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cp04-24-2018HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, APRIL 24, 2018 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 — Seventh Day Adventist Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Proclamation - Random Acts of Kindness Day (b) Resolution No. 14880 — Resolution Accepting Cash Donation from Glen Kurth in the Amount of $3504.00 for a New Bench at Veterans' Memorial Field PUBLIC COMMENTS (This is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be acceptingpublic comments during the agenda item if not a public hearing. Ifyou have a question, concern or comment, please ask to be recognized by the mayor —stateyour name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Workshop Meeting of April 10, 2018 (b) Regular Meeting of April 10, 2018 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 Issuing Parade Permit for Memorial Day Parade on May 28, 2018 (b) Consideration for Approval of Resolution No. 14877 — A Resolution Amending Resolution No. 14707 Establishing Income Guidelines and Asset Limitations for Senior Citizens 65 Years or Older, Disabled Citizens, Active Duty Military Reserves or National Guard Deferred Assessments and Senior Citizens Reduced Refuse Rate (c) Consideration for Approval of Issuing Short -Term Gambling License to Shady Lane Sportsmen Club on June 15 & 16, 2018, at McLeod County Fairgrounds CITY COUNCIL AGENDA APRIL 24, 2018 (d) Consideration for Approval of Purchase Order No. 19757 — 2018 Street Repairs (e) Consideration for Approval of Purchase Order No. 19763 — Wastewater Treatment Facility HVAC System Upgrade (Boiler Replacement) (f) Consideration for Approval of Resolution No. 14885 — Resolution Allowing Historic Hutchinson to Apply for a Grant to Repair Stained Windows at the Historic Church on Behalf of the City of Hutchinson (g) Consideration for Approval of Resolution No. 14881 — Resolution Adopting Findings of Fact and Reasons for Approval of a Conditional Use Permit for an Electronic Recycling Facility and Storage Facility Located at 540 3rd Avenue NW, Jeffrey Krueger, Applicant; with Favorable Planning Commission Recommendation (h) Consideration for Approval of Resolution No. 14882 — Resolution Adopting Findings of Fact and Reasons for Approval of a Conditional Use Permit to Amend the Planned Development District to Reduce the Minimum Front Yard Setbacks from 25 to 20 -Feet on 11 Lots and Reduce the Interior Lot Line to Zero on 12 Lots; Also a Vacation of Easements Along Four Lot Lines to Allow for Twin Homes, Gus Wurdell, Applicant, with Favorable Planning Commission Recommendation (i) Consideration for Approval of Items for 2018 Street Seal Coating Project (Letting No. 6, Project No. 18-06) 1. Resolution No. 14878 — Resolution Ordering Preparation of Report on Improvement 2. Resolution No. 14879 — Resolution Receiving Report and Calling Hearing on Improvement (j) Consideration for Approval of Items for Trail and Parking Improvements Project (Letting No. 10, PrcjectNo. 18-10) 1. Resolution No. 14883 — Resolution Ordering Preparation of Report on Improvement 2. Resolution No. 14884 — Resolution Receiving Report and Calling Hearing on Improvement (k) Claims, Appropriations and Contract Payments PUBLIC HEARINGS — 6:00 P.M. - NONE NtMUNICATIONS RE UESTS 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.) UNFINISHED BUSINESS NEW BUSINESS 9. APPROVE/DENY ACCEPTANCE OF TWINS COMMUNITY FUND GRANT 10. APPROVE/DENY ORDINANCE NO. 18-786 - AN ORDINANCE SUSPENDING ENFORCEMENT OF HUTCHINSON CITY ORDINANCES 92.018 AND 112.056 2 CITY COUNCIL AGENDA APRIL 24, 2018 PERTAINING TO HOURS OF USE OF SOUND AMPLIFICATION EQUIPMENT AND CONSUMPTION OF ALCOHOLIC BEVERAGES IN CITY PARKS (WAIVE FIRST READING, SET SECOND READING AND ADOPTION FOR MAY 8, 2018) 11. APPROVE/DENY SURPLUS EQUIPMENT AND DONATION TO NONPROFITS POLICY 12. APPROVE/DENY CITY FINANCIAL MANAGEMENT PLAN 13. APPROVE/DENY SPECIAL ASSESSMENT AGREEMENT BETWEEN MINNESOTA STATE COLLEGES AND UNIVERSITIES AND CITY OF HUTCHINSON — CENTURY AVENUE SE RECONSTRUCTION GOVERNANCE (The purpose of this 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) 14. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) Public Arts Commission Minutes from March 15, 2018 b) Parks, Recreation, Community Education Minutes from April 2, 2018 �c) City of Hutchinson Financial Report and Investment Report for March 2018 d) Hutchinson Housing & Redevelopment Authority Board Minutes from March 20, 2018 (e) Planning Commission Minutes from March 20, 2018 MISCELLANEOUS 15. STAFF UPDATES 16. COUNCIL/MAYOR UPDATE ADJOURNMENT r4 PROCLAMATION HUTCHINSON RANDOM ACT OF KINDNESS DAY Whereas, the Random Acts of Kindness group, as part of the Hutchinson Leadership Institute, has set out to spread goodwill throughout the city of Hutchinson, Whereas, it has been noted that Random Acts of Kindness promote a healthy life, by improving overall disposition for both the giver and receiver, Whereas, the Random Acts of Kindness group believe that people of all ages, young to old, can help to make a better world by doing something nice for someone else, Whereas, the goal for this proclaimed date is to encourage a Pay It Forward exponential response. For each Random Act of Kindness received, the hope is that the recipient will in turn do several random acts, and so on, Whereas, we will be distributing May Day baskets to select residents of Hutchinson on this day to let them know we care, Whereas, we are incorporating several civic groups within Hutchinson to join us in the preparation and distribution of these baskets in the hopes they in turn will Pay It Forward. Now Therefore, Be it Resolved, that 1, Gary T. Forcier, Mayor, proclaim May 1, 2018, as "Hutchinson Random Act of Kindness Day" and encourage everyone to Pay It Forward. Gary T. Forcier, Mayor Hutchinson, MN CITY OF HUTCHINSON RESOLUTION NO. 14880 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 person has offered to contribute the cash amount set forth below to the city: Name of Donor Amount Donation Date Glen Kurth $3,504.00 4/12/2018 WHEREAS, such donation has been contributed to the City of Hutchinson for a new bench at Veterans Memorial Field. 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 24th day of April 2018. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL SPECIAL WORKSHOP MEETING MINUTES TUESDAY, APRIL 10, 2018, AT 4:00 PM CITY CENTER — COUNCIL CHAMBERS Call to Order Mayor Forcier called the meeting to order at 4:00 p.m. Members present were Steve Cook, Chad Czmowski and John Lofdahl. Member absent was Mary Christensen. Others present were Matt Jaunich, City Administrator, Kent Exner, City Engineer and Marc Sebora, City Attorney. DISCUSSION/REVIEW ITEMS 1. Joint Meeting with Public Arts Commission Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that the Public Arts Commission had requested to have a joint meeting with the City Council to review past project and potential future projects. Introductions of all members were made. Steve Cook, Council Member who serves on the Public Arts Commission (PAC), provided a review of the history of the PAC including the establishment of the board, policies and procedures and a Resolution authorizing funding for public art projects. Council Member Cook reviewed past projects that the PAC has implemented such as the Sculpture Stroll and "Parental Love". Council Member Cook also provided a financial update of the Commission. Council Member Cook spoke of funding for the Sculpture Stroll, two previous SMAC grants, and a new initiative to have Sculpture Stroll business sponsors. Council Member Cook and the Public Arts Commission then spoke of potential ideas for the future. These included expanding the Sculpture Stroll (trail/river or downtown and outside of the downtown district such as Ridgewater or other location), decorative signal boxes (similar to Willmar and Minneapolis), 2020 Main Street Project (signal boxes or other), Founders Park or Cedar Park (monument, interpretive signage), Gateway Park (interpretive signage), public art in City facilities (local artists — paintings, photography, artwork), Wegschied mural(s), and fence artwork at Aquatic Center. Morgan Baum also spoke of a project where sculptures are made of the same piece, however an artist decorates/paints it in their own way then the sculpture is sold to businesses/homes where they could be displayed. The funding sources for these projects will come from the City's public sites fund, Community Improvement Fund and CIP budget as designated by Resolution. If special projects come up that need additional funding, requests may be made to the Council. Council Member Czmowski liked the idea of fund raising efforts that had been mentioned. Kent Exner spoke of opportunities to incorporate public art into the Main Street reconstruction project. He asked if additional permanent pads are needed in the downtown area for public art. If so, he noted that this is the time to make such a request. The group asked Mr. Exner to determine what MnDOT would allow and where in correlation to Main Street. Mr. Exner noted that most likely the City would need to propose ideas to MnDOT for them to review and approve/disapprove. Discussion was held regarding adding a sculpture stroll on Ridgewater College property. Morgan Baum invited the City Council to the Creative Minnesota Report about the City of Hutchinson that is being released at a presentation on April 17, 2018, at 12noon and 5:00 p.m. at Ridgewater College. This presentation will unveil the results of a study on the size and impact of the nonprofit arts and culture sector in Hutchinson. Mayor Forcier liked the idea that was presented about sculptures that are constructed and then painted/designed by local artists and displayed. Motion by Czmowski, second by Lofdahl, to adjourn at 5:10 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, APRIL 10, 2018 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, Steve Cook and Chad Czmowski. Member absent was Mary Christensen. 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 Matt Jaunich asked that one item under 15.5 be added which is a special event request being held April 21, 2018. Motion by Lofdahl, second by Czmowski, to approve the agenda with the additional item noted. Motion carried unanimously. 2. INVOCATION — Seventh Day Adventist Church 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 14873 — Resolution Accepting $5000 Donation from Hutchinson Health Hospital Auxiliary to Hutchinson Fire Department (b) Resolution No. 14874 — Resolution Accepting $1000 Donation from Historic Hutchinson Matt Jaunich noted that the donation from the Hospital Auxiliary will be going towards fire department laundering and the donation from Historic Hutchinson is for the preservation project at the Depot. Motion by Lofdahl, second by Cook, to approve Resolution Nos. 14873 and 14874. Motion carried unanimously. PUBLIC COMMENTS (This is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be accepting public comments during the agenda item if nota public hearing. Ifyou have a question, concern or comment, please ask to be recognized by the mayor —stateyour name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, butplease refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL Mayor Forcier noted that if there are individuals in the audience that wish to address the Council regarding the invocation item, those comments will be taken when the Council discusses the topic later in the agenda. Morgan Baum, 925 Second Avenue SW, presented before the Council. Ms. Baum extended an invitation to the City Council and those in attendance and watching at home to a presentation by Sheila Smith from the Minnesota Citizens for the Arts on April 17, 2018, at CITY COUNCIL MINUTES APRIL 10, 2018 both 12noon and 5:00 p.m. at Ridgewater College. The presentation will cover the results of the Creative Minnesota study which is part of an ongoing series of research reports about the arts and culture sector in Minnesota. The Hutchinson study is one of fifteen local reports that have been released in the last few months. 6. APPROVAL OF MINUTES (a) Regular Meeting of March 27, 2018 Motion by Cook, second by Czmowski, to approve the 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 Hutchinson Jaycee Water Carnival Requests (b) Consideration for Approval of Issuing Transient Merchant License to Tina Novotny (c) Consideration for Approval of Issuing Transient Merchant License to Virginia Daniel (d) Consideration for Approval of Issuing Short -Term Gambling License to Crow River Cutters on May 21, 2018, at Main Street Sports Bar (e) Consideration for Approval of Issuing Carnival Permit to J&K Amusements May 31 — June 3, 2018, at Hutchinson Mall (f) Consideration for Approval of Engineering Services Agreement with Erickson Engineering Co. for 2nd Avenue SE Bridge Replacement Construction Inspection/Observation (g) Consideration for Approval of Authorizing $1,000 to Purchase Smart Cycling Quick Guides (h) Appointment of Steve Synstelien to Police Civil Service Commission to May 2021 (i) Claims, Appropriations and Contract Payments — Register A Motion by Czmowski, second by Cook, to approve Consent Agenda L Motion carried unanimously. 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B Motion by Czmowski, second by Lofdahl, with Forcier abstaining, to approve Consent Agenda IL Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. - NONE 2 CITY COUNCIL MINUTES APRIL 10, 2018 (Thepurpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. Includes items like monthly or annual reports and communications from other entities.) 10. HUTCHINSON POLICE SERVICES ANNUAL REPORT Dan Hatten, Chief of Police, provided the police department's annual report. Chief Hatten reviewed information pertaining to staffing which includes a total staff of 43 that is comprised of sworn officers, officers on patrol, community service officer, office and dispatch and hospital security. Accomplishments for 2017 included accomplishing end statements developed by the City Council, upgrading the civil defense siren system, police and fire training grounds improvement, implementation of body -worn camera and in -car camera program, implementing a departmental chaplaincy program, ordering a special response tactical vehicle and implementing responsive speed signs pilot project. Discussion was held regarding the police/fire training grounds. Chief Hatten noted that HPS employees averaged 81.9 training hours in 2017. Chief Hatten also provided data on calls for services, arrests, Part 1 crimes, citations/warnings, nuisance properties, hospital security, response times, vulnerable adult intakes, school liaison officer, child protection intakes, and Southwest Metro Drug Task Force. Chief Hatten reviewed goals for 2018 which included continuing to enhance the nuisance ordinance program, continuing to collaborate with other City departments and MnDOT to develop and prepare for the Hwy 15 construction project, review and updating the Hutchinson Police Services policy manual, completing a sergeant promotional process to fill the current vacancy and taking delivery and prep for service the Special Response Team vehicle. Mayor Forcier asked that newly hired officers come to a Council meeting to be introduced or in the alternative council member can attend the swearing in ceremony on April 18, 2018, to meet all new officers. UNFINISHED BUSINESS NEW BUSINESS 11. APPROVE/DENY RESOLUTION NO. 14875 — RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR 2018 WATEWATER LIFT STATION IMPROVEMENTS PROJECT (LETTING NO. 13, PROJECT NO. 18-13) Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that six bids were received for the 2018 wastewater lift station improvements project. The apparent low bid is from R&R Excavating of Hutchinson, Minnesota in the amount of $110,943. This project is accounted for within the City's proposed 2018 Infrastructure Improvement Program. The improvements include rehabilitation and upgrades to Otter Lake area wastewater lift station by construction of controls equipment/panel, wastewater pipe installation, structural modifications, site improvements and appurtenances. This project is part of an overall effort to standardize equipment in all of the City's lift stations. Nero Engineering, the City's consultant, has reviewed the bids and is recommending awarding the bid to R&R Excavating. Motion by Cook, second by Czmowski, to approve Resolution No. 14875. Motion carried unanimously. 12. APPROVE/DENY RESOLUTION NO. 14876 — RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR 2018 AIRPORT IMPROVEMENTS PROJECT (LETTING NO. 15, PROJECT NO. 18-15) CITY COUNCIL MINUTES APRIL 10, 2018 John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that this project includes site preparation and construction of an 8 -unit T -hangar. The project is eligible for being funded 90% by FAA, 5% by MnDOT Aeronautics and 5% by the City of Hutchinson. Acceptance of the low bid, submitted by Kraemer Trucking and Excavating in the amount of $802,266.25, is contingent upon receipt of federal and state grant funding. Assuming federal and state grant funding being approved, the project award is scheduled for June 3, 2018. Mr. Olson explained that at this point the site preparation portion of the project could be done with borrowing/repaying the City of Tracy $150,000 of AIP funds. AIP fund transfers from other airports would be needed to complete the building portion of the project concurrently. As an alternative, the City could wait on the building portion of the project until 2023, accumulate $450,000 of AIP entitlement, and borrow approximately $144,000 of AIP funds from another airport at that time. The request before the Council tonight is to accept the low bid contingent upon receipt of federal and state grant funding and enter into agreement with City of Tracy for entitlement transfer of $150,000 to be repaid with 2019 AIP funds. Motion by Cook, second by Lofdahl, to approve Resolution No. 14876 contingent upon the City receiving appropriate federal and state funding. Motion carried unanimously. 13. APPROVE/DENY RESOLUTION NO. 14852 — RESOLUTION APPROVING LOCAL BRIDGE REPLACEMENT PROGRAM GRANT AGREEMENT Kent Exner, City Engineer, presented before the Council. Mr. Exner explained the grant agreement associated with the Second Avenue SE Bridge Replacement Program in the amount of $427,275 which is approximately 40% of the construction bid amount. This project's total cost and associated funding contributions were reviewed by the Resource Allocation Committee and are accounted for within the City's proposed 2018 Infrastructure Improvement Program. Motion by Czmowski, second by Lofdahl, to approve Resolution No. 14853. Motion carried unanimously. 14. APPROVE DENY ORDINANCE NO. 18-785 - AN ORDINANCE AMENDING SECTION 30.18, "REGULAR MEETING ORDER OF BUSINESS" TO REMOVE THE INVOCATION (FIRST READING, SET SECOND READING AND ADOPTION FOR APRIL 24, 2018) Mayor Forcier allowed 10 minutes for public comments allowing each person two minutes to speak. Paul Baker, 864 Miller Avenue SW, presented before the Council. Mr. Baker noted that he is one of the pastors that has had the opportunity to provide the invocation to the Council over the years and he is in favor of keeping it on the agenda. Chuck Pierson presented before the Council. Although Mr. Pierson is the .19 CITY COUNCIL MINUTES APRIL 10, 2018 Chaplain of the Gideons, he noted he is speaking on a personal level. Mr. Pierson is in favor of keeping the invocation on the agenda. Jerry Messner, 935 Jorgenson Street, presented before the Council. Mr. Messner noted he is in favor of keeping the invocation on the agenda and his reasons why. Jack Sandberg, 571 Juul Road, presented before the Council. Mr. Sandberg noted he is in favor of removing the invocation from the agenda and his reasons why. Everett Hantge, 1400 Sherwood Street, presented before the Council. Mr. Hantge noted he is in favor of keeping the invocation on the agenda and his reasons why. Craig Bishop, 220 Freemont Avenue, presented before the Council. Mr. Bishop noted he is in favor of keeping the invocation on the agenda and his reasons why. Greg Curry, 955 Milwaukee Avenue, presented before the Council. Mr. Curry noted he is in favor of keeping the invocation on the agenda and his reasons why. Council Member Cook commented that he realizes that this is a sensitive subject and he respects that. He also noted that he has had good conversations with residents on this topic. Council Member Cook expressed that as an elected official of all residents of the city he feels that all should be included. He noted that although he considers himself a Christian, at times he feels uncomfortable during the invocation time. Council Member Cook noted that with the invocation, residents need to realize that a church that is less -liked in the community may be included in the rotation. Council Member Cook expressed that he feels the Pledge of Allegiance is the most appropriate opening for a government meeting. He does not believe that prayers should be part of meetings, and rather can be done privately on council members' own time. Council Member Lofdahl expressed that he is also uncomfortable with the invocation and although he is a non-christian, he is not opposed to other religions. His main concern is that there is a minority in the community that is not included in the invocation rotation and he feels that it is important that they are included. His main issue is that non-christians are not included or are not represented. His wish is that the ministerial association would bring the non-christians into the rotation. Council Member Lofdahl challenged the ministerial association to bring non-christians into the rotation. Two of the pastors in the audience accepted the challenge. Council Member Czmowski expressed that he does not necessarily have strong feelings on this topic, however he feels the majority of the public would like to keep the invocation and he feels that is important. Mayor Forcier commented that many prayers are said before events whether privately or publicly. He noted he would like to keep the invocation on the agenda. Matt Jaunich spoke of the process to change the agenda if the Council wishes which is done 5 CITY COUNCIL MINUTES APRIL 10, 2018 by ordinance, which requires two readings. The ordinance before the Council tonight can be considered as the first reading. Council Member Cook expressed that he supports the challenge given to the ministerial association to bring non-christians into the invocation rotation. He noted he would like to give that an opportunity first before moving forward with the proposed ordinance. Motion by Cook, second by Forcier, to deny Ordinance No. 18-785. Motion carried unanimously. 15. APPROVE/DENY CALLING SPECIAL MEETING TO COMPLETE STRATEGIC PLANNING SESSION ON APRIL 26, 2018, AT 2:30 P.M. Matt Jaunich, City Administrator, noted that there is a couple more hours of work to be done on Citiy's strategic plan. The remaining session is proposed to be held on April 26, 2018, at 2:30 p.m. at the fire hall. Motion by Lofdahl, second by Czmowski, to set special meeting to complete strategic planning session for April 26, 2018, at 2:30 p.m. at Fire Hall. Motion carried unanimously. 15.5 APPROVE/DENY "LEST WE FORGET" EVENT ON APRIL 21, 2018, AT VETERANS MEMORIAL PARK Chief Dan Hatten explained that Ron Mackedanz has arranged a special event, "Lest We Forget". The event marks the 50th anniversary of the disappearance of Ron's brother, Lyle E. Mackedanz, during the Vietnam War. The event intends to honor Mackedanz and five other crew members who went missing during the event. The event is scheduled to be held on April. 21, 2018, at Veterans Memorial Park from 1:00-3:30 p.m. The event organizers plan to have a special salute by having a Vietnam era Huey helicopter flyover and land at the site for the duration of the program. Motion by Czmowski, second by Cook, to approve "Lest We Forget" event on April 21, 2018. Motion carried unanimously. GOVERNANCE (The purpose oj this 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) 16. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS NHSCELLANEOUS 17. STAFF UPDATES Tim Gratke — Mr. Gratke, Wastewater Supervisor, spoke about the lift stations that go down when the power goes out. Gratke explained that a red beacon lights up and flashes when the power is out and the lift station needs service. Mr. Gratke communicated out to residents that if rel CITY COUNCIL MINUTES APRIL 10, 2018 they notice the red lights flashing to call the police department to make them aware because sometimes radio/communication systems are not 100% reliable. Kent Exner — Mr. Exner spoke about the Hwy 15/Main Street construction schedule. He noted that the downtown citizens group is currently working on landscape/streetscape plans. A public meeting is scheduled for early June to review the landscape/streetscape concepts and plans. Mr. Exner suggested that perhaps a Council workshop be held on this topic prior to the first Council meeting in June. Exner also spoke about the lack of right turn lanes northbound and southbound at Bluff Street/Hwy 7 East and how that was a MnDOT design issue. Matt Jaunich — Mr. Jaunich noted that an invitation is going out from Ridgewater College for April 2e at 6:00 p.m. for a Hutchinson Community Conversation. Another session may be held in the Fall. This Saturday is spring cleanup for white goods and hard goods. Mr. Jaunich also noted that he will be holding a "So You Want to be an Elected Official" seminar on May 10, 2018, at 5:00 p.m. in the Council Chambers. 18. COUNCIL/MAYOR UPDATE Steve Cook — Council Member Cook mentioned that all of the schools he has spoken to have agreed to distribute the Smart Cycling Quick Guides. Council Member Cook also expressed that he feels interpretive Signage should be added on the Founders Pathway leading to the statue. He reached out to the Hutchinson Community Foundation and they seemed interested in doing something along that area. Council Member Cook also asked Mr. Exner about parklets along Main Street as part of the new street scape design. Parklets are small seating areas or green spaces created as a public amenity on or alongside a sidewalk, especially in a former roadside parking space. Parklets can be used for outdoor dining. Exner noted that it appears that there is some willingness from a MnDOT staff member, however this would be a district decision. This topic can be brought up to the citizens group again as the design is continually reviewed. Gary Forcier — Mayor Forcier commented on the Senior Center fundraiser being held at the event Center. Mayor Forcier also asked John Olson how potholes could be reported. Olson noted that could be done through "Report a Problem" on the City's web site or by calling the street department. Staff is patching potholes when they are not plowing snow. ADJOURNMENT Motion by Czmowski, second by Forcier, to adjourn at 7:50 p.m. Motion carried unanimously. HUTCHINSON CITY COUNCIL ci=qf� Request for Board Action 7AL =-ft Agenda Item: Parade Permit Department: Police LICENSE SECTION Meeting Date: 4/24/2018 Application Complete Contact: Daniel T. Hatten Agenda Item Type: Presenter: Daniel T. Hatten Reviewed by Staff Consent Agenda Time Requested (Minutes): 2 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: I am in receipt of a letter from Van D. Karg and the Disabled Americans Veterans in partnership with the American Legion Post 96 and the VFW Post 906 in reference to the 2018 Memorial Day Parade. This request requires Hassan St be closed to public traffic between 3rd Ave SE and 1st Ave NE during the hours of 9:00 am to 10:00 am for the Annual Memorial Day Parade. My staff and I have reviewed the request and are confident that we can meet the needs of VFW Post 906 and American Legion Post 96. The Annual Memorial Day Parade and Program, will be held on Monday, May 28, 2018. The Parade will assemble in the east parking lot behind Landy Lodge Bar and Grill. The parade will begin at 9:30 am and proceed on Hassan St SE, North up to the McLeod County Veterans Memorial Park. The program in the park will begin at 10:00 am. In case of inclement weather, the program will be held at Christ The King Church. The Police Department looks forward to working with other city departments, the DAV, the VFW, and American Legion Post 96 to insure another safe and successful Memorial Day Parade and Program. The DAV, American Legion and VFW Posts are asking for the Hutchinson City Council to wave the parade permit fees based on the fact they are non-profit organizations organizing a community event honoring our military. BOARD ACTION REQUESTED: I recommend approval. Fiscal Impact: $ 1,000.00 Funding Source: Police FTE Impact: 6.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: City of 111 Hassan Street Southeast Hutchinson, NW 55350 (329)587-51511Fax:(320)2344240 City of Hutchinson APPLICATION FOR PARADE PERMIT (Under Ordinance No. 71.01) Permit Fee: $30 (short term) Date Received: W Y All applications must be received at least 30 days before event in order to be considered ization Organization Name ff Phone Number Organization Address Ci State Zi Authorized Officer and Parade Chairman Information +1 v7 D, Name it l r- :. dols ' Res Videne Address lJ�� v7 �.�•rC� Chairman Name iCtlr`kLd 464. Residehee Address �11;2-SCI --6A�3 Phone Number City •4n, "<2- � State Zip J')-79i:5�� Phone Number City ,State Zip Parade Information 7 Parade Date: I • , ct V AW 'fiIell Assembly Time:0 <?ao r Location and Description of Assembly Area:9E'f� Starting Time of Parade: Q �_ �� Estimated Time of Parader Starting Point of Parader f ►��, {' Route of Parade Travel: can [(� u ft -a6f a Pq . Iec Ending Point of Parade: /dc �edd �U 1r rr �� rdnj �rl�.rt4rirl �u� 7� Approximate Number of Units, Animals, and Vehicles which will constitute Parade: Type and Description of Animals and Vehicles: N h t 14 1 0 r, r T'4 Maximum Interval of Space to be Maintained Between Units: Lim i-- i P Maximum Length of Parade: 3 w ak 5 ll Minimum and Maximum Speed of Parade: • a ` -e..t_ C ^T MPH Portion of Street Width Traversed: de -A-t t .Q ` City of Hutchinson Application for Parade Permit Page 2 of 2 Checklist The following items need to be completed and/or attached in order for the application to be processed: Permit fee paid in full (check or money order): ❑ yes Wno Permit Application completed in full and signed: .(ves ❑ no 1 declare that the information I have provided on this application is truthful, and I authorize the City of Hutchinson to investigate the information submitted. /,)"j Af Signature or parade chairman Internal Use and Police if approved ❑ denied Notes: City Council ❑ approved ❑ denied Notes: City Engineer ❑ approved ❑ denied Notes: N JA Street Superintendent ❑ approved ❑ denied Notes: _NLA Date HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Resolution 14877 amending Resolution 14707 Department: Finance LICENSE SECTION Meeting Date: 4/24/2018 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 1 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OF AGENDA ITEM: Per State Statutes 435.193 and 435.195, senior citizens 65 years or older, disabled citizens, active duty military reserves or a active duty Minnesota national guard members may apply for deferred payment of special assessments for any homestead property. Deferral terminates upon either: (a) the death of the owner, provided that the spouse is otherwise not eligible for the benefits hereunder; (b) the sale, transfer or subdivision of the property or any part thereof; (c) if the property should for any reason lose its homestead status; or (d) if for any reason the taxing authority deferring the payments shall determine that there would be no hardship to require immediate or partial payment. In addition, City Policy number 2.14 allows senior citizens 65 years or older and disabled citizens to apply for reduced refuse rates. Citizens applying for either special assessment deferral or a reduced refuse rate must comply with income guidelines as defined by the US Department of HUD. HUD defines those guidelines for 2018 as $25,100 per year for one person and $28,700 per year for a married couple, joint tenants or tenants in common. The previous annual income guidelines for guidelines for 2017 were $24,750 per year for one person and $28,250 per year for a married couple Citizens must also comply with an asset limitation of $30,000, excluding the homestead and automobile. Each year Finance reviews the income guidelines by HUD and amends the established income guidelines via resolution. BOARD ACTION REQUESTED: Approve Resolution 14877 amending the established income guidelines & asset limitations for Senior and Disabled Citizens, Active Duty Military Reserves or National Guard deferred assessments and/or Seniors reduced refuse rate. 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 MIN RESOLUTION NO. 14877 AMENDING RESOLUTION NO. 14707 ESTABLISHING INCOME GUIDELINES & ASSET LINHTATIONS, FOR SENIOR CITIZENS 65 YEARS OR OLDER, DISABLED CITIZENS, ACTIVE DUTY NHLITARY RESERVES OR NATIONAL GUARD DEFERRED ASSESSMENTS AND SENIOR CITIZENS REDUCED REFUSE RATE WHEREAS, the Minnesota Statutes provide tax deferral of homestead property for senior citizens 65 years of age or older, or a person(s) on disability as defined by the Social Security Administration, or for members of the National Guard or military reserves in active service, for whom it would be a hardship to make payments, and WHEREAS, the home owner can make application for deferred payment of special assessments on forms which can be obtained from the City Administrator's office, and WHEREAS, the home owner/renter can make application for reduced refuse rate on forms which can be obtained from the City Administrator's office. NOW THEREFORE, the City Council has established the following income guidelines, asset limitations, and verification requirements for applications for deferred assessments and/or reduced refuse rates: To be granted to person(s) with a low income of $25,100.00 per year for one person and $28,700.00 per year for a married couple, joint tenants or tenants in common. 2. To be granted to person(s) with an asset limitation of not to exceed $30,000.00, excluding the homestead and automobile. Deferred assessments and/or reduced refuse requests may only be applied for if the following documents are submitted at the time of said application. A. Federal Income Tax Form 1040,1040A, 1040EZ; and B. Minnesota Property Tax Refund Form M-1PR Every two years the City can request said information to continue deferral of assessments or reduced refuse charges; existing deferred assessments and reduced refuse accounts shall submit the same documentation to continue the reduced charges. 4. The right of deferment is automatically terminated if: A. The owner dies and the spouse is not otherwise qualified; B. The property or any part thereof is sold, transferred, or subdivided; C. The property should lose its homestead status; or D. If for any reason the City determines that there would be no hardship to require immediate or partial payment. Adopted by the Hutchinson City Council this 241h day of April, 2018. ATTEST: Matthew Jaunich, City Administrator Gary Forcier, Mayor HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Short -Term Gambling License - Shady Lane Sportsmen Club Department: Administration LICENSE SECTION Meeting Date: 4/24/2018 Application Complete Yes Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff r� Consent Agenda Time Requested (Minutes): License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Shady Lane Sportsmen Club 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 June 15 & 16, 2018, at the McLeod County Fairgrounds in Hutchinson, Minnesota. 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 Shady Lane Sportsmen Club on June 15 & 16, 2018. 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: From:EGUMEN PINE 9 04iOEif2207$ 00:14 "v� I 11 Hassan Sum southeast Hutchinson, 55354 (320) 587-5151 Fax: (320) 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 #490 •F:U--2/004 All applications must be received at least 30 days before event in order to be considered ❑ Short Term Date(s) `e b' - _ _ Mont ear - ;auization Information I Name liuur esa VYl1GI C I V�;"'J !rleWWIN Uf a Irefd Federal or State ID: F q j ~ 15G-]-7 &$ Day and time of meetings? CX1 Is this organization organized under the laws of the Stat f Minnesota? W yes ❑ no How long has the organization been in existence? How may mernbers in the organization? r(} What is the purpose of the organization? ��r-,�� • k' I Ai V'�� a f_C-1410rj 11-N V] t' In whose custgdy will organization records be Yep491 Nak Phone Number v u -c Address ON State Zip Fee: $30.00 Phony eay SUM ,....... . , — - Du ::'u nzed:Dffice tlx ...... r o£ he:Drgat zaiiO4Inforivation True Name Phone Number Residence Address City State Zip Date of Birth: D I (,�, I tp Place of Birth: �� . 6-C .G_ Afonthldaylyear Cro State Have you ever been convicted of any crime other than a traffic offense? ❑ yes Kno If yes, explain: From:ECUMEN PINE 9 04/05/2078 08-15 #490 P_0031004 City of Hutchinson rfpplicali-for Gambling Devices License Pulte 2 nf3 VZs1J?AatN:..' am.. uqana erria i ie under AfinnesotaRarule s329 . f �] /Trite Name Phone Number Residence Address ll City j State zip Date of Birth: fG' 1 1 4' C� Place of Birth; MontWdaylyear City' Slate Have you ever been convicted of any crime other than a traffic offense? ❑ yes no If yas, cxIaa:n:- - ..How tong have you been a member of the nrnani7minn9 ; h: n :- ame. grrmatln Location #I Name of location where gam will be pl e Phone Number ` >"1 '' 1 � h i r ` )n 1 !iV � 3516 A ddress of location where grime Pill be played City State Zip Date(s) and/or day(s) gambling devices will be used: �� `] —1 �f through La AM AM Hours of the day gambling devices will be used: From - L' C,To - t � M — ,....,......--ter Maximum number of player: kn ( j r' Vt [ 4•� Will prizes be paid in money or merchandise? (,money © merchandise Will refreshments be served during the time the gambling devices will be used? Oyes © no If yes, will a char a be made for such refreshments? E] ves © no --- #2 Name of location where game will be played Phone Address of fetation where game will be played City State Zip Date(s) and/or day(s) gambling devices will be used: through AM AM Hours of the day gambling devices will he used: From pM To Maximum number of player: Will prizes be paid in money or merchandise? ❑ money ❑ merchandise Will refreshments be served during the time the gambling devices will be used? ❑ yes © no If yes, will a charge be made for such refreshments? 0 yes © no From:ECUMFN PINE City of -Hutchinson Application for Gambling Devices License Page 3 of 3 9 0410S/201& 10:47 0491 P_001/001 - ........... — --- --11 — Officers of;the Organization.{iffnecessar . list arditfoiaal.italries on. Seiairrate.s7re t} 0-e`er Cf Name Thle y Residence Address Crty State Zip Name Title Res'denee Address City State Zip 7 Name in Title - Residence A dress City State Zip game Residence Address Name Residence Address Name ResidenrP A.ddresv Title Ciry State Zip Title City Stale Zip Title Have d A a net ---d a laws, ordinances, and regulations governing the operation and use of gambling d; �iex�e; e�::;u,;d i rGity OF Hutchinson Ordinance -11 4.20 and lbii Gambling Manager �Ues © no Authorized Officer yes U no Initial Initial I declare that the information I have provided on this application is truthful, and I authorize the City of Hutchinson to itivesli ate t11 infomtation suhmitted_ Also; I have received from the Citi of Hkltchin�nn a cnny of the City Ordinance No. 114.20 relating to gambling and I will familiarize Signature of authorized officer of organization Signature of. manager of organization Ii�rernai'Use.:Cin'1 City Council U approved U denied Notes: Date - Date HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: 2018 Street Repairs - PO #19757 Department: Public Works LICENSE SECTION Meeting Date: 4/24/2018 Application Complete Contact: John Olson Agenda Item Type: Presenter: John Olson Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: For this year's miscellaneous street repair projects, price quote sheets were sent to: 1) Wm Mueller & Sons, 2) Duninck, Inc., and 3) Knife River, Inc. We received 2 price quotations from Wm Mueller & Sons and Duininck, Inc. To determine the low price, we applied current rates provided by the vendors to three randomly selected samples of actual invoices we received for street repairs conducted during the 2015 season. Based upon current pricing being applied to the three actual invoices, the low price was from Wm Mueller & Sons. Duininck, Inc. pricing was very close, but was just under 10% higher. Anticipated costs by department (based on 3 -year running average) are: $60,000 - Streets & Roadways (primarily for mill -patching and skim patches) $25,000 - Water (for restoration of pavements following system repairs) $ 3,000 - Storm Water (for restoration of pavements following system repairs) $ 1,500 -Cemetery $ 1,500 -Airport $ 1,500 - Wastewater (for restoration of pavements following system repairs) $92,500 - Total BOARD ACTION REQUESTED: Approve Purchase Order #19757 to Wm Mueller & Sons for $92,500 for 2018 miscellaneous street repairs. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 92,500.00 Total City Cost: $ 92,500.00 Funding Source: Various departments Remaining Cost: $ 0.00 Funding Source: r Purchase Order Number ' 'tPAMILM PURCHASE REQUISITION L 1 1 1 9 1 7 1 5 1 7 Department: Various - see below Account #: 54360 Date: 04/09/18 Subm.ltted;lpy:: John Olson Check the Appropriate Box. Is Item Budgeted ❑ YES ❑ No If not budgeted, where will the money come from? Department- Flead iris for Finance Director City Administrator VENDOR INFORMATION Invoice To: Aiiil: Public Works Department John Olson 1400 Adams St SE Hutchinson MN 55350 Shipping Address City of Hutchinson Public Works 1400 Adams St SE Hutchinson, tc son, MN 55350 Vendor: Address Wm Mueller &Sons Contact 1Varris: Phone No:: Corey H 831 Park Ave 952.467.2720 PO Box 247 ... .... ... Fax Na, Hamburg, MN 55339 E=Mail . Check if only source available and state reason ❑ check Box ORDERING INFORMATION QUANTITY UNITS DESCRIPTION UNIT PRICE TOTAL 1 LS Streets & Roadways: 100-4302-54360 60,000.00 $60,000.00 1 LS Water: 601-4944-54360 25,000.00 $25,000.00 1 LS Storm Water: 652-4946-54360 3,000.00 $3,000.00 1 LS Cemetery. 100-4901-54360 1,500.00 $1,500.00 1 LS Airport: 100-4902-54360 1,500.00 $1,500.00 1 LS Wastewater: 602-4645-54360 1,500.00 $1,500.00 Comparative price based on 3 past invoices was $2,053 LOWER than Duininck, Inc S.UI3TOTAL $92,500.00 TAX (7,375%) SHIPPING: TOTAL DUE $92,500.00 List additional quotes and comments on the reverse side of this form. (You may attach quote sheets if available). Receiving Information: Date. Received Received By Invoice Amount Verified By 19757 -04 -09 -2018 -PR -Wm Mueller & Sons.xlsxPage 1 of 2 VENDOR INFORMATION Vendor: Duininck, Inc. Contact Name Lucas Post Address 408 6th St Phone. No, PO Box 208 Fax.No. Prinsburg, MN 56281 E=Mall ORDERING INFORM QUANTITY UNITS DESCRIPTION UNIT PRICE TOTAL 1 LS Streets & Roadways: 100-4302-54360 60,000.00 $60,000.00 1 LS Water: 601-4944-54360 25,000.00 $25,000.00 1 LS Storm Water: 652-4946-54360 3,000.00 $3,000.00 1 LS Cemetery: 100-4901-54360 1,500.00 $1,500.00 1 LS Airport: 100-4902-54360 1,500.00 $1,500.00 1 LS Wastewater: 602-4645-54360 1,500.00 $1,500.00 Comparative price based on 3 past invoices was $2,053 HIGHER than Wm Mueller & Sons SUBTOTAU $92,500.00 TAX {7.375% SHIPPING TOTAL. DUE $92,500.00 VENDOR INFORMATION Vendor: Contact Name Address Phone No. ................: Fax No. E-Mail ORDERING INI-ORMATION QUANTITY UNITS DESCRIPTION UNIT PRICE TOTAL SUBTOTAL TAX (6.875°Io SHIRpINO TOTAL .DU 19757 -04 -09 -2018 -PR -Wm Mueller & Sons.xlsx Street Patching & Repair Work Conditions 1. Contractor is responsible for traffic control/warning devices necessary to protect vehicles and pedestrians. Contractor is responsible to protect uncured pavement. 2. Bituminous edges to be saw cut edges or milled back to sound pavement. Tack coat to be installed when patching. 3. Excess material to be disposed of as directed by the City, either at Creekside Soils or the City's Public Works facility. 4. Install to match existing mat or a minimum of 4 inches of 41/31 Bituminous Mix (PG 58-28) or equivalent. 5. Compact aggregate base material prior to patching. Compact pavement following patch to assure a smooth transition between existing and new pavement. 6. Maintain the worksite in a clean, neat manner. Ensure all debris at the repair site is removed and disposed of before submitting an invoice for the work. 7. Work to be completed as soon as is practicable after the City issues a work order. Contractor must notify City if repairs will be delayed more than two weeks. 8. Work to be invoiced to the City using time and materials. Invoices are to provide detail for each individual location identified on work requests, Rates, Pricing and Payments 1. Work is to be invoiced to the City using items listed below, plus other items at time and materials, Invoices are to provide detail for each individual location. 2. Aggregate and bituminous materials pricing does not include trucking, Trucking is to be accounted for on an hourly basis. 3. All equipment rates are to include operator and fuel. 4. Prices below are for the year. Prices may be subject to changes in fuel or bituminous prices. Modified pricing is to be agreed upon separately. 5. Subcontracted work, if authorized by the City, is to be billed at cost plus 5%. The subcontractor's name, contact information, and invoice/pricing is to be included. Wm Mueller & Sons, Duininck, Inc., Hamburg, MN Prinsburg, MN Hourly Labor Rates Hourly Labor Rates FOREMAN $/hr $ 80.00 FOREMAN $/hr $ 84.00 LABOR - GENERAL $/hr $ 60.00 LABOR - GENERAL $/hr $ 65.00 LABOR -TRAFFIC CONTROL $/hr $ 60.00 LABOR -TRAFFIC CONTROL $/hr $ 65.00 Material Pricing Material Pricin¢ SELECT GRANULAR BORROW Ton $ 4.00 SELECT GRANULAR BORROW Ton $ 5,00 RECYCLED BITUMINOUS/CONCRETE Ton $ 8.85 RECYCLED BITUMINOUS/CONCRETE Ton $ 10.00 CLASS 5 100% CRUSHED LIMESTONE Ton $ 11,20 CLASS 5 100% CRUSHED LIMESTONE Ton $ 16,00 41/31 BITUMINOUS MIX (PG 58-28) Ton $ 55.00 41/31 BITUMINOUS MIX (PG 58-28) Ton $ 60,00 TACK OIL Gal $ 4,00 TACK OIL Ga.f $ 3.50 TOPSOIL, SCREENED CY $ 12.00 TOPSOIL, SCREENED CY $ 30,00 Hourly Equipment Rates Hourly Equipment Rates BACKHOE, CAT 320 OR EQUIVALENT $/hr $ 160.00 BACKHOE, CAT 320 OR EQUIVALENT $/hr $ 182.00 BACKHOE, CAT 330 OR EQUIVALENT $/hr $ 187.00 BACKHOE, CAT 330 OR EQUIVALENT $/hr $ 192.00 BACKHOE, TRACTOR -LOADER $/hr $ 120.00 BACKHOE, TRACTOR -LOADER $/hr $ 166.00 MOTOR GRADER $/hr $ 140.00 MOTOR GRADER $/hr $ 175.00 LOADER, CAT 966 OR EQUIVALENT $/hr $ 168.00 LOADER, CAT 966 OR EQUIVALENT $/hr $153.00 LOADER, CAT 970 OR EQUIVALENT $/hr $ 180.00 LOADER, CAT 970 OR EQUIVALENT $/hr $ 204.00 LOADER, CAT 980 OR EQUIVALENT $/hr $ 190.00 LOADER, CAT 980 OR EQUIVALENT $/hr 5204-00 SKIDSTEER LOADER $/hr $ 115.00 SKIDSTEER LOADER $/hr $ 105.00 SKIDSTEER LOADER, W/ MILL OR HAMMER $/hr $ 140.00 SKIDSTEER LOADER, W/ MILL OR HAMMER $/hr $ 164.00 DUMP TRUCK, SINGLE -AXLE $/hr $ 81.00 DUMP TRUCK, SINGLE -AXLE $/hr $ 110.00 DUMP TRUCK, TANDEM OR TRI AXLE $/hr $ 83.00 DUMP TRUCK, TANDEM OR TRI AXLE $/hr $ 110.00 DUMP TRUCK, QUAD OR QUINT AXLE $/hr $ 94.00 DUMP TRUCK, QUAD OR QUINT AXLE $/hr $ 110.00 TRUCK, WATER $/hr $ 110.00 TRUCK, WATER $/hr $ 105,00 TRUCK, ASPHALT DISTRIBUTOR $/hr $ 180.00 TRUCK, ASPHALT DISTRIBUTOR $/hr $ 129,00 PAVER, LEEBOY 8515 OR EQUIVALENT $/hr $ 295.00 PAVER, LEEBOY 8515 OR EQUIVALENT $/hr $ 383.00 PAVER, CAT AP600D OR EQUIVALENT $/hr $ 370.00 PAVER, CAT AP600D OR EQUIVALENT $/hr $ 383,00 PAVER, CATAP1000D OR EQUIVALENT $/hr $ 465,00 PAVER, CAT AP1000D OR EQUIVALENT $/hr $ 383.00 ROLLER, STEEL WHEEL $/hr $ 136.00 ROLLER, STEEL WHEEL $/hr $ 140.00 STREET SWEEPER, PICK UP TYPE $/hr $ 125.00 STREET SWEEPER, PICK UP TYPE $/hr $164.00 TRAILER, LOW BOY $/hr $ 176,00 TRAILER, LOW BOY $/hr $ 145.00 Comparative pricing based on actual past invoices: Wm Mueller & Sons, Duininck, Inc., Hamburg, MN Prinsburg, MN Single -axle dump 1.50 81.00 121.50 Single -axle dump 1,50 110,00 165.00 Quad/Quint axle 1.00 94,00 94,00 Quad/Quint axle 1,00 110.00 110.00 Steel roller 150 136,00 204,00 Steel roller L50 140,00 210.00 Asphalt Distributor 0.75 180.00 135.00 Asphalt Distributor 0,75 12900 96.75 Skid -steer loader 1.00 115.00 11500 Skid -steer loader 1.00 105.00 105.00 Skid -steer loader w/ mill or hammer 1.00 140,00 140,00 Skid -steer loader w/ mill or hammer 1.00 16400 164,00 Foreman 3.50 80,00 280.00 Foreman 3,50 84.00 294,00 Labor -General 11,50 60.00 690.00 Labor -General 11.50 65,00 747.50 Labor -Traffic 4.00 60.00 240,00 Labor -Traffic 4.00 65.00 260.00 41/31 Bituminous mix 2.00 55.00 110,00 41/31 Bituminous mix 200 60,00 120.00 Per Invoice #15-609 11/06/15 2,129.50 2,27425 Single -axle dump 4.00 81.00 324-00 Single -axle dump 4.00 110.00 440.00 Quad/Quint axle 3,00 94.00 282.00 Quad/Quint axle 3.00 110.00 330,00 Quad/Quint axle 3.00 94.00 282.00 Quad/Quint axle 3.00 110.00 330.00 Tandem or tri -axle 3,00 83.00 249,00 Tandem or tri -axle 3,00 110,00 330.00 Tandem or tri -axle 3.00 83.00 249.00 Tandem or tri -axle 3.00 110,00 330.00 Leeboy 8515 Paver 2.00 295.00 590,00 Leeboy 8515 Paver 2.00 383.00 766.00 Steel roller 5.00 136,00 680.00 Steel roller 5.00 140.00 700.00 Asphalt Distributor 2.00 180.00 360.00 Asphalt Distributor 2.00 129.00 25800 Skidsteer loader 4.00 115.00 460.00 Skidsteer loader 4.00 105.00 420,00 Skidsteer loader w/ mill or hammer 1.00 140,00 140.00 Skidsteer loader w/ mill or hammer 1.00 164.00 164.00 Foreman 8-00 80.00 640.00 Foreman 8.00 84.00 672.00 Labor -General 50,00 60,00 3,000,00 Labor -General 50,00 65.00 3,250,00 41/31 Bituminous mix 67.00 55.00 3,685.00 41/31 Bituminous mix 67.00 60,00 4,020.00 Per invoice 915-385 09/12/15 10,941.00 12,010.00 Single -axle dump 4.50 81.00 364.50 Single -axle dump 4.50 110_00 495.00 Quad/Quint axle 3,00 94.00 282.00 Quad/Quint axle 3,00 110.00 330,00 Quad/Quint axle 3.00 94,00 282.00 Quad/Quint axle 3.00 110,00 33000 Leeboy BS 15 Paver 4.00 29500 1,180,00 Leeboy 8515 Paver 4.00 383.00 1,532.00 Steel roller 3.75 136.00 510_00 Steel roller 3.75 140.00 525.00 Asphalt Distributor 2,00 180,00 36000 Asphalt Distributor 2,00 129-00 25800 Skidsteer loader 3.50 115.00 402.50 Skidsteer loader 3.50 115.00 402.50 Skidsteer loader w/ mill or hammer 3.50 140.00 490.00 Skidsteer loader w/mill or hammer 3.50 16400 574.00 Lowboy trailer 1;00 176,00 176,00 Lowboy trailer 1.00 145.00 145,00 Foreman 7.00 80,00 560.00 Foreman 7,00 84.00 588.00 Labor -General 13,75 60.00 825,00 Labor -General 13.75 65,00 893-75 41/31 Bituminous mix 40.00 55.00 2,200,00 41/31 Bituminous mix 40.00 60-00 2,400,00 Per invoice N15-687 09/30/15 7,632.00 8,473.25 Total of 3 representative invoices 20,702,50 22,75550 Street Patching & Repair Work Conditions 1. Contractor is responsible fort raffic control/warningdevices necessary to protect vehicles and pedestrians. Contractor is responsible to protect uncured pavement. 2. Bituminous edges to be saw cut edges or milled back to sound pavement. Tack coat to be installed when patching. 3. Excess material to be disposed of as directed by the City, either at Creekside Soils or the City's Public Works facility. 4. Install to match existing mat or a minimum of 4 inches of 41/31 Bituminous Mix (PG 58-28) or equivalent. 5. Compact aggregate base material prior to patching. compact pavement following patch to assure a smooth transition between existing and new pavement. 6. Maintain the worksite in a clean, neat manner. Ensure all debris at the repair site is removed and disposed of before submitting an invoice for the work. 7. Work to be completed as soon as is practicable afterthe City issues a work order, Contractor must notify City if repairs will be delayed more than two weeks. 8. Work to be invoiced to the City using time and materials. Invoices are to provide detail for each individual location identified on work requests. Rates, Pricing and Payments 1. Work is to be invoiced to the City using items listed below, plus other items at time and materials. Invoices are to provide detail for each individual location. 2. Aggregate and bituminous materials pricing does not include trucking. Trucking is to be accounted for on an hourly basis. 3. All equipment rates are to include operator and fuel. 4. Prices below are for the year. Prices may be subject to changes in fuel or bituminous prices. Modified pricing is to be agreed upon separately. S. Subcontracted work, if authorized by the City, is to be billed at cost plus 5%. The subcontractor's name, contact information, and invoice/pricing is to be included. ESCRIPTION DUNIT E DESCRIPTION Hourly Labor Rates Hourly Equipment Rates (Cont.) FOREMAN $/hr $ 80.00 MOTOR GRADER $/hr $ 140.00 LABOR - GENERAL $/hr $ 60,00 LOADER, CAT 966 OR EQUIVALENT $/hr $ 168.00 LABOR - TRAFFIC CONTROL $ 60.00 LOADER, CAT 970 OR EQUIVALENT $/hr $ 180.00 Material Pricing LOADER, CAT 9800REQUIVALENT $/hr $ 190.00 SELECT GRANULAR BORROW Ton $ 4.00 SKIDSTEER LOADER $/hr $ SKIDSTEER LOADER, W/ MILL OR HAMMER $/hr $ 115.00 140.00 RECYCLED BITUMINOUS/CONCRETE Ton $ 8,85 DUMP TRUCK, SINGLE -AXLE $/hr $ 81,00 CLASS 5 100% CRUSHED LIMESTONE Ton $ 11.20 DUMP TRUCK, TANDEM OR TRI AXLE $/hr $ 83.00 41/31 BITUMINOUS MIX (PG 58-28) Ton $ 55.00 DUMP TRUCK, QUAD OR QUINT AXLE $/hr $ 94.00 TACK OIL Gal $ 4,00 TRUCK, WATER $/hr $ 110.00 TOPSOIL, SCREENED CY $ 12.00 TRUCK, ASPHALT DISTRIBUTOR $/hr $ 180.00 Hourly Equipment Rates PAVER, LEEBOY 8515 OR EQUIVALENT $/hr $ 295.00 BACKHOE, CAT 3200R EQUIVALENT SF $ 160.00 PAVER, CATAP600D OR EQUIVALENT $/hr $ 370.00 BACKHOE, CAT 330 OR EQUIVALENT SF $ 187.00 PAVER, CAT AP1000DOR EQUIVALENT ROLLER, STEEL WHEEL $/hr $ 465.00 BACKHOE, TRACTOR -LOADER SF $ 120.00 STREET SWEEPER, PICK UP TYPE $/hr $ $/hr $ 136.00 125.00 DOZER, CAT D4 OR EQUIVALENT $/hr $ 145.00 TRAILER, LOW BOY $/hr $ 176.00 DOZER, CAT DS OR EQUIVALENT $/hr $ 157.00 DOZER, CAT D6 OR EQUIVALENT $/hr $ 173.00 WM. Mueller and Sons, Inc 831 Park Ave. PO Box 247 Hamburg, MN 55339 ,. - 1of3 ESTIMATE #: 275216 V* PREPARED BY: Lucas Post DuININCK PHONE: (320) 235-3318 INCORPORATE© FAX: (320) 978-4978 408 6th St. PO Box 208 Prinsburg, MN 56281 EMAIL: lucasp@duininck.com An Equal Opportunity Employer www.duininck.com JOB NAME HUTCHINSON 2018 STREET PATCHING & DATE: 4/6/2018 REPAIR WORK CONTACT NAME: Unknown SOLD TO: HUTCHINSON, CITY OF OFFICE # (320) 587-5151 FAX _# (320) 234-4240 BILL TO: 111 HASSAN ST. SE JOB LOCATION: HUTCHINSON, MN 55350 USA WE PROPOSE HEREBY TO FURNISH THE MATERIAL & LABOR - COMPLETE IN ACCORDANCE WITH SPECIFICATIONS: Item Description Estimated Quantity Unit Unit Price FOREMAN 1.00 HR $84.00 LABOR - GENERAL 1.00 HR $65.00 LABOR - TRAFFIC CONTROL 1.00 HR $65.00 41/31 BITUMINOUS MIX (PG 58-28) 1.00 TON $60.00 TACK OIL 1.00 GAL $3.50 CLASS 5 100% CRUSHED LIMESTONE 1.00 TON $16.00 RECYCLED BITUMINOUS/CONCRETE 1.00 TON $10.00 SELECT GRANULAR BORROW 1.00 TON $5.00 TOPSOIL, SCREENED 1.00 CY $30.00 SKIDSTEER LOADER, W/ MILL OR HAMMER 1.00 HR $164.00 SKIDSTEER LOADER 1.00 HR $105.00 LOADER, CAT 966 OR EQUIVALENT 1.00 HR $153.00 LOADER, CAT 970 OR EQUIVALENT 1.00 HR $204.00 LOADER, CAT 980 OR EQUIVALENT 1.00 HR $204.00 DUMP TRUCK, SINGLE -AXLE 1.00 HR $110.00 DUMP TRUCK, TANDEM OR TRI AXLE 1.00 HR $110.00 DUMP TRUCK, QUAD OR QUINT AXLE 1.00 HR $110.00 TRAILER, LOW BOY 1.00 HR $145.00 TRUCK, ASPHALT DISTRIBUTOR 1.00 HR $129.00 TRUCK, WATER 1.00 HR $105.00 PAVER, LEEBOY 8515 OR EQUIVALENT 1.00 HR $383.00 PAVER, CAT AP600D OR EQUIVALENT 1.00 HR $383.00 PAVER, CAT AP1000D OR EQUIVALENT 1.00 HR $383.00 ROLLER, STEEL WHEEL 1.00 HR $140.00 STREET SWEEPER, PICK UP TYPE 1.00 HR $164.00 MOTOR GRADER 1.00 HR $175.00 BACKHOE, CAT 320 OR EQUIVALENT 1.00 SF $182.00 BACKHOE, CAT 330 OR EQUIVALENT 1.00 SF $192.00 BACKHOE, TRACTOR -LOADER 1.00 SF $166.00 Notes: • THIS ESTIMATE DOES NOT INCLUDE PREVAILING WAGE RATES. • Quote ONLY good for 20 Days without verbal commitment or mutually agreed upon extension. Please review & respond ASAP. DI Requires min. 2 weeks notice to start construction unless mutual agreement has been agreed upon. + Duininck, Inc. hereby certifies that it complies with each of the minimum criteria in Minn. Stat. 16c.285, subd. 3. Duininck, Inc. will obtain and submit signed verifications from each of its retained lower -tier subcontractors, confirming compliance with Minn. Stat. 16C.285, subd. 3, within 14 days of retaining the subcontractors 1of3 va ESTIMATE #: 275216 PREPARED BY: LUCdS Post DuININCK PHONE: (320) 235-3318 4F INCORPORATED FAX: (320) 978-4978 408 6th St. PO Box 208 Prinsburg, MN 56281 EMAIL: lucasp@duininck.com An Equal Opportunity Employer www.duininck.com JOB NAME HUTCHINSON 2018 STREET PATCHING & DATE: 4/6/2018 REPAIR WORK CONTACT NAME_ Unknown SOLD TO: HUTCHINSON, CITY OF OFFICE # (320) 587-5151 FAX # (320) 234-4240 BILL TO: 111 HASSAN ST. SE LOB LOCATION: HUTCHINSON, MN 55350 USA Payments to be made as follows: Monthly Progress Payments Payment Type ❑ Check ❑ Credit Card Interest charge of 1.5% will be charged 30 days after invoice. Send Checks to above address. Authorized Credit Card Authorization ( To be charged monthly ) Signature Number: Expiration Date: Name on Card: Type: Visa MC Note: This proposal may be withdrawn by Duininck Incorporated if not accepted WITHIN 20 DAYS. Authorization: Forintemal Use Only _ Signature to endorse the contract The above prices, Job Start Date: conditions, specifications, & payment terms are hereby accepted. You Job Completion Date: are authorized to do the work as specified. Job Number: Date: 2of3 4FDuININCK INCORPORATED 408 6th St. PO Box 208 Prinsburg, MN 56281 An Equal Opportunity Employer ESTIMATE #: 275216 PREPARED BY: Lucas Post PHONE: (320)235-3318 FAX: (320)978-4978 EMAIL: lucasp@duininck.com www.duininck.com Additional Terms & Conditions of this Contract: (a) Any person or company supplying labor or materials for this improvement to your property may file a lien against your property if that person or company is not paid for the contributions. (b) Under Minnesota law, you have the right to pay persons who supplied labor or materials for this improvement directly and deduct this amount from our contract price, or withhold the amounts due them from us until 120 days after completion of the improvement unless we give you a lien waiver signed by persons who supplied any labor or material for the improvement and who gave you timely notice. (c) You agree to pay reasonable costs of collection, including attorney's fees, if payment is not made when due according to the terms agreed to within this contract. (d) All material is guaranteed to be as specified. All work to be complete in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become extra charges over and above the estimate. All agreements are contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado and other necessary insurance. Duininck Incorporated employees are fully covered by Workers Compensation Insurance according to all applicable statutes. Additional Information and Diagrams: 3 of 3 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Purchase Order - WWTF HVAC System Upgrade (Boiler Replacement) Department: Public Works LICENSE SECTION Meeting Date: 4/24/2018 Application Complete Contact: Kent Exner/Tim Gratke Agenda Item Type: Presenter: Kent Exner Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The operation and reliability of the boiler in the Administration Building at the WWTF has been an issue for many years. This boiler controls the heating and air tempering for both the Administration Building and the Pretreatment Building air exchangers. The maintenance and repair of this system has cost the plant in excess of $60K over the last 3 years alone. Several vital components of the boiler need to be replaced on a quarterly basis to maintain operation and this still leaves us with issues of untimely failures during winter operations. The problem has been diagnosed to be the type and design of the boiler and its being unsuitable for the use in which it is applied. This Fulton Pulse gas boiler is best operated in series with several other boilers in which it can operate at or near burner full fire for extended periods of time or shut down for long periods when not needed. In its present demand of operation, the existing boiler is asked to fire and run for a period of 3 to 4 minutes, often at low fire; and cycle operation 6-8 times an hour. This operational status leads to constant fouling of the ignition and burner chamber. A similar sized boiler with greater ability to turn down the heating capacity efficiently is needed for the range of heating demand that occurs with this system. Recommendations and price quotes have been sought over the past year in an effort to find the correct remedy to this operational demand. We obtained this information from both our new contract repair and maintenance provider (AR Engh of Cokato) and TEK Mechanical of Hutchinson. Each contractor provided similar remedies with differing boilers and equipment to achieve the same outcome. We believe that the Lochinvar Crest boiler with its 25:1 turn down ability to be the best fit to the situation with the least amount of equipment replacement and at the lowest overall cost. Thus, we recommend that the attached purchase order to TEK Mechanical Service Inc. be approved in the amount of $73,954.00. BOARD ACTION REQUESTED: Approval of Purchase Order to TEK Mechanical Service Inc. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 73,954.00 Total City Cost: $ 73,954.00 Funding Source: Wastewater Fund Remaining Cost: $ 0.00 Funding Source: QUANTITY UNITS DESCRIPTION city TOTAL Purchase Order Number PURCHASE ORDER 1 9 7 6 3 $71,354.00 $2,600.00 $71,354.00 $2,600.00 Department: Wastewater Account #: 602-4945-90530 Date, 4/16/2018 Submitted by: Tim Gratke Check the Appropriate Box. Is Item Budgeted YES ❑ NO If not budgeted, where will the money come from? Department Director Finance V city Head Director Administrator VENDOR INFORMATION $73,954.00 Invoice To: City Center Shipping Address Hutchinson F, Attn: 111 Hassan St. SE Attn: Tim Gratke Hutchinson MN, 55350 1300 Adams St. 5E Hutchinson, MN 55350 Vendor: TEK Service Inc. Contact Name Jeff Woods Address 220 5th Avenue NW Reference No. Hutchinson, MN 55350 Phone No. 320-587-2779 Fax No 320-587-9519 Customer ID Check if only source available and state reason ❑ Check Box 2 ORDERING INFORMAT10N QUANTITY UNITS DESCRIPTION UNIT PRICE TOTAL Lockinvar Crest 2-MBTU boiler and mech. installation Electrical installation of boiler and equipment $71,354.00 $2,600.00 $71,354.00 $2,600.00 Wt 2018 CIP item WWTF 04 - HVAC System Upgrade C11% of H nano -Wastewater administration building boiler replacement N / 8 2018 tchW gTOTAL . TAX (6.$75% SHIPPING TOTAL DUE $73,954.00 $73,954.00 List additional quotes and comments on the reverse side of this form. (You may attach quote sheets if available). Receivin.9 Information: Date Received Received By Invoice Amount Verified By f Ja ] Best Tire CorctpiaEe Solution Hutchinson Waste Water Plant WE HEREBY SUBMIT AN ESTIMATE TO: Best option for available room and turn down ratio Install 1- Lockinvar Crest 2 million BTU boiler To: Location 2/27 2205th Avenue NW Hutchinson, MN 55350 Ph: (320) 587-2779 Fx: (320) 587-9519 ,,2v)w.tekmechanica1corn tek@hutchtei.net Job Name/No. Perform an evaluation of existing cooling unit, if repair is cost effective then just replace economizer and perform any minor repairs if needed. Otherwise replace unit with new 10 ton heating/cooling rooftop unit. Higher seer unit would be optional. This Is always debatable with rooftop units and the length of Minnesota's cooling season. Boiler $71,354.00 Rooftop replace $12,100.00 (If only economizer is need change to $1,485.00 any other repairs would be T$M) Evaluation $ 450.00 CE:lectrical $ 2,600.00 ; 1� Controls (estimate) $ 2,400.00b (crn ��c;�s y o� S Add for high eff ` WE PROPOSE hereby to fiuvinh materials and labor Payable as Mows: zq%Down on Accentance & Balance Due Uoon Comeletion Authorized Signature `NOTE: This proposal may be withdrawn by us if not accepted within 30 days. All matedslialersrantaedtobaa.spacftd. AlwwktobrcompleftdinswrnkrnsnlHumannora=rdlnitostmWvr4prat:u..lu�yikrratlonord�rktbnhom�lwwq,+eclR�tbrainvd+rk�utea mats w5 be aaecutad upon wrlttan orders and wIN bemme an extra chars over and abwu the utknots. Ail asreemenp wndr4wt upon atrlm, awWentswdelwo beyond a wntrd. Owner to tartyfks,tornadoandoth newacarykwkama. Ourwa omarefupvcanedtry Workmen's Lomp"t#Oorrinnaanw. `iaiAny pe wcompoeywpplyftlobworraatrWsTorttdsknprwwneettoyoarpi"w nrylreaVan apkM7=rpro"MNOW parsonorcowp@Mftsotpoldfor the cor"rttom I(b)LkdorMWaeeeotslaw, you have dwrkhttopay parson who wppWtaborormauftbfor lMeknprwrnutdkadtfrmod deftatk comatbmamcoritradpNn,erwfthka *4 ame" duo frac til uatA = don agar mapletlon of tks irapmAment salvo we IMa you a Not walrer skmW by parwn who wrpo*d any bd w or reatmW for tkekaprovaast sad who E Pre ya tlmaly astir:.' ACCEPTANCE OF PROPOSAL - The prices, specifications and conditions are satisfactory and hereby accepted. You are authorized to work as specified. Payment will be made as outlined above. Customer Signature Date cc!P%�K&ST 'f ENS I N G BOILER palm ` �u C CON•X•US"�' REMOTE CONNECT MODBUS AND BACnet MSTP PROTOCOL CASCADING SEQUENCER WITH CASCADEREDUNDANCY 6 INPUTS FROM 750,000 TO 2.0 MILLION BTU/HR UP TO 25.1 TURNDOWN RATIO DIRECT -VENTING UP TO 100 FEET USING PVC, CPVC, POLYPROPYLENE OR STAINLESS STEEL FLEXIBLE FLOW RATES UP TO 350 GPM FRONT END LOADING CAPABILITY Cr i :ST ► III A Registered under U.S. Patent #9,746,176 —It-Locliflivar �jw DESIGNED * ENGaf UED * ASSMfjt[i HIGH EFFICIENCY BOILERS 9 WATER HEATERS Lo chin var. com THE CREST COMBUSTION SYSTEM CREST boilers are equipped with a top -mounted micro -metal fiber burner, engineered specifically for fire -tube technology. The system is designed to ensure smooth, quiet modulating combustion with up to 25:1 turndown. A FBN-2001 fires at its maximum 2,000,000 Btu/hr rate when the heat load is highest, and then gradually turns down to as tow as 4% (80,000 Btu/hr) as load decreases. A modulating system runs smoothly and efficiently, without frequent on/off cycling. When the system is zoned, CREST's high turndown works to match the actual system demand. In return, CREST reduces the customer's fuel bill and provides better comfort by toad -matching the heat loss of the system. REDUCE INSTALLATION COST WITH VARIABLE FLOW TECHNOLOGY CREST can operate over a wide range of flow rates with very low pressure drop. This permits installation of a full flow (variable primary) system. Installation is streamlined, without the time and materials cost of primary/secondary piping, and pumps needed to maintain flow in a water -tube boiler. Variable flow also makes CREST more flexible at handling frequent fluctuations in the system flow rate. HIGH EFFICIENCY WITH MINIMUM SUPPLY PRESSURE CREST operates reliably with supply gas pressure as low as 4 inches water column. Negative Regulation technology draws gas into a pre -mix combustion system, instead of relying on utility pressure through the gas valve. Operation is steady in low gas pressure systems or when peak gas supply demand occurs. Plus, Neg/Reg fan control fine-tunes the fuel/air ratio entering the burner, providing an even, cleaner -burning flame, achieving high combustion efficiency. HEAT ENERGYAND COMBUSTION PRODUCTS FLOW DOWNWARD INTO FIRE TUBES FROM THE BURNER FLOW -ENGINEERED HEAT EXCHANGER FOR OPTIMUM HEATTRANSFER HEATED WATER FLOWS UP AND OUT WITH MINIMAL PRESSURE DROP NON-METALLIC PC VENTING FLEXIBILITY FLUE OUTLET AND CONDENSATE DRAIN ATTHE B01TCM LOW 40x E� I I 1 i 11 Mh, SUPERIOR FIRE -TUBE HEAT EXCHANGER DESIGN BOOSTS THERMAL EFFICIENCY The CREST boiler takes fire -tube technology to a new level. The patented Wave" configura- tion creates turbulence as flue gas products Flow down the tube, scrubbing the energy from the flue products. The Wave design also enhances the life of the heat exchanger by allowing the tubes to flex, so they operate stress free with none of the adverse effects suffered by traditional fire -tube boilers. Each fire tube is welded into the heat exchanger and surrounded by water, and the heat transfer process is enhanced by the water's counterflow. As water flows up inside the vessel, super -heated Flue products now down the fire tube. With one pass, heat is effectively captured, reaching condensing temperatures. At the top of the vessel, the combustion chamber is also water -backed for additional heat transfer. CREST BOILER EFFICIENCY 0.1l))PI FIRING RATEs — Efficiency @ 5% — Efficiency 9 50% — Efficiency@ 100% 70 80 90 100 110 120 130 140 150 160 170 WATER RETURN TEMPERATURE @ 10°F RISE r m im = ttoou 14-, � INTRODUCING BOILER PLANT CONTROL, FROM ANYWHERE, Crest features the next generation of Lochinvar's all -in -one SMARTTOUCHym operating control with the integration of the CON•X•US0 advanced technology. SMART TOUCH with CON•X•US provides outstanding functionality, and can be integrated directly into a Building Automation Systems via MGdbus and BACnet MSTP as standard equipment. And now, the CON•X•US mobile communication platform allows the SMART TOUCH to go where no other boiler has gone before. CON•X•US provides the ability to monitor and manage multiple Crest boiler plants without ever stepping into the mechanical rooms. CON•X•US will sem.. alerts via text or email notifying of changes in system status, and anytime,rlgtN anywhere, a user can check system status and re -program any boiler function. Once downloaded, the free CON•X•US mobile application allows for remote access to all SMART TOUCH functions using any intemet•capable device. PEACE OF MIND, WHEN IT MATTERS MOST Cascade Redundancy provides peace of mind because it helps ensure that a CREST boiler system will always deliver reliable performance with no downtime. If the lead boiler is turned off for maintenance, Cascade Redundancy automatically shifts the lead role to the second sequenced boiler. Up to eight CREST boilers can be sequenced using a 2 -wire daisy -chain connection. Cascade sequencing can be programmed for Lead -Lag or Efficiency Optimized operation. With Lead -Lag operation, one lead boiler modulates to capacity on demand. As load increases, the system then cascades to additional lag boilers in sequence. The first -on role shifts daily, distributing equal runtimes to each unit. In an Efficiency Optimized system (see illustration below), all boilers fire and modulate simultaneously at the same Btu(h�t rates. maxi . ' ' thermal efficiency. a__ Is 1 2 3 4 5 6 7 8 CREST BOILER DIMENSIONS AND SPECIFICATIONS LOW HIGH RELIEF VOLTAGE VOLTAGE VALVE H H;GH VOLTAGE LOW VOLTAGE VENT Q C GAS B AIR F O E G A 51DE BACK :Bv FBN07SI 50 154 96.2% 722 627 15:1 30' 49.1/2' 51' 13' 8.3/4' 23.3/4" 26-3/4' 1.3/8' 51.5/8' 11.7/8' MAN 1.1/4' 3' 6' 6' 1,766 1,560 FBN1001 50 1,000 96.2% 962 837 20:1 30' 49-1/2' 51' 13' 8-3/4" 23-1/8' 26-3/4' 6-1/2' 57-5/8' 11-7/B' 66-1/8' 1-1/4' 3' 6' 6' 1,838 1,596 FBN1251 63 1,250 96.2% 1,203 1,046 20:1 30' 49.1/2' 51.3/8" 13" 8-1/4' 21-5/8' 26.3/4' 6-1/2' 57-3/4' 11-7/8' 66-I/8' 1.1/4" 3- 6' 8' 1,975 1,648 FER1501 60 1,500 96.2% 1,443 1,255 25:1 30' 59.1/4' 62-3/8' 15-118. 9' 27.7/8' 26-7/8' 5-1/8' 611' 12-3/8' 65.3/11" 1-1/2' 4' B' 8' 2,307 1,961 FBN1751 70 1,750 96.2% 1,684 1,464 25:1 30' 58-3/4' 61.1/2. 15.1/8' 9' 27"1/8' 27' 5-1/8' 68' 12.3/8' 65.3/8' 1-1/2" 4' 8' 8' 2,458 2,017 FBN2001 80 1,999 96.2% 1,924 1,673 25:1 30' 58-3/4" 61-1/2' 15.1/8' 9' 26.3/4` 27' 5-1/6' 68" 12-3/8' 65-3/8' 1-1/2' 4' 8' 8' 2,570 2,087 IYOrEs: lndoarinsfolfatron oe+y. Change "N"to "[" for LP ga mode+sand to "O' for duof fuel models. (Consulr J retry jorovnilobifiry o/Dual Fuei models) 'The NeiAHRI ftw Ratings shown are BoseG on a pip;ng and p,�i�,p uflownnrr of 1. +5_ •+njarmaNan su5jea m chcnge v�7hour no+ice, Variable Speed Boiler Pump System Sensor SMARTTOUCHT° FEATURES Electrical Options (Shipped Loose): CODES & REGISTRATIONS > Last 30 Lockouts CON•X•US Remote Connect Three Pump Control ANSI 221.13/CSA Certified > 480V/30/60Hz SMARTTOUCH Touchscreen Operating Control > System Pump ASME Certified, "H" Stamp / National Board Low -Voltage Terminal Strip Full -Color 8" Touchstreen LCD Disptay r Boiler Pump California Code Compliant 5OutdoorAirReset Curve Sulltdn Cascading Sequencer for up to 8 Boilers > Domestic Hot Water Pump (SDI J Factory Mutual / GE Gap Compliant having unusual piping and pickup requirements, such aslntemittent > Built-in Redundancy High Voltage Terminal Strip Canadian Registration Number (CRN) Zero Clearances to Combustible Materials > Cascade Multiple Sized Boilers s 120 VAC / 60 Hertz / i Phase Power Supply South Coast Air Quality Management District Qualified > Lead/Lag Cascade > System Pump, Boiler Pump and DHW Pump Power AHRI Cerlified ) Efficiency Optimized Cascade low -Voltage Terminal Strip Front -End Loading Capability with Copper -Fin Ife > 24 VAC Auxiliary Device Relay STANDARD FEATURES and Power -Fin® Boilers > Auxiliary Proving Switch Contacts 96.2% Thermal Efficiency (AHRI) Building Management System Integration > Alarm on Any Fa€kure Contacts Up to 99% Thermal Efficiency in Low -Temp. Applications with 0-10 VDC Input > Runtime Contacts Modulating Burner with up to 25:1 Turndown BACnet MSTP Communications > DHW Thermostat Contacts Direct -Spark Ignition Modbus Communication > Unit Enable/Disable Contacts Low NOx Operation Outdoor Reset Control with Outdoor Air Sensor > System Sensor Contacts Sealed Combustion Password Security > DHW Tank Sensor Contacts Air Inlet Filter w/Replacement Reminder Domestic Hot Water Prioritization > Outdoor Air Sensor Contacts Low Gas Pressure Operation > DHW tank piped with priority in the boiler loop > Cascade Contacts Vertical and Horizontal Direct Venting > DHW tank piped as a zone in the system with the > 0-10 VDC BMS External Contra( Contact > Direct Vent up to 100 Feet pumps controlled by the Smart System > 0-10 VDC Variable Speed Boller Pump Control Contact > PVC, CPVC, Polypropylene or AL29-4C > DHW Modulation Limiting ASME "H" Stamped Heat Exchanger > Separately Adjustable SHJDHW Switching Times OPTIONAL EQUIPMENT 316L Stainless Steel Fire Tubes Low Water Flow Safety Control & Indication Alarm Bell 160 psi Working Pressure Intel & Outlet Temperature Readout F P t tl BMS Gateway - BACnet IP or LonWorks On/Off Switch reeze To ec on Wireless Outdoor Temperature Sensor Adjustable High Limit with Manual Reset Service Reminder Condensate Neutralization Kit Low Water Cutoff with Manual Reset & Test Time Clock SMART TOUCH PC Software High & Low Gas Pressure Switches w/Manual Reset Data togging Common Vent Kits Low Air Pressure Switches > Hours Running, Space Heating Duat Fuel Gas Train Condensate Trap w/Blocked Drain Switch > Hours Running, Domestic Hot Water Motorized Isolation Valve Drain Valve > Hours Running, Modulation Rate Variable Speed Boiler Pump System Sensor > Ignition Attempts Electrical Options (Shipped Loose): Outdoor Air Sensor > Last 30 Lockouts > 208V/30/6oHz Intel & Outlet Temperature Sensors Programmable System Efficiency Optimizers > 480V/30/60Hz High -Voltage Terminal Strip > Night Setback > 600V/30/60Hz Low -Voltage Terminal Strip > Anti -Cycling Downstream Gas Test Cocks 5OutdoorAirReset Curve 'Lochin-shouldbeconsultedbefore selecilneaboiler for nstallations 50 psi ASME Relief Valve > Ramp Delay having unusual piping and pickup requirements, such aslntemittent Temperature & Pressure Gauge >Boost Tern perature&Time systecooperation,earenslvepipingSystems. etc. 'The rating&haw been Zero Clearances to Combustible Materials > Modulation Factor Control determined unde+the pua isrons gmemhg forced draft burners. 30 -Year Limited Warranty (See Warranty for Details) _W,"4 d1im HIGH EFFICIENCY BOILERS & WATLR HEATERS FPIT-03 (Reprint FENT 03 9/16) 1•Year Warranty on Parts (See Warranty for Details) Lochimar, LLE 300 Maddox Simpson Parkeray Sn rn1E Le ba non,Tenne55ee rM Ph{� a1al I I P: 615 AGq Roan I F 6t 6% 5 5.d7 1009 MEMBER Lnchinvar.fom 0 Lochinvar• LLC • AS8. 5M 2/18 - Printed in U.S.A. 44M.A. jHEA4T1NGA1=RC0—N INC P.O. Box 547, Cokato MN 55321 320.286.2020 - 320.286.2323 (fax) info@arengh.com City Of Hutchinson I l 1 Hassan St. S.E. Hutchinson, MN 55350 Estimate Date Estimate # 2/20/2018 8869 I Description I Total I Waste Water Treatment Plant Boiler Installation Option# 1 Demo and dispose of existing boiler. Furnish and install Laars Magnatherm 2MBH boiler. Furnish and install Willo Stratos boiler pump. Furnish and install necessary boiler piping. Furnish and install necessary spirovent and expansion tank. Furnish and install necessary gas piping. Furnish and install necessary boiler venting. Furnish and install necessary pipe insulation. Furnish and install necessary line and low voltage wiring. Permits Total387,780 Contro programming by others. Option#2 Demo and dispose of existing boiler. Furnish and install (2) Lochnivar boiler FTXL 850,OOOMBH boilers. Furnish and install (2) Grundfos boiler pumps. Furnish and install necessary boiler piping. Furnish and install necessary spirovent and expansion tank. Furnish and install necessary gas piping. Furnish and install necessary boiler venting. Furnish and install necessary pipe insulation. Furnish and install necessary line and low voltage wiring. Permits Total:$99,800 Proposal may be withdrawn if not accepted within 30 days. Total Approved b Page 1 pA Y Dale LAARS- NEOTHERMT High Eff=iciency Commercial Modulating, Condensing Boilers PACKED WITH FEAVURES • Large Color Touch Screen • Less Than 10ppm NOx • Up to 96.6% Thermal Efficiency • 6 Models 285 to 850 M8H Vent up to 100 feet, horizontal or vertical Zero clearance to combustibles for tight installations LAARSO NEOTHERMO Hydropic Boiler NeoTherm is a direct vent, sealed combustion, condensing boiler with thermal efficiency as high as 96.6% that modulates with a 5 to 1 turndown. The boiler features an ASME stainless steel heat exchanger, boiler pump (size 285 only, sizes 399-500 optional) and low NOx emissions (10 ppm NOx), for a package that's easy to use and easy on the environment. NeoTherm is built standard with the upgraded LAARS Integrated Control System that puts the ignition control, temperature control and high limit in one user-friendly device that does it all with an easy to use, large color touch screen interface. The PID control system has outdoor reset and indirect water heater priority, frost protection, and loads of other features. It seamlessly integrates with building automation systems and can easily become part of multiple boiler sequencing, including a cascading feature that rotates load across up to eight NeoTherms to optimize boiler life without the need for additional system controls. Available for natural or propane gas, with a selection of factory mounted options, and 6 sizes ranging from 285 to 850 MBH, these indoor models are suitable for a broad variety of residential and commercial applications. NEOTNERM INTEGRATED CONTROLS F'EATuREs: MMU 0 Heating Systems Company A subsidiary �f BRADFORD WHM Carpom.. • Large, easy to navigate color touch screen • Easy to use menus for login, quick start, advanced setup, tests and diagnostics • integrated PID temperature and ignition control • Accepts 4-10mA or 0-10VDC input for modulation • lead Lag with up to 8 other NeoTherm boilers • Quick sfart feature for easy one boiler setups Outdoor reset with customizable reset curves, DHW override and warm weather shutdown • Complete diagnostics for analog and digital inputs • Test feature allows for forced min and max firing • Display holds, alerts and errors in clear text form • Password protected parameters for installer use s LAARS® NEOTHERAe HYDRONIC BOILER Standard Equipment: • High condensing efficiency • Modulation down to 20% of full fire (5:1 turndown) • Sealed combustion chamber • Stainless Steel Heat Exchanger • Pre -mix stainless steel burner • Low NOx system ( i Oppm) exceeds the most stringent regulations for air quality • Horizontal or vertical direct vent • Horizontal vent and air terminals • Vent and air pipe lengths of up to 100 equivalent feet (each) • Built-in condensate trap • Vent temperature cutoff feature Dimensional Data • Integrates with Building Automation Systems • Spark ignition system • 160 psi maximum working pressure • Stainless steel heat exchanger with welded construction (no gaskets) • ASME "H" stamp • 75 psi (517 kPa) ASME rated pressure relief valve • Temperature & pressure gauge • Drain valve • Multiple pump control for boiler pump, system pump and indirect domestic water pump, each with delay • Connections from top of unit • ENERGY STAR," for 285 size only • Electronic PID modulating control • Large color touch screen • Alarm output • Accepts external 4-20rnA modulation control (0-1OV optional) • Indirect water heater priority with sensor • Outdoor reset with sensor • On/off toggle switch • Manual reset high limit • Burner sight glass • Zero clearance to combustible surfaces for alcove and closet installations • 10 year limited warranty WATER OUTLET G VENT" Combusilan 314" O AIR INLET• Efficiency°Y Efticfoncy ARE 3; PRY OUTLET 9+I WA 95.0 �' 22 96.5 WA G C 95.0 H 600 95.3 96.0 MEMOCONDENSATE GAS INLET WATER D INLET E 96,6 TRAP OUTLET N 850 F A AA 95.7 WA 19 TOP VIEW FRONT VIEW RIGHT SIDE VIEW BACK VIEW W I L I A I B I C I D I E I F I G I N I J I K I M I N I Air Inlet` I Vent' 285 25 64 26314 68 20'14 52 71/4 19 19314 50 41/4 11 11114 29 13112 34 14 36 38114 97 15 38 17 43 183/4 48 1 13 33 14112 11 4112 11 399 25 64 31112 60 25 64 51/4 13 1931, 50 4114 11 14314 37 18112 47 19114 49 381/4 97 16112 42 21314 55 18314 48 13 33 4112 11 4112 11 500 25 64 37314 96 30114 77 5'14 13 191/4 50 4114 11 151/2 36 20 51 20112 52 38114 97 19 48 26 66 18314 48 13 33 4112 11 4112 11 600 25 64 373/4 96 293/4 76 5 13 119112 50 4114 11 15 38 20 51 3 6 381/4 97 19 48 26 66 104 48 8114 27 4112 71 4112 i1 750 25 64 51 130 351!2 90 6 15 191/2 50 5114 13 19 48 401h 103 3114 8 38114 97 19 48 3W/4 78 TWA 48 8114 21 4111 11 Wh 17 950 25 64 55114 136 39314 1Pl 6 15 19111 50 51/4 13 19 48 44314 114 31/2 9 38114 97 19 48 35 89 18114 48 9'14 21 4112 11 6'Iz 17 Efficiency Data Size Thermal Combusilan 314" 364 Efficiency°Y Efticfoncy ARE 3; 285 WA WA 95.0 399 96.5 96.5 WA 500 95.0 95.0 WA 600 95.3 96.0 WA 750 96.6 96,6 WA 850 95,7 95.7 WA kW 399,900 1 117.2 1 386,000 500,000 146.4 475,000 600,000 175.7 572,000 850,000 1 248.9 1 813,000 connection Size 77.4 11h' 3h' 299 136 713.1 Ph" 314" 364 165 139,2 1112' 1' 419 190 167.6 1112 1' 426 193 212.1 2' 11h" 481 218 238.2 2' 1'12° 503 228 Dimensions are nominal 'NeoTherm is shipped with adapters for the air and vent Am'! I CERTIFIED ".-I i- -.V V I AAME'* Heating Systems Company A subsidiary of BRADFORD WHITE' Corporation Customer Service and Product Support: 800.900.9276 • Fax 800.559.1583 Headquarters: 20 Industrial Way, Rochester, NH 03867 • 603.335.6300 • Fax 603.335.3355 9 Brigden Gate, Halton Hills, Ontario, Canada, L7G OA3 • 905.203.0600 • Fax 905-636.0666 www.LAARS.com Litho in U.S.A. 0 Laars Heating Systems Co. 1506 Document 12151 09/16/2018 10:05 AM INVOICE GL DISTRIBUTION REPORT FOR CITY OF HUTCHINSON User: jjuergensen POST DATES 01/01/2015 - 04/16/2018 D8: Hutchinson JOURNALIZED OPEN AND PAID VENDOR CODE: 133111 GL Number Invoice Line Desc Vendor Invoice Date Invoice Fund 602 Sewer Fund Dept 4945 Sewer Fund 602-4945-54360 602-4945-54360 602-4945-54360 602-4945-54360 602-4945-54360 602-4945-54360 602-4945-54360 Page 1/1 Amount Contractual R&M AR ENGH HEATING & AIR CON102/15/17 170115 562.70 Contractual R&M A R ENGH HEATING & AIR 00109/06/17 170649 225.00 Contractual R&M A R ENGH HEATING & AIR Cot 12/12/17 171523 540.00 Contractual R&M A R ENGH HEATING & AIR Cot 12/28/17 171575 180.00 Contractual R&M A R ENGH HEATING & AIR C0112/28/17 171523B 1,112.00 Contractual R&M A R ENGH HEATING & AIR 00102/14/18 180208 180.00 Contractual R&M A R ENGH HEATING & AIR 00102/09/18 171501 1,139.00 ---- FUND TOTALS BY VENDOR --- Total For Dept 4945 Sewer Fund Total For Fund 602 Sewer Fund Total For All Funds: Fund 602 Sewer Fund 133111 - A R ENGH HEATING & AIR CONDITIONING TOTAL FUND 602 SEWER FUND 3,938.70 3,938.70 3,938.70 3,938.70 3,938.70 49/16/2018 10:0 AM User: jjuergensen INVOICE GL DISTRIBUTION REPORT FOR CITY OF HUTCHINSON Page 1/1 POST DATES 01/01/2015 - 04/16/2018 DB: Hutchinson JOURNALIZED OPEN AND PAID VENDOR CODE: 131299 GL Number Invoice Line Desc Vendor Invoice Date Invoice Amount Fund 602 Sewer Fund Dept 4945 Sewer Fund 602-4945-54309 Other Professional Services MMC 03/17/16 205085215 602-4945-54309 Other Professional Services MMC 04/05/16 205085511 2,536.27 602-4945-54360 LABOR, MATERIALS, EQUIPMENT MMC 01/29/15 205078004 4,197.09 602-4945-54360 BUILDING 30 NEW SIDE NOT WORKING MMC 02/26/15 205078542 2,512.05 602-4945-54360 2 CABINET AND UNIT NOT WORKING w MMC 02/26/15 205078543 3,119.89 602-4945-54360 REPLACE ACUATOR ON BUILDING 430 MMC 03/05/15 205078655 1,978.54 602-4945-54360 LABOR, MATERIALS, EQUIPMENT MMC 03/25/15 205078943 883.09 602-4945-54360 REPAIRS OFR HEATING SYSTEM BUILD MMC 12/04/14 205076895 2,249 67 602-4945-54360 INSTALLED NEW PNEUMATIC MN MMC 06/03/15 205080076 2,335.28 602-4945-54360 BOILER TRIPPING ON, FLAME SENSOR MMC 05/22/15 2050798890 872.05 602-4945-59360 REPLACEMENT OF PTEC UNIT CONTROL MMC 08/21/15 205081374 1,461.64 602-4945-54360 PM FOR HVAC EQUIP 7/1/15-6/30/16 MMC 07/17/15 205080844 3,462.00 602-4945-54360 Contractual R&M MMC 11/13/15 205082927 6,242.00 602-4945-54360 Contractual R&M MMC 12/04/15 205083292 3,018.69 602-4945-54360 Contractual R&M MMC 12/30/15 205083883 4,841.89 602-4945-54360 Contractual R&M MMC 12/30/15 205083884 649.00 602-4945-54360 Contractual R&M MMC 12/30/15 205083885 3,937.10 3,156.79 602-4945-54360 Contractual R&M MMC 04/20/16 205085672 938.99 602-4945-54360 Contractual R&M MMC 05/25/16 205086285 6,986.20 602-4945-54360 Contractual R&M MMC 07/20/16 205087464 5,149.76 602-4945-54360 ANNUAL SERVICE AGREEMENT 7/1/16- MMC 07/19/16 205087349 6,429.26 602-4945-54360 Contractual R&M MMC 09/30/16 205089016 499.00 602-4945-54360 HVAC SOFTWARE UPGRADE MMC 10/28/16 20300.3897 6,229.00 602-4945-54360 Contractual R&M MMC 12/23/16 205090683 4,035.14 602-4945-54360 Contractual R&M MMC 12/22/16 205090684 515.46 602-4945-54360 Contractual R&M MMC 03/02/17 205091454 388.00 602-4945-54360 Contractual R&M MMC 03/15/17 205092185 1,365.36 602-4945-54360 Contractual R&M MMC 04/20/17 205092382 1,314.61 602-4945-54360 Contractual R&M MMC 01/31/17 203003972 1,998.00 Total For Dept 4945 Sewer Fund 83,303.82 Total For Fund 602 Sewer Fund 83,303.82 --- FUND TOTALS BY VENDOR --- Total For All Funds: 83,303.82 Fund 602 Sewer Fund 131299 - MMC 63,303.82 TOTAL FUND 602 SEWER FUND 83,303.82 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Resolution Approving Historic Hutchinson Applying for Legacy Grant Department: Facilities LICENSE SECTION Meeting Date: 4/24/2018 Application Complete Contact: Dan Jochum/JJ Verhey Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff Consent Agenda Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Stained Glass Window Project The thirteen stained glass windows inside St. John's Episcopal Church have experienced varying degrees of damage due to their age and exposure to extreme weather conditions. Historic Hutchinson wishes to submit an application to the Historical and Cultural Heritage Program through the Minnesota Historical Society to hire professionals in stained glass to repair cracks and bows in the glass and re-lead the glass to aid in long-term preservation. In order to do this, the windows will need to be removed from the Church, taken to a secure facility to receive the care and updates that are required and then returned to the Church. If this grant application is approved, work will be between December 2018 and December 2019. It is anticipated that the cost to complete this project could be up to $50,000. The hope is that the grant will cover much, if not the vast majority of the costs for this project. The City of Hutchinson has an agreement with Historic Hutchinson relative to the Church and the Harrington-Merrill House. The agreement requires the City to give permission to Historic Hutchinson when grants are applied for on City owned properties. The City has had an excellent working relationship with Historic Hutchinson and staff sees this as another opportunity to work with Historic Hutchinson. Historic Hutchinson has been working with JJ Verhey, Facilities Manager for the City of Hutchinson, who has been assisting Historic Hutchinson with collecting quotes from various Minnesota-based companies who wish to be involved with the project. All quotes will be reviewed at the May 7th Historic Hutchinson Board of Directors meeting. BOARD ACTION REQUESTED: Approval of resolution 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. 14885 RESOLUTION ALLOWING HISTORIC HUTCHINSON TO APPLY FOR A GRANT TO REPAIR STAINED GLASS WINDOWS AT THE HISTORIC CHURCH ON BEHALF OF THE CITY OF HUTCHINSON WHEREAS, the City of Hutchinson owns the St. John's Episcopal Church located at 105 2" d Ave SE; WHEREAS, the City of Hutchinson is aware that renovation and repair of this building is very important; Church; WHEREAS, the Stained Glass windows are in need of repair due to their age and condition; WHEREAS, the City, in partnership with Historic Hutchinson, has been working to improve the WHEREAS, the grant request would be approximately $50,000 unless quotes to complete the work are less than this. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: That the City of Hutchinson hereby approves Historic Hutchinson to apply for grant dollars through the Historical and Cultural Heritage Program on behalf of the City of Hutchinson. Adopted by the City Council this 24th day of April 2018. ATTEST: Matthew Jaunich Gary Forcier City Administrator Mayor HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Consideration of Conditional Use Permit at 540 3rd Avenue NW Department: Planning LICENSE SECTION Meeting Date: 4/24/2018 Application Complete Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff Consent Agenda Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The applicant is seeking three different approvals within this Conditional Use Permit application. 1) CUP to establish recycling use in building as required by I/C zoning district in which all uses are conditional uses. 2) Outdoor storage related to the recycling facility. 3) Outdoor storage, which would consist of approximately 25 shipping containers that could be rented out as "storage units". To summarize, staff is comfortable recommending a CUP to establish the recycling use and storage use inside the existing buildings on-site. Staff is opposed to any open storage of items outside on the side, including storage containers for any reason. Any items stored outside shall be screened by a fence of no less than 7 feet in height and the applicant shall work with staff on the location of this fence and obtain proper permits for this fence. The items stored outside should be shorter than 7 feet as to remain screened at all times. One neighbor spoke regarding the request and said he wanted to make sure the outside of the property looked clean and outdoor storage was screened appropriately. The applicant briefly spoke about his business and noted his business is approved by the MPCA for electronics recycling. He also noted that he would be willing to work with staff to make sure items related to electronics recycling were screened appropriately. The Planning Commission asked about have the building inspected by the Building Official and Fire Chief and Staff noted that this is noted as a condition of approval. The Planning Commission voted to unanimously approve the request and forward it on to City Council for final approval. BOARD ACTION REQUESTED: Approval of Conditional Use Permit with staff recommendations. 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. 14881 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF A CONDITIONAL USE PERMIT FOR AN ELECTRONIC RECYCLING FACILTY AND STORAGE FACILTY LOCATED AT 540 3" AVE NW, JEFFREY KRUEGER, APPLICANT. FACTS Albee Property Management is the owner of a parcel of land located at 540 3rd Ave NW, Hutchinson, Minnesota; and 2. Jeffrey Krueger has applied for a conditional use permit to operate a recycling facility and storage within the building at 540 Yd Ave SW, at this address; and 3. The subject property is legally described as: 36-117-30-16-0101 FULL LEGAL: That part of the Southeast Quarter of the Southeast Quarter of Section 36, Township 117, Range 30, McLeod County, Minnesota, described as beginning at a point on the North line of said Southeast Quarter of the Southeast Quarter, said point begin 898.00 feet East, assumed bearing, of the Northwest Corner of said Southeast Quarter of the Southeast Quarter; thence continuing East 42.00 feet along said North line; thence South 33.00 feet; thence East 264.00 feet to a point 1204.00 feet East of and 33.00 feet South of said Northwest Corner of the Southeast Quarter of the Southeast Quarter of said Section 36; thence South 290.14 feet to a point on the Northerly right-of-way line of Dakota Rail Inc.; thence Southwesterly 312.18 feet along said Northerly right-of- way line to a point South of the point of beginning; thence North 384.81 feet to the point of beginning. County PID Numbers 23.036.3200, 23.036.3300, 23.036.4100, 23.036.4600 Doc# A-356554 ALSO: That part of the Southeast Quarter of the Southeast Quarter of Section 36, Township 117 North, Range 30 West, McLeod County, Minnesota, described as follows; Commencing at the northwest corner of said Southeast Quarter of the Southeast Quarter; thence on an assumed bearing of East, along the north line of said Southeast Quarter of the Southeast Quarter 1144.00 feet; thence on a bearing of South 33.00 feet; thence on a bearing of East 60.00 feet; thence on a bearing of South 157.00 feet; thence on a bearing of West 122.00 feet to the point of beginning of the land to be described; thence on a bearing of North 34.66 feet; thence on a bearing of East 13.40 feet; thence North 21 degrees 27 minutes 00 seconds East 35.00 feet; thence North 84 degrees 00 minutes 00 seconds East 36.00 feet; thence on a bearing of West 72.00 feet; thence on a bearing of South 71.00 feet to the intersection with a line bearing West from the point of beginning; thence on a bearing of East 10.00 feet to the point of beginning. Area= 1,521 Square Feet 9 1 � Findings of Fact— Resolution 14881 Conditional Use Permit 540 3rd Ave NW 04/17/2018 Page 2 36-117-30-16-0092 FULL LEGAL DESCRIPTION: That part of the Southeast Quarter of the Southeast Quarter of Section 36, Township 117, Range 30, McLeod County, Minnesota, described as beginning at a point on the North line of said Southeast Quarter of the Southeast Quarter, said point begin 898.00 feet East, assumed bearing, of the Northwest Comers of said Southeast Quarter of the Southeast Quarter; thence continuing East 42.00 feet along said North line; thence South 33.00 feet; thence East 264.00 feet to a point 1204.00 feet East of and 33.00 feet South of said Northwest Comer of the Southeast Quarter of the Southeast Quarter of said Section 36; thence South 290.14 feet to a point on the Northerly right-of-way line of Dakota Rail Inc.; thence Southwesterly 312.18 feet along said Northerly right-of- way line to a point South of the point of beginning; thence North 384.81 feet to the point of beginning. County PID Numbers 23.036.3200, 23.036.3300, 23.036.4100, 23.036.4600 Doc# A-356554 EXCEPT: That part of the Southeast Quarter of the Southeast Quarter of Section 36, Township 117 North, Range 30 West, McLeod County, Minnesota, described as follows; Cnmmenrin'ba th at e nnrthwegt rnrner nf.aid Southeast Quarter of the Southeast Quarter; thence on an assumed bearing of East, along the north line of said Southeast Quarter of the Southeast Quarter 1144.00 feet; thence on a bearing of South 33.00 feet; thence on a bearing of East 60.00 feet; thence on a bearing of South 157.00 feet; thence on a bearing of West 122.00 feet to the point of beginning of the land to be described; thence on a bearing of North 34.66 feet; thence on a bearing of East 13.40 feet; thence North 21 degrees 27 minutes 00 seconds East 35.00 feet; thence North 84 degrees 00 minutes 00 seconds East 36.00 feet; thence on a,bearing of West 72.00 feet; thence on a bearing of South 71.00 feet to the intersection with a line bearing West from the point of beginning; thence on a bearing of East 10.00 feet to the point of beginning. Area=1,521 Square Feet 4. The property is located in the IIC Industrial/Commercial) Zoning District. 5. The request for a conditional use permit is required because of Section 154.066 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 April 17, 2018 with the following findings and conditions: a. Recycling is established as an allowable use of the property subject to all applicable zoning and building codes, including outdoor storage. b. The access to the site from 3rd Ave NW nearest to Montana St. shall be closed. Findings of Fact — Resolution 14881 Conditional Use Permit 5403 d Ave NW 04/17/2018 Page 3 C. The Building Official and Fire Chief shall inspect the property within 60 days of the Conditional Use Permit being approved to ensure compliance with applicable codes. d. Outdoor storage will be allowed only if it is fully enclosed and screened from view. Items stored outside shall be stored behind a fence at least 7 feet high and not be visible from outside the fence. The applicant shall work with City staff regarding the location of any proposed fencing. e. Storage containers are prohibited on-site unless they are within a building. f. No additional impervious surface shall be added to the lot, including gravel unless a comprehensive site plan and stormwater plan are completed for the site. g. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. 7. The City Council of the City of Hutchinson reviewed the requested conditional use permit at its meeting on April 24, 2018 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: h. Recycling is established as an allowable use of the property subject to all applicable zoning and building codes, including outdoor storage. i. The access to the site from 3rd Ave NW nearest to Montana St. shall be closed. j. The Building Official and Fire Chief shall inspect the property within 60 days of the Conditional Use Permit being approved to ensure compliance with applicable codes. k. Facility will be periodically inspected by the Fire Department to ensure adequate safety per MN Statute 29917.011. 1. Outdoor storage will be allowed only if it is fully enclosed and screened from view. Items stored outside shall be stored behind a fence at least 7 feet high and not be visible from outside the fence. The applicant shall work with City staff regarding the location of any proposed fencing. in. Mini -storage is not permitted on-site. n. Storage containers are allowed for the purpose of the recycling business but are not allowed to be used to rent to the public for storage. o. Storage containers for the recycling facility that are stored outside need to be fully screened. P. No additional impervious surface shall be added to the lot, including gravel unless a comprehensive site plan and stormwater plan are completed for the site. q. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. APPLICABLE LAW 8. The conditional use permit request meets the following standards as required in Section 154.066 of the City of Hutchinson Municipal Code. Findings of Fact — Resolution 14881 Conditional Use Permit 540 3'd Ave NW 04/17/2018 Page 4 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 (a) 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 Jeffrey Krueger, applicant, to operate a recycling facility with the stated conditions in the UC zoning district located at 540 Yd Avenue NW is hereby approved. Adopted by the City Council this 24th day of April, 2018. ATTEST: Matt Jaunich City Administrator Gary T. Forcier Mayor CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA RESOLUTION NO. 14881 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF A CONDITIONAL USE PERK HT FOR AN ELECTRONIC RECYCLING FACILTY AND STORAGE FACILTY LOCATED AT 540 3" AVE NW, JEFFREY KRUEGER, APPLICANT. FACTS Albee Property Management is the owner of a parcel of land located at 540 3rd Ave NW, Hutchinson, Minnesota; and 2. Jeffrey Krueger has applied for a conditional use permit to operate a recycling facility and storage within the building at 540 3rd Ave SW, at this address; and 3. The subject property is legally described as: 36-117-30-16-0101 FULL LEGAL: That part of the Southeast Quarter of the Southeast Quarter of Section 36, Township 117, Range 30, McLeod County, Minnesota, described as beginning at a point on the North line of said Southeast Quarter of the Southeast Quarter, said point begin 898.00 feet East, assumed bearing, of the Northwest Corner of said Southeast Quarter of the Southeast Quarter; thence continuing East 42.00 feet along said North line; thence South 33.00 feet; thence East 264.00 feet to a point 1204.00 feet East of and 33.00 feet South of said Northwest Corner of the Southeast Quarter of the Southeast Quarter of said Section 36; thence South 290.14 feet to a point on the Northerly right-of-way line of Dakota Rail Inc.; thence Southwesterly 312.18 feet along said Northerly right-of- way line to a point South of the point of beginning; thence North 384.81 feet to the point of beginning. County PID Numbers 23.036.3200, 23.036.3300, 23.036.4100, 23.036.4600 Doc# A-356554 ALSO: That part of the Southeast Quarter of the Southeast Quarter of Section 36, Township 117 North, Range 30 West, McLeod County, Minnesota, described as follows; Commencing at the northwest corner of said Southeast Quarter of the Southeast Quarter; thence on an assumed bearing of East, along the north line of said Southeast Quarter of the Southeast Quarter 1144.00 feet; thence on a bearing of South 33.00 feet; thence on a bearing of East 60.00 feet; thence on a bearing of South 157.00 feet; thence on a bearing of West 122.00 feet to the point of beginning of the land to be described; thence on a bearing of North 34.66 feet; thence on a bearing of East 13.40 feet; thence North 21 degrees 27 minutes 00 seconds East 35.00 feet; thence North 84 degrees 00 minutes 00 seconds East 36.00 feet; thence on a bearing of West 72.00 feet; thence on a bearing of South 71.00 feet to the intersection with a line bearing West from the point of beginning; thence on a bearing of East 10.00 feet to the point of beginning. Area=1,521 Square Feet Findings of Fact — Resolution 14881 Conditional Use Permit 5403 rd Ave NW 04/17/2018 Page 2 36-117-30-16-0092 FULL LEGAL DESCRIPTION: That part of the Southeast Quarter of the Southeast Quarter of Section 36, Township 117, Range 30, McLeod County, Minnesota, described as beginning at a point on the North line of said Southeast Quarter of the Southeast Quarter, said point begin 898.00 feet East, assumed bearing, of the Northwest Corner5 of said Southeast Quarter of the Southeast Quarter; thence continuing East 42.00 feet along said North line; thence South 33.00 feet; thence East 264.00 feet to a point 1204.00 feet East of and 33.00 feet South of said Northwest Corner of the Southeast Quarter of the Southeast Quarter of said Section 36; thence South 290.14 feet to a point on the Northerly right-of-way line of Dakota Rail Inc.; thence Southwesterly 312.18 feet along said Northerly right-of- way line to a point South of the point of beginning; thence North 384.81 feet to the point of beginning. County PID Numbers 23.036.3200, 23.036.3300, 23.036.4100, 23.036.4600 Doc# A-356554 EXCEPT: That part of the Southeast Quarter of the Southeast Quarter of Section 36, Township 117 North, Range 30 West, McLeod County, Minnesota, described as follows; Commencing at the northwest corner of said Southeast Quarter of the Southeast Quarter; thence on an assumed bearing of East, along the north line of said Southeast Quarter of the Southeast Quarter 1144.00 feet; thence on a bearing of South 33.00 feet; thence on a bearing of East 60.00 feet; thence on a bearing of South 157.00 feet; thence on a bearing of West 122.00 feet to the point of beginning of the land to be described; thence on a bearing of North 34.66 feet; thence on a bearing of East 13.40 feet; thence North 21 degrees 27 minutes 00 seconds East 35.00 feet; thence North 84 degrees 00 minutes 00 seconds East 36.00 feet; thence on a bearing of West 72.00 feet; thence on a bearing of South 71.00 feet to the intersection with a line bearing West from the point of beginning; thence on a bearing of East 10.00 feet to the point of beginning. Area=1,521 Square Feet 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 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 April 17, 2018 with the following findings and conditions: a. Recycling is established as an allowable use of the property subject to all applicable zoning and building codes, including outdoor storage. b. The access to the site from Yd Ave NW nearest to Montana St. shall be closed. Findings of Fact — Resolution 14881 Conditional Use Permit 5403 rd Ave NW 04/17/2018 Page 3 C. The Building Official and Fire Chief shall inspect the property within 60 days of the Conditional Use Permit being approved to ensure compliance with applicable codes. d. Outdoor storage will be allowed only if it is fully enclosed and screened from view. Items stored outside shall be stored behind a fence at least 7 feet high and not be visible from outside the fence. The applicant shall work with City staff regarding the location of any proposed fencing. e. Storage containers are prohibited on-site unless they are within a building. f. No additional impervious surface shall be added to the lot, including gravel unless a comprehensive site plan and stormwater plan are completed for the site. g. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. 7. The City Council of the City of Hutchinson reviewed the requested conditional use permit at its meeting on April 24, 2018 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: h. Recycling is established as an allowable use of the property subject to all applicable zoning and building codes, including outdoor storage. i. The access to the site from Yd Ave NW nearest to Montana St. shall be closed. j. The Building Official and Fire Chief shall inspect the property within 60 days of the Conditional Use Permit being approved to ensure compliance with applicable codes. k. Outdoor storage will be allowed only if it is fully enclosed and screened from view. Items stored outside shall be stored behind a fence at least 7 feet high and not be visible from outside the fence. The applicant shall work with City staff regarding the location of any proposed fencing. 1. Storage containers are prohibited on-site unless they are within a building. In. No additional impervious surface shall be added to the lot, including gravel unless a comprehensive site plan and stormwater plan are completed for the site. n. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. APPLICABLE LAW 8. The conditional use permit request meets the following standards as required in Section 154.066 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, Findings of Fact — Resolution 14881 Conditional Use Permit 5403 rd Ave NW 04/17/2018 Page 4 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 Jeffrey Krueger, applicant, to operate a recycling facility with the stated conditions in the UC zoning district located at 540 Yd Avenue NW is hereby approved. Adopted by the City Council this 24th day of April, 2018. ATTEST: Matt Jaunich City Administrator Gary T. Forcier Mayor DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan Jochum, Planning Director and City of Hutchinson Planning Staff Date: April 12, 2018, for April 17, 2018, Planning Commission Meeting Application: Consideration of a Conditional Use Permit for a Recycling Facility, Storage Facility and Outdoor Storage Applicant: Jeffrey Krueger Owner: Albee Property Management CONDTIONAL USE PERMIT The applicant has applied for a Conditional Use Permit to operate a recycling facility within the building at 540 Yd Avenue NW, as well as outdoor storage related to the recycling facility and a storage facility. _ 'Indicates property described in this notice f S .. 5 f'J - I1 7 0 U� v RKwAY Kau5APA Conditional Use Permit and Vacation of Easements Southfork Ridge Third Addition Planning Commission — 4/17/18 Page 2 GENERAL INFORMATION Existing Zoning: I/C — Industrial/Commercial District Property Location: 540 Yd Ave NW Lot Size: 1.95 acres Existing Land Use: Industrial Warehouse Facility Adjacent Land Use: Industrial and Parkland Adjacent Zoning: I/C — Industrial/Commercial District Comprehensive Land Use Plan: Industrial Zoning History: A conditional use permit was granted in 1981 for a building addition. In 1994 a conditional use permit was granted for a cold storage warehouse. In 2007 the conditional use permits from 1981 and 1994 were reviewed due to not meeting conditions set forth. In 2014 a conditional use permit was applied for to allow for outdoor storage but this CUP application was later withdrawn. Applicable Regulations: Section 154.066 and 154.175 Analysis: The applicant is seeking three different approvals within this Conditional Use Permit application. 1) CUP to establish recycling use in building as required by I/C zoning district in which all uses are conditional uses. 2) Outdoor storage related to the recycling facility. 3) Outdoor storage, which would consist of approximately 25 shipping containers that could be rented out as "storage units". 1. Conditional Use Permit to Establish Recycling Use in Building This request would establish the recycling facility as a Conditional Use in the UC zoning district. Previously this building had been used by a plating company and used for general storage. It should also be noted that the recycling facility has been in operation at this location for over a year. The recycling use fits within the intent and purpose of the I/C Zoning District, therefore staff recommends that the recycling use be established for the storage and recycling of items within the building. Any items that would be stored outside will be discussed in number two below. The Building Official and Fire Chief will have to inspect the building and ensure building and fire codes are being met with this use. In addition, staff recommends that the access to this property just east of Montana St. be closed because of its proximity to Montana St. Staff had previously discussed closing this access with previous building owners but it was never closed. There appears to be more than adequate access off of Montana St. for the western side of this property. Conditional Use Permit and Vacation of Easements Southfork Ridge Third Addition Planning Commission — 4/17/18 Page 3 2. Conditional Use Permit to Allow for Outdoor Storage Staff has concerns about outdoor storage for a facility such as this. There have been two other recycling facilities in Hutchinson and each has had numerous complaints regarding outdoor storage and the appearance of the property. Currently there are shipping containers and other miscellaneous items being stored without screening. Staff proposes that any items being stored outside are behind a fully enclosed fence that is at least 7 feet tall. All items being stored outside must not be visible from outside the fence. The applicant can work with staff regarding the location of this fenced in area. 3. Conditional Use Permit to Allow for a Storage Use on the Property Staff is comfortable with permitting storage inside the existing buildings on-site if the buildings meet all applicable fire and building codes related to storage occupancy. However, staff has several concerns related to additional storage on-site. The applicant submitted a rough sketch of the site that included the new area proposed to be used for storage. The new storage area is proposed to be south of the existing building and would consistent of "storage containers" that typically are used in the shipping industry. These containers are 8' wide, 8' tall, and 20' long. These structures don't fall under the building code because they are under 200 square feet and they are defined as accessory structures under the zoning code. Staff has serious concerns about having this many accessory structures being utilized for storage purposes in Hutchinson. One of the major concerns is aesthetics, while there is screening from the south from large trees these containers still likely would be visible from Montana St/Hwy 7. Additionally, another concern is that the containers will be placed on gravel and will be accessed by an 8' gravel drive aisle. If these storage containers are going to be rented to the public the zoning ordinance requires paved/improved parking lots and drive aisles. Eight feet is not wide enough to accommodate more than one vehicle to use the drive aisle at a time or room enough for emergency vehicles to access the storage units in case of fire, etc. Finally, another concern is stormwater management. This property is located within the shoreland district, which allows for 25% impervious surface coverage. The site is likely already at or over the 25%, impervious coverage limit meaning stormwater ponding would be needed in order to accommodate more impervious surface on site. Due to these concerns, staff is recommending that the CUP not include a storage component outside of the current buildings for the reasons stated above. In addition, the existing storage containers on-site should be moved inside the buildings or taken off site. To summarize, staff is comfortable recommending a CUP to establish the recycling use and storage use inside the existing buildings on-site. Staff is opposed to any open storage of items outside on the side, including storage containers for any reason. Any items stored outside shall be screened by a fence of no less than 7 feet in height and the applicant shall work with staff on the location of this fence and obtain proper permits for this fence. The items stored outside should be shorter than 7 feet as to remain screened at all times. Conditional Use Permit and Vacation of Easements Southfork Ridge Third Addition Planning Commission — 4/17/18 Page 4 Conditional Use Permit: The Conditional Use Permit (CUP) is needed to establish the recycling use and for outdoor storage. 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. Recommendation: Staff recommends approval of the Conditional Use Permit with the following conditions: I. Recycling is established as an allowable use of the property subject to all applicable zoning and building codes, including outdoor storage. 2. The access to the site from Yd Ave NW nearest to Montana St. shall be closed. 3. The Building Official and Fire Chief shall inspect the property within 60 days of the Conditional Use Permit being approved to ensure compliance with applicable codes. 4. Outdoor storage will be allowed only if it is fully enclosed and screened from view. Items stored outside shall be stored behind a fence at least 7 feet high and not be visible from outside the fence. The applicant shall work with City staff regarding the location of any proposed fencing. 5. Storage containers are prohibited on-site unless they are within a building. 6. No additional impervious surface shall be added to the lot, including gravel unless a comprehensive site plan and stormwater plan are completed for the site. 7. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. f c) AoL Uj J� Opt CFI� _ 1 Q �t Uii rxr, 0014a r -� HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Consideration of CUP and Vacation of Easements for Southfork Ridge 3rd Add. Department: Planning LICENSE SECTION Meeting Date: 4/24/2018 Application Complete Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff Consent Agenda Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The applicant is requesting approval of two items for Southfork Ridge Third Addition, including: 1. Conditional Use Permit to amend the PDD to reduce the minimum front yard setbacks from 25 to 20 -feet on 11 lots. This request is to allow larger units to be constructed on the lots. In addition, the interior lot line setbacks for 12 lots are proposed to be zero feet to accommodate twin homes. 2. Vacation of easements along four lot lines to allow construction of twin homes in what currently is easement area. The development plans for this site have been revised several times over the years. The development was originally platted for twin homes; however, it was later changed to detached cottage homes. This proposal is a combination of twin homes and single-family homes. There were several neighboring property owners at the public hearing that were opposed to the project. Many cited reduced property values and small lots as the reason they were opposed to the project. Another theme was that it was a neighborhood of single-family homes and twin homes would be out of place. Many neighbors also stated they would like to see the neighborhood re -platted into larger lots. Generally speaking all of the neighbors were opposed to the project. The applicant, Gus Wurdell, also spoke at the meeting and noted that he isn't changing any lot sizes and these lots have been this size since the this area was platted many years ago. He also noted the homes proposed to be built would be very nice and would be priced in the mid $200,000 price range. He said many of the single-family homes would be very similar to what is already in the neighborhood and many would be walkouts. The twin -homes would also be high quality homes. Mr. Wurdell noted the homes being built would not de -value any current homes and would likely increase the value of homes in the neighborhood. Staff tried to clarify items relative to the PDD process and that it allows for flexibility from general zoning code, if amenities such as open space are included in the development. Staff also noted that the lot sizes aren't changing and have been the same since the original plat. The Planning Commission unanimously approved the request on a 5-0 vote with staff recommendations. BOARD ACTION REQUESTED: Approval of CUP and vacation of easements. 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. 14882 RESOLUTION ADOPTING FINDINGS OF FACT AND REASONS FOR APPROVAL OF A CONDITIONAL USE PERMIT TO AMEND THE PDD TO REDUCE THE MINIMUM FRONT YARD SETBACKS FROM 25 TO 20 -FEET ON 11 LOTS AND REDUCE THE ITERIOR LOT LINE TO ZERO ON 12 LOTS; ALSO A VACATION OF EASEMNTS ALONG FOUR LOT LINES TO ALLOW FOR TWIN HOMES, GUS WURDELL, APPLICANT. FACTS 1. Security Bank & Trust is the owner of multiple parcels of land located at Southfork Ridge Third Addition, Hutchinson, Minnesota; and 2. Gus Wurdell has applied for a conditional use permit to amend the PDD and vacate easements; and 3. The subject properties are legally described as: 428 Grant Ave SE — (07-116-29-09-0820; 23.462.0030) Lot 3, Block 1 Southfork Ridge Third Addition 432 Grant Ave SE — (07-116-29-09-0830; 23.462.0040) Lot 4, Block 1 Southfork Ridge Third Addition 436 Grant Ave SE — (07-116-29-09-0840; 23.462.0050) Lot 5, Block 1 Southfork Ridge Third Addition 440 Grant Ave SE — (07-116-29-09-0850; 23.462.0060) Lot 6, Block 1 Southfork Ridge Third Addition 444 Grant Ave SE — (07-116-29-09-0860; 23.462.0070) Lot 1, Block 2 Southfork Ridge Third Addition 448 Grant Ave SE — (07-116-29-09-0870; 23.462.0080) Lot 2, Block 2 Southfork Ridge Third Addition 452 Grant Ave SE — (07-116-29-09-0880; 23.462.0090) Lot 3, Block 2 Southfork Ridge Third Addition 456 Grant Ave SE — (08-116-29-12-0250; 23.462.0100) Lot 4, Block 2 Southfork Ridge Third Addition 460 Grant Ave SE — (08-116-29-12-0260; 23.462.0110) Lot 5, Block 2 Southfork Ridge Third Addition 464 Grant Ave SE — (08-116-29-12-0270; 23.462.0120) Lot 6, Block 2 Southfork Ridge Third Addition 468 Grant Ave SE — (08-116-29-12-0280; 23.462.0130) Lot 7, Block 2 Southfork Ridge Third Addition 472 Grant Ave SE — (08-116-29-12-0290; 23.462.0140) Lot 8, Block 2 Southfork Ridge Third Addition 433 Grant Ave SE — (07-116-29-09-0900; 23.462.0160) Lot 2, Block 3 Southfork Ridge Third Addition 437 Grant Ave Se — (07-116-29-09-0910; 23.462.0170) Lot 3, Block 3 Southfork Ridge Third Addition 441 Grant Ave SE — (07-116-29-09-0920; 23.462.0180) Lot 4, Block 3 Southfork Ridge Third Addition Findings of Fact — Resolution 14882 Conditional Use Permit and Vacation of Easements Southfork Ridge Third Addition 04/24/2018 Page 2 445 Grant Ave SE — (07-116-29-09-0930; 23.462.0190) Lot 5, Block 3 Southfork Ridge Third Addition 449 Grant Ave SE — (07-116-29-09-0940; 23.462.0200) Lot 6, Block 3 Southfork Ridge Third Addition 453 Grant Ave SE — (07-116-29-09-0950; 23.462.0210) Lot 7, Block 3 Southfork Ridge Third Addition 457 Grant Ave SE — (08-116-29-12-0300; 23.462.0220) Lot 8, Block 3 Southfork Ridge Third Addition 4. The properties are located in an R-3 PD Zoning District. 5. The request for a conditional use permit is required because of Section 154.070 of the Hutchinson Zoning Ordinance and the vacation of easements is regulated by City Charter Section 13.05. 6. Following a public hearing on the application, the City of Hutchinson Planning Commission has recommended approval of the Conditional Use Permit and Vacation of Easements on April 17, 2018 with the following findings and conditions: a. Individual lots may not exceed 50% lot coverage requirement. b. Removal or relocation of any services will be at the owner's expense. c. Separate water and sewer services will be required for each lot. d. Applicant shall verify that there will be no building over any storm sewer lines. e. Ensure all necessary drainage and utility easements are in place and re-establish these easements if they were previously vacated and do not conform to this plan. f. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. g. Setbacks shall be as follows for the subject lots: i. Block 1, Lots 3-6 - Side yard setback 0 feet on interior lot lines between lots 3/4 and 5/6 to accommodate a common wall on twin homes. ii. Block 2, Lots 1-8 - Side yard setback 0 feet on interior lot lines between lots 1/2, 3/4, 5/6, and 7/8 to accommodate a common wall on twin homes. iii. Block 2, Lots 5-8 - Front yard setback 20 feet. iv. Block 3, Lots 2-8 - Front yard setback 20 feet. h. Legal Description of Easements to be Vacated: i. LOT 3, BLOCK 1, SOUTHFORK RIDGE THIRD ADDITION Vacate that part of the 5.00 foot wide drainage and utility easement lying westerly of and adjoining easterly line of Lot 3, Block 1, SOUTHFORK RIDGE THIRD ADDITION, according to the recorded plat thereof, lying southwesterly of the Northeasterly 10.00 feet of said Lot 3 and lying north of the South 10.00 feet of said Lot 3. ii. LOT 4, BLOCK 1, SOUTHFORK RIDGE THIRD ADDITION Vacate that part if the 5.00 foot wide drainage and utility easement lying easterly of and adjoining the westerly line of Lot 4, Block 1, SOUTHFORK RIDGE THIRD ADDITION, according to the recorded Findings of Fact — Resolution 14882 Conditional Use Permit and Vacation of Easements Southfork Ridge Third Addition 04/24/2018 Page 3 plat thereof, lying southwesterly of the Northeasterly 10.00 feet of said Lot 4 and lying north of the South 10.00 feet of said Lot 4. iii. LOT 5, BLOCK 1, SOUTHFORK RIDGE THIRD ADDITION Vacate that part of the 5.00 foot wide drainage and utility easement lying west of and adjoining the east line of Lot 5, Block 1, SOUTHFORK RIDGE THIRD ADDITION, according to the recorded plat thereof, lying south of the North 10.00 feet of said Lot 5 and lying north of the South 10.00 feet of said Lot 5. iv. LOT 6, BLOCK 1, SOUTHFORK RIDGE THIRD ADDITION Vacate that part of the 5.00 foot wide drainage and utility easement lying east of and adjoining the west line of Lot 6, Block 1, SOUTHFORK RIDGE THIRD ADDITION, according to the recorded plat thereof, lying south of the North 10.00 feet of said Lot 6 and lying north of the South 10.00 feet of said Lot 6. 7. The City Council of the City of Hutchinson reviewed the requested conditional use permit at its meeting on April 24, 2018 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. Individual lots may not exceed 50% lot coverage requirement. b. Removal or relocation of any services will be at the owner's expense. c. Separate water and sewer services will be required for each lot. d. Applicant shall verify that there will be no building over any storm sewer lines. e. Ensure all necessary drainage and utility easements are in place and re-establish these easements if they were previously vacated and do not conform to this plan. f. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. g. Setbacks shall be as follows for the subject lots: i. Block 1, Lots 3-6 - Side yard setback 0 feet on interior lot lines between lots 3/4 and 5/6 to accommodate a common wall on twin homes. ii. Block 2, Lots 1-8 - Side yard setback 0 feet on interior lot lines between lots 1/2, 3/4, 5/6, and 7/8 to accommodate a common wall on twin homes. iii. Block 2, Lots 5-8 - Front yard setback 20 feet. iv. Block 3, Lots 2-8 - Front yard setback 20 feet. h. Legal Description of Easements to be Vacated: i. LOT 3, BLOCK 1, SOUTHFORK RIDGE THIRD ADDITION Vacate that part of the 5.00 foot wide drainage and utility easement lying westerly of and adjoining easterly line of Lot 3, Block 1, SOUTHFORK RIDGE THIRD ADDITION, according to the recorded plat thereof, lying southwesterly of the Northeasterly 10.00 feet of said Lot 3 and lying north of the South 10.00 feet of said Lot 3. ii. LOT 4, BLOCK 1, SOUTHFORK RIDGE THIRD ADDITION Vacate that part if the 5.00 foot wide drainage and utility easement lying easterly of and adjoining the westerly line of Lot 4, Block 1, SOUTHFORK RIDGE THIRD ADDITION, according to the recorded Findings of Fact — Resolution 14882 Conditional Use Permit and Vacation of Easements Southfork Ridge Third Addition 04/24/2018 Page 4 plat thereof, lying southwesterly of the Northeasterly 10.00 feet of said Lot 4 and lying north of the South 10.00 feet of said Lot 4. iii. LOT 5, BLOCK 1, SOUTHFORK RIDGE THIRD ADDITION Vacate that part of the 5.00 foot wide drainage and utility easement lying west of and adjoining the east line of Lot 5, Block 1, SOUTHFORK RIDGE THIRD ADDITION, according to the recorded plat thereof, lying south of the North 10.00 feet of said Lot 5 and lying north of the South 10.00 feet of said Lot 5. iv. LOT 6, BLOCK 1, SOUTHFORK RIDGE THIRD ADDITION Vacate that part of the 5.00 foot wide drainage and utility easement lying east of and adjoining the west line of Lot 6, Block 1, SOUTHFORK RIDGE THIRD ADDITION, according to the recorded plat thereof, lying south of the North 10.00 feet of said Lot 6 and lying north of the South 10.00 feet of said Lot 6. APPLICABLE LAW 8. The conditional use permit request meets the following standards as required in Section 154.066 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. 9. The vacation of easement meets the requirements of section 13.05 of the Hutchinson City Charter. CONCLUSIONS OF THE LAW 10. The requested conditional use permit is consistent with the comprehensive plan. 11. 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. 12. 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 Findings of Fact — Resolution 14882 Conditional Use Permit and Vacation of Easements Southfork Ridge Third Addition 04/24/2018 Page 5 13. The vacation of easements meets the requirements of section 13.05 of the Hutchinson City Charter. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the application to issue a conditional use permit and vacate easements for certain lots (noted above) within Southfork Ridge Third Addition is hereby approved. Adopted by the City Council this 24th day of April, 2018. ATTEST: Matt Jaunich City Administrator Gary T. Forcier Mayor DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan Jochum, Planning Director and City of Hutchinson Planning Staff Date: April 12, 2018, for April 17, 2018, Planning Commission Meeting Application: Consideration of a Conditional Use Permit to Amend Planned Development District and Vacation of Easements Applicant: Gus Wurdell, Owner: Security Bank & Trust Co. CONDTIONAL USE PERMIT AND VACATION OF EASEMENTS The applicant is requesting approval of two items for Southfork Ridge Third Addition, including: 1. Conditional Use Permit to amend the PDD to reduce the minimum front yard setbacks from 25 to 20 -feet on 11 lots. This request is to allow larger units to be constructed on the lots. In addition, the interior lot line setbacks for 12 lots are proposed to be zero feet to accommodate twin homes. 2. Vacation of easements along four lot lines to allow construction of twin homes in what currently is easement area. The development plans for this site have been revised several times over the years. The development was originally platted for twin homes; however, it was later changed to detached cottage homes. This proposal is a combination of twin homes and single-family homes. Conditional Use Permit and Vacation of Easements Southfork Ridge Third Addition Planning Commission — 4/17/18 Page 2 GENERAL INFORMATION Existing Zoning: R-3 PD (Medium -High Density Planned Development District) Property Location: Southfork Ridge Third Addition Lot Size: .12 to .27 acres Existing Land Use: Primarily vacant residential lots and approximately six single- family homes. Adjacent Land Use: Residential Adjacent Zoning: R-3 PD (Medium -High Density Planned Development District) Comprehensive Land Use Plan: Low Density Residential Neighborhood (2 to 4 units per acre) Zoning History: Southfork Ridge Third Addition is a replat of the original Southfork Ridge plat. The original plat was designed and platted for construction of twin homes. In 2005, Southfork Ridge Third Addition was replatted to reestablish drainage and utility easements and allow cottage homes, rather than twin homes. The Planned Development District was originally approved with 8 -foot side yard setbacks. In 2007, the PDD was again amended to accommodate twin homes and the side yard setbacks were reduced from 8 feet to 6 feet. Applicable Regulations: Section 154.070 and City Charter Section 13.05 Analysis: Mr. Wurdell is requesting a Conditional Use Permit to amend the planned development district to reduce the following setbacks: • Block 1, Lots 3-6 reduce side yard setback to 0 feet on interior lot lines between lots 3/4 and 5/6 to accommodate a common wall on twin homes. • Block 2, Lots 1-8 reduce side yard setback to 0 feet on interior lot lines between lots 1/2, 3/4, 5/6, and 7/8 to accommodate a common wall on twin homes. • Block 2, Lots 5-8 reduce front yard setback from 25' to 20' to be consistent with lots 1-4 on this block. • Block 3, Lots 2-8 reduce front yard setback from 25' to 20' to be consistent with block 2 across the street. Conditional Use Permit and Vacation of Easements Southfork Ridge Third Addition Planning Commission — 4/17/18 Page 3 The R-3 PD allows for dimensional standards for lots to be set on a lot by lot basis and "to encourage a more creative approach in the utilization of land which may be characterized by special features of the geography, topography, size or shape of a particular property; and to provide a compatible and stable environment in harmony with that of the surrounding area. Conformance to the site plan is required and changes are processed through an amendment to the PDD" (Section 154.070, Hutchinson Zoning Ordinance). Staff did discuss the requested 20 -foot setback request at length. There were some concerns that the shorter driveways due to the reduced setback to 20 feet may affect the trail/sidewalk facility on the south side of Grant Ave SE due to vehicles in the driveway overhanging the trail/sidewalk. However, after discussion it was noted that 20 feet is the length of a typical parking stall and would provide enough room for parking one vehicle in the driveway without blocking the trail/sidewalk facility. It was also made clear that blocking trails/sidewalks in any part of town is not permitted and this situation would be treated no differently. In addition, easements requested to be vacated between lots 3 and 4 of block 1 and lots 5 and 6 of block 1. Vacating the easements will allow twin homes to be built that have a zero lot line and a shared wall on the property line. Separate water and sewer services are required per lot. There is a tile on the south property line. The developer must verify there will be not be any construction over the storm sewer line on the south edge of the plat. Conditional Use Permit: The Conditional Use Permit (CUP) is needed to amend the Planned Development District. 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. Recommendation: Staff recommends approval of the Conditional Use Permit and Vacation of Easements with the following conditions: Individual lots may not exceed 50% lot coverage requirement. Conditional Use Permit and Vacation of Easements Southfork Ridge Third Addition Planning Commission — 4/17/18 Page 4 2. Removal or relocation of any services will be at the owner's expense. 3. Separate water and sewer services will be required for each lot. 4. Applicant shall verify that there will be no building over any storm sewer lines. 5. Ensure all necessary drainage and utility easements are in place and re-establish these easements if they were previously vacated and don't conform to this plan. 6. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. -vv „- t '1-D it L 1-1 1 O t H LL I L: H I N 5 DN CDP Y SOUTHFORK RIDGE THIRD ADDITION n P T — - EEA/Igrf 4'W RASO OW THE .SrVl LIN£ ::V' &0p f. p ar,rRfr'pb' RIE: y', WaCri !S ASSVLlfD TO AFAR SC!/TN 99 O£CA£FS !! MBx.:'i.' r9 :Wa WaS CASK -- $D°f8Y'9t' 172frp-. eFNCH MARK 9:WC W POM£F POLE Ar ME SW ow cr .'FEFER!xw Starr- Sr AND C0V1 Vr1W AWWC W4 MI? 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Sr,q,r C.}t __ 200A Eaeaa pa a to a me pa r reayn y r a�" and an. of«ed lne �h_'�auy a1 �� 7065 _+yjeII��-�`u�ctaae�cZw�nfy ,aafcr c .t Tarr. ps Jadlr h 1M lea' all id m m¢ -dAC_ fhl. 10G r J/„L7 L(y�j�aa�- krcLaad ww.ty a.a„..er r n /y fhpl !ny ! n' FAM A Fher' 1 IM Dyrn lY Raeardar rte- rxrrd on lhe, P003 vrAt(Ilo•cftt+ �.R,, and +pr rM'Y recnrtl.d va Desam e+' C—" Re'Mry Westwood Professional Servi7es, Inc. 32-� HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Items for 2018 Street Seal Coating Project (1-6/P18-06) Department: PW/Eng LICENSE SECTION Meeting Date: 4/24/2018 Application Complete Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: City staff requests that the City Council approve the appropriate Resolutions to set a Public Hearing for the above referenced project letting at their May 8th meeting. 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: $ 250,000.00 Total City Cost: $ 250,000.00 Funding Source: Infrastructure Maintenance Funds Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14878 RESOLUTION ORDERING PREPARATION OF REPORT ON IMPROVEMENT LETTING NO. 6/PROJECT NO. 18-06 WHEREAS, it is proposed to improve: 2018 Street Seal Coating: Multiple City street segments to be determined; street surface seal coat application by construction of bituminous material, aggregate, fog seal material and appurtenances. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, the proposed improvement, called Letting No. 6/Project No. 18-06, be referred to the Engineer for study and that that person is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvement is necessary, cost-effective, and feasible; whether it should best be made as proposed or in connection with some other improvement; the estimated cost of the improvement as recommended; and a description of the methodology used to calculate individual assessments for affected parcels. Adopted by the Council this 24th day of April, 2018. Mayor: Gary Forcier City Administrator: Matthew Jaunich HUTCHINSON PUBLIC WORKS/ENGINEERING DEPARTMENT Hutchinson City Center/111 Hassan St SE/Hutchinson MN 55350-2522/320-234-4209/FAX 320-234-4240 ENGINEERING REPORT & FEASIBILITY STUDY TO: Mayor & City Council FROM: Kent Exner, DPW/City Engineer DATE: April 24, 2018 SUBJECT: Letting No. 6/Project No. 18-06 I have studied the following proposed improvements and find that the proposed project is feasible and recommend it be constructed: L6/P18-06 2018 Street Seal Coating: Multiple City street segments to be determined; street surface seal coat application by construction of bituminous material, aggregate, fog seal material and appurtenances. ESTIMATED COST TOTAL Construction Cost $250,000 Engineering $0 Administration $0 Engineering Services - Geotechnical $0 Street Lighting Materials $0 ESTIMATED TOTAL $250,000 ESTIMATED FUNDING TOTAL Assessable Costs $0 State Aid $0 Cit - Bonding $0 City -Water Funds $0 Cit -Wastewater Funds $0 City - Stormwater Funds $0 Cit - Infrastructure Maintenance Funds $250,000 ESTIMATED TOTAL $250,000 RESOLUTION NO. 14879 RESOLUTION RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT LETTING NO. 6/PROJECT NO. 18-06 WHEREAS, pursuant to a resolution of the Council adopted April 24th, 2018, a report has been prepared by Kent Exner, Public Works Director/City Engineer with reference to the following proposed improvements: 2018 Street Seal Coating: Multiple City street segments to be determined; street surface seal coat application by construction of bituminous material, aggregate, fog seal material and appurtenances; and said report was received by the Council on April 24th, 2018. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The Council will consider the improvement in accordance with the report at an estimated total cost of the improvement of $250,000.00. 2. A public hearing shall be held on such proposed improvements on the 8th day of May, 2018, in the Council Chambers of the Hutchinson City Center at 6:00 P.M., and the Clerk shall give mailed and published notice of such hearing and improvements as required by law. Adopted by the Hutchinson City Council this 24th day of April 2018. Mayor: Gary Forcier City Administrator: Matthew Jaunich PUBLICATION NO. 8276 NOTICE OF HEARING ON IMPROVEMENT LETTING NO. 6/PROJECT NO. 18-06 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 8th day of May, 2018, to consider the making of an improvement of Letting No. 6/Project No. 18-06, an improvement of: 2018 Street Seal Coating: Multiple City street segments to be determined; street surface seal coat application by construction of bituminous material, aggregate, fog seal material and appurtenances, pursuant to Minnesota Statutes, Sections 429.011 to 429.111. The estimated City cost of said improvement is $250,000.00, and an Assessable cost of $0.00 for the total estimated cost of $250,000.00 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 proposed improvement will be heard at this meeting. Dated: 04/24/2018 Matthew Jaunich, City Administrator PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS HEARING, WHETHER YOU ARE FOR OR AGAINST THE PROJECT, IN ORDER THAT YOUR COUNCIL CAN BE BETTER INFORMED OF A TRUE REPRESENTATION OF OPINION. PUBLISHED IN THE HUTCHINSON LEADER ON WEDNESDAY, APRIL 25TH, 2018 AND WEDNESDAY, MAY 2ND 2018. CITY OF HUTCHINSON SEALCOATING 2018 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Items for Trail & Parking Improvements Project (1-10/P18-10) Department: PW/Eng LICENSE SECTION Meeting Date: 4/24/2018 Application Complete Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: City staff requests that the City Council approve the appropriate Resolutions to set a Public Hearing for the above referenced project letting at their May 22nd meeting. 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: $ 229,900.00 Total City Cost: $ 229,900.00 Funding Source: City Bonding Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14883 RESOLUTION ORDERING PREPARATION OF REPORT ON IMPROVEMENT LETTING NO. 10/PROJECT NO. 18-10 WHEREAS, it is proposed to improve: Trail & Parking Improvements: 5th Avenue SE Bridge & Elks Park Areas; multi -use trail and on -street parking implementations by construction of grading, aggregate base, concrete curb & gutter, bituminous/concrete surfacing, pavement markings and appurtenances. pursuant to Minnesota Statutes, Sections 429.011 to 429.111. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, the proposed improvement, called Letting No. 10/Project No. 18-10, be referred to the Engineer for study and that that person is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvement is necessary, cost-effective, and feasible; whether it should best be made as proposed or in connection with some other improvement; the estimated cost of the improvement as recommended; and a description of the methodology used to calculate individual assessments for affected parcels. Adopted by the Council this 24th day of April, 2018. Mayor: Gary Forcier City Administrator: Matthew Jaunich HUTCHINSON PUBLIC WORKS/ENGINEERING DEPARTMENT Hutchinson City Center/111 Hassan St SE/Hutchinson MN 55350-2522/320-234-4209/FAX 320-234-4240 ENGINEERING REPORT & FEASIBILITY STUDY TO: Mayor & City Council FROM: Kent Exner, DPW/City Engineer DATE: April 24, 2018 SUBJECT: Letting No. 10/Project No. 18-10 I have studied the following proposed improvements and find that the proposed project is feasible and recommend it be constructed: L10/P18-10 Trail & Parking Improvements: 5th Avenue SE Bridge & Elks Park Areas; multi -use trail and onstreet parking implementations by construction of grading, aggregate base, concrete curb & gutter, bituminous/concrete surfacing, pavement markings and appurtenances. ESTIMATED COST TOTAL Construction Cost $190,000 Engineering $28,500 Administration $11,400 Engineering Services - Geotechnical $0 Street Lighting Materials $0 ESTIMATED TOTAL $229,900 ESTIMATED FUNDING TOTAL Assessable Costs $0 State Aid $0 Cit - Bonding $229,900 City -Water Funds $0 City -Wastewater Funds $0 City - Stormwater Funds $0 Cit - Infrastructure Maintenance Funds $0 ESTIMATED TOTAL $229,900 RESOLUTION NO. 14884 RESOLUTION RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT LETTING NO. 10/PROJECT NO. 18-10 WHEREAS, pursuant to a resolution of the Council adopted April 24th, 2018, a report has been prepared by Kent Exner, Public Works Director/City Engineer with reference to the following proposed improvements: Trail & Parking Improvements: 5th Avenue SE Bridge & Elks Park Areas; multi -use trail and on -street parking implementations by construction of grading, aggregate base, concrete curb & gutter, bituminous/concrete surfacing, pavement markings and appurtenances. pursuant to Minnesota Statutes, Sections 429.011 to 429.111; and said report was received by the Council on April 24th, 2018. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The Council will consider the improvement in accordance with the report at an estimated total cost of the improvement of $229,900.00. 2. A public hearing shall be held on such proposed improvements on the 22nd day of May, 2018, in the Council Chambers of the Hutchinson City Center at 6:00 P.M., and the Clerk shall give mailed and published notice of such hearing and improvements as required by law. Adopted by the Hutchinson City Council this 24th day of April 2018. Mayor: Gary Forcier City Administrator: Matthew Jaunich PUBLICATION NO. 8278 NOTICE OF HEARING ON IMPROVEMENT LETTING NO. 10/PROJECT NO. 18-10 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 22nd day of May, 2018, to consider the making of an improvement of Letting No. 6/Project No. 18-06, an improvement of: Trail & Parking Improvements: 5th Avenue SE Bridge & Elks Park Areas; multi -use trail and on -street parking implementations by construction of grading, aggregate base, concrete curb & gutter, bituminous/concrete surfacing, pavement markings and appurtenances. pursuant to Minnesota Statutes, Sections 429.011 to 429.111. The estimated City cost of said improvement is $229,900.00, and an Assessable cost of $0.00 for the total estimated cost of $229,900.00. 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 proposed improvement will be heard at this meeting. Dated: 04/24/2018 Matthew Jaunich, City Administrator PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS HEARING, WHETHER YOU ARE FOR OR AGAINST THE PROJECT, IN ORDER THAT YOUR COUNCIL CAN BE BETTER INFORMED OF A TRUE REPRESENTATION OF OPINION. PUBLISHED IN THE HUTCHINSON LEADER ON WEDNESDAY, MAY 9TH, 2018 AND WEDNESDAY, MAY 16TH 2018. CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 04/11/18 - 04/24/18 Check Date ---------------- 04/13/2018 Check ---------------- EFT679 Vendor Name ------------------------------------------------------- EFTPS Description --------------------------------------------------------------- PAYROLL 3/25 - 4/7/2018 Amount ----------------- 70,659.65 04/13/2018 EFT680 Child Support PAYROLL 3/25 - 4/7/2018 324.00 04/13/2018 EFT681 MN Dept of Revenue PAYROLL 3/25 - 4/7/2018 13,954.51 04/13/2018 EFT682 Provident Life and Acc Ins PAYROLL 3/25 - 4/7/2018 703.64 04/13/2018 EFT683 PERA PAYROLL 3/25 - 4/7/2018 49,966.85 04/13/2018 EFT684 TASC-Flex PAYROLL 3/25 - 4/7/2018 1,816.06 04/13/2018 EFT685 TASC-H S A PAYROLL 3/25 - 4/7/2018 12,820.19 04/13/2018 EFT686 ICMA PAYROLL 3/25 - 4/7/2018 2,299.06 04/13/2018 EFT687 VOYA PAYROLL 3/25 - 4/7/2018 740.00 04/13/2018 EFT688 MNDCP PAYROLL 3/25 - 4/7/2018 305.00 04/13/2018 200527 NCPERS PAYROLL 3/25 - 4/7/2018 368.00 04/13/2018 200528 HART PAYROLL 3/25 - 4/7/2018 625.30 04/24/2018 200529 AARP APRIL CLASSES - SENIOR CENTER 285.00 04/24/2018 200530 ACE HARDWARE VARIOUS R&M SUPPLIES 350.60 04/24/2018 200531 AHLGREN ELECTRIC CHANDELIER, KITCHEN LIGHT REPAIR - EVENT CTR 274.08 04/24/2018 200532 ALPHA TRAINING & TACTICS LLC PARACLETE ARMIS TACTICAL ARMOR - PD 2,841.44 04/24/2018 200533 ALPHA WIRELESS APRIL MAINT AGMT - POLICE RADIOS 794.75 04/24/2018 200534 AMERICAN BOTTLING CO APRIL COST OF GOODS - LIQUOR 182.32 04/24/2018 200535 AMERICAN DOOR WORKS ROBERTS PARK S CONCESSION DOOR: INSTALL 1,232.00 04/24/2018 200536 AMERIPRIDE SERVICES VARIOUS CLEANING SUPPLIES 108.36 04/24/2018 200537 ANDERSON -CRANE RUBBER COMPANY OXIDATION DITCH ROTOR BEARING - WWTP 3,764.74 04/24/2018 200538 ANIMAL MEDICAL CENTER ON CROW RIVER MARCH PROCESSING FEES/BOARDING 954.00 04/24/2018 200539 ARNESON DISTRIBUTING CO APRIL COST OF GOODS - LIQUOR 711.90 04/24/2018 200540 ARROW TERMINAL LLC SHOP SUPPLIES: STREETS DEPT 231.21 04/24/2018 200541 ARTISAN BEER COMPANY APRIL COST OF GOODS - LIQUOR 1,947.00 04/24/2018 200542 AUTO VALUE - GLENCOE VARIOUS AUTO R&M SUPPLIES 860.00 04/24/2018 200543 AUTOMATIC SYSTEMS CO EMERGENCY SERVICE: MAIN LIFT STATION-WWTP 3,559.15 04/24/2018 200544 B & C PLUMBING & HEATING INC REPAIRS TO ROBERTS PARK BATHROOMS 1,650.26 04/24/2018 200545 BARNUM GATE SERVICES INC REPAIRED GL CIRCUIT BOARD - WTP 709.50 04/24/2018 200546 BASF CORPORATION MULCH COLORANT - CREEKSIDE INVENTORY 20,184.00 04/24/2018 200547 BEACON ATHLETICS PORTABLE PITCHING MOUNDS/ BATTING CAGE NET 16,575.00 04/24/2018 200548 BELLBOY CORP APRIL COST OF GOODS - LIQUOR 1,434.64 04/24/2018 200549 BETKER, JON UB refund for account: 1-786-4400-7-00 73.39 04/24/2018 200550 BRANDED SOLUTIONS LIQUOR STORE PROMOTIONAL PRODUCTS 409.92 04/24/2018 200551 BREAKTHRU BEVERAGE APRIL COST OF GOODS - LIQUOR 10,092.88 04/24/2018 200552 BUREAU OF CRIM. APPREHENSION CJDN ACCESS FEES 1/1 - 3/31'18 390.00 04/24/2018 200553 C & L DISTRIBUTING APRIL COST OF GOODS - LIQUOR 15,371.50 04/24/2018 200554 CARDIAC SCIENCE SQUAD #1 DEFIB PADS 40.80 04/24/2018 200555 CARS ON PATROL SHOP LLC SQUAD REPAIRS AND CAR TOWING 284.50 04/24/2018 200556 CARVER COUNTY COURT ADMIN BAIL: R HEILMAN 500.00 04/24/2018 200557 CENTRAL HYDRAULICS ST 969: ELBOWS, HOSE, HOSE ENDS 782.56 04/24/2018 200558 CENTRAL MCGOWAN HATS SHOP: OXYGEN 497.81 04/24/2018 200559 CORE & MAIN LP WATER METER PARTS - WTP 5,385.13 04/24/2018 200560 CROW RIVER AUTO & TRUCK REPAIR SQUAD CAR REPAIRS 495.00 04/24/2018 200561 CROW RIVER GOLF CLUB LIQUOR STORE EVENT 4/5/18 536.88 04/24/2018 200562 CROW RIVER PRESS INC SENIOR NEWSLETTERS 93.41 04/24/2018 200563 DORSEY & WHITNEY LLP LEGAL SERVICES ON HOSPITAL MATTER 5,225.00 04/24/2018 200564 DPC INDUSTRIES INC SODIUM HYPO - WWTP CHEMICALS 1,808.64 04/24/2018 200565 DYNA SYSTEMS CONCRETE REPAIR, DEGREASER -STREETS DEPT 2,021.69 04/24/2018 200566 ECOLAB PEST ELIMINATION COCKROACH/RODENT PROGRAM 64.93 04/24/2018 200567 ELECTRO WATCHMAN REPLACED SMOKE DETECTOR - LIBRARY 307.01 04/24/2018 200568 FARM -RITE EQUIPMENT HSBP WING EDGE, ANGLED EDGE, WING ANGLED 217.47 04/24/2018 200569 FASTENAL COMPANY VARIOUS R&M SUPPLIES 53.57 04/24/2018 200570 FIRST ADVANTAGE LNS OCC HEALTH SOLU DRUG TESTING 234.09 04/24/2018 200571 FIRST CHOICE FOOD & BEVERAGE SOLUTI COL 1.5 FP CASE 304.00 04/24/2018 200572 G & K SERVICES MATS, TOWELS, COVERALLS, HAND CLEANER 167.44 04/24/2018 200573 GAVIN, DONLEY & OSTLUND, LTD FLAT FEE LEGALAGREEMENT: MARCH 3,300.00 04/24/2018 200574 GOVT FINANCE OFFICERS ASSN - GFOA 2018 GFOA DUES - REID & JUERGENSEN 340.00 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 04/11/18 - 04/24/18 Check Date ---------------- 04/24/2018 Check ---------------- 200575 Vendor Name ------------------------------------------------------- GRAINGER Description --------------------------------------------------------------- VARIOUS R&M SUPPLIES Amount ----------------- 92.16 04/24/2018 200576 GREAT NORTHERN ENVIORNMENTAL LLC UV BULB REPLACEMENTS - WWTP 14,529.25 04/24/2018 200577 GREIG, TYRON & ANGELA UB refund for account: 3-690-8360-9-02 5.17 04/24/2018 200578 HALQUIST, DAVID REIMB: SAFETY FOOTWEAR 175.00 04/24/2018 200579 HANSEN GRAVEL INC. MARCH CONTRACT SNOW REMOVAL 4,631.00 04/24/2018 200580 HART'S AUTO SUPPLY CAPRICE SQUAD ROTORS & PADS 974.00 04/24/2018 200581 HENRY'S WATERWORKS INC COLD PATCH - STREETS DEPT 1,692.40 04/24/2018 200582 HILLYARD / HUTCHINSON ICE MELT, BATHROOM SUPPLIES 341.17 04/24/2018 200583 HOLT MOTORS INC AUTO REPAIR AND SUPPLIES 2,554.30 04/24/2018 200584 HOLT TOUR AND CHARTER INC. SENIOR TRIP - MASONIC HERITAGE CENTER 625.00 04/24/2018 200585 HUTCH CAFE EDA MEETING DINNERS - JAN -MARCH 288.71 04/24/2018 200586 HUTCHFIELD SERVICES INC COMMERICAL JANITORIAL- APRIL 2018 HATS 1,415.00 04/24/2018 200587 HUTCHINSON CO-OP VARIOUS R&M SUPPLIES, KEROSENE, LP GAS 7,050.44 04/24/2018 200588 HUTCHINSON HEALTH TESTING: D HALQUIST, K NELSON 348.00 04/24/2018 200589 HUTCHINSON LEADER MARCH ADVERTISING & PUBLICATIONS 3,991.84 04/24/2018 200590 HUTCHINSON SENIOR ADVISORY BOARD SR TOUR REIMB - ORCHESTRA HALL 768.00 04/24/2018 200591 HUTCHINSON UTILITIES MARCH UTILITIES 3/1 - 4/1'18 132,713.70 04/24/2018 200592 HUTCHINSON WHOLESALE #1550 AUTO/EQUIP R&M SUPPLIES- PUBLIC WORKS 370.16 04/24/2018 200593 HUTCHINSON WHOLESALE #1551 AUTO/EQUIP R&M SUPPLIES- CREEKSIDE 5.38 04/24/2018 200594 HUTCHINSON WHOLESALE #1552 AUTO/EQUIP R&M SUPPLIES- PARKS 71.98 04/24/2018 200595 HUTCHINSON, CITY OF Storm Drainage 3/1 -3/31'18 6,127.22 04/24/2018 200596 HUTTON, CHRIS REIMB: MNDOT LANDSCAPE CERTIFICATION 30.00 04/24/2018 200597 INGSTAD BROADCASTING MARCH KDUZ ADVERTISING - LIQUOR STORE 363.00 04/24/2018 200598 INSELMANN, ERIC EXPENSE REIMB: MEAL WHILE AT CONFERENCE 33.75 04/24/2018 200599 INTERNATIONAL CODE COUNCIL INC BLDG CODE BASICS- BLDG INSPECTIONS SUPPLIES 147.95 04/24/2018 200600 INTERSTATE BATTERY SYSTEM MINNEAPOL SHOP PARTS -STREETS DEPT 1,020.29 04/24/2018 200601 ISD #423 MARCH CLASSES 641.00 04/24/2018 200602 JACK'S UNIFORMS & EQUIPMENT NAVY PANTS- POLICE UNIFORMS 211.79 04/24/2018 200603 JJ TAYLOR DIST OF MN APRIL COST OF GOODS - LIQUOR 4,375.80 04/24/2018 200604 JLR GARAGE DOOR SERVICE GARAGE DOOR REPAIRS - WWTP 150.00 04/24/2018 200605 JOHNSON BROTHERS LIQUOR CO. APRIL COST OF GOODS - LIQUOR 22,134.01 04/24/2018 200606 JOURNAL COMMUNICATIONS EDA ADVERTISING 5,995.00 04/24/2018 200607 J U U L CONTRACTING CO MARCH/APRIL CONTRACT SNOW REMOVAL 574.00 04/24/2018 200608 KERI'S CLEANING 4/1- 4/15 CC, LIB, SR DINING, FIRE DEPT 2,044.00 04/24/2018 200609 KLOSS, TOM REIMB: MILEAGE TO SECURITY MEETING 72.49 04/24/2018 200610 KRANZ LAWN & POWER BACKPACK BLOWER TUNE-UP; CHAINSAW REPAIR 154.48 04/24/2018 200611 KWIKTRIP PIZZA- RECREATION CONCESSIONS SUPPLIES 126.12 04/24/2018 200612 VOID - 04/24/2018 200613 LANDS' END BUSINESS OUTFITTER LOGO SHIRTS, JACKETS, VESTS - POLICE 473.00 04/24/2018 200614 LANO EQUIPMENT OF NORWOOD UNIT #055: PIN LOCK - AIRPORT VEHICLE 56.10 04/24/2018 200615 LEAGUE OF MN CITIES -INS TRUST 2ND QTR INSURANCE PREMIUMS 4/1/18 - 6/30/18 68,879.00 04/24/2018 200616 LITCHFIELD BUILDING CENTER BENCH BOARDS STAIN, ETC - PARKS 128.50 04/24/2018 200617 LOCATORS & SUPPLIES FIRST AID KIT - HATS FACILITY 95.73 04/24/2018 200618 LOCHER BROTHERS INC APRIL COST OF GOODS - LIQUOR 21,780.05 04/24/2018 200619 LOGIS MARCH NETWORK/SOFTWARE COSTS 6,089.00 04/24/2018 200620 MARCO TECHNOLOGIES, LLC March Cost per Print - COPIERS 1,741.22 04/24/2018 200621 MAYTAG LAUNDRY & CAR WASH 3/2, 3/21 LINEN CLEANING - EVENT CENTER 149.48 04/24/2018 200622 MCLEOD COUNTY AUDITOR -TREASURER IST HALF TAXES/ASSMTS - CITY/EDA PARCELS 16,275.24 04/24/2018 200623 MCLEOD COUNTY COURT ADMINISTRATOR BAIL: T SHERWOOD 200.00 04/24/2018 200624 MCLEOD COUNTY HIGHWAY DEPT. 6'X 1/2" X 6" CARBON FLAT BLADE - STREETS PART 443.23 04/24/2018 200625 MCLEOD COUNTY RECORDER A 434577: BLUE KIN HOMES RECORDING FEE 46.00 04/24/2018 200626 MEDICA May Medical Insurance 138,857.05 04/24/2018 200627 MEI TOTAL ELEVATOR SOLUTIONS APR - MAY BI -MONTHLY SERVICE - LIBRARY 183.33 04/24/2018 200628 MENARDS HUTCHINSON VARIOUS R&M SUPPLIES 277.31 04/24/2018 200629 MESSAGE MEDIA U.S.A., INC MONTHLY ACCESS FEE -APRIL 30.00 04/24/2018 200630 MINNESOTA CHIEFS OF POLICE ADD'L ANNUAL DUES - RATE INCREASE 29.00 04/24/2018 200631 MINNESOTA CONTINUING LEGAL EDUCATIO MN DWI DESKBOOK 4TH ED - LEGAL DEPT 141.30 04/24/2018 200632 MINNESOTA VALLEY TESTING LAB COLIFORM, BOD, CARBON TESTING 289.80 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 04/11/18 - 04/24/18 Check Date ---------------- 04/24/2018 Check ---------------- 200633 Vendor Name ------------------------------------------------------- MN DEPT OF LABOR & INDUSTRY/CODE Description --------------------------------------------------------------- IST QTR STATE SURCHARGES - BLDG PERMITS Amount ----------------- 4,575.28 04/24/2018 200634 MN DEPT OF TRANSPORTATION 2018 ARMER MOTOROLA SUA II PLUS AGREEMENT 2,218.90 04/24/2018 200635 MNDRIVERSMANUALS.COM MOTORCYCLE MANUALS - DMV 146.09 04/24/2018 200636 MOTION INDUSTRIES INC BAGGER R&M PARTS- CREEKSIDE 910.57 04/24/2018 200637 NEGOCE, LLC APRIL COST OF GOODS - LIQUOR 352.92 04/24/2018 200638 NEIL WEGNER 75% COST SHARE FOR WELL SEALING 261.18 04/24/2018 200639 NORTH AMERICAN SAFETY INC SAFETY EYEWEAR AND GLOVES 30.50 04/24/2018 200640 NORTHERN BUSINESS PRODUCTS TOWELS, SANITIZER, LINERS, PAPER, MARKER 527.48 04/24/2018 200641 NORTHERN SAFETY & INDUSTRIAL HATS BLDG: FIRST AID KIT 33.89 04/24/2018 200642 NORTHERN STATES SUPPLY INC LED STAND, BATTER/CHARGER STARTER KIT, H 51.22 04/24/2018 200643 NORTHLAND BUSINESS SYSTEMS RECORDING SERVER AND SOFTWARE 15,409.00 04/24/2018 200644 NU -TELECOM APRIL PHONE SERVICES 74.95 04/24/2018 200645 NUSS TRUCK & EQUIPMENT SHOP PARTS AND REPAIRS TO #613 OIL COOLER 2,616.66 04/24/2018 200646 O'REILLY AUTO PARTS SUPPLIES FOR SCULPTURE PADS 497.89 04/24/2018 200647 OFFICE DEPOT OFFICE SUPPLIES FOR VARIOUS DEPTS 207.42 04/24/2018 200648 PAUSTIS WINE COMPANY APRIL COST OF GOODS - LIQUOR 4,339.00 04/24/2018 200649 PELLINEN LAND SURVEYING HUTCHINSON HEALTH LOTS 16 & 18 50.00 04/24/2018 200650 PENMAC STAFFING SERVICES, INC. MAR/APR TEMPORARY STAFFING - CREEKSIDE 6,214.96 04/24/2018 200651 PHILLIPS WINE & SPIRITS APRIL COST OF GOODS - LIQUOR 21,782.05 04/24/2018 200652 PREMIER TECH CHRONOS BAGGER REPAIR PARTS - CREEKSIDE 2,881.92 04/24/2018 200653 PRO -TEC DESIGN INC. NEW SECURITY CAMERA SYSTEM - LIQUOR STORE 23,328.85 04/24/2018 200654 RDO EQUIPMENT CO. WHEEL LOADER REPAIRS - CREEKSIDE 4,177.82 04/24/2018 200655 RJ THOMAS MFG CO INC 6' BENCH - VMF TO BE REIMB BY DONATION 3,504.00 04/24/2018 200656 ROTOCHOPPER GRINDER: SPRINGS - CREEKSIDE 44.63 04/24/2018 200657 RUNNING'S SUPPLY VARIOUS R&M SUPPLIES 325.41 04/24/2018 200658 SAM'S CLUB DIRECT CONCESSIONS SUPPLIES 369.86 04/24/2018 200659 SAM'S TIRE SERVICE NEW TIRES FOR SQUAD #7 583.16 04/24/2018 200660 SHAW, KAREN MARCH CLASSES 270.00 04/24/2018 200661 SIBLEY COUNTY SHERIFF'S OFFICE CR -16-1607 #18000143 - SUBPOENA: B CRUZ 100.00 04/24/2018 200662 SOUTHERN WINE & SPIRITS OF MN APRIL COST OF GOODS - LIQUOR 7,881.55 04/24/2018 200663 STANDARD PRINTING -N -MAILING MAILING/POSTAGE SERVICES 4/1-4/14'18 609.53 04/24/2018 200664 STAPLES ADVANTAGE VARIOUS OFFICE SUPPLIES 497.80 04/24/2018 200665 STEWARD ENTERPRISE INC GREASE DRUM - STREETS DEPT 2,065.41 04/24/2018 200666 STREICH TRUCKING CREEKSIDE FREIGHT TO LYNDE/ROUND TRIP 530.00 04/24/2018 200667 SUN LIFE FINANCIAL April Admin Fees 10,290.10 04/24/2018 200668 TASC May 2018 Flex Adm. Fees 106.02 04/24/2018 200669 TEK MECHANICAL SERVICE CALL 4/2/18 - WTP 90.00 04/24/2018 200670 THOMSON REUTERS -WEST WEST INFO CHARGES 3/1- 3/31'18 - LEGAL 2,659.81 04/24/2018 200671 TODD NELSON REFUND: CANCELLATION - UNABLE TO ATTEND 38.00 04/24/2018 200672 TRI COUNTY WATER MONTHLY WATER SERVICE - PD & CREEKSIDE 339.50 04/24/2018 200673 TRIPLE G COMPANIES MARCH 2018 CONTRACT SNOW REMOVAL 700.00 04/24/2018 200674 UNUM LIFE INSURANCE CO OF AMERICA May Life Insurance 2,297.51 04/24/2018 200675 VANTIV INTEGRATED PAYMENT SOLUTIONS VFN VX805 USB - EVENT CENTER 275.00 04/24/2018 200676 VERIZON WIRELESS MAR 03 - APR 02 SERVICES 38.25 04/24/2018 200677 VERTIV SERVICES INC PREVENTATIVE MAINTENANCE - IT 2,000.00 04/24/2018 200678 VIKING BEER APRIL COST OF GOODS - LIQUOR 14,942.35 04/24/2018 200679 VIKING COCA COLA APRIL COST OF GOODS - LIQUOR 339.47 04/24/2018 200680 VIVID IMAGE DOMAIN 1 YR RENEWAL: HUTCHTIGERPATH - EDA 70.00 04/24/2018 200681 W S & D SERVICE REFUND ON PERMIT #PB18-0094 - CANCELLED JOB 51.00 04/24/2018 200682 WASTE MANAGEMENT OF WI -MN LANDFILL DISPOSAL MAR 16TH - 31ST 5,667.58 04/24/2018 200683 WELCOME NEIGHBOR 1 NEW RESIDENT VISIT 60.00 04/24/2018 200684 WEST CENTRAL SANITATION INC. MARCH RESIDENTIAL REFUSE HAULING 46,843.04 04/24/2018 200685 WEST CENTRAL SHREDDING SHREDDING SERVICES - CITY CENTER & POLICE 50.00 04/24/2018 200686 WICHTERMAN, KEN REIMB: SAFETY FOOTWEAR 125.00 04/24/2018 200687 ZIEGLER INC FILTERS FOR ROTOCHOPPER GRINDER 254.62 04/24/2018 200688 L & P SUPPLY CO BATTERY CHARGER - STREETS 129.95 Total - Check Disbursement $ 930,074.83 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 04/11/18 - 04/24/18 Check Date ---------------- Check ---------------- Vendor Name ------------------------------------------------------- Description --------------------------------------------------------------- Amount ----------------- Department Purchasing Card Activity - March 2018 Date Dept Vendor Name Description Amount 03/05/2018 ADMIN MNEFILE Convenience Fees - vs Blue Kins Homes, LLC 5.00 03/05/2018 ADMIN MNEFILE Court Filing Fees - vs Blue Kins Homes, LLC 292.00 03/19/2018 ADMIN CASH WISE Food/Beverages for Strategic Planning Session 64.00 03/19/2018 ADMIN CASH WISE CARIBOU Coffee for Strategic Planning Session 69.47 03/19/2018 ADMIN CASH WISE Food/Beverages for Strategic Planning Session 74.00 03/19/2018 ADMIN SUBWAY Food for Strategic Planning Session 149.25 03/19/2018 ADMIN QDOBA Food for Strategic Planning Session 252.34 03/12/2018 PLANNING GIH GLOBALINDUSTRIALEQ key lockbox 79.95 03/14/2018 PLANNING SENSIBLE LAND USE COALITION training 50.00 03/20/2018 PLANNING DEPARTMENT OF LABOR & INDUSTRY training class 85.00 03/05/2018 POLICE MAIN STREET SPORTS BAR Food to feed staff during extended investigation 70.87 03/02/2018 FIRE MINNESOTA STATE FIRE CHIEFS ASSN MSFCA Dues for officers 264.00 03/02/2018 FIRE MINNESOTA STATE FIRE CHIEFS ASSN State fire school registration - Peterson, vik, Schulte 755.00 03/06/2018 FIRE PRO TORQUE TOOLS Shop tools for SCBA 60.99 03/07/2018 FIRE SUBWAY food for FF after large/lengthy fire. 82.35 03/12/2018 FIRE BEST WESTERN fire school lodging, Dan sargent 220.72 03/14/2018 FIRE CASH WISE Receipt fees. 10.00 03/19/2018 FIRE GRANDMAS SALOON & GRILL Fire school meals - Abelson, McKay, Schulte 115.00 03/19/2018 FIRE GLOBAL TEST SUPPL Oxygen sensor for gas meter 140.30 03/19/2018 FIRE DULUTH ENTERTAINMENT CON Fire School hotel parking 5.00 03/19/2018 FIRE CENEX Fuel for vehicle, Fire School explosives class. 42.00 03/19/2018 FIRE DULUTH ENTERTAINMENT CON Fire School hotel parking 5.00 03/19/2018 FIRE PIER B RESORT Fire school Meals for Abelson, McKay and Schulte 135.00 03/20/2018 FIRE GRANDMAS SALOON & GRILL Fire school Meals for Abelson, McKay 54.00 03/20/2018 FIRE PIER B RESORT Fire school lodging, Jeff McKay 119.67 03/20/2018 FIRE PIER B RESORT Fire school lodging, Randy Abelson 119.67 03/20/2018 FIRE PIER B RESORT Fire school lodging, Josh Schulte 119.67 03/26/2018 FIRE WALGREENS Photos for staff picture board at station. 7.96 03/05/2018 IT LEEANN CHIN LOGIS IT meeting 13.51 03/05/2018 IT INTUIT QBOOKS/PROLINE Quick Books for CreekSide 2,362.25 03/08/2018 IT INTUIT QBOOKS/PROLINE Auto charge over charged us for QuickBooks. (458.21) 03/08/2018 IT AMAZON Power strip for HUC 23.43 03/08/2018 IT AMAZON Phone Case for Mike Lien 17.35 03/09/2018 IT AMAZON Credit for phone case (9.70) 03/09/2018 IT AMAZON Hearing impaired equipment for Council Chambers 118.88 03/09/2018 IT SMARTDRAW Smart Draw software maintenance 139.90 03/09/2018 IT NEWEGG Hard Drive for SCADA server 77.00 03/12/2018 IT AMAZON Mini tower stands 67.29 03/12/2018 IT AMAZON Hearing Impaired equipment 204.00 03/13/2018 IT AMAZON Return of hearing impaired equip -wrong frequency (91.74) 03/12/2018 IT FAXPRODUCTS Black Ice Software Maintenance 69.98 03/12/2018 IT AMAZON Surge Protectors 46.86 03/13/2018 IT BESTBUY Ipad for Liquor Hutch 268.43 03/14/2018 IT AMAZON CD sleeves DVDs 31.57 03/15/2018 IT AMAZON Serial cable Myron Polzin 9.89 03/20/2018 IT AMAZON Iphone cords 12.99 03/20/2018 IT AMAZON Iphone cords 12.99 03/22/2018 IT AMAZON Galaxy Note case for Marc Sebora 9.45 03/23/2018 IT AMAZON Small Screwdriver Set 8.97 03/23/2018 IT BORDER STATES ELECTRIC Fiber cable for bridge project 386.31 03/27/2018 IT AMAZON Surface Pro screen protectors 25.74 03/29/2018 IT AMAZON Mount for PCI laptop bldg. dept 189.99 03/30/2018 IT LEEANN CHIN Lunch for T.Kloss while at LOGIS GIS meeting 13.51 03/30/2018 IT AMAZON Keyboards 30.00 CHECK REGISTER FOR CITY OF HUTCHINSON CHECK DATE FROM 04/11/18 - 04/24/18 Check Date ---------------- 03/05/2018 Check ---------------- PUB WKS Vendor Name ------------------------------------------------------- MN SOCIETY OF PROFESSIONAL ENGINEER Description --------------------------------------------------------------- MSPE Annual Dues- Kent E. Amount ----------------- 384.00 03/05/2018 PUB WKS HAYES INSTRUMENT CO Construction Staking Supplies 632.39 03/08/2018 PUB WKS POLLUTION CONTROL AGENCY MPCASWPermit- CenturyAveSERecon 400.00 03/09/2018 PUB WKS U OF M CONTLEARNING LTAP Supervisor Training - Bruce Fenske 125.00 03/12/2018 PUB WKS PAYPAL WWTF PLC Interface 259.94 03/12/2018 PUB WKS PAYPAL WWTF programmable logic controller PLC 432.25 03/13/2018 PUB WKS FIRE HOSE DIRECT WWTF Maintenance Hose/Fittings/Valve/Nozzle 1,354.21 03/16/2018 PUB WKS AMAZON Update HATS Medicine/First Aid Cabinets 8.92 03/16/2018 PUB WKS INTL SOC ARBORICULTURE Forestry Training/EducationalMaterials 280.65 03/19/2018 PUB WKS AMAZON Update HATS Medicine/First Aid Cabinets 2.56 03/19/2018 PUB WKS AMAZON Update HATS Medicine/First Aid Cabinets 5.92 03/19/2018 PUB WKS AMAZON Update HATS Medicine/First Aid Cabinets 12.35 03/19/2018 PUB WKS AMAZON Update HATS Medicine/First Aid Cabinets 44.99 03/19/2018 PUB WKS GIH GLOBALINDUSTRIALEQ Update HATS Medicine/First Aid Cabinets 160.94 03/19/2018 PUB WKS AMAZON Update HATS Medicine/First Aid Cabinets 6.03 03/20/2018 PUB WKS AMAZON Update HATS Medicine/First Aid Cabinets 6.05 03/05/2018 PRCE AMAZON Indoor Playground Wagon 252.09 03/08/2018 PRCE EPIC SPORTS, INC. Soccer Jerseys 61.27 03/15/2018 PRCE UNITED VOLLEYBALL SUPPLY Volleyball Nets 424.22 03/19/2018 PRCE U OF M BKSTRS WEBSITE Chemical Safety Manuals 173.95 03/23/2018 PRCE CROWN AWARDS INC Retirement Plaque 94.98 03/23/2018 PRCE CROWN AWARDS INC Retirement Plaque 1.60 03/26/2018 PRCE CROWN AWARDS INC Retirement Plaque 9.99 03/02/2018 LIQUOR MENARDS HUTCHINSON cleaning supplies 79.53 03/08/2018 LIQUOR O'REILLY AUTO PARTS pallet jack batteries 165.28 03/08/2018 LIQUOR HUTCHINSON ACE light bulb replacement 20.39 03/12/2018 LIQUOR HUTCHINSON ACE cooler reset hardware 21.98 03/13/2018 LIQUOR HUTCHINSON ACE cooler reset hardware 7.29 03/13/2018 LIQUOR HUTCHINSON ACE cooler reset hardware 4.79 03/16/2018 LIQUOR RETAIL INFORMATION TEC CardDefender monthly fee 42.75 03/23/2018 LIQUOR CTC CONSTANTCONTACT.COM email blast constant contact fee 70.00 03/28/2018 LIQUOR AMAZON replacement hose for vacuum 41.54 03/29/2018 LIQUOR AMAZON replacement batteries for second pallet jack 229.90 03/02/2018 EDA PRO AUTO MN INC. Repair brakes on EDA van 552.26 03/22/2018 EDA SUBWAY Lunch for EDA Finance Team meeting 61.73 03/23/2018 EDA CASH WISE Pop for board meetings and batteries for wall clock 17.27 Total - Purchasing Cards 13,477.86 GRAND TOTAL 943,552.69 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Twins Community Fund Grant Department: PRCE LICENSE SECTION Meeting Date: 4/24/2018 Application Complete Contact: Dolf Moon Agenda Item Type: Presenter: Dolf Moon Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: We have been informed that Hutchinson PRCE has been awarded a 2018 Twins Fields for Kids matching grant of $10,000 dollars. These grant funds will be utilized with funds previously authorized by the Council for improvements to Northwoods Park. BOARD ACTION REQUESTED: Accept Twins Community Fund Grant. Fiscal Impact: Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: M NITY FUND TWINS TERRirap, April 3, 2018 Raquel Bushman Hutchinson Parks Recreation and Community Education 900 HARRINGTON ST SW Hutchinson, MN 55350 Dear Raquel: On behalf of the Twins Community Fund Board of Directors, and the entire Minnesota Twins Baseball Club, I am pleased to inform you that Hutchinson Parks Recreation and Community Education has been awarded a 2018 Twins Fields for Kids matching grant of $10,000. These grant funds are to be used specifically for the renovation project you described in your grant application. Enclosed is a grant agreement contract for you to complete and return by April 18, 2018. Your grant check, paid in full, will be sent once we receive your completed grant agreement. In order for us to deem your project complete, you must send us a progress report at 6 months (a form will be included with your grant check) and a final report, including details on how the Community Fund grant was used, receipts and photos of the finished work. We encourage you to announce this grant to your local media. We also ask that you please send us any copies of local media coverage on this grant. Congratulations on being selected for a Twins Fields for Kids grant! We appreciate all that you do for youth base baII/softball in your community and look forward to working with you during the duration of this project. Sincerely, Stephanie Johnson Senior Manager, Community Relations Minnesota Twins Enclosure Twins CorniiiUI-Ii ty Fund . A 501 Ec)(3: Nonpmfit Organisation I Twins VVay • Minneapolis, NMN 55403 . Executive Office: 612.659.3400 w v�v.nainsconz��uniryfund.nrg CORNERSTONE PARTNERS E 7bank DELTA it-�Fnr TWINS FIELDS FOR MDS 2018 Grant Agreement Grantee Organization: Hutchinson Parks Recreation and Community EducationGrant Amount:1$ 0,000 Address: 900 HARRINGTON ST SW Hutchinson, MN 55350 Organization ETN: Organization Contact: Title: Daytime Phone Number: 41-6005253 Raul Bushman Field Name: Brief Project Description: Project Commencement Date: Estimated Project Completion Date: Do you agree to send a 6 month progress report (if your project is not completed) YES NO by December 1, 2018? A progress report from will be included with your grant check. Do you understand that you have 12 months to complete your field renovation YES NO and that if your project is not finished by May 1, 2019 the Twins Community Fund may ask you to return your Fields for Kids grant money for disbursement to another Fields for Kids applicant? Do you understand that this grant money is to be spent as outlined in your YES NO Fields for Kids grant application, and that any changes to the spending of your grant funds must be approved by the Twins Community Fund Board of Directors? Are dedication ceremonies planned for the new/renovated field? YES NO If yes, approximate date of ceremony: The above organization agrees to: • Recognize all Financial supporters of this program (Twins Community Fund and its cornerstone partners) in any public announcement of the grant • Assist the Twins Community Fund in efforts to publicize the receipt of this grant • Display signage provided by the Twirls Community Fund in the form of a field plaque • Send a G Month Update Report detailing work on the field if the project is not yet complete at that time • Send a final report describing how the Community Fund grant was used, receipts and "after" photos following the completion of the field renovation Signature Date Return to: Stephanie Johnson - Twins Community Fund 1 Twins Way -Minneapolis, MN 55403 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Ordinance No. 18-786 - Suspension of Enforcement Department: Police LICENSE SECTION Meeting Date: 4/24/2018 Application Complete Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff New Business Time Requested (Minutes): 2 License Contingency Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: A private party has reserved Masonic West River Park and the accompanying stage for a private event being held in the park on May 18, 2018. The event is being held from 7:00 p.m. - 11:00 p.m. and includes amplified music being provided by a live band and the attendees providing their own alcoholic beverages for consumption. Approximately 30-40 individuals have been invited to attend the private event. The reserving party is requesting that enforcement of the ordinances pertaining to sound amplified music and consumption of alcoholic beverages in city parks be extended to 11:00 p.m. for this event. The reserving party has spoken with the police department and they have indicated they have no concerns with the event or the request. BOARD ACTION REQUESTED: Set second reading and adoption of Ordinance 18-786 for May 8, 2018. Fiscal Impact: $ 0.00 Funding Source: n/a FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: ORDINANCE NO. 18-786 AN ORDINANCE SUSPENDING ENFORCEMENT OF HUTCHINSON CITY ORDINANCES 92.018 AND 112.056 PERTAINING TO HOURS OF USE OF SOUND AMPLIFICATION EQUIPMENT AND CONSUMPTION OF ALCOHOLIC BEVERAGES IN CITY PARKS Findings of the City Council: That a private party is holding a special event at West River Park on May 18, 2018; That part of the event includes a band playing from 7:00 p.m. until 11:00 p.m.; That sound amplification equipment will be used and alcoholic beverages will be consumed as part of this event; That pursuant to Hutchinson City Code §92.018 V(1)(d) sound amplification equipment may only be used until 10:00 p.m.; That pursuant to Hutchinson City Code § 112.056 alcoholic beverages may only be consumed in city parks until 10:00 p.m.; Therefore, the Council of the City of Hutchinson does hereby ordain that Hutchinson City Code §92.018 or any other City ordinance pertaining to noise and Hutchinson City Code § 112.056 shall not be enforced until 11:00 p.m. for the outdoor special/music event being held on May 18, 2018, at West River Park for a private special event. Adopted by the City Council this 8' day of May, 2018. Attest: Matthew Jaunich, City Administrator Gary T. Forcier, Mayor HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Approve/Deny Surplus Equipment and Donation to Nonprofits Policy Department: Administration LICENSE SECTION Meeting Date: 4/24/2018 Application Complete N/A Contact: Matt Jaunich/Marc Sebora Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff r� New Business Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: In 2016, the Minnesota Legislature passed a new law authorizing certain donations. The legislation provided that a "local government," including any city, may donate "surplus equipment" to a "nonprofit organization." The new law became effective Aug. 1, 2016. In an effort to allow staff to comply with this new law, staff has put together a policy (a requirement of the law) that would allow city departments to donate surplus equipment to nonprofit agencies. The policy also addresses the obligations of us to disclose to the nonprofits that the surplus equipment may be defective and cannot be relied upon for safety purposes. The policy came from a draft policy that was put together by the League of MN Cities. The policy also addresses donations at the liquor store and deals with how we handle "Dealer Loaders" that occur there. If comfortable with the policy, staff would recommend approval. BOARD ACTION REQUESTED: Approve/Deny a Policy for the Donation of Surplus Equipment to a Nonprofit Organization and Property Donated to the City by Suppliers or Vendors 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 Policy for the Donation of Surplus Equipment to a Nonprofit Organization and Property Donated to the City by Suppliers or Vendors Purpose The purpose of this Policy is to establish procedures for the Donation of Surplus Equipment by the City to a Nonprofit Organization as required by Minnesota Statue § 471.3459 and property donated to the City by suppliers or vendors. Scone This policy applies to all City departments that generate Surplus Equipment or which receive donations of property or dealer loaders by suppliers or vendors and governs the actions of all City employees and officials. Definitions "City" means the City of Hutchinson, Minnesota. "City Council" means the governing body of the City. "Dealer Loader" is a premium or other reward this used to encourage a retailer, like a liquor store, to develop a special display or product offering, or when purchasing a certain quantity of a product. "Donation" means to contribute, donate or give Surplus Equipment at no cost to a Nonprofit Organization that serves a public purpose and benefits its community as a whole or property given to the city or its various departments by vendors or suppliers. "Eligible Organization" means a Nonprofit Organization serving one or more of the following functions: cultural, historical, educational, safety, social services, environmental or economic. "Fair Market Value" means the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of all relevant facts. "Liquor Store" means the Liquor Hutch, the City's Municipal Liquor Store "Nonprofit Organization" means an organization formed under Section 501(c)(3) of the Internal Revenue Code. "Policy" means this Policy adopted by the City Council. "Surplus Equipment" means equipment used by the City's public works department, and cellular phones and emergency medical and firefighting equipment that is no longer needed by the City because it does not meet industry standards for emergency medical services, police, or fire departments or has minimal or no resale value. "Surplus Equipment Form" means the form attached as Exhibit I to this Policy that must be filled out by a Nonprofit Organization requesting a Donation of Surplus Equipment. Procedure The City shall determine all Surplus Equipment and may offer it for Donation in conformance with the following guidelines: 1. Identify SWIus Equipment. Department directors are responsible for monitoring their equipment and shall identify and report all Surplus Equipment to the City Administrator on at least an annual basis. Donations from suppliers or vendors shall be reported to the city Administrator within one week of receipt. 2. Identifying Dealer Loaders and/or Donations from Suppliers or Vendors. Any Dealer Loader or donation from a supplier or vendor must first be officially accepted by the City Council through a resolution prior to it being considered for a donation or transfer to another department. 3. Determine the Fair Market Value of Surplus Equipment and Dealer Loaders/Donations from Suppliers or Vendors. The City Administrator shall work with City staff to determine the Fair Market Value of the Surplus Equipment and Dealer Loaders/donations from suppliers or vendors. 4. City Council Declaration. The City Administrator will forward a list of the Surplus Equipment and Dealer Loaders or donations from suppliers or vendors with each item's Fair Market Value to the City Council who shall approve or deny the Surplus Equipment, donations from suppliers or vendors, and Dealer Loaders as eligible for Donation. The City has no obligation to make a Donation of Surplus Equipment or Dealer Loaders or donations from suppliers or vendors. Surplus Equipment and Dealer Loaders or donations from suppliers or vendors that are not donated may be sold, recycled or discarded in the discretion of the City Administrator. 5. Donation. After the City Council has determined the Surplus Equipment or Dealer Loaders or donations from suppliers or vendors is eligible for Donation, the City Administrator is responsible for coordinating the Donation of the Surplus Equipment or Dealer Loaders or donations from suppliers or vendors in accordance with the terms of this Policy. 6. Transfer between Departments. All Surplus Equipment or Dealer Loaders or donations from suppliers or vendors must first be considered for transfer between departments for the benefit of the City. 7. Awards to the pp!26 eligibleganizations. Donations or Dealer Loaders, outside of liquor store product, to the City from vendors or suppliers may be awarded to the publie eligible organizations as a result of promotional activities sponsored by the various departments and enterprise funds of the City. Items may also be considered for transfer to another department within the City. No city employee or elected official or his or her immediate family member is eligible to receive such award. 8. Advertisement. Surplus Equipment or property donated to the City from suppliers or vendors shall be posted as eligible for Donation on the City's website. The City may also use other reasonable means to notify Eligible Organizations about the availability of Surplus Equipment or property donated to the City from suppliers or vendors. The City shall wait at least 30 days after advertising Surplus Equipment before approving any Donation. 9. Surplus Equipment Form. Eligible Organizations interested in Surplus Equipment or property donated to the City from suppliers or vendors shall fill out a Surplus Equipment Form and submit the form to the City Administrator. 10. Approval of Donation. If the Surplus Equipment or property donated to the City from suppliers or vendors has a Fair Market Value less than $2,500.00, the City Administrator shall approve the Donation to an Eligible Organization, subject to review by the City Council. If the Surplus Equipment has a Fair Market Value greater than $2,500.00, the City Council must approve the donation by a majority vote of the City Council. 11. Prioritization of Donations. If more than one Eligible Organizations requests a Donation for the same Surplus Equipment or property donated to the City from suppliers or vendors, the City shall consider factors it deems relevant including how the Surplus Equipment or property donated to the City from suppliers or vendors will be used, the benefit to the Eligible Organization, the impact on the City, how the Donation will accomplish goals of the City Council, and any previous Donation to the Eligible Organization. 12. Conflict of Interest. All City employees and elected officials are prohibited from taking possession of any Surplus Equipment or Dealer Loaders or property donated to the City from suppliers or vendors on behalf of an Eligible Organization. 13. As Is. A Donation of Surplus Equipment or property donated to the City from suppliers or vendors is made "as is" with no warranty, guarantee or representation of any kind, express or implied, as to the condition, utility, or usability of the Surplus Equipment offered. The Surplus Equipment or property donated to the City from suppliers or vendors may be defective and cannot be relied upon for safety purposes. 14. Title. The City Administrator shall cause any title or other ownership documents to be transferred to the Eligible Organization at the time of transfer. Any fees required to transfer the Surplus Equipment or property donated to the City from suppliers or vendors are the responsibility of the Eligible Organization. 15. Transportation. In the Surplus Equipment Form, the Eligible Organization must provide a detailed plan for transporting the Surplus Equipment or property donated to the City from suppliers or vendors from the City to the Eligible Organization. The Eligible Organization must pay all expenses associated with the transportation of the Surplus Equipment. 16. Dele ag tion. The City Administrator may delegate specific responsibilities for implementing this Policy. 17. Documentation. The City Administrator shall document the Donation of all Surplus Equipment or property donated to the City from suppliers or vendors and shall keep such records in accordance with the City's Records Retention Schedule. 18. Review of Policy. The City Administrator is responsible for maintaining and reviewing this Policy. Any changes to this Policy must be approved by the City Council. Exhibit I Surplus Equipment Form Organization Name: Organization Address: Organization Website: (Attach proof of status as a nonprofit corporation under Section 501(c)(3) of the Internal Revenue Code.) Organization Purpose: Point of Contact Name: Address: Email: Phone: City Surplus Equipment of Interest: How will the requested Surplus Equipment benefit your organization? How do you plan to transport the surplus property from the City to your location? DISCLAIMER OF WARRANTIES. The City makes no agreement, warranty or representation, either express or implied, as to the value, design, condition, merchantability or fitness for any particular purpose or use of the Surplus Equipment or property donated to the City from suppliers or vendors by the recipient or any other user. The recipient acknowledges the Surplus or property donated to the City from suppliers or vendors may be defective and that it cannot be relied upon for safety purposes. The recipient has a duty to inspect the Surplus Equipment or property donated to the City from suppliers or vendors before it is used for any purpose. The recipient acknowledges that the City is not a manufacturer of the Surplus Equipment or property donated to the City from suppliers or vendors or a dealer therein; that the Surplus Equipment or property donated to the City from suppliers or vendors is being provided "as -is" and "with all faults," it being agreed and understood that all of the aforementioned risks are to be borne by the recipient or user of the Surplus Equipment. In no event shall the City be liable for any damages in connection with or arising out of the recipient's or any other person's or entity's use of the Surplus Equipment or property donated to the City from suppliers or vendors. I acknowledge that the Donation of any Surplus Equipment or property donated to the City from suppliers or vendors to my organization is subject to the City's Policy for Donation of Surplus Equipment to a Nonprofit Organization and Property Donated to the City by Suppliers or Vendors. I have authority to request a Donation from the City and to bind my organization to the terms of this form. Signature of Applicant Date City of Hutchinson Policy for the Donation of Surplus Equipment to a Nonprofit Organization and Property Donated to the City by Suppliers or Vendors Purpose The purpose of this Policy is to establish procedures for the Donation of Surplus Equipment by the City to a Nonprofit Organization as required by Minnesota Statue § 471.3459 and property donated to the City by suppliers or vendors. Scope This policy applies to all City departments that generate Surplus Equipment or which receive donations of property by suppliers or vendors and governs the actions of all City employees and officials. Definitions "City" means the City of Hutchinson, Minnesota. "City Council" means the governing body of the City. "Dealer Loader" is a premium or other reward this used to encourage a retailer, like a liquor store, to develop a special display or product offering, or when purchasing a certain quantity of a product. "Donation" means to contribute, donate or give Surplus Equipment at no cost to a Nonprofit Organization that serves a public purpose and benefits its community as a whole or property given to the city or its various departments by vendors or suppliers. "Eligible Organization" means a Nonprofit Organization serving one or more of the following functions: cultural, historical, educational, safety, social services, environmental or economic. "Fair Market Value" means the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of all relevant facts. "Liquor Store" means the Liquor Hutch, the City's Municipal Liquor Store "Nonprofit Organization" means an organization formed under Section 501(c)(3) of the Internal Revenue Code. "Policy" means this Policy adopted by the City Council. "Surplus Equipment" means equipment used by the City's public works department, and cellular phones and emergency medical and firefighting equipment that is no longer needed by the City because it does not meet industry standards for emergency medical services, police, or fire departments or has minimal or no resale value. "Surplus Equipment Form" means the form attached as Exhibit I to this Policy that must be filled out by a Nonprofit Organization requesting a Donation of Surplus Equipment. Procedure The City shall determine all Surplus Equipment and may offer it for Donation in conformance with the following guidelines: 1. Identify Surplus Equipment. Department directors are responsible for monitoring their equipment and shall identify and report all Surplus Equipment to the City Administrator on at least an annual basis. Donations from suppliers or vendors shall be reported to the city Administrator within one week of receipt. 2. Determine the Fair Market Value of Surplus Equipment. The City Administrator shall work with City staff to determine the Fair Market Value of the Surplus Equipment. 3. City Council Declaration. The City Administrator will forward a list of the Surplus Equipment and Dealer Loaders or donations from suppliers or vendors with each item's Fair Market Value to the City Council who shall approve or deny the Surplus Equipment, donations from suppliers or vendors, and Dealer Loaders as eligible for Donation. The City has no obligation to make a Donation of Surplus Equipment. Surplus Equipment that is not donated may be sold, recycled or discarded in the discretion of the City Administrator. 4. Donation. After the City Council has determined the Surplus Equipment is eligible for Donation, the City Administrator is responsible for coordinating the Donation of the Surplus Equipment in accordance with the terms of this Policy. 5. Transfer between Departments. All Surplus Equipment must first be considered for transfer between departments for the benefit of the City. 6. Awards to the public. Donations or Dealer Loaders, outside of liquor store product, to the City from vendors or suppliers may be awarded to the public as a result of promotional activities sponsored by the various departments and enterprise funds of the City. Items may also be considered for transfer to another department within the City. No city employee or his or her immediate family member is eligible to receive such award. 7. Advertisement. Surplus Equipment shall be posted as eligible for Donation on the City's website. The City may also use other reasonable means to notify Eligible Organizations about the availability of Surplus Equipment. The City shall wait at least 30 days after advertising Surplus Equipment before approving any Donation. 8. Surplus Equipment Form. Eligible Organizations interested in Surplus Equipment shall fill out a Surplus Equipment Form and submit the form to the City Administrator. 9. Approval of Donation. If the Surplus Equipment has a Fair Market Value less than $2,500.00, the City Administrator shall approve the Donation to an Eligible Organization, subject to review by the City Council. If the Surplus Equipment has a Fair Market Value greater than $2,500.00, the City Council must approve the donation by a majority vote of the City Council. 10. Prioritization of Donations. If more than one Eligible Organizations requests a Donation for the same Surplus Equipment, the City shall consider factors it deems relevant including how the Surplus Equipment will be used, the benefit to the Eligible Organization, the impact on the City, how the Donation will accomplish goals of the City Council, and any previous Donation to the Eligible Organization. 11. Conflict of Interest. All City employees and officials are prohibited from taking possession of any Surplus Equipment or Dealer Loaders on behalf of an Eligible Organization. 12. As Is. A Donation of Surplus Equipment is made "as is" with no warranty, guarantee or representation of any kind, express or implied, as to the condition, utility, or usability of the Surplus Equipment offered. The Surplus Equipment may be defective and cannot be relied upon for safety purposes. 13. Title. The City Administrator shall cause any title or other ownership documents to be transferred to the Eligible Organization at the time of transfer. Any fees required to transfer the Surplus Equipment are the responsibility of the Eligible Organization. 14. Transportation. In the Surplus Equipment Form, the Eligible Organization must provide a detailed plan for transporting the Surplus Equipment from the City to the Eligible Organization. The Eligible Organization must pay all expenses associated with the transportation of the Surplus Equipment. 15. Delegation. The City Administrator may delegate specific responsibilities for implementing this Policy. 16. Documentation. The City Administrator shall document the Donation of all Surplus Equipment and shall keep such records in accordance with the City's Records Retention Schedule. 17. Review of Policy. The City Administrator is responsible for maintaining and reviewing this Policy. Any changes to this Policy must be approved by the City Council. Exhibit I Surplus Equipment Form Organization Name: Organization Address: Organization Website: (Attach proof of status as a nonprofit corporation under Section 501(c)(3) of the Internal Revenue Code.) Organization Purpose Point of Contact Name: Address: Email: Phone: City Surplus Equipment of Interest: How will the requested Surplus Equipment benefit your organization? How do you plan to transport the surplus property from the City to your location? DISCLAIMER OF WARRANTIES. The City makes no agreement, warranty or representation, either express or implied, as to the value, design, condition, merchantability or fitness for any particular purpose or use of the Surplus Equipment by the recipient or any other user. The recipient acknowledges the Surplus Equipment may be defective and that it cannot be relied upon for safety purposes. The recipient has a duty to inspect the Surplus Equipment before it is used for any purpose. The recipient acknowledges that the City is not a manufacturer of the Surplus Equipment or a dealer therein; that the Surplus Equipment is being provided "as -is" and "with all faults," it being agreed and understood that all of the aforementioned risks are to be borne by the recipient or user of the Surplus Equipment. In no event shall the City be liable for any damages in connection with or arising out of the recipient's or any other person's or entity's use of the Surplus Equipment. I acknowledge that the Donation of any Surplus Equipment to my organization is subject to the City's Policy for Donation of Surplus Equipment to a Nonprofit Organization. I have authority to request a Donation from the City and to bind my organization to the terms of this form. Signature of Applicant Date HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Approve/Deny Financial Management Plan Department: Administration LICENSE SECTION Meeting Date: 4/24/2018 Application Complete Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Back on your March 27 City Council meeting, Andy Reid and I presented you with the rough draft of the City's Financial Management Plan. There have been no material changes to the Plan/Policy since it was presented to you a month ago. Staff is now seeking approval of the Plan. There have been three minor changes to the plan since we first presented it to you. One is that we have now noted that the policy will be reviewed on an annual basis during the budget preparation season (bottom of page 3). Two, there is a comment on page 20 referring to Exhibit B; and three, we have included an Exhibit B (page 38) - a debt graph noting this will change on a yearly basis. There might be some additional minor changes between now and Tuesday, but I'll make sure those are noted before you take action. The Financial Management Plan is meant to serve as the framework upon which consistent operations may be built and sustained that guides responsible use of municipal resources and contributes to the City's overall financial health. The proposed Financial Management Plan serves three distinct purposes. 1) It draws together in single document the City's major financial policies; and 2) The plan establishes principles to guide both staff and Council members in making consistent and informed financial decisions; and 3) The plan provides guidelines for ensuring and maintaining an appropriate level of funds, unreserved and reserved, to sustain the financial integrity of the City. BOARD ACTION REQUESTED: Approve/Deny Financial Management Plan 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: R FINANCIAL MANAGEMENT PLAN Draft for City Council Review April 24, 2018 DL- Table of Contents Page No. 3 ............... Purpose 4...............Cash and Investments 8...............Cash Controls & Procedures 11 .............. Revenue Policy 13..............Operating Budget 15..............Fund Balance / Reserve Policy 18..............Capital Improvement Plan 20 .............. Debt Management 23..............Purchasing Policy 27..............Procurement Card Policy 32..............Travel & Meal Reimbursement Policy 36..............Fiscal Agent Policy 37..............Exhibit A — List of City funds • . .. , _ • .rof fro 39..............Exhibit C — Debt Tax Levy -2- PURPOSE The City of Hutchinson (City) has a responsibility to provide quality services to its residents and considers it important to do so in a fiscally responsible fashion designed to keep services and taxes as consistent as possible over time. This Financial Management Plan (Plan) is designed to serve as the framework upon which consistent operations may be built and sustained, which guides responsible use of municipal resources and contributes to the City's overall financial health. This Plan serves three main purposes: 1. It draws together the City's major financial policies in a single document. 2. The plan establishes principles to guide both staff and City Council members to make consistent and informed financial decisions. 3. The plan provides guidelines for ensuring and maintaining an appropriate level of funds, unreserved and reserved, to sustain the financial integrity of the City. The objectives of this Plan are: ➢ To provide both short term and long term future financial stability by ensuring adequate funding for the provision of services needed by the community; ➢ To protect the City Council's policy-making ability by ensuring that important policy decisions are not controlled by financial problems or emergencies; ➢ Prevent financial difficulties in the future; ➢ To provide sound principles to guide the decisions of the City Council and Administration; ➢ To employ revenue policies which prevent undue or unbalanced reliance on certain revenues, distribute the cost of municipal services fairly, and provide funding to operate desired programs; ➢ To provide essential public facilities and prevent deterioration of the City's public facilities and infrastructure; ➢ To protect and enhance the City's credit rating and prevent default on any municipal debt; ➢ To create a document that City staff and City Council Members can reference during financial planning, budget preparation and other financial management issues. ➢ The financial management plan will be reviewed annually during the city's budgeting process. -3- CASH AND INVESTMENTS PURPOSE The purpose of this policy is to establish specific guidelines the City of Hutchinson will use in the investment of City funds. It will be the responsibility of the City Administrator, or his designee, to invest City Funds in order to attain the highest market rate of return with the maximum security while meeting the daily cash flow demands of the City and protecting the capital of the overall portfolio. Investments will be made in accordance with all state and local statutes governing the investment of public funds. SCOPE The City Administrator, or his designee, is responsible for the investing of all financial assets of the City of Hutchinson, excluding pension funds. These funds are accounted for in the City's Comprehensive Annual Financial Report and include the following: ➢ General Fund ➢ Special Revenue Funds ➢ Debt Service Funds ➢ Capital Project Funds ➢ Enterprise Funds ➢ Internal Service Funds ➢ Economic Development Authority PRUDENCE Investments shall be made with judgment and care, not for speculation, but for investment, considering the probable safety of the capital as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing the overall portfolio. Investment officers acting in accordance with this policy, with MN Statutes, Chapter 118A, and exercising due diligences shall be relieved of personal responsibility for an individual security's risk or market price change, provided that reasonable action is taken to control adverse developments and unexpected deviations are reported in a timely manner. OBJECTIVE 1) Safety — Safety of principal is of critical importance to the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of principal in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. a. Credit Risk — the risk of loss due to failure of the security issuer or backer, will be minimized by: i. Pre -qualifying the financial institutions, brokers/dealers, intermediaries, and advisors with which the City will do business in accordance with this policy under Authorized Financial Dealers and Institutions. ii. Limiting investments to the types of securities listed in this policy under Authorized and Suitable Investments. iii. Diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized. Insurance or collateral may be required to ensure return of principal. -4- b. Interest Rate Risk — the risk that the market value of securities in the portfolio will fall due to changes in market interest rates will be minimized to: i. Provide for liquidity by reviewing cash flow requirements and making investments to meet the shorter cash flow needs, thereby avoiding the need to sell securities in the open market prior to maturity. ii. Manage the annual maturity of the overall portfolio to be consistent with the risk of the City. 2) Liquidity — The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements reasonably anticipated. The portfolio will be structured to emphasize liquidity and consist largely of securities with active secondary or resale markets (dynamic liquidity). A portion of the portfolio may be placed in money market mutual funds or local government investment pools that offer same day liquidity for short-term funds. 3) Yield — The City's investment portfolio shall be designed with the objective of attaining a market rate of return. The core of investments is limited to low-risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall generally be held until maturity with the following exceptions: a. A security with declining credit may be sold early to minimize loss of principal. b. A security swap would improve the quality, yield, or target duration in the portfolio. c. Liquidity needs of the portfolio require that the security be sold. DELEGATION OF AUTHORITY Authority to manage the City's investment program is derived from MS 118A which authorizes the City to invest any funds not presently needed for other purposes. This law applies to all types of funds not presently needed, including all general, special revenue, permanent, trust or other funds regardless of source or purpose. Under this chapter, a city may invest idle funds in state or national banks, savings and loan associations, or credit unions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the policy. Management responsibility for the investment program is hereby delegated to the City Administrator, or his designee, who shall be responsible for all transactions. The City Administrator, or his designee, shall establish procedures for the operation of the investment program, consistent with this policy. Such procedures may include delegation of authority to persons responsible for investment transactions. ETHICS AND CONFLICTS OF INTEREST The City Administrator and Finance staff involved in the investment process shall refrain from conducting personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Investment staff shall annually disclose to the City Council any material financial interests as required by state statute. Investment staff shall subordinate their personal investment transactions to those of the City, particularly with regard to the time of purchases and sales, and shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City. -5- AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City Council will annually approve by resolution the depositories and a list of financial institutions authorized to provide investment services. 1) Only approved security broker/dealers, selected by creditworthiness, shall be utilized, with a minimum of $10,000,000 capital and at least five years of operation. 2) Financial institutions must be qualified as a "depository" by the City Council; these may include "primary" dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule). 3) All investments must be insured or registered, or securities must be held by the City or its agent in the City's name. 4) No public deposit shall be made except in a qualified public depository, as established by state laws. 5) When investments purchased by the City are held in safekeeping by a broker/dealer, they must provide asset protection of $500,000 through Securities Investor Protection Corporations (SIPC), and at least another $2,000,000 Supplemental Insurance Protection, provided by the broker dealer. 6) Before engaging in investment transactions with the City, the supervising officer at the securities broker/dealer shall submit a certification of "Notification to Broker and Certification by Broker Pursuant to MN Statute 118K. Said certification will state that the broker/dealer has reviewed the investment policies and objectives, as well as applicable state law, and agrees to disclose potential conflicts or risk to public funds that might arise out of business transactions between the securities broker/dealer firm and the City. All financial institutions shall agree to undertake reasonable efforts to preclude imprudent transactions involving the City's funds. AUTHORIZED AND SUITABLE INVESTMENTS It shall be the policy of the City that available funds be invested to the best rates obtainable at the time of investment in conformance with the legal and administrative guideline outlined herein. US Treasury Obligations and Federal Agency Securities will be given preference when the yields are equal to or greater than alternative investments. The investments of the City will be made in accordance with Minnesota Statutes, section 118A, which lists all permissible investments for municipalities. COLLATERAL Interest-bearing deposits in authorized depositories must be fully insured or collateralized. Collateralization will be required on Certificates of Deposits (where the dollar amount is in excess of FDIC coverage). In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 110% of the market value of principal and accrued interest. When the pledged collateral consists of notes secured by first mortgages, the collateral level will be 140% of the market value of principal and accrued interest. Collateral shall be deposited in the name of the City, subject to release by the City Administrator. SAFEKEEPING AND CUSTODY Securities purchased shall be held by a third party trustee as a safekeeping agent and in a segregated account for the City's benefit. The investment dealer or bank in which the security is purchased shall issue a confirmation ticket to the City listing the specific instrument, issuer, coupon, maturity, CUSIP number, purchase or sale price, transaction date, and other pertinent information. The financial service provider that executes the transaction on the City's behalf shall deliver all securities on a delivery versus payment method (DVP) to the designated third party. Delivery versus payment (DVP) is a way of controlling the risk to which securities market participants are exposed. 962 Delivery of securities (i.e. the change in their ownership) is done simultaneously with payment. This means that neither the buyer nor the seller is exposed to the risk that the other will default. The City may not invest in securities that are uninsured. Securities will be held in the City's designated accounts. Investments, contracts and agreements may be held in safekeeping with: ➢ Any Federal Reserve bank; ➢ Any bank authorized under the laws of the United States or any state to exercise corporate trust powers, including, but not limited to, the bank from which the investment is purchased. DIVERSIFICATION The City Administrator or investment designee will attempt to diversify its investments according to type and maturity. The City will attempt to match its investments with anticipated cash flow requirements. Extended maturities may be utilized to take advantage of higher yields. Diversifications strategies shall be determined and revised periodically by the City Council for all funds. 1) Institutions — Diversity between financial institutions used. a. The City Administrator or investment designee will attempt to diversify its investments equally amongst investment companies, keeping in mind that some temporary fluctuations may occur throughout the year (i.e. tax settlement in June, GO Bonds for projects, etc.). b. No funds may be invested in any single investment company in excess of the amount insured by it. 2) Maturities — Diversity in length of maturities a. Investments shall be made to assure that funds are constantly available to meet immediate payment requirements. b. No investments shall be made with a term of more than 10 years. 3) Investments — The City should maintain a diversity of investments. a. Depending on market conditions, with the exception of US Treasury Securities, authorized pools, and Federal Agencies (backed by the full faith and credit of the US Government or its agencies), no more than 50% of the City's total investment portfolio may be invested in any one of the following: Certificates of Deposit or Commercial Paper. POOLING OF INVESTMENTS The City shall pool excess cash from all funds into one investment account in order to maximize the amount of monies available for investment. Monthly investment earnings shall be allocated among the various funds based on monthly cash balances. PRIOR POLICY The policy above supersedes the prior city policy #1.14. -7- Cash Controls & Procedures PURPOSE: To provide reasonable controls for the handling and safeguarding of monies received in the course of operations at various City facilities, and to protect City assets and minimize the potential for theft, fraud and discrepancies in cash transaction records. The purpose of this policy is also to protect City employees from inappropriate charges of mishandling of funds by defining his/her responsibilities in the cash handling process. Cash Systems and Records All cash received in the course of operations, including concessions sales, must be entered into the City's point-of-sale (POS) system. Each transaction type will have a preset code within the POS system with predetermined prices set upper City approved pricing amounts. Separate cash drawers shall be maintained at each point-of-sale location and shall be integrated with the POS system for formal accounting of each transaction. All employees authorized to receive cash shall have a separate user ID and password to gain access to the POS system. Employees shall not share POS access information with others. Daily reports will be generated from the POS system and forwarded to Finance on a weekly basis along with the daily cash proofs for each cash drawer and the daily bank deposit proof. Finance will reconcile submitted documentation to the bank records. Safeguarding of Cash The facility will have a cash safe with either a combination or key lock. Access to the safe shall be restricted to City approved managers. The combination or key shall be changed periodically due to turnover of authorized personnel or if theft occurs. The cash safe shall be located within a secure room or office with access limited only to authorized personnel. Ideally, the office shall have computerized records of access based on an employee access card. Transporting and counting of monies within the facility must always be done by two authorized employees and never by only one employee. Cash and deposit counts must always be performed within the secure office and documented by each of the two employees. Signatures by each employee on a daily cash log represents approval of the cash count and bank deposit. Discrepancies between the cash counts and the actual bank deposit shall be directly addressed to the two employees evidenced on the cash log and the manager of the facility, or their designees. Employees may be subject to disciplinary action or termination due to cash discrepancies or theft. Daily Cash Handling Process 1) Cash Drawer start-up cash a. Each morning prior to opening for business, the facility manager, or the designee, shall prepare each cash drawer with the preapproved amount of cash and coin. b. Cash drawers shall remain in the secure location until the start of business. c. Each employee working a cash drawer shall recount the start-up cash and sign off on the daily cash log sheet. d. The manager on duty shall walk each employee to the appropriate cash register and verify that the cash drawer is placed in service and that the employee logs into the POS system. L Cash drawers shall never be transported by only one employee. 2) Cash Transactions a. All cash and credit transactions must be entered through the POS system. i. Acceptance of personal checks will be prohibited at certain facilities. Those facilities shall have a sign posted informing customers of this policy. b. A receipt shall be offered to the customer after every transaction. c. Only the approved managers shall have system authority to process refunds, returns, voids or over -rings. 3) Cash Drawer Count and Reconciliation a. At the end of each employee's shift, the manager on duty shall verify that the employee logs off the POS system. b. The manager shall remove the cash drawer and walk with the employee to the secure office. c. The cash drawer shall be counted immediately by the employee in the direct presence of the manager and documented on the daily cash log. L The cash count shall be compared to a cash register report from the POS system and any discrepancy shall be noted. d. The manager shall recount the cash drawer and evidence the cash count on the daily cash log. L Any discrepancies in count between the employee and manager shall be reconciled prior to finalizing the daily cash log. ii. If employee and manager are in agreement, both parties sign the daily cash log and the monies and log sheet are placed in the safe by the manager prior to the employee leaving the secure room. 4) Bank Deposit Preparation a. The shift manager, in the presence of the facility manager, or the designee, shall prepare a total daily bank deposit based on the daily cash logs of each cash drawer. i. The facility manager, or the designee, verifies that each cash log sheet is properly approved by employee and shift manager. ii. The facility manager, or the designee, recounts the cash and verifies that the total deposit amount is in agreement with the totals of each daily cash log. b. Start-up cash for the following day's cash drawers are deducted from the daily deposit. L The start-up cash is placed in a bank bag and stored in the safe for the subsequent day cash drawers. c. The shift manager and facility manager, or their designees, sign the deposit slip, make a copy for Finance Department, and place the monies and deposit slip in the bank deposit bag. L The deposit bag is placed in the safe, witnessed by both employees. 5) Transporting Daily Deposit to the Bank a. For deposits made at night, an on -duty police officer shall be called to the facility to transport the shift manager, or the designee, and deposit bag to the bank. The deposit bag shall be removed from the safe with the police officer present as witness. If the police are unavailable, two authorized employees shall deliver the deposit to the bank. b. For deposits made during the day, it is preferable to have two employees deliver the deposit to the bank. 6) Daily Reports to Finance a. The facility manager, or the designee, shall be responsible for forwarding the following information to the Finance Department: i. Approved Daily Cash Logs ii. Daily POS system report with subtotals by cash register 1. POS reports shall be only for the operations of one specific department. iii. Copy of the approved Daily Bank Deposit slip 1. The facility's deposit shall be made separately from any other related departmental operations (i.e.: Aquatic Center deposits shall be separate from Recreation deposits) iv. Any other reports as may be determined from time to time. b. Finance shall reconcile facility reports to the bank statement. Other Cash Controls 1) Currency larger than a twenty -dollar bill ($20) shall be inspected for any signs of being counterfeit. 2) Only cash or credit cards will be accepted at certain facilities. 3) Credit cards will be processed at the point-of-sale and must not leave the customer's sight. In no instance will credit card information be written down by City staff or retained in any fashion. 4) A receipt is required to be given to the customer for every transaction. Cash Operations without a POS System Some City operations may be conducted in a location where it is not feasible to have a POS system to account for cash transactions, such as the Roberts Park concession building and offsite events for the liquor store. This policy is still applicable in those instances with the exception of reconciling the receipts to a POS system report. Daily cash count sheets must still be maintained and approved, and deposits shall be made on the next business day. If possible, two employees shall be present when counting the cash and creating the deposit slip. Policy Compliance All employees of the City of Hutchinson, primarily Liquor Hutch and the Aquatic Center, who are responsible for cash transactions shall be subject to the procedures within this document. The Finance department acknowledges that certain aspects of this policy may not be practical for all situations. A deviation from policy may be approved if it is determined that that such deviation does not present a material risk of mishandling or misreporting cash activity. Any deviation from this policy must be approved by the Finance Director. The City's Finance department shall reserve the right to create an internal audit process and to perform audits as determined necessary. -10- REVENUE POLICY PURPOSE The City of Hutchinson is committed to maintaining a revenue system that meets the City's immediate and long-term service delivery needs, protects the City's creditworthiness, and follows best practices for administration and collection. REVENUE STRUCTURE AND SOURCES The City will strive to maintain a stable and diverse revenue system to reduce the effects of short- term fluctuations in any one revenue source. Services having a city-wide benefit shall be financed with revenue sources generated from a broad base, such as property taxes, state aids and transfers from enterprise funds. Services where the customer determines the use shall be financed with user fees, charges and assessments related to the level of service provided. 1) Property Taxes Property tax payments are the largest source of revenue in the City's General fund, accounting for approximately 40% of the total annual revenue. The City will strive to proactively avoid large increases in property taxes and will explore all other alternatives, including: ➢ Other policy options (debt management, fees & charges, cost allocation, expenditure cuts and use of reserves). ➢ Budget scenarios for a 0% tax levy, including potential reductions in service levels. ➢ Consideration will be given to staying within the amount of revenue generated by increased market value with no increase in the tax rate. If after exhausting these alternatives, a tax increase is required, the goal of the City will be to keep any property tax rate increase at or below the prevailing inflation rate. City services will be funded to the maximum extent possible by the increases in market valuation (i.e.; new tax base growth and valuation increases). Possible factors for considering an increase in property tax include: ➢ Long-term protection of the City's infrastructure. ➢ Meeting legal mandates imposed by outside agencies. ➢ Maintaining adequate fund balance and reserve funds sufficient to the City's Fund Balance Policy. ➢ Funding City development and redevelopment projects that will clearly result in future tax base increases. The expenditures of development and redevelopment funds must be in accordance with a defined strategy as shown in the City's comprehensive plan, capital improvement plan, and other council documents. Property tax increases to meet other purposes will be based on the following criteria: ➢ A clear expression of community need. ➢ The existence of community partnerships willing to share resources. ➢ Establishment of clearly defined objectives and measurements of success, including appropriate sunset provisions. Voter approved referendums for specific community needs/projects. 2) Fees and Charges The City will establish fees and charges for services when the cost of services can be allocated equitably among service users. - 11 - a. General Fund Tax dollars should support essential City services that benefit and are available to everyone in the community (such as parks, police and fire protection). For services that largely or solely benefit individuals, the City should recover full or partial costs of service delivery through user fees. The user fees must not exceed the full cost of providing the service. b. Enterprise Fund User Fees Customer or user fees for services/products provided by an enterprise fund shall be determined at a level that fully covers the total direct and indirect costs, including operating expenses, capital expenditures and debt service. The fees shall also provide for a positive cash flow and adequate working capital. c. Fee Schedule The City's fee schedule shall document all fees charged, or assessed, for services provided to users or customers. Departments shall review existing fees as part of the annual budgeting process to ensure that fees keep pace with changes in the service delivery costs as well as changes in methods or levels of service delivery. Fees for new services shall also be determined in a manner that equitably charges the user for the service provided. Administration and Finance shall compile a preliminary fee schedule and present to city council for review by October 31 of each year with final approval of the schedule -taking place by December 31 of each year. REVENUE ESTIMATES The City will conservatively estimate and budget for its annual revenues using an objective, analytical process. All existing and potential revenue sources will be re-examined annually. NON-RECURRING REVENUES Revenue sources that are non-recurring in nature shall not be used to fund ongoing programs or operations of the City. This includes revenue such as sales of assets, settlement from a lawsuit, inter -fund transfers and other one-time payments. These revenue items should be used to build reserves or for projects that will result in long-term operating costs savings. Non-recurring revenue may also include grants and donations. These revenue sources should be dedicated to the use designated by the grantor or donor. The annual budget shall be prepared in a manner that eliminates, or minimizes, reliance on unpredictable or non-recurring revenues for on-going operating costs. -12- OPERATING BUDGET PURPOSE: The objective of the operating budget policy is to ensure that sufficient information is available to decision makers to provide for adequate levels of funding for essential City services at reasonable costs. Budgeting is an essential element of the financial planning, control and evaluation process of municipal government. The "operating budget" is the City's annual financial operating plan. The annual budget includes all operating departments of the general fund, other governmental funds and proprietary funds. The budget will provide for adequate maintenance of city facilities and equipment and for their orderly replacement. The following funds are included within the City's annual budget: GOVERNMENTAL FUNDS: 1) General Fund, which accounts for all financial resources except those required to be accounted for in another fund, and include basic governmental services, such as Police, Fire, Parks and Recreation, Streets and Highways, Building Inspections, Cemetery, Airport and Administrative services. 2) Special Revenue Funds, which account for revenues that are legally restricted or committed to a specific purpose other than debt service and capital projects. The City currently budgets for the Economic Development Authority and the H.A.T.S. Facility funds. (See exhibit A) 3) Debt Service Funds, which are used to account for the payment of general obligation bond principal and interest from the City's debt tax levy and special assessment bond principal and interest from special assessment levies. 4) Capital Projects Funds, which are used to account for the acquisition or construction of major capital projects other than those financed by proprietary fund activities. PROPRIETARY FUNDS: Proprietary funds will be self-supporting and user rates or fees will be reviewed annually and adjusted if necessary to ensure adequate funding of operating and capital expenses. 1) Enterprise Funds, which include the City's "business -type" activities. The City budgets for the Liquor, Water, Wastewater, Storm Water, Compost and Refuse funds. 2) Internal Service Funds, which account for the financing of goods or services provided by one department to other departments of the City on a cost reimbursement basis. The City budgets for the Equipment Replacement and Self -Insurance funds. BASIS OF ACCOUNTING AND OF BUDGETING: The City accounts and budgets for all Governmental Funds using the modified accrual basis of accounting. This basis means that revenue is realized in the accounting period in which it becomes available and measurable, while the expenditures are recognized in the accounting period in which they are incurred. Exceptions to the modified accrual basis include: • Grants, which are considered revenue when awarded, not received; and • Principal and interest on long-term debt, which are recognized when paid. -13- The City's Proprietary Funds are accounted and budgeted using the full -accrual basis of accounting. Under this method, revenues are realized when they are earned and measurable, while expenses are recognized when they are incurred regardless of timing or related cash flows. The basis for preparing the budget is the same as the basis for accounting except for principal payments on long-term debt and capital outlay expense, which are treated as budgeted expenses. BALANCED BUDGET: The City Administrator shall submit a balanced General fund budget that provides for all current expenditures with current revenues, matching ongoing operating expenses with the appropriate source of ongoing revenues, except in emergency situations or in the event of unforeseen needs. The City will avoid budgetary procedures that balance current expenditures at the expense of meeting future years' budgets. Any inclusion of previous years' excess fund balance in the adopted budget will be intended for one- time or non-recurring expenses or projects. The impact on the operating budget from any new programs or activities being proposed should be minimized by providing funding with newly created revenues wherever possible. BUDGETARY CONTROLS: The City Administrator will ensure that a budgetary control system is in place to adhere to the adopted budget and will provide monthly reports comparing actual revenues and expenditures to the budgeted amounts. The legal level of budgetary control is at the department level within a fund. 1) Departments shall not exceed the budget within the four main expense categories without City Administrator approval. Specific expense items within a category may be over budget as long as the category in total does not exceed the budget. The main expense categories are as follows: a. Wages & Benefits b. Supplies c. Services & Charges d. Miscellaneous 2) Surplus departmental revenue may not be used to justify overspending an expenditure without approval from the City Administrator. 3) The City Administrator is authorized to approve a transfer of funds from one appropriation to another within the budget of any department of the City. Department means any city function organized under the direct control of a single department head. Such approval shall be made by written memorandum setting forth the reasons therefore. 4) No officer or employee of the City shall place any order or make any purchase except for a purpose and to the amount authorized in the budget resolution, or as authorized by the City Administrator. CAPITAL IMPROVEMENT PLAN: The City Administrator will coordinate the development of the Capital Improvement Plan with the development of the operating budget. Costs associated with new capital improvements will be tracked for each project and included in future budget forecasts. PUBLIC HEARING: The City's budgeting process allows for public input at various budget workshops as well as the annual Truth in Taxation hearing. -14- FUND BALANCE Policy Overview: Fund Balance is defined as the difference between assets and liabilities reported in a governmental fund. It is essentially the accumulation of all prior years' net surpluses and/or deficits of revenues over expenditures. The City of Hutchinson (City) understands it has a responsibility to maintain prudent financial practices to ensure stable operations for the benefit of city residents and businesses. Fund balance reserves are an important component in ensuring the overall financial health of a community by giving the City cushion to meet contingency or cash flow timing needs. The office of the State Auditor recommends that at year-end, local governments maintain an unrestricted fund balance in their general fund and special revenue funds of approximately 35 to 50% of fund operating revenues, or no less than five months of operating expenditures. While the bond rating agencies do not have recommended fund balance levels, the agencies look favorably on larger fund balances, which protect against contingencies and cash flow needs. The purpose of this policy is to establish specific guidelines the City will use to classify fund balances into categories based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in these funds can be spent. Classification of Fund Balance: Annual financial statements shall be prepared in accordance with generally accepted accounting principles establishing fund balance at the end of each year into the following categories: 1) Non -spendable a. This category includes amounts that are not in a spendable form (i.e.: prepaid expense or supply inventories). Resources that must be maintained intact pursuant to legal or contractual requirements are also considered non -spendable. 2) Restricted a. Amounts subject to externally enforceable legal restrictions (creditors, grantors, contributors and by law through constitutional provisions or enabling regulations). 3) Unrestricted The total of committed fund balance, assigned fund balance and unassigned fund balance as described below: a. Committed i. Fund balance that can only be used for the specific purposes determined by the City Council. The committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action it employed to commit those amounts. ii. The City Council will annually, or as deemed necessary, commit specific revenue sources for specified purposes by resolution. This formal action must occur prior to the end of the reporting period, however, the amount to be subject to the constraint, may be determined in the subsequent period. iii. To remove the constraint on specified use of committed resources, the City Council shall pass a resolution. -15- b. Assigned i. Amounts that are constrained by the government's intent to use for specified purposes, but are neither restricted nor committed. Assigned fund balance in the General fund includes amounts that are intended to be used for specific purposes. ii. The City Council has delegated the authority to assign and remove assignments of fund balance amounts for specific purposes to the City Administrator. 4) Unassigned a. Unassigned fund balance represents the residual classification for the General fund. This includes amounts that have not been assigned to other funds and have not been restricted, committed, or assigned to specific purposes within the General fund. The General fund should be the only fund that reports a positive unassigned fund balance amount. Governmental Funds: The City's governmental funds include the following fund types: 1) General Fund a. The City will maintain an unrestricted fund balance in the General fund of an amount not less than 40% of the next year's General fund budgeted expenditures. This will assist in maintaining an adequate level of fund balance to provide for cash flow requirements and contingency needs because major revenues, including property taxes and other government aid are received in the second half of the City's fiscal year. b. Fund balance in excess of 40% but less than 50% of next year's budgeted General fund expenditures shall be designated as Unassigned. c. Fund balance in excess of 50% shall be reviewed by City Council to determine if such excess should be transferred to other funds to be used as a financing source for capital improvements, equipment purchases or other needs as determined by City Council. 2) Special Revenue Funds a. Special Revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. Governmental accounting standards require that substantial inflows of revenues into a special revenue fund be either restricted or committed in order for the fund to be considered a special revenue fund. 3) Debt Service Funds a. Debt Service fund balances are considered restricted. They are resources that are being accumulated for payments of principal and interest maturing in the current and future years. 4) Capital Projects Funds a. Capital Project fund balances are considered either committed or assigned. They are resources that are used to account for the acquisition or construction of capital facilities, infrastructure and equipment, other than those financed by Enterprise funds or the Equipment Replacement fund. b. The majority of these funds should be assigned for the Capital Improvement Plan (CIP) or reserved for a specific project. -16- c. Specific Capital Project funds may temporarily have a negative fund balance due to the timing of federal, state or other funding. d. Future capital projects must be identified and quantified within the City's five-year CIP, which shall be included in the City's annual budget document. e. The City has several capital projects funds, including: i. Capital Projects fund, Community Improvement fund, Airport Construction fund, and the annual Capital Improvement Construction funds. 1. The Capital Projects fund accounts mainly for capital improvements related to General fund facilities and miscellaneous infrastructure maintenance. The main funding sources are LGA, excess HUC payments and grants. 2. The Community Improvement fund accounts for city enhancement and public arts projects as approved by the City Council. The main funding sources are retired bond funds, grants and donations. Enterprise Funds: 1) It is the goal of each enterprise fund to cover the costs of operations, including depreciation and a transfer to the General fund, to maintain a financially healthy enterprise. The City will maintain cash reserves in the Enterprise funds at a minimum level equal to 25% of the annual operating costs plus one year of debt service payments. a. The Liquor fund shall be exempt from this provision since the majority of profits are transferred to the General fund. 2) The Water, Sewer and Storm Water funds may contribute capital improvement dollars to the annual Capital Improvement Construction fund as a reimbursement for infrastructure placed in service in conjunction with roadway and other improvement projects. Contributions shall not exceed the total cost of the specific infrastructure being capitalized within the enterprise fund. 3) Utility rates will be reviewed annually regarding projected expenses and capital improvements. The City Council will annually establish rates in accordance to operating cost recovery and the projected capital improvements. Order of Fund Balance Spend -Down: 1) When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources, and then unrestricted, as they are needed. 2) When committed, assigned or unassigned resources are available for use, it is the City's policy to use resources in the following order; (1) Committed; (2) Assigned; and (3) Unassigned. 3) A negative residual amount may not be reported for restricted, committed, or assigned fund balances in the General fund. Monitoring and Reporting: The City Council shall review fund balance and cash-flow needs during the budget process in accordance with this policy. Annually, after the audited financial report has been completed, the City Council shall review fund balance results with the City Administrator, Finance Director and the City's independent auditor. -17- CAPITAL IMPROVEMENT PLAN VISIONS AND GOALS Each year, as part of the annual budgeting process, the City of Hutchinson prepares a five-year Capital Improvement Plan (CIP) that includes the following years' capital budget. The CIP identifies projects that will support existing and projected needs in the following areas: transportation, parks & recreation and public safety, etc. It is based upon numerous long range planning documents that are updated regularly as identified by the Facilities Committee, Fleet Committee, Resource Allocation Committee and City staff. The CIP prioritizes the use of limited resources that are available for capital items by identifying which projects will be funded, how they will be paid for and when they will be purchased. It establishes a comprehensive development program that is used to maximize outside revenue sources and effectively plan for the growth and maintenance of the City's infrastructure. POLICIES Criteria identified for inclusion of capital items in the CIP plan are as follows: 1) Capital Item must have a minimum cost of $10,000 2) Project must define the year proposed 3) Funding source should be identified 4) Detail should include annual operating costs or savings for proposed capital item 5) Department priority should be established 6) Must have a useful life of three years or greater The plan encompasses projects using the following priority levels: Priority 1: (Urgent) Projects currently underway or those that are considered essential to the departments of City operations, and should not be delayed beyond the year requested. Failure to fund these projects will seriously jeopardize City's ability to provide service to the residents and/or expose the City to a potential liability and negative legal exposure. Priority 2: (Very Important) Projects that are needed by a department or the City to improve or maintain their operations, and to delay would cause deterioration or further deterioration of their current operation and/or level of service to the residents of the City. These should not be delayed beyond the year requested. Priority 3: (Important) Projects that are needed by a department or the City to improve or maintain their operations, and should be done as soon as funds can reasonably be made available. Priority 4: (Less Important) Projects, which are desirable, but needing further study. Priority 5: (Future Consideration) Projects, which sometime in the future will need to be funded to maintain operations, safety or infrastructure desired within the community. -18- CIP PROCESS 1) Finance distributes CIP forms and the prior year's data to departments for updating. 2) Departments add, remove and reprioritize CIP data from the prior year's report. 3) Finance updates the CIP database with recommendations made by the department directors and the Fleet, Facility and Resource Allocation committees. 4) Initial draft is reviewed with City Administrator and Department directors; corrections or adjustments are made. 5) Preliminary CIP plan is submitted to City council by August 1St 6) Final CIP plan is reviewed and adopted by City council by year-end. PROCESS CALENDAR April/May - Departments work on updating the CIP. Any new capital items should be requested at this time. The Facilities, Fleet and Resource Allocation Committees begin meeting to review and prioritize potential improvement projects submitted by Departments. June/July - Departments return updated CIP items. The Facilities, Fleet and Resource Allocation Committees submit a recommended five-year plan to the City Administrator. An initial CIP draft is reviewed with Department directors and corrections or adjustments are made. Current year CIP items are incorporated into the early stages of the budgeting process during this time frame. August 1 st - Per Section 7.05 of the Hutchinson City Charter, the City Administrator shall submit to the council a recommended CIP Plan no later than August 1St of each year. October/November - Departments and Finance make final adjustments to the preliminary CIP. December 31 st - Final CIP is adopted by City council prior to year-end. CAPITAL PROJECT APPROVAL The CIP is a planning document comprised of potential capital improvement projects known at a certain point in time. Projects are not approved simply by being included in the CIP as funding sources or City priorities may have changed. All capital projects are subject to the City's purchasing policy, requiring quotes/bids and approvals commensurate to the total cost. -19- DEBT MANAGEMENT PLAN The Finance Department of the City of Hutchinson has developed this Debt Management Policy to provide guidelines for the issuance of bonds and other forms of indebtedness to finance necessary land acquisitions, capital construction, equipment and other capital items for the City. While the issuance of debt is frequently an appropriate method of financing capital projects and major equipment acquisitions, such issuance must be carefully monitored to preserve the City's credit strength and to provide the necessary flexibility to fund future capital needs. The City will strive to maintain a "pay -go" capital funding policy, supporting capital spending without the use of debt whenever feasible. The City will attempt to pay cash for capital projects that can be anticipated and planned in advance. Financing capital projects with debt in certain circumstances may be the most cost-effective means available to the City. City staff will analyze each potential capital improvement and make a recommendation to City Council to either use cash reserves or issue debt. The City's 5 -year Capital Improvement Plan will be a valuable planning tool for the financing of future improvement needs. The goal of the City's Debt Management Policy is to ensure a stabilized overall debt burden and future tax levy requirement in addition to ensuring that issued debt can be repaid without weakening the City's financial condition. Adequate resources must be provided for the repayment of debt, and the level of debt incurred by the City must be effectively controlled to amounts that are manageable and within levels that will maintain or enhance the City's credit rating. With the adoption of this policy, the special property tax debt levy will not exceed the levy limit of $2,600,000. See Exhibit B for the estimated future debt tax levies per this plan. Purpose of Financing The City borrows money primarily to fund long-term capital improvement projects, essential equipment and vehicle needs and to refinance existing debt. The city will not issue long-term debt to finance current operations or to finance projects where the debt maturity exceeds the useful life of the improvement or asset. Debt will be used to finance eligible projects only if it is the most cost-effective means available to the City. The four primary borrowing purposes are summarized below: 1. Long -Term Capital Improvements The City typically issues general obligation bonds to finance improvements to roadways, infrastructure and city facilities. General obligation bonds generally achieve lower rates of interest than other financing options since they are considered a lower risk. Debt issued for this purpose generally will be for a term of at least 15 years. Inter -fund borrowing is another form of long-term financing available to the City and will be permitted only in those circumstances in which all of the following conditions are met: a) The remaining fund reserve in the lending fund is adequate to meet cash flow needs. b) A repayment schedule will be prepared detailing the annual principal and interest payments due to the lending fund. c) The repayment schedule will not exceed 15 years or the useful life of the improvement. -20- d) The City Council approves the inter -fund loan and repayment plan via city resolution. 2. Essential Vehicle and Equipment Certain specialized vehicles and equipment may require the issuance of short-term debt. City staff will analyze cash reserves, other funding sources and short-term debt for each potential purchase. Assets potentially financed with short-term debt include fire trucks, jet -vac trucks, snowplow trucks, wheel loaders and any other specialized equipment as recommended by City staff. Debt issued for this purpose generally will be for a term of 5 to 10 years. 3. Refinancing/Refunding of Existing Debt The Finance Director shall periodically review the City's existing debt and recommend refinancing or early refunding when economically beneficial. 4. Other Allowable The Finance Director is allowed to pursue other allowable borrowing mechanism as allowed by Minnesota State Statutes (Section 475, etc.) and approved by the City Council. Special Property Tax Debt Levy The City annually issues General Obligation Special Assessment bonds in accordance with Minnesota Statutes 429 and 475. The annual debt service payments are funded by the city's special property tax debt levy ("debt levy') and by special assessments paid by property owners. It is the intent of the City to best manage the debt levy by using the following guidelines to finance annual roadway and infrastructure improvements. A. The project costs financed by G.O. Special Assessment Improvement bonds will consist of two components accounted for in the Debt Service fund: Project costs not financed by special assessments. i. The debt associated with this component is repaid by the City's debt levy. ii. The City will manage this component with an average annual debt limit of $1,900,000. iii. The annual debt limit may be increased up or down by city council to account for changing interest rates and other economic factors. iv. The City will manage all debt issuances and forecast future issuances to reach a debt levy of $2,600,000. Based on current assumptions and interest rates, this is projected to occur for property taxes levied in 2030 for 2031 collection. 2. Private property owner special assessments of at least 20% of the total project costs financed by the G.O. bonds. i. The debt associated with this component is generally repaid by private property owners over a 10 -year period, but it may be less depending on the cost of the improvement and associated assessments. The annual installments shall be on a straight-line basis with simple interest equal to the true interest rate on the debt issuance plus 1 %. The City's debt levy generally is not impacted by special assessments unless significant assessments are delinquent or deferred indefinitely. ii. Certain improvement projects may result in a substantial assessment to a specific large commercial property with the property owner agreeing to prepay the entire assessment in the year of improvement. In this instance, the prepaid assessment may be eliminated from the debt issuance and used as a funding source in the Improvement Construction fund. -21- B. Future debt issuances will mature after 15 years. In the case of an exception to this guideline, the debt maturity shall always be shorter than the life of the financed improvement or asset. C. Debt service will be structured such that the debt levy will be stable over the 15 -year debt term. This will prevent large fluctuations in the debt levy on a year-to-year basis. D. Any bond premium received will be used to reduce the par value, ultimately resulting in lower debt. City staff will review each year for any circumstances that may necessitate a different treatment of the bond premium. E. Debt issuances will be in an amount to finance the estimated project costs and professional fees plus a reasonable construction contingency. The costs to issue debt will also be included in the total amount financed. F. Net general obligation debt will not exceed the statutory limit of 3% of the estimated market value of taxable property in the City as required by Minnesota Statute, Section 475.53. G. Retired debt service funds will be closed into the City's Community Improvement fund. This fund will be the primary funding source for any potential debt service shortfalls. H. City staff will periodically review the annual debt limit and may make recommendations to City Council to increase the debt limit to address rising construction costs, interest rates or other unforeseen factors. I. Future financing may need flexibility in structuring its debt. This policy shall not prevent the City from deviating from this policy as long as the City adheres to the overall intent of this policy. Prior Property Tax Levy Debt Policy City Council approved resolution 13445 on July 8, 2008, setting guidelines to manage the special property tax debt levy and the issuance of future debt. The Debt Management Policy above supersedes the 2008 policy and shall be used as the guideline for all existing and future debt. -22- PURCHASING POLICY Policy Overview It is the intent of the City of Hutchinson to purchase, in the most efficient and effective manner possible, those goods and services necessary to conduct City operations. To accomplish this, a formal set of purchasing procedures has been adopted. This policy recognizes and retains that the ultimate purchasing authority is that of the City Administrator. This policy delegates purchasing authority as outlined below. Public Purpose The City Council recognizes that public funds may only be spent if the expenditure meets a public purpose and the expenditure relates to the governmental purpose for which the City of Hutchinson was created. The meaning of "public purpose" is constantly evolving. The Minnesota Supreme Court has followed a broad approach and has generally concluded that "public purpose" means all activity that meets all of the following standards: • The activity will benefit the community as a body. • The activity directly relates to the function of government. • The activity does not have, as its primary objective, the benefit of a private interest. Purchasing Agent The City Administrator shall be the chief purchasing agent of the City. The City Administrator is responsible for the citywide purchasing function and shall have the authority to delegate powers to the City Department Directors and Supervisors for purchasing items within their respective budgets. Purchasing Purchasing and budgetary control is the responsibility of the department Director. Departments shall strive to obtain the best possible prices and value, and are encouraged to buy locally whenever possible or practical. Each department shall have on file with the Finance department a list of employees authorized to obligate appropriations of that department. Authorized employees shall be regular full-time or regular part-time employees of the City. Individual exceptions may be considered by the City Administrator, Finance Director and Department Director. In no case shall an employee make a purchase for personal use utilizing his/her city purchasing authority. Violation of this policy may result in an employee's purchasing authority being revoked. 1) Purchasing Limits: $ 0 to $ 4,999 Department Director approval, or approved designee $ 5,000 to $ 24,999 Finance Director or City Administrator approval required $ 25,000 to $ 49,999 Finance Director and City Administrator approval required $ 50,000 to $ 99,999 Finance, City Administrator & City Council approval required $100,000+ Competitive Bidding required (certain exceptions) 2) Written Quotes: a. Purchases estimated to cost less than $5,000 may be made without seeking more than one quote, however more than one quote is encouraged. b. Purchases estimated to cost more than $5,000 but less than $100,000 must have at least two written quotes. Verbal quotes should not be accepted. The City will maintain -23- documentation for a period of at least one year of its efforts to obtain at least two written quotes as required by state statute 471.345. c. The City will require competitive bidding on the sale, purchase or rental of supplies, materials or equipment and on contracts for the construction, alteration, repair or maintenance of real or personal property estimated to exceed $100,000. 3) Competitive Bidding Competitive bidding is required for certain contracts estimated to exceed $100,000. The competitive bidding process may not be avoided by splitting a contract into several smaller contracts, each of which is under the competitive bidding threshold. 4) State Pricing & Cooperative Purchasing Contracts or purchases estimated to exceed $25,000 must consider the availability, price and quantity of supplies, materials, or equipment available through the State's Cooperative Purchasing Venture (CPV) before buying through another source. The City may also purchase through a national municipal association's purchasing alliance or cooperative. The alliance or cooperative must have been created by a joint powers agreement and must purchase items from more than one source based on a competitive bidding process or competitive quotations. The City currently is a member of the State's CPV and a national joint powers alliance called NJPA. Contact the Finance Director with questions on accessing pricing for these agencies. 5) Purchase Orders An approved purchase order is required for all purchases estimated to exceed $5,000. Departments may not place an order without a prior approved purchase order. a Departmental Responsibility i. Obtaining at least two written quotes ii. Preparing and forwarding a purchase requisition to the Finance Director for review • Attach the written quote documentation • Provide a reasonable explanation of the requested purchase • Include the proper departmental expense coding • Obtain the department director's approval iii. Forwarding a copy of the approved purchase order to the vendor, if required. b Finance Department Responsibility i. The Finance Director will review each purchase requisition in a timely manner. ii. An approved purchase order, or an explanation in the case of a denied requisition, will be provided to the originating department generally within 2-3 business days. iii. The finance department will maintain scanned images of all approved purchase orders and corresponding written quotations for compliance with state statute iv. Finance Director and City Administrator approvals are required prior to seeking City Council approval on purchases over $50,000. c Purchases not requiring a Purchase Order i. Annual Service Contracts — The City shall evaluate the performance of service contracts at least every three years and determine if the City will renew the agreement or seek written proposals from service providers. -24- ii. Professional Services - Contracts with a total cost of $5,000 to $50,000 to provide professional services shall be approved by the City Administrator. Contracts with a total cost over $50,000 shall be approved by City Council. A purchase order is not required if a contract is executed. iii. Inventory Purchases - Purchases for inventory assets of certain operations shall not require a purchase order as doing so would delay purchases and potentially hinder operations. This shall apply to the Liquor store, Creekside's bagging production process, Water and Sewer chemical purchases and HATS fuel purchases. The department directors shall be responsible for ensuring that the City is receiving favorable pricing. iv. Emergency Purchases - Purchases required by emergencies which impair the City's ability to deliver services shall be outside the scope of this policy. In these rare instances, a purchase order is not required, however the departmental director shall submit a brief written explanation of the emergency situation and attach to the invoice presented for payment. Disbursement Methods The following disbursement methods are available for departmental approved purchases: 1) City Check — This is the standard disbursement process described in the next section. 2) Departmental Procurement Card — Covered under separate policy; "Procurement Card Policy". 3) Vendor In -House Charge Accounts — The City currently utilizes charge accounts with various vendors in the City. The Finance department will maintain a list of departmental employees authorized to make purchases and will submit updated lists to the vendors at least annually. Authorized purchasers shall be regular full-time or regular part-time employees. 4) Vendor Charge Cards — The City currently utilizes vendor charge cards for a limited number of vendors. Departments will control access to these cards to prevent unauthorized use and will notify the Finance Director immediately of lost/stolen cards or fraudulent activity. 5) Petty Cash — Departmental petty cash funds may be utilized for small purchases. The department shall maintain detailed receipts for each purchase and periodically submit to the Finance department for replenishment. Receipts shall be properly coded and contain an adequate explanation of the expense along with departmental approval. Disbursement Process Departments will submit properly coded and director approved invoices to the Accounts Payable Specialist by 12:00nm on Monday, one week prior to each City Council meeting. In the case of a Monday holiday, the deadline shall be 12:00pm on the prior Friday. Invoices submitted after the deadline may be delayed to the next council check run. Checks will be distributed on the Wednesday after each City Council meeting. 1) Invoices — Content and Approvals a. Payments will only be made from original mailed or emailed invoices. i. Payments will not be made from faxes, photocopies, vendor statements or quotes/estimates. b. The City of Hutchinson shall be named on the invoice as the purchaser. i. Invoices naming another entity as the purchaser will not be processed for payment. The vendor should be contacted to correct the invoice. c. The invoice date shall accurately reflect the actual date of service or purchase. d. The invoice is sent directly from the vendor to the City's Accounts Payable Specialist at City Center. I WAIM i. The A/P Specialist will stamp each invoice with a received date and route to the appropriate department for approvals. e. A reasonable description of the purchase or service, shall be included on the invoice. f. The departmental expense code and director/supervisor approval shall be evidenced directly on the invoice and not on a separate paper or post -it note. g. Departments are responsible for ensuring that the merchandise is received or the services are performed prior to submitting an invoice for payment. i. The City generally does not provide down payments for merchandise or services. Progress payments may be made to vendors based upon a reasonable percentage of completion for the service or project. ii. Departments shall work directly with the vendor to correct any issues regarding incorrect or defective merchandise or service. Prompt Payment of City Bills Minnesota Statute 471.425 requires cities to pay each vendor obligation according to the terms of the contract. If no contract terms apply, payment must be made within the standard payment period of 35 days from the date of receipt. 1) Date of receipt is defined as the later of: a. The completed delivery of the goods or services, or the satisfactory installation, assembly or specified portion thereof; or b. The receipt of the invoice for the delivery of goods or services. 2) Invoice Errors a. The City must notify a vendor within 10 days of the date of receipt if the invoice is incorrect. The 35 -day standard period begins when a corrected invoice is received. 3) Payment of Interest a. The City must calculate and pay interest if an invoice is not paid according to the terms of the contract, or if no contract terms apply, within the standard period of 35 days. L Interest rate shall be 1.5% per month or part of month. ii. The minimum monthly interest penalty that the City shall calculate and pay a vendor for the unpaid balance of any one overdue bill of $100 or more is $10. iii. For an unpaid balance of less than $100, the City shall calculate and pay the actual interest penalty due to the vendor. 4) Prompt payment to Subcontractors a. Each contract of the City must require the prime contractor to pay any subcontractor within 10 days of the prime contractor's receipt of payment from the City for undisputed services provided by the subcontractor. b. The City's contract must require the prime contractor to pay interest of 1.5% per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. L The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. ii. For an unpaid balance of less than $100, the prime contractor shall calculate and pay the actual interest penalty due to the subcontractor. Prior Policy The policy above supersedes the prior city policy #1.11. -26- PROCUREMENT CARD POLICY POLICY: The purpose of this policy is to provide detailed information regarding the use of procurement cards authorized by the Hutchinson City Council and assigned by the City Administrator to selected department directors to purchase goods and services for the City. The use of the procurement card is an alternate means of payment and is not meant to replace the standard purchasing order system of the city. The use of procurement cards should only take place when the normal purchasing order system cannot be used and/or the use of a credit card is the only purchasing mechanism allowed. STATUE AUTHORITY: Minnesota Statute 479.382 Credit Cards. "A city council may authorize the use of a credit card by any city officer or employee otherwise authorized to make a purchase on behalf of the city. If a city officer or employee makes or directs a purchase by credit card that is not approved by the city council, the officer or employee is personally liable for the purchase. A purchase by credit card must otherwise comply with all statutes, rules, or city policy applicable to city purchases." POLICY ADMINISTRATION: The City Administrator shall determine the appropriate department directors to be issued City procurement cards. The Finance Director, with the oversight of the City Administrator, is hereby designated the responsibility of procurement card issuance, accounting, monitoring of use, retrieval, payment of all charges, maintenance of a list of authorized users and cards assigned to them and general compliance with the City's Procurement Card Policy. MAXIMUM LIMITS: The monthly maximum card limit per director will be established by the City Administrator and Finance Director based on the anticipated need. DOCUMENTATION: Invoices or receipts are required to support all procurement card purchases since the -monthly billing statements lack sufficient detail to comply with Minnesota Statutes. For purchases in which a receipt is not normally available, a copy of the completed application or order form should be used as a receipt (for example, conference registration forms). CARDHOLDER RESPONSIBILITIES: 1) The Department Director is responsible for the authorized use of the City issued procurement card and for any purchases made on it. 2) Ensure that the procurement card is used in compliance with the City's Purchasing Policy. a. Purchases must be budgeted. b. Use of the procurement card for personal purchases is strictly prohibited. If the procurement card is inadvertently used for a personal purchase, contact the Finance Director/City Administrator immediately. Not reporting inadvertent personal purchases will result in immediate revocation of the procurement card and the cardholder may be subject to disciplinary and/or legal actions. The cardholder will be personally responsible for reimbursing the City for any inadvertent personal purchases. 3) The procurement card may only be used for the purchase of goods or services for official City business. -27- a. The procurement card may not be used for cash advances or any other type of purchase not permitted under the City's Purchasing Policy. No cardholder shall be allowed to make any purchases for personal use through the City. Use of card for personal use or inappropriate purchases as deemed by the City Administrator shall be reimbursed and may result in discipline, may. Two or more inappropriate purchases may be cause for revocation of the credit/procurement card. b. Purchase of motor fuels is prohibited, with the exception of extended travel with a city owned vehicle. Fuel for personal vehicles used for official city business is reimbursed to the employee based on the IRS mileage reimbursement through the Employee Expense Reimbursement process covered under separate policy. c. Cardholders shall verify with the Finance Department and notify vendors if the transaction is exempt from Minnesota sales tax. All transactions should be exempt from all local sales tax. 4) Authorized cardholders are responsible for the secure custody of the procurement card and protection against theft, misuse and fraud. a. Notify the Finance Director immediately if the procurement card is lost or stolen and when fraudulent activity is suspected. b. When fraudulent activity is suspected, immediately contact the procurement card company at the phone number listed on the back of the card. The procurement card must not be used again until the situation is resolved. A new procurement card will be issued if the activity was in fact fraudulent. c. To prevent fraudulent activity, the cardholder shall not make transactions over unsecured websites. Giving out procurement card information over the telephone is not recommended and should only be done in rare instances where the order cannot be completed in any other manner. 5) Monthly review, approval and reporting of transactions: a. At the end of each month, department directors shall have 10 days to review and approve the prior month purchases via the Wells Fargo online portal. i. Each transaction shall be evidenced by a detailed receipt or order confirmation. ii. Directors shall code each purchase to the correct departmental expense account and provide an adequate description of the expense within the online portal. iii. Directors shall print from the online portal a listing of all purchases made during the month and submit to the Finance department along with all detailed receipts supporting the purchases. Finance shall receive this information by the 11th day of the month, or next business day if the 11 th falls on a weekend. b. The Finance department will review all transactions and provide the final approval to Wells Fargo to deduct from the City's bank account the total payment amount to cover all authorized purchases. -28- 6) Returns or Disputed Transactions: a. It is the cardholder's initial responsibility to work directly with the merchant to receive proper credit on returned merchandise or disputed transactions. b. Finance Department will be available to assist cardholders with returns or disputed transactions if initial contact by the cardholder is unsuccessful. 7) The cardholder must immediately surrender the procurement card to the Finance Director upon retirement or termination of employment. All receipts for current purchases shall be coded and submitted to the Finance Director when the credit card is surrendered. 8) Any exceptions to this policy must be approved in advance by the City Administrator. SUSPENSION OR REVOCATION OF CARDS: If any of the following occur, immediate suspension and/or revocation of the procurement card privileges may result, including discipline, as determined by the City Administrator: 1) Use of the card for personal purchases or cash advances. 2) Unauthorized use of card. 3) Failure to notify the procurement card company and Finance Director of a lost or stolen card, and fraudulent activity. 4) Repeated failure to submit in a timely manner the monthly billing statement with proper receipts/support for payment. 5) Repeated failure in which the attached receipts do not match the item description or dollar amounts listed on the monthly billing statement with no explanation. -29- City of Hutchinson Request for Procurement Card Applicant: Department: Requested Monthly Card Limit: $2,000 $5,000 $10,000 Other: $ By requesting a City procurement card, I acknowledge the following: 1. The procurement card is to be used only to make purchases in compliance with Minnesota Statutes and the City's Purchasing Policy. 2. The card must be used in accordance with the City's Procurement Card Policy. 3. Violation of the Procurement Card Policy may result in suspension or revocation of use privileges. Employees found to have inappropriately used the procurement card will be subject to discipline, including petentiall the requirement to reimburse the City for all costs associated with such improper use. Director Signature: Authorization Information Approved Monthly Card Limit: $ City Administrator Approval: Finance Director Approval: Date: Date: Date: This fully approved request gives the Finance Director authorization to issue a City of Hutchinson procurement card in the name of the applicant with a monthly card limit as approved by the City Administrator. -30- City of Hutchinson Acknowledgement of Receipt of Procurement Card I acknowledge that on the date indicated below, I received my City of Hutchinson Procurement Card. I have previously received a copy of the Procurement Card Policy explaining the use and responsibilities of the procurement card. I understand that: 1) The procurement card is a cost-effective method for the purchase and payment of small dollar material transactions and is limited to $ per month. 2) The procurement card is to be used solely for City business purchases; not personal purchases. 3) 1 am responsible for reconciling monthly statements and maintaining accurate accounting records. 4) 1 must attach the itemized receipt with my statement each month. 5) Should my employment with the City of Hutchinson terminate, I am responsible for returning the procurement card to the City Administrator or Finance Director, along with all receipts for purchases within the current billing cycle. If the procurement card is used for personal purchases, for unauthorized items, or used by someone not authorized to do so, I hereby agree to personally pay the City for such purchases and hereby authorize the City, if necessary, to withhold from my paycheck any amount necessary to pay these charges. This acknowledgement will be kept in my personnel file and I may be subject to discipline or termination from employment for violation of this policy. Procurement Card #: Unique #: (used to activate card and ID purposes with Wells Fargo customer service) Employee Name: (please print) Employee Signature: Date: Wells Fargo Customer Service: 1-800-932-0036 -31- TRAVEL & MEAL EXPENSE REIMBURSEMENT POLICY Policy Overview This policy recognizes the fact that certain travel for official city business may require employees or elected officials to incur expenses subject to reimbursement by the City. Reasonable travel costs for out of town business meetings, conferences and training seminars may qualify for reimbursement as provided by this policy. To be reimbursed by public funds, expenditures must meet a "public purpose", defined by Minnesota Supreme Court as meeting all of the following: ➢ The activity will benefit the community as a body. ➢ The activity directly relates to the function of government. ➢ The activity does not have, as its primary objective, the benefit of a private interest. This policy is intended to provide guidelines regarding which travel related expenditures are for public purpose and authorized in accordance with the City's annual budget. The City Administrator and Finance Director shall review all employee expense reimbursement requests and will determine if an expense does not meet a public purpose and is not subject to City reimbursement. Travel Approval Each department director is responsible for ensuring that employee travel is for City business and is consistent with City policy. Department Directors are responsible for approving all travel requests within his/her respective departments and will ensure that departmental budget dollars are sufficient to cover requested travel prior to approving. Requests for travel by Directors shall have prior approval by the City Administrator. The following approvals are needed prior to employee travel: 1) Same Day & Overnight Travel - Department Director approval is required. 2) Out of State - All out-of-state travel exceeding a 300 -mile radius from Hutchinson must be approved within the annual budget process and approved separately by City Council. The frequency of this out-of-state travel shall not exceed once every other year. In the event an additional conference or seminar presents itself, the council may use its discretion in considering the request. 3) Out of State - All out-of-state travel within a 300 -mile radius of Hutchinson shall be approved by the City Administrator and does not require City Council approval. Reimbursable Expenses 1) Transportation Several means of transportation exist and each travel request shall consider the least -cost method. For the majority of travel requests, a City vehicle provides the least -cost to the City and shall be considered before any other means. Vehicles from other departments may be available and shall be a consideration. a) City Vehicle — All direct expenses incurred will be reimbursed, including fuel, oil and maintenance/repair expenses. Only City employees are authorized and insured to drive a city owned vehicle. b) Personal Vehicle — When a city vehicle is not available, a personal vehicle may be authorized for use. City reimbursement for the use of a personal vehicle is based on the current IRS approved mileage rate using the shortest route. If the travel originates from home, the mileage reported for reimbursement should be from the home or the employee's normal City work facility, whichever is less. An employee's normal commute mileage will not be reimbursed. -32- c) Airplane/Other — travel by any means other than by vehicle shall be approved by the City Administrator. d) Other related costs — Reasonable parking fees, car rental and fares for rail, bus, taxis and shuttles are all subject to reimbursement if related to City business. Taxis and shuttles reimbursement may include a maximum gratuity of 20%. Gratuities in excess of 20% will not be reimbursed by the City. A standard model sedan shall be used when renting a car unless unusual circumstances dictate otherwise. 2) Lodging The City will reimburse the reasonable cost of lodging for training, seminars or conventions of two or more days if the event site is outside a 50 -mile radius of Hutchinson. All employees shall ask for a standard room. In the event that a standard room is not available, other lodging establishments shall be contacted prior to booking a non-standard room. A non-standard room is reimbursable if it is at a contract rate through the event, offered at the same rate as a standard room or if no other options are available within a reasonable distance from the event. An increase in lodging rate due to family members staying is not reimbursable. The employee will be reimbursed only for a standard room. Entertainment expenses incurred will not be reimbursed, such as in -room movies, mini -bar and optional entertainment -type events provided at conferences. 3) Meals The City will reimburse the cost of job-related meals only if an employee's travel requires an overnight stay or if a business meeting is held during typical meal hours. The following limits are in place for each meal: Breakfast: $15 — Travel begins before 6:00am and extends beyond 9:OOam Lunch: $20 — Travel begins before 11:00am and extends beyond 2:OOpm Dinner: $30 — Travel begins before 4:OOpm and extends beyond 7:OOpm a) Meetings scheduled and held during typical meal hours do not automatically necessitate that a meal will be provided at City expense. Per IRS regulations, a meal must have a clear business purpose in order to be reimbursed. b) The maximum amounts listed above apply to the meal, non-alcoholic beverage, sales tax and gratuity. c) Gratuities paid by the employee over 20% will not be reimbursed. d) The above dollar amounts cannot be combined in any fashion in order to reimburse an employee for a meal costing more than the maximum amount listed per specific meal. For example, an employee cannot use the breakfast and lunch amounts to justify reimbursement of a $60 dinner. e) Employees are expected to take advantage of meals provided by the conference or seminar. The City will not reimburse an employee for a purchased meal when a meal was provided by the event. f) If more than one employee is present at a job-related meal, one employee may pay for the entire meal cost of all employees. The reimbursement request shall clearly identify each employee present for the meal. g) If non -city personnel are present at a job-related meal, the city may reimburse the paying employee for the cost of the meal(s) of the individual(s) if an itemized receipt and a form indicating who attended, where the meal was held and the city -related purpose for the meal is submitted and approved by the Department Director and City -33- Administrator. Reimbursement of a non -employee's meal is subject to the same dollar limit as the employee. h) When family members are present, a separate detailed receipt for the employee's meal shall be requested. i) The daily meal limits may be adjusted for out-of-state travel by the Finance Director based on current IRS per diem guidelines. 4) Registration or Membership Cost The City will reimburse the costs for registration, training and membership incurred to attend conferences, seminars or training sessions. A check request shall be submitted to the City's accounts payable department prior to the event as the primary option for payment of this type of cost. The request shall include the necessary documentation evidencing the amount payable and provide sufficient time to process a check prior to any payment due date. A departmental purchasing card may also be used for payment based upon receipt of all necessary travel approvals prior to making payment. Departments shall strive to utilize any early registration discounts. 5) Non -Reimbursable Costs a. Alcoholic beverages — whether consumed by an employee or a non-employee b. Gratuities exceeding 20%. An employee will be required to reimburse the City for gratuities in excess of 20% if a department purchasing card was used. c. Snacks and other food/beverages outside of the daily meal reimbursements d. Meals or events for spouses or family members traveling with an employee e. Meals when an event provides for a meal f. Private automobile expenses, including gas, oil, repairs g. Traffic citations or fines h. Travel between an employee's home and work facility i. Entertainment expenses j. In -room movies, mini -bar or other hotel services not required for City business k. Optional entertainment events unless included as part of the overall conference registration fee (e.g. optional golf rounds, sporting events, concerts) I. Personal losses incurred while on City business m. Other costs that do not meet the public purpose definition as determined by the City Administrator and Finance Director Employee Expense Reimbursement Form The Finance Department shall annually provide an updated Employee Expense Reimbursement Form (Exhibit B) to all employees. This form shall be used for all reimbursement requests related to approved travel or work-related expenses paid by an employee . 1) Detailed Receipts — each item submitted for City reimbursement must be supported by an itemized receipt indicating a reasonable explanation for the expense. All receipts shall be attached to each reimbursement request. a. Meals will be reimbursed based on a detailed itemized receipt. When a credit card is used to purchase the meal, both an itemized receipt and a credit card charge slip indicating the tip amount shall be submitted. b. Receipts for parking and taxis may not be available and may be submitted for reimbursement without a receipt. c. Mileage reimbursement for the use of a personal vehicle shall detail not only the mileage but also the location traveled and the business reason for travel. d. Proper departmental expense codes shall be used for each line item. -34- e. Unsupported expenses will not be reimbursed. If an employee is unable to get a detailed receipt or the receipt is lost, a signed statement by the employee detailing the purchased item, the business reason for the expense and certifying that the claim is accurate must be submitted and approved by the Department Director. A copy of the employee's credit card statement may also be provided to help support the dollar amount being reimbursed. 2) Employees shall submit an employee expense reimbursement form with all necessary supporting documentation to the appropriate Department Director for review and approval. 3) A Director approved employee expense reimbursement form shall be forwarded to the Accounts Payable Clerk who will route to the Finance Director and City Administrator for approval prior to payment. Any issues will be communicated back to the employee for correction/clarifi cation. 4) The Finance department will make necessary corrections to reimbursement requests for mathematical errors, gratuities in excess of 20%, to remove any alcoholic beverages and other changes that may be necessary to comply with this policy. 5) Reimbursement will be made with the next City Council check register. 6) Employees shall submit an expense reimbursement claim no later than 60 days from the date the expense was paid or incurred. If employee expenses are submitted for reimbursement more than 60 days after the expense is incurred, the reimbursement may be taxable and appropriate withholdings would need to be made through the payroll system. Cash Advances An employee may request a cash advance prior to an overnight business trip. The cash advance shall be used only for expenditures related to official City business as specified within this policy. An employee expense reimbursement form shall be completed upon the employee's return, detailing the expenses subject to reimbursement, less the cash amount advanced. Expenses paid by the employee above and beyond the cash advance amount will be subject to employee reimbursement per this policy. Any portion of the cash advance that was not expended for a City related purpose must be reimbursed to the City within 60 days. The employee shall be responsible for any cash advance that is lost or stolen. In such instances, the employee must reimburse the City within 60 days. City Representation Employees shall be aware at all times that they are representing the City of Hutchinson while traveling out-of-town for official City business. Employees given the opportunity to be away from their regular work and having their expenses paid are expected to perform in a similar manner as if they were still at work. Conduct improper for a city employee will be treated as if it occurred during regular working hours. At no times shall alcoholic beverages be consumed by any person(s) driving or riding in a City of Hutchinson vehicle. Prior Policy The policy above supersedes the prior city policies #3.22 and #3.23. -35- FISCAL AGENT POLICY Purpose This policy defines the parameters necessary for the City of Hutchinson (City) to act as the fiscal agent for a non -501(c)(3) organization (Other Entity) in order to secure grants or donations on behalf of the Other Entity. City Authority All requests for the City to serve as fiscal agent shall be approved by the City Administrator. The City Finance Director shall be made aware of all details related to approved fiscal agent projects for proper accounting of proceeds and expenditures. City Purchasing Policy The City's purchasing policy must be followed in order to comply with the State of Minnesota purchasing and contracting statutes. Vendor quotes shall be received, if required by policy, and the contract shall be awarded to the lowest responsible bidder. Invoices paid by the City must be billed to the City of Hutchinson and not another entity. Public Purpose Expenditures The City expenditure made on behalf of the Other Entity must meet a "public purpose", defined by the Minnesota Supreme Court as meeting all of the following: 1) The activity will benefit the community as a body. 2) The activity directly relates to the function of government. 3) The activity does not have, as its primary objective, the benefit of a private interest. The Minnesota Supreme Court further clarifies that activities that promote the following objectives for the benefit of all the city's residents further a public purpose: • Public Health • Safety • General welfare • Security • Prosperity • Contentment Donations Donations related to a project with the City serving as fiscal agent shall be made directly to the City of Hutchinson. The Hutchinson City Council shall formally accept all donations by resolution prior to those funds being used for the designated purpose. Grants The Other Entity shall be responsible for the preparation of all grant documentation and grant compliance, including reporting requirements. The City shall, upon request from the Other Entity, supply supporting documentation or reports related to transactions incurred within the City's financial system. Other The City shall not expend funds in excess of donations or grant proceeds received without City Council or City Administrator approval. -36- EXHIBIT A List of City Funds Governmental Funds: 1. General Fund 2. Special Revenue Funds a. Rural Fire Department b. H.A.T.S.Operation c. Hutchinson Enterprise Center d. Economic Development Loan Funds e. HRA Loan Fund f. Tax Increment funds g. Public Sites Fund h. Tree Disease Mitigation Fund 3. Debt Service Funds a. Special Assessment Bonds Debt Service Funds b. Tax Increment Debt Service Funds 4. Capital Projects Funds a. Capital Projects Fund b. Community Improvement Fund c. Airport Construction Fund d. Special Assessment Capital Improvement Funds e. Municipal State Aid Fund Proprietary Funds: 1. Enterprise Funds: a. Liquor Fund b. Compost Fund c. Refuse Fund d. Water Fund e. Wastewater Fund f. Storm Water Fund g. Hutchinson Utilities Commission 2. Internal Service Funds: a. Equipment Replacement Fund b. Self -Insurance Fund Component Units: 1. Hutchinson Economic Development Authority 2. Hutchinson Housing Redevelopment Authority -37- w 00 Name: Date Submitted: CITY OF HUTCHINSON 2018 EMPLOYEE EXPENSE REIMBURSEMENT REQUEST Department Approval: City Administrator Approval: Total Expenses subject to Reimbursement Less: Cash Advance Received (enter as positive) Total Reimbursement Requested ATTACH ALL DETAILED RECEIPTS Reimbursement will only be matte from original, detailed receipts. t declare under penalties of law that this account claim is just and correct, it is for a public or city purpose and that no part of it has been previously paid. Reference the City's Travel Policy or contact the Finance Director with any questions. Signature of claimant: H:\Expense Reimbursement Form - 2018.x1sx EXHIBIT C Debt Management Plan Projected Debt Tax Levy $3,000,000 _...... ...................... .._._... .....�.._ __.�. $2,500,000 $2,000,000 j k $1,500,000 $1,000,000 f $500,000 j f $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 =Existing Levy =Proposed Future Issues =31Equipment —Target Levy Debt -39- FINANCIAL MANAGEMENT PLAN Draft for City Council Review April 24, 2018 -1- Table of Contents Page No. 3 ............... Purpose 4 ............... Cash and Investments 8...............Cash Controls & Procedures 11..............Revenue Policy 13..............Operating Budget 15..............Fund Balance / Reserve Policy 18..............Capital Improvement Plan 20..............Debt Management 23..............Purchasing Policy 27..............Procurement Card Policy 32..............Travel & Meal Reimbursement Policy 36 .............. Fiscal Agent Policy 37..............Exhibit A — List of City funds 38..............Exhibit B — Debt Tax Levy -2- PURPOSE The City of Hutchinson (City) has a responsibility to provide quality services to its residents and considers it important to do so in a fiscally responsible fashion designed to keep services and taxes as consistent as possible over time. This Financial Management Plan (Plan) is designed to serve as the framework upon which consistent operations may be built and sustained, which guides responsible use of municipal resources and contributes to the City's overall financial health. This Plan serves three main purposes: 1. It draws together the City's major financial policies in a single document. 2. The plan establishes principles to guide both staff and Council members to make consistent and informed financial decisions. 3. The plan provides guidelines for ensuring and maintaining an appropriate level of funds, unreserved and reserved, to sustain the financial integrity of the City. The objectives of this Plan are: ➢ To provide both short term and long term future financial stability by ensuring adequate funding for the provision of services needed by the community, ➢ To protect the City Council's policy-making ability by ensuring that important policy decisions are not controlled by financial problems or emergencies, ➢ Prevent financial difficulties in the future, ➢ To provide sound principles to guide the decisions of the City Council and Administration, ➢ To employ revenue policies which prevent undue or unbalanced reliance on certain revenues, distribute the cost of municipal services fairly, and provide funding to operate desired programs, ➢ To provide essential public facilities and prevent deterioration of the City's public facilities and infrastructure, ➢ To protect and enhance the City's credit rating and prevent default on any municipal debt, ➢ To create a document that City staff and Council Members can reference during financial planning, budget preparation and other financial management issues. The financial management plan will be reviewed annually during the city's budgeting process. -3- CASH AND INVESTMENTS PURPOSE The purpose of this policy is to establish specific guidelines the City of Hutchinson will use in the investment of City funds. It will be the responsibility of the City Administrator, or his designee, to invest City Funds in order to attain the highest market rate of return with the maximum security while meeting the daily cash flow demands of the City and protecting the capital of the overall portfolio. Investments will be made in accordance with all state and local statutes governing the investment of public funds. SCOPE The City Administrator, or his designee, is responsible for the investing of all financial assets of the City of Hutchinson, excluding pension funds. These funds are accounted for in the City's Comprehensive Annual Financial Report and include the following: ➢ General Fund ➢ Special Revenue Funds ➢ Debt Service Funds ➢ Capital Project Funds ➢ Enterprise Funds ➢ Internal Service Funds ➢ Economic Development Authority PRUDENCE Investments shall be made with judgment and care, not for speculation, but for investment, considering the probable safety of the capital as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing the overall portfolio. Investment officers acting in accordance with this policy, with MN Statutes, Chapter 118A, and exercising due diligences shall be relieved of personal responsibility for an individual security's risk or market price change, provided that reasonable action is taken to control adverse developments and unexpected deviations are reported in a timely manner. OBJECTIVE 1) Safety — Safety of principal is of critical importance to the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of principal in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. a. Credit Risk — the risk of loss due to failure of the security issuer or backer, will be minimized by: i. Limiting investments to the types of securities listed in this policy under Authorized and Suitable Investments. ii. Pre -qualifying the financial institutions, brokers/dealers, intermediaries, and advisors with which the City will do business in accordance with this policy under Authorized Financial Dealers and Institutions. iii. Diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized. Insurance or collateral may be required to ensure return of principal. I'M b. Interest Rate Risk — the risk that the market value of securities in the portfolio will fall due to changes in market interest rates will be minimized to: i. Provide for liquidity by reviewing cash flow requirements and making investments to meet the shorter cash flow needs, thereby avoiding the need to sell securities in the open market prior to maturity. ii. Manage the annual maturity of the overall portfolio to be consistent with the risk of the City. 2) Liquidity — The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements reasonably anticipated. The portfolio will be structured to emphasize liquidity and consist largely of securities with active secondary or resale markets (dynamic liquidity). A portion of the portfolio may be placed in money market mutual funds or local government investment pools that offer same day liquidity for short-term funds. 3) Yield — The City's investment portfolio shall be designed with the objective of attaining a market rate of return. The core of investments is limited to low-risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall generally be held until maturity with the following exceptions: a. A security with declining credit may be sold early to minimize loss of principal. b. A security swap would improve the quality, yield, or target duration in the portfolio. c. Liquidity needs of the portfolio require that the security be sold. DELEGATION OF AUTHORITY Authority to manage the City's investment program is derived from MS 118A which authorizes the City to invest any funds not presently needed for other purposes. This law applies to all types of funds not presently needed, including all general, special revenue, permanent, trust or other funds regardless of source or purpose. Under this chapter, a city may invest idle funds in state or national banks, savings and loan associations, or credit unions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the policy. Management responsibility for the investment program is hereby delegated to the City Administrator, or his designee, who shall be responsible for all transactions. The City Administrator, or his designee, shall establish procedures for the operation of the investment program, consistent with this policy. Such procedures may include delegation of authority to persons responsible for investment transactions. ETHICS AND CONFLICTS OF INTEREST The City Administrator and Finance staff involved in the investment process shall refrain from conducting personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Investment staff shall annually disclose to the City Council any material financial interests as required by state statute. Investment staff shall subordinate their personal investment transactions to those of the City, particularly with regard to the time of purchases and sales, and shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City. -5- AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City Council will annually approve by resolution the depositories and a list of financial institutions authorized to provide investment services. 1) Only approved security broker/dealers, selected by creditworthiness, shall be utilized, with a minimum of $10,000,000 capital and at least five years of operation. 2) Financial institutions must be qualified as a "depository" by the City Council; these may include "primary" dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule). 3) All investments must be insured or registered, or securities must be held by the City or its agent in the City's name. 4) No public deposit shall be made except in a qualified public depository, as established by state laws. 5) When investments purchased by the City are held in safekeeping by a broker/dealer, they must provide asset protection of $500,000 through Securities Investor Protection Corporations (SIPC), and at least another $2,000,000 Supplemental Insurance Protection, provided by the broker dealer. 6) Before engaging in investment transactions with the City, the supervising officer at the securities broker/dealer shall submit a certification of "Notification to Broker and Certification by Broker Pursuant to MN Statute 118X. Said certification will state that the broker/dealer has reviewed the investment policies and objectives, as well as applicable state law, and agrees to disclose potential conflicts or risk to public funds that might arise out of business transactions between the securities broker/dealer firm and the City. All financial institutions shall agree to undertake reasonable efforts to preclude imprudent transactions involving the City's funds. AUTHORIZED AND SUITABLE INVESTMENTS It shall be the policy of the City that available funds be invested to the best rates obtainable at the time of investment in conformance with the legal and administrative guideline outlined herein. US Treasury Obligations and Federal Agency Securities will be given preference when the yields are equal to or greater than alternative investments. The investments of the City will be made in accordance with Minnesota Statutes, section 118A, which lists all permissible investments for municipalities. COLLATERAL Interest-bearing deposits in authorized depositories must be fully insured or collateralized. Collateralization will be required on Certificates of Deposits (where the dollar amount is in excess of FDIC coverage). In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 110% of the market value of principal and accrued interest. When the pledged collateral consists of notes secured by first mortgages, the collateral level will be 140% of the market value of principal and accrued interest. Collateral shall be deposited in the name of the City, subject to release by the City Administrator. SAFEKEEPING AND CUSTODY Securities purchased shall be held by a third party trustee as a safekeeping agent and in a segregated account for the City's benefit. The investment dealer or bank in which the security is purchased shall issue a confirmation ticket to the City listing the specific instrument, issuer, coupon, maturity, CUSIP number, purchase or sale price, transaction date, and other pertinent information. The financial service provider that executes the transaction on the City's behalf shall deliver all securities on a delivery versus payment method (DVP) to the designated third party. Delivery versus payment (DVP) is a way of controlling the risk to which securities market participants are exposed. Delivery of securities (i.e. the change in their ownership) is done simultaneously with payment. This means that neither the buyer nor the seller is exposed to the risk that the other will default. The City may not invest in securities that are uninsured. Securities will be held in the City's designated accounts. Investments, contracts and agreements may be held in safekeeping with: ➢ Any Federal Reserve bank; ➢ Any bank authorized under the laws of the United States or any state to exercise corporate trust powers, including, but not limited to, the bank from which the investment is purchased. DIVERSIFICATION The City Administrator or investment designee will attempt to diversify its investments according to type and maturity. The City will attempt to match its investments with anticipated cash flow requirements. Extended maturities may be utilized to take advantage of higher yields. Diversifications strategies shall be determined and revised periodically by the City Council for all funds. 1) Institutions — Diversity between financial institutions used. a. The City Administrator or investment designee will attempt to diversify its investments equally amongst investment companies, keeping in mind that some temporary fluctuations may occur throughout the year (i.e. tax settlement in June, GO Bonds for projects, etc.). b. No funds may be invested in any single investment company in excess of the amount insured by it. 2) Maturities — Diversity in length of maturities a. Investments shall be made to assure that funds are constantly available to meet immediate payment requirements. b. No investments shall be made with a term of more than 10 years. 3) Investments — The City should maintain a diversity of investments. a. Depending on market conditions, with the exception of US Treasury Securities, authorized pools, and Federal Agencies (backed by the full faith and credit of the US Government or its agencies), no more than 50% of the City's total investment portfolio may be invested in any one of the following: Certificates of Deposit or Commercial Paper. POOLING OF INVESTMENTS The City shall pool excess cash from all funds into one investment account in order to maximize the amount of monies available for investment. Monthly investment earnings shall be allocated among the various funds based on monthly cash balances. PRIOR POLICY The policy above supersedes the prior city policy #1.14. 7- Cash Controls & Procedures PURPOSE: To provide reasonable controls for the handling and safeguarding of monies received in the course of operations at various City facilities, and to protect City assets and minimize the potential for theft, fraud and discrepancies in cash transaction records. The purpose of this policy is also to protect City employees from inappropriate charges of mishandling of funds by defining his/her responsibilities in the cash handling process. Cash Systems and Records All cash received in the course of operations, including concessions sales, must be entered into the City's point-of-sale (POS) system. Each transaction type will have a preset code within the POS system with predetermined prices set up per City approved pricing amounts. Separate cash drawers shall be maintained at each point-of-sale location and shall be integrated with the POS system for formal accounting of each transaction. All employees authorized to receive cash shall have a separate user ID and password to gain access to the POS system. Employees shall not share POS access information with others. Daily reports will be generated from the POS system and forwarded to Finance on a weekly basis along with the daily cash proofs for each cash drawer and the daily bank deposit proof. Finance will reconcile submitted documentation to the bank records. Safeguarding of Cash The facility will have a cash safe with either a combination or key lock. Access to the safe shall be restricted to City approved managers. The combination or key shall be changed periodically due to turnover of authorized personnel or if theft occurs. The cash safe shall be located within a secure room or office with access limited only to authorized personnel. Ideally, the office shall have computerized records of access based on an employee access card. Transporting and counting of monies within the facility must always be done by two authorized employees and never by only one employee. Cash and deposit counts must always be performed within the secure office and documented by each of the two employees. Signatures by each employee on a daily cash log represents approval of the cash count and bank deposit. Discrepancies between the cash counts and the actual bank deposit shall be directly addressed to the two employees evidenced on the cash log and the manager of the facility, or their designees. Employees may be subject to disciplinary action or termination due to cash discrepancies or theft. Daily Cash Handling Process 1) Cash Drawer start-up cash a. Each morning prior to opening for business, the facility manager, or the designee, shall prepare each cash drawer with the preapproved amount of cash and coin. b. Cash drawers shall remain in the secure location until the start of business. c. Each employee working a cash drawer shall recount the start-up cash and sign off on the daily cash log sheet. d. The manager on duty shall walk each employee to the appropriate cash register and verify that the cash drawer is placed in service and that the employee logs into the POS system. i. Cash drawers shall never be transported by only one employee. 2) Cash Transactions a. All cash and credit transactions must be entered through the POS system. i. Acceptance of personal checks will be prohibited at certain facilities. Those facilities shall have a sign posted informing customers of this policy. b. A receipt shall be offered to the customer after every transaction. c. Only the approved managers shall have system authority to process refunds, returns, voids or over -rings. 3) Cash Drawer Count and Reconciliation a. At the end of each employee's shift, the manager on duty shall verify that the employee logs off the POS system. b. The manager shall remove the cash drawer and walk with the employee to the secure office. c. The cash drawer shall be counted immediately by the employee in the direct presence of the manager and documented on the daily cash log. i. The cash count shall be compared to a cash register report from the POS system and any discrepancy shall be noted. d. The manager shall recount the cash drawer and evidence the cash count on the daily cash log. i. Any discrepancies in count between the employee and manager shall be reconciled prior to finalizing the daily cash log. ii. If employee and manager are in agreement, both parties sign the daily cash log and the monies and log sheet are placed in the safe by the manager prior to the employee leaving the secure room. 4) Bank Deposit Preparation a. The shift manager, in the presence of the facility manager, or the designee, shall prepare a total daily bank deposit based on the daily cash logs of each cash drawer. i. The facility manager, or the designee, verifies that each cash log sheet is properly approved by employee and shift manager. ii. The facility manager, or the designee, recounts the cash and verifies that the total deposit amount is in agreement with the totals of each daily cash log. b. Start-up cash for the following day's cash drawers are deducted from the daily deposit. i. The start-up cash is placed in a bank bag and stored in the safe for the subsequent day cash drawers. c. The shift manager and facility manager, or their designees, sign the deposit slip, make a copy for Finance Department, and place the monies and deposit slip in the bank deposit bag. L The deposit bag is placed in the safe, witnessed by both employees. 5) Transporting Daily Deposit to the Bank a. For deposits made at night, an on -duty police officer shall be called to the facility to transport the shift manager, or the designee, and deposit bag to the bank. The deposit bag shall be removed from the safe with the police officer present as witness. If the police are unavailable, two authorized employees shall deliver the deposit to the bank. b. For deposits made during the day, it is preferable to have two employees deliver the deposit to the bank. 6) Daily Reports to Finance a. The facility manager, or the designee, shall be responsible for forwarding the following information to the Finance Department: IM i. Approved Daily Cash Logs ii. Daily POS system report with subtotals by cash register 1. POS reports shall be only for the operations of one specific department. iii. Copy of the approved Daily Bank Deposit slip 1. The facility's deposit shall be made separately from any other related departmental operations (i.e.- Aquatic Center deposits shall be separate from Recreation deposits) iv. Any other reports as may be determined from time to time. b. Finance shall reconcile facility reports to the bank statement. Other Cash Controls 1) Currency larger than a twenty -dollar bill ($20) shall be inspected for any signs of being counterfeit. 2) Only cash or credit cards will be accepted at certain facilities. 3) Credit cards will be processed at the point-of-sale and must not leave the customer's sight. In no instance will credit card information be written down by City staff or retained in any fashion. 4) A receipt is required to be given to the customer for every transaction. Cash Operations without a POS System Some City operations may be conducted in a location where it is not feasible to have a POS system to account for cash transactions, such as the Roberts Park concession building and offsite events for the liquor store. This policy is still applicable in those instances with the exception of reconciling the receipts to a POS system report. Daily cash count sheets must still be maintained and approved, and deposits shall be made on the next business day. If possible, two employees shall be present when counting the cash and creating the deposit slip. Policy Compliance All employees of the City of Hutchinson, primarily Liquor Hutch and the Aquatic Center, who are responsible for cash transactions shall be subject to the procedures within this document. The Finance department acknowledges that certain aspects of this policy may not be practical for all situations. A deviation from policy may be approved if it is determined that that such deviation does not present a material risk of mishandling or misreporting cash activity. Any deviation from this policy must be approved by the Finance Director. The City's Finance department shall reserve the right to create an internal audit process and to perform audits as determined necessary. -10- REVENUE POLICY PURPOSE The City of Hutchinson is committed to maintaining a revenue system that meets the City's immediate and long-term service delivery needs, protects the City's creditworthiness, and follows best practices for administration and collection. REVENUE STRUCTURE AND SOURCES The City will strive to maintain a stable and diverse revenue system to reduce the effects of short- term fluctuations in any one revenue source. Services having a city-wide benefit shall be financed with revenue sources generated from a broad base, such as property taxes, state aids and transfers from enterprise funds. Services where the customer determines the use shall be financed with user fees, charges and assessments related to the level of service provided. 1) Property Taxes Property tax payments are the largest source of revenue in the City's General fund, accounting for approximately 40% of the total annual revenue. The City will strive to proactively avoid large increases in property taxes and will explore all other alternatives, including: ➢ Other policy options (debt management, fees & charges, cost allocation, expenditure cuts and use of reserves). ➢ Budget scenarios for a 0% tax levy, including potential reductions in service levels. ➢ Consideration will be given to staying within the amount of revenue generated by increased market value with no increase in the tax rate. If after exhausting these alternatives, a tax increase is required, the goal of the City will be to keep any property tax rate increase at or below the prevailing inflation rate. City services will be funded to the maximum extent possible by the increases in market valuation (i.e.; new tax base growth and valuation increases). Possible factors for considering an increase in property tax include: ➢ Long-term protection of the City's infrastructure. ➢ Meeting legal mandates imposed by outside agencies. ➢ Maintaining adequate fund balance and reserve funds sufficient to the City's Fund Balance Policy. ➢ Funding City development and redevelopment projects that will clearly result in future tax base increases. The expenditures of development and redevelopment funds must be in accordance with a defined strategy as shown in the City's comprehensive plan, capital improvement plan, and other council documents. Property tax increases to meet other purposes will be based on the following criteria: ➢ A clear expression of community need. ➢ The existence of community partnerships willing to share resources. ➢ Establishment of clearly defined objectives and measurements of success, including appropriate sunset provisions. 2) Fees and Charges The City will establish fees and charges for services when the cost of services can be allocated equitably among service users. -ll- a. General Fund Tax dollars should support essential City services that benefit and are available to everyone in the community (such as parks, police and fire protection). For services that largely or solely benefit individuals, the City should recover full or partial costs of service delivery through user fees. The user fees must not exceed the full cost of providing the service. b. Enterprise Fund User Fees Customer or user fees for services/products provided by an enterprise fund shall be determined at a level that fully covers the total direct and indirect costs, including operating expenses, capital expenditures and debt service. The fees shall also provide for a positive cash flow and adequate working capital. c. Fee Schedule The City's fee schedule shall document all fees charged, or assessed, for services provided to users or customers. Departments shall review existing fees as part of the annual budgeting process to ensure that fees keep pace with changes in the service delivery costs as well as changes in methods or levels of service delivery. Fees for new services shall also be determined in a manner that equitably charges the user for the service provided. Administration and Finance shall compile a preliminary fee schedule and present to city council for approval by December 31 of each year. REVENUE ESTIMATES The City will conservatively estimate and budget for its annual revenues using an objective, analytical process. All existing and potential revenue sources will be re-examined annually. NON-RECURRING REVENUES Revenue sources that are non-recurring in nature shall not be used to fund ongoing programs or operations of the City. This includes revenue such as sales of assets, settlement from a lawsuit, inter -fund transfers and other one-time payments. These revenue items should be used to build reserves or for projects that will result in long-term operating costs savings. Non-recurring revenue may also include grants and donations. These revenue sources should be dedicated to the use designated by the grantor or donor. The annual budget shall be prepared in a manner that eliminates, or minimizes, reliance on unpredictable or non-recurring revenues for on-going operating costs. -12- OPERATING BUDGET PURPOSE: The objective of the operating budget policy is to ensure that sufficient information is available to decision makers to provide for adequate levels of funding for essential City services at reasonable costs. Budgeting is an essential element of the financial planning, control and evaluation process of municipal government. The "operating budget" is the City's annual financial operating plan. The annual budget includes all operating departments of the general fund, other governmental funds and proprietary funds. The budget will provide for adequate maintenance of city facilities and equipment and for their orderly replacement. The following funds are included within the City's annual budget GOVERNMENTAL FUNDS: 1) General Fund, which accounts for all financial resources except those required to be accounted for in another fund, and include basic governmental services, such as Police, Fire, Parks and Recreation, Streets and Highways, Building Inspections, Cemetery, Airport and Administrative services. 2) Special Revenue Funds, which account for revenues that are legally restricted or committed to a specific purpose other than debt service and capital projects. The City currently budgets for the Economic Development Authority and the H.A.T.S. Facility funds. (See exhibit A) 3) Debt Service Funds, which is used to account for the payment of general obligation bond principal and interest from the City's debt tax levy and special assessment bond principal and interest from special assessment levies. 4) Capital Projects Funds, which are used to account for the acquisition or construction of major capital projects other than those financed by proprietary fund activities. PROPRIETARY FUNDS: Proprietary funds will be self-supporting and user rates or fees will be reviewed annually and adjusted if necessary to ensure adequate funding of operating and capital expenses. 1) Enterprise Funds, which include the City's "business -type" activities. The City budgets for the Liquor, Water, Wastewater, Storm Water, Compost and Refuse funds. 2) Internal Service Funds, which account for the financing of goods or services provided by one department to other departments of the City on a cost reimbursement basis. The City budgets for the Equipment Replacement and Self -Insurance funds. BASIS OF ACCOUNTING AND OF BUDGETING: The City accounts and budgets for all Governmental Funds using the modified accrual basis of accounting. This basis means that revenue is realized in the accounting period in which it becomes available and measurable, while the expenditures are recognized in the accounting period in which they are incurred. Exceptions to the modified accrual basis include: • Grants, which are considered revenue when awarded, not received; and • Principal and interest on long-term debt, which are recognized when paid. - 13 - The City's Proprietary Funds are accounted and budgeted using the full -accrual basis of accounting. Under this method, revenues are realized when they are earned and measurable, while expenses are recognized when they are incurred regardless of timing or related cash flows. The basis for preparing the budget is the same as the basis for accounting except for principal payments on long-term debt and capital outlay expense, which are treated as budgeted expenses. BALANCED BUDGET: The City Administrator shall submit a balanced General fund budget that provides for all current expenditures with current revenues, matching ongoing operating expenses with the appropriate source of ongoing revenues, except in emergency situations or in the event of unforeseen needs. The City will avoid budgetary procedures that balance current expenditures at the expense of meeting future years' budgets. Any inclusion of previous years' excess fund balance in the adopted budget will be intended for one- time or non-recurring expenses or projects. The impact on the operating budget from any new programs or activities being proposed should be minimized by providing funding with newly created revenues wherever possible. BUDGETARY CONTROLS: The City Administrator will ensure that a budgetary control system is in place to adhere to the adopted budget and will provide monthly reports comparing actual revenues and expenditures to the budgeted amounts. The legal level of budgetary control is at the department level within a fund. 1) Departments shall not exceed the budget within the four main expense categories without City Administrator approval. Specific expense items within a category may be over budget as long as the category in total does not exceed the budget. The main expense categories are as follows.. a. Wages & Benefits b. Supplies c. Services & Charges d. Miscellaneous 2) Surplus departmental revenue may not be used to justify overspending an expenditure without approval from the City Administrator. 3) The City Administrator is authorized to approve a transfer of funds from one appropriation to another within the budget of any department of the City. Department means any city function organized under the direct control of a single department head. Such approval shall be made by written memorandum setting forth the reasons therefore. 4) No officer or employee of the City shall place any order or make any purchase except for a purpose and to the amount authorized in the budget resolution, or as authorized by the City Administrator. CAPITAL IMPROVEMENT PLAN: The City Administrator will coordinate the development of the Capital Improvement Plan with the development of the operating budget. Costs associated with new capital improvements will be tracked for each project and included in future budget forecasts. PUBLIC HEARING: The City's budgeting process allows for public input at various budget workshops as well as the annual Truth in Taxation hearing. -14- FUND BALANCE Policy Overview: Fund Balance is defined as the difference between assets and liabilities reported in a governmental fund. It is essentially the accumulation of all prior years' net surpluses and/or deficits of revenues over expenditures. The City of Hutchinson (City) understands it has a responsibility to maintain prudent financial practices to ensure stable operations for the benefit of city residents and businesses. Fund balance reserves are an important component in ensuring the overall financial health of a community by giving the City cushion to meet contingency or cash flow timing needs. The office of the State Auditor recommends that at year-end, local governments maintain an unrestricted fund balance in their general fund and special revenue funds of approximately 35 to 50% of fund operating revenues, or no less than five months of operating expenditures. While the bond rating agencies do not have recommended fund balance levels, the agencies look favorably on larger fund balances, which protect against contingencies and cash flow needs. The purpose of this policy is to establish specific guidelines the City will use to classify fund balances into categories based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in these funds can be spent. Classification of Fund Balance: Annual financial statements shall be prepared in accordance with generally accepted accounting principles establishing fund balance at the end of each year into the following categories: 1) Non -spendable a. This category includes amounts that are not in a spendable form (i.e.: prepaid expense or supply inventories). Resources that must be maintained intact pursuant to legal or contractual requirements are also considered non -spendable. 2) Restricted a. Amounts subject to externally enforceable legal restrictions (creditors, grantors, contributors and by law through constitutional provisions or enabling regulations). 3) Unrestricted The total of committed fund balance, assigned fund balance and unassigned fund balance as described below: a. Committed i. Fund balance that can only be used for the specific purposes determined by the City Council. The committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action it employed to commit those amounts. i. The City Council will annually, or as deemed necessary, commit specific revenue sources for specified purposes by resolution. This formal action must occur prior to the end of the reporting period, however, the amount to be subject to the constraint, may be determined in the subsequent period. iii. To remove the constraint on specified use of committed resources, the City Council shall pass a resolution. - 15 - b. Assigned i. Amounts that are constrained by the government's intent to use for specified purposes, but are neither restricted nor committed. Assigned fund balance in the General fund includes amounts that are intended to be used for specific purposes. ii. The City Council has delegated the authority to assign and remove assignments of fund balance amounts for specific purposes to the City Administrator. 4) Unassigned a. Unassigned fund balance represents the residual classification for the General fund. This includes amounts that have not been assigned to other funds and have not been restricted, committed, or assigned to specific purposes within the General fund. The General fund should be the only fund that reports a positive unassigned fund balance amount. Governmental Funds: The City's governmental funds include the following fund types: 1) General Fund a. The City will maintain an unrestricted fund balance in the General fund of an amount not less than 40% of the next year's General fund budgeted expenditures. This will assist in maintaining an adequate level of fund balance to provide for cash flow requirements and contingency needs because major revenues, including property taxes and other government aid are received in the second half of the City's fiscal year. b. Fund balance in excess of 40% but less than 50% of next year's budgeted General fund expenditures shall be designated as Unassigned. c. Fund balance in excess of 50% shall be reviewed by City Council to determine if such excess should be transferred to other funds to be used as a financing source for capital improvements, equipment purchases or other needs as determined by City Council. 2) Special Revenue Funds a. Special Revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. Governmental accounting standards require that substantial inflows of revenues into a special revenue fund be either restricted or committed in order for the fund to be considered a special revenue fund. 3) Debt Service Funds a. Debt Service fund balances are considered restricted. They are resources that are being accumulated for payments of principal and interest maturing in the current and future years. 4) Capital Projects Funds a. Capital Project fund balances are considered either committed or assigned. They are resources that are used to account for the acquisition or construction of capital facilities, infrastructure and equipment, other than those financed by Enterprise funds or the Equipment Replacement fund. b. The majority of these funds should be assigned for the Capital Improvement Plan (CIP) or reserved for a specific project. -16- c. Specific Capital Project funds may temporarily have a negative fund balance due to the timing of federal, state or other funding. d. Future capital projects must be identified and quantified within the City's five-year CIP, which shall be included in the City's annual budget document. e. The City has several capital projects funds, including: Capital Projects fund, Community Improvement fund, Airport Construction fund, and the annual Capital Improvement Construction funds. 1. The Capital Projects fund accounts mainly for capital improvements related to General fund facilities and miscellaneous infrastructure maintenance. The main funding sources are LGA, excess HUC payments and grants. 2. The Community Improvement fund accounts for city enhancement and public arts projects as approved by the City Council. The main funding sources are retired bond funds, grants and donations. Enterprise Funds: 1) It is the goal of each enterprise fund to cover the costs of operations, including depreciation and a transfer to the General fund, to maintain a financially healthy enterprise. The City will maintain cash reserves in the Enterprise funds at a minimum level equal to 25% of the annual operating costs plus one year of debt service payments. a. The Liquor fund shall be exempt from this provision since the majority of profits are transferred to the General fund. 2) The Water, Sewer and Storm Water funds may contribute capital improvement dollars to the annual Capital Improvement Construction fund as a reimbursement for infrastructure placed in service in conjunction with roadway and other improvement projects. Contributions shall not exceed the total cost of the specific infrastructure being capitalized within the enterprise fund. 3) Utility rates will be reviewed annually regarding projected expenses and capital improvements. The City Council will annually establish rates in accordance to operating cost recovery and the projected capital improvements. Order of Fund Balance Spend -Down: 1) When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources, and then unrestricted, as they are needed. 2) When committed, assigned or unassigned resources are available for use, it is the City's policy to use resources in the following order; (1) Committed; (2) Assigned; and (3) Unassigned. 3) A negative residual amount may not be reported for restricted, committed, or assigned fund balances in the General fund. Monitoring and Reporting: The City Council shall review fund balance and cash-flow needs during the budget process in accordance with this policy. Annually, after the audited financial report has been completed, the City Council shall review fund balance results with the City Administrator, Finance Director and the City's independent auditor. -17- CAPITAL IMPROVEMENT PLAN VISIONS AND GOALS Each year, as part of the annual budgeting process, the City of Hutchinson prepares a five-year Capital Improvement Plan (CIP) that includes the following years' capital budget. The CIP identifies projects that will support existing and projected needs in the following areas: transportation, parks & recreation and public safety, etc. It is based upon numerous long range planning documents that are updated regularly as identified by the Facilities Committee, Fleet Committee, Resource Allocation Committee and City staff. The CIP prioritizes the use of limited resources that are available for capital items by identifying which projects will be funded, how they will be paid for and when they will be purchased. It establishes a comprehensive development program that is used to maximize outside revenue sources and effectively plan for the growth and maintenance of the City's infrastructure. POLICIES Criteria identified for inclusion of capital items in the CIP plan are as follows: 1) Capital Item must have a minimum cost of $10,000 2) Project must define the year proposed 3) Funding source should be identified 4) Detail should include annual operating costs or savings for proposed capital item 5) Department priority should be established 6) Must have a useful life of three years or greater The plan encompasses projects using the following priority levels: Priority 1: (Urgent) Projects currently underway or those that are considered essential to the departments of City operations, and should not be delayed beyond the year requested. Failure to fund these projects will seriously jeopardize City's ability to provide service to the residents and/or expose the City to a potential liability and negative legal exposure. Priority 2: (Very Important) Projects that are needed by a department or the City to improve or maintain their operations, and to delay would cause deterioration or further deterioration of their current operation and/or level of service to the residents of the City. These should not be delayed beyond the year requested. Priority 3: (Important) Projects that are needed by a department or the City to improve or maintain their operations, and should be done as soon as funds can reasonably be made available. Priority 4: (Less Important) Projects, which are desirable, but needing further study. Priority 5: (Future Consideration) Projects, which sometime in the future will need to be funded to maintain operations, safety or infrastructure desired within the community. - is- CIP PROCESS 1) Finance distributes CIP forms and the prior year's data to departments for updating. 2) Departments add, remove and reprioritize CIP data from the prior year's report. 3) Finance updates the CIP database with recommendations made by the department directors and the Fleet, Facility and Resource Allocation committees. 4) Initial draft is reviewed with City Administrator and Department directors, corrections or adjustments are made. 5) Preliminary CIP plan is submitted to City council by August 1St 6) Final CIP plan is reviewed and adopted by City council by year-end. PROCESS CALENDAR April/May - Departments work on updating the CIP. Any new capital items should be requested at this time. The Facilities, Fleet and Resource Allocation Committees begin meeting to review and prioritize potential improvement projects submitted by Departments. June/July - Departments return updated CIP items. The Facilities and Fleet Committees submit a recommended five-year plan to the City Administrator. An initial CIP draft is reviewed with Department directors and corrections or adjustments are made. Current year CIP items are incorporated into the early stages of the budgeting process during this time frame. August 1st - Per Section 7.05 of the Hutchinson City Charter, the City Administrator shall submit to the council a recommended CIP Plan no later than August 1St of each year. October/November - Departments and Finance make final adjustments to the preliminary CIP December 31st - Final CIP is adopted by City council prior to year-end. CAPITAL PROJECT APPROVAL The CIP is a planning document comprised of potential capital improvement projects known at a certain point in time. Projects are not approved simply by being included in the CIP as funding sources or City priorities may have changed. All capital projects are subject to the City's purchasing policy, requiring quotes/bids and approvals commensurate to the total cost. -19- DEBT MANAGEMENT PLAN The Finance Department of the City of Hutchinson has developed this Debt Management Policy to provide guidelines for the issuance of bonds and other forms of indebtedness to finance necessary land acquisitions, capital construction, equipment and other capital items for the City. While the issuance of debt is frequently an appropriate method of financing capital projects and major equipment acquisitions, such issuance must be carefully monitored to preserve the City's credit strength and to provide the necessary flexibility to fund future capital needs. The City will strive to maintain a "pay -go" capital funding policy, supporting capital spending without the use of debt whenever feasible. The City will attempt to pay cash for capital projects that can be anticipated and planned in advance. Financing capital projects with debt in certain circumstances may be the most cost-effective means available to the City. City staff will analyze each potential capital improvement and make a recommendation to City Council to either use cash reserves or issue debt. The City's 5 -year Capital Improvement Plan will be a valuable planning tool for the financing of future improvement needs. The goal of the City's Debt Management Policy is to ensure a stabilized overall debt burden and future tax levy requirement in addition to ensuring that issued debt can be repaid without weakening the City's financial condition. Adequate resources must be provided for the repayment of debt, and the level of debt incurred by the City must be effectively controlled to amounts that are manageable and within levels that will maintain or enhance the City's credit rating. With the adoption of this policy, the special property tax debt levy will not exceed the levy limit of $2,600,000. See Exhibit B for the estimated future debt tax levies per this plan. Purpose of Financing The City borrows money primarily to fund long-term capital improvement projects, essential equipment and vehicle needs and to refinance existing debt. The city will not issue long-term debt to finance current operations or to finance projects where the debt maturity exceeds the useful life of the improvement or asset. Debt will be used to finance eligible projects only if it is the most cost-effective means available to the City. The four primary borrowing purposes are summarized below: 1. Long -Term Capital Improvements The City typically issues general obligation bonds to finance improvements to roadways, infrastructure and city facilities. General obligation bonds generally achieve lower rates of interest than other financing options since they are considered a lower risk. Debt issued for this purpose generally will be for a term of at least 15 years. Inter -fund borrowing is another form of long-term financing available to the City and will be permitted only in those circumstances in which all of the following conditions are met: a) The remaining fund reserve in the lending fund is adequate to meet cash flow needs. b) A repayment schedule will be prepared detailing the annual principal and interest payments due to the lending fund. c) The repayment schedule will not exceed 15 years or the useful life of the improvement. -20- d) The City Council approves the inter -fund loan and repayment plan via city resolution. 2. Essential Vehicle and Equipment Certain specialized vehicles and equipment may require the issuance of short-term debt. City staff will analyze cash reserves, other funding sources and short-term debt for each potential purchase. Assets potentially financed with short-term debt include fire trucks, jet -vac trucks, snowplow trucks, wheel loaders and any other specialized equipment as recommended by City staff. Debt issued for this purpose generally will be for a term of 5 to 10 years. 3. Refinancing/Refunding of Existing Debt The Finance Director shall periodically review the City's existing debt and recommend refinancing or early refunding when economically beneficial. 4. Other Allowable The Finance Director is allowed to pursue other allowable borrowing mechanism as allowed by Minnesota State Statutes (Section 475, etc.) and approved by the City Council. Special Property Tax Debt Levy The City annually issues General Obligation Special Assessment bonds in accordance with Minnesota Statutes 429 and 475. The annual debt service payments are funded by the city's special property tax debt levy ("debt levy') and by special assessments paid by property owners. It is the intent of the City to best manage the debt levy by using the following guidelines to finance annual roadway and infrastructure improvements. A. The project costs financed by G.O. Special Assessment Improvement bonds will consist of two components accounted for in the Debt Service fund: Project costs not financed by special assessments. i. The debt associated with this component is repaid by the City's debt levy. ii. The City will manage this component with an average annual debt limit of $1,900,000. iii. The annual debt limit may be increased up or down by city council to account for changing interest rates and other economic factors. iv. The City will manage all debt issuances and forecast future issuances to reach a debt levy of $2,600,000. Based on current assumptions and interest rates, this is projected to occur for property taxes levied in 2030 for 2031 collection. 2. Private property owner special assessments of at least 20% of the total project costs financed by the G.O. bonds. i. The debt associated with this component is repaid by private property owners over a 10 -year period. The annual installments shall be on a straight-line basis with simple interest equal to the true interest rate on the debt issuance plus 1 %. The City's debt levy generally is not impacted by special assessments unless significant assessments are delinquent or deferred indefinitely. ii. Certain improvement projects may result in a substantial assessment to a specific large commercial property with the property owner agreeing to prepay the entire assessment in the year of improvement. In this instance, the prepaid assessment may be eliminated from the debt issuance and used as a funding source in the Improvement Construction fund. B. Future debt issuances will mature after 15 years. In the case of an exception to this guideline, the debt maturity shall always be shorter than the life of the financed improvement or asset. C. Debt service will be structured such that the debt levy will be stable over the 15 -year debt term. This will prevent large fluctuations in the debt levy on a year-to-year basis. D. Any bond premium received will be used to reduce the par value, ultimately resulting in lower debt. City staff will review each year for any circumstances that may necessitate a different treatment of the bond premium. E. Debt issuances will be in an amount to finance the estimated project costs and professional fees plus a reasonable construction contingency. The costs to issue debt will also be included in the total amount financed. F. Net general obligation debt will not exceed the statutory limit of 3% of the estimated market value of taxable property in the City as required by Minnesota Statute, Section 475.53. G. Retired debt service funds will be closed into the City's Community Improvement fund. This fund will be the primary funding source for any potential debt service shortfalls. H. City staff will periodically review the annual debt limit and may make recommendations to City Council to increase the debt limit to address rising construction costs, interest rates or other unforeseen factors. I. Future financing may need flexibility in structuring its debt. This policy shall not prevent the City from deviating from this policy as long as the City adheres to the overall intent of this policy. Prior Property Tax Levy Debt Policy City Council approved resolution 13445 on July 8, 2008, setting guidelines to manage the special property tax debt levy and the issuance of future debt. The Debt Management Policy above supersedes the 2008 policy and shall be used as the guideline for all existing and future debt. -22- PURCHASING POLICY Policy Overview It is the intent of the City of Hutchinson to purchase, in the most efficient and effective manner possible, those goods and services necessary to conduct City operations. To accomplish this, a formal set of purchasing procedures has been adopted. This policy recognizes and retains that the ultimate purchasing authority is that of the City Administrator. This policy delegates purchasing authority as outlined below. Public Purpose The City Council recognizes that public funds may only be spent if the expenditure meets a public purpose and the expenditure relates to the governmental purpose for which the City of Hutchinson was created. The meaning of "public purpose" is constantly evolving. The Minnesota Supreme Court has followed a broad approach and has generally concluded that "public purpose" means all activity that meets all of the following standards: • The activity will benefit the community as a body. • The activity directly relates to the function of government. • The activity does not have, as its primary objective, the benefit of a private interest. Purchasing Agent The City Administrator shall be the chief purchasing agent of the City. The City Administrator is responsible for the citywide purchasing function and shall have the authority to delegate powers to the City Department Directors and Supervisors for purchasing items within their respective budgets. Purchasing Purchasing and budgetary control is the responsibility of the department Director. Departments shall strive to obtain the best possible prices and value, and are encouraged to buy locally whenever possible or practical. Each department shall have on file with the Finance department a list of employees authorized to obligate appropriations of that department. Authorized employees shall be regular full-time or regular part-time employees of the City. Individual exceptions may be considered by the City Administrator, Finance Director and Department Director. In no case shall an employee make a purchase for personal use utilizing his/her city purchasing authority. Violation of this policy may result in an employee's purchasing authority being revoked. 1) Purchasing Limits: $ 0 to $ 4,999 Department Director approval, or approved designee $ 5,000 to $ 24,999 Finance Director or City Administrator approval required $ 25,000 to $ 49,999 Finance Director and City Administrator approval required $ 50,000 to $ 99,999 Finance, City Administrator & City Council approval required $100,000+ Competitive Bidding required (certain exceptions) 2) Written Quotes: a. Purchases estimated to cost less than $5,000 may be made without seeking more than one quote, however more than one quote is encouraged. b. Purchases estimated to cost more than $5,000 but less than $100,000 must have at least two written quotes. Verbal quotes should not be accepted. The City will maintain -23- documentation for a period of at least one year of its efforts to obtain at least two written quotes as required by state statute 471.345. c. The City will require competitive bidding on the sale, purchase or rental of supplies, materials or equipment and on contracts for the construction, alteration, repair or maintenance of real or personal property estimated to exceed $100,000. 3) Competitive Bidding Competitive bidding is required for certain contracts estimated to exceed $100,000. The competitive bidding process may not be avoided by splitting a contract into several smaller contracts, each of which is under the competitive bidding threshold. 4) State Pricing & Cooperative Purchasing Contracts or purchases estimated to exceed $25,000 must consider the availability, price and quantity of supplies, materials, or equipment available through the State's Cooperative Purchasing Venture (CPV) before buying through another source. The City may also purchase through a national municipal association's purchasing alliance or cooperative. The alliance or cooperative must have been created by a joint powers agreement and must purchase items from more than one source based on a competitive bidding process or competitive quotations. The City currently is a member of the State's CPV and a national joint powers alliance called NJPA. Contact the Finance Director with questions on accessing pricing for these agencies. 5) Purchase Orders An approved purchase order is required for all purchases estimated to exceed $5,000. Departments may not place an order without a prior approved purchase order. a Departmental Responsibility i. Obtaining at least two written quotes ii. Preparing and forwarding a purchase requisition to the Finance Director for review • Attach the written quote documentation • Provide a reasonable explanation of the requested purchase • Include the proper departmental expense coding • Obtain the department director's approval iii. Forwarding a copy of the approved purchase order to the vendor, if required. b Finance Department Responsibility i. The Finance Director will review each purchase requisition in a timely manner. ii. An approved purchase order, or an explanation in the case of a denied requisition, will be provided to the originating department generally within 2-3 business days. iii. The finance department will maintain scanned images of all approved purchase orders and corresponding written quotations for compliance with state statute iv. Finance Director and City Administrator approvals are required prior to seeking City Council approval on purchases over $50,000. c Purchases not requiring a Purchase Order i. Annual Service Contracts —The City shall evaluate the performance of service contracts at least every three years and determine if the City will renew the agreement or seek written proposals from service providers. -24- ii. Professional Services - Contracts with a total cost of $5,000 to $50,000 to provide professional services shall be approved by the City Administrator. Contracts with a total cost over $50,000 shall be approved by City Council. A purchase order is not required if a contract is executed. iii. Inventory Purchases - Purchases for inventory assets of certain operations shall not require a purchase order as doing so would delay purchases and potentially hinder operations. This shall apply to the Liquor store, Creekside's bagging production process, Water and Sewer chemical purchases and HATS fuel purchases. The department directors shall be responsible for ensuring that the City is receiving favorable pricing. iv. Emergency Purchases - Purchases required by emergencies which impair the City's ability to deliver services shall be outside the scope of this policy. In these rare instances, a purchase order is not required, however the departmental director shall submit a brief written explanation of the emergency situation and attach to the invoice presented for payment. Disbursement Methods The following disbursement methods are available for departmental approved purchases: 1) City Check — This is the standard disbursement process described in the next section. 2) Departmental Procurement Card — Covered under separate policy; "Procurement Card Policy". 3) Vendor In -House Charge Accounts — The City currently utilizes charge accounts with various vendors in the City. The Finance department will maintain a list of departmental employees authorized to make purchases and will submit updated lists to the vendors at least annually. Authorized purchasers shall be regular full-time or regular part-time employees. 4) Vendor Charge Cards — The City currently utilizes vendor charge cards for a limited number of vendors. Departments will control access to these cards to prevent unauthorized use and will notify the Finance Director immediately of lost/stolen cards or fraudulent activity. 5) Petty Cash — Departmental petty cash funds may be utilized for small purchases. The department shall maintain detailed receipts for each purchase and periodically submit to the Finance department for replenishment. Receipts shall be properly coded and contain an adequate explanation of the expense along with departmental approval. Disbursement Process Departments will submit properly coded and director approved invoices to the Accounts Payable Specialist by 12:00pm on Monday, one week prior to each City Council meeting. In the case of a Monday holiday, the deadline shall be 12.00pm on the prior Friday. Invoices submitted after the deadline may be delayed to the next council check run. Checks will be distributed on the Wednesday after each City Council meeting. 1) Invoices — Content and Approvals a. Payments will only be made from original mailed or emailed invoices. i. Payments will not be made from faxes, photocopies, vendor statements or quotes/estimates. b. The City of Hutchinson shall be named on the invoice as the purchaser. i. Invoices naming another entity as the purchaser will not be processed for payment. The vendor should be contacted to correct the invoice. c. The invoice date shall accurately reflect the actual date of service or purchase. d. The invoice is sent directly from the vendor to the City's Accounts Payable Specialist at City Center. -25- i. The A/P Specialist will stamp each invoice with a received date and route to the appropriate department for approvals. e. A reasonable description of the purchase or service, shall be included on the invoice. f. The departmental expense code and director/supervisor approval shall be evidenced directly on the invoice and not on a separate paper or post -it note. g. Departments are responsible for ensuring that the merchandise is received or the services are performed prior to submitting an invoice for payment. i. The City generally does not provide down payments for merchandise or services. Progress payments may be made to vendors based upon a reasonable percentage of completion for the service or project. ii. Departments shall work directly with the vendor to correct any issues regarding incorrect or defective merchandise or service. Prompt Payment of City Bills Minnesota Statute 471.425 requires cities to pay each vendor obligation according to the terms of the contract. If no contract terms apply, payment must be made within the standard payment period of 35 days from the date of receipt. 1) Date of receipt is defined as the later of: a. The completed delivery of the goods or services, or the satisfactory installation, assembly or specified portion thereof; or b. The receipt of the invoice for the delivery of goods or services. 2) Invoice Errors a. The City must notify a vendor within 10 days of the date of receipt if the invoice is incorrect. The 35 -day standard period begins when a corrected invoice is received. 3) Payment of Interest a. The City must calculate and pay interest if an invoice is not paid according to the terms of the contract, or if no contract terms apply, within the standard period of 35 days. i. Interest rate shall be 1.5% per month or part of month. ii. The minimum monthly interest penalty that the City shall calculate and pay a vendor for the unpaid balance of any one overdue bill of $100 or more is $10. iii. For an unpaid balance of less than $100, the City shall calculate and pay the actual interest penalty due to the vendor. 4) Prompt payment to Subcontractors a. Each contract of the City must require the prime contractor to pay any subcontractor within 10 days of the prime contractor's receipt of payment from the City for undisputed services provided by the subcontractor. b. The City's contract must require the prime contractor to pay interest of 1.5% per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. i. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. ii. For an unpaid balance of less than $100, the prime contractor shall calculate and pay the actual interest penalty due to the subcontractor. Prior Policy The policy above supersedes the prior city policy #1.11. -26- PROCUREMENT CARD POLICY POLICY: The purpose of this policy is to provide detailed information regarding the use of procurement cards authorized by the Hutchinson City Council and assigned by the City Administrator to selected department directors to purchase goods and services for the City. The use of the procurement card is an alternate means of payment and is not meant to replace the standard purchasing order system of the city. The use of procurement cards should only take place when the normal purchasing order system cannot be used and/or the use of a credit card is the only purchasing mechanism allowed. STATUE AUTHORITY: Minnesota Statute 471.382 Credit Cards. "A city council may authorize the use of a credit card by any city officer or employee otherwise authorized to make a purchase on behalf of the city. If a city officer or employee makes or directs a purchase by credit card that is not approved by the city council, the officer or employee is personally liable for the purchase. A purchase by credit card must otherwise comply with all statutes, rules, or city policy applicable to city purchases." POLICY ADMINISTRATION: The City Administrator shall determine the appropriate department directors to be issued City procurement cards. The Finance Director, with the oversight of the City Administrator, is hereby designated the responsibility of procurement card issuance, accounting, monitoring of use, retrieval, payment of all charges, maintenance of a list of authorized users and cards assigned to them and general compliance with the City's Procurement Card Policy. MAXIMUM LIMITS: The monthly maximum card limit per director will be established by the City Administrator and Finance Director based on the anticipated need. DOCUMENTATION: Invoices or receipts are required to support all procurement card purchases since the monthly billing statements lack sufficient detail to comply with Minnesota Statutes. For purchases in which a receipt is not normally available, a copy of the completed application or order form should be used as a receipt (for example, conference registration forms). CARDHOLDER RESPONSIBILITIES: 1) The Department Director is responsible for the authorized use of the City issued procurement card and for any purchases made on it. 2) Ensure that the procurement card is used in compliance with the City's Purchasing Policy. a. Purchases must be budgeted. b. Use of the procurement card for personal purchases is strictly prohibited. If the procurement card is inadvertently used for a personal purchase, contact the Finance Director/City Administrator immediately. Not reporting inadvertent personal purchases will result in immediate revocation of the procurement card and the cardholder may be subject to disciplinary and/or legal actions. The cardholder will be personally responsible for reimbursing the City for any inadvertent personal purchases. 3) The procurement card may only be used for the purchase of goods or services for official City business. -27- a. The procurement card may not be used for cash advances or any other type of purchase not permitted under the City's Purchasing Policy. No cardholder shall be allowed to make any purchases for personal use through the City. Use of card for personal use or inappropriate purchases as deemed by the City Administrator may result in discipline, including reimbursement of the purchase to the City. Two or more inappropriate purchases may be cause for revocation of the credit/procurement card. b. Purchase of motor fuels is prohibited, with the exception of extended travel with a city owned vehicle. Fuel for personal vehicles used for official city business is reimbursed to the employee based on the IRS mileage reimbursement through the Employee Expense Reimbursement process covered under separate policy. c. Cardholders shall verify with the Finance Department and notify vendors if the transaction is exempt from Minnesota sales tax. All transactions should be exempt from all local sales tax. 4) Authorized cardholders are responsible for the secure custody of the procurement card and protection against theft, misuse and fraud. a. Notify the Finance Director immediately if the procurement card is lost or stolen and when fraudulent activity is suspected. b. When fraudulent activity is suspected, immediately contact the procurement card company at the phone number listed on the back of the card. The procurement card must not be used again until the situation is resolved. A new procurement card will be issued if the activity was in fact fraudulent. c. To prevent fraudulent activity, the cardholder shall not make transactions over unsecured websites. Giving out procurement card information over the telephone is not recommended and should only be done in rare instances where the order cannot be completed in any other manner. 5) Monthly review, approval and reporting of transactions: a. At the end of each month, department directors shall have 10 days to review and approve the prior month purchases via the Wells Fargo online portal. i. Each transaction shall be evidenced by a detailed receipt or order confirmation. ii. Directors shall code each purchase to the correct departmental expense account and provide an adequate description of the expense within the online portal. iii. Directors shall print from the online portal a listing of all purchases made during the month and submit to the Finance department along with all detailed receipts supporting the purchases. Finance shall receive this information by the 11th day of the month, or next business day if the 11th falls on a weekend. b. The Finance department will review all transactions and provide the final approval to Wells Fargo to deduct from the City's bank account the total payment amount to cover all authorized purchases. 6) Returns or Disputed Transactions: a. It is the cardholder's initial responsibility to work directly with the merchant to receive proper credit on returned merchandise or disputed transactions. b. Finance Department will be available to assist cardholders with returns or disputed transactions if initial contact by the cardholder is unsuccessful. 7) The cardholder must immediately surrender the procurement card to the Finance Director upon retirement or termination of employment. All receipts for current purchases shall be coded and submitted to the Finance Director when the credit card is surrendered. 8) Any exceptions to this policy must be approved in advance by the City Administrator. SUSPENSION OR REVOCATION OF CARDS: If any of the following occur, immediate suspension and/or revocation of the procurement card privileges may result, including discipline, as determined by the City Administrator: 1) Use of the card for personal purchases or cash advances. 2) Unauthorized use of card. 3) Failure to notify the procurement card company and Finance Director of a lost or stolen card, and fraudulent activity. 4) Repeated failure to submit in a timely manner the monthly billing statement with proper receipts/support for payment. 5) Repeated failure in which the attached receipts do not match the item description or dollar amounts listed on the monthly billing statement with no explanation. -29- Applicant: City of Hutchinson Request for Procurement Card Department: Requested Monthly Card Limit: $2,000 $5,000 $10,000 Other: $ By requesting a City procurement card, I acknowledge the following: 1. The procurement card is to be used only to make purchases in compliance with Minnesota Statutes and the City's Purchasing Policy. 2. The card must be used in accordance with the City's Procurement Card Policy. 3. Violation of the Procurement Card Policy may result in suspension or revocation of use privileges. Employees found to have inappropriately used the procurement card will be subject to discipline, including potentially the requirement to reimburse the City for all costs associated with such improper use. Director Signature: Authorization Information Approved Monthly Card Limit: $ City Administrator Approval: Finance Director Approval: Date: Date: Date: This fully approved request gives the Finance Director authorization to issue a City of Hutchinson procurement card in the name of the applicant with a monthly card limit as approved by the City Administrator. -30- City of Hutchinson Acknowledgement of Receipt of Procurement Card I acknowledge that on the date indicated below, I received my City of Hutchinson Procurement Card. I have previously received a copy of the Procurement Card Policy explaining the use and responsibilities of the procurement card. I understand that: 1) The procurement card is a cost-effective method for the purchase and payment of small dollar material transactions and is limited to $ per month. 2) The procurement card is to be used solely for City business purchases; not personal purchases. 3) 1 am responsible for reconciling monthly statements and maintaining accurate accounting records. 4) 1 must attach the itemized receipt with my statement each month. 5) Should my employment with the City of Hutchinson terminate, I am responsible for returning the procurement card to the City Administrator or Finance Director, along with all receipts for purchases within the current billing cycle. If the procurement card is used for personal purchases, for unauthorized items, or used by someone not authorized to do so, I hereby agree to personally pay the City for such purchases and hereby authorize the City, if necessary, to withhold from my paycheck any amount necessary to pay these charges. This acknowledgement will be kept in my personnel file and I may be subject to discipline or termination from employment for violation of this policy. Procurement Card #: Unique #: (used to activate card and ID purposes with Wells Fargo customer service) Employee Name: (please print) Employee Signature: Date: Wells Fargo Customer Service: 1-800-932-0036 -31- TRAVEL & MEAL EXPENSE REIMBURSEMENT POLICY Policy Overview This policy recognizes the fact that certain travel for official city business may require employees or elected officials to incur expenses subject to reimbursement by the City. Reasonable travel costs for out of town business meetings, conferences and training seminars may qualify for reimbursement as provided by this policy. To be reimbursed by public funds, expenditures must meet a "public purpose", defined by Minnesota Supreme Court as meeting all of the following: ➢ The activity will benefit the community as a body. ➢ The activity directly relates to the function of government. ➢ The activity does not have, as its primary objective, the benefit of a private interest. This policy is intended to provide guidelines regarding which travel related expenditures are for public purpose and authorized in accordance with the City's annual budget. The City Administrator and Finance Director shall review all employee expense reimbursement requests and will determine if an expense does not meet a public purpose and is not subject to City reimbursement. Travel Approval Each department director is responsible for ensuring that employee travel is for City business and is consistent with City policy. Department Directors are responsible for approving all travel requests within his/her respective departments and will ensure that departmental budget dollars are sufficient to cover requested travel prior to approving. Requests for travel by Directors shall have prior approval by the City Administrator. The following approvals are needed prior to employee travel: 1) Same Day & Overnight Travel - Department Director approval is required. 2) Out of State - All out-of-state travel exceeding a 300 -mile radius from Hutchinson must be approved within the annual budget process and approved separately by City Council. The frequency of this out-of-state travel shall not exceed once every other year. In the event an additional conference or seminar presents itself, the council may use its discretion in considering the request. 3) Out of State - All out-of-state travel within a 300 -mile radius of Hutchinson shall be approved by the City Administrator and does not require City Council approval. Reimbursable Expenses 1) Transportation Several means of transportation exist and each travel request shall consider the least -cost method. For the majority of travel requests, a City vehicle provides the least -cost to the City and shall be considered before any other means. Vehicles from other departments may be available and shall be a consideration. a) City Vehicle — All direct expenses incurred will be reimbursed, including fuel, oil and maintenance/repair expenses. Only City employees are authorized and insured to drive a city owned vehicle. b) Personal Vehicle — When a city vehicle is not available, a personal vehicle may be authorized for use. City reimbursement for the use of a personal vehicle is based on the current IRS approved mileage rate using the shortest route. If the travel originates from home, the mileage reported for reimbursement should be from the home or the employee's normal City work facility, whichever is less. An employee's normal commute mileage will not be reimbursed. -32- c) Airplane/Other — travel by any means other than by vehicle shall be approved by the City Administrator. d) Other related costs — Reasonable parking fees, car rental and fares for rail, bus, taxis and shuttles are all subject to reimbursement if related to City business. Taxis and shuttles reimbursement may include a maximum gratuity of 20%. Gratuities in excess of 20% will not be reimbursed by the City. A standard model sedan shall be used when renting a car unless unusual circumstances dictate otherwise. 2) Lodging The City will reimburse the reasonable cost of lodging for training, seminars or conventions of two or more days if the event site is outside a 50 -mile radius of Hutchinson. All employees shall ask for a standard room. In the event that a standard room is not available, other lodging establishments shall be contacted prior to booking a non-standard room. A non-standard room is reimbursable if it is at a contract rate through the event, offered at the same rate as a standard room or if no other options are available within a reasonable distance from the event. An increase in lodging rate due to family members staying is not reimbursable. The employee will be reimbursed only for a standard room. Entertainment expenses incurred will not be reimbursed, such as in -room movies, mini -bar and optional entertainment -type events provided at conferences. 3) Meals The City will reimburse the cost of job-related meals only if an employee's travel requires an overnight stay or if a business meeting is held during typical meal hours. The following limits are in place for each meal: Breakfast: $15 — Travel begins before 6:OOam and extends beyond 9:OOam Lunch: $20 — Travel begins before 11:00am and extends beyond 2:OOpm Dinner: $30 — Travel begins before 4:OOpm and extends beyond 7:OOpm a) Meetings scheduled and held during typical meal hours do not automatically necessitate that a meal will be provided at City expense. Per IRS regulations, a meal must have a clear business purpose in order to be reimbursed. b) The maximum amounts listed above apply to the meal, non-alcoholic beverage, sales tax and gratuity. c) Gratuities paid by the employee over 20% will not be reimbursed. d) The above dollar amounts cannot be combined in any fashion in order to reimburse an employee for a meal costing more than the maximum amount listed per specific meal. For example, an employee cannot use the breakfast and lunch amounts to justify reimbursement of a $60 dinner. e) Employees are expected to take advantage of meals provided by the conference or seminar. The City will not reimburse an employee for a purchased meal when a meal was provided by the event. f) If more than one employee is present at a job-related meal, one employee may pay for the entire meal cost of all employees. The reimbursement request shall clearly identify each employee present for the meal. g) If non -city personnel are present at a job-related meal, the city may reimburse the paying employee for the cost of the meal(s) of the individual(s) if an itemized receipt and a form indicating who attended, where the meal was held and the city -related purpose for the meal is submitted and approved by the Department Director and City -33 - Administrator. Reimbursement of a non -employee's meal is subject to the same dollar limit as the employee. h) When family members are present, a separate detailed receipt for the employee's meal shall be requested. i) The daily meal limits may be adjusted for out-of-state travel by the Finance Director based on current IRS per diem guidelines. 4) Registration or Membership Cost The City will reimburse the costs for registration, training and membership incurred to attend conferences, seminars or training sessions. A check request shall be submitted to the City's accounts payable department prior to the event as the primary option for payment of this type of cost. The request shall include the necessary documentation evidencing the amount payable and provide sufficient time to process a check prior to any payment due date. A departmental purchasing card may also be used for payment based upon receipt of all necessary travel approvals prior to making payment. Departments shall strive to utilize any early registration discounts. 5) Non -Reimbursable Costs a. Alcoholic beverages — whether consumed by an employee or a non-employee b. Gratuities exceeding 20%. An employee will be required to reimburse the City for gratuities in excess of 20% if a department purchasing card was used. c. Snacks and other food/beverages outside of the daily meal reimbursements d. Meals or events for spouses or family members traveling with an employee e. Meals when an event provides for a meal f. Private automobile expenses, including gas, oil, repairs g. Traffic citations or fines h. Travel between an employee's home and work facility i. Entertainment expenses j. In -room movies, mini -bar or other hotel services not required for City business k. Optional entertainment events unless included as part of the overall conference registration fee (e.g. optional golf rounds, sporting events, concerts) I. Personal losses incurred while on City business m. Other costs that do not meet the public purpose definition as determined by the City Administrator and Finance Director Employee Expense Reimbursement Form The Finance Department shall annually provide an updated Employee Expense Reimbursement Form (Exhibit B) to all employees. This form shall be used for all reimbursement requests related to approved travel or work-related expenses paid by an employee . 1) Detailed Receipts — each item submitted for City reimbursement must be supported by an itemized receipt indicating a reasonable explanation for the expense. All receipts shall be attached to each reimbursement request. a. Meals will be reimbursed based on a detailed itemized receipt. When a credit card is used to purchase the meal, both an itemized receipt and a credit card charge slip indicating the tip amount shall be submitted. b. Receipts for parking and taxis may not be available and may be submitted for reimbursement without a receipt. c. Mileage reimbursement for the use of a personal vehicle shall detail not only the mileage but also the location traveled and the business reason for travel. d. Proper departmental expense codes shall be used for each line item. -34- e. Unsupported expenses will not be reimbursed. If an employee is unable to get a detailed receipt or the receipt is lost, a signed statement by the employee detailing the purchased item, the business reason for the expense and certifying that the claim is accurate must be submitted and approved by the Department Director. A copy of the employee's credit card statement may also be provided to help support the dollar amount being reimbursed. 2) Employees shall submit an employee expense reimbursement form with all necessary supporting documentation to the appropriate Department Director for review and approval. 3) A Director approved employee expense reimbursement form shall be forwarded to the Accounts Payable Clerk who will route to the Finance Director and City Administrator for approval prior to payment. Any issues will be communicated back to the employee for correction/clarification. 4) The Finance department will make necessary corrections to reimbursement requests for mathematical errors, gratuities in excess of 20%, to remove any alcoholic beverages and other changes that may be necessary to comply with this policy. 5) Reimbursement will be made with the next City Council check register. 6) Employees shall submit an expense reimbursement claim no later than 60 days from the date the expense was paid or incurred. If employee expenses are submitted for reimbursement more than 60 days after the expense is incurred, the reimbursement may be taxable and appropriate withholdings would need to be made through the payroll system. Cash Advances An employee may request a cash advance prior to an overnight business trip. The cash advance shall be used only for expenditures related to official City business as specified within this policy. An employee expense reimbursement form shall be completed upon the employee's return, detailing the expenses subject to reimbursement, less the cash amount advanced. Expenses paid by the employee above and beyond the cash advance amount will be subject to employee reimbursement per this policy. Any portion of the cash advance that was not expended for a City related purpose must be reimbursed to the City within 60 days. The employee shall be responsible for any cash advance that is lost or stolen. In such instances, the employee must reimburse the City within 60 days. City Representation Employees shall be aware at all times that they are representing the City of Hutchinson while traveling out-of-town for official City business. Employees given the opportunity to be away from their regular work and having their expenses paid are expected to perform in a similar manner as if they were still at work. Conduct improper for a city employee will be treated as if it occurred during regular working hours. At no times shall alcoholic beverages be consumed by any person(s) driving or riding in a City of Hutchinson vehicle. Prior Policy The policy above supersedes the prior city policies #3.22 and #3.23. -35 - FISCAL AGENT POLICY Purpose This policy defines the parameters necessary for the City of Hutchinson (City) to act as the fiscal agent for a non -501(c)(3) organization (Other Entity) in order to secure grants or donations on behalf of the Other Entity. City Authority All requests for the City to serve as fiscal agent shall be approved by the City Administrator. The City Finance Director shall be made aware of all details related to approved fiscal agent projects for proper accounting of proceeds and expenditures. City Purchasing Policy The City's purchasing policy must be followed in order to comply with the State of Minnesota purchasing and contracting statutes. Vendor quotes shall be received, if required by policy, and the contract shall be awarded to the lowest responsible bidder. Invoices paid by the City must be billed to the City of Hutchinson and not another entity. Public Purpose Expenditures The City expenditure made on behalf of the Other Entity must meet a "public purpose", defined by the Minnesota Supreme Court as meeting all of the following: 1) The activity will benefit the community as a body. 2) The activity directly relates to the function of government. 3) The activity does not have, as its primary objective, the benefit of a private interest. The Minnesota Supreme Court further clarifies that activities that promote the following objectives for the benefit of all the city's residents further a public purpose: • Public Health • Safety • General welfare • Security • Prosperity • Contentment Donations Donations related to a project with the City serving as fiscal agent shall be made directly to the City of Hutchinson. The Hutchinson City Council shall formally accept all donations by resolution prior to those funds being used for the designated purpose. Grants The Other Entity shall be responsible for the preparation of all grant documentation and grant compliance, including reporting requirements. The City shall, upon request from the Other Entity, supply supporting documentation or reports related to transactions incurred within the City's financial system. Other The City shall not expend funds in excess of donations or grant proceeds received without City Council or City Administrator approval. -36- EXHIBIT A List of City Funds Governmental Funds: 1. General Fund 2. Special Revenue Funds a. Rural Fire Department b. H.A.T.S.Operation c. Hutchinson Enterprise Center d. Economic Development Loan Funds e. HRA Loan Fund f. Tax Increment funds g. Public Sites Fund 3. Debt Service Funds a. Special Assessment Bonds Debt Service Funds b. Tax Increment Debt Service Funds 4. Capital Projects Funds a. Capital Projects Fund b. Community Improvement Fund c. Airport Construction Fund d. Special Assessment Capital Improvement Funds e. Municipal State Aid Fund Proprietary Funds: 1. Enterprise Funds: a. Liquor Fund b. Compost Fund c. Refuse Fund d. Water Fund e. Wastewater Fund f. Storm Water Fund g. Hutchinson Utilities Commission 2. Internal Service Funds: a. Equipment Replacement Fund b. Self -Insurance Fund Component Units: 1. Hutchinson Economic Development Authority 2. Hutchinson Housing Redevelopment Authority -37- EXHIBIT B Debt Management Plan -38- HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-ft Agenda Item: Special Assessment Agreement between MnSCU and the City of Hutchinson Department: PW/Eng LICENSE SECTION Meeting Date: 4/24/2018 Application Complete Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: As previously mentioned, please see the attached Special Assessment Agreement between Minnesota State Colleges and Universities (MnSCU) and the City of Hutchinson that is associated with the Century Avenue SE Reconstruction project. As noted within this document, a $64,311.00 project related improvements assessment will be administered against the adjacent benefiting Ridgewater College property. Also, this arrangement has been reviewed by the Resource Allocation Committee and this amount is accounted for within the City's proposed 2018 Infrastructure Improvement Program. BOARD ACTION REQUESTED: Approval of Special Assessment 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: SPECIAL ASSESSMENT AGREEMENT BETWEEN MINNESOTA STATE COLLEGES AND UNIVERSITIES AND CITY OF HUTCHINSON THIS SPECIAL ASSESSMENT AGREEMENT ("Agreement") is effective on the date of the last required signature as shown below ("Effective Date") is by and between the State of Minnesota, acting by and through the Board of Trustees of Minnesota State Colleges and Universities, on behalf of Ridgewater College ("College"), and the City of Hutchinson, Minnesota, a Minnesota municipal corporation ("City"), to memorialize the parties' agreement related to Special Assessments contemplated for the improvement of Century Avenue NE in Hutchinson, Minnesota. RECITALS WHEREAS, in 2017-18, the City notified the college of plans to design and construct utilities and roadway improvements to Century Avenue NE ("Century Avenue Project" or "Project") adjacent to the College's Hutchinson main campus as depicted in Exhibit A (Legal Description), incorporated and referenced here, and, WHEREAS, the Project has a planned total budget of $2,248,000, and WHEREAS, the City has scheduled their first public meeting regarding the Project on December 12, 2017 to consider reconstruction of Century Avenue SE from State Trunk Highway 15 to Jefferson Street SE. The proposed project consists of reconstruction of the existing roadway surface/section, limited utility (water & sanitary sewer) replacements/upgrades, limited drainage/storm sewer improvements, draintile installation, signing/striping, street lighting, sidewalks, trails, traffic signal modifications, landscaping and restoration. A portion of the proposed project is to be funded by previously allocated Federal Aid funding however the remainder of the work will need to be funded by City bonds, utility funds and property improvement special assessments. Initial plans are included in Exhibit B (Construction Plans), incorporated and referenced here, and WHEREAS, the City and College entered into a Settlement and Purchase Agreement dated May 17, 2016, in which the parties intended to improve intergovernmental relations wherein the City agreed to notify and establish a special assessment agreement with the College before initiating future special assessment proceedings pursuant to Minn. Stat. Sec. 429, et. al., and WHEREAS, such Special Assessment Agreement is intended to establish the scope of work, costs, schedule and allow the College to evaluate the benefit to the college of such proposed improvements and affordability of such Project, and WHEREAS, the City is contemplating a special assessment levy against the College in the amount not to exceed $64,311, for the Project, and WHEREAS, consistent with Minn. Stat. §435.19, subd. 2, the College determined the following payment contained in this agreement is consistent with the measure of benefit expected to be received by the College in the long term, and WHEREAS, the proposed construction and improvements to Century Avenue will be a benefit to the College in the long term, and is fairly assessed in consideration of the benefit received pursuant to Minn. Stat. §3.754; and WHEREAS, the College has budgeted for the payment of the Assessment herein pursuant to Minn. Stat. § 435.19, subd. 2; and NOW, THEREFORE, in consideration of the following mutual promises and covenants and other valuable consideration, the receipt and sufficiency of which is expressly acknowledged by each party: 1. INCORPORATION. The above Recitals are a material part of this Agreement and are incorporated herein. 2. SPECIAL ASSESSMENT. a. The College shall pay a net special assessment amount not to exceed sixty four thousand three hundred eleven dollars ($64,311) reflecting an expected levy of $64,311, offset by a $11,050 value (200 LF of roadway frontage) for the water tower easement ("Net Special Assessment Amount") as full satisfaction of its obligation for roadway improvements. The College intends to make the payment in lump sum, with a payment scheduled to be made at the completion of the project. The College's obligation to convey the property to the City and pay the Net Assessment Amount is conditioned upon the following: 1) The City Council authorizing the Project to proceed as required by law, 2) City Council issuing a binding resolution adopting the terms of this agreement, including the amounts due from the College 3) A City resolution committing the City to substantially complete construction of the portion impacting the College on or before November 15, 2018. College's obligation to make payment is expressly conditioned on completing the improvements adjacent to campus by this date. Upon the City's actions described in 1 — 3 above, the College shall provide the City with the payment of the [full, periodic] ("Net Assessment Amount"), which agreed upon amounts due. 3. FUTURE DEVELOPMENT AND ASSESSMENTS. In an effort to improve intergovernmental relations related to special assessments and city roadway improvements impacting the College's property in the future and in acknowledgement of the College's reliance on state funding, the City and College intend to establish Special Assessment Agreements in advance of the City initiating future special assessment proceedings pursuant to Minn. Stat. §429, et. al., that will establish the expected property rights, costs, scope and schedule, meet the objectives of the Minn. Stat. 435.19, Subd. 2, and allow the College an opportunity to evaluate the benefit, budget and plans for any future improvements. The city will forward proposed special assessment agreements to the College at least one year in advance of the starting dates of proposed projects. The failure of the parties to actually enter into a special assessment agreement concerning a respective project shall not limit the city's ability to assess projects under Minnesota statute section 429 nor limit any rights the College may have under Minnesota statute section 435. 4. TAXES AND ASSESSMENTS. To the extent the Property is subject to real estate taxes, including special assessments entirely unrelated to this agreement, payment of such taxes and assessments shall remain the sole responsibility of the College through the date of conveyance. 5. OTHER GENERAL AND SPECIAL WARRANTIES. a. The City warrants that itshall coordinate with the College to limit the impact of the Project on the College's operations. b. The City shall warrant the Work and take or cause its contractor to take immediate action to rectify any deficiencies or problems with the Project improvements. 6. TIME OF ESSENCE. Time is of the essence in this Agreement. 7. BINDING EFFECT. This Agreement is made for the benefit of the parties and shall be binding upon and inure to the benefit of the parties, including their successors, assigns, transferees, principals, officers, directors, agents, servants, insurers, subrogates, and legal representatives. Further, this Agreement is intended to and does run with the Property. 8. ENTIRE AGREEMENT. This Agreement shall constitute the entire agreement between the parties and any prior understandings or representations of any kind preceding the execution of this Agreement shall not be binding upon either party. 9. MODIFICATION. This Agreement may only be amended or modified by written instrument executed by all parties. 10. ACKNOWLEDGEMENT. Each of the parties affirm and acknowledge that it has fully read, appreciates, and understands the words, terms, conditions and provisions of this Agreement and is fully satisfied with the same. Each party affirms and acknowledges that is has been, or had the opportunity to be represented by legal counsel of its choice. 11. AUTHORITY. Each party represents and warrants that they have the power and authority to enter into this Agreement and the College represents and warrants that it has the full authority to bind the Property. Each party further represents and warrants that the person or persons executing this Agreement on its behalf has full and complete legal authority to do so, and thereby binds the party, its successors and assigns on whose behalf they are signing this Agreement. 12. ATTORNEYS' FEES. The College and the City shall each pay their own attorneys' fees in connection with the preparation and negotiation of this Agreement. 13. CONTROLLING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 14. ADDITIONAL DOCUMENTS. The parties agree to cooperate with each other and their representatives regarding any reasonable requests made subsequent to the execution of this Agreement to correct any clerical errors in this Agreement and to provide any and all additional documentation deemed necessary by either party to effectuate the terms and obligations contemplated by this Agreement. 15. SURVIVAL. The terms, conditions and agreements of the parties shall survive the closing and conveyance contemplated herein. 16. RELEASE. Upon College payment of the full Assessment Amount, the City releases the College from any further liability with respect to the Special Assessment for the Project, and waives any right to the payment of penalties with respect to the Special Assessment for the Project. IN WITNESS WHEREOF the undersigned have executed the Agreement as of the date and year first written above. THE CITY OF HUTCHINSON, A Minnesota municipal corporation By: Gary Forcier Its: Mayor Date: 04/24/2018 STATE OF MINNESOTA, by and through the BOARD OF TRUSTEES OF MINNESOTA STATE COLLEGES AND UNIVERSITIES, on behalf of RIDGEWATER COLLEGE By: Its: Date: Exhibit A (Legal Description) AP of Sec 7-116-29 52.25 Ac That Part of Lots 16 & 18 5 Of Century Ave Ext Ex 1 Ac In SW Corner Of Lot 18 & Ex 100' X 200' 52.25 Acres Exhibit B (Construction Plans) N MNDOT // HOSPITAL ENTRANCE o U, 'Il U coNsmucnaN gl� LIMITS W CONCRETE I + g l VALLEY GUTTER T.H. 15 o �• = ml F 34' F -F I+ RAD • • � ---' _ 53— . . •.. „„ O ° 15' RAD _ 15' RAD c, II III II ... �..a.E...aK• ..F.'.�<.�.K.'•:^'p C^":.p:np...:�..�:z....c.. ... .14. .�..�T....r... I I I 0+00 1+00 2+00 3+00 4+OD 5+00 L RAD- - _JI _ I I 31.5' II -- RAD____.c_____.c...._....c...._ F I w..-.4..- I CONSTRUCTION CITY opt Elmin b�^ _ UMITS R/VJ EXISTING �; BITUMINOUS TRAIL R I D G E W A T E R COLLEGE FIW =yl� m 81+ rr �RNDOT I 1 n8t) 1 Oar) 1075 NO. BY DATE REVISIONS I HEREBY CERTIFY THAT THIS PLAN WAS PREPARED BY NE OR R UNDER MY DIRECT SURERMSION AND THAT I AM A DULY LICENSED PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF MINNESOTA SIGNATURE: DATE: 12-12-17 PRINTED NAME: KENTON EXNER LIC. N0. 42907 Pvl 51M1+35.00 PVI EL -1095,41 L_90' CENTURY AVENUE SOUTHEAST S.P. 133-125-002 LETTING NO. 1 / CITY PROJECT 18-01 STREET CONSTRUCTION PLAN AND PROFILE aw D zD 40 � SCALE FEET SHEET 51 OF 102 1075 LF0.08 g EXISTING CL 1070 P.- 1070 iG1 iW PROPOSED CL P PRO". 1065 1065 1060 1060 Y Y ry ¢ n .�e1 �g i3 g iE S g S S 8 o¢ G 9 DRAWN BY: KM DESIGNED BY: KM APPROVED BY: KE NO. BY DATE REVISIONS I HEREBY CERTIFY THAT THIS PLAN WAS PREPARED BY NE OR R UNDER MY DIRECT SURERMSION AND THAT I AM A DULY LICENSED PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF MINNESOTA SIGNATURE: DATE: 12-12-17 PRINTED NAME: KENTON EXNER LIC. N0. 42907 °f CENTURY AVENUE SOUTHEAST S.P. 133-125-002 LETTING NO. 1 / CITY PROJECT 18-01 STREET CONSTRUCTION PLAN AND PROFILE aw D zD 40 � SCALE FEET SHEET 51 OF 102 N o INSTALL LANDSCAPE ROCK -INCIDENTAL CONNECT TO I( C CLIN EXISTING DRAIN DISCHARGE L ,c-OONSTRUCTION DISCH ENTRANCE 66' R/W L 6, r CONCRETE 8" 8°CONCRETE L. 26.5! BAD r CONCRETE ------- VALLEY GUTTER V ;LCONC.RUE.TE GUTTER I L i 0 . 1- 2 --- 11 — _____ -- / ---- L= --- -- ---------- --- -- -------- IV I ev 4 -L -L ------ �__ BAD v o IT RAO 16.6' RAD VALLEY GUTTER ---- - ---- - ------ PR 5+OD 6+ 7+00 8+00 9+00 -4— - - ----- 4----4 4— - 10+00 -4— - PR PR PR > ----- - ----- 15' RAD - • \-EXIS CONSCITY �,4RAD NO EHT-MINGUS TRAIL (D (D (D " 0 UNITSTRUCTION R/W (D (D RIDGEWATER COLLEGE RIDGEWATER COLLEGE Z# HP STA -6+07.87 HP EL -1074.58 1085 FM STA -5+80.00 PM EL -1075,09 1085 L -15W 1080 1080 1075 PROR PROPOSED CL 1075 _\`EXISTING CL — ---------- --m -OOx PRonLE -------- 1070 1070 1065 1065 i 5.00 "00 7.00 "Do 11.00 10.0 IN DRAWN BY: KM NO. BY DATE REVISIONS l HEREBY CERTIFY THAT THIS PLAN WAS PREPARED BY ME OR U UNDER MY DIRECT SURERMSION AND THAT I AM A DULY LICENSED CENTURY AVENUE SOUTHEAST STREET CONSTRUCTION PLAN SHEET DESIGNED BY: KM P Ro ESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF MINNESOTA My AND PROFILE 0 20 40 52 APPROVED BY: KE %a� S.P. 133-125-002 1!1�� SCALE FEET OF SIGNATURE: DATE: 12-12-17 PRINTED NAME KENTON EXNE-R LIC. NO. 42907 LETTING NO. 1 / CITY PROJECT 18-01 02 CLINIC CLINIC ro #5 #5 ENTRANCE ENTRANCE CONSTRUCTION • -34' F7Ft FBB- IT 26.5' RAD 2 5- RAD _) //FUMITS . . . . . . . . . . . rGV1 ll+oo 4 12+00 13+00 -4— —11- — - — -I--- - 14+01) ls+oo -I— - — - --4- - — - ----4 - I 16+01) - 4-- rA-Dl 0 rA-Dl 0 AD o E:I_ - - --- - -- — --- -------- --------- -ml ----- - ----- - ------ \,,,STING- 15RAD 16 BAD RAW ----------- CDNISTR CTION BITUMINOUS TRAJ 8" CONCRETE VALLEY GUTTER (D UNITS RIDGEWATER COLLEGE RIDGEWA IEK (D COLLEGE o 67 LP STA -15+75,09 gg •LP n EL-. T. 10% 1075 + PVI EL -10"87 1075 1070 DOSTIN PROnLEG CIL , S L 1070 PROPOSED CL 1065 PR.FLE 1065 1060 1060 +1 lo.so 1111.0 12.w 134001 l"oo 15.00 11"Do I" DRAWN BY: KM NO. BY DATE REVISIONS I HEREBY CERTIFY THAT THIS PLAN WAS PREPARED BY ME OR UNDER NY DIRECT SURERMSION AND THAT I AM A DULY LICENSED CENTURY AVENUE SOUTHEAST STREET CONSTRUCTION PLAN SHEET DESIGNED BY: KM PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF MINNESOTA My AND PROFILE D 2D 40 53 APPROVED BY: KE %a� S.P. 133-125-002 SCALE FEET OF SIGNATURE: DATE: 12-12-17 PRIN ME KENTON E.NE-R LIC. NO. 42907 LETTING NO. 1 / CITY PROJECT 18-01 102 Public Arts Commission Minutes - March 15, 2018, 4:00 Present: Jon, Kay, Tinea, Steve. Guest: David Wegschied 1. Minutes from February 8`": Motion by Kay, second by Tinea to approve. Passed 2. David Wegschied Mural Proposition: David presented two ideas for future murals. The first would be a copy of Les Kouba's "Down by the Station" painting. David was initially approached by an individual to possibly place this mural on the north side of the old UBC building. After further discussions other options discussed were adding rails and a box car to the depot site and painting the mural on that or painting it on the north side of the Schmeling Oil building. The arts commission suggested that getting permission of the property owner was the first step and that David should contact the Rail Authority and/or EDA if he is interested in the depot site. This mural would be privately funded. The second mural was an idea to honor veterans and two public domain images were provided a ideas. Both had an eagle and branch of service medallions. Initially David was thinking about something in front of the knoll behind the pond at the McLeod County Veterans Park or the north end of the EconoFoods building. It was suggested that perhaps the side of ShopKo might work better. Steve mentioned that the green space directly south of ShopKo is city owned and general discussion took place about the options that might provide. Steve will confirm that that the green space is still city property. This mural would require donations. David was reminded that by city ordinance any mural needs a conditional use permit so the process would be similar to what he went through with the Ace Hardware mural. 3. Elect New secretary: Tinea was nominated and she accepted starting with the April meeting. 4. Artist Agreement: Steve provided an update that all artists have acknowledged being accepted. An agreement was emailed to each artist because the signature requirement on the "Call for Artists" was inadvertently removed. Three of seven have been received so far. 5. Brochure: Discussion took place on the brochure. Additions of the "Parental Love" sculpture and the Gateway Park and Les Kouba murals were suggested. Link to PAC website is included, but it needs to be updated to include artist statement about their piece. Jon will check to see if the SMAC/Legacy acknowledgement is still needed and he will make up a draft brochure for the next meeting. 6. Sculpture Lamicoids: Currently the name of the piece, artist, city and sales price are included. Suggestion was made to add artist website. Steve will order from the donor who has provided these in the past. 7. Corporate Sponsorship: Discussion took place about seeking $500 sculpture sponsorships for 2019. Sponsors would be noted on brochures and lamicoids. Steve will draft letter for the next meeting, but plan would be to make personal visits. Please bring suggestions of possible donors to next meeting. 8. City Council — PAC Planning Workshop: Council set the workshop for 4:00, April 10th, City Hall 9. Haley Going Off Board in May: Steve was nominated to be chair and he accepted. Jon will continue as Vice Chair. Jon will meet with Haley to understand the social media aspects. Steve suggested developing a "guidebook" for the commission that would include items like the founding and funding resolutions, procedure & policy manual, meeting information, contact information, and sculpture stroll program information. Steve will make contact with Haley about her thoughts on possible information to include. 10. Commission Candidates: Tinea suggested Morgan Baum. Jon will make contact. 11. Next Meeting: Suggestion was made to hold the next meeting immediately before the April 10th council workshop. Meeting set for 3:15, April 10tH MINUTES Parks, Recreation & Community Education Advisory Board April 2, 2018 Members present were Marsha Anderson, Chad Czmowski, Don DeMeyer, Marlys Hoeft, Tim Petersen and Chris Wilke. Also present were Dolf Moon, Sara Witte, September Jacobsen, Sharon Armstrong and Leslie Alberts. The meeting was called to order at 5:15 pm. A motion made by Chad Czmowski to approve minutes from the February 5, 2018 meeting minutes and seconded by Chris Wilke. The board unanimously agreed. OLD BUSINESS A. None NEW BUSINESS A. Tennis Facility Update a. Currently, there are nine options with various material costs. The most expensive option is to remove the existing eight courts, rebuild 12 new courts south of the current location with the most expensive material coming in at $1.415 million. With the 12 -court option, four of the courts will be striped for pickle ball. Larson engineering will be recommending maintenance solutions for the Park Elementary courts sometime in April. Dolf will be meeting with the pickle ball players April 5. i. $689,311 — 8 existing courts/bituminous ii. $826,811 — 8 existing courts/reinforced concrete iii. $764,375 — 8 existing courts/post tensioned concrete iv. $765,626 — 8 new courts/bituminous v. $893,010 — 8 new courts/reinforced concrete vi. 1,152,210 — 8 new courts/post tensioned concrete vii. $945,986 — 12 new courts/bituminous viii. $1,124,570 — 12 new courts/reinforced concrete ix. $1,415,610 — 12 new courts/post tensioned concrete b. In May, we will discuss preferred options. B. Event/Senior Center Update — September Jacobsen C. Community Education Update — Sharon Armstrong D. Parks Update — Sara Witte BOARD MEMBER ITEMS There were no board member items. ADJOURNMENT Don DeMeyer made a motion to adjourn the meeting at 6:40 pm and seconded by Chad Czmowski. Next meeting is May 7, 2018 HUTCHINSON CITY COUNCIL Cityaf Aa Ls Request for Board Action Agenda Item: March 2018 Financial and Investment Reports Department: Finance LICENSE SECTION Meeting Date: 4/24/2018 Application Complete Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff Governance Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: For Council review, attached are the March Financial Reports for the general fund and enterprise funds. Also attached is the March Investment Report. The hospital lease payoff of $6.2M was received in our local bank account on March 29th. We transferred $5,939,376 to our investment account on April 2nd. The funds were placed in a money market account which is currently earning 1.40% annually. We allocated $260,624 of the $6.2M payoff to the general fund as that was our 2018 budgeted revenue from the hospital lease. 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 MARCH 31, 2018 TOTAL REVENUES 1,005,194 1,493,537 12,858,803 11,365,266 11.6 914,094 12,300,128 7.4 Wages & Benefits 871,346 1,858,066 8,657,896 6,799,830 2017 1,741,094 8,175, 052 2017 Supplies 2018 ACTUALS 146,960 2018 AVAILABLE % BDGT 2017 YTD 2017 % BDGT Services & Charges MARCH YTD BUDGET BALANCE USED ACTUAL BUDGET USED General Fund 8,915 72,650 562,290 489,640 12.9 59,064 552,075 10.7 Taxes - - 4,925,466 4,925,466 - - 4,763,796 - Other Taxes 5,747 11,473 305,000 293,527 3.8 11,495 300,000 3.8 Licenses & Permits 46,085 150,169 343,050 192,882 43.8 286,201 283,550 100.9 Intergovernmental Revenue 19,082 40,963 1,555,161 1,514,198 2.6 56,610 1,423,830 4.0 Charges for Services 291,625 589,739 2,840,534 2,250,795 20.8 481,781 2,817,291 17.1 Miscellaneous Revenues 26,889 80,133 319,500 239,367 25.1 64,680 339,500 19.1 Transfers -In 610,337 610,337 2,515,092 1,904,755 24.3 - 2,292,161 - Fines & Forfeitures 5,429 10,724 55,000 44,276 19.5 13,326 55,000 24.2 Capital Contributions - - - - - - 25,000 - TOTAL REVENUES 1,005,194 1,493,537 12,858,803 11,365,266 11.6 914,094 12,300,128 7.4 Wages & Benefits 871,346 1,858,066 8,657,896 6,799,830 21.5 1,741,094 8,175, 052 21.3 Supplies 56,210 146,960 878,840 731,880 16.7 162,491 866,545 18.8 Services & Charges 159,637 470,312 2,649,777 2,179,465 17.7 489,186 2,596,456 18.8 Miscellaneous Expenses 8,915 72,650 562,290 489,640 12.9 59,064 552,075 10.7 Transfers -Out 451,288 451,288 501,288 50,000 90.0 50,000 600,000 8.3 Capital Outlay - - 10,000 10,000 - 5,303 10,000 53.0 TOTAL EXPENDITURES 1,547,396 2,999,276 13,260,091 10,260,815 22.6 2,507,137 12,800,128 19.6 NET REVENUE (542,202) (1,505,739) (401,288) 1,104,451 (1,593,043) (500,000) Comments Revenues: Transfers -In We received the first quarter PILOT payment ($350K) from Hutchinson Utilities in March this year compared to receiving it in April last year. The annual budgeted lease payment ($260K) from Hutchinson Health was recorded in March upon the settlement payoff of the remaining twenty years on the lease. Typically the budgeted amount was paid in May and October. Expenditures: Transfers -Out The March expenditure includes the transfer of Tree Disease Infestation and Mitigation fund balance to a new special revenue fund ($401,288) and the semi-annual funding of the HATS facility ($50,000). REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2018 2018 ACTUALS MARCH General Fund Exoense by Deoartment YTD 2018 AVAILABLE BUDGET BALANCE 2017 % BDGT 2017 YTD USED ACTUAL 2017 BUDGET 2017 % BDGT USED Mayor & City Council 4,397 9,421 49,922 40,501 18.9 9,135 49,962 18.3 City Administrator 47,662 97,686 411,990 314,304 23.7 91,348 395,266 23.1 Elections - - 23,100 23,100 - - 6,850 - Finance Department 32,823 69,613 359,527 289,914 19.4 68,223 355,653 19.2 Motor Vehicle 28,509 55,573 264,832 209,259 21.0 51,156 217,890 23.5 Assessing - - 61,131 61,131 - - 46,496 - Legal 29,941 64,246 313,858 249,612 20.5 64,781 294,100 22.0 Planning 15,455 31,156 149,212 118,056 20.9 34,766 151,585 22.9 Information Services 70,906 140,728 560,588 419,860 25.1 127,462 535,168 23.8 City Hall Building 17,014 35,184 167,556 132,372 21.0 36,697 173,368 21.2 Police Department 360,496 791,226 3,331,215 2,539,989 23.8 727,726 3,216,585 22.6 Hospital Security 30,678 68,618 311,394 242,776 22.0 73,662 296,977 24.8 Emergency Management 97 3,790 22,180 18,390 17.1 9,349 10,000 93.5 Safety Committee 297 8,960 10,800 1,840 83.0 8,796 10,000 88.0 Fire Department 22,228 60,036 332,858 272,822 18.0 53,989 343,461 15.7 Protective Inspections 19,565 43,670 365,062 321,392 12.0 53,024 236,552 22.4 Engineering 43,969 101,832 457,087 355,256 22.3 96,570 418,877 23.1 Streets & Alleys 151,495 254,949 1,582,983 1,328,034 16.1 246,447 1,548,036 15.9 Park/Recreation Administration 27,191 57,852 260,339 202,487 22.2 60,593 233,898 25.9 Recreation 19,656 48,649 247,593 198,944 19.6 57,249 232,724 24.6 Senior Citizen Center 4,907 18,258 86,779 68,521 21.0 17,497 84,801 20.6 Civic Arena 53,824 122,980 338,878 215,898 36.3 96,070 333,284 28.8 Park Department 74,472 181,040 904,484 723,444 20.0 177,169 879,100 20.2 Recreation Building 24,175 55,292 225,236 169,944 24.5 36,118 211,726 17.1 Events Center 25,928 65,333 253,808 188,475 25.7 63,220 259,478 24.4 Evergreen Building 3,050 6,372 26,650 20,278 23.9 6,029 26,225 23.0 Library 5,105 54,906 216,091 161,185 25.4 51,259 211,842 24.2 Waterpark 1,182 4,116 398,741 394,625 1.0 9,429 424,753 2.2 Cemetery 10,370 25,753 141,517 115,764 18.2 24,881 132,974 18.7 Airport 11,802 16,664 113,640 96,976 14.7 15,143 103,679 14.6 Unallocated General Expense 410,202 505,375 1,271,040 765,665 39.8 139,350 1,358,818 10.3 TOTAL EXPENDITURES 1,547,396 2,999,276 13,260,091 10,260,815 22.6 2,507,137 12,800,128 19.6 REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2018 Cost of Sales 365,574 971,317 4,691,290 2017 20.7 917,451 2017 20.0 2018 ACTUALS 2018 AVAILABLE % BDGT 2017 YTD 2017 % BDGT 662,377 MARCH YTD BUDGET BALANCE USED ACTUAL BUDGET USED Liquor Fund 24,250 10.2 Services & Charges 15,937 52,208 225,800 173,592 Sales 493,051 1,300,674 6,245,000 4,944,326 20.8 1,207,337 6,123, 000 19.7 Miscellaneous Revenues 22 567 4,000 3,433 14.2 595 4,000 14.9 TOTAL REVENUES 493,073 1,301,241 6,249,000 4,947,759 20.8 1,207,931 6,127,000 19.7 Cost of Sales 365,574 971,317 4,691,290 3,719,973 20.7 917,451 4,591,390 20.0 Wages & Benefits 72,188 147,753 671,021 523,268 22.0 137,374 662,377 20.7 Supplies 854 2,907 27,750 24,843 10.5 2,481 24,250 10.2 Services & Charges 15,937 52,208 225,800 173,592 23.1 44,701 218,550 20.5 Miscellaneous Expenses - - 5,850 5,850 - 195 5,850 3.3 Transfers -Out - - 500,000 500,000 - - 500,000 - CapitalOutlay - - 25,000 25,000 - - 20,000 - Depreciation Expense - - 85,000 85,000 - - 80,000 - Debt Service - - 128,045 128,045 - - 127,635 - TOTAL EXPENDITURES 454,553 1,174,185 6,359,756 5,185,571 18.5 1,102,203 6,230,052 17.7 NET REVENUE 38,520 127,056 (110,756) (237,812) 105,729 (103,052) Customer Count Average Sale per Customer $ Gross Margin on Sales Labor to Sales Ratio 54,346 50,888 6.8% 23.93 $ 23.73 0.9% 25.3% 24.9% 11.4% 10.7% 20,243 $ 24.36 $ 24.0% 11.4% 18,457 9.7% 23.76 2.5% 25.0% 10.8% Year to Date Sales March Sales Comments 2018 2017 Change 2018 2017 Change Liquor Sales Revenue: Liquor 462,121 432,859 6.8% 171,747 154,944 10.8% Beer 593,964 552,603 7.5% 225,481 202,484 11.4% Wine 220,134 200,531 9.8% 86,722 73,371 18.2% Other 24,455 21,343 14.6% 9,100 7,678 18.5% 1,300,674 1,207,337 7.7% 493,051 438,477 12.4% Customer Count Average Sale per Customer $ Gross Margin on Sales Labor to Sales Ratio 54,346 50,888 6.8% 23.93 $ 23.73 0.9% 25.3% 24.9% 11.4% 10.7% 20,243 $ 24.36 $ 24.0% 11.4% 18,457 9.7% 23.76 2.5% 25.0% 10.8% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2018 Wages & Benefits 50,958 107,327 478,638 371,311 2017 104,897 461,635 2017 Supplies 2018 ACTUALS 23,386 2018 AVAILABLE % BDGT 2017 YTD 2017 % BDGT Services & Charges MARCH YTD BUDGET BALANCE USED ACTUAL BUDGET USED Water Fund 63 7,585 14,700 7,115 51.6 6,977 12,200 57.2 Sales 116,351 382,242 1,880,000 1,497,758 20.3 399,889 1,870,000 21.4 Sales - Other 45,172 171,022 516,750 345,728 33.1 150,820 514,950 29.3 Local Sales Tax 53,542 109,482 640,000 530,518 17.1 42,990 625,000 6.9 Intergovernmental Revenue - - - - - - - - Charges for Services 2,103 34,812 55,000 20,188 63.3 33,871 50,000 67.7 Miscellaneous Revenues 3,156 13,008 104,500 91,492 12.4 2,158 92,000 2.3 Capital Contributions - - - - - - - - TOTAL REVENUES 220,325 710,565 3,196,250 2,485,685 22.2 629,728 3,151,950 20.0 Wages & Benefits 50,958 107,327 478,638 371,311 22.4 104,897 461,635 22.7 Supplies 10,297 23,386 132,300 108,914 17.7 26,948 126,600 21.3 Services & Charges 35,684 76,965 535,960 458,995 14.4 65,157 522,250 12.5 Miscellaneous Expenses 63 7,585 14,700 7,115 51.6 6,977 12,200 57.2 Transfers -Out - - 60,000 60,000 - - 60,000 - CapitalOutlay - - 350,000 350,000 - - 250,000 - Depreciation Expense - - 1,100,000 1,100,000 - - 1,205,000 - Debt Service - 200,680 1,485,627 1,284,947 13.5 194,921 1,481,305 13.2 TOTAL EXPENDITURES 97,001 415,944 4,157,225 3,741,281 10.0 398,901 4,118,990 9.7 NET of REVENUES & EXPENDITURES 123,324 294,622 (960,975) (1,255,597) 230,827 (967,040) Year to Date Water Sales Comments 2018 2017 Change Water Sales Revenue: Residential 251,862 254,213 -0.9% Commercial 72,263 70,379 2.7% Industrial 58,117 75,298 -22.8% Ohly using well water for production again in 2018 Water Sales 382,242 399,889 -4.4% Base Charge 105,850 104,528 1.3% WAC Charge 46,522 28,998 60.4% Hotel and Highfield Apt phase 3 Other 18,649 17,295 7.8% Other Sales 171,022 150,820 13.4% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2018 Sewer Fund Sales Sales - Other Local Sales Tax Intergovernmental Revenue Licenses & Permits Charges for Services Miscellaneous Revenues Capital Contributions TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES NET of REVENUES & EXPENDITURES 75,822 156,977 678,838 521,861 2017 127,441 655,584 2017 2018 ACTUALS 34,404 2018 AVAILABLE % BDGT 2017 YTD 2017 % BDGT MARCH YTD BUDGET BALANCE USED ACTUAL BUDGET USED 70 8,729 32,500 23,771 26.9 557 32,500 1.7 203,332 639,770 2,920,000 2,280,230 21.9 711,261 2,920,000 24.4 34,993 157,007 410,000 252,993 38.3 133,504 410,000 32.6 53,542 109,482 640,000 530,518 17.1 42,990 625,000 6.9 - 5,100 6,500 1,400 78.5 5,100 6,500 78.5 1,670 1,670 3,500 1,830 47.7 2,193 3,500 62.7 4,815 18,126 140,000 121,874 12.9 6,013 123,000 4.9 298,351 931,155 4,120,000 3,188,845 22.6 901,062 4,088,000 22.0 75,822 156,977 678,838 521,861 23.1 127,441 655,584 19.4 14,542 34,404 219,700 185,296 15.7 35,083 219,650 16.0 78,943 154,197 800,830 646,633 19.3 170,731 780,450 21.9 70 8,729 32,500 23,771 26.9 557 32,500 1.7 - - 60,000 60,000 - - 60,000 - 74,968 173,007 650,000 476,993 26.6 52,312 350,000 14.9 - - 1,450,000 1,450,000 - - 1,623,000 - 57,639 450,137 1,458,251 1,008,114 30.9 442,625 1,460,650 30.3 301,984 977,451 5,350,119 4,372,668 18.3 828,748 5,181,834 16.0 (3,633) (46,296) (1,230,119) (1,183,823) 72,314 (1,093,834) Year to Date Sewer Sales Comments 2018 2017 Change Sewer Sales Revenue: Residential 383,685 390,836 -1.8% Commercial 105,997 109,056 -2.8% Industrial - Flow 106,498 146,314 -27.2% All industrial users are down for the year Industrial - Violation Surcharges 43,590 65,055 -33.0% Due to a reduction in Ohly's surcharges Sewer Sales 639,770 711,261 -10.1% Base Charge 91,880 90,989 1.0% SAC Charge 61,134 38,111 60.4% Hotel and Highfield Apt phase 3 Other 3,993 4,405 -9.3% Other Sales 157,007 133,504 17.6% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2018 Refuse Fund Sales Sales - Other Intergovernmental Revenue Miscellaneous Revenues TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service 11101IFM0w 4»k,111rtI]:7*9 NET of REVENUES & EXPENDITURES 2018 ACTUALS YTD MARCH 2018 AVAILABLE BUDGET BALANCE 2017 % BDGT 2017 YTD USED ACTUAL 2017 BUDGET 2017 % BDGT USED 95,514 286,466 1,154, 000 867,534 24.8 281,859 1,151, 900 24.5 3,794 11,209 43,550 32,341 25.7 10,995 41,400 26.6 - - 12,500 12,500 - - 12,500 - 1,195 4,262 12,500 8,238 34.1 539 7,000 7.7 100,503 301,937 1,222,550 920,613 24.7 293,393 1,212,800 24.2 16,112 33,616 187,401 153,785 17.9 32,393 188,733 17.2 975 15,772 58,400 42,628 27.0 12,850 62,400 20.6 56,729 125,863 736,190 610,327 17.1 124,720 731,550 17.0 - 564 6,500 5,936 8.7 571 5,750 9.9 - - 55,000 55,000 - - 805,000 - - - 85,000 85,000 - - 190,374 - - - 144,000 144,000 - - 138,000 - - - - - - (580) 24,261 (2.4) 73,816 175,815 1,272,491 1,096,676 13.8 169,955 2,146,068 7.9 26,688 126,122 (49,941) (176,063) 123,438 (933,268) Compost Fund Sales Charges for Services Miscellaneous Revenues TOTAL REVENUES Cost of Sales Inventory Cost Adjustment Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2018 2018 ACTUALS YTD MARCH 2018 AVAILABLE BUDGET BALANCE 2017 % BDGT 2017 YTD USED ACTUAL 2017 BUDGET 2017 % BDGT USED 369,418 535,307 2,003,975 1,468,668 26.7 737,078 1,991,476 37.0 5 10 82,500 82,490 0.0 - 58,500 - 1,567 5,871 26,400 20,529 22.2 465 7,000 6.6 370,990 541,188 2,112,875 1,571,687 25.6 737,543 2,056,976 35.9 219,895 323,882 1,316,600 992,718 24.6 453,144 1,348,002 33.6 (22,292) (70,096) (494,200) (424,104) 14.2 (63,199) (538,028) 11.7 57,226 126,183 610,345 484,162 20.7 118,980 582,363 20.4 3,588 13,540 65,300 51,760 20.7 15,541 78,626 19.8 6,605 27,228 243,440 216,212 11.2 49,191 231,004 21.3 400 1,558 11,500 9,942 13.5 1,787 14,000 12.8 - - 110,000 110,000 - - 110,000 - - - 139,227 139,227 - - 623,000 - - - 207,000 207,000 - - 174,000 - - - 87,833 87,833 - - - - 265,422 422,294 2,297,045 1,874,751 18.4 575,442 2,622,967 21.9 105,569 118,894 (184,170) (303,064) 162,101 (565,991) Year to Date Sales Comments 2018 2017 Change Compost Sales Bagged 496,419 677,625 -26.7°To Bulk 1,788 11,151 -84.0% Other 37,100 48,303 -23.2% Total 535,307 737,078 -27.4% Storm Water Utili Sales Sales - Other Licenses & Permits Charges for Services Miscellaneous Revenues Capital Contributions TOTAL REVENUES REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2018 2018 ACTUALS MARCH YTD 2017 2018 AVAILABLE % BDGT 2017 YTD BUDGET BALANCE USED ACTUAL 2017 BUDGET 2017 % BDGT USED 76,282 226,592 904,600 678,008 25.0 219,425 879,275 25.0 303 785 3,000 2,215 26.2 764 2,200 34.7 - 370 4,000 3,630 9.3 200 1,500 13.3 - - - - - 560 - - 2,099 4,568 13,750 9,182 33.2 1,225 7,000 17.5 78,684 232,314 925,350 693,036 25.1 222,174 889,975 25.0 Wages & Benefits 4,968 37,993 276,489 238,496 13.7 56,044 256,432 21.9 Supplies 145 239 38,800 38,561 0.6 6,485 38,800 16.7 Services & Charges 3,129 5,226 165,600 160,374 3.2 9,835 163,600 6.0 Miscellaneous Expenses - 810 11,250 10,440 7.2 954 11,250 8.5 Transfers -Out - - 125,000 125,000 - - - - CapitalOutlay - - 200,000 200,000 - - 170,000 - Depreciation Expense - - 157,000 157,000 - - 153,000 - Debt Service - 150,508 154,750 4,242 93.5 145,750 160,550 70.2 TOTAL EXPENDITURES 8,241 194,777 1,128,889 934,112 17.3 219,067 953,632 23.0 NET of REVENUES & EXPENDITURES 70,443 37,538 (203,539) (241,077) 3,107 (63,657) HATS Ooeration Intergovernmental Revenue Charges for Services Miscellaneous Revenues Transfers -In TOTAL REVENUES Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Capital Outlay TOTAL EXPENDITURES Comments Charges for Services REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2018 2018 ACTUALS YTD MARCH 2018 AVAILABLE BUDGET BALANCE 2017 % BDGT 2017 YTD USED ACTUAL 2017 BUDGET 2017 % BDGT USED 51,333 66,000 176,000 110,000 37.5 19,807 162,280 12.2 14,930 53,815 267,500 213,685 20.1 51,037 325,000 15.7 290 827 3,500 2,673 23.6 76 3,500 2.2 50,000 50,000 100,000 50,000 50.0 50,000 100,000 50.0 116,553 170,643 547,000 376,357 31.2 120,919 590,780 20.5 3,498 7,241 38,151 30,910 19.0 5,837 39,495 14.8 27,893 79,004 273,650 194,646 28.9 51,985 341,650 15.2 11,524 26,741 157,160 130,419 17.0 30,991 162,000 19.1 - - 5,600 5,600 - - 5,600 - - - 76,612 76,612 - - 42,035 - 42,915 112,986 551,173 438,187 20.5 88,814 590,780 15.0 73,638 57,657 (4,173) (61,830) 32,106 - 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. 85 Broad Street STATEMENT OF LPENHEMEk New York NY 10004 (ala) 668-8000 ACCOUNT Transacts Business on All Principal Exchanges News and Information Assets maturing during the next 60 days appear at the end of this statement. Please refer to Page 12 of this statement for important information from Oppenheimer & Co. Inc., including the availability of our Statement of Financial Condition as of December 31, 2017. Oppenheimer's 2018 Annual Disclosure Notices, including our Privacy Policy, are included with this statement beginning immediately following Page 12. Kindly retain this information for your records. Portfolio Summary This Period 03/31/18 Mutual Funds $4,692,584.56 Government Agency Bonds 2,459,295.00 Municipal Bonds 5,478,905.60 Certificates of Deposit 9,166,015.72 Cash Account Balance 592.58 Previous Period 02/28/18 $4,915,203.33 2,451,675.00 5,472,057.60 8,944,814.19 416.16 Estimated Annual Income $54,218.12 48, 500.00 130,200.40 167,328.50 Total Asset Value $21,797,393.46 $21,784,166.28 $400,247.02 Net Value of Accrued Interest $82,104.82 $70,628.92 Total Asset Value does not include Direct Investments, Accrued Interest or unpriced securities. Cash Activity Summary )Peninq Cash Balance Account Number: D25-5019707 For the Period: 03/01/18 - 03/31/18 Tax ID Number: ON FILE Last Statement: 02/28/18 Page 1 of 13 CITY OF HUTCHINSON MINNESOTA 111 HASSAN ST SE HUTCHINSON MN 55350-2522 Financial Advisor SULLIVAN/SULLIVAN X2J (800) 258-3387 Internet Address: www.opco.com Income Summary Reportable Advantage Bank Dep Interest Corporate Interest Municipal Interest Government Interest Dividends Office Serving Your Account 50 SOUTH SIXTH STREET SUITE 1300 MINNEAPOLIS, MN 55402 This Period $0.04 17,475.66 0.00 0.00 4,284.45 Year to Date $0.09 31,603.96 13,362.50 20,500.00 16,031.41 16.16 Total Reportable $21,760.15 $81,497.96 Net Buy and Sell Transactions -18,096.78 Net Miscellaneous Credits/Debits -3,486.95 Net Income Activity 21,760.15 Closing Cash Balance $592.58 PPENHEII=1 TOTAL POSITIONS Original Face Value Current Face Value Est Annual Income $17,356,000.00 $17,356,000.00 $346,028.90 PORTFOLIO OVERVIEW CITY OF HUTCHINSON report as of 4/2/18 POSITIONS INCLUDED IN PORTFOLIO ANALYSIS Estimated Portfolio Totals Estimated Portfolio Averages Includes all positions with recognized CUSIP, quantity and market price on report date Original Face: the original dollar value at issuance Current Face: the dollar value after the 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 39 Original Face Value $17,356,000.00 Coupon 1.99% Valid Positions 50 Current Face Value $17,356,000.00 Maturity 2.85 yrs Exceptions 0 Market Value $17,104,216.32 Effective Maturity 2.60 yrs Total Positions 50 Accrued Interest $85,634.71 Modified Duration 2.45 Includes all positions with recognized CUSIP and valid quantity provided Total Market Value $17,189,851.03 Yield to Maturity 2.61 Please see exception report for positions not included in reports. Yield to Worst 2.54% POSITIONS W/ MARKET PRICE Positions 50 of 50 Market Price 98.55 Priced Orig. Face Value $17,356,000.00 Rating Priced Current Face Value $17,356,000.00 a a a Priced Positions 50 of 50 Priced Market Principal $17,104,216.32 Average Coupon 1.99% Average Price 98.55 Includes all positions with recognized CUSIP, quantity and market price on report date Original Face: the original dollar value at issuance Current Face: the dollar value after the 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 39 r )_PPENHEIMEk PORTFOLIO SUMMARY - CURRENT FACE VALUE WEIGHTED - ALL SECURITY TYPES CITY OF HUTCHINSON report as of 4/2/18 Please see the last page of this report for detail. Page 4 of 39 PORTFOLIO SUMMARY HOLDINGS BY SECURITY TYPE Portfolio Totals Fed Exempt Fed Taxable Total Positions Face 10001 %Face Current Face Value $17,356,000 $17,356,000 Agency 4 $2,500.0 14.4% Positions 50 50 of 50 Asset Backed - - Accrued Interest $85,635 $85,635 CD 38 $9,296.0 53.6% Est Annual Income $346,029 $346,029 CEF - - CMO * Portfolio Average Corp - - - Avg Coupon Rate 1.994% 1.994% Muni 8 $5,560.0 32.0% Avg Maturity 2.9yrs 2.9yrs Pass Thru - - Preferred Treas - - Total 50 $17,356.0 100.0% * Current Face Value -weighted. For Avg Maturity calculations, perpetual securities assume 40 yrs * Current Face Value -weighted PORTFOLIO RATING SUMMARY RATING DISTRIBUTION **Rating Positions Face 10001 % Face AAA 6 $3,500.0 20.2% AAA 30 12 AA 4 $2,000.0 11.5% > AA A 2 $2,560.0 14.7% u BAA - - .LL. A 15 Below BAA - - BAA NR 38 $9,296.0 53.6% 0 ro Total 50 $17,356.0 100.0% Y C a) Below L BAA a NR 0 30 20 30 40 50 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 39 jPPEIHEIIE PORTFOLIO SUMMARY - CURRENT FACE VALUE WEIGHTED - ALL SECURITY TYPES CITY OF HUTCHINSON report as of 4/2118 28 24 20 U 16 Q a 12 0 8 4 0 1 Current Face Value -weighted. MATURITY EXPOSURE e� Q MATURITY SCHEDULE Year Face (0001 % Year Face (0001 2018 $1,465.0 8.4% 2032 - 2019 $3,962.0 22.8% 2033 2020 $3,265.0 18.8% 2034 2021 $2,715.0 15.6% 2035 2022 $4,464.0 25.7% 2036 2023 $245.0 1.4% 2037 2024 $1,000.0 5.8% 2038 2025 $240.0 1.4% 2039 2026 - - 2040 2027 $8,896 2041 2028 Muni:Non AMT 2042+ 2029 - Perpetual 2030 - - - 2031 - Muni:Subj AMT 28 24 20 U 16 Q a 12 0 8 4 0 1 Current Face Value -weighted. MATURITY EXPOSURE e� Q 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 39 ESTIMATED COUPON CASH FLOW SUMMARY Jan Feb Mar ADr Mav Jun Jul Aug Seo Oct Nov Dec Total Agency $15,500 $5,000 - $3,750 - - $15,500 $5,000 - $3,750 - - $48,500 CD $6,408 $11,407 $19,520 $8,896 $22,708 $14,725 $6,408 $11,407 $19,520 $8,896 $22,708 $14,725 $167,329 Muni:Non AMT - - - - - - - - - - - - - Muni:Subj AMT - - - - - - - - - Muni:Taxable $23,000 $13,363 - $7,095 $21,643 - $23,000 $13,363 - $7,095 $21,643 - $130,200 Total $44,908 $29,770 $19,520 $19,741 $44,350 $14,725 $44,908 $29,770 $19,520 $19,741 $44,350 $14,725 $346,029 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 39 jPPEIHEIIER PORTFOLIO SUMMARY - MARKET VALUE WEIGHTED - ALL SECURITY TYPES CITY OF HUTCHINSON report as of 4/2/18 PORTFOLIO SUMMARY Portfolio Totals Fed Exempt Fed Taxable Total Priced Current Face $17,356,000 $17,356,000 Positions 50 50 of 50 Market Value $17,104,216 $17,104,216 Accrued Interest $85,635 $85,635 Total Market Value $17,189,851 $17,189,851 Est Annual Income $346,029 $346,029 Portfolio Averages ■ Treas 0.0% ** Coupon Rate 1.994% 1.994% Maturity 2.9yrs 2.9yrs Effective Maturity 2.6yrs 2.6yrs Modified Duration 2.5 2.5 Yield To Maturity 2.61% 2.61% Yield To Worst 2.54% 2.54% ** Market Price 98.549 98.549 ** 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 R Includes only positions with market value & calculations on report date. Market Value -weighted. POSITIONS BY SECURITY TYPE ❑ AAA 20.0% ❑ AA 11.5% ❑ A 14.9% ❑ BAA 0.0% ❑ Below BAA 0.00/0 ❑ NR 53.6% Total: 100.00/0 Includes only positions with market value & calculations on report date. Market Value -weighted. POSITIONS BY SECURITY TYPE Agency SCD ■ Agency 14.4% ■ Asset Backed 0.0% ■ CD 53.6% ■ CEF 0.0% ■ CMO 0.0% Corp 0.0% ■ Muni 32.0% 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. - 911jV„r��, � 100 90 80 70 60 x 50 0 40 30 20 10 0 20 b 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 39 ,PP24HEI IEP PORTFOLIO SUMMARY - MARKET VALUE WEIGHTED - ALL SECURITY TYPES CITY OF HUTCHINSON report as of 4/2118 MATURITY EXPOSURE 28-- 24 20 Y -- 16-- 12 0 8 4 0 S;1: 'LO'L,rp,fvlCV'rp,rr, Lp,lb M,fO303y3'15 3X3'5h 50313030 a0A�tix Jai yO,yO,yO,yO,yO,yO,yO,yO,yO,yO,yO,yO,yO,yO,yO,yO,yO,yO,yO,yO,yO,yO,y0,10�0 Q�w Q Includes only positions with market price & calculations on report date. Market Value -weighted. MENA DURATION EXPOSURE 32 28 24 20 Y 16 ° 12 8 4 0 '>'L3ah6100-0 1!,ah6'1000'>1, ah6100x AV A0,> 0' O' ti3'titih'ti0'ti1'ti0'ti_ 0 Includes only positions with market price & calculations on report date. Market Value -weighted. Please see the last page of this report for detail. Page 7 of 39 PORTFOLIO EXPOSURE Maturity Effective Maturity Duration to Worst Average: 2.85yrs Average: 2.60yrs Average: 2.45 Year $ Mkt % Mkt $ Mkt % Mkt Year $ Mkt % Mkt 2018 $1,467,805 8.5% $1,467,805 8.5% 00-01 $3,723,540 21.7% 2019 $3,970,570 23.1% $4,713,045 27.4% 01-02 $3,998,553 23.3% 2020 $3,228,302 18.8% $3,711,333 21.6% 02-03 $2,660,674 15.5% 2021 $2,677,235 15.6% $2,667,816 15.5% 03-04 $4,871,974 28.3% 2022 $4,394,791 25.6% $3,416,738 19.9% 04-05 $721,997 4.2% 2023 $239,864 1.4% $239,864 1.4% 05-06 $1,213,114 7.1% 2024 $973,250 5.7% $973,250 5.7% 06-07 - 2025 $238,034 1.4% - - 07-08 2026 - - 08-09 2027 09-10 2028 10-11 2029 11-12 2030 12-13 2031 13-14 2032 14-15 2033 15-16 2034 16-17 2035 17-18 2036 18-19 2037 19-20 2038 20-21 2039 21-22 2040 22-23 2041 23-24 2042+ 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 39 )_PPENHETMEK PORTFOLIO POSITION DETAIL CITY OF HUTCHINSON report as of 4/2/18 Page 1 of 3 A Type St Qty Cpn Maturity 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 MERRICK BK SOUTH JORDAN UTAH CD 245 0.900 05/10/18 NR NR 1.43% 0.10 $100.00 0.900 $245,000 99.96 $151 Conditional Puts - Death of holder - Restrict 59013JNV7 0.00 05/09/17 1.296 $245,000 $244,904 ($96) KEY BK NATL ASSN OHIO CD 245 1.000 05/11/18 NR NR 1.43% 0.10 $100.00 1.000 $245,000 99.96 $967 Conditional Puts - Death of holder - Restrict 49306SWN2 0.00 05/09/17 1.390 $245,000 $244,902 ($98) CONNECTONE BANK CD 245 1.000 05/14/18 NR NR 1.43% 0.11 $100.00 1.000 $245,000 99.96 $148 Conditional Puts - Death of holder 20786ABM6 0.00 05/09/17 1.402 $245,000 $244,892 ($108) BANK LEUMI USA NEW YORK N Y CD 245 1.250 06/22/18 NR NR 1.43% 0.22 $100.00 1.249 $245,000 99.91 $864 Conditional Puts - Death of holder mmj 063248GE2 0.00 05/09/17 1.643 $245,002 $244,789 ($213) BANK INDIA NEW YORK BRH CD 245 1.500 09/12/18 NR NR 1.43% 0.44 $100.00 1.500 $245,000 99.88 $2,034 Conditional Puts - Death of holder - Restrict 06279H2Q5 0.00 09/14/17 1.769 $245,000 $244,696 ($304) ENERBANK USA SALT LAKE CITY UTAH CD 240 1.350 10/04/18 NR NR 1.40% 0.50 $100.00 1.350 $240,000 99.77 $0 Conditional Puts - Death of holder - Restrict 29266NVE4 0.00 05/09/17 1.803 $240,000 $239,458 ($542) CONNECTICUT ST TAXABLE GO BDS Muni -Taxable CT 2,000 2.300 01/15/19 Al A+ 11.68% 0.77 $100.05 2.250 $2,001,040 99.93 $13,161 TAXABLE - Material Events 20772KAA7 0.01 12/21/17 2.391 $2,000,720 $1,998,560 ($2,160) MAIN STR BK CORP WHEELING WV CD 245 1.450 02/14/19 NR NR 1.43% 0.86 $100.00 1.450 $245,000 99.52 $195 Conditional Puts - Death of holder 56034WAP6 0.01 05/09/17 2.012 $245,000 $243,819 ($1,181) RIVERSIDE CALIF CMNTY COLLEGEDIST Muni -Taxable CA 500 2.345 08/01/19 Aa2 AA 2.92% 1.29 $101.50 1.657 $507,485 99.86 $2,052 TAXABLE - Material Events 76886PFA6 0.02 05/09/17 2.453 $504,480 $499,295 ($5,185) AMERICAN EXPRESS FSB CD 247 2.150 11/13/19 NR NR 1.44% 1.56 $100.00 2.150 $247,000 99.51 $2,066 Conditional Puts - Death of holder - Restrict 02587CCR9 0.03 05/09/17 2.462 $247,000 $245,785 ($1,215) CIT BK SALT LAKE CITY UTAH CD 240 2.100 11/13/19 NR NR 1.40% 1.56 $100.00 2.100 $240,000 99.58 $1,961 Conditional Puts - Death of holder - Restrict 17284C3N2 0.03 05/09/17 2.368 $240,000 $238,985 ($1,015) BMW BANK OF NORTH AMERICA - UT CD 245 1.550 12/16/19 NR NR 1.41% 1.66 $100.00 1.550 $245,000 98.56 $1,155 Conditional Puts - Death of holder - Restrict 05580AFT6 0.04 05/09/17 2.417 $245,000 $241,474 ($3,526) TBK BK SSB DALLAS TEX CD 245 1.600 12/16/19 NR NR 1.41% 1.67 $100.00 1.596 $245,000 98.64 $226 Callable 06/18@100 -Conditional Puts - Dea 87219RBC7 0.03 05/09/17 2.416 $244,993 $241,675 ($3,318) BARCLAYS BANK DELAWARE CD 240 2.050 12/17/19 NR NR 1.40% 1.65 $100.00 2.049 $240,000 99.46 $1,456 Conditional Puts - Death of holder 06740KJC2 0.04 05/09/17 2.373 $240,008 $238,706 ($1,301) SALLIE MAE BK SALT LAKE CITY UT CD 245 1.750 03/09/20 NR NR 1.41% 1.88 $100.00 1.749 $245,000 98.55 $317 Conditional Puts - Death of holder - Restrict 795450ZT5 0.05 05/09/17 2.525 $244,986 $241,438 ($3,548) CONNECTICUT ST GO BDS Muni -Taxable CT 560 2.534 04/15/20 Al A+ 3.25% 1.94 $100.92 2.140 $565,124 99.18 $6,662 TAXABLE - Material Events 20772JEK4 0.05 11/21/17 2.955 $564,357 $555,386 ($8,971) MASSACHUSETTS ST GO BDS Muni -Taxable MA 500 2.090 05/01/20 Aal AA 2.89% 2.00 $100.00 2.090 $499,995 98.99 $4,441 TAXABLE - Material Events _ 57582P2T6 0.05 05/09/17 2.591 $499,995 $494,965 ($5,030) MB FINL BK N A CHICAGO ILL CD 245 1.300 05/11/20 NR NR 1.40% 2.07 $100.00 1.300 $245,000 97.94 $209 Conditional Puts - Death of holder - Restrict 55266CRK4 0.05 05/09/17 2.302 $245,000 $239,963 ($5,037) CENTENNIAL BK CONWAY ARK CD 245 1.300 05/20/20 NR NR 1.40% 2.09 $100.00 1.300 $245,000 97.81 $131 Conditional Puts - Death of holder 15135KBA8 0.05 05/09/17 2.355 $245,000 $239,637 ($5,363) THIRD FED SVGS & LN ASSN OF CLEVEL CD 245 1.900 09/15/20 NR NR 1.41% 2.37 $100.00 1.900 $245,000 98.35 $255 Conditional Puts - Death of holder - Restrict 88413QBQO 0.07 09/15/17 2.598 $245,000 $240,958 ($4,043) CAPITAL ONE, NATIONAL ASSOCIATION CD 245 1.400 09/21/20 NR NR 1.39% 2.40 $100.00 1.400 $245,000 96.81 $132 Conditional Puts - Death of holder 14042RCA7 0.07 05/09/17 2.745 $245,000 $237,182 ($7,818) WEBBANK CD 245 2.000 09/28/20 NR NR 1.41% 2.42 $100.00 2.000 $245,000 98.56 $94 Callable 04/18(&100 -Conditional Puts - Dea 947547JR7 0.06 09/28/17 2.600 $245,000 $241,465 ($3,535) Please see the last page of this report for detail. Page 34 of 39 CITY OF HUTCHINSON POSITION DETAIL as of 04/02/2018 Page 2 of 3 Security Description A Type St C CUSIP Qty Cpn Maturity Mdy S&P Insurer % Mkt Duration Convexity Acq Cost Acq Date Acq Yid Mkt Yid $ Acq Cost $ Adj Cost Mkt Price Mkt $ Value Accrued Int Unreal Gn/Ls WEX BK MIDVALE UTAH CD 245 2.000 10/19/20 NR NR 1.41% 2.44 $100.00 2.000 $245,000 98.52 $2,255 Conditional Puts - Death of holder - Restrict 92937CGB8 0.07 10/18/17 2.606 $245,000 $241,364 ($3,636) FIRST BUSINESS BK MADISON WIS w CD 245 1.400 11/13/20 NR NR 1.39% 2.52 $100.00 1.400 $245,000 96.95 $1,334 Conditional Puts - Death of holder 31938QR89 0.08 05/09/17 2.616 $245,000 $237,518 ($7,482) CAPITAL ONE BK USA NATL ASSN GLEN CD 245 2.050 12/29/20 NR NR 1.41% 2.63 $100.00 2.049 $245,000 98.48 $1,321 Conditional Puts - Death of holder 14042OS43 0.08 05/09/17 2.627 $245,010 $241,276 ($3,734) MORGAN STANLEY BANK NA CD 245 2.500 02/01/21 NR NR 1.43% 2.70 $100.00 2.500 $245,000 99.63 $1,040 Conditional F - Death of holder 61747MJ36 0.09 02/01/18 2.635 $245,000 $244,096 ($904) CITIBANK NATL ASSN SIOUX FALLS S D CD 245 2.700 03/29/21 NR NR 1.43% 2.85 $100.00 2.700 $245,000 100.14 $109 Conditional Puts - Death of holder 17312QH77 0.10 03/29/18 2.651 $245,000 $245,338 $338 COMENITY CAP BK SALT LAKE CITY UTA CD 245 1.600 06/07/21 NR NR 1.39% 3.09 $100.00 1.600 $245,000 96.74 $311 Conditional Puts - Death of holder - Restrict 20033AQP4 0.10 05/09/17 2.671 $245,000 $237,011 ($7,989) COMMUNITY BK PASADENA CALIF CD 245 1.550 06/15/21 NR NR 1.39% 3.11 $100.00 1.550 $245,000 96.71 $208 Conditional Puts - Death of holder - Restrict 203507BA5 0.10 05/09/17 2.623 $245,000 $236,937 ($8,063) EAST BOSTON SVGS BK BOSTON MA CD 245 1.500 06/23/21 NR NR 1.38% 3.10 $100.00 1.500 $245,000 96.39 $1,027 Conditional Puts - Death of holder 27113PBEO 0.11 05/09/17 2.676 $245,000 $236,156 ($8,845) FEDERAL HOME LN MTG CORP CALL 2% Agency 500 2.000 07/26/21 Aaa AA+ 2.86% 3.17 $100.00 2.000 $500,000 97.79 $1,861 Callable 04/18@100 3134GBYJ5 0.12 07/26/17 2.702 $500,000 $488,935 ($11,065) FEDERAL HOME LOAN MORTGAGE CORP Agency 500 1.500 10/28/21 Aaa AA+ 2.90% 1.53 $100.00 1.000 $500,000 99.20 $3,229 Callable 04/18@100 - Multi -Step Coupon 3134GASK1 0.03 05/09/17 2.337 $500,000 $496,010 ($3,990) FOCUS BK CHARLESTON MO CD 245 2.100 11/24/21 NR NR 1.40% 3.45 $100.00 2.100 $245,000 97.91 $1,847 Conditional Puts - Death of holder 34415LAN1 0.14 11/24/17 2.705 $245,000 $239,884 ($5,116) MIZRAHI TEFAHOT BANK, LTD CD 245 1.750 11/30/21 NR NR 1.42% 1.38 $100.00 1.247 $245,000 99.11 $411 Callable 05/18@100 - Multi -Step Coupon - Co 606857Q78 0.02 05/09/17 2.447 $245,000 $242,824 ($2,176) STATE BK INDIA NEW YORK N Y CD 247 2.350 01/26/22 NR NR 1.42% 3.60 $100.00 2.349 $247,000 98.67 $1,081 Conditional Puts - Death of holder - Restrict 8562845Z3 0.15 05/09/17 2.717 $247,029 $243,722 ($3,306) GOLDMAN SACHS BK USA NEW YORK CD 247 2.300 03/08/22 NR NR 1.42% 3.72 $100.00 2.299 $247,000 98.42 $420 Conditional Puts - Death of holder 38148PGX9 0.16 05/09/17 2.728 $246,984 $243,085 ($3,899) SYNCHRONY BK RETAIL CTF DEP PROGR CD 245 2.400 04/07/22 NR NR 1.41% 3.75 $100.00 2.400 $245,000 98.74 $2,884 Conditional Puts - Death of holder - Restrict 87164XPZ3 0.16 05/09/17 2.734 $245,000 $241,908 ($3,092) MARYSVILLE MICH PUB SCHS DIST GO U Muni -Taxable MI 500 2.317 05/01/22 Aa1 2.86% 3.82 $98.85 2.565 $494,230 98.00 $4,924 TAXABLI Material Events 574446GV6 0.17 05/09/17 2.839 $494,230 $490,015 ($4,215) NEW YORK N Y CITY TRANSITIONAL FIN A Muni -Taxable NY 500 1.650 05/01/22 Aa1 AAA 2.78% 3.87 $99.43 1.771 $497,125 95.12 $3,506 Make Whole Call Only - Make Whole Call Exp 64971 WJ35 0.17 05/09/17 2.930 $497,125 $475,585 ($21,540) JP MORGAN CHASE BANK NA CD 245 1.250 05/31/22 NR NR 1.40% 3.05 $100.00 1.243 $245,000 98.07 $1,049 Callable 05/18@100 - Multi -Step Coupon - Co 48125Y21_7 0.11 05/09/17 2.277 $245,000 $240,279 ($4,721) FEDERAL HOME LN MTG CORP CALL STE Agency 1,000 2.100 07/27/22 Aaa AA+ 5.75% 3.62 $100.00 2.100 $1,000,000 98.38 $3,850 Callable 04/18@100 - Multi -Step Coupon 3134GBYN6 0.15 07/27/17 2.638 $1,000,000 $983,760 ($16,240) AMERICAN EXPRESS CENTURIAN BK CTF CD 245 2.350 08/08/22 NR NR 1.40% 4.08 $100.00 2.350 $245,000 97.61 $868 Conditional Puts - Death of holder - Restrict 02587DV47 0.19 08/08/17 2.939 $245,000 $239,142 ($5,858) FEDERAL HOME LOAN MORTGAGE CORP Agency 500 2.000 08/22/22 2.87% 3.24 $100.00 2.000 $500,000 98.12 $1,139 Callable 05/18@100 - Multi -Step Coupon 3134GBB27 0.12 08/22/17 2.692 $500,000 $490,590 ($9,410) ALLEGIANCE BK TEX HOUSTON ACQUIRE CD 245 2.200 11/03/22 NR NR 1.39% 4.35 $100.00 2.200 $245,000 97.38 $15 Conditional Puts - Death of holder - Restrict 01748DAY2 0.20 11/03/17 2.810 $245,000 $238,576 ($6,424) DISCOVER BK GREENWOOD DEL CD 245 2.450 11/18/22 NR NR 1.41% 4.29 $100.00 2.450 $245,000 98.43 $2,253 Conditional Puts - Death of holder 254672WU8 0.21 05/09/17 2.814 $245,000 $241,144 ($31856) Please see the last page of this report for detail. Page 35 of 39 CITY OF HUTCHINSON POSITION DETAIL as of 04/02/2018 Page 3 of 3 Please see the last page of this report for detail. Page 36 of 39 A Type St Qty Cpn Maturity 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 WELLS FARGO BANK NA 84 MO CD 245 1.650 11/23/22 NR NR 1.42% 2.07 $100.00 1.650 $245,000 99.40 $1,462 Callable 11/18@100 - Multi -Step Coupon - Co 94986TWE3 0.05 05/09/17 2.336 $245,000 $243,535 ($1,465) LIVE OAK BANKING COMPANY WILMINGT CD 245 2.500 12/13/23 NR NR 1.40% 5.29 $100.00 2.500 $245,000 97.88 $50 Conditional Puts - Death of holder 538036CZ5 0.30 12/13/17 2.904 $245,000 $239,813 ($5,187) COMMERCE CALIF CMNTY DEV COMMN S Muni -Taxable CA 500 3.000 08/01/24 AA 2.82% 5.66 $105.32 2.200 $526,595 96.49 $2,625 DID- XABLE -Material Events -AGMC, in 20056UAV6 AGMC 0.37 05/09/17 3.626 $523,485 $482,445 ($41,040) NEW YORK N Y CITY TRANSITIONAL FIN A Muni -Taxable NY 500 2.600 11/01/24 Aa1 AAA 2.82% 5.91 $97.35 2.998 $486,750 96.53 $5,525 Callable 11/22@100 -TAXABLE -Material Ev 64971QJ38 0.40 05/09/17 3.189 $486,750 $482,655 ($4,095) HSBC BANK USA, NATIONAL ASSOCIATIO CD 240 2.250 03/11/25 NR NR 1.39% 1.88 $100.00 2.249 $240,000 99.03 $355 Callable 03/20@100 - Multi -Step Coupon - Co 40434ASB6 0.05 05/09/17 2.765 $240,000 $237,679 ($2,321) Please see the last page of this report for detail. Page 36 of 39 ,M,0� HRA HUICHIN5OH HOUSING AND REOEVELOPtMMT AOTmOKITY Regular Board Meeting Tuesday, March 20, 2018, 7:00 AM Minutes 1. CALL TO ORDER: Chair Renee Lynn Johnson Kotlarz called the meeting to order. Members Present: Gary-Forcier, Eileen Henry, Steve Jensen and Nikki Willemssen. Staff Present: Jean Ward. 2. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON FEBRUARY 20, 2018 Nikki Williamson moved to approve the Minutes of the regular board meeting as written. Eileen Henry seconded and the motion carried unanimously. 3. FINANCIAL REPORTS a. Nikki Willemssen moved to approve City Center General Fund payments of $13,078.15 for checks 8918 to 8921. Gary Forcier seconded and the motion carried unanimously. b. Nikki Willemssen moved to approve City Center January and February 2018 financial statements. Gary Forcier seconded and the motion carried unanimously. c. Steve Jensen moved to approve Park Towers operating account payments of $24,678.41 for checks 14226 to 14251 and approval of Park Towers Security Account payments of $56.80 for check 1566. Eileen Henry seconded and the motion carried unanimously. d. Nikki Willemsen moved to approve December 31, 2017 Park Towers financial reports, insurance register and Payments in Lieu of Taxes Report. Steve Jensen seconded and the motion carried unanimously. 4. PARK TOWERS UPDATE a. Occupancy Report — 98% occupied. b. Park Towers' March Newsletter: FYI c. Steve Jensen moved to approve to award the contract for maintenance and cleaning services to Keri's Cleaning and Handy Man Services. Nikki Willemssen seconded and the motion carried unanimously. 5. CONSIDERATION OF REVISIONS TO CITY DEFERRED GRANT PROGRAM Jean Ward reviewed the Board the proposed changes to the City Deferred Grant Program. Steve Jensen moved to approve the revisions to the City Deferred Grant Program. Nikki Willemsen seconded and the motion carried unanimously. 6. COMMUNICATIONS a. Audit scheduled Thursday, March 22, 2018 b. RFPs for Park Tower's caulking project due back March 23, 2018 c. The HRA Board was informed that there will be a phone call on Wednesday, March 28'h regarding potential Work Force Housing Technical Assistance from Greater MN Housing Fund. In addition, it was decided to proceed with developing a workforce housing survey to gather data about workforce housing needs. March 20, 2018 Minutes Page l of 2 7. ADJOURNMENT Steve Jensen moved to adjourn and Gary Forcier seconded. There being no other business, Chair Renee Lynn Johnson Kotlarz declared the meeting adjourned. Recorded by Jean Ward, HRA Executive Director Gary Fotcier, Secretary/Treasurer March 20, 2018 Minutes Page 2 of 2 MINUTES HUTCHINSON PLANNING COMMISSION Tuesday, March 20, 2018 5:30 p.m. 1. CALL TO ORDER 5:30 P.M. The March 20, 2018 Planning Commission meeting was called to order by Chair Fahey at 5:30 p.m. Members in bold were present Chair Fahey, Vice Chair Wick, Commissioner Garberg, Commissioner Lofdahl, Commissioner Hantge and Commissioner Forcier. Also present were Dan Jochum, City Planner, Kent Exner, City Engineer, John Olson, City Public Works, John Paulson, City Environmental Specialist, Marc Sebora, City Attorney and Andrea Schwartz, City of Hutchinson Permit Technician 2. PLEDGE OF ALLEGIANCE 3. CONSENT AGENDA A. CONSIDERATION OF MINUTES DATED JANUARY 16, 2018. Motion by Commissioner Wirt, Second by Commissioner Lofdahl. Motion approved. Motion to Approve — Motion to Reject 4. PUBLIC HEARINGS A. CONSIDERATION OF A PRELIMINARY AND FINAL PLAT AND VACATION OF EASEMENT FOR GARBERS ADDITION TO FAIRWAY ESTATES, LOCATED AT 1424 AND 1428 HERITAGE AVE NW. Dan Jochum, City Planner addressed the Commission. Mr. Jochum reviewed the application as outlined in the Commission's packets. Mr. Jochum noted that these lots are in the Shoreland District, and with that only being able to cover 25% of the property with impervious surface. Making the lot larger will help with the size of the home being built on this lot and not going over the allowed percentage. Mr. Jochum reviewed the future assessment liability section of the staff report and noted to take off staff recommendation 94 knowing that this is currently a private street so assessments will not be affected by the size of these lots. Also to highlight staff recommendation 95, that a Gopher State One Call shall be made to make sure there are no utilities installed down the center of these 2 lots. Minutes Hutchinson Planning Commission March 20, 2018 Page 2 Commissioner Lofdahl questioned the SAC and WAC billing. Mr. Jochum noted that he had previously spoke to City Engineer Kent Exner and there will only be one SAC and WAC billing for the lot when it is combined. Motion by Commissioner Hantge, second by Commissioner Forcier to close hearing at 5:40 p.m. There were no public persons present at the meeting and no written correspondence sent to the City offices regarding this application. Motion by Commissioner Lofdahl to approve with staff recommendations # 1-5, eliminating 94. Second by Commissioner Garberg. Motion approved. Item will be on City Council consent agenda on 03/27/2018. Motion to close hearing — Motion to approve with staff recommendations — Motion to reject 5. NEW BUSINESS There was talk of the retaining wall on the Hotel Project in regard to the two walls having different design. There was nothing written in the permit issued by the Planning Commission. We will try to make note of this for future projects. 6. UNFINISHED BUSINESS 7. COMMUNICATION FROM STAFF A. Upcoming Meetings Dan Jochum noted that we have 2 applications for the April Planning Commission meeting at this time. 8. ADJOURNMENT Motion by Commissioner Wirt, Second by Commissioner Hantge to adjourn at 5:43 p.m.