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cp09-26-2017C CITY OF HUTCHINSON MCLEOD COUNTY HUTCHINSUN, MINNESOTA Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350-2522 Phone 320-587-5151. Fax 320-234-4240 NOTICE OF A SPECIAL CITY COUNCIL WORKSHOP Tuesday, September 26. 2017 4:30 p.m. Council Chambers -- Hutchinson City Center Notice is hereby given that the Hutchinson City Council has called a special workshop meeting for Tuesday, September 26, 2017, at 4:30 p.m. in the Council Chambers at the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, Minnesota for the following purpose: • Review Wastewater Treatment Facility Solar Array Items DATED: September 21, 2017 POSTED: City Center Matthew(Ie6nich, City Ad nistratar HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, SEPTEMBER 26, 2017 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. (a) Approve the Council agenda and any agenda additions and/or corrections 2. INVOCATION — Christ the King Lutheran Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 14777 - Acceptance of Cash Donation from Hutchinson Elks Lodge for Inclusive Park Project 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 September 12, 2017 (b) Workshop Meeting of September 12, 2017 CONSENT AGENDA (The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed.) 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of Parking Stalls/Street Closure for Mural Mounting and Unveiling on October 6 & 7, 2017 (b) Consideration for Approval of Spooky Sprint Event on October 28, 2017 (c) Consideration for Approval of Improvement Project Supplemental Agreement/Change Order 1. Supplemental Agreement No. 1 —Letting No. 2, Project No. 17-02 (School Road and Roberts Road Reconstruction) 2. Change Order No. 2 — Letting No. 6, Project No. 17-06 (Hotel Site Access Improvements) (d) Consideration for Approval of Declaration of Private Tree as a Nuisance and Setting Public Hearing for October 10, 2017 (e) Consideration for Approval of Purchase Order for Harmony Lane Lift Station CITY COUNCIL AGENDA SEPTEMBER 26, 2017 Rehabilitation (f) Consideration for Approval of Items for City Alley 952 Improvement Project (Letting No. 14, Project No. 17-14) 1. Resolution No. 14778 - Resolution Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment 2. Resolution No. 14779 - Resolution for Hearing on Proposed Assessment (g) Consideration for Approval of Setting Public Hearing for Wellhead Protection Plan on October 24, 2017, at 6:00 p.m. (h) Consideration for Approval of Accepting Quote from Nu -Telecom for Phone Services (i) Consideration for Approval of Issuing Massage License to Hui Wang of Angel's Massage LLC 0) Consideration for Approval of Issuing Short -Term Gambling License to ISD 423 Foundation on September 30, 2017 (k) Consideration for Approval of Items Related to LJM Addition 1. Resolution No. 14771 — Resolution Adopting Findings of Fact and Reasons for Approval of a Preliminary and Final Plat for LJM Addition at 579 2nd Avenue SE, Larry Murphy, Applicant with Favorable Planning Commission Recommendation 2. Resolution No. 14770 — Resolution Adopting Findings of Fact and Reasons for Approval of a Conditional Use Permit to Allow a Post Frame Addition to an Existing Building and a New Post Frame Building for a Construction Company at 579 2nd Avenue SE in an I -C Zoning District, Larry Murphy, Applicant with Favorable Planning Commission Recommendation (1) Consideration for Approval of Resolution No. 14772 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit for a Brewery and Tap Room in a C-4 Zoning District Located at 900 Hwy 15 South, Daniel Hart, Applicant, with Favorable Planning Commission Recommendation (m) Consideration for Approval of Resolution No. 14776 — Resolution Approving the Vacation of a Portion of City Right of Way on Lots 3, 4 and 5 Block 1 Bridgewater Estates 2nd Addition, Hutchinson with Favorable Planning Commission Recommendation (n) Claims, Appropriations and Contract Payments PUBLIC HEARINGS — 6:00 P.M. 8. TIF DISTRICT ESTABLISHMENT AND MODIFICATION FOR HOTEL PROJECT (a) Resolution No. 14784 — Resolution Adopting a Modification to the Development Program for Development District No. 4 and Establishing Tax Increment Financing District No. 4-19Therein and Adopting a Tax Increment Financing Plan Therefor (b) Resolution No. 14785 — Resolution Authorizing an Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. 4-19 COMMUNICATIONS RE UESTS AND PETITIONS (T e purpose oJ this portion oJ the agenda is to provide the Council with information necessary to craft wise policy. 2 CITY COUNCIL AGENDA SEPTEMBER 26, 2017 Includes items like monthly or annual reports and communications from other entities.) 9. REVIEW OF SCHOOL ROAD TOWNHOME ACCESS/DRIVEWAY CONFIGURATION 10. DISCUSSION OF PLACING DYNAMIC SIGN IN LIBRARY SQUARE 11. REVIEW OF CITY RESIDENTIAL LEAF VACUUM SERVICE 12. DISCUSSION ON COUNCIL CHAMBER DECOR AND THE PRESERVATION OF CITY PLATS UNFINISHED BUSINESS NEW BUSINESS 13. APPROVE/DENY RESOLUTION NO. 14773 — RESOLUTION SETTING HUTCHINSON REDEVELOPMENT AUTHORITY 2018 PRELIMINARY TAX LEVY 14. APPROVE/DENY RESOLUTION NO. 14774 — RESOLUTION SETTING HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY 2018 PRELIMINARY TAX LEVY 15. APPPROVE/DENY RESOLUTION NO. 14775 — RESOLUTION APPROVING THE GENERAL FUND AND DEBT SERVICE FUND PRELIMINARY 2017 TAX LEVIES 16. APPROVE/DENY SETTING TRUTH -IN -TAXATION HEARING FOR DECEMBER 5, 2017, AT 6:00 P.M. 17. APPROVE/DENY RESOLUTION NO. 14781 — DECLARING INTENT ON BONDING REIMBURSEMENT 18. APPROVE/DENY REPLACEMENT OF FIRE DEPARTMENT SELF CONTAINED BREATHING APPARATUS 19. APPROVE/DENY ORDINANCE NO. 17-777 - AN ORDINANCE AMENDING CHAPTERS 93 AND 95 OF THE HUTCHINSON CITY CODE TO ACCOMMODATE THE ESTABLISHMENT OF A DOG PARK (FIRST READING, SET SECOND READING AND ADOPTION FOR OCTOBER 10, 2017) 20. ITEMS RELATED TO THE ESTABLISHMENT OF A DOG PARK (a) Approve/Deny Dog Park Rules and Conditions Policy (b) Approve/Deny Dog Park Layout 21. APPROVE/DENY RESOLUTION NO. 14783 — RESOLUTION DECLARING ADEQUACY OF PETITION FOR POTENTIAL IMPROVEMENT TO CITY ALLEY 917 22. APPROVE/DENY COUNCIL APPOINTMENTS TO TRUNK HWY 15/MAIN STREET PROJECT ENGAGEMENT GROUP 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.) CITY COUNCIL AGENDA SEPTEMBER 26, 2017 23. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS �a) City of Hutchinson Financial Report and Investment Report for August 2017 b) Hutchinson Housing & Redevelopment Authority Board Minutes from August 15, 2017 (c) City of Hutchinson Tall Grass/Noxious Weed Report for August 2017 NUSCELLANEOUS 24. STAFF UPDATES 25. COUNCIL/MAYOR UPDATE ADJOURNMENT .19 HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Resolution 14777 Approving Cash Donations Department: Finance LICENSE SECTION Meeting Date: 9/26/2017 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 OFAGENDA ITEM: The Hutchinson Elks Lodge donated $17,001.43 to reimburse the City for the final costs involved in implementing Phase 11 of the Inclusive Park project. A financial summary of Phase 11 follows: $39,437 Playbooster system $ 5,950 Concrete sidewalk to playground $ 2,564 Playground recycled base and pad $47,951 Total Phase 11 Costs $30,950 Original Phase 11 donation from the Elks 2/27/2017 $17,001 Final Phase 11 donation from the Elks 9/14/2017 $47,951 Total Phase 11 Donations BOARD ACTION REQUESTED: Approve Resolution No. 14777 accepting the donation. 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. 14777 RESOLUTION ACCEPTING DONATION 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 persons or entities have offered to contribute the cash amounts set forth below to the city: Name of Donor Amount Donation Date Hutchinson Elks Lodge $17,001.43 9/14/2017 WHEREAS, such donation has been contributed to the City of Hutchinson as a donation to the Elks Inclusive Park project. 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 September 2017. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL MEETING NHNUTES TUESDAY, SEPTEMBER 12, 2017 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 John Lofdahl, Chad Czmowski, Mary Christensen and Steve Cook. Others present were Matt Jaunich, City Administrator, Kent Exner, City Engineer and Marc Sebora, City Attorney (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— Due to the absence of a pastor, the invocation was dispensed and a moment of silence was observed. 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 14765 - Acceptance of Cash Donation from Hutchinson Rotary Foundation Matt Jaunich noted that the Hutchinson Rotary Foundation initially provided a $40,000 donation to the City and has committed to donating $5000 annually to the Rotary Park improvements. This Resolution formally accepts the $5000 donation. Motion by Czmowski, second by Cook, to approve Resolution No. 14765. Motion carried unanimously. 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 Steve Bruhn, 924 Merrill Street SW, presented before the Council. Mr. Bruhn noted that he would like to talk about the Linden Park ballfield replacement with the ponding system. Mr. Bruhn noted that several years ago he attended a meeting noting that the Linden Park area was one of the lowest in the city. Mr. Bruhn questioned the necessity of the ponding system due to the topography of the land in the area and the fact that several homes do not have gutters on them. Mr. Bruhn feels that other things could be done to stop basement flooding and street flooding rather than building a ponding system. Darlene Westphal, 322 School Road SW, presented before the Council. Ms. Westphal noted that she attended the last Council meeting noting her concerns about the lack of access points on School Road now due to the new road construction. Driveway accesses were removed as part of the new construction and Ms. Westphal no longer has a proper driveway as she used to. She noted that she has trouble getting into and out of her garage due to the lack of access from School Road. Mr. Exner began to explain engineering factors that went into the removal of access points along School Road, however the Council determined that an agenda CITY COUNCIL MINUTES SEPTEMBER 12, 2017 item would be set at the next Council meeting to discuss this matter. 6. APPROVAL OF MINUTES (a) Regular Meeting of August 22, 2017 (b) Workshop Meeting of August 22, 2017 Motion by Christensen, second by Czmowski, to approve minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed.) 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of Resolution No. 14754 — Resolution Establishing Authorization to Execute MnDOT Airport Maintenance and Operation Grant Contract (b) Consideration for Approval of Change Order No. 1 — Letting No. 6, Project No. 17-06 (Hotel Site Access Improvements) (c) Reappoint Marsha Anderson to PRCE Board to August 2020 (d) Consideration for Approval of Authorizing Landy Lodge Bar & Grill to Dispense Liquor at Arts & Crafts Festival (e) Consideration for Approval of Issuing Parade Permit to Hutchinson High School Student Council on September 29, 2017 (f) Claims, Appropriations and Contract Payments Motion by Cook, second by Czmowski, to approve Consent Agenda. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 8. 2ND AVENUE BRIDGE REPLACEMENT (LETTING NO. 2, PROJECT NO. 18-02) (a) Resolution No. 14767 - Resolution Ordering Improvement and Preparation of Plans and Specifications (b) Resolution No. 14768 - Resolution Approving Plans and Specifications and Ordering Advertisement for Bids Kent Exner, City Engineer, presented before the Council. Mr. Exner noted that in 2014 a feasibility study was completed which found that the 2nd Avenue Bridge SE was in overall poor condition. Mr. Exner noted that $400,000 has been dedicated from the State Bridge Bonding grant funding to the City. Therefore, staff would like to start the project delivery process associated with the 2nd Avenue SE Bridge Replacement project. This Ehearing is to initiate the final design process and ultimately solicit construction bids. As a result of the feasibility study that was completed, two options were identified - either replacement with 4'x4" sidewalk or replacement with 12' multi -use trail. The estimated construction costs associated with these two options are $849,732 and $988,429, respectively. Staff is looking for the Council's input regarding the administering of this project's bidding process and the preferred option. This project is included within the currently proposed Capital Improvement Plan and will be reviewed by the Resource Allocation Committee as the project delivery/funding process proceeds in the future. Also, this project will require the relocation of an existing watermain by 2 CITY COUNCIL MINUTES SEPTEMBER 12, 2017 open -cutting the nearby river bid. Motion by Cook, second by Christensen, to open the public hearing. Motion carried unanimously. No public comments were received. Motion by Lofdahl, second by Czmowski, to close public hearing. Motion carried unanimously. Mr. Exner asked of the Council their preferred option of the sidewalk or trail. Motion by Cook, second by Christensen, to approve Resolution Nos. 14767 and 14768, which is the base bid including a 12' multi -use trail. Roll call vote was taken: Christensen — aye; Lofdahl — aye; Cook — aye; Czmowski — aye; Forcier - nay. Motion carried 4 to 1. NIlVIUNICATIONS REQUESTS AND PETITIONS purpose oJ this portion oJ the agenda is to provide the Council with information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) 9. REVIEW OF TRUNK HWY 15/MAIN STREET RECONSTRUCTION PROJECT RECENT PUBLIC MEETINGS AND FUTURE PROJECT ACTIVITIES Kent Exner, City Engineer, presented before the Council. Mr. Exner provided an overview of the information that was provided at the public meetings on the Hwy 15/Main Street reconstruction project. The project includes full reconstruction of Hwy 15 and underground utilities between 2nd Avenue North and 5d' Avenue South. Pavement resurfacing will take place between 5d' Avenue South and just south of Denver Avenue. Complete reconstruction will be done on Main Street/Hwy 15 through downtown. The sidewalks and pedestrian crossings will be updated along the project area to meet ADA standards. The City will also be replacing, updating and modernizing underground utilities. The benefits of the project will include smoother road surface, modernize sanitary sewer, water main and storm sewer, help ensure city and state infrastructure serves their purpose for many years and the City reviews this project as an opportunity to enhance downtown and improve livability in the central district. Mr. Exner provided details on the proposed section widths of the roadway. Mr. Exner noted that the truck detour utilizes Hwy 22 to the east between Hwy 7 and Airport Road (County Road 115). Construction is scheduled to begin in Spring 2020. The project will take an entire construction season with final work occurring in 2021. Construction will be from building face to building face. All street, sidewalk and in will be replaced. Multiple excavations will be required. Work will be phased to limit time of disturbance. Close coordination with the Chamber of Commerce and others will be required. With regard to ADA improvements, extensive survey, design and construction efforts are required. Close coordination with building owners will be required. The project includes inspection of building basements that will be completed in September 2017. Public involvement and outreach will be held over the next couple of years. The design process will include preliminary design, traffic and environmental studies being completed in 2017 with final detailed design starting in 2018 and projecting letting proposed for November 2019. Steve Bruhn, 924 Merrill Street, presented before the Council. Mr. Bruhn stated that the newspaper reported that the redesign of Main Street is proposed to help reduce accidents on Main Street. Mr. Bruhn asked how many accidents there were in 2016. Mr. Exner noted he did not have the data at hand but the accidents are mainly rear -end crashes along with a few pedestrian accidents. Mr. Bruhn also had concerns with the width of the parking lanes and driving lanes. Mr. Exner explained that a project engagement group is being formed to provide input and feedback throughout the extensive project development and delivery process. The group will act as a conduit to engage multiple organizations, stakeholders, interests and perspectives. The group will also develop a consistent project -related public message and approach and CITY COUNCIL MINUTES SEPTEMBER 12, 2017 participate in the various steps of the formal design review process required of the city prior to MnDOT's approvals. The participant roster will consistent of about 12 invitees ideally and will meet the first Thursday of the month at the Chamber offices. The participant roster will include one or two council members. Council Member Cook suggested adding a consultant in the arts area and use planning dollars for their costs. It was suggested that this consultant be added after the group has been in place for a while. At the next Council meeting, a council member or two will be appointed to this group as well as identify a representative from the Public Arts Commission and Historic Hutchinson. Council Members will also seek downtown business owners to serve on the group. UNFINISHED BUSINESS 10. APPROVE/DENY ORDINANCE NO. 17-776 — AN ORDINANCE AMENDING SECTION 154.141(0) — DYNAMIC SIGNS (SECOND READING AND ADOPTION) Matt Jaunich, City Administrator, noted that this is the second reading and adoption of the ordinance. No changes have been made to it since its first reading at the last meeting. Motion by Cook, second by Czmowski, to approve second reading and adoption of Ordinance No. 17-776. Motion carried unanimously. NEW BUSINESS 11. APPROVE/DENY DOG PARK PROJECT PLANS Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that in late June, at the Council's direction, staff began working on plans for a dog park. As part of the planning, staff applied for a grant but has been informed that they were not awarded the grant. The total cost of the dog park is estimated at $57,100. A private donation in the area of $10,000-$11,000 has been designated toward the park and the remaining costs will be coming out of the Community Improvement Fund. The park will include fencing, water service, waste station/signage, garbage cans and benches. Mr. Jaunich presented four options to the park, which could be constructed in phases. Option 91 would be the initial project ,which would be approximately 1.3 acres, 1.230 L.F. of chain link fence with swing gates, water service line, animal waste stations/signage, garbage cans and benches. Option 2 to the project would include an additional .5 acres and additional 145 L.F. of chain link fence. Option 3 to the project would include an additional .7 acres and additional 480 L.F. of chain link fence. Option 4 to the project would include a 70'x66' paved parking lot which would include 12 regular parking stalls and one handicap stall. None of the options include provisions for lighting within the park, restrooms, additional play features, water fountain, hardscape or additional benches/garbage cans/pet waste stations, etc. Amy Solinger, 525 Harvest Street SW, presented before the Council. Ms. Solinger noted she has some concerns over only a 4' fence because she feels large dogs may be able to jump over them. Ms. Solinger also noted that she does not feel a bench is a necessity at this time and she also expressed that perhaps the blue trash cans used in other parks be used instead of the steel garbage cans proposed. Ms. Solinger suggested that the waste stations and benches be sponsored or donated down the road. She then suggested using those savings to have fencing for all three options of the proposed areas. .19 CITY COUNCIL MINUTES SEPTEMBER 12, 2017 Cynthia (unknown last name) presented before the Council. Cynthia noted that this dog park is very important to dog owners. Cynthia suggested doing both Options 1 and 2 right away and have a small dog park designated and a large dog park designated. Cynthia expressed that she feels spending the additional $3500 for Option 2 is well worth it from the start of the proj ect. Motion by Czmowski, to approve Option 1 of the dog park project plans. Amended motion by Czmowski, second by Lofdahl, to approve Option 1 and 2, eliminating two benches and replacing steel garbage cans with blue plastic garbage cans. Cary Prosser, 375 1" Avenue NW, presented before the Council. Mr. Prosser asked that none of the waste cans be removed permanently. Motion carried unanimously. 12. APPROVE/DENY REQUEST FOR FUNDING FROM MCLEOD COUNTY HISTORICAL SOCIETY Lori Pickell-Stangel, McLeod County Historical Society, presented before the Council. Ms. Pickell-Stangel noted that a goal of the historical society is to allow tours of the museum at no cost. The current cost is $3/adult; $2/senior and $1/student. Many in the public see this fee as a barrier to touring the historical and art galleries at the museum. The Museum is proposing a community contribution of $.50 per person, based on the most recent government census for each community in McLeod County. This means that based on the Hutchinson 2016 population of 13,888 x $.50 per person, the City of Hutchinson would have a 2018 contribution of $6944. The Museum feels that by making tours free, local visitor participation will increase each year. Mr. Jaunich noted that although state statute allows cities to appropriate funds to historical societies and for historical work, staff questions if the funds can be used for admissions for tours. Ms. Pickell-Stangel noted that funds can be appropriated for preserving, distributing and exhibiting materials which is really what she feels the funds would be allocated for. Motion by Czmowski, second by Forcier, to deny funding request to McLeod County Historical Society. Discussion was held on different ways the City could make a contribution to the historical society. Council Member Czmowski expressed that he feels McLeod County should be funding the museum. Roll call vote was taken: Christensen — nay; Cook — nay; Czmowski — aye; Forcier — aye. Lofdahl abstained due to him being on the McLeod County Historical Society board. Mr. Jaunich noted that a 2-2 vote is essentially a no vote or that the motion did not pass. The City Attorney and City Administrator suggested looking further into what sort of contribution is allowable by law to the historical society. Council Members Cook and Christensen suggested Ms. Pickell-Stangel keep the Council updated on the position of other communities that she is making this same request to. 13. APPROVE/DENY RESOLUTION NO. 14769 — RESOLUTION PROVIDING FOR THE 5 CITY COUNCIL MINUTES SEPTEMBER 12, 2017 SALE OF $17,455,000 PUBLIC UTILITY REVENUE BONDS, SERIES 2017B Jeremy Carter, HUC General Manger, presented before the Council. Mr. Carter noted that the HUC is requesting of the Council to authorize the pre -sale of the 2017B bonds to finance the acquisition and installation of two new Caterpillar Generator units in the downtown generation facility and early redemption of the outstanding 2003B bonds. HUC estimates the new generating units will be operational by the end of 2018. HUC is estimating total project costs of $16.6 million. Based on the proposed debt structure and interest rates, HUC is projecting $1,246,000 annually in principal and interest. A capacity contract with Rice Lake Utilities to supply 20 MW of capacity off the new units will generate $1,176,000 annually in revenue leaving a deficit of $70,000 to be offset collectively by HUC's operating revenues, additional market or energy sales from the new units or future capacity contracts. HUC authorized redeeming the outstanding balance on the 2003B bonds in anticipation of issuing 2017B bonds. Redeeming the 2003B bonds will result in an approximate savings of $50,000 in interest costs and reduce the number of outstanding debt issuances moving forward. HUC is currently in a sound cash position to take advantage of redeeming the bonds early. With the current interest rates, it is advantageous since HUC is unable to invest that amount of money over a 4 -year timeframe to generate interest earnings comparable to the debt interest rates costs. Nick Anhut, Ehlers & Associates, presented before the Council. Mr. Anhut explained the details of the pre -sale report that he put together. Motion by Czmowski, second by Christensen, to approve Resolution No. 14769. Motion carried unanimously. 14. APPROVE DENY RESOLUTION NO. 14766 — RESOLUTION PROVIDING FOR THE SALE OF 2017 GENERAL OBLIGATION IMPROVEMENT BONDS Andy Reid, Finance Director, presented before the Council. Mr. Reid noted that annually the City issues 429 general obligation improvement bonds to finance major infrastructure capital expenditure projects. The 2017 bonding includes financing for the following projects: Denver Avenue extension; School Road and Roberts Road reconstruction; School Road and Roberts Road trail; Hwy 7 & Hwy 15 hotel site access roadway; and City Alleys 936 & 952 improvements. Upon approval, the City's financial advisor will initiate the process. Nick Anhut, Ehlers & Associates, presented before the Council. Mr. Anhut explained the details of the pre -sale report that he put together for the $2,535,000 General Obligation Improvement Bonds, Series 2017A. The bonds are being issued for a 15.5 -year term. Motion by Cook, second by Czmowski, to approve Resolution No. 14766. Motion carried unanimously. 15. APPROVE/DENY SALE OF FIRE TRUCK Mike Schumann, Fire Chief, presented before the Council. Chief Schumann explained that the fire department is finalizing the fleet reduction process with the sale of "Engine -3", a 1992 General fire truck. Engine -3, and recently sold Engine 5, have been replaced by a 2016 rel CITY COUNCIL MINUTES SEPTEMBER 12, 2017 Rosenbauer rescue/pumper, "Engine 2" multipurpose fire truck. The Silver Lake Fire Department is the primary mutual aid partner for the HFD and has expressed an interest in acquiring this truck to replace a much older engine/pumper currently in their fleet. Based on similar sales, the HFD is recommending to sell this truck to SLFD for $10,000. Motion by Christensen, second by Czmowski, to approve sale of fire truck. Motion carried unanimously. 16. APPROVE/DENY ASSISTING IN COST OF ENGINEERING STUDY FOR DAKOTA Council Member Cook explained that at one of the last McLeod County trails meetings, it was suggested that an engineering study be completed of the Dakota Rail Trail. It is estimated that the study will cost approximately $50,000. Generally, the City has expressed an interest in this project since the beginning and have agreed to partner in other ways regarding the paving of the Dakota Rail Trail. The City has also noted in its annual goals/objectives its desire to continue to support the efforts to improve trail corridors of value/benefit to the City. The initial thought is a contribution from the City of $10,000- $15,000. Funding would likely come out of the Community Improvement Fund or planning dollars. The County Board did approve the study at their last board meeting on a 3-2 vote. The study entails a comprehensive engineering evaluation of the trail corridor. Motion by Cook, second by Lofdahl, to approve assisting in cost of engineering study for Dakota Rail Trail in the amount of $15,000. Motion carried unanimously. 17. APPROVE/DENY VOLUNTARY ASSESSMENT TO THE COALITION OF GREATER MINNESOTA CITIES ENVIRONMENTAL ACTION FUND Mr. Jaunich noted that the Coalition of Greater Minnesota Cities has requested of the City to make a voluntary payment to the environmental action fund as it did in 2015. At that time, the City did make a voluntary payment in the amount of $4740, however it was done with a direct purpose to assist the CGMC in their fight to seek an amendment to or a repeal of the state's new riverine standards and to pursue a federal lawsuit challenging the EPA's approval of those standards. Last year the City did not participate because it did not feel there was a specific purpose and the request was very broad in nature. The City noted at that time that the CGMC already represents its members' interest on issues related to the environment and that those costs were covered through the City's regular annual dues. Staff has reviewed the current request and is recommending not to participate in the voluntary assessment solicitation. Staff believes that CGMC should or could account for the "environmental action" within the City's general assessment. The City's general assessment in 2018 is $28,620. The general assessment does include a 3% surcharge to help fund the Environmental Action Fund. The voluntary assessment would be over and above this 3% surcharge. Council Member Cook noted that he had spoken with Daniel Marx of CGMC who provided much more detail on the use of the funds from the voluntary assessment. A large part of this assessment will be used towards CGMC's work regarding the Minnesota Pollution Control Agency's (MPGA) unlawful implementation of new water quality standards. With this information, and more detailed information that Mr. Marx has provided, staff expressed that they are comfortable with the voluntary assessment. Motion by Lofdahl, second by Cook, to approve voluntary assessment to the Coalition of Greater Minnesota Cities Environmental Action Fund. Motion carried unanimously. 7 CITY COUNCIL MINUTES SEPTEMBER 12, 2017 18. APPROVE/DENY SETTING COUNCIL WORKSHOP FOR OCTOBER 10, 2017, TO REVIEW FACILITIES MASTER PLAN Mr. Jaunich noted that the final report should be received and presented with recommendations at this workshop. Motion by Lofdahl, second by Christensen, to set Council workshop for October 10, 2017, at 4:00 p.m. to review facilities master plan. Motion carried unanimously. 19. APPROVE/DENY SETTING ANNUAL CITY RECOGNITION EVENT/PUBLIC MEETING FOR OCTOBER 26, 2017 Mr. Jaunich explained that this is the annual recognition event that is held each Fall. Motion by Cook, second by Forcier, to set annual City recognition event for October 26, 2017, at Hutchinson Event Center. Motion carried unanimously. GOVERNANCE (The purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 20. MINUTES FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Resource Allocation Committee Meeting Minutes from August 1, 2017 & September 2017 NHSCELLANEOUS 21. STAFF UPDATES Kent Exner — School Road/Roberts Road project is going well with the trail work on Roberts Road recently starting. Hotel access road improvements have begun and are going well. Parking Lot I work is ongoing and the alley is now closed in this area. 22. COUNCIL/MAYOR UPDATE Mary Christensen — Council Member Christensen asked if mosquito spraying is complete. Kent Exner noted that the spraying applications are completed for the season. ADJOURNMENT Motion by Christensen, second by Cook, to adjourn at 8:40 p.m.. Motion carried unanimously. HUTCHINSON CITY COUNCIL REVIEW OF 2018 PRELIMINARY BUDGET MINUTES TUESDAY, SEPTEMBER 12, 2017, AT 4:00 PM CITY CENTER — COUNCIL CHAMBERS 1. Call to Order Mayor Forcier called the workshop to order at 4:00 p.m. Members present included Mary Christensen, Steve Cook, Chad Czmowski and John Lofdahl. Others present were: Matt Jaunich, City Administrator, and other City directors REVIEW OF 2018 PRELIMINARY BUDGET 2. 2018 Preliminary Budget Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that today's agenda will include a review of the state budget impact, preliminary levy and past levies, general fund revenue and expenses, proposed staff changes, enterprise funds revenue and expenses, debt management plan and next steps. Mr. Jaunich also reviewed the City's mission statement, the six core areas of focus and five long-term goals the Council should consider every budget season. Those goals include: 1. What should future tax levies look like? 2. What levels of services should the City perform and provide in the future? 3. What is an acceptable level of debt? 4. What is our level of investment in technology and equipment, and what period of payback is acceptable? 5. What are our future infrastructure needs (roads, utilities, buildings, etc.) and how are we going to pay for them? Mr. Jaunich reminded the Council that the City Charter requires staff to submit an annual budget by September 1St. The City Charter also requires the Council to act on the preliminary budget by the second regular meeting in September. After the preliminary levy is set, it can only be lowered, not raised. The Council will need to set the date and time of its Truth -in -Taxation hearing and the budget will be adopted in mid -late December. Mr. Jaunich reported that the State legislature approved a $1.44 billion tax bill that will have a positive effect on the City's budget in 2018 including a $15 million permanent increase to LGA. The increase will impact the City's LGA payment in a positive manner by $100,252. A state surplus exists in the estimated amount of $540 million. The next budget forecast is expected in October but unallotments and levy limits are not expected to be in place in the near future. Staff is proposing to increase the general tax levy by 2.1%, with a 3.8% increase in the EDA and HRA tax levy, with a total tax impact of 2.1%. Mr. Jaunich provided an overview of past tax levies with percent change breakdowns and changes with an average increase of 2% since 2010. Mr. Jaunich provided the Council four options for the Council to consider for the preliminary tax level. The first option would hold both levies flat; the second option would increase the general fund levy by 2% and the debt levy by 0%; the third option would increase the general fund levy by 3% and the debt levy by 0%; and the fourth option would increase the general fund levy by 5% and the debt levy by 0%. The third option is the recommendation of staff with an overall total levy percent increase of 2.1%. Mr. Jaunich provided a market value history which is a 3.8% increase from 2017 to 2016. Mr. Jaunich reviewed general fund revenues and how they are proposed to be increased and decreased, with an average of a 4.6% increase. Property taxes see an increase of 3%; other taxes increase 1.7%; licenses & permits increase 12.2%; intergovernmental revenue increase 8.7%; charges for service increase of 2.3%; no increase in fines & forfeitures, decrease of 7.4% in miscellaneous revenue, increase of 9.7% in transfers -in and no increase in the fund balance. The general fund revenues include a 3% tax levy increase. The general fund revenues include an increase of the transfer from the HUC in the amount of $210,520 or 9.2%. This includes a renegotiated PILOT payment from 2.75% of operating revenue to 4.75 % with a three-year phase in. Next year's payment will be 3.25%. The increase in LGA is also included in the general fund of $100,252 which is a 100% increase due to legislative changes. Mr. Jaunich posed the questions whether or not the LGA payment should be split between the general fund and the capital fund. Staff is expecting most of the other revenue sources to remain relatively flat. Mr. Jaunich also noted that a 1% tax levy increase in the general fund is equivalent to $47,518. Mr. Jaunich spoke about the LGA allocation changes. These include 46% of LGA in 2018 being allocated to the general fund and 54% going to the capital fund. The split was 43%/57% in 2017 and the split was 38% and 62% in 2016. Originally, when it was first split out of the general fund in 2011, the split was 40% and 60%. The 2018 LGA amount is $611,054 higher than the 2011 amount. General fund expenses are proposed to increase 5.4%. Wages & benefits are increased 7.2%, supplies increased 2.2%, services & charges increased 2.2%, miscellaneous expenses increased 0.7%, transfers -out remained flat and no increase in capital outlay. Mr. Jaunich then reviewed general fund revenue and expenses. Mr. Jaunich noted that the largest impact on the City's general fund expenses is associated with wages and benefits which includes costs for general performance increases and insurance increases/staff timing changes and minor shift. Staff has budgeted for a 15% increase in health insurance, but the increase could be much higher. Additional staff proposed include adding another building inspector, adding another public works employee (25FTE being paid from general fund and the remaining coming from enterprise funds), increased hours for park staff and shifting the DMV structure from 1FT/4PT to 3FT/2PT. The FT building inspector position is due to the rental inspection program falling behind due to large business of building permits. About half of the cost of the position will be covered by additional revenue from permits due to increase demand. The increased hours of the current PT parks staff is to increase maintenance efforts, customer service and to cover additional programming. The FT position in Public Works will focus on water, sewer & storm sewer maintenance and focus on preventive maintenance on the distribution and collection system. The shift in DMV staffing will help with turnover and additional staff hours are needed to address changes at the State. Mr. Jaunich then reviewed staffing levels over the years. Mr. Jaunich reviewed the enterprise funds and their proposed increases. Mr. Jaunich noted that fund numbers include depreciation. He noted that the liquor fund continues to do well, as well as other utility funds. There are no proposed rate changes for garbage, water and sewer. There will be a slight rate increase in the stormwater rates. There will be no changes in transfers to the general fund from the enterprise funds. Additional budget factors include a $9.69 million capital improvement plan, no significant staffing cuts and/or changes in service, no new programs/services being added, staffing costs and capital needs are the biggest driver of the city's budget with staffing costs behind the request for a tax levy increase, a budgeted amount of a 15% increase in health insurance costs and fund balances continue to remain healthy. Mr. Jaunich then briefly reviewed the debt management plan. Mr. Jaunich reviewed the following considerations: a 1% levy increase is equal to $69,518, staff is proposing a preliminary City tax levy increase of 2.1%, combined with the EDA and HRA levy increases, the total tax impact to Hutchinson residents will be the equivalent to a 2.1% increase, the current budget is not balanced by $96,267, this would require a preliminary tax levy increase of 3.4% to cover current deficit, the current proposed tax levy increase would have a minimal impact on property taxes due to the increase in value and a 3.4% levy increase would have a minor impact on property taxes. Mr. Jaunich also reviewed the two factors behind a levy increase which include general wage and benefit increases expected to cost the city $397,627 (5.7% overall levy increase with an 8.4% increase to the general fund) and new positions and salary adjustments are expected to cost $187,016. A more significant tax increase is being avoided by a $100,252 increase in LGA and a $210,520 increase in the PILOT. Council Member Lofdahl suggested considering Option #4, with a 5% levy increase, for the preliminary budget in case the health insurance costs come in higher than budgeted. Again, the levy can always be decreased before final adoption. Council Member Cook suggested perhaps delaying hiring the new positions until later in 2018, however that will still impact the budget and the levy down the road. He also suggested perhaps shifting some of the LGA, especially if a 5% tax levy is considered. Formal action of the preliminary budget will be taken at the September 26, 2017, Council meeting. Mr. Jaunich noted he will bring two options forward for the Council to consider. 3. Adjournment Motion by Cook, second by Czmowski, to adjourn the workshop at 5:10 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Street Closure Department: Police LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Daniel T. Hatten Agenda Item Type: Presenter: Daniel T. Hatten Reviewed by Staff ✓❑ consent Agenda Time Requested (Minutes): 2 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: On Saturday October 7, 2017 at 9:30 am until 10:30 am there will be an unveiling ceremony on the west side of the Ace Hardware building. Mr. David Wegscheid is requesting Hassan Street be closed between Washington Avenue and 1st Avenue NE on Saturday October 7, 2017 between the hours of 9:00 am and 12:00 pm. Mr. Wegscheid is also requesting on Friday October 6, 2017 at 9:00 am the parking stalls directly in front of the west side of the Ace Hardware building be blocked off to unload and mount the mural panels to the building. To insure these parking stalls are available at the time requested the police department will secure these stalls prior to 6:00 am on Friday October 6th. I have reviewed the plans submitted by Mr. Wegscheid and look forward to working with him on this event. BOARD ACTION REQUESTED: Recommend approval Fiscal Impact: $ 0.00 Funding Source: N/A FTE Impact: 0.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: 5K family Run/Walk (Spooky Sprint) Department: Police LICENSE SECTION Meeting Date: 9/26/2017 Application Complete Yes Contact: Daniel T. Hatten Agenda Item Type: Presenter: Daniel T. Hatten Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 2 License Contingency No Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The 5K family Run/Walk is set for Saturday October 28, 2017. We are in the planning stages for a 5k (3.1 mile) family fun run and walk to be staged in Hutchinson with a start time of 9AM. The proceeds of this run will go to the REACH program at the Hutchinson High School. We want to take advantage of a great resource in town, the area around the Library (Library Square). As such, we would like to start and end this race there, on 1 st Ave SE. We realize that having a 3 mile run throughout the city may cause disruption, so we are attempting to run on city streets for about 20% of the total run distance. The remainder would be run on the Luce Line Trail. Our goal is to offer 2 runs, a 5k run and walk, and a 'h mile dash for children. The 'h mile dash will begin at 9:15AM, the 5k run and walk will begin at 9:30AM. Each participant will be required to sign a waiver stating the following: "I am properly trained and enter this walk/run totally at my own risk and hereby waive all claims that I or my heirs may have against all sponsors, walk/run directors and all others associated with this walk/run, for any injuries or problems I may sustain, regardless of any negligence. I am totally responsible for my safety and any injury I may suffer." The Hutchinson Police Department has reviewed and approved the proposed route. The organizers are seeking approval for closure of 1st Ave SE for this run. They will also be running down Adams Street towards the Luce Line. Adams will not need to be closed off. We will be using cones to create a separation lane on Adams Street SE. 1st Ave SW will be closed from Main St to Adams St during the hours of 6:00 am until 12:00 pm or as determined by the Hutchinson Police Dept on Saturday October 28, 2017. The businesses impacted by this temporary closure will be notified and their customers impacted by this closure will be given access to the businesses during the street closure. The organizers understand there may be costs associated with this Traffic Control and have accounted for this in their budget. We are looking forward to this annual event in Hutchinson, and to continuing it in the years to come. BOARD ACTION REQUESTED: I recommend approval. Fiscal Impact: $ 0.00 Funding Source: n/a FTE Impact: 0.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL c`=y-f 0' a_ � Request for Board Action 79 M-W Agenda Item: Approval of Improvement Project Change Order & Supplemental Agreement Department: PW/Eng LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: As construction has proceeded on the below listed projects there has been additional work, project scope revisions, and/or construction completion date changes. The items specified below have been identified and deemed necessary to satisfactorily complete the projects per the intent of the original construction contract. The following Change Orders and/or Supplemental Agreements are proposed as noted: - Supplemental Agreement No. 1 — Letting No. 2/Project No. 17-02 — School Road & Roberts Road Reconstruction This Supplemental Agreement addresses revisions to the project construction phasing interim completion dates due to additional work and weather conditions. These changes result in no increase to the Contract amount. This agreement does not affect the original Final Completion Date. - Change Order No. 2 — Letting No. 6/Project No. 17-06 — Hotel Site Access Roadway Improvements This Change Order addresses the need to install an additional stormwater manhole. These changes result in a total increase to the Contract in the amount of $3,080.00. This work does not affect the Interim Completion Date or Final Completion Date. BOARD ACTION REQUESTED: Approval of Change Order & Supplemental Agreement Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: STATE AID FOR LOCAL TRANSPORTATION SUPPLEMENTAL AGREEMENT City/ of City of Hutchinson Supplemental Agreement No. 1 Page 1 of 1 FEDERAL PROJECT NO. STATE PROJECT NO. LOCAL PROJECT NO. CONTRACT NO. NA SAP 133-117-014 & 133-116-003 L2P17-02 L2P17-02 CONTRACTOR NAME AND ADDRESS LOCATION OF WORK R & R Excavating School Rd SW & Roberts Rd SW 1149 Hwy 22 South TOTAL SUPPLEMENTAL AGREEMENT AMOUNT Hutchinson, MN 55350 $0.00 This Contract is between the Local Government Entity and Contractor as follows: WHEREAS: Due to additional work and weather conditions the Interim Completion Dates for Phase 2A, Phase 2B and Phase 3 will be increased as follows: * Phase 2A Interim Completion Date will be changed from July 14th, 2017 to July 17th, 2017. * Phase 2B Interim Completion Date will be changed from July 28th, 2017 to August 4th, 2017. * Phase 3 Interim Completion Date will be changed from August 25th, 2017 to September 1st, 2017. NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED AND UNDERSTOOD THAT: 1. The Interim Completion Dates are hereby changed as follows: * Phase 2A Interim Completion Date will be changed from July 14th, 2017 to July 17th, 2017. * Phase 2B Interim Completion Date will be changed from July 28th, 2017 to August 4th, 2017. * Phase 3 Interim Completion Date will be changed from August 25th, 2017 to September 1st, 2017. 2. The Final Completion date will not be affected as a result of this agreement as may be provided by MnDOT Specification 1806. 3. The Contractor will not make claim of any kind or character whatsoever for any other costs or expenses which he may have incurred or which he may hereafter incur in performing the work and furnishing the materials required by this Agreement. COST BREAKDOWN There are no items associated with this Supplemental Agreement. * Funding category is required for federal projects. Approved By Project Engineer: Kent Exner Approved By Contractor: R & R Excavating Approved by the Hutchinson City Council on 0 912 612 01 7. Signed Signed Date: 09/26/2017 Phone: (320) 234-4212 Date: Phone: (320) 587-5918 Original to Project Engineer; Copy to Contractor Once contract has been fully executed, forward a copy to DSAE for funding review: The State of Minnesota is not a participant in this contract; signing by the District State Aid Engineer is for FUNDING PURPOSES ONLY. Reviewed for compliance with State and Federal Aid Rules/Policy. Eligibility does not guarantee funds will be available. This project is eligible for: District State Aid Engineer: Federal Funding State Aid Funding Local funds Date: Hutchinson City Center Engineering Dept., 111 Hassan St SE, Hutchinson NM 55350 320-234-4209 Cityof City of Hutchinson Change Order No. 2 Page 1 of 1 FEDERAL PROJECT NO. STATE PROJECT NO. LOCAL PROJECT NO. CONTRACT NO. NA NA L6 P 17-06 L6 P 17-06 CONTRACTOR NAME AND ADDRESS LOCATION OF WORK Rosti Construction Company of Minnesota Inc 416 Prospect St NE (Hwy 15/Hwy 7/Prospect) P O Box 121 TOTAL CHANGE ORDER AMOUNT Jordan, MN 55352 $3,080.00 In accordance with the terms of this Contract, you are hereby authorized and instructed to perform the work as altered by the following provisions. This Change Order addresses the construction of an additional manhole. This changed results in a total increase in the Contract in the amount of $3,080.00. This work does not affect the Interim Completion Date or Final Completion Date. COST BREAKDOWN Item No. Item Unit Unit Price I Quantity Amount Funding Category No. 001 2104.505 REMOVE CONCRETE PAVEMENT SQ YD $8.00 18 $144.00 2104.511 SAWING CONCRETE PAVEMENT (FULL DEPTH) LIN FT $7.00 31 $217.00 2301.604 CONCRETE PAVEMENT 8.5" LUMP SUM $2,439.00 1 $2,439.00 3882.100 CONTRACTOR 10% ALLOWANCE LUMP SUM $280.00 1 $280.00 Funding Category No. 001 Total: $3,080.00 Change Order No. 2 Total: $3,080.00 * Funding category is required for federal projects. CHANGE IN CONTRACT TIME (check one) Due to this change the Contract Time: a. [ ] Is Increased by Working Days b. [ X ] Is Not Changed [ ] Is Decreased by Working Days [ ] Is Increased by Calendar Days c. [ ] May be revised if work affected the controlling operation [ ] Is Decreased by Calendar Days Approved By Project Engineer: Kent Exner Signed Date: Approved By Contractor: Rosti Construction Company of Minnesota Inc, by (print name) Signed Phone: (320) 234-4212 Date: Original to Project Engineer; Copy to Contractor Approved by Hutchinson City Council 09/26/2017. Siqned Siqned Phone: (952) 492-5527 Mayor, Gary Forcier City Administrator, Matt Januich Date: 09/26/2017 Date: 09/26/2017 Orig. Contract $467,938.55 Prev. CO's $11,628.00 / This CO $3,080.00 Total Revised Contract Amount $482,646.55 HUTCHINSON CITY COUNCIL c`=y-f 0' a_ � Request for Board Action 79 M-W Agenda Item: Set hearing for nuisance tree Department: PW/Eng LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: John Olson Agenda Item Type: Presenter: John Olson Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Public Works staff, including the Arborist, request that a tree be declared a nuisance due to its current condition and that a hearing be scheduled for 6:00 p.m. at the October 10, 2017 City Council meeting. The tree is located at 475 Hwy 7 E. There is a large, dead branch that has the potential to be hazardous to people or property utilizing the right-of-way. As you can see from the drawing provided by Engineering staff, the majority of the tree is on private property. Per City policy, the property having the greatest share of the tree is responsible for maintaining the tree. Attached is the notice that has been sent to the property owner and the advertisement for the hearing. Public Works staff will be on hand to answer any questions. BOARD ACTION REQUESTED: Declare identified tree as a nuisance, schedule a hearing for 6:00 p.m. at the October 10, 2017 City Council meeting. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: September 18, 2017 Charles & Colleen Mallinson 475 Hwy 7 E Hutchinson, MN 55350 Dear Property Owner: City of Hutchinson Public Works Forestry 1400 Adams St SE Hutchinson, MN 55350 Phone (320) 234-4459 Fax (320) 234-6971 A tree on your property has been diagnosed as being a hazardous condition to people or property, considering the current condition of the tree. The tree(s) on your property must be rendered non- hazardous as soon as possible so as not to allow potential harm to people or property. o Please refer to maps/photos attached to help describe the location/condition of the tree. You are hereby notified that as result of the current condition of the tree, you must to take appropriate action to render the tree(s) located on your property non -hazardous. The tree work must be done within 20 days following declaration of the tree as a nuisance following a hearing to be conducted by the City Council on October 10, 2017 at 6:00 p.m. at their regularly scheduled meeting. If you complete the necessary work to render the tree nonhazardous, there will be no need for a hearing. If you need more clarification regarding this notice, please contact me. Should you fail to comply by this deadline; the City is authorized under city ordinance to preform necessary tree work and bill the total removal costs to you or assess the costs against your property. A $50.00 administration fee will be charged for failure to comply within the timeframe specified. There are three payment options: 1) you may choose to do the work or have the work done yourself prior to the deadline established at the hearing; 2) you may choose to have the City and/or their contractor do the work and pay for the work, plus an administrative fee upon completion, or; 3) you may choose to have the City and/or their contractor do the work have the costs, plus an administrative fee assessed to property taxes over a 1, 2 or 3 year period, depending upon the total cost. If you do not complete the work by the deadline or if you do not agree to have the costs billed or assessed up front, any costs the City incurs to complete the work will be tabulated and an assessment hearing will established. Following the assessment hearing, the costs will be assessed to your property. Sincerely, John Olson, Public Works Manager City of Hutchinson 1400 Adams St SE Hutchinson, MN 55350 (320) 234-4219 — department (320) 234-4473 — direct (320) 234-6971— fax (320) 583-8145 — mobile iolson(@ci.hutchinson.mn.us Minnesota Statutes 561.01 NUISANCE; ACTION. Anything which is injurious to health, or indecent or offensive to the senses, or an obstruction to the free use of property, so as to interfere with the comfortable enjoyment of life or property, is a nuisance. An action may be brought by any person whose property is injuriously affected or whose personal enjoyment is lessened by the nuisance, and by the judgment the nuisance may be enjoined or abated, as well as damages recovered. City of Hutchinson City Code §92.001 ASSESSABLE CURRENT SERVICES. (A) Definition. For the purpose of this section, the following definition shall apply unless the context clearly indicates or requires a different meaning. CURRENTSERVICE. One or more of the following: snow, ice or rubbish removal from sidewalks; weed elimination from street grass plots adjacent to sidewalks or from private property; removal or elimination of public health or safety hazards from private property, excluding any hazardous building included in M.S. §§ 463.15 through 463.26, as they may be amended from time to time; installation or repair of water service lines; street sprinkling, street flushing, light street oiling, or other dust treatment of streets; repair of sidewalks and alleys; trimming and care of trees and removal of unsound and insect - infected trees from the public streets or private property; and the operation of a street lighting system. § 92.002 TREE DISEASES. (A) Trees constituting nuisance declared. The following are public nuisances whenever they maybe found within the city: (1) Any living or standing elm tree or part thereof infected to any degree with the Dutch Elm disease fungus Ceratocystis Ulmi (Buisman) Moreau or which harbors any of the elm bark beetles Scolytus Multistriatus (Eichh.) or Hylungopinus Rufipes (Marsh); (2) Any dead elm tree or part thereof, including branches, stumps, firewood or other elm material from which the bark has not been removed and burned or sprayed with an effective elm bark beetle insecticide; (3) Any living or standing oak tree or part thereof infected to any degree with the Oak Wilt fungus Ceratocystis fagacearum; (4) Any dead oak tree or part thereof which in the opinion of the designated officer constitutes a hazard, including but not limited to logs, branches, stumps, roots, firewood or other oak material which has not been stripped of its bark and burned or sprayed with an effective fungicide; and (5) Any other shade tree with an epidemic disease. (B) Abatement of nuisance. It is unlawful for any person to permit any public nuisance as defined in division (A) above to remain on any premises the person owns or controls within the city. The City Council may by resolution order the nuisance abated. Before action is taken on that resolution, the City Council shall publish notice of its intention to meet to consider taking action to abate the nuisance. This notice shall be mailed to the affected property owner and published once no less than one week prior to the meeting. The notice shall state the time and place of the meeting, the street affected, action proposed, the estimated cost of the abatement and the proposed basis of assessment, if any, of costs. At such hearing or adjournment thereof, the City Council shall hear any property owner with reference to the scope and desirability of the proposed project. The City Council shall thereafter adopt a resolution confirming the original resolution with modifications as it considers desirable and provide for the doing of the work by day labor or by contract. (C) Record of costs. The City Administrator shall keep a record of the costs of abatement done under this section for all work done for which assessments are to be made, stating and certifying the description of the land, lots, parcels involved and the amount chargeable to each. (D) Unpaid charges. On or before September 1 of each year, the City Administrator shall list the total unpaid charges for each abatement against each separate lot or parcel to which they are attributable under this section. The City Council may then spread the charges or any portion thereof against the property involved as a special assessment as authorized by M.S. § 429.101, as it may be amended from time to time, and other pertinent statutes for certification to the County Auditor and collection the following year along with the current taxes. (2004 Code, § 92.02) Penalty, see § 92.999 § 92.024 RECOVERY OF COST. (A) Personal liability. The owner of premises on which a nuisance has been abated by the city shall be personally liable for the cost to the city of the abatement, including administrative costs. As soon as the work has been completed and the cost determined, the City Administrator or other official shall prepare a bill for the cost and mail it to the owner. Thereupon, the amount shall be immediately due and payable at the office of the City Administrator. (B) Assessment. (1) After notice and hearing as provided in M.S. § 429.061, as it may be amended from time to time, if the nuisance is a public health or safety hazard on private property, the accumulation of snow and ice on public sidewalks, the growth of weeds on private property or outside the traveled portion of streets, or unsound or insect -infected trees, the City Administrator shall, on or before September 1 next following abatement of the nuisance, list the total unpaid charges along with all other the charges as well as other charges for current services to be assessed under M.S. § 429.101, as it may be amended from time to time, against each separate lot or parcel to which the charges are attributable. (2) The City Council may then spread the charges against the property under that statute and other pertinent statutes for certification to the County Auditor and collection along with current taxes the following year or in annual installments, not exceeding ten, as the City Council may determine in each case. (2004 Code, § 92.24) Penalty, see § 92.999 AGREEMENT I (we), owner(s) of real property at this address: , Hutchinson, MN 55350, hereby petition that improvements be made by identified work on tree(s) on my (our) property determined by the City to be hazardous and/or infected/infested. And, pursuant to Minnesota Statutes, Chapter 429, that the City of Hutchinson shall assess the entire cost of the improvement against my(our) property described and hereby agree to pay the entire cost as apportioned by the city. I (we) agree that the City of Hutchinson will perform the work or secure a minimum of two price quotations for identified tree work from contractors who derive the majority of their income from arboricultural activities. I (we) further agree that the City of Hutchinson will utilize the lowest of the prices received whenever practicable, but may utilize the option that is most able to perform the work in a timely manner. I (we) agree the identified tree work will be done by the City or contractor(s), and I (we) authorize entry onto my (our) property for the City or City's contractor to complete the work in a workmanlike manner. I (we) agree the costs of the tree work will be paid initially by the City of Hutchinson. I (we) further agree that after the City of Hutchinson has incurred the cost of tree work, that cost, plus applicable administrative fees, will be: CHECK ONE OPTION 1) At my (our) option as indicated, I (we) will be billed directly once the work is completed, at which time I (we) agree that I (we) shall make full payment within 30 days. I (we) further agree that if the billing is not paid on or before the date due, a finance charge of 1%% (18% per annum) will be added to any unpaid balance and that any unpaid balance at October 31 of any year will be assessed to my (our) property taxes. I (we) further agree that if assessed, interest rates shall apply to any unpaid balances, consistent with other assessments made by the City during that year. I (we) choose / do not choose terms of the agreement identified in option 1. OR 2) 1 (we) authorize the City to assess 100 percent (100%) of the cost of the tree work, including applicable administrative fees to my (our) property. I (we) agree to pay said costs, as may be determined by the Council of the City to be a fair apportionment of the costs of the tree work. I (we) agree that said assessments shall be assessed over a period of years. (1 year = $0 to $500. 2 years = $501 to $1, 000. 3 years = Over $1, 000) I (we) further agree that the estimated assessment may be exceeded if the increases are a result of specific requests I (we) make or are otherwise approved by me (us) in a subsequent and separate written agreement. I (we) further agree that interest rates shall apply to any unpaid balances, consistent with other assessments made by the City during that year. I (we) expressly waive rights to objection and to any irregularity with regard to the assessments and any claim that the amount that is levied against my (our) property is excessive, together with all rights to appeal in the courts. I (we) choose / do not choose terms of the agreement identified in option 2. Signature of Owner(s) Property Address "& v- 11-44 Moo- umw�w rt,*r arra •, .'�•. ;� - , r. • y- o. !a S'� IF! -1 Ai ------------------- - - - - - - - - - - -- - - - - - - i(• x HIGHWAY 7 E E� 4 IF! -1 Ai ------------------- - - - - - - - - - - -- - - - - - - i(• x HIGHWAY 7 E E� PUBLICATION NO. 8252 NOTICE OF HEARING TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council of Hutchinson, Minnesota, will meet in the Council Chambers of the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, MN, at 6:00 pm on the October 10, 2017, to consider declaring nuisance tree(s) located at 475 Highway 7 E pursuant to Minnesota Statutes, Sections 429.011 to 429.111. The estimated cost of removing said tree(s) is $1,000, the entire cost to be borne by the property owner. A reasonable estimate of the impact of the assessment will be available at the hearing. Such persons as desire to be heard with reference to the tree(s) being declared a nuisance will be heard at this meeting. Dated: 09/18/2017 Matt Jaunich, City Administrator PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS HEARING, WHETHER YOU ARE FOR OR AGAINST THE DECLARATION OF NUISANCE TREE(S), IN ORDER THAT YOUR COUNCIL CAN BE BETTER INFORMED OF A TRUE REPRESENTATION OF OPINION. PUBLISHED IN THE HUTCHINSON LEADER ON WEDNESDAY, SEPTEMBER 20TH, 2017. Charles & Colleen Mallinson 475 Hwy 7 E Hutchinson, MN 55350 Assessable work description: Other costs: TOTAL ESTIMATED COST: ESTIMATED COST City PID No. 32-117-29-12-0190 County PIN 232460090 Property Address: 475 Hwy 7 E Tree removal & cleanup $1,000 City administrative fee $ 50 1050 NOTES: 1. Methods and amounts of estimated assessments are subject to change. 2. Assessments for tree work are typically allocated to properties over: 1 year ($04500) 2 years ($501-$1000) 3 years (over $1,000). (interest rate estimated to be 4 to 6%). 3. Call 320-234-4219 or 320-234-4459 if you have questions regarding the estimated cost. HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Purchase Order for Harmony Lane Lift Station Rehabilitation Department: PW/Eng LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The City received three (3) bids (see attached Letter of Recommendation from Nero Engineering) for the Harmony Lane Lift Station Rehabilitation project. The apparent low bid was submitted by MN Mechanical Solutions of Waite Park, MN, in the amount of $81,500.00. As described within the attached letter, this project is over the estimated construction cost, but the actual bid amount appears to be justifiable and accounts for the current bidding environment. This project's costs and associated funding contributions were reviewed by the Resource Allocation Committee and are accounted for within the City's proposed 2017 Infrastructure Improvement Program. City staff will provide a brief overview of the project scope, bids and schedule. The final City Purchase Order and associated information are attached for your review. We recommend approving the provided Purchase Order and proceeding with this improvement. BOARD ACTION REQUESTED: Approval of Purchase Order Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 81,500.00 Total City Cost: $ 81,500.00 Funding Source: Minnesota Mechanical Solutions Remaining Cost: $ 0.00 Funding Source: city Purchase Order Number Ofi m PURCHASE ORDER De V:;: Wastewater Account 602-4945-90530 Date: 9/18/2017 ........... ........... ......... . .8 U Wvted,6Tim Gratke Check the Appropriate Box- Is Item Budgeted 2] YES El No If not budgeted, where will the money come from? pep; ...... .......... .......... . .............. - ------- ORDERING.11WORMATI .............. ....... ....... ... QUANTITY UNITS DESCRIPTION UNIT PRICE TOTAL I lHarmony Liftstation Rehabilitation I $ 81,500.00 ...... 7 1440 Head of H. ------ ............... .......ON .......... ...... --------------- .... - ------------- ------------- --------------- .. .................... . City Center .................. ...... ......... -M Address S. oping Hutchinson WWTF, 111 Hassan St- SE Attn: Tim Gratke ........... .......... ............. ............ Hutchinson MN, 55350 730 Adams St. SE .............. ................. ................... Hutchinson, MN 55350 IVIN Mechanical Solutions .............................. ............................... ----------- -C . taot N Qh ...... . ............ ...... Greg Braegelmann 313 34th Ave N .................... .................... . .....lVi ............... . .. . ......... . Waite Park, MIN 56387 ... PhoneNo .. .............. 320-444-7940 Fax N .......... ...... ........... Custom 1:1) ....................... Check if only source available and state reason ❑ Check Box 2 .......... .......... . .............. - ------- ORDERING.11WORMATI .............. ....... ....... ... QUANTITY UNITS DESCRIPTION UNIT PRICE TOTAL I lHarmony Liftstation Rehabilitation I $ 81,500.00 IXC TTIwu� $88,000.00 SHIPPINI $112,180.351 $112,180.35 Bidder: Request for Bids Harmony Uft Station Rehabilitation Project City of Hutchinson ' si I' y ] J I 1 r ,Gf7 ARTICLE 3 - BID RECIPIENT 1.1 The Bid is submitted to: City of Hutchinson (Owner) 111 Hassan Street SE Hutchinson, MN 55350-2522 1-2 The undersigned Bidder proposes and agrees, if this Bid is accepted, to enter into an Agreement with owner in the form included in the Bid Documents to perform all Work as specified or indicated in the Bidding Documents for the prices and within the times indicated in this Bid and in accordance with the other terms and conditions of the Bid Documents. ARTICLE 2 - Bi DOE R'S ACKNOWLEDGEMENTS 2.1 Bidder accepts all of the terms and conditions of the instructions to Bidders, 1neludIng without limitation those dealing with the disposition of Bid security. Bidder has not added any conditions or qualifying statements to the Bid. The Bid will remain subject to acceptance for the bid withdrawal time stated in the Advertisement for Bids, or for such longer period of time that Bidder may agree to in writing upon request of the Owner. Bidder will sign and deliver the required number of counterparts of the Agreement with Bonds, evidence of insurance coverage, and other documents required by the Bid Requirements within 7 days after the date of Owner's Notice of Award. ARTICLE 3 - BIDDER'S REPRESENTATIONS 31 In submitting this Bid, Bidder represents, as set forth in the Agreement, that: A. Bidder has examined and carefully studied the Bid Documents, the other related data identified in the Bid Documents, and the fallowing Addenda, receipt of which is hereby acknowledged. Addendum No. Addendum Date B. If specified, or if in Bidder's judgment, any local condition that may affect cost, progress or the performing of the Work, Bidder has visited the Project Site and become familiar with and is satisfied as to the local conditions. Nero Engineering BID FORM Project No. 10011 00400-1 C. Bidder is familiar with and is satisfied as to all federal, state and local Laws and Regulations that may affect cost, progress and the performing of the Work. D. Bidder has carefully studied and correlated the information known to Bidder, and information and observations obtained from Bidder's visits, if any, to the Project Site with the Bid Documents. E. Bidder has given Engineer written notice of all conflicts, errors, ambiguities, or discrepancies that Bidder has discovered in the Bid Documents, and the written resolution thereof by Engineer is acceptable to Bidder. If there has been no written resolution by Engineer, the Bidder has included in the Bid a list of clarifications and exceptions to tha Bid Documents. F. The Bid Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performing the Work for which this Bid is submitted. G. Bidder further represents that: 1. This Bid is genuine and not made In the interest of or on behalf of any undisclosed individual or entity and is not submitted in conformity with any agreement or rules of any group, association, organization or corporation; 2. Bidder has nor directly or indirectly induced or solicited any other Bidder to submit a false or sham Bid; 3. Bidder has not solicited or induced any individual or entity to refrain from bidding; and 4. Bidder has not sought by collusion to obtain for itself any advantage over any other Bidder or over Owner. ARTICLE 4 - BASIS OF BID 4.1 Bidder will complete the Work in accordance with the Contract Documents for the following prices. Item No. Bid Item Description unit of Measure Price (U.S. Dollars) Harmony Lift wa, Bl Station Rehabilitation Lump 5urn ] '4/kb (words) l 16 0 . d 0 (flgures ARTICLES- TIME OF COMPLETION 5.1 Bidder agrees that the Workwill meet the substantial completion date and will be completed and ready for final payment on or before the dates or within the number of calendar days indicated in the Agreement. 5.2 Bidder accepts the provisions of the Agreement as to liquidated damages in theevent of its failure to perform the Work in accordance with the schedule set forth in the Agreement. Nero Engineering BID FORM Project No. 10011 00400-2 If Bidder is: An Individual Name (typed or printed): By: (IndlviduaNs signature] [SEAL] Doing business as: Partnership Partnership Name: (SEAL) By: (Signature of general partner— attach evidence of authority to sign) Name (typed or printed): A Cor aratlan r Corporation Name: 50 ` S (SEAL) State of Incorporation: G Ac 5 Ty:v;;; onal. Service, L' ited Liability): By: a� ce of authority, to sign} Name (typed or printed): f rri Title: (CORPORATE SEAL) Attest: Date of Authorization to do business in State of Minnesota is ! - 6Z�D 1_5 A Joint Venture Name of Joint Venture. First Joint Venturer Name: (SEAL) By: (signature offirsrjoint venture partner --attach evidence of authority to sign) Name (typed or printed): Second Joint Venturer Name: (SEAL) By: (Signature of second joint venture partner— attach evidence of authority to sign) Name (typed or printed): Title: (Each/aintventure must sign. The mannerofsigning foreoch individual, partnership, and corporation that is a party to the joint venture should be in the manner indicated alcove.) Bidder's Business Address: _31 3 _ygl,ti At, tl ?Q /-C- Phone No.: ' - 9s{ [7 Fax No.: SUBMITTED an �1 17 Nero Engineering BID FORM Project No. 10011 00400-3 ORIGINAL ..... --.......... _._... __.... Request for Bids Harmony Lift Station Rehabilitation Project City of Hutchinson (Bidder: GRIDOR CCNSTR., INC, ARTICLE 1- BID RECIPIENT 1.1 The Bid Is submitted to: City of Hutchinson (Owner) 111 Hassan Street SE Hutchinson, MN 55350-2522 1.2 The undersigned Bidder proposes and agrees, if this Bid is accepted, to enter into an Agreement with Owner in the form included in the Bid Documents to perform all Work as specified or indicated in the Bidding Documents for the prices and within the times indicated in this Bid and in accordance with the other terms and conditions of the Bid Documents. ARTICLE 2 - BIDDER'S ACKNOWLEDGEMENTS 2.1 Bidder accepts all of the terms and conditions of the Instructions to Bidders, including without limitation those dealing with the disposition of Bid security. Bidder has not added any conditions or qualifying statements to the Bid, The Bid will remain subject to acceptance for the bid withdrawal time stated in the Advertisement for Bids, or for such longer pertod of time that Bidder may agree to in writing upon request of the Owner. Bidder will sign and deliver the required number of counterparts of the Agreement with Bonds, evidence of insurance coverage, and other documents required by the Bid Requirements within 7 days after the date of Owner's Notice of Award. ARTICLE 3 - BIDDER'S REPRESENTATION$ 3.1 In submitting this Bid, Bidder represents, as set forth in the Agreement, that: A. Bidder has examined and carefully studied the Bid Documents, the other related data identified in the Bid Documents, and the following Addenda, receipt of which is hereby acknowledged. Addendum No. Addendum Date B. If specified, or if in Bidder's judgment, any local condition that may affect cost, progress or the performing of the Work, Bidder has visited the Project Site and become familiar with and is satisfied as to the Iota[ conditions. Nero Engineering Project No. 10011 BID FORM 00400-1 C. Bidder is familiar with and is satisfied as to all federal, state and local Laws and Regulations that may affect cost, progress and the performing of the Work, D. Bidder has carefully studied and correlated the information known to Bidder, and information and observations obtained from Bidder's visits, if any, to the Project Site with the Bid Documents. E. Bidder has given Engineer written notice of all conflicts, errors, ambiguities, or discrepancies that Bidder has discovered in the Bid Documents, and the written resolution thereof by Engineer is acceptable to Bidder. If there has been no written resolution by Engineer, the Bidder has Included in the Bid a list of clarifications and exceptions to the Bid Documents. F. The Bid Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performing the Work for which this Bid Is submitted. G. Bidder further represents that: 1. This Bid is genuine and not made in the interest of or on behalf of any undisclosed individual or entity and Is not submitted in conformity with any agreement or rules of any group, association, organization or corporation; 2. Bidder has not directly or indirectly induced or solicited any other Bidder to submit a false or sham Bid; 3. Bidder has not solicited or induced any individual or entity to refra In from bidding; and 4. Bidder has not sought by collusion to obtain for itself any advantage over any other Bidder or over Owner. ARTICLE 4 - BASIS OF BID 4.1 Bidder will complete the Work in accordance with the Contract Documents for the following prices. Item No. 1 Bid Item Description Unit of Measure Price (U.S. Dollars) 61 Harmony Lift Station Lump Sum Rehabilitation ;k4" ` "ti"'jc�, (words) m (figures) ARTICLE 5 - TIME OF COMPLETION 5.1 Bidder agrees that the Work will meet the substantial completion date and will be completed and ready for final payment on or before the dates or within the number of calendar days indicated in the Agreement. 5.2 Bidder accepts the provisions of the Agreement as to hguIda ted damages in the event of its failure to perform the Work in accordance with the schedule set forth in the Agreement. Nero Engineering Project No. 10011 BID FORM ❑0400-2 L If Bidder is: An In ' idual !Name (typed or printed): By: (Individual's signature) Doing business as: A Partnership Partnership Name: By: (Signature of general partner- attach evidence of authority to sign) Name (typed or printed): (SEAL) (SEAL) A Corporation Corporation Name: GRIDOR CONSTR. INC. (SEALf NO SEAL* State of Incorporation: MINNESOTA Type (General Business, Professional, Service, Limited Liability): GENERAL By: (Signature - attach evidence of autharity to sign) Name (typed or printed): QN THEISEN Title: P ESIDE (CORPORATE SEAL}*NO SEAL* Date/of Authorization to do business in State of Minnesota is 10/0111969 A Joint Venture Name of Joint Venture: First Joint Venturer Name: By: (SEAL) (Signature of first joint venture partner- attach evidence of authority to sign ) Name {typed or printed): Second Joint Venturer Name: (SEAL} By: (Signature of second joint venture partner - attach evidence of authority to sign) Name (typed or printed): Title: (Each joint venture must sign. The rnanner of signing for each individual, partnership, and corporation that is a party to the joint venture should be in the monnerindicated above -J Bidder's Business Address: 3990 27TH ST SE BUFFALO, MN 55313 Phone No.: _763-559-3734 Fax No.: 763-559-37M SUSMlTTril3 on . 09106/2017 Nero Engineering Project No. 10011 BID FORM 00400-3 Request for Bids Harmony Uft Station Rehabilitation Project City of Hutchinson Bidder: Magney Construction, Inc. ARTICLE 1- BID RECIPIENT 1.1 The Bid is submitted to: City of Hutchinson (Owner) 111 Hassan Street SE Hutchinson, MN 55350-2522 1.2 The undersigned Bidder proposes and agrees, if this Bid Is accepted, to enter into an Agreement with Owner in the form included in the Bid documents to perform all Work as specified or indicated in the Bidding Documents forthe prices and within the times indicated in this BEd and in accordance with the other terms and conditions of the Bid Documents. ARTICLE 2 - BIDDER'S ACKNOWLEDGEMENTS 7.1 Bidder accepts all of the terms and conditions of the Instructions to Bidders, including without limitation those dealing with the disposition of Bid security. Bidder has not added any conditions or qualifying statements to the Bid. The Bid will remain subject to acceptance for the bid withdrawal time stated In the Advertisement for Bids, or for such longer period of time that Bidder may agree to in writing upon request of the Owner. Bidder will sign and deliver the required number of counterparts of the Agreement with Bonds, evidence of insurance coverage, and other documents required by the Bid Requirements within 7 days after the date of Owner's Notice of Award. ARTICLE 3 - BIDDER'S REPRESENTATIONS 3.1 In submitting this Bid, Bidder represents, as set forth in the Agreement, that., A. Bidder has examined and carefully studied the Bid Documents, the other related data identified in the Bid Documents, and the following Addenda, receipt of which is hereby acknowledged. Addendum No. Addendum Date B. if specified, or if in Bidder's judgment, any local condition that may affect cost, progress or the performing of the Work, Bidder has visited the Project Site and become familiar with and is satisfied as to the local conditions. Nero Engineering BID FORM Project No. 10011 00400-1 C. Bidder Is familiar with and is satisfied as to all federal, state and local Laws and Regulations that may affect cost, progress and the performing of the Work. D. Bidder has carefully studied and correlated the information known to Bidder, and information and observations obtained from Bidder's visits, if any, to the Project Site with the Bid Documents. E. Bidder has given Engineerwritten notice of all conflicts, errors, ambiguities, or discrepancies that Bidder has discovered in the Bid Documents, and the written resolution thereof by Engineer is acceptable to Bidder. If there has been no written resolution by Engineer, the Bidder has included In the Bid a list of clarifications and exceptions to the Bid Documents. F. The Bid Documents are generally sufficient to Indicate and convey understanding of all terms and conditions for performing the Work for which this Bid is submitted. G. Bidder further represents Chat: 1. This Bid is genuine and not made in the interest of or on behalf of any undisclosed individual or entity and is not submitted in conformity with any agreement or rules of any group, association, organization or corporation; 2. Bidder has not directly or indirectly induced or solicited any other Bidder to submit a false or sham Bid; 3. Bidder has not solicited or induced any individual or entity to refrain from bidding; and 4. Bidder has not sought by collusion to obtain for itself any advantage over any other Bidder or over Owner. ARTICLE 4 - BASIS OF Bib 4.1 Bidder will complete the Work in accordance with the Contract Documents for the following prices. Item No. bid Item Description Unit of Measure Price (U.S. Dollars) alvG B1 Harmony lift Station Lump fkVV f}. �INC uNQ Rehabilitation Sum CJ"'rY (j%4'Ax5 AI'lo T/trl�r•`j- IfivE O fjp 1 6 c`6N-r5 (words) 'fes (figures) ARTICLE S - TIME OF COMPLETION 5.1 Bidder agrees that the Work will meet the substantial completion date and will be completed and ready for final payment on or before the dates or within the number of calendar days indicated in the Agreement. 5.2 Bidder accepts the provisions of the Agreement as to liquidated damages in the eventof its failure to perform the Work in accordance with the schedule set forth in the Agreement. Nero Engineering BID FORM Project No. 10011 00400-2 If Bidder is: An IndIvidual Name (typed or printed): By: (Individual's signature) Doing business as: A Partnershia Partnership Name: By: [Signature of genera! partner — atrach evidence of authority to sign) Name (typed or printed): (SEAL) (SEAL) A Corporation tie Sad Corporation Name: Miggney Construction, Inc.., _,. {SEAL] State of Incorporation: Minn 5 to Type (General bus- s, Rrof4ional, 4rvice, Limited Liability): General Bu2iness By: (Signature — ttoch evidence of ai u-thoritywo sig j Name (typed or printed): Mark n Title: President (CORPORATE SEAL) Attest ,AUA c1&� nrtc" Date of Authorliation to do business in State of Minnesota is May 16, 1994 A Joint Venture Name of Joint Venture: First Joint Venturer Name: (SEAL) By: (Signature of first joint venturepartner— attach evidence of autharity to sign) Name (typed or printed): Second Joint Venturer Name: By: (Signature of second joint venture partner —attach evidence of outharity to sign j Name (typed or printed): Title: (SEAL) (Lath faint venture must sign. The manner of signing for each individual, partnership, and corporation that is a party to the joint venture should be in the manner indicated above,) Bidder's Business Address: 1401 Park Road, Chanhassen, MN 55317 Phone No.: 952-474-1674 Fax No.: L52-474-1679 SUBMITTED on September 6 2017 Nero Engineering BID FORM Project No. 10011 00400.3 September 11, 2017 TO: City of Hutchinson Attn: Kent Exner 1300 Adams St. SE Hutchinson, MN 55350 (320) 234-4212 Re: Letter of Recommendation Harmony Lift Station Rehabilitation Project Dear Mr. Exner: SINERD X ENGINEERING 7135 MADISON AVENUE W MINNEAPOLIS, MN 55427 www.neroeng.com (612) 240-0524 On behalf of the City, Nero Engineering solicited bids for the rehabilitation of the Harmony Lift Station. Previously this summer, the pumps and control panel for the Harmony lift station were procured and this bid was the work to install the procured pumps and control panel and as well as supply and install the required piping, hatches and other ancillary work to complete the rehab of Harmony LS. Bid documents were issued to four contractors; Gridor Construction, Magney Construction, MN Mechanical Solutions and Municipal Builders. Municipal Builders notified us prior to the bid opening that they would not be able to submit a bit due to staffing and timing issues. The results of the other three bids are: 1. MN Mechanical Solutions- $81,500 2. Gridor Construction- $88,000 3. Magney Construction- $112,180.35 From our 2016 lift station study, we estimated the Harmony rehab work at approximately $51,000. MN Mechanical shared the breakdown of their bid with us to compare to our cost estimate. In my conversations with MN Mechanical, this $30,000 difference appears to come largely from three areas; underestimating the installation effort (labor), exclusion of a concrete pad for the control panel and a revised specification for the check valves. In regards to the check valves, we typically specify ball check valves for sewage because they allow for a full port through the valve which means fewer opportunities for rags to get hung up on a disc or flapper in the flow stream. The piping and valve quote provided during the study did not include this higher priced ball check valve. Even though the construction cost was higher than we had anticipated, the City did receive three very good, competitive and qualified bids. Specifically with the competitive bids between MN Mechanical and Gridor, we are confident the bid price is reflective of the actual work and the bids are not misrepresented or inflated. It is our recommendation to award the Harmony Lift Station Rehabilitation Project to MN Mechanical Solutions in the amount of $81,500. Additionally, we will use the information from this bid to update the costs estimates presented in the Lift Station Study. This will allow for better project budgeting for the future lift station rehabs as outlined in the study. We will reissue the cost estimate by September 22 for 2018 budget preparations. We will be pleased to answer any questions concerning the recommendations set forth herein. Sincerely, Eric Meester, PE CC: Tim Gratke, City of Hutchinson HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Items for City Alley #52 Improvements Project (L14/P17-14) Department: PW/Eng LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: City staff requests that the City Council approve the appropriate Resolutions to set the Assessment Hearing and potential Project Award for the above referenced letting at their October 10th meeting. Construction bids have been received. Thus, the final drafts of the necessary Resolutions and associated documents reflecting the apparent low bid amount are attached. City staff has had ongoing communications with adjacent property owners in regards to the proposed project improvements. Also, this project's costs/funding have been reviewed by the Resource Allocation Committee and are included within the 2017 Infrastructure Improvement Program. We recommend that the final drafts of the attached Resolutions be approved. BOARD ACTION REQUESTED: Approval of Resolutions Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14778 RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ASSESSMENT ROLL NO. SA5117 LETTING NO. 14/PROJECT NO. 17-14 WHEREAS, cost has been determined for the improvement of: Alley #52 located south of 5th Avenue SE between Jefferson Street SE & Adams Street SE: Alley improvements by construction of grading, storm sewer, concrete curbing, bituminous pavement and appurtenances, and the construction cost for such improvement is $89,194.09, with expenses incurred or to be incurred in the making of such improvement in the amount of $0.00, the total cost of the improvement is $89,194.09. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The portion of the cost of such improvement to be paid by the City is hereby declared to be $75,258.58 and the portion of the cost to be assessed against benefited property owners is declared to be $13,935.51. 2. Assessments shall be payable in equal annual installments extending over a proposed period of two (2) years, the first of the installments to be payable on or before the first Monday in January, 2018 and shall bear interest at the rate of percent per annum from November 1, 2017. 3. The City Administrator, with the assistance of the City Engineer, shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and he shall file a copy of such proposed assessment in his office for public inspection. 4. The City Administrator shall, upon the completion of such proposed assessment, notify the Council thereof. Adopted by the Council this 26th day of September 2017. Mayor, Gary Forcier City Administrator, Matthew Jaunich COMPILEDBY: PVANDERVEEN ASSESSMENT ROLL NO. SA -5117 LETTING NO. 14/PROJECT NO. 17-14 Alley #52 located south of SM Avenue SE between Jefferson Street S&Adams Street,: Alley improvements by construction of grading, storm sewer, concrete curbing, bituminous pavement and appurtenances COST PER FRONT FOOT: COMPUTED BY: PVANDERVEEN $15.38 ALLEY COST/FF CHECKED BY: KENT EXNER 151' HEARING 08/22/2017 NUMBER OF YEARS 5 2ND HEARING 10/10/2017 INTEREST RATE: 2017 Bond Rate BOND FUND 337 ADOPTED: FIN ACCT# zTOTAL C COUNTY PID CITY PID NO NO PROPERTYADDRESS OWNER NAME OWNER ADDRESS -1 OWNERADDRESS-2 LEGAL DESCRIPTION -1 FF FF CREDIT TOTAL FF TOTAL ASSESSMENT DEFERRED ASSESSMENT SA5115A TOTALAC IVE ASSESSMENT SA -5114 1 0611629060960 230504956 565 leflerson St SE T93 Properties LLC U.Troy MIN NM 0a1, Lawn Ln Mound MN 55364 Lots 6, 11 & 12, Block 66, Townsite of Hutchim'on, South Half 186.08 0.00 186.68 $2,861.91 So. $2,881.91 2 06116290609)0 230504966 535 leflerson It SE River Pi. ce Management, LLC N740.1,1 -Ln Mound MN 55364 Lots 7 & 8, Block 60, Townsite of Hutchim'on, South Half 132.00 0.00 132.00 $2,030.16 So. $2, -- 3 0611629060980 230504970 515 leflerson St SE ----n TPeterson 515 leflerson St SE Hutchinson MN 55350 Lot 9, Block 60, Townsite of Hutchinson, South Half 66.00 0.001 66.00 $1,015.08 So. $1,015.08 4 0611629060990 230504980 2065th Ave SE Corey Sturges 2065th Ave SE Hutchinson MN 55350 Lot 30, Block 60, Townsite of Hutchim'an, South Half 66.00 0.00 66.00 $1,015.08 So. $1,015.08 5 0611629070680 230504900 506 Ada ms St SE Nichdas A Hanson, Etal Mr Adams St SE Hutchinson MN 55350 Lot 1, Block 60, Townsite of Hutchim'on, South Half 66.00 0.00 66.00 $1,015.08 So. $1,015.08 6 0611629070690 230504910 516 Ada ms St SE U.S. Bank Nudonul Assod-n 4802 Frederica St Owensboro KY 42301 Lot 2, Block 60, Townsite of Hutchim'on, South Half 66.00 0.00 66.00 $1,015.08 So. $1,015.08 7 0611629070700 2305049N1 526 Ada ms St SE Doreen ASmithers 526 Ada ms St SE Hutchinson MN 55350 Lot 3, Block 60, Townsite of Nutchiruon, South Half 66.00 0.001 66.00 $1,015.08 So. $1p15.08 8 06116290707M 230504930 534 Ada ms St SE Pauline Alohnson 534 Adams St SE Hulchiruon MN 55350 Lot 4, Block 60, Townsite of Nutchimson, South Half 66.00 0.00 66.00 $1,015.08 $0.00 $1,015.08 9 03 JJ13 29 07 0720 230504940 542 Ada ms St SE leremyA& Nicole L ElIinghuysen 1225 Prairie Ridge Ln Lester Prairie MN 55354 Lot 5, Block 60, Townsite of Hutchinson, South Half 66.00 0.00 66.00 $1,015.08 $0.00 $1,015.08 10 06116290707M 230504990 546 Ada ms St SE Bernard M&Mary VI-th 600Tyler St- Hutchinson MN 55350 Lots 13 & 14 EX 560' of Lot 14, Block 60, Townsite of" -hi-, South Half 66.00 0.00 66.00 $1,015.118 $0.00 $1,015.08 11 06116290707M 230505000 554 Ada ms St SE Bryan P Larson 554 Ada ms St SE Hutchinson MN 55350 566' of Lot 34, Block 60, Townsite of 11-him'on, South Half 60.00 0.00 611.00 $922.811 1 $0.00 $92290 12 0611629100300 231420010 562 Ada ms St SE Apostolic LighMouse Church 754 Craig Ave SW Hutchiruon MN 55350 Lot 1, Park Subdivision 66.00 66.00 11.110 So. $0.00 $0.00 13 0611629100310 231420020 572 Ada ms St SE Wni-nve W!, 16M Knight St Shoreview MN 55126 Lot 2, Park SubdiNsion 66.00 ESAU 11.110 So. $0.00 $0.00 14 06116291003M 231420066 575 leflerson St SE Eiden Properties lnc 575 leflerson St SE Hutchinson MN 55350 Lot 6 EXTriangdar Tran 10' x 33.09' x 34.56' in NW Cr-, Park SubdiNsion 68.12 68.12 11.110 So. $0.00 $0.00 15 0611629100300 231420070 SSS leflerson St SE Eiden Properties lnc 575 leflerson St SE Hutchinson MN 55350 Lot 7, Park SubdiNsion 63.50 63.501 11.110 So. $0.00 $0.00 16 0611629101111611 23139111150 600 Adams St SE Hutchinson Coop Gas Station PO Box 148 Hutchinson MN 55350 Lots 34 S, Mortensen', Addition 0.00 0.00 11.110 So. $0.00 $0.00 TOTAL ASSESSMENT ROLL NO. SA5117 - L14P17-14 1169.7 263.62 906.08 $13,935.51 $0.00 $13,935.51 $13,935.51 RESOLUTION NO. 14779 RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT ASSESSMENT ROLL NO. SA5117 LETTING NO. 14/PROJECT NO. 17-14 WHEREAS, by a resolution passed by the Council on the 26th day of September, 2017, the City Engineer was directed to prepare a proposed assessment of the cost of improving: Alley #52 located south of 5th Avenue SE between Jefferson Street SE & Adams Street SE: Alley improvements by construction of grading, storm sewer, concrete curbing, bituminous pavement and appurtenances, WHEREAS, the City Engineer has notified the Council that such proposed assessment has been completed and filed in his office for public inspection. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. A hearing shall be held on the 10th day of October, 2017, in the Council Chambers at Hutchinson City Center at 6:00 P.M. to pass upon such proposed assessment and at such time and place all persons owning property affected by such improvement will be given an opportunity to be heard with reference to such assessment. 2. The City Administrator is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing, and he shall state in the notice the total cost of the improvement. He shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City Administrator, except that no interest shall be charged if the entire assessment is paid by November 15th, 2017. He may at any time thereafter, pay to the City Administrator the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. Adopted by the Council this 26th day of September 2017. Mayor, Gary Forcier City Administrator, Matt Jaunich PUBLICATION NO. 8254 NOTICE OF HEARING ON PROPOSED ASSESSMENT ASSESSMENT ROLL NO. SA -511 LETTING NO. 14/PROJECT NO. 17-14 TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council will meet at 6:00 P.M. on the 10th day of October 2017, in the Council Chambers at City Hall at Hutchinson, Minnesota, to consider and possibly adopt the proposed assessment for the improvement of: Alley #52 located south of 5th Avenue SE between Jefferson Street SE & Adams Street SE: Alley improvements by construction of grading, storm sewer, concrete curbing, bituminous pavement and appurtenances, Adoption by the Council of the proposed assessment against abutting property may occur at the hearing This assessment is proposed to be payable in equal annual installments extending over a period of two years, the first of the installments to be payable on or before the first Monday in January 2018, and will bear interest at the rate of 6 percent (plus or minus) per annum from the date of the adoption of the assessment resolution. To the first installment shall be added interest on the entire assessment from the November 1, 2017 until December 31, 2018. To each subsequent installment when due shall be added interest for one year on all unpaid installments. You may at anytime prior to certification of the assessment to the County Auditor, pay the entire assessment on such property, with interest accrued to the date of payment, to the City of Hutchinson. No interest shall be charged if the entire assessment is paid by November 15th, 2017. You may, at anytime thereafter, pay to the City of Hutchinson the entire amount of the assessment remaining unpaid, with interest accrued to December 31 st of the year in which such payment is made. Such payment must be made before November 15th or interest will be charged through December 31 st of the succeeding year. If you decide not to prepay the assessment before the date given above, the rate of interest that will apply is 6 percent (plus or minus) per year. The right to partially prepay the assessment shall be until November 15, 2017. The proposed assessment is on file for public inspection at the City Administrator's Office. The total amount of the proposed assessment is $13,935.51. Written or oral objections will be considered at the meeting. No appeal may be taken as to the amount of an assessment unless a written objection, signed by the affected property owner, is filed with the City Administrator prior to the hearing or presented to the presiding officer at the hearing. The Council may, upon such notice, consider any objection to the amount of a proposed individual assessment at an adjourned meeting upon such further notice to the affected property owners as it deems advisable. If an assessment is contested or there is an adjourned hearing, the following procedure will be followed: The City will present its case first by calling witnesses who may testify by narratives or by examination, and by the introduction of exhibits. After each witness has testified, the contesting party will be allowed to ask questions. This procedure will be repeated with each witness until neither side has further questions. 2. After the City has presented all its evidence, the objector may call witnesses or present such testimony as the objector desires. The same procedure for questioning of the City's witnesses will be followed with the objector's witnesses. The objector may be represented by counsel. PUBLICATION NO. 8254 ASSESSMENT ROLL NO. SA5117 LETTING NO. 14/PROJECT NO. 17-14 PAGE 2 4. Minnesota rules of evidence will not be strictly applied; however, they may be considered and argued to the Council as to the weight of items of evidence or testimony presented to the Council. The entire proceedings will be tape-recorded (video-taped). At the close of presentation of evidence, the objector may make a final presentation to the Council based on the evidence and the law. No new evidence may be presented at this point. An owner may appeal an assessment to District Court pursuant to Minnesota Statutes Section 429.081 by serving notice of the appeal upon the Mayor or City Administrator within 30 days after the adoption of the assessment and filing such notice with the District Court within ten days after service upon the Mayor or City Administrator. Under Minnesota Statutes, Section 435.193 to 435.195, the Council may, in its discretion, defer the payment of this special assessment for any homestead property owned by a person 65 years of age or older for whom it would be a hardship to make the payments. When deferment of the special assessment has been granted and is terminated for any reason provided in that law, all amounts accumulated, plus applicable interest, become due. Any assessed property owner meeting the requirements of the law and the resolution adopted under it, may within 30 days of the confirmation of the assessment, apply to the City Clerk, for the prescribed form for such deferral of payment of this special assessment on his property. Matt Jaunich, City Administrator City of Hutchinson, Minnesota PUBLISHED IN THE HUTCHINSON LEADER ON WEDNESDAY, SEPTEMBER 27TH, 2017 AND WEDNESDAY, OCTOBER 4TH, 2017. Pagel of 1 CITY OF HUTCHINSON, 111 HASSAN ST SE, HUTCHINSON MN 55350 320-234-4209 BID TABULATION - CITY OF HUTCHINSON LETTING NO. 14/PROJECT NO. 17-14 Alley #36 BID OPENING: 09/20/2017 @ 11:00 AM ENGINEER'S ESTIMATE $75,501.00 COMPLETION DATE: 10/03/2017 z z - zo r _ o = Engineer's R & R Excavating Inc Brent Reiner 1149 Hwy 22 South Hutchinson MN 55350 Estimate michelle@mex-ting.net 320-587-5918 fax 320-587-1044 Juul Contracting Company Merrill Wendlandt P O Box 189 1060 Adams St BE Hutchinson MN 55350 j ulcont@hutchtel.net 320-587-2989 fax 320-587-0964 Hjerpe Contracting Inc Kurt H. Hjerpe 16246 Hwy 15 S P O Box 517 Hutchinson MN 55350 esti mating@hj erpecoutracting .com 320-2348305 fax 320-2347305 BID PRICE I BID TOTAL BID PRICE I BID TOTAL BID PRICE I BID TOTAL BID PRICE I BID TOTAL BASE BID $75,501.50 $89,194.09 $94,923.25 $102,970.00 1 2021.501 MOBILIZATION LUMP SUM 1 $1,300.00 $1,300.00 $5,277.01 $5,277.01 $1,500.00 $1,500.00 $3,400.00 $3,400.00 2 2104.501 REMOVE CURB AND GUTTER LIN FT 46 $6.50 $299.00 $5.39 $247.94 $4.00 $184.00 $3.00 $138.00 3 2104.503 REMOVE CONCRETE WALK SO FT 60 $2.00 $120.00 $4.13 $247.80 $4.00 $240.00 $1.00 $60.00 4 2104.505 REMOVE CONCRETE DRIVEWAY PAVEMENT SO YD 80 $7.00 $560.00 $3.10 $248.00 $9.00 $720.00 $8.00 $640.00 5 2104.505 REMOVE BITUMINOUS PAVEMENT SO YD 61 $12.00 $732.00 $4.07 $248.27 $3.50 $213.50 $6.00 $366.00 6 2104.511 SAWING CONCRETE PAVEMENT FULL DEPTH LIN FT 20 $7.00 $140.00 $3.81 $76.20 $15.15 $303.00 $6.00 $120.00 7 2104.513 SAWING BITUMINOUS BITUMINOUS FULL DEPTH LIN FT 235 $5.00 $1,175.00 $2.23 $524.05 $3.15 $740.25 $2;L0$470.00 8 2105.501 COMMON EXCAVATION CU YD 390 $12.00 $4,680.00 $11.12 $4,336.80 $6.80 $2,652.00 $9.85 $3,841.50 9 1 2105.604 IGEOTEXTILE FABRIC TYPE V SO YD 950 $1.751 $1,662.50 $1.011 $959.50 $2.001 $1,900.00 $1.55 $1,472.50 10 2112.604 SUBGRADE PREPARATION SO YD 950 $1.45 $1,377.50 $1.69 $1,605.50 $0.80 $760.00 $1.70 $1,615.00 11 2211.501 AGGREGATE BASE CLASS 5 TON 15 $33.00 $495.00 $18.80 $282.00 $31.10 $466.50 $25.00 $375.00 12 2211.503 AGGREGATE BASE CLASS 5 (CV) (P) CU YD 201 $24.00 $4,824.00 $14.69 $2,952.69 $19.50 $3,919.50 $34.00 $6,834.00 13 2357.502 BITUMINOUS MATERIAL FOR TACK COAT GALLON 50 $7.50 $375.00 $6.09 $304.50 $7.00 $350.00 $2.65 $132.50 14 2360.503 TYPE SP 9.5 WEARING COURSE MIXTURE (2,B) 1.5' THICK SO YD 740 $8.50 $6,290.00 $13.24 $9,797.60 $14.05 $10,397.00 $9.25 $6,845.00 15 2360.503 TYPE SP 12.5 NON WEARING COURSE MIXTURE 2,B 2.5' THICK SO YD 670 $12.25 $8,207.50 $18.57 $12,441.90 $19.30 $12,931.00 $17.65 $11,825.50 16 2360.503 TYPE SP 12.5 NON WEARING COURSE MIXTURE (2,B) 4.5' THICK SO YD 70 $28.00 $1,960.00 $41.60 $2,912.00 $42.00 $2,940.00 $35.60 $2,492.00 17 2503.511 8" PVC PIPE SEWER LIN FT 100 $26.00 $2,600.00 $62.86 $6,286.00 $48.00 $4,800.00 $81.00 $8,100.00 18 2503.511 12" PVC PIPE SEWER LIN FT 308 $28.00 $8,624.00 $33.94 $10,453.52 $48.75 $15,015.00 $56.00 $17,248.00 19 1 2503.602 ICONNECT TO EXISTING STORM SEWER EACH 1 $750.00 $750.00 $1,105.12 $1,105.12 $600.00 $600.00 $4,200.00 $4,200.00 20 2506.502 CONSTRUCT DRAINAGE STRUCTURE TYPE C EACH 2 $2,100.00 $4,200.00 $1,938.84 $3,877.68 $2,118.00 $4,236.00 $2,650.00 $5,300.00 21 2506.502 CONSTRUCT DRAINAGE STRUCTURE DES 60A020 EACH 1 $4,900.00 $4,900.00 $7,528.92 $7,528.92 $9,235.00 $9,235.00 $8,500.00 $8,500.00 22 2521.501 6" CONCRETE WALK SO FT 80 $6.00 $480.00 $7.28 $582.40 $9.30 $744.00 $8.30 $664.00 23 2531.501 CONCRETE CURB AND GUTTER DESIGN D418 LIN FT 585 $19.00 $11,115.00 $22.10 $12,928.50 $19.90 $11,641.50 $16.70 $9,769.50 24 2531.501 CONCRETE CURB AND GUTTER DESIGN B618 LIN FT 45 $49.00 $2,205.00 $27.36 $1,231.20 $28.80 $1,296.00 $25.90 $1,165.50 25 2531.507 6" CONCRETE DRIVEWAY PAVEMENT SO YD 80 $49.00 $3,920.00 $12.05 $964.00 $72.55 $5,804.00 $74.00 $5,920.00 26 2563.601 TRAFFIC CONTROL LUMP SUM 1 $1,500.00 $1,500.00 $710.23 $710.23 $300.00 $300.00 $700.00 $700.00 27 2573.530 STORM DRAIN INLET PROTECTION EACH 2 $100.00 $200.00 $76.10 $152.20 $80.00 $160.00 $75.00 $150.00 28 2574.525 COMMON TOPSOIL BORROW (LV) CU YD 8 $45.00 $360.00 $57.07 $456.56 $40.00 $320.00 $22.00 $176.00 29 2575.501 SEEDING SO YD 150 $3.00 $450.00 $3.04 $456.00 $3.70 $555.00 $3.00 $450.00 Pagel of 1 HUTCHINSON CITY COUNCIL c`=y-f 0' a_ � Request for Board Action 79 M-W Agenda Item: Setting Public Hearing for Wellhead Protection Plan Part II Department: PW/Eng LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: John Paulson Agenda Item Type: Presenter: John Paulson Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: The City of Hutchinson is in the process of developing a wellhead protection plan amendment for its drinking water supply wells. The completed wellhead protection plan, Part 2, draft for this system as required in the Minnesota Wellhead Protection Rule (part 4720.5350, subparts 1-3) has been distributed to adjacent local government units for their review. This portion of the plan includes information pertaining to: 1. The inventory of potential contaminants of concern within the drinking water supply management area; 2. The data that was considered in this portion of the plan; 3. Issues, problems, and concerns within the drinking water supply management area; 4. Goals, objectives, and action strategies to address the issues and concerns within the drinking water supply management area; 5. A plan evaluation strategy; and 6. A contingency strategy in the event of water system disruption. The Public Hearing will be an opportunity for the public to provide comments on Part II of the plan. City staff recommends that the City Council order a Public Hearing (October 24th meeting at 6:00 PM) to review the required changes to Part II of the Wellhead Protection Plan and receive any public comment. BOARD ACTION REQUESTED: Order Public Hearing for October 24th, 2017 City Council Meeting (6:00 PM). Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Consideration of Acceptance for Nu-Telecom Phone Services Department: IT LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Tom Kloss Agenda Item Type: Presenter: Tom Kloss Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: In 2010, the City of Hutchinson converted from Nu-Telecom's Centrex phone system to an internal Voice Over IP phone system. The conversion modernized the system, and the city realized a savings on average of approximately $45,000 per year. Over the last 8 years the pricing has risen steadily, due to inflation and changes in service. Nu-Telecom has a new offering that is comparable to the Voice Over IP phone system that will result in a savings of approximately $7000 per year over current costs. Along with the savings in monthly service, all hardware is provided by Nu-Telecom and replaced as necessary for no additional fee. This price would be locked-in for a period of 9 years. Mediacom also offers a phone solution for businesses. After reviewing the City's existing system, Mediacom staff felt that due to the size and sophistication of the City's phone system, they could not provide a workable solution. Under the current system, the average yearly service cost is $69,000 Under the new contract with Nu-Telecom the estimated average yearly service cost is $62,000 Staff is confident that the product/system offered by Nu-Telecom will adequately fulfill our service requirements and we will realize a significant monthly savings. Staff recommends approval of the attached quote and moving into a contract with Nu-Telecom. BOARD ACTION REQUESTED: Approval of Nu-Telecom Phone Service Quote. 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: Existing Internet and Video Services $ 423.25 Optional 1 Receptionist Enterprise (Per User) $ 49.95 $ 29.97 Wireless Headsets - $294.95 (Purchase Price) This is an estimated quote for a Flexvoice Hosted Phone System through NU -Telecom. This quote does not include long distance, all taxes and fees, prewiring, switch equipment or on site labor the day of installation. The total counts for each item may vary, but the Monthly Recurring Charge with discount will remain the same. Date Name Customer Date Name NU -Telecom Sales Consultant Date Name NU -Telecom Corporate Sales Manager Quotation Quote Name: �J ■Y u- Telecom Revised Flexvoice Hosted System Quote Date: The Best 5olutims for Video, Internet & Telecommunications 6/12/2017 235 Franklin St SW Valid Thru: Hutchinson MN 55350 6/30/2017 320-587-2323 Quoted by: Bonnie Hamre Quoted to: City of Hutchinson 320-234-5272 111 Hassan St SE Hutchinson MN 55350 587-5151 9 Year Term Acct #0146062 Description One Time Fees MRC 118 Premium Packages $ 50.00 $ 5,900.00 $ 29.95 $ 3,534.10 Yealink T46G Phones 58 Basic Package $ 50.00 $ 2,900.00 $ 19.95 $ 1,157.10 Yealink T42G Phones 2 Polycom Conferencer 5000 $ 5.95 $ 11.90 6 Expansion Modules $ 2.95 $ 17.70 5 Analog Lines - Parks Numbers $ 50.00 $ 19.95 $ 99.75 38 Additional Number/Lines $ 30.00 $ 1,140.00 $ 4.95 $ 188.10 32 Voicemails on Additional Numbers $ 4.95 $ 158.40 2 Obihai Devices for Strobes (234-0550,0532) $ 4.95 $ 9.90 2 Auto Attendants $ 30.00 $ 60.00 $ 9.95 $ 19.90 2 Site Set Up Fee $ 200.00 $ 400.00 Flexvoice System Total $10,710.00 $ 5,196.85 Set Up Fees 1/2 Price $ 5,355.00 55 - B1 Analog Lines ($21.56) $ 1,185.80 $ 6,382.65 Total - 40% Goverment Discounted Price $ 3,829.59 Existing Internet and Video Services $ 423.25 Optional 1 Receptionist Enterprise (Per User) $ 49.95 $ 29.97 Wireless Headsets - $294.95 (Purchase Price) This is an estimated quote for a Flexvoice Hosted Phone System through NU -Telecom. This quote does not include long distance, all taxes and fees, prewiring, switch equipment or on site labor the day of installation. The total counts for each item may vary, but the Monthly Recurring Charge with discount will remain the same. Date Name Customer Date Name NU -Telecom Sales Consultant Date Name NU -Telecom Corporate Sales Manager HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Massage License - Hui Wang Department: Administration LICENSE SECTION Meeting Date: 9/26/2017 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 OFAGENDA ITEM: Hui Wange of Angel's Massage LLC has submitted a massage license application into administration for review and processing. The application is for Ms. Wang to provide massage services at her business located at 24 Main Street South. A background check was completed of Ms. Wang and the police department does not object to the issuing of the license. The applicant has completed the appropriate application in full and all pertinent information has been received. BOARD ACTION REQUESTED: Approve issuing massage license to Hui Wang of Angel's Massage LLC to provide massage services at 24 Main Street South 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 v,9A� 7AZ MEMORANDUM POLICE ! EMERGENCY MANAGEMENT SERVICES TO: Mayor and Council FROM: Chief Daniel T. Hatten DATE: August 3, 2017 RE: Massage License Application A background check was conducted on Ms. Hui Wang in reference to her obtaining a massage license in the City of Hutchinson. It would be my recommendation to grant Ms. Hui Wang this massage license based on the information gathered during the investigation. Ciry of 111 Hassan Sheet Southeast Hutchinson, MN 55350 (330)587-5151 Fax: (320)234-4240 City of Hutchinson Application for Massage Service License (Under Ordinance No. 119) Business Information Nit Business Nance ,, - I4Lk Vl5cy) Business Address City Zoning District *verifv the proposed we is allowed in ibis _oning district License Fee: $175 Operating Year: ag ' G 'I ):Li tg67 Phone Number Mn 65 350 State Zip -Il t 3-•j 1-7 cw�o I i 'Corporate Information (if a licable) 1f Cor porare Name Phone Number qle� A 1 t tnri 56w) l Corporate Address City State Zip Owner(s)/Corporate Officer(s) (list names and addresses of all persons have a beneficial interest in the business/corporation) Name: dtq M1 Irvt Address City State Zip Name: Address City State Zip *If necessary, list additional owner(s)lcotporate officer(s) on a separate sheet ofpaper Lessee if applicable Name: Address City State Zip LOperators (list all individuals involved in giving massa" services) Name: HWI Address -Name- q City State Zip it} Sari. Zip klf ,?rlist cadrlttiowli r:i,•:;: r;r ; tt ,..tf:zNt .tf ,, +;; City of Hutchinson Application for Massage Service Page 2 of 3 Describe Nature of Massage Business and Massage Services Offered I �IG6LA,,e, Fb- nia i saa" baV YyiA-5� Insurance Coverage Information (attach public liability insurance policy or certificate of insurance as required in Section 119.07 of Hwchinson City Code) 1 &-G L f ►1 a,w Insurance Company agent's �Name Address City $tate Zip Phone Number Statement Fax Number Have you or any operators been convicted of any crime, misdemeanor, or violation of any municipal ordinance, other than traffic violations? ❑ YES X NO If yes, state nature of offense and punishment or penalty therefore: Manager information (Stchon 1 19.00 of Mach-inson City Code reyuixes that the i77ariager of the establls'---eut be "a natural person who is a resident of the City". Please complete the following continning compliance with this ordinance} ,41_y, -4-7-45x--ne' Alancager Name Phone iVumber 145 AAj Manager Address FF-�'G7C F z') Mr\j City Checklist (all items must be checked "ves" in order for the application to be processed) State The following items need to be completed and/or attached in order for the application to be processed: Copy of insurance that meets or exceeds limits established in the ordianarce: 0 -yes ❑ no Application fee paid in full (check or money order): yes ❑ no Application completed in hill and signed: )& yes ❑ no -3��-D zip City of Hutchinson Application for Massage Semce Page 3 of 5 1 hereby certify that I have completely filled out the entire above application, together and that the application is true, correct, and accurate. I .fully understand that any person who violates any provision of Chapter 119 of the Hutchinson City Code pertaining to Nlassage Services is guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding $1000.00 or by i ` priso nt for a period not exceeding 90 days or both, plus, in either case, the costs of prosecution. 7 iizlr� Signature ofAppliccant Date Print Name Title (VOTE: No application will beforwarded to the City Council unless received one week prion to the regular Council meeting, jilted out in completion, aced fee payment is attached. Internal Use Only Zoning/ _ Building: 4approved ©denied Notes: !I i Fire Wapproved © denied Notes: �7 Police 4 approved ❑ denied Motes: f jj��{IVLD City Council 0 approved 0 denied Notes: H! Licenses A pp I icat mnV Mw Agc. ac City afMachinson .4pplication for jlfasscage Service Pagae 5 of 5 MASSAGE ESTABLISHMENT Ordinance 119.06 requires that the manager of the establishment be "a natural person who is a resident of the City". Please complete and sign the following confirming the above. Estalalishr�nent Information (,E71 -- - 53'ry Est ishment Name Phone Number Establishment Address City State Zip Owner/Corporate Information 11 Owner/Corporate Name Phone Number o VtiK q Bra,rr /-n Y7 Owner/Corporate Address City State Zip Information Manager Name Phone !Number 144 X11i I oAA k -e,. Ayz ft'r rfcli AA 5 a S0 Manager Address City State Zip I declare that the information I have provided on this application is truthful, and I authorize the City of Hutchinson to investigate the information submitted. of owner or authorized of fzcei of establishment -71J'2, IP Daie HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Short-Term Gambling License - ISD 423 Foundation Department: Administration LICENSE SECTION Meeting Date: 9/26/2017 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 OFAGENDA ITEM: The ISD 423 Foundation 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 30, 2017. 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 ISD 423 Foundation on September 30, 2017. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: City 0 1 I I I lasian Street Southeast Hutchinson, MN 55350 (320)587-5151 Fax -(324)234-4240 City of Hutchinson APPLICATION FOR GAMBLING DEVICES LICENSE In provisions of the City of Hutchinson Ordinance No. 555 and Minnesota Statutes Chapter 349 All applications must be received at least 30 days before event in order to be considered A2plication Type Short Perm Date(s) 12 - 3 / 7 Fee: $30.00 Mo hID /Year - Wn41AylYjar Organization Information Name Ph e Number .4ddres.s where regular meeting are held City Stine Zip Federal or State [D: 7 I - I �5- S- T 5- i--� Day and time of meetings? 9U : r � e +�6 Is this organization organized under the flaws of e State of ;Cyes ❑ no }-tow long, has the organization been in existence? >How may members in the organization? What is the purpose of the organization? PC 1j V I Je- In whose custody will organization records be kept? J Name Aone Number Address Ci State Zip j Duly Authorized Officer of the Organization Information 11 3) True Name Phone Number 0111 Resrclence Address Ciry State zip Date of Birth: ] 1 r t % Place of Birth: ;J [JLC and Monih/duylyear (lily State Have you ever been convicted of any crime other than a traffic � offense? Ll yes W n❑ Ifves, explain: P Y.;P 3 Cin, of Hutchinson pplica lion for Gambling Devices License Page: rf3 Designated Gambling Manager (.uali red under Minnesota Statute 329) 1(3 Trace Name Ph e Number r Residence Address City State Zip Date of Birth- I1Z 1 Place of Birth: Mont daylyear City Stale Have you ever been convicted of any crime other than a traffic offense? O yes WO If yes, explain: How long have you been a member of the organization? �n/y Garne InformationZ- Location #I C ` f .e 7j C, fa /' % 'ark ) 3r+} <> V Name gflocation whereame will he laved _�_ � .i Q- Cj H(,4 ( Phone Number Wili 5 _� 3,5..E _ Adrdress of localioo here garne wig he played City Stare Zip Date(s) and/or days) gambling devices will be used: g AM Hours of the day gambling devices will be used: From �� AMy To _ � Maximum number of player: e,Q Will prizes be paid in money or merchandise? A-m-oney ❑ merchandise Will refreshments be served during the time the gambling devices will be used? 4D ❑ no Les, will a charge be made for such refreshments? PF<es ❑ no Game Information , t_ jr e Location #2 Name of locationh re game wiVbe played Phone Number Address of location wh re game will 6e player! City State Zip Date(s) and/or day(s) gam6 ing devices will be used: _ /. t f AN] I Iours of the day gambling devices will be used: From- _ AM I'o p Maximum number of player: Will prizes be paid in money or merchandise? ❑ money merchandise Wil] refreshments be served during the time the gambling devices will be used? Okrly�es ❑ no If yes, wiI I a charge be made for such refreshments? gions ❑ no CUT ref 11uh.hinson f pplicannn,]or Gambhng Devices License Puge 3 q13 Officers of the Organization Qfnecessary, list additional names on separate sheet) ,list additional names an separate sheet) Name TM rf Jl c,-1- h,66 -�' C k 'Z Y Residence Address Name State Title _ U Ir.a4-t � �i /yi� iY Residence Address Residence Address City State Zip J Title Residence Address Name , 0 C v. Title rv�Yj �, Residence` Address City State zip // r C -e k — Name (J�u1 v 1N'r'' Titl 1" 5 Residence Address City .51ale zip Officers or Other Persons Paid for Services Information {i rrecessa ,list additional names an separate sheet) Name Title Y Residence Address City State Zip Name Title Residence Address City State zip Name Title Residence Address Cit State Zip I lave you (Garnbling 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 lyes ❑ no J) Authorized Officer 9ryes ❑ no [:41 Initial Initial declare that the information I have provided on this application is truthful, and I 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. !i VZ�I( .signature of authorized off icer r f'organizalion Date ignalure ofgambling manager oj'organiaation Date Internal Use Only City Council ❑ approved 0 denied Notes; HUTCHINSON CITY COUNCIL c`=y-f 0' a_ � Request for Board Action 79 M-W Agenda Item: Consideration of 2 lot preliminary and final plat for LJM Addition - 579 2nd Ave Sh Department: Planning LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff F1 Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Larry Murphy has submitted a preliminary and final plat to create a two-lot plat for the property located at 579 2nd Avenue SE. Mr. Murphy proposes to utilize this location for equipment storage for his construction related/snow removal businesses. Please note that the City Council approved a one lot plat for this area in July, however the applicant decided to change to a 2-lot plat instead. Please note Staff is including a new resolution for the Conditional Use Permit portion of this project that was approved in July. Originally the CUP and the 1 lot plat were approved in the same resolution. Since the applicant decided against the 1 lot plat that resolution will not be recorded and a new resolution is need for the Conditional Use Permit. There was nobody from the public that spoke regarding this request. It was approved unanimously by the Planning Commission. BOARD ACTION REQUESTED: Approval of resolution 14770 and 14771. 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. 14771 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF A PRELIMINARY AND FINAL PLAT FOR LJM ADDITIONAL AT 579 2ND AVE SE, LARRY MURPHY, APPLICANT. FACTS 1. Larry Murphy is the applicant and owner of a parcel of land located at 579 2nd Ave SE, Hutchinson Minnesota; and, 2. The subject property is legally described as: LOTS 4 and 5, Block 18, SOUTH HALF OF HUTCHINSON, McLeod County, Minnesota. AND That part of Huron Street adjacent to Lots 4 and 5, Block 18, SOUTH HALF OF HUTCHINSON, lying West of the centerline of said street, McLeod County, Minnesota. 3. Larry Murphy, applicant and property owner, has applied to the City for a preliminary and final plat of LJM addition at 579 2nd Ave SE, Hutchinson, MN. 4. The property is located in the I/C Industrial/Commercial) Zoning District. 5. Following a public hearing on the application, the City of Hutchinson Planning Commission has recommended approval of the preliminary and final plat on September 19, 2017. 6. The City Council of the City of Hutchinson reviewed the requested preliminary and final plat on September 26, 2017 and has considered the recommendation and findings of the Planning Commission and hereby does recommend approval. APPLICABLE LAW 7. The preliminary and final plat request meets the following standards as required in Sections 153.35 — 153.39 and 153.50 — 153.51 of the City of Hutchinson Municipal Code. CONCLUSIONS OF THE LAW 8. The requested plat is consistent with the comprehensive plan and applicable ordinances. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that preliminary and final plat of LJM addition are approved. Findings of Fact — Resolution 14771 Preliminary and Final Plat LJM Addition 5792 nd Ave SE 9/26/2017 Page 2 Adopted by the City Council this 26th day of September, 2017. ATTEST: Matt Jaunich Gary T. Forcier City Administrator Mayor CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA RESOLUTION NO. 14770 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF A CONDITIONAL USE PERMIT TO ALLOW A POST FRAME ADDITION TO AN EXISTING BUILDING AND A NEW POST FRAME BUILDING FOR A CONSTRUCTION COMPANY AT 579 2ND AVE SE IN AN I -C ZONING DISTRICT, LARRY MURPHY, APPLICANT. FACTS Larry Murphy is the applicant and owner of a parcel of land located at 579 2nd Ave SE, Hutchinson Minnesota; and, 2. The subject property is legally described as: LOTS 4 and 5, Block 18, SOUTH HALF OF HUTCHINSON, McLeod County, Minnesota. AND That part of Huron Street adjacent to Lots 4 and 5, Block 18, SOUTH HALF OF HUTCHINSON, lying West of the centerline of said street, McLeod County, Minnesota. 3. Larry Murphy, applicant and property owner, has applied to the City for a conditional use permit to allow a post frame addition to an existing building and a new post frame building for a construction company at 579 2nd Ave SE, Hutchinson, MN. 4. The property is located in the I/C 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 18, 2017 with the following findings and conditions: a. Four paved parking spaces are required on site, of which one must be a handicap space. b. The zoning ordinance requires the parking area and access drives be paved with an all-weather surface such as, concrete or bituminous. The access drives from the street to the front of each building must be a minimum of 24 feet wide and be paved with an all-weather surface. The parking area will also require an adequate drive aisle/turnaround that are paved. c. The City shall approve a final site layout plan that clearly shows the parking areas and access drives that will be improved with an all-weather surface. d. The area located between the two existing curb cuts within the right-of-way along 2nd Ave. SE shall be planted with grass. e. Any outdoor storage on the site will be required to be screened with a fence. f. If the appearance of the lot is not neat and tidy or is unsightly, as determined by the City, the conditional use permit may be revised and may be amended accordingly to address these issues. Findings of Fact — Resolution 14770 Conditional Use Permit 5792 nd Ave SE 9/26/2017 Page 2 g. The standards for granting a conditional use permit would be met, subject to the conditions stated. h. The proposed building and site improvements shall comply with the standards of the I/C district and the Zoning Ordinance, as well as all other City regulations. 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 conditional use requires approval of a new conditional use permit. j. If the proposed use fails to start operation within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. 7. The City Council of the City of Hutchinson reviewed the requested conditional use permit at its meeting on September 26, 2017 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: a. Four paved parking spaces are required on site, of which one must be a handicap space. b. The zoning ordinance requires the parking area and access drives be paved with an all-weather surface such as, concrete or bituminous. The access drives from the street to the front of each building must be a minimum of 24 feet wide and be paved with an all-weather surface. The parking area will also require an adequate drive aisle/turnaround that are paved. c. The City shall approve a final site layout plan that clearly shows the parking areas and access drives that will be improved with an all-weather surface. d. The area located between the two existing curb cuts within the right-of-way along 2nd Ave. SE shall be planted with grass. e. Any outdoor storage on the site will be required to be screened with a fence. f. If the appearance of the lot is not neat and tidy or is unsightly, as determined by the City, the conditional use permit may be revised and may be amended accordingly to address these issues. g. The standards for granting a conditional use permit would be met, subject to the conditions stated. h. The proposed building and site improvements shall comply with the standards of the I/C district and the Zoning Ordinance, as well as all other City regulations. 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 conditional use requires approval of a new conditional use permit. j. If the proposed use fails to start operation within one year of the conditional use permit being granted, the conditional use permit shall be deemed null and void and a new conditional use permit must be applied for. Findings of Fact — Resolution 14770 Conditional Use Permit 5792 nd Ave SE 9/26/2017 Page 3 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; (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 Larry Murphy, applicant and property owner, to build a post frame addition and a new post frame building and operate a construction company at 579 2nd Ave SE is hereby approved. Adopted by the City Council this 26th day of September, 2017. ATTEST: Matt Jaunich City Administrator Gary T. Forcier Mayor I.. DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan Jochum, AICP and City of Hutchinson Planning Staff Date: September 14, 2017, for September 19, 2017, Planning Commission Meeting Application: Consideration of a two lot preliminary and final plat of LJM Addition. Applicant: Larry Murphy PRELIMINARY AND FINAL PLAT OF LJM ADDITION Larry Murphy has submitted a preliminary and final plat to create a two -lot plat for the property located at 579 2nd Avenue SE. Mr. Murphy proposes to utilize this location for equipment storage for his construction related/snow removal businesses. GENERAL INFORMATION Existing Zoning: PC Industrial/Commercial District Property Location: 579 2nd Ave SE Preliminary and Final plat LJM Addition Planning Commission - 9/19//17 Page 2 Lot Size: 22,869 square feet (.525 Acres) Existing Land Use: Storage/industrial use Adjacent Land Use: Industrial and park/open space land uses Adjacent Zoning: I/C and R-3 Residential Comprehensive Land Use Plan: Medium Density Residential Zoning History: This property has been used for storage/industrial purposes for the past several decades. Applicable Regulations: Sections 153.36 and 153.50 of the City Code Preliminary and Final Plat: The proposed LJM Addition combines two old 66' x 132' lots with a portion of vacated right-of- way from Huron St SE to create two larger lots. There is one existing building on site that is approximately 60' x 65' in size. There is an easement for utilities on the east side of the lot that is 20 feet wide. No permanent structures will be allowed over this easement. The preliminary and final plat as shown, appear to meet all of the City of Hutchinson Zoning Ordinance and Subdivision Ordinance Requirements. Stormwater Management: It should be noted that this site is within the Shoreland Zoning District. The shoreland district regulates the amount of impervious surface on lots. Typically, lots are allowed to go to 25% impervious surface without additional stormwater mitigation to go to a higher amount. Since this lot is basically all gravel right now and gravel is considered an impervious surface the addition of the buildings to the site will not increase the impervious surface on site. The lot is in essence "grandfathered" regarding the fact that the impervious surface coverage is close to 100%. The lot is within the 0.2 percent annual chance for flooding, or zone X flood zone per FEMA. The 0.2 percent annual chance used to be called the 500 -year floodplain. It does not appear any special requirements need to be followed within this area. Recommendation: Staff recommends approval of the preliminary and final plats with the following recommendations: The final plat shall be recorded at the McLeod County Recorder's Office within 270 days of approval. LJM ADDITION PRELIMINARY PLAT k ,o �PV I i + k jw•"j i � I mew •ri6N.x a�+..'�'.a«. o:w: BLCC i<l 18 i e � ! I � I n,�nrrmw+o wusn�wlcawox.0 � � s' I d i Vc asttucT BLACK 12 J - --_.— —.� I� .-BLOCK] I 11 I 6 .I � I I IAI N161E aw-:,YiP SECOND AVENUE SE �•^ 1 BLOCK j 122 ; i +a I 2-2 - ^ •.w'-i. -+[ „„"..�� rwann uem wamco, ac r ._.._.._.._.._.._.._.__- --- f I I 500 „ BLOCK w N >S r W i J.Rrp c MnM 0.+wti' e.Yrtl ��w.x e�rt i enp �x r• r4N 1w. iue �....e.. tlr i.N. d ram w w. ,. den w I , , E 18 s � f I — — BLOCK] I 1- 51 I I I I I SECOND AVENUE SE BLOCK ! 122 � I LJM ADDITION � nkw.dw..,�.�.D....,•ua.�a..a ��gm.rwv.no.aor N^. wx, ,.,. �..M,xr w.,. •__ -m.,y, wxw I itj I� I II I I a Wis i� i4rrw..rlwN cwrq, W.�.. I�•..nxmyw�.wa+r,�.v..n.�w... rrrwxrxer�w..a.---m. _..rr xi._ ��ur nx x.d:x.00ron.x w.rdra d,r w.�.x.e.r re��,o°x.—«,r ten_ ` i J.Rrp c MnM 0.+wti' e.Yrtl ��w.x e�rt i enp �x r• r4N 1w. iue �....e.. tlr i.N. d ram iow. w. ,. den BLOCK 2 , I i M�..gn.�.+.+gc«rfr.nds�qdYrkia�w. Yn•..a.ne,.wyq�x.,wa+_wrr � .4.a. nx,s yy.yw. i� i4rrw..rlwN cwrq, W.�.. I�•..nxmyw�.wa+r,�.v..n.�w... rrrwxrxer�w..a.---m. _..rr xi._ ��ur nx x.d:x.00ron.x w.rdra d,r w.�.x.e.r re��,o°x.—«,r ten_ HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Consideration of CUP for A Brewery/Tap Room at 900 HWY 15 S Department: Planning LICENSE SECTION Meeting Date: 9/26/2017 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 OFAGENDA ITEM: This request is for a Brewery/Tap Room to be located in the former WCI Thrift building at 900 HWY 15 South. The size of the space being utilized is approximately 8,000 square feet. 4,920 square feet will be dedicated to storage for the brewery/tap room and 3,000 square feet for the tap room, entry way and cooler. There will be seating for approximately 90 customers and a total occupancy of 108. This use required a conditional use permit in the C-4 zoning district. There was discussion at the Planning Commission meeting regarding site access. Staff noted that the primary entrance can only be accessed off of Hwy 15 South and not northbound. Staff noted it is likely that vehicles will enter the site off of Linden Avenue. There is a paved drive from Linden Avenue to the front of the building where the parking lot is. The applicant also noted there will be an occasional food truck on-site, as well as occasional music outside. The outdoor events would have to comply with all of the noise ordinance requirements, as well as obtain any special permits/licenses necessary. Site lighting was also discussed and it was noted that there is a parking lot light in front of the building and that if parking is used in the rear of the building in the future that lighting will be needed. Three people from the public spoke regarding this request, Ron Doring, 225 Hwy 15 S, spoke against the project and noted traffic, noise, smell, and drunks as primary objections. Carol Johnson of Lakewood Dr. noted she doesn't live in the neighborhood but from her experience there isn't a lot of street lights in the area and this could be a safety concern. Ken Bentz, who owns 826 Franklin St SW along with his siblings noted that he isn't opposed to the project but had some questions. He asked about access to the old alley and it was noted he should work with the owner of the adjacent property to develop an easement and he may have a prescriptive easement because all of the years of use. He also noted that he would like snow piled up so it doesn't negatively affect his property. Dan Hart, applicant stated they want to be good neighbors and he didn't expect any issues with the easement or snow removal issue. The planning commission asked about deliveries and their frequency. It was noted that there would be one grain delivery per week with a box truck and beer would be delivered with vans off site. The request was unanimously approved. BOARD ACTION REQUESTED: Approval of conditional use permit. 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. 14772 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF CONDITIONAL USE PERMIT FOR A BREWERY AND TAP ROOM INA A C-4 ZONING DISTRICT LOCATED AT 900 HWY 15 S, DANIEL HART, APPLICANT. FACTS 1. CGE Properties, LLC is the owner of a parcel of land located at 900 Hwy 15 S, Hutchinson Minnesota; and, 2. The subject property is legally described as: The Westerly 41.25 feet of Lot 11, the Westerly 41.25 feet of Lot 12, and all of Lot 15, Auditor's Plat of the South Half, Section 6, Township 116 North, Range 29 West (County PID#'s 23.207.0100, 23.207.0110 & 23.207.0140) 3. Daniel Hart has applied to the City for a conditional use permit for a Brewery and Tap Room in the C- 4 zoning district at 900 Hwy 15 S, Hutchinson MN. 4. The Planning Commission met on September 19, 2017, and held a public hearing on the request and considered the effects of the proposal on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and consistency with the Comprehensive Plan, and hereby recommends approval of the request subject to 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 and site improvements shall comply with the standards of the C-4 district and the Zoning Ordinance. c. The Applicant must obtain all necessary permits for any construction. d. All parking spaces utilized for this use must be paved and accessed from a paved driveway/drive aisle. e. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. f. A detailed site plan with parking lot dimensions shall be provided with building permit submittal. g. The parking area for the food truck should be noted on the site plan. If the food truck impacts parking, more spaces will be needed. 5. The City Council of the City of Hutchinson reviewed the requested conditional use permit at its meeting on September 26, 2017 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: a. The standards for granting a conditional use permit would be met, subject to the conditions stated. b. The proposed building and site improvements shall comply with the standards of the C-4 district and the Zoning Ordinance. Findings of Fact — Resolution # 14772 900 Hwy 15 S Conditional Use Permit Page 2 c. The Applicant must obtain all necessary permits for any construction. d. All parking spaces utilized for this use must be paved and accessed from a paved driveway/drive aisle. e. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. f. A detailed site plan with parking lot dimensions shall be provided with building permit submittal. g. The parking area for the food truck should be noted on the site plan. If the food truck impacts parking, more spaces will be needed. APPLICABLE LAW 6. The conditional use permit request meets the following standards as required in Section 154.064 (C) 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; (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 7. The requested conditional use permit is consistent with the comprehensive plan. 8. 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. 9. 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 for a Brewery and Tap Room in the C-4 zoning district at 900 Hwy 15 S, Hutchinson MN is approved. Adopted by the City Council this 26th day of September, 2017. ATTEST: Matthew Jaunich City Administrator Gary T. Forcier Mayor STAFF REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan Jochum, AICP Date: September 15, 2017, for September 19, 2017, Planning Commission Meeting Application: CONSIDERATION OF A CONDITIONAL USE PERMIT FOR A BREWERY AND TAP ROOM LOCATED IN A C-4 ZONING DISTRICT LOCATED AT 900 HWY 15 SOOUTH. Applicant: Daniel Hart CONSIDERATION OF A CONDITIONAL USE PERMIT FOR A BREWERY AND TAP ROOM LOCATED IN A C-4 ZONING DISTRICT. This request is for a Brewery/Tap Room to be located in the former WCI Thrift building at 900 HWY 15 South. The size of the space being utilized is approximately 8,000 square feet. 4,920 square feet will be dedicated to storage for the brewery/tap room and 3,000 square feet for the tap room, entry way and cooler. There will be seating for approximately 90 customers and a total occupancy of 108. This use required a conditional use permit in the C-4 zoning district. Conditional Use Permit 900 HWY 15 So.— Brewery/Tap Room Planning Commission — 9-19-17 Page 2 GENERAL INFORMATION Existing Zoning: C-4 — Fringe Commercial District Property Location: 900 Hwy 15 S Lot Size: 215' x 360' or 1.75 acres Existing Land Use: Commercial Adjacent Land Use And Zoning: C-4 — Fringe Commercial Comprehensive Land Use Plan: Commercial Zoning History: C-4 for past 50 years or more Applicable Regulations: City Code of Ordinances Sections 154.064 Transportation: The property will be primarily accessed by Highway 15 Physical Characteristics: 215' x 360' (1.8 acres) Analysis: The conditional use permit is needed for Brewery and Tap Rooms in this zoning district. This site has been vacant for some time and this use has the potential to be very popular. Staff recommends approval of this request. Access and Parking: Access will be primarily off Highway 15 South. There is a 32' curb cut at the entrance to the site off Highway 15. The parking lot is currently paved. The applicant and property owner are planning some parking lot improvements that include turning a portion of the center grass area into a drive aisle. The northerly drive aisle loop between the parking spaces is approximately 18' wide and is a one-way loop. The southerly loop is approximately 14' wide. The center grass area is going to be reduced in size to make the drive aisle wider. In addition, a portion of the existing grass south of the parking lot will be turned into additional parking. A use like this basically requires one parking space per table, which would equate to 28 parking spaces. Additional spaces would be needed for employees. The site currently has 27 parking spaces existing. The proposed site plan indicates 35 parking spaces for the site. There is also a large gravel lot in the back that could be utilized for overflow parking. If it is determined at some point in the future that the rear lot is consistently being used a portion of that lot will be required to be paved and striped. Utilities: Any electric, gas, or other utilities that need to be relocated will be at the cost of the applicant. Conditional Use Permit 900 HWY 15 So.— Brewery/Tap Room Planning Commission — 9-19-17 Page 3 Conditional Use Permit: 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. Conclusion: 1. The proposed use is desirable and will contribute to the general welfare of the neighborhood in the subject location, as it will be consistent with the Comprehensive Plan future land use designation. 2. The proposed use is not anticipated to 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 as the use of the property will remain very similar to the existing use of the property. 3. The proposed use will be designed, arranged, and operated to permit the development and use of neighboring property in accordance with the applicable district regulations, just as they are used today. Recommendation: Staff recommends the approval of this request to the Planning Commission because the applicant's request meets the standards for approving a conditional use permit provided above. If the Planning Commission recommends approval of the applicant's request, staff suggests the following conditions be part of the approval: I. The standards for granting a conditional use permit would be met, subject to the conditions stated. 2. The proposed building and site improvements shall comply with the standards of the C-4 district and the Zoning Ordinance. 3. The Applicant must obtain all necessary permits for any construction. 4. All parking spaces utilized for this use must be paved and accessed from a paved driveway/drive aisle. 5. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. LINDEN AVENUE r . l -mar — - — - — - - - - - _-_-7 STATE HIGHWAY NO. 15 HUTCHINSON CITY COUNCIL c`=y-f 0' a_ � Request for Board Action 79 M-W Agenda Item: Consideration of Vacation of Right of Way - Bridgewater Estates 2nd Addition Department: Planning LICENSE SECTION Meeting Date: 9/26/2017 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 OFAGENDA ITEM: The applicants are seeking to vacate a portion of City right-of-way on Mahogany Court SW. The area was originally platted as a half-moon cul-de-sac but the actual cul-de-sac was never constructed, which results in a large area of unused City right-of-way. Currently, the properties at 1619 and 1625 Mahogany Court have houses built on the lot. The lot at 1613 is currently vacant and by vacating the right-of-way there is more buildable area on the lot. If this request is approved, construction on a new home will start as soon as possible. Nobody from the public spoke regarding this request. The Planning Commission unanimously approved the request. BOARD ACTION REQUESTED: Approval of vacation of right of way. 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. 14776 RESOLUTION APPROVING THE VACATION OF A PORTION OF CITY RIGHT OF WAY ON LOTS 3,4 AND 5 BLOCK 1 BRIDGEWATER ESTATES 2" ADDITION, HUTCHINSON. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MN: FINDINGS 1. The City of Hutchinson., property owner, petitioned for the vacation of dedicated City rights of way on Lots 3, 4 and 5 Block 1 Bridgewater Estates 2nd Addition. The areas are legally described as: LEGAL DESCRIPTION FOR VACATED RIGHT -OF - WAY: DESCRIPTION FOR VACATING PART OF MAHOGANY COURT SW BRIDGEWATER ESTATES SECOND ADDITION Vacate that part of Mahogany Court Southwest in BRIDGEWATER ESTATES SECOND ADDITION, according to the recorded plat thereof, lying northerly and northwesterly of a line described as follows: Commencing at the southeast corner of Lot 3, Block 1, of said BRIDGEWATER ESTATES SECOND ADDITION; thence North 89 degrees 28 minutes 26 seconds West, assumed bearing, along the south line of said Lot 3 a distance of 41.65 feet to an angle point in said south line Lot 3 and the point of beginning of the line to be described; thence continuing North 89 degrees 28 minutes 26 seconds West 37.75 feet; thence South 66 degrees 01 minute 37 seconds West 39.47 feet; thence South 38 degrees 36 minutes 36 seconds West 38.16 feet to the southeasterly corner of Lot 5, Block 1 of said BRIDGEWATER ESTATES SECOND ADDITION, and said line there terminating. Reserving an easement for drainage and utility purposes in favor of the City of Hutchinson over, under and across that part of said Mahogany Court Southwest being vacated. 2. The City Council has the Planning Commission recommendation for approval and has found that the public interest will still be served by disposing of Right -Of -Way that is not needed and will benefit the adjoining landowner. 3. The City Council has determined that this vacation is in keeping with the general planning of the City. CONCLUSION RECOMMENDATION: The City Council hereby approves the vacation of Right -of -Way as described above. Adopted by the City Council this 26th day of September, 2017. ATTEST: Matthew Jaunich City Administrator Gary T. Forcier Mayor DIRECTORS REPORT - PLANNING DEPARTMENT To: From: Date: Application Applicants: Hutchinson Planning Commission Dan Jochum, AICP September 14, 2017, for September 19, 2017, Planning Commission Meeting Consideration of a request for a vacation of a portion of City right-of-way on Lots 3,4, and 5 of Block 1, Bridgewater Estates 2nd Addition. Bonneville Land and Cattle Co. LLC Anthony Bridge Shawn Mathews VACATION OF RIGHT-OF-WAY Applicable Regulations: Section 14.05 Vacation of Streets - City Charter Brief Description: The applicants are seeking to vacate a portion of City right-of-way on Mahogany Court SW. The area was originally platted as a half-moon cul-de-sac but the actual cul-de-sac was never constructed, which results in a large area of unused City right-of-way. Currently, the properties at Vacation of Right -of -Way 470 High St. NE and Highway 7 East Planning Commission -December 15, 2015 Page 2 1619 and 1625 Mahogany Court have houses built on the lot. The lot at 1613 is currently vacant and by vacating the right-of-way there is more buildable area on the lot. If this request is approved, construction on a new home will start as soon as possible. Analysis and Recommendation: Staff recomments approval of the vacation of right-of-way with the following requirements: 1) Bonneville Land and Cattle Co. LLC must provide legal descriptions of the three parcels of land created to the City in order for the City to quit claim deed the vacated property to the adjacent property owner. 2) The driveway of the proposed home at 1613 Mahogany Court SW shall be limited to 22 feet wide at the new right-of-way line created. 3) Bonneville Land and Cattle Co. LLC shall ensure there are no private utilities in the area to be vacated and provide this information to the City. 4) Bonneville Land and Cattle Co. shall ensure all existing driveways will meet appropriate setbacks. EXHIBIT FOR VACATION OF PART OF MAHOGANY COURT SW BRIDGEWATER ESTATES SECOND ADDITION gRIDGEWATE 5 Block 1 4 ESTATES 6relmaq. O uBlltr er a—Ill 1 N apprTloN Fri�°a DESCRIPTION FOR .111MMr PANE OF MArwclwT 0011111 Sou BRIDCEWATER ESTATES SECOND ADDFI 2 That port d —ted Mohagorg Court Savtheemt In EHDGENATER ESTATES SECOND ADDMON, Vacate that part M Caret SouthWeeL In SMDXMTER ESTATES SECDND ADDITION, r''T`r R t; 3 ~ veea,dinq to the nalrEad plot them cf. lOro nortlnriy and north swomy of a line deecr�ibZ oe foie.. 4; then.. Soalh DD degree. 01 minute oevosdm point Cammen 'rlq at Ne southeast comer d Lot J. Block 4, of maid 9PoDGEWRtJt ESTATES SECOND ADOfTWN; Shona North !I ddpp 28 minutes 2B eeccnds went, omsumed Searing, obey SM awls TIM of void Lot 3 n dl.E oT 41.83 feet to on angle PWM in sold eauth Ims Lot 3 and SIN polfd aT yepl NM d the Ikx to ht dwalbed; theme anUiwlnq North 09 degree. 28 a miwtat 26 eetoMm g+emt 37.75 Fart; thance Sovth 6$ dsgr7, 01 .Snit. 37 teases Wast jg.a7 fo.t: therNa South 36 d.pYM 3B minulee 36 eec2d Wad 30.10 feet th the ootAheasterly morels of Lot 5, Bbok 1 of meld DRIDGEWAiER ESTATES SECOND AMMON. and cold TIM there lwrNnotIng . Rgerrinp on .oawhent far drolnoge and vNally purpvrea In sane M SM Clly Or Hutehlnevn over, under and xra.s that part of sold Mahogany Carrt Swlhweet Doing wcoted. AREA -3672 Squon Fast O 20 4,9 90 SUGGESTED DESCRIPRONS FOR APPORTIONING VACATED MAHOCA}l1' CDt1Nf SOOT N M scare fn leaf LOT 3, BLOCK 1 WND ADDN. That part of raaaNO Mahogany Court S.,Mw-t in BFdOGEWATER ESTATES S[RSO . tam ed os foRars: ocpprdGtg to the fmeanMO plot thereinab Carm+unaing at tris eouiheast earner of Lot 3. BIxN 1. of "; BRIDOEWATER E51ATE5 SECOND AOOfRCff; tlxnq Hoer 00 degrmee 28 ml,wtee 26 seconds weal, apumed Eeadnp. along the 41.65 fad to In Bald mouth Bne Lot 3 and mouth an. IX raid TAS 3 o dlolona o} on ongle pWM th— lb*QW�ng Of �a°,«t L.2 v ° :� 7r° 3 �°:�1 c CO A 1O leng ter s&~)r SIM vs. said Lot 3 to the point of la"inMnq. ,] V f Y AREA -W Square Foot LOT a BLOCK I N G, INC 261Y aiwaswam `" COURT SW I 1 Norma, car illy rhot Ihlr Survey, PION or 2 �up.�Yl�i:n end �h I I %F%4 awlyy Vern dlrset i Lend surverer ander She lows of the Star* of YI•M.. le. Dock 2 alxl f r d f� JAW46 prit.9-h Pete: 6" — LI" N.. AVAMAF LOT 5, BLOCK 1 That Wpo OF vocpted MailMany Court Southweet in BRIDGEWATER ESTATES SECDND ADp01ON, vocorfing to the recorded plot th.r.af. de.mb.d as fall*"; Cnmmwlcina at She southeast corner of Lot 3. Block 1, of said 2B m1n.1" 26 "oWs wart. aealmrd fM Bne of mold Lot 3 a distance of 4145 Now maid mouth Ins Lot 3; than" contln N minvtem 28 seconds watt 37..75 }mak .route 37 seconds. West 39-47 loot to ter thot port OF vo"tad lloh ony Cont Saul thmncm South 36 degree. 36 ril 38 i to th. southsamt.rrpty, corner v} Let S, tlAocl ESTATES SECOND ADpfROH; "w""norther of ouid Lot $ to the me rlheoml.rty comer south 34 dmpreom 04 minute. 21 .econds point of trpinring. ARE4-1015 Square Fent 3 2 That port d —ted Mohagorg Court Savtheemt In EHDGENATER ESTATES SECOND ADDMON, ti sxA 5' - - L 1lW.lp ,;Pi 4S gp'00 r''T`r R t; 3 ~ a000rdlnp to th. --dad plat thereof. 4n.11hed o. }allows: Can—irg at th. eoAhoost amen of Lot 3, Bleak 1. of .aid tiRIDCEfm.TEA ESTATES SECOND ADDI}10N; 1N—x, North T ap rope 20 .route. 26 seconds eek, aetumad Wonq the mouth Bne al maid LIA S o dleFona of 41.05 Fast to on w poklt in meld —th r • Let 3; ll . Wd of that oartgOf yvootnd North 40 u hogmy Court SouShNOS to a desarlbedr�'. Tthsnp SaAeel to the n 00 dap q 01q ai rnlnute 37 .nesse. meed 39.47 ted; thMa Horth 7.4 dmprcw OM1 .Snub. 21 encores mea! 38.00 feet to me 4outhWederly amen m Lae 4. FNxh T or Bold BRIOOEwATE1R ESTATES SECOND ADDf1gN; �yI thsna nprthmeeteAy, vlhng the .ouShedy Nine M said Lot 4 W thin .eufhead.rty c a said lA! s.6 West 33.84 }sat to the o} aglnning. SSi 4; then.. Soalh DD degree. 01 minute oevosdm point ' AREA -2010 Square Fast N G, INC 261Y aiwaswam `" COURT SW I 1 Norma, car illy rhot Ihlr Survey, PION or 2 �up.�Yl�i:n end �h I I %F%4 awlyy Vern dlrset i Lend surverer ander She lows of the Star* of YI•M.. le. Dock 2 alxl f r d f� JAW46 prit.9-h Pete: 6" — LI" N.. AVAMAF LOT 5, BLOCK 1 That Wpo OF vocpted MailMany Court Southweet in BRIDGEWATER ESTATES SECDND ADp01ON, vocorfing to the recorded plot th.r.af. de.mb.d as fall*"; Cnmmwlcina at She southeast corner of Lot 3. Block 1, of said 2B m1n.1" 26 "oWs wart. aealmrd fM Bne of mold Lot 3 a distance of 4145 Now maid mouth Ins Lot 3; than" contln N minvtem 28 seconds watt 37..75 }mak .route 37 seconds. West 39-47 loot to ter thot port OF vo"tad lloh ony Cont Saul thmncm South 36 degree. 36 ril 38 i to th. southsamt.rrpty, corner v} Let S, tlAocl ESTATES SECOND ADpfROH; "w""norther of ouid Lot $ to the me rlheoml.rty comer south 34 dmpreom 04 minute. 21 .econds point of trpinring. ARE4-1015 Square Fent CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 09/11/2017 - 09/26/2017 Check/ Check Date Det Vendor Name Description Amount 09/15/2017 EFT544 EFTPS 8/27 - 9/9/2017 PAYROLL 65,306.72 09/15/2017 EFT545 Aflac 8/27 - 9/9/2017 PAYROLL 170.41 09/15/2017 EFT546 MN Dept of Revenue 8/27 - 9/9/2017 PAYROLL 12,295.09 09/15/2017 EFT547 PERA 8/27 - 9/9/2017 PAYROLL 47,287.47 09/15/2017 EFT548 TASC-Flex 8/27 - 9/9/2017 PAYROLL 1,886.76 09/15/2017 EFT549 TASC-H S A 8/27 - 9/9/2017 PAYROLL 11,787.62 09/15/2017 EFT550 ICMA 8/27 - 9/9/2017 PAYROLL 2,222.40 09/15/2017 EFT551 VOYA 8/27 - 9/9/2017 PAYROLL 990.00 09/15/2017 EFT552 MNDCP 8/27 - 9/9/2017 PAYROLL 305.00 09/15/2017 197853 MNPEA 8/27 - 9/9/2017 PAYROLL 624.00 09/15/2017 197854 UNUM Life Insurance 8/27 - 9/9/2017 PAYROLL 981.09 09/15/2017 197855 HART 8/27 - 9/9/2017 PAYROLL 663.87 09/11/2017 197852 ERIC WANGEN CONST EASEMENT, RELEASE OF POTENTIAL CLAIMS 15,000.00 09/13/2017 197856 POSTMASTER OCT - SR NEWSLETTER POSTAGE 98.00 09/13/2017 197857 POSTMASTER POSTAGE - UTILITY BILLS 1,000.00 09/13/2017 197858 POSTMASTER POSTAGE - UTILITY BILLS 50.00 09/26/2017 197859 3D SPECIALTIES SURFACE MOUNT, SHEAR BOLT, WRENCH 535.08 09/26/2017 197860 A.M. LEONARD INC R&M SUPPLIES FOR FORESTRY 518.38 09/26/2017 197861 AARP SEPT AARP INSTRUCTION 525.00 09/26/2017 197862 ACE HARDWARE VARIOUS R&M SUPPLIES 484.82 09/26/2017 197863 VOID 09/26/2017 197864 ACTIVE NETWORK INC MEMBERSHIPS CARDS, KEY TAGS -AQUATIC CENTER 980.00 09/26/2017 197865 ADULT TRAINING AND HABILITATION CEN RECYCLING PICKUP 8/2 - 8/29/17 LIQUOR STORE 125.00 09/26/2017 197866 AHLGREN ELECTRIC VARIOUS ELECTRICAL R&M 292.56 09/26/2017 197867 AIM ELECTRONICS INC ROBERTS PARK SCOREBOARD REPAIRS 480.00 09/26/2017 197868 ALPHA WIRELESS MONTHLY MAI NT AGREEMENT - PD RADIOS 848.19 09/26/2017 197869 AMERESCO ANNUAL MAINTENANCE AGREEMENT - SOLAR ARRAY 7,995.00 09/26/2017 197870 AMERICAN BOTTLING CO SEPTEMBER COST OF GOODS - LIQUOR STORE 124.64 09/26/2017 197871 AMERICAN PLANNING ASSN APA, CHAPT/MN, AICP MEMBERSHIPS - PLANNING 539.00 09/26/2017 197872 AMERIPRIDE SERVICES VARIOUS CLEANING SUPPLIES 100.31 09/26/2017 197873 ANIMAL MEDICAL CENTER ON CROW RIVER PROCESSING/BOARDING FEES 695.00 09/26/2017 197874 ARCTIC GLACIER USA INC. SEPTEMBER COST OF GOODS - LIQUOR STORE 689.82 09/26/2017 197875 ARNESON DISTRIBUTING CO SEPTEMBER COST OF GOODS - LIQUOR STORE 328.50 09/26/2017 197876 ARROW TERMINAL LLC DIGITAL TEST LIGHT W/5' CORD - STREETS 71.36 09/26/2017 197877 ARTHUR J GALLAGHER RISK QUARTERLY INSURANCE BROKER FEE 3,375.00 09/26/2017 197878 ARTISAN BEER COMPANY SEPTEMBER COST OF GOODS - LIQUOR STORE 1,165.36 09/26/2017 197879 ASPHALT ZIPPER CLUTCH FAILURE - EMERGENCY REPAIR 3,786.95 09/26/2017 197880 AUTO VALUE - GLENCOE SOCKET SET & TRAY 55.98 09/26/2017 197881 AUTOMATIC SYSTEMS CO ONSITE MODIFICATIONS TO SYSTEM - WWTP 706.18 09/26/2017 197882 AWWA-MINNESOTA SECTION - ST. CLOUD CENTRAL DIST WATER OP TRAINING 90.00 09/26/2017 197883 B & B SPORTS DOCK & BOAT LIFT WHEEL - PARKS 168.75 09/26/2017 197884 B.W. WELDING FABRICATION OF WRENCH HANDLE & EXTENSION 390.00 09/26/2017 197885 BELLA VITA BAGS SEPTEMBER COST OF GOODS - LIQUOR STORE 227.70 09/26/2017 197886 BELLBOY CORP SEPTEMBER COST OF GOODS - LIQUOR STORE 4,573.48 09/26/2017 197887 BERGER-MCLAIN, KAYLA REFUND DAMAGE DEPOSIT - EVENT CENTER 300.00 09/26/2017 197888 BERNICK'S SEPTEMBER COST OF GOODS - LIQUOR STORE 549.14 09/26/2017 197889 BLUE WATER ENTERPRISES LLC VARIOUS VEHICLE R&M 140.59 09/26/2017 197890 BRANDON TIRE CO TIRE REPAIRS ON VARIOUS VEHICLES 6,945.06 09/26/2017 197891 BRAUN INTERTEC CORP TESTING - SCHOOL ROAD PROJECT & HOTEL ROAD 45,889.50 09/26/2017 197892 BREAKTHRU BEVERAGE SEPTEMBER COST OF GOODS - LIQUOR STORE 18,525.48 09/26/2017 197893 BS&A SOFTWARE VANCO CUSTOMIZATION - UTILITY BILLING 2,500.00 09/26/2017 197894 C & C CONTRACTING CLEAN PARKING LOTS BEFORE STRIPPING 1,000.00 09/26/2017 197895 C & L DISTRIBUTING SEPTEMBER COST OF GOODS - LIQUOR STORE 41,021.95 09/26/2017 197896 CANNON RIVER WINERY SEPTEMBER COST OF GOODS - LIQUOR STORE 552.00 09/26/2017 197897 CARDIAC SCIENCE DEFIB BATTERY FOR SQUAD #5 249.00 09/26/2017 197898 CENTRAL HYDRAULICS UNIT #295/0 -RING FACE, SWIVEL, HOSE 175.01 09/26/2017 197899 CENTRAL MCGOWAN HATS SHOP -ACETYLENE, HIGH PRESSURE LG/MD 200.36 09/26/2017 197900 CHEP RECYCLED PALLET SOLUTIONS LLC 07- B GRADE 48 X 40 1,809.11 09/26/2017 197901 COMMISSIONER OF TRANSPORTATION STATE TESTING ON SCHOOL/ROBERTS RD PROJECT 193.16 09/26/2017 197902 CORNER POST EROSION CONTROL HYDROSEEDING - SCHOOL ROAD PROJECT 1,635.00 09/26/2017 197903 CORRA GROUP 8/1-8/31/2017 CREDIT REPORT 11.00 09/26/2017 197904 CREEKSIDE SOILS PRODUCT FOR CITY PARKS 131.70 09/26/2017 197905 CROW RIVER AUTO & TRUCK REPAIR 2006 FORD FREESTAR - OIL CHANGE 22.67 09/26/2017 197906 CROW RIVER AUTO & TRUCK REPAIR 2015 CHVY CAPRICE #3 - OIL CHANGE, LUBE 240.41 09/26/2017 197907 CROW RIVER OFFICIALS ASSN YOUTH SOCCER/FOOTBALL OFFICIAL FEES 3,050.00 09/26/2017 197908 CROW RIVER PRESS INC SENIOR NEWSLETTERS 91.90 09/26/2017 197909 DAVIS MOTORS 2017 CHEV SILVERADO - WORK TRUCK - WATER 24,700.00 09/26/2017 197910 DEMMERS, JESSE HANGAR #4-5 - REFUND OF RENT PAID 440.00 09/26/2017 197911 DETLOFF, LOIS REFUND - MOVED CAMPSITES -FULL TO ELECTRIC 20.00 09/26/2017 197912 DOBERSTEIN, SONJA UB refund for account: 3-210-2160-0-07 66.84 09/26/2017 197913 DOOLEY'S PETROLEUM INC DIESEL 1,888.33 09/26/2017 197914 DPC INDUSTRIES INC SODIUM HYPO 12.5% 1,493.85 09/26/2017 197915 DROP -N -GO SHIPPING INC Postage 08/20-09/02/17 - VARIOUS CITY DEPARTMENTS 599.02 09/26/2017 1197916 E2 ELECTRICAL SERVICES INC ELECTRICAL REPAIRS - WWTP 260.00 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 09/11/2017 - 09/26/2017 Check/ Check Date Det Vendor Name Description Amount 09/26/2017 197917 EBERT CONSTRUCTION INCUBATOR PROJECT - DRAW REQUEST #5 507,738.23 09/26/2017 197918 ECOLAB PEST ELIMINATION COCKROACH/RODENT PROGRAM 219.49 09/26/2017 197919 EHLERS & ASSOCIATES INC TIF SETUP COST #4-19 - HOTEL SITE CLEANUP TIF 4,250.00 09/26/2017 197920 ELENA'S BAKERY LLC CUPCAKES - AQUATIC CENTER 408.00 09/26/2017 197921 ELK RIVER COMPOSTING INC 8/1-8/12'17 CONTRACT COMPOST 18,126.92 09/26/2017 197922 EMPLOYMENT RESOURCE CENTER TEMPORARY STAFFING - CREEKSIDE 2,388.96 09/26/2017 197923 ERICKSON ENGINEERING CO LLC 2ND AVENUE BRIDGE PLANS 2,744.00 09/26/2017 197924 ERICKSON, CHRISTINE SAFETY FOOTWEAR REIMBURSEMENT 95.00 09/26/2017 197925 FAHRNER ASPHALT SEALERS LLC 2017 AIRPORT IMPROVEMENT PROJ COMPLETED 41,392.40 09/26/2017 197926 FARM -RITE EQUIPMENT SKIDLOADER - FILTERS, SEAL/GLASS FOR DOO 439.98 09/26/2017 197927 FARM -RITE EQUIPMENT SKIDLOADER- COUPLER 84.85 09/26/2017 197928 FASTENAL COMPANY EAR PLUGS, EYEWEAR, COVERS, CABLE TIES, 790.18 09/26/2017 197929 FINANCE & COMMERCE 1-14P17-14 ALLEY IMPROV JEFFERSON & ADAMS 301.90 09/26/2017 197930 FIRST ADVANTAGE LNS OCC HEALTH SOLU EMPLOYEE DRUG TEST 31.23 09/26/2017 197931 FIRST CHOICE FOOD & BEVERAGE SOLUTI COL 1.5 FP CASE 470.20 09/26/2017 197932 FOX, AUDREY UB refund for account: 1-786-0204-0-00 27.33 09/26/2017 197933 G & K SERVICES VARIOUS CLEANING SUPPLIES 134.82 09/26/2017 197934 GAVIN, DONLEY & OSTLUND, LTD FLAT FEE AGREEMENT - AUGUST 2017 LEGAL SVCS 3,300.00 09/26/2017 197935 GEB ELECTRICAL INC VARIOUS ELECTRICAL R&M 552.00 09/26/2017 197936 GRAINGER VARIOUS R&M SUPPLIES 379.03 09/26/2017 197937 GRAPE BEGINNINGS, INC SEPTEMBER COST OF GOODS - LIQUOR STORE 1,243.00 09/26/2017 197938 HACH COMPANY CHLORINE, AMMONIA, FLUORIDE - WTP 919.93 09/26/2017 197939 HAGER JEWELRY INC. ENGRAVED EMPLOYEE NAME PLATES (3) 49.00 09/26/2017 197940 HANSEN GRAVEL 50/50 DIRT/COMPOST, TRUCKING 825.00 09/26/2017 197941 HANSEN TRUCK SERVICE TANKER 6 - ENGINE REPAIR 1,310.36 09/26/2017 197942 HANSON & VASEK CONSTRUCTION CONCRETE REPAIRS - VARIOUS LOCATIONS 8,725.00 09/26/2017 197943 HAUG IMPLEMENT CO SKIDLOADER - COUPLER, HOSE FITTINGS 378.35 09/26/2017 197944 HENRY'S WATERWORKS INC EMERG ORDER - FLANGE KIT, PLUNGER, VALVE 2,295.32 09/26/2017 197945 HIBU INC DISPLAY ADS -LIQUOR STORE 1,548.00 09/26/2017 197946 HOHENSTEINS INC SEPTEMBER COST OF GOODS - LIQUOR STORE 326.00 09/26/2017 197947 HOLT TOUR AND CHARTER INC. COACH BUS -COOKING SCHOOL, MN ARBORETUM 625.00 09/26/2017 197948 HP INC HP/COMPAQ-ELITE DESK & DISPLAY 302.00 09/26/2017 197949 HUTCHFIELD SERVICES INC COMMERICAL JANITORIAL SEPT 2017 - HATS FACILITY 1,415.00 09/26/2017 197950 HUTCHINSON AREA CHAMBER OF COMMERCE HUTCH LEADERSHIP INSTITUTE - 2 PD EMPLOYEES 1,100.00 09/26/2017 197951 HUTCHINSON CO-OP GAS, GREASE 6,134.95 09/26/2017 197952 HUTCHINSON CO-OP AGRONOMY ROUNDUP POWERMAX 67.67 09/26/2017 197953 HUTCHINSON EVENT CENTER MNDOT OPENHOUSE 20.00 09/26/2017 197954 HUTCHINSON HEALTH PRE-EMPLOYMENT SCREENINGS 733.30 09/26/2017 197955 HUTCHINSON LEADER ADVERTISING 1,382.36 09/26/2017 197956 HUTCHINSON UTILITIES AUG UTILITIES 8/1/17 -9/1/17 74,469.89 09/26/2017 197957 HUTCHINSON WHOLESALE #1550 HATS FUEL PUMPS, FILTERS 31.13 09/26/2017 197958 HUTCHINSON WHOLESALE #1551 TRAILERS - PIGTAIL, SEALS, SOCKETS, COIL 214.59 09/26/2017 197959 HUTCHINSON WHOLESALE #2520 HAZMAT TRAILER (HERT) - BATTERY & CORE D 96.99 09/26/2017 197960 HUTCHINSON YOUTH BASKETBALL ASSN REIMB FOR OVERPYMT OF GYM FEES 620.00 09/26/2017 197961 HUTCHINSON, CITY OF Storm Drainage 8/1-8/31'17 4,983.06 09/26/2017 197962 IDEAL SERVICE INC VFD W/3 CONTACTOR BYPASS SWITCH,TCI ELEC 7,417.62 09/26/2017 197963 INTERSTATE BATTERY SYSTEM MINNEAPOL SHOP PARTS 451.40 09/26/2017 197964 JACK'S UNIFORMS & EQUIPMENT INNER PANT BELT 43.94 09/26/2017 197965 JEFF MEEHAN SALES INC. AUGUST 2017 CREEKSIDE COMMISSIONS 1,289.35 09/26/2017 197966 JEFF'S DETAILING FORD VAN - COMPLETE DETAIL INT & EXT 200.00 09/26/2017 197967 JJ TAYLOR DIST OF MN SEPTEMBER COST OF GOODS - LIQUOR STORE 5,628.30 09/26/2017 197968 JOE'S SPORT SHOP T-SHIRTS - PRCE 2,175.00 09/26/2017 197969 JOHNSON BROTHERS LIQUOR CO. SEPTEMBER COST OF GOODS - LIQUOR STORE 41,544.15 09/26/2017 197970 KDUZ KARP RADIO 8/3-8/22 30 MINUTE ADVERTISING - LIQUOR STORE 354.50 09/26/2017 197971 KERI'S CLEANING 9/1-9/15 CITY CTR, LIBRARY, SR DINING, F 2,044.00 09/26/2017 197972 KNIFE RIVER OAKLAND CMTRY-GRANITE, MIN LOAD, CLEANUP 301.00 09/26/2017 197973 KOHLS SWEEPING SERVICE 4" WHITE LINES ON ST, PARKING LOT, YELLO 14,315.00 09/26/2017 197974 KRANZ LAWN & POWER DONOVAN SCHUETTE FORESTERY, GAS CAPS, 70 28.24 09/26/2017 197975 KWIK TRIP PIZZA - CONCESSIONS FOR AQUATIC CENTER 846.63 09/26/2017 197976 L & P SUPPLY CO BEARINGS, SEAL, SLEEVE, PACKING 312.25 09/26/2017 197977 LASER DYNAMICS FORGIVABLE LOAN -EDA INCUBATOR TENANT 23,000.00 09/26/2017 197978 LEAGUE OF MN CITIES -INS TRUST 7/1/17-6/30/18 INSURANCE PREMIUM - HATS FACILITY 73,807.00 09/26/2017 197979 LEXISNEXIS AUGUST 2017 1 USER 160.63 09/26/2017 197980 LIEN, MIKE REIMBURSE CONF REG & AIRFARE ON PERSONAL CC 825.40 09/26/2017 197981 LINKEDIN CORP 9/1/17-8/31/18 - LyndaPro 2.0 1,750.00 09/26/2017 197982 LIQUOR HUTCH SEPTEMBER COST OF GOODS - LIQUOR STORE 51.41 09/26/2017 197983 LITCHFIELD BUILDING CENTER 36" BS100 DOORS 1,114.00 09/26/2017 197984 LOCHER BROTHERS INC SEPTEMBER COST OF GOODS - LIQUOR STORE 22,550.30 09/26/2017 197985 MACQUEEN EMERGENCY GROUP LADDER -1, CABLE ASSY, BAT NEGATIVE, POST 86.23 09/26/2017 197986 MANEY INTERNATIONAL INC PULLEY ASSEMBLY - VEHICLE REPAIR 176.53 09/26/2017 197987 MARK BETKER CONSTRUCTION LLC INSTALL 3 WINDOWS @ ROCKET HILL PK BLDG 760.00 09/26/2017 197988 MARSHALL CONCRETE PRODUCTS WEST ELEM - COBBLE, PAVE EDGING 586.31 09/26/2017 197989 MATHESON TRI -GAS INC HIGH PRESSURE - MEDIUM 17.52 09/26/2017 1197990 MAYTAG LAUNDRY & CAR WASH ILINEN CLEANING SERVICES 8/14-8/30 - EVENT CENTER 158.90 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 09/11/2017 - 09/26/2017 Check/ Check Date Det Vendor Name Description Amount 09/26/2017 197991 MCKIMM MILK TRANSIT FREIGHT ALL KINDS: CREEKSIDE-BFG SUPPLY 287.00 09/26/2017 197992 MCLEOD COUNTY AUDITOR -TREASURER TIF SET-UP FEES 300.00 09/26/2017 197993 MCLEOD COUNTY COURT ADMINISTRATOR BAIL - D. DOLMER 600.00 09/26/2017 197994 MCLEOD COUNTY HIGHWAY DEPT. EQUIP COSTS FOR LUCE LINE TRAIL MOWING 611.96 09/26/2017 197994 MCLEOD COUNTY HIGHWAY DEPT. CREDIT ON PRIOR INVOICE - STREETS (393.12) 09/26/2017 197995 MCLEOD PUBLISHING INC ADVERTISER -WEDDING DIRECTORY 18.00 09/26/2017 197996 MEDICA COBRA & OCT MEDICAL INSURANCE 125,448.91 09/26/2017 197997 MEEKER COUNTY SHERIFF'S OFFICE 43 -CR -16-1421 S PAULSON 70.00 09/26/2017 197998 MEEKER WASHED SAND & GRAVEL SAND - 2 LOADS 3,134.45 09/26/2017 197999 MENARDS HUTCHINSON BATTERIES, VALVES, TAPE, NIPPLES, BUSHIN 352.85 09/26/2017 198000 MES - MIDAM VESTS 172.05 09/26/2017 198001 MESSAGE MEDIA SEPT ACCESS FEE 30.00 09/26/2017 198002 MEYER LABORATORY INC CHEMICALS - PARKS DEPT 85.91 09/26/2017 198003 MINI BIFF 7/31 - 8/31/17 PARKS & PD 226.79 09/26/2017 198004 MINNESOTA DEPT OF AGRICULTURE COMPOST REGISTRATION 200.00 09/26/2017 198005 MINNESOTA LAWYER 1 YEAR SUBSCRIPTION 299.00 09/26/2017 198006 MINNESOTA VALLEY TESTING LAB CARBON, PHOSPH, COLIFORM TESTING - WWTP 7,671.30 09/26/2017 198007 MOTION INDUSTRIES INC BAGGER -DRIVE BELTS 566.26 09/26/2017 198008 MOTOROLA BATTERY, BELT CLIPS, EARPEICE 266.37 09/26/2017 198009 MYGUY INC. BLENDCO 55 GAL TANK 30.00 09/26/2017 198010 NORTHERN BUSINESS PRODUCTS VARIOUS PAPER PRODUCTS 765.70 09/26/2017 198011 NORTHERN GREEN EXPO 2018 BOOTH - FINAL PYMT CREEKSIDE TRADE SHOW 326.40 09/26/2017 198012 NORTHERN STATES SUPPLY INC VARIOUS R&M SUPPLIES 324.58 09/26/2017 198013 NORTHWESTERN POWER EQUIP HI -E -DRY MODEL 195 DEHUMIDIFIER 3,211.25 09/26/2017 198014 NORTROM, ALICIA REIMB - UNIFORM - TRAINING PANTS, BOOTS 214.98 09/26/2017 198015 NU -TELECOM AUGUST SERVICES 74.95 09/26/2017 198016 NUSS TRUCK & EQUIPMENT SEMI 805 - BOX BATTERY 245.50 09/26/2017 198017 O'REILLY AUTO PARTS VARIOUS AUTO R&M SUPPLIES 57.34 09/26/2017 198018 OFFICE DEPOT VARIOUS OFFICE SUPPLIES 338.07 09/26/2017 198019 PACE ANALYTICAL SERVICES SEDIMENT TESTING & ANALYSIS - OTTER LAKE 4,954.40 09/26/2017 198020 PACE ANALYTICAL SERVICES LLC SEDIMENT TESTING & ANALYSIS - OTTER LAKE 1,169.60 09/26/2017 198021 PAUSTIS WINE COMPANY SEPTEMBER COST OF GOODS - LIQUOR STORE 4,802.54 09/26/2017 198022 PEAT INC. SPHAGNUM FINE - PO 4446 RECD 4,845.00 09/26/2017 198023 PEOPLEREADY INC WE 9/30/17 - WINTEROWD, HILLMANN 3,381.60 09/26/2017 198024 PHILLIPS WINE & SPIRITS SEPTEMBER COST OF GOODS - LIQUOR STORE 8,568.90 09/26/2017 198025 PIONEER MANUFACTURING CO BRITE STRIPE ORANGE PAINT 5 GAL 2,228.75 09/26/2017 198026 PLUNKETTS PEST CONTROL SEPT 2017 - AUG 2018 PEST CONTROL 705.77 09/26/2017 198027 POSTMASTER SR NEWSLETTER POSTAGE 98.00 09/26/2017 198028 POSTMASTER 50 PREPAID POST CARDS 19.00 09/26/2017 198029 PRECAST SYSTEMS SLAB - OAKLAND CEMETARY 200.00 09/26/2017 198030 PRO AUTO MN INC. DODGE DURANGO-OIL CHANGE 16.94 09/26/2017 198031 PTM DOCUMENT SYSTEMS W -2'S FORMS - FINANCE 141.12 09/26/2017 198032 QUADE ELECTRIC CH 2 POLE 20 BOLT ONS 75.90 09/26/2017 198033 QUILL CORP PAPER TOWELS 83.97 09/26/2017 198034 R & H PAINTING 3 LAYER PROPRIATARY MANHOLE LINER SYSTEM 16,870.00 09/26/2017 198035 RATH RACING POLARIS RANGER - SPARE PARTS 92.81 09/26/2017 198036 RDO EQUIPMENT CO. CAP, FILLER, VENT 40.71 09/26/2017 198037 RED BULL DISTRIBUTION COMPANY SEPTEMBER COST OF GOODS - LIQUOR STORE 461.00 09/26/2017 198038 REFLECTIVE APPAREL FACTORY INC POLO SHIRTS W/ LOGO - STREETS & WTP 349.99 09/26/2017 198039 REINER ENTERPRISES INC PU TRAILER FROM MORRIS, METRO WEST -WAVER 1,452.95 09/26/2017 198040 REINERT, DARLENE CLASS CANCELLATION 51.00 09/26/2017 198041 RENVILLE COUNTY SHERIFF DEPT CR 161421 -SERVICE FEES: SUBPOENAS - ZIE 120.00 09/26/2017 198042 RIDDELL ALL AMERICAN SPORTS CORP VICTOR HELMETS - PRCE 283.60 09/26/2017 198043 RUNNING'S SUPPLY VARIOUS R&M SUPPLIES 634.19 09/26/2017 198044 SAM'S CLUB DIRECT CONCESSION/OFFICE SUPPLIES - PRCE 1,172.25 09/26/2017 198045 SCHALLER, ODELL REFUND FOR SHELTER RESERVATION 9/17 40.00 09/26/2017 198046 SCHOOL DIST # 423 AUG CLASSES 16,084.00 09/26/2017 198047 SCOTT'S LAWN SERVICE AUG 2017 LAWN SERVICE 355.00 09/26/2017 198048 SEH 2017 ANTENNA PROJECTS 4,376.57 09/26/2017 198049 SHAW, KAREN AUG PILATES/YOGA INSTRUCTION 150.00 09/26/2017 198050 SORENSEN'S SALES & RENTALS 8' GENIE RENTAL 39.00 09/26/2017 198051 SOUTHERN WINE & SPIRITS OF MN SEPTEMBER COST OF GOODS - LIQUOR STORE 27,350.60 09/26/2017 198052 SOUTHWEST CORRIDOR TRANS COALITION 2017 DUES 100.00 09/26/2017 198053 SPRING LAKE ENGINEERING WW LIFT STATION CONTROLS 4,754.90 09/26/2017 198054 STANDARD PRINTING BUBBLE MAILERS 5.60 09/26/2017 198055 STAPLES ADVANTAGE VARIOUS OFFICE SUPPLIES 487.03 09/26/2017 198056 STEPHENS PUBLISHING FIRE PREVENTION SUPPLIES 224.96 09/26/2017 198057 STREICH TRUCKING FREIGHT COST - CREEKSIDE 490.00 09/26/2017 198058 SUN LIFE FINANCIAL SEPTEMBER DENTAL ADMIN FEES & CLAIMS 10,082.20 09/26/2017 198059 SYSCO WESTERN MN OFFICE & CONCESSION SUPPLIES - PRCE 417.51 09/26/2017 198060 TACTICAL SOLUTIONS CERTIFICATION OF RADAR UNITS/TUNING FORK 265.00 09/26/2017 198061 TAPCO POLE CAPS, HEX HEAD BOLTS 88.29 09/26/2017 198062 THOMPSON, DENEIL WINTER BOOTS REIMBURSEMENT 125.00 09/26/2017 1198063 THOMSON REUTERS -WEST IDISCOUNT PLAN CHARGES - LEGAL DEPT 36.50 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 09/11/2017 - 09/26/2017 Check/ Check Date Det Vendor Name Description Amount 09/26/2017 198064 TITAN MACHINERY GLASS, LH WINDOW & PACKAGING 392.63 09/26/2017 198065 TOWN & COUNTRY TIRE TIRE REPAIR PATCH 30.94 09/26/2017 198066 TRI COUNTY WATER FILTERS SERV, UPGRADE ERO 324.25 09/26/2017 198067 TRIPLE G COMPANIES CONTROL JOINTS, BRICK REPAIR AT HEC; LIF 6,665.00 09/26/2017 198068 TWO WAY COMMUNICATIONS INC OPEN PAGER/CLEAN SPEAKER 22.50 09/26/2017 198069 UNITED FARMERS COOP UNLEADED FUEL 32,887.02 09/26/2017 198070 UNUM LIFE INSURANCE CO OF AMERICA LIFE & LTD INS FOR OCT 2017 2,195.23 09/26/2017 198071 USA BLUE BOOK SMOKE CANDLES - 12PK - WWTP 128.00 09/26/2017 198072 VERIZON WIRELESS AUG 03 - SEPT 02'17 CELLULAR SERVICE 38.13 09/26/2017 198073 VIKING BEER SEPTEMBER COST OF GOODS - LIQUOR STORE 12,644.20 09/26/2017 198074 VIKING COCA COLA MISC BEVERAGES - PRCE & LIQUOR 779.22 09/26/2017 198075 VINOCOPIA INC SEPTEMBER COST OF GOODS - LIQUOR STORE 1,761.00 09/26/2017 198076 WACONIA TREE FARMS 655 HILLCREST EAB FUND ASH REPLACEMENT 250.00 09/26/2017 198077 WAL-MART COMMUNITY GATORADE, WATER - FIRE 82.28 09/26/2017 198078 WASTE MANAGEMENT OF WI -MN AUG 16-31 LANDFILL CHARGES 6,651.52 09/26/2017 198079 WASTEWATER SERVICES, INC 18' SLUDGESTICKS 359.09 09/26/2017 198080 WELCOME NEIGHBOR NEW RESIDENT VISITS 60.00 09/26/2017 198081 WEST CENTRAL SANITATION INC. AUGUST REFUSE HAULING SERVICE 46,565.18 09/26/2017 198082 WEST CENTRAL SHREDDING 3 CONSOLES 75.00 09/26/2017 198083 WINE COMPANY, THE SEPTEMBER COST OF GOODS - LIQUOR STORE 416.25 09/26/2017 198084 WITTE SOD FARMS INC SOD PU 8/11/17 - FOOTBALL FIELD 51.00 09/26/2017 198085 WITTE, SARA REIMB SAFETY FOOTWEAR 119.00 09/26/2017 198086 WM MUELLER & SONS STREET PATCHING & REPAIR 7,863.35 09/26/2017 198087 WRIGHT COUNTY SHERIFFS OFFICE CIVIL PAPERS SERVED, MILEAGE & SERVICE 58.00 09/26/2017 198088 ZENON ENVIRONMENTAL CORPORATION MBR REPLACEMENT - WWTP 135,504.25 09/26/2017 198089 ZEP SALES AND SERVICE CLEANING SUPPLIES 686.05 Total - Check Disbursement 1,761,365.34 Department Purchasing Card Activity - August 2017 Date Det Vendor Name Description Amount 08/04/2017 ADMIN MCDONALD'S Lunch on Friday of the CGMC Summer Conference 7.68 08/04/2017 ADMIN COUNTRY INN & SUITES Hotel Charges for CGMC Summer Conference 220.72 07/31/2017 FINANCE MINNESOTA GFOA Registration for Annual MNGFOA conference -Justin 225.00 07/31/2017 FINANCE MINNESOTA GFOA Registration for Annual MNFOA conference -Andy 225.00 08/01/2017 IT AMAZON USB cable for dispatch 15.98 08/02/2017 IT AVCOMM SOLUTIONS INC Surge Suppressors for Solar Array 139.10 08/09/2017 IT AMAZON Phone rest for Andrea 8.31 08/09/2017 IT AMAZON Headset battery for Andrea 8.99 08/09/2017 IT NEW ULM TURNVEREIN Meeting with NU IT manager 14.23 08/10/2017 IT AMAZON Projector for court room 429.99 08/10/2017 IT AMAZON DVD drive and case for Marc Sebora 82.62 08/10/2017 IT AMAZON Phone rest for Andrea 9.00 08/14/2017 IT AVTECH SOFTWARE INC Server Room Temp monitor 192.01 08/17/2017 IT BESTBUY Small TIV for mini pc setup and CC library 150.31 08/17/2017 IT AMAZON Keyboard for Pat Vanderveen 52.99 08/24/2017 IT AMAZON Keyboard for Shayla 47.00 08/23/2017 IT ULTIMOVALUE.COM Monitor stands for Shayla and Calyn 143.98 08/29/2017 IT FS SCHEDULEWERKS Will Werks arena schedule software 470.00 08/29/2017 IT AVCOMM SOLUTIONS INC Surge Suppressor for Solar Array 69.55 08/30/2017 IT AMAZON Monitor cable for Marc Sebora, court room 7.99 07/31/2017 PLANNING HUTCHINSON PIZZA RANCH department lunch - employee recognition building dept staff 45.22 08/03/2017 POLICE AAFES CAMP RIPLEY Police Training 148.91 08/24/2017 POLICE BESTBUY Video program - dissemination of data 32.15 08/07/2017 PUB WKS POLLUTION CONTROL AGENCY L6/P17-06 MPCA Construction SW Permit 400.00 08/15/2017 PUB WKS SHELL OIL Fuel for transport of snow blower to Yankton, SD 99.00 08/15/2017 PUB WKS SHELL OIL Fuel for transport of snow blower to Yankton, SD 10.00 08/25/2017 PUB WKS MINNESOTA BOOKSTORE MnDOT Construction Specifications Books 157.84 07/31/2017 PRCE TWINS BALLPARK LLC YOUTH TWINS TICKETS 452.00 08/01/2017 PRCE FIRST AID SUPPLIES ONLINE FIRST AID SUPPLIES 63.34 08/08/2017 PRCE EPIC SPORTS, INC. VOLLEYBALL JERSIES 498.77 08/08/2017 PRCE SYSCO WESTERN MN CONCESSION SUPPLIES 84.66 08/08/2017 PRCE SYSCO WESTERN MN CONCESSION PRODUCTS 509.22 08/08/2017 PRCE SYSCO WESTERN MN CONCESSION SUPPLIES 49.74 08/08/2017 PRCE SYSCO WESTERN MN CONCESSION PRODUCTS 429.35 08/08/2017 PRCE SYSCO WESTERN MN CONCESSION SUPPLIES 78.84 08/08/2017 PRCE SYSCO WESTERN MN CONCESSION PRODUCTS 1,048.07 08/08/2017 PRCE SYSCO WESTERN MN CONCESSION SUPPLIES 155.59 08/08/2017 PRCE SYSCO WESTERN MN CONCESSION PRODUCT 830.08 08/08/2017 PRCE SYSCO WESTERN MN CONCESSION PRODUCTS 1,281.14 08/08/2017 PRCE SYSCO WESTERN MN CONCESSION SUPPLIES 128.03 08/08/2017 PRCE SYSCO WESTERN MN CONCESSION PRODUCTS 989.03 08/08/2017 IPRCE ALDI ICONCESSION PRODUCTS 59.76 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 09/11/2017 - 09/26/2017 Check/ Check Date Det Vendor Name Description Amount 08/15/2017 PRCE SWIMOUTLET.COM SWIMSUITS - REFUND (138.79) 08/22/2017 PRCE WALMART.COM INDOOR PLAYGROUND EQUIPMENT 359.00 08/23/2017 PRCE WRISTCO WRISTBANDS 264.20 08/28/2017 PRCE AMAZON FOOTBALL SUPPLIES 34.31 08/30/2017 PRCE SWIMOUTLET.COM SWIMSUITS - REFUND (475.85) 08/10/2017 CREEKSIDE PAYPAL Minnesota Composting Council training registration on 8/16/17 100.00 08/18/2017 CREEKSIDE ACCOUNTINGCOACH, LLC Online accounting course for Jake Vacek 49.00 08/03/2017 LIQUOR AMAZON Entry White Board and supplies replacement 279.35 08/11/2017 LIQUOR ENVELOPES.COM gift card envelopes 38.22 08/15/2017 LIQUOR RETAIL INFORMATION TEC monthly CardDefender billing 42.75 08/08/2017 EDA SIMONSON LUMBER CO Misc. Replace nonfunctional locks for Depot building 170.98 08/09/2017 EDA HUTCH AUTO BODY Repair rear gate lift handle on van. 20.00 08/15/2017 EDA INTERNATIONAL ECON DEV COUNCIL IEDC training on workforce development strategies in Minneapol 650.00 08/16/2017 EDA SUBWAY WEST Lunch for EDA Finance Team meeting. 7.23 08/16/2017 EDA SUBWAY WEST Lunch for EDA Finance Team meeting 62.46 08/23/2017 IEDA LANDY LODGE BAR & GRILL Lunch for EDA Board meeting 114.23 Total - Purchasing Cards 11,648.28 GRAND TOTAL 1,773,013.62 HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: PUBLIC HEARING FOR TIF DISTRICT MODIFICATION Department: EDA LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Miles R. Seppelt Agenda Item Type: Presenter: Miles R. Seppelt Reviewed by Staff ❑ Public Hearing Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: To facilitate the redevelopment of the corner of Highways 7 & 15 with a new hotel it is being proposed that a "Soils Condition" Tax Increment Financing (TIF) District be established at that location. The proposed TIF District would reimburse the developer for any environmental remediation costs associated with the site. This would include removal of contaminated soils and installation of a vapor barrier under the hotel building itself. Once eligible costs are reimbursed by the TIF District it would be decertified, probably in 4-5 years. At the public hearing, staff will provide detailed information on the project, the proposed TIF District, what costs would be reimbursed and so forth. For your review, the following is included in your Council packet: 1. Tax Increment Financing District Overview 2.Tax Increment Financing District Plan 3. Resolution Establishing TIF District 4-19, a "Soils Condition" TIF District 4. Resolution Authorizing Inter-fund Loan The EDA Board has reviewed the proposed TIF District plan and is recommending its approval by the City Council. If you have any questions or need additional information, please give me a call anytime at 234-4223. BOARD ACTION REQUESTED: 1. Approval of resolution authorizing modification of the Development program for Development District No. 4 and the establishment of Tax Increment Financing District 4-19. 2. Approval of Inter-fund Loan resolution. 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. 4-19 The following summary contains an overview of the basic elements of the Tax Increment Financing Plan for Tax Increment Financing District No. 4-19. 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. 4-19 (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. 4-19 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 soils condition Parcel Numbers: 23-503-0010 Proposed The District is being created to facilitate the development of a 54 -unit hotel in Development: 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 20 years from the date of receipt of the first increment (21 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, 2039, or when the TIF Plan is satisfied. Estimated annual tax Up to $68,295 increment: 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: Site Improvements/Preparation........... Administrative Costs (up to 10%)....... PROJECT COSTS TOTAL ................ Interest................................................ PROJECT COSTS TOTAL ............. .........$820,000 .........$117,000 .........$937,000 .........$350,000 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 $937,000 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 to be determined and is to be repaid exclusively from 80% of the increment as received by the City. 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 September 2021, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 5 Year Rule Within 5 years of certification revenues derived from tax increments must be (§ 469.1763 Subd. 3) expended or obligated to be expended. Any obligations in the District made after approximately September 2022, will not be eligible for repayment from tax increments. The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required pursuant to M.S., Section 469.175, Subd. 3, are included in Exhibit A of the City resolution. Page 2 isEHLERS LEADERS IN PUBLIC FINANCE As of September 19, 2017 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. 4-19 (a soils condition district) within Development District No. 4 City of Hutchinson McLeod County State of Minnesota Public Hearing: September 26, 2017 Adopted: IS FREERS 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. 4-19 ................................. 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 ........... 2-2 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 ........................................... 2-4 Subsection 2-11. Business Subsidies ....................................... 2-5 Subsection 2-12. County Road Costs ....................................... 2-6 Subsection 2-13. Estimated Impact on Other Taxing Jurisdictions ................. 2-6 Subsection 2-14. Supporting Documentation ................................. 2-8 Subsection 2-15. Definition of Tax Increment Revenues ........................ 2-8 Subsection 2-16. Modifications to the District ................................. 2-9 Subsection 2-17. Administrative Expenses ................................... 2-9 Subsection 2-18. Limitation of Increment ................................... 2-10 Subsection 2-19. Use of Tax Increment .................................... 2-11 Subsection 2-20. Excess Increments ...................................... 2-11 Subsection 2-21. Requirements for Agreements with the Developer .............. 2-12 Subsection 2-22. Assessment Agreements ................................. 2-12 Subsection 2-23. Administration of the District ............................... 2-12 Subsection 2-24. Annual Disclosure Requirements ........................... 2-12 Subsection 2-25. Reasonable Expectations ................................. 2-12 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(s) of Development District No. 4 and the District ........................... B-1 Appendix C Description of Property to be Included in the District ............................ C-1 Appendix D Estimated Cash Flow for the District ........................................ D-1 Appendix E Minnesota Business Assistance Form ....................................... E-1 Appendix F Soils Condition Qualifications for the District .................................. F-1 Appendix G Findings Including But/For Qualifications ..................................... G-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. 4-19. For further information, a review ofthe Development Program for Development District No. 4, most recently modified September 8, 2015, is recommended. It is available from the City Administrator or Economic Development Director at the City ofHutchinson. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Development District No. 4. 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. 4-19 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. 4-19 (the "District"), a soils condition 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 ("M.S.'), 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, specifically those costs associated with correcting contaminated soils, 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 development of a 54 -unit hotel in the City. Please see Appendix A for further District information. The City has designated Hutchcobbel, LLC, formerly known as Titanium Partners, as the developer with construction anticipated to begin in the Fall of 2017. 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 - The City currently owns the parcel of property within the District. 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. 4-19 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 parcel listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The City currently owns the property to be included in the District. Subsection 2-6. Classification of the District The City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended, inclusive, finds that the District, to be established, is a soils condition district pursuant to M.S., Section 469.174, Subd. 19 as defined below: (a) "Soils condition district" means a type of tax increment financing district consisting ofa project, or portions of a project, within which the authority finds by resolution that the following conditions exist: (1) the presence of hazardous substances, pollution, or contaminants requires removal or remedial action for use; (2) the estimated cost of the proposed removal and remedial action exceeds the fair market value of the land before completion of the preparation. The requirements of clause (2) need not be satisfied, if each parcel of property in the district either satisfies the requirements of clause (2) or the estimated costs of the proposed removal or remedial action exceeds $2 per square foot for the area of the parcel. (b) The proposed removal or remediation action must be specified in a development action response plan to satisfy the requirements of paragraph (a). In meeting the statutory criteria the City relies on the following facts and findings: The District is a soils condition district consisting of one parcel that contains the presence of hazardous substances, pollution, or contaminants and requires removal or remedial action for use. The estimated cost of the proposed removal and remedial action exceeds the fair market value of the land before completion of the preparation. The fair market value is $261,900 and costs of cleanup are $273,312.50, therefore this District qualifies as a soils condition TIF District. The Minnesota Pollution Control Agency has approved the Response Action Plan (RAP) and the Contingency Construction Plan (CCP) for cleaning up and managing the various contamination on the site. 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 M.S., 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 of the District must be indicated within the TIF Plan. Pursuant to M. S., Section 469.176, Subd. I b., the duration of the District will be 20 years after receipt of the first increment by the City (a total of 21 years City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-19 2-2 of tax increment). The City expects 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 2039, or when the TIF Plan is satisfied. If increment is received in 2018, the term of the District will be to 2038. 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 Pursuant to M.S., Section 469.174, Subd. 7 andM. S., Section 469.177, Subd. ],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 2017 for taxes payable 2018. 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 Change in tax exempt status of property; Reduction or enlargement of the geographic boundaries of the district; Change due to adjustments, negotiated or court-ordered abatements; Change in the use of the property and classification; Change in state law governing class rates; or Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTO, no value will be captured and no tax increment will be payable to the City. The original local tax rate for the District will be the local tax rate for taxes payable 2018, assuming the request for certification is made before June 30, 2018. 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) $46,902 Original Estimated Net Tax Capacity (ONTO) $2,739 Estimated Captured Tax Capacity (CTC) $44,163 Original Local Tax Rate 1.54643 Pay 2017 Estimated Annual Tax Increment (CTC x Local Tax Rate) $68,295 Percent Retained by the City 100% Tax capacity includes a 2% inflation factor for the duration of the District. The tax capacity included in this chart is the estimated tax capacity of the District in year 20. The tax capacity of the District in year one is estimated to be $31,564 City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-19 2-3 Pursuant to M.S., Section 469.177, Subd. 4, the City shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and found no parcels for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Subsection 2-9. Sources of Revenue/Bonds to be Issued The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by a pay-as-you-go note. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $1,170,000 Interest $117,000 TOTAL $1,287,000 The City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $937,000. Such bonds may be 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 development of a 54 -unit hotel in the City. The City has determined that it will be necessary to provide assistance to the project(s) 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 table on the following page. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-19 2-4 USES OF TAX INCREMENT FUNDS TOTAL Site Improvements/Preparation $820,000 Administrative Costs (up to 10%) $117,000 PROJECT COST TOTAL $937,000 Interest 350 000 PROJECT AND INTEREST COSTS TOTAL $1,287,000 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in Subsection 2-9. Estimated 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. 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 in M.S., 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; City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-19 2-5 (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of $150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100. The City will comply with M.S., Sections 116J.993 to 116J.995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. The City expects the District to meet (16) above and therefore is not a business subsidy. Subsection 2-12. 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 on the next page if the "but for" test was not met: IMPACT ON TAX BASE The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the actual Pay 2017 rate. The total net capacity for the entities listed above are based on actual Pay 2017 figures. The District will be certified under the actual Pay 2018 rates and values, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 2(b): City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-19 2-6 2016/Pay 2017 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Capacity Upon Completion to Entity Total McLeod County 36,334,345 44,163 0.1215% City of Hutchinson 9,661,581 44,163 0.4571% Hutchinson ISD No. 423 15,681,525 44,163 0.2816% IMPACT ON TAX RATES Pay 2017 Percent Potential Extension Rates of Total CTC Taxes McLeod County 0.535920 34.66% 44,163 23,668 City of Hutchinson 0.719530 46.53% 44,163 31,777 Hutchinson ISD No. 423 0.254890 16.48% 44,163 11,257 Other 0.036090 2.33% 44,163 1,594 Total 1.546430 100.00% 68,295 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the actual Pay 2017 rate. The total net capacity for the entities listed above are based on actual Pay 2017 figures. The District will be certified under the actual Pay 2018 rates and values, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 2(b): City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-19 2-6 (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 $1,170,000; (2) Probable impact of the District on city provided services and ability to issue debt. An impact of the District on police protection is not expected. The City police department does track all calls for service including property -type calls and crimes. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment. The probable impact ofthe District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. The City anticipates building an access road, retaining wall and storm water feature in order to prepare the lot for development. Cost for these improvements is estimated to be $467,939. The development in the District is expected to contribute an estimated $56,700 in sanitary sewer (SAC) and water (WAC) connection fees. 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 $192,845; (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 $405,467; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 2-13. Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the City's findings: City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-19 2-7 • Environmental Clean-up Analysis: Braun Intertec, June 2016. • Minnesota Pollution Control Agency: Response Action Plan Approval, October 2016. • Soils Condition TIF District Eligibility Analysis: City staff report, 2017. • Response Action Plan and Construction Contingency Plan: Braun Intertec, August 2016. • Phase I Environmental Study, June, 2016 • Phase II Environmental Study, July, 2106 Subsection 2-14. 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 nettax capacity, but excluding any excess taxes, as computed under M.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 2-15. Modifications to the District In accordance with M.S., 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 M.S., 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 of the 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. 469, the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a soils condition 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. 19, must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the District and (2)(A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the 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 net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. The City must notify the County Auditor of any modification to the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-19 2-8 Subsection 2-16. 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, and before August 1, 2001, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. For districts for which certification was requested after July 31, 2001, no tax increment 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 in M. S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits ofM.S., Section 469.176, Subd. 3. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the City and the County Treasurer shall pay the amount deducted to the State Commissioner of Management and Budget for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 2-17. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-19 2-9 incrementfinancingdistrictpursuant toM.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 increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing 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 sitepreparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financingplan, 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 of the tax incrementfinancing district. The county auditor must enforce the provisions of this 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 September 2021 and report such actions to the County Auditor. Subsection 2-18. 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 4620 M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S., 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. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-19 2-10 Subsection 2-19. Excess Increments Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more of the 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 2-20. 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. Subsection 2-21. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2-22. Administration of the District Administration of the District will be handled by the City Administrator. Subsection 2-23. Annual Disclosure Requirements Pursuant to M. S., Section 469.175, Subds. 5, 6, and 6b the City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before August 1 of each year. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S., Section 469.175 Subd. 5 and Subd. 6, the Office of the State Auditor will direct the County Auditor to withhold the distribution of tax increment from the District. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-19 2-11 Subsection 2-24. Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon City staff awareness of the feasibility of developing the project site(s) within the District. A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 2-25. 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. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 80 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S., Section 469.1763, Subd. S. 3. Soils Condition District. Revenue derived from tax increment from a soils condition district must be used only to (1) acquire parcels on which improvements described in clause (2) will occur; (2) pay for the cost of removal or remedial action; and (3) pay for the administrative expenses of the authority allocable to the district, including the cost ofthe development action response plan underM.S., Section 469.176Subd. 4b. Subsection 2-26. Summary The City of Hutchinson is establishing the District to clean up a heavily polluted site, improve public safety, preserve and enhance the tax base, and provide employment opportunities in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113, telephone (651) 697-8500. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-19 2-12 Appendix A Project Description The proposed District is being established to assist in the costs associated with soils correction at the site located at the northeast quadrant of Highway 7 East and Main Street North (Highway 15). Hutchcobbel, LLC, formerly known as Titanium Partners, (the "Developers") from Duluth, Minnesota will be developing a 54 -room Cobblestone Inn Hotel & Suites on the site. The lot, currently owned by the City of Hutchinson, was formed from the remnants of nine parcels left over from the Hwy 7 expansion project completed by the Minnesota Department of Transportation in 2007. The city acquired the nine parcels from MNDOT and replatted them into one parcel 2.86 acres in size to facilitate the commercial redevelopment of the area. The lot itself is subject to several significant constraints that would make the lot undevelopable but for public assistance: Topography - the lot is quite steeply sloped in several areas Access - MNDOT will only allow access to the lot from Prospect Street, on the very east side of the property. Environmental - Two of the original nine lots were occupied by gasoline service stations and significant soil contamination occurred as a result. To address these obstacles to development the City is constructing a 550' access road and retaining wall along with a storm water retention feature. Upon completion the access road and retaining wall will be turned over to the developer and become a permanent part of the property. A permanent easement will be established to allow the city to maintain the ponds. The City had Phase I and Phase II Environmental studies completed which identified types of contamination on the site which will require remediation prior and during the construction process. A Remediation Action Plan ("RAP") and a Contingency Construction Plan ("CCP") has been filed with and approved by the Minnesota Pollution Control Agency for the site and proposed hotel project. The City proposes to establish a Soils Condition TIF District to offset any costs arising from soil contamination and implementation of the Response Action Plan. It is anticipated that the Developers will incur the costs of the soils correction and implementation of the RAP and CCP and be reimbursed with tax increments through a pay as you go TIF Note. Appendix A-1 Appendix B Map of Development District No. 4 and the District Appendix B-1 Tax Increment Financing Housing District No 4-19 Development District No. 4 City of Hutchinson McLeod County, Minnesota ®®R Tax Increment ®®® Financing District No. 4-19 .1111�����I i�.0 ==.1111111111111� �' _ == ■■ r == �- =� 11■ noum�e � .■....■�n::lam :■ 1= . i� :_ ._ .- -- ne :n■mnnl- -:° e111: - - -elf -n ' 0- _c �■ ii ■■illi ■■EN , Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcel listed below. Parcel Numbers Address Owner 23-503-0010 416 Prospect St. NE City of Hutchinson Appendix C-1 Appendix D Estimated Cash Flow for the District Appendix D-1 8/22/2017 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: ISD 423 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) Base Value Assumptions - Page 1 EHLERS L F�PEx 5 Lx vVeLLG ri x ax�E Titanium Partners (Preliminary Estimate) City of Hutchinson, MN 54 Unit - Cobblestone Inn Hotel & Suites Soils BASE Tax Rates TIF 4-19 Capacity) Exempt Class Rate (Exempt) 0.00% 2017 Percentage Commercial Industrial Preferred Class Rate (C/I Pref.) Tax Year Property Current First $150,000 1.50% 2.00% Market Over $150,000 2.00% 4.00% Original Commercial Industrial Class Rate (C/1) 2.00% 1 -Aug -18 Conversion Area/ Rental Housing Class Rate (Rental) 1.25% 1 -Feb -19 for District Affordable Rental Housing Class Rate (Aff. Rental) Market Value Pay 2018 Tax Capacity First $100,000 0.75% 2019 0 Over $100,000 0.25% 21 Pay 2018 Non -Homestead Residential (Non -H Res. 1 Unit) - 2039 2,739 First $500,000 1.00% Over $500,000 125% 0 Homestead Residental Class Rate (Hmstd. Res.) 2,739 First $500,000 1.00% Over $500,000 125% 154.643% Pay2017 Agricultural Non -Homestead 1.00% 154.643% Pay 2017 45.8020% Pay 2017 0.18490% Pay 2017 Note: 1. Base values are based upon a fair market value of $261,900 provided to the City by the County Assessor. Tax exempt value provided by County Assessor on 8/17/17 was $196,000. Prepared by Ehlers & Associates, Inc_ - Estimates Only N W,nnsota\Hutchinson\Housing - Economic - Redevelopment\TIF\TIF DMncis\TIF 419\Hutchinson - correcietl run 822.18 A— BASE VALUE INFORMATION (Original Tax Capacity) Building Total Percentage Tax Year Property Current Class After Land Market Market Of Value Used Original Original Tax Original After Conversion Area/ Map # PID Owner Address Market Value Value Value for District Market Value Market Value Class Tax Capacity Conversion Ong. Tax Cap. Phase 23-503-0010 City 416 Prospect St N E 261,900 0 261,900 67% 174,425 Pay 2018 Exempt - C/I Pref. 2,739 174,425 0 2,739 Note: 1. Base values are based upon a fair market value of $261,900 provided to the City by the County Assessor. Tax exempt value provided by County Assessor on 8/17/17 was $196,000. Prepared by Ehlers & Associates, Inc_ - Estimates Only N W,nnsota\Hutchinson\Housing - Economic - Redevelopment\TIF\TIF DMncis\TIF 419\Hutchinson - correcietl run 822.18 A— 8/22/2017 10 EHLERS .... .. r..Rrr Titanium Partners (Preliminary Estimate) City of Hutchinson, MN 54 Unit -Cobblestone Inn Hotel & Suites Base Value Assumptions - Paget PROJECT INFORMATION (Project Tax Capacity) WHAT IS EXCLUDED FROM Estimated Taxable Total Taxable Property Local Local Percentage Percentage Percentage Percentage First Year Market Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full Taxes Area/Phase New Use Per Sq. Ft✓Unit Per Sq. Ft./Unit Sq. Ft./Units Value Class Tax Capacity Capacity/Unit 2017 2018 2019 2020 Payable 1 Hote 54 1,615,700 C/I Pref. 31,564 585 100% 100% 100% 100% 2019 TOTAL 1,615,700 0 31,564 0 0 0 0 0 #DIVl0! Note: 1. Market values are based upon estimates provided by the County Assessor's office on 8/16/17. Final value may change according to actual construction. 1 Taxes and tax increment will vary signficantly from year to year depending upon values, rates, state law, fiscal disparities and other factors TAXCALCULATIONS WHAT IS EXCLUDED FROM Total Fiscal Local Local Fiscal State-wide Market (14,457) New Market Value- Est. Tax Disparities Tax Property Disparities Property Value Total Taxes Per New Use Capacity Tax Capacity Capacity Taxes Taxes Taxes Taxes Taxes Sq. Ft./Unit Hote 31,564 0 31,564 48,812 0 14A57 2,987 66,256 1,226.96 0 0 0 0 0 0 0 0 0 #DIVl0! 0 0 0 0 0 0 0 0 0 #DIVl0! 1 Taxes and tax increment will vary signficantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted. WHAT IS EXCLUDED FROM FOR ANALYSIS Total Property Taxes 66,256 Cument Market Value- Est. 174,425 less State-wide Taxes (14,457) New Market Value- Est. 1,615,700 less Fiscal Disp. Adj. 0 Difference less Market Value Taxes (2,987) Present Value of Tax Increment 747,467 less Base Value Taxes (4,235) Difference 593,808 Annual Gross TIF Value likely to occur without Tax Increment is less than: Prepared by Ehlers& Associates, Inc_ -Estimates Only NW,nnsota\Hutchinson\Housing-Economic-Redevelopment\TIF\TIF DMr tc TIF 419\Hutchinson- ­tedrun822.18A— 8/22/2017 Tax Increment Cashfow - Page 3 EHLERS LEADERS Ex PUBLIC PIN A CE % of Tax Tax Disparities Tax Titanium Partners (Preliminary Estimate) City of Hutchinson, MN 54 Unit - Cobblestone Inn Hotel & Suites Tax Gross Tax I Gross Tax Auditor at _ Net Tax Present I ENDING Tax Payment 100% 31,564 (2,739) - 28,825 154.643% 44,577 22,288 (80) (2,221) 19,987 19,211 0.5 2019 08/01/19 22,288 (80) (2,221) 19,987 38,046 1 2019 02/01/20 100% 32,195 (2,739) - 29,457 154.643% 45,553 22,776 (82) (2,269) 20,425 56,915 1.5 2020 08/01/20 22,776 (82) (2,269) 20,425 75,415 2 2020 02/01/21 100% 32,839 (2,739) - 30,101 154.643% 46,549 23,274 (84) (2,319) 20,871 93,948 2.5 2021 08/01/21 23,274 (84) (2,319) 20,871 112,118 3 2021 02/01/22 100% 33,496 (2,739) - 30,757 154.643% 47,564 23,782 (86) (2,370) 21,327 130,320 3.5 2022 08/01/22 23,782 (86) (2,370) 21,327 148,165 4 2022 02/01/23 100% 34,166 (2,739) - 31,427 154.643% 48,600 24,300 (87) (2,421) 21,791 166,042 4.5 2023 08/01/23 24,300 (87) (2,421) 21,791 183,568 5 2023 02/01/24 100% 34,849 (2,739) - 32,111 154.643% 49,657 24,828 (89) (2,474) 22,265 201,124 5.5 2024 08/01/24 24,828 (89) (2,474) 22,265 218,336 6 2024 02/01/25 100% 35,546 (2,739) - 32,808 154.643% 50,735 25,367 (91) (2,528) 22,748 235,576 6.5 2025 08/01/25 25,367 (91) (2,528) 22,748 252,478 7 2025 02/01/26 100% 36,257 (2,739) - 33,519 154.643% 51,834 25,917 (93) (2,582) 23,241 269,409 7.5 2026 08/01/26 25,917 (93) (2,582) 23,241 286,007 8 2026 02/01/27 100% 36,982 (2,739) - 34,244 154.643% 52,956 26,478 (95) (2,638) 23,744 302,631 8.5 2027 08/01/27 26,478 (95) (2,638) 23,744 318,930 9 2027 02/01/28 100% 37,722 (2,739) - 34,983 154.643% 54,099 27,050 (97) (2,695) 24,257 335,255 9.5 2028 08/01/28 27,050 (97) (2,695) 24,257 351,259 10 2028 02/01/29 100% 38,476 (2,739) - 35,738 154.643% 55,266 27,633 (99) (2,753) 24,780 367,288 10.5 2029 08/01/29 27,633 (99) (2,753) 24,780 383,002 11 2029 02/01/30 100% 39,246 (2,739) - 36,507 154.643% 56,456 28,228 (102) (2,813) 25,314 398,740 11.5 2030 08/01/30 28,228 (102) (2,813) 25,314 414,170 12 2030 02/01/31 100% 40,031 (2,739) - 37,292 154.643% 57,670 28,835 (104) (2,873) 25,858 429,622 12.5 2031 08/01/31 28,835 (104) (2,873) 25,858 444,771 13 2031 02/01/32 100% 40,831 (2,739) - 38,093 154.643% 58,908 29,454 (106) (2,935) 26,413 459,942 13.5 2032 08/01/32 29,454 (106) (2,935) 26,413 474,816 14 2032 02/01/33 100% 41,648 (2,739) - 38,910 154.643% 60,171 30,085 (108) (2,998) 26,979 489,710 14.5 2033 08/01/33 30,085 (108) (2,998) 26,979 504,313 15 2033 02/01/34 100% 42,481 (2,739) - 39,742 154.643% 61,459 30,729 (111) (3,062) 27,557 518,936 15.5 2034 08/01/34 30,729 (111) (3,062) 27,557 533,271 16 2034 02/01/35 100% 43,331 (2,739) - 40,592 154.643% 62,773 31,386 (113) (3,127) 28,146 547,627 16.5 2035 08/01/35 31,386 (113) (3,127) 28,146 561,701 17 2035 02/01/36 100% 44,197 (2,739) - 41,459 154.643% 64,113 32,056 (115) (3,194) 28,747 575,793 17.5 2036 08/01/36 32,056 (115) (3,194) 28,747 589,609 18 2036 02/01/37 100% 45,081 (2,739) - 42,343 154.643% 65,480 32,740 (118) (3,262) 29,360 603,443 18.5 2037 08/01/37 32,740 (118) (3,262) 29,360 617,006 19 2037 02/01/38 100% 45,983 (2,739) - 43,244 154.643% 66,874 33,437 (120) (3,332) 29,985 630,586 19.5 2038 08/01/38 33,437 (120) (3,332) 29,985 643,899 20 2038 02/01/39 100% 46,902 (2,739) - 44,164 154.643% 68,296 34,148 (123) (3,403) 30,623 657,230 20.5 2039 08/01/39 34,148 123 3,403 30,623 670,299 21 2039 02/01/40 Total 1,169,590 (4, Present Value From 08/01/2018 Present Value Rate 4.009% 747,467 (2, Prepared by Ehlers 8 Associates, Inc. - Estimates Only INWin nsota\Hutchinson\Housing - Economic - Redevelopment\TIF\TIF Distncts\TIF 419\Hutchinson - corrected run 8.22.18.xlsm Appendix E Minnesota Business Assistance Form (Minnesota Department of Employment and Economic Development) A Minnesota Business Assistance Form (MBAF) should be used to report and/or update each calendar year's activity by April 1 of the following year. Please see the Minnesota Department of Employment and Economic Development (DEED) website at http://www.deed.state.mn.us/Community/subsidies/MBAFFonn.htm for information and forms. Appendix E-1 Appendix F Soils Condition Qualifications for the District A) Parcel must have hazardous substances present. Documented in completed Phase I and Phase II environmental investigations. B) Cost of removal and remediation must exceed the fair market value of the lot. McLeod County assessor has determined the lot has a value of $261,900. Projected remediation costs are: Excavation / trucking / disposal Vapor Barrier under building Construction monitoring MPCA Services TOTAL $210,700.00 33,800.00 25,500.00 3,312.50 $273,312.50 Cost of removal and remediation ($273,312.50) exceeds the fair market value of the lot ($261,900) so this condition is met. Alternatively, cost of proposed removal and remediation exceeds $2 per square foot for the size of the lot: Lot is 2.86 acres = 124,582 square feet At $2 per square foot this works out to $249,163. Clean-up costs are projected to be at least $273,312.50 which exceeds the $2 per square foot criterion of $249,163; so this condition is met. Appendix F-1 Appendix G Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing ("TIF") Plan for TIF District No. 4-19, as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that TIF District No. 4-19 is a soils condition district as defined in M.S., Section 469.174, Subd. 19. The District consists of one parcel that contains the presence of hazardous substances, pollution, or contaminants and requires removal or remedial action for use. The estimated cost of the proposed removal and remedial action exceeds the fair market value of the land before completion of the preparation. The fair market value is $261,900 and costs of cleanup are $273,312.50, therefore this District qualifies as a soils condition TIF District. The Minnesota Pollution Control Agency has approved the Response Action Plan (RAP) and Contingency Construction Plan (CCP) for cleaning up and managing the various contamination on the site. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occursolely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of TIF District No. 4-19 permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the soil and groundwater on the site is contaminated with petroleum releases and soil vapor concentrations. The RAP and CCP includes excavation, testing, stockpiling and offsite disposal of contaminated soil and a vapor barrier and passive radon mitigation system be installed beneath the newly constructed hotel building to provide adequate control for potential vapor intrusion The City has analyzed a proforma submitted by the developer, which, in the City's opinion, demonstrates that the cost of removal or remedial action make the proposed redevelopment infeasible without the tax increment assistance provided under this plan The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: This finding is supported by the fact that the site currently has soil and groundwater contamination generated by previous owners, who no longer exist. The assessed market value has declined due to the extensive contamination on the site. The only way that the market value of the site would increase is through removal and remedial action similar to that proposed in this TIF Plan, RAP and CCP. Any such removal and remedial action would need to address the same issues that confront any proposed developer. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value ofthe site will increase without the use of tax increment financing is $0. b. If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be up to $1,441,275. Appendix G-1 The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $747,467. d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $693,808 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the TIF Plan for TIF District No. 4-19 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 TIF District No. 4-19 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. The proposed District is being established to assist in the costs associated with soils correction at the site. Hutchcobbel, LLC (the "Developers") will be developing a 54 -room Cobblestone Inn Hotel & Suites on the site. This project will result in the cleanup of a polluted site, improve public safety, preserve and enhance the tax base, and provide employment opportunities in the City. But -For Analysis Current Market Value 174,425 New Market Value - Estimate 1,615,700 Difference 1,441,275 Present Value of Tax Increment 747,467 Difference 693,808 Value Likely to Occur Without TIF is Less Than: 693,808 Appendix G-2 Council member CITY OF HUTCHINSON COUNTY OF MCLEOD STATE OF MINNESOTA introduced the following resolution and moved its adoption: RESOLUTION NO. 14784 RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 4-19 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 (the "Council") of the City of Hutchinson (the "City") has established Development District No. 4 and adopted a Development Program therefor. It has been recommended by the Hutchinson Economic Development Authority and proposed by the City that the City adopt a Modification to the Development Program for Development District No. 4 (the "Development Program Modification") and establish Tax Increment Financing District No. 4-19 (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program and Plan"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.124 to 469.133, and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act") all as reflected in the Program and Plan, and presented for the Council's consideration. 1.02. The City has investigated the facts relating to the Program and Plan and has caused the Program and Plan to be prepared. 1.03. The City has performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Program and Plan, including, but not limited to, notification of McLeod County and Independent School District No. 423 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Program and Plan by the City Planning Commission, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the "Reports") relating to the Program and Plan and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Program and Plan. The Reports include environmental studies, 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 not modifying the boundaries of Development District No. 4. Section 2. Findines for the Adoption and ADDroval of the Proaram and Plan. 2.01. The Council hereby finds that the Program and Plan, are intended and, in the judgment of this Council, the effect of such actions will be, to provide an impetus for development in the public interest and accomplish certain objectives as specified in the Program and Plan, which are hereby incorporated herein. Section 3. Findings for the Establishment of Tax Increment Financing District No. 4-19. 3.01. The Council hereby finds that the District is a "soils condition district" under Minnesota Statutes, Section 469.174, Subd. 19. 3.02. The Council further finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan, that the Program and Plan conform to the general plan for the development or redevelopment of the City as a whole; and that the Program and Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. 3.03. The Council further fmds, 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 Purpose 4.01. The adoption of the Program and Plan conforms in all respects to the requirements of the Act. The Program and Plan will help clean up a contaminated site and improve public health and welfare. The re -use of the site will create new commercial uses, provide employment opportunities, and improve the tax base. The City expressly finds that any private benefit to be received by the developer is incidental, as financial estimates of remediating the contamination in accordance with state and federal law make the proposed redevelopment infeasible without substantial public assistance from tax increment financing. That is, the tax increment assistance is necessary to produce the public benefits described above. Therefore, the City fmds that the public benefits of the Program and Plan exceed any private benefits. Section 5. ADDroval and Adoption of the Proeram and Plan. 5.01. The Program and Plan, as presented to the Council on this date, including without limitation the fmdings 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 (the "Auditor") is requested to certify the original net tax capacity of the District, as described in the TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the City is authorized and directed to forthwith transmit this request to the 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 Minnesota Statutes 469.175, Subd. 4a. The motion for the adoption of the foregoing resolution was duly seconded by Council member , and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: September 26, 2017 Gary Forcier, Mayor (Seal) ATTEST: Matt Jaunich, City Administrator EXHIBIT A RESOLUTION NO. 14784 The reasons and facts supporting the findings for the adoption of the Tax Increment Financing ("TIF") Plan for TIF District No. 4-19, as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: Finding that TIF District No. 4-19 is a soils condition district as defined in M.S., Section 469.174, Subd. 19. The District consists of one parcel that contains the presence of hazardous substances, pollution, or contaminants and requires removal or remedial action for use. The estimated cost of the proposed removal and remedial action exceeds the fair market value of the land before completion of the preparation. The fair market value is $261,900 and costs of cleanup are $273,312.50, therefore this District qualifies as a soils condition TIF District. The Minnesota Pollution Control Agency has approved the Response Action Plan (RAP) and Contingency Construction Plan (CCP) for cleaning up and managing the various contamination on the site. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of TIF District No. 4-19 permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the soil and groundwater on the site is contaminated with petroleum releases and soil vapor concentrations. The RAP and CCP includes excavation, testing, stockpiling and offsite disposal of contaminated soil and a vapor barrier and passive radon mitigation system be installed beneath the newly constructed hotel building to provide adequate control for potential vapor intrusion The City has analyzed a proforma submitted by the developer, which, in the City's opinion, demonstrates that the cost of removal or remedial action make the proposed redevelopment infeasible without the tax increment assistance provided under this plan The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: This finding is supported by the fact that the site currently has soil and groundwater contamination generated by previous owners, who no longer exist. The assessed market value has declined due to the extensive contamination on the site. The only way that the market value of the site would increase is through removal and remedial action similar to that proposed in this TIF Plan, RAP and CCP. Any such removal and remedial action would need to address the same issues that confront any proposed developer. Therefore, the City concludes as follows: a. The City's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is $0. b. If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be up to $1,441,275. c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be $747,467. d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $693,808 (the amount in clause b less the amount in clause c) without tax increment assistance. Finding that the TIF Plan for TIF District No. 4-19 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 TIF District No. 4-19 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. The proposed District is being established to assist in the costs associated with soils correction at the site. Hutchcobbel, LLC (the "Developers") will be developing a 54 -room Cobblestone Inn Hotel & Suites on the site. This project will result in the cleanup of a polluted site, improve public safety, preserve and enhance the tax base, and provide employment opportunities in the City. Council member CITY OF HUTCHINSON MCLEOD COUNTY STATE OF MINNESOTA introduced the following resolution and moved its adoption: RESOLUTION NO. 14785 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 4-19. BE IT RESOLVED by the City Council (the "Council") of the City of Hutchinson, Minnesota (the "City"), as follows: Section 1. Background. 1.01. The City has approved the establishment of Tax Increment Financing District No. 4-19 (the "TIF District") within Development District No. 4 (the "Project Area"), and has adopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project Area. 1.02. The City has determined to pay for certain costs identified in the TIF Plan consisting of site improvements/preparation, interest, and administrative costs (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from City funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. 1.04. The City intends to reimburse itself for the Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. 2.01. The City hereby authorizes the advance of up to $20.000 from the Development District 5 (SHOPKO District) fund or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself for such advances from Available Tax Increment (defined below) together with interest at the rate of 2%, which does not exceed the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan is authorized. Interest accrues on the principal amount from the date of each tranche. 2.02. Principal and interest ("Payments") on the outstanding Interfund Loan balance shall be paid annually on each December 31 (each a "Payment Date"), commencing on the first Payment Date on which the City has Available Tax Increment (defined below), or on any other dates determined by the City Administrator, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the City Administrator, generated in the preceding twelve (12) months with respect to the property within the TIF District and remitted to the City by McLeod County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, all inclusive, as amended. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes, or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre -payable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the City in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. Before the latest decertification of any tax increment financing district from which the interfund loan is to be repaid, the City may modify or amend the terms of this Interfund Loan, in writing, by resolution of the City Council, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. 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: September 26, 2017 Gary Forcier, Mayor (Seal) ATTEST: Matt Jaunich, City Administrator HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Review of School Road Townhome Access/Driveway Configuration Department: PW/Eng LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ Communications, Requests Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Following up on the discussion regarding this matter at previous City Council meetings, please see and consider the below discussion points regarding the evolution and potential resolution of this matter: • Due to the S-curve and driver behaviors along School Road, sightlines to driveways in this area have always been less than ideal. Please note that the after configuration (see attached drawing) eliminates the three northerly access points nearest to the north curve. • The implementation of a multi-use trail on this side of School Road introduces the desire to minimize the number of driveways crossing this facility due to safety concerns. • The on-street parking for this section of the School Road corridor will be on the townhome side of the street. • City staff met with townhome association leadership and management on several occasions to review project details such as the reduction of access points, trail location, landscaping, etc. • Townhome association leadership and management communicated that the reduction of access points and proposed driveway configuration was acceptable. • The comparison of the before and after configurations shows that distances from the garages to the driveway area bituminous edges are consistent and don't appear to arrive at a shorter dimensions in comparison to other areas. • City staff believes that the northerly three pairs of townhomes with their dedicated driveways may have previously backed out of their garages onto School Road to achieve an egress movement. • The existing and proposed driveway configuration is already up to the public right-of-way line (contrary to current City ordinance setback requirements) with minimal green space area between their pavement edge and the new trail (typically about 7') for the proposed landscaping improvements. • City staff was able to perform all of the ingress/egress vehicle movements (using a full-size truck) to/from the three northerly townhome pairs' driveways. • To better improve the egress movement from the #320/#322 garages, the northerly edge of their driveway could be extended to the north about 5' with an estimated cost of $8,500. • To install an additional access point near the northerly end of the townhome development, the current pavement, curbing and trail could be reconfigured with an estimated cost of $16,800. BOARD ACTION REQUESTED: No Formal Action Required - City Council Input Requested Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: BEFORE p320 A }322 �p52-#32 n n #354 NJ52 n p342 330 #325 NJ84 N382 NJ80 #3]2 Y3]0 N]fi8 #366 pJ64 NJ62 p36O #350 pJ4B NJ46 N36L � NJ40 # 1 1 O O O O AFTER 2 #380 I I 38 # I � I p360 I _ #354 NJ52 LJ_ #Jae .-13 _ #342 #140 p384 Y3T2 #5]0 YSfiB p366 n NJ6L 1362 r" AJLL 32' 33. 34 k 1771 o , / O O #320 p33D _n#30p32fi }32 L p322 #328 — / O O O O DRAWN BY: %X DESIGNED BY. XX NO. BY DAIS REVISIONS I NEARBY CERTIFY TI Ai 8115 PLAN WAS PREPARED BY NE OR UNDER NY DIRECT SURERVISION AND THAT I AAI A DULY UCENSED PROFESSIONAL ENGINEER UNDER THE LAWS OF TIE STATE OF MINNESOTA c ry J l 4® SHEET xx /00F/T APPROVED BY: KE SIGN—RE: DATE: —X UC. NO. 42907 SCALE FEET "" PRINTED NAME: KENT EXNER HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Discussion Regarding Possible Electronic Sign In Library Square Department: Planning LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Betsy Price Reviewed by Staff ❑ Communications, Requests Time Requested (Minutes): 15 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Betsy Price approached myself and Dolf Moon to discuss signage options for Music In the Park and other events held in Library Square. She noted that Riversong and Historic Hutchinson are now in charge of Music In the Park and they would like to look at signage options. Staff understands the sign would be paid for with private funds. Initial discussion was regarding a permanent sign that the face could be changed on to advertise different events. Staff had concerns about the aesthetics of something like this and concerns whether the message on the sign would be up to date. Discussion then turned to the possibility of an electronic sign that would be done in a manner to be very tasteful and in the same design as the black downtown wayfinding signs that were installed in 2016. Staff felt a well done electronic sign may be better than banner signs, which are done presently, or a sign with an interchangeable face. Staff understands the sign would only be used to advertise events in library square and possibly other community events the City Council would OK. The idea is that the sign wouldn't be a detraction to Library Square but rather something that highlighted events going on there. It should be noted that electronic signs for businesses are prohibited downtown for businesses. However, Staff feels that a Community Sign that is electronic could be put up because it isn't advertising one particular business but rather library square events and other possible community events as directed by the City Council. Staff isn't recommending the sign be installed per se, just that if the Council wanted to do this it could work legally. Staff would also like to point out that in a perfect world there would be no signs in Library Square. However, currently there are banner signs that are used to advertise Music in the Park and other events. Staff feels that a tastefully done electronic sign could look better than banner signs that tend to not look good and a sign with a changeable face. In the end it is up to the City Council to determine if they feel an electronic sign is appropriate for Library Square. BOARD ACTION REQUESTED: Determine if an electronic sign is appropriate in Library Square. If more information is needed this item could be tabled for further discussion. 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: 48" x 80" overall steel frame to match style of depot signs 29" x 63" cabinet size for led message center 24" x 60" Watchfire 10mm full color message center panel Includes ignite software and broadband connection to update sign 15 amp power required per sign face HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Residential Leaf Vacuum Service Department: PW/Eng LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: John Olson Agenda Item Type: Presenter: John Olson Reviewed by Staff ❑ Communications, Requests Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Fall is here and it's time to get ready for the residential leaf vacuum service. On average, about 270 loads (650 tons) of leaves are picked up during a season. These leaves are processed at Creekside and represent a significant portion of their compost material. This year, service will begin on Tuesday October 10 and will continue until November 20, unless weather conditions do not allow further service. Leaves are picked up the day following regular garbage service. For example, if a resident's regular garbage day is on Tuesday, the leaf vacuums will be by on Wednesday. The Friday garbage route will see the leaf vacuums come by on Monday. In order to be as efficient as possible, leaf vacuums often operate in other route areas, but each area will be serviced once a week on the day following regular garbage service. Residents are asked to put leaves in the gutter the day before the vacuums come by. This will keep curbs clean and allow storm sewer drains to remain operable. Leaf vacuum units are large, heavy pieces of equipment. We are always concerned about public safety during their operation, so we encourage people and their pets to stay well away from leaf vacuums as they do their work. Residents with questions can visit the City's website and lookup Leaf Vacuum Service under miscellaneous City services. They can also use the email link on the Leaf Vacuum Service web page, or call 234.4219. BOARD ACTION REQUESTED: None. Informational only. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: City of Hutchinson - Residential Leaf Vacuum Service 2017 SEASON PRESS RELEASE Residential leaf vacuum service is scheduled to begin on Tuesday, October 10 and will end on Monday, November 20 or when snow arrives. Leaves will be vacuumed from your street the day after your garbage is picked up. Please DO rake leaves into neat rows along the edge of the curb. Residential services are provided by tractor drawn vacuums, so it's necessary to keep leaves back from corners to allow for turning. Please DO NOT rake leaves into the street until the day of your garbage service. LEAVES ONLY — To make sure the equipment stays running, please don't rake anything other than leaves onto street curbs. If items other than leaves are placed, service will not be provided until the items are removed. Vacuums may be in your area at other times, but will return on the designated day. For more information: Visit the City's website: http://www.ci.hutchinson.mn.us/leafvacuumserv.html Contact Public Works at (320) 234-4219, or email inform ation(d)-ci.hutch inson.mn.us. C City of Hutchinson Public Works Department Residential Leaf Vacuum Service Introduction The City of Hutchinson (City) believes it is in the best interest of the City's residents to perform residential leaf vacuum service in the fall of each year. Important components of the residential leaf vacuum service include regularly scheduled service on the day following regular garbage pickup, maintenance of leaf vacuum equipment, and disposing of leaves collected at Creekside Soils. The City will perform residential leaf vacuum service in a safe and cost effective manner, keeping in mind safety, budget, personnel and environmental concerns. The City will generally use City employees and equipment for residential leaf vacuum services. Priority This service is classified as a Basic Service. Operations requiring necessary resources for Essential or Critical Services may result in deferral of this service. This document applies to City Ends Statements 5.1.1 and 5.1.4 as it applies to Public Works operations. Application This document is used as a guideline for residential leaf vacuum service. This document is intended to describe issues relating to this service that are of common concern to various stakeholders. This service applies to all residential properties within the City that have individual, residential garbage service. Industries, commercial properties or residential properties that do not receive individual residential garbage services are not eligible for this service. This service will be provided to individual residential garbage service customers, regardless of whether their property abuts a City, County, or State roadway or are on roadways under the jurisdiction of another government or private agency. Residents on roadways that are under construction will not be served until the base course of bituminous paving is completed. No service will be provided to unpaved roadways. Residents on private roadways not under the jurisdiction of a public agency may choose to be included or to opt out of the service, without compensation. Operators will provide service daily on the day after normal individual residential garbage service is provided. For example, if a resident's garbage is picked up on Monday, operators will be by to vacuum leaves on Tuesday. If a resident's garbage is picked up on Friday, operators will be by on Monday to vacuum leaves. Operators are regularly dispatched to areas outside the normal schedule, but each service area will be done the day following normal individual residential garbage service whenever possible. Other services may be ordered by the Public Works Manager, and there may be times when operators are dispatched to collect leaves from various publicly owned facilities. In order to ensure timely service to residents, operations at publicly owned facilities may be done during overnight or early morning hours. As part of normal street cleaning operations, leaf vacuum service may be used in areas that experience significant on -street parking, such as the downtown area, and may be provided during overnight or early morning hours. The Public Works Manager may authorize service to properties, other than those eligible, only if appropriate maintenance agreements are in place. Routine Leaf Vacuum Service A. Leaf Vacuums — Three leaf vacuums and one or more street sweepers are operated when providing this service. Operators are instructed in the safe operation of the machinery and the appropriate operator -level maintenance required for safe and efficient use of the machinery. Maintenance of the leaf removal equipment will be a high priority during the leaf removal season, as all equipment is needed to maintain adequate service levels. B. Tractors — Three agricultural tractors are used to tow leaf vacuums. At least two tractors will be available every working day during the leaf removal season. Tractors for this service will generally be leased for the season, but City -owned tractors may also be dispatched for this service. Use of City -owned tractors, if available, will generally be limited to situations when an appropriate number of leased tractors are not available for use. 2 C. Schedule — The City will provide leaf vacuum service daily, rain or shine, on each work day between the beginning of the season and for six consecutive weeks, with the last day of service being the Monday of the week of Thanksgiving (for the Friday garbage service of the week ending the week prior to Thanksgiving). Services will generally be provided between the hours of 7:00 a.m. to 6:00 p.m. Only during severe weather or snow events will service cease. Leaf vacuums may be dispatched at any time, at the Public Works Manager's discretion, for general street cleaning during periods when residential service is not scheduled (e.g., in September or early October). If service is delayed because of necessary work related to Essential or Critical Services, normal operations will generally be resumed on the Tuesday (Monday garbage route) following the delay. D. Problem Areas — Operators shall exercise discretion to avoid properties or areas where, in their opinion, the provision of service would be detrimental to the safety of the public or operators, or be potentially hazardous to machinery. Potential problems may include vehicles parked in a manner that does not allow the vacuum to access the curb and gutter, leaves that are not located within the gutter next to the curb, windrows containing deleterious material, or any other identified problem that could negatively affect the provision of service. When problem areas are identified, operators will report those areas to the Public Works Manager. The Public Works Manager will attempt to contact property owners to rectify any problems, with the goal of restoring service to the property or area the following week. If conditions negatively affecting provision of residential leaf vacuum service persist, operators will not provide service for identified properties or areas. Property owners may be charged separately for other services required to remove any leaves from the street surface. E. Disposal — Leaves will be disposed of at Creekside in areas designated by Creekside personnel. Areas identified for disposal will be of appropriate size to allow leaves to be dumped from trailers using the self-contained dumping apparatus integral to the leaf vacuum unit. Areas designated for dumping will also allow for adequate space so operators may inspect and clean equipment, as necessary, each time leaves are dumped. All operators will inspect their leaf vacuum and tractor at the dump site prior to returning to service the area they left. F. Routes — Routes will be established by the Public Works Manager. Routes will be devised to ensure all residential areas that receive regular garbage pickup on a given day are provided service the following day to the extent practicable. From time to time, the Public Works Manager may make minor modifications to routes to ensure efficient use of available resources. Residential properties will be serviced on their assigned days. Operators will regularly be dispatched to service properties outside of the daily service area, in order to catch up on an area that was missed the day before or to begin operations on the following day's route. However, all residential properties will be serviced on the day of their route, whenever possible. The Public Works Manager may dispatch leaf vacuum(s) to any public facility at any time it is deemed necessary, provided daily residential service requirements are met and providing the service is in the best interest of the City. G. End -of -Route Procedures — Once routes have been completed, operators will perform cleaning, routine maintenance and inspections of all equipment to determine if there are any obvious maintenance issues. Once equipment has been determined to be ready for the following day's routes, operators will be assigned to other work, as directed. Operators will inform supervisors of their availability for other work once end -of -route procedures are completed. Training The City will provide operators with training opportunities on a regular basis to ensure operators are aware of best practices for operation, inspection, maintenance and proficient use of equipment necessary for providing this service. Weather Conditions Leaf vacuum operations are generally conducted in all weather conditions do not endanger the safety of the public, employees or equipment. Weather conditions that could delay operations may include prolonged temperatures below 20° F., flooding, heavy rain, snow and severe wind. Documentation The City will document services performed under this policy. These records will not identify specific activities conducted at specific properties, but will identify the general location and nature of services performed. Areas serviced will generally be documented by indicating a route was completed. Operators are encouraged to notate and/or identify any specific, unique situations on route maps and report them to the Public Works Manager. Operators will report, as soon as possible, any issue that may potentially result in the inability to complete a scheduled route to the Public Works Manager. Operators will note whether the issue is of routine nature, relates to equipment malfunctions, or is a potential safety issue. 11 October 2017 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 November 2017 S M T W T F S 1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 28 29 30 1 2 3 4 5 6 HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Discussion on Council Chamber Decor and the Preservation of City Plats Department: Administration LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑ Communications, Requests Time Requested (Minutes): 1 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: Council Member Christensen has asked that this be placed on the agenda for discussion purposes. Mary would like to discuss with the rest of the council the option of historically preserving the two city plat maps that are on the west wall of the Council Chambers. She would also like to have a discussion on the long-term placement of the two flags currently hanging on the walls within the chambers. I've provided more background on the flags down below. In regards to the Korean Flag hanging on the west wall, our records show that on July 22, 2003, the Hutchinson Legion and VFW designated the City as a commemorative city for the Korean War Veterans and presented us with that flag. In regards to the World War II Flag hanging on the north wall, we were unable to find anything in our records pertaining to how that flag ended up in our hands. It is presumed that it was a donation in or around 1995 to recognize those residents of Hutchinson who served in World War II. BOARD ACTION REQUESTED: No action at this time. Discussion only. Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Resolution 14773 Approving the HRA Preliminary 2018 Tax Levy Department: Finance LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ New Business Time Requested (Minutes): 3 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: In accordance with State Statute, the City must certify a preliminary 2018 tax levy to the County by September 30, 2017. This tax levy will fund the 2018 operations of the HRA. The HRA board is requesting a 2018 tax levy in the amount of $171,364, which represents a 3% increase over the 2017 levy of $166,373. This levy request is lower the HRA's 2018 statutory levy limit of $172,653. The HRA's statutory levy limit is based on .0185% of the City's 2017 Estimated Market Value of $933,259,500. BOARD ACTION REQUESTED: Approve the HRA preliminary 2018 tax levy of $171,364 Fiscal Impact: Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON RESOLUTION NO. 14773 CITY OF HUTCHINSON, MINNESOTA SETTING 2018 PRELIMINARY TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON REDEVELOPMENT AUTHORITY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA WHEREAS the City of Hutchinson hereby establishes a special taxing district for the purpose of Hutchinson Housing Redevelopment Authority (Hutchinson HRA) and the financing of such district as authorized under Minn. Statute 469.033. WHEREAS the Minn Stat 469.033 authorizes a levy to be set for an HRA special tax of .000185 times estimated market value of the city. AND for 2018 the authorization yields: .000185 x $933,259,500 = $172,653; the HRA Board requests for 2018 a levy of $171,364. THAT the City of Hutchinson hereby establishes a preliminary tax levy for the above named special taxing district of: $171,364 Adopted by the City Council this 26th day of September 2017. Gary T. Forcier Mayor ATTESTED: Matthew Jaunich City Administrator Memo To: Andy Reid, Finance Director Fromm Jean Ward, HRA Executive Director (4114-ri " Date: 6/21/2017 Re: Tax Levy Request for 2018 HRA Board Approved City Center Budget Attached please find the 2018 City Center HRA Budget approved at the June 20, 2017 HRA board meeting. The HRA respectfully requests a tax levy of $171,364 an increase of 3% over last year. Sheetl Page 2 2018 Budget 2017 Budget REVENUES Tax Levy 3% increase 171,364 166373 MHFA Rehab Loan Program Admin 2 6000 3000 MHFA CFUF/FUF Loan Program Admi 4750 3000 2504 CRV/Impact Rehab Admin Fee TIF match 6x540 3,000 CRV Value Gap TIF Rehab loan admin 6 loans x $1,000 6000 5000 HRA Rehab loan program 6 loans x $600 3600 Capital Fund Administrative Fee 8,000 7000 SCDP Rehab Admin 2600 12950 Greater Mn Housing Fund Gap Admin SCOP Gap Loan Funding Admin School Construction Program house sale HRA Downpayment Assistance Interest Income 1344 800 Lead/Asbestos fees Energy Audit fees Note Receivables Bad Debt Other Income 500 Total Revenue $204,908.00 $198,123.00 2018 Maximum levy allowed 172,653 Page 2 Sheetl 2018 HRA City Center Budget HRA Board approved 612012017 STAFFING HRA Executive Director 0.51FTE allocated to City Center HRA Housing Coordinator 40 hrslweek Salaries: 2018 2017 Total Salaries 121222 114859 Benefits: FICA 7.65% $ 9,273.48 $ 8,786.71 HRLARP Comp to Pera 7.50°% $ 9,091.65 $ 8,614.43 INSURANCE ALLOCATION Medical Increase10°% 26799 26148 Total Benefits $ 45,164 $ 43,549.14 Total Salaries and Benfts $ 166,386 $ 158,408.14 Workers Compensation Insurance 1915 1915 Benefit Administration fees 300 300 TOTAL SALARIES, BENEFITS & WORKERS COMP $ 168,601.13 $ 160,623.14 OTHER EXPENSES: Accounting/Audit 3500 1010 Credit Report 150 150 Office Supplies & Postage 2400 2400 Telephone 500 500 Seminars & Dues 3000 3000 Travel & Lodging 2000 2000 Lot fees (mowing & stormwater fees). 1600 1300 Mileage 1200 1200 Miscellaneous 1850 1850 Lead/Asbestos fees now built into project cost Inspection Fees 500X2 1000 6000 Energy Audit fees Energy Saver Rebate Computer fees 3000 3040 Office Equipment/Depreciation 0 Consultant Fees 5,000 School Construction Program Program Fee 550 Project fund " Neighborhood revitallb 10,147 12739.86 Marketing 1 500 Recording fees 500 Copy charge 960 800 Sub -total other expenses $ 36,307.00 $ 37,499.86 TOTAL CITY CENTER OFFICE EXPENSES $ 204,908 $ 198,123.00 Page 1 HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Resolution 14774 Approving the EDA Preliminary 2018 Tax Levy Department: Finance LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ New Business Time Requested (Minutes): 3 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: In accordance with State Statute, the City must certify a preliminary 2018 tax levy to the County by September 30, 2017. This tax levy will fund the 2018 operations of the EDA. The EDA's 2018 statutory levy limit is $169,200 which is the levy amount the EDA is requesting. This levy represents a 3.8% increase from the 2017 levy of $163,046. The EDA's statutory levy limit is based on .01813% of the City's 2017 Estimated Market Value of $933,259,500. BOARD ACTION REQUESTED: Approve the EDA preliminary 2018 tax levy of $169,200. Fiscal Impact: Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON RESOLUTION NO. 14774 CITY OF HUTCHINSON, MINNESOTA SETTING 2018 PRELIMINARY TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA WHEREAS the City of Hutchinson hereby establishes a special taxing district for the purpose of Hutchinson Economic Development Authority (Hutchinson EDA) and the financing of such district as authorized under Minn. Statute 469.107. WHEREAS the Minn Stat 469.107 authorizes a levy to be set for an EDA special tax of .0001813 times estimated market value of the city. AND for 2018 the authorization yields- .0001813 x $933,259,500 = $169,200; the EDA Board requests for 2018 a levy of $169,200. THAT the City of Hutchinson hereby establishes a preliminary tax levy for the above named special taxing district of: $169,200 Adopted by the City Council this 26th day of September 2017. Gary T. Forcier Mayor ATTESTED: Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Resolution 14775 Approving the General Fund & Debt Service Fund Preliminary 2018 Tax Levies Department: Finance LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ New Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: In accordance with State Statute, the City must certify a preliminary 2018 tax levy to McLeod County by September 30th, for the General Fund and Debt Service Funds. We will be setting the final tax levy in December. As a reminder, the final levy cannot increase from the Preliminary levy, however it can be reduced. At the budget workshop on September 12th, Matt Jaunich reviewed the preliminary General Fund budget and Debt levy. The total tax levy was projected to increase 2.1 %, consisting of a 3% General fund levy increase and no increase to the Debt levy. The General fund budget had a deficit of $96,267 with the 3% levy increase. Since that meeting we received news that Medica would match an offer by Health Partners, equating to a 13% increase. Revising the budget from the 15% estimated increase to 13% results in a savings $18,162. The budget we reviewed at the workshop did not include an inflationary shift in the market rates for the compensation plan. The budget has since been revised to include a 1 % inflationary shift, resulting in additional expense of $12,909. Combined with the savings from the lower health premiums, our total expense has decreased $5,254 since the budget workshop. A 3% general fund levy increase results in a deficit of $92,074 while a 4.93% levy increase would balance the budget. The Debt levy remains flat since we are at the current target levy of $2,200,000 per the Debt Management plan. The revised debt plan calls for a $400,000 per year increase in funding for street improvements but the debt tax levy will not be affected until 2023, at which point moderate increases will be needed to reach the new target levy of $2.6M. Two resolutions are attached based on the council's desire for a preliminary levy. The first resolution contains a 3% General fund levy increase, consistent with the budget workshop. The second resolution contains a 4.93% General fund levy increase in order to balance the budget. Also attached is the Tax Levy Impact worksheet showing the impact each potential levy increase could have on the median homeowner. BOARD ACTION REQUESTED: Approve the 2018 preliminary tax levy increase of 2.1% (3% General Fund and 0% Debt levy), or a 3.4% tax levy increase (4.93% General Fund and 0% Debt levy). Fiscal Impact: Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Preliminary Tax Levy - City of Hutchinson Homestead Property: PRELIMINARY 2018 PRELIMINARY 2018 Adopted 2017 Option #1 Option #2 Option #3 Option #4 General Fund levy: 4.0% 0.0% 2.0% 3.0% 4.93% Debt levy: 0.0% 0.0% 0.0% 0.0% 0.0% TAX CAPACITY $ 9,661,581 $ 10,014,262 $ 10,014,262 $ 10,014,262 $ 10,014,262 % Change 3.7% 3.7% 3.7% 3.7% Tax Levy - General Fund 4,751,796 4,751,796 4,846,832 4,894,350 4,986,424 Tax Levy - Debt Service 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 TOTAL LEVY $ 6,951,796 $ 6,951,796 $ 7,046,832 $ 7,094,350 $ 7,186,424 Total Levy % Increase over 2017 $ 1,219 0.0% 1.4% 2.1% 3.4% Tax Rate 71.953% 69.419% 70.368% 70.842% 71.762% Change in Tax Rate -2.534% -1.585% -1.111% -0.191% Homestead Property: PRELIMINARY 2018 Adopted 2017 Option #1 Option #2 Option #3 Option #4 Median Home Value $ 146,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 Homestead Exclusion (24,100) (23,700) (23,700) (23,700) (23,700) Net Taxable Value $ 121,900 $ 126,300 $ 126,300 $ 126,300 $ 126,300 % Change 3.6% 3.6% 3.6% 3.6% Tax Capacity (1%) $ 1,219 $ 1,263 $ 1,263 $ 1,263 $ 1,263 Estimated City Tax 877 877 889 895 906 Change from 2017 $ 1 $ 13 $ 19 $ 29 % Change 0.1% 1.4% 2.1% 3.3% CITY OF HUTCHINSON RESOLUTION NO. 14775 2018 PRELIMINARY TAX LEVY FOR CITY OF HUTCHINSON, MINNESOTA BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA THAT A NET tax levy for the City of Hutchinson for 2018 is hereby set in the amount of: $7,094,350 The detail for this levy is as follows: LEVY Amt. General Fund 4,894,350 Improvement Bonds 2006 306,771 2008 117,798 2009 158,180 2010 79,684 2011 159,394 2012 132,506 2013 140,938 2014 132,086 2015 152,277 2016 507,540 2017 312,826 Total Improvement Bonds $ 2,200,000 TOTAL TAX LEVY $ 7,094,350 Adopted by the City Council this 26th day of September 2017. Gary T. Forcier Mayor /_11a921011192101 Matthew Jaunich City Administrator CITY OF HUTCHINSON RESOLUTION NO. 14775 2018 PRELIMINARY TAX LEVY FOR CITY OF HUTCHINSON, MINNESOTA BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA THAT A NET tax levy for the City of Hutchinson for 2018 is hereby set in the amount of: $7,186,424 The detail for this levy is as follows: LEVY Amt. General Fund 4,986,424 Improvement Bonds 2006 306,771 2008 117,798 2009 158,180 2010 79,684 2011 159,394 2012 132,506 2013 140,938 2014 132,086 2015 152,277 2016 507,540 2017 312,826 Total Improvement Bonds $ 2,200,000 TOTAL TAX LEVY $ 7,186,424 Adopted by the City Council this 26th day of September 2017. Gary T. Forcier Mayor /_11a921011192101 Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL c`=y-f 0' a_ � Request for Board Action 79 M-W Agenda Item: Approve Setting the Truth-in-Taxation Hearing Date and Time Department: Administration LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑ New Business Time Requested (Minutes): 1 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: As we certify our preliminary tax levies to the County, we must also notify the County (and the Public) of the date that we will hold our Truth-in-Taxation Hearing. This is a public meeting of which the tax levy and budget will be discussed and a forum will be given to allow the public to comment on the proposed levy/budget. This public hearing is required by state statute. The public meeting requirements are as follows: 1. The Council must set the date, time and place of the meeting at which a final budget and tax levy will be discussed. 2. Meeting must be held after November 24 and before December 28 and at or after 6:00 p.m. 3. The public will be allowed to speak at the meeting. 4. We must have a phone number available where the public can call to ask questions on the budget along with an address available where public comments can be received by mail. Generally speaking we have held our Truth-in-Taxation Hearing on the first Tuesday in December. That first Tuesday is December 5 this year. The alternative would be Thursday, December 7. The County has scheduled their public hearing for December 7 this year. BOARD ACTION REQUESTED: Approve setting the Truth-in-Taxation Hearing date and time for Tuesday, December 5 at 6:00 p.m. in the Council Chambers at City Center. Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Authorizing Resolution 14781 Declaring Intent on Bonding Reimbursement Department: Finance LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Andy Reid Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: On an annual basis, the City of Hutchinson administers street and capital improvement projects that are financed by G.O. Improvement Bonds. The City's current business practice is to issue bonds in the fall after the projects have been bid and awarded to contractors and the contract costs are determined. The biggest benefit of this practice is that the City bonding amount is more accurate than if we bonded earlier in the year based on engineering estimates. The downfall to waiting later in the year to bond for the projects is that the City must cash flow the project costs during the summer/fall and reimburse itself when the bond proceeds are received. This process has worked well for the City and there are no current issues with continuing this practice in the future. Due to our current practice of reimbursing ourself with the bond proceeds, IRS regulations require the City Council to approve a resolution declaring the City's intent to reimburse itself with the bond proceeds. Please find attached, Resolution 14781 "Declaring the Official Intent of the City of Hutchinson to Reimburse Certain Expenditures from the Proceeds of Bonds to be issued by the City". BOARD ACTION REQUESTED: Approval of Resolution 14781. Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON, MINNESOTA RESOLUTION NO. _14781 DECLARING THE OFFICIAL INTENT OF THE CITY OF HUTCHINSON TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the "Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met; and WHEREAS, the City expects to incur certain expenditures that may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a tax-exempt bond; WHEREAS, the City has determined to make this declaration of official intent ("Declaration") to reimburse certain costs from proceeds of bonds in accordance with the Reimbursement Regulations. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF HUTCHINSON AS FOLLOWS: 1. The City proposes to undertake the public street improvements, as detailed in the City's 2017 Capital Improvement Plan (the "Project"). 2. The City reasonably expects to reimburse the expenditures made for certain costs of the Project and Capital Equipment from the proceeds of bonds to be sold in October 2017 and settled in November 2017, in an estimated maximum principal amount of $2,535,000. All reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations. 3. This Declaration has been made not later than 60 days after payment of any original expenditure to be subject to a reimbursement allocation with respect to the proceeds of bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of $100,000 or 5 percent of the proceeds of an issue; or (c) "preliminary expenditures" up to an amount not in excess of 20 percent of the aggregate issue price of the issue or issues that finance or are reasonably expected by the City to finance the project for which the preliminary expenditures were incurred. The term "preliminary expenditures" includes architectural, engineering, surveying, bond issuance, and similar costs that are incurred prior to commencement of acquisition, construction or rehabilitation of a project, other than land acquisition, site preparation, and similar costs incident to commencement of construction. 4. This Declaration is an expression of the reasonable expectations of the City based on the facts and circumstances known to the City as of the date hereof. The anticipated original expenditures for the Project and the principal amount of the bonds described in paragraph 2 are consistent with the City's budgetary and financial circumstances. No sources other than proceeds of bonds to be issued by the City are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside pursuant to the City's budget or financial policies to pay such Project expenditures. This Declaration is intended to constitute a declaration of official intent for purposes of the Reimbursement Regulations. Approved by the Hutchinson City Council this —26th day of _September, 2017. CITY OF HUTCHINSON, MINNESOTA Mayor — Gary Forcier Attest: City Administrator — Matt Jaunich HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Replacement of all HFD Self Contained Breathing Apparatus Department: Fire LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Mike Schumann Agenda Item Type: Presenter: Mike Schumann Reviewed by Staff ❑ New Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The Hutchinson Fire Department (HFD) currently uses "Scott" brand Self Contained Breathing Apparatus (SCBA) that were originally purchased and put into service in January 2003. This type of equipment endures extremely use and harsh environments with a typical service life of 12-15 years. From 2011-2013 we completed a high pressure upgrade to all of our existing SCBA's to extend their service life and to better comply with ever changing NFPA requirements. This upgrade was needed and has served its purpose. We formed an internal committee to research all SCBA market options and this group has heavily tested and evaluated three different manufacturers. The results of this testing has led us to write a specification that we are now asking to be released for open bid so that we can move forward with this project. This project has been planned for several years and was put on the CIP as a split budget item with half of the total cost falling into the 2017 budget year and the other half falling into the 2018 budget year. A portion of the project cost will be paid by contributions from the annual rural fire assessments over the course of several years. BOARD ACTION REQUESTED: Approval to release specifications to receive bids to replace all Self Contained Breathing Apparatus (SCBA) for the Hutchinson Fire Department. Fiscal Impact: $ 135,000.00 Funding Source: CIP FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 135,000.00 Total City Cost: Funding Source: Remaining Cost: $ 135,000.00 Funding Source: CIP Hutchinson Fire Department Self -Contained Breathing Apparatus Requirements for open bid: All eligible bids must be submitted to the Hutchinson Fire Department by 5pm Friday October 6, 2017. The purpose of this specification is to provide NFPA 1981 and 1982, 2013 Edition compliant and certified, for an open -circuit self-contained breathing apparatus (SCBA) and options. The SCBA shall consist of the following major sub -assemblies: o Quantity 20 SCBA carrier harness assemblies o Quantity 35 SCBA facepiece assemblies o Quantity 40 SCBA cylinder assemblies Facepiece and Heads Up Display (HUD) o Full facepiece assembly available in multiple sizes to fit all users o Facepiece shall have a head harness constructed of a flame/heat resistant assembly with 4 point adjustability o Facepiece shall provide means to display user with visual indicators for Heads Up Display (HUD) providing user with remaining cylinder air volume and/or additional pertinent information o Facepiece shall be capable of water submersion for cleaning and disinfecting o Removable, facepiece-mounted, positive pressure breathing regulator with bypass/air- saving capabilities Carrier and Harness Cylinders o Harness and carrier assembly for supporting the equipment on the body of the user o Shoulder strap mounted, remote gauge indicating cylinder pressure o Rapid intervention crew/universal air connection (RIC/UAC) o Integrated Personal Alert Safety Systems (PASS) assembly o Voice Amplification Device o Shoulder harness and waist pad shall be fully adjustable enhancing user ergonomics o Carrier shall contain a top handle suitable for firefighter rescue o Cylinders with 4500 psig operating pressure must be available in 45 minute duration o Cylinders shall be constructed of an aluminum inner liner/shell that is fully wound/wrapped with high-strength carbon fiber, fiberglass and epoxy resin in accordance with DOT specifications o Cylinder and valve assembly with quick connection for storing pressurized breathing air o Cylinder shall contain cylinder valve that shall incorporate pressure gauge to indicate cylinder pressure at all times. Pressure gauge shall be luminescent. Hand wheel shall be placed at a 90 degree angle from cylinder axis o Cylinders shall be capable of operating existing Rapid Intervention Team (RIT) kits (2), Rapid Deployment Craft (1) and lifting air bag system (1) through a CGA connection The successful bidder shall provide, at their own expense, a factory -trained instructor for such time as the SCBA user shall require complete instruction in the operation and maintenance of the SCBA. The successful bidder shall provide, at their own expense, Quantitative Fit Testing to properly size each user of the full facepiece assembly. The successful bidder shall provide the appropriate size mix of facepieces per the user fit test results. The successful bidder shall be a sales distributor, authorized by the manufacturer, to sell the equipment specified herein. A document from the manufacture confirming this shall be included with the bid. The successful bidder shall have service technicians readily available for routine and emergency repairs. A written description of currently available service standards shall be included with the bid. The SCBA shall maintain all NIOSH standards with any of the following types of cylinders listed as provided by the SCBA manufacturer. The SCBA shall be compliant to the NFPA 1981, 2013 Edition, Standard on Open -Circuit Self -Contained Breathing Apparatus for Emergency Services. The SCBA shall be compliant to the NFPA 1982, 2013 Edition Standard on Personal Alert Safety Systems. The unit shall be covered by a warranty providing protection against defects in materials and/or workmanship. This warranty shall be for a minimum period of 10 years on all SCBA and facepiece components. A written warranty from the manufacturer shall be provided. Any exceptions to these specifications shall be detailed in a separate attachment. Failure to do so will automatically disqualify the bidder. Options (all options shall be listed as a per pack/facepiece addition) o Emergency Breathing System (EBS) comprised of a hose assembly, pouch and/or any other necessary components o Facepiece shall have a head harness constructed of a flame/heat resistant assembly with 5 point adjustability o Facepiece spectacle/eye glass insert/kit o Harness Chest strap o Thermal Imaging Camera (TIC), include specifications documentation o SCBA accountability system o Hoses, regulators and necessary connections for existing ladder truck bucket o Additional rechargeable battery packs if applicable o Multi bank battery pack charging station if applicable o Dispose of existing HFD Scott SCBAs, Facepieces and Cylinders in the form of a trade in, buy back, credit or other similar option o Split the total purchase into two budget years with half of the product to be delivered and invoiced in 2017 and the other half to be delivered and invoiced in 2018 HUTCHINSON CITY COUNCIL ci=y-f� Request for Board Action 7AL =-ft Agenda Item: Consideration of the First Reading of Ordinance 17-777 Department: Administration LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: With the city council authorizing the development of a dog park, certain city codes were in need of updating to allow for the proper usage at the dog park. The proposed attached ordinance would allow for dogs to be off-leash within a public park. Staff is asking the council to consider a first reading of the ordinance with the proposed second reading and adoption taking place at the October 10 city council meeting. BOARD ACTION REQUESTED: Consider having the first reading of Ordinance 17-777- An ordinance amending Chapter 93 & 95 of the Hutchinson City Code to Accommodate the Establishment of a Dog Park Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: ORDINANCE 17-777 AN ORDINANCE AMENDING CHAPTER 93 AND 95 OF THE HUTCHINSON CITY CODE TO ACCOMMODATE THE ESTABLISHMENT OF A DOG PARK The City Council hereby ordains: WHEREAS, the City is in the process of constructing a dog park within city limits; and WHEREAS, Hutchinson's current city code is in need of being updated to allow for use of a dog park within city limits; and NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Hutchinson, that Chapter 93 and Chapter 95 of the City Code is hereby amended to read as follows: § 93.01 ANIMAL WASTE; REMOVAL REQUIRED. (A) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning. ANIMAL. A dog, cat or other animal. OWNER. Any person who harbors, feeds, boards, possesses, keeps or has custody of an animal. OFF LEASHDOG PARK. A public, city -designated area where a dog owner is permitted to allow a dog or dogs to socialize and exercise off leash, subject to the rules and regulations for such an area. (B) Unlawful acts. It is unlawful for any owner to: (1) Suffer or permit an animal to defecate upon public property, or the private property of another, without immediately removing the excrement and disposing of it in a sanitary manner; (2) Suffer or permit an animal to be upon public property, unless it's an off leash dog park, or the private property of another, unless the animal is in the custody of a person of suitable age and discretion having in his or her possession equipment and supplies for excrement removal; or (3) Permit animal excrement to accumulate for a period in excess of seven days on premises occupied by him or her without removal and sanitary disposal. § 93.18 RUNNING AT LARGE PROHIBITED. It shall be unlawful for the dog or cat of any person who owns, harbors or keeps a dog or cat to run at large. A person who owns, harbors, or keeps a dog or cat which runs at large shall be guilty of a misdemeanor. Dogs or cats on a leash and controlled by a reasonable person shall be permitted in streets or on public land unless prohibited with signs reading "Dogs and Cats Prohibited", except that dogs under the supervision of their owner may be unrestrained in the area designated as an Off Leash Dog Park. Dogs or cats who are under the control and direction of a responsible person so as to be effectively restrained by leash or an electronic control device shall be permitted only on private property at the consent of the property owner or in a public area designated as such. § 95.05 DEFINITIONS. OFF LEASH DOG PARK. A public, city -designated area where a dog owner is permitted to allow a dog or dogs to socialize and exercise off leash, subject to the rules and regulations for such an area. FURTHERMORE BE IT ORDAINED that the effective date of this Ordinance is upon passage of this Ordinance by the City Council ADOPTED BY THE HUTCHINSON CITY COUNCIL THIS 10TH DAY OF OCTOBER, 2017 Attest: Matthew Jaunich, City Administrator Gary T. Forcier, Mayor HUTCHINSON CITY COUNCIL c`=y-f 0' a_ � Request for Board Action 79 M-W Agenda Item: Approve/Deny a Dog Park Rules and Conditions Policy Department: Administration LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: With the city council authorizing the development of a dog park, the City is in need of a establishing a policy for the use of that park. The proposed attached policy is similar to what can be found at most municipally-owned dog parks. The establishment of a set of rules for the dog park is recommended by the League of MN Cities and our Insurance Trust. Staff is asking for approval of the attached policy. BOARD ACTION REQUESTED: Approve/Deny Policy No. 2.42 -- Dog Park Rules and Conditions Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON DOG PARK RULES AND CONDITIONS POLICY NO. 2.42 ARTICLE 1. PURPOSE With the establishment of a Dog Park within the city limits of Hutchinson, a set of rules and conditions are needed to help manage how the park will be used. The purpose of a Dog Park is to provide for an enclosed area where dogs can exercise alongside their human companions and fellow canines. The rules and conditions established below will govern the use of the Dog Park and nothing within this policy should supersede Chapter 93 or Chapter 95 of the Hutchinson City Code. ARTICLE 2. POLICY The following rules apply to all uses of the off -leash dog parks within the City of Hutchinson. • The Hours of the Dog Park are 6 a.m. to 10 p.m. • The off -leash dog park is for dogs, their handlers, and those accompanying them. No other use is allowed. • The use of the off -leash dog park is at the discretion of the handler. The off -leash dog park is not staffed by the City. Owner waives liability to the City of Hutchinson for any injury or damage caused by a pet. Owners are solely liable for injuries or damages caused by their dog(s). Users of the dog park do so at their own risk. • Dogs must be under visual contact and voice control of the handler at all times. A dog is considered under voice control if it will come when called. Dogs are never to be left unattended. Permission must be granted by each handler for dogs to play with or interact with another dog. • Handlers must remain in the area with their dogs at all times. • Children under the age of 13 are not allowed in the off -leash dog park without a supervising adult. Very young children are not recommended to be inside the off -leash dog park. • Dogs must be at least 4 months old, properly vaccinated, and wearing a City of Hutchinson pet license tag. If you are not a Hutchinson resident, a current rabies tag is acceptable. • Dogs that have been declared dangerous, as per City Ordinance or potentially dangerous in any community or that have a history of aggressive behavior, or females in heat are not allowed in the off -leash dog park. Any dog that exhibits aggressive behaviors must be removed immediately by the handler. • Maximum of three dogs per handler in the park at one time. • Owners MUST clean up after their dog(s) and deposit feces in the containers provided. • Professional dog trainers are not allowed to use the facility to conduct business. • The small dog area is limited to dogs no taller than 13" at the shoulder that weigh no more than 25 pounds. • No dog treats, food (dog or human), or glass containers are allowed in the dog park. • The park is tobacco, drugs and alcohol free. Approval Date: September 26, 2017 HUTCHINSON CITY COUNCIL c`=y-f 0' a_ � Request for Board Action 79 M-W Agenda Item: Approve/Deny a Dog Park Layout Department: Administration LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: With the city council authorizing the development of a dog park at our last meeting, staff has put together a layout of the park for council consideration (attached). With the amount of comments raised at the last meeting from both the public and council members, staff felt it was appropriate to seek your blessing on the layout prior to work beginning. A couple of things to note with the proposed layout: -- The map is not completely drawn to scale -- The fence will be 5' in height compared to 4'. Going with a 5' fence actually lowered the fencing cost by about $8,000. -- The fence line on the south side is about 15' north of the curb line. The dotted line would put it at 30 feet and would allow for some parking spaces along the south side of the fence. Putting the fence at 30 feet may require the elimination of 4-5 trees in the park according to staff. -- The area to the east would be for small dogs, the area to the west large dogs. -- The entrance is noted with the red line giving patrons the option of using the large dog park or the small dog park. -- The entrance could be moved farther to the east or west, but would require additional fencing to provide the appropriate separation between the two parks. -- The current expected cost for the fence (as proposed) is at $30,500 BOARD ACTION REQUESTED: Approve/Deny the layout of the Dog Park as presented by staff. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL c`=y-f 0, a_ � Request for Board Action 79 M-W Agenda Item: Consideration of items related to potential improvement in Alley #17 Department: PW/Eng LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: John Olson Agenda Item Type: Presenter: John Olson Reviewed by Staff ❑ New Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Under State Statute, initiation of a public improvement can be done a number of ways, including: Petition by more than 35% of property owners. In July, the City received a petition wherein 4 of 10 abutting property owners (40%) signed a petition to make improvements to Alley #17. Because of the late date, property owners were informed the project would not happen until the 2018 construction season, if approved. At this point, the petition needs to be validated and the City Council needs to declare the petition adequate under the Statute. The typical process for improvement projects would then begin with the next steps being ordering preparation of a feasibility report regarding the improvement project's necessity, cost-effectiveness, and feasibility, and then to schedule a public hearing to receive the report. Affected property owners would be invited that hearing. Alley #17 is located between Glen St SW and Franklin St SW, between Milwaukee Ave SW and Miller Ave SW. This alley has never been paved. The scope of the project is to remove existing base, install geotextile fabric, place new base material, and pave concrete with an inverted "vee" to address drainage. Over the years there have been isses regarding maintenance. In 2015 a few property owners inquired as to the feasibility of paving the alley. Following those inquiries, as per standard procedure regarding potential alley improvements, a letter was sent to abutting properties indicating the estimated cost of the project at $110,150. It was made clear the cost was only an estimate: "Actual amounts assessed may be different, and would be based upon actual costs of the improvement." Per the current assessment policy, the City would pick up 50% of the alley improvement, leaving an amount of $55,075 to be assessed, which works out to be a rate of approx. $83.447/LF (typical 66' lot = $5,507.50). BOARD ACTION REQUESTED: Consideration of receiving and validating the petition and declaring the petition adequate with regard to Alley #17 improvements. Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: $ 110,150.00 Total City Cost: $ 55,075.00 Funding Source: City funds Remaining Cost: $ 55,075.00 Funding Source: Assessments RESOLUTION NO. 14783 RESOLUTION DECLARING ADEQUACY OF PETITION ALLEY #17 BE IT RESOLVED BY THE CITY COUNCIL OF HUTCHINSON, MINNESOTA: A certain petition requesting the following improvement Alley #17 located between Glen St SW & Franklin St SW, between Milwaukee Ave SW & Miller Ave SW: Alley improvements by construction of pavement distress patching, milling, overlaying and appurtenances. Said Petition is hereby declared to be signed by the required percentage of owners of property affected thereby. This declaration is made in conformity to Minn. Stat. § 429.035. Adopted by the Council this 26th day of September 2017 Mayor: Gary Forcier City Administrator: Matthew Jaunich Printed Name Address Contact Info Signature �CJC) lj4 7( Petition To: r,Ar�K�,� Printed Name Address Contact Info Signature wwwEEP .BusinessFormTemplate.com -z[ 60Q3 wwwEEP .BusinessFormTemplate.com C August 4, 2017 Alley #17 property owners: City of Hutchinson Public Works Department Operations & Maintenance 1400 Adams St SE Hutchinson, MN 55350 Phone (320) 234-4219 Fax (320) 234-6971 Under State Statute, initiation of a public improvement can be done a number of ways, including when a petition, signed by more than 35% of property owners, is presented to the City. In July, the City received a petition wherein 4 of 10 abutting property owners (40%) signed a petition to make improvements to Alley #17, located between Glen St SW/Franklin St SW and Miller Ave SW/Milwaukee Ave SW. At this point, the petition will need to be validated by the City Council, who will need to declare the petition adequate under the Statute. This step is anticipated at the August 22, 2017 City Council meeting. Once validated, the typical process for City improvement projects would begin. The next step would be ordering preparation of a feasibility report regarding the improvement project's necessity, cost-effectiveness, and feasibility, and then to schedule a public hearing to receive the report. Affected property owners would be invited that hearing. Due to current resource constraints, the project, if approved, would most likely be constructed during the 2018 construction season. Alley #17 is not paved. In 2015, following inquiries by a number of residents regarding maintenance issues, a letter was sent to abutting properties indicating an estimated project cost of $110,150. The project scope included excavation, removal and placement of base material, geotextile fabric and concrete paving with inverted 'vee' for drainage. THIS IS AN ESTIMATE. Actual costs may vary. Assessments would be based upon actual costs. At a rate of $83.447 per back foot, a 66 -foot lot abutting the alley would pay $5,507.50 in assessments for the improvement up front or roughly $1,200 per year over a 5 -year period, assuming approximately 3% interest. Again, these amounts are estimates based on a preliminary review of the project. The amounts assessed may be different, based upon actual costs of the improvement. Attached for your reference are excerpts from the City's Assessment Policy. The highlighted sections pertain to alley construction. Property owners can look forward to receiving an invitation to a public hearing regarding this project, upon validation of the petition by the City Council at their August 22, 2017 meeting. John Olson Public Works Manager Tolson@ci.hutchinson.mn.us Excerpts from the City of Hutchinson Assessment Policy Initiatine Public Improvements There are five ways public improvements may be initiated. Under all of these, the City Council reserves the right to reject improvements if it is determined they are not necessary, cost-effective or feasible. Also, in all cases, provisions of State Statute must be followed. The five ways projects are initiated include: Petition by 100% ofproperU owners, with a waiver ofappeal of Mecial assessments: This generally involves property owners that are developing previously undeveloped property for the first time. When 100% of property owners request the improvement, the City Council may order the improvement without a hearing. Under separate agreement, property owners will generally waive provisions of State Statute that provide for the property owner's right to appeal special assessments. In these cases, the property owners pay 100% of the cost of public improvements. Petition by 100% ofproperby owners, without waiver of gppeal: This generally involves all property owners agreeing that a public improvement is necessary. When 100% of property owners request the improvement, the City Council may order the improvement without a hearing. Once validated by the City Council, the resolution may not be questioned, unless an action for that purpose is commenced within 30 days; however, the amount of the special assessments may still be questioned pursuant to State Statute. Petition by more than 35% of property owners: This generally involves more than 35% of abutting property owners agreeing that a public improvement is necessary. Once the petition is validated, the City Council may not make substantial changes in the nature of the improvement from that asked for in the petition. The City Council may, however, deem substantial changes necessary or desirable, and may proceed on its own motion without reference to the petition. If no substantial changes are necessary or desirable, the City Council must declare the petition adequate under the Statute and order preparation of a report regarding the improvement project's necessity, cost-effectiveness, and feasibility. City Council Resolution: This generally involves initiation of a potential public improvement by resolution of the City Council. The City Council may order the preparation of a report of a public improvement's necessity, cost-effectiveness and feasibility. Such resolutions require a 4/5th vote from the City Council, rather than a simple majority. Ciby Council adoption of an asset management strath: The City Council may, by resolution, adopt an asset management strategy identifying several potential public improvements in one report. This method is considered, in essence, the same as having produced separate resolutions for each public improvement identified in the asset management strategy. Such resolutions require a 4/5th vote from the City Council, rather than a simple majority. New Development Improvements The cost of infrastructure and public improvements for all new developments will be borne by the developer and/or property owner. Developers or property owners pay the entire cost of initially installing infrastructure and improvements in accordance with City standards, subject to review by the City Engineer. In cases where the City, at its discretion, provides financing for new development improvements, all development costs will be assessed to the property. Improvements to Existing Infrastructure The remainder of this policy, including provisions identifying any cost being generally paid by the City of Hutchinson, applies to local, area, and City-wide improvements, as defined below. Public Improvements For purposes of this policy, there are three general classifications of improvements. Local Improvements: Local improvements are generally the most common. These improvements primarily provide benefit to abutting properties. Area Improvements: Area improvements provide benefit to properties in a wider, yet definable, area. City-wide Improvements: City-wide improvements are typically large-scale improvements of benefit to the entire City, regardless of their location. Typical improvements are classified as: Local Improvements Area Improvements City-wide Improvements Curb and gutter Trunk sanitary sewer (greater Bridges' than 8" diameter) Trunk water main (greater than Sidewalks 8" diameter) and looped water Community facilities' main Sanitary sewer laterals (8" or less Collector and Arterial streets Collector and Arterial streets' diameter) Sewer, storm sewer and water Neighborhood parks & Recreational facilities & services playgrounds' Community arks' Local streets and alleys Storm drainage improvements — Wastewater treatment facilities2 Storm drainage improvements — Parking lots Water towers2 local Boulevard trees, streetlights Sidewalks and boulevard trees Water treatment plant2 Other improvements authorized by law' 'Generally supported by Federal, State or County funds or funds other than special assessments 2Generally paid using user charges General provisions for improvements. All infrastructure improvements are required to be extended through developments up to adjoining properties in order to serve future developments. This includes, but is not limited to streets, waterworks, sanitary and storm sewer, appurtenances and restoration, including improvements deemed necessary or desirable. Cul-de-sacs and Dead-end roadways. In general, cul-de-sacs and dead-end roadways are discouraged due to maintenance, access, system continuity and other issues. The City recognizes that these roadways will continue to be built in special circumstances. The City reserves the right to require payment of fees identified in adopted rate schedules to account for future costs specific to this type of development. Removals or Abandonment of Improvements. Removals or abandonment of improvements generally includes destruction, removal or abandonment of any improvement and restoration of conditions at the site, whether surface or subsurface. ■ Alleys. Generally, all of the costs of new alleys are borne by property owners. One-half of the costs of constructing new pavement in an existing alley or repaving existing paved alleys will generally be assessed to property owners. The City, however, reserves the right to participate at any level in the construction or reconstruction of alleys or to assess costs using existing rate schedules. a ., Improvement Projects New construct Re - construct Rehab Repave Alleys Yes Yes Yes Yes Parking Lots Yes Yes Yes Yes Sidewalks/Trails/Walkways Yes May May May Street amenities/Streetsca es Yes Yes Yes n/a Street boulevard trees Yes May n/a n/a Streetlights Yes May n/a n/a Traffic control devices Yes May May n/a Dikes & flood control works May May n/a n/a Retaining and area walls May May n/a n/a Enhanced 911 markers May May n/a n/a Parks, rec. facilities May May n/a n/a Curb and gutter Yes Yes Yes n/a Driveways & approaches Yes Yes Yes n/a Street construction Yes Yes Yes Yes Street maintenance No No No No Safety improvements Yes May May n/a Turn lanes Yes May May May SAC / WAC; access charges Yes n/a n/a n/a Sewer or Water Trunk Lines Yes May No n/a Sewer or Water Main Yes May No n/a Sewer or Water Laterals Yes May No n/a Sewer or Water Services Yes Yes May n/a Storm Sewer Trunk Lines Yes May May n/a Storm Sewer Main Yes Yes May n/a Storm Sewer Laterals Yes Yes May n/a Storm Sewer Services Yes Yes Yes n/a Rig hts-of-way/ Easements Yes Yes n/a n/a ■ Alleys. Generally, all of the costs of new alleys are borne by property owners. One-half of the costs of constructing new pavement in an existing alley or repaving existing paved alleys will generally be assessed to property owners. The City, however, reserves the right to participate at any level in the construction or reconstruction of alleys or to assess costs using existing rate schedules. Estimated Alley Rehabilitation Project Costs Alley #17 East of Glen St SW West of Franklin St SW North of MilwaukeeAveSW South of Miller Ave SW Excavation 12,000.00 Excavate to establish base, w/fabric Gravel 9,600.00 Placement base gravel, fabric Concrete paving 63,000.00 Pave concrete alley, w/inverted vee for drainage Project costs 84,600.00 Contingency 5% 4,230.00 Project contingency Project total 88,830.00 Project Fees (24%) 21,320.00 Engineering, fiscal, legal, etc. Total project cost $ 110,150.00 Project area 5,760.00 sf (360' x 16') Cost per sq ft $ 19.12 City cost 55,075.00 50.0% Rounding - 0.0% City cost 55,075.00 50.0% $ 9.56 per sq ft Assessable cost 55,075.00 50.0% $ 9.56 per sq ft Total cost 110,150.00 Property Address Assessment BF $18F Owner West 148 Milwaukee Ave SW 5,507.50 66 $ 83.447 Mackedanz West 615 Glen St SW 5,507.50 66 $ 83.447 Seifert West 625 Glen St SW 5,507.50 66 $ 83.447 Marcks West 635 Glen St SW 5,507.50 66 $ 83.447 Kashuba West 645 Glen St SW 5,507.50 66 $ 83.447 May East 606 Franklin St SW 5,507.50 66 $ 83.447 Lies East 616 Franklin St SW 5,507.50 66 $ 83.447 Kerr East 626 Franklin St SW 5,507.50 66 $ 83.447 Juhl/Newcomb East 636 Franklin St SW 5,507.50 66 $ 83.447 Blakeslee East 646 Franklin St SW 5,507.50 66 $ 83.447 Weide 55,075.00 660 $ 83.447 Ak- MILWAUKEE AVE SW I WO 636 Franklin Weide :st :sw7p MILLER AVE SW wo- .OG:s HUTCHINSON CITY COUNCIL c`=y-f 0' a_ � Request for Board Action 79 M-W Agenda Item: Approve/Deny Council Appointments to T.H. 15/Main St. Engagement Group Department: Administration LICENSE SECTION Meeting Date: 9/26/2017 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: At the last city council meeting, staff discussed with the Council the formation of an Engagement Group that is taking place to work with MN/DOT and their Consultants on the Highway 15/Main Street project that is scheduled for 2020. Staff discussed with the Council about appointing 2 members from the City Council to the group along with a representative from the Public Arts Commission and the Historic Hutchinson group. Below are the proposed recommendations by Mayor Forcier: 2 City Council Reps: Steve Cook & Chad Czmowski Public Arts Commission: Historic Hutchinson: Please note that Mayor Forcier has not brought forth any recommendations on appointments from the Public Arts Commission or Historic Hutchinson. Those appointments will be up for discussion on Tuesday and/or will be appointed at a later date. BOARD ACTION REQUESTED: Approve/Deny Appointments to the Trunk Highway 15/Main Street Project Engagement Group Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON CITY COUNCIL c`=y-f 0' a_ � Request for Board Action 79 M-W Agenda Item: August 2017 Financial and Investment Reports Department: Finance LICENSE SECTION Meeting Date: 9/26/2017 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 OFAGENDA ITEM: For Council review, attached are the August Financial Reports for the general fund and enterprise funds. Also attached is the August 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: REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2017 TOTAL REVENUES 303,927 6,737,285 12,300,128 5,562,843 54.8 5,880,292 11,463,235 51.3 Wages & Benefits 696,407 5,091,001 8,175,052 3,084,051 2017 4,627,820 7,595,480 2016 Supplies 2017 ACTUALS 2017 AVAILABLE % BDGT 2016 YTD 2016 % BDGT 50.4 AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED General Fund Miscellaneous Expenses 11,384 176,478 552,075 375,597 32.0 164,721 525,226 Taxes - 2,533,570 4,763,796 2,230,226 53.2 2,280,967 4,581,035 49.8 Other Taxes 10,639 154,470 300,000 145,530 51.5 149,578 272,000 55.0 Licenses & Permits 55,811 573,757 283,550 (290,207) 202.3 195,351 271,500 72.0 Intergovernmental Revenue 14,119 1,129,845 1,423,830 293,985 79.4 993,988 1,284,330 77.4 Charges for Services 171,474 1,673,507 2,817,291 1,143,784 59.4 1,326,290 2,350,666 56.4 Miscellaneous Revenues 48,003 215,741 339,500 123,759 63.5 135,841 291,300 46.6 Transfers -In - 423,189 2,292,161 1,868,972 18.5 770,825 2,332,404 33.0 Fines & Forfeitures 3,881 33,206 55,000 21,794 60.4 27,453 55,000 49.9 Capital Contributions - - 25,000 25,000 - - 25,000 - TOTAL REVENUES 303,927 6,737,285 12,300,128 5,562,843 54.8 5,880,292 11,463,235 51.3 Wages & Benefits 696,407 5,091,001 8,175,052 3,084,051 62.3 4,627,820 7,595,480 60.9 Supplies 82,767 574,937 866,545 291,608 66.3 388,629 770,593 50.4 Services & Charges 272,451 1,527,100 2,596,456 1,069,356 58.8 1,510,821 2,461,936 61.4 Miscellaneous Expenses 11,384 176,478 552,075 375,597 32.0 164,721 525,226 31.4 Transfers -Out - 50,000 100,000 50,000 50.0 49,878 600,000 8.3 Capital Outlay - 5,623 10,000 4,378 56.2 5,024 10,000 50.2 TOTAL EXPENDITURES 1,063,010 7,425,139 12,300,128 4,874,989 60.4 6,746,891 11,963,235 56.4 NET REVENUE (759,083) (687,854) - 687,854 (866,599) (500,000) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2017 2017 ACTUALS AUGUST General Fund Expense by Department YTD 2017 2016 2017 AVAILABLE % BDGT 2016 YTD 2016 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED Mayor & City Council 2,804 24,279 49,962 25,683 48.6 20,664 44,290 46.7 City Administrator 29,983 254,679 395,266 140,587 64.4 244,822 430,251 56.9 Elections - - 6,850 6,850 - 4,999 15,950 31.3 Finance Department 20,710 229,301 355,653 126,352 64.5 239,489 361,468 66.3 Motor Vehicle 17,957 135,561 217,890 82,329 62.2 137,712 203,836 67.6 Assessing - - 46,496 46,496 - - 60,911 - Legal 24,118 184,066 294,100 110,034 62.6 173,295 288,193 60.1 Planning 11,838 96,248 151,585 55,337 63.5 66,037 149,972 44.0 Information Services 37,773 316,062 535,168 219,106 59.1 298,385 504,738 59.1 City Hall Building 11,897 106,399 173,368 66,969 61.4 69,701 131,322 53.1 Police Department 240,581 1,969,169 3,216,585 1,247,416 61.2 1,884,708 3,062,565 61.5 Hospital Security 20,465 179,987 296,977 116,990 60.6 174,806 293,886 59.5 Emergency Management 432 21,371 10,000 (11,371) 213.7 5,287 12,800 41.3 Safety Committee - 9,896 10,000 104 99.0 8,600 9,500 90.5 Fire Department 12,219 190,280 343,461 153,181 55.4 185,884 306,733 60.6 Protective Inspections 21,898 156,075 236,552 80,477 66.0 153,058 227,556 67.3 Engineering 36,075 271,219 418,877 147,658 64.7 247,052 402,714 61.3 Streets & Alleys 206,151 905,554 1,548,036 642,482 58.5 848,212 1,517,341 55.9 Park/Recreation Administration 16,644 153,880 233,898 80,018 65.8 152,949 222,323 68.8 Recreation 19,339 152,063 232,724 80,661 65.3 148,388 234,397 63.3 Senior Citizen Center 8,859 56,156 84,801 28,645 66.2 57,061 83,747 68.1 Civic Arena 15,396 199,123 333,284 134,161 59.7 187,532 323,727 57.9 Park Department 79,786 608,664 879,100 270,436 69.2 582,216 852,751 68.3 Recreation Building 15,155 109,299 211,726 102,427 51.6 108,009 170,818 63.2 Events Center 16,150 151,836 259,478 107,642 58.5 152,797 243,017 62.9 Evergreen Building 1,709 15,879 26,225 10,346 60.5 14,000 25,450 55.0 Library 44,717 150,330 211,842 61,512 71.0 150,927 206,365 73.1 Waterpark 116,486 388,300 424,753 36,453 91.4 - - - Cemetery 9,785 78,194 132,974 54,780 58.8 89,706 130,785 68.6 Airport 13,497 69,557 103,679 34,122 67.1 62,580 104,635 59.8 Unallocated General Expense 10,584 241,711 858,818 617,107 28.1 278,014 1,341,194 20.7 TOTAL EXPENDITURES 1,063,010 7,425,139 12,300,128 4,874,989 60.4 6,746,891 11,963,235 56.4 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 TOTAL EXPENDITURES NET REVENUE REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2017 2017 ACTUALS AUGUST YTD 2017 2016 2017 AVAILABLE % BDGT 2016 YTD 2016 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED 530,254 3,996,874 6,123,000 2,126,126 65.3 3,881,612 5,868,000 66.1 535 1,764 4,000 2,236 44.1 1,963 3,000 65.4 530,789 3,998,638 6,127,000 2,128,362 65.3 3,883,575 5,871,000 66.1 426,846 3,024,404 4,591,390 1,566,986 65.9 2,945,241 4,398,810 67.0 48,632 380,187 662,377 282,190 57.4 347,859 568,211 61.2 1,070 7,327 24,250 16,923 30.2 13,350 17,400 76.7 16,061 134,536 218,550 84,014 61.6 138,645 198,350 69.9 - 3,895 5,850 1,955 66.6 3,901 5,650 69.0 - 500,000 500,000 - - 475,000 - 20,000 20,000 9,685 20,000 48.4 80,000 80,000 - 80,200 - - - 127,635 127,635 - - 128,055 - 492,610 3,550,349 6,230,052 2,679,703 57.0 3,458,679 5,891,676 58.7 38,179 448,289 (103,052) (551,341) 424,896 (20,676) August Sales 2017 Year to Date Sales Change Comments 2017 2016 Change Sales Revenue: Liquor 1,317,788 1,290,198 2.1% Beer 2,002,473 1,941,486 3.1% Wine 589,939 574,921 2.6% Other 86,674 75,008 15.6% -1.4% 3,996,874 3,881,612 3.0% Customer Count 160,304 155,274 3.2% Average Sale per Customer $ 24.93 $ 25.00 -0.3% Gross Margin on Sales 24.3% 25.0% Labor to Sales Ratio 9.5% 10.8% August Sales 2017 2016 Change 172,441 169,770 1.6% 276,759 261,678 5.8% 68,836 61,535 11.9% 12,217 9,683 26.2% 530,254 502,666 5.5% 22,095 20,649 7.0% $ 24.00 $ 24.34 -1.4% 24.1% 25.0% 9.0% 9.7% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2017 2017 ACTUALS AUGUST YTD 2017 2016 2017 AVAILABLE % BDGT 2016 YTD 2016 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED Water Fund Sales 233,759 1,604,638 2,384,950 780,312 67.3 1,541,161 2,306,000 66.8 Local Sales Tax 51,271 323,577 625,000 301,423 51.8 262,573 685,000 38.3 Intergovernmental Revenue - - - - - - - - Charges for Services 2,103 44,313 50,000 5,687 88.6 54,132 50,000 108.3 Miscellaneous Revenues 4,591 22,484 92,000 69,516 24.4 17,078 85,000 20.1 Capital Contributions - - - - - - - - TOTAL REVENUES 291,725 1,995,012 3,151,950 1,156,938 63.3 1,874,944 3,126,000 60.0 Wages & Benefits 41,503 294,553 461,635 167,082 63.8 295,320 479,983 61.5 Supplies 6,710 76,624 126,600 49,976 60.5 82,880 122,400 67.7 Services & Charges 28,414 294,339 522,250 227,911 56.4 316,110 507,350 62.3 Miscellaneous Expenses (225) 7,120 12,200 5,080 58.4 10,141 13,500 75.1 Transfers -Out - - 60,000 60,000 - - 43,145 - CapitalOutlay 2,790 21,917 250,000 228,083 8.8 47,366 250,000 18.9 Depreciation Expense - - 1,205,000 1,205,000 - - 1,150,000 - Debt Service 1,101,216 1,345,961 1,481,305 135,344 90.9 1,262,363 1,408,611 89.6 TOTAL EXPENDITURES 1,180,409 2,040,514 4,118,990 2,078,476 49.5 2,014,179 3,974,989 50.7 NET of REVENUES & EXPENDITURES (888,684) (45,502) (967,040) (921,538) (139,235) (848,989) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2017 2017 ACTUALS AUGUST YTD 2017 2016 2017 AVAILABLE % BDGT 2016 YTD 2016 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED Sewer Fund Sales 266,445 2,212,556 3,330,000 1,117,444 66.4 2,146,251 3,213,000 66.8 Local Sales Tax 51,271 323,577 625,000 301,423 51.8 262,573 685,000 38.3 Intergovernmental Revenue - - - - - - - - Licenses & Permits - 5,100 6,500 1,400 78.5 5,200 7,000 74.3 Charges for Services 500 5,963 3,500 (2,463) 170.4 1,295 4,000 32.4 Miscellaneous Revenues 9,034 41,676 123,000 81,324 33.9 25,944 117,000 22.2 Capital Contributions - - - - - - - - TOTAL REVENUES 327,250 2,588,872 4,088,000 1,499,128 63.3 2,441,263 4,026,000 60.6 Wages & Benefits 43,323 346,400 655,584 309,184 52.8 386,773 622,085 62.2 Supplies 9,770 94,449 219,650 125,201 43.0 129,073 236,100 54.7 Services & Charges 48,393 479,432 780,450 301,018 61.4 535,753 742,550 72.2 Miscellaneous Expenses 453 19,740 32,500 12,760 60.7 28,600 24,500 116.7 Transfers -Out - - 60,000 60,000 - - 43,145 - CapitalOutlay 6,284 123,682 350,000 226,318 35.3 276,930 350,000 79.1 Depreciation Expense - - 1,623,000 1,623,000 - - 1,530,000 - Debt Service 853,418 1,344,895 1,460,650 115,755 92.1 1,439,408 1,568,854 91.7 TOTAL EXPENDITURES 961,640 2,408,599 5,181,834 2,773,235 46.5 2,796,537 5,117,234 54.6 NET of REVENUES & EXPENDITURES (634,391) 180,273 (1,093,834) (1,274,107) (355,273) (1,091,234) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2017 Wages & Benefits 15,602 106,781 188,733 81,952 2017 100,467 190,804 2016 Supplies 2017 ACTUALS 2017 AVAILABLE % BDGT 2016 YTD 2016 % BDGT 42.7 AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED Refuse Fund Miscellaneous Expenses 31 1,253 5,750 4,497 21.8 2,358 3,750 Sales 99,673 786,542 1,193,300 406,758 65.9 775,207 1,149,500 67.4 Intergovernmental Revenue 3,539 6,172 12,500 6,328 49.4 5,900 12,500 47.2 Miscellaneous Revenues 1,213 6,014 7,000 986 85.9 4,349 2,500 174.0 TOTAL REVENUES 104,425 798,727 1,212,800 414,073 65.9 785,456 1,164,500 67.5 Wages & Benefits 15,602 106,781 188,733 81,952 56.6 100,467 190,804 52.7 Supplies 1,900 28,734 62,400 33,666 46.0 26,652 62,400 42.7 Services & Charges 55,447 409,215 731,550 322,335 55.9 409,908 704,727 58.2 Miscellaneous Expenses 31 1,253 5,750 4,497 21.8 2,358 3,750 62.9 Transfers -Out - - 805,000 805,000 - - 55,000 - CapitalOutlay 190,374 190,374 36,760 95,000 38.7 Depreciation Expense - 138,000 138,000 - - 124,000 - Debt Service - 23,680 24,261 581 97.6 23,124 24,260 95.3 TOTAL EXPENDITURES 72,980 569,663 2,146,068 1,576,405 26.5 599,269 1,259,941 47.6 NET of REVENUES & EXPENDITURES 31,445 229,064 (933,268) (1,162,332) 186,188 (95,441) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2017 Cost of Sales 19,860 1,140,820 1,348,002 207,182 2017 1,161,428 1,117,265 2016 Inventory Cost Adjustment 2017 ACTUALS 2017 AVAILABLE % BDGT 2016 YTD 2016 % BDGT 53.8 AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED Compost Fund Supplies 5,941 46,163 78,626 32,463 58.7 45,566 70,257 Sales 30,952 1,751,465 1,991,476 240,011 87.9 1,904,109 1,636,796 116.3 Charges for Services 465 12,217 58,500 46,284 20.9 11,561 58,500 19.8 Miscellaneous Revenues 2,483 10,914 7,000 (3,914) 155.9 33,719 6,000 562.0 TOTAL REVENUES 33,899 1,774,596 2,056,976 282,380 86.3 1,949,389 1,701,296 114.6 Cost of Sales 19,860 1,140,820 1,348,002 207,182 84.6 1,161,428 1,117,265 104.0 Inventory Cost Adjustment (77,833) (356,137) (538,028) (181,891) 66.2 (282,929) (525,746) 53.8 Wages & Benefits 50,098 356,791 582,363 225,572 61.3 356,507 559,899 63.7 Supplies 5,941 46,163 78,626 32,463 58.7 45,566 70,257 64.9 Services & Charges 34,714 182,217 231,004 48,787 78.9 156,037 188,573 82.7 Miscellaneous Expenses 206 7,132 14,000 6,868 50.9 6,092 13,500 45.1 Transfers -Out - - 110,000 110,000 - - 110,000 - CapitalOutlay 623,000 623,000 157,162 150,000 104.8 Depreciation Expense - 174,000 174,000 - 134,000 - Debt Service - 87,833 - (87,833) - - - - TOTAL EXPENDITURES 32,986 1,464,819 2,622,967 1,158,148 55.8 1,599,863 1,817,748 88.0 NET of REVENUES & EXPENDITURES 913 309,776 (565,991) (875,767) 349,526 (116,452) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2017 2017 ACTUALS AUGUST YTD 2017 2016 2017 AVAILABLE % BDGT 2016 YTD 2016 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED Storm Water Utility Sales 74,017 590,780 881,475 290,695 67.0 569,880 855,867 66.6 Licenses & Permits 610 3,835 1,500 (2,335) 255.7 2,730 - - Charges for Services - 560 - (560) - - - - Miscellaneous Revenues 2,126 9,360 7,000 (2,360) 133.7 8,348 7,000 119.3 Capital Contributions - - - - - - - - TOTAL REVENUES 76,753 604,536 889,975 285,439 67.9 580,958 862,867 67.3 Wages & Benefits 18,810 151,572 256,432 104,860 59.1 143,350 243,986 58.8 Supplies - 10,546 38,800 28,254 27.2 9,038 43,925 20.6 Services & Charges 3,083 117,941 163,600 45,659 72.1 63,663 164,100 38.8 Miscellaneous Expenses 27 3,970 11,250 7,280 35.3 5,470 11,250 48.6 Transfers -Out - - - - - - - - CapitalOutlay 15,337 170,000 154,663 9.0 120,000 Depreciation Expense - 153,000 153,000 - - 133,000 Debt Service - 148,950 160,550 9,867 93.5 145,633 150,850 70.2 TOTAL EXPENDITURES 21,919 448,316 953,632 503,583 47.0 367,154 867,111 42.3 NET of REVENUES & EXPENDITURES 54,834 156,220 (63,657) (218,144) 213,804 (4,244) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2017 2017 ACTUALS AUGUST YTD 2017 2016 2017 AVAILABLE % BDGT 2016 YTD 2016 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED HATS Operation Intergovernmental Revenue 6,650 94,297 162,280 67,983 58.1 90,812 156,045 58.2 Charges for Services 16,823 142,966 325,000 182,034 44.0 147,586 530,000 27.8 Miscellaneous Revenues 191 1,094 3,500 2,406 31.3 795 3,150 25.2 Transfers -In - 50,000 100,000 50,000 50.0 49,878 99,755 50.0 TOTAL REVENUES 23,664 288,357 590,780 302,423 48.8 289,070 788,950 36.6 Wages & Benefits 1,911 15,430 39,495 24,065 39.1 24,842 59,470 41.8 Supplies 16,130 167,820 341,650 173,830 49.1 157,501 528,600 29.8 Services & Charges 7,529 77,377 162,000 84,623 47.8 83,487 161,200 51.8 Miscellaneous Expenses - - 5,600 5,600 - - 5,171 - CapitalOutlay - 4,863 42,035 37,172 11.6 - 33,600 - TOTAL EXPENDITURES 25,570 265,490 590,780 325,290 44.9 265,830 788,041 33.7 NET of REVENUES & EXPENDITURES (1,906) 22,867 - (22,867) 23,240 909 Comments Charges for Services The main activity in this category is the sale of fuel to City departments, the State, County and Hutchinson Utilities. Supplies The main activity in this category is the cost of fuel for the fueling system. Oppenheimer & Co. Inc. PPENIEIME 85 Broad street STATEMENT OF New York, NY 10004 (212) 668-8000 ACCOUNT S&C Transacts Business on All Principal Exchanges News and Information Assets maturing during the next 60 days appear at the end of this statement NEW SETTLEMENT TERMS FOR SECURITIES TRANSACTIONS: Effective September 5th, the SEC will require a 2 -day settlement of most securities transactions (currently 3 -days). Accordingly, when you purchase securities, payment will be due within two business days; when you sell securities, proceeds will be available to you two business days after the transaction. Please contact your Oppenheimer Financial Advisor if you have questions regarding the new Rule. ADVANTAGE BANK DEPOSIT PROGRAM NOTICE: East Boston Savings Bank [Boston, MA] and Comerica Bank [Dallas, TX] were recently added to the Program; The Citizens State Bank [Okemah, OK] is no longer a participating bank; Texas Capital Bank, National Association [Dallas, TX] and Wells Fargo Bank, National Association [Sioux Falls, ID] may be added in the coming weeks or months. Portfolio Summary Net Value of Accrued Interest $51,819.81 $50,703.10 Total Asset Value does not include Direct Investments, Accrued Interest or unpriced securities- * Eligible for FDIC insurance up to standard maximum insurance amounts, Not SIPC insured. Cash Activity Summary Opening Cash Balance This Previous Estimated Net Miscellaneous Credits/Debits Period Period Annual Income Net Advantage Bank Deposit Activity 08/31/17 07/31/17 $0.00 Advantage Bank Deposits* $771.92 $201.37 $0.07 Mutual Funds 8,639,184.16 9,127,619.77 72,698.73 Government Agency Bonds 3,398,341.00 2,895,575.00 55,000.00 Municipal Bonds 2,994,655.00 2,974,575.00 70,010.00 Certificates of Deposit 7,821,154.02 7,799,872.01 126,523.50 Total Asset Value $22,854,106.10 $22,797,843.15 $324,232.30 Net Value of Accrued Interest $51,819.81 $50,703.10 Total Asset Value does not include Direct Investments, Accrued Interest or unpriced securities- * Eligible for FDIC insurance up to standard maximum insurance amounts, Not SIPC insured. Cash Activity Summary Opening Cash Balance $0.00 Net Buy and Sell Transactions -149,112.58 Net Miscellaneous Credits/Debits 123,654.43 Net Income Activity 26,028.70 Net Advantage Bank Deposit Activity -570.55 Closina Cash Balance $0.00 Account Number: D25-5019707 Tax ID Number: ON FILE For the Period: 08/01/17 - 08/31/17 Last Statement: 07/31/17 Page 1 of 11 CITY OF HUTCHINSON MINNESOTA III HASSAN ST SE HUTCHINSON MN 55350-2522 Financial Advisor SULLIVAN/SULLIVAN X2J (800)258-3387 Internet Address: www.opco.com Income Summary Office Serving Your Account 50 SOUTH SIXTH STREET SUITE 1300 MINNEAPOLIS, MN 55402 Reportable This Period Year to Date Advantage Bank Dep Interest $0.01 $0.20 Corporate Accrued Int Received 276.85 276.85 Corporate Interest 5,716.23 42,985.14 Municipal Interest 13, 362.50 13, 362.50 Government Interest 0.00 19,812.50 Dividends 6,949.96 12,130.96 Total Reportable $26,305.55 $88,568.15 PPENHEIMFP, TOTAL POSITIONS PORTFOLIO OVERVIEW Multiple Portfolios report as of 9/1/17 POSITIONS INCLUDED IN PORTFOLIO ANALYSIS Original Face Value $14,624,000.00 Current Face Value $14,624,000.00 Estimated Portfolio Totals Estimated Portfolio Averages Est Annual Income $258,733.50 Original Face Value $14,624,000.00 Coupon 1.77% Valid Positions 45 Current Face Value $14,624,000.00 Maturity 3.61 yrs Exceptions 0 Market Value $14,614,262.02 Effective Maturity 2.40 yrs Total Positions 45 Accrued Interest $55,420.13 Modified Duration 2.28 Includes all positions with recognized CUSIP and valid quantity provided Total Market Value $14,669,682.15 Yield to Maturity 2.04% Please see exception report for positions not included in reports. Yield to Worst 1.83% POSITIONS W/ MARKET PRICE Positions 45 of 45 Market Price 99.93 Priced Orig. Face Value $14,624,000.00 Rating Priced Current Face Value $14,624,000.00 a a a Priced Positions 45 of 45 Priced Market Principal $14,614,262.02 Average Coupon 1.77% Average Price 99.93 Includes all positions with recognized CUSIP, quantity and market price on report date Original Face: the original dollarvalue at issuance Current Face: the dollarvalue afterthe current factor is applied Includes all positions with recognized CUSIP, quantity, market price and derived calculations on report date. Coupon and Market Price weighted by Current Face Value, all others weighted by Market Value. Please see the last page of this report for detail. Page 2 of 40 PPENHEIMEI, PORTFOLIO SUMMARY - CURRENT FACE VALUE WEIGHTED - ALL SECURITY TYPES Multiple Portfolios report as of 911117 PORTFOLIO SUMMARY Portfolio Totals Fed Exempt Fed Taxable Current Face Value - $14,624,000 Positions - 45 Accrued Interest - $55,420 Est Annual Income - $258,734 * Portfolio Average 23.2% Avg Coupon Rate - 1.769% Avg Maturity - 3.6yrs * Current Face Value -weighted. For Avo Maturity calculations, Deroetual securities assume 40 Current Face Value -weighted PORTFOLIO RATING SUMMARY RATING DISTRIBUTION HOLDINGS BY SECURITY TYPE Total Positions Face (000) 0/b Face $14,624,000 Agency 5 $3,400.0 23.2% 45 of 45 Asset Backed - - - $55,420 CD 34 $8,224.0 56.2% $258,734 CEF - - - CMO Corp - - 1.769% Muni 6 $3,000.0 20.5% 3.6yrs Pass Thru - - - Preferred Below BAA - - - v BAA m Treas - - Total 45 $14,624.0 100.0 Current Face Value -weighted PORTFOLIO RATING SUMMARY RATING DISTRIBUTION **Ratina Positions Face (000) % Face AAA so AAA 7 $4,400.0 30.1% m > AA u y AA 4 $2,000.0 13.7% A m BAA u A 0 Below BAA - - - v BAA m NR 34 $8,224.0 56.2% M c Below Total 45 $14,624.0 100.0% u BAA v a NR 0 10 20 30 40 s0 60 ** Best of Short/Long term equivalent Moody's or Standard & Poor's Rating. Current Face Value -weighted. Best of Short/Long term equivalent Moody's or Standard & Poor's Rating. Current Face Value -weighted. Please see the last page of this report for detail. Page 4 of 40 (7)PPENHEIMEk PORTFOLIO SUMMARY - CURRENT FACE VALUE WEIGHTED - ALL SECURITY TYPES Multiple Portfolios report as of 911117 Jan Agency $15,500 CD $5,738 Muni:Non AMT - Muni:Subj AMT - Muni:Taxable - 32 28 24 20 W Q 16 LL e 12 8 4 0 MATURITY EXPOSURE 1 1� 1� 1 14'66 'V1 't�' tip as 00tiVA ti� ti99699�'9�9a 9�91p 9� 9�9°J o1x Jai J ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ,60a6p Qy< Current Face Value -weighted. ESTIMATED COUPON CASH FLOW SUMMARY MATURITY SCHEDULE Year Face (000) % Year Face (000) 2017 $240.0 1.6% 2031 - 2018 $1,713.0 11.7% 2032 - - 2019 $2,162.0 14.8% 2033 - - 2020 $1,970.0 13.5% 2034 - - 2021 $2,880.0 19.7% 2035 - - 2022 $4,419.0 30.2% 2036 - - 2023 - - 2037 - - 2024 $1,000.0 6.8% 2038 - - 2025 $240.0 1.6% 2039 - - 2026 - - 2040 - - 2027 - - 2041+ - - 2028 - - Perpetual - - 2029 2030 Jan Agency $15,500 CD $5,738 Muni:Non AMT - Muni:Subj AMT - Muni:Taxable - 32 28 24 20 W Q 16 LL e 12 8 4 0 MATURITY EXPOSURE 1 1� 1� 1 14'66 'V1 't�' tip as 00tiVA ti� ti99699�'9�9a 9�91p 9� 9�9°J o1x Jai J ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ,60a6p Qy< Current Face Value -weighted. Seal Oct Nov Dec ESTIMATED COUPON CASH FLOW SUMMARY Feb Mar Agr May Jun Jul Aug $5,000 - $2,500 $4,500 - $15,500 $5,000 $8,919 $13,215 $5,776 $19,159 $14,055 $5,738 $8,919 $13,363 - - $21,643 - - $13,363 Seal Oct Nov Dec Total - $2,500 $4,500 - $55,000 $13,215 $5,776 $19,159 $14,055 $133,724 - - $21,643 - $70,010 Total $21,238 $27,281 $13,215 $8,276 $45,301 $14,055 $21,238 $27,281 $13,215 $8,276 $45,301 $14,055 $258,734 Reflects extended cash flow estimates assuming portfolio composition as of report date. Please refer to Definitions for more complete explanation. Please see the last page of this report for detail. Page 5 of 40 PPENHEIMER PORTFOLIO SUMMARY - MARKET VALUE WEIGHTED - ALL SECURITY TYPES Multiple Portfolios report as of 911117 I PORTFOLIO SUMMARY 1 Portfolio Totals Fed Exempt Fed Taxable Total Priced Current Face - $14,624,000 $14,624,000 Positions - 45 45 of 45 Market Value - $14,614,262 $14,614,262 Accrued Interest - $55,420 $55,420 Total Market Value - $14,669,682 $14,669,682 Est Annual Income - $258,734 $258,734 Portfolio Averages ** Coupon Rate - 1.769% 1.769% Maturity - 3.6yrs 3.6yrs Effective Maturity 2.4yrs 2.4yrs Modified Duration 2.3 2.3 Yield To Maturity - 2.04% 2.04% Yield To Worst - 1.83% 1.83% ** Market Price - 99.933 99.933 ** Par Value wtd, other avgs Mkt Value wtd. Incl only positions with mkt value & calcs on report date. For perpetual securities avg calcs, Final Maturity assume 40 yrs, Yield to Maturity uses strip yield. PORTFOLIO RATING SUMMARY AAA AA 0 NR Includes only positions with market value & calculations on report date. Market Value -weighted. POSITIONS BY SECURITY TYPE Agency �CD 0 Agency 23.3% Asset Backed 0.0% � CD 56.3% CIF 0.0% CMO 0.0% Corp 0.0% Muni 20.5% Pass Thru 0.0% ■ Preferred 0.0% Treas 0.0% Total: 100.0% Muni Includes only positions with market price & calculations on report date. Market Value -weighted. 100 90 80 70 ~y 60 F s0 0 40 30 20 10 0 SECURITY FEATURES ❑ AAA 30.0% ❑ AA 13.7% ❑ A 0.0% ❑ BAA 0.0% ❑ Below BAA 0.0% ❑ NR 66.3% Total: 100.0% Includes only positions with market value & calculations on report date. Market Value -weighted. POSITIONS BY SECURITY TYPE Agency �CD 0 Agency 23.3% Asset Backed 0.0% � CD 56.3% CIF 0.0% CMO 0.0% Corp 0.0% Muni 20.5% Pass Thru 0.0% ■ Preferred 0.0% Treas 0.0% Total: 100.0% Muni Includes only positions with market price & calculations on report date. Market Value -weighted. 100 90 80 70 ~y 60 F s0 0 40 30 20 10 0 SECURITY FEATURES Includes only positions with market price & calculations on report date. Market Value -weighted. Please see the last page of this report for detail. Page 6 of 40 Ga�`9,o ocG 0+0`0 Ca+9,o Q9�0 iQOwo Includes only positions with market price & calculations on report date. Market Value -weighted. Please see the last page of this report for detail. Page 6 of 40 PPEINHFIMEI1 PORTFOLIO SUMMARY - MARKET VALUE WEIGHTED - ALL SECURITY TYPES MATURITY EXPOSURE 32 28 24 20 F 16 e 12 8 4 0 A.$! NA 'lip, yy y� ,yp ,y0 _VA ri y ,y0 ,y0,l0 01, 0t Q Includes only positions with market price & calculations on report date. Market Value -weighted. DURATION EXPOSURE 35 30 25 Y 20 i e is 10 s 0 Includes only positions with market price & calculations on report date. Market Value -weighted. Multiple Portfolios report as of 911117 Please see the last page of this report for detail. Page 7 of 40 PORTFOLIO EXPOSURE MaturitV Effective Maturity Duration to Worst Average: 3.61 yrs Average: 2.40yrs Average: 2.28 Year $ Mkt %Mkt $ Mkt % Mkt Year $ Mkt % Mkt 2017 $240,031 1.6% $2,889,144 19.7% 00-01 $4,863,847 33.2% 2018 $1,713,041 11.7% $2,962,868 20.2% 01-02 $1,939,641 13.2% 2019 $2,178,835 14.9% $2,178,835 14.9% 02-03 $3,201,181 21.8% 2020 $1,974,302 13.5% $2,463,834 16.8% 03-04 $1,217,658 8.3% 2021 $2,876,188 19.6% $727,646 5.0% 04-05 $2,439,725 16.6% 2022 $4,435,454 30.2% $2,439,725 16.6% 05-06 - 2023 - - - 06-07 $1,007,630 6.9% 2024 $1,007,630 6.9% $1,007,630 6.9% 07-08 - 2025 $244,201 1.7% - - 08-09 - 2026 - - - 09-10 - 2027 - - - 10-11 - 2028 - - - 11-12 - 2029 - - - 12-13 - 2030 - - - 13-14 - 2031 - - - 14-15 - 2032 - - - 15-16 - 2033 - - - 16-17 - 2034 - - - 17-18 - 2035 - - - 18-19 - 2036 - - - 19-20 - 2037 - - - 20-21 - 2038 - , - - 21-22 - 2039 - - - 22-23 - 2040 - - - 23-24 - 2041+ - - - 24-25 - Perpet - ` - - 25-26 - 26-27 27-28 28-29 30+ Avg life used in Effective Maturity for principal pay -downs. Includes only positions with market price & calculations on report date. Market Value -weighted. For Avg Maturity calculations, perpetual securities assume 40 yrs. Please see the last page of this report for detail. Page 7 of 40 (-jPPENHEIMER PORTFOLIO POSITION DETAIL Multiple Portfolios report as of 9/1/17 Page 1 of 3 A Type St Qty Cp ity Mdy S&P % Mkt Duration Acq Cost Acq Yid $ Acq Cost Mkt Price Accrued Int Security Description C CUSIP Insurer Convexity Acq Date Mkt Yid $ Adj Cost Mkt $ Value Unreal Gn/Ls SUN NATL BK VINELAND NJ B CD 240 1.000 10/03/17 NR NR 1.64% 0.07 $100.00 1.000 $240,000 100.00 $26 Conditional Puts - Death of holder - Restrict 86682ABV2 0.00 05/09/17 0.972 $240,000 $240,005 $5 ALLY BK MIDVALE UTAH B CD 248 1.250 02/26/18 NR NR 1.70% 0.47 $100.00 1.249 $248,000 100.07 $102 Conditional Puts - Death of holder 02006LNY5 0.01 05/09/17 1.096 $248,000 $248,179 $179 BANK NORTH CAROLINA THOMASVILLE N B CD 245 1.000 02/27/18 NR NR 1.67% 0.47 $100.00 1.000 $245,000 99.90 $74 Conditional Puts - Death of holder 06414QXX2 0.00 05/09/17 1.214 $245,000 $244,753 ($247) MERRICK BK SOUTH JORDAN UTAH B CD 245 0.900 05/10/18 NR NR 1.67% 0.67 $100.00 0.900 $245,000 99.85 $169 Conditional Puts - Death of holder - Restrict 59013JNV7 0.01 05/09/17 1.121 $245,000 $244,637 ($363) KEY BK NATL ASSN OHIO B CD 245 1.000 05/11/18 NR NR 1.67% 0.67 $100.00 1.000 $245,000 99.85 $799 Conditional Puts - Death of holder - Restrict 49306SWN2 0.01 05/09/17 1.223 $245,000 $244,633 ($368) CONNECTONE BANK B CD 245 1.000 05/14/18 NR NR 1.67% 0.68 $100.00 1.000 $245,000 99.85 $168 Conditional Puts - Death of holder 20786ABM6 0.01 05/09/17 1.227 $245,000 $244,623 ($377) BANK LEUMI USA NEW YORK N Y B CD 245 1.250 06/22/18 NR NR 1.67% 0.78 $100.00 1.249 $245,000 99.88 $646 Conditional Puts - Death of holder 063248GE2 0.01 05/09/17 1.408 $245,000 $244,694 ($306) ENERBANK USA SALT LAKE CITY UTAH B CD 240 1.350 10/04/18 NR NR 1.64% 1.07 $100.00 1.350 $240,000 99.81 $27 Conditional Puts - Death of holder - Restrict 29266NVE4 0.01 05/09/17 1.530 $240,000 $239,539 ($461) MAIN STIR BK CORP WHEELING WV B CD 245 1.450 02/14/19 NR NR 1.67% 1.42 $100.00 1.450 $245,000 99.79 $818 Conditional Puts - Death of holder 56034WAP6 0.02 05/09/17 1.598 $245,000 $244,486 ($515) WORLDS FOREMOST BK SYDNEY NEB A CD 200 1.300 05/28/19 NR NR 1.36% 1.70 $100.00 1.300 $200,000 99.20 $85 Conditional Puts - Death of holder 981571 CM2 0.03 05/26/16 1.775 $200,000 $198,390 ($1,610) RIVERSIDE CALIF CMNTY COLLEGEDIST B Muni -Taxable CA 500 2.345 08/01/19 Aa2 AA 3.47% 1.85 $101.50 1.657 $507,485 101.31 $1,173 TAXABLE -Material Events 76886PFA6 0.04 05/09/17 1.644 $506,400 $506,525 $125 AMERICAN EXPRESS FSB B CD 247 2.150 11/13/19 NR NR 1.71% 2.11 $100.00 2.150 $247,000 100.90 $1,702 Conditional Puts - Death of holder - Restrict 02587CCR9 0.06 05/09/17 1.725 $247,000 $249,233 $2,233 CIT BK SALT LAKE CITY UTAH B CD 240 2.100 11/13/19 NR NR 1.66% 2.11 $100.00 2.100 $240,000 100.80 $1,616 Conditional Puts - Death of holder - Restrict 17284C3N2 0.06 05/09/17 1.726 $240,000 $241,910 $1,910 BMW BANK OF NORTH AMERICA - UT B CD 245 1.550 12/16/19 NR NR 1.67% 2.22 $100.00 1.550 $245,000 99.56 $884 Conditional Puts - Death of holder - Restrict 05580AFT6 0.06 05/09/17 1.746 $245,000 $243,929 ($1,071) TBK BK SSB DALLAS TEX B CD 245 1.600 12/16/19 NR NR 1.67% 2.22 $100.00 1.596 $245,000 99.68 $913 Callable 12/17@100 - Conditional Puts - Dea 87219RBC7 0.06 05/09/17 1.745 $244,994 $244,209 ($786) BARCLAYS BANK DELAWARE B CD 240 2.050 12/17/19 NR NR 1.65% 2.21 $100.00 2.049 $240,000 100.77 $1,105 Conditional Puts - Death of holder 06740KJC2 0.06 05/09/17 1.701 $240,000 $241,858 $1,858 SALLIE MAE BK SALT LAKE CITY UT B CD 245 1.750 03/09/20 NR NR 1.68% 2.42 $100.00 1.749 $245,000 99.93 $2,150 Conditional Puts - Death of holder - Restrict 795450ZT5 0.07 05/09/17 1.781 $245,000 $244,816 ($184) MASSACH USETTS ST GO BDS BMuni-Taxable MA 500 2.090 05/01/20 Aa1 AA 3.45% 2.55 $100.00 2.090 $499,995 100.91 $3,658 TAXABLE -Material Events 57582P2T6 0.08 05/09/17 1.735 $499,995 $504,570 $4,575 MB FINL BK N A CHICAGO ILL B CD 245 1.300 05/11/20 NR NR 1.67% 2.63 $100.00 1.300 $245,000 99.35 $236 Conditional Puts - Death of holder - Restrict 55266CRK4 0.07 05/09/17 1.550 $245,000 $243,398 ($1,602) CENTENNIAL BK CONWAY ARK B CD 245 1.300 05/20/20 NR NR 1.66% 2.65 $100.00 1.300 $245,000 99.20 $157 Conditional Puts - Death of holder 15135KBA8 0.07 05/09/17 1.604 $245,000 $243,033 ($1,967) CAPITAL ONE, NATIONAL ASSOCIATION B CD 245 1.400 09/21/20 NR NR 1.65% 2.94 $100.00 1.400 $245,000 98.24 $1,598 Conditional Puts - Death of holder 14042RCA7 0.10 05/09/17 2.001 $245,000 $240,676 ($4,324) FIRST BUSINESS BK MADISON WIS B CD 245 1.400 11/13/20 NR NR 1.65% 3.08 $100.00 1.400 $245,000 98.57 $1,099 Conditional Puts - Death of holder 31938QR89 0.11 05/09/17 1.864 $245,000 $241,494 $3 506 Please see the last page of this report for detail. Page 35 of 40 Multiple Portfolios POSITION DETAIL as of 09/01/2017 Page 2 of 3 Security Description A Type C CUSIP St Qty Cpn Maturity Mdy S&P % Mkt Insurer Duration Convexity Acq Cost Acq Date Acq Yid Mkt Yid $ Acq Cost $ Adj Cost Mkt Price Mkt $ Value Accrued Int Unreal Gn/Ls CAPITAL ONE BK USA NATL ASSN GLEN B CD 245 2.050 12/29/20 NR NR 1.69% 3.18 $100.00 2.049 $245,000 100.59 $963 Conditional Puts - Death of holder 14042OS43 0.12 05/09/17 1.864 $245,000 $246,455 $1,455 COM ENITY CAP BK SALT LAKE CITY UTA B CD 245 1.600 06/07/21 NR NR 1.66% 3.64 $100.00 1.600 $245,000 98.99 $11 Conditional Puts - Death of holder - Restrict 20033AQP4 0.14 05/09/17 1.879 $245,000 $242,528 ($2,472) COMMUNITY BK PASADENA CALIF B CD 245 1.550 06/15/21 NR NR 1.66% 3.66 $100.00 1.550 $245,000 98.98 $239 Conditional Puts - Death of holder - Restrict 203507BA5 0.14 05/09/17 1.829 $245,000 $242,506 ($2,494) EAST BOSTON SVGS BK BOSTON MA B CD 245 1.500 06/23/21 NR NR 1.65% 3.66 $100.00 1.500 $245,000 98.61 $765 Conditional Puts - Death of holder 27113PBEO 0.15 05/09/17 1.880 $245,000 $241,597 ($3,403) FEDERAL HOME LN MTG CORP CALL 2% B Agency 500 2.000 07/26/21 Aaa AA- 3.42% 0.39 $100.00 2.000 $500,000 100.03 $1,083 Callable 01/18@100 3134GBYJ5 0.00 07/26/17 1.921 $500,000 $500,145 $145 FEDERAL HOME LOAN MORTGAGE CORP B Agency 500 1.000 10/28/21 Aaa AA+ 3.42% 1.13 $100.00 1.000 $500,000 99.88 $1,764 Callable 10/17@100 - Multi -Step Coupon 3134GASK1 0.02 05/09/17 1.537 $500,000 $499,420 ($580) FEDERAL HOME LOAN MTG CORP B Agency 900 1.000 11/19/21 Aaa AA+ 6.15% 0.20 $99.90 1.190 $899,100 99.82 $2,650 Callable 11/17@100 - Multi -Step Coupon 3136G2SA6 0.00 05/09/17 1.878 $899,100 $898,371 ($729) MIZRAHI TEFAHOT BANK, LTD B CD 245 1.250 11/30/21 NR NR 1.68% 0.23 $100.00 1.247 $245,000 100.02 $67 Callable 11/17@100 - Multi -Step Coupon - Co 606857Q78 0.00 05/09/17 1.176 $245,000 $245,042 $42 STATE BK INDIA NEW YORK N Y B CD 247 2.350 01/26/22 NR NR 1.71% 4.14 $100.00 2.349 $247,000 101.31 $684 Conditional Puts - Death of holder - Restrict 8562845Z3 0.20 05/09/17 2.036 $247,000 $250,231 $3,231 GOLDMAN SACHS BK USA NEW YORK B CD 247 2.300 03/08/22 NR NR 1.71% 4.21 $100.00 2.299 $247,000 100.94 $2,848 Conditional Puts - Death of holder 38148PGX9 0.21 05/09/17 2.080 $246,987 $249,324 $2,337 COMENITY BK WILMINGTON DE A CD 200 2.300 03/29/22 NR NR 1.38% 4.33 $100.00 2.300 $200,000 100.86 $113 Conditional Puts - Death of holder 20036DXN2 0.20 03/29/17 2.102 $200,000 $201,722 $1,722 SYNCHRONY BK RETAIL CTF DEP PROGR B CD 245 2.400 04/07/22 NR NR 1.70% 4.28 $100.00 2.400 $245,000 101.26 $2,465 Conditional Puts - Death of holder - Restrict 87164XPZ3 0.21 05/09/17 2.111 $245,000 $248,077 $3,077 MARYSVILLE MICH PUB SCHS DIST GO U B Muni -Taxable MI 500 2.317 05/01/22 Aa1 3.39% 4.34 $98.85 2.565 $494,230 99.05 $4,055 TAXABLE -Material Events 574446GV6 0.22 05/09/17 2.534 $494,230 $495,255 $1,025 NEW YORK N Y CITY TRANSITIONAL FIN A B Muni -Taxable NY 500 1.650 05/01/22 Aa1 AAA 3.33% 4.42 $99.43 1.771 $497,125 97.35 $2,888 Make Whole Call Only - Make Whole Call Exp 64971WJ35 0.22 05/09/17 2.254 $497,125 $486,725 ($10,400) JP MORGAN CHASE BANK NA B CD 245 1.250 05/31/22 NR NR 1.67% 2.66 $100.00 1.243 $245,000 99.80 $831 Callable 11/17@100 - Multi -Step Coupon - Co 48125Y21_7 0.09 05/09/17 1.508 $245,000 $244,500 ($500) FEDERAL HOME LN MTG CORP CALL STE B Agency 1,000 2.100 07/27/22 Aaa AA+ 6.84% 0.14 $100.00 2.100 $1,000,000 100.03 $2,217 Callable 10/17@100 - Multi -Step Coupon 3134GBYN6 0.00 07/27/17 1.867 $1,000,000 $1,000,330 $330 AMERICAN EXPRESS CENTURIAN BK CTF B CD 245 2.350 08/08/22 NR NR 1.68% 4.62 $100.00 2.350 $245,000 100.44 $473 Conditional Puts - Death of holder - Restrict 02587DV47 0.24 08/08/17 2.255 $245,000 $246,073 $1,073 FEDERAL HOME LOAN MORTGAGE CORP B Agency 500 2.000 08/22/22 3.42% 0.21 $100.00 2.000 $500,000 100.02 $361 Callable 11/17@100 - Multi -Step Coupon 3134GBB27 0.00 08/22/17 1.928 $500,000 $500,075 $75 DISCOVER BK GREENWOOD DEL B CD 245 2.450 11/18/22 NR NR 1.69% 4.82 $100.00 2.450 $245,000 100.80 $1,842 Conditional Puts - Death of holder 254672WU8 0.27 05/09/17 2.286 $245,000 $246,950 $1,950 WELLS FARGO BANK NA 84 MO B CD 245 1.650 11/23/22 NR NR 1.68% I 1.19 $100.00 1.650 $245,000 100.50 $1,185 Callable 11/18@100 - Multi -Step Coupon -Co 94986TWE3 0.02 05/09/17 1.230 $245,000 $246,230 $1,230 COMMERCE CALIF CMNTY DEV COMMN S B Muni -Taxable CA 500 3.000 08/01/24 AA 3.44% 6.18 $105.32 2.200 $526,595 100.44 $1,500 DID - TAXABLE - Material Events -AGMC, in 20056UAV6 AGMC 0.44 05/09/17 2.929 $525,470 $502,210 ($23,260) NEW YORK N Y CITY TRANSITIONAL FIN A B Muni -Taxable NY 500 2.600 11/01/24 Aa1 AAA 3.42% 6.43 $97.35 2.998 $486,750 99.87 $4,550 Callable 11/22@100 -TAXABLE -Material Ev 64971QJ38 0.47 05/09/17 2.619 $486,750 $499,370 $12,620 HSBC BANK USA, NATIONAL ASSOCIATIO B CD 240 2.250 03/11/25 NR NR 1.65% 2.41 $100.00 2.249 $240,000 100.64 $2,663 Callable 03/20 100 - Multi -Ste Coupon - Co 40434ASB6 0.07 05/09/17 1.987 $240,000 $241,538 $1 538 Please see the last page of this report for detail. Page 36 of 40 M=0� HRA HUTCHIN$ON N"51NG AND REOEVELOPMEHT AUTHORITY Regular Board Meeting Tuesday, August 15, 2017, 7:04 AM Minutes CALL TO ORDER: Chair Renee Lynn Johnson Kotlarz called the meeting to order. Members Present: Gary Forcier, Steve Jensen, LouAnn Holmquist and Nikki Willemssen. Staff Present: Jean Ward and Judy Flemming. 2. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON JULY t8,2017 Steve Jensen moved to approve the Minutes of the regular board meeting as written. Gary Forcier seconded and the motion carried unanimously. 3. FINANCIAL REPORTS a. Steve Jensen moved to approve City Center General Fund payments of $30,228.33 for checks 8863 to 8870. LouAnn Holmquist seconded and the motion carried unanimously. b. Steve Jensen moved to approve City Center July 31, 2017 financial statements. Nikki Willemssen seconded and the motion carried unanimously. c. LouAnn Holmquist moved to approve Park Towers operating account payments of $29,778.55 for checks 14035 to 14064. Nikki Willemssen seconded and the motion carried unanimously. d. Steve Jensen moved to approve Paris Towers security account payment of $268.81 for check 1555. LouAnn Holmquist seconded and the motion carried unanimously. e. Steve Jensen moved to approve Park Towers June 30, 2017 Financial Reports. Nikki Willemssen seconded and the motion carried unanimously. 4. PARK TOWERS UPDATE a. Occupancy Report — 99% occupied. b. Park Towers' August Newsletter: No bed bugs. Jean Ward updated the Board on the LED lighting project. 5. SCDP RENTAL REHAB a. LouAnn Holmquist moved to approve 325 Jefferson Street Rental Rehab SCDP Loan ##7, Two Rivers Rental LLC contingent to the Loan Review Committee's approval for up to maximum loan amount of $150,000. Steve Jensen seconded and the motion carried unanimously. b. Steve Jensen moved to approve 245 Monroe Street Rental Rehab SCDP Loan #8, George Schaust contingent to the Loan Review Committee's approval for up to maximum loan amount of $24,999. LouAnn Holmquist seconded and the motion carried unanimously. 6. CONSIDERATION OF APPROVAL OF FRATZKE STREAMLINED HILP LOAN Steve Jensen moved to approve the Fratzke Streamlined HILP loan. LouAnn Holmquist seconded and the motion carried unanimously. 7. OTHER COMMUNICATIONS Jean Ward gave the Board an update on Highfield Apartments — 70% done on the I" building. August 15, 2017 Minutes Page 1 oft 8. ADJOURNMENT LouAnn Holmquist moved to adjourn and Steve Jensen seconded. There being no other business, Chair Renee Lynn Johnson Kotlarz declared the meeting adjourned. Recorded by Jean Ward, HRA Executive Director (A4 Gary Foy6ier, Secretary/Treasurer August 15, 2017 Minutes Page 2 of 2 Hutchinson Properties Orded To Be Cleared By City I Date of Report: 09/19/2017 Enforcement —F Number Address Parcel Category Date Filed Status Date Closed EEN17-0146 510 Fischer St SW 01-116-30-07-1010 Tall Grass/Noxious Weed 08/03/2017 Closed 08/21/2017 EEN17-0149 218 5th Ave NE 31-117-29-09-1100 Tall Grass/Noxious Weed 08/03/2017 Closed 08/11/2017 EEN17-0150 1475 Calgary Ln SE 07-116-29-16-0160 Tall Grass/Noxious Weed 08/03/2017 Closed 08/11/2017 EEN17-0151 250 5th Ave NW 31-117-29-12-0171 Tall Grass/Noxious Weed 08/03/2017 Closed 08/21/2017 EEN17-0152 338 4th Ave SW 06-116-29-05-0350 Tall Grass/Noxious Weed 08/03/2017 Abated by City 09/05/2017 EEN17-0153 141 5th Ave NE 31-117-29-10-0140 Tall Grass/Noxious Weed 08/03/2017 Abated by City 09/05/2017 EEN17-0154 405 Adams St SE 06-116-29-07-0620 Tall Grass/Noxious Weed 08/25/2017 Closed 09/06/2017 EEN17-0155 145 2nd Ave SE 06-116-29-03-0740 Tall Grass/Noxious Weed 08/25/2017 Closed 09/06/2017 EEN17-0156 805 Franklin St SW 06-116-29-11-0930 Tall Grass/Noxious Weed 08/25/2017 Closed 09/06/2017 EEN17-0157 430 Water St NW 31-117-29-12-0270 Tall Grass/Noxious Weed 08/28/2017 Abated by City EEN17-0158 455 Water St NW 31-117-29-12-0370 Tall Grass/Noxious Weed 08/28/2017 Closed 09/06/2017 EEN17-0159 465 Water St NW 31-117-29-12-0360 Tall Grass/Noxious Weed 08/28/2017 Closed 09/06/2017 EEN17-0160 750 Dale St SW 01-116-30-10-1230 Tall Grass/Noxious Weed 08/30/2017 Abated by City 09/15/2017 EEN17-0161 615 Merrill St SW 01-116-30-09-0540 Tall Grass/Noxious Weed 08/30/2017 Closed 09/06/2017 Total Records: 14 Enforcement.CodeOfficer = John Paulson AND Enforcement.DateFiled Between 8/1/2017 12:00:00 AM AND 8/31/2017 11:59:59 PM Population: All Records Status Descriptions Abated by City = Ordered by City to be cleared using Contractor Closed = Mowed by Owner