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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
