 50,000 Comuost Fund 1 Bituminous Improvements COW 1503 3 50,000 50,000 Bagging Line Upgrades COW 1504 3 35,000 30,000 65,000 Skidsteer Loader COW 1604 3 51,227 51,227 Mack truck (used) COW 1704 4 58,000 58,000 Turner- Face Replacement COW 1803 3 50,000 50,000 Mack truck (used) COW 1804 4 58,000 58,000 Stacking Conveyor (2 used) COW 1901 4 100,000 100,000 Walking Floor Trailer COW 1902 4 80,000 80,000 80,000 240,000 Forklift Replacement COMP -2001 3 35,000 35,000 1 ton 44 crewcab pickup COMP -2002 3 38,000 38,000 McCloskey Screener replacement COMP -2020 3 350,000 350,000 Core Switch Upgrade lT 1901 2 3,000 3,000 Compost Fund Total 143,000 189,227 183,000 503,000 80,000 1,098,227 Cooperative Agreement - HUC Survey Equipment ENGR-1801 4 20,265 20,265 Cooperative Agreement - HUC Total 20,265 20,265 Equipment Replacement - Heavy Fleetl Zamboni ice resurfacer CA -2101 3 140,000 140,000 Tractor/Loader/Backhoe CEMT002 3 84,413 84,413 Police Special Response Vehicle PD -1503 3 129,000 129,000 Tandem -axle Dump Truck STRT 12 3 95,668 101,494 197,162 Equipment Replacement - Heavy Fleet 129,000 95,668 84,413 241,494 550,575 Total Equipment Replacement - Small Fleet Cemetery mower CEMT001 4 25,504 25,504 51,008 1/2 ton work truck ENGR 100 3 27,000 27,000 1/2 ton work truck ENGR 101 3 29,504 29,504 Replace SUV ENGR 102 3 26,663 26,663 1/2 ton work truck ENGR 103 3 32,239 32,239 Rescue 8 - 1 ton truck FD -1901 3 40,000 40,000 Rescue 8 - slide -in skid unit FD -1902 3 12,000 72,000 Chevy crewcab 44 pickup truck (used) FD -1903 4 10,000 10,000 New Minivan lT 1501 4 24,586 24,586 1/2 Ton 42 pickup PARK -1604 3 24,000 24,000 John Deere tractor 4710 44 PARK -1702 3 61,000 61,000 1 ton 44 PARK -1703 4 48,000 48,000 1 ton 44 pickup PARK -1704 4 48,000 48,000 1/2 Ton 4X2 pickup PARK -1802 4 24,000 24,000 1 -ton 4x2w/flat dump PARK -1803 4 48,000 48,000 1/2 ton 42 pickup PARK -1804 4 29,500 29,500 1/2 Ton 4X4 Pickup PARK -1901 4 27,000 27,000 1/2 Ton 4X2 Pickup PARK -1902 4 27,000 27,000 3/4 -ton 44 pickup PARK -1903 4 38,500 38,500 Skid steer loader S250 used PARK -2001 4 42,000 42,000 Source Project# Priority 2017 2018 2019 2020 2021 Total John Deere mower 12 wide PARK -2002 4 73,000 73,000 Tractor, 4720 w/ cab PARK -2101 3 47,500 47,500 Squad car #2 replacement PD -1401 2 40,000 40,000 Squad car #6 replacement PD -1402 2 40,000 40,000 Squad Car #3 replacement PD -1501 2 41,500 41,500 Squad Car#7 replacement PD -1502 2 41,500 41,500 Squad car #5 replacement PD -1601 2 42,750 42,750 Squad car #8 replacement PD -1602 2 38,000 44,000 82,000 Replace Minivan PD -1703 4 19,000 19,000 New Chief vehicle PD -1902 4 24,500 24,500 New 3/4 ton 44 crew cab pickup PD -1903 4 24,500 24,500 SUV, Suburban 44 PD -2001 4 50,000 50,000 1 Ton 4x4w/aerial bucket STRT07 3 65,673 65,673 Brush chipper STRT04 2 43,845 43,845 1 -ton 44 truck w/ snowplow STRT08 3 45,895 40,598 86,493 Tractor w/ 12' mower STRT 10 3 35,453 35,453 1 -Ton flatbed truck STRT 11 4 47,271 47,271 1/2 Ton 44 pickup STRT 13 3 31,300 32,239 63,539 Skid steer loader STRT 18 3 46,000 46,000 1 -ton dump truck STRT 19 3 50,150 50,150 100,300 1 -ton Service truck STRT20 3 57,315 57,315 Equipment Replacement - Small Fleet 482,431 235,199 419,374 390,219 214,916 1,742,139 Total G.O. Improv Bonds - Debt Tax Levy SC Trunk Storm (local storm sewer) New const 02 3 600,000 600,000 Bluff St/Northwoods trail New const 04 4 250,000 250,000 South Grade Trail (Dale -Hwy 15 S) New const 05 4 247,934 247,934 Roberts St/Rd SW (McDonald to School) Partial 01 3 712,745 712,745 School Rd SW (Roberts -Hwy 7) Partial 02 3 65,400 65,400 Clinton Ave SW (Harrington -Merrill) Partial 03 3 128,450 128,450 Merrill St SW (SGR-Clinton) Partial 04 3 143,015 143,015 Neal Ave SW (Keith -Sunset) Partial 05 3 135,865 135,865 5th Ave SW/SE (Lynn Rd SW - Ontario St SE) Partial 08 3 519,015 519,015 Dale St SW (SGR-Roberts) Partial 09 3 451,205 451,205 Washington Ave W (Lynn -Main) Partial 10 3 161,460 161,460 Pavement Management Program PMP 2 290,000 290,000 290,000 290,000 290,000 1,450,000 Church St SW (SGR-Linden) Reclaim 05 3 172,690 172,690 Clinton Ave SW (Merrill -Lynn) Reclaim 06 3 86,295 86,295 Harrington St SW (SGR-Linden) Reclaim 07 3 172,975 172,975 Merrill St SW (Clinton -Linden) Reclaim 08 3 87,955 87,955 Neal Ave SW (Dale -Keith) Reclaim 09 3 63,025 63,025 Sunset St SW (SGR-Linden) Reclaim 10 3 178,955 178,955 Roberts Rd SW (School -Dale) Reclaim 12 3 540,865 540,865 Linden Ave SW (Dale -Harrington) Reclaim 14 3 320,000 320,000 McDonald Dr SW (Lakewood - School) Reclaim 15 3 421,200 421,200 Northwoods, Spruce, 11th Ave NE Reclaim 16 3 588,810 588,810 1stAve NE (Main -Adams) Reclaim 19 3 261,000 261,000 1 st Ave SE (Main -Adams) Reclaim 20 3 261,000 261,000 2nd Ave SW (Franklin -Main) Reclaim 21 3 104,400 104,400 Grove St SW (2nd -Washington) Reclaim 22 3 203,000 203,000 Hassan St (5th Ave S -1st Ave N) Reclaim 23 3 600,640 600,640 2nd Ave SE Bridge Recon 01 3 284,500 284,500 Century Ave SE (Hwy 15 -Jefferson) Recon 02 3 78,280 78,280 Source Project# Priority TH 15/Main St Reconstruction Recon 03 2 G.O. Improv Bonds - Debt Tax Levy Total G O Stormwater Bonds � 2017 2018 2019 2020 2021 Total 450,000 450,000 1,856,944 2,044,160 1,928,060 1,839,810 2,071,705 9,740,679 South Central Trunk Storm (Pond & Ballfelds) Newconst 07 3 800,000 G.O. Stormwater Bonds Total General Fund 800,000 800,000 800,000 Survey Equipment Upgrades ENGR01 4 Survey Equipment ENGR-1801 4 PPE Washer & Drying Equip FD -1702 3 20,500 Breathing Air Pack Replacement (SCBA) FD -1704 2 13,500 Generator City Center lT 1701 4 30,000 Virtual Server Refresh /T 1801 4 Core Switch Upgrade lT 1901 2 Dustless Sandblasting Equipment STRT 002 4 General Fund Total General Fund (Perpetual Care Fund) Cemetery Fencing/Roadway CEMT 01 3 General Fund (Perpetual Care Fund) 43,785 Total 20,500 (Grants - Federal 13,500 Seal pavements AIRP 00 2 T -Hangar Site Preparation AIRP 07 3 Breathing Air Pack Replacement (SCBA) FD -1704 2 Roberts St/Rd SW (McDonald to School) Partial 01 3 School Rd SW (Roberts -Hwy 7) Partial 02 3 Century Ave SE (Hwy 15 -Jefferson) Recon 02 3 Grants - Federal Total (Grants - Other Tip up joint sealant replacement HATS 01 4 Pavement repairs, seal coat HATS 02 3 Pond excavation, ditch shaping HATS 03 4 Stormceptor for wash area HATS 04 Bluff St/Northwoods trail Now const 04 Grants - Other Total 150,000 Grants - State T -Hangar Construction AIRP 02 Tip up joint sealant replacement HATS 01 4 Pavement repairs, seal coat HATS 02 3 Pond excavation, ditch shaping HATS 03 4 Stormceptor for wash area HATS 04 33,650 33,650 43,785 43,785 240,435 20,500 10,000 13,500 10,000 30,000 18,000 18,000 31,000 31,000 50,000 50,000 64,000 4 4 4 4 145,435 31,000 240,435 10,000 10,000 10,000 10,000 10,000 50,000 10,000 10,000 10,000 10,000 10,000 50,000 162,000 162,000 240,000 240,000 121,500 121,500 50,000 50,000 150,000 150,000 836,000 836,000 321,500 998,000 240,000 11559,500 4,666 4,666 10,000 10,000 11,666 11,666 21,666 21,666 200,000 200,000 14,666 33,332 200,000 247,998 1,000,000 11000,000 4,667 4,667 10,000 10,000 11,667 11,667 21,667 21,667 Source Project# Priority 2017 2018 2019 2020 2021 Total 2nd Ave SE Bridge Recon 01 3 665,000 665,000 TH 15/Main St Reconstruction Recon 03 2 5,000,000 51000,000 Grants - State Total 679,667 33,334 6,000,000 6,713,001 HATS Fund (City only) Tip up joint sealant replacement HATS 01 4 4,667 4,667 Pavement repairs, seal coat HA TS O2 3 10,000 10,000 Pond excavation, ditch shaping HA TS 03 4 11,667 11,667 Stormceptor for wash area HA TS O4 4 21,667 21,667 HATS Fund (City only) Total 14,667 33,334 48,001 Lease Purchase Grinder replacement COW 1703 3 450,000 450,000 Compost Turner Replacement COMP -2101 3 500,000 500,000 Lease Purchase Total 450,000 500,000 950,000 Liquor Fund Core Switch Upgrade lT 1901 2 3,000 3,000 Security Camera System Update LIQ -1601 3 20,000 20,000 Liquor Fund Total 20,000 3,000 23,000 Municipal State Aid School Rd SW (Roberts -Hwy 7) Partial 02 3 700,000 700,000 5th Ave SW/SE (Lynn Rd SW - Ontario St SE) Partial 08 3 400,000 400,000 Dale St SW (SGR-Roberts) Partial 09 3 500,000 500,000 Washington Ave W (Lynn -Main) Partial 10 3 500,000 500,000 2nd Ave SE Bridge Recon 01 3 200,000 200,000 Century Ave SE (Hwy 15 -Jefferson) Recon 02 3 164,000 164,000 TH 15/Main St Reconstruction Recon 03 2 1,000,000 71000,000 Municipal State Aid Total 700,000 364,000 400,000 1,000,000 1,000,000 3,464,000 Pool Project - Capital Projects Fund PoolANaterpark improvements PR -1601 2 1,000,000 71000,000 Pool Project - Capital Projects Fund 1,000,000 11000,000 Total Pool Project - Community Improveme PoolANaterpark improvements PR -1601 2 900,000 900,000 Pool Project - Community Improvement 900,000 900,000 Fund Total (Pool Project - General Fund Reserves PoolANaterpark improvements PR -1601 2 500,000 500,000 Source Project# Priority 2017 2018 2019 2020 2021 Total Pool Project - General Fund Reserves 500,000 500,000 Total Pool Project - Interfund Loan PoolANaterpark improvements PR -1601 2 750,000 750,000 Pool Project - Interfund Loan Total 750,000 750,000 Refuse Fund Stacking Conveyor REFS -1601 3 45,000 45,000 Leaf Vacuum REFS -1701 3 45,374 45,374 Airlift Separator for plastics REFS -1703 3 50,000 50,000 Tipping Building Remediation REFS -1704 1 150,000 150,000 Truck, TA w/hooklift REFS -1801 3 85,000 85,000 Walking Floor Trailer REFS -1901 3 91,500 91,500 Forklift Replacement REFS -2101 3 35,000 35,000 Refuse Fund Total 290,374 85,000 91,500 35,000 501,874 Rural Fire Dept Fund Rescue 8 - 1 ton truck FD -1901 3 40,000 40,000 Rescue 8 - slide -in skid unit FD -1902 3 12,000 72,000 Rural Fire Dept Fund Total 52,000 52,000 Sale or Trade in of Equipment Grinder replacement COW 1703 3 50,000 50,000 Sale or Trade in of Equipment Total 50,000 50,000 (Special Assessments Roberts St/Rd SW (McDonald to School) Partial 01 3 410,000 410,000 School Rd SW (Roberts -Hwy 7) Partial 02 3 510,000 510,000 Clinton Ave SW (Harrington -Merrill) Partial 03 3 30,700 30,700 Merrill St SW (SGR-Clinton) Partial 04 3 33,660 33,660 Neal Ave SW (Keith -Sunset) Partial 05 3 32,285 32,285 5th Ave SW/SE (Lynn Rd SW - Ontario St SE) Partial 08 3 344,000 344,000 Dale St SW (SGR-Roberts) Partial 09 3 500,000 500,000 Washington Ave W (Lynn -Main) Partial 10 3 365,017 365,017 Pavement Management Program PMP 2 63,223 63,223 63,223 63,223 63,223 316,115 Church St SW (SGR-Linden) Reclaim 05 3 39,510 39,510 Clinton Ave SW (Merrill -Lynn) Reclaim 06 3 19,755 19,755 Harrington St SW (SGR-Linden) Reclaim 07 3 39,375 39,375 Merrill St SW (Clinton -Linden) Reclaim 08 3 19,845 19,845 Neal Ave SW (Dale -Keith) Reclaim 09 3 23,228 23,228 Sunset St SW (SGR-Linden) Reclaim 10 3 40,645 40,645 Roberts Rd SW (School -Dale) Reclaim 12 3 121,635 121,635 Linden Ave SW (Dale -Harrington) Reclaim 14 3 180,000 180,000 McDonald Dr SW (Lakewood - School) Reclaim 15 3 225,000 225,000 Northwoods, Spruce, 11th Ave NE Reclaim 16 3 129,190 129,190 1stAve NE (Main -Adams) Reclaim 19 3 56,901 56,901 1st Ave SE (Main -Adams) Reclaim 20 3 56,901 56,901 Source Project# Priority 2nd Ave SW (Franklin -Main) Reclaim 21 3 Grove St SW (2nd -Washington) Reclaim 22 3 Hassan St (5th Ave S-1 st Ave N) Reclaim 23 3 Century Ave SE (Hwy 15 -Jefferson) Recon 02 3 TH 15/Main St Reconstruction Recon 03 2 Special Assessments Total 44,256 Storm Water Utility Fund Wash bay / Water fill station HATS 05 4 Roberts St/Rd SW (McDonald to School) Partial 01 3 School Rd SW (Roberts -Hwy 7) Partial 02 3 Clinton Ave SW (Harrington -Merrill) Partial 03 3 Merrill St SW (SGR-Clinton) Partial 04 3 Neal Ave SW (Keith -Sunset) Partial 05 3 5th Ave SW/SE (Lynn Rd SW - Ontario St SE) Partial 08 3 Dale St SW (SGR-Roberts) Partial 09 3 Washington Ave W (Lynn -Main) Partial 10 3 Pavement Management Program PMP 2 Church St SW (SGR-Linden) Reclaim 05 3 Clinton Ave SW (Merrill -Lynn) Reclaim 06 3 Harrington St SW (SGR-Linden) Reclaim 07 3 Merrill St SW (Clinton -Linden) Reclaim 08 3 Neal Ave SW (Dale -Keith) Reclaim 09 3 Sunset St SW (SGR-Linden) Reclaim 10 3 Roberts Rd SW (School -Dale) Reclaim 12 3 Linden Ave SW (Dale -Harrington) Reclaim 14 3 McDonald Dr SW (Lakewood - School) Reclaim 15 3 Northwoods, Spruce, 11th Ave NE Reclaim 16 3 1stAve NE (Main -Adams) Reclaim 19 3 1st Ave SE (Main -Adams) Reclaim 20 3 2nd Ave SW (Franklin -Main) Reclaim 21 3 Grove St SW (2nd -Washington) Reclaim 22 3 Hassan St (5th Ave S-1 st Ave N) Reclaim 23 3 Century Ave SE (Hwy 15 -Jefferson) Recon 02 3 TH 15/Main St Reconstruction Recon 03 2 Leaf Vacuum STWT 001 3 Mechanical Street Sweeper STWT 002 3 Skid steer loader STWT 003 3 Storm Sewer System Repairs STWT01 3 Ridgewater College Flood Study STWT 02 4 Alan Street outfall management STWT 03 3 Bradford St SE flood improvement STWT 04 3 9th Ave NW flood improvement STWT 05 3 Greens pond improvement STWT 06 3 Bridgewater pond improvement STWT07 4 Storm Water Utility Fund Total 10,000 10,000 10,000 Wastewater Fund Wash bay / Water fill station HATS 05 4 Core Switch Upgrade IT -1901 2 Roberts St/Rd SW (McDonald to School) Partial 01 3 School Rd SW (Roberts -Hwy 7) Partial 02 3 2017 2018 2019 2020 2021 Total 33,333 33,333 3,000 3,000 75,000 75,000 120,000 120,000 22,760 22,760 44,256 44,256 113,010 113,010 550,220 550,220 200,000 200,000 1,104,858 796,288 908,381 449,314 1,165,167 4,424,008 33,334 33,334 50,000 50,000 60,000 60,000 12,500 72,500 13,900 13,900 13,500 13,500 15,000 15,000 45,000 45,000 40,000 40,000 10,000 10,000 10,000 10,000 10,000 50,000 14,200 14,200 7,100 7,100 14,500 14,500 7,200 7,200 5,130 5,130 15,000 15,000 28,500 28,500 20,000 20,000 24,000 24,000 31,000 31,000 9,000 9,000 9,000 9,000 3,600 3,600 7,000 7,000 5,000 5,000 80,000 80,000 450,000 450,000 98,346 53,732 152,078 175,579 175,579 17,000 17,000 20,000 20,000 20,000 20,000 20,000 100,000 12,000 72,000 40,000 40,000 100,000 100,000 75,000 75,000 20,000 20,000 30,000 30,000 185,500 329,746 473,209 540,000 256,666 1,785,121 33,333 33,333 3,000 3,000 75,000 75,000 120,000 120,000 Source Project# Priority 2017 2018 2019 2020 2021 Total Clinton Ave SW (Harrington -Merrill) Partial 03 3 12,500 72,500 Merrill St SW (SGR-Clinton) Partial 04 3 13,850 13,850 Neal Ave SW (Keith -Sunset) Partial 05 3 13,250 13,250 5th Ave SW/SE (Lynn Rd SW - Ontario St SE) Partial 08 3 100,000 100,000 Dale St SW (SGR-Roberts) Partial 09 3 86,000 86,000 Washington Ave W (Lynn -Main) Partial 10 3 85,000 85,000 Pavement Management Program PMP 2 25,000 25,000 25,000 25,000 25,000 125,000 Church St SW (SGR-Linden) Reclaim 05 3 14,150 14,150 Clinton Ave SW (Merrill -Lynn) Reclaim 06 3 7,100 7,100 Harrington St SW (SGR-Linden) Reclaim 07 3 14,250 14,250 Merrill St SW (Clinton -Linden) Reclaim 08 3 7,150 7,150 Neal Ave SW (Dale -Keith) Reclaim 09 3 5,135 5,135 Sunset St SW (SGR-Linden) Reclaim 10 3 14,500 14,500 Roberts Rd SW (School -Dale) Reclaim 12 3 52,000 52,000 Linden Ave SW (Dale -Harrington) Reclaim 14 3 40,000 40,000 McDonald Dr SW (Lakewood - School) Reclaim 15 3 40,000 40,000 Northwoods, Spruce, 11th Ave NE Reclaim 16 3 56,000 56,000 1stAve NE (Main -Adams) Reclaim 19 3 22,500 22,500 1st Ave SE (Main -Adams) Reclaim 20 3 22,500 22,500 2nd Ave SW (Franklin -Main) Reclaim 21 3 9,000 9,000 Grove St SW (2nd -Washington) Reclaim 22 3 17,500 17,500 Hassan St (5th Ave S -1st Ave N) Reclaim 23 3 10,000 10,000 Century Ave SE (Hwy 15 -Jefferson) Recon 02 3 130,000 130,000 TH 15/Main St Reconstruction Recon 03 2 650,000 650,000 Pavement repairs & maintenance W/WW07 3 13,750 13,750 13,750 13,750 13,750 68,750 Water Meter Replacement Program WA TR 03 3 50,000 50,000 50,000 150,000 Pumps & Generators WWTF001 2 31,827 18,008 49,835 Tractor Mower WWTF 004 1 19,123 19,123 1 Jon truck w/plow WWTF 005 2 38,267 38,267 Utility vehicle WWTF 006 4 13,000 13,000 Utility vehicle WWTF 007 4 10,692 10,692 Work truck WWTF 008 3 31,300 32,239 63,539 Pressure Washer WWTF 009 3 15,000 15,000 Harmony Ln Lift Station WWTF 07 4 40,000 40,000 Biosolids Spreader WWTF010 3 35,822 35,822 Boiler Replacement (10 or 90) WWTF 02 3 70,000 70,000 MBR Cassette Replacement WWTF 03 3 400,000 400,000 HVAC system upgrade WWTF 04 4 80,000 80,000 Grit Removal System (30) WWTF 05 3 225,000 225,000 WWTF SCADA Upgrade WWTF 06 3 150,000 150,000 Biosolids Handling WWTF 07 3 500,000 500,000 Lift station repairs & upgrades WWTF 08 3 50,000 50,000 50,000 50,000 50,000 250,000 Additional MBR cassettes WWTF 09 4 160,000 160,000 Dry storage warehouse/garage WWTF 10 4 35,000 35,000 MBR blower upgrade WWTF 11 4 100,000 100,000 Oxidation ditch Aiero 2 bridges WWTF 12 4 200,000 200,000 Wastewater Fund Total 1,275,577 471,873 571,602 1,198,550 935,144 4,452,746 Water Fund Wash bay / Water fill station HATS 05 4 33,333 33,333 Core Switch Upgrade /T_ 1901 2 3,000 3,000 Roberts St/Rd SW (McDonald to School) Partial 01 3 75,000 75,000 School Rd SW (Roberts -Hwy 7) Partial 02 3 120,000 120,000 Clinton Ave SW (Harrington -Merrill) Partial 03 3 12,500 72,500 Source Project# Priority Merrill St SW (SGR-Clinton) Partial 04 3 Neal Ave SW (Keith -Sunset) Partial 05 3 5th Ave SW/SE (Lynn Rd SW - Ontario St SE) Partial 08 3 Dale St SW (SGR-Roberts) Partial 09 3 Washington Ave W (Lynn -Main) Partial 10 3 Pavement Management Program PMP 2 Church St SW (SGR-Linden) Reclaim 05 3 Clinton Ave SW (Merrill -Lynn) Reclaim 06 3 Harrington St SW (SGR-Linden) Reclaim 07 3 Merrill St SW (Clinton -Linden) Reclaim 08 3 Neal Ave SW (Dale -Keith) Reclaim 09 3 Sunset St SW (SGR-Linden) Reclaim 10 3 Roberts Rd SW (School -Dale) Reclaim 12 3 Linden Ave SW (Dale -Harrington) Reclaim 14 3 McDonald Dr SW (Lakewood - School) Reclaim 15 3 Northwoods, Spruce, 11th Ave NE Reclaim 16 3 1stAve NE (Main -Adams) Reclaim 19 3 1st Ave SE (Main -Adams) Reclaim 20 3 2nd Ave SW (Franklin -Main) Reclaim 21 3 Grove St SW (2nd -Washington) Reclaim 22 3 Hassan St (5th Ave S-1 st Ave N) Reclaim 23 3 Century Ave SE (Hwy 15 -Jefferson) Recon 02 3 TH 15/Main St Reconstruction Recon 03 2 Pavement repairs & maintenance W/WW 07 3 Garage roof replacement WA TR 02 3 Water Meter Replacement Program WA TR 03 3 WATR SCADA Upgrade WA TR 04 3 Roof& building repairs WA TR 05 3 Replace CIP pump VFD WA TR 07 3 WeII #6 Cleaning WA TR 08 3 WeII #5 Cleaning WA TR 09 3 High bay lighting WA TR 10 4 1/2 ton work truck WA TR 100 3 Replace HSP #2 VFD WA TR 11 3 WeII #5 Rehabilitation WA TR 12 3 WeII #8 Rehabilitation WA TR 13 3 Water Fund Total 2017 2018 2019 2020 2021 Total GRAND TOTAL 11,940,934 7,968,611 6,680,174 14,210,643 8,099,414 48,899,776 13,850 13,850 13,250 13,250 100,000 100,000 86,000 86,000 85,000 85,000 25,000 25,000 25,000 25,000 25,000 125,000 14,150 14,150 7,100 7,100 14,250 14,250 7,150 7,150 5,135 5,135 14,500 14,500 52,000 52,000 40,000 40,000 40,000 40,000 56,000 56,000 22,500 22,500 22,500 22,500 9,000 9,000 17,500 17,500 10,000 10,000 130,000 130,000 650,000 650,000 13,750 13,750 13,750 13,750 13,750 68,750 10,000 10,000 150,000 150,000 150,000 450,000 100,000 100,000 20,000 20,000 15,000 15,000 90,000 90,000 90,000 90,000 16,000 16,000 27,000 32,239 59,239 15,000 15,000 80,000 80,000 80,000 80,000 427,750 407,750 494,635 948,250 594,322 2,872,707 GRAND TOTAL 11,940,934 7,968,611 6,680,174 14,210,643 8,099,414 48,899,776 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Ordinance No. 16-0762 - Authorizing Franchise Agmt. with Caribou Coffee Department: Legal LICENSE SECTION Meeting Date: 7/26/2016 Application Complete N/A Contact: Marc A. Sebora Agenda Item Type: Presenter: Marc A. Sebora Reviewed by Staff ❑ Public Hearing Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: At the June 14, 2016, City Council meeting, the City Council approved the site plan and other documents for Caribou Coffee/Einstein Bagels to be located on the southwest corner of Century Avenue and Highway 15. The site plan for Caribou Coffee included the use of a portion of the City's right-of-way along Century Avenue for access and traffic flow around the new Caribou Coffee building. Attached for your consideration is a franchise agreement between the City of Hutchinson and 1100 Highway 15 S, LLC, the owner of the Caribou Coffee business, which would allow Caribou Coffee to utilize city right-of-way for these purposes. The main components of the franchise agreement are: • a term of 20 years • liability insurance to be provided by 1100 Highway 15 S, LLC in the amount of $1.5 million per occurrence • the franchise is revoked should 1100 Highway 15 S, LLC cease to do business on the property for a year or more • the franchise must be recorded at the McLeod County Recorder's office There is one other item for your consideration. The City has at times, but not always, required a franchise holder to pay a fee. If you'd like to impose a franchise fee either as a one-time cost or on an annual basis that certainly is your prerogative. I have communicated to the franchise applicant the possibility of the implementation of such a fee. I have not heard back one way or the other from the franchise applicant as to this possibility. Staff would recommend approval of the franchise agreement either with, or without, the franchise fee. BOARD ACTION REQUESTED: Hold first reading and set public hearing and second reading and adoption of Ordinance No. 16-0762 for August 9, 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. 16-762 Publication No. AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, GRANTING 1100 HIGHWAY 15 S, LLC THE RIGHT TO ENCROACH IN PUBLIC RIGHT OF WAY ON CENTURY AVENUE, EAST OF STATE HIGHWAY NO. 15 THE CITY OF HUTCHINSON ORDAINS: Section 1. The City of Hutchinson, in the County of McLeod, State of Minnesota, hereafter referred to as Grantor, hereby grants 1100 Highway 15 S, LLC, a Minnesota limited liability company, hereafter referred to as Grantee, a franchise to place and construct certain drive aisles into the right of way of Century Avenue, as drawn in Exhibit A, on certain property owned by the City of Hutchinson, described as follows: SEE ATTACHED EXHIBIT "A" Section 2. The franchise is granted for a term of 20 years commencing on the date of the acceptance of the franchise. Grantee shall file a written acceptance of the franchise with the City Administrator of the City of Hutchinson within thirty (30) days after the effective date of this ordinance. The franchise shall become effective only when the acceptance has been filed and evidence of the general liability insurance to be maintained by Grantee, as provided for in this grant of franchise, has been delivered to the City of Hutchinson. Section 3. Grantor reserves the right to enforce reasonable regulations concerning construction, operation and maintenance of facilities located along, over and under the public premises before mentioned and the placement of such facilities. Section 4. Grantee shall indemnify and defend Grantor, its boards, commissions, officers, agents and employees, in any and all other public agencies, and their members, officers, agent and employees (the "Indemnified Parties"), against any and all liabilities for injury to or death of any person or any damage to any property caused by Grantee, its officers, agents or employees in the construction, operation or maintenance of its property, or arising out of the exercise of any right or privilege under the franchise, but specifically excluding all liabilities caused by or attributable to the gross negligence or willful misconduct of Grantor or any other Indemnified Party. Section 5. At all times during the term of the franchise, Grantee will, at its own expense, maintain in force general liability insurance, with an insurance company and with policy limits approved by the City of Hutchinson of not less than $1,500,000.00 per occurance which approval shall not be unreasonably withheld, conditioned or delayed, such policies, being for the protection of Grantor and its officers, agents and employees, against liability for loss or damage for bodily injury, death or property damage occasioned by the activities of the grantee under the franchise, shall name the City of Hutchinson as an additional insured. 081249\014\4466238.v1 Section 6. Grantee shall not have the right to assign the franchise or otherwise transfer it in any manner whatsoever or sell, lease, license, mortgage or permit others to use in any manner whatsoever any interest in all or any part of its facilities that are installed or operated under this grant, except on prior written approval by ordinance of the City Council of the City of Hutchinson. Notwithstanding the foregoing, any tenant of the improvements now or hereafter located on Grantee's property (including, without limitation, Caribou Coffee & Einstein Bros. Bagels), and their customers and invitees, shall be entitled to utilize any and all rights available to Grantee under the franchise. Section 7. In the event that 1100 Highway 15 S, LLC should cease to exist or should fail to use the franchise for one consecutive calendar year, this franchise shall be deemed null and void and shall revert to the City of Hutchinson without any action on the part of the City of Hutchinson whatsoever. Section 8. The City may at the point of expiration of this franchise request that the encroachments be removed form the rights of way at the Grantee's expense. Section 9. 1100 Highway 15 S, LLC shall record this franchise agreement with dthe McLeod county Recorder's office within 30 of its acceptance by 1100 Highway 15 S, LLC. Section 10. This ordinance shall take effect from and after passage and publication, subject to the provision above requiring written acceptance by 1100 Highway 15 S, LLC. [Remainder of Page Intentionally Left Blank] Adopted by the City Council, this day of , 2016. Mayor Attest: City Administrator Published in the Hutchinson Leader on First Reading: Second Reading: LOT 2 BLOCK 2 i ul LOT 6 / - _--��- - Hero e / / I 6,3, BLOCK Sl � pow T � 112 LOT 2 BLOCK 1 LOT 1 PADEN FIRST ADDITION n D T LJ Q z 0=9 N . cNu eY,es SL�� '—llg �n a—w�." t — ooR paaY. CAMPION m�qr m•a CARIBOU ENGINEERING my set mpwvwm ad MR n�..ay.orwY�wEaan.. ABG REAL PROPERTIES HOLDINGS, LLC SERVICES, INC. E—Yat memietaiRanpmmgmn waate P. cYeaae —ue. ettYYn Data: HUTCHINSON, MN 4 ORMMa SANE Y RFT PROJECT Y0: ENCROACHMENT EXHIBIT 16-014 SHEET NO. 1 IAT04/22/2016 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Approval of Paving Project at Creekside Department: Compost LICENSE SECTION Meeting Date: 7/26/2016 Application Complete N/A Contact: Andy Kosek Agenda Item Type: Presenter: Andy Kosek Reviewed by Staff ✓❑ New Business Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As part of a several year long internal department pavement management plan, staff has publicly advertised the request to receive quotes on pavement repair work at the Creekside Composting Facility Facility. Areas #1, 2 and 3 on the attached map are the areas to be repaired. It is also an opportune time to install drainage pipe under area #1 that will run from a storm sewer catch basin to each corner of the Tipping Building. The purpose of this pipe is to collect rain water run-off from the building's rain gutter downspouts to prevent sub-grade saturation and heaving, and potential cracking, of the new bituminous surfaces during freeze/thaw cycles. See attached sketch for pipe orientation. Creekside has budgeted for and allocated funds towards pavement repair and maintenance in years 2014-2017, this year's project is phase 3 of 4. As in the past, this project was not included in the Public Works Pavement Management Plan due to the work to be performed being within an enterprise fund department. Expenses will be accounted for out of the appropriate fund, Compost and Refuse. Staff received quotes from two contractors, WM Mueller & Sons, Inc. and Duininck Inc Total project quotes received are as follows- WM Mueller & Sons, Inc- $76,575.05 Duininck, Inc- $76,972.65 BOARD ACTION REQUESTED: Approval of the Paving Project at Creekside to WM Mueller & Sons Inc Fiscal Impact: $ 76,575.05 Funding Source: Compost $38,288 / Refuse $38,287 FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 76,575.05 Total City Cost: $ 76,575.05 Funding Source: Compost $38,288 / Refuse $38,287 Remaining Cost: $ 0.00 Funding Source: Ar I I N IN, I NZ P AREA 2 NEW BIT 51 SY r*4. 4L REMOVE OLLARDS (4) ApA % VI AREA 3 NEW BIT 37 SYrs.�l �� l3t4 SCALE A V Each pipe is to enter the catch basin through core drilled hales and grouted and/or calked to provide a water tight seal. Tees are to be installed at the upgrad ient ends of the pipes with a riser installed to the directly capture the discharge from the downspouts nearest the corners of the building. The open end of the tees will need to be capped for future extension of the pipe along the building to capture additional downspouts. Additional elbows and fittings may be needed to properly orient the pipe so the risers can receive the downspouts directly. n. ■ 111►1► F.Al. . 2016 CREEKSIDE - 24" SECTION -4" BITUMINOUS20" CLASS 5 BIT -CON ON FABRIC CREEKSIDE 2016 Internal Estimate CREEKSIDE 2016 WM Mueller & Sons CREEKSIDE 2016 Duininck Inc Item No. Spec. Ref. Description Unit Quantity Unit Price Amount Unit Price Amount Unit Price Amount 1 2104.505 RFMOVE BITUMINOUS PAZ'IIMEINT SY 1620 $3.35 $5,427.00 $2.25 $3,545.00 $3.40 $5,508.00 2 2104.515 ItI'NIUVI:(:ONCRI PFsPAVI WENT SY 88 $3.35 $294.80 $12.00 $1,056.00 $9.90 $871.20 3 2104.505 RI MOVE: BOLLARDS EA 4 $150.00 $600.00 $125.00 $500.00 $145.00 $580.00 4 2104.505 SALVAGE' AN13 REINSTALL BOLLARDS BOLLARW EA 4$200.00 $800.00 $375.00 $1,500.00 $285.00 $1,140.00 5 2104.513 SAWING BITUMINOUSIULLDEPT1 D LF 530 $3.00 $1,590.00 $2.50 $1,325.00 $3.25 $1,722.50 6 2105.501 COMMON EXCAV.-1'110N (L -'r Cy 1139 $15.90 $18,110.10 $10.75 $12,244,25 $7.70 $8,770.30 7 2105.604 GIATE3tii'I'll.Ii FAMUC IYPL 5 SY 1708 $2.00 $3,416.00 $1.45 $2,476,60 $1.60 $2,732.80 8 2112.614 SU13GRADE' I BASH PREsPARA'1'10N SY 1708 $1.80 $3,074.40 $2.00 $3,416.00 $0.95 $1,622.60 9 2211.607 AGGREGATE. BASE. Sl'Ii[;I A], C\o FROM STOCKPTLE' 31T -CO CY 949 $16.55 $15,705.95 $12.20 $11,577.80 $12.45 $11,815.05 10 2357.502 BITUMINOUS MATERIAL 1'[ 1R'1'ACK [:OAT GA 140 $4.00 $560.00 $3.00 $420.00 $3.25 $455.00 11 2:560.503 'IYPH 1,1)WHA24013 WI.,'ARIN(; [;OURS]- MWl'URI 1.5" SY 1708 $9.10 $15,542.80 $7.20 $12,297.60 $9.00 $15,372.00 12 2360.5113 STINWB2317B WEARING COURSE MIXTURE- 2.5" SY 1708 $14.20 $24,253.60 $12.10 $20,666.80 $12.90 $22,033.20 13 2563.6+01 TRAFFIC CONTROL LS 1 $350.00 $350.00 $500.00 $500.00 $575.00 $575,00 14 2573.5411 Ill:i'IsA I,[7[ ,'I1I'Is RO(W LF 10 $5.00 $50.00 $10.00 $100.00 $15.00 $150.00 TOTAL- $89,774.65 $71,725.05 $73,347.65 Altemate 1 2563.601 8" PVC PIPE DRAIN "OR ROOF DRAINS INCLUDES 2 RISL;RS & 2 8" X 8"'i'l.sl S LF 180 $27.00 $4,860.00 $23.00 $4,140.00 $16.25 $2,925.90 2 2573.5410 1;ONNI-1-GT IO EXISTING DRAINAGE SIRU{:PURI: EA 2 $200.001 $400.00 $355.00 $710.00 $350.00 $700,00 ALTERNATE TOTAL $5 260.00 $4,850.00 $3,625.00 PROJECT TOTAL $95,034.65 $76,575.05 $76,972.65 Project completion window AUGUST 15th 2016 to SEPTEMBER 23rd, 2016 Quotes due 6y noon July 13th, 2016 7016 CREEKSIDE - 24" SECTION - 4" BITUMiNOUS20" CLASS 5 BIT -CON ON FABRIC Item No. Spec. Ref. Description Unit I Quartityl Unit Price Amount 1 2104,505 REMOVE BITUMINOUS PAVEMENT SY 16201 $2.25 $3,645.00 2 2144,505 REMOVE CONCRETE PAVEMENT SY 88 $12.00 $1,056.00 3 2104.505 REMOVE BOLLARDS EA 4 $12&00 $500.40 4 2104.505 SALVAGE AND REINSTALL BOLLARDS BOLLARDS EA 4 $375-00 $1,500.00 5 2104.513 SAWING BITUMINOUS LL DEM LF 530 $2.50 $1,325.00 6 2105.501 COMMON EXCAVATION CY 1138 $10.75 $12,244.25 7 2105.604 GEOTEXTI E FABRIC TYPE 5 SY 1708 $1.45 $2,476-60 8 2112.604 SUBGRADE I BASE PREPARATION SY 1708 $2.00 $3,416.00 9 2211.607 AGGREGATE BASE SPECIAL FROM STOCAPELE IT -CON) CY 949 $12.20 $11,577.80 10 2357.502 BITLJMINOUS MATERIAL FOR TACK COAT GA 140 $3.00 $420.00 11 2360.503 TYPE SPWEA240B WEARING COLTRSE MIXTLTR.E- 15 SY 1708 $7.20 $12,297.60 12 2360.503 TYPE SPNWB230B WEARING COURSE MIXTURE(2.5")-_SY 17081 $12.10 $20,666.80 13 2563.601 TRAFFIC CONTROL LS 1 1 $500.00 $500.00 14 2573,540 FELTER LOG, TYPE ROCK LF 10 $10.00 $100.00 TOTAL - $71,725.05 Alternate 1 2563.601 8" PVC PIPE DRAIN OR ROOF DRAIN INCLUDES 2 RISERS & 2 8'X 8"T EE LF 180 $23.00 $4,140-00 2 1 2573.540 CONNECT TO EXISTING DRAINAGE STRUCTURE EA 2 $355.00 $710.00 ALTERNATE TOTAL $4,850.00 Project completion window AUGUST lith 2016 to SEPTEMBER 23rd, 2016 Quotes due W noon Julyl3th. 2016 TOTAL $76,575-05 1�, t331 PARK AVE P. X,247 vHAMBUKU, MN *5339 pm -2720 HAMBURG , M N FAX 952467-3894 CONTACT. Cofy Hoememann w mueller.com 2016 CREEKSIDE - 24" SECTION - 4" BITUMINOUS20" CLASS 5 BIT -CON ON FABRIC CREEKSIDE 2016 Item No. Spec. Ref. Description Unit Quantity Unit Price Amount 1 2104.505 itEMOVE 131'1 UMIN[}L15 PAVI-AWNT SY 1620 $3.44 $5,508.00 1620 2 2104.505 RT?M01V1: (:[]N(:R[sl'[: 1'A1'1iA41iN 1' SY 88 $9.94 $871.20 88 3 2104.5[}5 RI?iGIMF BOLLARDS EA 4 $145.04 $580.00 4 4 21(14.505 ;,UXAt;li AND RLi1N1,','i'A1.1. BOLLARDS BOLLARDS EA 4 $285.00 $1,140.00 4 5 2104.513 S,MING 3111TMINOUS DULL DF]"111 LF 530 $3.25 $1,722.50 530 6 2105.501 COMMON kXCAVAT10N 0-'V} CY 1139 $7.70 $8,770.30 1139 7 2105.6114 5 SY 1708 $1.60 $2,732.84 1708 8 2112.04 SU B(' / BASH PRl?PARATION SY 1708 $0.95 $1,622.64 1708 9 2211.607 AG, GRI"G, ATI "I Iir1Sl": SPIi[:lA1, ((. 1-R(}Nl S"['[)[;K1111.1: (BTT -CON) CY S49'i $12.45 $11,815.05 949 10 2357.502 BITUM US MATI 'R1 Al. F(.}R TM:K COAT GA 140 $3.25 $455.00 140 11 1 2360.503 1'Yl'I. Sl1WEA240BWHA RING COU RSI•: hIXTLIR1 (1.5") SY 1748 $9.00 $15,372.00 1708 12 2360.503 TY111: SPNVVB230B V['f ARINC; [;C URSIi MIXTIJRI: 2.51} SY 1748 $112.90 $22,033.24 1708 13 2563.601 TRA 11 1(: (:MTROJ. LS 1 $575.00 $575.00 1 14 2573.540 FILTER I,(}(;• "I'YVI: ROCK LF 10 $15.00 $150.00 10 TOTAL - $73,347.65 Alternate 1 2563.601 8" P1'(: T11 M; I]RAIN (1'( )R ROOF DRAINS) INCLUI71?S 2 RISURS & 2 8" X 8" -I'I'J:S LF 180 $16.25 $2,925.00 180 2 2573.540 (.()NNH(:T I'() I•:k1M'IN{. EA 2 $350.00 $700.00 2 ALTERNATE TOTAL $3,625.00 Project completion window AUGUST 15th 2016 to SEPTEMBER 23rd, 2016 Quotes due by noon July 13th, 2016 TOTAL $76,972.65 DUININCK INC PRINSBURG MN LUCAS POST 320.212.9319 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Consideration of Public Woks equipment acquisitions Department: PW LICENSE SECTION Meeting Date: 7/26/2016 Application Complete N/A Contact: John Olson Agenda Item Type: Presenter: John Olson Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: 2-for-1 WHEEL LOADER TRANSACTION Working with the Fleet Committee, Creekside, Parks, and Public Works determined it would be feasible to further reduce the Clty's wheel loader fleet. This proposed transaction reduces the number of wheel loaders to six. As recently as 2013, the Clty had eight wheel loaders. Reduction of the loader fleet has been made possible by utilizing tractors rented for the residential leaf vacuum service, up-fitting them with snowplows. Included along with this transaction is the purchase of an HLA plow, identical to the two existing snowplows we have been using for the last couple of winters. LOADER-MOUNTED SNOW BLOWER The loader-mounted snow blower we have utilized for the last 14 years is a 1991 RPM Tech single-stage snow blower, which is now 25 years old. This is a critical piece of equipment to ensure snow removal operations are conducted efficiently. The current snow blower has reached the end of its service life. FUNDING This equipment was identified within the recently updated debt management plan, PO 19359 $ 98,175.00 2015 Snowcrete 948D loader-mount snow blower PO 19363 $122,499.00 2016 Case 621 F wheel loader w/ snow equipment PO 19364 $ 13,562.43 2016 HLA snow wing snowplow Thank you to the Fleet Committee, Andy Kosek (Creekside), Randy Carter (Parks), Ken Wichterman, Bruce Fenske and Cory Franek (Public Works). The combined work of City staff has resulted in significant savings, compared to the anticipated cost to replace these pieces of heavy equipment. BOARD ACTION REQUESTED: Approve/reject Public Works equipment acquisitions, Purchase orders No. 19359, 19363, 19364. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 234,236.43 Total City Cost: $ 234,236.43 Funding Source: Heavy equipment bond Remaining Cost: $ 0.00 Funding Source: Purchase Order Number City of PURCHASE REQUISITION I 1' 9 3 5 9 .............. ............. Department: Public Works Accbb t;# ; Heavy Equip Bond Date; 07/07/16 5ub.M16d6� . John Olson Check the Appropriate Box. Is Item Budgeted ❑ YES ❑ No If not budgeted, where will the money come from? Heavy equipment bond Qe; :artrrierit; p........... I UNITS Directir;;;; UNIT PRICEI TOTAL Fi;riailce;;;;; EA Snocrete 948D snow blower (loader -mount) Gley $119,000.00 Head EA Discount -20,825.00 -$20,825.00 Director Administrator ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: .................................................................................................................................. .................................................................................................................................. .................................................................................................................................. U :: ::R END. I IN O MATI.... .. . inuolce: o : ;Public Works Department S;liip i;irig;Address ; ; ; ; ; ; City of Hutchinson John Olson Public Works 1400 Adams St SE 1400 Adams St SE Hutchinson MN 55350 Hutchinson MN 55350 Ueido Manufacturing, Inc. rf;;;;;;;;; Coitac;N ;;;;;ame L del ThomasFair Addrese ............... ............... ............... ............... 2900 Alumax Rd P :: ....hone. C ........................................ .............................. ............................... .............................. 605.653.3247 ............... .............................. Yankton, SD 57078 FalNo;;;;;; .............................. .............................. .............................. .............................. 11JI:i Check if only source available and state reason ❑ Check Box Solicited quote from O'Malley Construction, who's working on City projects, no response. EQRDERI111GI I\IFORMi4TICl11 QUANTITY I UNITS I DESCRIPTION UNIT PRICEI TOTAL 1 EA Snocrete 948D snow blower (loader -mount) 119,000.00 $119,000.00 1 EA Discount -20,825.00 -$20,825.00 Includes wireless controls, female hitch of choice, 1 -year warranty on blower, engine, and related components SUBTOTAL $98,175.00 Used unit, very low hours (demonstrator model)l 4X;(T. 5%) SHI1�pING .......TOTAL DUE $98,175.00 List additional quotes and comments on the reverse side of this form. (You may attach quote sheets if available). i.:. ...f......... i•::..:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:. R.. ...ng Ir..armaf an dateReceivedReceived B:InvoiceiAmau nt V+erified B: y y 19359 - 07-07-2016 - PR - Fair Man ufacturing.xlsxPage 1 of 2 MANUFACTURING, INC. May 24, 2016 Attn: John Olson City of Hutchinson Hutchinson Area Transportation Services 1400 Adams Street SE Hutchinson, MN 55350 Dear John: Once again thank you for meeting with us recently. The model we reviewed and discussed was the Snocrete 948D. At present, we would be willing to offer this demo model priced as follows: $119,000.00 Snocrete 948D $ 20,825.00 Discount $ 98,175.00 Net $ NC Freight $ 98,175.00 Total Net F.O.B. Hutchinson, MN This price reflects a complete unit featuring the wireless controls and the female hitch portion of choice. A one year warranty will apply to the snow blower, engine, and related components. If you have any questions, please feel free to cal. Sales Manager 2900 Alumax Rd. Yankton, SD 57078•ph(605)653-3247 www.fairmfg.com John Olson From: John Olson Sent: Thursday, July 07, 2016 2:50 PM To: 'Kevin Fischer' Subject: RE: Snogo blower Thank you. From: Kevin Fischer [mailto:kfischer@macqueeneq.com] Sent: Thursday, July 07, 2016 2:42 PM To: John Olson Subject: RE: Snogo blower $155,511 MP BASE OFF MN CONTRACT $7,681 CONTROL BOX W/RADIO REMOTE $8,161 SNOWHEELS $2,800 HITCH WITH INSTALLATION TO BLOWER $174,153 PLUS DELIVERY 75 MI. @ $5.50 412.50 $174,565.50 Sorry there are not any used units. From: John Olson[mailto:iolson@ci.hutchinson.mn.us] Sent: Thursday, July 07, 201612:59 PM To: Kevin Fischer <kfischer@macqueeneq.com> Subject: Snogo blower Kevin, can you put together pricing on the snogo blower I wouldn't be opposed to taking a look at used, if that's an option. THANKS John Purchase Order Number City of PURCHASE REQUISITION I 1' 9 3 6 3 .......... ................ ......... ................ Depart... Heavy Equipment Aecoiart;#;;; Financing Date; 07/14/16 $.Ub iiif d6� . John Olson Check the Appropriate Box. Is Item Budgeted Q YES ❑ No If not budgeted, where will the money come from? Heavy equipment bond Qe; :artrrierit; p........... EA Directir;;;; 3,000.00 $3,000.00 Fi;riailce;;;;; EA ACS female hitch blank Gley $1,750.00 Head EA TRADE - STRT-169-LDR w/ bucket, snow attach -28,000.00 -$28,000.00 Director EA TRADE - STRT-781-LDR w/ bucket, snow attach Administrator -$35,000.00 ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: .................................................................................................................................. .................................................................................................................................. .................................................................................................................................. ................... ................... SUBTOTAL U :: ::R END. R: IN O MATI.... .. . inuolce: o : ;Public Works Department TC Ti4L DUE. S;liiip i;irig;Address ; ; ; ; ; ; City of Hutchinson John Olson Public Works 1400 Adams St SE 1400 Adams St SE Hutchinson MN 55350 Hutchinson MN 55350 Ueidor Titan Machinery Coritacf;Nam;e;;;;;;;;;;;;;; Tim Pittman A idres.. 6340 County Rd 101 P :: hone. CJo...................................... 952.445.5400 .............................. Shakopee, MN 55379 Fa�N o .............................. .............................. .............................. .............................. Mai Check if only source available and state reason Check Box Mn Dept of Admin Coop Purchasing Venture Contract #90572; Release L-331(5) EQRDERI111GI I\IFORMi4TICl11 QUANTITY UNITS DESCRIPTION I UNIT PRICEI TOTAL 1 EA Case 621 F wheel loader (base model) 120,578.00 $120,578.00 1 EA Loader options, prep for snow removal functions 26,091.00 $26,091.00 1 1 EA Snow removal equipment 12' plow, 10' wing 34,080.00 $34,080.00 1 EA I Hydraulic quick coupler system 3,000.00 $3,000.00 1 EA ACS female hitch blank 1,750.00 $1,750.00 1 EA TRADE - STRT-169-LDR w/ bucket, snow attach -28,000.00 -$28,000.00 1 EA TRADE - STRT-781-LDR w/ bucket, snow attach -35,000.00 -$35,000.00 2-for-1 trade ................... ................... SUBTOTAL $122,499.00 l 4X;(T. :% SHI1.pING TC Ti4L DUE. 1 $122,499.00 List additional quotes and comments on the reverse side of this form. (You may attach quote sheets if available). i.:. ...f......... i•::..:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:. R.. ...ng Ir..armaf an Dath Received Received B: Invoice iAmaunt Verified B: y y 19363 - 07-14-2016 - PR - Titan Mach inery.xlsxPage 1 of 2 TITAN, w MACHINERY 6340 Hwy 101 Shakopee Mn 55379 City of Hutchinson Attn: John Olson Hutchinson MN Reference: Quo0ation DATE 7/14/2016 Tim Pittman Field Marketer timothv.oittman0titanmachinerv.com 612-708-4578 Mobile 952-445-5400 - Office 952-445-0365 - Fax Quantity Description Total 1 2016 Case 621 F Wheel Loader $ 120,578.00 Radio AM/FM w/ Weatherband $ 408.00 Cab w/ Heat and AC std Air susp Seat $ 192.00 Right and Left Rear view Mirrors $ 123.00 LH and RH Steps with front and rear full coverage wide fenders $ 638.00 Ride Control $ 1,905.00 Sun Visor std Rear Camera w/ mount $ 1,052.00 Cold Weather Package (includes grid heater, fuel warmer, block htr) std Cooling system ( includes hyd oil cooler and reversing fan) std Limited slip axles front and rear std Full view air precleaner $ 239.00 Remote Jump Start std 2 Additional Cab Lights $ 56.00 Radial Tires 20.5x25 L2 on 3 piece Rims $ 2,730.00 Brand Pref Michelin $ 1,647.00 Michelin Snow Plus $ 6,723.00 3 spool valve with 2 lever control $ 1,176.00 ACS style coupler Pro 2000 w/ 3yd Bucket w/ boe $ 9,202.00 Counterweight 1050lbs std Falls Snow PKG 12' rev plow, 10' wing, Hyd push, Falls Hydraulics $ 34,080.00 Hydraulic Quick Coupler System (Faster) $ 3,000.00 ACS Female Blank $ 1,750.00 Sub Total $ 185,499.00 Less 621 C JEE0123169 Aprox 7300Hrs $ (28,000.00) PLUS TAX If you have any questions concerning this quotation, please contact me at the number noted above. Less 621 D JEE0135781 Aprox 88001-Irs $ (35,000.00) 3yr 3000 hr Full Machine Warranty and 3yr 3000 hr Service Contract included Prices per MN State Contract Expiring 10/31/16 TOTAL $122,499 PLUS TAX If you have any questions concerning this quotation, please contact me at the number noted above. Purchase Order Number City of PURCHASE REQUISITION I 1' 9 3 6 4 .......... ................ ......... ................ Depart... Heavy Equipment Aecoiart;#;;; Financing Date; 07/14/16 $.Ub iiif d6� . John Olson Check the Appropriate Box. Is Item Budgeted Q YES ❑ No If not budgeted, where will the money come from? Heavy equipment bond Qe; :artrrierit; p........... Directir;;;; Fi;riailce;;;;; Gley Head Director Administrator ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: .................................................................................................................................. .................................................................................................................................. .................................................................................................................................. U :: ::R END. R: IN O MATI.... .. . inuolce: o : ;Public Works Department S;liiip i;irig;Address ; ; ; ; ; ; City of Hutchinson John Olson Public Works 1400 Adams St SE 1400 Adams St SE Hutchinson MN 55350 Hutchinson MN 55350 Ueidor Titan Machinery Coritacf;Nam;e;;;;;;;;;;;;;; Tim Pittman A idres.. 6340 County Rd 101 P :: hone. CJo...................................... 952.445.5400 .............................. Shakopee, MN 55379 Fa�N o .............................. .............................. .............................. .............................. Mai Check if only source available and state reason Check Box Mn Dept of Admin Coop Purchasing Venture Contract #90572; Release L-331(5) EQRDERI111GI I\IFORMi4TICl11 QUANTITY UNITS DESCRIPTION I UNIT PRICEI TOTAL 1 EA HLA snow wing plow 13,562.43 $13,562.43 ................... SUBTOTAL $13,562 T 4X (T 375% SHI1.pING TCTi4LpUE $13,562 List additional quotes and comments on the reverse side of this form. (You may attach quote sheets if available). i.:. ...f......... i•::..:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:. R.. ...ng Ir..armaf an Dath Received Received B: Invoice iAmaunt Verified B: y y 19364 - 07-14-2016 - PR - Titan Mach inery.xlsxPage 1 of 2 TITAN MACHINERY 6340 Hwy 101 Shakopee Mn 55379 City of Huchinson Attn John Olson Hutchinson MN Reference: Quotation DATE 3/30/2016 Tim Pittman Field Marketer timothv.oittman0titanmachinerv.com 612-708-4578 Mobile 952-445-5400 - Office 952-445-0365 - Fax Quantity Description Total 1 2016 HLA 4200 Snow Wing Plow SB4200W9153PH $ 13,683.00 W/ Front 3 point mount Less State Bid Dscount $ (684.15) Freight per State Bid Discount to Lakeville $ 563.58 Sub Total $ 13,562.43 All equipment will be delivered from Lakeville MN to Hutchinson MN By Tim Pittman Note: Additional Ballast may be needed for loader mount of plow TOTAL PLUS TAX If you have any questions concerning this quotation, please contact me at the number noted above. Approved By: Tim Pittman THANK YOU FOR YOUR BUSINESS! PLUS TAX If you have any questions concerning this quotation, please contact me at the number noted above. Less 621 D JEE0135781 Aprox 88001-Irs $ (35,000.00) 3yr 3000 hr Full Machine Warranty and 3yr 3000 hr Service Contract included Prices per MN State Contract Expiring 10/31/16 TOTAL $122,499 PLUS TAX If you have any questions concerning this quotation, please contact me at the number noted above. HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Res. No. 14589 - Approving Proposed Ballot Language for Charter Amendments Department: Legal LICENSE SECTION Meeting Date: 7/26/2016 Application Complete N/A Contact: Marc A. Sebora Agenda Item Type: Presenter: Marc A. Sebora Reviewed by Staff ❑ Public Hearing Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: As you will recall, at the Council's March 8, 2016, meeting, the Council adopted Ordinance No. 16-755 which amended Section 2.04 of the Charter to increase the mayoral terms from two years to four years. In accordance with State law, the Council then forwarded the ordinance to the Charter Commission for their review and comment. At the Council's May 24, 2016, meeting, the Council received the Charter Commission's recommendation to leave Section 2.04 of the Charter as written which keeps the mayoral terms at two years. However, in a 4 to 1 vote, the Council authorized moving forward with the ordinance as adopted and placing a question on the November 8, 2016, ballot to have the voters decide whether or not amendments should be made to Section 2.04 with regard to increasing the mayoral terms. Therefore, attached for the Council's consideration is Resolution No. 14589, which includes proposed ballot language to be placed on the November ballot as it pertains to the mayoral term lengths. BOARD ACTION REQUESTED: Approve Resolution No. 14589 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: RESOLUTION NO. 14589 RESOLUTION PLACING PROPOSED CITY CHARTER REVISIONS ON NOVEMBER 2016 ELECTION BALLOT BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota as follows: THAT the question to be placed before the voters of the City of Hutchinson at the general election to be held at the usual polling place on the 8th day of November, 2016, shall be: "SHALL THE CHARTER OF THE CITY OF HUTCHIN SON BE AMENDED AS TO CHANGE THE LENGTH OF THE TERM OF OFFICE FOR THE POSITION OF MAYOR FROM TWO YEARS TO FOUR YEARS?" This change, if approved, would begin for the election for mayor in the year 2020. 0 Yes 0 No "SHALL THE CHARTER OF THE CITY OF HUTCHIN SON BE AMENDED AS TO CHANGE THE STARTING DATE FOR THE TERMS OF ELECTED OFFICERS FROM THE FIRST BUSINESS DAY IN JANUARY TO THE FIRST MONDAY IN JANUARY EXCEPT IF THE FIRST MONDAY IS A HOLIDAY THAN THE FIRST TUESDAY?" 0 Yes 0 No ADOPTED BY the City Council this 26th day of July, 2016. Gary T. Forcier Mayor ATTEST: Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Consideration of Setting August 12, 2016, to Canvass Primary Election Results Department: Administration LICENSE SECTION Meeting Date: 7/26/2016 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑ New Business Time Requested (Minutes): 2 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: Minnesota Statute Section 205.065 requires that the governing body of the municipality canvass the returns of the municipal primary election. State law requires that the canvassing of the returns be conducted on the third day after the primary, which is August 12, 2016. The time of the meeting to canvass the returns will be at the discretion of the Council. BOARD ACTION REQUESTED: Approve setting August 12, 2016, to canvass the results of the primary election. 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: HRA HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY Regular Board Meeting Tuesday, June 21, 2016, 7:00 AM Minutes 1 _ CALL TO ORDER: Chairman Pat Lembcke called the meeting to order. Members Present: Gary Forcier, Steve Jensen and Renee Lynn Johnson Kotlarz. Staff Present: Jean Ward and Judy Flemming, 2. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON MAY 17, 2016 Gary Forcier moved to approve the Minutes of the regular board meeting as written. Steve Jensen seconded and the motion carried unanimously. 3. FINANCIAL REPORTS a. Steve Jensen moved to approve the City Center General Fund payments of $11,464.87 for checks 8761 to 8769. Gary Forcier seconded and the motion carried unanimously. b. Steve Jensen moved to approve the Park Towers operating account payments of $28,436.48 for checks 13637 to 13662. Gary Forcier seconded and the motion carried unanimously. c. Steve Jensen moved to approve the Park Towers security account payments of $1,740.90 for checks 1540 to 1544. Gary Forcier seconded and the motion carried unanimously. d. Steve Jensen moved to approve the April 30, 2016 Park Towers financial statements. Gary Forcier seconded and the motion carried unanimously. e. Gary Forcier moved to approve the May 31, 2016 City Center financial statements. Steve Jensen seconded and the motion carried unanimously. f. Steve Jensen moved to approve the Corporate Authorization Resolution to remove LaVonne Hansen and add Patricia Lembcke as authorized signatories for Citizen Bank & Trust Accounts. Gary Forcier seconded and the motion carried unanimously. 4. PARK TOWERS UPDATE a. FYI Occupancy Report — 99% occupied b. Jean Ward reviewed with the Board the 2015 unaudited PHAS Score — 99 out of 100. c. Jean Ward reviewed with the Board the Park Towers' June Newsletter. d. Steve Jensen moved to approve setting a Public Hearing Date on September 20, 2016 at 7:30 A.M. City Center Main Conference Room to review 2017 Annual Plan, 2017 CFP Plan and 5 year plan, and proposed Streamlined Administrative Procedures. Gary Forcier seconded and the motion carried unanimously. 5. SCDP RENTAL REHAB PROGRAM APPLICATION a. Judy Flemming reviewed with the Board the SCDP Rental Rehab Interest List. b. Steve Jensen moved to approve SCDP Rental Rehab Loans ##3 — Schimmel & 44 — Prellwitz contingent to the loan review committee's approval. Gary Forcier seconded and the motion carried unanimously_ 6. REVIEW OF IMPACT FUND APPLICATION BUDGET SUBMITTED JUNE 2016 Jean Ward reviewed with the Board the submitted Impact Fund application budget. June 21, 2016 Minutes Page 1 oft 7. CONSIDERATION FOR APPROVAL OF THE REVISED DEFERRED GRANT PROGRAM, STREAMLINED DEFERRED GRANT PROGRAM, AND ACCESSIBILITY DEFERRED GRANT PROGRAM GENERAL CRITERIA Steve Jensen moved to approve the revision of the Deferred Grant Program, Streamlined Deferred Grant Program and Accessibility Deferred Grant Program General Criteria. Gary Forcier seconded and the motion carried unanimously. 8. RENTAL HOUSING TIF APPLICATION HIGHFIELD APARTMENT UPDATE Jean Ward updated the Board on the Highfield Apartment project. 9. REVIEW OF 2017 CITY CENTER DRAFT BUDGET Jean Ward reviewed the 2017 City Center draft budget with the Board. 10. COMMUNICATIONS Jean Ward informed the Board of a disruptive tenant issue at Park Towers. 11. ADJOURNMENT Steve Jensen moved to adjourn and Gary Forcier seconded. There being no other business, Chairman Pat Lembcke declared the meeting adjourned. Recorded by .lean Ward, HRA Executive Director Gary Forcier, Secretary/Treasurer ' TJ r� June 21, 2016 Minutes Page 2 of 2 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: June 2016 Financial and Investment Reports Department: Finance LICENSE SECTION Meeting Date: 7/26/2016 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ Governance Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: For Council review, attached are the June Financial Reports for the general fund and enterprise funds. Also attached is the June Investment Report. Feel free to contact me with any questions. Thank you. BOARD ACTION REQUESTED: 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: DESCRIPTION General Fund Taxes Other Taxes Licenses & Permits Intergovernmental Revenue Charges for Services Miscellaneous Revenues Transfers -In Fines & forfeitures Capital Contributions Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay NET REVENUE REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2016 2016 ACTUALS JUNE YTD 2016 AVAILABLE BUDGET BALANCE 2016 % BDGT 2015 YTD USED ACTUAL 2015 BUDGET 2015 % BDGT USED 2,280,967 2,280,967 4,581,035 2,300,068 49.8 2,316,431 4,491,446 51.6 7,921 83,628 272,000 188,372 30.7 82,652 257,500 32.1 17,550 133,367 271,500 138,133 49.1 166,161 267,900 62.0 6,987 55,566 1,284,330 1,228,764 4.3 38,544 1,225,766 3.1 182,793 1,078,988 2,350,666 1,271,678 45.9 840,150 2,031,070 41.4 42,606 122,274 291,300 169,026 42.0 276,430 666,225 41.5 326,314 770,825 2,332,404 1,561,580 33.0 422,096 2,160, 537 19.5 3,194 21,705 55,000 33,295 39.5 22,960 55,000 41.7 - - 25,000 25,000 - - 25,000 - 2,868,332 4,547,320 11,463,235 6,915,915 39.7 4,165,425 11,180,444 37.3 604,257 3,388,865 7,595,480 4,206,615 44.6 3,339,678 7,491,996 44.6 73,511 291,705 770,593 478,888 37.9 334,324 782,636 42.7 203,271 1,086,016 2,461,936 1,375,920 44.1 1,097,587 2,303,346 47.7 9,402 128,398 525,226 396,828 24.4 122,695 498,116 24.6 - 49,878 100,000 50,123 49.9 48,425 96,850 50.0 3,014 3,014 10,000 6,986 30.1 7,646 192,058 4.0 893,455 4,947,875 11,463,235 6,515,360 43.2 4,950,355 11,365,002 43.6 1,974,877 (400,555) - 400,555 (784,930) (184,558) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2016 DESCRIPTION General Fund by Department 2016 ACTUALS JUNE YTD 2016 AVAILABLE BUDGET BALANCE 2016 % BDGT 2015 YTD USED ACTUAL 2015 BUDGET 2015 % BDGT USED Mayor & City Council 2,537.36 15,335.47 44,290.00 28,954.53 34.6 17,442.30 46,380.00 37.6 City Administrator 28,835.91 177,575.07 430,251.00 252,675.93 41.3 192,506.48 410,458.00 46.9 Elections 91.97 92.52 15,950.00 15,857.48 0.6 5,603.07 7,378.00 75.9 Finance Department 35,438.63 190,822.95 361,468.00 170,645.05 52.8 166,622.45 428,830.00 38.9 Motor Vehicle 15,258.79 100,458.09 203,836.00 103,377.91 49.3 87,719.36 184,836.00 47.5 Assessing - - 60,911.00 60,911.00 - - 60,911.00 - Legal 25,296.41 126,570.48 288,193.00 161,622.52 43.9 116,078.23 243,497.00 47.7 Planning 8,101.88 48,882.90 149,972.00 101,089.10 32.6 67,501.83 145,943.00 46.3 Information Services 31,037.15 221,965.62 504,738.00 282,772.38 44.0 184,912.57 414,288.00 44.6 City Hall Building 11,239.43 50,024.35 131,322.00 81,297.65 38.1 43,964.96 95,343.00 46.1 Police Department 230,449.03 1,403,613.01 3,062,565.00 1,658,951.99 45.8 1,385,497.58 3,072,077.00 45.1 Hospital Security 23,108.36 128,127.06 293,886.00 165,758.94 43.6 125,804.88 291,299.00 43.2 Emergency Management 3,962.69 5,093.24 12,800.00 7,706.76 39.8 1,098.96 14,388.00 7.6 Safety Committee - 8,600.16 9,500.00 899.84 90.5 7,956.35 9,590.00 83.0 Fire Department 24,934.89 142,053.76 306,733.00 164,679.24 46.3 128,763.90 292,199.00 44.1 Protective Inspections 20,379.52 111,095.40 227,556.00 116,460.60 48.8 116,587.19 233,248.00 50.0 Engineering 31,263.50 184,668.35 402,714.00 218,045.65 45.9 196,612.79 452,058.00 43.5 Streets & Alleys 152,972.07 582,667.22 1,517,341.00 934,673.78 38.4 671,227.73 1,409,089.00 47.6 Park/Recreation Administration 17,042.94 109,111.25 222,323.00 113,211.75 49.1 114,494.86 223,966.00 51.1 Recreation 16,242.91 113,044.66 234,397.00 121,352.34 48.2 119,082.68 222,940.00 53.4 Senior Citizen Center 6,904.18 42,569.65 83,747.00 41,177.35 50.8 38,046.70 74,795.00 50.9 Civic Arena 12, 910.81 153,151.87 323, 727.00 170, 575.13 47.3 156, 360.39 324, 826.00 48.1 Park Department 84,445.71 403,533.45 852,751.00 449,217.55 47.3 402,460.56 839,821.00 47.9 Recreation Building & Pool 17,437.19 65,447.70 170,818.00 105,370.30 38.3 70,941.74 188,732.00 37.6 Events Center 17,677.77 117,002.23 243,017.00 126,014.77 48.1 110,568.16 234,707.00 47.1 Evergreen Building 1,093.28 10,646.38 25,450.00 14,803.62 41.8 5,782.12 12,688.00 45.6 Library 41, 979.68 100, 849.18 206, 365.00 105, 515.82 48.9 106, 780.61 198, 724.00 53.7 Cemetery 16, 839.03 55, 735.67 130, 785.00 75, 049.33 42.6 48, 876.17 301, 398.00 16.2 Airport 10,136.45 41, 321.13 104, 635.00 63, 313.87 39.5 42,172.79 107,159.00 39.4 Unallocated General Expense 5,837.65 237,816.23 841,194.00 603,377.77 28.3 218,887.23 823,434.00 26.6 TOTAL EXPENDITURES 893,455 4,947,875 11,463,235 6,515,360 43.2 4,950,355 11,365,002 43.6 DESCRIPTION Liquor Fund Sales Miscellaneous Revenues TOTAL REVENUES Cost of Sales Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service 111i11Iri1NON Ugkip]111ILI]:1*y NET REVENUE REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2016 2016 ACTUALS JUNE YTD 2016 AVAILABLE BUDGET BALANCE 2016 % BDGT 2015 YTD USED ACTUAL 2015 BUDGET 2015 % BDGT USED 579,023 2,789,195 5,870,000 3,080,805 47.5 2,682,756 5,697,000 47.1 52 363 1,000 637 36.3 1,454 1,000 145.4 579,075 2,789,558 5,871,000 3,081,442 47.5 2,684,210 5,698,000 47.1 439,743 2,115,125 4,398,810 2,283,685 48.1 2,076,665 4,271,071 48.6 45,352 263,083 568,211 305,128 46.3 252,548 521,408 48.4 922 5,947 17,400 11,453 34.2 11,391 16,600 68.6 16,207 95,956 198,350 102,394 48.4 87,941 196,793 44.7 - 200 5,650 5,450 3.5 350 5,500 6.4 - - 475,000 475,000 - - 465,000 - - - 20,000 20,000 - - 27,000 - - - 80,200 80,200 - - 82,075 - - - 128,055 128,055 - - 128,305 - 502,224 2,480,311 5,891,676 3,411,365 42.1 2,428,894 5,713,752 42.5 76,851 309,247 (20,676) (329,923) 255,315 (15,752) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2016 DESCRIPTION Water Fund Sales Local Sales Tax Charges for Services Miscellaneous Revenues TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES NET of REVENUES & EXPENDITURES 2016 ACTUALS JUNE YTD 2016 AVAILABLE BUDGET BALANCE 2016 % BDGT 2015 YTD USED ACTUAL 2015 BUDGET 2015 % BDGT USED 203,154 1,077,849 2,306,000 1,228,151 46.7 1,082,562 2,300,000 47.1 31,350 160,562 685,000 524,438 23.4 223,501 725,000 30.8 2,259 49,999 50,000 1 100.0 37,193 50,000 74.4 1,238 8,116 85,000 76,884 9.5 15,928 84,153 18.9 238,001 1,296,527 3,126,000 1,829,473 41.5 1,359,183 3,159,153 43.0 38,401 216,922 479,983 263,061 45.2 188,790 500,766 37.7 8,895 48,856 122,400 73,544 39.9 57,135 123,250 46.4 21,313 245,469 507,350 261,881 48.4 180,608 457,724 39.5 510 9,481 13,500 4,019 70.2 9,853 16,700 59.0 - - 43,145 43,145 - - 43,145 - - - 250,000 250,000 - 309,020 543,750 56.8 - - 1,150, 000 1,150, 000 - - 1,104, 000 - - 227,937 1,408,611 1,180,674 16.2 226,020 1,312,414 17.2 69,119 748,665 3,974,989 3,226,325 18.8 971,427 4,101,749 23.7 168,882 547,862 (848,989) (1,396,851) 387,756 (942,596) Services & Charges includes expenses of $59,400 to repair well #4. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2016 DESCRIPTION Sewer Fund Sales Local Sales Tax Licenses & Permits Charges for Services Miscellaneous Revenues 111111 Iri10:»T/ :110 Lei *? Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES NET of REVENUES & EXPENDITURES 2016 ACTUALS JUNE YTD 2016 AVAILABLE BUDGET BALANCE 2016 % BDGT 2015 YTD USED ACTUAL 2015 BUDGET 2015 % BDGT USED 261,885 1,605,421 3,233,000 1,627,579 49.7 1,663,425 3,215,000 51.7 31,350 160,562 685,000 524,438 23.4 223,501 725,000 30.8 - 5,200 7,000 1,800 74.3 6,100 7,000 87.1 - 1,295 4,000 2,705 32.4 3,584 4,000 89.6 1,313 9,219 97,000 87,781 9.5 12,044 89,153 13.5 294,549 1,781,697 4,026,000 2,244,303 44.3 1,908,654 4,040,153 47.2 50,125 282,209 622,085 339,876 45.4 258,555 679,626 38.0 11,222 86,264 236,100 149,836 36.5 93,136 249,300 37.4 44,474 344,682 742,550 397,868 46.4 318,233 762,511 41.7 529 25,880 24,500 (1,380) 105.6 16,322 24,000 68.0 - - 43,145 43,145 - - 43,145 - 1,649 201,456 350,000 148,544 57.6 8,225 691,250 1.2 - - 1,530,000 1,530,000 - - 1,495,000 - - 539,538 1,568,854 1,029,316 34.4 480,336 1,573,470 30.5 107,999 1,480,030 5,117,234 3,637,204 28.9 1,174,808 5,518,302 21.3 186,550 301,666 (1,091,234) (1,392,900) 733,846 (1,478,149) Capital Outlay consists of expenditures for the forcemain bypass project approved by council in 2015. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2016 DESCRIPTION Refuse Fund Sales Intergovernmental Revenue Miscellaneous Revenues TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service NET of REVENUES & EXPENDITURES 2016 ACTUALS JUNE YTD 2016 AVAILABLE BUDGET BALANCE 2016 % BDGT 2015 YTD USED ACTUAL 2015 BUDGET 2015 % BDGT USED 98,427 578,614 1,149, 500 570,886 50.3 569,588 1,133, 700 50.2 - 2,633 12,500 9,868 21.1 2,656 12,500 21.2 298 2,796 2,500 (296) 111.8 2,235 2,500 89.4 98,725 584,043 1,164,500 580,457 50.2 574,479 1,148,700 50.0 13,712 71,999 190,804 118,805 37.7 93,390 179,288 52.1 518 14,680 62,400 47,720 23.5 19,693 65,400 30.1 54,819 289,128 704,727 415,599 41.0 324,100 702,650 46.1 310 1,588 3,750 2,162 42.3 1,408 3,250 43.3 - - 55,000 55,000 - - 55,000 - - 36,760 95,000 58,240 38.7 75,083 159,418 47.1 - - 124,000 124,000 - - 131,500 - - 23,124 24,260 1,136 95.3 1,003 24,261 4.1 69,359 437,279 1,259,941 822,662 34.7 514,677 1,320,767 39.0 29,367 146,764 (95,441) (242,205) 59,801 (172,067) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2016 DESCRIPTION Compost Fund Sales Charges for Services Miscellaneous Revenues TOTAL REVENUES Cost of Sales Inventory Cost Adjustment Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense TOTAL EXPENDITURES NET of REVENUES & EXPENDITURES 2016 ACTUALS JUNE YTD 2016 AVAILABLE BUDGET BALANCE 2016 % BDGT 2015 YTD USED ACTUAL 2015 BUDGET 2015 % BDGT USED 195,517 1,754,841 1,636,796 (118,045) 107.2 2,415,345 2,729,160 88.5 850 2,950 58,500 55,550 5.0 11,964 58,500 20.5 672 30,292 6,000 (24,292) 504.9 4,102 6,000 68.4 197,039 1,788,083 1,701,296 (86,787) 105.1 2,431,411 2,793,660 87.0 138,970 1,056,515 1,117, 265 60,750 94.6 1,943,504 2,357,500 82.4 (46,833) (175,839) (525,746) (349,907) 33.4 (493,855) (1,054,568) 46.8 47,911 255,726 559,899 304,173 45.7 347,529 797,164 43.6 2,468 30,006 70,257 40,251 42.7 62,807 154,500 40.7 22,382 94,704 188,573 93,869 50.2 141,834 344,350 41.2 159 5,599 13,500 7,901 41.5 4,585 13,500 34.0 - - 110,000 110,000 - - 110,000 - - 149,274 150,000 726 99.5 31,158 250,000 12.5 - - 134,000 134,000 - - 142,600 - 165,057 1,415,985 1,817,748 401,763 77.9 2,037,563 3,115,046 65.4 31,982 372,098 (116,452) (488,550) 393,848 (321,386) Revenues and expenditures are substantially below last year's level due to the lower production model. Overall, the new production model is performing very well and is slightly below last year's net revenue. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2016 DESCRIPTION Storm Water Utili Sales Licenses & Permits Charges for Services Miscellaneous Revenues TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Capital Outlay Depreciation Expense Debt Service NET of REVENUES & EXPENDITURES 2016 ACTUALS JUNE YTD 2016 AVAILABLE BUDGET BALANCE 2016 % BDGT 2015 YTD USED ACTUAL 2015 BUDGET 2015 % BDGT USED 73,242 428,603 857,367 428,764 50.0 394,732 790,200 50.0 70 1,185 - (1,185) - 2,095 - - - - - - - 630 - - 329 3,546 5,500 1,954 64.5 2,381 6,000 39.7 73,641 433,335 862,867 429,532 50.2 399,838 796,200 50.2 18,141 107,077 243,986 136,909 43.9 48,546 241,318 20.1 4,748 8,036 43,925 35,889 18.3 5,133 34,175 15.0 12,144 39,127 164,100 124,973 23.8 19,992 146,350 13.7 112 5,236 11,250 6,014 46.5 5,519 11,250 49.1 - - 120,000 120,000 - - 128,000 - - - 133,000 133,000 - - 116,000 - 150 141,133 150,850 9,867 93.5 136,111 193,992 70.2 35,295 300,609 867,111 566,652 34.7 215,300 871,085 24.7 38,346 132,725 (4,244) (137,119) 184,538 (74,885) Sales revenue is up due to the budgeted rate increase of 8.3%. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING JUNE 30, 2016 DESCRIPTION HATS Ooeration Intergovernmental Revenue Charges for Services Miscellaneous Revenues Transfers -In TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Capital Outlay TOTAL EXPENDITURES NET of REVENUES & EXPENDITURES 2016 ACTUALS JUNE YTD 2016 AVAILABLE BUDGET BALANCE 2016 % BDGT 2015 YTD USED ACTUAL 2015 BUDGET 2015 % BDGT USED 6,395 117,677 156,045 38,368 75.4 75,388 151,500 49.8 23,211 102,368 530,000 427,632 19.3 135,440 546,000 24.8 45 551 3,150 2,599 17.5 6,158 3,250 189.5 - 49,878 99,755 49,878 50.0 48,425 96,850 50.0 29,651 270,474 788,950 518,476 34.3 265,412 797,600 33.3 2,080 24,842 59,470 34,628 41.8 32,287 57,898 55.8 14,412 98,210 528,600 430,390 18.6 120,120 546,925 22.0 12,257 67,103 161,200 94,097 41.6 70,984 159,700 44.4 - - 5,171 5,171 - 35 6,550 0.5 - - 33,600 33,600 - - 26,527 - 28,749 190,155 788,041 597,886 24.1 223,426 797,600 28.0 902 80,318 909 (79,409) 41,986 - Executive summary as of June 30, 2016 Asset allocation review Value on % of 06/30/2016 ($) portfolio A Cash 2,296,735.21 16.23 Cash 2,296,735.21 16.23 B Fixed Income 11,855,691.74 83.77 us 11,615,176.10 82.07 International 240,515.64 1.70 C Equity 0.00 0.00 D Commodities 0.00 0.00 E Non -Traditional 0.00 0.00 F Other 0.00 0.00 Total Portfolio 14,152,426.95 100% Balanced mutual funds are allocated in the 'Other' category Equity sector analysis Portfolio does not contain applicable holdings - exhibit intentionally left blank. Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Expected cash flow $ Thousands 50 42 33 25 — 17 8 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2016 2017 2017 0 Taxable income Total taxable income: $206,161.97 Total expected cash flow: $206,161.97 Cash flows displayed account for known events such as maturities and mandatory puts. Credit quality of bond holdings Value on % of Effective credit rating Issues 06/30/2016 ($) port. A Aaa/AAA/AAA 4 2,864,991.26 24.11 B Aa/AA/AA 3 1,550,347.04 13.01 C A/A/A 0 0.00 0.00 D Baa/BBB/BBB 0 0.00 0.00 E Non -investment grade 0 0.00 0.00 F Certificate of deposit 32 7,440,353.44 62.87 G Not rated 0 0.00 0.00 Total 39 $11,855,691.74 100% W A F �B Report created on: July 01, 2016 Page 1 of 3 Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income summaryIncludes all fixed-rate securities in the selected porfolio. Average yields and durations exclude Structured Product, Pass -Through, Perpetual Preferred, and Foreign securities. as of June 30, 2016 Bond overview Total quantity 11,694,000 Total market value $11,816,344.99 Total accrued interest $39,346.75 Total market value plus accrued interest $11,855,691.74 Total estimated annual bond interest $201,658.25 Average coupon 1.73% Average current yield 1.71% Average yield to maturity 1.09% Average yield to worst 1.08% Average modified duration 2.54 Average effective maturity 3.63 Credit quality of bond holdings Value on % of Effective credit rating Issues 06/30/2016 ($) port. A Aaa/AAA/AAA 4 2,864,991.26 24.11 B Aa/AA/AA 3 1,550,347.04 13.01 C A/A/A 0 0.00 0.00 D Baa/BBB/BBB 0 0.00 0.00 E Non -investment grade 0 0.00 0.00 F Certificate of deposit 32 7,440,353.44 62.87 G Not rated 0 0.00 0.00 Total 39 $11,855,691.74 100% W A F OW6 Investment type allocation Investment type Taxable ($) Tax-exempt / deferred ($) Total ($) % of bond port. Certificates of deposit 7,440,353.44 0.00 7,440,353.44 62.76 Municipals 2,060,367.60 0.00 2,060,367.60 17.38 U.S. federal agencies 2,354,970.71 0.00 2,354,970.71 19.86 Total $11,855,691.75 $0.00 $11,855,691.75 100% Bond maturity schedule $ Millions 2.5 17.0% 2.0 1.5 1.0 0.5 0.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2027 + Other 0 Effective maturity schedule Cash, mutual funds and some preferred securities are not included. Report created on: July 01, 2016 Page 1 of 2 UBS Prepared for City Hutchinson 4* U RP 38446 •City of Hutchinson •Business Service Account Risk profile: Conservative Return Objective: Current Income SIncludes all fixed-rate securities in the selected porfolio. Average yields and durations exclude Structured Product, Pass -Through, Perpetual Preferred, and Foreign securities. as of June 30, 2016 Summary of bond holdings Maturity Year Issues Quantity Est. annual income ($) Current Yield to yield (%) maturity (%) Yield to Modified worst (%) duration Adjusted cost basis ($) Unrealized gain/loss ($) Mkt. value ($) % of bond portfolio maturi 2016 4 865,000 8,772.50 1.01% 0.58 % 0.58 % 0.35 865,000 1,216.10 867,649.46 - 7.33% 17.07% 14.59% % 15.92/ 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2017 7 1,996,000 49,308.75 2.44% 0.73 % 0.73 % 0.79 2,082,522.83 -65,372.28 2,035,764.221 2018 7 1,716,000 19,119.00 1.11% 0.87 % 0.87 % 1.81 1,471,000 252,546.34 1,726,542.411 2019 6 1,527,000 31,745.50 2.03% 1.25 % 1.25 % 3.12 1,534,485 32,849.45 1,573,822.871-13.26% 2020 4 1,235,000 20,250.00 1.61% 1.19 % 1.19 % 3.82 1,234,995 21,174.05 1,258,623.401-10.63 2021 5 1,880,000 23,455.00 1.25% 1.49 % 1.49 % 4.76 1,879,100 2,608.15 1,883,217.441 2022 3 735,000 13,107.50 1.75% 1.81 % 1.81 % 5.89 735,000 14,579.95 750,287.091-6.34% 2023 1 1,000,000 17,500.00 1.75% NA NA NA 1,000,000 820.00 1,003,833.891-8.47% 2024 1 500,000 13,000.00 2.56% 2.39 % 2.33 % 5.80 486,750 21,140.00 510,020.561=43% 2025 1 240,000 5,400.00 2.20% NA NA NA 240,000 5,930.40 245,930.4012.08% 2026 0 0 NA NA NA 2027 0 0 NA NA NA 2028 0 0 NA NA NA 2029 0 0 NA NA NA 2030 0 0 NA NA NA 2031 0 0 NA NA NA 2032 0 0 NA NA NA 2033 0 0 NA NA NA 2034 0 0 NA NA NA 2035 0 0 NA NA NA 2036 0 0 NA NA NA 2037 0 0 NA NA NA 2038 0 0 NA NA NA 2039 0 0 NA NA NA 2040 0 0 NA NA NA 2041 0 0 NA NA NA 2042 0 0 NA NA NA 2043 0 0 NA NA NA 2044 0 0 NA NA NA 2045 0 0 NA NA NA 2045+ 0 0 NA NA NA Other 0 0 NA NA NA Total 39 11,694,000 $201,658.25 1.71% 1.09% 1.08% 2.54 $11,528,852.83 $287,492.16 $11,855,691.74 Report created on: July 01, 2016 Page 1 of 7 UBS Prepared for City Hutchinson 4* U RP 38446 •City of Hutchinson •Business Service Account Risk profile: Conservative Return Objective: Current Income Bond holdings - as of June 30, 2016 (continued) Details of bond holdings Report created on: July 01, 2016 Page 2 of 7 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. g/I ($) price ($) Accr. interest ($) port. 11,694,000 1.73% 02/14/2020 NA $201,658.25 1.09% 2.54 $11,528,852.83 NA $11,816,344.99 100% Total Bond Portfolio 1.71% 1.08% $287,492.16 $39,346.75 $11,855,691.74 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2016 AMERICAN EXPRESS C NY US RT CD 145,000 1.25% 08/09/2016 1,812.50 0.57% 0.11 145,000.00 100.074 145,107.30 1.23% 01.2500% MAT 08/09/16 FIXED 1.25% 0.57% 107.30 705.14 RATE CD /NY BMW BANK NORTH AME UT US CD 240,000 0.95% 11/14/2016 2,280.00 0.56% 0.37 240,000.00 100.147 240,352.80 2.03% RT 00.9500% MAT 11/14/16 0.95% 0.56% 352.80 293.59 FIXED RATE CD /UT CAPITAL ONE BANK U VA US RT CD 240,000 1.00% 11/14/2016 2,400.00 0.61% 0.37 240,000.00 100.147 240,352.80 2.03% 01.0000% MAT 11/14/16 FIXED 1.00% 0.61% 352.80 322.19 RATE CD /VA FIRSTBANK P R SANT PR RT CD 240,000 0.95% 12/12/2016 2,280.00 0.58% 0.45 240,000.00 100.168 240,403.20 2.03% 00.9500% MAT 12/12/16 FIXED 0.95% 0.58% 403.20 112.44 RATE CD /PR Total 2016 865,000 1.01% 11/06/2016 $8,772.50 0.58% 0.35 $865,000.00 $866,216.10 7.33% 1.01% 0.58% $1,216.10 $1,433.36 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2017 MASSACHUSETTS DEPT TRANS Aa3/AA-/NR 500,000 2.41% 01/01/2017 12,040.00 0.45% 0.50 524,500.00 100.982 504,910.00 4.27% TAX SR B RV BE/R/ 2.408 NR/NR/NR 2.38% 0.45% -19,590.00 5,986.56 010117 DTD 113011 /MA FED FARM CREDIT BANK 04.875 Aaa/AAA/AA+ 431,000 4.88% 01/17/2017 21,011.25 0.53% 0.53 493,022.83 102.369 441,210.39 3.73% % DUE 011717 DTD 010907 FC NR/NR/NR 4.76% 0.53% -51,812.44 9,513.43 07172007 STATE BK INDIA NY US RT CD 248,000 2.00% 04/27/2017 4,960.00 0.67% 0.82 248,000.00 101.092 250,708.16 2.12% 02.0000% MAT 04/27/17 FIXED 1.98% 0.67% 2,708.16 869.70 RATE CD /NY COMENITY BANK DE US RT CD 200,000 1.15% 06/19/2017 2,300.00 1.73% 0.96 200,000.00 99.445 198,890.00 1.68% 01.1500% MAT 06/19/17 FIXED 1.16% 1.73% -1,110.00 170.14 RATE JUMBO CD /DE Report created on: July 01, 2016 Page 2 of 7 Bond holdings - as of June 30, 2016 (continued) Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Report created on: July 01, 2016 Page 3 of 7 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2017 GE CAP BK UT US RT 01.7500% CD 130,000 1.75% 08/03/2017 2,275.00 0.79% 1.08 130,000.00 101.040 131,352.00 1.11 % MAT 08/03/17 FIXED RATE CD 1.73% 0.79% 1,352.00 162.05 /UT GE CAP RETAIL BK UT US RT CD 247,000 1.75% 08/03/2017 4,322.50 0.79% 1.08 247,000.00 101.040 249,568.80 2.11% 01.7500% MAT 08/03/17 FIXED 1.73% 0.79% 2,568.80 1,740.84 RATE CD /UT SUN NATL BK NJ US RT CD 240,000 1.00% 10/03/2017 2,400.00 0.83% 1.25 240,000.00 100.213 240,511.20 2.04% 01.0000% MAT 10/03/17 FIXED 1.00% 0.83% 511.20 170.96 RATE CD /NJ Total 2017 1,996,000 2.48% 04/19/2017 $49,308.75 0.73% 0.79 $2,082,522.83 $2,017,150.55 17.07% 2.44% 0.73% $-65,372.28 $18,613.67 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2018 ALLY BK UT US RT 01.2500% CD 248,000 1.25% 02/26/2018 3,100.00 0.79% 1.64 248,000.00 100.761 249,887.28 2.11% MAT 02/26/18 FIXED RATE CD 1.24% 0.79% 1,887.28 1,061.64 /UT GOLDMAN SACHS BK U NY US CD 248,000 1.30% 02/26/2018 3,224.00 0.94% 1.63 248,000.00 100.597 249,480.56 2.11% RT 01.3000% MAT 02/26/18 1.29% 0.94% 1,480.56 1,1 12.94 FIXED RATE CD /NY BANK OF NRTH CAROL NC US RT CD 245,000 1.00% 02/27/2018 2,450.00 0.88% 1.65 0.00 100.192 245,470.40 2.08% 01.0000% MAT 02/27/18 FIXED 1.00% 0.88% 245,470.40 20.14 RATE CD /NC MERRICK BK UT US RT 00.9000% CD 245,000 0.90% 05/10/2019-- 2,205.00 0.74% 1.84 245,000.00 100.290 245,710.50 2.08% MAT 05/10/18 FIXED RATE CD 0.90% 0.74% 710.50 120.82 /UT KEYBANK NA IN US RT CD 245,000 1.00% 05/11/2018 2,450.00 0.84% 1.84 245,000.00 100.289 245,708.05 2.08% 01.0000% MAT 05/11/18 FIXED 1.00% 0.84% 708.05 335.62 RATE CD /IN CONNECTONE BANK NJ US RT CD 245,000 1.00% 05/14/2018 2,450.00 0.85% 1.85 245,000.00 100.287 245,703.15 2.08% 01.0000% MAT 05/14/18 FIXED 1.00% 0.85% 703.15 1 14.1 1 RATE CD /NJ ENERBANK UT US RT 01.3500% CD 240,000 1.35% 10/04/2018 3,240.00 1.05% 2.23 240,000.00 100.661 241,586.40 2.04% MAT 10/04/18 FIXED RATE CD 1.34% 1.05% 1,586.40 230.79 /UT Total 2018 1,716,000 1.11% 04/30/2018 $19,119.00 0.87% 1.81 $1,471,000.00 $1,723,546.34 14.59% 1.11% 0.87% $252,546.34 $2,996.07 Report created on: July 01, 2016 Page 3 of 7 Bond holdings - as of June 30, 2016 (continued) Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Total 2019 Effective rating/ Underlying rating (Mdy/Fitch/S&P) Quantity Coupon Effective Call date/ maturity Call price ($) Est. annual income ($)/ Curr. yield (%) YTM (%)/ Modified YTW (%) duration Adjusted cost basis ($)/ Unreal.g/I ($) Market price ($) Mkt. value ($)/ Accr. interest ($) % of bond port. Maturing 2019 2.03% 1.25% $32,849.45 $6,488.42 WORLD'S FOREMOST B NE US RT CD 200,000 1.30% 05/28/2019 2,600.00 1.56% 2.85 200,000.00 99.262 198,524.00 1.68% 01.3000% MAT 05/28/19 FIXED Underlying rating 1.31% 1.56% YTM (%)/ Modified -1,476.00 cost basis ($)/ 28.49 Mkt. value ($)/ RATE JUMBO CD /NE (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. RIVERSIDE CA CMNTY COLGE Aa2/NR/AA 500,000 2.35% 08/01/2019 11,725.00 1.19% 2.95 507,485.00 103.504 517,520.00 4.38% TAX SR B BE/R/ 2.345 NR/NR/NR 500,000 2.09% 05/01/2020 2.27% 1.19% 3.67 10,035.00 103.073 ' 4,852.85 4.36% 080119 DTD 052914 /CA NR/NR/NR 2.03% 1.27% 15,370.00 1,712.64 AMERICAN EXPRESS F UT US RT CD 247,000 2.15% 11/13/2019 5,310.50 1.23% 3.24 247,000.00 103.035 254,496.45 2.15% 02.1500% MAT 11/13/19 FIXED CD 245,000 1.30% 05/11/2020 2.09% 1.23% 3.76 7,496.45 100.894 698.37 2.09% RATE CD /UT 1.29% 1.06% 2,190.30 165.79 CIT BK SALT LAKE C UT US RT CD 240,000 2.10% 11/13/2019 5,040.00 1.23% 3.25 240,000.00 102.871 246,890.40 2.09% 02.1000% MAT 11/13/19 FIXED CD 245,000 1.30% 05/20/2020 2.04% 1.23% 3.79 6,890.40 100.691 662.79 2.09% RATE CD /UT 1.29% 1.12% 1,692.95 87.26 BARCLAYS BK DE US RT CD 240,000 2.05% 12/17/2019 4,920.00 1.21% 3.34 240,000.00 102.854 246,849.60 2.09% 02.0500% MAT 12/17/19 FIXED CD 245,000 1.40% 11/13/2020 1.99% 1.21% 4.22 6,849.60 100.784 175.23 2.09% RATE CD /DE 1.39% 1.22% 1,920.80 488.66 AMERICAN EXPRESS C UT US RT CD 100,000 2.15% 12/18/2019 2,150.00 1.25% 3.34 100,000.00 103.054 103,054.00 0.87% 02.1500% MAT 12/18/19 FIXED 1,235,000 1.64% 06/15/2020 2.09% 1.25% 3.82 3,054.00 70.68 10.63% RATE CD /UT 1.61% 1.19% $21,174.05 $2,454.35 Total 2019 1,527,000 2.08% 09/26/2019 $31,745.50 1.25% 3.12 $1,534,485.00 $1,567,334.45 13.26% 2.03% 1.25% $32,849.45 $6,488.42 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2020 MASS ST GO CONSOL LN TAX SR Aa1/AA+/AA+ 500,000 2.09% 05/01/2020 10,450.00 1.27% 3.67 499,995.00 103.073 515,365.00 4.36% B BE/R/ 2.090 050120 DTD NR/NR/NR 2.03% 1.27% 15,370.00 1,712.64 052814 /MA MB FINL BK NA IL US RT CD 245,000 1.30% 05/11/2020 3,185.00 1.06% 3.76 245,000.00 100.894 247,190.30 2.09% 01.3000% MAT 05/11/20 FIXED 1.29% 1.06% 2,190.30 165.79 RATE CD /IL CENTENNIAL BANK AR US RT CD 245,000 1.30% 05/20/2020 3,185.00 1.12% 3.79 245,000.00 100.691 246,692.95 2.09% 01.3000% MAT 05/20/20 FIXED 1.29% 1.12% 1,692.95 87.26 RATE CD /AR FIRST BUS BK WI US RT CD 245,000 1.40% 11/13/2020 3,430.00 1.22% 4.22 245,000.00 100.784 246,920.80 2.09% 01.4000% MAT 11/13/20 FIXED 1.39% 1.22% 1,920.80 488.66 RATE CD /WI Total 2020 1,235,000 1.64% 06/15/2020 $20,250.00 1.19% 3.82 $1,234,995.00 $1,256,169.05 10.63% 1.61% 1.19% $21,174.05 $2,454.35 Report created on: July 01, 2016 Page 4 of 7 Bond holdings - as of June 30, 2016 (continued) Maturing 2021 COMENITY CAP BK UT US RT 01.6000% MAT 06/07/21 FIXED RATE CD /UT COMMUNITY BK CA US RT 01.5500% MAT 06/15/21 FIXED RATE CD /CA EAST BOSTON SVGS B MA US RT 01.5000% MAT 06/23/21 FIXED RATE CD /MA FNMA NTS STEP-UP 01.000 % DUE 111921 DTD 111915 FC 05192016 MIZRAHI TEFAHOT BK CA US RT 01.2500% MAT 11/30/21 STEP RATE CD /CA Total 2021 Maturing 2022 JPMORGAN CHASE & C DE US RT 01.2500% MAT 05/31/22 STEP RATE CD /DE DISCOVER BANK DE US RT 02.4500% MAT 11/18/22 FIXED RATE CD /DE WELLS FARGO BK NA CA US RT 01.6500% MAT 11/23/22 STEP RATE CD /CA Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Effective rating/ 1,880,000 1.25% 09/20/2021 $23,455.00 Est. annual $1,879,100.00 Adjusted $1,881,708.15 15.92% % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. q/I ($) price ($) Accr. interest ($) port. Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity CD 245,000 1.60% 06/07/2021 Unreal. q/I ($) 3,920.00 1.54% 4.74 245,000.00 100.297 245,727.65 2.08% 1.60% 1.54% 727.65 245,000 257.75 05/31/2022 05/31/2017 CD 245,000 1.55% 06/15/2021 245,178.85 3,797.50 1.49% 4.77 245,000.00 100.278 245,681.10 2.08% NA 178.85 0.00 1.55% 1.49% 681.10 11/18/2022 6.06 1.81% 5.89 CD 245,000 1.50% 06/23/2021 3,675.00 1.45% 4.78 245,000.00 100.258 245,632.10 2.08% 707.14 Ed CD 245,000 1.50% 1.45% 632.10 NA NA 70.48 102.031 Aaa/AAA/AA+ 900,000 1.00% 11/19/2021 08/19/2016 9,000.00 NA NA 899,100.00 99.932 899,388.00 7.61% NR/NR/NR 100.00 1.00% NA 288.00 1,025.00 CD 245,000 1.25% 11/30/2021 08/30/2016 3,062.50 NA NA 245,000.00 100.114 245,279.30 2.08% 100.00 1.25% NA 279.30 0.00 Total 2022 735,000 1.79% 09/25/2022 $13,107.50 1.81% 5.89 $735,000.00 $749,579.95 6.34% 1.75% 1.81% $14,579.95 $707.14 Report created on: July 01, 2016 Page 5 of 7 1,880,000 1.25% 09/20/2021 $23,455.00 1.49% 4.76 $1,879,100.00 $1,881,708.15 15.92% 1.25% 1.49% $2,608.15 $1,509.29 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. q/I ($) price ($) Accr. interest ($) port. CD 245,000 1.25% 05/31/2022 05/31/2017 3,062.50 NA NA 245,000.00 100.073 245,178.85 2.07% 100.00 1.25% NA 178.85 0.00 CD 245,000 2.45% 11/18/2022 6,002.50 1.81% 5.89 245,000.00 103.847 254,425.15 2.15% 2.36% 1.81% 9,425.15 707.14 Ed CD 245,000 1.65% 11/23/2022 11/23/2018 4,042.50 NA NA 245,000.00 102.031 249,975.95 2.12% 100.00 1.62% NA 4,975.95 0.00 Total 2022 735,000 1.79% 09/25/2022 $13,107.50 1.81% 5.89 $735,000.00 $749,579.95 6.34% 1.75% 1.81% $14,579.95 $707.14 Report created on: July 01, 2016 Page 5 of 7 Bond holdings - as of June 30, 2016 (continued) Prepared for City of Hutchinson RP 38446 • City of Hutchinson • Business Service Account Risk profile: Conservative Return Objective: Current Income Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. g/I ($) price ($) Accr. interest ($) port. 11,694,000 1.73% 02/14/2020 NA $201,658.25 1.09% 2.54 $11,528,852.83 NA $11,816,344.99 100% Total Bond Portfolio 1.71% 1.08% $287,492.16 $39,346.75 $11,855,691.74 Report created on: July 01, 2016 Page 6 of 7 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2023 FHLMC MED TERM NTS STEP Aaa/AAA/AA+ 1,000,000 1.75% 04/28/2023 10/28/2016 17,500.00 NA NA 1,000,000.00 100.082 1,000,820.00 8.47% 01.750 % DUE 042823 DTD NR/NR/NR 100.00 1.75% NA 820.00 3,013.89 042816 FC 10282016 Total 2023 1,000,000 1.75% 04/28/2023 $17,500.00 NA $1,000,000.00 $1,000,820.00 8.47% 1.75% NA $820.00 $3,013.89 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2024 NEW YORK CITY TRANSITION Aa1/AAA/AAA 500,000 2.60% 11/01/2024 11/01/2022 13,000.00 2.39% 5.80 486,750.00 101.578 507,890.00 4.30% TAX C-3 RV BE/R/ 2.600 NR/NR/NR 100.00 2.56% 2.33% 21,140.00 2,130.56 1 10124 DTD 120412 /NY Total 2024 500,000 2.60% 11/01/2024 $13,000.00 2.39% 5.80 $486,750.00 $507,890.00 4.30% 2.56% 2.33% $21,140.00 $2,130.56 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal.g/I ($) price ($) Accr. interest ($) port. Maturing 2025 HSBC BANK USA DE US RT CD 240,000 2.25% 03/11/2025 03/11/2020 5,400.00 NA NA 240,000.00 102.471 245,930.40 2.08% 02.2500% MAT 03/11/25 STEP 100.00 2.20% NA 5,930.40 0.00 RATE CD /DE Total 2025 240,000 2.25% 03/11/2025 $5,400.00 NA $240,000.00 $245,930.40 2.08% 2.20% NA $5,930.40 $0.00 Effective rating/ Est. annual Adjusted % of Underlying rating Effective Call date/ income ($)/ YTM (%)/ Modified cost basis ($)/ Market Mkt. value ($)/ bond (Mdy/Fitch/S&P) Quantity Coupon maturity Call price ($) Curr. yield (%) YTW (%) duration Unreal. g/I ($) price ($) Accr. interest ($) port. 11,694,000 1.73% 02/14/2020 NA $201,658.25 1.09% 2.54 $11,528,852.83 NA $11,816,344.99 100% Total Bond Portfolio 1.71% 1.08% $287,492.16 $39,346.75 $11,855,691.74 Report created on: July 01, 2016 Page 6 of 7 Planning, Zoning and Building Dept. Quarterly Report 2nd Quarter 2016 Building Department Permit Activities A Commercial New B Commercial/Ind. Remodel C New Single Family 1165 Hwy 7 W (Jay Malone) paint booth- $89,281; 1255 Hwy 7 W (Kings Motel) reroof - $58,000; 904 Lynn Rd SW(Cell tower) repairs- $44,000; 1145 Adams St SE (McKimm) interior remodel - $40,000 1189 Bluejay Dr SW - $247,340; 945 Texas Cir NW - $178,481; 504 Hilltop Dr NE - $206,319; 1205 Dale St SW - $259,704; 1547 9th Ave SW - $184,271; 241 Summerset Ln SE - $168,203 Other Building Inspection Activities April 6 - Caribou Coffee one -stop -shop; may 18 - SW Chapter Mtg; June 1, 6, 7 - fire sprinkler training, Shakopee; June 13 - Aquatic Center design Evergreen Meals served April - June Week of 2nd Qtr. 2015 2nd Qtr. 2016 2015 Year to Date 2016 Year to Date Total Number Inspections Stewart 505 345 179 977 269 511 % of Inspections done within 24 HRS week 2 100.0% 100.00% 92 100.00% 99 100.00% Total Number Plan Review 1118 56 52 595 82 203 78 % of Plan Reviews completed in 21 Days 394 100% 100% 156 100% week 100% Building Permits Issued by Type Number of Permits & Valuation Number of Permits & Valuation Year to Date Number Permits & Valuation Year to Date Number Permits & Valuation Commercial (new) 2 $1,757,000.00 0 $0.00 2 $1,757,000.00 0 $0.00 Commercial ( additions/remodels) 32 $3,961,554.00 18 $438,346.00 46 $4,359,904.00 26 $566,052.00 Total Commercial 34 $5,718,554.00 18 $438,346.00 48 $6,116,904.00 26 $566,052.00 Industrial (new) 0 $0.00 0 $0.00 0 $0.00 0 Industrial (additions/remodels) 0 $0.00 01$0.00 0 $0.00 0 $0.00 Total Industrial 0 $0.00 0 $0.00 0 $0.00 0 $0.00 Fire Sprinkling 2 $36,352.00 0 $0.00 3 $72,350.00 1 $950.00 New Residential 9 $1,626,003.00 6 $1,244,318.00 10 $1,781,070.00 6 $1,244,318.00 Residential misc (additions/remodels) 41 $325,850.00 39 $167,531.00 64 $437,750.00 58 $395,323.00 Set Fee permits (reside, reroof, window) 213 $0.00 184 $0.00 267 225 HRA Permits 2 $22,000.00 1 $0.00 3 $28,980.00 1 $0.00 Waived Fees 0 $0.00 0 $0.00 2 $0.00 0 $0.00 Subtotal Building Permits 301 $7,728,759.00 248 $1,850,195.00 397 $8,437,054.00 317 $2,206,643.00 Mechanical 50 $434,133.00 47 $122,416.00 76 $703,233.00 84 $217,638.00 HRA Mechanical 2 $0.00 1 $900.00 2 3 $900.00 Plumbing 29 $0.00 26 $0.00 45 33 HRA Plumbing 0 $0.00 1 $0.00 0 1 Signs 19 $20.00 23 $72.00 27 $52.00 34 $400.00 Total Valuation 14011 $8,162,912.00 346 $1,973,583.00 1 5471 $9,140,339.00 472 $2,425,581.00 *Set fees not included in valuation A Commercial New B Commercial/Ind. Remodel C New Single Family 1165 Hwy 7 W (Jay Malone) paint booth- $89,281; 1255 Hwy 7 W (Kings Motel) reroof - $58,000; 904 Lynn Rd SW(Cell tower) repairs- $44,000; 1145 Adams St SE (McKimm) interior remodel - $40,000 1189 Bluejay Dr SW - $247,340; 945 Texas Cir NW - $178,481; 504 Hilltop Dr NE - $206,319; 1205 Dale St SW - $259,704; 1547 9th Ave SW - $184,271; 241 Summerset Ln SE - $168,203 Other Building Inspection Activities April 6 - Caribou Coffee one -stop -shop; may 18 - SW Chapter Mtg; June 1, 6, 7 - fire sprinkler training, Shakopee; June 13 - Aquatic Center design Evergreen Meals served April - June Week of Hutchinson Park Towers Silver Lake Glencoe Brownton Stewart week 1 559 179 51 269 60 153 week 2 1112 276 92 576 99 299 week 3 1118 294 149 595 107 203 week 4 1025 394 199 564 156 261 week 681 217 65 311 78 123 4495 1360 556 2315 500 1039 Total Meals served April - June 10265 Dates Closed 30 -May Planning and Zoning Quarterly Activities Year: 2nd Quarter, 2016 Activity Number Additional Info. Number of Planning Applications Reviewed and 19 Consideration of a Lot Split, Preliminary Processed and Final Plat of Southwind Fifth Addition and Rezone from R-1 to R-2 located at 1550 Sherwood St SE; Consideration of a Site Plan, Variance to building height and Conditional Use Permit for High School renovations in a R-2 zone located at 1200 Roberts Rd SW; Consideration of a Site Plan, Variance to reduce setbacks and Conditional Use Permit for drive through to build a new Caribou Coffee/Einstein Bagel in a C-4 zone located at 1100 Hwy 15 S; Consideration of a Preliminary and Final Plat located at 210 Hassan St SE; Consideration of a Site Plan, Preliminary and Final Plat for an apartment building located at 1315 Montreal St SE; Consideration of a Variance to construct a detached garage in the front yard located at 1011 Lewis Ave SW; Consideration of a Conditional Use Permit to remodel an existing office space into a salon in the C-5 Conditional Commercial zoning district located at 300 Hwy 7 W; Resolution of the City of Hutchinson Planning Commission Finding that a modification to the development program for development district No. 4 and a tax increment financing plan for tax increment financing district No. 4-18 conforms to the general plans for the development and redevelopment of the City; Consideration of a Conditional Use Permit to construct a 40 x 80 finished metal building in an I/C zoning district located at 805 Hwy 7 W parcel B Number of Joint Planning Board Applications 1 Consideration of a Sketch Plan Review Reviewed and Processed for a Lot Split at 20719 210th St, Acoma Township Number of Planning Commission Meetings 3 Consideration of a Preliminary and Final Plat located at 210 Hassan St SE; Consideration of a Site Plan, Preliminary and Final Plat for an apartment building located at 1315 Montreal St SE; Consideration of a Variance to construct a detached garage in the front yard located at 1011 Lewis Ave SW; Consideration of a Conditional Use Permit to remodel an existing office space into a salon in the C-5 Conditional Commercial zoning district located at 300 Hwy 7 W; Consideration of a Lot Split, Preliminary and Final Plat of Southwind Fifth Addition and Rezone from R-1 to R-2 located at 1550 Sherwood St SE; Consideration of a Site Plan, Variance to building height and Conditional Use Permit for High School renovations in a R- 2 zone located at 1200 Roberts Rd SW; Consideration of a Site Plan, Variance to reduce setbacks and Conditional Use Permit for drive through to build a new Caribou Coffee/Einstein Bagel in a C-4 zone located at 1100 Hwy 15 S; Consideration of a Sketch Plan for 3, 29 unit apartment buildings located at 1315 Montreal St SE; Consideration of a Site Plan and Conditional use permit for Mid Country Bank Number of Joint Planning Meetings 0 Number of Zoning Reviews for Building Permits 25 (Compliance with Zoning Code) Number of Land Use Permits Issued -(Fences, 56 small sheds, patios, driveways, detached decks, etc.) Number of Zoning Review for Sign Permits 23 Number of Predevelopment/Pre Application Caribou Coffee, Hwy 15 So. Meetings Commercial, Hotel, residential property owner, Highfield Apartments Number of Misc. Planning Meetings 57 Resource Allocation - 2 City Council - 6 Directors Meeting - 2 Public Arts - 2 PBZ Staff Mtg - 5 Mid Country Bank - 2 Dakota Rail - 6 Planning Staff mtg - 3 Facilities - 6 Al Koglin Caribou one-stop-shop Wayfinding Signage Hotel Steve Johnson Josh Bruin Fire Dept. walk through Corporate Mechanical Candice @ Liquor Hutch PD/Parks PCI credit card training John Hantge Aquatic Center Highfield Apartments - 2 Ian McDonald Treasure Shed Historic Church County Zoning Dept. Todd Brandel Signage Contractor McLeod Solid Waste SEH Number of Zoning Enforcement Cases 6 Number of Walk-In Customers Served 1064 Site Visits 20 Sign violation; Post Office; MidCountry; 430 Water St; High School; Freedom Site MINUTES HUTCHINSON PLANNING COMMISSION Tuesday, June 21, 2016 5:30 p.m. 1. CALL TO ORDER 5:30 P.M. The June 21, 2016 Planning Commission meeting was called to order by Chair Hantge at 5:30 p.m. Members in bold were present Chair Hantge, Commissioner Kirchoff, Commissioner Kalenberg, Commissioner Norton, Commissioner Arndt, Commissioner Wick, and Commissioner Fahey. Also present were Dan Jochum, City Planner, Kent Exner, City Engineer, Marc Sebora, City Attorney, and Kyle Dimler, City Building Official. 2. PLEDGE OF ALLEGIANCE 3. CONSENT AGENDA A. CONSIDERATION OF MINUTES DATED MAY 17, 2016. Motion by Commissioner Arndt, Second by Commissioner Norton. Motion approved. Motion to Approve — Motion to Reject 4. PUBLIC HEARINGS A. CONSIDERATION OF A VARIANCE TO CONSTRUCT A DETACHED GARAGE IN THE FRONT YARD LOCATED AT 1011 LEWIS AVE SW. Dan Jochum, City Planner addressed the Commission. Mr. Jochum reviewed the lot and proposed garage project on the site of 1011 Lewis Ave. SW. Mr. Jochum reviewed the subject application as included in the Staff report in the Commissioners' packets. Mr. Jochum noted that 4 lots along Lewis Ave. and 2nd Ave. SW have garages in their front yards and 3 of those 4 have obtained variances as required. Mr. Jochum reviewed the required practical difficulties in complying with the official control: 1) Reasonableness, is the use reasonable? 2) Uniqueness, is the difficulty caused by the uniqueness of the land and not the preference of the land owner? 3) Essential character, will the essential character of the locale change if the variance is granted. Staff believes that this application meets the 3 -part test of practical difficulties. Minutes Hutchinson Planning Commission June21, 2016 Page 2 Commissioner Arndt asked if the house on the subject lot is currently over the property line. Mr. Jochum noted that the line Commissioner Arndt was referring to is somewhat skewed due to the angle at which the aerial photo was taken. Commissioner Fahey asked if the proposed garage would be in line with other nearby garages located in front yards. Mr. Jochum indicated that it is approximately in line. Jim Christopherson, applicant addressed the Commission and noted that the proposed location of the garage would be approximately 25 feet from the house and 83 feet from the garage to the street curb. Mr. Jochum noted that the Commissioners did receive one letter from an adjoining neighbor requesting the Commission consider the author's objection to this proposal. Chair Hantge asked if 1005 Lewis Ave. Lee Stretesky applied 10/26/2004 variance to construct a garage in the front yard Adrian Peterson 1005 Lewis Ave. SW addressed the Commission. Ms. Peterson noted that when the garage was built on her property the owner at the time asked for input from neighboring property owners. Ms. Peterson noted her belief that her property value may be decreased by having a large garage built adjacent to her lot. Ms. Peterson noted that she is concerned that constructing numerous garages in front yard space along Lewis Ave. SW will result in a tunnel feel. George Dostal 1014 Lewis Ave. SW. Mr. Dostal stated that he purchased his property because Lewis Ave. SW was the nicest street and town and would like to see it remain the same. Mr. Dostal noted that Lewis Ave. SW is a unique area and he would like to keep it that way. Commissioner Fahey asked Mr. Dostal if he objected to the variance in 2004. Mr. Dostal noted he did. Mr. Jochum noted Staff recommends the garage siding and roofing to match the house on the property, screening provided on south and east sides of garage, and any required moving of utilities would be solely at the owner's expense, existing drainage patterns are not to be altered. Commissioner Wick asked if Staff would recommend a small drainage ditch on the east side of the garage. Minutes Hutchinson Planning Commission June21, 2016 Page 3 Mr. Jochum noted that the applicant would be responsible to submit a proposed drainage plan. Mr. Christopherson noted that his proposed garage will be lower than the one adjacent to his. Motion by Commissioner Norton, Second by Commissioner Wick to close public hearing at 5:54 p.m. Motion approved unanimously. Motion by Commissioner Norton, Second by Commissioner Hantge to approve with staff recommended conditions. Approved unanimously. Item will be on City Council's consent agenda next Tuesday. Motion to close hearing — Motion to approve with staff recommendations — Motion to reject B. CONSIDERATION OF A CONDITIONAL USE PERMIT TO REMODEL AN EXISTING OFFICE SPACE INTO A SALON IN THE C-5 CONDIDTIOANL COMMERCIAL ZONING DISTRICT LOCATED AT 300 HWY 7 W. Dan Jochum, City Planner addressed the Commission. Mr. Jochum reviewed the application as included in the Commission's packets. Mr. Jochum noted that there are no exterior changes proposed to the subject building. Mr. Jochum noted Staff recommends approval with conditions 1-4 as include in the packets. Commissioner Arndt asked what the remainder of the building would be. Mr. Jochum noted it would not change from what it currently is. Motion by Commissioner Fahey, Second by Commissioner Wick to close public hearing at 5:59 p.m. Motion approved unanimously. Motion by Commissioner Fahey, Second by Commissioner Wick to approve with staff recommended conditions. Approved unanimously. Item will be on City Council's consent agenda next Tuesday. Motion to close hearing — Motion to approve with staff recommendations — Motion to reject Minutes Hutchinson Planning Commission June21, 2016 Page 4 C. CONSIDERATION OF A SITE PLAN, PRELIMINARY AND FINAL PLAT FOR AN APARTMENT BUILDING LOCATED AT 1315 MONTREAL ST SE. Dan Jochum, City Planner, addressed the Commission. Mr. Jochum introduced Chris Rayman from Koepers Development group to review the application. Mr. Rayman noted to the west will be an out lot and to the south there will be a storm water detention pond that is ultimately planned to be returned to the City's ownership. Mr. Rayman noted there is planned to be a green courtyard in between each of the proposed buildings on the site. Mr. Rayman noted there will be a combination of stone veneer and vinyl siding to help break up the mass of the structure. Mr. Rayman noted that construction is planned to move from the east to the west as the market drives demand. The planned color palate is to be blue/gray/beiges. Commissioner Arndt asked about planned lighting for the site. Mr. Rayman noted that the lighting will be directed downward and comply with local lighting regulations. Mr. Rayman stated that they plan to provide numerous trees and will work with the City Engineer and Forester to verify appropriate plantings. Mr. Jochum reviewed the number of units planned for each building. The buildings will be 31 feet tall and each dwelling unit will be accessed from interior hallways. Mr. Rayman noted there will be 19 garage stalls per building. Mr. Jochum noted that all setbacks appear to be met in the proposal. However, Mr. Jochum noted that there is a significant elevation difference between the subject property and the adjacent single family dwellings to the east. Staff recommends that screening trees on the easterly side of this property be place on the upper flat portion of the property rather than in the existing slope on the eastern border. Mr. Jochum also stated that Staff notes the 3:1 slope proposed is quite steep and wants to ensure the landscaping can be maintained. Commissioner Wick asked how the applicant plans to stabilize a 3:1 grade. Mr. Rayman stated the plan is to mowed grass in this location. Mr. Rayman also noted the eastern garages are broken up by stone veneer and architectural components. Chair Hantge asked who the intended market is for these apartments. Minutes Hutchinson Planning Commission June21, 2016 Page 5 Mr. Rayman indicated that this development company has developments throughout the state, apartments are market rates and 20% TIF funded units. Bruce Naustdal, 1175 Dale St. SW addressed the Commission. Mr. Naustdal noted he owns property on Bradford St. SE and asked for clarification of where this proposal is located in relation to his property. Mr. Jochum reviewed the proposed location of the apartment buildings and the garages would be approximately 20' from the easterly Motion by Commissioner Norton, second by Commissioner Wick to close public hearing at 6:18 p.m. Mr. Jochum noted Condition 12 should include screening of the garages as well as the parking lot. Motion by Commissioner Norton to approve with 16 Staff recommended conditions, second by Commissioner Kalenberg. Motion approved unanimously. Item will be on City Council consent agenda next Tuesday. Motion to close hearing — Motion to approve with staff recommendations — Motion to reject D. CONSIDERATION OF A PRELIMINARY AND FINAL PLAT LOCATED AT 210 HASSAN ST SE. Dan Jochum, City Planner, addressed the Commission. Mr. Jochum noted that this application is basically a plat to formalize a lot that will allow proceeding forward with the MidCountry Bank project that the Commission has reviewed multiple times over the past several months. Motion by Commissioner Fahey, Second by Commissioner Arndt to close the public hearing at 6:21 p.m. Motion by Commissioner Fahey, Second by Commissioner Norton to approve with staff recommended conditions. Approved unanimously will be on Council consent agenda next Tuesday evening. Motion to close hearing — Motion to approve with staff recommendations — Motion to reject Minutes Hutchinson Planning Commission June21, 2016 Page 6 5. NEW BUSINESS 6. UNFINISHED BUSINESS None. 7. COMMUNICATION FROM STAFF A. Upcoming Meetings Mr. Jochum noted that Staff has received one application for a new building to be constructed on a lot on West Hwy 7 for the July Planning Commission meeting. Mr. Jochum noted that there are also some training opportunities available for Commission members who are interested. Mr. Jochum asked Commissioners to see him if they are interested. 8. ADJOURNMENT Motion by Commissioner Arndt, Second by Commissioner Wick to adjourn at 6:24 p.m. IFUNAPPROVED MINUTES Library Board Meeting Minutes Monday, June 27, 2016 @ 4:35 p.m. Present: Jon Ross, Dianne Wanzek, Mary Christensen, Gerry Grinde, Jack Sandberg, Steve Bailey, and Katy Hiltner, Ex -Officio Excused: Julie Lofdahl Jon Ross called the meeting to order. The minutes from the May 23, 2016 meeting were reviewed. Motion made to approve minutes with the correct spelling of Jack Sandberg's last name. Motion made and seconded. Minutes approved as written. Guest Speaker: Children's Librarian Sherry Lund talked about the summer reading program "Read for the Win!" Youth Librarian Kris Jones has been working very hard on the teen program. To date, 68 teens are enrolled in the program. One of the teen activities is a teen bookmark contest. A winner from this contest will have his/her bookmark design featured during October's Teen Read Week at the library. The children's program is also showing a strong turnout this summer. To date, 481 children are signed up for the children's program, and they have until Saturday, July 2"d to register. Lund shared with board members the assortment of prizes including treat coupons from Dairy Queen (ice cream treats), Culver's (ice cream treats and meal coupons), and Below Zero (frozen yogurt coupons). In addition, Buffalo Wild Wings donated food coupons for use during the teen and children's reading programs. A complete list of prize donors and supporters of the summer reading program will be posted in the library. In addition, each child who completes week 1 of the reading program will receive a bag which includes a flyer naming all of this year's donors and supporters. Thanks to all the merchants — way to go! It's a wonderful summer program that instills the value of reading. Thanks to all involved. Lund also talked about her activity "Find Froggy" in the library. Stickers are given when a child finds "Froggy" hidden in the library. r)1d Riicinacc- Genealogy Xchange Group - Thursday, May 26 at 7:00 Stephanie Chappell presented "A Soldier's Story" A total of 12 people attended the presentation held at the Hutchinson Public Library. Presenter Stephanie Chappell's next project is to secure a grave marker for Nathan Weeks, the "lost soldier" who resides in Oakland Cemetery. As the Genealogy Xchange group continues to evolve and grow, Katy reported that she plans to support the group like a "book club." Members will be offered use of the meeting room and help with publicity. In addition, Katy will be available to help facilitate specific programs should the group like to invite in speakers. However, like the book groups which meet at the library, the Genealogy Exchange Group will not be library -sponsored. Katy is hoping a member of the group will step forward to serve as the group's facilitator and contact person. Pioneerland Library Passport — Kay Johnson wrote a nice article in the Hutchinson Leader. Katy put together four prize packs to be given away at the end of the contest on Monday, Aug. 29, 2016. Board member Jack Sandberg is still interested in partaking in the Library Passport program. His goal is to bike at least a portion of the 31 libraries. It was suggested that he send photos of his trip so people may follow his travels on Facebook. Summer Schedule/Library Staff — Two library assistant "subs" have been added to the staff schedule. These Library Assistant IIs (who work in Litchfield and Dassel) will be available to fill in on an "as needed" basis. The addition of these "subs" will provide some flexibility for other LAlls working in Hutchinson. Library Parking — Due to patron complaints over lack of parking, Katy is checking with the city to find out if "reserved" library parking spaces can be made available. The addition of Novation Banking has lessened the parking spots near the library. One solution the board suggested is to add 2 "senior parking" spots beside the already existing handicap parking spots. Board members also suggested that Katy keep track of patron complaints. New Business: Crazy Days — The Friends of the Library will be advertising their indoor library sale table "The Book Nook." Patrons will be encouraged to watch this table for deals on books, DVDs and CDs. Publicity flyers will be posted around the library, and Board member Christensen offered to post a sign at the ticket table for the Friday, July 8, Picnic in the Park. Hutchinson Arts and Crafts Festival — Legacy Grant: Ready, Go Art Project - Mike Hoyt, a sketch artist with the Read, Go Art Project, will be sharing his "One Another" mobile art program with those visiting the Hutchinson Arts and Crafts Festival on Friday, Sept. 16th. All funding for this program is will be paid with Legacy Funds through the Pioneerland Library System. Legacy Grant: Family History Research series - Libraries are partnering with Lori-Pickell-Stangel. This program, in partnership with the McLeod County Historical Society and Museum, will share genealogy classes at each of the public libraries in McLeod County (Brownton, Glencoe, Hutchinson and Winsted). All four cities will have 9 classes. The Legacy Grant, written by Katy, totals $5,100 and covers the costs for speaker fees, travel, handouts and materials, and publicity. The programs will be free of charge. More details of exact schedule to come. Other - Question: follow up on question from last meeting: how much does it cost in taxes for residents to use a library? Libraries are free for anyone to use "on site" but they need a library card in a region to check out books, use OverDrive, etc. Every city and/or county levies differently and contributes differently; the 'per capita" contributions differ greatly. Katy's Review: Katy had her 6 -month review with PLS Director Laurie Ortega on Thursday, June 23, 2016. Motion to adjourn and seconded. Meeting adjourned at 5:25 pm. Next meeting: July 25, 2016 at 4:30 p.m. Minutes submitted by Mary Christensen, Library Board Member May 2016 Donations Lois E. Young (large print books in memory of Carol Busch) $ 50.00 Greater Minnesota Republican Women's Group (donation of children's books) 77.98 Total $ 127.98