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cp10-09-2018HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, OCTOBER 9, 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: Citypolicy andpractices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 5:30 P.M. (a) Approve the Council agenda and any agenda additions and/or corrections 2. INVOCATION — Faith Lutheran Church (The invocation is a voluntary expression of theprivate citizen, to and for the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 14954 — Resolution Accepting Donation from Walt and Lynne Clay ($500 to Hutchinson Police Department for Law Enforcement Memorial Park Fund) (b) Resolution No. 14957 — Resolution Accepting Donation from Hutchinson Rotary Foundation ($5000 to Hutchinson Parks Department for Rotary Park Play Structure) PUBLIC COMMENTS (T is 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 not a public hearing. If you have a question, concern or comment, please ask to be recognized by the mayor — state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of September 25, 2018 (b) Special Workshop of September 25, 2018 CONSENT AGENDA (The items iste or consi eration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed.) 7. APPROVAL OF CONSENT AGENDA I (a) Consideration for Approval of Issuing Parade Permit to Hutchinson High School on October 12, 2018, for Homecoming Parade (b) Consideration for Approval of Resolution No. 14959 - Resolution Appointing Additional Election Judge for General Election (c) Consideration for Approval of Resolution No. 14953 — Resolution to Sell Surplus Property at Auction (d) Consideration for Approval of Resolution No. 14958 — Resolution Activating Deferred Assessment (Assessment Rolls SA5067/SA5067A) (e) Consideration for Approval of Tigers After Dark/Octoberfest Celebration at Bobbing Bobber Brewing Company on October 12-14, 2018 CITY COUNCIL AGENDA OCTOBER 9, 2018 (f) Consideration for Approval of Spooky Sprint Event on October 27, 2018 (g) Consideration for Approval of Out -of -State Travel for Miles Seppelt to Attend the 2018 Mid - America Competitiveness Conference and Site Selector Forum in Chicago, Illinois from December 2-4, 2018 (h) Reappointment of Dave Skaar to Airport Commission to September 2021 (i) Claims, Appropriations and Contract Payments PUBLIC HEARINGS — 6:00 P.M. - NONE Xrpose o t is portion o t e agen a is to provi e the Council with information necessary to craft wise policy. items like monthly or annual reports and communications from other entities.) REVIEW OF RECENT SOUTHWEST CORRIDOR TRANSPORTATION COALITION ACTIVITIES 9. DISCUSSION OF INVOCATION SCHEDULE UNFINISHED BUSINESS 10. APPROVE/DENY ORDINANCE NO. 18-790 — AN ORDINANCE AMENDING SECTION 154.004 AND SECTION 154.064(C) OF CITY CODE ALLOWING DOG DAYCARE BOARDING FACILITIES BY CONDITIONAL USE PERMIT IN THE C-4 (FRINGE COMMERCIAL DISTRICT) AND AMENDING THE DEFINITION OF DOG DAYCARE TO SECTION 154.004 WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (SECOND READING AND ADOPTION) 11. APPROVE/DENY ORDINANCE NO. 18-791 — AN ORDINANCE EXTENDING THE CORPORATE LIMITS OF THE CITY OF HUTCHINSON TO INCLUDE CERTAIN LAND OWNED BY HUTCHINSON TECHNOLOGY INC AND UPONOR LOCATED IN HUTCHINSON TOWNSHIP, SECTION 32 WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (SECOND READING AND ADOPTION) NEW BUSINESS 12. APPROVE/DENY RESOLUTION NO. 14955 — RESOLUTION AUTHORIZING ISSUANCE OF $2,470,000 GENERAL OBLIGATION BONDS 2018A 13. APPROVE/DENY RESOLUTION NO. 14956 — RESOLUTION AUTHORIZINGISSUANCE OF $1,625,000 GENERAL OBLIGATION STORM WATER REVENUE BONDS, SERIES 2018B 14. APPROVE/DENY SANCTIONS TO BE IMPOSED AGAINST SONORA'S FOR LIQUOR LICENSE VIOLATION 15. APPROVE/DENY RESCHEDULING DECEMBER 25, 2018, CITY COUNCIL MEETING GOVERNANCE (T e purpose o t is portion of the agenda is to deal with organizational development issues, including policies, 2 CITY COUNCIL AGENDA OCTOBER 9, 2018 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 �a) Library Board Minutes b) Liquor Hutch Quarterly Report (c) Planning/Zoning/Building Department Quarterly Report NHSCELLANEOUS 17. STAFF UPDATES 18. COUNCIL/MAYOR UPDATE ADJOURNMENT CITY OF HUTCHINSON RESOLUTION NO. 14954 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 471.17-1 and WHEREAS, the following person has offered to contribute the cash amount set forth below to the city: Name of Donor Amount Donation Date Walter & Lynne Clay $500.00 9/21/2018 WHEREAS, such donation has been contributed to the Hutchinson Police department as a donation to the Law Enforcement Memorial Park fund. 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 9th day of October 2018. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor CITY OF HUTCHINSON RESOLUTION NO. 14957 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 471.17-1 and WHEREAS, the following person has offered to contribute the cash amount set forth below to the city: Name of Donor Amount Hutchinson Rotary Foundation $5,000.00 Donation Date 10/1 /2018 WHEREAS, such donation has been contributed to the Hutchinson Parks Department as a payment for the Rotary Park playstructure. 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 9th day of October 2018. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL MEETING NHNUTES TUESDAY, SEPTEMBER 25, 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: Citypolicy andpractices, inputfrom constituents, and other questions or information that has not yet been presented or discussed regarding an agenda item) 1. CALL MEETING TO ORDER — 5:30 P.M. Mayor Gary Forcier called the meeting to order. Members present were John Lofdahl, Steve Cook, Chad Czmowski and Mary Christensen. Others present were Matt Jaunich, City Administrator, Marc Sebora, City Attorney and Kent Exner, City Engineer (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Christensen, second by Cook, to approve agenda as presented. Motion carried unanimously. 2. INVOCATION — Vineyard United Methodist Church (The invocation is a voluntary expression of theprivate citizen, to and for the City Council, and is not intended to ajiliate the City Council with, or express the City Council's preference for, any religiouslspiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY Council Member Christensen thanked all those who took part of the cemetery tour held this past Sunday. (a) Resolution No. 14948 — Resolution Accepting Donation from Hutch Health Hospital Auxiliary ($1000 to Hutchinson Fire Department) Motion by Cook, second by Lofdahl, to approve Resolution No. 14948. 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 not a public hearing. If you have a question, concern or comment, please ask to e recognized by the mayor — state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speak for more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of September 11, 2018 (b) Special Workshop of September 11, 2018 Motion by Czmowski, second by Christensen, to approve minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items iste or consi eration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed.) 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of Lease Agreement with RD Machine for Hutchinson Enterprise Center CITY COUNCIL MINUTES SEPTEMBER 25, 2018 (b) Consideration for Approval of Out of State Travel for Police Chief Dan Hatten to Attend the International Chiefs of Police Association Training Conference in Orlando, Florida, from October 5 — 10, 2018 (c) Consideration for Approval of Resolution No. 14952 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit and Site Plan for a Drug Store in a C-4 Zoning District Located at 1460 Montreal Street SE with Favorable Planning Commission Recommendation (d) Consideration for Approval of Issuing Short -Term Gambling License to ISD 423 Foundation (e) Consideration for Approval of Improvement Project Change Orders and Supplemental Agreements 1. Change Order No. 1 — Letting No. 4, Project No. 18-04 (2018 Pavement Management Program) 2. Change Order No. 1 — Letting No. 10, Project No. 18-10 (Trail & Parking Improvements) 3. Change Order No. 1 — Letting No. 13, Project No. 18-13 (2018 Lift Station Improvements) (f) Claims, Appropriations and Contract Payments Motion by Lofdahl, second by Cook, to approve Consent Agenda. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. - NONE purpose of t is portion of the agenda is to provide the ounci with information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) UNFINISHED BUSINESS NEW BUSINESS 8. APPROVE/DENY AMENDING BOBBING BOBBER BREWING COMPANY'S TAPROOM LICENSE TO INCLUDE LIQUOR CONSUMPTION IN OUTSIDE SEATING AREA Matt Jaunich, City Administrator, explained that Bobbing Bobber Brewing Company has requested to amend their taproom license to allow for consumption of alcohol at picnic tables outside of their establishment. Motion by Czmowski, second by Lofdahl, to approve amending taproom license for Bobbing Bobber Brewing Company to include outside seating area. Council Member Cook noted that there is no identified designated area outside with delineation and asked if that should be physically marked in the area. Mayor Forcier and Council Member Czmowski noted that they were comfortable with the request and didn't feel that anything needed to be physically marked. Matt Jaunich noted that Bobbing Bobber Brewing Company will need to renew their license annually so if there are issues that would be a good time to address them. Motion carried unanimously. 9. APPROVE/DENY AGREEMENT FOR ENVIRONMENTAL PERMITTING LEGAL SERVICES Kent Exner, City Engineer, explained that in late June the City received notification from the MPCA regarding new proposed wastewater effluent limits that would be included in the reissuance of the City's NPDES wastewater discharge permit. The permit included limits for some parameters that were previously "monitor only" and did not have numeric limits. The monthly average Phosphorus limit being proposed was also much lower than the current limit. City staff has remained engaged with MPCA permitting staff to collect and review any pertinent information that 2 CITY COUNCIL MINUTES SEPTEMBER 25, 2018 affects the development of these limits. The City is a MESERB member which includes permit review services by Flaherty & Hood that is a high level analysis of the proposed permit limits and includes limited support in responding the MPCA's initial Permit Development letter. The MESERB review service does not include a full comprehensive delve into the data used to develop 7Q 10 flow. Staff believes it would be very beneficial to utilize the environmental permitting legal services of Flaherty & Hood for a not -to -exceed amount of $5000. This is the first step in what will be a lengthy permitting process. Additional technical support and further evaluation of the nutrient removal potential of the wastewater Vant will be needed to fully understand the options available to meet the final limits that have yet to e established. Motion by Cook, second by Lofdahl, to approve agreement for environmental permitting legal services. Motion carried unanimously. 10. APPROVE/DENY PROFESSIONAL SERVICES AGREEMENT WITH WSB & ASSOCIATES, INC. FOR LAKES AND RIVER BASIN PRELIMINARY ENGINEERING STUDY Kent Exner, City Engineer, noted that over the last two years staff has been working to analyze and assess the existing conditions of Hutchinson's public waters. These efforts included surveying the entire water body above the dam to where the river discharges to the lake west of the city. Data collected included depths, extent of vegetation growth and types, depth of sediment and its chemistry and a historical review of information related to the water bodies. John Paulson, Environmental Manager, presented before the Council. Mr. Paulson explained that the information collected has indicated that the public waters in Hutchinson could be improved for both recreational and environmental uses. The next step in project development is to conduct preliminary engineering that will involve a comprehensive evaluation of existing conditions, develop project goals and objectives and to prepare a preliminary concept plan and cost estimates. Upon completion of the study there will be a need to determine if further project development is desired. The next steps beyond this study effort would be to pursue funding opportunities and begin development of environmental assessment and/or impact statements. WSB is a leader in the development and delivery of these types of projects in recent years. The most recent project of note has been the Mill Pond Restoration in the City of Champlin. The proposed agreement with WSB is not -to -exceed $31,200. Motion by Cook, second by Czmowski, to approve professional services agreement with WSB & Associates, Inc. for lakes and river basin preliminary engineering study. Motion carried unanimously. 11. APPROVE/DENY ORDINANCE NO. 18-790 — AN ORDINANCE AMENDING SECTION 154.004 AND SECTION 154.064(C) OF CITY CODE ALLOWING DOG DAYCARE BOARDING FACILITIES BY CONDITIONAL USE PERMIT IN THE C-4 (FRINGE COMMERCIAL DISTRICT) AND AMENDING THE DEFINITION OF DOG DAYCARE TO SECTION 154.004 WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (WAIVE FIRST READING, SET SECOND READING AND ADOPTION FOR OCTOBER 9, 2018) Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that Dana's Dog Spa is requesting an amendment to the zoning ordinance to allow dog daycare boarding facilities by conditional use permit in the C-4 district. Mr. Jochum noted that there has been a demand within the last five years for dog boarding facilities that are much smaller in scale than a commercial kennel. The requester has been running a successful dog spa/grooming facility in Hutchinson for many years. The daycare/boarding concept is something that the requester has been seeing increased demand for over the past few years. The proposed ordinance amendment would allow up to 12 dogs on site at any given time for the purposes of the daycare/boarding portion of the business. The amendment requires indoor kennel CITY COUNCIL MINUTES SEPTEMBER 25, 2018 runs and does not allow outdoor kennel runs. A fenced outdoor exercise area would be required and any dogs outside need to be under the supervision of a staff person. In addition, dogs would not be allowed outside between 9:00 pm and 8:00 am unless there is an emergency for a sick dog or something similar. Mr. Jochum explained that staff feels dog daycare boarding facilities are very similar to the scope and size to what a veterinarian might have in a vet clinic located in a C-4 District. Staff feels this is a reasonable request and proposes the following ordinance amendment. The planning commission requested the hours be changed to no dogs outside between 10:00 pm and 7:00 am. Motion by Czmowski, second by Christensen, to waive first reading and set second reading and adoption of Ordinance No. 18-790 for October 9, 2018. Motion carried unanimously. 12. APPROVE/DENY ORDINANCE NO. 18-791 — AN ORDINANCE EXTENDING THE CORPORATE LIMITS OF THE CITY OF HUTCHINSON TO INCLUDE CERTAIN LAND OWNED BY HUTCHINSON TECHNOLOGY INC AND UPONOR LOCATED IN HUTCHINSON TOWNSHIP, SECTION 32 WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (WAIVE FIRST READING, SET SECOND READING AND ADOPTION FOR OCTOBER 9, 2018) Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that the property owners are requesting annexation of property for the purpose of a possible future public street in this location. The access road off Hwy 7 has historically been one of the primary access points to Hutchinson Technology Inc. Now that Uponor is in a former HTI property the volume of vehicles to both HTI and Uponor has increased. Annexing the land into city limits is the first stop required to turn the access road into a city street. A second separate process is required for the property owners and the City to move forward with the public street concept. Mr. Jochum noted that no tax payments are required to be paid to the township as the county does not have a value placed on this parcel. Motion by Lofdahl, second by Christensen, to waive first reading and set second reading and adoption of Ordinance No. 18-791 for October 9, 2018. Motion carried unanimously. 13. APPROVE/DENY RESOLUTION NO. 14949 — RESOLUTION SETTING HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY 2019 PRELIMINARY TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that this preliminary levy must beset by September 30, 2018, in accordance with state law. The HRA board is requesting a 2019 tax levy in the amount of $186,023 which is an 8.6% increase over the 2018 levy. This tan levy will fund the 2019 operations of the HRA. The HRA's 2018 tax levy requested was $1289 below the statutory limit. The HRA's statutory levy limit is based on .0185% of the City's 2018 Estimated Market Value of $1,005,529,700. Council Member Cook noted that under Other Expenses the Prof' ect fund has an asterisk next to it and shows an increase from last year. Council Member Cook inquired what the significance of the asterisk was. Mr. Reid noted he will find out the information from the HRA's Executive Director. Motion by Cook, second by Czmowski, to approve Resolution No. 14949, setting Hutchinson Housing & Redevelopment Authority 2019 Preliminary Tax Levy in the amount of $186,023. Motion carried unanimously. 14. APPROVE/DENY RESOLUTION NO. 14950 — RESOLUTION SETTING HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY 2019 PRELIMINARY TAX LEVY Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that this preliminary levy .19 CITY COUNCIL MINUTES SEPTEMBER 25, 2018 also must beset by September 30, 2018, in accordance with state law. The EDA board is requesting a 2019 tax levy in the amount of $182,303 which is a 7.7% increase over the 2018 levy. This tax levy will fund the 2019 operations of the EDA. The amount being requested is the statutory limit allowed by law. The EDA's statutory levy limit is based on .01813% of the City's 2018 Estimated Market Value of $1,005,529,700. Motion by Czmowski, second by Christensen, to approve Resolution No. 14950, setting Hutchinson Economic Development Authority 2019 Preliminary Tax Levy in the amount of $182,303. Motion carried unanimously. 15. APPROVE/DENY RESOLUTION NO. 14951 — RESOLUTION APPROVING THE GENERAL FUND AND DEBT SERVICE FUND PRELIMINARY 2019 TAX LEVIES Andy Reid, Finance Director, presented before the Council. Mr. Reid explained that the City must certify a preliminary 2019 tax levy to McLeod County by September 30, 2018, for the general fund and debt service funds. The final tax levy will be set in December. Mr. Reid reminded the Council that at the workshop held on September 11, 20187, the total tax levy was projected to increase 3.1% consisting of a 4.5% general fund levy increase and no increase to the debt levy. The general fund budget is currently balanced with the 4.5% levy increase. Since the workshop, staff has received the estimated 2019 tax capacity from the county, totaling $10,893,013. This represents an 8.9% increase over 2018 and the workshop presentation included a conservative 3% increase. The 8.9% increase is very positive as the City is starting to see new value added to its tax base. Mr. Reid provided a revised analysis of the tax impact on the median home value. A 3.1% total tax levy increase results in a 3.8% reduction to the tax rate. Staff also adjusted the median home value up to $160,000 was discussed at the workshop. The increased tax capacity essentially offsets the increased home valuation. The median home could see a $26 increase in City taxes with a 3.1% levy increase. The preliminary budget includes a 2% shift in the pay grid, a 5% increase in workers compensation rates and no increase in the health premiums. There will be minor increases to dental, life and long term disability rates for the final budget. Impact from the open enrollment for health and dental coverage will also be known for the final budget. The debt levy remains flat since the City is at the current target levy of $2,200,000 per the debt management plan. The revised debt plan calls for a $400,000 per year increase in funding for street improvements, starting in 2016, but the debt tax levy will remain at $2.2 million until 2023, at which point moderate increases will be needed to reach the new target debt levy of $2.6 million in 2032. Motion by Lofdahl, second by Cook, to approve Resolution No. 14951, setting City of Hutchinson total tax levy in the amount of $7,332,849. Motion carried unanimously. 16. APPROVE/DENY SETTING TRUTH -IN -TAXATION HEARING FOR DECEMBER 4, 2018, AT 6:00 P.M. Motion by Christensen, second by Lofdahl, to set truth -in -taxation hearing for December 4, 2018, at 6:00 p.m. Motion carried unanimously. 17. APPROVE/DENY SETTING HEARING BEFORE THE COUNCIL REQUESTED BY PETER NEUBAUER TO CHALLENGE DENIAL OF FOOD VENDOR LICENSE Matt Jaunich, City Administrator, reminded the Council that at the last City Council meeting Peter Neubauer's food vendor license was denied. Per City Code, the applicant has a right to a hearing before the Council to challenge the denial. Motion by Czmowski, second by Lofdahl, to set hearing for October 23, 2018, at 4:00 p.m. before the Council as requested by Peter Neubauer to challenge denial of food vendor license. Motion carried unanimously. GOVERNANCE (The purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 5 CITY COUNCIL MINUTES SEPTEMBER 25, 2018 18. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) Tall Grass/Noxious Weed Monthly Report for August 2018 b) Hutchinson Housing & Redevelopment Authority Board Minutes from August 21, 2018 �c) City of Hutchinson Financial Report and Investment Report for August 2018 d) Planning Commission Minutes from August 21, 2018 MISCELLANEOUS 19. STAFF UPDATES Kent Exner — Mr. Exner provided some project updates: 2nd Avenue Bridge is still pushing ahead — inclement weather has delayed the proj ect a bit with the bridge opening anticipated for October 5, 2018; Century Avenue Phase 3 is in process; Pavement Management Program is delayed due to the weather and the soils are very wet; South Central Drainage Area Phase 1 — public open house/neighborhood meeting next Wednesday at the City Center — Mr. Exner noted that the ponding in this area will most likely be similar to the pond at Northwoods Park; Leaf vacuuming starts October 9d' Matt Jaunich — hard good pick up this Saturday; Creekside open house this Thursday from 4:00-7:00 pm 20. COUNCIL/MAYOR UPDATE Steve Cook — Council Member Cook noted that he has been contacted regarding South Grade Road bridge on the south side where people can walk down to go fishing. He asked if more gravel could be laid down at the base where people stand/sit to fish. Chad Czmowski — Council Member Czmowski noted that the second meeting in December is scheduled for December 25, 2018, Christmas Day, and he suggested that discussions begin about canceling it or rescheduling. Matt Jaunich noted that topic will be on a Council agenda in October. Council Member Czmowski also noted for those that wish to take the survey regarding the City's park system, there is still a little bit of time. Mary Christensen — Council Member Christensen reminded residents that this Saturday is the hard goods pick up; she also noted that she, the mayor and Matt Jaunich will be attending a LMC regional meeting next week; Christensen also asked if the trees/limbs are going to be cleaned up before the snow flies and the freeze occurs. Kent Exner noted that the flow is high at this time and clean up could occur naturally. Exner explained that this area is mother nature's spillway and he asked of the Council how proactive they would like staff to be on cleaning up this area. Exner noted that of course if there is garbage or debris, that would be cleaned up, but his feeling is this area is mother nature's area of trees and branches. The Council felt that if the area gets heavily filled with trees and limbs then staff should thin the area out. Exner proposed that we see what the winter/spring brings for the area being cleaned up naturally, and if the area seems to be too thick come next summer, staff will take care of thinning the area out. John Lofdahl — Council Member Lofdahl noted that the property at 141 5d' Avenue NE has been removed. Lofdahl also noted that emerald ash borer is in Wright County and he feels that the City might want to spend more money on that front since it is getting closer to Hutchinson. Gary Forcier — Mayor Forcier noted that Dave Skaar's term is up on the Airport Commission and he is eligible for reappointment. If there are no objections, Mayor Forcier intends to reappoint him at the next meeting. ADJOURNMENT Motion by Czmowski, second by Lofdahl, to adjourn at 6:55 p.m. Motion carried unanimously. rol HUTCHINSON CITY COUNCIL SPECIAL WORKSHOP MEETING MINUTES TUESDAY, SEPTEMBER 25, 2018, AT 4:30 PM CITY CENTER — COUNCIL CHAMBERS Call to Order Mayor Forcier called the meeting to order. Members present were Mary Christensen, Steve Cook, Chad Czmowski and John Lofdahl. Other present was Matt Jaunich, City Administrator DISCUSSION/REVIEW ITEMS 1. Coalition of Greater Minnesota Cities Annual Update Bradley Peterson, Coalition of Greater Minnesota Cities, presented before the Council. Mr. Peterson updated the Council on activities of the CGMC throughout the year. Mr. Peterson reminded the Council that the CGMC represents 97 cities across the state in the areas of LGA/property taxes, economic development, annexation and land use, transportation and environmental regulation. Mr. Peterson noted that the legislature's to-do list during the short session had a significant focus on the state's response to federal tax changes made at the end of 2017. Other focuses were on the need for a significant bonding bill, the supplemental budget with a $329 million surplus and the pension bill. Mr. Peterson also noted many obstacles that barred a smooth session. The strategy and goals of the CGMC related to the legislature's focus on the bonding bill and positioning issues for elections and the 2019 session included: bonding bill focused on water and wastewater infrastructure; continue to educate legislators on the high cost of regulatory compliance; continue LGA advocacy; monitor Corridors of Commerce awards for fairness toward Greater Minnesota; continue city -street funding advocacy and highlight child care shortage issue and begin to advance solutions. The CGMC did advance water and wastewater infrastructure by gaining the largest amount of PFA funding in 2017 and for 2018 proposed $167 million for PFA grant and loan programs. In addition a supplemental grant program was established to help pay high costs where PFA programs are not adequate. The current PFA grant programs are capped by a dollar amount or a total percentage of the project which often leaves cities trying to figure out how to pay high cost even with grant money from the state. The CGMC developed a supplemental grant program whereby the State pays at least half of the project cost or buys down project cost so rates are no more than two times the metro average, whichever is more. Mr. Peterson outlined the lobbying/media efforts of the CGMC to advance this issue. The outcomes of the wastewater infrastructure included $123 million in the bonding bill; funding included new appropriation bonds backed by the Environment and Natural Resources Trust Fund; despite significant interest from legislature, administration opposition killed the supplemental grant program. Another notable topic at the legislature was transportation. Mr. Peterson explained that the House and Senate took different approaches to transportation in the supplemental budget. The Senate expressed no funding for roads and the House expressed funding for roads out of the surplus budget. The CGMC supported the House bill which included ongoing funding for city streets for small cities and included $155 million for Corridors of Commerce. There was a proposed constitutional amendment to dedicate a portion of sales tax attributable to sales from auto parts to roads and bridges; approximately $300 million a year would be taken from the general fund; included new dedication for small -city streets; the amendment was chief authored by House and Senate transportation chairs. It was opposed by CGMC, education, health and human services, public employee unions. The amendment was passed in the House but stalled in Senate Tax Committee. Mr. Peterson also noted that in 2017 $400 million was appropriated to Corridors program with direction for MnDOT to come up with more transparent, objective, criteria -driven process for project selection. The CGMC submitted comments on draft scoring system — some of which were adopted, many of which were not. MnDOT announced their projects on May 1st CGMC was severely critical of MnDOT's project selection as well as greater Minnesota's media. CGMC and other groups are working on Corridors provision in bonding bill to direct funds to next highest scoring Greater Minnesota projects. $400 million was allocated in the bonding bill. Mr. Peterson noted that the process reveals flaws in the scoring system. Mr. Peterson then reviewed the LGA and tax bill. The federal conformity was a significant focus of tax committees and the governor. CGMC's goal is to get the LGA allocation back to the 2002 level which would require a $30.5 million increase. Another issue that CGMC has been working on is child care. The CGMC and its sister organization, the Greater Minnesota Partnership, worked with stakeholders to bring attention to the growing child care shortage — and its impact on economic growth. In 2018, the CGMC and GMNP advocated for grant funding to expand/build child care facilities, and train more child care providers. Funding for childcare grant program contained in vetoed supplemental budget. Mr. Peterson spoke about the Greater Minnesota Business Development Public Infrastructure Grant Program. In 2017 $12 million was allocated to the program. By the beginning of the 2018 session half of the money was already spoken for. CGMC sponsored a bill for $20 million, however $5 million was secured in the bonding bill. Mr. Peterson spoke about 2019 and significant changes to come with a new governor, the election in the House could flip the majority, the Senate special election could flip the majority, it's a budget year and it is hard to predict surplus or deficit at this point. Mr. Peterson explained how the CGMC has been and will be active in the election season The opportunities for next session include a push for LGA increase; develop comprehensive package to address child care shortage; continue to make water and wastewater infrastructure a priority; and permanent additional funding for city streets. Mr. Peterson reviewed upcoming events such as the Fall Conference in Alexandria in November; Legislative Action Day in St. Paul in January and Summer Conference in Bemidji in July. Discussion was held regarding affordable workforce housing and MPCA permit requirements for water/wastewater. Morgan Baum asked if the CGMC had a template that could be used by the City when they go out to businesses to inquire about child care needs. Peterson noted that First Children's Finance is a great agency to work with on this issue. Motion by Czmowski, second by Christensen, to adjourn at 5:25 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Matthew Jaunich Mayor City Administrator HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Homecoming Parade Permit Department: Administration LICENSE SECTION Meeting Date: 10/9/2018 Application Complete Y, Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff Consent Agenda Time Requested (Minutes): License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The City has received a parade permit application from the Hutchinson High School in reference to the 2018 Homecoming Parade. The Annual Homecoming Parade will be held on Friday October 12, 2018. The parade will go from the Middle School Parking lot on South Grade Road then along School Road to the High School parking lot. This request requires South Grade Rd between Dale St and School Rd to be closed, School Rd between South Grade Rd and Roberts Rd between the hours of 12:30 pm and 1:30 pm for this event. The police department has reviewed the application and has no concerns. BOARD ACTION REQUESTED: Approve issuing parade permit to Hutchinson High School on October 12, 2018. Fiscal Impact: $ 500.00 Funding Source: Police FTE Impact: 4.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: C11of I I I Hassan Street Southeast Hutchinson, MN 55350 020] 587-5151/Fax: (320) 234-4240 City of Hutchinson APPLICATION FOR PARADE PERMIT (Under Ordinance No. 71.01) Permit Fee: $30 (short term) Date Received: All applications most be received at least 30 days before event in order to be considered Ur,amF tlon lntomintloll 1ns(YN 1 �7 pa '- li0 Crnre , Oagcr Galion Address Authorized Officer and Parade Chairman Information Officer Name Ina +a. &� NW K+- 11n Residence Address City Parade Residence Address rarane lntormation Parade Date; AD 1 Location and Description of Assembly Area: Nance Starting Time of Parade: ',�90 Starting Point of Parade: ; kku. S kot Route of Parade Travel: S o C r k\ .-i- :Z- 1. 0 0 r_ - -_ J) Phone Ni i m& r Skate zip r- Phone Number s 3S State zip Phone Muniber 001 Slate zip i Assembly Time: cl--SC k 1 r 00 Estimated Time of Pare: Ending Point of Parade: 5 Approximate Number of Units, Animals, and Vehicles whicl will constitu Parade: Type nd Description of Animals and Vehicles: Maximum Interval of Space to Mainta ed Between Units: DQ Maximum Length of Parade; I { - { / Minimum and Maximum Speed of Parade: MPH Portion of Street Width Traversed: Citi• ofHwehimon Application far Parade Permit Page ? of 2 l he following items need to be completed and/or attached in order for the application to be processed: Per niit fee paid in full (check or money order): ❑ yes ❑ no Permit Meted in full and signed: ❑ yes ❑ no I declare that the information I have provided on this application is truthful, and 1 authorize the City of Hutchinson to investigate;he inforniation submitted. officer of 07 gankation or parade chairman Internal Use Police IL approved ❑ denied Notes: City Council ❑ approved ❑ denied Notes: 9/0� t /e Dare HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Res. No. 14959 - Appointing Additional Election Judge for General Election Department: Administration LICENSE SECTION Meeting Date: 10/9/2018 Application Complete Contact: Melissa Starke Agenda Item Type: Presenter: Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: As we all know, the State and City General Election is being held November 6, 2018, at the Hutchinson Recreation Center located at 900 Harrington Street. In accordance with State law, cities must appoint election judges to serve at the election. Although the City Council did appoint election judges for the General Election in July, it has been determined that an additional judge will be required. Therefore, the attached Resolution is attached to do so. BOARD ACTION REQUESTED: Approve Resolution No. 14959 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. 14959 RESOLUTION APPOINTING ADDITIONAL JUDGE FOR THE 2018 CITY OF HUTCHINSON AND STATE GENERAL ELECTION WHEREAS, Chapter 204B, Section 204B.21, Subd. 2 of the Laws of Minnesota states that the governing body of any municipality may by resolution authorize the appointment of additional election judges 25 days before the City and State General Election. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. That an additional election judge will be required for the general election being held on November 6, 2018, and is hereby appointed in accordance with the attached list. 2. The City Council also authorizes the City Administrator to make emergency appointments of election judges to fill last-minute vacancies. Adopted by the City Council this 9th day of October, 2018. Gary T. Forcier, Mayor ATTEST: Matthew Jaunich, City Administrator CITY OF HUTCHINSON AND STATE GENERAL ELECTION 2018 ADDITIONAL ELECTION JUDGE CALYN LIESTMAN HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-ft Agenda Item: Consideration of Resolution 14953 - Sale of surplus property at auction Department: PW/Eng LICENSE SECTION Meeting Date: 10/9/2018 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: The following vehicles/equipment have been replaced, leaving the existing units as surplus property, including: 1. WWTF-716-TK5, a 1994 Chevrolet pickup VIN#1GCEC14Z5RZ152716 2. STWT-014-HEQ, a 2010 ODB leaf collector VIN#1Z9PS2423AR168014 Public Works staff recommends offering these two units for sale at auction. Upon approval, Public Works staff will be working with Fahey Sales to sell these units at auction later this year. Proceeds for the 1994 Chevrolet pickup will be deposited into the Sewer Fund (602-4945) Proceeds for the 2010 ODB leaf collector will be deposited into the Storm Water Fund (652-4946) BOARD ACTION REQUESTED: Approval of Resolution Number 14953 Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14953 RESOLUTION TO SELL AT AUCTION SURPLUSPROPERTY WHEREAS, the Hutchinson Public Works Department has accumulated surplus property; and WHEREAS, the Hutchinson City Code provides pursuant, to Section 91, Subdivision 3, Paragraph C, for the sale at auction of surplus City property; and WHEREAS, the Public Works Department has determined that it is in possession of surplus property. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, NHNNESOTA: That the following surplus City property be sold at auction and proceeds from the sale be credited to the appropriate account: 1. WWTF-716-TK5, a 1994 Chevrolet pickup VIN#1GCEC14Z5RZ152716 2. STWT-014-HEQ, a 2010 ODB leaf collector VIN#1Z9PS2423AR168014 Adopted by the City Council this 9th day of October, 2018. Gary Forcier, Mayor ATTEST: Matt Jaunich, City Administrator HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Activation of Deferred Assessments Department: PW/Eng LICENSE SECTION Meeting Date: 10/9/2018 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: This deferred assessment, as shown on Resolution No. 14958, is being activated. The deferral term has expired due to the sale of the property. The original terms for the deferral were, "Deferred until developed or sold". City staff requests that the City Council approve Resolution No. 14625 for activation of these assessments. BOARD ACTION REQUESTED: Approval of Resolution Activating Deferred Assessment. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 14958 RESOLUTION ACTIVATING DEFERRED ASSESSMENT ASSESSMENT ROLLS SA50671SA5067A WHEREAS, the following properties have assessments in deferred status: SA Roll City PID County PID SA5067A 36-117-30-10-0010 23.036.2000 AND WHEREAS, the deferral period has expired, Interest Original Accrued Activation Rate Assess. Interest Amount 4.68% $36,931.05 $21,117.43 $58,048.48 AND WHEREAS, the City proposes to activate said assessment, with payments over a ten (10 year period at the original interest rate or 5%, whichever is less, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such proposed activation of said assessments is hereby approved, and shall constitute a special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable in equal annual installments extending over period often (10) years, the first of the installments to be payable on or before the first Monday in January, 2019 and shall bear interest at the per annum rate shown above as set down by the adoption of this resolution. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City Administrator, except that no interest shall be charged if the entire assessment is paid by the 15th day of November, 2018; and owner may, at any time thereafter, pay to the City Administrator the entire amount of the assessment remaining unpaid, with interest accrued to the 31 st day of December, of the year in which such payment is made. Such payment must be made before November 15, or interest will be charged through December 31, of the next succeeding year. 4. The Administrator shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County, and such assessment shall be collected and paid over in the same manner as other municipal taxes. Adopted by the Council this 9th day of October 2018. Mayor, Gary Forcier City Administrator, Matthew Jaunich HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: 313C 1st Annual Oktoberfest Department: Police LICENSE SECTION Meeting Date: 10/9/2018 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: Bobbing Bobber Brewing Company is planning on having a special event weekend at Bobbing Bobber Brewing Company (313C) during the weekend of Friday October 12th, Saturday October 13th and Sunday October 14th. The events and hours would be as follow: Friday October 12th, 8-11 PM -Tigers After Dark, proceeds benefit the ISO 423 Foundation Saturday October 13th, 12-11 PM, 313C Oktoberfest Sunday October 14th, 12-6PM, 313C Oktoberfest 313C will have a 40x8O' tent abutting the south side of the facility. This tent will be surrounded by snow fencing providing a perimeter to keep our guests within a boundary. 313C will ensure only 21 and above are served by having 313C staff at the two entry points checking ID's and issuing wristbands. The staff will only serve guests with a valid wristband and there will be a different wristband color for each day of the weekend. There is live music scheduled throughout the weekend and will alternate between inside and outside under the tent. 313C is seeking approval for amplified music outside under the tent until 11 PM on Friday and Saturday night. 313C has agreed to contact the immediate neighbors to make them aware of this event and letting them know they will be out cleaning up any post weekend trash near their property on Monday. 313C will also have two food trucks on site, Lunch Lee's and Taqueria Del Buen Pastor, both licensed by the City of Hutchinson. 313C will staff additional security personnel on -site throughout the weekend. Additionally, 313C is working with Hutchinsqn Police Services for Police personnel for the event. 313C is requesting to have amplified music past the hours of 10:00 pm on Friday October 12th and Saturday October 13th, and to extent their current liquor license to include the tented area adjacent to the south side of the building for this weekend only. 313C would like to Thank the City Council in advance for your consideration. There is a map attached for reference to the event plans. BOARD ACTION REQUESTED: Recommend Approval Fiscal Impact: $ 0.00 Funding Source: Bobbing Bobber Brewing Co. FTE Impact: 6.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: City of Hutchinson Special Event Planning Form This form is intended to assist event organizers and the City of Hutchinson with proper planning of an event that is outside the day-to-day actives of our city. This work sheet is the first step in the planning and organization of an event. Completion of this form does not represent approval, but as a way for city directors, the city administrator and ultimately the City Council to all be aware of the proposed event. In all cases, the City Council or their designee has the final approve of the event. Please answer all applicable question with as much detail as possible, and return to the Hutchinson Police Department Attn. Special Events Coordinator. Nature of event, (i.e. outdoor music, road race, block party etc...). Also, indicate if the Event will be advertised under a specific title: This will be a 3 day event, 10/12, 10/13, 10/14. The 12t" will be for Tigers After Dark and event related to the Hutchinson High School Homecoming. The 13 and 14 will be an October felt celebration. These events will occur both inside and outside the building. There will be a large tent located on the south side of the building directly adjacent to the building. The entire tent area will be secure with perimeter fencing to contact all customers either in the building or underneath the tent. There will be live music all 3 days. Point of Contact individual requesting city approval for the event): Name: Dan Hart Adress: 900 highway 15 S. Hutchinson Minnesota Phone # (320)455-4999 Location of Event: Bobbing Bobber Brewing Co. 900 highway 15 S. Hutchinson Minnesota Estimated number of people attending event: 1000 throughout the weekend Will Alcohol be served at this event? Yes, Bobbing Bobber beer only. if so, who will be serving the alcohol and has a liquor license been obtained? Bobbing Bobber Brewing staff. Yes, the Brewery has a valid liquor license Time of Event: Friday October 12th the event will be from 8:00 pm to 11:00 pm Saturday October 13th the event will be from 12:00 pm to 11:00 pm Sunday October 14th the event will be from 12:00 pm to 6:00 pm. Route or Boundaries of Event: Within the Bobbing Bobber Property, specifically in the building and under the tent located on the south side of the building. See attached map. If an outdoor setting with alcohol will a fence be used: Yes, see attached map. How will over 21 serving be insured? At each entry point, 2 staff members will be checking ID's and issuing wristbands. Wristbands will be checked by Bobbing Bobber staff upon serving request. What is the security plan for the event? (Note: Hutchinson Police Services does provide event security and depending on the event may require it. The fee for HPD security is determined at the City Council level with the annual fee schedule. Please inquire far the current rate.) Since opening in May of 2018, we have not had any security incidents at the Brewery. That said, we do take security seriously and want to prevent any incidents on this weekend. Part of our security will include the above -mentioned ID/wristband protocol and fencing around the perimeter of the tent. We also obviously reserve and have the right to refuse any patron who is overly intoxicated. Budgeting for security personnel is a concern to us. if possible, we would like to some security in-house to help alleviate some costs or have some combination of in-house security and Hutchinson Police Services. We are willing to staff 2 security personnel of our own throughout the weekend and supplement as recommended with the Hutchinson Police Services Please provide maps, drawing and other applicable materials when submitting this application: Review and recommendation: Police Department: Authorizing Signature Parks Department: C:2E—ove-D Deny Approve Deny Authorizing Signature: i6�A Street Department: Approve Deny Authorizing Signature: AI/A City Administration: Authorizing Signature: City Council: Authorizing Signature: Approve Deny Approve Deny w w Ix m im k W w �e uu Z W Qm �u �w Z❑ w" Ll aooa a oa u � u D o � 0 LLLL ❑ U. I co x h 0 NN Ix 0 °a ~ Z w 00 0 S:d:llH INIW NONE W u z W LL 0 z W �o W W � Z W Q 2 GC u H 0 Z p w — HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: 5K family Run/Walk (Spooky Sprint) Department: Police LICENSE SECTION Meeting Date: 10/9/2018 Application Complete Yes Contact: Daniel T. Hatten Agenda Item Type: Presenter: Daniel T. Hatten Reviewed by Staff Consent Agenda Time Requested (Minutes): 2 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The 5K family Run/Walk Saturday October 27th, 2018. They are in the planning stages for a 5k (3.1 mile) family fun run and walk to be staged in Hutchinson with a start time of 9AM. The proceeds of this run will go to the REACH program at the Hutchinson High School. They want to take advantage of a great resource in town, the area around the Library (Library Square). As such, they would like to start and end this race there, on 1st Ave SE. They realize that having a 3 mile run throughout the city may cause disruption, so they are attempting to run on city streets for about 20% of the total run distance. The remainder would be run on the Luce Line Trail. Their goal is to offer 2 runs, a 5k run and walk, and a'h mile dash for children. The 'h mile dash will begin at 9:15AM, the 5k run and walk will begin at 9:30AM. Each participant will be required to sign a waiver stating the following: "I am properly trained and enter this walk/run totally at my own risk and hereby waive all claims that I or my heirs may have against all sponsors, walk/run directors and all others associated with this walk/run, for any injuries or problems I may sustain, regardless of any negligence. I am totally responsible for my safety and any injury I may suffer." The Hutchinson Police Department has reviewed and approved the proposed route. The organizers are seeking approval for closure of 1st Ave SE for this run. They will also be running down Adams Street towards the Luce Line, Adams will not need to be closed off. We will be using cones to create a separation lane on Adams. SE 1 st Ave SW will be closed from Main St to Adams St during the hours of 6:00 am until 12:00 pm or as determined by the Hutchinson Police Dept on Saturday October 27th, 2018. The businesses impacted by this temporary closure will be notified and their customers impacted by this closure will be given access to the businesses during the street closure. They understand there may be costs associated with this Traffic Control and have accounted for this in our budget. We are looking forward to this annual event in Hutchinson, and to continuing it in the years to come. BOARD ACTION REQUESTED: I recommend approval. Fiscal Impact: $ 0.00 Funding Source: 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: f": r ..�c.y YI C 'L = 3 .SC v a vn a m m 12 a 02 100 wF a a v OL M41fl 3i !1 F �{ T� Con SY i4r1' C: i+i �i 7iW � i Ixr x � z } A + a � s tIM mt t { �: It a 2nroa a `� Mor:roe SI SE Muit!ua i L County Hwy 25 N #w m T 9~fx,¢ E ... 'rm 0Rlf" 5! SE Pe S£ _ +s AAaln $I N 0 J: t• :i A Franwrn SF SVJ Granklm SS SW = It y ¢ U � V a G3rn St NW Glan 51 SW " Gk �i Y/ _ Pe:) w Growc St NaY Grpvp St SW O � x Q LyitP Fib SW Lyn later ❑Al i q N v � S ti� F a a y r n 010 L NNi a 0 ? i N N N t t N $Yr y N r 1 a gg Lmc s: sw a a a k LorS HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: REQUEST FOR OUT OF STATE TRAVEL FOR MILES SEPPELT TO ATTEND Department: EDA LICENSE SECTION Meeting Date: 10/9/2018 Application Complete Contact: Miles R. Seppelt Agenda Item Type: Presenter: none Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: I am requesting City Council permission for out-of-state travel on December 2-4, 2018 to attend the 2018 Mid -America Competitiveness Conference and Site Selector Forum in Chicago. Hutchinson is being recognized for its skilled workforce development efforts at the conference. In addition, I will be attending sessions on: - Future prospects for workforce training - Best ways to market a community from a site selector perspective - Impact of the labor shortage in the site selection decision for foreign direct investment Workshop fee and travel expenses are covered by the by the EDA's travel/school/conference budget line item. If you have any questions or need additional information, please give me a call anytime at 234-4223. BOARD ACTION REQUESTED: Approval for out-of-state travel 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: CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 9/26/18 - 10/09/18 Check Date ------------- ------ 09/28/2018 Check ---------- EFT789 Vendor Name ------------------------------------------------------- EFTPS Description --------------------------------------------------------------- PAYROLL 9/9 - 9/22/2018 Amount -------------------- 61,512.36 09/28/2018 EFT790 MN Dept of Revenue PAYROLL 9/9 - 9/22/2018 12,674.73 09/28/2018 EFT791 Provident Life PAYROLL 9/9 - 9/22/2018 703.64 09/28/2018 EFT792 PERA PAYROLL 9/9 - 9/22/2018 50,398.04 09/28/2018 EFT793 TASC-Flex PAYROLL 9/9 - 9/22/2018 1,816.06 09/28/2018 EFT794 TASC-H S A PAYROLL 9/9 - 9/22/2018 12,794.36 09/28/2018 EFT795 ICMA PAYROLL 9/9 - 9/22/2018 2,448.56 09/28/2018 EFT796 VOYA PAYROLL 9/9 - 9/22/2018 740.00 09/28/2018 EFT797 MNDCP PAYROLL 9/9 - 9/22/2018 305.00 09/28/2018 202760 MNPEA PAYROLL 9/9 - 9/22/2018 546.00 09/28/2018 202761 UNUM Life Insurance PAYROLL 9/9 - 9/22/2018 1,045.90 09/28/2018 202762 HART PAYROLL 9/9 - 9/22/2018 566.37 10/09/2018 202763 48FORTY SOLUTIONS, LLC PALLETS FOR CREEKSIDE OPERATIONS 3,820.00 10/09/2018 202764 A & K REPAIR, INC. REPAIR LIGHT TOWER GENERATOR - CREEKSIDE 169.95 10/09/2018 202765 ACE HARDWARE VARIOUS R&M SUPPLIES 766.99 10/09/2018 202766 ADAMS, DALLAS REISSUE: 2016 CREEKSIDE MAIL -IN REBATE 6.00 10/09/2018 202767 ADEL, JEAN REISSUE: 2015 CREEKSIDE MAIL -IN REBATE 6.00 10/09/2018 202768 AEM MECHANICAL SERVICES INC REPLACE COMPRESSOR AT AIRPORT 2,092.98 10/09/2018 202769 AHLGREN ELECTRIC ELECTRICAL REPAIRS AT VARIOUS PARK LOCATIONS 347.02 10/09/2018 202770 ALLINA HEALTH SYSTEM AED FOR USE AT BALLFIELD 1,350.00 10/09/2018 202771 AMERIPRIDE SERVICES TOWEL BAR, MOPS, MATS - LIQUOR STORE 116.73 10/09/2018 202772 ARCTIC GLACIER USA INC. SEPTEMBER COST OF GOODS - LIQUOR 739.24 10/09/2018 202773 ARNESON DISTRIBUTING CO SEPTEMBER COST OF GOODS - LIQUOR 641.50 10/09/2018 202774 ARROW TERMINAL LLC VARIOUS R&M TOOLS - STREETS 329.15 10/09/2018 202775 ARTISAN BEER COMPANY SEPTEMBER COST OF GOODS - LIQUOR 1,257.50 10/09/2018 202776 AUTO VALUE - GLENCOE VARIOUS AUTO R&M SUPPLIES 208.49 10/09/2018 202777 B & C PLUMBING & HEATING INC FALL SERVICE - EVENT CTR, LIBRARY, POLICE 2,089.10 10/09/2018 202778 BACHMAN, KATHY REISSUE: 2016 CREEKSIDE MAIL -IN REBATE 12.00 10/09/2018 202779 BELLBOY CORP SEPTEMBER COST OF GOODS - LIQUOR 4,172.78 10/09/2018 202780 BERNICK'S SEPTEMBER COST OF GOODS - LIQUOR 315.89 10/09/2018 202781 BLUE VALLEY SOD PEAT FOR CREEKSIDE BAGGING 1,710.00 10/09/2018 202782 BOLTON & MENK INC. 2018 AIRPORT ZONING UPDATE 14,160.00 10/09/2018 202783 BOYER TRUCKS BRACKET FOR STREETS TRUCK 212.73 10/09/2018 202784 BRADLEY SECURITY LLC SERVICE ON DOORS AT POLICE AND REC CENTER 415.50 10/09/2018 202785 BREAKTHRU BEVERAGE SEPTEMBER COST OF GOODS - LIQUOR 4,217.24 10/09/2018 202786 BRIAN JONES COACHING REFUND 30.00 10/09/2018 202787 C & L DISTRIBUTING SEPTEMBER COST OF GOODS - LIQUOR 53,627.47 10/09/2018 202788 CANNON RIVER WINERY SEPTEMBER COST OF GOODS - LIQUOR 288.00 10/09/2018 202789 CARD SERVICES CASH WISE: SUPPLIES - EVENT CTR & SENIOR CTR 203.23 10/09/2018 202790 CARLOS CREEK WINERY SEPTEMBER COST OF GOODS - LIQUOR 468.00 10/09/2018 202791 CARS ON PATROL SHOP LLC NEW POLICE TRUCK SETUP AND 2 TOWINGS 3,939.85 10/09/2018 202792 CENTRAL HYDRAULICS MALE PIPE, FEMALE JIC SWIVEL, HOSE - WTP 287.12 10/09/2018 202793 CENTRAL MCGOWAN ACETYLENE, OXYGEN - CREEKSIDE 160.06 10/09/2018 202794 CINTAS CORPORATION VARIOUS CLEANING SUPPLIES 151.17 10/09/2018 202795 CORE & MAIN LP WATER METER PARTS 1,257.36 10/09/2018 202796 CORPORATE MECHANICAL REPAIR LEAKY DIALECTRIC UNION - CITY CENTER 630.05 10/09/2018 202797 CREEKSIDE SOILS BITCON USED BY STREETS DEPT 110.68 10/09/2018 202798 CROW RIVER AUTO & TRUCK REPAIR AUTO SERVICE/REPAIRS - FIVE VEHICLES 1,430.73 10/09/2018 202799 CROW RIVER FLORAL & GIFTS CHILD'S MEMORIAL ARRANGEMENT 61.50 10/09/2018 202800 CROW RIVER GOLF CLUB BANQUET & RENTAL - LIQUOR HUTCH EVENT 536.88 10/09/2018 202801 DANCO COMMERCIAL PAINTERS, INC 50% COST TO PAINT EXTERIOR WATER TANKS - WTP 8,500.00 10/09/2018 202802 DAVID FRANZEN EARLY MORNING WATER WORKOUT CANCELLED 25.00 10/09/2018 202803 DENNIS WURM ROOM CANCELLATION - EVENT CENTER 38.00 10/09/2018 202804 DOG -ON -IT -PARKS ROLL BAGS, WASTE CAN LINERS 308.84 10/09/2018 202805 DUININCK INC L10P18-10 TRAIL & PARKING IMPROVEMENTS 36,578.70 10/09/2018 202806 E2 ELECTRICAL SERVICES INC HEATER AT WTP AND BOILER AT WWTP 3,693.47 10/09/2018 202807 ECOLAB PEST ELIMINATION RODENT PROGRAM FOR CREEKSIDE 155.28 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 9/26/18 - 10/09/18 Check -Date ---- ------------ 10/09/2018 Check---- ------- 202808 Vendor --Name - - --------------------------------------------------- FASTENAL COMPANY Description --------------------------------------------------------------- VARIOUS R&M SUPPLIES Amount -------------------- 112.20 10/09/2018 202809 FILZEN, MARY REIMB: MDRA MONTHLY MTG 81.29 10/09/2018 202810 FIRE SAFETY USA INC (4) BULLARD USTM FIRE HELMETS 940.00 10/09/2018 202811 FIRST CHOICE FOOD & BEVERAGE SOLUTI COFFEE FOR CITY CENTER 121.10 10/09/2018 202812 GARD SPECIALISTS REPAIR AND MAINT SUPPLIES - STREETS & HATS 138.11 10/09/2018 202813 GAVIN, DONLEY & OSTLUND, LTD AUGUST FLAT LEGAL FEE AGREEMENT 3,300.00 10/09/2018 202814 GOEBEL, AMANDA REISSUE: 2016 CREEKSIDE MAIL -IN REBATE 15.00 10/09/2018 202815 GRAINGER BATHROOM SUPPLIES VARIOUS DEPARTMENTS 304.30 10/09/2018 202816 H & M DRILLING INC EAU CLAIRE DRAINAGE PROJECT 23,980.00 10/09/2018 202817 HACH COMPANY CHEMICALS FOR WTP 294.31 10/09/2018 202818 HAGER JEWELRY INC. EE ONLY PLAQUE - CITY CENTER 15.50 10/09/2018 202819 HALI-BRITE INC LAMPS FOR AIRPORT LIGHTING 597.08 10/09/2018 202820 HANSON & VASEK CONSTRUCTION HATS SHOP FLOOR: REPLACE TRENCH DRAIN 4,250.00 10/09/2018 202821 HANSON, BRIAN REISSUE: 2016 CREEKSIDE MAIL -IN REBATE 12.00 10/09/2018 202822 HARBARTH, JAMES & RACHEL UB refund for account: 1-575-9850-2-02 43.90 10/09/2018 202823 HERC-U-LIFT ANNUAL INSPECTION - CIVIC ARENA 153.51 10/09/2018 202824 HERTEL, JAN REISSUE: 2016 CREEKSIDE MAIL -IN REBATE 6.00 10/09/2018 202825 HILLYARD / HUTCHINSON VARIOUS JANITORIAL SUPPLIES 806.11 10/09/2018 202826 HJERPE CONTRACTING STORM WATER POND CLEAN & EMERG. WTR LEAK 49,187.80 10/09/2018 202827 HOHENSTEINS INC SEPTEMBER COST OF GOODS - LIQUOR 523.25 10/09/2018 202828 HOLT-PETERSON BUS SENIOR CENTER TRIP 625.00 10/09/2018 202829 HOT WIRE ELECTRIC INC MAINT FOR HUTCHINSON SIGNS 494.32 10/09/2018 202830 HUTCHINSON CONVENTION & VISITORS BU AUGUST 2018 LODGING TAX 10,286.79 10/09/2018 202831 HUTCHINSON FIRE DEPT RELIEF ASSN LOCAL FIRE PENSION CONTRIBUTION (CITY) 75,000.00 10/09/2018 202832 HUTCHINSON FIRE DEPT RELIEF ASSN STATE AID - FIRE PENSION (PASS-THRU) 109,292.13 10/09/2018 202833 HUTCHINSON LEADER PUBLICATION/ADVERTISING FOR VARIOUS DEPTS 1,053.28 10/09/2018 202834 HUTCHINSON SENIOR ADVISORY BOARD REIMB 8/14/18 SENIOR TOUR EXPENSES 2,064.98 10/09/2018 202835 HUTCHINSON UTILITIES RETIRE SERVICE 141 5TH AVE 333.49 10/09/2018 202836 HUTCHINSON WHOLESALE #1550 SHOP SUPPLIES - PUBLIC WORKS 489.94 10/09/2018 202837 HUTCHINSON WHOLESALE #1552 SHOP SUPPLIES - PARKS DEPT 56.09 10/09/2018 202838 INDELCO PLASTICS CORPORATION 1/2" BALL CHECK SEAT & SEAL REPAIR KIT- WTP 57.61 10/09/2018 202839 INDIGITAL, INC. BUILDING INSPECTION DOCUMENT SCANNING 6,702.24 10/09/2018 202840 INGSTAD BROADCASTING ADVERTISING FOR LIQUOR STORE 611.00 10/09/2018 202841 INTERSTATE BATTERY SYSTEM MINNEAPOL BATTERY FOR STREETS 116.95 10/09/2018 202842 INTERSTATE POWER COMPANIES INC BEARINGS FOR CREEKSIDE 510.50 10/09/2018 202843 JJ TAYLOR DIST OF MN SEPTEMBER COST OF GOODS - LIQUOR 3,413.70 10/09/2018 202844 JOE'S SPORT SHOP SOCCER SHIRTS - RECREATION 336.00 10/09/2018 202845 JOHNSON BROTHERS LIQUOR CO. SEPTEMBER COST OF GOODS - LIQUOR 55,386.13 10/09/2018 202846 JUERGENSEN, JUSTIN REIMB: STUDENT CONFERENCE IN MPLS 72.65 10/09/2018 202847 JUUL CONTRACTING CO DEMOLITION OF 141 5TH AVE NE NUISANCE HOUSE 8,424.00 JUUL CONTRACTING CO (issued on #202847) REISSUE PRIOR CHECK THAT WAS LOST 26,982.31 10/09/2018 202848 KERI'S CLEANING 9/16 - 9/30 CITY CTR, LIBRARY, SENIOR DINE, FIRE 2,044.00 10/09/2018 202849 KEVIN BENSON JUDGMENT PAYOFF- PASSTHROUGH TO PLAINTIFF 500.00 10/09/2018 202850 KNIFE RIVER CORPORATION 1_31317-03 - SCHOOL RD & ROBERTS RD TRAIL 10,997.74 10/09/2018 202851 KOBOW, BECKY FOOTWEAR REIMB 134.99 10/09/2018 202852 KONERZA, STACY 9/18/18 SENIOR CENTER EVENT 100.00 10/09/2018 202853 KRANZ LAWN & POWER OIL FOR FORESTRY OPERATIONS 24.95 10/09/2018 202854 KRISS PREMUIM PRODUCTS INC COOLING TOWER TREATMENT - CIVIC ARENA 463.92 10/09/2018 202855 LEVINE, ERIC REIMB: SULFITE TEST KIT 98.49 10/09/2018 202856 LOCATORS & SUPPLIES RAIN JACKETS (8) 252.98 10/09/2018 202857 LOCHER BROTHERS INC SEPTEMBER COST OF GOODS - LIQUOR 23,551.01 10/09/2018 202858 M-R SIGN NO PARKING SIGNS (20) 363.65 10/09/2018 202859 MACQUEEN EQUIP INC STREET SWEEPER REPAIRS - STORM WATER 8,163.50 10/09/2018 202860 MARCO TECHNOLOGIES, LLC August Cost per Print - Copiers 1,319.93 10/09/2018 202861 MARCO TECHNOLOGIES, LLC 9/20 - 10/20'18 CONTRACT COPIER PAYMENT 332.73 10/09/2018 202862 MCRAITH, JOHN REISSUE: REIMB: YOUTH PICTURES 76.42 10/09/2018 202863 MELISSA MANSON CANCELLED CAMPGROUND RESERVATION 60.00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 9/26/18 - 10/09/18 Check -Date ---- ------------ 10/09/2018 Check---- ------- 202864 Vendor --Name - ---------------------------------------------------- MENARDS HUTCHINSON Description --------------------------------------------------------------- VARIOUS R&M SUPPLIES Amount -------------------- 397.57 10/09/2018 202865 MID-AMERICAN RESEARCH CHEMICAL OIL, GREASE, LUBRICANT, ORANGE CRUSH - STREETS 1,152.95 10/09/2018 202866 MINI BIFF 8/23 - 9/19 AT POLICE SHOOTING RANGE 78.54 10/09/2018 202867 MINNESOTA DEPT OF LABOR & INDUSTRY STATE PRESSURE VESSEL INSPECTION - FIRE 10.00 10/09/2018 202868 MINNESOTA LAWYER 2 YR RENEWAL - LEGAL 499.00 10/09/2018 202869 MINNESOTA VALLEY TESTING LAB VARIOUS SAMPLE TESTING - WWTP 846.80 10/09/2018 202870 MORGAN CREEK VINEYARDS SEPTEMBER COST OF GOODS - LIQUOR 272.40 10/09/2018 202871 NAVRATIL, JAMES SHOE REIMB & CONFERENCE HOTEL REIMB 832.51 10/09/2018 202872 NORTHERN BUSINESS PRODUCTS VARIOUS BATHROOM SUPPLIES 616.87 10/09/2018 202873 NORTHERN STATES SUPPLY INC CUTOFF WHEEL, HAND WIPES - HATS 66.95 10/09/2018 202874 NUVERA OCTOBER PHONE SERVICES 5,437.96 10/09/2018 202875 OFFICE DEPOT VARIOUS OFFICE SUPPLIES 60.16 10/09/2018 202876 PAUSTIS WINE COMPANY SEPTEMBER COST OF GOODS - LIQUOR 2,390.00 10/09/2018 202877 PENMAC STAFFING SERVICES, INC. SEPTEMBER TEMPORARY STAFF - CREEKSIDE 6,132.68 10/09/2018 202878 PHILAPHON, VANXAY REISSUE: 2016 CREEKSIDE MAIL -IN REBATE 12.00 10/09/2018 202879 PHILIPS HEALTHCARE SMART PADS CARTRIDGES 130.65 10/09/2018 202880 PHILLIPS WINE & SPIRITS SEPTEMBER COST OF GOODS - LIQUOR 8,397.99 10/09/2018 202881 POSTMASTER POSTAGE FOR UTILITY BILLS 1,550.00 10/09/2018 202882 PREMIER TECH CHRONOS EQUIP REPLACEMENT PARTS - CREEKSIDE 5,098.57 10/09/2018 202883 QUILL CORP VARIOUS OFFICE SUPPLIES 177.73 10/09/2018 202884 R & R EXCAVATING 1-11318-01 - CENTURY AVE SE RECONSTRUCTION 427,156.59 10/09/2018 202885 R & R EXCAVATING 1_21317-02 - SCHOOL ROAD FINAL PAYMENT 15,193.84 10/09/2018 202886 RADWELL INTERNATIONAL, INC. BATTERY W/ HARNESS - CREEKSIDE 95.96 10/09/2018 202887 RDO EQUIPMENT CO. LOADER 1000 HR SERVICE - CREEKSIDE 2,330.55 10/09/2018 202888 REID, ANDY REIMB: MILEAGE FOR MNGFOA CONFERENCE 126.44 10/09/2018 202889 REINER ENTERPRISES INC BULK FREIGHT FOR CREEKSIDE 275.00 10/09/2018 202890 REVIER WELDING BOX REPAIR WELDING FOR STREETS EQUIP 423.20 10/09/2018 202891 RUNNING'S SUPPLY GUN CABINET FOR PD; VARIOUS DEPT SUPPLIES 412.65 10/09/2018 202892 RYCHLEY, WENDY REISSUE: 2016 CREEKSIDE MAIL -IN REBATE 6.00 10/09/2018 202893 SAM'S TIRE SERVICE REPAIR AND REPLACE TIRES - CREEKSIDE LOADERS 1,246.25 10/09/2018 202894 SEBORA, MARC REIMB: MILEAGE/MEALS FOR COURT & RUNNING 485.96 10/09/2018 202895 SHAW, KAREN CLASSES FOR MONTHLY PILATES/YOGA 210.00 10/09/2018 202896 SHI INTERNATIONAL CORP ENDPOINT SECURITY SOFTWARE - ANNUAL - IT 1,720.00 10/09/2018 202897 SKYVIEW DAIRY INC JUNE MANURE COMPOST FOR CREEKSIDE 4,902.40 10/09/2018 202898 SOUTH DAKOTA DEPT OF AGRICULTURE TONNAGE FOR 2017 SEASON 457.04 10/09/2018 202899 SOUTHERN WINE & SPIRITS OF MN SEPTEMBER COST OF GOODS - LIQUOR 7,866.02 10/09/2018 202900 SPRING LAKE ENGINEERING SCADA SUPPORT & DRUM SCREEN VALVES - WWTP 2,500.00 10/09/2018 202901 ST. PAUL STAMP WORKS SUPPLIES FOR ANIMAL LICENSE TAGS - POLICE 262.98 10/09/2018 202902 STACHOWSKI, CINDY REISSUE: 2016 CREEKSIDE MAIL -IN REBATE 6.00 10/09/2018 202903 STAGE, GAYLE REISSUE: 2016 CREEKSIDE MAIL -IN REBATE 12.00 10/09/2018 202904 STANDARD PRINTING-N-MAILING MAILING SERVICE FOR SEPT/ OTHER SUPPLIES 1,851.43 10/09/2018 202905 STAPLES ADVANTAGE SHOE COVERS FOR BUILDING INSPECTIONS 38.79 10/09/2018 202906 STREICH TRUCKING CREEKSIDE FREIGHT COSTS 5,860.00 10/09/2018 202907 STRUCTURAL SPECIALTIES INC L2P18-02: 2ND AVE SE BRIDGE (81% COMPLETE) 330,771.95 10/09/2018 202908 SUN LIFE FINANCIAL September Admin Fees 11,155.70 10/09/2018 202909 SYSCO WESTERN MN SUPPLY HARDWARE SOTF COM - RECREATION 82.14 10/09/2018 202910 TASC November 2018 Flex Adm. Fees 106.02 10/09/2018 202911 TOWMASTER INC. UNIT#613: REPAIR PUMP -STREETS DEPT 402.00 10/09/2018 202912 TRAFFIC MARKING SERVICE INC STRIPING & PAVEMENT MARKING - STREETS 10,685.93 10/09/2018 202913 TRI COUNTY WATER BOTTLE WATER DELIVERY - POLICE 133.75 10/09/2018 202914 UNIVERSITY OF MINNESOTA WOOD CULTURE: CATALPA: DONOVAN SCHUETTE 59.00 10/09/2018 202915 USA BLUE BOOK VARIOUS R&M SUPPLIES 313.60 10/09/2018 202916 VERIZON WIRELESS SERVICES AUG 11 - SEP 10 441.49 10/09/2018 202917 VIKING BEER SEPTEMBER COST OF GOODS - LIQUOR 21,717.80 10/09/2018 202918 VIKING COCA COLA SEPTEMBER COST OF GOODS - LIQUOR 769.65 10/09/2018 202919 VINOCOPIA INC SEPTEMBER COST OF GOODS - LIQUOR 4,260.76 10/09/2018 202920 VLIET, MARJORIE UB refund for account: 3-383-1430-7-01 79.99 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 9/26/18 - 10/09/18 Check -Date ---- ------------ 10/09/2018 Check---- ------- 202921 Vendor--N--- -------------------------------------------------- VOLLMER, EVAN Description --------------------------------------------------------------- FOOTWEAR REIMB (CREEKSIDE) Amountame -------------------- 124.99 10/09/2018 202922 WASTE MANAGEMENT OF WI -MN REFUSE DISPOSAL 9/1 - 9/15/18 5,894.87 10/09/2018 202923 WELCOME NEIGHBOR HUTCH NEW RESIDENT VISITS 60.00 10/09/2018 202924 WINE MERCHANTS INC SEPTEMBER COST OF GOODS - LIQUOR 576.64 10/09/2018 202925 WM MUELLER & SONS 1-41318-04 PAVEMENT MGMT PROGRAM 311,719.39 10/09/2018 202926 WRIGHT COUNTY SHERIFFS OFFICE SERVICES IN TWO LEGAL CASES 140.00 Total- Check Disbursements: $ 1,939,960.18 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: p g Southwest Corridor Transportation Coalition Activities Department: PW/Eng LICENSE SECTION Meeting Date: 10/9/2018 Application Complete Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff Communications, Requests Time Requested (Minutes): 15 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Fairly recently, I attended the regular SW Corridor Transportation Coalition membership meeting in Glencoe on Friday, September 14th. At this point, I would like to review this Coalition's recent activities, especially with respect to the potential addressing of the US Highway 212 two-lane gaps between Norwood Young America and Carver (please see attached information). 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: Con-idor Transportation Coalition August 3, 2018 Alene Tchourumoff, Chair Metropolitan Council 390 Robert St. N. St. Paul, MN 55101 Dear Chair Tchourumoff: On behalf of the members of the Southwest Corridor Transportation Coalition, I am writing to comment on the proposed update to the Transportation Policy Plan for the Twin Cities metropolitan region. We would like to thank the Council for all of the work that has gone into the updated plan and especially the recognition of the need for mobility projects in the outer areas of the metropolitan district. Highlighting the importance of A -minor arterials as first and last -mile connections is an important addition to the TPP. As the plan points out, A -minor arterials like MN 5 in Carver County serve a critical function in providing access to jobs and for getting products where they need to be. We support the plan to include these roadways in pavement preservation spending and to continue considering how to address local transportation needs as the population of the region grows. The recognition of the need to focus more on freight movement is another important change in this update. We appreciate the inclusion of the freight impacts from passage of the FAST Act with the new National Highway Freight Network. With all of the truck traffic on US Highway 212, the designation of segments of Highway 212 as Critical Rural Freight Corridors is important for the future improvement of this key corridor as the number of shipments grows. Coalition members strongly support the safety improvements and pavement projects that are planned throughout the US Highway 212 corridor. Safety has been a big concern for our members so the investments along the corridor in MnDOT safety projects and Highway Safety Improvement Program projects, including the projects in Benton Township and Norwood Young America are needed and appreciated. We recognize the funding challenges the region faces in meeting critical transportation needs. With the population increasing by 800,000 people, new funding is necessary to prevent increased congestion levels. We are advocating for additional state and federal funds for transportation and will continue to speak out regarding the value of funding for transportation infrastructure. Randy Maluchnik, President 600 East 4th Street, Chaska, Minnesota, 55318 • (612) 964-5382 a rmaluchnik&o.carver.mn.us The level of funding for mobility projects at $30 to $40 million per year is totally inadequate. We applaud the Council for pointing out that the level of forecasted 2040 congestion is unacceptable and will negatively affect the quality of life and prosperity of the region and that more mobility funds are needed. With some additional funds provided by the legislature in 2017, we appreciate MnDOT and the Metropolitan Council supporting the use of more funds for spot mobility projects and contributions to locally -led mobility projects on MnDOT's system. The Coalition strongly supports the inclusion of these mobility projects in the plan between 2018 and 2025: MN 212 MN 212 Carver CR 10 Carver CR 10 Carver CR 10 Carver CR 11 Carver CR 18 Waconia Bypass MN 5 MN 101 Carver CR 44 Freeway Ramps to/from North Carver CR 11 to CR 36 2 to 4 Lanes Clover Ridge Drive to CR 11 2 to 4 Lanes MN41toUS212 Carver CR 11 to CR 43 US 212 to 6th Street MN 41 to Bavaria Road MN 5 to Carver CR 10 TH 284 to Main Street Flying Cloud Drive to Pioneer Trail 2 to 4 Lanes 2 to 4 Lanes 2 to 4 Lanes New 2-lane Arterial New 2-lane Arterial 2 to 4 Lanes 2 to 4 Lanes and Realignment We understand that the timing and cost estimates for some of these projects will depend on our ability to secure competitive funding. The Coalition is working hard to compete for federal funds as well as raising funds locally and we appreciate the support from both MnDOT and the Metropolitan Council in these efforts. If competitive funds are not given to Highway 212, we urge that the Council and MnDOT work with us to identify additional state funding to keep this work moving. Resources have been invested in developing the projects on Highway 212 and the improvements are critical to the highway investment principles laid out in the plan of investing in safety improvements and mobility projects that ensure people and freight can efficiently move throughout the region. Thank you for the opportunity to comment on the draft update to the 2040 Transportation Policy Plan. The members of the Southwest Corridor Transportation Coalition look forward to working with the Council in making important investments that will improve the quality of life in our region. Sincerely, Randy Maluchnik, President cc: Southwest Corridor Transportation Coalition Members Project Overview: US Highway 212 plays an integral role in connecting freight generators and rural population centers from Greater Minnesota and eastern South Dakota to the Twin Cities Metropolitan Area. Highway 212 transitions to a four -lane divided highway approximately 50 miles west of Minneapolis except for two segments totaling 10 miles which remain as two-lane highways. Expanding the two-lane CARVER segment from Cologne to Carver (approx. 5 miles) will eliminate the bottlenecks, increase mobility COUNTY for people and freight, and address safety concerns on the corridor. BUILD Criteria - Project Benefits: Safety: This project addresses safety and mobility issues associated with increased traffic closer to the metropolitan area and the merging of vehicles down to one lane. Reduced Conflict Intersections will be installed to reduce crashes by 22 percent. Two -Lane Montevideo Four -Lane Minneapolis Saint Paul Granite Falls Olivia Hutchinson Yo�ngood arver America 23 212 Glencoe• coiakhv _ 71 15 0 169 IV Snow fencing will be utilized to minimize crashes and shipping delays due to winter storm events. State of Good Repair: US Highway 212 is a Critical Rural Freight Corridor that provides a connection to over 22,000 square miles of the rural Midwest. This US Highway 212 segment was originally constructed in 1930 and has not had any major repairs. Economic Competitiveness:US Highway 212 serves over 65 major freight generators and is the only major roadway connection through Western Minnesota into South Dakota. Time and speed is identified by freight generators as the most Important Issues to improve the corridor. Environmental Protection: Eliminatingthe bottleneck will significantly reduce emissions and improve air quality, particularly because of the high volume of trucks that use the facility (approximately 13 percent of total daily traffic). Quality of Life: US Highway 212 provides direct access for rural communities to the metropolitan area. The project will leverage the Carver County Fiber Ring to expand rural broadband access along the project area. Innovation: Carver County is leading the effort to finance this US Highway project with a new local Transportation Tax. This local funding source allows Carver County to maximize state and federal investments with dedicated local funding commitments. Partnership: The project is a collaborative effort from the Southwest Corridor Transportation Coalition (SWCTC) and has over 40 letters of local support from project partners. FUNDING PERCENTAGES BY SOURCE Project Overview: US Highway 212 plays an integral role in connecting freight generators and rural population centers from Greater Minnesota and eastern South Dakota to the Twin Cities Metropolitan Area. US Highway 212 transitions to a four -lane divided highway approximately 50 miles west wof Minneapolis except for two segments totaling 10 miles which remain as two-lane highways. CARVER Expanding the two-lane segment from Norwood Young America to Cologne (approx. 5 miles) COUNTY will eliminate the bottlenecks, increase mobility for people and freight, and address safety concerns on the corridor. BUILD Criteria - Project Benefits: Two -Lane Norwood Young Amwica Safety: This project addresses Montevideo Four-LaneCologneMinneapolis safety and mobility issues Saint Paul associated with increased traffic Granite Falls Hutchinson Norwood closer to the metropolitan area or America Carver and the merging of vehicles down to one lane. Reduced 23 212 Glencoe] Cologne AMC= Conflict Intersections will be 71 installed to reduce crashes by �15 1 L� /�169 22 percent. Snow fencing will be — { utilized to minimize crashes and shipping delays due to winter storm events. State of Good Repair: US Highway 212 is a Critical Rural Freight Corridor that provides a connection to over 22,000 square miles of the rural Midwest. This US Highway 212 segment was originally constructed in 1929 and has not had any major repairs. Economic Competitiveness: US Highway 212 serves over 65 major freight generators and is the only major roadway connection through Western Minnesota into South Dakota. Time and speed is identified by freight generators as the most important issues to improve the corridor. Environmental Protection: Eliminating the bottleneck will significantly reduce emissions and improve air quality, particularly because of the high volume of trucks that use the facility (approximately 13 percent of total daily traffic). Quality of Life: US Highway 212 provides direct access for rural communities to the metropolitan area. The project will leverage the Carver County Fiber Ring to expand rural broadband access along the project area. Innovation: Carver County is leading the effort to finance this US Highway project with a new local Transportation Tax. This local funding source allows Carver County to maximize state and federal investments with dedicated local funding commitments. Partnership: The project is a collaborative effort from the Southwest Corridor Transportation Coalition (SWCTC) and has over 40 letters of local support from project partners. FUNDING PERCENTAGES BY SOURCE US Highway 212 Rural Freight Access Program of Projects - Cologne to Carver Segment zMt US Highway 212 Rural Freight Access - Program of Projects Cologne to Carver Segment Project Title: US Highway 212 Rural Freight Access Program of Projects Segment: Cologne to Carver Location: Carver County, Minnesota Project Length: 5 miles Project Limits: Between the cities of Cologne and Carver from County Highway 36 to County Highway 11 BUILD Funding Amount Requested: $12,000,000 Applicant: Carver County, Minnesota Primary Contact Person: Lyndon Robjent, PE Title: County Engineer Address: 11360 Hwy 212 West, Suite 1 Cologne, MN 55322 Contact Phone: 952-466-5206 Contact Email: lrobjent@co.carver.mn.us US Highway 212 Rural Freight Access - Program of Projects Cologne to Carver Segment Contents ProjectDescription........................................................................................................................................................1 ExistingConditions.....................................................................................................................................................2 ProposedProject.......................................................................................................................................................3 ProjectLocation.............................................................................................................................................................3 Grant Funds, Sources, and Uses of all Project Funding.................................................................................................4 ProjectFunding Details..............................................................................................................................................5 MeritCriteria.................................................................................................................................................................6 Safety......................................................................................................................................................................... 7 Stateof Good Repair...............................................................................................................................................10 EconomicCompetitiveness......................................................................................................................................11 EnvironmentalProtection........................................................................................................................................16 Qualityof Life...........................................................................................................................................................18 Innovation................................................................................................................................................................20 Partnership..............................................................................................................................................................22 StakeholderCollaboration.......................................................................................................................................24 Non -Federal Revenue..............................................................................................................................................25 ProjectReadiness........................................................................................................................................................25 TechnicalFeasibility.................................................................................................................................................25 ProjectSchedule......................................................................................................................................................26 RequiredApprovals.................................................................................................................................................26 BenefitCost Analysis...................................................................................................................................................28 Carver County Regional Travel Demand Model (TDM) Methodology.....................................................................28 TravelDemand Model Methodology.......................................................................................................................29 TravelDemand Model Assumptions........................................................................................................................29 Comparison with Previously Published Forecasts...................................................................................................30 Developmentof VMT and VHT................................................................................................................................30 US Highway 212 Rural Freight Access - Program of Projects Page 1 Cologne to Carver Segment Project Description On behalf of the Southwest Corridor Transportation Coalition (SWCTC), its 41 communities, local chambers of commerce, and elected officials, Carver County is proud to submit this $12 million BUILD Transportation Discretionary Grant request to improve access for freight and rural populations on US Highway 212 to the Minneapolis -St. Paul (Twin Cities) Metropolitan Area. The US Highway 212 Rural Freight Access project from Cologne to Carver will address the existing highway facility gap where the 4-lane expressway facility transitions to a 2-lane undivided rural highway for five miles as US Highway 212 nears the Twin Cities, connecting to a freeway facility on the eastern terminus. This gap causes mobility and safety issues and restricts access into and out of the Twin Cities metropolitan area. The proposed project will mitigate this gap by building a 4-lane divided expressway facility and incorporating Reduced Conflict Intersections at key locations. A summary of project benefits is provided at this link. US Highway 212 is part of the National Highway System, providing a major freight connection for 22,000 square miles of rural Minnesota and South Dakota, whose largest source of employment is manufacturing. This segment of US Highway 212 is identified by the Minnesota Department of Transportation (MnDOT) in the Minnesota State Freight Investment Plan as a Critical Rural Freight Corridor. Western Minnesota does not have Interstate (or Interstate -like) access to the Twin Cities. Instead, US Highway 212 provides connectivity from these rural areas to the multi -state economic hub of the Twin Cities. The highlighted area in Figure 1 below is bordered by the existing Interstates of I- 94 and I-29 and Interstate -like freeway/expressway facilities of US 169 and TH 60. As US Highway 212 approaches the Twin Cities, the connection is constrained by the two-lane undivided rural highway section between the cities of Cologne and Carver, which connects directly to the US Highway 212 freeway facility. FIGURE 1: US HIGHWAY 212 CORRIDOR PROVIDES ACCESS FOR MOVEMENT THROUGHOUT THE RURAL MULTI —STATE NETWORK i f' NORTH DAKOTA + f MINNESOTA ro�eo-ePes� Area ti SPUTH DAKD ,!1 212 '�� ' Projoc4 Location &9 j _ US Highway 212 Rural Freight Access - Program of Projects Page 2 Cologne to Carver Segment This project is part of a Program of Projects, eligible due to Carver County's new, non-federal transportation revenue (see Innovative Financing. section), and proposes to complete the easternmost four -lane gap of US Highway 212 between the cities of Cologne and Carver. A separate BUILD Transportation Discretionary Grant application was submitted for the segment of US Highway 212 between the Cities of Norwood Young America and Cologne. Funding and implementing both project segments through the Program of Projects eligibility maximizes project benefits and addresses the two remaining two-lane gap segments to make the existing facility a continuous 44ane expressway for 29 miles from the City of Glencoe to the City of Carver and connecting an additional 13 miles via freeway facility to I-494 and the Twin Cities core. Existing Conditions As US Highway 212 approaches the Twin Cities Metropolitan Area, the road transitions from a two- lane, rural highway to a four4ane divided expressway west of the City of Glencoe, approximately 50 miles from Minneapolis and I-94. However, between the City of Glencoe and the Twin Cities, there are two se ents where the hi hwa transitions � g Y from a four -lane, divided expressway facility to a two-lane, undivided highway and back, creating safety and mobility issues as traffic increases closer to the metropolitan area and vebicles are required to merge into one lane (see Figure 2). These two, rural two-lane undivided segments sandwiched between four -lane divided segments operate at capacity with high volumes of freight Over 3 million truck miles travel the US Highway 212 corridor annually. This accounts for up to 16% of the usage on the corridor, which exceeds the typical volume of 8 to 10°o for state highways in MN. moving from western Minnesota destined to the Twin Cities and the Minnesota River ports at the Ports of Savage. Trucks serving these multimodal facilities and other major freight generators along the corridor need to merge onto the two-lane facility along with increased commuter traffic from the rural centers of Glencoe, Norwood Young America, and Cologne. FIGURE 2: US HIGHWAY 212 RURAL FREIGHT ACCESS - PROGRAM OF PROJECTS Two -Lane Montevideo Four -Lane M- Minneapolis Saint Paul Granite Falls Hutchinson Norwood Olivia Young arver America The existing corridor conditions present safety issues due to limited shoulder width, full access rural intersections, and blowing snow from snow events. See the aafee1y section for detailed crash information on the existing segment. US Highway 212 Rural Freight Access - Program of Projects Page 3 Cologne to Carver Segment Proposed Project The US Highway 212 Rural Freight Access Project - Cologne to Carver Segment will expand US Highway 212 from a two-lane undivided highway to a four -lane divided rural expressway. This project extends the existing four -lane expressway from the City of Cologne to County Highway 11 in the City of Carver where US Highway 212 transitions to a four -lane divided freeway connecting to the Twin Cities. The proposed project will also utilize portions of the existing highway (See Figure 3) where possible to reduce project costs and minimize right of way acquisition. Furthermore, the project will address safety issues by installing Reduced Conflict Intersections at three locations and providing wider shoulders and snow fencing. As shown in the project la,yo (Attachment 4) the two-lane segment will be converted into a four - lane, divided facility to eliminate the current two-lane conflict merge points. The project design provides a cost effective high -benefit solution to address safety and enhance access and mobility for the US Highway 212 corridor in this rural area. FIGURE 3: PROJECT CONCEPT To Cologne ,gape �aNO �y bA0 I �e\\9�eA ov��.r\9 To Carver Key New 4-Lane Highway Existing 2-Lane Highway ! Existing Highway/Roads Project Location Reduced Conflict Intersection The proposed project is located on US Highway 212 between the cities of Cologne and Carver in Dahlgren Township, Carver County in Minnesota; approximately a 1/4 mile east of County State Aid Highway (County Highway) 36 to County Highway 11, Sections 7-18, Township 115N, Range 24W, (44.776155°N, 93.706431°W). The project is located outside of the Minneapolis — St. Paul, MN -WI (Twin Cities) Urbanized Area and is designated as a Rural Area. See Figure 4 for project location in relationship to the Twin Cities Urbanized Area. US Highway 212 Rural Freight Access Program of Projects — Norwood Young America to Cologne Segment Y _. I �-• Sri- • � 5 ■ US Highway 212 Rural Freight Access - Program of Projects Norwood Young America to Cologne Segment Project Title: US Highway 212 Rural Freight Access Program of Projects Segment: Norwood Young America to Cologne Location: Carver County, Minnesota Project Length: 5 miles Project Limits: Between the cities of Norwood Young America and Cologne from County Highway 34 to County Highway 36 BUILD Funding Amount Requested: $25,000,000 Applicant: Carver County, Minnesota Primary Contact Person: Lyndon Robjent, PE Title: County Engineer Address: 11360 Hwy 212 West, Suite 1 Cologne, MN 55322 Contact Phone: 952-466-5206 Contact Email: lrobjent@co.carver.mn.us US Highway 212 Rural Freight Access - Program of Projects Norwood Young America to Cologne Segment TABLE OF CONTENTS ProjectDescription.............................................................................................1 ExistingConditions..........................................................................................2 ProposedProject.............................................................................................3 ProjectLocation..................................................................................................4 Grant Funds, Sources, and Uses of all Project Funding........................................5 ProjectDetails.................................................................................................6 MeritCriteria......................................................................................................6 Safety.............................................................................................................. 7 Stateof Good Repair.....................................................................................10 EconomicCompetitiveness...........................................................................13 EnvironmentalProtection.............................................................................16 Qualityof Life...............................................................................................17 Innovation....................................................................................................19 Partnership...................................................................................................24 StakeholderCollaboration............................................................................25 Non -Federal Revenue....................................................................................26 ProjectReadiness.............................................................................................26 TechnicalFeasibility......................................................................................26 ProjectSchedule...........................................................................................27 RequiredApprovals.......................................................................................27 BenefitCost Analysis.........................................................................................29 Carver County Regional Travel Demand Model (TDM) Methodology.............29 US Highway 212 Rural Freight Access - Program of Projects Page 1 Norwood Young America to Cologne Segment Project Description On behalf of the Southwest Corridor Transportation Coalition (SWCTC), its 41 communities, local chambers of commerce, and elected officials, Carver County is proud to submit this $25 million BUILD Transportation Discretionary Grant request to improve access for freight and rural populations on US Highway 212 to the Minneapolis -St. Paul (Twin Cities) Metropolitan Area. The US Highway 212 Rural Freight Access project from Norwood Young America to Cologne will address the existing highway facility gap where the 4-lane expressway facility transitions to a 2-lane undivided rural highway for five miles as US Highway 212 nears the Twin Cities. This gap causes mobility and safety issues and restricts access into and out of the Twin Cities metropolitan area. The proposed project will mitigate this gap by building a 4-lane divided expressway facility and incorporating Reduced Conflict Intersections at key locations. A summary of project benefits is provided at this link. US Highway 212 is part of the National Highway System, providing a major freight connection for 22,000 square miles of rural Minnesota and South Dakota, whose largest source of employment is manufacturing. This segment of US Highway 212 is identified by the Minnesota Department of Transportation (MnDOT) in the Minnesota State Freight Investment Plan as a Critical Rural Freight Corridor. Western Minnesota does not have Interstate (or Interstate -like) access to the Twin Cities. Instead, US Highway 212 provides connectivity from these rural areas to the multi -state economic hub of the Twin Cities. The highlighted area in Figure 1 below is bordered by the existing Interstates of I-94 and I-29 and Interstate -like freeway/expressway facilities of US 169 and TH 60. As US Highway 212 approaches the Twin Cities, the connection is constrained by the two-lane undivided rural highway section between the cities of Norwood Young America and Cologne. FIGURE 1: US HIGHWAY 212 CORRIDOR PROVIDES ACCESS FOR MOVEMENT THROUGHOUT THE RURAL MULTI -STATE NETWORK k. NORTH DAKCITA 1 y 7wtn Cdim MINNESOrA A7atrZ�'a' S©UTH., DAKP - Project Location _ IG9 US Highway 212 Rural Freight Access - Program of Projects Norwood Young America to Cologne Segment Page 2 This project is part of a Program of Projects, eligible due to Carver County's new, non-federal transportation revenue (see Innovative Fina.ncinsection), and proposes to complete the westernmost four -lane gap of US Highway 212 between the cities of Norwood Young America and Cologne. A separate BUILD Transportation Discretionary Grant application was submitted for the segment of US Highway 212 between the cities of Cologne and Carver. Funding and implementing both project segments through the Program of Projects eligibility maximizes project benefits and addresses the two remaining two-lane gap segments to make the existing facility a continuous 4-lane expressway for 29 miles from the City of Glencoe to the City of Carver and connecting an additional 13 miles via freeway facility to I-494 and the Twin Cities core. Existing Conditions As US Highway 212 approaches the Twin Cities Metropolitan Area, the road transitions from a two- lane, rural highway to a four -lane divided highway west of Glencoe, approximately 50 miles from Minneapolis and I-94. However, between the City of Glencoe and the Twin Cities, there are two segments where the highway transitions from a four -lane, divided expressway facility to a two-lane, undivided highway and back, creating safety and mobility issues as traffic increases closer to the metropolitan area and vehicles are required to merge into one lane (see Figure 2). These two, rural two-lane undivided segments sandwiched between four -lane divided segments operate at capacity with high volumes of freight moving from western Minnesota destined to the Twin Cities and the Minnesota River ports at the Ports of Savage. Trucks serving these multimodal facilities and other major freight generators along the corridor need to merge onto the two-lane facility along with increased commuter traffic from the rural centers of Glencoe, Norwood Young America, and Cologne. FIGURE 2: US HIGHWAY 212 RURAL FREIGHT ACCESS - PROGRAM OF PROJECTS a�a Two -Lane Norwoocl Montevideo Four -Lane SegmentMinneapolis Saint Paul Hutchinson Norwood Granite Falls Young Carver Olivia Amen 23 212 Glenco7i tfologne e12w 71 155 169 The existing corridor conditions present safety issues due to limited shoulder width, full access rural intersections, and blowing snow from snow events. See the Safety section for detailed crash information on the existing segment. Carver County is projected to grow its population and employment. Its proximity to the Twin Cities contributes to the county's increasing population. By 2040, the greater Twin Cities metro area is US Highway 212 Rural Freight Access - Program of Projects Page 3 Norwood Young America to Cologne Segment projected to grow by over 800,000. The Metropolitan Council projects that much of this growth will occur in Carver County: the county's population is forecasted to grow by 60 percent. This growth will bring new homes and employment to the adjacent cities. Carver County is a growing county that benefits from US Highway 212's access to both rural standing and suburban communities. Carver County maintains its agricultural roots by preserving farmland and limiting rural development through 1 unit per 40 acres maximum zoning practices. As the county grows and develops, the roadway system needs to address safety issues and capacity constraints in order to respond to growth pressures and the increased mixture of agricultural and commuter traffic. Although Carver County is within the Twin Cities Metropolitan Planning Organization WO), much of Carver County is outside of the Metropolitan Council's urbanized area, including the US Highway 212 project area. Areas outside of the MPO urbanized area are less likely to obtain federal funding allocated by the Metropolitan Council. This is similar for state funding: Carver County is within MnDOT's Metro District; but as a rural community, it is difficult for Carver County to compete with state funding funneled to the urban metro. As a result, there are few available funding sources to address increasing traffic volumes and roadway improvement needs on US Highway 212. Proposed Project The US Highway 212 Rural Freight Access Project - Norwood Young America to Cologne Segment will expand US Highway 212 to a four -lane divided rural expressway. This project extends the existing four -lane expressway starting at County State Aid Highway (County Highway) 34 in Norwood Young America to County Highway 36 in Cologne (approximately five miles). This project will utilize portions of the existing highway (Figure 3) where possible to reduce project costs and minimize right of way acquisition. As shown in the project concept below, the five -mile segment will be updated into a four -lane, divided facility to eliminate conflict points associated with the transitions back to a two-lane roadway. The project design provides a cost effective high -benefit solution to address safety and enhance access and mobility for the US Highway 212 corridor in this rural area. FIGURE 3: NORWOOD YOUNG AMERICA TO COLOGNE SEGMENT PROJECT CONCEPT pia vile To Norwood aya Young America swam * Key New 4-Lane Mghway Reduced Conflict Intersection �I Existing 2-Lane Highway Exisling Highway/Roads 016a To Cologne *Existing HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Discussion on Invocation Schedule Department: Administration LICENSE SECTION Meeting Date: 10/9/2018 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff Communications, Requests Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Back in late June the City Council approved a new invocation policy that gave staff guidelines on establishing a schedule on who gives the invocation at council meetings for the upcoming year. In mid -August, an invitation was sent out to all of the churches/religious institutions within city limits seeking volunteers to deliver the invocation for the upcoming year. A reminder notice was sent out in late September as well to those who had not responded to the invitation the first time. I've attached a report of everyone that was sent a invite and the responses we received. We have also included a sample schedule for the upcoming year for your review. Our invocation policy notes that the City Council will approve the invocation schedule for the upcoming year. My plan is to have that schedule to you at your next meeting for approval. In advance of that meeting, and so we can properly communicate with the religious leaders within the community who have volunteered to give an invocation, I wanted to get the council's feedback on what is being proposed before bringing forth a final schedule for approval. Please note that our policy states that any spots left vacant may be filled by the City Council by a council member invite, left vacant to be filled at a later time, or simply left open and unfilled (meaning no invocation will be given). Any last minute -changes to the schedule will be noted at the meeting on Tuesday. BOARD ACTION REQUESTED: No action required. Discussion only. 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: "Congregation List" for Invocation Name of Religious Organization Address Reply Notes Apostolic Lighthouse Church 560 Adams Street Did not Respond Bethlehem United Methodist Church 665 Miller Avenuw SW Responded and declined. Currently in a transition period with Pastors. Christ the King Lutheran Church PO Box 369, Hutchinson Responded and is Available. Noted they are available whenever and are open for doing it multiple times. Church of Jesus Christ of Latter -Day Saints PO Box 182764, Columbus, OH 43218-2764 Did not Respond CrossPoint Church 1215 Roberts Road Responded and is Available. Noted they were available February 12 and 26, and October 8 and 22 Disciple Maker Ministries 905 Golf Course Road NW Did not Respond Faith Lutheran Church 335 Main Street South Responded and is Available. Received a separate response from Pastor Wollan and Pastor Grorud. Noted they are available November 13, December 11, February 12, April 9 or June 11 Grace Evangelical Lutheran Church 430 Fifth Avenue SW Responded and respectfully declined Hope Family Church 1026 Jorgenson ST SE Responded and is Available. Noted they are available whenever and are open for doing it multiple times. Hunter's Ridge Community Church 850 School Road SW Responded and is Available. Noted they were available January 8 and January 22 Hutchinson Church of God 800 Grove Street SW Responded and declined. Currently without a Pastor Hutchinson Evangelical Free Church 1020 State Hwy 7 West Did not Respond Jehovah's Witnesses 493 California Street NW Did not Respond Living Water Fellowship PO Box 71, Hutchinson Did not Respond Maranatha House of Prayer 335 Adams Street South Did not Respond Midwest Independent Baptist Pastors' Fellowship 224 5th Avenue NW Did not Respond New Journey United Church of Christ 31 Fourth Avenue SW Responded and is Available. Noted they are available whenever except for April 23 and June 25 North Star Dharma Refuge 216 Adams Street SE Responded and Declined. Noted that their tradition maintains a strict seperation between religious practices and secular government Oak Heights Covenant Church 1398 South Grade Road Responded and is Available. Noted they are available whenever and are open for doing it multiple times. Our Savior's Lutheran Church 800 Bluff Street North Did not Respond Peace Lutheran Church 400 Franklin Street SW Did not Respond River of Hope Lutheran Church PO Box 608, Hutchinson Responded and is Available. Noted they were available December 11, January 8, February 12, April 9, June 25 or September 10 Seventh-Day Adventist Church 820 Main Street North Did not Respond Shepherd's Fold Baptist Church 705 5th Avenue SW Did not Respond St. Anastasia Catholic Church 460 Lake Street Did not Respond Vineyard United Methodist Church 1395 South Grade Road Did not Respond Proposed Invocation Schedule City Council Meeting Date Please mark an "X" next to the date(s) of preference to deliver the invocation November 13, 2018 Faith Lutheran November 27, 2018 Faith Lutheran December 11, 2018 Christ the King December 25, 2018* Christ the King January 8, 2019 Hunter's Ridge January 22, 2019 Hunter's Ridge February 12, 2019 Cross Point Church February 26, 2019 Cross Point church March 12, 2019 New Journey UCC March 26, 2019 New Journey UCC April 9, 2019 River of Hope April 23, 2019 Oak Heights Covenant Church May 14, 2019 Hope Family May 28, 2019 Hope Family June 11, 2019 Oak Heights Covenant Church June 25, 2019 River of Hope July 9, 2019 July 23, 2019 August 13, 2019 August 27, 2019 September 10, 2019 September 24, 2019 October 8, 2019 October 22, 2019 November 12, 2019 November 26, 2019 December 10, 2019 December 24, 2019* *meeting dates are holidays and will be rescheduled HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Second Reading - Amendment to Section 154.004 Zoning Ordinance Department: Planning LICENSE SECTION Meeting Date: 9/25/2018 Application Complete Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff New Business Time Requested (Minutes): License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The applicant, Dana's Dog Spa, is requesting an amendment to the Zoning Ordinance to allow dog daycare boarding facilities by conditional use permit in the C-4 (Fringe Commercial) district. City Staff has been working closely with the applicant to develop ordinance language for this type of use, as it has become more popular in other cities as well. There has been demand within the last five years ago for dog boarding facilities that are much smaller in scale than a commercial kennel. The applicant has been running a successful dog spa/grooming facility in Hutchinson for many years. The daycare/boarding concept is something that the applicant has been seeing increased demand for over the past few years. The proposed ordinance amendment would allow up to 12 dogs on site at any given time for the purposes of the daycare/boarding portion of the business. The amendment requires indoor kennel runs and does not allow outdoor kennel runs. A fenced outdoor exercise area would be required and any dogs outside need to be under the supervision of a staff person. In addition, dogs would not be allowed outside between 9:00 PM and 8:00 AM unless there is an emergency for a sick dog or something similar. Staff feels dog daycare boarding facilities are very similar to the scope and size to what a veterinarian might have in a Vet Clinic located in a C-4 Zoning District. Because of the similarity to a vet clinic and the fact that there aren't outdoor kennel runs and the dogs will be under direct supervision while outside, staff feels this is a reasonable request and proposes the following ordinance amendment. A public hearing was held regarding this request on September 18, 2018. Nobody from the public spoke regarding the proposed amendment. The planning commission requested the hours be changed to no dogs outside between 10:00 PM and 7:00 AM. The planning commission unanimously recommended approval of this ordinance amendment to the City Council. BOARD ACTION REQUESTED: Approval of 2nd reading of Ordinance Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: PUBLICATION NO. 8306 ORDINANCE NO. 18-790 AN ORDINANCE AMENDING SECTION 154.004 AND SECTION 154.064 (C) OF CITY CODE ALLOWING DOG DAYCARE BOARDING FACILITIES BY CONDITIONAL USE PERMIT IN THE C-4 (FRINGE COMMERCIAL DISTRICT) AND AMENDING THE DEFINITION OF DOG DAYCARE TO SECTION 154.004 THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS: Section 1. Notice of hearing was duly given and publication of said hearing was duly made and was made to appear to the satisfaction of the City Council that it would be in the best interests of the City to amend Sections 154.004 and 154.064 (C) of the City Code to allow dog daycare facilities in the C-4 District as follows: 154.004 DEFINITIONS. DOG DAYCARE BOARDING FACILITY. The boarding and regular care of dogs, including daycare and overnight care. Facilities must have indoor kennel runs and a fenced outdoor exercise area. Outside kennel runs are not permitted. Dogs must be under the supervision of a staff member when outside at all times. No dogs are allowed in the outdoor exercise area between 10:00 PM and 7:00 AM unless there is an emergency. No more than 12 dogs are permitted on the property at any one time, for the purposes of the dog daycare boarding facility. Facility layout, including indoor kennel runs, floor and wall materials, and outdoor exercise area design must be approved by City staff. 154.064 C-4, FRINGE COMMERCIAL DISTRICT. (C) Conditional permitted uses. (1) Permitted uses listed in the C-2 District, but not including used car, farm machinery, marine or manufactured home sales; (2) Commercial parking structures; (3) Churches and houses of worship and related facilities; (4) Storage units; (5) Tattoo establishments; (6) Towing company offices with fenced impound lots, subject to providing a completely fenced and screened enclosure. Fences must be a minimum of six feet high and constructed of wood or equivalent materials; (7) Dog daycare boarding facilities; (8) Brew pubs; (9) Tap rooms; and (10) Micro -distillery cocktail rooms. EFFECTIVE DATE OF ORDINANCE. This ordinance shall take effect upon is adoption and publication. Adopted by the City Council this 9' day of October, 2018. Attest Matthrew Jaunich Gary T. Forcier City Administrator Mayor DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan Jochum, AICP and City of Hutchinson Planning Staff Date: September 13, 2016, for September 18, 2018, Planning Commission Meeting Application: AN AMENDMENT TO THE ZONING ORDINANCE SECTION 154.004 AND SECTION 154.064 ALLOWING DOG DAYCARE BOARDING FACILITIES BY CONDITIONAL USE PERMIT IN THE C-4 (FRINGE COMMERCIAL DISTRICT) AND AMENDING THE DEFINITION OF DOG DAYCARE TO SECTION 154.004 Applicant: DANA'S DOG SPA, APPLICANT AMENDMENT TO THE ZONING ORDINANCE The applicant, Dana's Dog Spa, is requesting an amendment to the Zoning Ordinance to allow dog daycare boarding facilities by conditional use permit in the C-4 (Fringe Commercial) district. City Staff has been working closely with the applicant to develop ordinance language for this type of use, as it has become more popular in other cities as well. There has been demand within the last five years ago for dog boarding facilities that are much smaller in scale than a commercial kennel. The applicant has been running a successful dog spa/grooming facility in Hutchinson for many years. The daycare/boarding concept is something that the applicant has been seeing increased demand for over the past few years. The proposed ordinance amendment would allow up to 12 dogs on site at any given time for the purposes of the daycare/boarding portion of the business. The amendment requires indoor kennel runs and does not allow outdoor kennel runs. A fenced outdoor exercise area would be required and any dogs outside need to be under the supervision of a staff person. In addition, dogs would not be allowed outside between 9:00 PM and 8:00 AM unless there is an emergency for a sick dog or something similar. Staff feels dog daycare boarding facilities are very similar to the scope and size to what a veterinarian might have in a Vet Clinic located in a C-4 Zoning District. Because of the similarity to a vet clinic and the fact that there aren't outdoor kennel runs and the dogs will be under direct supervision while outside, staff feels this is a reasonable request and proposes the following ordinance amendment. Proposed Amendment: The ordinance amendment proposed by the applicant is to change the definition to "Dog daycare boarding facilities" to the conditionally permitted uses within the C-4 Zoning District and a revised definition of dog daycare to the Zoning Ordinance. Draft ordinance language is as follows: 154.004 DEFINITIONS. DOG DAYCARE BOARDING FACILITY. The boarding and regular care €er of dogs, including daycare and overnight care.with rode,.f cmd et4d er- ,.',.,.ed kennel f Facilities must have indoor kennel runs and a fenced outdoor exercise area. Outside kennel runs are not permitted. Dogs must be under the supervision of a staff member when outside at all times. No dogs are allowed in the outdoor exercise area between 10:00 PM and 7:00 AM unless there is an emergency. There wetild be No more than 12 dogs are permitted on the property at any one time, for the purposes of the dog Ordinance Amendment Section 154.004 and 154.064 — Dog Daycare Boarding Facility Planning Commission — September 18, 2018 Page 2 daycare boarding_ facility. Facility Igyout, including indoor kennel runs, floor and wall materials, and outdoor exercise area design must be approved by Ci , staff. 154.064 C-4, FRINGE COMMERCIAL DISTRICT. (C) Conditional permitted uses. (1) Permitted uses listed in the C-2 District, but not including used car, farm machinery, marine or manufactured home sales; (2) Commercial parking structures; (3) Churches and houses of worship and related facilities; (4) Storage units; (5) Tattoo establishments; (6) Towing company offices with fenced impound lots, subject to providing a completely fenced and screened enclosure. Fences must be a minimum of six feet high and constructed of wood or equivalent materials; (7) Dog daycare boarding facilities; (8) Brew pubs; (9) Tap rooms; and (10) Micro -distillery cocktail rooms. Analysis: In reviewing the proposed amendment, the Commission should consider the proposed use with the purpose of the zoning district. The purpose of the C-4 (Fringe Commercial District) is: "The C-4 commercial district is intended to provide one or more areas for the grouping of general retail sales establishments, offices and services which offer convenient shopping facilities for city residents and the surrounding area. C-4 district provisions and boundaries are established to promote compatible land use relationships among diverse types of uses and encourage well -planned development or expansion in accord with the city's Comprehensive Plan. Only those uses which substantially interfere with the overall function of the general commercial area will be excluded." Staff also felt it was important to note that this request was recommended for approval because the lot size in the C-4 district are larger and can more easily accommodate a use such as this as compared the C-3 zoning district which is mostly located downtown and features a much denser development pattern. This is important because an ordinance amendment by this applicant, to the C-3 district for a dog daycare was recommended for denial by staff several years ago because of incompatible land uses due to the dense nature of downtown. Conclusion: A draft ordinance is attached for the public hearing and for the Planning Commission's review. Based upon the discussion and direction from the Planning Commission, staff will prepare a resolution adopting findings of fact for the ordinance amendment. HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Second Reading Ordinance Extending Corporate Limits of the City of Hutchinson Department: Planning LICENSE SECTION Meeting Date: 10/9/2018 Application Complete Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff Unfinished Business Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The property owners are requesting annexation of property pursuant to Minnesota Statutes 414.033, Subdivision 2 (3). The purpose of the annexation is for a possible future public street in this location. The access road off Highway 7 has historically been one of the primary access points to Hutchinson Technology, Inc (HTI). Within the past few years, Uponor bought a portion of the HTI property and has converted a former HTI building into a large manufacturing facility. Due to the volume of vehicles that access both HTI and Uponor, as well as semi -truck traffic, representatives from HTI, Uponor, and the City of Hutchinson have discussed the possibility of the access road becoming a public street. Annexing the land into City limits is the first step required to turn the access road into a City street. A second, separate process is required for the property owners and the City to move forward with the public street concept. Recommendation: Staff supports the request for annexation and recommends it move forward through the annexation process. A public hearing was held regarding this request on September 18, 2018. Nobody from the public spoke regarding this request. The Planning Commission asked if there were any tax payments to be made to the Township and staff answered there were not as the County does not have an value placed on this parcel. The Planning Commission unanimously recommended approval of the annexation by ordinance and for it to be moved on to the City Council for their review The City Council approved the first reading of the ordinance on September 25, 2018. BOARD ACTION REQUESTED: Approval and adoption of second reading of ordinance. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: PUBLICATION NO. 8307 ORDINANCE NO. 18-791 AN ORDINANCE EXTENDING THE CORPORATE LIMITS OF THE CITY OF HUTCHINSON TO INCLUDE CERTAIN LAND OWNED BY HUTCHINSON TECHNOLOGY INC AND UPONOR LOCATED IN HUTCHINSON TOWNSHIP, SECTION 32 PURSUANT TO MINNESOTA STATUES 414.033, SUBDIVISION 2 (3) WHEREAS, the property owners are requesting that certain land be annexed to the City of Hutchinson, as legally described below, and: A 60.00 foot wide strip of land in the West Half of the Southeast Quarter of Section 32, Township 117 North, Range 29 West, McLeod County, Minnesota, lying easterly of and adjoining the following described line: Commencing at the northwest corner of said Southeast Quarter; thence South 00 degrees 53 minutes 21 seconds East, assumed bearing, along the west line of said Southeast Quarter 1531.58 feet; thence North 83 degrees 18 minutes 44 seconds East 474.26 feet to the point of beginning of the line to be described; thence North 00 degrees 53 minutes 21 seconds West 490.80 feet; thence northwesterly, 427.71 feet along a tangential curve concave to the southwest, having a radius of 544.58 feet and a central angle of 45 degrees 00 minutes 00 seconds; thence North 45 degrees 53 minutes 21 seconds West, tangent to said curve, 163.00 feet; thence northwesterly 474.84 feet along a tangential curve concave to the northeast, having a radius of 604.58 feet and a central angle of 45 degrees 00 minutes 00 seconds; thence North 00 degrees 53 minutes 21 seconds West, tangent to the last described curve, 66.20 feet to the north line of said Southeast Quarter and said line there terminating. The north line of said strip of land being the north line of said Southeast Quarter and the south line of said strip of land being a line bearing North 83 degrees 19 minutes 48 seconds East from the point of beginning. ALSO, the West 80.00 feet of the South 60.00 feet of the South 3/4 of the Southwest Quarter of the Northeast Quarter of Section 32, Township 117 North, Range 29 West, McLeod County, Minnesota. WHEREAS, said properties are unincorporated and abut the City of Hutchinson on its eastern boundary, is approximately 3.60 acres in size; and WHEREAS, Hutchinson Technology Incorporated and Uponor are the owners of the properties, the properties are included within any other municipality, and is not included in any area that has already been designated for orderly annexation pursuant to Minnesota Statues 414.0325, and WHEREAS, the City of Hutchinson held a public hearing on September 18, 2018, and NOW, THEREFORE, the City Council of Hutchinson, Minnesota does hereby ordain: SECTION 1. The City Council hereby determines and finds that the properties are owned by Hutchinson Technology and Uponor, that the area to be annexed is approximately 3.60 acres, that the property is not included in any area that has already been designated for orderly annexation pursuant to Minnesota Statues 414.0325, and that the request complies with all of the provisions of Minnesota Statutes 414.033 Subd. 2 (3). SECTION 2. The property abuts the city limits and is about to become urban or suburban in nature; and SECTION 3. The corporate limits of the City of Hutchinson are hereby extended to include the Properties and the same is hereby annexed to and included within the City of Hutchinson as if the property had originally been part thereof. SECTION 4. The population of the area legally described within and hereby annexed is zero. SECTION 5. The City of Hutchinson, pursuant to Minn. Stat. 414.036, that with respect to the property taxes Ty on the area legally described herein, hereby annexed, shall not make payment to Hutchinson Township for the area legally described herein because McLeod County has not collected tax on this land according to the County Assessor's Office. SECTION 6. That pursuant to Minn. Stat. 414.036 with respect to any special assessments assigned by the township to the annexed property and any portion of debt incurred by the township prior to the annexation and attributable to the property to e annexed, but for which no special assessments are outstanding, for the property legally described herein, there are no special assessments or debt insurred by the township on the subject area for which Ordinance No. 18-791 Annexation — 3.60 acres October 9, 2018 Page 2 reimbursement is required. SECTION 7. The City Administrator is directed to file copies of this ordinance with the Office of Administrative Hearings - Municipal Boundary Adjustments, Hutchinson Township, the McLeod County Auditor, and the Minnesota Secretary of State. SECTION 8. This ordinance takes effect upon its passage and publication and the filing of the copies as directed in Section 7 and approval of the Ordinance by the Office of Administrative Hearings - Municipal Boundary Adjustments. First Reading: September 25, 2018 Final Reading and Passed: October 9, 2018 Adopted by the City Council this 9r' day of October, 2018. ATTEST: Matthew Jaunich City Administrator Gary T. Forcier Mayor DIRECTORS REPORT - PLANNING DEPARTMENT To: Hutchinson Planning Commission From: Dan Jochum, AICP and City of Hutchinson Planning Staff Date: September 13, 2018, for September 18, 2018, Planning Commission Meeting Application: Annexation of Access Road Applicant: Hutchinson Technology Inc. and Uponor ANNEXATION OF ACCESS ROAD The property owners are requesting annexation of property pursuant to Minnesota Statutes 414.003, Subdivision 2 (3). The purpose of the annexation is for a possible future public street in this location. Existing Zoning: Property Location: Lot Size: Existing Land Use: Adjacent Land Use: Adjacent Zoning: GENERAL INFORMATION Agricultural Adjacent to 1115 Hwy 7 E. Hutchinson 1.52 Acres Driveway Agricultural to East, Commercial to West, and Industrial to Northwest. Agricultural to East, C-4 Commercial and R-1 Residential to West, Industrial to NW. Annexation HTI and Uponor Planning Commission — September 18, 2018 Page 2 Comprehensive Plan: Outside of City Limits Applicable Regulations: MN Statutes 414 Analysis: The access road off Highway 7 has historically been one of the primary access points to Hutchinson Technology, Inc (HTI). Within the past few years, Uponor bought a portion of the HTI property and has converted a former HTI building into a large manufacturing facility. Due to the volume of vehicles that access both HTI and Uponor, as well as semi -truck traffic, representatives from HTI, Uponor, and the City of Hutchinson have discussed the possibility of the access road becoming a public street. Annexing the land into City limits is the first step required to turn the access road into a City street. A second, separate process is required for the property owners and the City to move forward with the public street concept. Recommendation: Staff supports the request for annexation and recommends it move forward through the annexation process. �a w� I I i l I t ( z � I '1 I n I lajrr2� raj R # M1u 3 3. AGZ AN -- ^-�A1 s'Cb "N t� t2E �ma'msMwN++wt4Vwb tY aVM —-- _— t s I t j IN j � I Lj— I � j 3 g a0_$° (J]r� -o vit:,gs 33 Wig' s5 `✓ x=mmo_3S°cam r� V) :D W p W = Z a `ma�gLL- ooa Ms wr�mm—f®mo $w Q, I Q !� (15 izJz goo' '="1oNpem io LLJ v 4 g m d =$o°.Eig Iz aE W TT O e3o SYowt"n So �: HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-ft Agenda Item: Resolution 14955 Authorizing Issuance of $2,470,000 G.O. Bonds 2018A Department: Finance LICENSE SECTION Meeting Date: 10/9/2018 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Nick Anhut - Ehlers Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Bruce Kimmel, from Ehlers & Associates, will review the bids received for the 2018 bond issuance. The new debt, with a total par value of $2,470,000, will finance the following projects which comprise the 2018 Construction Fund: 1) Century Avenue SE Reconstruction 2) 2nd Avenue Bridge Replacement 3) Pavement Management Program 4) Trail & Parking Improvements 5) City Alley #17 Improvements The City's debt management plan has been updated for this debt issuance and the future projected debt levy graph can be found directly after this page. It's important to point out that the debt service payments will be funded by the existing debt levy and does not require a tax increase. The City's Standard & Poors bond rating was reaffirmed at AA-, but a copy of the report was not available for inclusion with this agenda item. I will forward the report separately when it is received. BOARD ACTION REQUESTED: Consider and approve the issuance of $2,470,000 general obligation improvement bonds, series 2018A, by adopting resolution 14955. Fiscal Impact: Funding Source: 2018 Debt Service Fund 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: EXHIBIT C Debt Management Plan -39- CERTIFICATION OF MINUTES RELATING TO $[2,470,000] GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2018A Issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on October 9, 2018, at 5:30 o'clock p.m., in the Council Chambers at the Hutchinson City Center. Councilmembers present: Councilmembers absent: Documents Attached: Minutes of said meeting (pages): RESOLUTION NO. 14955 RESOLUTION RELATING TO $[2,470,000] GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2018A; AUTHORIZING THE ISSUANCE, AWARDING THE SALE, FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this _9th_ day of October, 2018. (SEAL) Matt Jaunich City Administrator 4835-4252-3762\3 The City Administrator reported that [([]) proposals for the purchase of the $[2,470,000] General Obligation Improvement Bonds, Series 2018A were received prior to 11:00 A.M., Central Time today pursuant to the Preliminary Official Statement distributed to potential purchasers of the Bonds by Ehlers & Associates, Inc., municipal advisors to the City. The bids have been read and tabulated, and the terms of each have been determined to be as follows: (See Attached) 4835-4252-3762\3 Councilmember introduced the following resolution (the "Resolution") and moved its adoption, which motion was seconded by Councilmember RESOLUTION NO. 14955 RESOLUTION RELATING TO $[2,470,000] GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2018A; AUTHORIZING THE ISSUANCE, AWARDING THE SALE, FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT THEREOF BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota (the City), as follows: Section 1. Recitals. 1.01. Authorization. This Council has heretofore ordered various street improvement projects designated as the 2018 Infrastructure Improvement Program (together, the Improvements), to be constructed within the City under and pursuant to Minnesota Statutes, Chapter 429 (the "Act"). Pursuant a resolution adopted September 11, 2018, this Council determined to issue and sell $[2,470,000] principal amount of General Obligation Improvement Bonds, Series 2018A, of the City (the Bonds) to defray a portion of the expense incurred and estimated to be incurred by the City in making the Improvements, including every item of cost of the kinds authorized in Minnesota Statutes, Section 475.65. The remaining costs of the Improvements, if any, will be paid from City funds and from interest earnings on proceeds of the Bonds. 1.02. Sale of Bonds. The City has retained Ehlers & Associates, Inc., an independent municipal advisor, to assist the City in connection with the sale of the Bonds. The Bonds are being sold pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9), without meeting the requirements for public sale under Minnesota Statutes, Section 475.60, Subdivision 1. Pursuant to the Terms and Conditions of Sale for the Bonds, [ ] ([__]) sealed bids for the purchase of the Bonds were received at or before the time specified for receipt of bids. The bids have been opened and publicly read and considered, and the purchase price, interest rates and net interest cost under the terms of each bid have been determined. The most favorable proposal received is that of [ ], of [ ] (the Purchaser), to purchase the Bonds at a price of $[ ], the Bonds to bear interest at the rates set forth in Section 3.01. The proposal is hereby accepted, and the Mayor and the City Administrator are hereby authorized and directed to execute a contract on the part of the City for the sale of the Bonds with the Purchaser. The good faith deposit of the Purchaser, if any, shall be retained and deposited by the City until the Bonds have been delivered, and shall be deducted from the purchase price paid at settlement. 1.03. Issuance of Bonds. All acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed prior to the issuance of the Bonds have been done, do exist, have happened, and have been performed, 4835-4252-3762\3 wherefore it is now necessary for this Council to establish the form and terms of the Bonds, to provide for the security thereof, and to issue the Bonds forthwith. 1.04. Maturities. This Council finds and determines that the maturities of the Bonds, as set forth in Section 3.01 hereof, are warranted by the anticipated collection of the assessments and ad valorem taxes to be levied for the cost of the Improvements. 1.05. Consolidation of Improvements. Pursuant to Minnesota Statutes, Section 435.56, the Improvements are hereby consolidated and joined as one project. Section 2. Form of Bonds. The Bonds shall be prepared in substantially the form attached as Exhibit A hereto. Section 3. Bond Terms, Execution and Delivery. 3.01. Maturities, Interest Rates, Denominations, Pam. The City shall forthwith issue and deliver the Bonds, which shall be denominated "General Obligation Improvement Bonds, Series 2018A" and shall be payable primarily from the 2018 Improvement Bond Fund created in Section 4.02 hereof. The Bonds shall bear a date of original issue of November 1, 2018, shall be issuable in the denomination of $5,000 each or any integral multiple thereof, shall mature on February 1 in the years and amounts set forth below, and Bonds maturing in such years and amounts shall bear interest from the date of original issue until paid or duly called for redemption at the rates per annum shown opposite such years and amounts as follows: Year Amount Rate 2020 2021 2022 2023 2024 2025 2026 2027 Year Amount Rate 2028 2029 2030 2031 2032 2033 2034 [REVISE MATURITY SCHEDULE FOR ANY TERM BONDS] The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, shall be payable by check or draft issued by the Registrar described herein. Each Bond shall be dated by the Registrar as of the date of its authentication. 3.02. Dates, Interest Payment Dates. Interest on the Bonds shall be payable on February 1 and August 1 in each year, commencing August 1, 2019, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. Interest on the Bonds will be computed on the basis of a 360-day year 2 4835-4252-3762\3 consisting of twelve 30-day months and will be rounded pursuant to the rules of the Municipal Securities Rulemaking Board. 3.03. Registration. The City shall appoint, and shall maintain, a bond registrar, transfer agent and paying agent (the Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its principal corporate trust office a bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney duly authorized in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. 4835-4252-3762\3 (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond lost, stolen or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. 3.04. Appointment of Initial Re ig strar. The City hereby appoints Bond Trust Services Corporation in Roseville, Minnesota, as the initial Registrar. The Mayor and City Finance Director are authorized to execute and deliver, on behalf of the City, a contract with Bond Trust Services Corporation, as Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove any Registrar upon thirty (30) days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Director shall transmit to the Registrar from the 2018 Improvement Bond Fund described in Section 4.02 hereof, moneys sufficient for the payment of all principal and interest then due. 3.05. Redemption. Bonds maturing in the years 2028 and thereafter shall be subject to redemption and prepayment at the option of the City, in whole or in part, in such order as the City shall determine and by lot as to Bonds having the same maturity date, on February 1, 2027 and on any date thereafter (whether or not an interest payment date), at a price equal to the principal amount thereof and accrued interest to the date of redemption. [Bonds maturing on February 1, 20 are subject to mandatory redemption, at a redemption price equal to their principal amount plus interest accrued thereon to the redemption date, without premium, on February 1 in each of the years shown below, in an amount equal to the following principal amounts: 4 4835-4252-3762\3 Term Bonds Maturingin n 20[] Sinking Fund Aggregate Payment Date Principal Amount (final maturity) Prior to the date set for redemption of any Bond prior to its stated maturity date, the City Administrator shall cause notice of the call for redemption thereof to be published as required by law and, not more than sixty (60) and not fewer than thirty (30) days prior to the designated redemption date, shall cause notice of the call to be mailed to the registered holders of any Bonds to be redeemed at their addresses as they appear on the bond register described in Section 3.03 hereof, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. The notice of redemption shall specify the redemption date, redemption price, the numbers, interest rates and CUSIP numbers of the Bonds to be redeemed and the place at which the Bonds are to be surrendered for payment, which is the principal office of the Registrar. Official notice of redemption having been given as aforesaid, the Bonds or portions thereof so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions thereof shall cease to bear interest. Bonds in a denomination larger than $5,000 may be redeemed in part in any integral multiple of $5,000. The owner of any Bond redeemed in part shall receive without charge, upon surrender of such Bond to the Registrar, one or more new Bonds of such same series in authorized denominations equal in principal amount to the unredeemed portion of the Bond so surrendered. 3.06. Preparation and Delivery. The Bonds shall be prepared under the direction of the City Administrator and shall be executed on behalf of the City by the signatures of the Mayor and the City Administrator. In case any officer whose signature shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. When the Bonds have been so executed and authenticated, they shall be delivered by the City Administrator to the purchaser thereof upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the purchaser shall not be obligated to see to the application of the purchase price. 5 4835-4252-3762\3 3.07. Securities Depository. (a) For purposes of this Section the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede & Co." shall mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to the Bonds. "DTC" shall mean The Depository Trust Company of New York, New York. "Participant" shall mean any broker -dealer, bank or other financial institution for which DTC holds Bonds as securities depository. "Representation Letter" shall mean the Representation Letter from the City to DTC. (b) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the bond register in the name of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Bonds under this resolution, registering the transfer of Bonds, and for all other purposes whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede & Co. in accordance with the Representation Letter, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph (e) hereof. (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC 6 4835-4252-3762\3 and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph (e) hereof. (d) The execution and delivery of the Representation Letter to DTC by the Mayor, in the form presented to this Council with such changes, omissions, insertions and revisions as the Mayor shall deem advisable, is hereby authorized, and execution of the Representation Letter by the Mayor shall be conclusive evidence of such approval. The Representation Letter shall set forth certain matters with respect to, among other things, notices, consents and approvals by registered owners of the Bonds and Beneficial Owners and payments on the Bonds. The Registrar shall have the same rights with respect to its actions thereunder as it has with respect to its actions under this resolution. (e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this resolution. In the event Bonds in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Bonds in the form of bond certificates and the method of payment of principal of and interest on such Bonds in the form of bond certificates. Section 4. Security Provisions. 4.01. 2018 Improvement Construction Fund. There is hereby created a special bookkeeping fund to be designated as the "2018 Improvement Construction Fund" (hereinafter referred to as the Construction Fund), to be held and administered by the City Finance Director separate and apart from all other funds of the City. The City appropriates to the Construction Fund (a) the proceeds of the sale of the Bonds, and (b) all collections of special assessments levied for the Improvements until completion and payment of all costs of the Improvements. The Construction Fund shall be used solely to defray expenses of the Improvements, including but not limited to the transfer to the Bond Fund, created in Section 4.02 hereof, of amounts sufficient for the payment of interest and principal, if any, due upon the Bonds prior to the completion and payment of all costs of the Improvements and the payment of the expenses incurred by the City in connection with the issuance of the Bonds set forth in Section 8 hereof. Upon completion and payment of all costs of the Improvements, but in any event no later than November 1, 2023, any balance of the proceeds of Bonds remaining in the Construction Fund may be used to pay the cost, in whole or in part, of any other improvements instituted pursuant to the Act, as directed by the City Council, or otherwise duly authorized, but any balance of such proceeds not so used shall be credited and paid to the Bond Fund. 4.02. 2018 Improvement Bond Fund. So long as any of the Bonds are outstanding and any principal of or interest thereon unpaid, the City Finance Director shall maintain a separate and 7 4835-4252-3762\3 special bookkeeping fund designated "2018 Improvement Bond Fund" (hereinafter referred to as the Bond Fund) to be used for no purpose other than the payment of the principal of and interest on the Bonds and on such other improvement bonds of the City as have been or may be directed to be paid therefrom. The City irrevocably appropriates to the Bond Fund (a) the collections of special assessments and other funds to be credited and paid thereto in accordance with the provisions of Section 4.01, (b) any taxes levied in accordance with this resolution, (c) all income derived from the investment of amounts on hand in the Bond Fund, and (d) all such other moneys as shall be received and appropriated to the Bond Fund from time to time. If the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all bonds payable therefrom, the payment shall be made from any fund of the City which is available for that purpose, subject to reimbursement from the Bond Fund when the balance therein is sufficient, and the Council covenants and agrees that it will each year levy a sufficient amount to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory tax limitation. There are hereby established two accounts in the Bond Fund, designated as the "Debt Service Account" and the "Surplus Account." All money appropriated or to be deposited in the Bond Fund shall be deposited as received into the Debt Service Account. On each February 1, the City Finance Director shall determine the amount on hand in the Debt Service Account. If such amount is in excess of one -twelfth of the debt service payable from the Bond Fund in the immediately preceding 12 months, the City Finance Director shall promptly transfer the amount in excess to the Surplus Account. The City appropriates to the Surplus Account any amounts to be transferred thereto from the Debt Service Account as herein provided and all income derived from the investment of amounts on hand in the Surplus Account. If at any time the amount on hand in the Debt Service Account is insufficient to meet the requirements of the Bond Fund, the City Finance Director shall transfer to the Debt Service Account amounts on hand in the Surplus Account to the extent necessary to cure such deficiency. The City reserves the right to establish a revolving fund pursuant to Minnesota Statutes, Section 429.091, subdivision 7a, and to provide that the Bonds shall be payable from such revolving fund. If the City determines to establish such a revolving fund and to provide that the Bonds are payable therefrom, then any remaining amounts in the Construction Fund shall be deposited in the construction account in the revolving fund and amounts in the Bond Fund shall be deposited in the debt service account in the revolving fund. Any future collections of special assessments levied with respect to the Improvements shall be deposited in the construction account or debt service account as the City Council or an officer designated by the City Council may determine. 4.03. Additional Bonds. The City reserves the right to issue additional bonds payable from the Bond Fund as may be required to finance costs of the Improvements not financed hereby; provided that the City Council shall, prior to the delivery of such additional bonds, levy or agree to levy by resolution sufficient additional special assessments and ad valorem taxes, if any, which, together with other moneys or revenues pledged for the payment of said additional obligations, will produce revenues at least five percent (5%) in excess of the amount needed to pay when due the principal and interest on all bonds payable from the Bond Fund. The additional special assessments, ad valorem taxes and moneys or revenues so pledged, levied or agreed to be levied 8 4835-4252-3762\3 shall be irrevocably appropriated to the Bond Fund in the manner provided by Minnesota Statutes, Section 475.61. 4.04. Levy of Special Assessments. The City hereby covenants and agrees that for payment of the cost of each of the Improvements it will do and perform all acts and things necessary for the full and valid levy of special assessments against all assessable lots, tracts and parcels of land benefited thereby and located within the area proposed to be assessed therefor, based upon the benefits received by each such lot, tract or parcel, in an aggregate principal amount not less than twenty percent (20%) of the cost of the Improvements. In the event that any such assessment shall be at any time held invalid with respect to any lot, piece or parcel of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the City or this Council or any of the City's officers or employees, either in the making of such assessment or in the performance of any condition precedent thereto, the City and this Council hereby covenant and agree that they will forthwith do all such further acts and take all such further proceedings as may be required by law to make such assessments a valid and binding lien upon such property. The Council presently estimates that the special assessments shall be in the principal amount of $664,128.89, a portion of which equal to approximately $115,178 has been or is expected to be prepaid. 4.05. Ad Valorem Taxes. The full faith and credit and taxing powers of the City are irrevocably pledged for the prompt and full payment of the principal of and interest in the Bonds as the same become respectively due. For the purpose there is hereby levied upon all of the taxable property of the City a direct, annual ad valorem tax, which shall be spread upon the tax rolls prepared in each of the following years and collected with other taxes in the following years and amounts as follows: Lever Collection Years Amount SEE ATTACHED SCHEDULE I The foregoing tax levies are such that if collected in full they will produce at least five percent (5%) in excess of the amount needed to pay when due the principal of and interest on the Bonds. This tax shall be irrevocably appropriated to the Bond Fund as long as any of the Bonds are outstanding and unpaid; provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61. 4.06. Full Faith and Credit Pledged. The full faith and credit of the City are irrevocably pledged for the prompt and full payment of the principal of and the interest on the Bonds, and the Bonds shall be payable from the Bond Fund in accordance with the provisions and covenants contained in this resolution. It is estimated that the taxes and special assessments levied and to be levied for the payment of the Improvements will be collected in amounts not less than five percent (5%) in excess of the annual principal and interest requirements of the Bonds. If the money on hand in the Bond Fund should at any time be insufficient for the payment of principal and interest then due, this City shall pay the principal and interest out of any fund of the City, and such other fund or funds shall be reimbursed therefor when sufficient money is available to the Bond Fund. 9 4835-4252-3762\3 If on February 1 in any year the sum of the balance in the Bond Fund plus the amount of taxes and special assessments theretofore levied for the Improvements and collectible through the end of the following calendar year is not sufficient to pay when due all principal and interest become due on all Bonds payable therefrom in said following calendar year, or the Bond Fund has incurred a deficiency in the manner provided in this Section 4.06, a direct, irrepealable, ad valorem tax shall be levied on all taxable property within the corporate limits of the City for the purpose of restoring such accumulated or anticipated deficiency in accordance with the provisions of this resolution. Section 5. Defeasance. When all of the Bonds have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by depositing with the paying agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the paying agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank or trust company qualified by law as an escrow agent for this purpose, cash or securities which are general obligations of the United States or securities of United States agencies which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing on such dates as shall be required, without reinvestment, to pay all principal and interest to become due thereon to maturity. Section 6. Registration, Certification of Proceedings, Investment of Moneys, Arbitrage and Official Statement. 6.01. Registration. The City Administrator is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of McLeod County, together with such other information as he shall require, and to obtain from the County Auditor a certificate that the Bonds have been entered on his bond register and that the tax required for the payment thereof has been levied and filed as required by law. 6.02. Certification of Proceedings. The officers of the City and the County Auditor of McLeod County are hereby authorized and directed to prepare and furnish to the Purchaser, and to Dorsey & Whitney LLP, Bond Counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 6.03. Covenant. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the Code), and Regulations promulgated thereunder (the Regulations), as such are enacted or promulgated and in effect on the date of issue of the Bonds, and covenants to take any and all actions within its powers to ensure that the interest on the Bonds 10 4835-4252-3762\3 will not become subject to taxation under such Code and Regulations. The Improvements and any other improvements financed pursuant to Section 4.01 will be owned and maintained by the City and available for use by members of the general public on a substantially equal basis. The City shall not enter into any lease, use or other agreement with any non -governmental person relating to the use of such improvements or security for the payment of the Bonds which might cause the Bonds to be considered "private activity bonds" or "private loan bonds" within the meaning of Section 141 of the Code. 6.04. Arbitrage Certification. The Mayor and City Administrator, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code, and Section 1.148-2(b)(2) of the Regulations, stating the facts and estimates in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of said Code and Regulations. 6.05. Arbitrage Rebate. (a) It is hereby found that the City has general taxing powers, that no Bond is a "private activity bond" within the meaning of Section 141 of the Code, that 95% or more of the net proceeds of the Bonds are to be used for local governmental activities of the City, and that the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the City and all subordinate entities thereof during the year 2018 is not reasonably expected to exceed $5,000,000. Therefore, pursuant to Section 148(f)(4)(D) of the Code, the City shall not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code. 6.06. Qualified Tax Exempt Obligations. The Bonds are designated as "qualified tax- exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the disallowance of interest expense for financial institutions, and hereby finds that the reasonably anticipated amount of tax-exempt obligations which are not private activity bonds (not treating qualified 501(c)(3) bonds under Section 145 of the Code as private activity bonds for the purpose of this representation) which will be issued by the City and all subordinate entities during calendar year 2018 does not exceed $10,000,000. 6.07. Official Statement. The Official Statement relating to the Bonds, prepared and distributed on behalf of the City by Ehlers & Associates, Inc., is hereby approved. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. 6.08. Reimbursement. The City certifies that the proceeds of the Bonds will not be used by the City to reimburse itself for any expenditure with respect to the financed facilities which the City paid or will have paid more than 60 days prior to the issuance of the Bonds unless, with respect to such prior expenditures, the City shall have made a declaration of official intent which complies with the provisions of Section 1.150-2 of the Regulations, provided that a declaration of official intent shall not be required (i) with respect to certain de minimis expenditures, if any, with respect to the financed facilities meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or (ii) with respect to "preliminary expenditures" for the financed facilities as defined in Section 1.150-2(f)(2) of the Regulations, including engineering or architectural expenses and 11 4835-4252-3762\3 similar preparatory expenses, which in the aggregate do not exceed 20% of the "issue price" of the Bonds. Section 7. Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the Purchaser and other participating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12), relating to continuing disclosure (as in effect and interpreted from time to time, the "Rule"), which will enhance the marketability of the Bonds, the City hereby makes the following covenants and agreements for the benefit of the Owners (as hereinafter defined) from time to time of the Outstanding Bonds. The City is the only obligated person in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. If the City fails to comply with any provisions of this section, any person aggrieved thereby, including the Owners of any Outstanding Bonds, may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this section constitute a default under the Bonds or under any other provision of this resolution. As used in this section, Owner or Bondowner means, in respect of a Bond, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, Beneficial Owner means, in respect of a Bond, any person or entity which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of the Bond for federal income tax purposes. (b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection (c) hereof, either directly or indirectly through an agent designated by the City, the following information at the following times: (1) on or before twelve months after the end of each fiscal year of the City, commencing with the fiscal year ending December 31, 2018, the following financial information and operating data in respect of the City (the "Disclosure Information"): (A) the audited financial statements of the City for such fiscal year, containing balance sheets as of the end of such fiscal year and a statement of operations, changes in fund balances and cash flows for the fiscal year then ended, showing in comparative form such figures for the preceding fiscal year of the City, prepared in accordance with generally accepted accounting principles promulgated by the Financial Accounting Standards Board as modified in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as 12 4835-4252-3762\3 otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the City, noting the discrepancies therefrom and the effect thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the City; and (B) to the extent not included in the financial statements referred to in paragraph (A) hereof, the information for such fiscal year or for the period most recently available of the type contained in the Official Statement under headings: Current Property Valuations, Direct Debt, Tax Levies and Collections, US Census Data/Population Trend, and Employment/Unemployment Data, which information may be unaudited. Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the City shall provide on or before such date unaudited financial statements in the format required for the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt thereof, the City shall provide the audited financial statements. Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been filed with the SEC or have been made available to the public on the Internet Web site of the Municipal Securities Rulemaking Board ("MSRB"). The City shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure Information need no longer be provided if the City includes in the Disclosure Information a statement to such effect, provided, however, if such operations have been replaced by other City operations in respect of which data is not included in the Disclosure Information and the City determines that certain specified data regarding such replacement operations would be a Material Fact (as defined in paragraph (2) hereof), then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this section is amended as permitted by this paragraph (b)(1) or subsection (d), then the City shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of financial information or operating data provided. (2) In a timely manner not in excess of ten business days after the occurrence of the event, notice of the occurrence of any of the following events (each, a "Material Fact''): (A) Principal and interest payment delinquencies; (B) Non-payment related defaults, if material; (C) Unscheduled draws on debt service reserves reflecting financial difficulties; (D) Unscheduled draws on credit enhancements reflecting financial difficulties; (E) Substitution of credit or liquidity providers, or their failure to perform; 13 4835-4252-3762\3 (F) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (G) Modifications to rights of security holders, if material; (H) Bond calls, if material, and tender offers; (I) Defeasances; (J) Release, substitution, or sale of property securing repayment of the securities, if material; (K) Rating changes; (L) Bankruptcy, insolvency, receivership or a similar event with respect to the City; (M) The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (N) Appointment of a successor or additional trustee or the change of name of a trustee, if material. As used herein, for those events that must be reported if material, an event is "material" if it is an event as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell a Bond or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, a material fact is also an event that would be deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. For the purposes of the event identified in (L) hereinabove, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person. (3) In a timely manner, notice of the occurrence of any of the following events or conditions: (A) the failure of the City to provide the Disclosure Information required under paragraph (b)(1) at the time specified thereunder; 14 4835-4252-3762\3 (B) the amendment or supplementing of this section pursuant to subsection (d), together with a copy of such amendment or supplement and any explanation provided by the City under subsection (d)(2); (C) the termination of the obligations of the City under this section pursuant to subsection (d); (D) any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and (E) any change in the fiscal year of the City. (c) Manner of Disclosure. (1) The City agrees to make available to the MSRB, in an electronic format as prescribed by the MSRB from time to time, the information described in subsection (b); (2) All documents provided to the MSRB pursuant to this subsection (c) shall be accompanied by identifying information as prescribed by the MSRB from time to time. (d) Term, Amendments, Interpretation. (1) The covenants of the City in this section shall remain in effect so long as any Bonds are Outstanding. Notwithstanding the preceding sentence, however, the obligations of the City under this section shall terminate and be without further effect as of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the City to comply with the requirements of this section will not cause participating underwriters in the primary offering of the Bonds to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This section (and the form and requirements of the Disclosure Information) may be amended or supplemented by the City from time to time, without notice to (except as provided in paragraph (c)(3) hereof) or the consent of the Owners of any Bonds, by a resolution of this Council filed in the office of the recording officer of the City accompanied by an opinion of Bond Counsel, who may rely on certificates of the City and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement (a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity, nature or status of the City or the type of operations conducted by the City, or (b) is required by, or better complies with, the provisions of paragraph (b)(5) of the Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (b)(5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances 15 4835-4252-3762\3 applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the City agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, of the change in the type of financial information or operating data being provided hereunder. (3) This section is entered into to comply with the continuing disclosure provisions of the Rule and should be construed so as to satisfy the requirements of paragraph (b)(5) of the Rule. Section 8. Authorization of Payment of Certain Costs of Issuance of the Bonds. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to Klein Bank, on the closing date for further distribution as directed by the City's municipal advisor, Ehlers & Associates, Inc. Attest: Mayor City Administrator The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon, the following Councilmembers voted in favor thereof - and the following Councilmembers voted against the same: whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, which was attested by the City Administrator. 16 4835-4252-3762\3 EXHIBIT A UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF McLEOD CITY OF HUTCHINSON GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2018A R-14955 Interest Rate REGISTERED OWNER: PRINCIPAL AMOUNT: Maturity Date February 1, 20 CEDE & CO. Date of Original Issue November 1, 2018 THOUSAND DOLLARS CUSIP No. THE CITY OF HUTCHINSON, McLeod County, Minnesota (the "City"), acknowledges itself to be indebted and, for value received, hereby promises to pay to the registered owner above named, the principal amount indicated above, on the maturity date specified above, with interest thereon from the date of original hereof specified above at the annual rate specified above computed on the basis of a 360-day year consisting of twelve 30-day months, payable on February 1 and August 1 in each year, commencing August 1, 2019, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest hereon and, upon presentation and surrender hereof, the principal hereof, are payable in lawful money of the United States of America by check or draft of Bond Trust Services Corporation, in Roseville, Minnesota, as Bond Registrar, Transfer Agent and Paying Agent (the "Bond Registrar"), or its successor designated under the Resolution described herein. This Bond is one of an issue in the aggregate principal amount of $[2,470,000] (the "Bonds"), all of like date and tenor except as to serial number, interest rate, redemption privilege and maturity date, issued pursuant to a resolution adopted by the City Council on October 9, 2018 (the "Resolution") to pay the cost of construction of various street improvements in the City (the "Improvements"), and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475. This Bond is payable primarily from the 2018 Improvement Bond Fund (the "Fund") of the City, but the City is required by law to pay maturing principal hereof and interest thereon out of any funds in the treasury if moneys on hand in the Fund are insufficient therefor. The Bonds are issuable only as fully registered bonds, in denominations of $5,000 or any integral multiple thereof, of single maturities. Bonds maturing in the years 2028 and thereafter are each subject to redemption and prepayment, at the option of the City and in whole or in part and if in part, in the maturities selected by the City and by lot, assigned in proportion to their principal amount, within any maturity, on February 1, 2027 and on any A-1 4835-4252-3762\3 date thereafter, at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. The Bonds have been designated as "qualified tax-exempt obligations" pursuant to Section 265(b) of the Internal Revenue Code of 1986, as amended. [Bonds maturing on February 1, 20 are subject to mandatory redemption, at a redemption price equal to their principal amount plus interest accrued thereon to the redemption date, without premium, on February 1 in each of the years shown below, in an amount equal to the following principal amounts: Term Bonds Maturing in 20[ 1 Sinking Fund Aggregate Payment Date Principal Amount (final maturity)] At least thirty days prior to the date set for redemption of any Bond, notice of the call for redemption will be mailed to the Bond Registrar and to the registered owner of each Bond to be redeemed at his address appearing in the Bond Register, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond, not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price herein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bond or portions of Bonds shall cease to bear interest. Upon the partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange, the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City according to its terms have been done, do exist, have happened and have been performed as so required; that prior to the issuance hereof the City has levied or agreed to levy special A-2 4835-4252-3762\3 assessments on property specially benefitted by the Improvements and ad valorem taxes on all taxable property within the City, collectible in the years and amounts required to produce sums not less than 5% in excess of the principal of and interest on the Bonds as such principal and interest respectively become due, and has appropriated the same to the Fund in the manner specified in Minnesota Statutes, Section 429.091, Subdivision 4; that, to take care of any accumulated or anticipated deficiency in the Fund, additional ad valorem taxes are required by law to be levied upon all taxable property in the City without limitation as to rate or amount; and that the issuance of this Bond does not cause the indebtedness of the City to exceed any charter, constitutional or statutory limitation. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by manual signature of the authorized representative of the Bond Registrar. A-3 4835-4252-3762\3 IN WITNESS WHEREOF, the City of Hutchinson, McLeod County, State of Minnesota, by its City Council, has caused this Bond to be executed by the signatures of the Mayor and the City Administrator and has caused this Bond to be dated as of the date set forth below. CITY OF HUTCHINSON, MINNESOTA (Facsimile Signature - City Administrator) (Facsimile Signature —Mayor) CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. Date of Authentication: BOND TRUST SERVICES CORPORATION, as Bond Registrar Authorized Representative A-4 4835-4252-3762\3 The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM --as tenants in common UTMA ................. as Custodian for .................. (Cust) (Minor) TEN ENT --as tenants by the entireties under Uniform Transfers to Minors Act ........................... (State) JT TEN --as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: NOTICE: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Registrar, which requirements include membership or participation in STAMP or such other "signature guaranty program" as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. Please insert social security or other identifying number of assignee: A-5 4835-4252-3762\3 SCHEDULE I PROJECTED TAX LEVIES AND ASSESSMENTS [TO COME] 4835-4252-3762\3 CERTIFICATE OF MCLEOD COUNTY AUDITOR AS TO REGISTRATION AND TAX LEVY I, the undersigned, being the duly qualified and acting County Auditor of McLeod County, Minnesota, hereby certify that there has been filed in my office a certified copy of a resolution adopted October 9, 2018, by the City Council of the City of Hutchinson, Minnesota, setting forth the form and details of an issue of $[2,470,000] General Obligation Improvement Bonds, Series 2018A, dated as of November 1, 2018, and levying taxes for the payment thereof. I further certify that the bond issue has been entered on my bond register and the tax required by law for payment of the Bonds has been levied and filed, as required by Minnesota Statutes, Sections 475.61 to 475.63. WITNESS my hand and official seal this day of , 2018. McLeod County Auditor (SEAL) 4835-4252-3762\3 HUTCHINSON CITY COUNCIL Cityaf A L� Request for Board Action Resolution 14956 Authorizing Issuance of $1,625,000 GO Storm Water Revenue Bonds, Agenda Item: Series 2018B Department: Finance LICENSE SECTION Meeting Date: 10/9/2018 Application Complete Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff New Business Time Requested (Minutes): License Contingency iN, Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Bruce Kimmel, from Ehlers & Associates, will review the bids for the 2018 issuance of G.O. Storm Water Revenue Bonds with a par value estimated at $1,625,000 (series 2018B). The bonds will finance the Linden Park storm water retention pond project, which will be split into three phases over the years 2018 through 2020. 1) Phase 1 in 2018 - construction of the pond on the north side of Linden Park 2) Phase 2 in 2019 - improvements to the streets on the east side of the pond 3) Phase 3 in 2020 - improvements to the streets on the west side of the pond The improvements to the streets east and west of the pond will consist of roadway improvements and storm water system improvements. This bond issuance will finance the storm water system improvements only. The roadway improvements will be financed by the 2019 and 2020 G.O. Improvement Bond issuances. In addition to the debt issuance, the project will require the use of Storm Water funds of approximately $175,000 per year for years 2018-2020. We are estimating the annual debt service payments in the range of $185,000 to $190,000. This is about $30,000 higher than the current Storm Water debt service of $155,000 per year. The Storm Water fund should still have a moderate positive cash flow on an annual basis after the three-year pond improvements are completed, and depending upon future CIP needs. At this point, I do not anticipate any severe impact on the Storm Water fund based on the Linden Park project and associated financing. Debt payments will commence in August 2019 after the existing Storm Water debt expires in February 2019. One item to note is that this project qualifies for the State's credit enhancement on city utility projects. Essentially, we would apply to the State and if approved, our Storm Water bonds would be backed by the State's credit rating of AAA rather than the City's rating of AA-. This would result in a lower interest rate on the bonds that Ehlers estimates could save the City $20,000. BOARD ACTION REQUESTED: Consider and approve the issuance of $1,625,000 general obligation Storm Water revenue bonds, series 2018B, by adopting resolution #14956. Fiscal Impact: Funding Source: Storm Water Utility Fund FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: N/A Remaining Cost: $ 0.00 Funding Source: N/A CERTIFICATION OF MINUTES RELATING TO $[1,625,000] GENERAL OBLIGATION STORMWATER REVENUE BONDS, SERIES 201813 Issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on October 9, 2018, at 5:30 o'clock p.m., in the Council Chambers at the Hutchinson City Center. Councilmembers present: Councilmembers absent: Documents Attached: Minutes of said meeting (including): RESOLUTION NO. 14956 RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $[1,625,000] GENERAL OBLIGATION STORMWATER REVENUE BONDS, SERIES 2018B I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this _9th_ day of October, 2018. (SEAL) Matt Jaunich City Administrator 4829-3605-3874\3 The City Administrator reported that [ ([]) proposals for the purchase of $[1,625,000] General Obligation Stormwater Revenue Bonds, Series 2018B were received prior to 11:00 A.M., Central Time today pursuant to the Preliminary Official Statement distributed to potential purchasers of the Bonds by Ehlers & Associates, Inc., municipal advisors to the City. The proposals have been publicly opened, read and tabulated and were found to be as follows: (See Attached) 4829-3605-3874\3 Councilmember introduced the following resolution (the "Resolution") and moved its adoption, which motion was seconded by Councilmember RESOLUTION NO. 14956 RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $[1,625,000] GENERAL OBLIGATION STORMWATER REVENUE BONDS, SERIES 2018B BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota (the "City"), as follows: SECTION 1. AUTHORIZATION, SALE AND AWARD 1.01. Authorization Pursuant a resolution adopted September 11, 2018, this Council has determined it to be in the best interest of the City to issue and sell the City's $[1,625,000] General Obligation Stormwater Revenue Bonds, Series 2018B (the "Bonds") to finance improvements to the City's stormwater utility system (the "System"), including the South Central Drainage Project (the "Project"). The Bonds will be issued pursuant to Minnesota Statutes, Section 444.075 and Chapter 475. This Council finds, determines and declares that all conditions precedent to the offering for sale of the Bonds exist. 1.02. Sale The City has retained Ehlers & Associates, Inc., an independent municipal advisor, to assist the City in connection with the sale of the Bonds. The Bonds are being sold pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9), without meeting the requirements for public sale under Minnesota Statutes, Section 475.60, Subdivision 1. Pursuant to the Terms of Proposal for the Bonds, [] ([]) sealed bids for the purchase of the Bonds were received at or before the time specified for receipt of bids. The bids have been opened and publicly read and considered, and the purchase price, interest rates and net interest cost under the terms of each bid have been determined. The most favorable proposal received is that of [ ], of [ ] (the "Purchaser"), to purchase the Bonds at a price of $[ ], the Bonds to bear interest at the rates set forth in Section 2.02. 1.03. Award The sale of the Bonds is hereby awarded to the Purchaser, and the Mayor and City Administrator are hereby authorized and directed to execute a contract on the part of the City with 4829-3605-3874\3 the Purchaser for the sale of the Bonds in accordance with the Terms of Proposal. The good faith deposit of the Purchaser shall be retained and deposited by the City until the Bonds have been delivered and shall be deducted from the purchase price paid at settlement. SECTION 2. BOND TERMS; REGISTRATION; EXECUTION AND DELIVERY 2.01. Issuance of Bonds All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, now existing, having happened and having been performed, it is now necessary for the Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith. 2.02. Maturities, Interest Rates, Denominations and Pam The Bonds shall be originally dated as of the date of issuance thereof, shall be in the denomination of $5,000 each, or any integral multiple thereof, of single maturities, shall mature on February I in the years and amounts stated below, and shall bear interest from date of original issue until paid or duly called for redemption at the annual rates set forth opposite such years and amounts, as follows: Year Amount ($) Rate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 [REVISE MATURITY SCHEDULE FOR ANY TERM BONDS] The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond at the principal office of the Registrar (as hereinafter defined), the principal amount thereof, shall be payable by check or draft issued by the Registrar; provided that, so long as the Bonds are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 2.08 hereof, principal and interest shall be payable in accordance with the operational arrangements of the securities depository. 2.03. Dates and Interest Payment Dates Upon initial delivery of the Bonds pursuant to Section 2.07 and upon any subsequent transfer or exchange pursuant to Section 2.06, the date of authentication shall be noted on each 4 4829-3605-3874\3 Bond so delivered, exchanged or transferred. Interest on the Bonds shall be payable each February 1 and August 1, commencing August 1, 2019 (each such date, an "Interest Payment Date"), to the person in whose name the Bonds are registered on the Bond Register (as hereinafter defined) at the Registrar's close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date, whether or not such day is a business day. Interest shall be computed on the basis of a 360-day year composed of twelve 30-day months. 2.04. Redemption Bonds maturing in 2028 and later years are each subject to redemption and prepayment at the option of the City, in whole or in part, and if in part in such order of maturity dates as the City may select and by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in multiples of $5,000 as to Bonds maturing on the same date, on February 1, 2027, and on any date thereafter, at a price equal to the principal amount thereof plus accrued interest to the date of redemption. Prior to the date specified for the redemption of any Bond prior to its stated maturity date, the City will cause notice of the call for redemption to be published if and as required by law, and, at least thirty days prior to the designated redemption date, will cause notice of the call to be mailed by first class mail (or, if applicable, provided in accordance with the operational arrangements of the bond depository), to the registered owner of any Bond to be redeemed at the owner's address as it appears on the Bond Register maintained by the Registrar, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of such Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS — ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] [Bonds maturing on February 1, 20 and 20 (the Term Bonds) shall be subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements of this Section 2.04 at a redemption price equal to the stated principal amount thereof plus interest accrued thereon to the redemption date, without premium. The Registrar shall select for redemption, by lot or other manner deemed fair, on February I in each of the following years the following stated principal amounts of such Bonds: 5 4829-3605-3874\3 Term Bonds Maturing in 20 Sinking Fund Payment Date (final maturity) Aggregate Principal Amount Term Bonds Maturing in 20 Sinking Fund Payment Date (final maturity) Aggregate Principal Amount Notice of redemption shall be given as provided in the preceding paragraph.] 2.05. Appointment of Initial Re ig stray The City hereby appoints Bond Trust Services Corporation in Roseville, Minnesota, as the initial bond registrar, transfer agent and paying agent (the "Registrar"). The Mayor and City Administrator are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon thirty days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the Bond Register to the successor Registrar. 2.06. Registration The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its principal corporate trust office a Bond Register (the "Bond Register") in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each Interest Payment Date and until such Interest Payment Date. (c) Exchange of Bonds. Whenever any Bonds are surrendered by the registered owner for exchange the Registrar shall authenticate and deliver one or more new Bonds of 6 4829-3605-3874\3 a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the Bond Register as the absolute owner of the Bond, whether the Bond shall be overdue or not, for the purpose of receiving payment of or on account of, the principal of and interest on the Bond and for all other purposes; and all payments made to any registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability upon Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be canceled by it and evidence of such cancellation shall be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Bond prior to payment. (i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, subd. 1, as amended. 0) Valid Obligations. All Bonds issued upon any transfer or exchange of Bonds shall be the valid obligations of the City, evidencing the same debt, and entitled to 7 4829-3605-3874\3 the same benefits under this Resolution as the Bonds surrendered upon such transfer or exchange. 2.07. Execution, Authentication and Delivery The Bonds shall be prepared under the direction of the City Administrator and shall be executed on behalf of the City by the signatures of the Mayor and City Administrator, provided that the signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been prepared, executed and authenticated, the City Administrator shall deliver them to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 2.08. Securities Depository. (a) For purposes of this Section the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede & Co." shall mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to the Bonds. "DTC" shall mean The Depository Trust Company of New York, New York. "Participant" shall mean any broker -dealer, bank or other financial institution for which DTC holds Bonds as securities depository. "Representation Letter" shall mean the Representation Letter from the City to DTC. (b) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the bond register in the name of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Bonds under this resolution, registering the transfer of Bonds, and for all other purposes whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the 8 4829-3605-3874\3 Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede & Co. in accordance with the Representation Letter, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph (e) hereof. (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph (e) hereof. (d) The execution and delivery of the Representation Letter to DTC by the Mayor, in the form presented to this Council with such changes, omissions, insertions and revisions as the Mayor shall deem advisable, is hereby authorized, and execution of the Representation Letter by the Mayor shall be conclusive evidence of such approval. The Representation Letter shall set forth certain matters with respect to, among other things, notices, consents and approvals by registered owners of the Bonds and Beneficial Owners and payments on the Bonds. The Registrar shall have the same rights with respect to its actions thereunder as it has with respect to its actions under this resolution. (e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this resolution. In the event Bonds in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Bonds in the form of bond certificates and the method of payment of principal of and interest on such Bonds in the form of bond certificates. 9 4829-3605-3874\3 2.09. Form of Bonds The Bonds shall be prepared in substantially the form found at Exhibit A. SECTION 3. GENERAL OBLIGATION STORMWATER REVENUE BONDS, SERIES 2018B CONSTRUCTION FUND There is hereby established on the official books and records of the City a General Obligation Stormwater Revenue Bonds, Series 2018B Construction Fund (the "Construction Fund") which the City shall continue to maintain until payment of all costs and expenses incurred in carrying out the Project has been made. To the Construction Fund there shall be credited the proceeds of the Bonds, exclusive of accrued interest or capitalized interest received from the Purchaser, and from the Construction Fund there shall be paid all costs and expenses of the Project and the issuance of the Bonds. After payment of all costs incurred with respect to the Project and the issuance of the Bonds, the Construction Fund shall be discontinued and any Bond proceeds remaining therein shall be credited to the General Obligation Stormwater Revenue Bonds, Series 2018B Bond Fund of the City. Upon completion and payment of all costs of the Project, but in any event no later than November 1, 2023, any balance of the proceeds of Bonds remaining in the Construction Fund may be used to pay the cost, in whole or in part, of any other improvements instituted pursuant to the Act, as directed by the City Council, or otherwise duly authorized, but any balance of such proceeds not so used shall be credited and paid to the Bond Fund. SECTION 4. GENERAL OBLIGATION STORMWATER REVENUE BONDS, SERIES 2018B BOND FUND The Bonds shall be payable from a separate General Obligation Stormwater Revenue Bonds, Series 2018B Bond Fund (the "Bond Fund") of the City, which the City agrees to maintain until the Bonds have been paid in full. If the money in the Bond Fund should at any time be insufficient to pay principal and interest due on the Bonds, such amounts shall be paid from other money on hand in other funds of the City, which other funds shall be reimbursed therefor when sufficient money becomes available in the Bond Fund. Into the Bond Fund shall be paid (a) Bond proceeds in the amount of [] representing capitalized interest; (b) any amounts received from the Purchaser upon delivery of the Bonds in excess of the amounts appropriated to the Construction Fund pursuant to Section 3 hereof, (c) net revenues of the System appropriated to the payment of the principal of and interest on the Bonds in accordance with Section 6 hereof, (d) any taxes collected pursuant to Section 7 hereof, and (e) any other funds appropriated by the City for the payment of the Bonds. Pursuant to the Minnesota Public Facilities Authority (the "Authority") Credit Enhancement Program Agreement (the "Agreement"), the Bonds are also payable by the State of Minnesota, acting through the Authority, subject to Minnesota Statutes, Section 446A.086 (the "Act") and provided that funds are available therefor in the State General Fund. The City has previously, pursuant to the Act, entered into the Agreement with the Authority and the Commissioner of Finance. The City hereby covenants and obligates itself to notify the Authority of a potential default in the payment of principal and interest on the Bonds and to use the provisions of Minnesota Statutes, Section 446A.086, to guarantee payment of the principal and interest on the Bonds when due. The City further covenants to deposit with the Registrar three (3) days prior to the date on which a payment is due an amount sufficient to make that payment or to 10 4829-3605-3874\3 notify the Authority that it will be unable to make all or a portion of that payment. The Registrar is authorized and directed to notify the Authority if it becomes aware of a potential default in the payment of principal or interest on the Bonds or if, on the day two (2) business days prior to the date a payment is due on the Bonds, there are insufficient funds to make that payment on deposit with the Registrar. The City understands that as a result of its covenant to be bound by the provision of the Act, the provisions of that section shall be binding as long as any Bonds remain outstanding. SECTION 5. SUFFICIENCY OF REVENUES It is hereby found, determined and declared that the City owns and operates the System as a revenue -producing utility and convenience and that the net operating revenues of the System, after deducting from the gross receipts derived from charges for the service, use and availability of the System the normal, current and reasonable expenses of operation and maintenance thereof, will be sufficient, together with any other funds actually appropriated by the City for the payment when due of the principal of and interest on the Bonds, and on any other bonds to which such revenues are pledged. SECTION 6. RATE COVENANTS Pursuant to Minnesota Statutes, Section 444.075, the City hereby covenants and agrees with the registered owners from time to time of the Bonds, that until the Bonds and the interest thereon are paid in full, or are discharged as provided in Section 8, the City will impose and collect reasonable charges for the service, use and availability of the System according to schedules which will produce net revenues sufficient, with any other funds appropriated by the City, to pay all principal and interest when due on the Bonds and any other bonds to which said net revenues have been pledged; and said net revenues, to the extent necessary, are hereby irrevocably pledged and appropriated to the payment of the Bonds. Nothing herein shall preclude the City from hereafter making further pledges and appropriations of the net revenues of the System for payment of additional obligations of the City hereafter authorized if this Council determines before the authorization of such additional obligations that the estimated net revenues of the System will be sufficient, together with any other sources pledged to the payment of the outstanding and additional obligations, for payment of the outstanding bonds payable therefrom and such additional obligations. Such further pledges and appropriations of said net revenues may be made superior or subordinate to, or on a parity with, the pledge and appropriation herein made SECTION 7. PLEDGE OF TAXING POWERS For the prompt and full payment of the principal of and interest on the Bonds as such payments respectively become due, the full faith, credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. However, it is presently estimated that the net revenues of the System, together with other funds to be appropriated by the City, will produce amounts not less than five percent in excess of the amounts needed to meet when due the principal and interest payments on the Bonds; therefore no ad valorem taxes are required to be levied at this time. 11 4829-3605-3874\3 SECTION 8. DEFEASANCE When all of the Bonds have been discharged as provided in this section, all pledges, covenants and other rights granted by this Resolution to the registered owners of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued from the due date to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms by depositing with the Registrar on or before that date an amount equal to the principal, redemption premium, if any, and interest then due, provided that notice of such redemption has been duly given as provided herein. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank or trust company qualified by law as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing or callable at the holder's option on such dates as shall be required to pay all principal and interest to become due thereon to maturity or earlier designated redemption date, provided, however, that if such deposit is made more than ninety days before the maturity date of the Bonds to be discharged, the City shall have received a written opinion of Bond Counsel to the effect that such deposit does not adversely affect the exemption of interest on any Bonds from federal income taxation and a written report of an accountant or investment banking firm verifying that the deposit is sufficient to pay when due all of the principal and interest on the Bonds to be discharged on and before their maturity dates. SECTION 9. TAX COVENANTS, ARBITRAGE MATTERS AND CONTINUING DISCLOSURE 9.01. General Covenant The City agrees with the registered owners from time to time of the Bonds that it will not take, or permit to be taken by any of its officers, employees or agents, any action that would cause interest on the Bonds to become includable in gross income of the recipient under the Internal Revenue Code of 1986, as amended (the "Code") and applicable Treasury Regulations (the "Regulations"), and agrees to take any and all actions within its powers to ensure that the interest on the Bonds will not become includable in gross income of the recipient under the Code and the Regulations. All proceeds of the Bonds deposited in the Construction Fund will be expended solely for the payment of the costs of the Project. The Project is and will be owned and maintained by the City and available for use by members of the general public on a substantially equal basis. The City shall not enter into any lease, management contract, use agreement, capacity agreement or other agreement with any non -governmental person relating to the use of the Project, or any portion thereof, or security for the payment of the Bonds which might cause the Bonds to be considered "private activity bonds" or "private loan bonds" pursuant to Section 141 of the Code. 12 4829-3605-3874\3 9.02. Arbitrage Certification The Mayor and City Administrator being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this Resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code and applicable Regulations, stating that on the basis of facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds, it is reasonably expected that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be "arbitrage bonds" within the meaning of the Code and the applicable Regulations. 9.03. Arbitrage Rebate. (a) It is hereby found that the City has general taxing powers, that no Bond is a "private activity bond" within the meaning of Section 141 of the Code, that 95% or more of the net proceeds of the Bonds are to be used for local governmental activities of the City, and that the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the City and all subordinate entities thereof during the year 2018 is not reasonably expected to exceed $5,000,000. Therefore, pursuant to Section 148(f)(4)(D) of the Code, the City shall not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code. 9.04. Qualified Tax -Exempt Obligations The City Council hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the disallowance of interest expense for financial institutions, and hereby finds that the reasonably anticipated amount of tax-exempt governmental obligations (within the meaning of Section 265(b)(3) of the Code) which will be issued by the City and all subordinate entities during calendar year 2018 does not exceed $10,000,000. 9.05. Reimbursement The City certifies that the proceeds of the Bonds will not be used by the City to reimburse itself for any expenditure with respect to the Project which the City paid or will have paid more than 60 days prior to the issuance of the Bonds unless, with respect to such prior expenditures, the City shall have made a declaration of official intent which complies with the provisions of Section 1.150-2 of the Regulations, provided that this certification shall not apply (i) with respect to certain de minimis expenditures, if any, with respect to the Project meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or (ii) with respect to "preliminary expenditures" for the Project as defined in Section 1.150-2(f)(2) of the Regulations, including engineering or architectural expenses and similar preparatory expenses, which in the aggregate do not exceed 20% of the "issue price" of the portion of the Bonds allocable to the Project. 9.06. Credit Enhancement Program. Notwithstanding anything else to the contrary contained herein, the terms of the Agreement are hereby incorporated in this resolution. 13 4829-3605-3874\3 9.07. Continuing Disclosure (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the Purchaser and other participating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12), relating to continuing disclosure (as in effect and interpreted from time to time, the "Rule"), which will enhance the marketability of the Bonds, the City hereby makes the following covenants and agreements for the benefit of the Owners (as hereinafter defined) from time to time of the Outstanding Bonds. The City is the only obligated person in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. If the City fails to comply with any provisions of this section, any person aggrieved thereby, including the Owners of any Outstanding Bonds, may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this section constitute a default under the Bonds or under any other provision of this resolution. As used in this section, Owner or Bondowner means, in respect of a Bond, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, Beneficial Owner means, in respect of a Bond, any person or entity which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of the Bond for federal income tax purposes. (b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection (c) hereof, either directly or indirectly through an agent designated by the City, the following information at the following times: (1) on or before twelve months after the end of each fiscal year of the City, commencing with the fiscal year ending December 31, 2018, the following financial information and operating data in respect of the City (the "Disclosure Information"): (A) the audited financial statements of the City for such fiscal year, containing balance sheets as of the end of such fiscal year and a statement of operations, changes in fund balances and cash flows for the fiscal year then ended, showing in comparative form such figures for the preceding fiscal year of the City, prepared in accordance with generally accepted accounting principles promulgated by the Financial Accounting Standards Board as modified in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in 14 4829-3605-3874\3 accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the City, noting the discrepancies therefrom and the effect thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the City; and (B) to the extent not included in the financial statements referred to in paragraph (A) hereof, the information for such fiscal year or for the period most recently available of the type contained in the Official Statement under headings: Current Property Valuations, Direct Debt, Tax Levies and Collections, US Census Data/Population Trend, and Employment/Unemployment Data, which information may be unaudited. Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the City shall provide on or before such date unaudited financial statements in the format required for the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt thereof, the City shall provide the audited financial statements. Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been filed with the SEC or have been made available to the public on the Internet Web site of the Municipal Securities Rulemaking Board ("MSRB"). The City shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure Information need no longer be provided if the City includes in the Disclosure Information a statement to such effect, provided, however, if such operations have been replaced by other City operations in respect of which data is not included in the Disclosure Information and the City determines that certain specified data regarding such replacement operations would be a Material Fact (as defined in paragraph (2) hereof), then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this section is amended as permitted by this paragraph (b)(1) or subsection (d), then the City shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of financial information or operating data provided. (2) In a timely manner not in excess of ten business days after the occurrence of the event, notice of the occurrence of any of the following events (each, a "Material Fact''): (A) Principal and interest payment delinquencies; (B) Non-payment related defaults, if material; (C) Unscheduled draws on debt service reserves reflecting financial difficulties; (D) Unscheduled draws on credit enhancements reflecting financial difficulties; (E) Substitution of credit or liquidity providers, or their failure to perform; (F) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with 15 4829-3605-3874\3 respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (G) Modifications to rights of security holders, if material; (H) Bond calls, if material, and tender offers; (I) Defeasances; (J) Release, substitution, or sale of property securing repayment of the securities, if material; (K) Rating changes; (L) Bankruptcy, insolvency, receivership or a similar event with respect to the City; (M) The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (N) Appointment of a successor or additional trustee or the change of name of a trustee, if material. As used herein, for those events that must be reported if material, an event is "material" if it is an event as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell a Bond or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, a material fact is also an event that would be deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. For the purposes of the event identified in (L) hereinabove, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person. (3) In a timely manner, notice of the occurrence of any of the following events or conditions: (A) the failure of the City to provide the Disclosure Information required under paragraph (b)(1) at the time specified thereunder; (B) the amendment or supplementing of this section pursuant to subsection (d), together with a copy of such amendment or supplement and any explanation provided by the City under subsection (d)(2); 16 4829-3605-3874\3 (C) the termination of the obligations of the City under this section pursuant to subsection (d); (D) any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and (E) any change in the fiscal year of the City. (c) Manner of Disclosure. (1) The City agrees to make available to the MSRB, in an electronic format as prescribed by the MSRB from time to time, the information described in subsection (b); (2) All documents provided to the MSRB pursuant to this subsection (c) shall be accompanied by identifying information as prescribed by the MSRB from time to time. (d) Term, Amendments, Interpretation. (1) The covenants of the City in this section shall remain in effect so long as any Bonds are Outstanding. Notwithstanding the preceding sentence, however, the obligations of the City under this section shall terminate and be without further effect as of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the City to comply with the requirements of this section will not cause participating underwriters in the primary offering of the Bonds to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This section (and the form and requirements of the Disclosure Information) may be amended or supplemented by the City from time to time, without notice to (except as provided in paragraph (c)(3) hereof) or the consent of the Owners of any Bonds, by a resolution of this Council filed in the office of the recording officer of the City accompanied by an opinion of Bond Counsel, who may rely on certificates of the City and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement (a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity, nature or status of the City or the type of operations conducted by the City, or (b) is required by, or better complies with, the provisions of paragraph (b)(5) of the Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (b)(5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary 17 4829-3605-3874\3 offering; and (iii) such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the City agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, of the change in the type of financial information or operating data being provided hereunder. (3) This section is entered into to comply with the continuing disclosure provisions of the Rule and should be construed so as to satisfy the requirements of paragraph (b)(5) of the Rule. SECTION 10. CERTIFICATION OF PROCEEDINGS 10.01. Registration and Levy of Taxes The City Administrator is hereby authorized and directed to file a certified copy of this Resolution in the records of McLeod County, together with such additional information as required, and to obtain a certificate that the Bonds have been duly entered upon the County Auditor's bond register and the tax required by law has been levied. 10.02. Authentication of Transcript The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney LLP, Bond Counsel, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records in their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the correctness of all statements contained therein. 10.03. Official Statement The Preliminary Official Statement relating to the Bonds, dated as of [], 2018, prepared and distributed by Ehlers & Associates, Inc., is hereby approved. Ehlers & Associates, Inc., is hereby authorized on behalf of the City to prepare and distribute to the Purchaser within seven business days from the date hereof, a Final Official Statement listing the offering price, the interest rates, selling compensation, delivery date, the underwriters and such other information relating to the Bonds required to be included in the Official Statement by Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. 10.04. Authorization of Payment of Certain Costs of Issuance of the Bonds. 18 4829-3605-3874\3 The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to Klein Bank on the closing date for further distribution as directed by the City's municipal advisor, Ehlers & Associates, Inc. Attest: Mayor City Administrator The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon, the following Councilmembers voted in favor thereof - and the following Councilmembers voted against the same: whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, which was attested by the City Administrator. 19 4829-3605-3874\3 EXHIBIT A UNITED STATES OF AMERICA STATE OF MINNESOTA CITY OF HUTCHINSON GENERAL OBLIGATION SEWER SYSTEM BOND, SERIES 2018B R-14956 Interest Rate REGISTERED OWNER: PRINCIPAL AMOUNT: Maturity Date February 1, 20 CEDE & CO. Date of Original Issue November 1, 2018 THOUSAND DOLLARS CUSIP No. CITY OF HUTCHINSON, MINNESOTA (the "City"), acknowledges itself to be indebted and hereby promises to pay to the registered owner named above, or registered assigns, the principal amount specified above on the maturity date specified above and promises to pay interest thereon from the date of original issue specified above or from the most recent Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided for, at the annual rate specified above, payable on February 1 and August 1 of each year, commencing August 1, 2019 (each such date, an "Interest Payment Date"), all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest so payable on any Interest Payment Date shall be paid to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. Interest hereon shall be computed on the basis of a 360-day year composed of twelve 30-day months. The interest hereon and, upon presentation and surrender hereof at the principal office of the Registrar described below, the principal hereof are payable in lawful money of the United States of America drawn on Bond Trust Services Corporation in Roseville, Minnesota, as bond registrar, transfer agent and paying agent (the "Registrar"), or its successor designated under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. This Bond is one of an issue in the aggregate principal amount of $[1,625,000] issued pursuant to a resolution adopted by the City Council on October 9, 2018 (the "Resolution"), to finance improvements to the City's stormwater utility system (the "System"), including the South Central Drainage Project (the "Project"). This Bond is issued by authority of and in strict accordance with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Section 444.075 and Chapter 475. For the full and prompt payment of the principal of and interest on the Bonds as the same become due, the full faith, credit and taxing power of the City have been and are hereby irrevocably pledged. The Bonds are issuable only in fully registered form, in denominations of $5,000 or any integral multiple thereof, of single maturities. B-1 4829-3605-3874\3 Bonds maturing in 2028 and later years are each subject to redemption and prepayment at the option of the City, in whole or in part, and if in part in such order of maturity dates as the City may select and by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in multiples of $5,000 as to Bonds maturing on the same date, on February 1, 2027, and on any date thereafter, at a price equal to the principal amount thereof plus accrued interest to the date of redemption. Prior to the date specified for the redemption of any Bond prior to its stated maturity date, the City will cause notice of the call for redemption to be published if and as required by law, and, at least thirty days prior to the designated redemption date, will cause notice of the call to be mailed by first class mail (or, if applicable, provided in accordance with the operational arrangements of the bond depository), to the registered owner of any Bond to be redeemed at the owner's address as it appears on the Bond Register maintained by the Registrar, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of such Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS - ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] [Bonds maturing in the years 20 and 20 shall be subject to mandatory redemption, at a redemption price equal to their principal amount plus interest accrued thereon to the redemption date, without premium, on February 1 in each of the years shown below, in an amount equal to the following principal amounts: Term Bonds Maturing in 20 Sinking Fund Payment Date (final maturity) Aggregate Principal Amount Term Bonds Maturing in 20 Sinking Fund Payment Date (final maturity) Notice of redemption shall be given as provided in the preceding paragraph.] Aggregate Principal Amount As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner's attorney, and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the designated transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date; subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to any such transfer or exchange. The Bonds have been designated as "qualified tax-exempt obligations" pursuant to Section 265(b) of the Internal Revenue Code of 1986, as amended. B-2 4829-3605-3874\3 The City and the Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Registrar shall be affected by any notice to the contrary. Notwithstanding any other provisions of this Bond, so long as this Bond is registered in the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any other nominee of The Depository Trust Company or other securities depository, the Registrar shall pay all principal of and interest on this Bond, and shall give all notices with respect to this Bond, only to Cede & Co. or other nominee in accordance with the operational arrangements of The Depository Trust Company or other securities depository as agreed to by the City. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required; that by the Resolution, the City has covenanted and agreed to impose and collect, or cause to be imposed and collected, charges for the service, use and availability of the System at the times and in the amounts required to produce net revenues which, together with any other funds appropriated by the City, will be receivable in the years and in amounts sufficient to produce sums not less than five percent in excess of the principal of and interest on the Bonds when due; that if necessary for payment of principal and interest on the Bonds, ad valorem taxes are required to be levied upon all taxable property in the City, without limitation as to rate or amount; and that the issuance of this Bond, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Registrar by manual signature of one of its authorized representatives. B-3 4829-3605-3874\3 IN WITNESS WHEREOF, the City of Hutchinson, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile signatures of the Mayor and City Administrator. CITY OF HUTCHINSON, MINNESOTA (Facsimile Signature - City Administrator) (Facsimile Signature — Mayor) CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. Date of Authentication: BOND TRUST SERVICES CORPORATION, as Bond Registrar RE Authorized Representative B-4 4829-3605-3874\3 The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM --as tenants in common UTMA ................. as Custodian for .................. (Cust) (Minor) TEN ENT --as tenants by the entireties under Uniform Transfers to Minors Act ........................... (State) JT TEN --as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: NOTICE: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Registrar, which requirements include membership or participation in STAMP or such other "signature guaranty program" as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. Please insert social security or other identifying number of assignee: B-5 4829-3605-3874\3 CERTIFICATE OF MCLEOD COUNTY AUDITOR AS TO REGISTRATION AND TAX LEVY The undersigned, being the duly qualified and acting County Auditor of McLeod County, Minnesota, hereby certifies that there has been filed in my office a certified copy of a resolution duly adopted on October 9, 2018, by the City Council of the City of Hutchinson, Minnesota, setting forth the form and details of an issue of $[1,625,000] General Obligation Stormwater Revenue Bonds, Series 2018B, dated as of November 1, 2018. I further certify that the issue has been entered on my bond register, as required by Minnesota Statutes, Sections 475.61 through 475.63. WITNESS my hand and official seal this day of , 2018. McLeod County Auditor (SEAL) 4829-3605-3874\3 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Liquor License Violation - Sonora's Department: Administration LICENSE SECTION Meeting Date: 10/9/2018 Application Complete N/A Contact: Marc Sebora Agenda Item Type: Presenter: Marc Sebora Reviewed by Staff New Business Time Requested (Minutes): 0 License Contingency Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: As you may recall, an employee of Sonora's Mexican restaurant plead guilty to the charge of selling alcohol to a minor during an alcohol compliance check that took place on March 21, 2017. This criminal conviction triggered license consequences against Sonora's under Hutchinson's liquor licensing ordinance. The Council had previously appointed Steve Cook and Mary Christensen as a sub -committee to conduct a hearing into the violation and to determine what, if any, license consequences Sonora's should suffer. Sonora's retained attorney Julie Hanjani to assist them in this matter. There have been discussions between myself, Ms. Hanjani and the subcommittee, and as a result, the sub -committee is recommending the following as license sanctions to be imposed against Sonora's for this violation: 1. There are to be no sales of alcohol on the Sonara's premises for a consecutive Wednesday, Thursday, Friday and Saturday prior to November 1, 2018. 2. Pay an administrative penalty in the amount of $1,250.00 by December 1, 2018. Attached you will find correspondence from Ms. Hanjani agreeing to these penalties. Should you have questions about this, I would be happy to address them at the City Council meeting. BOARD ACTION REQUESTED: Approve recommended sanctions for Sonora's liquor license violation 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: JULIE WACKER HANJANI Attorney at Law 228 Main Street South, Suite 130, Hutchinson, MN 55350 Telephone:320-587-2232 Fax:320-587-5367 hanjani@hutchtel.net October 1, 2018 Mr. Marc Sebora Hutchinson City Attorney 111 Hassan Street SE Hutchinson, MN 55350 RE: Sonora's Liquor License Violation Dear Mr. Sebora: Your letter dated September 19, 2018, has been received and the consequences listed will be complied with by my client. Sonora's will be exercising the closure of liquor sales Wednesday, October 3, 2018, through Saturday, October 6, 2018. Please advise how or if you would like verification. As for th .00 administrative penalty, please provide the date in which it will be due. Sincerely, Wacker Hanjani Attorney at Law ]WHlka cc: Sonora's Restaurant HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Approve Rescheduling the Second City Council Meeting Date in December Department: Administration LICENSE SECTION Meeting Date: 10/9/2018 Application Complete Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff New Business Time Requested (Minutes): 1 License Contingency Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: Our second meeting date in December falls on Tuesday, December 25 which is obviously Christmas. With December 25 being a holiday, we cannot conduct city business on this day. With that being said, staff is looking for the Council to reschedule this meeting date. Staffs preference would be to reschedule it for Thursday, December 27 at 5:30 p.m. The alternatives would be to do it on Thursday, December 20 or Wednesday December 26 at 5:30 p.m. BOARD ACTION REQUESTED: Approve rescheduling the second meeting date in December 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: Library Board Meeting Minutes Monday, August 27 @ 4:27 pm Present: Steve Bailey, Gerry Grinde, Carolyn Ulrich, Julie Lofdahl, Kristine Leutze, Jack Sandberg Excused: Mary Christensen Review and approve minutes from the July 23, 2018 meeting: Motion to approve by Kristine, seconded by Carolyn, Minutes APPROVED Old Business: Program Update: Schiffelly Puppets Great attendance of over 300 people for the final program for the summer. Thank you to the State Theater and Friends of the Library for supporting this event. The program was at the State Theater and The Friends paid for the program. Master Gardener Programs The first program was for the children. It was a Monarch butterfly program. There was not enough time to promote this program, but there will be another program in October for the children. The Master Gardeners will be alternaternating each month with a children program and an adult program. Thursday, September 20th will be the first adult program on how to put a garden to bed for the winter. The programs will be tied to literacy by having books available for the topic of the program. The adult program will hopefully bring a different group of patrons to the library. This is a way to address audiences in a different way. PLS Strategic Plan (Head Librarian monthly report): Highlighted Goal Area = Partners A. Use Library Friends and Local Library Advisory Board effectively for advocacy support. The Hutchinson Friends of the Library is a very active group with their financial support with collections and programs. The Hutchinson Library Board meets monthly and helps with promoting and attending events. They are a good resource of support for Katy. B. Build positive connections between the library and other community organizations in order to achieve shared goals and outcome for the community. Katy is always looking for opportunities. The Master Gardener Programs is an example. C. Maintain and expand strong connections to other regional libraries and library organizations. The Hutchinson and Winsted Libraries tag -team on many programs. One may have an afternoon event with an author and the other will have that author in the evening. Katy also gets to the other libraries in McLeod County. Other librarians are a great resource for Katy as are other libraries such as New Ulm, Great River and the Twin Cities. We tap into other libraries to get books we do not have. New Business: Library Board Term Renewals Jack and Gerry renewed to 2021; Carolyn and Kristine renewed to 2020; Steve Bailey and Julie Lofdahl term - out 2019. Katy said to be thinking of people to nominate to the board. MN Author Program — Christopher Valen — Thursday, Sept. 13 at 7 p.m. Event will be at the Event Center because of Arts and Crafts festival. Carolyn is reading the first book. It started slow but she is really enjoying it now. Gerry has read all of his books and really enjoys them. Katy said the books from the series are continuously checked out. Next program is a non-fiction family memoir, How Did You Find Me ... AfterAll These Years? by Dennis and Karen Vinar. Program will be at the Senior Center in the Event Center on September 26 at 10:30 am. Library Assistant I Job Posting Tayler VanderHeiden accepted a teaching position in Minneapolis which opened up an entry level position working a few hours on Wednesdays and Fridays with a Saturday rotation. Minnesota Library Association (MLA) Conference Oct. 11 & 12, St. Cloud Katy, Sherry and Rachelle will be attending the conference. Rachelle and Sherry's cost will be paid by a grant. MN Dept. of Education Construction grant Bayley Schluter is helping with writing a grant for repairing the roof. Grant may include funds for updating bathrooms and other needed repairs. JJ Verhey, maintenance person from the City of Hutchinson is also helping with what work is needed to be done. The City of Hutchinson will actually be applying for the grant and will provide matching funds. Katy may attend a Design Institute to get a better feel for what needs to be done. Library Buzz — What Have You Been Reading/Watching? Steve: Read four books this month. White Tombs was a great book; Last Wild Men of Borneo was a fascinating book; There There is an important non-fiction read by Tommy Orange about urban Indian life in Oakdale, CA; The Goldfinch got caught up in the mystery of it. Kristine: The Feather Thief is an amazing book, highly recommends; The Mars Room, doesn't really recommend; The Female Persuasion she gave up on this book and does not recommend Gerry: Read the 17th or 18th volume of Daniel Silva spy novels, good series; Gone to Dust by Matt Goldman a Minnesota author, it is a book set in Edina in the winter; Who We Are and How We Got Here, a book about ancient DNA, difficult book to read. Katy: Clock Dance by Anne Tyler; A Noise Downstairs, a confusing book, got to end, very disappointing; The Mercy Seat book about a black man waiting death sentence for raping a white woman. Carolyn: Read 12 books most mysteries; reading book 7 of series of Charles Finch; others read were Female Intelligence, The Word is Murder, Second Line of Defense, Craeft: An Inquiry Into the Origins and True Meaning of Crafts, The Hello Girls, Jack: The Jack London Reader, reading a lot of Soccer rule books and books on butterflies; reread The Secret of the Ninth Planet which was the first book he loaded on his Kindle. Julie: Read a couple of cozy mysteries and magazines. Motion to adjourn, adjourned at 5:23 p.m. Next meeting: September 24, 2018 @ 4:30 p.m. Submitted by Julie Lofdahl, Secretary July 2018 Donations Patron donation $57.60 To: Mayor and Council From: Candice Woods, Liquor Hutch Director Date: 10/01/18 Re: Liquor Hutch Sales January —Sept 2018 2017 2018 Change Year to Date Sales: $4,503,325 $4,567,747 1.4% Increase Liquor $1,482,594 $1,518,509 2.4%increase Beer $2,260,180 $2,276,254 0.7%increase Wine $ 662,226 $ 668,212 0.9%increase Year to Date Gross Profit Dollars: $1,146,789 $1,178,239 2.7% increase Year to Date Customer Count: 181,364 183,601 1.2% increase Average Sale per Customer: $24.83 $24.88 $0.05 increase Gross Profit Percentage: 25.47% 25.80% .33% increase Store Activity Highlights (July — Sept): • Rain and Cooler weather affect beer/wine sales in July and Sept..... Liquor sales generally show increases with cooler temps. August sales were up as weather cooperated! • Annual 25% Off Wine Sale held July 18' -25tn • First Tuesday Product Knowledge Trainings for Staff held August (Whiskey) and September (Vodka) • Quarterly Staff Training covers Legal Sales, Store Procedures/Policies and Product Knowledge Training • Off Site Events 2018-2019 Schedule kicks off with GrapeVine Wine Tasting on Sept 20tn • Full Time Staff attends MMBA Regional meeting — information includes legislative updates, employee hiring and retention training. • 4t" Quarter Holiday purchasing and merchandising begun • Holiday Focus Products/Buys done for high gross profit sales in last quarter Further details of all statistics have been provided to the Administrative Department. Please feel free to contact me with any questions or requests for additional data. Planning, Zoning and Building Dept. Monthly Report 2nd Quarter 2018 Building Department Permit Activities 2nd Qtr. 2017 2nd Qtr. 2018 2017 Year to Date 2018 Year to Date Total Number Inspections 964 885 342 1232 Total Number Plan Review 66 67 19 92 Building Permits Issued by Type Number of Permits & Valuation Number of Permits & Valuation Year to Date Number Permits & Valuation Year to Date Number Permits & Valuation Commercial (new) 5 $4,342,059.00 0 $0.00 A 6 $7,310,749.00 2 $6,761,366.00 Commercial ( additions/remodels) 27 $3,584,866.00 26 $4,035,430.00 E 34 $41,155,872.00 36 $5,920,845.00 Total Commercial 32 $7,926,925.00 26 $4,035,430.00 40 $48,466,621.00 38 $12,682,211.00 Industrial (new) 0 $0.00 0 $0.00 0 $0.00 0 Industrial (additions/remodels) 5 $622,767.00 5 $1,826,600.00 5 $622,767.00 8 $2,744,600.00 Total Industrial 5 $622,767.00 5 $1,826,600.00 5 $622,767.00 8 $2,744,600.00 Fire Sprinkling 9 $53,114.00 8 $300,108.00 12 $61,160.00 11 $351,288.00 New Residential 10 $1,859,901.00 12 $2,382,979.00 12 $2,257,284.00 13 $2,586,920.00 Residential mist (additions/remodels) 42 $391,657.00 50 $161,703.00 59 $458,747.00 71 $534,274.00 Set Fee permits (reside, reroof, window) 897 $0.00 344 $0.00 956 415 HRA Permits 2 $30,000.00 0 $0.00 4 $60,600.00 0 $0.00 Waived Fees 0 $0.00 0 $0.00 0 $0.00 1 $4,000.00 Subtotal Building Permits 997 $10,884,364.00 445 $8,706,820.00 1088 $51,927,179.00 557 $18,903,293.00 Mechanical 54 $392,032.00 70 $855,632.00 97 $5,187,095.00 107 $1,789,285.00 HRA Mechanical 1 $0.00 0 $0.00 1 0 Plumbing 32 $0.00 28 $0.00 53 53 HRA Plumbing 0 $0.00 0 $0.00 1 0 Total Valuation 1084 $11,276,396.00 543 $9,562,452.00 112401 $57,114,274.00 717 $20,692,578.00 *Set fees not included in valuation A Commercial New B Commercial/Ind. Remodel 1300 Hwy 15 S (Walmart remodel)- $1,500,000; 50 West Highland Park Dr NE (Uponor loading docks) - $845,000; 50 W Highland Park Dr. NE (Uponor tooling room) - $700,000; 1095 Hwy 15 S (Hutch Health C urgent care) - $500,000; 1320 Hwy 15 S 103 (Pet Smart buildout) - $425,000 New Single Family 1278Denver Ave SE - $208,940; 174 Summerset Ln SE - $154,561; 874 Hunter St SW - $267,909; 1424 Sherwood St SE - $186,552; 1430 Sherwood St SE - $186,552; 140 Morningside Dr NE- $168,852; 465 Ottawa Ave SE - $200,976; 1542 9th Ave SW - $193,738; 108 Oakland Ave SE - $220,773; 134 Summerset Ln SE - $206,349; 424 Grant Ave SE - $171,216; 1100 West Shore Dr SW - $216,561 Other Building Inspection Activities 04/12 - MN CCLD Spring Seminar: 5/17 - AMBO Board mtg; 5/22 - ADA Business Compliance and Accessibility Edu Seminar; 5/23 - SW MN Chapter mtg; June 14th - Highfield Apartment Pre - development; 6/20 - HQS inspection; 6/21 - Vet Clinic mtg; June 29th - Building officials Forum MNDLI Evergreen Meals served April - May Week of Hutchinson Park Towers Silver Lake Glencoe Brownton Stewart week 700 262 49 446 82 232 week 979 303 103 639 168 356 week 1075 364 113 649 107 380 week 855 330 157 489 278 212 week 585 156 43 262 65 132 4194 1415 465 2485 700 1312 Total Meals served April - May 10571 Dates Closed April 3rd ; May 28th (Memorial Day); Planning and Zoning Quarterly Activities Year: 2nd Quarter, 2018 Activity Number Additional Info. Number of Planning Applications Reviewed and 1 White Hawk Vacation of Easements; Processed Number of Joint Planning Board Applications 7 Woodview Acres Preliminary Plat and Reviewed and Processed Vacation of Easements: Vacation of Easements Sioux Hills; Variance Sioux Hills; Amendment to Airport Zoning; CUP for shoreline alteration Acme Acres; Variance for lot size Woodview Acres 5th Number of Planning Commission Meetings 2 V Ave Recycling CUP; Southfork CUP and Vacation of Easements; Chapter 90 ROW Management; Chapter 154.119 Telecommunications; White Hawk Village Easements Number of Joint Planning Meetings 2 Woodview Acres Preliminary Plat and Vacation of Easements; Vacation of Easement Sioux Hills; Variance Sioux Hills; Amendment to Airport Zoning Number of Zoning Reviews for Building Permits 43 (Compliance with Zoning Code) Number of Land Use Permits Issued - (Fences, 71 small sheds, patios, driveways, detached decks, etc.) Number of Zoning Review for Sign Permits 24 Number of Predevelopment/Pre Application 7 Highfield Apartments, Warrior Meetings Manufacturing, Vet Clinic, Jay Malone, Wurdell, Broll, New Century Academy Number of Misc. Planning Meetings 60 City Council - 6 PBZ Staff Mtg - 5 Directors Mtg - 6 Public Arts - 3 Resource Allocation Mtg - 3 Facilities Update - 5 Planning Staff - 2 HDC Steering Committee Ian McDonald Jerry Buck Marc Telecky - 2 Small Cell HH Mtg New Century Academy Fields David Broll Strategic Planning Konica Minolta Training McLeod Historic Partnership Mtg Workforce Housing Training ESC Permit Inspection Discussion JPB ( Malone ) - 2 Council Workshop/Budget Land Use Training Historic Signage Mtg Park Master Plan MCHP Mtg Laserfiche Facility Study Dan VanOverbeke Civic Arena Facility Project Warrior Manufacturing ROW Telecom Ordinance Koford Vet Clinic Land Use Law Seminar Number of Zoning Enforcement Cases 6 Pool,signs Number of Walk -In Customers Served 1094 Site Visits 15 HHS, Cobblestone Hotel, New Century, White Hawk, Summerset, Monroe St, Southfork, Maplewood, Highfield, Pool Complaint, 7 Hi Pool, Recycle Center