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cp04-23-19HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, APRIL 23, 2019 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 — Church of Jesus Christ of Latter-day Saints (The invocation is a voluntary expression of the private 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. 15033 — Resolution Accepting $25.00 Donation from Lemoine & Lois Grams to the Hutchinson Police Department Towards the Law Enforcement Memorial Park Fund 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 April 9, 2019 CONSENT AGENDA (The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed.) 7. APPROVAL OF CONSENT AGENDA I (a) Consideration for Approval of Issuing Parade Permit for Memorial Day Parade on May 27, 2019 (b) Consideration for Approval of Issuing Carnival Permit to J&K Amusements May 30 — June 2, 2019, at Hutchinson Mall (c) Consideration for Approval of 45t' Annual Arts & Crafts Festival to Be Held September 13 & 14, 2019, in Library Square (d) Consideration for Approval of Dairy Day Celebration on June 7, 2019 CITY COUNCIL AGENDA April 23, 2019 (e) Consideration for Approval of Hutchinson Jaycee Water Carnival Requests (f) Consideration for Approval of Items for South Grade Road Corridor Improvements Project (Letting No. 2, Project No. 19-02) 1. Resolution No. 15035 - Resolution Ordering Preparation of Report on Improvement 2. Resolution No. 15036 - Resolution Receiving Report and Calling Hearing on Improvement (g) Consideration for Approval of Items for Water Treatment Plant Reverse Osmosis Membrane Replacements (Letting No. 9, PrcjectNo. 19-10) 3. Resolution No. 15038 - Resolution Ordering Preparation of Report on Improvement 4. Resolution No. 15039 - Resolution Receiving Report and Calling Hearing on Improvement (h) Consideration for Approval of Resolution No. 15032 — Resolution Establishing Location for Traffic Control Devices (i) Consideration for Approval of Change Order No. 1 — Letting No. 15, Project No. 18-15 (2018 Airport Improvements) (j) Consideration for Approval of Resolution No. 15034 - Resolution Authorizing Entering Into Lease Agreement for Compost Turner (k) Consideration for Approval of Resolution No. 15037 — Resolution Approving Site Plan, Conditional Use Permit, Preliminary and Final Plat of Prince of Peace Second Addition, and Vacation of Alley to Construct an Addition to Prince of Peace Senior Apartments Located at 301 Glen Street SW, 306, 316, 326 Franklin Street SW With Favorable Planning Commission Recommendation (1) Claims, Appropriations and Contract Payments — Register A 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B 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.) 9. HUTCHINSON POLICE DEPARTMENT 2018 YEAR END REPORT 10. REVIEW OF TRUNK HIGHWAY 15/MAIN STREET PROJECT ITEMS 11. DISCUSSION ON AMENDING CHAPTER 93 OF THE HUTCHINSON CITY CODE PERTAINING TO CHICKENS 12. DISCUSSION ON SENDING A REPRESENTATIVE TO THE TRANSPORTATION ALLIANCE FLY -IN 2 CITY COUNCIL AGENDA April 23, 2019 UNFINISHED BUSINESS NEW BUSINESS 13. APPROVE/DENY AMENDING VFW POST 906'S LIQUOR LICENSE TO INCLUDE LIQUOR CONSUMPTION IN OUTSIDE SEATING AREA 14. APPROVE/DENY FIRST READING OF ORDINANCE NO. 19-799 — AN ORDINANCE OF THE CITY OF HUTHCINSON TO REZONE PROPERTIES AT 306,316 AND 326 FRANKLIN STREET SW FROM R-2 (MEDIUM DENSITY RESIDENTIAL) TO R-4 (HIGH DENSITY RESIDENTIAL) AS REQUESTED BY PRINCE OF PEACE 15. APPROVE/DENY ADVERTISEMENT FOR BIDS FOR THE 2019 RECREATION CENTER GYMNASIUM ROOF AND EXTERIOR WALLS UPGRADE/IMPROVEMENT PROJECT 16. APPROVE/DENY REQUEST FOR PROPOSALS FOR CITY MARKETING AND BRANDING INITIATIVE 17. APPROVE/DENY DIRECTION ON CITY PLAT MAPS GOVERNANCE e purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 18. APPROVE/DENY UPDATES TO CITY POLICIES (a) Employee Uniform and Clothing Policy (b) Safety Clothing and Protective Clothing & Equipment Policy 19. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) Snow Removal & Ice Control Report for March 2019 b) City of Hutchinson Financial Report and Investment Report for March 2019 �c) Hutchinson Housing & Redevelopment Authority Board Minutes from March 19, 2019 d) Planning Commission Minutes from February 19, 2019 (e) Planning, Zoning, Building Department Quarterly Report NHSCELLANEOUS 20. STAFF UPDATES 21. COUNCIL/MAYOR UPDATE ADJOURNMENT CITY OF HUTCHINSON RESOLUTION NO. 15033 RESOLUTION ACCEPTING DONATION WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17,- and WHEREAS, the following person(s) has offered to contribute the cash amount set forth below to the city: Name of Donor Lemoine & Lois Grams Amount $25.00 Donation Date 4/4/2018 WHEREAS, such donation has been contributed to the Hutchinson Police department towards 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 23rd day of April 2019. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor HUTCHINSON CITY COUNCIL MEETING NHNUTES TUESDAY, APRIL 9, 2019 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 Steve Cook, Chad Czmowski, Dave Sebesta, 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 Czmowski, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — New Journey UCC (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 John Olson, Public Works Manager, commented that the area's snow plow operators received a lunch bag of goodies along with a poem from an anonymous group of women thanking them for the work they have done this season. (a) Arbor Day Proclamation Mayor Forcier read a Proclamation proclaiming April 26, 2019, as Arbor Day and the month of May 2019 as Arbor Month in the City of Hutchinson. (b) Resolution No. 15022 — Resolution Accepting $60,000 Donation from Burich Foundation of the Minnesota Community Foundation for Purchase of New Zamboni Ice Resurfacer (c) Resolution No. 15027 — Resolution Accepting $3504.00 Donation from Glen Kurth for New Bench at Veterans Memorial Field Motion by Cook, second by Sebesta, to approve Resolution Nos. 15022 and 15027. Motion carried unanimously. 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 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 Lt. Gifferson approached the Council. Lt. Gifferson noted that he has been asked to provide an update on how the police department is addressing the turkey issues throughout neighborhoods. Lt. Gifferson explained that beginning in 2016 the police department had started receiving complaints of turkeys in neighborhoods. In 2017, the MN DNR provided the HPD a permit to harvest 10 turkeys. CITY COUNCIL MINUTES April 9, 2019 This can be problematic as flocks of turkeys can be up to 30-40. The department has purchased some net guns that will capture the turkeys, however the DNR will not allow relocation of the turkeys, only to harvest them. When the turkeys are captured, they have been given to the local meat markets to be processed and donated to the food shelf. The DNR treats the turkeys as wild birds and therefore the City is only allowed to harvest the amount they have been allowed. One way to help address the number of turkeys is to ask residents not to feed them. Mr. Jaunich noted that one idea is to enact an ordinance that does not allow feeding of wild turkeys, but enforcement can be an issue. The department can approach the DNR this year to see if they could perhaps be allowed to harvest more than ten. 6. APPROVAL OF MINUTES (a) Regular Meeting of March 26, 2019 Motion by Czmowski, second by Cook, to approve the 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 I (a) Consideration for Approval of South Grade Road Traffic Signal Materials (b) Consideration for Approval of Out of State Travel for Kent Exner to Attend American Public Works Association National Conference in Seattle, WA, from September 7 — 11, 2019 (c) Consideration for Approval of Issuing Short -Term Gambling License to Saturday Night Cruisers Car Club (d) Consideration for Approval of Resolution No. 15023 - Resolution Approving State of Minnesota Joint Powers Agreement with the City of Hutchinson on Behalf of its Police Department Regarding the Minnesota Internet Crimes Against Children Task Force (e) Consideration for Approval of Resolution No. 15024 — Resolution Amending the City Flexible Benefit Plan to Designate Sun Life Assurance Company of Canada as Dental Claims Administrator of the Plan (f) Consideration for Approval of Items for 5t' Avenue South Reconstruction Project (Letting No. 1, Project No. 19-01) 1. Resolution No. 15025 - Resolution Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment 2. Resolution No. 15026 - Resolution for Hearing on Proposed Assessment (g) Consideration for Approval of Resolutions for Department of Education Library Grant 1. Resolution No. 15028 — State Library Construction Grant 2. Resolution No. 15029 — Authorizing Matching Funds for Library Construction Grant From the Minnesota Department of Education 2 CITY COUNCIL MINUTES April 9, 2019 3. Resolution No. 15030 — State Library Construction Grant 4. Resolution No. 15031 — Authorizing Matching Funds for Library Construction From the Minnesota Department of Education (h) Appointments to Boards/Commissions - Margaret Hoff to Library Board to April 2021 (i) Claims, Appropriations and Contract Payments — Register A Item 7(g) was pulled for further discussion Motion by Christensen, second by Czmowski, to approve Consent Agenda I with the exception of Item 7(g). Motion carried unanimously. Item 7(g) had further discussion. Council Member Cook asked about the roof improvement. Dan Jochum, Planning/Zoning/Building Director, noted that better pricing was received than anticipated so this is the same work that is included in the capital improvement plan. Motion by Cook, second by Czmowski, to approve Item 7(g). Motion carried unanimously 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B Motion by Cook, second by Czmowski, with Forcier abstaining, to approve Consent Agenda II. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. - NONE purpose o t is portion o t e agen a is to provi e t e ounci with information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) 9. ECONOMIC DEVELOPMENT AUTHORITY 2018 YEAR END REPORT Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt provided an overview of the activities of the EDA for the past year. One of the main drivers and areas of focus is being able to provide a skilled workforce which includes the TigerPath initiative. Mr. Seppelt explained the strategies of TigerPath. Mr. Seppelt also spoke about major projects accomplished in 2018 including Cobblestone Hotel, Hutchinson Enterprise Center, and recruitment of a new company (FireLake Manufacturing). In addition, the Japanese Consul -General visited Hutchinson. Current projects include TigerPath, development of Technology Drive for Uponor, Clinic Site redevelopment and Cenex site redevelopment. 10. DISCUSSION ON EMERALD ASH BORER PROGRAM AND INCREASING FUNDING TO THE TREE MITIGATION FUND Council Member Cook spoke before the Council. Council Member Cook asked if the Council would be willing to designate additional monies to the tree fund to help extend the tree life in the high density areas. Council Member Cook asked if some money could be allocated this year with some areas targeted and next year set aside some more money. This is a way to mix in more tree diversity in high density areas so when EAB actually arrives in Hutchinson other trees will have already been CITY COUNCIL MINUTES April 9, 2019 established. Mr. Jaunich noted that a balance of $446,000 was in the tree mitigation fund at the end of 2018. Mayor Forcier commented that he feels the tree mitigation fund is healthy now and he would like to address the issue later if more money is needed. Each year funds are already allocated to the tree mitigation fund. Council Member Cook noted that 40 trees are outlined to be diversified annually and he asked if more could be added. Mr. Jaunich noted that overall this is a policy decision of the Council. He explained the various funds and their balances. Council Member Cook expressed that he feels the opportunity is now to start allocating funds and not be reactive down the road. He is suggesting to allocate an additional $100,000 to the tree mitigation fund to accelerate a diversification project. John Olson, Public Works Manager, presented before the Council. Mr. Olson spoke about costs associated with removing and replanting all trees if infested with EAB, which is estimated at $1.5 million. He stated that an additional $100,000 would aid in removing and replanting almost triple the amount of trees this year than planned. The Council agreed that they would like to have staff put a plan together to address tree diversification related to impending emerald ash borer with an additional $100,000 allocated this year and bring back to the Council for authorization to proceed. 11. DISCUSSION ON REQUEST FOR PROPOSALS FOR CITY MARKETING AND BRANDING INITIATIVE Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that last January the Council discussed creating a marketing plan for the City. It was suggested that the City start working on a marketing campaign to promote the community and attract more residents and businesses. It was noted that the idea would be to target an audience of families and potential workforce employees that touts Hutchinson's quality of life, job opportunities, quality education, proximity to the Twin Cities, etc. The campaign could include a series of advertisements highlighting different aspects of the community. Staff was asked to put together a Request for Proposals therefore Mr. Jaunich has provided a draft RFP for discussion purposes. In addition, the City logo could use some updating. Council Member Cook expressed that he would like a bit more focus on targeting young families as part of the marketing campaign. Council Member Czmowski noted that he has no issues with going out for an RFP however he expressed that he does not feel people would move to Hutchinson because of an advertisement they see. He feels people move to a community due to economic reasons or family connections or something along those lines. UNFINISHED BUSINESS 12. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 19-798 - ORDINANCE REGULATING SMOKING IN CITY PARKS Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that no changes have been made since the last meeting. Mayor Forcier noted that someone had approached him with some concerns of the prohibited areas at Roberts Park. It was clarified that no smoking would be allowed in the ball field areas, including spectator areas, concession stands and restrooms, and not within 25 feet of playgrounds. Motion by Czmowski, second by Christensen, to approve second reading and adoption of Ordinance No. 19-798. Motion carried unanimously. .19 CITY COUNCIL MINUTES April 9, 2019 NEW BUSINESS 13. APPROVE/DENY ISSUING MASSAGE LICENSE TO KILEY KRUGGEL AT 140 MAIN STREET SOUTH Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that Ms. Kruggel has applied for a massage license to operate a massage facility at Robert Michel's Salon located at 140 Main Street South. Ms. Kruggel has submitted all required documentation. Motion by Czmowski, second by Sebesta, to approve issuing massage license to Kiley Kruggel at 140 Main Street South. Motion carried unanimously. 14. APPROVE/DENY THE ESTABLISHMENT OF THE PLANNING/BUILDING/EDA TECHNICIAN POSITION AND APPROVE RESOLUTION NO. 15020 TO AMEND THE 2019 COMPENSATION PLAN TO REFLECT THE CHANGE TO THE POSITION CLASSIFICATION TABLE Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that staff is requesting that the position of Planning/Building/EDA Technician be established. The request is for a couple of different reasons. One is that the EDA has had a very difficult time finding quality interns and having regular and reliable support staff to allow the EDA to function efficiently and effectively. A strong support staff is needed with the addition of the incubator building, the loan portfolio of the EDA, the EDA's involvement with the Downtown Association and the EDA's involvement with TigerPath. In addition, the Planning/Building Department has struggled with staffing the front desk during busy times since 2017. Both the EDA Director and the Planning Director believe there is a well -qualified individual currently working for the City on a temporary basis and desire to bring that individual on staff regularly. The addition of this position would eliminate the need for two part-time/seasonal positions. A position description has been prepared. The establishment of this position would address staffing needs for both the EDA and the Planning/Building Department and would eliminate the need for the seasonal temporary position of Planning/Building Office Worker and the temporary position of EDA Intern. Staff is requesting that the compensation plan be amended to reflect this change. Motion by Czmowski, second by Christensen, to approve establishing Planning/Building/EDA Technician position and approve Resolution No. 15020. The EDA budget and the Planning/Zoning (general fund) departments would fund the position. This is a 32-hour/week position. Motion carried unanimously. 15. APPROVE/DENY COMPOST TURNER ACQUISITION Andy Kosek, Creekside Manager, presented before the Council. Mr. Kosek explained that the compost fund has budgeted to replace its 2004 compost turner. In January, the Council authorized staff to seek bids. Two eligible bids and one ineligible bid was received. The ineligible bid was submitted erroneously and therefore was not considered. Staff is recommending to purchase a 2017 demo unit, reflecting a savings of $49,498 on the net purchase versus buying a new 2019 unit. This machine is a new style and will require a change in operations with regard to staff having to construct actual windrows versus the current "cell" or "block" type of compost piles that are processed. This new type of processing will be beneficial to Creekside as the shape of the windrows will allow for better run off to the sanitary sewer catch basins and the natural air induction to the composting materials will increase dramatically decreasing the amount of time needed for the materials to break down and become mature compost. If approved, staff intends to finance the purchase of the machine in the amount of $473,775.00 for seven years with Commerce Bank at an interest rate of 2.99%. 5 CITY COUNCIL MINUTES April 9, 2019 Motion by Czmowski, second by Sebesta, to approve compost turner acquisition. Motion carried unanimously. 16. APPROVE/DENY CITY AIRPORT HANGAR AGREEMENT DOCUMENT John Olson, Public Works Manager, presented before the Council. Mr. Olson explained that the Airport Commission has reviewed the proposed hangar agreement. Mr. Olson will incorporate some suggested language in Section 2.10 related to ownership that was suggested by Council Member Cook. Mr. Olson explained that tenants must have aircraft insurance which includes coverage to the premises where the aircraft is stored. Additional language will be added to Section 1.1 to gather this information. Mr. Olson addressed questions related to appendices. Motion by Cook, second by Czmowski, to approve City airport hangar agreement document. Motion carried unanimously. GOVERNANCE e purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 17. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) Public Library Board Minutes from February 25, 2019 b) Hutchinson Utilities Commission Minutes from February 27, 2019 �c) Sidewalk Snow Removal Report — January — March 2019 d) Liquor Hutch Quarterly Report NHSCELLANEOUS 18. STAFF UPDATES John Olson — Mr. Olson explained that the new street sweepper is in the dealership with final outfitting being done and should be delivered in the next few days or by next week at the latest. Spring sweeping usually begins mid -March to early April, all weather -dependent. It typically takes about three weeks to get the entire city swept. Mr. Olson noted that the stairs and retaining wall behind Tokyo Grill on Hwy 7 West have been removed due to a water main break. There is still access to the trail via the ramp. Kent Exner — Mr. Exner commented on the competitive bids received for the 5t' Avenue South reconstruction project. Matt Jaunich — Mr. Jaunich reminded the Council that the Sustainability Board has officially been formed and the City is seeking interested persons. The LMC Annual Conference is being held the end of June in Duluth. He has sent communication to state legislators regarding local government aid and the age of 21 on tobacco/vaping. He provided an update on the LMC Engagement Meeting held last week at the Event Center. 19. COUNCIL/MAYOR UPDATE Steve Cook — Council Member Cook noted that he hopes a marketing campaign would stress the quality of life in Hutchinson along with the jobs that are available. Council Member Cook also spoke about a transportation meeting he attended on the 212 project. It was encouraged that someone from the City of Hutchinson attend the Fly -In in Washington D.C. that is sponsored by the Transportation Alliance. He is willing and able to do that if no other council member is interested. rel CITY COUNCIL MINUTES April 9, 2019 Mary Christensen — Council Member Christensen noted that a resident had approached her about concerns he had with the ATV ordinance. Marc Sebora, City Attorney, provided an update to the Council on ATV regulations. It was clarified that only Class II ATVs can be driven on city streets. ADJOURNMENT Motion by Czmowski, second by Christensen, to adjourn at 7:40 p.m. Motion carried unanimously. 7 HUTCHINSON CITY COUNCIL ci=q­f� Request for Board Action 7AL =-ft Agenda Item: Parade Permit - Memorial Day Department: Police LICENSE SECTION Meeting Date: 4/23/2019 Application Complete N/A Contact: Daniel T. Hatten Agenda Item Type: Presenter: Daniel T. Hatten Reviewed by Staff Consent Agenda Time Requested (Minutes): 2 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: I am in receipt of a letter from Pete Stoutenow and the VFW Post 906 in partnership with the American Legion Post 96 and the Disabled Americans Veterans in reference to the 2019 Memorial Day Parade. This request requires Hassan St be closed to public traffic between 3rd Ave SE and 1st Ave NE during the hours of 9:00 am to 10:00 am for the Annual Memorial Day Parade. My staff and I have reviewed the request and are confident that we can meet the needs of VFW Post 906 and American Legion Post 96. The Annual Memorial Day Parade and Program, will be held on Monday, May 27, 2019. The Parade will assemble in the east parking lot behind Landy Lodge Bar and Grill. The parade will begin at 9:30 am and proceed north on Hassan St SE, up to the McLeod County Veterans Memorial Park. The program in the park will begin at 10:00 am. In case of inclement weather, the program will be held at Christ The King Church. The VFW Post is asking for the Hutchinson City Council to wave the parade permit fees based on the fact they are non-profit organizations organizing a community event honoring our military. The Police Department looks forward to working with other city departments, the DAV, the VFW, and American Legion Post 96 to insure another safe and successful Memorial Day Parade and Program. BOARD ACTION REQUESTED: I recommend approval. Fiscal Impact: $ 1,000.00 Funding Source: Police FTE Impact: 6.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Permit Pee: short tcrm) Date Deceived: a 1 i Hassall Smut southrast Hutchinson, NIN 55350 (320) 587-5151IF= (320) 234 -4 240 rl `� � City of Hutchinson � � 1 k-L APPLICA110N FOR PARADE PERMIT ��`�r All applications must be received at least 34 days before event in order to be considered � : •,3[ii�aL:31i �lill il;iii , i }— j 5 y Orgranixzalion Name Phone Number r aniratiorr Address State Zi ? uthc)rii.eJ (ifIictr,Ilid Parade Chairman Information -- Officer Name Pharre Number Residence Address City State Zip is 1 S Fq {s1 Parade qhairman Name Residence Andress Sill Pho Number 7 i A j EE State Zi J Parade Information - _ l"� Assembly Time: Location and Description of Assembly Area: F -p AA,; I Starting Time of Parade: r Starting Point of Parade: Rout d�e Travel � • � ��� � - Ending Point of Parade: `; Estimated Time of Parade: ✓A �te- Approximate Number of Units, Animals, and Vehic�s whiC will constitute Parade: Type and Desc ' tioz� f Animals and Vchieles: _ � [?_ �•� �1 L L-b— t ,e — Maximum Interval of Space to be Maintained Between Units: � R Maximum Length ot-Parade: Minimum and Maximum Speed of Parade; Portion of Street Wi>dth'fraversed: MPH City of Hurehinsan Appirearion for Parade P&-oril Page 2 of 2 The fallowing items need to he completed andlor attached in order for the application to he processed, Permit fee paid in full (check or money order): 0 yes Ono Permit Application cam letcd in full and signed' 0 yes 0 no I declare that the info rmatian I have provided on this application is truthful, and l authorize the City of Hutchinson to investigate the formotion submitted. nature of auOrorized qqTt cer aj'organLzation or parade chairman Date Internal Use only Police Oapproved U denied City Council D approved ® denied Nuws: HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Carnival Permit - J&K Amusements Department: Administration LICENSE SECTION Meeting Date: 4/23/2019 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: J&K Amusements has submitted a carnival permit application into Administration for review and processing. The applicant has completed the appropriate application in full and all pertinent information has been received. J&K Amusements has put on their carnival in this same location for the last several years. The Hutchinson Mall management has granted permission for the carnival to occur again this year on their property. BOARD ACTION REQUESTED: Approve carnival permit application. 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: Cq of 1 I ! Hassan Street Southeast Hutchinson, MN 55350 (320) 587-5151 Fax: (320) 2344240 CITY OF HUTCHINSON LICENSEIPERMIT APPLICATION \ FAIR \ CIRCUS \ SHOW SIEXI-HIBITIONS ($100.00 fee) \ DEMONSTRATIONS OTHER (Describe) '■ CARNIVALS ($525.00 deposit) [] AMUSEMENT DEVICES AMUSEMENT RIDES/GAMES PUBLIC PROPERTY USE Please complete the following information and submit the appropriate fee/deposit along with this application to the City of Hutchinson,111 Hassan Street, SE, Hutchinson, Minnesota 55350. Full Name of Person Filing Application: Kimberly Kay Pack First Middle Last Business Name & Address: J & K Amusements 4496 2351h Lane NW St. Francis, MN 55070 Business Telephone: 612.250,0068 Alternate Telephone: If business is a partnership, please provide name of officers or if corporation, please provide corporate name. Partnership Joseph and Kimberly Pack dba J & K Amusements Corporati Mail permit to this address: 4496 2351h Lane NW St. Francis MN 55070 LOCATION OF EVENT: Hutchinson Mall 1060 HM 15 Hutchinson MN 55350 GIVE BRIEF DESCRIPTION OF EVENT: Carnival in the parking lot at the Hutchinson Mall on Hwy 15 DATES AND HOURS OF OPERATION:_ May 30 & 31, 2019 5.00 pm until 10:00 pm June 1, 2019 12:00 pm unitl 10:00 pm June 2, 2018 1 1:00 am until 5:00 pm ARE STRUCTURES TO BE ERECTED XX Yes No NIA If yes, please describe: Carnival Rides, games and concessions INSURANCE: Submit proof of SPECIAL EVENTS PUBLIC LIABILITY INSURANCE, naming the City of Hutchinson as "ADDITIONAL INSURED" in amounts not less than $500,000 per person and $1,000,000 per accident. DEPOSIT: CLEAN UP/DAMAGE DEPOSIT (Refundable) Alcohol Use $1,100.00 ❑ CLEAN UP/DAMAGE DEPOSIT (Refundable) No Alcohol Use $525.00 1 INDEMNIFICATION: I hereby indemnify and hold harmless the municipality and the City Council from any liability in whatsoever manner arising which may be incurred by the licensee and the municipality as the result of the operation of any of the events listed on this application. _4.3.19. Date Kimberly Kay Pack (electronic signature) Applicant's Signature dffice Use Only Fee Approved By: Insurance Police Dept Deposit Council J� i License Issued Special Conditions: OZ4 JSEMENTS Owner: Joseph A. Pack 4496 235th Lane NW 5t. Francis, MN 55070 Joe Cell 612.250.0069 Kim Cell 612.250.0068 e-mail. jandkrides@msn.com Website. www.jandkrides.com Date April 32019 Event Hutchinson Mall Dates of Event May 31 thru June 2 2019 In the City of Hutchinson State Minnesota J & K Amusements will provide 6-8 rides and 5-7 concessions The Committee percentage will be according to ride gross after city and state sales tax. First $2,100.00 0% Ride Gross $ 2,101.00 up to $20,000.00 15 % ride gross will be paid $20,001.00 up to $50,000.00 20 % ride gross will be paid A flat Fee of $10.00 per concession will be paid to committee. If event is rained out no concession fee will be paid. 1. The location of the event to be agreed upon by 1 & K and Committee upon the signing of this agreement. 2. the committee is responsible for all garbage collection and disposal. 3. J & K will provide $ 2 million dollars in midway insurance. 4. J & K will provide power for the carnival midway. 5. All rides and shows, etc. will operate unless delay by accidents, strikes, fire, acts of Gad, or other causes beyond the control of J & K. 6. J & K has the exclusive rights to the midway for all rides, shows, games and food on the midway location and reserves the right to subcontract portions or entire agreement contained herein. 7. J & K has the exclusive rights to the following food items and all variations of the following food stems: Cheese Curds, Corn Dogs, Cotton Candy, Funnel Cake and Mini Donuts within 200 feet of event location. S. if any disputes arise as to the rights or obligations under this agreement of any party herein, written notice shall be given to the other party. The parties retain the right to cure any defect. Any ordinary problem during the event shall be reported to J & K office and dealt with to the best effort of both parties. 9. Any agreement disputed not resolved between the two parties herein must be submitted to mediation before any litigation or cancellation of this agreement. 10. This agreement is the entire agreement between the parties herein and may not be altered, amended or cancelled unless in writing and signed by authorized representatives of both parties. 11. If this agreement is subject to litigation and J & K prevails in its claim, the committee agrees to pay reasonable costs and expenses, including attorney fees, in addition to any damages awarded. J & K Amusements Joseph A. Pack electronic si nature Date 4.3.19 Committee Date Committee Date This agreement will be null and void if not signed and returned to J & K by 5.30.19 April 5`h, 2019 1 & K Amusements has my permission to set up a carnival in the parking lot of the Hutchinson Mail, in Hutchinson MN on May 30--June 2, 2019 Thank You-) Nrcki- ar[ineau 901 25 Ave. N St. Gaud MN 56303 32"15-0443 - 320-323-4365 www.lexio_qtorico.com nicki@1qAnq(qrtco.com LEXINGTON REALTY CC)R" A4 .w�_-: ` CERTIFICATE OF LIABILITY INSURANCE DATE JMW0D1YYYYj 4-10-19 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the poliey(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A stalement on this certifcate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER NAME. Thomas Plouffe I Michael Plouffe Specialty Insurance, LTD. PNONE 203-931-7095 ac No; 203-931-0682 P,O, Box 16901 ADDRIESS: certificates(�_bspecialtyinsuranceltd.com West Haven, CT 06516 INSURE S AFFORDING COVERAGE NAK # http;/ispecialtyinsurancelid.com INSURER A: Certain Underwriters Ca) Lloyds of London 15792 INSURED J & K Amusements 4496 235th Lane NW St. Francis, MN 55070 COVERAGES CFRTIPIrATPIVIIIUMPC- OCUICIINU RMIRAcr=c- THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN 18 SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR I TYPE OF INSURANCE BR POLICY NUMBER POLICY EFF MMIDONYYY POLICY E%P MMIDDIYYYY LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE OCCUR x CC/18-0124 8116/18 8/16/19 EACH OCCURRENCE $ 1,000,000 PREMISES( Eaoccunence S 300,000 MED EXP (Any one person] $ 5,000 PERSONAL & AOV INJURY $ 1 ,()00,000 GEN1 AGGREGATE LIMIT APPLIES PER, POLICY jEC � LOC GENERAL AGGREGATE $ 3,000,000 PRODUCTS-COMPIOP AGG S 3,040,000 $ OTHER- AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT Ea cci nt $ BODILY INJURY [Per person] $ ANY AUTO OWNED SCHEDULED AUTOS ONLY AUTOS � BODILY INJURY [Per accidern) $ HIRED NON-OWNE❑ AUTOS ONLY �,.. AUTOS ONLY PROPERTY DAMAGE Per accident $ S UMBRELLA UAB OCCUR EACH OCCURRENCE $ AGGREGATE $ EXCESS LIAB CLAIMS -MADE DED PETIENTIONS $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS' UABILITY Y 1 N AN YPROPRIE TORIPARTNERIEKECUT NE OFFICERIMEMBEREXCLUDED? ❑ N I A STATUTE ER E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYEE $ SMandatory in NH] If m describe under DESCRIPTION OF OPERAT IONS below E-L. DISEASE -POLICY LIMIT $ DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Addltional Remarks Schedule, may be attached if more space is required) Hutchinson Mall, City of Hutchinson, and Lexington Realty International are added as an additional insured as respects Hutchinson Mall, located at 1060 Hwy 15 South, Hutchinson, MN 5535 from May 30- June 3, 2019. �na:ulac.r�sw:nl�n�: .ems?ra3r�.�r . . Hutchinson Mall SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE i. 1060 Hwy 15 South THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Y I ACCORDANCE WITH THE POLICY PROVISIONS. Hutchinson, MN 55350 AUT HORME D RE PRES ENTAUVE Fax # '320-587-A �1 GV1 Email: nicki@lle'xti-ngtonco.com Thomas Plouffe tsr 1U60-Lu19 AUUMU UVKFUKATION. AN rights reserved. ACORD 25 (2016103) The ACORD name and logo are registered marks of ACORD HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-ft Agenda Item: Special Event Request - Arts & Crafts Festival Department: Police LICENSE SECTION Meeting Date: 4/23/2019 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: No BACKGROUND/EXPLANATION OFAGENDA ITEM: The 45th Annual Arts & Crafts Festival and Taste of Hutchinson will be held September 13th and 14th in Library Square and 1 st Ave SE. The Chamber of Commerce would like to request the support and assistance of the City of Hutchinson as they have in years past. The support of the festival will affect multiple City of Hutchinson departments including Administration, Police Department, Parks & Recreation, and Street Department. In order to maintain positive relationships with area businesses, the Arts & Crafts Festival committee will be sending letters of notice to the businesses that will be directly affected by the event taking place in downtown Hutchinson. The Chamber truly appreciates the City of Hutchinson's role in making this annual event a success in the Hutchinson community. Any specific questions regarding this request can be directed to Mary Hodson at the Chamber Office at 320-234-0785 or email mary@explorehutchinson.com. The Hutchinson Police Department has reviewed the request and plans for the 2019 Annual Arts and Crafts Festival and we look forwarding in assisting the Chamber again this year. BOARD ACTION REQUESTED: Recommend approval Fiscal Impact: $ 4,000.00 Funding Source: Department Buget FTE Impact: 20.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: HUTCHINSON 90 ATR[:A• C:# MAM It t)I- (.Of-AV.F-I(_:le . AN❑ 10URISM, April 3, 2019 Dan Hatten Chief of Police Hutchinson Police Department 10 Franklin St SW Hutchinson, MN 55350 Dear Chief Hatten: 2 Main Street South Hutchinson, MN 55350 320.587,5252 800.5 72.6689 Fax: 320.587.4752 in#oCQ)explorehutchinson.com www.explorehutchinson.com 1'he 45`h Annual Arts & Crafts Festival and Taste of Hutchinson will be held Friday, September 13, 10:00 AM — 6:00 PM (7:00 PM for Taste of Hutchinson) and Saturday, September 14, 9:00 AM — 4:00 PM in Library Square and I" Ave SE. Setup for the festival will begin on Thursday, September 12`h at 8.00 AM. The event will end on Saturday the 14`h at 4:00 PM. Cleanup is usually completed by 6:00 PM on the 14`'. A rain location will not be provided. A severe weather emergency plan is currently in place, and copies are available, and placed in all vendor check -in packets. Please note the Hutchinson Ambassadors' Taste of Hutchinson is remaining open on Friday night until 7:00 PM. The Arts & Crafts Festival committee would like to request the support and assistance of the City of Hutchinson in regards to the areas outlined in the attached document. We understand that our request for support of the festival will affect multiple City of Hutchinson departments. In order to maintain positive relationships with area businesses, the Arts & Crafts Festival committee will be sending letters of notice to the businesses that will be directly affected by the event taking place in downtown Hutchinson. We truly appreciate the City of Hutchinson's role in making this annual event a success in the Hutchinson community. Thank you for your support! if you have any questions regarding this request, please contact meat 320-234-0785 or email Sincerely, 1 Mary lladsori Chamber President. cc: Sergeant Joseph Nagel HUTCHINSON ARFA C.l iAMBf k OF CC%0AF R( F ANL) TC.}11RNA 2 Main Street South Hutchinson, MN 55350 3 20.5 87.52 52 800.572,6689 Fax. 320.587.4752 info9explorehutchinson.com www.explorehLitchinson.corn 4511 Annual Hutch!nson Acts & Crzfts Festivz--' zimd TmEt e of Hutchinson Reovest of Support from the City of Hutchinson Administration • The Hutchinson Ambassadors wish to reserve all concession rights on I' Ave SE between Main Street and Hassan Street as well as the control of any and all food exhibitors for the Taste of Hutchinson. • Use of electricity in band shell and along ] 51 Ave SE during the festival weekend Police Department • overnight security observation on Thursday, September 12"' and Friday, September 13"' • Assistance with pedestrian traffic crossing on the corner of Main Street and I' Ave • Assistance in directing vendor traffic during the event • Assistance with vendor check in traffic control and allow use of Hassan Street from Washington to 5" Ave SE to aid in this process • Emergency services support during the event Parks & Recreation • Exclusive use of Library Square for Art & Craft exhibitors for September 12-14, 2019 • Del 1very of picnic tables to the 101 Park Place parking lot on Thursday, September 12a' • Removal of select park benches within Library Square on Wednesday, September i 1'l', or Thursday, September 12"' by 12:00 PM as needed. • Tree branches trimmed with might cause damage or injury. Street Department • Closing of I" Ave SE between Main Street and Hassan Street for the Taste of Hutchinson on September 12-14, 2019 • Closing of Hassan St between Washington Ave E to 3rd Ave SE for arts & crafts exhibitor loading, unloading, dumpsters, and restrooms • Closing of the municipal parking lot on the corner of Hassan Street and I' Ave SF. for September 12-14. Is Restriction of parking on the east side of Main Street between I' Ave SE and Washington Ave and along the south side of Washington Ave between Main St and Hassan St. a Lift `No Parking' restriction on Jefferson Street between Washington and 2 d Ave SE to allow for additional parking during the event HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: g Special Event -Dairy Days Department: Police LICENSE SECTION Meeting Date: 4/23/2019 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: No BACKGROUND/EXPLANATION OFAGENDA ITEM: On behalf of the Hutchinson Chamber & Tourism's Agri -Business Committee I would like to make a request to close First Ave SE between Main Street and Hassan Street. This request is for our annual Dairy Day Celebration on Friday, June 7, 2019 in library Square. We would like to use First Ave SE for the tractor club and equipment displays. We currently have library Square reserved from 9:00 am until 3:00 pm. The tractors would be brought in Friday morning after 9:00 am. The event is scheduled to run until 1:30 pm, but we are requesting 3:00 pm to allow for clean-up. If you have any questions, or if the committee can be of any assistance, please give me a call at 320-234- 0785 or email meatmary@explorehutchinson.com. Thank you for your help. BOARD ACTION REQUESTED: 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: HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-ft Agenda Item: Hutchinson Jaycee Water Carnival Request Department: Police LICENSE SECTION Meeting Date: 4/23/2019 Application Complete N/A Contact: Daniel T. Hatten Agenda Item Type: Presenter: Daniel T. Hatten Reviewed by Staff Consent Agenda Time Requested (Minutes): 2 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: I am in receipt of a letter from Tess Heikes and the Water Carnival Committee in reference to the 2019 Water Carnival Celebration. My staff and I have reviewed the request and are confident that we can meet the needs of the Water Carnival Committee. As in the past the Water Carnival Committee as assured us that they have been in contact with the other city department mentioned in the attached request. The Police Department looks forward to working those departments and the Hutchinson Jaycees to insure another safe and successful Water Carnival Celebration. BOARD ACTION REQUESTED: I recommend approval. Fiscal Impact: $ 8,000.00 Funding Source: Police FTE Impact: 31.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Ehinsvn Jaycee Water Carrnval_ March 7, 2019 Matt Jaunich, City Administrator City of Hutchinson 111 Hassan Street SE Hutchinson, MN 55350 M att, The 77th Annual Hutchinson Jaycee Water Carnival city festival will be held from June 8-16 this year, and the entire committee is working hard to prepare for it. We are requesting that approvals and permits be issued for the 2019 Water Carnival as follows: 1. Close the appropriate streets and issue a Parade permit for the Grande Day Parade on Sunday, June 16111, from 11:00 AM to 4:00 PM. We are working to have this year's parade route the same as last year's. We anticipate MN Dot will grant approval for the same route as last year. Again this year we request there would be no parking on 111 Ave SE from Main Street to Hassan St., 2„ d Ave NW/ Franklin St. to Washington Ave., and no parking allowed in the parking lot behind Dunn Brothers Coffee due to space needed for parade units. 2, Close or monitor intersections at all necessary points for Grande Day Parade Route on Sunday, June 1611 from 10:00 AM to 4:00 PM, including posting no parking signs in designated areas as determined by Hutchinson Police Department. We are actively exploring the possibility of having a family fun day complete with inflatable bounce houses (3-7 p.m.) and a street dance (7 pm — midnight) open to the public on Saturday, June 811. Our proposed location is 15i Avenue SE between Main Street and Hassan Street. We would request that this block be closed off along with the public parking lot located behind 101 Park Place. We hope to work with Buffalo Wild Wings to provide alcoholic beverages in a dedicated 21+ area. This event would be free of charge for the public to attend. H P D would be hired to staff as needed. We request your assistance with any necessary permits and noise restrictions. 4. Issue a permit for a fireworks display on Thursday, June 13th (tentative) and Sunday, June 16t' beginning at approximately 10:00 PM to be displayed over the Crow River. Fireworks will be launched from either AFS Park or Oddfellows Park. The Fire Department Chief will be notified concerning the display of fireworks. The Water Carnival committee will arrange to have Sheriff Department, Fire Department and Ambulance support on hand. No parking will be allowed on School Rd from Hwy 7 W to Lewis Ave. 5. We have contracted with Mini Biff, Inc. to provide portable lavatory services for the Grande Day Parade route, Parade staging area and Kids Fun Days area. P.O. Sox 624 • Hutchinson, MN 553SO • www.watercarnival.org chinson Jaycee Water Carrtliaal. 6. Request permit to close 11 Ave SE between Main St. and Hassan St. NE beginning Saturday June 151t' at approximately 5:00 P.M. until Sunday June 16' until parade completion or as determined by police personnel. 7. Request a temporary suspension of the noise ordinance to allow the music following the Boat Parade on Thursday, June 13th until up to 11:00 P.M. The Boat Parade on Thursday, June 1311 will require the use of the Roberts Park parking lot. The Hutchinson Police Department has agreed to provide assistance for this event to minimize parking congestion. We also plan to launch some boats from the landing at West River Park to minimize congestion. 9. We have contracted with Annandale Paintball to offer a fully enclosed paintbail arena that will be located in the parking lot area across from the Rive rSong stage. This is a temporary inflatable structure with inflatable obstacles inside. The paintball guns used are operated via springs, not air and the paintballs themselves are fully washable and biodegradable. This arena will be used from 5 pm until dusk on Thursday night as well as Saturday from 9 a.m. - 4 p.m. 10. The Kiddy Day parade will be held Saturday, June 15th at West River Park and the Hutchinson Police Department has been contacted and agrees to be present to monitor traffic flow. 11. We are requesting to be able to close the frontage road (3'6 Ave NW) from SW IF parking lot to Caspers Chiropractic for a car show on Saturday June 1511' from Sam to 4pm. Businesses will be contacted and we will continue to work with them to prevent any disruptions to their business. We are working with the Hutchinson PD to coordinate traffic for this event. 12. We are requesting a temporary liquor license in order to sell beer and non-alcoholic beverages during the boat parade on Thursday June 13th until the music ends at 10pm and the tentative fireworks start, as well as during the events at West River Park on Saturday the 15t' until 4pm. We will have all of the necessary liability insurance through the MN Jaycees and have applied for the permit through the city. We are working with the PD on coordinating this event to ensure everything goes well. 13. We plan to have Andy Austin playing music on the Rivers ong Stage during the Boat parade on Thursday night June 130 until 10 pm. We would like to have spectators of the Boat Parade and Fireworks (tentative) to be able to park in the parking spots throughout Masonic/West River Park. P.O. Box 624 • Hutchinson, MN 55350 • www.watercarnival.org ftnson Jaycee Water Canvvai, 14. We plan to have most of the 77th Water Carn ivaI events on Saturday June 151h down at West River Park. The day will start with the run from Jaycee Riverside park as in previous years. There will be Painting in the Park at 9:30 am at the Riversong Stage. Human Foosball will be played from 10am-3pm. The aforementioned paintba11 arena will be in operation on Saturday from 9 a.m. - 4 p.m. Canoe Races will be conducted Saturday morning near the West River Park landing in coordination with the Boy Scouts. 15, The Hutchinson Jaycee Water Carnival sporting events and water events chairs will coordinate traffic flow, park layout and control with the Hutchinson Police department and the Parks Dept for the events including SK -15K — Family Fun runs, Entertainment, Sporting events, and Canoe Races. The Water Carnival is a non-profit event, and the Jaycees would appreciate the waiver of any fees or rentals during the duration of the Water Carnival to help defray expenses. We appreciate the assistance received from the City of Hutchinson and its staff, and we could not have a community celebration without this support. If you should have any questions or concerns, or would like additional information, please contact me directly. Thank you, Tess Heikes cc. 2019 Commodore Hutchinson Jaycee Water Carnival 320-583-9979 Heikesfa roily@gmaiI-corn commodore @ watercarniva1.or Dan Hatten, Police Chief Tom Gifferson, incoming Police Chief Pat Egan, Ambulance Services Mike Schumann, Fire Chief Dolf Moon, PRCE Director P.Q. Box 624 • Hutchinson, MN 55350 • www.watercarnival.org HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Items for South Grade Road Corridor Improvements Project (L9/P19-10) Department: PW/Eng LICENSE SECTION Meeting Date: 4/23/2019 Application Complete Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: City staff requests that the City Council approve the appropriate Resolutions to set a Public Hearing for the above referenced project letting at their May 14th meeting. Please note that this project will utilize improvement special assessments, and a project neighborhood meeting has been tentatively scheduled on Thursday, May 9th. Also, City staff has administered discussions/reviews with property owners immediately adjacent to the proposed mini -roundabout intersection configuration. BOARD ACTION REQUESTED: Approval of Resolutions Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 2,369,000.00 Total City Cost: $ 1,328,000.00 Funding Source: City Bonding, Utility Funds & State Aid Remaining Cost: $ 1,041,000.00 Funding Source: MnDOT Grants & Special Assessments RESOLUTION NO. 15038 RESOLUTION ORDERING PREPARATION OF REPORT ON IMPROVEMENT LETTING NO. 2/PROJECT NO. 19-02 WHEREAS, it is proposed to improve: South Grade Road Corridor Improvements: Dale Street SW to State Trunk Highway 15 Service Road; roadway rehabilitation by construction of milling/reclaiming, grading, curb and gutter, draintile installation, bituminous/concrete surfacing, storm sewer, water distribution, sanitary sewer, street lighting, traffic signals, pedestrian crossing system, trail, sidewalk, landscaping, restoration and appurtenances, and to assess the benefited property for all or a portion of the cost of the improvement, pursuant to Minnesota Statutes, Chapter 429. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, the proposed improvement, called Letting No. 2/Project No. 19-02, be referred to the Engineer for study and that that person is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvement is necessary, cost-effective, and feasible; whether it should best be made as proposed or in connection with some other improvement; the estimated cost of the improvement as recommended; and a description of the methodology used to calculate individual assessments for affected parcels. Adopted by the Council this 23rd day of April 2019. Mayor: Gary Forcier City Administrator: Matthew Jaunich HUTCHINSON PUBLIC WORKS/ENGINEERING DEPARTMENT Hutchinson City Center/111 Hassan St SE/Hutchinson MN 55350-2522/320-234-4209/FAX 320-234-4240 ENGINEERING REPORT & FEASIBILITY STUDY TO: Mayor & City Council FROM: Kent Exner, DPW/City Engineer DATE: April 23, 2019 SUBJECT: Letting No. 2/Project No. 19-02 I have studied the following proposed improvements and find that the proposed project is feasible and recommend it be constructed: L2P19-02 South Grade Road Corridor Improvements: Dale Street SW to State Trunk Highway 15 Service Road, - roadway rehabilitation by construction of milling/reclaiming, grading, curb and gutter, draintile installation, bituminous/concrete surfacing, storm sewer, water distribution, sanitary sewer, street lighting, traffic signals, pedestrian crossing system, trail, sidewalk, landscaping, restoration and appurtenances. ESTIMATED COST TOTAL Construction Cost $1,900,000 Engineering $285,000 Administration $114,000 Engineering Services - Geotechnical $40,000 Street Lighting Materials $30,000 ESTIMATED TOTAL $2,369,000 ESTIMATED FUNDING TOTAL Assessable Costs $300,000 State Aid $500,000 Local Road Improvement Program Grant $600,000 Local Partnership Projects Grant $141,000 City - Bonding $528,000 City -Water Funds $120,000 City -Wastewater Funds $0 City - Stormwater Funds $180,000 ESTIMATED TOTAL $2,369,000 RESOLUTION NO. 15039 RESOLUTION RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT LETTING NO. 2/PROJECT NO. 19-02 WHEREAS, pursuant to a resolution of the Council adopted April 23rd, 2019, a report has been prepared by Kent Exner, Public Works Director/City Engineer with reference to the following proposed improvements: South Grade Road Corridor Improvements: Dale Street SW to State Trunk Highway 15 Service Road; roadway rehabilitation by construction of milling/reclaiming, grading, curb and gutter, draintile installation, bituminous/concrete surfacing, storm sewer, water distribution, sanitary sewer, street lighting, traffic signals, pedestrian crossing system, trail, sidewalk, landscaping, restoration and appurtenances; and said report was received by the Council on April 23rd, 2019, and WHEREAS, the report provides information regarding whether the proposed improvement is necessary, cost-effective, and feasible; whether it should best be made as proposed or in connection with some other improvement; the estimated cost of the improvement as recommended; and a description of the methodology used to calculate individual assessments for affected parcels. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The Council will consider the improvement of such street(s) in accordance with the report and the assessment of abut6ting property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the improvement of $2,369,000.00. 2. A public hearing shall be held on such proposed improvement on the 14th day of May, 2019, in the Council Chambers of the Hutchinson City Center at 6:00 PM and the Clerk shall give mailed and published notice of such hearing and improvement as required by law. Adopted by the Hutchinson City Council this 23rd day of April 2019. Mayor: Gary Forcier City Administrator: Matthew Jaunich PUBLICATION NO.8331 NOTICE OF HEARING ON IMPROVEMENT LETTING NO. 2/PROJECT NO. 19-02 (L2P19-02) TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council of Hutchinson, Minnesota, will meet in the Council Chambers of the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, MN, at 6:00 pm on the 14th day of May, 2019, to consider the making of an improvement of Letting No. 2/Project No. 19-02, an improvement of: South Grade Road Corridor Improvements: Dale Street SW to State Trunk Highway 15 Service Road; roadway rehabilitation by construction of milling/reclaiming, grading, curb and gutter, draintile installation, bituminous/concrete surfacing, storm sewer, water distribution, sanitary sewer, street lighting, traffic signals, pedestrian crossing system, trail, sidewalk, landscaping, restoration and appurtenances, pursuant to Minnesota Statutes, Sections 429.011 to 429.111. The estimated City cost of said improvement is $2,069,000.00 and an Assessable cost of $300,000.00 for the total estimated cost of $2,369,000.00. A reasonable estimate of the impact of the assessment will be available at the hearing. Such persons as desire to be heard with reference to the proposed improvement will be heard at this meeting. Dated: 04/23/2019 Matthew Jaunich, City Administrator PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS HEARING, WHETHER YOU ARE FOR OR AGAINST THE PROJECT, IN ORDER THAT YOUR COUNCIL CAN BE BETTER INFORMED OF A TRUE REPRESENTATION OF OPINION. PUBLISHED IN THE HUTCHINSON LEADER ON WEDNESDAY, MAY 1ST 2019 AND WEDNESDAY, MAY 8TH 2O19. HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Items for WTP Reverse Osmosis Membrane Replacements Project (L9/P19-10) Department: PW/Eng LICENSE SECTION Meeting Date: 4/23/2019 Application Complete Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff Consent Agenda Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: City staff requests that the City Council approve the appropriate Resolutions to set a Public Hearing for the above referenced project letting at their May 14th meeting. Please note that this project will not utilize improvement special assessments. BOARD ACTION REQUESTED: Approval of Resolutions Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 411,400.00 Total City Cost: $ 411,400.00 Funding Source: Water Funds Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 15035 RESOLUTION ORDERING PREPARATION OF REPORT ON IMPROVEMENT LETTING NO. 9/PROJECT NO. 19-10 WHEREAS, it is proposed to improve: Water Treatment Plant Reverse Osmosis Membrane Replacements: Procurement of equipment to facilitate the regular replacement of the existing membranes (installation to be administered by City staff), and to assess the benefited property for all or a portion of the cost of the improvement, pursuant to Minnesota Statutes, Chapter 429. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, the proposed improvement, called Letting No. 9/Project No. 19-10, be referred to the Engineer for study and that that person is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvement is necessary, cost-effective, and feasible; whether it should best be made as proposed or in connection with some other improvement; the estimated cost of the improvement as recommended; and a description of the methodology used to calculate individual assessments for affected parcels. Adopted by the Council this 23rd day of April, 2019. Mayor: Gary Forcier City Administrator: Matthew Jaunich HUTCHINSON PUBLIC WORKS/ENGINEERING DEPARTMENT Hutchinson City Center/111 Hassan St SE/Hutchinson MN 55350-2522/320-234-4209/FAX 320-234-4240 ENGINEERING REPORT & FEASIBILITY STUDY TO: Mayor & City Council FROM: Kent Exner, DPW/City Engineer DATE: April 23, 2019 SUBJECT: Letting No. 9/Project No. 19-10 I have studied the following proposed improvements and find that the proposed project is feasible and recommend it be constructed: L9P19-10 Water Treatment Plant Reverse Osmosis Membrane Replacements: Procurement of equipment to facilitate the regular replacement of the existing membranes (installation to be administered by City staff). ESTIMATED COST TOTAL Construction Cost $340,000 Engineering $51,000 Administration $20,400 Engineering Services - Geotechnical $0 Street Lighting Materials $0 ESTIMATED TOTAL $411,400 ESTIMATED FUNDING TOTAL Assessable Costs $0 Federal Aid $0 State Aid $0 City - Bonding $0 City - Water Funds $411,400 City - Wastewater Funds $0 City - Stormwater Funds $0 ESTIMATED TOTAL $411,400 RESOLUTION NO. 15036 RESOLUTION RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT LETTING NO. 9/PROJECT NO. 19-10 WHEREAS, pursuant to a resolution of the Council adopted January 22nd, 2019, a report has been prepared by Kent Exner, Public Works Director/City Engineer with reference to the following proposed improvements: Water Treatment Plant Reverse Osmosis Membrane Replacements: Procurement of equipment to facilitate the regular replacement of the existing membranes (installation to be administered by City staff); and said report was received by the Council on April 23rd, 2019, and WHEREAS, the report provides information regarding whether the proposed improvement is necessary, cost-effective, and feasible; whether it should best be made as proposed or in connection with some other improvement; the estimated cost of the improvement as recommended; and a description of the methodology used to calculate individual assessments for affected parcels. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The Council will consider the improvement of such street(s) in accordance with the report and the assessment of abutting property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the improvement of $411,400.00. 2. A public hearing shall be held on such proposed improvement on the 14th day of May, 2019, in the Council Chambers of the Hutchinson City Center at 6:00 PM and the Clerk shall give mailed and published notice of such hearing and improvement as required by law. Adopted by the Hutchinson City Council this 23rd day of April 2019. Mayor: Gary Forcier City Administrator: Matthew Jaunich PUBLICATION NO.8329 NOTICE OF HEARING ON IMPROVEMENT LETTING NO. 9/PROJECT NO. 19-10 (L9P19-10) TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council of Hutchinson, Minnesota, will meet in the Council Chambers of the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, MN, at 6:00 pm on the 14th day of May, 2019, to consider the making of an improvement of Letting No. 9/Project No. 19-10, an improvement of: Water Treatment Plant Reverse Osmosis Membrane Replacements: Procurement of equipment to facilitate the regular replacement of the existing membranes (installation to be administered by City staff). pursuant to Minnesota Statutes, Sections 429.011 to 429.111. The estimated City cost of said improvement is $411,400.00 and an Assessable cost of $0.00 for the total estimated cost of $411,400.00. A reasonable estimate of the impact of the assessment will be available at the hearing. Such persons as desire to be heard with reference to the proposed improvement will be heard at this meeting. Dated: 04/23/2019 Matthew Jaunich, City Administrator PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS HEARING, WHETHER YOU ARE FOR OR AGAINST THE PROJECT, IN ORDER THAT YOUR COUNCIL CAN BE BETTER INFORMED OF A TRUE REPRESENTATION OF OPINION. PUBLISHED IN THE HUTCHINSON LEADER ON WEDNESDAY, APRIL 24TH, 2019 AND WEDNESDAY, MAY 1ST, 2019. RESOLUTION NO. 15032 RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC CONTROL DEVICES WHEREAS, the Police Chief, City Engineer and Public Works Manager agree that the following areas have traffic control concerns which warrant traffic control devices, and; WHEREAS, the Hutchinson City Council has the authority to establish locates as points where traffic control devices shall be erected, pursuant to Section 7.04, Subdivision 1 of the Hutchinson City Code, and; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON: That the Council hereby establishes the following traffic control devices shall be installed and enforced: 1. "NO PARKING" signs to be placed on the east side of Monroe St SE from its intersection with Fair Ave SE, approximately 380 feet north of the intersection 2. "NO PARKING" signs to be placed on the west side of Monroe St SE from its intersection with Fair Ave SE, approximately 150 feet north of the intersection. 3. Temporary "NO PARKING", as necessary, during the duration of the reconstruction project of 511 Ave SE, east of Adams St SE, but not after August 31, 2019. Temporary signs to be placed on the west side of Monroe St SE 150 feet north of its intersection with Fair Ave SE to 380 feet north of its intersection with Fair Ave SE. Public Works Department, in conjunction with Police, Fire and 3M staff shall determine necessity of temporary no parking. Adopted by the City Council this 23d day of April, 2019. Gary Forcier Mayor ATTEST: Matt Jaunich City Administrator Traffic control resolution 4 p. i 561 550 557 M _ - 560 600 '565 .1 - 595 .. 556 •'z' x �+ I 4 Fr u- ) 570 607 kh 7 6'I $ �. IM 63586 �~ � 9 1 .s, Primary 3M . entrance FAIR AVE SE during construction Monroe St SE No parking Permanent FITernporary during 5t" Ave SE project, if necessary HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-ft Agenda Item: L15P18-15 - Airport Change Order #1 Department: PW/Airport LICENSE SECTION Meeting Date: 4/23/2019 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: After the airport hangar project was graded late last year, it was apparent that some drainage at the south end of Hangar #4 was affected. Hangar #4 is adjacent to the new hangar toward the east. After conversations with the Airport Engineer, Bolton-Menk, a plan was drafted to install a drainage feature on the south end of Hangar #4 to positively drain water away from Hangar #4. Bolton-Menk assisted the City in applying for a Change Order. The Change Order was reviewed and approved by FAA. For funding purposes, these costs will be included in the overall hangar project. $14,529 Cost of change order #1 $13,076 FAA (90%) $ 726 MnDOT (5%) $ 727 City of Hutchinson BOARD ACTION REQUESTED: Approve Change Order #1 for Hangar Construction at Hutchinson Municipal Airport. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 14,529.00 Total City Cost: $ 727.00 Funding Source: Airport Improvement Project Remaining Cost: $ 13,802.00 Funding Source: FAA & MnDOT grants CHANGE ORDER No. 1 8-UNIT T-HANGAR CONSTRUCTION HUTCHINSON MUNICIPAL AIRPORT DATE OF ISSUANCE APRIL 3.2019 EFFECTIVE DATE APRIL 3.2019 OWNER CITY OF HUTCHINSON, MN Contract No. FAA AIP 3-27-0042-17-18 / SP NO. A4304-37 City Contract No. 1,151`18-15 CONTRACTOR KRAEMER TRUCKING & EXCAVATING ENGINEER SILAS PARMAR, P.E. You are directed to make the following changes in the Contract Documents. Description: Improve site surface drainage adjacent to new T-Hangar. Attachments: Change Order No.I Layout Contractor Quote CHANGE IN CONTRACT PRICE: CHANGE IN CONTRACT TIMES: Original Contract Price Original Contract Times Schedule 1 Substantial Completion: December 1.2018 $ 802.266.25 Schedule 2 Substantial Completion: Luly 1 2 1 Net changes from previous Change Orders No. to Net changes from previous Change Orders No. _ to No. No. $ am Q Contract Price Prior to this Change Order Contract Times prior to this Change Order Schedule 1 Substantial Completion: December 1.2018 $ 802.266.25 Schedule 2 Substantial Completion: Luly 1 2912 Net Increase of this Change Order Net Increase (decrease) of this Change Order $ 14.529.90 Q Contract Price with all approved Change Orders Contract Times with all approved Change Orders Schedule 1 Substantial Completion: December 1.2018 $ 816.796.15 Schedule 2 Substantial Completion: July 1.2019 RECOMMENDED: By:-94,b Silas Parmar, P.E., Bolton & Menk APPROVED: ACCEPTED: ,�,eBy: By: John Olson Ron Kraemer City of Hutchinson Kraemer Excavating & Trucking CHANGE ORDER PAGE 00991-1 CHANGE ORDER No. 1 8-UNIT T-HANGAR CONSTRUCTION HUTCHINSON MUNICIPAL AIRPORT DATE OF ISSUANCE APRIL 3, 2019 EFFECTIVE DATE APRIL 3, 2019 OWNER CITY OF HUTCHINSON, MN Contract No. FAA AIP 3-27-0042-17-18 / SP NO. A4304-37 City Contract No. L15P18-15 CONTRACTOR KRAEMER TRUCKING & EXCAVATING ENGINEER SILAS PARMAR, P.E. 1. HAS THIS CHANGE ORDER BEEN DISCUSSED WITH FAA OFFICIALS? Preliminary review of this Change Order was completed by Nick Pratt with the FAA on April 2, 2019. 2. BRIEF DESCRIPTION OF THE PROPOSED CONTRACT CHANGE(S) AND LOCATION(S). Remove bituminous pavement on the south end of the existing T-hangar located to the east of the proposed T- hangar and install an inline drain inlet and 8-inch PVC pipe to connect to the inlet structure to be construed as part of the original bid on the south end of the proposed T-Hangar. 3. REASON(S) FOR THE CHANGE(S). With construction on the proposed T-Hangar the surface drainage for the previously Federally funded T-Hangar has become an issue. The existing T-Hangar located east of the proposed T-Hangar previously had surface drainage drain to the west into the apron infield which eventually drained into the parallel ditch for Taxiway A. During snow melt this season the surface drainage issue became apparent. By installing an inline drain and PVC pipe to connect to the proposed inlet structure as part of the original bid will provide an outlet for surface drainage. 4. JUSTIFICATIONS FOR UNIT PRICES OR TOTAL COST. The unit prices for each item of work are on par with the original bid items or with similar items bid on other projects in the City. The bituminous price is reasonable when considering the paving will be patch work and cannot be completed with a paving machine. It is estimated it will take one week to complete this work. Therefore, considering materials cost, construction time, and prime contractor markup, the City finds the Change Order cost to be reasonable. 5. CONSEQUENCES OF CHANGE ORDER ATTACHMENT. If this Change Order is not approved by the FAA, surface drainage from the existing T-Hangar will not outlet into the grass areas and pool on the taxilane between the existing and proposed T-Hangar and eventually back up into the new T-Hangar bays. This Change Order will not have any effect on construction administration cost or construction time. All work will be completed by the substantial completion date. 6. CONFORMANCE TO AIP STANDARDS AND REGULATIONS. All construction materials provided for this Change Order will meet FAA Buy America requirements. CHANGE ORDER PAGE 00991-2 CHANGE ORDER NO. 1 8 UNIT T-HANGAR CONSTRUCTION HUTCHINSON MUNICIPAL AIRPORT (HCD) HUTCHINSON, MINNESOTA CITY CONTRACT NO. L15P18-15 FAA AIP NO.3-27-0042-017-18/SP NO. A4304-37 BOLTON & MENK Real People. Real Solutions. Item No. Spec. No. Item Estimated Quantity Unit Unit Price Total Amount CHANGE ORDER NO. 1: INLINE STORM DRAIN INLET AND PVC PIPE 1 2104.503 SAW CUTTING BITUMINOUS PAVEMENT 304 LIN Fr $ 2.85 $ 866.40 2 2104.504 REMOVE BITUMINOUS PAVEMENT 82 SQ YD $ 9.00 $ 738.00 3 2502.503 8" PVC DRAIN PIPE, SCHEDULE 40 186 LIN Fr $ 24.75 $ 4,603.50 4 2411.507 INLINE DRAIN INLET, 12" 1 EACH $ 1,167.00 $ 1,167.00 5 1 2503.602 CONNECTTO EXISTING STRUCTURE 1 EACH $ 1,435.00 $ 1,435.00 6 1 2360.509 TYPE SP 9.5 WEARING COURSE MIX (3,C) 22 TON $ 260.00 $ 5,720.00 14,529.00 CHANGE ORDER NO. 1 TOTAL: $ NOTE: CONTRACTOR TO INDICATE UNIT COST FOR NEW ITEMS, TOTAL CHANGE ORDER NO.1 AMOUNT, SIGN AND EMAIL (Silas.Parmar@Bolton-Menk.com) TO BOLTON & MENK, INC. FOR PROCESSING. ** Because of th chedule we need approval on or before May 01, 2019, or this proposal expires. SIGNED: DATE: 3/18/2019, 11:02 AM Bolton & Menk, Inc. 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J1036 —i is 'axz® vm.® p .,..o...e..•ae.v.a�.,.o.,m BOIL p� E eh x.n Q M E N K ram. a amme� m HUTCHINSON MUNICIPAL AIRPORT (HCD) SUNITT-HANGAR CONtTRUCHIXJ C7 m SFORM SEWER PLAN & PROFILE City Contact No. L15P18-15 HUTCHINSON CITY COUNCIL C�=�61 �Y Request for BooxrdAction Agenda item: Lease Agreement for Compost Turner Department: Legal LICENSE SECTION Meeting Date: 4/23/2019 Application Complete Yes Contact: Marc A. Sebora Agenda Item Type: Presenter; Marc A. Sebora Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency NIA Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: At the April 9, 2019. Council meeting, the Council approved the concept of Creekside Soils leasing a compost turner for its composting operations_ For consideration at this meeting is the approval of a resolution authorizing the City to enter into the lease agreement with the leasing company Clayton Holdings, LLC. in its simplest form, the resolution merely states that the City CouncII is authorizing the City to enter into this lease agreement with Clayton Holdings, and that the City is a governmental entity that is legally qualified to issue tax-exempt obligations under the Internal Revenue Code, and that the City has sufficient resources to make the lease payments. Also included for information is the lease agreement itself. As is typical in most lease agreements the City is agreeing to make timely payments under the lease and will be keeping the equipment (the compost turner) in good repair and well maintained. The City is also agreeing to have the equipment included in the City's insurance and the City is agreeing not to let other entities use this equipment without Clayton Holdings' permission. Attached at the beginning of the lease is a spreadsheet indicating the yearly lease payment that the Council approved at its last meeting of $73,808.37 for a period of 7 years. The total amount of payments for those 7 years is $516,658.60 which represents $42,883.60 of interest costs and $473, 775 of principal payments. As mentioned earlier a portion of the agreement with Clayton Holdings is the assurance that the City can issue tax-exempt obligations and that provision and other finance related items are currently being reviewed by the law firm of Dorsey and Whitney. If, after their review of the agreement they suggest modifications, those revised lease documents will be provided to the Council at the meeting. Staff recommends the Council's approval ❑f the resolution authorizing the City to enter in to the lease agreement with Clayton Holdings for Creekside's compost turner. ,BOARD ACTION REQUESTED: - Approve Resolution No. 15034 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: S 0.00 Funding Source: RESOLUTION NO. 15034 RESOLUTION OF THE CITY OF HUTCHINSON AUTHORIZING ENTERING INTO LEASE AGREEMENT FOR COMPOST TURNER SCHEDULE E-1 TO STATE AND MUNICIPAL LEASE AGREEMENT LEASE NO. WHEREAS, the City of Hutchinson, Minnesota, (the "Lessee") is a political subdivision duly organized under the constitution and laws of the State where Lessee is located; WHEREAS, it is necessary and desirable and in the best interest of the Lessee, as lessee, to enter into a State & Municipal Lease/Purchase Agreement (the "Lease") with Clayton Holdings, LLC, as lessor (the "Lessor"), for the purposes described therein, including the leasing of the Equipment; and WHEREAS, the Lessee has, in accordance with the requirements of law, fully budgeted and appropriated sufficient funds for the current fiscal year to make the Rental Payments scheduled to come due during the current fiscal year and to meet its other obligations, and such funds have not been expended for other purposes NOW, THEREFORE, BE IT RESOLVED, BY THE GOVERNING BODY OF LESSEE AS FOLLOWS: Section 1. The Lease and the Escrow Agreement, in substantially the same form as presented to this meeting, and the terms and performance thereof are hereby approved, and the Mayor and City Administrator of the Lessee are hereby authorized to execute and deliver the Lease and the Escrow Agreement, on behalf of the Lessee, with such changes therein as shall be approved by such officers, such approval to be conclusively evidenced by such officers' execution thereof. Section 2. The Lessee shall, and the officers, agents and employees of the Lessee are hereby authorized and directed to take such further action and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Resolution, and to carry out, comply with and perform the duties of the Lessee with respect to the Lease and the Escrow Agreement, Section 3. Lessee hereby designates the Lease as a "qualified tax-exempt obligation" as defined in Section 265(b)(3)(B) of the Internal Revenue Code. The aggregate face amount of all tax-exempt obligations (including the Lease, but excluding private activity bonds other than qualified 501(c)(3) bonds) issued or to be issued by Lessee and all subordinate entities thereof during the current calendar year is not reasonably expected to exceed $10,000,000. Lessee and all subordinate entities thereof will not issue in excess of $10,000,000 of tax-exempt obligations (including the Lease, but excluding private activity bonds other than qualified 501(c)(3) bonds) during the current calendar year without first providing Lessor with an opinion of nationally recognized counsel in the area of tax-exempt municipal obligations acceptable to Lessor, that the designation of the Lease as a "qualified tax-exempt obligation" will not be adversely affected. Section 4. Moneys sufficient to pay all Rental Payments required to be paid under the Lease during Lessee's current fiscal year are hereby appropriated to such payment, and such moneys will be applied in payment of all Rental Payments due and payable during the current fiscal year. Section 5. This Resolution shall take effect and be in full force immediately after its adoption by the governing body of the Lessee. PASSED AND ADOPTED by the governing body of the City of Hutchinson this 23" day of April, 2019. Gary T. Fortier, Mayor Attest: Matthew Jaunich, City Administrator Loan Amortization with Annual Payments Loan Amount $473,775.00 Interest Rate 2.99% # of Years 7 Principal at end (0) or beginning of period (1) 1 Beginning Ending Payment # Balance Payment Interest Principal Balance 1 $473,775,00 $73,808.37 $0.00 $73,808.37 $399,966.63 2 $399,966.63 $73,808.37 $11,959.00 $61,849.37 $338,117.26 3 $338,117.26 $73,808.37 $10,109.71 $63.698.66 $274,418.60 4 $274,418.60 $73,808.37 $8,205.12 $65,603.25 $208,815.34 5 $208,815.34 $73,808.37 $6,243.58 $67,564.79 $141,250.55 6 $141,250.55 $73,808.37 $4,223.39 $69,584.98 $71,665.57 7 $71,665.57 $73,808.37 $2,142.80 $71,665.57 $0.00 TOTALS $616,668.60 $42,883.60 $473,775.00 IW ►+ V1 CLAYTON HOLDINGS, L LC STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT Lease Number: This State and Municipal Lease/Purchase Agreement (the "Lease") is made and entered into on this, the day of 2018 by and between Clayton Holdings, LLC with offices at 8000 Forsyth Boulevard, Suite 510, St. Louis, Missouri 63105 (together with its successors and assigns, herein called the "Lessor"), and with its principal address at (together with its permitted successors and assigns, herein called the "Lessee"), wherein it is agreed as follows: LEASE OF EQUIPMENT. Lessee hereby requests Lessor to acquire the equipment described in Schedule A attached hereto and made a part hereof. Subject to the terms and conditions hereof, Lessor agrees to lease to Lessee and Lessee agrees to lease from Lessor the equipment described in Schedule A. with all replacements, repairs, additions and accessories incorporated therein or affixed thereto (herein collectively called the "Equipment"), DELIVERY AND ACCEPTANCE: Lessee agrees to order the Equipment on behalf of Lessor from the supplier of such Equipment. Lessor will not be liable for specific performance of this Lease or for damages 0 for any reason the supplier delays or fails to fill the order. Lessee will cause the Equipment to be delivered at the location specified in Schedule A (the "Equipment Location"). Lessee is solely responsible for the selection of the Equipment and the vendor from which the Equipment is purchased. Lessee will pay all transportation and other costs, if any, incurred in connection with the delivery and installation of the Equipment. Any delay in such dellvery will not affect the validity of this Lease. To the extent funds are deposited with a bank or trust company in an escrow fund for the acquisition of the Equipment, such funds shall be disbursed as provided in the agreement pursuant to which such fund Is established (the "Escrow Agreement"]. Lessee will immediately accept the Equipment as soon as it has been delivered and is operational, or as soon as any manufacturer or vendor pre -acceptance test period has expired. In the event the Equipment is not accepted by Lessee within thirty (30) days from the date of its delivery, Lessor, at Lessors sole option, will have the right to terminate this Lease. Lessee will evidence its acceptance of the Equipment by executing and delivering to Lessor a delivery and acceptance certificate in the form of Exhibit B or C, as applicable, to the Escrow Agreement (the "Acceptance Certificate"), Lessee hereby authorizes the Lessor to add to this Lease and to any other description of the Equipment the serial number of each item of Equipment, when available. TERM: This Lease will become effective upon the execution hereof by Lessee and Lessor_ Lessee's obligation to pay rent under this Lease will commence on the date that funds are advanced by Lessor to pay the vendor of the Equipment or are deposited with a bank or trust company in an escrow fund pursuant to the Escrow Agreement, d any (the "Start Date"). and will extend for an initial term through the end of Lessee's fiscal year containing the Start Date. The term of this Lease is subject to renewal on a year-to-year basis for the number of annual fiscal periods necessary to comprise the lease term as set forth in Schedule C attached hereto and made a part hereof (the "Lease Term"). At the end of the initial term and any renewal term, Lessee will be deemed to have exercised its option to renew this Lease for the next annual renewal term, unless Lessee has exercised its right to terminate the Lease pursuant to Section 8 below. RENT: Lessee agrees to pay Lessor the rental payments for the Equipment as set forth in Schedule C (the "Rental Payments"). A portion of each Rental Payment is paid as and represents the payment of interest as set forth in Schedule C. The Rental Payments will be payable without notice or demand, at the office of Lessor (or such other place as Lessor may designate in writing, from time to time) and will commence on the Start Date. For clarity, Lessee hereby authorizes Lessor to update Schedule C with the Start Date and actual due dates for Rental Payments based upon the frequency of payments stated on Schedule C. Any notice, invoicing, purchase orders, quotations or other forms or procedures requested by Lessee in connection with payment will be fully explained and provided to Lessor sufficiently in advance of the payment due date for the completion thereof by Lessor prior to such payment date, but none of the foregoing will be a condition to Lessee's obligation to make any such payment. If Lessee fails to pay any Rental Payment or any other sums under this Lease within ten (10) days when the same becomes due, Lessee shall pay to Lessor (in addition to and not in lieu of other rights of Lessor) a late charge equal to the greater of five (5%) percent of such delinquent amount or Twenty -Five Dollars ($25.00), but in any event not more than the maximum amount permitted by law. Such late charge shall be payable by Lessee upon demand by Lessor and shall be deemed rent hereunder. Lessee acknowledges and agrees that the late charge (i) does not constitute interest, (ii) is an estimate of the costs Lessor will incur as a result of the late payment and (iii) is reasonable in amount. Lessor and Lessee understand and intend that the obligation of Lessee to pay Rental Payments hereunder will constitute a current expense of Lessee and will not in any way be construed to be a debt of Lessee in contravention of any applicable constitutional or statutory limitation or requirement concerning the creation of indebtedness by Lessee. EXCEPT AS SPECIFICALLY PROVIDED IN SECTION 8 HEREOF, LESSEE'S OBLIGATION TO MAKE RENTAL PAYMENTS SHALL BE ABSOLUTE AND UNCONDITIONAL IN ALL EVENTS AND WILL NOT BE SUBJECT TO ANY SETOFF, DEFENSE, COUNTERCLAIM, ABATEMENT OR RECOUPMENT FOR ANY REASON WHATSOEVER. Notwithstanding the foregoing, the interest portion of the Rental Payments on Schedule C will be adjusted, and Lessor will provide Lessee a revised Schedule C reflecting such adjustment in the event that it is determined that any of the interest portions of Rental Payments set forth in Schedule C may not be excluded from Lessor's gross income under Section 103 of the Internal Revenue Code of 1986, as amended (the "Code'). Lessee agrees that the interest portion of the Rental Payments on Schedule C will be adjusted commencing with the first day of the next succeeding fiscal year of the Lessee, but only 6 this Lease is renewed for such fiscal year, and thereafter, so that Lessor will be in the same after-tax position that it would have been in had such payment been excluded from the gross income of Lessor under Section 103 of the Code. AUTHORITY AND AUTHORIZATION. Lessee represents, warrants and covenants that (a) it will do or cause to be done ail things necessary to preserve and keep in full force and effect (i) its existence, and (ii) subject to Section 8 hereof, this Lease; (b) it has complied with all bidding and budgeting requirements where necessary and by due notification has presented this Lease to Lessee's governing body for approval and adoption as a valid obligation on its part and that all requirements have been met and procedures have been followed to ensure the enforceability of this Lease; (c) it has sufficient appropriations or other funds available to pay all amounts due hereunder for the current fiscal year period; (d) no event has occurred and no condition exists which, upon the execution of this Lease or with notice or the passage of time or both, would constitute a default under any debt, revenue or purchase obligation which it has issued or to which it Is a party (the "Obligation") nor has it been in default under any Obligation at any time during the past five (5) years, and (e) no lease, rental agreement or contract for purchase, to which Lessee has been a party, at any time during the past five (5) years, has been terminated by Lessee as a result of insufficient funds being appropriated in any fiscal period. REPRESENTATIONS, COVENANTS AND WARRANTIES REGARDING TAX-EXEMPT STATUS: Lessee warrants and covenants that (i) it is a state, or a political subdivision thereof, within the meaning of Section 103 of the Code, and the related regulations and rulings thereunder; (ii) subject to Section 8 hereof, Lessee intends that its obligation under this Lease will constitute an enforceable obligation issued by or on behalf of a state, or political subdivision thereof, such that the interest portions of Rental Payments as shown in Schedule C. will not be includable in the gross income of Lessor for the purposes of federal income taxation; (III) this Lease represents a valid deferred payment obligation of Lessee for the amount herein set forth; (iv) Lessee has the legal capacity to enter into this Lease and is not in contravention of any state, county, district, city or town statute, rule, regulation or other governmental provision; (v) during the Lease Term, the Equipment will not be used in a trade or business of any other person or entity; (vi) Lessee will complete and file on a timely basis, Internal Revenue Service form 803BG or 8038GC, as appropriate, in the manner set forth in Section 149(e) of the Code; and (vii) Lessee will not take any action or permit the omission of any action reasonably within its control which action or omission will cause the interest portion of any Rental Payment hereunder to be includable in gross income for federal income taxation purposes. Lessee hereby designates the Lease as a "qualified tax-exempt obligation" as defined in Section 265(b)(3)(B) of the Code. The aggregate face amount of all tax-exempt obligations (including the Lease, but excluding private activity bonds other than qualified 501(c)(3) bonds) issued or to be issued by Lessee and all subordinate entities thereof during the calendar year in which the Start hate occurs is not reasonably expected to exceed $10,000,000. Lessee and all subordinate entities thereof will not issue In excess of $10,000,000 of tax-exempt obligations (including the Lease, but excluding private activity bonds other than qualified 501(c)(3) bonds) during the calendar year in which the Start hate occurs, without first providing Lessor with an opinion of nationally recognized counsel in the area of tax-exempt municipal obligations acceptable to Lessor, that the designation of the Lease as a "qualified tax-exempt obligation" will not be adversely affected. Lessee further represents as follows: (a) The estimated total costs of the Equipment will not be less than the total principal amount of the Rental Payments. (b) The Equipment has been ordered or is expected to be ordered within six months of the effective date of this Lease, and the Equipment is expected to be delivered and installed, and the Vendor fully paid, within eighteen months of the effective date of this Lease. (c) Lessee has not created or established, and does not expect to create or establish, any sinking fund or other similar fund (i) that is reasonably expected to be used to pay the Rental Payments, of (ii) that may be used solely to prevent a default in the payment of Rental Payments. (d) The Equipment has not been, and is not expected to be, sold or otherwise disposed of by Lessee, either in whole or in major part, prior to the final Rental Payment. (e) To the best of Lessee's knowledge, information and belief, the above expectations are reasonable. APPROPRIATIONS AND ESSENTIAL USE: Lessee reasonably believes that sufficient funds can be obtained to make all Rental Payments during the Lease Term. The responsible financial officer of Lessee will do all things lawfully within his or her power to obtain funds from which the Rental Payments, including any Rental Payments required by Section 4 hereof, may be made, including making provisions for such payments, to the extent necessary, in each proposed annual budget submitted for approval in accordance with applicable procedures of Lessee. Notwithstanding the foregoing, the decision whether or not to budget or appropriate funds or to extend this Lease for any subsequent annual fiscal period is solely within the discretion of the then current governing body of Lessee. Lessee currently intends to make the Rental Payments for the full Lease Term if funds are legally available therefor, and in that regard Lessee represents that (a) the use of the Equipment is essential to its proper, efficient, and economic functioning onto the services that it provides to its citizens; (b) Lessee has an immediate need for and expects to make immediate use of substantially all the Equipment, which need is not temporary or expected to diminish in the foreseeable future; and (c) the Equipment will be used by the Lessee only for the purpose of performing one or more of its governmental or proprietary functions consistent with the permissible scope of its authority. NONAPPROPRIATION OF FUNDS. In the event insufficient funds are appropriated and budgeted to pay Rental Payments required by Section 4 hereof and any other amounts payable under this Lease, for any fiscal period in which the Rental Payments for the Equipment are due under this Lease, then, without penalty, liability or expense to Lessee, this Lease will thereafter terminate on the last day of the fiscal period for which appropriations were made, except as to (i) the portions of the Rental Payments herein agreed upon for which funds have been appropriated and budgeted of are otherwise available and (ii) Lessee's other obligations and liabilities under this Lease relating to, accruing or arising prior to such termination. Lessee will, not less than sixty (60) days prior to the end of such applicable fiscal period. In writing, notify Lessor of such occurrence, but failure to give such notice will not prevent such termination. In the event of such termination. Lessee agrees to immediately cease use of the Equipment and peaceably surrender possession of the Equipment to Lessor on the day of such termination, packed for shipment in accordance with manufacturer's specifications and eligible for manufacturer's maintenance, and freight prepaid and insured to any location in the continental United States designated by Lessor, all at Lessee's expense. Lessor may exercise all available legal and equitable rights and remedies in retaking possession of the Equipment. If Lessee fails to cease use and deliver possession of the Equipment to Lessor upon termination of this Lease under this section, the termination shall nevertheless be effective but Lessee shall be responsible for the payment of damages in an amount equal to (a) the portion of Rental Payments thereafter coming due that is attributable to the number of days after the termination during which Lessee fails to cease use and deliver possession of the Equipment and (b) any other loss suffered by Lessor as a result of Lessee's failure to deliver possession of the Equipment. 9. EXCLUSION OF WARRANTIES; LIMITATIONS OF LIABILITY; DISCLAIMER OF CONSEQUENTIAL DAMAGES: LESSEE HAS SELECTED BOTH THE EQUIPMENT AND THE VENDOR(S) FROM WHOM LESSOR IS TO PURCHASE THE EQUIPMENT IN RELIANCE HEREON. LESSEE ACKNOWLEDGES AND AGREES THAT THE EQUIPMENT IS OF A SIZE, DESIGN AND CAPACITY SELECTED BY LESSEE, THAT LESSOR IS NOT A MANUFACTURER, VENDOR, DISTRIBUTOR OR LICENSOR OF SUCH EQUIPMENT, AND THAT LESSOR LEASES THE EQUIPMENT AS IS AND HAS NOT MADE, AND DOES NOT HEREBY MAKE, ANY REPRESENTATION, WARRANTY OR COVENANT, EXPRESS OR IMPLIED, WITH RESPECT TO THE MERCHANTABILITY, CONDITION, QUALITY, DURABILITY, DESIGN, OPERATION, FITNESS FOR USE, OR SUITABILITY OF THE EQUIPMENT IN ANY RESPECT WHATSOEVER OR IN CONNECTION WITH OR FOR THE PURPOSES AND USES OF LESSEE, OR ANY OTHER REPRESENTATION, WARRANTY OR COVENANT OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT THERETO INCLUDING ANY WARRANTIES OF TITLE OR AGAINST INFRINGEMENT OR ANY WARRANTIES ARISING FROM A COURSE OF DEALING, USAGE OR PRACTICE, ALL OF WHICH ARE SPECIFICALLY DISCLAIMED BY LESSOR AND IN NO EVENT SHALL LESSOR BE OBLIGATED OR LIABLE FOR ACTUAL, INCIDENTAL, CONSEQUENTIAL. OR OTHER DAMAGES OF OR TO LESSEE OR ANY OTHER PERSON OR ENTITY ARISING OUT OF OR IN CONNECTION WITH THE EQUIPMENT, INCLUDING BUT NOT LIMITED TO THE SALE, LEASE, USE, PERFORMANCE OR MAINTENANCE OF THE EQUIPMENT, INCLUDING INTERRUPTION OF SERVICE, LOSS OF DATA, LOSS OF REVENUE OR PROFIT, LOSS OF TIME OR BUSINESS, OR ANY SIMILAR LOSS, EVEN IF ANY SUCH PERSON IS ADVISED IN ADVANCE OF THE POSSIBILITY OR CERTAINTY OF SUCH DAMAGES AND EVEN IF LESSEE ASSERTS OR ESTABLISHES A FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY PROVIDED IN THIS LEASE. Lessee acknowledges that neither the original vendor nor licensor of the Equipment (including the salespersons of any of them) is an agent of Lessor, nor are they authorized to waive or alter any terms of this Lease. Lessee hereby waives any claim (including any claim based on strict or absolute liability in tort) it might have against Lessor or any assignee of the Lessor for any loss, damage or expense caused by or with respect to the Equipment. Lessor hereby assigns to Lessee during the Lease Term, to the extent permitted by law and so long as no Event of Default has occurred pursuant to Section 20 below, all manufacturer's warranties, if any, that it may have with respect to the Equipment, and Lessor authorizes Lessee to obtain the customary services furnished in connection with such warranties at Lessee's expense_ Lessor authorizes Lessee, to the extent permitted bylaw. to enforce in its own name any warranty, representation or other claim enforceable against the manufacturer. Lessor assumes no responsibility for shipment, delivery, installation or maintenances, and all claims of Lessee with respect thereto, whether for delay, damage or otherwise, will be made against the manufacturer. Lessor, at its option, may provide in its purchase order that the manufacturer agrees that any of such claims may be made by Lessee directly against the manufacturer. The obligation of Lessee to pay the Rental Payments as defined in Section 4 will not be abated, impaired or reduced by reason of any claims of Lessee with respect to the Equipment, including but not limited to its condition, quality, workmanship, delivery, shipment, installation, defects or otherWse. 10. TITLE, SECURITY INTEREST: During the Lease Term, title to the Equipment is deemed to be in Lessee so long as no Event of Default pursuant to Section 20 below has occurred and/or this Lease has not been terminated pursuant to the provisions of Section 8 above, subject to a first priority security interest in the Equipment which is retained by Lessor. Upon the earlier of (i) termination of this Lease in accordance with Section 8 above or 00 the occurrence of an Event of Default by Lessee pursuant to Section 26 below, title will immediately revert to Lessor free of any right, title or interest of Lessee unless Lessor elects otherwise. In order to secure all of Lessee's obligations hereunder, Lessee hereby (a) to the extent permitted by law, grants to Lessor a first and prior security interest in any and all rights, titles and interest of Lessee in this Lease, the Equipment and in all additions, attachments, accessions, accessories, replacements and improvements thereto, now or hereafter acquired, together will all rents, issues, income, profits and proceeds thereof, including insurance proceeds; (b) agrees that financing statements evidencing Lessor's security interest may be filed; and (c) agrees to execute and deliver all certificates of title and other instruments necessary or appropriate to evidence and perfect such security interest. As further security therefor, Lessee grants to Lessor a first priority security interest in the cash and negotiable instrument from time to time comprising the escrow fund, if any, established under the Escrow Agreement and all proceeds (cash and non -cash) thereof, and agrees with respect thereto that Lessor shall have all the rights and remedies of a secured party. 11. PERSONAL PROPERTY: Lessor and Lessee agree that the Equipment is, and will remain, personal property and will not be deemed to be affixed or attached to real property or any building thereon. Notwithstanding the foregoing, for purposes of providing notice to third parties, Lessee agrees that, upon Lessor's request, it will provide the legal description of ail real property where any of the Equipment is or will be installed, and Lessee agrees that financing statements evidencing Lessor's security interest may be filed in the real property records. If requested by Lessor, Lessee will, at Lessee's expense, furnish to Lessor landlord or mortgagee waiver with respect to the Equipment. 12. USE; REPAIRS: Lessee will use the Equipment in a careful manner for the use contemplated by the manufacturer of the Equipment and will comply with all laws, ordinances, insurance policies and regulations relating to, and will pay all costs, claims, damages, fees and charges arising out of, its possession, use or maintenance. Lessee, at its sole costs and expense, will maintain the Equipment according to the manufacturer's recommended guidelines or the equivalent and meet any and all recertification requirements and will furnish proof of such maintenance, if requested by Lessor and will furnish all needed servicing and parts, which parts will become part of the Equipment. If the Equipment is such as is customarily covered by a maintenance agreement, Lessee will furnish Lessor with a maintenance agreement with a party satisfactory to Lessor. 13. ALTERATIONS: Lessee will not make any alterations, additions or improvements to the Equipment without Lessor's prior written consent, and any permitted alteration or attachment which cannot be readily removed without damaging the Equipment's originally intended function or value will become part of the Equipment. 14. LOCATION; INSPECTION: The Equipment will not be removed from, or if the Equipment consists of rolling stock, its permanent base will not be changed from the Equipment Location without Lessor's prior written consent, which consent will not be unreasonably withheld. Lessor will be entitled to enter upon the Equipment Location or elsewhere during reasonable business hours to inspect the Equipment or observe its use and operations. 15. LIENS AND TAXES: Lessee will keep the Equipment free and clear of all levies, liens and encumbrances except those created under this Lease. Lessee will pay, when due, all charges and taxes (federal, state and local) which may now or hereafter be imposed upon the ownership, leasing, rental, sale, purchase, possession or use of the Equipment, excluding however, all taxes on or measured by Lessor's income. If Lessee fails to pay said charges and taxes when due, Lessor will have the right, but will not be obligated, to pay said charges and taxes. If Lessor pays any charges or taxes for which Lessee is responsible or liable under this Lease, Lessee will, upon demand, reimburse Lessor therefor. 16. RISK OF LOSS; DAMAGE; DESTRUCTION: Lessee assumes all risk of loss of or damage to the Equipment from any cause whatsoever, and no such loss of or damage to the Equipment will relieve Lessee of the obligation to make the Rental Payments or to perform any other obligation under this Lease. In the event of damage to any item of Equipment, Lessee will immediately place the same in good repair (the proceeds of any insurance recovery will be applied to the cost of such repair). If Lessor determines that any item of Equipment is lost, stolen, destroyed or damaged beyond repair, Lessee, at the option of Lessor, will (a) replace the same with like equipment in good repair; or (b) on the next Rental Payment date pay to Lessor (i) all amounts owed by Lessee under this Lease, including the Rental Payment due on such date, and (ii) an amount not less than the balance of the Rental Payments then remaining unpaid hereunder. In the event that Lessee is obligated to make such payment with respect to less than all of the Equipment. Lessor will provide Lessee with the pro rata amount of the Rental Payment and the balance of the Rental Payments then remaining unpaid hereunder, as applicable, to be made by Lessee with respect to the Equipment which has suffered the event of loss. 17- INSURANCE_ Lessee will, at its expense, maintain at all times during the Lease Term (a) fire and extended coverage, public liability and property damage insurance with respect to the Equipment in such amounts, covering such risks, and with such insurers as will be satisfactory to Lessor. In no event will the insurance limits be less then the greater of (i) an amount equal to the balance of the Rental Payments then remaining for the Lease Term or (ii) any minimum required by any coinsurance provisions of such insurance, (b) liability insurance that protects Lessor from liability in all events in form and amount satisfactory to Lessor, and (c) workers' compensation coverage as required by the laws of the state in which Lessee is located. Each insurance policy required by clause (b) of the preceding sentence will name Lessee as an insured and Lessor or its assigns as an additional insured and loss payee, as appropriate, and each insurance policy required by the preceding sentence will contain a clause requiring the insurer to give Lessor at least thirty (30) days prior written notice of any alteration in the terns of such policy or the cancellation thereof. The proceeds of any such policies will be payable to Lessee and Lessor or its assigns, as their interest may appear. Upon acceptance of the Equipment and upon each insurance renewal date, Lessee will deliver to Lessor a certificate evidencing such insurance. In the evert of any loss, damage, injury or accident involving the Equipment, Lessee will promptly provide Lessor with written notice hereof and make available to Lessor all information and documentation relating thereto. Notwithstanding the foregoing, with Lessor's prior written consent, Lessee may self -insure against any and all risks for which insurance is required. 18. ADVANCES: In the event Lessee fails to maintain the insurance required by this Lease or fails to keep the Equipment in good repair and operating condition, Lessor may (but will be under no obligation to) purchase the required policies of insurance and pay the premiums on the same and make such repairs or replacements as are necessary and pay the cost thereof. All amounts so advanced by Lessor will become additional rent payable by Lessee. Lessee agrees to pay such amounts with interest thereon from the date paid at the rate of 1,5% per month or the maximum permitted by law, whichever is less. Unless Lessee provides evidence of the insurance coverage required by this Lease, Lessor may purchase insurance at Lessee's expense to protect Lessor's interests hereunder. This insurance may, but need not, protect Lessee's interests. The coverage that Lessor may purchase may not pay any claim that Lessee may make or any claim that may be made against Lessee in connection with the Equipment. Lessee may later cancel any insurance purchased by Lessor, but only after providing evidence that Lessee has obtained insurance as required by this Lease. If Lessor purchases insurance for the Equipment, Lessee will be responsible for the costs of that insurance, including the insurance premium, interest and any other charges Lessor may impose in connection with the placement of the insurance, until the effective date of the cancellation or expiration of the insurance. The costs of the insurance will be added as additional rent. The costs of the insurance may be more than the cost of insurance Lessee may be able to obtain on its own. 18. INDEMNIFICATION: To the extent permitted by law, and solely from legally available funds, Lessee agrees to indemnify Lessor against, and hold Lessor harmless from, any and all claims, actions, proceedings, expenses, damages, liabilities or losses (including, but not limited to, attorneys' fees and court costs) arising in connection with the Equipment, including, but not limited to, its selection, purchase, delivery, possession, use, operation or return and the recovery of claims under insurance policies thereon. 20. EVENTS OF DEFAULT: The Term "Event of Default" as used in this Lease, means the occurrence of any one or more of the following events: (a) Lessee fails to make any Rental Payment (or any other payment} as it becomes due in accordance with the terms of this Lease, and any such failure continues for ten (10) days after the date thereof; (b) Lessee tails to perform or observe any other covenant, condition or agreement to be performed or observed by it hereunder and such failure is not cured within ten (10) days after written notice thereof by Lessor; (c) the discovery by Lessor that any statement, representation or warranty made by Lessee in this Lease or in any document delivered by Lessee pursuant hereto or in connection herewith is false, misleading or erroneous in any material respect; (d) Lessee becomes insolvent, is unable to pay its debts as they become due, makes an assignment for the benefit of creditors, applies or consents to the appointment of a receiver, trustee, conservator or liquidator of Lessee or of all or substantial part of its assets, a petition for relief is filed by Lessee under federal bankruptcy, insolvency or similar taws, or a petition in a proceeding underany bankruptcy, insolvency or similar laws, is filed against Lessee and is not dismissed within thirty (30) days thereafter; (e) Lessee suffers an adverse material change in its financial condition or operations from the date hereof and, as a result, Lessor deems itself insecure; or (f) Lessee is in default under any other agreement executed at any time with Lessor or its affiliates, or under any other agreement or instrument by which it is bound. 21. REMEDIES: Upon the occurrence of an Event of Default, Lessor shall have the right, at its sole option, to exercise any one or more of the following remedies: (a) by written notice to Lessee, declare an amount equal to all amounts then due under this Lease and all remaining Rental Payments which will become due during the then current fiscal year of Lessee to be immediately due and payable, whereupon the same will become immediately due and payable and such amounts shall thereafter bear interest at the rate of 1.5% per month or the maximum rate permitted by applicable law, whichever is less; (b) by written notice to Lessee, request Lessee to (and Lessee agrees that it will), at Lessee's expense, promptly cease use and return the Equipment to Lessor in the manner set forth in Section 8 hereof, or Lessor, at its option and with or without terminating the Lease Term, may enter upon the premises where the Equipment is located and take immediate possession of and remove the same, without liability to Lessor or its agents for such entry or for damage to property or otherwise; (c) sell or lease the Equipment or sublease it for the account of Lessee, holding Lessee liable for (i) all Rental Payments and other payments due to the effective date of such selling, leasing or subleasing, and (u) for the difference between the net purchase price, rental and other amounts paid by the purchaser, lessee or sublessee pursuant to such sale, lease or sublease and the remaining amounts payable by the Lessee through the end of the then current fiscal year of Lessee hereunder; and (d) exercise any other right, remedy or privilege which may be available to it under applicable law, including the right to (i) proceed by appropriate court action to enforce the terms of this Lease, (ii) recover damages for the breach of this Lease, and (iii) rescind this Lease as to any or all of the Equipment. if Lessee fails to cease use and deliver possession of the Equipment upon the occurrence of an Event of Default, Lessee shall be responsible for the payment of damages in an amount equal to (a) the portion of Rental Payments that is attributable to the number of days after the termination during which Lessee fails to cease use and deliver possession of the Equipment and (b) any other loss suffered by Lessor as a result of Lessee's failure to cease use and deliver possession of the Equipment. In addition, Lessee will remain liable for all covenants and indemnities under this Lease and for all legal fees and other costs and expenses, including court costs, incurred by Lessor with respect to the enforcement of any of the remedies listed above or any other remedy available to Lessor. 4 22. EARLY PURCHASE OPTION; PREPAYMENT: Lessee may, upon sixty (60) days prior written notice to Lessor, and provided Lessee has fully paid and performed all other obligations hereunder and provided no Event of Default has occurred and is continuing, pay to Lessor an any regularly scheduled Rental Payment date the applicable amount set forth on Schedule C attached hereto, whereupon title to the Equipment will become unconditionally vested in Lessee, and Lessor will transfer any and all of its right, title and interest in the Equipment to Lessee as is, where is, without warranty, express or implied, except that Lessor will warrant to Lessee that the Equipment is free and clear of any liens created by Lessor. Upon delivery by Lessee of a final accepts noe certificate, any remaining monies in any escrow fund established under the Escrow Agreement shall be paid to Lessor, for credit, first, to the next Rental Payment due, and, second, to the prepayment of the principal portion of future Rental Payments hereunder in the manner directed by Lessor, in its sole discretion, unless Lessor directs that payment of such amount be made in such other manner directed by Lessor that, in the opinion of nationally recognized counsel in the area of tax-exempt municipal obligations satisfactory to Lessor, will not adversely affect the exclusion of the interest portions of Rental Payments from gross income for federal income tax purposes. If any amount is applied against the outstanding principal components of Rental Payments, Schedule C attached hereto will be revised accordingly. 23. DETERMINATION OF FAIR PURCHASE PRICE: Lessee and Lessor hereby agree and determine that the Rental Payments payable during the Lease Term represent the fair value of the use of the Equipment and that the am aunt required to exercise Lessee's option to purchase the Equipment pursuant to Section 22 represents the fair purchase price of the Equipment. Lessee hereby determines that the Rental Payments do not exceed a reasonable amount so as to place Lessee under a practical economic compulsion to renew this Lease or to exercise its option to purchase the Equipment. in making such determinations. Lessee and Lessor have given consideration to (a) the costs of the Equipment, (b) the uses and purposes for which the Equipment will be employed by Lessee, (c) the benefit to Lessee by reason of the acquisition and installation of the Equipment and the use of the Equipment pursuant to the terms and provisions of this Lease, and (d) Lessee's option to purchase the Equipment. Lessee hereby determines and declares that this Lease will result in equipment of comparable quality and meeting the same requirements and standards as would be necessary if the acquisition and installation of the Equipment were performed by Lessee other than pursuant to this Lease. Lessee hereby determines and declares that the Lease Term does not exceed the useful life of the Equipment. 24. ASSIGNMENT: Except as expressly provided herein, Lessee will not (a) assign, transfer, pledge, hypothecate or grant arty security interest in, or otherwise dispose of, this Lease or the Equipment or any interest in this Lease or the Equipment or (b) sublet or lend the Equipment or permit the Equipment to be used by anyone other than Lessee or Lessee's employees, unless Lessee obtains the prior written consent of Lessor and an opinion of nationally recognized counsel in the area of tax-exempt municipal obligations satisfactory to Lessor that such action will not adversely affect the exclusion of the interest portions of the Rental Payments from gross income for federal income tax purposes. Lessor, without the consent of Lessee, may assign all or any portion or portions of its right, We and interest in and to this Lease, the Equipment and any other documents executed with respect to this Lease, and/or grant or assign all or any portion or portions of its security interest in this Lease and the Equipment, in whole or in part to various assignees, their agents or trustees (each and any one hereinafter referred to as an "Assignee"). Any such assignment to an Assignee may provide that the Lessor or the Assignee will act as a collection and paying agent for owners of certificates of participation in this Lease, or may provide that a third -party trustee or agent will act as collection and paying agent for any Assignee, provided that any such trustee or agent will maintain registration books as a register of all persons who are owners of certificates of participation or other interest in Rental Payments and Lessee receives written notification of the name and address of the trustee or agent and a copy of the pooling and fractionalization agency or trustee agreement, if any. Any such Assignee will have all of the assigned rights of Lessor under this Lease. Subject to the foregoing, this Lease will inure to the benefit of and will be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. Any assignment or reassignment of any of Lessor's right, title or interest in this Lease or the Equipment will be effective upon receipt by Lessee of a duplicate original of the counterpart document by which the assignment or reassignment is made, disclosing the name and address of each such Assignee and, where applicable, to whom further payments hereunder should be made. During the Lease Term, Lessee covenants that it will keep a complete and accurate record of all assignments in form necessary to comply with Section 149(a) of the Code and the regulations, proposed or existing, from time to time promulgated thereunder. Lessee agrees to acknowledge in writing any assignments if so required. Lessee agrees that, upon notice of assignment, 0 so instructed it will pay directly to the Assignee, or its trustee or agent without abatement, deduction or setoff all amounts which become due hereunder. Lessee further agrees that it will not assert against any Assignee, or its trustee or agent, any defense, claim, counterclaim or setoff Lessee may have against Lessor. 25. FINANCIAL STATEMENTS: Each year during the term of this Lease, Lessee hereby agrees to deliver to Lessor a copy of: (i) annual audited financial statements within one hundred twenty (120) days of Lessee's fiscal year-end; and (II) within a reasonable period of time, any other financial information Lessor requests from time to time. 26. NATURE OF AGREEMENT: Lessor and Lessee agree that upon the due and punctual payment and performance of the installments of Rental Payments and other amounts and obligations under this Lease, title to the Equipment will vest permanently in Lessee as provided in this Lease, free and clear of any interest, lien or security of Lessor therein. 27. AMENDMENTS: This Lease may be amended or any of Its terms modified in any manner by written agreement of Lessee and Lessor. Any waiver of any provision of this Lease or of any right or remedy hereunder must be affirmatively and expressly made in writing and will not be implied from inaction, course of dealing or otherwise. 28. NOTICES: All notices to be given under this Lease must be made in writing and mailed by certified mail to the other party at its address set forth herein or at such address as the party may provide in writing from time to time. Any such notice is effective upon receipt. 29. SECTION HEADINGS: Ali section headings contained herein are for the convenience of reference only and are not intended to define or limit the scope of any provision of this Lease. 30. GOVERNING LAW: This Lease will be governed by the provisions hereof and by the laws of the State where Lessee is located. 31. FURTHER ASSURANCES: Lessee will deliver to Lessor Q) an opinion of counsel in substantially the form of Schedule D attached hereto or as Lessor may otherwise request; and (ii) if applicable, a certificate of a duly authorized official as to designation as a qualified tax-exempt obligation. Moreover, Lessee will execute or provide, as requested by Lessor, any documents and information that are reasonably necessary with respect to the transaction contemplated by this Lease. 32. ENTIRE AGREEMENT: This Lease, together with the Schedules attached hereto and made a part hereof and other attachments hereto and other documents or instruments executed by Lessee and Lessor in connection herewith, constitute the entire agreement between the parties with respect to the lease of the Equipment, and this Lease will not be modified, amended, altered or changed except with the written consent of Lessee or Lessor. 33. SEVERABILITY: Any provision of this Lease found to be prohibited by law will be ineffective to the extent of such prohibition without invalidating the remainder of this Lease. 34. WAIVER: The waiver by Lessor of any breach by Lessee of any term, covenant or condition, hereof will not operate as a waiver of any subsequent breach hereof. 35. ELECTRONIC TRANSACTIONS. The parties agree that the transaction described herein may be conducted and related documents may be stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. 36. ROLE OF LESSOR: Lessor has not acted and will not act as a fiduciary for Lessee or as Lessee's agent or municipal advisor. Lessor has not and will not provide financial, legal, tax, accounting or other advice to Lessee or to any financial advisor or placement agent engaged by Lessee with respect to this Lease. Lessee, its financial advisor, placement agent or municipal advisor, if any, shall each seek and obtain Its own financial, legal, tax, accounting and other advice with respect to this Lease from its own advisors (including as it relates to structure. timing, terms and similar matters). ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT ENFORCEABLE. TO PROTECT YOU (LESSEE(S) AND US (LESSOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT_ BY SIGNING BELOW, YOU AND WE AGREE THAT THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN US Lessor.' Cla ion Holdings, LLC Lessee: Authorized Signature: Authorized Signature Printed Name: Printed Name. - Title: Title: Date: Date: ON: M. SCHEDULE A TO STATE & MUNICIPAL LEASEIPURCHASE AGREEMENT Lease No. - Location of Equipment Street: City: state: Zip Code: Description of Equipment Equipment Cost Total Lessee hereby certifies that the description of the property set forth above constitutes a complete and accurate description of all Equipment as subject to in the Lease. Lessee: Authorized Signature: Printed Name. - Title: Date: 7 SCHEDULE B TO STATE & MUNICIPAL LEASEIPURCHASE AGREEMENT Lease No. - DELIVERY AND ACCEPTANCE CERTIFICATE See Exhibits B and C to the Escrow Agreement. SCHEDULE C PAYMENT SCHEDULE Lessee: Lessor: Clayton Holdings, LLC Lease Number: - Capital Cost of Equipment (Principal Portion of Rental payments): $ Nominal Interest Rate: % Start Date: (actual funding date -- to be completed by Lessor) Subject to Section 8 of the Lease, Rental Payments are due on the dates and in the amounts shown below: Lessee. - Authorized Signature: Printed Name: Title: Date. Marc A. Sebora, City Attorney Office of the City Attorney 11 1 Hassan Street 5E Hutchinson, MN 553-50-2522 320-234-5.6831Phone.320-234-4201[Fax SCHEDULE D TO STATE & MUNICIPAL LEASE AGREEMENT OPINION OF COUNSEL Clayton Holdings, LLC 8000 Forsyth Boulevard, Suite 510 St. Louis, MO 63105 RE: State and Municipal Lease Agreement No. - dated the day of , 2019 (the "Lease"), between Clayton Holdings, LLC ("Lessor") and the City of Hutchinson, Minnesota ("Lessee") Ladies and Gentlemen: As legal counsel to Lessee, I have examined (a) an executed counterpart of the Lease, which, among other things, provides for the sale to and purchase by the Lessee of the Equipment, (b) an executed counterpart of the Escrow Agreement, dated as of (the "Escrow Agreement"), among Lessor, Lessee and The Commerce Trust Company, (c) an executed counterpart of the ordinance, order or resolution of Lessee which, among other things, authorizes Lessee to execute the Lease and (d) such other opinions, documents and matters of law as I have deemed necessary in connection with the following opinions. Based on the foregoing, I am of the following opinions: I. Lessee is a public body corporate and politic, duly organized and existing under the laws of the State, and has a substantial amount of one or more of the following sovereign powers: (a) the power to tax, (b) the power of eminent domain, and (c) police power. 2. Lessee has the requisite power and authority to purchase the Equipment and to execute and deliver the Lease and the Escrow Agreement and to perform its obligations under the Lease, and the Escrow Agreement and the execution, delivery and compliance with the provisions of the Lease and the Escrow Agreement will not conflict with or result in the breach of any of the provisions of, or constitute a default under any indenture or other agreement or instrument to which Lessee is a party, or by which it or its property is bound. 3. The Lease, the Escrow Agreement and the other documents either attached thereto or required therein have been duly authorized, approved and executed by and on behalf of Lessee, and the Lease is a valid and binding obligation of Lessee enforceable in accordance with its terms. 4. The authorization, approval and execution of the Lease, the Escrow Agreement and all other proceedings of Lessee relating to the transactions contemplated thereby have been performed in accordance with all open meeting laws, public bidding laws and all other applicable state and federal laws. There is no proceeding pending or threatened in any court or before any governmental authority or arbitration board or tribunal that, if adversely determined, would adversely affect the transactions contemplated by the Lease, the Escrow Agreement or the security interest of Lessor or its assigns, as the case may be, in the Equipment. Furthermore, I confirm that the name of the Lessee as stated in the Lease, as the City of Hutchinson, Minnesota, is the exact legal name of the Lessee for all purposes contemplated herein. All capitalized terms herein shall have the same meanings as in the Lease. Lessor, its successors and assigns and any counsel rendering an opinion on the tax-exempt status of the interest portions of Mental Payments are entitled to rely on this opinion. Very truly yours, Marc A. Sebora City Attorney MASIms SCHEDULE E-1 TO STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT Lease No. - WHEREAS, (the "Lessee") is a political subdivision duly organized under the constitution and laws of the State where Lessee is located; WHEREAS, it is necessary and desirable and in the best interest of the Lessee, as lessee, to enter into a State & Municipal LeaselPurchase Agreement (the "Lease") with Clayton Holdings, LLC, as lessor (the "Lessor"), for the purposes described therein, including the leasing of the Equipment; and WHEREAS, the Lessee has, in accordance with the requirements of law, fully budgeted and appropriated sufficient funds for the current fiscal year to make the Rental Payments scheduled to come due during the current fiscal year and to meet its other obligations, and such funds have not been expended for other purposes NOW, THEREFORE, BE IT RESOLVED, BY THE GOVERNING BODY OF [LESSEE], AS FOLLOWS: Section 1. The Lease and the Escrow Agreement, in substantially the same form as presented to this meeting, and the terms and performance thereof are hereby approved, and the of the Lessee is hereby authorized to execute and deliver the Lease and the Escrow Agreement, on behalf of the Lessee, with such changes therein as shall be approved by such officer, such approval to be conclusively evidenced by such officer's execution thereof. Section 2. The Lessee shall, and the officers, agents and employees of the Lessee are hereby authorized and directed to take such further action and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Resolution, and to carry out, comply with and perform the duties of the Lessee with respect to the Lease and the Escrow Agreement. Section 3. Lessee hereby designates the Lease as a "qualified tax-exempt obligation" as defined in Section 265(b)(3)(B) of the Internal Revenue Code. The aggregate face amount of all tax-exempt obligations (including the Lease, but excluding private activity bonds other than qualified 501(c)(3) bonds) issued or to be issued by Lessee and all subordinate entities thereof during the current calendar year is not reasonably expected to exceed $10,000,000. Lessee and all subordinate entities thereof will not issue in excess of $10,000,000 of tax-exempt obligations (including the Lease, but excluding private activity bonds other than qualified 501(c)(3) bonds) during the current calendar year without first providing Lessor with an opinion of nationally recognized counsel in the area of tax-exempt municipal obligations acceptable to Lessor, that the designation of the Lease as a "qualified tax-exempt obligation" will not be adversely affected. Section 4. Moneys sufficient to pay all Rental Payments required to be paid under the Lease during Lessee's current fiscal year are hereby appropriated to such payment, and such moneys will be applied in payment of all Rental Payments due and payable during the current fiscal year. Section 5. This Resolution shall take effect and be in full force immediately after its adoption by the governing body of the Lessee. PASSED AND ADOPTED by the governing body of this _ day of 20l. ATTEST: LESSEE: By: Printed Name: Title By: Printed Name: Title: 11 SCHEDULE E-2 T❑ STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT Lease No. - INCUMBENCY AND AUTHORIZATION CERTIFICATE The undersigned, a duly elected or appointed and acting ("Lessee') certifies as follows: Of A. Authorized Signers. The following listed persons are duly elected or appointed and acting officials of Lessee (the "Officials") in the capacity set forth opposite their respective names below, and the signature of each such Official appearing below is the true and genuine signature of that Official. By order of Lessee's governing body, the Officials identified below have been duly authorized, on behalf of Lessee, to negotiate, execute and deliver the Equipment Lease/Purchase Agreement dated as of 2018, by and between Lessee and Clayton Holdings, LLC ("Lessor"), the Escrow Agreement dated as of 2018 among Lessor, Lessee and The Commerce Trust Company, as Escrow Agent (the "Escrow Agreement"), and all documents related thereto and delivered in connection therewith (collectively, the "Agreements"). Name of Official Title Signature B. Call -Back Verification. Lessor may, but is not required, to call back any one of the below -named employees or officials of Lessee prior to approving the disbursement of any funds from the Acquisition Fund established under the Escrow Agreement to verify the request for disbursement, including but not limited to amount, payee, address, ABA and account numbers of the payee or Lessee. Dated Name Title Phone Number By: Na Title: (The signer of this Certificate cannot be listed under Paragraph A above as authorized to execute the Agreements.) 12 SCHEDULEF STATE & MUNICIPAL LEASEIPURCHASE AGREEMENT Lease No. - ESSENTIAL USE/SOURCE OF FUNDS LETTER day of Clayton Holdings, LLC 8000 Forsyth Boulevard, Suite 510 St. Louis, Missouri 63105 Re: State and Municipal Lease/Purchase Agreement No. - , dated the ^ day of , 2018 (the "Lease"), between Clayton Holdings, LLC ("Lessor") and ("Lessee") Ladies and Gentlemen: This confirms and affirms that the Equipment described in the Lease is essential to the function of the undersigned or to the service we provide to our citizens. Further, we have an immediate need for, and expect to make immediate use of, substantially all such Equipment, which need is not temporary or expected to diminish in the foreseeable future. Such Equipment will be used by us only for the purpose of performing one or more of our governmental or proprietary functions consistent with the permissible scope of our authority. Specifically, such Equipment was selected by us to be used as follows: The estimated useful life of such Equipment based upon manufacturer's representations and our projected needs is not less than the maximum Lease Term. Our source of funds for payments of the Rental Payments due under the Lease for the current fiscal year is We currently expect and anticipate adequate funds to be available for all future payments of rent due after the current fiscal year for the following reasons: Very truly yours, Lessee: Authorized Signature: Printed Name: Title: Date: 13 SCHEDULE G PROOF OF INSURANCE Insurance Agent Name: Agency Name: Address: Phone Number: E-Mail: Ladies and Gentlemen: Please add CLAYTON HOLDINGS, LLC as both co -loss payee and additional insured under the property insurance covering the Equipment listed on attached Schedule A, and as additional insured under the general liability insurance policy. The minimum liability coverage is $1,000,000.00. Please mail or fax an insurance certificate to: Clayton Holdings, LLC P.O. Box 11309 St. Louis, MO 63105 Fax # 314-746-37" Upon acceptance of the Equipment and upon each insurance renewal date, Lessee will deliver to Lessor a certificate evidencing such insurance. Please note that the Sank requires 30 day written notice of cancellation of the policy covering leased equipment. Lessee: Authorized Signature. - Printed Name: Title: Date: 14 40h�, Commerce Bank SCtI<EDULiE H ACH Payment Authorization Farm Lease No. 1 Loan No: Lessee 1 Borrower: I authorize Commerce Bank ("Commerce") to initiate debit entries and to initiate, if necessary, credit entries and adjustments for any debit entries in error on behalf of CB] Equipment Finance, Clayton Holdings or Commerce Bank as lender or lessor in the amount shown, and from the checking or savings account with the depository institution ("Bank") named below, on the payment due date. Bank Name: Address: ABA Routing No.: Account No.: (X) Checking ( ) Savings This is a (X) New or ( ) Updated authorization form. Debit Amount(s): $ Begin Auto Debit with Invoice Date Due: The final or balloon payment, if different from the payment, will not be auto debited. l understand that this authorization will remain in full force and effect until I notify COMMERCE BANK at the address or phone number below that 1 wish to revoke this authorization. I understand that COMMERCE BANK requires at least 5 days prior notice in order to process any such cancellation. Borrower/ Lessee Signature Date Note that there is NO charge for this service. Also, your "Bank" need not be Commerce Bank to benefit from this feature. Any bank account can be auto debited. To commence service please return this farm with your document package or send this signed form and a voided check (unless COMMERCE BANK is already currently debiting this same account for another lease schedule) to: COMMERCE BANK P.Q. Box 11309 Clayton, MO 63105 or LeasingACH@Commercebank.com To discontinue or amend service, please email the request to the address above or call COMMERCE BANK at 3 1 4.746.3726. 15 ESCROW AGREEMENT This Escrow Agreement (the "Escrow Agreement"), dated as of the day of , 2018 and entered into among Clayton Holdings, LLC, a Missouri Limited liability Company (together with its successors and assigns, "Lessor"), a municipal corporation and political subdivision existing under the laws of ("Lessee"), and The Commerce Trust Company, a Missouri banking corporation, as escrow agent (together with its successors and assigns, the "Escrow Agent"). Name of Acquisition Fund: " is Amount of Deposit into the Acquisition Fund: $ TERMS AND CONDITIONS 1. This Escrow Agreement relates to and is hereby made a part of the State and Municipal Lease/Purchase Agreement dated as of the day of , 2018, (the "Lease"), between Lessor and Lessee. 2. Except as otherwise defined herein, all terms defined in the Lease shall have the same meaning for the purposes of this Escrow Agreement as in the Lease. 3, Lessor, Lessee and the Escrow Agent agree that the Escrow Agent will act as sole Escrow Agent under the Lease and this Escrow Agreement, in accordance with the terms and conditions set forth in this Escrow Agreement. The Escrow Agent shall not be deemed to be a party to the Lease, and this Escrow Agreement shall be deemed to constitute the entire agreement between Lessor and Lessee and the Escrow Agent. 4. There is hereby established in the custody of the Escrow Agent a special trust fund designated as set forth above (the "Acquisition Fund") to be held and administered by the Escrow Agent in trust for the benefit of Lessor and Lessee in accordance with this Escrow Agreement. 5. Lessor shall deposit in the Acquisition Fund the amount specified above. Moneys held by the Escrow Agent hereunder shall be invested and reinvested by the Escrow Agent upon written order of an authorized Lessee representative, in accordance with the Arbitrage instructions attached as Exhibit A, in Qualified Investments (as defined below) maturing or subject to redemption at the option of the holder thereof prior to the date on which it is expected that such funds will be needed. If an Authorized Lessee Representative fails to timely direct the investment of any moneys held hereunder, the Escrow Agent shall invest and reinvest such moneys in Qualified Investments described in 6(vi) below. Such investments shall be held by the Escrow Agent in the Acquisition Fund; any interest and gain earned on such investments shall be deposited in the Acquisition Fund, and any losses on such investments shall be charged to the Acquisition Fund. The Escrow Agent may act as purchaser or agent in the making or disposing of any investment. Qualified Investments described in 6(vi) below will be subject to an annualized sweep fee charged monthly to the earnings on monies invested. 6. "Qualified Investments" means, to the extent the same are at the time legal for investment of the funds being invested: (i) direct general obligations of the United States of America; (ii) obligations the timely payment of principal of and interest on which is fully and unconditionally guaranteed by the United States of America; (iii) general obligations of the agencies and instrumentalities of the United States of America acceptable to Lessor; (iv) certificates of deposit, time deposits or demand deposits with any bank or savings institution including the Escrow Agent or any affiliate thereof, provided that such certificates of deposit, time deposits or demand deposits, if not insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, are fully secured by obligations described in (i), (ii) or (iii) above; or (v) repurchase agreements with any state or national bank or trust company, including the Escrow Agent or any affiliate thereof, that are secured by obligations of the type described in (i), (ii) or (iii) above, provided that such collateral is free and clear of claims of third parties and that the Escrow Agent or a third party acting solely as agent for the Escrow Agent has possession of such collateral and a perfected first security interest in such collateral; or (vi) money 16 market mutual funds that are invested in securities described in (i), (ii) or (iii) and that are rated "Aaa" by Moody's Investors Service or °AAAm-G" by Standard & Poor's Ratings Services or the comparable rating by Fitch IBCA, Inc. 7. Moneys in the Acquisition Fund shall be used to pay for the cost of acquisition of the Equipment listed in the Lease. Such payment shall be made from the Acquisition Fund upon presentation to the Escrow Agent of one or more properly executed Payment Request and Acceptance Certificates, a form of which is attached as Exhibit B, executed by Lessee and approved by Lessor, together with an invoice for the cost of the acquisition of said Equipment and a written approval by Lessor of the Vendor be paid. In making any disbursement pursuant to this Section 7, the Escrow Agent may conclusively rely as to the completeness and accuracy of all statements in such Payment Request and Acceptance Certificate, and the Escrow Agent shall not be required to matte any inquiry, inspection or investigation in connection therewith. The approval of each Payment Request and Acceptance Certificate by the Lessor shall constitute unto the Escrow Agent an irrevocable determination by the Lessor that all conditions precedent to the payment of the amounts set forth therein have been completed. 8. The Acquisition Fund shall terminate upon the occurrence of the earlier of (a) the presentation of a proper Payment Request and Acceptance Certificate and the Final Acceptance Certificate, a form of which is attached as Exhibit C, properly executed by Lessee, (b) 12 months from the date hereof (or such later date as may be agreed to in writing by Lessor and Lessee with notice in writing to Escrow Agent), or (c) the presentation of written notification by the Lessor that the Lease has been terminated pursuant to Section 8 or 20 of the Lease. Upon termination as described in clause (a) or (b) of this paragraph, any amount remaining in the Acquisition Fund shall be paid to Lessor for application as provided in the Lease. Upon termination as described in clause (c) of this paragraph, any amount remaining in the Acquisition Fund shall immediately be paid to Lessor. 9. The Escrow Agent may at any time resign by giving at least 30 days written notice to Lessee and Lessor, but such resignation shall not take effect until the appointment of a successor Escrow Agent. The substitution of another bank or trust company to act as Escrow Agent under this Escrow Agreement may occur by written agreement of Lessor and Lessee. In addition, the Escrow Agent may be removed at any time, with or without cause, by an instrument in writing executed by Lessor and Lessee. In the event of any resignation or removal of the Escrow Agent, a successor Escrow Agent shall be appointed by an instrument in writing executed by Lessor and Lessee. Such successor Escrow Agent shall indicate its acceptance of such appointment by an instrument in writing delivered to Lessor, Lessee and the predecessor Escrow Agent. Thereupon such successor Escrow Agent shall, without any further act or deed, be fully vested with all the trusts, powers, rights, duties and obligations of the Escrow Agent under this Escrow Agreement and the predecessor Escrow Agent shall deliver all moneys and securities held by it under this Escrow Agreement to such successor Escrow Agent whereupon the duties and obligations of the predecessor Escrow Agent shall cease and terminate. If a successor Escrow Agent has not been so appointed with 90 days of such resignation or removal, the Escrow Agent may petition a court of competent jurisdiction to have a successor Escrow Agent appointed. 10, Any corporation or association into which the Escrow Agent may be merged or converted or with or into which it may be consolidated, or to which it may sell or transfer its corporate trust business and assets as a whole or substantially as a whole, or any corporation or association resulting from any merger, conversion, sale, consolidation or transfer to which it is a party, shall be and become successor Escrow Agent hereunder and shall be vested with all the trusts, powers, rights, obligations, duties, remedies, immunities and privileges hereunder as was its predecessor, without the execution or filing of any instrument or any further act on the part of any of the parties hereto. 11, The Escrow Agent incurs no responsibility to make any disbursements pursuant to the Escrow Agreement except from funds held in the Acquisition Fund. The Escrow Agent makes no representations or warranties as to the title to any Equipment listed in the Lease or as to the performance of any obligations of Lessor or Lessee. 12, The Escrow Agent may act in reliance upon any writing or instrument or signature which it, in good faith, believes to be genuine, may assume the validity and accuracy of any statement or assertion contained in such a writing or instrument, and may assume that any person purporting to give any writing, notice, advice or instructions in connection with the provisions hereof has been duly authorized to do so. The Escrow Agent shall not be liable in any manner for the sufficiency or correctness as to form, manner and execution, or validity of this Escrow Agreement other than its own 17 execution thereof or any instrument deposited with it, nor as to the identity, authority or right of any person executing the same; and its duties hereunder shall be limited to those specifically provided herein. 13. Unless the Escrow Agent is guilty of negligence or willful misconduct with regard to its duties hereunder, Lessee, to the extent permitted by law, and Lessor jointly and severally hereby agree to indemnify the Escrow Agent and hold it harmless from any and all claims, liabilities, losses, actions, suits or proceedings at law or in equity, or any other expense, fees or charges of any character or nature, which it may incur or with which it may be threatened by reason of its acting as Escrow Agent under this Escrow Agreement; and in connection therewith, to indemnify the Escrow Agent against any and all expenses, including reasonable attorneys' fees and the cost of defending any action, suit or proceeding or resisting any claim. 14. The aggregate amount of the costs, fees, and expenses of the Escrow Agent in connection with the creation of the escrow described in and created by this Escrow Agreement and in carrying out any of the duties, terms or provisions of this Escrow Agreement is a one time fee in the amount of $ to be paid by Lessee concurrently with the execution and delivery of this Escrow Agreement. Notwithstanding the preceding paragraph, the Escrow Agent shall be entitled to reimbursement from Lessor of reasonable out-of-pocket, legal or extraordinary expenses incurred in carrying out the duties, terms or provisions of this Escrow Agreement. Claims for such reimbursement may be made to Lessor and in no event shall such reimbursement be made from funds held by the Escrow Agent pursuant to this Escrow Agreement. The Escrow Agent agrees that it will not assert any lien whatsoever on any of the money or Qualified investments on deposit in the Escrow Fund for the payment of fees and expenses for services rendered by the Escrow Agent under this Escrow Agreement or otherwise. 15. If Lessee, Lessor or the Escrow Agent shall be in disagreement about the interpretation of the Lease or this Escrow Agreement, or about the rights and obligations, or the propriety of any action contemplated by the Escrow Agent hereunder, the Escrow Agent may, but shall not be required to, file an appropriate civil action to resolve the disagreement. The Escrow Agent shall be indemnified by Lessor and Lessee, to the extent permitted by law, for all costs, including reasonable attorneys' fees and expenses, in connection with such civil action, and shall be fully protected in suspending all or part of its activities under this Escrow Agreement until a final judgment in such action is received. 16. The Escrow Agent may consult with counsel of its own choice and shall have full and complete authorization and protection for any action or non -action taken by the Escrow Agent in accordance with the opinion of such counsel. The Escrow Agent shall otherwise not be liable for any mistakes of facts or errors of judgment, or for any acts or omissions of any kind unless caused by its negligence or willful misconduct. 17. This Escrow Agreement shall be governed by and construed in accordance with the laws of the state in which the Escrow Agent is located. 18. In the event any provision of this Escrow Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 19. This Escrow Agreement may not be amended except by a written instrument executed by Lessor, Lessee and the Escrow Agent. 20, This Escrow Agreement may be executed in several counterparts, each of which so executed shall be an original 18 IN WITNESS WHEREOF, Lessor, Lessee and the Escrow Agent have caused this Escrow Agreement to be executed by their duly authorized representatives. Clayton Holdings, LLC LESSOR By: Title: Officer LESSEE BY Printed Name: Titre: The Commerce Trust Company ESCROW AGENT By: Title: 19 EXHIBIT A ARBITRAGE INSTRUCTIONS These Arbitrage Instructions provide procedures for oomplying with § 148 of the Internal Revenue Code of 1886, as amended (the "Code"), in order to preserve the exclusion from federal gross income of the interest portions of the Rental Payments under the Lease. 1. Temporary Period[Yield Restriction. Except as described in this paragraph, money in the Acquisition Fund must not be invested at a yield greater than the yield on the Lease. Proceeds of the Lease in the Acquisition Fund and investment earnings on such proceeds may be invested without yield restriction for three years after the Start Date of the Lease. If any unspent proceeds remain in the Acquisition Fund after three years, such amounts may continue to be invested without yield restriction so long as Lessee pays to the IRS all yield reduction payments under § 1.148-5(c) of the Treasury Regulations, 2. Opinion of Bond Counsel. These Arbitrage Instructions may be modified or amended in whole or in part upon receipt of an opinion of nationally recognized counsel in the area of tax-exempt municipal obligations, satisfactory to Lessor, that such modifications and amendments will not adversely affect the exclusion of the interest portions of Rental Payments from gross income for federal income tax purposes. EXHIBIT B FORM OF PAYMENT REQUEST AND ACCEPTANCE CERTIFICATE To: The Commerce Trust Company, as Escrow Agent and Clayton Holdings, LLC, as Lessor 8000 Forsyth Blvd., Suite 510 St. Louis, Missouri 63105 Re: dated ("Lessor"), 2018 (the "Escrow as Escrow Agent (the "Escrow Agent") Ladies and Gentlemen: _Acquisition Fund established by the Escrow Agreement, Agreement") among Clayton Holdings, LLC, as lessor ("Lessee") and The Commerce Trust Company. The Escrow Agent is hereby requested to pay from the Acquisition Fund to the person or corporation designated below as Payee, the sum set forth below in payment of a portion or all of the cost of the acquisition of the equipment or the interest portions of Rental Payments) described below. The amount shown below is due and payable under the invoice of the Payee attached hereto with respect to the cost of the acquisition of the equipment or payment of the interest portions of Rental Payment(s) and has not formed the basis of any prior request for payment. The equipment described below is part or all of the "Equipment" that is listed in State and Municipal Lease/Purchase Agreement dated as of the day of , 2018 (the "Lease") described in the Escrow Agreement. Equipment: Payee: Amount Lessee hereby certifies and represents to and agrees with Lessor and the Escrow Agent as follows: 1. All of the above -listed Equipment has been delivered to and received by the undersigned; all installation or other work necessary prior to the use thereof has been completed; said Equipment has been examined andfor tested and is in good operating order and condition and is in all respects satisfactory to the undersigned and as represented, and said Equipment has been accepted by the undersigned and complies with all terms of the Lease. Consequently, you are hereby authorized to pay for the Equipment in accordance with the terms of any purchase orders for the same. 2. In the future, in the event the Equipment fails to perform as expected or represented we will continue to honor the Lease in all respects and continue to make our rental and other payments thereunder in the normal course of business and we will look solely to the vendor, distributor or manufacturer for recourse. 3. We acknowledge that Lessor is neither the vendor nor manufacturer or distributor of the Equipment and has no control, knowledge or familiarity with the condition, capacity, functioning or other characteristics of the Equipment. 4. No event or condition that constitutes, or with notice or lapse of time, or both, would constitute, an Event of Default (as defined in the Lease) exists at the date hereof. 5. Lessee is currently maintaining the insurance coverage required by Section 17 of the Lease 6. The serial number for each item of Equipment which is set forth on Schedule A to the Lease is correct. 21 APPROVED: Clayton Holdings, LLC LESSOR By: Title: Officer Dated: 20 LESSEE By: Printed Name. - Title: 22 EXHIBIT C FINAL ACCEPTANCE CERTIFICATE [THIS CERTIFICATE IS TO BE EXECUTED ONLY WHEN ALL EQUIPMENT HAS BEEN ACCEPTED] The undersigned hereby certifies that the equipment described above, together with the equipment described in and accepted by Payment Request and Acceptance Certificates previously filed by Lessee with the Escrow Agent and Lessor pursuant to the Escrow Agreement, constitutes all of the Equipment subject to the Lease. Dated: LESSEE By: Printed Name: Title: 23 CLAYTON HOLDINGS, LLC STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT Lease Number: 5000267-001 This State and Municipal Lease/Purchase Agreement (the "Lease") is made and entered into on this, the Twenty -Third day of April, 2019 by and between Clayton Holdings, LLC with offices at 8000 Forsyth Boulevard, Suite 510, St. Louis, Missouri 63105 (together with its successors and assigns, herein called the "Lessor"), and City of Hutchinson, Minnesota with its principal address at 111 Hassan St SE, Hutchinson, Minnesota 55350 (together with its permitted successors and assigns, herein called the "Lessee"), wherein it is agreed as follows: LEASE OF EQUIPMENT: Lessee hereby requests Lessor to acquire the equipment described in Schedule A attached hereto and made a part hereof. Subject to the terms and conditions hereof. Lessor agrees to lease to Lessee and Lessee agrees to lease from Lessor the equipment described in Schedule A, with all replacements, repairs, additions and accessories incorporated therein or affixed thereto (herein collectively called the "Equipment'). DELIVERY AND ACCEPTANCE. Lessee agrees to order the Equipment on behalf of Lessor from the supplier of such Equipment. Lessor will not be liable for specific performance of this Lease or for damages if for any reason the supplier delays or fails to fill the order. Lessee will cause the Equipment to be delivered at the location specked in Schedule A (the "Equipment Location"). Lessee is solely responsible for the selection of the Equipment and the vendor from which the Equipment is purchased. Lessee will pay all transportation and other costs, if any, incurred in connection with the delivery and installation of the Equipment. Any delay in such delivery will not affect the validity of this Lease. To the extent funds are deposited with a bank or trust company in an escrow fund for the acquisition of the Equipment, sash funds shall be disbursed as provided in the agreement pursuant to which such fund is established (the "Escrow Agreement"). Lessee will immediately accept the Equipment as soon as it has been delivered and is operational, or as soon as any manufacturer or vendor pre -acceptance test period has expired. In the event the Equipment is not accepted by Lessee within thirty (30) days from the date of its delivery, Lessor, at Lessor's sole option, will have the right to terminate this Lease- Lessee will evidence Its acceptance of the Equipment by executing and delivering to Lessor a delivery and acceptance certificate in the form of Exhibit B or C, as applicable, to the Escrow Agreement (the "Acceptance Certificate"). Lessee hereby authorizes the Lessor to add to this Lease and to any other description of the Equipment tits serial number of each item of Equipment, when avadabte. TERM: This Lease will become effective upon the execution hereof by Lessee and Lessor. Lessee's obligation to pay rent under this Lease will commence on the date that funds are advanced by Lessor to pay the vendor of the Equipment or are deposited with a bank or trust company in an escrow fund pursuant to the Escrow Agreement, if any (the "Start Date"), and will extend for an initial term through the end of Lessee's fiscal year containing the Start Date. The term of this Lease is subject to renewal on a year-to-year basis for the number of annual fiscal periods necessary to comprise the lease tern as set forth in Schedule C attached hereto and made a part hereof (the "Lease Tern"). At the end of the initial term and any renewal term, Lessee will be deemed to have exercised its option to renew this Lease for the next annual renewal term, unless Lessee has exercised its right to terminate the Lease pursuant to Section 8 below. RENT- Lessee agrees to pay Lessor the rental payments for the Equipment asset forth in Schedule C (the "Rental Payments"). A portion of each Rental Payment is paid as and represents the payment of interest as set forth in Schedule C. The Rental Payments will be payable without notice or demand, at the office of Lessor (or such other place as Lessor may designate in writing, from time to time) and will commence on the Start Date. For clarity, Lessee hereby authorizes Lessor to update Schedule C with the Start Date and actual due dates for Rental Payments based upon the frequency of payments stated on Schedule C. Any notice, invoicing, purchase orders, quotations or other forms or procedures requested by Lessee in connection with payment will be fully explained and provided to Lessor sufficiently in advance of the payment due date for the oompletion thereof by Lessor prior to such payment date, but none of the foregoing will be a condition to Lessee's obligation to make any such payment. If Lessee fails to pay any Rental Payment or any other sums under this Lease within ten (10) days when the same becomes due, Lessee shall pay to Lessor (in addition to and not in lieu of other rights of Lessor) a late charge equal to the greater of five (5%) percent of such delinquent amount or Twenty -Five Dollars ($25.00), but in any event not more than the maximum amount permitted bylaw. Such late charge shall be payable by Lessee upon demand by Lessor and shall be deemed rent hereunder. Lessee acknowledges and agrees that the late charge (i) does not constitute interest, (ii) is an estimate of the costs Lessor will incur as a result of the late payment and @i) is reasonable in amount- Lessor and Lessee understand and intend that the obligation of Lessee to pay Rental Payments hereunder will constitute a current expense of Lessee and will not in any way be construed to be a debt of Lessee in contravention of any applicable constitutional or statutory limitation or requirement concerning the creation of indebtedness by Lessee. EXCEPT AS SPECIFICALLY PROVIDED IN SECTION 8 HEREOF, LESSEE'S OBLIGATION TO MAKE RENTAL PAYMENTS SHALL BE ABSOLUTE AND UNCONDITIONAL IN ALL EVENTS AND WILL NOT BE SUBJECT TO ANY SETOFF, DEFENSE, COUNTERCLAIM, ABATEMENT OR RECOUPMENT FOR ANY REASON WHATSOEVER. Notwithstanding the foregoing, the interest portion of the Rental Payments on Schedule C will be adjusted, and Lessor will provide Lessee a revised Schedule C reflecting such adjustment in the event that it is determined that any of the interest portions of Rental Payments set forth in Schedule C may not be excluded from Lessor's gross income under Section 103 of the internal Revenue Code of 1986, as amended (the "Code"). Lessee agrees that the interest portion of the Rental Payments on Schedule C will be adjusted commencing with the first day of the next succeeding fiscal year of the Lessee, but only if this Lease is renewed for such fiscal year, and thereafter, so that Lessor will be in the same after-tax position that it would have been in had such payment been excluded from the gross income of Lessor under Section 1 D3 of the Code. AUTHORITY AND AUTHORIZATION. Lessee represents, warrants and covenants that (a) it will do or cause to be done all things necessary to preserve and keep in full force and effect (i) its existence, and (ii) subject to Section S hereof, this Lease; (b) it has complied with all bidding and budgeting requirements where necessary and by due notification has presented this Lease to Lessee's governing body for approval and adoption as a valid obligation on its part and that all requirements have been met and procedures have been followed to ensure the enforceability of this PkJ4,ed Lease; (c) it has sufficient appropriations or other funds availabte to pay all amounts due hereunder For the current fiscal year period; (d} no event has occurred and no condition exists which, upon the execution of this Lease or with notice or the passage of time or both, would constitute a default under any debt, revenue or purchase obligation which it has issued or to which it is a party (the "Obligation") nor has it been in default under any Obligation at any time during the past five (5) years, and (a) no lease, rental agreement or contract for purchase, to which Lessee has been a party, at any time during the past five (5) years, has been terminated by Lessee as a result of insufficient funds being appropriated in any fiscal period. REPRESENTATIONS, COVENANTS AND WARRANTIES REGARDING TAX-EXEMPT STATUS: Lessee warrants and covenants that (i) it is a state, or a political subdivision thereof, within the meaning of Section 103 of the Code, and the related regulations and rulings thereunder; (ii) subject to Section 8 hereof, Lessee intends that its obligation under this Lease will constitute an enforceable obligation issued by or on behalf of a state, or political subdivision thereof, such that the interest portions of Rental Payments as shown in Schedule C, will not be includable in the gross income of Lessor for the purposes of federal income taxation; (iii) this Lease represents a valid deferred payment obligation of Lessee for the amount herein set forth: (iv) Lessee has the Legal capacity to enter into this Lease and is not in contravention of any state, county, district, city or town statute, rule, regulation or other governmental provision; (v) during the Lease Term, the Equipment will not be used in a trade or business of any other person or entity; (vi) Lessee will complete and file on a timely basis, Internal Revenue Service form 8038G or 8038GC, as appropriate, in the manner set forth in Section 149(e) of tha Code; and (vii) Lessee will not take any action or permit the omission of any action reasonably within its control which action or omission will cause the interest portion of any Rental Payment hereunder to be Includable in gross income for federal income taxation purposes. Lessee hereby designates the Lease as a "qualified tax-exempt obligation" as defined in Section 265(b)(3XB) of the Code. The aggregate face amount of all tax-exempt obligations (including the Lease, but excluding private act€v'sty bonds other than qualified 501(c)(3) bonds) issued or to be issued by Lessee and all subordinate entities thereof during the calendar year in which the Start Date occurs is not reasonably expected to exceed $10,000,000. Lessee and all subordinate entities thereof will not issue in excess of $10,000,000 of tax-exempt obligations (including the Lease, but excluding private activity bonds other than qualified 501(cX3) bonds) during the calendar year in which the Start Date occurs, without first providing Lessor with an opinion of nationally recognized counsel in the area of tax-exempt municipal obligations acceptable to Lessor, that the designation of the Lease as a "qualified tax-exempt obligation" will not be adversely affected. Lessee further represents as follows: (a) The estimated total costs of the Equipment will not be less than the total principal amount of the Rental Payments. (b) The Equipment has been ordered or is expected to be ordered within six months of the effective date of this Lease, and the Equipment is expected to be delivered and installed, and the Vendor fully paid, within eighteen months of the effective date of this Lease. (C) Lessee has not created or established, and does not expect to create or establish, any sinking fund or other similar fund (i) that is reasonably expected to be used to pay the Rental Payments, or (ii) that may be used solely to prevent a default in the payment of Rental Payments. (d) The Equipment has not been, and is not expected to be, sold or otherwise disposed of by Lessee, either in whole or in major part, prior to the final Rental Payment. (e) To the best of Lessee's knowledge, information and belief, the above expectations are reasonable. APPROPRIATIONS AND ESSENTIAL_ USE: Lessee reasonably belleves that sufficient funds can be obtained to make all Rental Payments during the Lease Term. The responsible financial officer of Lessee will do all things lawfully within his or her power to obtain funds from which the Rental Payments, including any Rental Payments required by Section 4 hereof, may be made, including making provisions for such payments, to the extent necessary. In each proposed annual budget submitted for approval in accordance with applicable procedures of Lessee. Notwithstanding the foregoing, the decision whether or not to budget or appropriate funds or to extend this Lease for any subsequent annual fiscal period Is solely within the dlscretion of the then current governing body of Lessee. Lessee currently intends to make the Rental Payments for the full Lease Term if funds are legally available therefor, and in that regard Lessee represents that (a) the use of the Equipment is essential to its proper, efficient, and economic functioning or to the services that it provides to its citizens; (b) Lessee has an immediate need for and expects to make immediate use of substantially all the Equipment, which need is not temporary or expected to diminish in the foreseeable future; and (c) the Equipment will be used by the Lessee only for the purpose of performing one or more of its governmental or proprietary functions consistent with the permissible scope of its authority. 8. NONAPP ROP RIATI 0 N OF FUNDS: In the event insufficient funds are appropriated and budgeted to pay Rental Payments required by Section 4 hereof and any other amounts payable under this Lease, for any fiscal period in which the Rental Payments for the Equipment are due under this Lease, then, without penalty, liability or expense to Lessee, this Lease will thereafter terminate on the last day of the fiscal period for which appropriations were made, except as to (i) the portions of the Rental Payments herein agreed upon for which funds have been appropriated and budgeted or are otherwise available and (ii) Lessee's other obligations and liabilities under this Lease relating to, accruing or arising prior to such termination. Lessee will, not less than sixty (fill) days prior to the end of such applicable fiscal period, in writing, notify Lessor of such occurrence, but failure to give such notice will not prevent such termination or be an event of default. In the event of such termination, Lessee agrees to immediately cease use of the Equipment and peaceably surrender possession of the Equipment to Lessor on the day of such termination, packed for shipment in accordance with manufacturer's specifications and eligible for manufacturer's maintenance, and freight prepaid and insured to any reasonable location in the continental United States designated by Lessor, all at Lessee's expense. Lessor may exercise all available legal and equitable rights and remedies in retaking possession of the Equipment. If Lessee fails to cease use and deliver possession of the Equipment to Lessor upon termination of this Lease under this section, the termination shall nevertheless be effective but Lessee shall be responsible for the payment of damages in an amount equal to (a) the portion of Rental Payments thereafter coming due that is attributable to the number of days after the termination during which Lessee fails to cease use and deliver possession of the Equipment and (b) any other loss suffered by Lessor as a result of Lessee's failure to deliver possession of the Equipment. S. EXCLUSION OF WARRANTIES; LIMITATIONS OF LIABILITY; DISCLAIMER OF CONSEQUENTIAL DAMAGES: LESSEE HAS SELECTED BOTH THE EQUIPMENT AND THE VENDOR(S) FROM WHOM LESSOR IS TO PURCHASE THE EQUIPMENT IN RELIANCE HEREON. LESSEE ACKNOWLEDGES AND AGREES THAT THE EQUIPMENT IS OF A SIZE, DESIGN AND CAPACITY SELECTED BY LESSEE, THAT LESSOR IS NOT A MANUFACTURER, VENDOR, DISTRIBUTOR OR LICENSOR OF SUCH EQUIPMENT, AND THAT LESSOR LEASES THE EQUIPMENT AS IS AND HAS NOT MADE, AND DOES NOT HEREBY MAKE, ANY REPRESENTATION, WARRANTY OR COVENANT, EXPRESS OR IMPLIED, WITH RESPECT TO THE MERCHANTABILITY, CONDITION, QUALITY, DURABILITY, DESIGN, OPERATION, FITNESS FOR USE, OR SUITABILITY OF THE EQUIPMENT IN ANY RESPECT WHATSOEVER OR IN CONNECTION WITH OR FOR THE PURPOSES AND USES OF LESSEE, OR ANY OTHER REPRESENTATION, WARRANTY OR COVENANT OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT THERETO INCLUDING ANY WARRANTIES OF TITLE OR AGAINST INFRINGEMENT OR ANY WARRANTIES ARISING FROM A COURSE OF DEALING, USAGE OR PRACTICE, ALL OF WHICH ARE SPECIFICALLY DISCLAIMED BY LESSOR AND IN NO EVENT SHALL LESSOR BE OBLIGATED OR LIABLE FOR ACTUAL, INCIDENTAL, CONSEQUENTIAL OR OTHER DAMAGES OF OR TO LESSEE OR ANY OTHER PERSON OR ENTITY ARISING OUT OF OR IN CONNECTION WITH THE EQUIPMENT, INCLUDING BUT NOT LIMITED TO THE SALE, LEASE, USE, PERFORMANCE OR MAINTENANCE OF THE EQUIPMENT, INCLUDING INTERRUPTION OF SERVICE, LOSS OF DATA, LOSS OF REVENUE OR PROFIT, LOSS OF TIME OR BUSINESS, OR ANY SIMILAR LOSS, EVEN IF ANY SUCH PERSON IS ADVISED IN ADVANCE OF THE POSSIBILITY OR CERTAINTY OF SUCH DAMAGES AND EVEN IF LESSEE ASSERTS OR ESTABLISHES A FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY PROVIDED IN THIS LEASE. Lessee acknowledges that neither the original vendor nor licensor of the Equipment (including the salespersons of any of them) is an agent of Lessor, nor are they authorized to waive or alter any terms of this Lease. Lessee hereby waives any claim (including any claim based on strict or absolute liability in tort) it might have against Lessor or any assignee of the Lessor for any lass, damage or expense caused by or with respect to the Equipment. Lessor hereby assigns to Lessee during the Lease Term, to the extent permitted by law and so long as no Event of Default has occurred pursuant to Section 20 below, all manufacturer's warranties, if any, that it may have with respect to the Equipment, and Lessor authorizes Lessee to obtain the customary services furnished in connection with such warranties at Lessee's expense. Lessor authorizes Lessee, to the extent permitted bylaw, to enforce in its own name any warranty, representation or other claim enforceable against the manufacturer. Lessor assumes no responsibility for shipment, delivery, installation or maintenances, and all claims of Lessee with respect thereto, whether for delay, damage or otherwise, will be made against the manufacturer. Lessor, at its option, may provide in its purchase order that the manufacturer agrees that any of such claims may be made by Lessee directly against the manufacturer. The obligation of Lessee to pay the Rental Payments as defined in Section 4 will not be abated, impaired or reduced by reason of any claims of Lessee with respect to the Equipment, including but not limited to its condition, quality, workmanship, delivery, shipment, installation, defects or otherwise. 10. TITLE, SECURITY INTEREST: During the Lease Term, title to the Equipment is deemed to be in Lessor, subject to Lessee's interests in the equipment under this Lease. In the event of (i) termination of this Lease in accordance with Section 8 above or (ii) the occurrence of an Event of Default by Lessee pursuant to Section 20 below, title will immediately revert to Lessor free of any right, tide or interest of Lessee unless Lessor elects otherwise. In order to secure all of Lessee's obligations hereunder, Lessee hereby (a) to the extent permitted by law, grants to Lessor a first and prior security interest in any and all rights, titles and interest of Lessee in this Lease, the Equipment and in all additions, attachments, accessions, accessories, replacements and improvements thereto, now or hereafter acquired, together will all rents, issues, income, profits and proceeds thereof, including insurance proceeds; (b) agrees that financing statements evidencing Lessor's security interest may be filed; and (c) agrees to execute and deliver all certificates of title and other instruments necessary or appropriate to evidence and perfect such security interest. As further security therefor, Lessee grants to Lessor a first priority security interest in the cash and negotiable instrument from time to time comprising the escrow fund, if any, established under the Escrow Agreement and all proceeds (cash and non -cash) thereof, and agrees with respect thereto that Lessor shall have ail the rights and remedies of a secured party. In the event of prepayment under 16 or 22 or payment in full at the end of the Lease Term, title will pass to Lessee free and clear of any liens or other interest in favor of Lessor. 11. PERSONAL PROPERTY: Lessor and Lessee agree that the Equipment is, and wilt remain, personal property and will not be deemed to be affixed or attached to real property or any building thereon. Notwithstanding the foregoing, for purposes of providing notice to third parties, Lessee agrees that, upon Lessor's request, it will provide the legal description of all real property where any of the Equipment is or will be installed, and Lessee agrees that financing statements evidencing Lessor's security interest may be filed in the real property records. If requested by Lessor, Lessee will, at Lessee's expense, furnish to Lessor landlord or mortgagee waiver with respect to the Equipment. 12. USE; REPAIRS: Lessee will use the Equipment in a careful manner for the use contemplated by the manufacturer of the Equipment and will comply with all laws, ordinances, insurance policies and regulations relating to, and will pay all costs, claims, damages, fees and charges arising out of, its possession, use or maintenance. Lessee, at its sole costs and expense, will maintain the Equipment according to the manufacturer's recommended guidelines or the equivalent and meet any and all recertification requirements and will furnish proof of such maintenance, if requested by Lessor and will furnish all needed servicing and parts, which parts will become part of the Equipment. If the Equipment is such as is customarily covered by a maintenance agreement, Lessee will furnish Lessor with a maintenance agreement with a party satisfactory to Lessor. 11 ALTERATIONS. Lessee will not make any alterations, additions or improvements to the Equipment without Lessor's prior written consent, and any permitted alteration or attachment which cannot be readily removed without damaging the Equipment's originally intended function or value will become part of the Equipment. 14. LOCATION; INSPECTION: The Equipment will not be removed from, or if the Equipment consists of rolling stock, its permanent base will not be changed from the Equipment Location without Lessor's prior written consent, which consent will not be unreasonably withheld. Lessor will be entitled to enter upon the Equipment Location or elsewhere during reasonable business hours to inspect the Equipment or observe its use and operations. 15. LIENS AND TAXES: Lessee will keep the Equipment free and clear of atl levies, liens and encumbrances except those created under this Lease. Lessee will pay, when due, all charges and taxes (federal, state and local) which may now or hereafter be imposed upon the ownership, leasing, rental, sale, purchase, possession or use of the Equipment, excluding however, all taxes on or measured by Lessor's income. If Lessee falls to pay said charges and taxes when due, Lessor will have the right, but will not be obligated, to pay said charges and taxes. if Lessor pays any charges or taxes for which Lessee is responsible or liable under this Lease, Lessee will, upon demand, reimburse Lessor therefor. 16. RISK OF LOSS; DAMAGE; DESTRUCTION: Lessee assumes all risk of loss of or damage to the Equipment from any cause whatsoever, and no such loss of or damage to the Equipment will relieve Lessee of the obligation to make the Rental Payments or to perform any other obligation under this Lease. In the event of damage to any item of Equipment, Lessee will immediately place the same in goad repair (the proceeds of any insurance recovery will be applied to the cost of such repair). If Lessor determines that any item of Equipment is lost, stolen, destroyed or damaged beyond repair, Lessee, at the option of Lessor, will (a) replace the same with like equipment in good repair; or (b) on the next Rental Payment date pay to Lessor (i) all amounts owed by Lessee under this Lease, including the Rental Payment due on such date, and (ii) an amount not less than the balance of the Rental Payments then remaining unpaid hereunder. In the event that Lessee is obligated to make such payment with respect to less 3 than all of the Equipment. Lessor will provide Lessee with the pro rats amount of the Rental Payment and the balance of the Rental Payments then remaining unpaid hereunder, as applicable, to be made by Lessee with respect to the Equipment which has suffered the event of loss. 1?. INSURANCE. Lessee will, at its expense, maintain at all times during the Lease Term (a) fire and extended coverage, public liability and property damage insurance with respect to the Equipment in such amounts, covering such risks, and with such insurers as will be satisfactory to Lessor. In no event will the insurance limits be less than the greater of (i) an amount equal to the balance of the Rental Payments then remaining for the Lease Term or (ii) any minimum required by any co-insurance provisions of such insurance, (b) liability insurance that protects Lessor from liability in all events in form and amount satisfactory to Lessor, and (c) workers' compensation coverage as required by the laws of the state in which Lessee is located. Each insurance policy required by clause (b) of the preceding sentence will name Lessee as an insured and Lessor or its assigns as an additional insured and loss payee, as appropriate. The Lessee agrees to give Lessor at least thirty (30) days prior written notice of any cancellation of the insurance policies required by this Section. The proceeds of any such policies will be payable to Lessee and Lessor or its assigns, as their interest may appear. Upon acceptance of the Equipment and upon each insurance renewal date, Lessee will deliver to Lessor a certificate evidencing such insurance. In the event of any loss, damage, injury or accident involving the Equipment, Lessee will promptly provide Lessor with written notice hereof and make available to Lessor all information and documentation relating thereto. Notwithstanding the foregoing, with Lessor's prior written consent, Lessee may self -insure against any and all risks for which insurance is required. 18. ADVANCES: In the event Lessee fails to maintain the insurance required by this Lease or fails to keep the Equipment in good repair and operating condition, Lessor may (but will be under no obligation to) purchase the required policies of insurance and pay the premiums on the same and make such repairs or replacements as are necessary and pay the cast thereof. All amounts so advanced by Lessor will become additional rent payable by Lessee. Lessee agrees to pay such amounts with interest thereon from the date paid at the rate o€1.5% per month or the maximum permitted by law, whichever is less. Unless Lessee provides evidence of the insurance coverage required by this Lease, Lessor may purchase insurance at Lessee's expense to protect Lessor's interests hereunder. This Insurance may, but need not, protect Lessee's interests. The coverage that Lessor may purchase may not pay any claim that Lessee may make or any claim that may be made against Lessee in connection with the Equipment. Lessee may later cancel any insurance purchased by Lessor, but only after providing evidence that Lessee has obtained insurance as required by this Lease. If Lessor purchases insurance for the Equipment, Lessee will be responsible for the costs of that insurance, including the insurance premium, interest and any other charges Lessor may impose in connection with the placement of the insurance, until the effective date of the cancellation or expiration of the insurance. The costs of the insurance will be added as additional rent. The costs of the insurance may be more than the cost of insurance Lessee may be able to obtain on its own. 19. INDEMNIFICATION: To the extent permitted by law, and solely from legally available funds, Lessee agrees to indemnity Lessor against, and hold Lessor harmless from, any and all claims, actions, proceedings, expenses, damages, liabilities or losses (including, but not limited to, attorneys' fees and court costs) arising in connection with the Equipment, including, but not limited to, its selection, purchase, delivery, possession, use, operation or return and the recovery of claims under insurance policies thereon. 20. EVENTS of DEFAULT: The Term "Event of Default" as used in this Lease, means the occurrence of any one or more of the following events: (a) Lessee fails to make any Rental Payment (or any other payment) as it becomes due in accordance with the terms of this Lease, and any such failure continues for ten (10) days after the date thereof; (b) Lessee fails to perform or observe any other covenant, condition or agreement to be performed or observed by it hereunder and such failure is not cured within ten (10) business days after written notice thereof by Lessor; (c) the discovery by Lessor that any statement, representation or warranty made by Lessee in this Lease or in any document delivered by Lessee pursuant hereto or in connection herewith is false, misleading or erroneous in any material respect; (d) Lessee becomes insolvent, is unable to pay its debts as they become due, makes an assignment for the benefit of creditors, applies or consents to the appointment of a receiver, trustee, conservator or liquidator of Lessee or of all or substantial part of its assets, a petition for relief is filed by Lessee under Federal bankruptcy, insolvency or similar laws, or a petition in a proceeding under any bankruptcy, insolvency or similar laws, Is filed against Lessee and is not dismissed within thirty (30) days thereafter; (e) Lessee suffers an adverse material change in its financial condition or operations from the date hereof and, as a result, Lessor deems itself insecure; or (€) Lessee is in default under any other agreement executed at any time with Lessor or its affiliates, or under any other agreement or instrument by which it is bound. 21. REMEDIES: Upon the occurrence of an Event of default, Lessor shall have the right, at its sole option, to exercise any one or more of the following remedies: (a) by written notice to Lessee, declare an amount equal to all amounts then due under this Lease and all remaining Rental Payments which will become due during the then current fiscal year of Lessee to be immediately due and payable, whereupon the same will become immediately due and payable and such amounts shall thereafter bear interest at the rate of 1.5% per month or the maximum rate permitted by applicable law, whichever is less; (b) by written notice to Lessee, request Lessee to (and Lessee agrees that it will), at Lessee's expense, promptly cease use and return the Equipment to Lessor in the manner set forth in Section 8 hereof, or Lessor, at its option and with or without terminating the Lease Term, may enter upon the premises where the Equipment is located and take immediate possession of and remove the same, without liability to Lessor or its agents for such entry or for damage to property or otherwise; (c) sell or lease the Equipment or sublease it for the account of Lessee, holding Lessee liable for (i) all Rental Payments and other payments due to the effective date of such selling, leasing or subleasing, and (ii) for the difference between the net purchase price, rental and other amounts paid by the purchaser, lessee or sublessee pursuant to such sale, lease or sublease and the remaining amounts payable by the Lessee through the end of the then current fiscal year of Lessee hereunder; and (d) exercise any other right, remedy or privilege which may be available to it under applicable law, including the right to (i) proceed by appropriate court action to enforce the terms of this Lease, (ii) recover damages for the breach of this Lease, and (iii) rescind this Lease as to any or all of the Equipment. If Lessee Fails to cease use and deliver possession of the Equipment upon the occurrence of an Event of Default, Lessee shall be responsible for the payment of damages in an amount equal to (aj the portion of Rental Payments that is attributable to the number of days after the termination during which Lessee fails to cease use and deliver possession of the Equipment and (b) any other loss suffered by Lessor as a result of Lessee's failure to cease use and deliver possession of the Equipment. In addition, Lessee will remain liable for all covenants and indemnities under this Lease and For all legal fees and other costs and expenses, including court costs, incurred by Lessor with respect to the enforcement of any of the remedies listed above or any other remedy available to Lessor. 22. EARLY PURCHASE OPTION; PREPAYMENT: Lessee may, upon sixty (60) days prior written notice to Lessor, and provided Lessee has fully paid and performed all other obligations hereunder and provided no Event of Default has occurred and is continuing, pay to Lessor on any regularly scheduled Rental Payment date the applicable amount set forth on Schedule C attached hereto, whereupon title to the Equipment will pass to and become unconditionally vested in Lessee, and Lessor will transfer any and all of its right, title and interest in the Equipment to Lessee as is, where is, without warranty, express or implied, except that Lessor will warrant to Lessee thatthe Equipment is free and clear of any liens created by Lessor. Upon delivery by Lessee of a final acceptance certificate, any remaining monies in any escrow fund established under the Escrow Agreement shall be paid to Lessor, for credit, first, to the next Rental Payment due, and, second, to the prepayment of the principal portion of future Rental Payments hereunder in the manner directed by Lessor, in its sole discretion, unless Lessor directs that payment of such amount be made in such other manner directed by Lessor that, in the opinion of nationally recognized counsel in the area of tax-exempt municipal obligations satisfactory to Lessor, will not adversely affect the exclusion of the interest portions of Rental Payments from gross income for federal income tax purposes. If any amount is applied against the outstanding principal components of Rental Payments, Schedule C attached hereto will be revised accordingly. 23. DETERMINATION OF FAIR PURCHASE PRICE: Lessee and Lessor hereby agree and determine that the Rental Payments payable during the Lease Term represent the fair value of the use of the Equipment and that the amount required to exercise Lessee's option to purchase the Equipment pursuant to Section 22 represents the fair purchase price of the Equipment. Lessee hereby determines that the Rental Payments do not exceed a reasonable amount so as to place Lessee under a practical economic compulsion to renew this Lease or to exercise its option to purchase the Equipment. In making such determinations, Lessee and Lessor have given consideration to (a) the costs of the Equipment, (b) the uses and purposes For which the Equipment will be employed by Lessee, (c) the benefit to Lessee by reason of the acquisition and installation of the Equipment and the use of the Equipment pursuant to the terms and provisions of this Lease, and (d) Lessee's option to purchase the Equipment_ Lessee hereby determines and declares that this Lease will result in equipment of comparable quality and meeting the same requirements and standards as would be necessary if the acquisition and Installation of the Equipment were performed by Lessee other than pursuant to this Lease. Lessee hereby determines and declares that the Lease Term does not exceed the useful life of the Equipment. 24. ASSIGNMENT: Except as expressly provided herein, Lessee will not (a) assign, transfer, pledge, hypothecate or grant any security interest in, or otherwise dispose of, this Lease or the Equipment or any interest in this Lease or the Equipment or (by sublet or lend the Equipment or permit the Equipment to be used by anyone other than Lessee or Lessee's employees, unless Lessee obtains the prior written consent of Lessor and an opinion of nationally recognized counsel in the area of tax-exempt municipal obligations satisfactory to Lessor that such action will not adversely affect the exclusion of the interest portions of the Rental Payments from gross income for €ederal income tax purposes. Lessor, without the consent of Lessee, may assign all or any portion or portions of its right, title and interest in and to this Lease, the Equipment and any other documents executed with respect to this Lease, and/or grant or assign all or any portion or portions of its security interest in this Lease and the Equipment, in whole or in part to various assignees, their agents or trustees (each and any one hereinafter referred to as an 'Assignee'). Any such assignment to an Assignee may provide that the Lessor or the Assignee will act as a collection and paying agent for owners of certificates of participation in this Lease, or may provide that a third -party trustee or agent will act as collection and paying agent for any Assignee, provided that any such trustee or agent will maintain registration books as a register of all persons who are owners of certificates of participation or other interest in Rental Payments and Lessee receives written notification of the name and address of the trustee or agent and a copy of the pooling and fractionalization agency or trustee agreement, if any. Any such Assignee will have all of the assigned rights of Lessor under this Lease. Subject to the foregoing, this Lease will inure to the benefit of and will be binding upon the heirs, executors, administratorsr successors and assigns of the parties hereto. Any assignment or reassignment of any of Lessor's right, title or interest in this Lease or the Equipment will be effective upon receipt by Lessee of a duplicate original of the counterpart document by which the assignment or reassignment is made, disclosing the name and address of each such Assignee and, where applicable, to whom further payments hereunder should be made. During the Lease Term, Lessee covenants that it will keep a complete and accurate record of all assignments in form necessary to comply with Section 149(a) of the Code and the regulations, proposed or existing, from time to time promulgated thereunder. Lessee agrees to acknowledge in writing any assignments if so required. Lessee agrees that, upon notice of assignment, if so instructed it will pay directly to the Assignee, or its trustee or agent without abatement, deduction or setoff all amounts which become due hereunder. Lessee further agrees that it will not assert against any Assignee, or its trustee or agent, any defense, claim, counterclaim or setoff Lessee may have against Lessor. 25. FINANCIAL STATEMENTS: Each year during the term of this Lease, Lessee hereby agrees to deliver to Lessor a copy of: (i) annual audited financial statements within one hundred eighty (180) days of Lessee's fiscal year-end; and (4) within a reasonable period of time, any other financial inform atian Lessor requests from time to time. 26. NATURE OF AGREEMENT: Lessor and Lessee agree that upon the due and punctual payment and performance of the installments of Rental Payments and other amounts and obligations under this Lease, title to the Equipment will vest permanently in Lessee as provided in this Lease, free and clear of any interest, lien or security of Lessor therein. 27. AMENDMENTS: This Lease may be amended or any of its terms modified in any manner by written agreement of Lessee and Lessor. Any waiver of any provision of this Lease or of any right or remedy hereunder must be affirmatively and expressly made in writing and will not be implied from inaction, course of dealing or otherwise. 2& NOTICES: All notices to be given under this Lease must be made in writing and mailed by certified mail to the other party at its address set forth herein or at such address as the party may provide in writing from time to time. Any such notice is effective upon receipt. 29. SECTION HEADINGS: All section headings contained herein are for time convenience of reference only and are not intended to define or limit the scope of any provision of this Lease. 30. GOVERNING LAW: This Lease will be governed by the provisions hereof and by the laws of the State where Lessee is located. 31. FURTHER ASSURANCES: Lessee will deliver to Lessor (i) an opinion of counsel in substantially the form of Schedule D attached hereto or as Lessor may otherwise request; and (ii) if applicable, a certificate of a duly authorized official as to designation as a qualified tax-exempt obligation. Moreover, Lessee will execute or provide, as requested by Lessor, any documents and information that are reasonably necessary with respect to the transaction contemplated by this Lease. 32. ENTIRE AGREEMENT: This Lease, together with the Schedules attached hereto and made a part hereof and other attachments hereto and other documents or instruments executed by Lessee and Lessor in connection herewith, constitute the entire agreement between the parties with respect to the lease of the Equipment, and this Lease will not be modified, amended, altered or changed except with the written consent of Lessee or Lessor. 33. SEVERABILITY: Any provision of this Lease Found to be prohibited by law will be ineffective to the extent of such prohibition without invalidating the remainder of this Lease. 34. WAIVER: The waiver by Lessor of any breach by Lessee of any term, covenant or condition, hereof will not operate as a waiver of any subsequent breach hereof, 35. ELECTRONIC TRANSACTIONS. The parties agree that the transaction described herein may be conducted and related documents may be stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. 36. ROLE OF LESSOR: Lessor has not acted and will not act as a fiduciary for Lessee or as Lessee's agent or municipal advisor. Lessor has not and will not provide financial, legal, tax, accounting or other advice to Lessee or to any financial advisor or placement agent engaged by Lessee with respect to this Lease. Lessee, its financial advisor, placement agent or municipal advisor, if any, shall each seek and obtain its own Financial, legal, tax, accounting and other advice with respect to this Lease from its own advisors (including as it relates to structure, timing, terms and similar matters). ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT ENFORCEABLE. TO PROTECT YOU {LESSEE(S) AND US (LESSOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT. BY SIGNING BELOW, YOU AND WE AGREE THAT THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN US. Lessor: Cron Holdings, LLC Authorized Signature: Printed Name: Title: Date: Lessee: City of Hutchinson, Minnesota Authorized Signature: Printed Name: Matthew Jaunich Title: City Administrator Date: EIN:41-6005253 SCHEDULE A TO STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT Lease No. 5000267-001 Location of -Equipment Street: 1500 Adams St SE City: Hutchinson State: M N Zip Code:55350 Description of Equipment Equipment Cost 2017 Komptech Toptum X55 473,775.00 [SN to be provided] Total 73 775.00 Lessee hereby certifies that the description of the property set forth above constitutes a complete and accurate description of all Equipment as subject to in the Lease. Lessee: City of Hutchinson. Minnesota Authorized Signature: Printed Name: Matthew Jaunich Title: City Administrator Date: 7 SCHEDULE B TO STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT Lease No. 5000267-001 DELIVERY AND ACCEPTANCE CERTIFICATE See Exhibits B and C to the Escrow Agreement. SCHEDULE C PAYMENT SCHEDULE Lessee: City of Hutchinson, Minnesota Lessor: Clayton Holdings, LLC Lease Number: 5000267-001 Capital Cost of Equipment (Principal Portion of Rental Payments): $473,775.00 Nominal Interest Rate: 2.99% Start Date: April 29, 2019 Subject to Section 8 of the Lease, Rental Payments are due on the dates and in the amounts shown below: Rental Payment Amount Credited Amount Credited Outstanding Principal Payment Date Amount to Interest to Capital Cast Balance 4129/2019 $73,808.37 $0.00 $73,808.37 $399,966.63 4/29/2020 $73,808.37 $11,959.00 $61,849.37 $338,117.26 4/29/2021 $73,808.37 $10,109.71 $63,698.66 $274,418.60 4/29/2022 $73,808.37 $8,205,12 $65,603.25 $208,815.35 4/29/2023 $73,808.37 $6,243.58 $67,564.79 $141,250.56 4/29/2024 $73,808.37 $4,223.39 $69,584.98 $71,665.58 4/29/2025 $73,808.37 $2,142.79 $71,665.58 $0.00 TOTALS: $616,658.69 $42,883.59 $473,775.00 In the event Lessee desires to prepay this Lease, it may do so in whole, but not in part, at a purchase price equal to (a) the then current outstanding principal balance shown above; plus (b) a prepayment premium calculated as a percentage of the then current outstanding principal balance, in the following amount: 3%,with respect to any prepayment during the first full year of the Lease Term; 2%, with respect to any prepayment during the second full year of the Lease Term; and 1%, with respect to any prepayment during the third full year of the Lease Term and thereafter; plus (c) unpaid interest accrued on the outstanding principal balance to the prepayment date; and plus (d) all other amounts then payable under this Lease. There is no prepayment penalty if Lessee is using funds other than proceeds of a grant or an actual or anticipated refinancing. Lessee: City of Hutchinson. Minnesota Authorized Signature: Printed Name: Matthew Jaunich Title: City Administrator Date: 0 City of Hutchinson, Minnesota Clayton Holdings, LLC St. Louis, Missouri Re: State & Municipal Lease/Purchase Agreement (Lease No. 5000267-001) dated April 23, 2019, between the City of Hutchinson, Minnesota, as lessee (the "Lessee"), and Clayton Holdings, LLC, as lessor (the "Lessor") ("Lease") Ladies and Gentlemen: We have acted as counsel to the Lessee with respect to the above described Lease. In that capacity, we have reviewed copies of the Lease, the schedules and exhibits attached thereto, an Escrow Agreement (the "Escrow Agreement") and minutes of the city council of Lessee dated April 23, 2019, relating to the Lease. Under the Lease, the equipment described therein (the "Equipment") is being leased and/or sold to Lessee, and Lessee has undertaken to pay rental payments (the "Rental Payments") with respect thereto. The Rental Payments are payable exclusively from moneys to be legally appropriated and provided therefor by Lessee. In the sole event that moneys are not so appropriated for any future fiscal year, Lessee will have the right to terminate the Lease at the end of its then current fiscal year. If Lessee discontinues the Lease at the end of any such fiscal year in the manner provided therein, the Lease is terminated without penalty or liability on the part of Lessee to pay any Rental Payments coming due after the fiscal year then in effect, but in such event Lessee has the obligation to surrender the Equipment and deliver possession thereof to Lessor, as described in the Lease. In the event Lessee does not discontinue the Lease and pays all Rental Payments due in accordance therewith, the rights of Lessor in the Equipment are terminated. From our examination of these and such other documents as we deem relevant, assuming the genuineness of the signatures thereon and the accuracy of the facts stated therein without undertaking to verify the same by independent investigation, and based upon existing law, it is our opinion that: 1. Lessee is a political subdivision of the State of Minnesota (the "State"), duly organized, existing and operating under the Constitution and laws of the State. 2. Lessee is authorized and has power under State law to enter into the Lease and the Escrow Agreement and to carry out its obligations thereunder and the transactions contemplated thereby. 3. The Lease and the Escrow Agreement have been duly authorized, approved, executed and delivered by and on behalf of Lessee, and each is a legal, valid and binding contract of Lessee enforceable against Lessee in accordance with its terms. 4. The full faith and credit and ability of Lessee to levy ad valorem taxes without limitation as to rate or amount are not pledged to the payment of the Lease or any obligation of Lessee thereunder. The opinions set forth above are subject to the following qualifications and exceptions: City of Hutchinson, Minnesota Clayton Holdings, LLC Page 2 1. Our opinions are subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or other similar law of general application affecting creditors' rights. 2. Our opinions are subject to the effect of general principles of equity, including (without limitation) concepts of materiality, reasonableness, good faith and fair dealing, and other similar doctrines affecting the enforceability of agreements generally (regardless of whether considered in a proceeding in equity or at law). 3. Our opinions are subject to possible judicial action giving effect to governmental actions or foreign laws affecting creditors' rights. 4. Our opinions expressed above are limited to and assume the application of the laws of the State of Minnesota and the federal laws of the United States of America. We express no opinion with respect to federal tax law or compliance with state or federal securities laws and regulations applicable to disposition of rights under the Lease to any investor, including, without limitation, any opinion as to the accuracy, completeness or sufficiency of any offering materials relating to Lessee or the Lease. Any assignee of the entirety of the interest of Lessor under the Lease is entitled to rely on this opinion to the same extent as if the opinion were addressed to it. Dated this _ day of , 2019. Very truly yours, SCHEDULE E-1 TO STATE & MUNICIPAL LEASEIPURCHASE AGREEMENT Lease No. 5000267-001 WHEREAS, City of Hutchinson, Minnesota (the "Lessee") is a political subdivision duly organized under the constitution and laws of the State where lessee is located; WHEREAS, it is necessary and desirable and in the best interest of the Lessee, as lessee, to enter into a State & Municipal Lease/Purchase Agreement (the "Lease") with Clayton Holdings, LLC, as lessor (the "Lessor"), for the purposes described therein, including the leasing of the Equipment; and WHEREAS, the Lessee has, in accordance with the requirements of law, fully budgeted and appropriated sufficient funds for the current fiscal year to make the Rental Payments scheduled to come due during the current fiscal year and to meet its other obligations, and such funds have not been expended for other purposes NOW, THEREFORE, BE IT RESOLVED, BY THE GOVERNING BODY OF CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: Section 1. The Lease and the Escrow Agreement, in substantially the same form as presented to this meeting, and the terms and performance thereof are hereby approved, and the City Administrator of the Lessee is hereby authorized to execute and deliver the Lease and the Escrow Agreement, on behalf of the Lessee, with such changes therein as shall be approved by such officer, such approval to be conclusively evidenced by such officer's execution thereof. Section 2. The Lessee shall, and the officers, agents and employees of the Lessee are hereby authorized and directed to take such further action and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Resolution, and to carry out, comply with and perform the duties of the Lessee with respect to the Lease and the Escrow Agreement. Section 3. Lessee hereby designates the Lease as a "qualified tax-exempt obligation" as defined in Section 2$5(b)(3)(B) of the Internal Revenue Code. The aggregate face amount of all tax-exempt obligations (including the Lease, but excluding private activity bonds other than qualified 501(cX3) bonds) issued or to be issued by Lessee and all subordinate entities thereof during the current calendar year is not reasonably expected to exceed $10,000,000. Lessee and all subordinate entities thereof will not issue in excess of $10,000,000 of tax-exempt obligations (including the Lease, but excluding private activity bonds other than qualified 501(c)(3) bonds] during the current calendar year without first providing Lessor with an opinion of nationally recognized counsel in the area of tax-exempt municipal obligations acceptable to Lessor, that the designation of the Lease as a "qualified tax-exempt obligation" will not be adversely affected. Section 4. Moneys sufficient to pay all Rental Payments required to be paid under the Lease during Lessee's current fiscal year are hereby appropriated to such payment, and such moneys will be applied in payment of all Rental Payments due and payable during the current fiscal year. Section 5. This Resolution shall take effect and be in full force immediately after its adoption by the governing body of the Lessee. PASSED AND ADOPTED by the governing body of City of Hutchinson, Minnesota this ` day of 20 ATTEST: By: Printed Name: Title: City of Hutchinson, Minnesota By: Printed Name: Matthew Jaunich Title: City Administrator 12 SCHEDULE E-2 TO STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT Lease No. 5000267-001 INCUMBENCY AND AUTHORIZATION CERTIFICATE The undersigned, a duly elected or appointed and acting ("Lessee") certifies as follows: of City of Hutchinson, Minnesota A. Authorized Signers. The following listed persons are duly elected or appointed and acting officials of Lessee (the "Officials") in the capacity set forth opposite their respective names below, and the signature of each such Official appearing below is the true and genuine signature of that Official. By order of Lessee's governing body, the Officials identified below have been duly authorized, on behalf of Lessee, to negotiate, execute and deliver the Equipment Lease/Purchase Agreement dated as of April 23, 2019, by and between Lessee and Clayton Holdings, LLC ("Lessor"), the Escrow Agreement dated as of April 23, 2019 among Lessor, Lessee and The Commerce Trust Company, as Escrow Agent (the 'Escrow Agreement"), and all documents related thereto and delivered in connection therewith (collectively, the "Agreements"). Name of Official Title Signature Matthew Jaunich City Administrator Andy Reid Finance Director B. Call -Back Verification. Lessor may, but is not required, to call back any one of the below -named employees or officials of Lessee prior to approving the disbursement of any funds from the Acquisition Fund established under the Escrow Agreement to verify the request for disbursement, including but not limited to amount, payee, address, ABA and account numbers of the payee or Lessee. Dated: Name Title Phone Number Matthew Jaunich City Administrator Andy Reid Finance Director _F By: _ Name: Title: (The signer of this Certificate cannot be listed under Paragraph A above as authorized to execute the Agreements.) 13 SCHEDULE F STATE & MUNICIPAL LEASEIPURCHASE AGREEMENT Lease No. 5000267-001 ESSENTIAL USE/SOURCE OF FUNDS LETTER Twenty -Third day of April, 2019 Clayton Holdings, LLC 8000 Forsyth Boulevard, Suite 510 St. Louis, Missouri 63105 Re: State and Municipal Lease/Purchase Agreement No. 5000267-001, dated the Twenty -Third day of April, 2019 (the "Lease"), between Clayton Holdings, LLC ("Lessor") and City of Hutchinson, Minnesota ("Lessee") Ladies and Gentlemen: This confirms and affirms that the Equipment described in the Lease is essential to the function of the undersigned or to the service we provide to our citizens. Further, we have an immediate need for, and expect to make immediate use of, substantially all such Equipment, which need is not temporary or expected to diminish in the foreseeable future. Such Equipment will be used by us only for the purpose of performing one or more of our governmental or proprietary functions consistent with the permissible scope of our authority. Specifically, such Equipment was selected by us to be used as follows: The estimated useful life of such Equipment based upon manufacturer's representations and our projected needs is not less than the maximum Lease Term. Our source of funds for payments of the Rental Payments due under the Lease for the current fiscal year is We currently expect and anticipate adequate funds to be available for all future payments of rent due after the current fiscal year for the following reasons: Very truly yours, Lessee: City of Hutchinson Minnesota Authorized Signature: Printed Name: Matthew Jaunich Title:.City Administrator Date: 14 SCHEDULE G PROOF OF INSURANCE Insurance Agent Name: Agency Name: Address: Phone Number: E-Mail: Ladies and Gentlemen: Please add CLAYTON HOLDINGS, LLC as Both co -loss payee and additional insured under the property insurance covering the Equipment listed on attached Schedule A, and as additional insured under the general liability insurance policy. The minimum liability coverage is $1,000,000.00. Please mail or fax an insurance certificate to: Clayton Holdings, LLC P.O. Box 11309 St. Louis, Ma 63105 Fax # 314-746-3744 Upon acceptance of the Equipment and upon each insurance renewal date, Lessee will deliver to Lessor a certificate evidencing such insurance, Please note that the Bank requires 30 day written notice of cancellation of the policy covering leased equipment. Lessee: City of Hutchinson Minnesota Authorized Signature: Printed Name: Matthew Jaunich Title: fitAdministrator Date: 15 vvtl�� Commerce Bank SCHEDULE H ACH Payment Authorization Form Lease No. 1 Loan No: 5000267-001 Lessee 1 Borrower: City of Hutchinson, Minnesota I authorize Commerce Bank ("Commerce") to initiate debit entries and to initiate, if necessary, credit entries and adjustments for any debit entries in error on behalf of CBI Equipment Finance, Clayton Holdings or Commerce Bank as lender or lessor in the amount shown, and from the checking or savings account with the depositary institution ("Bank") named below, on the payment due date. Bank Name. Address: ABA Routing No.: Account No.: (X) Checking ( ) Savings This is a (X) New or ( ) Updated authorization form. Annual Debit Amount(s): In Accordance with Schedule C Begin Auto Debit with Invoice Date Due: In Accordance with Schedule C The final or balloon payment, if different from the Annual payment, will not be auto debited. I understand that this authorization will remain in full force and effect until I notify COMMERCE BANK at the address or phone number below that I wish to revoke this authorization. I understand that COMMERCE BANK requires at least 5 days prior notice in order to process any such cancellation. X X Borrower 1 Lessee Signature Date Note that there is NO charge for this service. Also, your "Bank" need not be Commerce Bank to benefit from this feature. Any bank account can be auto debited. To commence service please return this form with your document package or send this signed form and a voided check (unless COMMERCE BANK is already currently debiting this same account for another lease schedule) to: COMMERCE BANK F.O. Box 11309 Clayton, MO 63105 or LeasingACH@Commercebank.com To discontinue or amend service, please email the request to the address above or call COMMERCE BANK at 314.746.3726. 16 ESCROW AGREEMENT This Escrow Agreement (the "Escrow Agreement"), dated as of the Twenty -Third day of April, 2019 and entered into among Clayton Holdings, LLC, a Missouri Limited Liability Company (together with its successors and assigns, "Lessor"), City of Hutchinson, Minnesota a municipal corporation and political subdivision existing under the laws of Minnesota ("Lessee"), and The Commerce Trust Company, a Missouri banking corporation, as escrow agent (together with its successors and assigns, the "Escrow Agent"). Name of Acquisition Fund: "Hutchinson MN CH Sch. O01" Amount of Deposit into the Acquisition Fund: $473,775.00 TERMS AND CONDITIONS 1. This Escrow Agreement relates to and is hereby made a part of the State and Municipal LeaselPurchase Agreement dated as of the Twenty -Third day of April, 2019, (the "Lease"), between Lessor and Lessee. 2. Except as otherwise defined herein, all terms defined in the Lease shall have the same meaning for the purposes of this Escrow Agreement as in the Lease. 3. Lessor, Lessee and the Escrow Agent agree that the Escrow Agent will act as sole Escrow Agent under the Lease and this Escrow Agreement, in accordance with the terms and conditions set forth in this Escrow Agreement. The Escrow Agent shall not be deemed to be a party to the Lease, and this Escrow Agreement shall be deemed to constitute the entire agreement between Lessor and Lessee and the Escrow Agent. 4. There is hereby established in the custody of the Escrow Agent a special trust fund designated as set forth above (the "Acquisition Fund") to be held and administered by the Escrow Agent in trust for the benefit of Lessor and Lessee in accordance with this Escrow Agreement. 5. Lessor shall deposit in the Acquisition Fund the amount specified above. Moneys held by the Escrow Agent hereunder shall be invested and reinvested by the Escrow Agent upon written order of an authorized Lessee representative, in accordance with the Arbitrage Instructions attached as Exhibit A, in Qualified Investments (as defined below) maturing or subject to redemption at the option of the holder thereof prior to the date on which it is expected that such funds will be needed. If an Authorized Lessee Representative fails to timely direct the investment of any moneys held hereunder, the Escrow Agent shall invest and reinvest such moneys in Qualified Investments described in 5(vi) below. Such investments shall be held by the Escrow Agent in the Acquisition Fund; any interest and gain earned on such investments shall be deposited in the Acquisition Fund, and any losses on such investments shall be charged to the Acquisition Fund. The Escrow Agent may act as purchaser or agent in the making or disposing of any investment. Qualified Investments described in E(vi) below will be subject to an annualized sweep fee charged monthly to the earnings on monies invested. 6. "Qualified Investments" means, to the extent the same are at the time legal for investment of the funds of Lessee being invested: (1) direct general obligations of the United States of America; (ii) obligations the timely payment of principal of and interest on which is fully and unconditionally guaranteed by the United States of America; (iii) general obligations of the agencies and instrumentalities of the United States of America acceptable to Lessor; (iv) certificates of deposit, time deposits or demand deposits with any bank or savings institution including the Escrow Agent or any affiliate thereof, provided that such certificates of deposit, time deposits or demand deposits, if not insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, are fully secured by obligations described in (i), (ii) or (iii) above; or (v) repurchase agreements with any state or national bank or trust company, including time Escrow 17 Agent or any affiliate thereof, that are secured by obligations of the type described in (1), (ii) or (iii) above, provided that such collateral is free and clear of claims of third parties and that the Escrow Agent or a third party acting solely as agent for the Escrow Agent has possession of such collateral and a perfected first security interest in such collateral; or (vi) money market mutual funds that are invested in securities described in (i), (ii) or (iii) and that are rated "Aaa" by Moody's Investors Service or "AAAm-G" by Standard & Poor's Ratings Services or the comparable rating by Fitch 1BCA, Inc. 7. Moneys in the Acquisition Fund shall be used to pay for the cost of acquisition of the Equipment listed in the Lease. Such payment shall be made from the Acquisition Fund upon presentation to the Escrow Agent of one or more properly executed Payment Request and Acceptance Certificates, a form of which is attached as Exhibit B, executed by Lessee and approved by Lessor, together with an invoice for the cost of the acquisition of said Equipment and a written approval by Lessor of the Vendor be paid. In making any disbursement pursuant to this Section 7, the Escrow Agent may conclusively rely as to the completeness and accuracy of all statements in such Payment Request and Acceptance Certificate, and the Escrow Agent shall not be required to make any inquiry, inspection or investigation in connection therewith, The approval of each Payment Request and Acceptance Certificate by the Lessor shall constitute unto the Escrow Agent an irrevocable determination by the Lessor that all conditions precedent to the payment of the amounts set forth therein have been completed. 8. The Acquisition Fund shall terminate upon the occurrence of the earlier of (a) the presentation of a proper Payment Request and Acceptance Certificate and the Final Acceptance Certificate, a form of which is attached as Exhibit C, properly executed by Lessee, (b) 12 months from the date hereof (or such later date as may be agreed to in writing by Lessor and Lessee with notice in writing to Escrow Agent), or (c) the presentation of written notification by the Lessor that the Lease has been terminated pursuant to Section 8 or 20 of the Lease. Upon termination as described in clause (a) or (b) of this paragraph, any amount remaining in the Acquisition Fund shall be paid to Lessor for application as provided in the Lease. Upon termination as described in clause (c) of this paragraph, any amount remaining in the Acquisition Fund shall immediately be paid to Lessor. 9. The Escrow Agent may at any time resign by giving at least 30 days written notice to Lessee and Lessor, but such resignation shall not take effect until the appointment of a successor Escrow Agent. The substitution of another bank or trust company to act as Escrow Agent under this Escrow Agreement may occur by written agreement of Lessor and Lessee. In addition, the Escrow Agent may be removed at any time, with or without cause, by an instrument in writing executed by Lessor and Lessee. In the event of any resignation or removal of the Escrow Agent, a successor Escrow Agent shall be appointed by an instrument in writing executed by Lessor and Lessee. Such successor Escrow Agent shall indicate its acceptance of such appointment by an instrument in writing delivered to Lessor, Lessee and the predecessor Escrow Agent. Thereupon such successor Escrow Agent shall, without any further act or deed, be fully vested with all the trusts, powers, rights, duties and obligations of the Escrow Agent under this Escrow Agreement and the predecessor Escrow Agent shall deliver all moneys and securities held by it under this Escrow Agreement to such successor Escrow Agent whereupon the duties and obligations of the predecessor Escrow Agent shall cease and terminate. If a successor Escrow Agent has not been so appointed with 90 days of such resignation or removal, the Escrow Agent may petition a court of competent jurisdiction to have a successor Escrow Agent appointed. 10. Any corporation or association into which the Escrow Agent may be merged or converted or with or into which it may be consolidated, or to which it may sell or transfer its corporate trust business and assets as a whole or substantially as a whole, or any corporation or association resulting from any merger, conversion, sale, consolidation or transfer to which it is a party, shall be and become successor Escrow Agent hereunder and shall be vested with all the trusts, powers, rights, obligations, duties, remedies, immunities and privileges hereunder as was its predecessor, without the execution or filing of any instrument or any further act on the part of any of the parties hereto. 11. The Escrow Agent incurs no responsibility to make any disbursements pursuant to the Escrow Agreement except from funds held in the Acquisition Fund. The Escrow Agent makes no representations or warranties as to the title to any Equipment listed in the Lease or as to the performance of any obligations of Lessor or Lessee. 18 12. The Escrow Agent may act in reliance upon any writing or instrument or signature which it, in good faith, believes to be genuine, may assume the validity and accuracy of any statement or assertion contained in such a writing or instrument, and may assume that any person purporting to give any writing, notice, advice or instructions in connection with the provisions hereof has been duly authorized to do so. The Escrow Agent shall not be liable in any manner for the sufficiency or correctness as to form, manner and execution, or validity of this Escrow Agreement other than its own execution thereof or any instrument deposited with it, nor as to the identity, authority or right of any person executing the same; and its duties hereunder shall be limited to those specifically provided herein. 13. Unless the Escrow Agent is guilty of negligence or willful misconduct with regard to its duties hereunder, Lessee, to the extent permitted by law, and Lessor jointly and severally hereby agree to indemnify the Escrow Agent and hold it harmless from any and all claims, liabilities, losses, actions, suits or proceedings at law or in equity, or any other expense, fees or charges of any character or nature, which it may incur or with which it may be threatened by reason of its acting as Escrow Agent under this Escrow Agreement; and in connection therewith, to indemnify the Escrow Agent against any and all expenses, including reasonable attorneys' fees and the cost of defending any action, suit or proceeding or resisting any claim. 14. The aggregate amount of the costs, fees, and expenses of the Escrow Agent in connection with the creation of the escrow described in and created by this Escrow Agreement and in carrying out any of the duties, terms or provisions of this Escrow Agreement is a one time fee in the amount of $250.00 to be paid by Lessee concurrently with the execution and delivery of this Escrow Agreement. Notwithstanding the preceding paragraph, the Escrow Agent shall be entitled to reimbursement from Lessor of reasonable out-of-pocket, legal or extraordinary expenses incurred in carrying out the duties, terms or provisions of this Escrow Agreement. Claims for such reimbursement may be made to Lessor and in no event shall such reimbursement be made from funds held by the Escrow Agent pursuant to this Escrow Agreement. The Escrow Agent agrees that it will not assert any lien whatsoever on any of the money or Qualified Investments on deposit in the Escrow Fund for the payment of fees and expenses for services rendered by the Escrow Agent under this Escrow Agreement or otherwise. 15. If Lessee, Lessor or the Escrow Agent shall be in disagreement about the interpretation of the Lease or this Escrow Agreement, or about the rights and obligations, or the propriety of any action contemplated by the Escrow Agent hereunder, the Escrow Agent may, but shall not be required to, file an appropriate civil action to resolve the disagreement. The Escrow Agent shall be indemnified by Lessor and Lessee, to the extent permitted by law, for all costs, including reasonable attomeys' fees and expenses, in connection with such civil action, and shall be fully protected in suspending all or part of its activities under this Escrow Agreement until a final judgment in such action is received. 16. The Escrow Agent may consult with counsel of its own choice and shall have full and complete authorization and protection for any action or non -action taken by the Escrow Agent in accordance with the opinion of such counsel. The Escrow Agent shall otherwise not be liable for any mistakes of facts or errors of judgment, or for any acts or omissions of any kind unless caused by its negligence or willful misconduct. 17. This Escrow Agreement shall be governed by and construed in accordance with the laws of the state in which the Escrow Agent is located. 18. In the event any provision of this Escrow Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 19. This Escrow Agreement may not be amended except by a written instrument executed by Lessor, Lessee and the Escrow Agent. original. 20. This Escrow Agreement may be executed in several counterparts, each of which so executed shall be an 19 IN WITNESS WHEREOF, Lessor, Lessee and the Escrow Agent have caused this Escrow Agreement to be executed by their duly authorized representatives. Clayton Holdings, LLC LESSOR By: Title: City of Hutchinson, Minnesota LESSEE By: Printed Name: Matthew Jaunich Title: City Administrator The Commerce Trust Company ESCROW AGENT By: Title: 20 EXHIBIT A ARBITRAGE INSTRUCTIONS These Arbitrage Instructions provide procedures for complying with § 148 of the Internal Revenue Code of 1986, as amended (the "Code'), in order to preserve the exclusion from federal gross income of the interest portions of the Rental Payments under the Lease. 1. Temporary PeriodlYield Restriction. Except as described in this paragraph, money in the Acquisition Fund must not be invested at a yield greater than the yield on the Lease. Proceeds of the Lease in the Acquisition Fund and investment earnings on such proceeds may be invested without yield restriction for three years after the Start Date of the Lease. If any unspent proceeds remain in the Acquisition Fund after three years, such amounts may continue to be invested without yield restriction so long as Lessee pays to the IRS all yield reduction payments under § 1.148-5(c) of the Treasury Regulations. 2. Opinion of Bond Counsel. These Arbitrage Instructions may be modified or amended in whole or in part upon receipt of an opinion of nationally recognized counsel in the area of tax-exempt municipal obligations, satisfactory to Lessor, that such modifications and amendments will not adversely affect the exclusion of the interest portions of Rental Payments from gross income for federal income tax purposes. 21 EXHIBIT B FORM OF PAYMENT REQUEST AND ACCEPTANCE CERTIFICATE To: The Commerce Trust Company, as Escrow Agent: and Clayton Holdings, LLC, as Lessor 8000 Forsyth Blvd., Suite 510 St. Louis, Missouri 63105 Re: Hutchinson MN CH Sch. 001 Acquisition Fund established by the Escrow Agreement, dated April 23, 2019 (the "Escrow Agreement') among Clayton Holdings, LLC, as lessor ("Lessor"), City of Hutchinson, Minnesota ("Lessee") and The Commerce Trust Company, as Escrow Agent (the "Escrow Agent') Ladies and Gentlemen: The Escrow Agent is hereby requested to pay from the Acquisition Fund to the person or corporation designated below as Payee, the sum set forth below in payment of a portion or all of the cost of the acquisition of the equipment or the interest portions of Rental Payment(s) described below. The amount shown below is due and payable under the invoice of the Payee attached hereto with respect to the cost of the acquisition of the equipment or payment of the interest portions of Rental Payment(s) and has not formed the basis of any prior request for payment. The equipment described below is part or all of the "Equipment' that is listed in State and Municipal Lease/Purchase Agreement dated as of the Twenty -Third day of April, 2019 (the "Lease") described in the Escrow Agreement. Equipment: Payee Amount: $ Lessee hereby certifies and represents to and agrees with Lessor and the Escrow Agent as follows: 1. All of the above -listed Equipment has been delivered to and received by the undersigned; all installation or other work necessary prior to the use thereof has been completed; said Equipment has been examined and/or tested and is in good operating order and condition and is in all respects satisfactory to the undersigned and as represented, and said Equipment has been accepted by the undersigned and complies with all terms of the Lease. Consequently, you are hereby authorized to pay for the Equipment in accordance with the terms of any purchase orders for the same. 2. In the future, in the event the Equipment fails to perform as expected or represented we will continue to honor the Lease in all respects and continue to make our rental and other payments thereunder in the normal course of business and we will look solely to the vendor, distributor or manufacturer for recourse. 3. We acknowledge that Lessor is neither the vendor nor manufacturer or distributor of the Equipment and has no control, knowledge or familiarity with the condition, capacity, functioning or other characteristics of the Equipment. 4. No event or condition that constitutes, or with notice or lapse of time, or both, would constitute, an Event of Default (as defined in the Lease) exists at the date hereof. 5. Lessee is currently maintaining the insurance coverage required by Section 17 of the Lease 6. The serial number for each item of Equipment which is set forth on Schedule A to the Lease is correct. 22 APPROVED: Dated: 20 Clayton Holdings, LLC LESSOR By: Title City of Hutchinson, Minnesota LESSEE By: Printed Name: Title: 23 EXHIBIT C FINAL ACCEPTANCE CERTIFICATE [THIS CERTIFICATE IS TO BE EXECUTED ONLY WHEN ALL EQUIPMENT HAS BEEN ACCEPTED] The undersigned hereby certifies that the equipment described above, together with the equipment described in and accepted by Payment Request and Acceptance Certificates previously filed by Lessee with the Escrow Agent and Lessor pursuant to the Escrow Agreement, constitutes all of the Equipment subject to the Lease. Dated: City of Hutchinson, Minnesota LESSEE Printed Name: Matthew Jaunich Time: City Administrator 24 Form w=9 (Rev. October 2018) Drne Treasury ientofthService Request for Taxpayer Identification Number and Certification ■ Go to wwwJmgcv1FormW9 for instructions and the latest information. i name tas snown on your income tax retu City of Hutchinson, Minnesota 2 Business name/disregarded entity name, ame is required on this line; do not from Give Form to the requester. Do not send to the IRS. 3 Check appropriate box for federal tax class iication of the person whose name is entered on line 1. Check only one of the 4 Exemptions (codes apply only to following seven boxes, certain entitles, not individuals; sea instructions on page 3): ElIndividual/sole proprietor or ElC Corporation El8 Corporation ❑ Partnership ❑ Trustjestate single -member LLC Exempt payee code (d any) ❑ Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=Partnership) 0, Note: Check the appropriate box in the line above for the tax classification of the single -member owner. Do not check Exemption from FATCA reporting LLC 0 the LLC is classified as a single -member LLC that is disregarded from the owner unless the owner of the LLC Is code (if any) another LLC that is not disregarded from the owner for U.S. federal tax purposes. Otherwise, a single -member LLC that is disregarded from the owner should check the appropriate box for the tax classification of its owner. ❑ Other (see instructions)■ Municipality {App es roaccvu �s mxnranedv Rs de ve V-Sl street, and apt. or 111 Hassan St SE Hutchinson, Minnesota 55350 7 List account numberisl here name and address (optional) Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on line 1 to avoid Social security number backup withholding. For individuals, this is generally your social security number (SSN. However, fora resident alien, sole proprietor, or disregarded entity, see the instructions for Part I, later. For other entities, it is your employer identification number (EIN). If you do not have a number, see Now to get a VN, later. or Note: If the account is in more than one name, see the instructions for line 1. Also see What !Name and Employer identification number Number To Give the Requester for guidelines on whose number to enter. F-7-11 Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and 2. 1 am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding; and 3. 1 am a U.S. citizen or other U.S. person (defined below); and 4. The FATCA code(s) entered on this form (f any) indicating that I am exempt from FATCA reporting is correct. Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends an your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions for Part 11, later. Sign Isignature of Here I U.S. person ■ Date ■ General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Future developments. For the latest information about developments related to Form W-9 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/F`ormW9. Purpose of Form An individual or entity (Form W-9 requester] who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) which may be your social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN), to report on an information return the amount paid to you, or other amount reportable an an information return. Examples of information returns include, but are not limited to, the following. • Form 1099-INT (interest earned or paid) ■ Form 1099-DIV (dividends, including those from stocks or mutual funds) ■ Form 1099-MISC (various types of income, prizes, awards, or gross proceeds) • Form 1099-8 (stock or mutual fund sales and certain other transactions by brokers) ■ Form 1099-S (proceeds from real estate transactions) • Form 1099-K (merchant card and third parry network transactions) ■ Form 1098 (home mortgage interest), 1098-E (student loan interest), 1 D98-T (tu ftion) ■ Form 1099-C (canceled debt) • Form 1099-A (acquisition or abandonment of secured property) Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN. H you do not return Form W-9 to the requester with a TIN, you might be subject to backup withholding. See What is backup withholding, later. Cat No. 10231X Form w-8 (Rev, 10-2018) HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Consideration of Site Plan, CUP, Plats, and Alley Vacation, - Prince of Peace Department: Planning LICENSE SECTION Meeting Date: 4/23/2019 Application Complete Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff Consent Agenda Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Prince of Peace Senior Apartments Inc. is requesting a Site Plan review for an 11-unit expansion located at 301 Glen St SW (306, 316, 326 Franklin St SW). In addition to the site plan review, the applicant has also applied for preliminary and final plats to combine the lots, a rezoning to R-4 (separate Board Action Form), a Conditional Use Permit for a Senior Apartment in the R-4 Zoning District and a vacation of the alley. Staff gave a detailed overview of the project to the Planning Commission. (See attached Staff Report for Details). The Planning Commission did not have any questions about the project. There was nobody from the public at the meeting. The applicant was represented at the meeting but did not speak. The Planning Commission voted unanimously to recommend approval of the project. BOARD ACTION REQUESTED: Approval of the site plan, conditional use permit, vacation of alley and preliminary and final plat. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA RESOLUTION NO. 15037 RESOLUTION APPROVING A SITE PLAN, CONDITIONAL USE PERMIT, PRELIMINARY AND FINAL PLAT OF PRINCE OF PEACE SECOND ADDITION, AND VACATION OF ALLEY TO CONSTRUCT AN ADDITON TO PRINCE OF PEACE SENIOR APARTMENTS LOCATED 301 GLEN ST SW, 306, 316, 326 FRANKLIN ST SW, HUTCHINSON, MN. FACTS 1. Prince of Peace Senior Apartment Inc is the owner of the property located at 301 Glen St SW, 306, 316, 326 Franklin St SW 2. The subject property is legally described as: 301 Glen St SW: Lot 1, Block 1, Prince of Peace Addition 306 Franklin St SW: Lot 1, Block 31, Townsite of Hutchinson South Half 316 Franklin St SW: Lot 2, Block 31, Townsite of Hutchinson South Half 326 Franklin St SW: Lot 3, Block 32, Townsite of Hutchinson South Half (To be known as: Lot 1, Block 1, Prince of Peace Second Addition) Prince of Peace Senior Apartments Inc., has applied to the City for a site plan, conditional use permit, preliminary and final plat and vacation of alley to allow construction of an 11-unit addition to the existing Prince of Peace Senior Apartment building at 301 Glen St SW, Hutchinson. 4. The Planning Commission met on April 16, 2019 and considered the effects of the proposal on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and consistency with the Comprehensive Plan, and hereby recommends approval of the request due to the following findings and conditions: a. Staff recommends rezoning the property from R-2 to R-4 b. The proposed building and site improvements shall comply with the standards of the R-4 district and the Zoning Ordinance, as well as all other City regulations. C. Any reconstruction of existing infrastructure within City of Hutchinson easement areas shall be the developer's responsibility, including improvements and associated costs. This work shall meet all of the City's engineering standards and be approved by the City. d. The City of Hutchinson must be notified 7 days prior to any roadway or utility work that is going to be done within the City right of way. If the proposed work affects roadway traffic flow, a traffic plan must be submitted to the City Engineer for approval. All roadway work must be fully completed to City standards within 10 calendar days of the original disturbance. If the work is not fully completed within 10 calendar days, the City reserves the right to have the work completed and invoices/assess the property owner for all associated costs. e. Fire hydrants must be located no farther than 400 feet from the building. Resolution # 15037 Site Plan, CUP, Preliminary/Final plat, Vacation of Alley Prince of Peace Second Addition Page 2 f. Exterior refuse collection area must be fully screened. g. The exterior of the building shall generally match the architecture of the existing Prince of Peace building and be of residential character. h. Franklin Street utility installations and necessary restoration to be limited to established City roadway disturbance parameters. i. Traffic control for all roadway and sidewalk closures/impacts as deemed necessary by the City Engineer shall be the responsibility of the Developer. j. Any needed roadway work will require a pavement patch section that must meet or exceed existing thicknesses per City Engineer approval. k. Relocation of all gas, electric and other private utilities shall be the responsibility of the Developer. 1. Proposed bioretention swale performance must satisfy City stormwater pond detention and treatment criteria/guidelines (City Engineer and Environmental Specialist to review further). in. Sanitary sewer service piping should be noted as PVC. n. Storm sewer mains within City right-of-way shall be RCP. o. Staff recommends approval of the vacation of alley and easement as noted on the plat. p. The Applicant must obtain all necessary permits for the construction of the proposed project. q. The final plat shall be recorded at the McLeod County Recorder's Office within 270 days of approval. r. Building permits will not be issued until the plat is recorded. S. The standards for granting a conditional use permit would be met, subject to the conditions stated. t. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use required approval of a new conditional use permit. U. The applicant must obtain all necessary permits for the construction of the proposed project. The City Council has considered the recommendation and findings of the Planning Commission and hereby does recommend approval of the preliminary plat, rezoning, planned development district and conditional use permit subject to the following findings and conditions: a. Staff recommends rezoning the property from R-2 to R-4 b. The proposed building and site improvements shall comply with the standards of the R-4 district and the Zoning Ordinance, as well as all other City regulations. c. Any reconstruction of existing infrastructure within City of Hutchinson easement areas shall be the developer's responsibility, including improvements and associated costs. This work shall meet all of the City's engineering standards and be approved by the City. d. The City of Hutchinson must be notified 7 days prior to any roadway or utility work that is going to be done within the City right of way. If the proposed work affects roadway traffic flow, a traffic plan must be submitted to the City Engineer for approval. All roadway work must be fully completed to City standards within 10 calendar days of the original disturbance. If the work is not fully completed within 10 calendar days, the City reserves the right to have the work completed and invoices/assess the property owner for all associated costs. e. Fire hydrants must be located no farther than 400 feet from the building. Resolution # 15037 Site Plan, CUP, Preliminary/Final plat, Vacation of Alley Prince of Peace Second Addition Page 3 f. Exterior refuse collection area must be fully screened. g. The exterior of the building shall generally match the architecture of the existing Prince of Peace building and be of residential character. h. Franklin Street utility installations and necessary restoration to be limited to established City roadway disturbance parameters. i. Traffic control for all roadway and sidewalk closures/impacts as deemed necessary by the City Engineer shall be the responsibility of the Developer. j. Any needed roadway work will require a pavement patch section that must meet or exceed existing thicknesses per City Engineer approval. k. Relocation of all gas, electric and other private utilities shall be the responsibility of the Developer. 1. Proposed bioretention swale performance must satisfy City stormwater pond detention and treatment criteria/guidelines (City Engineer and Environmental Specialist to review further). in. Sanitary sewer service piping should be noted as PVC. n. Storm sewer mains within City right-of-way shall be RCP. o. Staff recommends approval of the vacation of alley and easement as noted on the plat. p. The Applicant must obtain all necessary permits for the construction of the proposed project. q. The final plat shall be recorded at the McLeod County Recorder's Office within 270 days of approval. r. Building permits will not be issued until the plat is recorded. s. The standards for granting a conditional use permit would be met, subject to the conditions stated. t. The conditional use permit shall remain in effect as long as the conditions required by the permit are observed. Any expansion or intensification of a conditional use or change to another conditional use required approval of a new conditional use permit. u. The applicant must obtain all necessary permits for the construction of the proposed project. APPLICABLE LAW 1. The conditional use permit request meets the following standards as required in the City of Hutchinson Municipal Code: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. Resolution # 15037 Site Plan, CUP, Preliminary/Final plat, Vacation of Alley Prince of Peace Second Addition Page 4 CONCLUSIONS OF THE LAW 2. The requested conditional use permit is consistent with the comprehensive plan. 3. The proposed use will not have a substantial or undue adverse effect upon adjacent property, character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare. 4. The proposed use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the applications to issue a site plan, conditional use permit, preliminary and final plat and vacation of alley to construct an addition to Prince of Peace Senior Apartments located at 301 Glen St SW., Hutchinson MN is approved. Adopted by the City Council this 23rd day of April, 2019. 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: April 10, 2019, for April 16, 2019, Planning Commission Meeting Application: Consideration of a Site Plan Review, C.U.P., Preliminary and Final Plat, Rezoning and Vacation of Alley at 301 Glen St. SW (Including 306, 316, 326 Franklin St SW). Applicant: Prince of Peace Senior Apartments Inc. Site Plan Prince of Peace Senior Apartments Inc. is requesting a Site Plan review for an 11-unit expansion located at 301 Glen St SW (306, 316, 326 Franklin St SW). In addition to the site plan review, the applicant has also applied for preliminary and final plats to combine the lots, a rezoning to R- 4, a Conditional Use Permit for a Senior Apartment in the R-4 Zoning District and a vacation of the alley. Prince of Peace Senior Apartments (301 Glen St SW) Planning Commission — 04/16/19 Page 2 GENERAL INFORMATION Existing Zoning: R-4 and R-2 Property Location: 301 Glen St., Lot 1, Block 1, Prince of Peace Addition; Lot 1, 2 and 3, Block 31, South Half City of Hutchinson. Lot Size: 2.15 acres Existing Land Use: Prince of Peace Senior ApartmentsNacant Adjacent Land Use And Zoning: R-2 (Medium Density Residential) Comprehensive Land Use Plan: High Density Residential/Mixed Use Zoning History: A portion of property was rezoned from R-2 to R-3 in 1988. Another rezoning was done in 1994 and was rezoned from R-2 to R-4. A Conditional Use Permit was granted in 1994 for the Senior Apartment Use. Applicable Regulations: Section 154.174, 154.175, 154.173, 153.035—153.051, City Charter Section 13.05 Building: The proposed building is an 11 unit; two-story building that will match the architecture of the existing building. Site Plan: The City Council deems it is necessary and appropriate to require site plan approval of developments in certain zoning districts to preserve and promote attractive, well -planned, stable urban conditions. The following is an overview of site plan considerations. Setbacks: All of the building and parking/driveway setbacks meet the requirement of the zoning ordinance. Signage: Any signage on the building will need a sign permit and will need to be residential in character. Parking/Access/Circulation The Zoning Ordinance requires Senior Apartment facilities to have .5 off street parking spaces per dwelling unit, which means 5.5 parking stalls are needed. There are 14 parking stalls proposed. There will be six tuck under parking spaces under the apartments, as well as an eight - stall garage on -site. Prince of Peace Senior Apartments (301 Glen St SW) Planning Commission — 04/16/19 Page 3 Access to the site will be off Franklin St SW, Yd Avenue SW, and 4th Avenue SW. The northern portion of the alley will be vacated. A new access will be built off Yd Avenue SW to access the garage spaces. Access to the tuck under garages will be through the existing alley off 4th Avenue SW or off the new access point being built off Franklin St SW. Visitors typically access the site from Glen St. Overall, access to the site is good and shouldn't be an issue. There is an existing parking lot on the southeastern portion of the site that is utilized by Peace Lutheran Church, as well as the Prince of Peace Senior Living facility. A shared use parking agreement for this parking lot will be required and will have to be recorded with McLeod County if this parking is to continue to be used by both Prince of Peace and Peace Lutheran Church. Staff has concern about the turning radius for emergency vehicles traveling northbound in the alley and having to make the right hand turn eastbound to continue to Franklin St SW. The NW corner of the parking lot may need to be reconfigured to accommodate turning movements for emergency vehicles. Building The building is proposed to an 11-unit expansion added on to the east of the existing building. Staff understands the building will look very similar to the existing building. The addition will also be 2 stories. Landscaping and Lighting: A landscape plan will be required to be submitted with the building permit plan submittal. There are mature trees on the boulevard of Franklin Street that should remain and be protected during construction. The final landscape plan will be reviewed at the time of building permit and approved by the City Arborist. A lighting must be downcast and not shine onto adjacent properties. Stormwater Management: A bio retention swale is proposed on -site to manage stormwater. A stormwater maintenance agreement will be required between the applicant and the City. Trench detail shows 4" on each side of the underdrain tile with no detail indicating the use of filtration media in the filtration swale's bottom. The use of this type of underdrain with in situ soils can be very problematic. Filtering that much water through a 14" wide filter aggregate in what is classified as C soils that are staying in place is not typical of what is recommended by the Minnesota Stormwater Manual. More horizontal surface area to achieve the 24-48 hour drawdown requirement for filtration practices may be needed. A cross section will need to be provided of the filtration practice with proposed bottom media and underdrain necessary to comply with standards identified in the attached design guide. Staff will work with the applicant through the building permit process to determine the best approach regarding retention swales/ponding onsite. Vacation of Alley and Easement: The alley needs to be vacated because the proposed building is going to be built over a portion of the alley. All of the utilities both public and private will need to be relocated from the alley and it will be the responsibility of the applicant/developer to pay for these relocation costs. Staff is Prince of Peace Senior Apartments (301 Glen St SW) Planning Commission — 04/16/19 Page 4 comfortable with the alley being vacated if all necessary provisions are made to relocate utilities. A drainage and utility easement of the west side of the alley also needs to be vacated. Section 13.05 of the City Charter states: "A majority of the council may by resolution vacate any street, alley or any public grounds within the city. Such vacation may be made only after published notice and an opportunity of affected property owners and public to be heard, and upon such further terms and by such procedure as is prescribed in MN Stat 412.851, and which the council by resolution may prescribe. A notice of completion of such proceedings shall be filed with the proper county officers in accordance with law." Rezoning: The Comprehensive Plan guides this area as mixed -use development, which includes residential use and rezoning to R-4 is in conformance with the comprehensive plan. The proposed development also fits the density of the R-4 Zoning district. Staff feels the R-4 zoning request is acceptable and fits in with the neighboring property zoning designations, as well as the surrounding uses in this area. Conditional Use Permit: The Conditional Use Permit (CUP) is required for multiple -family buildings in an R-4 zoning district. The buildings appear to meet all applicable zoning regulations. The following are standards for granting a conditional use permit: (a) The proposed building or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public convenience and will contribute to the general welfare of the neighborhood or community; (b) The proposed building or use will not have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety and general welfare; and (c) The proposed building or use will be designed, arranged and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. Conclusion: 1. The proposed project is desirable and will contribute to the general welfare of the neighborhood in the subject location, as it will utilize land that is currently vacant. 2. The proposed project is not anticipated to have a substantial or undue adverse effect upon adjacent property, the character of the neighborhood, traffic conditions, utility facilities, and other matters affecting the public health, safety, and general welfare as the project appears to meet all zoning requirements. Prince of Peace Senior Apartments (301 Glen St SW) Planning Commission — 04/16/19 Page 5 3. The proposed building(s) will be designed, arranged, and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations. Recommendations: Staff recommends approval of the site plan application, preliminary and final plats, rezoning, conditional use permit, and vacation of alley and easements with the following recommendations: 1. Staff Recommends rezoning the property from R-2 to R-4. 2. The proposed building and site improvements shall comply with the standards of the R-4 district and the Zoning Ordinance, as well as all other City regulations. 3. Any reconstruction of existing infrastructure within City of Hutchinson right of way or easement areas shall be the developer's responsibility, including necessary improvements and associated costs. This work shall meet all of the City's engineering standards and be approved by the City. 4. The City of Hutchinson must be notified 7 days prior to any roadway or utility work that is going to be done within the City right of way. If the proposed work impacts roadway traffic flow, a traffic plan must be submitted to the City Engineer for approval. All roadway work must be fully completed to City standards within 10 calendar days of the original disturbance. If the work isn't fully completed within 10 calendar days, the City reserves the right to have the work completed and invoice/assess the property owner for all associated costs. 5. There must be emergency service access around the building. Fire hydrants must be located no farther than 400 feet from the building. 6. Exterior refuse collection area must be fully screened. 7. A shared parking agreement between Prince of Peace and Peace Lutheran Church needs to entered into and recorded with McLeod County for Prince of Peace to utilize the parking lot on the southeastern portion of the lot. 8. The exterior of the building shall generally match the architecture of the existing Prince of Peace building and be of residential character. 9. Franklin Street utility installations and necessary restoration to be limited to established City roadway disturbance parameters. 10. Traffic control for all roadway and sidewalk closures/impacts as deemed necessary by the City Engineer shall be the responsibility of the Developer. 11. Any needed roadway work will require a pavement patch section that must meet or exceed existing thicknesses per City Engineer approval. 12. Relocation of all gas, electric and other private utilities shall be the responsibility of the Developer. 13. Proposed bioretention swale performance must satisfy City stormwater pond detention and treatment criteria/guidelines (City Engineer and Environmental Specialist to review further). 14. Sanitary sewer service piping should be noted as PVC. 15. Storm sewer mains within City right-of-way shall be RCP (reinforced concrete pipe). 16. Staff recommends approval of the vacation of alley and easement as noted on the plat. 17. The Applicant must obtain all necessary permits for the construction of the proposed project. Prince of Peace Senior Apartments (301 Glen St SW) Planning Commission — 04/16/19 Page 6 18. The final plat shall be recorded at the McLeod County Recorder's Office within 270 days of approval. 19. Building permits will not be issued until the plat is recorded. — — — — — GLEN STREET"V ------------� I III �> n exuxtixous suxFnc[ -- = — . — OF � Yi �- -- -- -- --- _ ---- ,. 3 — ----- — -- - _ I O_ s: I � � n j- I I I VL _ a s z em: _ __ ____ _- oaz o o P O Q. s FRANKLIN STREET = — — — — — — ®BOLTON�[om^k mm mss iv,iv, MENK EXISIHAUGEN ARCHITEADDITIDN CTURE, INC. CO.OZ & NGPCONDITIONS - 1�_ e ---- .__- ---.`'�;" GANAGES \ _ - _toQ �E F lab4 EJ� F E N m' I1 Ew a F �• III w h � I z I I � ' • =aN Ufa �� l-I I �-1` I I I � I -- r ol6p,�ba - --' roxo loV it � o O O — - --- � -- — --- — b - .{ "— J FRANKLIN STREET O — meM=10.RA. ®wO -TON $c M E N K HAUGmVN ARCHITECTURE, INC. 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F�UR7�AAVENUE =3�1 PRINCE OF PEACE SECOND ADDITION 1291 • 6 $ w,��.awt• ��Y.,�ti mtr nmm.ewm.d. wvMw.n.w+.N �taxw.waw +nw xrwrww,a l,. wum w.r wsnwror.mvtw]u'7..s m...y ". w--•w.K..a ov, .a. w.x.r d....r...r ."...wa e TH,R6 AVENUE SW"n°"fN°'�""" I a �—.�_�.—� YIOWtl,7 'eJ.�� —.,.N x 1 •�' �p �mse.t 11FA1 r 10 4 nor i BLOCK I RIL A. r E i 32 I � — � . ee�.n w� .+.v- �e r dxa rw ra..n c.mey I �L xenw.t t n.1e J etl,� �yr•[vei,e�nx we.�rery.ew wM.,�ir.n�in a�W o,, eea z a � r. w-• rd �w�i+.e� rd M .rce -m w w.� e� ke.w a� w�i pc ^ s2 .fix -- , w� ..--f�e, �r FOURTH AVENUE SW �. GUr� ,RAcou . a.. . P�°C cN AoofTION! K.N.;- CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 4/10/19 - 4/23/19 Check Date ------------------ 04/12/2019 Check ------------------------------------------------------------------------------ EFT923 Vendor Name EFTPS Description ------------------------------------------------------------------------ PAYROLL 3/24 - 4/06/2019 Amount --------------------- $ 63,447.87 04/12/2019 EFT924 Child Support PAYROLL 3/24 - 4/06/2019 149.54 04/12/2019 EFT925 MN Dept of Revenue PAYROLL 3/24 - 4/06/2019 12,878.08 04/12/2019 EFT926 Provident Life and Acc Ins PAYROLL 3/24 - 4/06/2019 666.41 04/12/2019 EFT927 PERA PAYROLL 3/24 - 4/06/2019 52,365.67 04/12/2019 EFT928 TASC-Flex PAYROLL 3/24 - 4/06/2019 1,532.02 04/12/2019 EFT929 TASC-H S A PAYROLL 3/24 - 4/06/2019 13,286.69 04/12/2019 EFT930 ICMA PAYROLL 3/24 - 4/06/2019 2,360.00 04/12/2019 EFT931 VOYA PAYROLL 3/24 - 4/06/2019 530.00 04/12/2019 EFT932 MNDCP PAYROLL 3/24 - 4/06/2019 350.00 04/12/2019 205229 Manual Payroll check PAYROLL 3/24 - 4/06/2019 205.56 04/12/2019 205230 NCPERS PAYROLL 3/24 - 4/06/2019 368.00 04/12/2019 205231 HART PAYROLL 3/24 - 4/06/2019 585.47 04/12/2019 205232 GRAPHIC HOUSE INC WALK UP KIOSK FOR GATEWAY PARK 5,950.00 04/23/2019 205233 48FORTY SOLUTIONS, LLC PALLETS FOR CREEKSIDE PRODUCTION 5,162.44 04/23/2019 205234 A R ENGH HEATING & AIR CONDITIONING UNHOOKED/RE-HOOKED GAS LINE - FIRE DEPT 142.50 04/23/2019 205235 A.M. LEONARD INC 100 GALLON SPRAYER; 12' BOOM - PUBLIC WORKS 3,164.00 04/23/2019 205236 AARP APRIL INSTRUCTION 360.00 04/23/2019 205237 ABEL REALTY ADVISORS, LLC MARCH 2O19 RETAINER FEE - POLICE FACILITY 3,500.00 04/23/2019 205238 ABSOLUTE LOGISTICS LLC FREIGHT CREEKSIDE PRODUCT TO WISCONSIN 1,380.00 04/23/2019 205239 ACE HARDWARE REPAIR & MAINTENANCE SUPPLIES - VARIOUS DEPTS 71.21 04/23/2019 205240 AHLGREN ELECTRIC LIGHTING REPAIRS - EVENT CTR & ROBERTS PARK 517.10 04/23/2019 205241 ALICIA JOHNSON REFUND FOR COACHING SOCCER 30.00 04/23/2019 205242 ALICIA JUST REFUND FOR COACHING SOCCER 30.00 04/23/2019 205243 AMERICAN BOTTLING CO APRIL COST OF GOODS - LIQUOR STORE 100.00 04/23/2019 205244 AMERICAN DOOR WORKS REPLACED CABLES ON BI-FOLD DOOR 1,237.56 04/23/2019 205245 AMERIPRIDE SERVICES TOWEL BAR, MOPS, MATS FOR LIQUOR STORE 116.73 04/23/2019 205246 ANIMAL MEDICAL CENTER ON CROW RIVER PROCESSING/BOARDING - PETS AT LARGE 86.00 04/23/2019 205247 ARCTIC GLACIER USA INC. APRIL COST OF GOODS - LIQUOR STORE 129.37 04/23/2019 205248 ARTISAN BEER COMPANY APRIL COST OF GOODS - LIQUOR STORE 1,674.80 04/23/2019 205249 BCA TRAINING &AUDITING DMT-G ONLINE RECERT- NORTROM, POLICE 75.00 04/23/2019 205250 BEACON ATHLETICS BASEBALL FIELD MAINTENANCE SUPPLIES 2,531.50 04/23/2019 205251 BELLBOY CORP APRIL COST OF GOODS - LIQUOR STORE 1,933.30 04/23/2019 205252 BERNICK'S RECREATION CONCESSIONS & LIQUOR INVENTORY 932.18 04/23/2019 205253 BIOBAG AMERICAS INC 2019 BIO-BAG PURCHASE - REFUSE 168.18 04/23/2019 205254 BLAKE, RANDY UB refund for account: 3-080-1850-4-00 7.52 04/23/2019 205255 BOLTON & MENK INC. 8 UNIT T-HANGAR CONST 545.53 04/23/2019 205256 BRANDON TIRE CO NEW TRUCKTIRES- PARKS (1), ENGINEERING (2) 1,738.04 04/23/2019 205257 BREAKTHRU BEVERAGE APRIL COST OF GOODS - LIQUOR STORE 10,967.92 04/23/2019 205258 BUREAU OF CRIM. APPREHENSION CJDN ACCESS FEES 1/1- 3/31'19 390.00 04/23/2019 205259 BW WELDING FABRICATION 1" SHAFT - WWTP 129.27 04/23/2019 205260 C & L DISTRIBUTING APRIL COST OF GOODS - LIQUOR STORE 28,509.95 04/23/2019 205261 CARD SERVICES CASH WISE SUPPLIES - SENIOR CENTER 19.42 04/23/2019 205262 CARPETSPLUS COLOR TILE REPLACE CARPET AT EVENT/SENIOR CENTER 29,328.26 04/23/2019 205263 CARS ON PATROL SHOP LLC TWO NEW SQUAD CAR SETUP / OTHER PD ITEMS 8,357.03 04/23/2019 205264 CENTRAL HYDRAULICS REPAIR & MAINTENANCE SUPPLIES - VARIOUS DEPTS 624.03 04/23/2019 205265 CENTRAL MCGOWAN EQUIPMENT PARTS - HATS 77.70 04/23/2019 205266 CINTAS CORPORATION CLEANING SUPPLIES - VARIOUS DEPTS 143.00 04/23/2019 205267 CODE PACK LLC POLYPROPYLENE PERF, WAX RIBBON - CREEKSIDE 1,270.42 04/23/2019 205269 CROW RIVER PRESS INC SENIOR CENTER NEWSLETTERS 93.41 04/23/2019 205270 CROW RIVER WINERY APRIL COST OF GOODS - LIQUOR STORE 705.60 04/23/2019 205271 CZECH, RANDY REIMB: MPCA CONFERENCE - WWTP 42.23 04/23/2019 205272 DUNDEE BASKET: M SCHUMANN 70.00 04/23/2019 205273 DYNA SYSTEMS O-RINGS - WWTP 9.07 04/23/2019 205274 E.G. RUD & SONS INC. SOUTH GRADE ROAD UTILITY LOCATING 2,267.50 04/23/2019 205275 E2 ELECTRICAL SERVICES INC REPLACE 24V CONTACTOR: WIRE HEATER - WWTP 379.13 04/23/2019 205276 ECOLAB PEST ELIMINATION COCKROACH/RODENT PROGRAM - POLICE 64.93 04/23/2019 205277 EMBROIDERY PLUS SHIRTS, JACKETS, W/ LOGO - FIRE DEPT 639.00 04/23/2019 205278 EMERGENCY RESPONSE SOLUTIONS LLC PPE LOCKER STORAGE BOXES - FIRE DEPT 248.00 04/23/2019 205279 ENGINEERING MINNESOTA 2-YR SUBSCRIPTION 35.00 04/23/2019 205280 FACILITY ENHANCEMENT INCORPORATED REPLACE VINYL WALL COVERING AT EVENT CENTER 1 8,690.00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 4/10/19 - 4/23/19 Check Date ------------------ 04/23/2019 Check --------- --------------------- 205281 Vendor Name ---- ------ ---- ---------------------------------- FASTENAL COMPANY Description ------------------------------- ---- ---------- ------------ --------- ------ REPAIR & MAINTENANCE SUPPLIES - VARIOUS DEPTS Amount --------------------- 1,497.92 04/23/2019 205282 FIRST ADVANTAGE LNS OCC HEALTH SOLU DRUG TESTING 234.25 04/23/2019 205283 FIRST CHOICE FOOD & BEVERAGE SOLUTI COFFEE - CITY CENTER & HATS 304.00 04/23/2019 205284 FISHER SCIENTIFIC GLASSES, TIPS - WWTP LAB SUPPLIES 232.40 04/23/2019 205285 FORESTEDGE WINERY APRIL COST OF GOODS - LIQUOR STORE 504.00 04/23/2019 205286 GALCO INDUSTRIAL ELECTRONICS INTEGRATED DUPLEX CONTROLLER - WWTP 381.31 04/23/2019 205287 GAVIN, DONLEY & OSTLUND, LTD FLAT FEE AGREEMENT - LEGAL SERVICES 3,300.00 04/23/2019 205288 GOLDSTAR PRODUCTS INC SEWER DYE, LIQUID SMOKE, BUFF WASH - WWTP 1,550.65 04/23/2019 205289 GOVT FINANCE OFFICERS ASSN - GFOA 2019 MEMBERSHIP RENEWAL: REID & JUERGENSEN 340.00 04/23/2019 205290 GRAINGER REPAIRS PARTS - CIVIC ARENA & CITY CENTER 679.93 04/23/2019 205291 GREAT NORTHERN ENVIORNMENTAL LLC BALLAST KIT, CLEANER, HYD FILTER ELEMENT- WWTP 1,143.85 04/23/2019 205292 HAGER JEWELRY INC. NAME PLATE: J CHRISTENSON 21.88 04/23/2019 205293 HALDEMAN-HOMME, INC. RECREATION SUPPLIES FOR VOLLEYBALL 493.43 04/23/2019 205294 HALI-BRITE INC LAMPS, LENS, FIXTURE -AIRPORT PARTS 1,212.27 04/23/2019 205295 HANSEN GRAVEL INC. SNOW LOADER - CITY PUSHER & SNOW REMOVAL 3,166.00 04/23/2019 205296 HERGENRADER, LISA REIMB: PIZZA FOR DMV STAFF ON SNOW DAY 25.75 04/23/2019 205297 HILLYARD / HUTCHINSON FLOOR SEALER & TOWEL ROLLS - LIBRARY & HATS 383.58 04/23/2019 205298 HOFF, RANDY ARRANGEMENT: S KILIAN 53.00 04/23/2019 205299 HOISINGTON KOEGLER GROUP INC PARKS MASTER PLAN: MARCH SERVICES 6,289.40 04/23/2019 205300 HOMES REIMB: CANCELLED RESERVATION 40.00 04/23/2019 205301 HUTCHINSON CO-OP GAS, DIESEL, LP, PREMIUM 91 FUEL- VARIOUS DEPTS 4,732.69 04/23/2019 205302 HUTCHINSON GIRL'S SOFTBALL ASSN REIMB OF FEES COLLECTED LESS FACILITY FEES PAID 11,815.00 04/23/2019 205303 HUTCHINSON JUNIOR LEAGUE BASEBALL REIMB OF FEES COLLECTED 39,100.00 04/23/2019 205304 HUTCHINSON LEADER EDA ADVERTISING & 2 YR RENEW FOR PLANNING 730.69 04/23/2019 205305 HUTCHINSON UNITED SOCCER ASSN. 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REC CENTER IMPROV: CONSTRUCTION DOCUMENT 11,196.00 04/23/2019 205314 INDUSTRIAL PNEUMATIC SYSTEMS COMPRESSOR OIL - WTP 447.52 04/23/2019 205315 INTEPLAST GROUP NATURAL MULCH - CREEKSIDE INVENTORY 6,506.16 04/23/2019 205316 INTERSTATE BATTERY SYSTEM MINNEAPOL BATTERY INVENTORY FOR HATS 969.85 04/23/2019 205317 INTOXIMETERS INC MOUTHPIECES - POLICE 180.00 04/23/2019 205318 ISD #423 FEES COLLECTED FOR FEB & MAR CLASSES 5,586.75 04/23/2019 205319 J & R AUTO & RADIATOR STREETS LOADER: INSTALL COMPRESSOR & RECHARGE 1,273.96 04/23/2019 205320 JEFF MEEHAN SALES INC. FEB & MARCH 2O19 CREEKSIDE COMMISSIONS 19,560.15 04/23/2019 205321 JIMMY'S PIZZA PIZZAS FOR RECREATION CONCESSIONS 242.76 04/23/2019 205322 JOHNSON BROTHERS LIQUOR CO. APRIL COST OF GOODS - LIQUOR STORE 23,058.79 04/23/2019 205323 JOY SCHMITZ REIMB: CLASS CANCELLED 389.00 04/23/2019 205324 KERI'S CLEANING & HANDYMAN SERVICES 4/1 - 4/15 CITY CTR, LIBRARY, SR DINE & FIRE DEPT 2,044.00 04/23/2019 205325 KING OF FREIGHT FREIGHT CREEKSIDE PRODUCT - MULTIPLE LOCATIONS 6,325.00 04/23/2019 205326 KONRAD MATERIAL SALES, LLC SPRING/FALL ASPHALT - STREETS 1,674.40 04/23/2019 205327 KWIKTRIP RECREATION CONCESSIONS SUPPLIES 455.78 04/23/2019 205328 L & P SUPPLY CO PARKS - NEW FERRIS MOWER; OTHER SUPPLIES 6,208.01 04/23/2019 205329 LANO EQUIPMENT OF NORWOOD BAR STABILIZER - STREETS 184.00 04/23/2019 205330 LAURIE BACON AARP CLASS CANCELLED DUE TO WEATHER 36.00 04/23/2019 205331 LOCHER BROTHERS INC APRIL COST OF GOODS - LIQUOR STORE 25,635.45 04/23/2019 205332 LOGIS VARIOUS NETWORK/SOFTWARE COSTS - MAR & APR 7,342.25 04/23/2019 205333 M-R SIGN SIGN REPAIRS SUPPLIES - STREETS 224.72 04/23/2019 205334 MARCO TECHNOLOGIES, LLC ENTERPRISE CENTER COPIER: 3/4 - 4/3 SERVICES 65.83 04/23/2019 205335 MARILYN OTTE REIMB: CLASS CANCELLED DUE TO WEATHER 20.00 04/23/2019 205336 MATTHEW BENDER & CO. INC DUNNELL MN DIGEST FULL SET- LEGAL 1,931.22 04/23/2019 205337 MAYTAG LAUNDRY & CAR WASH 3/18 & 3/28 SERVICES FOR EVENT CENTER LINEN 131.99 04/23/2019 205338 MCKAY, JEFF REIMB: MILEAGE TO DULUTH FIRE OFFICER SCHOOL 252.88 04/23/2019 205339 MCLEOD COUNTY AUDITOR -TREASURER PROP TAXES -VARIOUS CITY PARCELS/ENTERPRISE CTR 40,409.65 04/23/2019 205340 MCLEOD COUNTY COURT ADMINISTRATOR BAIL: S GUERRERO 300.00 04/23/2019 205341 MCLEOD PUBLISHING INC ISHOPPER DISPLAY- WEDDING SECTION - EVENT CTR 66.87 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 4/10/19 - 4/23/19 Check Date ------------------ 04/23/2019 Check ------------------------------------------------------------------------------ 205342 Vendor Name MEDICA Description ------------------------------------------------------------------------ May Medical Insurance Amount --------------------- 136,519.98 04/23/2019 205343 MEEKER WASHED SAND & GRAVEL SAND - STREETS 2,150.28 04/23/2019 205344 MEI TOTAL ELEVATOR SOLUTIONS APR -MAY BI-MONTHLY SERVICE - LIBRARY 183.33 04/23/2019 205345 MELISSA WERTZ HUSA SOCCER REFUND 120.00 04/23/2019 205346 MENARDS HUTCHINSON REPAIR & MAINTENANCE SUPPLIES - VARIOUS DEPTS 624.84 04/23/2019 205347 MESSAGE MEDIA U.S.A., INC APRIL ACCESS FEE- POLICE 30.00 04/23/2019 205348 MESSNER, KEITH REIMB: PARKING-TENSAR PRESENTATION 24.00 04/23/2019 205349 MID -STATE ROLL -OFF SERVICE ROLL -OFF FOR POLICE TRAINING SITE DEBRIS 325.00 04/23/2019 205350 MILLNER HERITAGE VINEYARD & WINERY APRIL COST OF GOODS - LIQUOR STORE 155.40 04/23/2019 205351 MINNESOTA CONTINUING LEGAL EDUCATIO MN JUDGES CRIMINAL BENCHBOOK 2019 UPDATE 98.00 04/23/2019 205352 MINNESOTA POLLUTION CONTROL AGENCY INDUSTRIAL STORMWATER ANNUAL PERMIT FEE 400.00 04/23/2019 205353 MINNESOTA UNEMPLOYMENT INSURANCE 2019 1ST QTR UNEMPLOYMENT CLAIMS 10,752.68 04/23/2019 205354 MINNESOTA VALLEY TESTING LAB BOD CARBON, NITROGEN TESTING - WWTP 529.80 04/23/2019 205355 MN DEPT OF LABOR & INDUSTRY/CODE 1ST QTR STATE SURCHARGE 2019 837.90 04/23/2019 205356 MN DEPT OF TRANSPORTATION 2019 ARMER AGREEMENT -POLICE 2,463.50 04/23/2019 205357 MN STATE PATROL INSPECTION DECALS - STREETS 36.00 04/23/2019 205358 MNDRIVERSMANUALS.COM DRIVERS MANUALS - DMV 147.53 04/23/2019 205359 NATIONAL RECREATION & PARK ASSN NRPA MEMBERSHIP - RECREATION 175.00 04/23/2019 205360 NATIONAL RESEARCH CENTER INC. NATIONAL CITIZEN SURVEY BASIC SERVICE 9,975.00 04/23/2019 205361 NERO ENGINEERING LLC WASTEWATER & WATER: MARCH SERVICES 7,249.20 04/23/2019 205362 NEW DISCOVERIES MONTESSORI ACADEMY RENTAL 50 CHAIRS - CIVIC ARENA 250.00 04/23/2019 205363 NORTHERN STATES SUPPLY INC EQUIPMENT PARTS - HATS 254.67 04/23/2019 205364 NORTHERN TIER TRANSPORTATION LLC CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 4,450.00 04/23/2019 205365 O'REILLY AUTO PARTS MAINTENANCE SUPPLIES - PARKS DEPT 517.40 04/23/2019 205366 ORACLE AMERICA INC 3/31/19 - 3/30/20 PERFORM SITE LICENSE 5,000.00 04/23/2019 205367 PAUSTIS WINE COMPANY APRIL COST OF GOODS - LIQUOR STORE 2,181.75 04/23/2019 205368 PENMAC STAFFING SERVICES, INC. TEMP STAFFING - CREEKSIDE 3/31-4/111 5,992.78 04/23/2019 205369 PETERSON, TIM REIMB: DULUTH OFFICER SCHOOL EXPENSES 75.56 04/23/2019 205370 PHILLIPS WINE & SPIRITS APRIL COST OF GOODS - LIQUOR STORE 12,835.66 04/23/2019 205371 PIKE TRANSFER LLC CREEKSIDE FREIGHT TO WHITE BEAR LAKE 800.00 04/23/2019 205372 PIONEER MANUFACTURING CO SIGN REPAIRS SUPPLIES - PARKS 2,163.50 04/23/2019 205373 POSTMASTER POSTAGE FOR SENIOR NEWSLETTERS 110.00 04/23/2019 205374 PREMIER TECH CHRONOS PARTS FOR CREEKSIDE BAGGING LINE 1,704.79 04/23/2019 205375 PREMIUM WATERS 5 GAL WATER - PARKS GARAGE 6.50 04/23/2019 205376 PRO AUTO MN INC. 2017 FORD INTERCEPTOR: OIL CHANGE - SQUAD 11.95 04/23/2019 205377 QUILL CORP FORKS & SPOONS - POLICE 61.98 04/23/2019 205378 RATH, DARYL REIMB: DULUTH FIRE OFFICER SCHOOL 47.21 04/23/2019 205379 RED BULL DISTRIBUTION COMPANY, INC. APRIL COST OF GOODS - LIQUOR STORE 108.00 04/23/2019 205380 REINER ENTERPRISES INC FLATBED TRUCKING FOR CREEKSIDE MATERIAL 33,425.50 04/23/2019 205381 RICE COUNTY SHERIFF'S OFFICE C2019-00572 A WILLCUTT - CIVIL PROCESS F 70.00 04/23/2019 205382 RIVERLAND COMMUNITY COLLEGE JASON STURGES: 2019 MN FIRE/EMS/RESCUE S 150.00 04/23/2019 205383 RUNNING'S SUPPLY REPAIR & MAINTENANCE SUPPLIES - VARIOUS DEPTS 322.96 04/23/2019 205384 SAVATREE GENERAL TREE CARE - III 3,969.00 04/23/2019 205385 SCARCELY LTD HRA LOAN - LEAD ASSESSMENT: L. BERG 450.00 04/23/2019 205386 SCHMIDT, BEN REIMB: FF11 SCHOOL MILEAGE 54.18 04/23/2019 205387 SCHULTZ, LEVI REIMB: FF11 SCHOOL MILEAGE 16.94 04/23/2019 205388 SEPPELT, MILES REIMB: WORKFORCE PRESENTATION, ACT CONF 93.92 04/23/2019 205389 SHEILA THOMPSON REFUND FOR COACHING SOCCER 45.00 04/23/2019 205390 SMALL LOT MN LLC APRIL COST OF GOODS - LIQUOR STORE 454.80 04/23/2019 205391 SORENSEN'S SALES & RENTALS BEARING - EQUIP PART FOR STREETS 13.90 04/23/2019 205392 SOUTHERN WINE & SPIRITS OF MN APRIL COST OF GOODS - LIQUOR STORE 41,689.11 04/23/2019 205393 SRF CONSULTING GROUP SOUTH GRADE ROAD FINAL DESIGN: MARCH SER 8,733.23 04/23/2019 205394 STANDARD PRINTING-N-MAILING MONTHLY UTILITY BILLS & CITY MAILING SERVICE 1,459.32 04/23/2019 205395 STAPLES ADVANTAGE OFFICE SUPPLIES FOR VARIOUS DEPTS 281.42 04/23/2019 205396 STATE CHEMICAL SOLUTIONS STATE HAND GEL - PARKS RESTROOMS 152.60 04/23/2019 205397 STIX & BRIX UB refund for account: 1-480-4060-7-02 28.32 04/23/2019 205398 STREICH TRUCKING CREEKSIDE FREIGHT TO MULTIPLE LOCATIONS 515.00 04/23/2019 205399 SUBWAY WEST CONCESSIONS - SANDWICHES, CHIPS, WATERS 778.30 04/23/2019 205400 SUN LIFE FINANCIAL April Dental Admin Fees & March Claims 9,167.80 04/23/2019 205401 SYSCO WESTERN MN CONCESSIONS SUPPLIES FOR RECREATION 656.13 04/23/2019 205402 TALKING WATERS BREW CO JAPRIL COST OF GOODS - LIQUOR STORE 1 110.00 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 4/10/19 - 4/23/19 Check Date ---- --------------------------------------------------------------------------------------------- 04/23/2019 Check 205403 Vendor Name - TESSMAN COMPANY Description ------------------------------------------------------------------------ MARKERS, TURFACE - PARKS DEPT Amount --------------------- 965.92 04/23/2019 205404 THOMSON REUTERS-WEST MARCH WEST INFO CHARGES - LEGAL 2,683.85 04/23/2019 205405 TITAN MACHINERY EQUIPMENT PARTS - STREETS 2,433.31 04/23/2019 205406 TOWMASTER INC. RANGER TRAILER: BRAKES - FIRE DEPT 241.44 04/23/2019 205407 UNIQUE PAVING MATERIALS COLD MIX UPM WINTER - STREETS 787.05 04/23/2019 205408 UNUM LIFE INSURANCE CO OF AMERICA May Life Insurance 2,671.55 04/23/2019 205409 URBAN SPRITE MEDIA 4/1 - 4/12'19 - CREEKSIDE ADVERTISING 750.00 04/23/2019 205410 USA BLUE BOOK EQUIPMENT PARTS - HATS & wwtp 351.13 04/23/2019 205411 VACEK, JACOB REIMB: SAFETY FOOTWEAR 133.95 04/23/2019 205412 VER-TECH SOLUTIONS & SERVICES DISHMACHINE RENTAL 69.95 04/23/2019 205413 VERIZON CONNECT NWF, INC. MARCH SERVICE 94.75 04/23/2019 205414 VERIZON WIRELESS MAR 03 - APR 02 SERVICES 38.22 04/23/2019 205415 VERTIV CORPORATION PREVENTATIVE MAINTENANCE 3/25/19 - 3/24/20 2,000.00 04/23/2019 205416 VIK'S LANDSCAPING & LAWN CARE 1/1- 4/1/19 SNOW REMOVAL - ENTERPRISE CENTER 2,590.70 04/23/2019 205417 VIKING BEER APRIL COST OF GOODS - LIQUOR STORE 19,351.60 04/23/2019 205418 VIKING COCA COLA CONCESSIONS - RECREATION & LIQUOR INVENTORY 1,348.80 04/23/2019 205419 VINOCOPIA INC APRIL COST OF GOODS - LIQUOR STORE 2,062.91 04/23/2019 205420 WAHL REBUILD & REPAIR INC U-JOINT FOR ROLLOFF TRUCK - REFUSE SOURCE SEP 170.29 04/23/2019 205421 WASTE MANAGEMENT OF WI -MN 3/16- 3/31 SERVICES REFUSE DISPOSAL LANDFILL 6,194.97 04/23/2019 205422 WELCOME NEIGHBOR NEW RESIDENT VISITS 120.00 04/23/2019 205423 WEST CENTRAL SANITATION INC. MARCH RESIDENTIAL REFUSE HAULING SERVICES 46,957.24 04/23/2019 205424 WINE MERCHANTS INC APRIL COST OF GOODS - LIQUOR STORE 684.47 04/23/2019 205425 WINEBOW FINE WINE & SPIRITS APRIL COST OF GOODS - LIQUOR STORE 298.00 04/23/2019 205426 WM MUELLER & SONS ASPHALT - STREETS 969.45 04/23/2019 205427 WSB & ASSOCIATES, INC. FEBRUARY SERVICES: CAMPBELL & OTTER LAKE 10,327.00 04/23/2019 205428 ZARNOTH BRUSH WORKS INC MOBIL POLY CABLEWRAP BROOM REFILL - STWT 446.00 04/23/2019 205429 ZEP SALES AND SERVICE ZEP FORMULA, BLOW OFF, DUAL FORCE CLEANING 434.08 Total- Check Disbursements: $ 1,075,809.42 Department Purchasing Card Activity - March 2019 Date Dept Vendor Name Description Amount 03/08/2019 ADMIN GTS MCMA Annual Conference Registration $ 520.00 03/11/2019 ADMIN GRANDVIEW LODGE Lodging Costs for MCMA Annual Conference 253.42 03/07/2019 FIRE BESTBUY Cell phone case for chief I -phone 39.99 03/18/2019 FIRE CANAL PARK BREWING CO Meal for McKay at Duluth fire school. 31.53 03/18/2019 FIRE CANAL PARK BREWING CO Meal for Rath at Duluth fire school. 40.26 03/18/2019 FIRE CANAL PARK BREWING CO Meal for Rath at Duluth fire school. 36.95 03/18/2019 FIRE GRANDMAS SALOON & GRILL Meals for Schulte and McKay at Duluth fire school. 65.83 03/19/2019 FIRE PIER B RESORT Meals for Schulte and McKay at Duluth fire school. 29.34 03/19/2019 FIRE PIER B RESORT hotel for McKay at Duluth fire school 238.16 03/19/2019 FIRE PIER B RESORT hotel for Rath at Duluth fire school 238.16 03/19/2019 FIRE PIER B RESORT hotel for Schulte at Duluth fire school 238.16 03/19/2019 FIRE PIER B RESORT hotel for Peterson at Duluth fire school 238.16 03/04/2019 IT SYNNEX Network wiring hardware for tills 227.44 03/04/2019 IT MENARDS HUTCHINSON Network wiring hardware for tills 9.76 03/07/2019 IT AMAZON Plotter Paper 27.52 03/07/2019 IT AMAZON Patch Panel for fire department 37.99 03/07/2019 IT AMAZON Batteries for smart pens and one new smart pen 46.44 03/08/2019 IT AMAZON Plotter paper 19.56 03/11/2019 IT AMAZON Inventory room printer 154.99 03/18/2019 IT AMAZON Ice scrapers for both vans 29.60 03/19/2019 IT SMARTDRAW Smart Draw software renewal 141.96 03/19/2019 IT AMAZON LED flashlights 23.98 03/19/2019 IT AMAZON Park garage toner 319.99 03/29/2019 IT AMAZON USB drives 25.68 03/29/2019 IT AMAZON PC speakers AErlandson 16.99 03/29/2019 IT AMAZON DVD for Body Cam Footage 75.57 03/01/2019 PLANNING EB PLANNERS DAY ATTH Legal Update seminar 25.00 03/04/2019 PLANNING GTS planning commissioner training for Dave Sebesta 65.00 03/07/2019 PLANNING AMAZON door repair parts. Approved per September and JJ. 147.93 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 4/10/19 - 4/23/19 Check Date ---- --------------------------------------------------------------------------------------------- 03/18/2019 Check PLANNING Vendor Name - SENSIBLE LAND USE COALITION Description ---------------------------------------------------------------------- land use trainingseminar Amount --------------------- 58.00 03/19/2019 PLANNING M P ENTERPRISES brochure holder 67.04 03/21/2019 PLANNING GEMPLER'S INC sign holder 22.72 03/22/2019 PLANNING GRANITE CITY - ST CLOUD lunch - D. Jochum and D. Halquist after MFCOA conf 41.00 03/28/2019 PLANNING CASH WISE pop for pop machine in breakroom 54.70 03/28/2019 PLANNING DEPARTMENT OF LABOR & INDUSTRY training for Kyle Dimler 85.00 03/28/2019 PLANNING DEPARTMENT OF LABOR & INDUSTRY training for Dave Halquist. 85.00 03/29/2019 PLANNING DEPARTMENT OF LABOR & INDUSTRY training for Ken Nelson 85.00 03/01/2019 PRCE TEAM EXPRESS INTERNET Baseballs 30 Dz. 1,228.50 03/01/2019 PRCE ALL SPORTS AMERICA LTD Soccer Jerseys 272.36 03/11/2019 PRCE WHENIWORK.COM When I work standard plan. 80.65 03/18/2019 PRCE HOMEWOOD SUITES Lodging 146.80 03/18/2019 PRCE AMAZON Candy 893.18 03/19/2019 PRCE AMAZON Supplies/ Products 205.47 03/19/2019 PRCE AMAZON Various Supplies 202.93 03/26/2019 PRCE EPIC SPORTS, INC. Football Belts 55.30 03/28/2019 PRCE UNITED VOLLEYBALL SUPPLY Volleyball Nets 221.17 03/01/2019 PUB WKS MINNESOTA STATE COLLEGES WW Boiler License Training 518.00 03/01/2019 PUB WKS MARSHALL ENVIRONMENTAL TRA Microbiology Poster 75.00 03/04/2019 PUB WKS SEARS WWTF Refridgerator 549.99 03/07/2019 PUB WKS PAYPAL Flow Meter Chart Paper 55.00 03/08/2019 PUB WKS BATTERYSHARKS.COM Battery 73.68 03/11/2019 PUB WKS PAYPAL PLC Batteries 42.25 03/15/2019 PUB WKS CIVIL AIR PATROL MAGAZINE Advertisement 195.00 03/18/2019 PUB WKS EB EV-OLUTION CHARGIN Electric Vehicle Training- John P. 20.00 03/18/2019 PUB WKS PSN MINNESOTA RWA MN WW Training -John P. 250.00 03/18/2019 PUB WKS U OF M CONTLEARNING Stormwater Certification - Josh S. 250.00 03/18/2019 PUB WKS AMERICAN PUBLIC WORKS ASSN - APWA APWA Items and Materials 179.40 03/18/2019 PUB WKS U OF M CONTLEARNING Stormwater Certification - John P. 250.00 03/20/2019 PUB WKS NATIONAL SOCIETY OF PROFESSIONAL Updated EJCDC General Conditions Document 132.00 03/22/2019 PUB WKS EXPRESSWAY SUITES Traffic Control Conference - Cory H. 189.94 03/22/2019 PUB WKS U OF M CONTLEARNING MN Airports Conference -John O. 225.00 03/25/2019 PUB WKS MCCORMICK'S FAMILY RESTAURANT Snow Removal Appreciation Lunch 325.38 03/25/2019 PUB WKS NATIONAL SOCIETY OF PROFESSIONAL MSPE Chapter Annual Dues - Kent E. 299.00 03/29/2019 PUB WKS VALLEY ILLUMINATORS Airport taxiway markers 1,624.53 03/01/2019 EDA SUBWAY Lunch for EDA Board meeting 65.91 03/22/2019 EDA CASH WISE Beverages for EDA meetings 20.44 03/26/2019 EDA WAL-MART Paper plates for EDA meetings 21.20 03/27/2019 EDA SUBWAY Lunches for Finance Team meeting 74.79 03/29/2019 EDA MAIN STREET SPORTS BAR Lunch for EDA Board meeting 70.87 03/07/2019 CREEKSIDE SPS COMMERCE February 2019 SPS charges for UH, ACE, Bomgaars 265.95 03/26/2019 CREEKSIDE AMAZON Two-way radios for onsite communications 160.30 03/26/2019 CREEKSIDE AMAZON Two-way radios for onsite communications 80.15 03/01/2019 LIQUOR FACEBOOK Facebook ad for Bourbon Event 60.00 03/01/2019 LIQUOR ACE HARDWARE misc store operating supplies 17.98 03/12/2019 LIQUOR ACE HARDWARE cooler repairs 7.47 03/13/2019 LIQUOR AMAZON ink cartridges for sign printer 142.80 03/13/2019 LIQUOR ACE HARDWARE cooler repairs 14.48 03/15/2019 LIQUOR ACE HARDWARE cooler repairs 9.58 03/18/2019 LIQUOR RETAIL INFORMATION TEC Monthly Cloud Retailer software maintenance 213.75 03/25/2019 LIQUOR EIG CONSTANTCONTACT.COM Constant Contact email blast advertising 70.00 03/27/2019 LIQUOR ACE HARDWARE cooler repairs 11.99 03/28/2019 LIQUOR MINNESOTA MUNICIPAL BEVERAGE ASSOC MMBA conference registrations 1,295.00 03/29/2019 LIQUOR AMAZON credit card terminal head cleaners 64.40 Total- Purchasing Cards: $ 15,091.41 GRAND TOTAL $ 1,090,900.83 CHECK REGISTER B FOR CITY OF HUTCHINSON CHECK DATE FROM 4/10/19 - 4/23/19 Check Date ------------------ 04/23/2019 Check ------------- 205268 Vendor Name ------------------------------------------------------------- CROW RIVER GLASS INC. Description ---------------------------------------------------------------------- 24 X 30 OFFICE DOOR WINDOW - FIRE STATION Amount -------------------------- 310.00 Total- Check Disbursements: $ 310.00 2 0 Hutv.,.hi'*nson Demleartmen't :.rsrr�reR A-R-47- Police Chief Daniel T. Hatten 2018 Staffing 13,307 22 15 1 7 30 15,308 13,081 22 15 1 7 30 15,521 13,185 22 15 1 7 30 16,883 13,403 22 16 3 7 32 16,020 13,545 22 15 3 9 34 16,364 13,616 22 15 3 9 34 14,748 14,285 22 15 3 9 34 15,923 14,417 22 15 2 9 33 16,425 14,493 23 16 2 9 34 15,741 14,650 23 16 2 9 34 15,087 14,650 23 16 2 9 34 16,583 14,170 22 15 2 9 33 17,844 14,170 22 15 1 8 31 17,894 14,170 22 15 1 8 31 11,135 14,178 22 15 1 8 4 35 16,182 14,178 22 15 1 8 4 35 17,179 14,178 22 15 1 8 4 35 15,589 14,178 22 15 1 10 7 41 17,152 14,178 23 16 1 10 9 43 18,913 14,178 23 16 1 10 9 43 20,116 2018 Accomplishments • To work with other city departments and the community to accomplish the end statements developed by the City.Council. Addressing end statement 2.3. In 2018 this was and continues to be our mission as we provide police services to our community. • Police and Fire Training Grounds Improvement: The goal of the project was to improve safety and quality of training for participants on the grounds by addin a school bus to the training grounds and repaint the shoof house. This project was completed in 218 with police department budgeted funds and a donation from the Vision of 'Hutchinson bus line. • Continue to develop and implement a Body -worn Camera and In -Car Camera Program for the Department: The Body -worn Camera portion was completed in April on 2017 with the In -Car Camera Portion completed in December of 2017. In 2018 we implemented Axon Capture. This program allows officers to collect photographs and verbal statements as part of an investigation then secure this evidence directly from the scene into the case file. • Update the Hutchinson Police Department Policy Manual: The entire Hutchinson Police Department Policy Manual was reviewed, updated, to insure our policies comply with state statute, POST mandated standards, and the needs of the City of Hutchinson. • Complete a Sergeant Promotional Process to fill the current vacancy: This process was completed in June of 2018 and Alicia Nortrom was promoted to the rank of Sergeant. • Calls for Service Calls for Service Population Linear (Calls for Service) 20.116 2015 2016 2017 2018 • 2018 2017 2016 2015 2014 CALLS FOR SERVICE 20,116 18,913 17,152 15,589 17119 NUMBER OF ARRESTS 481 422 379 371 380 BURGLARIES 17 30 27 26 33 NSF CHECKS 7 5 9 8 8 THEFTS 358 432 432 303 458 DOMESTICS 41 47 59 48 71 Arrests 39 37 39 35 32 Reports/Assist 9 10 20 13 39 D.U.I. 70 47 59 63 78 Misdemeanor 36 32 44 30 49 Gross Misdemeanor 32 13 15 33 29 Felony 2 2 0 0 0 SHOPLIFTING 86 81 59 61 55 Juvenile 8 4 13 6 4 Adult 65 34 31 28 26 Unknown 13 38 15 20 24 ACCIDENTS 310 357 261 289 326 Fatal 0 0 0 1 0 Property Damage 256 283 187 265 263 Personal Injury 14 21 29 37 30 Hit Et Run 40 53 45 46 33 DETOX/MENTAL HEALTH 114 137 124 155 99 CITATIONS - OVERALL 845 757 802 484 1179 Seatbelt 11 19 9 12 205 Parking 131 117 311 32 170 Fail to Yield to Pedestrian 0 0 WARNINGS - OVERALL 1762 1688 984 584 997 Arrests 600 500 400 300 200 100 2018 2017 2016 2015 2014 • PART 1 CRIMES • TOTAL CITATIONS AND WARNINGS iiiiiiiiiiiiiCITATIONS oWARNINGS Linear (CITATIONS) Linear (WARNINGS ) 2018 2017 2016 2015 2014 2013 • 56 58 55 43 2014 2015 2016 2017 2018 Hospital Security Assists 1067 1011 1495 2015 _ --7016 2018 Dispatch to Arrive Time 2016 • ►psie�rss�nr��ra a� 157 62 107 ,15 2016 2017 2018 • 2-4-7 225 ................... 2014 2015 310 .............. ..... * ... 2016 2017 2018 0 Chill protection Intakes • Southwest Metro Drug Task Force SWMDTF Cases by Jurisdiction 200 183 180 160 140 120 100 80 60 40 20 0 120 107 83 ■2018 ■ 2017 54 54 37 37 31 16 Carver Scott McLeod Hennepin Dakota Other Alk AXON Body Cameras 2018 Number of Videos Uploaded 21,014 Hours of Video Uploaded 4059.99 GB of Video 8013.55 2019 Goals: • PROGRAMS: • Appointment of a New Police Chief (Completed) • Complete a Lieutenant Promotional Process to fill the future vacancy. • Complete a Sergeant Promotional Process to fill the future vacancy. • Complete a Officer Hiring Process to fill the future vacancy. • FACILITIES: • Continued improvements to the Police/Fire Training Facility. • Continue planning for the new Hutchinson Police facility. At My IF UE Mimi diQ7%lT- HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-ft Agenda Item: Review of Trunk Highway 15/Main Street Project Items Department: PW/Eng LICENSE SECTION Meeting Date: 4/23/2019 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff Communications, Requests Time Requested (Minutes): 20 License Contingency Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: City staff requests that the City Council review several items relative to the development of the Trunk Highway 15/Main Street project. Please note the below discussion outline: - Recent Project Design Efforts - Construction Detour & Staging Information - Streetscaping Approach & Plans - Metal Planter Design - Public Arts Commission Information & Activities - City Utility/General Improvements Special Assessment Estimations - Upcoming Project Schedule & Activities At this point, City staff is working with MnDOT and the design consultant to finalize some of the above items and hopes to email a packet of information to City Council members prior to the meeting. BOARD ACTION REQUESTED: No Action Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Hutchinson City Council Update - April 23, 2019 • 90% Plans and Bid Documents - Complete • City/ MnDOT Agreements and Permits Meeting - May 9th • Utility Owners Meeting No. 2 - May TBD • Downtown Businesses Update - week of May 13lh Public and Business Engagement and Outreach - Various spring/ summer dates • Hutchinson Jaycees, Ambassadors, Rotary • Hutchinson Chamber Connection (HCVN) • Radio Update (KDUZIKARP Hutchinson) • Community Events; Water Carnival, Golf Challenge, Arts & Crafts • Mailings, Newspaper, Emails • 100% Plans and Bid Documents - July i 9th • Bid Letting - November 22"d • Begin Construction - Spring 2020 Attachments: Project summary (1) Construction detour - draft (1 ) Construction sequence - draft (5) Find project information and sign up to receive email updates at: www.dot. state. mn.usld8lproiectslhwy15downtown hutch Project Schedule i Community Involvement Preliminary Design & St reetsca pe/La nd sca pe Final Design Bid Letting & Contractor Selection Construction Project Goals & Benefits • Smoother road surface • Modernize sanitary sewer, water main and storm sewer • Help ensure city and state infrastructure serves their purpose for many years • The City of Hutchinson views this project as an opportunity to enhance downtown and improve livibility in the central district Summary of Work • Complete reconstruction of Main Street/ Highway 15 through downtown • Pavement resurfacing of Highway 15 between 5th Ave S and just north of the roundabout at CR 115 • Update sidewalk and pedestrian crossings along project area to meet Americans with Disabilities (ADA) standards 20171 2018 1 2019 ber 22, 2019 Project Location Maepn+c Wile! Rrrer Fyk 2020 ' i R�pR5fN Ctip{1 � ?raw utilities � jliiArc Tf Y Pavement ., Resurfacing Find project information and sign up to receive email updates at: www.dot.state.mn.us/Mproiects/hwy15downtownhutch I 419119 MAIN STREET Cq1 Ahl DEPARTMENT OF� A W2 TRANSPORTATION SEA Road To An Even Better Hutchinson PROJECT AREA & OFFICIAL DETOUR rtm t `= znd�wa� ."UWQ S Grade Rd SW S Grade Rd SW Century Avenm T Mma�xtsop NWtltlfAt 1MP11iT YMathington Ave Sth Aw Jno CEMEnU "UM ONSOM MEAL M M46EMNA COU16E E onstrd detour will begin in Spring 2020. • #et/ e utilizes Highway 7 to the west and County Road 115. Accbusinesses will be signed and maintained during construction. • The detour route adds 6.5 miles and will add approximately 6-7 minutes of travel time. Find project information and sign up to receive email updates at: mndot.lzovld8ldroiectslhwylSdowntownhutch o-a a7 I O W kA Ax. Z ❑0 2ndAve h6ll Walk:ing[vn Aye E T _. 1 st IIVet: W zLU C C. Znd Ave SE r Le, 41 EL+ C O N ❑ a, Q nq ¢ ❑ ° v « U CD vi V i+ O D ❑��� N C V L-0 CL0 c:3 y c ° aoVr —3aJC°=v, H 4 3 M N inn Ln a-+ ❑ Y L 3 Q ° ❑ Q L C y C GJ Ln rl W N -0 OJ t N ti T m E nJ.,v3oNo CL C 7 w Qlo C qJ Ln ° ; UWL aJ MO U @ Q-L ..0 N .❑ '--� fro ♦- 2 rV 0- N h ti u ME �Mo-0y C U r6 3 C so Ul LJ -y cJ °i V, — E 3 �=oy� C y Z tLLp m L E a cr cc Q (U 0 L a) � L m H ❑ m _ a 3 0 . w ai +{++ W E L L � C N G Q c m L � q1 G1 0J 'w ♦- 0 -0 W a m 27 ago E J L ❑ V v N �..� ❑ W. V P6 u 3 z n D � c +' Q 'm w "0 C N C a rn rn 1 W LLZ 00 WI v A CJ tq v 2nd Ave Ig'. Pk `••` ;` ist Ave WE •, fAl r �r Washington Ave E �... V, ra 4 Mr IV, rivi r►�i�-- 1 •" 1 u - fa V 2nd Ave NW - ca Flw R a IIPW r 0 15 I�i� ►fir +Mf I i Eo Eo d ~■ '' ' 1st Ave NE s Washington Ave E T LJ.J f . Rrf u F�: � 0 mil- C >= C 0 m 2nalbe gE fui Q - L Ar u L Y r 0 m c� 1 4 M..r r w IF V- I IA .� a F yr• . • t • ! t� d 1' 1st Ave IdE L r 4 m a M1 \MMMMMMMN� Washington Ave E ° u �6 ■ r� t^wCL i fll E 1� IINN a n C l st Ave SE _ w Q c u ► r a ry L .a Q co F � � m A Sri ELn Q �• ,, .tLn a L r r i 3rd Abe -SE: yX•. Q 3 r W k O v a • • rn r rn I 0 W kA 1 St AAveSE a E ` J � _ L G_ '3 L � m 6 m 2nd Ave 5E Y �� fcl as � �y c - � ! in E IN ` • Im G G w jF h Avers E °c � a Q a *. U 5th Ave SE p- rn m � c ro m � V N N � 10 W Q Q L o m WASHINGTON AVE E�r _ t � 1111#1111 1 1STAVE NE I r a u m W Q J Q U w Q w C7 U LU z F C)\U x W 7 m V 00 r F iY r J_ Q H W Q Z w w d H Z D W x 0 Q co Kent Exner From: Steve Cook Sent: Friday, April 05, 2019 12:46 PM To: Kent Exner; Karl Weissenborn Cc: Matt Jaunich Subject: Pillars - Misc Follow Up Flag: Follow up Flag Status: Flagged Kent and Karl, One other thing I noticed on the pillars is it doesn't say anything about the color of the brick or concrete base & cap. We know the brick will be the yellowish brick similar to the library and band shell, but don't know what that is called. Also, it might be nice to have the cap and/or base to be a complimentary color - perhaps the hazelnut. The PAC is going to talk about that at our next meeting and I can let you know, but if you have any thoughts feel free to pass them on. Karl, I found a chart on-line listing strength of different grades of steel bolts and if looked like a 5/8" grade 2 bolt has a clamp load of over 9,000 pounds and we will have four bolts in an approximate 9" circle. Granted am not an engineer, but that seems to be more than what we need so hopefully we can go with something less (for example a 1/4" grade 2 bolt has a clamp load of 723 pounds). Kent, per your request at at Thursday's meeting, this is the timeline that we will be included in the RFQs that we will be putting out for the artists. I hope to get them sent out/posted the first part of next week. Thanks and have a nice weekend! Steve Anticipated Project Timeline: May 0, 2019: RFQ's due May 13, 2019: Finalists notified Week of June 10, 2019: Finalist interviews June 21, 2019: Artist selected July, 2019: City's grant application due (awards announced in early September) September, 2019: City of Hutchinson Final Project Approval October, 2019— February, 2020: Design development February —August, 2020 Fabrication September, 2020 Delivery & Installation 5 Pro' ect Neighborhood Meeting Notice Letting No. 1/Project No. 20-01 T1415/Main Downtown Reconstruction Project T jrisr, da_v, Mery 30th ♦ 5: 00 PM to 7: 30 Phil (no presentation —arrive anytime) Hutchinson Cite Center (111 Hassan St. SE - Council Chambers) INTRODUCTION The City of Hutchinson would appreciates the opportunity to review with you (and other private property owners/representatives) the upcoming State Trunk Highway 15/Main Street improvements project to be administered by the Minnesota Department of Transportation and the City of Hutchinson. At this time, the project is anticipated to start in the spring of 2020 with the goal of it being substantially completed during the fall of 2020. The intent of this meeting is to provide a general project review and discuss the private property sewer/water utility services. There will be some initial information regarding property special assessments associated with this project provided at this meeting. PROPOSED PROJECT IMPROVEMENTS The proposed roadway and utility reconstruction area consists of Highway 15 from 5t' Avenue South to 2" d Avenue North ("downtown"). This project is a direct result of MnDOT and the City working for several years to develop the proposed project and secure necessary funding. The project will consist of a full reconstruction of the roadway surface, complete utility replacements/upgrades, signing/striping, traffic signals, street lighting, sidewalks, streetscaping and restoration. Unfortunately, the work required to accomplish this extensive project will not be completely funded by Mn/DOT and require additional City funding. At this point, the proposed project area has been established, but the details of the anticipated improvements are subject to change depending on MnDOT and City determinations and/or funding limitations. SEWER & WATER UTILITY IMPROVEMENTS - Service locations - Service sizing - Multiple services - Unique situations - Future costs & risks - Assessment ramifications - deferrals w/interest HEARINGS/PROCESS This Neighborhood Meeting is the first step in the process. This meeting will be an informal discussion regarding the project with City staff, to get preliminary information regarding what the project is proposed to include and to receive a very preliminary estimate of what assessments may be. Due to the project being in a fairly early stage, these estimates may be fairly broad. This informal discussion will allow individual questions/comments to be heard and for a general review of the project to occur prior to the first official hearing required by project assessment procedures. Please note that more than one of these City utilites/assessments related meetings may be administered depending on necessity and that MnQ0T will be administering overarching communitylbusiness project development meetings also. The first official hearing, the Public Hearing, is anticipated to occur at a City Council meeting in August or September of 2019. All properties proposed to be assessed will receive a mailed notice. This meeting will be televised and is the formal presentation of the proposed project to the Council. Public input time is included and welcomed at this meeting. Approval at this hearing does not mean that the project will be constructed as presented. This will be the point at which a formal decision will be made by the City Council as to whether or not staff should continue the assessment process and move on to the next step of completing the plans/specifications documents with the understanding that actual bids for completing the work will be requested. The second official hearing, the Assessment Hearing, would occur at another City Council meeting after receiving the bids (scheduled for November of 2019). Staff would prepare final assessment amounts for each property, and send them out in advance of the meeting. At this hearing, property owners will then be given the opportunity to comment on the merits of both the project and the proposed amount of the assessments. Questions, thoughts and concerns regarding the project or associated assessments would be heard by the City Council, and official action on whether or not to award the City's portion of the project work for construction would be taken. To formally contest an assessment, a writtentsigned objection letter must be provided to the City Administrator prior to or at the Assessment Hearing. This action then allows you, the property owner, to appeal an assessment to District Court pursuant to Minnesota Statutes Section 429.081 by serving notice of the appeal upon the Mayor or City Administrator within 30 days after the adoption of the assessment (typically the Assessment Hearing date) and filing such notice with the District Court within ten days after service upon the Mayor or City Administrator. ASSESSMENTS As described above, this project is considered to be a full reconstruction project, thus a portion of the total cost of these improvements will be assessed to the adjacent private properties. Similar to the TH 7 Reconstruction, TH 15 Roundabout and Adams & Washington Reconstruction projects, this work is being administered primarily by another agency (MnDDT), but a significant portion of the overall cost is being incurred by the City. Thus, improvement special assessments are a justifiable and fair funding alternative to accomplish the proposed work. At this time, City staff estimates that adjacent properties' assessments will include all or a portion of the following items: ■ General/Streetscaping Assessment o $28.00 per lineal foot of frontage (approximate $601FF rate decreased by $321FF credit for 2005 streetseaping project) • Water Service Assessment 0 1" to 2" diameter -approximate $2,500 per service line 0 4" to 6" diameter - approximate $3,500 per service line • Sanitary Sewer Service Assessment o 6" diameter — approximate $2,500 per service line SCHEDULE & CONSTRUCTION ITEMS As previously mentioned, construction is anticipated to start in the spring of 2020. The project should be substantially completed within one construction season (weather dependent) with fmal restoration and landscaping must likely occurring during the following spring. Also, project staff will be contacting specific property owners to request permission (right -of -entry form) to properly install utility services and construct an associated grading match to your lawn/landscaping features. GENERAL INFORMATION Please feel free to contact Kent ExnerlCity Engineer at 234-4212 or keme ci.hutchinson.mn.us if you have any questions, comments or concerns that you would like addressed. Please note that City Engineering Department staff would be willing to meet at your property to further discuss the proposed improvements. Thank you for your time and consideration! i o � � 7 4 p � � Z 8 r0r 1 = 1 }g yUj r+f 3 x � x a � z uS 6 LJ• W !fin I� S I 1g, N W 1 N i g� a 1 00Be C �f 1° S' [ Q � M U n I[ o $ V 2 x x i N WN 7 Q A r7 �F ' s 1 RIX JA � 1 i I; II �I I [: [ II � N o0 8 ■ o rA L$ 11 x = o is 1J a _ = I V � r � � y U o x w � 'I 1 y gig r 7 d N I 1 II � L" m |§ | �! |§27 : ' 00He | �} � ; ; e ■� @ _ § $� 2 — k/( � ■ _ - � 2 e Nab � ®_ � | � |4 � ` �. � � |■ ! � § k � � , ! t � � � ||� ||| §®-� | ) | � 0050 | � � e ■� § )&§ , � - § Olt" )1h ! I � � § � � » , ,- �� �|� 0000 a=Q i� n g .� � M U V V 2 �QQ Q 1 I a�� f� � tpaag 6 x I� �pm]ryuvLLi I L� o I _sue I W I G I N J p>�wgpaW w o�o$u$.a $wow i ILI I 4 b � r - wa S S 6 O i r LA04 R ni - Fa: bL v Vl � FY� W lgr E�. =fig z k ~6 zi . j L--- ---- ---- --- s L'liL �re co ��kW U s a; iv ~~1 1 I I I I I I I I I I � I I I I I I I I ti a I I I I I I I I I I h q . I - I ! ! I s — I I I 0 t7 rnp•S.aal unld un�sn�\sua�unEd wo;sn�\>S-+dW\6wr�ao M\u6sp-wlla.��-F.V\s;cJ,.-uGsp-wiEa,, rs_p\L1Y�yl\8E17 uW\W\L�h\S hid 62E 6IO2/1I/2 '#old Rlaa_�a WA Id=E 6IO2/EE/r� dnoS .g�NO 5 M 41 I Iff E�gig. goo NEH z .9 Sz W 0 �z a W rnp �yL w > o W LLI w oQo-� w co r `3 Q m Bgits z x i is /.X .£ Eli 4 Hill 3w: 9 .5 „LZ �`� 0- $off pQ ¢w Of Z 1LLD /1 Ip Q a T 33 jyi E 3 N . w igF LL W J ~ � a W ~ ❑ w z LL Lail N w 1 I _ �� ���� �� 1 z w D U ° a L� F 9 Q OC Q s sr.is sarM rr3mrK ,nnaxi 131132 :JU HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Discussion on Amending "Chicken Ordinance" Department: Administration LICENSE SECTION Meeting Date: 4/23/2019 Application Complete Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff Communications, Requests Time Requested (Minutes): 10 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Mayor Forcier has asked for a discussion with the rest of the City Council on the City's "chicken ordinance" or city code 93.40 which is attached. Current city code only allows for chickens within an area zoned for agriculture, which currently does not exist. BOARD ACTION REQUESTED: Discussion only. No action at this time Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Hutchinson, MN Code of Ordinances TITLE IX: GENERAL REGULATIONS 1 CHAPTER 93: ANIMALS 1 ANIMALS AND FOWL ANIMALS AND FOWL TITLE IX: GENERAL REGULATIONS 1 CHAPTER 93: ANIMALS l ANIMALS AND FOWL 1 § 93.40 DEFINITIONS. § 93.40 DEFINITIONS. For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. ANIMALS. Includes farm animals and all other animals, reptiles and feathered birds or fowl except dogs, cats, gerbils, hamsters and caged household birds. FARMANIMALS Cattle, horses, mules, sheep, goats, swine, ponies, ducks, geese, turkeys, chickens, guinea hens, honey bees and mink. (2004 Code, § 93.40) (Ord. 13-0705, passed 4-9-2013) TITLE IX: GENERAL REGULATIONS 1 CHAPTER 93: ANIMALS I ANIMALS AND FOWL 1 § 93.41 KEEPING RESTRICTIONS. § 93.41 KEEPING RESTRICTIONS. It is unlawful for any person to keep or harbor any animal, not in transit, except: (A) Farm animals kept in that portion of the city zoned for agricultural purposes; (B) Animals kept in a laboratory for scientific or experimental purposes; (C) Animals kept in an animal hospital or clinic for treatment by a licensed veterinarian; or (D) Animals present at events or otherwise kept at the County Fairgrounds. (2004 Code, § 93.41) (Ord. 13-0705, passed 4-9-2013) Penalty, see § 10.99 American Legal Publishing Corporation TITLE IX: GENERAL REGULATIONS 1 CHAPTER 93: ANIMALS 1 ANIMALS AND FOWL 1 § 93.42 TRANSPORT RESTRICTIONS. § 93.42 TRANSPORT RESTRICTIONS. It is unlawful for any person to transport animals unless they are: (A) Confined within a vehicle, cage or other means of conveyance; (13) Farm animals being transported in the agricultural portion of the city; or (C:) Restrained by means of bridles, halters, ropes or other means of individual restraint. (2004 Code, § 93.42) (Ord. 13-0705, passed 4-9-2013) Penalty, see § 10.99 TITLE IX: GENERAL REGULATIONS f CHAPTER 93: ANIMALS 1 ANIMALS AND FOWL 1 § 93.43 TREATMENT AND HOUSING. § 93.43 TREATMENT AND HOUSING. (A) Treatment. It is unlawful for any person to treat any animal as herein defined, or any other animal, in a cruel or inhumane manner. (B) Housing. It is unlawful for any person to keep any animal as herein defined, or any other animal, in any structure infested by rodents, vermin, flies or insects, or inadequate for protection against the elements. (2004 Code, § 93.43) (Ord. 13-0705, passed 4-9-2013) Penalty, see § 10.99 TITLE IX: GENERAL REGULATIONS / CHAPTER 93: ANIMALS 1 ANIMALS AND FOWL 1 § 93.44 TRESPASSES PROHIBITED. § 93.44 TRESPASSES PROHIBITED. It is unlawful for any person to herd, drive or ride any animal over and upon any grass, turf, boulevard, city park, city sidewalk or trail, cemetery, garden or lot without specific Permission therefor from the owner. (2004 Code, § 93.44) (Ord. 13-0705, passed 4-9-2013) Penalty, see § 10.99 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Discussion on sending a Council Member to the Transportation Alliance Fly -In Department: Administration LICENSE SECTION Meeting Date: 4/23/2019 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff Communications, Requests Time Requested (Minutes): 10 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Back in February when we meet with the County Board, there was a brief discussion about sending a council member to Washington D.C. in June for the Transportation Alliance "Fly -In". That event is scheduled for June 18-20 and if there is a desire to send a council member there, formal action will be required. Depending on airfare costs, the total trip cost would likely be between $1,000 to $1,500 per person. If there was a desire to send someone to this event (additional details have been included), I will have action on your next agenda for consideration. The deadline to register is May 20. BOARD ACTION REQUESTED: Discussion only. No action at this time 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: Matt Jaunich From: Margaret Donahoe <margaret@transportationalliance.com> Sent: Wednesday, April 17, 2019 11:06 AM To: Matt Jaunich Subject: Action in Washington - What Does it Mean for Transportation L 1RANSPORTATION ALLIANCE Honoring The Past, Embracing The Future 2019 Washington, D.C. Fly -In Tuesday, June 18th, 2019 - Thursday, June 20th h tt os 7//www. tra n soo rta ti on al lia nrQ. cpm leve n t12019-washi nWn-4 c-fly June 1s, 2019 3:30 PAN Event Check -in Washington Plata 4:00 PM Welcome & Speakers Reception following June 19, 2019 7:30 AAA Breakfast With MN Delegation RO.VbVrrl BUjldirl4 0:00 AAA Appointments Lunch on your own 4:30 PM Reception us i .5ena)e Uyi ding 5:00 PM Baseball Nationals vs Phillies Nationals Park June 20, 2019 7:30 AM Closing Breakfast Washington Plaza 10:00 AAA Tour Library of Congress 12:00 PAN Room Check-out Bag storage available Join Us in Washington, D.D. and Make a Difference for Federal Funding in Minnesota! REGISTER TODAY! 2 The FAST Act will be Expiring Congress is developing new infrastructure and transportation investment plans. This is an important time to visit our Minnesota Congressional Delegation and let them know about important Transportation Projects and needs in Minnesota. Register Today h ttns;//www.tca n sa nrtatio n a I I iance. roml.event/2019 -wa sh i nktan-d c-fly We will be happy to set up appointments for you with your representatives and staff Join Your Colleagues for the 2019 Washington, D.C. Fly -in and help make a difference in federal transportation funding! 525 Parts St., Sle, 2401 Saint Paul, MN 55103 16611659-08041 Fax 6611659-9009 Email: inargilrei ihlr31i5norEali61L1lIlaf�cC.cOrtl».Ira rt5[7dA8liOsiAllia [Ce.cOrii Sin Up Today - Hotel Rooms are filling upl Minnesota Transportation Alliance 525 Park Street, Suite 240 Saint Paul, MN 55163 transportation aliiance.com 651-659-0804 Unsubscriae i Privacy Policy fan erad k 3 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: VFW Post 906 - Amend Liquor License Department: Administration LICENSE SECTION Meeting Date: 4/23/2019 Application Complete Y, Contact: Marc A. Sebora Agenda Item Type: Presenter: Marc A. Sebora Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Pete Stoltenow, Commander of the VFW Post 906, has submitted a request to amend the VFW's liquor license to include consumption of alcoholic beverages outdoors at designated picnic tables located next to the building. Hutchinson City Code states that "It is the responsibility of the license holder to advise the City Council of any substantial remodeling of the premises, including, but not limited to, any enlarging, alteration or extension of the premises." Although this modification is not substantial, the consumption of alcoholic beverages will be extended outside of the building and therefore the request is before the Council to amend the liquor license to include the outside area. A schematic is included indicating the designated outside area. Mr. Stoltenow has indicated that the outdoor area will have fencing around it as well. The Hutchinson Police Department is aware of this request and does not have any concerns. This request is similar to the authorization given to Sonora's and Bobbing Bobber Brewery for their outside dining/drinking area. BOARD ACTION REQUESTED: Approve amending liquor license to VFW Post 906 located at 247 1st Avenue SE in Hutchinson, Minnesota, to extend alcoholic beverage consumption area to outdoor picnic tables as designated. Fiscal Impact: $ 0.00 Funding Source: 0 FTE Impact: 0.00 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: UlC r^ i- r HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Prince of Peace Rezoning - 306, 316, and 326 Franklin St. SE Department: Planning LICENSE SECTION Meeting Date: 4/23/2019 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Dan Jochum Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Prince of Peace is requesting a rezoning to accommodate the Senior Housing project that was recommended for approval by the Planning Commission. The three lots on the NE portion of the block are recommended to be rezoned from R-2 to R-4. R-4 Zoning is required to build apartment buildings. Nobody from the public spoke at the public hearing for the rezoning. Staff recommends approval of the request. BOARD ACTION REQUESTED: Approval of First reading the ordinance to rezone property. 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.8330 ORDINANCE NO. 19-799 AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, TO REZONE PROPERTIES AT 306,316 AND 326 FRANKLIN ST SW FROM R-2 (MEDIUM DENSITY RESIDENTIAL) TO R-4 (HIGH DENSITY RESIDENTIAL) AS REQUESTED BY PROPERTY OWNER 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 interest of the City to rezone the property from R- 2 (Medium Density Residential) to R-4 (High Density Residential): Section 2. That the property to be rezoned to R-4 (High Density Residential) is described as follows: Lots 1, 2 and 3, Block 31, Townsite Hutchinson South Half, Hutchinson, MN Section 3. This ordinance shall take effect from and after passage and publication. Adopted by the City Council this 14th day of May, 2019. ATTEST: Matthew Jaunich, City Administrator Gary T. Forcier, Mayor HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Recreation Center Gymnasium Roof and Wall Upgrade/Improvement Project Department: Parks LICENSE SECTION Meeting Date: 4/23/2019 Application Complete N/A Contact: Mary Haugen/Doff Moon Agenda Item Type: Presenter: Mary Haugen/Doff Moon Reviewed by Staff New Business Time Requested (Minutes): 10 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The Facilities Committee has been working with the Engineering/Architectural firm ISG to create plans and specifications for the Recreation Center roofing and exterior wall upgrade/improvement project. The original intent of this process was to identify options and cost estimates for replacing the original roof (1985), which has had extensive repairs over the years attempting to keep moisture out. During various inspections by city staff and our consultants, deficiencies in the existing cement block walls, side-lites and steel sheeting were identified. This lead to an expansion of the scope of the project to include options to prevent further moisture infiltration and damage from occurring, especially where the roofing material transitions to the sidewalls. Over time, moisture has continued to create problems with the roof insulation and it has extended down into the sidewalls, causing interior paint adhesion to fail. We have included the plans and specifications that the team has created. The plans include new roofing, insulation, interior ceiling liner and covering the existing exterior walls with a new facade. The committee believes that these improvements are necessary and will help protect and preserve the building envelope for the next generation of use. The "Probable Cost Estimate" for the project is $991,257. The facility fund currently has this amount reserved for this project to be completed in 2019. If we were to accept the winning bid and award a contract, we anticipate that this project would begin as soon as the aquatic center swimming season is over. We anticipate construction to continue through September and October, allowing winter season activities to begin in November. A part of the project includes the removal of the entire automatic fire sprinkler system within the gym portion of the building while doing the interior truss bracing, insulation, and ceiling liner work. Because of this required work, the gym will unavailable for use. For this project to move forward, your approval is requested to send out an advertisement for bids. City staff will be available at the meeting to answer any questions. BOARD ACTION REQUESTED: Approve/Deny sending out an Advertisement for Bids for the 2019 Recreation Center Gymnasium Roof and Exterior Walls Upgrade/Improvement Project. Fiscal Impact: $ 991,257.00 Funding Source: Facilities fund FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 991,257.00 Total City Cost: $ 991,257.00 Funding Source: Facilities fund Remaining Cost: $ 0.00 Funding Source: PROBABLE PROJECT COST SUMMARY for Hutchinson Recreation Center Hutchinson, MN Bldg. SF: 15,800 CONSTRUCTION DOCUMENTS PHASE I&S Project Number: 18-22464 Revision Date: April 12, 2019 SUMMARY: Division 1 - General Requirements Fkate Construction CGst - Actual Construction Cost Cost / SF - - Division 2 - ExisUng Conditions & Demolition 13 200.00 0.84 ,Division 3 - Concrete - $ - ,Division 4 - Mason 195000.00 12.34 Division 5 - Metals 224400.00 14.46 Division 6 - Wood and Plastics - - Division 7 - Thermal and Moisture Protection 313 500.00 19.84 division 8 - Doors and Windows - $ - Qivision 9 - Finishes 59 500.00 3.77 Division 10 - Specialties - 3.23 Division 11 - Equipment - - Division 12 - Furnishings - - Division 13 _ Special Construction - - Division 14 - Conveying Systems - - Division 21- Fire Suppression 51 000.00 3.23 Division 22- Plumbing - - Division 23 - HVAC - $ - Division 26 - Electrical - $ - Division 27 - Communications - $ - Division 28 - Electronic Safety & Security - $ - Division 31 - Earthwork - - Division 32 - Site Im rovments - - Division 33 - Utilities Construction Co5t Subtotal - $ 860,600.00 $ General Re uirernents Startup / Mobilization $ 13 600.00 Unload Trucks 4,080.00 Bonds 15,540.00 Site Conditions / Sheltering 22,200.00 Field Toilet 833.00 Field Office 2 220.00 Storage Trailer 888.00 Clean U 6,800.00 Cleaning Service 5,550.00 Rubbish Roll -off Containers 3,996.00 Project Mana erment / Meetings 27 200.00 Contingencies OAO°Io - - To $ 5f1.98 Other Costs Sdentiiied By Owner Permiting & Inspections $ 11,100.00 $ 0.70 Testing / Special Inspections $ 16,630.00 $ 1.05 P• • • �� $ - fi2.74 T_R001 RI ,�~~~ r,nvxL ASSEMBLIES, BID ALTERNATES (DSOUTH, DEMOLITION ELEVATION r.-\NORTH DEMOLITION ELEVATION DEMOLITION SECTION SHEET NOTES WALLLEGEND M U KEYNOTE LEGEND ILO OR QEAlTDEMOLITION ELEVATION T 0 ,-.-\WEST DEMOLITION ELEVATION TARAI UTCHINSON RECREATION CENTER REROOFAND FACADE IMPROVEMENTS DEMOLITION ELEVATIONS. TYPICAL DEMOLITION Al.11 I O, - WALL LEGEND SHEET NOTES ----- ------- UEM U.ATDoRE — — — — — — — — — — — — TAIAI T- - -- - -- - -- : 11 UTCHINSON — — — — — — — — — — — -- — — — — — — — — — — — — — — — — — — — — — RECREATION CENTER REROOFAND FACADE IMPR OVEMENTS TS 11T111N .1ITA — — — — — — — — — — — — — — — — — — — -- FIRST FLOOR 'PA�FLOOR PLAN PLAN Al-21 CEILING FINISH SCHEDULE SHEET NOTES �N TAIAI Pao LITCHINSON RECREATION CENTER REROOFAND FACADE IMPROVEMENTS 1-11-N .1NNHITL ..j FIRST FLOOR REFLECTED Iu jf��FLOOR REFLECTED CEILING PLAN CEILING PLAN Al-31 UE­ N".ATDORE017 —LLLLLLLLLLLLLLLLL --- LLLLLLtqll�— —LLLLLLLLL —LLLiii-LL ----------- I I I I I TAIA Pao UTCHINSON RECREATION CENTER REROOFAND FACADE IMPR OVEMENTS 11-IN .1NN-TA LLA UgULAN ROOF PLAN Al-71 0 0101TH-oELEVATION U ins=, 0 0 EID fo yo u. jo oW E. 0 0 0 0 +5 o ao d 0EAST ELEVATION ins=,-o 1 0 0 o ' r o o O ORTH ELEVATION o� o 0 � v° . o ° E° E°o . —^ f OO O OWEST ELEVATION 0 HUTCHINSON RECREATION CENTER REROOFAND FACADE IMPROVEMENTS EXTERIOR ELEVATIONS A2.11 7 f T-1 T 1111 ALOL T I W��` T 11 J�AL�L A� 4 14 0 4 0 UTCHINSON RECREATION CENTER REROOFAND FACADE IMPROVEMENTS 1-11—N .1NN—TA. T I A�L T INAL 7 1V OL 4 0 _T� L 1e 22- -T T ILOOR JIOLOR _TJloL00Rq 110L 0 0 0 0 I I R 0 loo 0 WALL SECTIONS C, )N (D1WALL 12 1 0SECTION (D�JWALL SECTION 4 WALLOSEC ION _1_10 0 A3-21 2 A &J I -Al �DETAII PLAN DETAIL o 20 rA I T 01 1WA�LL o w 1 EAVE DETAIL &1NALL TRANSITION DETAIL N DETAIL Vw,oaP�oE @_TRANIITION DETAIL 1 1 , -,00,1 &1AIE, DETAIL 1 r TO -EAD"AM' DETAIL ILOOR,� AlE D �ETAIL 1 , &OUVER DETAIL 1 _1 , MCA T T 0 WIL CDT_RANIITION DETAIL 0 A L �L OTRANIITION DETAIL 1 1 , I GTRAN11TION DETAIL 1 1 , To @_9_HD HEADIIA111 DETAIL 1 1 , TARAI -k- Pao 1 UTCHINSON RECREATION CENTER REROOFAND FACADE IMPROVEMENTS 1-11-ON .1NNHOTA 1 22111 DETAILS A3.31 HUTCHINSON RECREATION CENTER REROOF AND FACADE IMPROVEMENTS HUTCHINSON, MINNESOTA ISG P ROJ ECT # 18-22464 � ..•—SY:� � + IyI PROJECT GENERAL NOTES SHEETINDEX .: aEo��a�.� wrom�ariox oa .: aEo��a�.��.�o�A.po.�oa TAIAI N�O�p-k— �E ABBREVIATIONS n_, ..a..v_.. `.`.____l_., ® .... ` w--eaaaep MATERIALS KEY 0 od���.�.o ..x���n��� TAGS AND SYMBOLS p , I 5 e�evnaox ��e�waaox xuMeev (B)—� �rea.aaE I VIEW NAME Ea��P.E....PE a aria°—i EHNI1 E�rvnriox mnrEaw�rvvE al�E .o �. w�wLLw o.x uoo�. W Z of M =os �.,�o WIN ao�EHUTCHINSON RECREATION CENTER REROOF AND FACADE IMPROVEMENTS 22- PROJECTINDEX: OWNER: HUTCHINSON PARKS, RECREATION, AND COMMUNITY EDUCATION HAL GEN 900 HARRINGTON STREET HUTC HI NSON, MINNESOTA 55350 320.587.2975 PROJECT ADDRESS: HUTCHINSON RECREATION CENTER 900 HARRINGTON STREETPAUL HUTCHINSON, MINNESOTA 55350 MANAGING OFFICE: ST.MARV E ALP_A �e«.sem. onexE n TITLE SHEET, SHEET INDEX, PROJECT GENERAL NOTES xE� G 1 -1 0 CODE DATA PLAN KEY ExR ® .o moEowrwxuw FIRE SUPPRESSION NOTES ovExueEo o.�..o cowx�ErE orxEv a.xE�w: o�.xE:.A.E o� HUTCHINSON m RECREATION CENTER REROOFAND FACADE IMPROVEMENTS E_ CORE DATA PLAN CODE DATA AND -0. CODE DATA PLAN N GI.21 HUTCHINSON RECREATION CENTER REROOFAND FACADE IMPROVEMENTS STRUCTURAL NOTES Witoll �i■ nacH a�raa� --- ------- Nrwc-� e� �rra s �-bi servvw wiwnnso�w or�eaowN Pw �w p' e�aeus a�mry-nppueo seaia�� P-1 Rms�e ve,aea ARCHITECTURE . ENGINEERING . ENVIRONMENTAL . PLANNING f v in WWW.IS-GRP.COM HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Approve/Deny sending out an RFP for a City Marketing and Branding Initiative Department: Administration LICENSE SECTION Meeting Date: 4/23/2019 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff New Business Time Requested (Minutes): 10 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Back in January, the City Council had a discussion on creating a marketing plan for the City. At that time, it was noted that with the new high school project, Tiger Path and the new aquatic center being completed, along with the workforce needs of the community and expanding rental housing availability, the City should start working on a marketing campaign to promote the community and attract new residents and young families. A proposed RFP was reviewed at the last meeting and some minor changes were made to the RFP and is in front of you for consideration. I have included an edited version showing where the changes were made and a "clean version" to be sent out to prospective companies. Dates have also been included and are in front of you for your review. If the Council is comfortable with what has been drafted, staff would ask the council to approve sending out the RFP. As noted at the last meeting, there is no financial commitment from the City currently at stake and would not be until a vendor/company is selected. BOARD ACTION REQUESTED: Approve/Deny sending out an RFP for a City Marketing and Branding Initiative. 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: Request for Proposals City Marketing and Branding Initiative General Instructions Responses submitted must provide complete information as indicated in this request. Please submit eight (8) print copies and one electronic copy by 4:00 p.m. on Friday, May 31, 2019 to: City of Hutchinson Attn: Matt Jaunich 111 Hassan Street SE Hutchinson, MN 55350-2522 Questions and inquiries regarding this request should be directed to: Matt Jaunich City Administrator 111 Hassan Street SE Hutchinson, MN 55350-2522 (320) 234-4241 Email to: mjaunichkci.hutchinson.mn.us DO NOT call members of the Hutchinson City Council with questions about this RFP. All inquiries should be directed to the designated staff member. The City will not reimburse any expenses incurred by Respondent(s) including, but not limited to, expenses associated with the preparation and submission of the response and attendance at meetings. The City reserves the right to reject any and all responses and to request additional information from any and all companies. Schedule (Tentative): April 26, 2019 — RFP available to interested parties May 31, 2019 — All proposals are due by 4:00 p.m. Month of June, 2019 — Evaluation of proposals and review of references (City may interview candidates) July 9, 2019 — Council direction to negotiate a contract with a vendor — Council Meeting July 23, 2019 — Council consideration of a contract — Council Meeting July 24, 2019 — Contract Begins Purpose of RFP The city of Hutchinson is seeking a qualified consulting firm to develop a community branding initiative for the city of Hutchinson (City) along with a marketing strategy to assist city staff and elected officials in promoting the city of Hutchinson to new residents and young families along with prospective businesses and developers, r-esiden4s,—and visitors. A part of this proposal shall include a study that provides insights regarding current perceptions of the City and help to drive the recruitment of new residents and young families; business ..,,....elier a*d fete ; energize current residents and instill a sense of pride of the community; and position the City as a desirable place for relocation and redevelopment to increase new resident attraction and economic growth and new fesi ent .,,4.,e fie„. Background The City of Hutchinson is an outstate regional center located about 60 29 miles west of the Twin Cities metro area, with approximately 14,200 residents. As the "economic hub" of McLeod County and south-central Minnesota, Hutchinson has a labor market area around 36,000. With over 30% of the workforce in Hutchinson being employed in manufacturing, we are known as Minnesota's Manufacturing City. While manufacturing drives the local economy, Hutchinson is also home to Ridgewater College, Hutchinson Health, and a variety of national retailers, making it a hub of health care, education, and retail to go along with manufacturing. The Hutchinson community is bucking the trend of many outstate Minnesota cities in that we are experience growth within the community. After some years of stagnant population growth attributed to the Great Recession, our population has been increasing and is now above pre -recession levels. Over the last three years we have had roughly 90 new homes built; 58 new rental units built with another 221 units to be constructed over the next three years; a new high school; a new outdoor aquatic center; a new manufacturing company; and total new investment within the community exceeding $130 million has prepped the community for more growth. However, with changing demographics, like many communities, our local businesses and industries have workforce needs and our incoming school enrollments are forecasted to continue a slow decline. 41 demandE4theeemmtmi , Known as a great place to raise a family with a high quality of life, the City made 2417 Wall Street/USA Today's list of America's 50 best cities to live (942). The City wants to capitalize on this designation and "recruit" more young families and residents to town to help meet local workforce needs, increase school enrollment and continue general community growth. SPECIFICATIONS OF THE RFP Responses to this Request for Proposal (RFP) should provide the City with the information needed to assess, evaluate, and select a consultant based on prior experience, qualification, methodology, and approach, and worked performed in similarly sized communities or in local government in general. The City is interested in updating its logo and nth establishing a community branding initiative for the City, along with the establishment of a marketing campaign to promote the City and "tell our story" in a way that are effective in attracting new families and residents. There are three main goals for this initiative: 1) Update the city logo, which is over 25 years old, to better reflect the community. 2) Develop a community branding initiative for the city of Hutchinson. 3) Develop a marketing campaign that uses various outlets to help promote the community to our targeted audience(s). 2 In an effort to achieve these goals, the selected firm shall consider the following objectives (but are not limited to): a) Uniformity — The brand should convey a common message and image to audiences both within and outside of the city of Hutchinson. A defined message that will market the City locally, statewide, nationally and internationally as a great place to live, work, shop and do business; the right place for new families and young professionals. development, r-edevelepi%eiit and ti rl; Win, b) Community Identity/Pride — Both the brand and city logo should identify and promote what makes the city of Hutchinson distinct and appealing as an outstate regional center for new families, young professionals, investors, businesses, retailers, and visitors, an -eside t . c) Community and Economic Development Promotion — Promote a healthy economy, attract private investment, new residents and young professionals, and retain key businesses and creative talent. d) Flexibility — The brand and updated city logo must be flexible and adaptable in order to meet the needs of a variety of departments and municipal functions within the City, including the use on social media. The marketing strategy should also be flexible enough to be effective across multiple Medias. e) Endorsement — The brand and logo must be authentic and resonate with citizens, businesses, and community groups within the city of Hutchinson. f) Community Engagement — The city of Hutchinson is interested in engaging the community in all aspects of this initiative. Those who have a stake in the community will be encouraged to participate. ELIGIBILITY The consultant should specialize in project management, research, marketing, and creative design as it relates to development of a community brand. To be eligible to respond to the RFP, the consultant must demonstrate that it is a firm with significant experience with community branding, logo design, and community marketing. Priority will be given to those firms that have experience with local governments and which can show positive results. The city of Hutchinson desires to issue a contract to a single qualified consultant to lead the project. Consulting proposals based on a consortium approach where more than one firm will provide support within a consulting team are acceptable with a single project manager. SCOPE OF WORK Project Management — This project will be a "first" for the city of Hutchinson and city staff and elected officials will be looking for guidance from the selected consultant on the type of project that is best for the City. The consultant will lead all aspects of the city of Hutchinson community marketing, logo redesign, and branding initiative, including the following: 1) Advisory to the Steering Committee (to be determined) — This team will be composed of City and community leaders. Meetings throughout the process will be required. 2) Lead for various focus groups comprised of residents and business owners to determine existing attitudes, perceptions, opportunities and challenges to enhancing the City's image. 3) Facilitator during the research process and/or testing of the new brand and logo - Include descriptions of community engagement efforts that will take place during this process. The City has a very involved and engaged community. The consultant will be expected to employ creative means of public involvement to ensure that multiple segments of the community are aware of and involved in the project. 3 4) Research — Research will be the basis for the development of a brand concept, creative elements, messaging/positioning and the overall brand initiative. The consultant will create and implement a brand and marketing research plan, which will include qualitative and quantitative research with key people to identify the following: a) List of key stakeholders, groups, or influential individuals, as well as a cross section of citizens and business owners in the city of Hutchinson and those outside of the city that have a vested interest in the branding, logo and marketing initiative and need to be involved in the process. b) The key elements of the city of Hutchinson c) Analysis of current efforts and existing creative elements such as logos, tag lines, and creative designs. d) Measures that will be used to determine if the branding and marketing effort is successful. 5) Strategic Plan — The consultant will develop strategic objectives that will include implementation, management and ongoing promotion of the brand to include, but not be limited to the following: a) Promotion of the use of the brand among many city of Hutchinson and community agencies, groups and businesses while maintaining brand integrity. b) Maintenance and consistency of brand image and messaging while providing suitable flexibility for the target audiences of the participating agencies. c) Recommendation of ways to articulate the brand; define markets and promotional avenues; and advise on strategies to better promote and create brand awareness. 6) Creative/Development of Brand — The consultant will develop creative elements that include design concepts, logos, messages, taglines, and other products to support the overall brand initiative. A minimum of three distinct creative options must be presented, based on the results of the research. The selected logo design (including the possibility of the current logo) will be delivered with a style manual and guidelines for use and the capability of use in the following: a) Print and electronic advertising b) Website design c) Media placement d) Public Relations e) Events f) Templates 7) Marketing Plan — The consultant will develop a multi -media , see m marketing plan that will be used to attract new families, residents and businesses to the community. The consultant will advise the City in the marketing plan (targeted or broad) that is most beneficial. 8) Implementation Plan — The consultant will develop an action plan for implementation of the brand and marketing plan in sufficient detail to allow the Steering Committee to understand the approach and work plan. An Action Plan should include, but not be limited to the following: a) Estimated costs/budget associated with the implementation process. b) Proposed timelines for development of creative elements. c) Recommended positioning logo and brand guidelines. d) Implementation plans for brand identity applications and brand identity maintenance plan. 9) Evaluation Plan - The consultant will develop a plan for ongoing evaluation of the brand's effectiveness and reporting of results of the strategy to the Steering Committee, key stakeholders and the public. 4 SPECIFIC PROPOSAL PREPARATION INSTRUCTIONS Proposals should be as thorough and detailed as possible so that the City may properly evaluate the capabilities of the firm to provide the required Services and Results. The firm shall submit one (1) original and seven (7) copies of their proposal along with one (1) electronic copy. Respondents are required to submit the following items for a complete proposal: 1) A description of the firm's capabilities and experience conducting similar plans. Include a description of the firm, its organizational structure, location of the principal office and the location of the office that would manage this project. 2) A summary of professional qualifications and experience of the individuals the firm would assign to the project and their individual project responsibilities. Indicate whether these individuals have worked together on previous projects. Indicate each individual's current commitment, availability to start this project and percentage of time that they will be assigned to complete their project tasks on this job. 3) Specific plans or methodology to be used to perform the services with timeline proposed for each phase of the project. Include a description of community engagement efforts included and deliverables proposed. 4) Estimated timeline for completion through implementation. 5) Names, addresses, telephone numbers, and e-mail addresses of clients for which the firm performed projects of a similar type and size within the last five years with reference letters, and awards received. Describe in detail, each projects outcome and the process your firm used to achieve those outcomes. 6) A work sample of a completed project(s) that is representative of the work proposed for the City and any positive results of past marketing efforts for a government agency. 7) Proposal Lump Sum Fee (not -to -exceed) for this project. Provide a detailed cost for each phase of the project, including but not limited to, the number of meetings with stakeholders, travel expenses, and document production costs. 8) Proposed engagement agreement with terms and conditions. EVALUATION CRITERIA Proposals will be evaluated by the City using the following criteria: 1) Qualifications and experience of the firm and individuals to be assigned to this project in providing requested services. 2) Specific plans or methodology to be used to perform the services. 3) Costs 4) References from other clients. 5) Quality of illustrative examples. 5 6) All qualified submissions received by the deadline will be analyzed by the City according to the criteria outlined in this RFP. Failure to comply with the provisions of the RFP may cause a proposal to be rejected. 7) The City shall be the sole judge of the proposals, and the resulting negotiated agreement that is in its best interest, and its decision shall be final. MISCELLANEOUS Hold Harmless: The Contractor is required to hold the City harmless from any liability for personal or property damage, including any and all legal costs. Insurance: The Contractor shall carry Public Liability Insurance including coverage of all motor vehicles of $1,500,000, bodily injury of $1,500,000, and property damage of $1,500,000; and the City of Hutchinson shall be a party insured in said policies. Oversight: All work performed by the Contractor under the contract shall be under the oversight of the Hutchinson City Administrator or his designees. Independent Contractor: The Contractor hereby acknowledges that it is an independent contractor and neither it nor its employees or agents are employees of the City. The contractor shall agree to pay all necessary Federal Social Security taxes and all State and Federal taxes required by law and at its own expense will cover all of their employees with workman compensation insurance as required by law, and shall deliver such policies to the city of Hutchinson. The Contractor shall also agree to comply with all of the laws of the State of Minnesota and the United States of America regarding the employment of persons. Proposals Public Data: Data submitted by the Contractor to the City in response to this Request for Proposal will become property of the City and is not public data until the proposals are opened by the City. Once the proposals are opened, the name of the Contractor is public data. All other data in response to this Request for Proposal is private or nonpublic data until completion of the evaluation process. Right to Reject Proposals: The City reserves the right to reject any and all proposals, and furthermore, reserves the right to waive any informality in proposals at the discretion of the City Council. This RFP does not commit the City to enter into a contract, nor does it obligate the City to pay for any costs incurred in preparation and submission of proposals or in anticipation of a contract. Questions and inquiries regarding this request should be directed to: Matt Jaunich City Administrator 111 Hassan Street SE Hutchinson, MN 55350-2522 (320) 234-4241 Email to: mjaunichkci.hutchinson.mn.us *End* 0 Request for Proposals City Marketing and Branding Initiative General Instructions Responses submitted must provide complete information as indicated in this request. Please submit eight (8) print copies and one electronic copy by 4:00 p.m. on Friday, May 31, 2019 to: City of Hutchinson Attn: Matt Jaunich 111 Hassan Street SE Hutchinson, MN 55350-2522 Questions and inquiries regarding this request should be directed to: Matt Jaunich City Administrator 111 Hassan Street SE Hutchinson, MN 55350-2522 (320) 234-4241 Email to: mjaunichkci.hutchinson.mn.us DO NOT call members of the Hutchinson City Council with questions about this RFP. All inquiries should be directed to the designated staff member. The City will not reimburse any expenses incurred by Respondent(s) including, but not limited to, expenses associated with the preparation and submission of the response and attendance at meetings. The City reserves the right to reject any and all responses and to request additional information from any and all companies. Schedule (Tentative): April 26, 2019 — RFP available to interested parties May 31, 2019 — All proposals are due by 4:00 p.m. Month of June, 2019 — Evaluation of proposals and review of references (City may interview candidates) July 9, 2019 — Council direction to negotiate a contract with a vendor — Council Meeting July 23, 2019 — Council consideration of a contract — Council Meeting July 24, 2019 — Contract Begins Purpose of RFP The city of Hutchinson is seeking a qualified consulting firm to develop a community branding initiative for the city of Hutchinson (City) along with a marketing strategy to assist city staff and elected officials in promoting the city of Hutchinson to new residents and young families along with prospective businesses and developers. A part of this proposal shall include a study that provides insights regarding current perceptions of the City and help to drive the recruitment of new residents and young families; energize current residents and instill a sense of pride of the community; and position the City as a desirable place for relocation and redevelopment to increase new resident attraction and economic growth. Background The City of Hutchinson is an outstate regional center located about 60 west of the Twin Cities metro area, with approximately 14,200 residents. As the "economic hub" of McLeod County and south-central Minnesota, Hutchinson has a labor market area around 36,000. With over 30% of the workforce in Hutchinson being employed in manufacturing, we are known as Minnesota's Manufacturing City. While manufacturing drives the local economy, Hutchinson is also home to Ridgewater College, Hutchinson Health, and a variety of national retailers, making it a hub of health care, education, and retail to go along with manufacturing. The Hutchinson community is bucking the trend of many outstate Minnesota cities in that we are experience growth within the community. After some years of stagnant population growth attributed to the Great Recession, our population has been increasing and is now above pre -recession levels. Over the last three years we have had roughly 90 new homes built; 58 new rental units built with another 221 units to be constructed over the next three years; a new high school; a new outdoor aquatic center; a new manufacturing company; and total new investment within the community exceeding $130 million has prepped the community for more growth. However, with changing demographics, like many communities, our local businesses and industries have workforce needs and our incoming school enrollments are forecasted to continue a slow decline. Known as a great place to raise a family with a high quality of life, the City made 2417 Wall Street/USA Today's list of America's 50 best cities to live (442). The City wants to capitalize on this designation and "recruit" more young families and residents to town to help meet local workforce needs, increase school enrollment and continue general community growth. SPECIFICATIONS OF THE RFP Responses to this Request for Proposal (RFP) should provide the City with the information needed to assess, evaluate, and select a consultant based on prior experience, qualification, methodology, and approach, and worked performed in similarly sized communities or in local government in general. The City is interested in updating its logo and establishing a community branding initiative for the City, along with the establishment of a marketing campaign to promote the City and "tell our story" in a way that are effective in attracting new families and residents. There are three main goals for this initiative: 1) Update the city logo, which is over 25 years old, to better reflect the community. 2) Develop a community branding initiative for the city of Hutchinson. 3) Develop a marketing campaign that uses various outlets to help promote the community to our targeted audience(s). In an effort to achieve these goals, the selected firm shall consider the following objectives (but are not limited to): 2 a) Uniformity — The brand should convey a common message and image to audiences both within and outside of the city of Hutchinson. A defined message that will market the City locally, statewide, nationally and internationally as a great place to live, work, shop and do business; the right place for new families and young professionals. b) Community Identity/Pride — Both the brand and city logo should identify and promote what makes the city of Hutchinson distinct and appealing as an outstate regional center for new families, young professionals, investors, businesses, retailers, and visitors. c) Community and Economic Development Promotion — Promote a healthy economy, attract private investment, new residents and young professionals, and retain key businesses and creative talent. d) Flexibility — The brand and updated city logo must be flexible and adaptable in order to meet the needs of a variety of departments and municipal functions within the City, including the use on social media. The marketing strategy should also be flexible enough to be effective across multiple Medias. e) Endorsement — The brand and logo must be authentic and resonate with citizens, businesses, and community groups within the city of Hutchinson. f) Community Engagement — The city of Hutchinson is interested in engaging the community in all aspects of this initiative. Those who have a stake in the community will be encouraged to participate. ELIGIBILITY The consultant should specialize in project management, research, marketing, and creative design as it relates to development of a community brand. To be eligible to respond to the RFP, the consultant must demonstrate that it is a firm with significant experience with community branding, logo design, and community marketing. Priority will be given to those firms that have experience with local governments and which can show positive results. The city of Hutchinson desires to issue a contract to a single qualified consultant to lead the project. Consulting proposals based on a consortium approach where more than one firm will provide support within a consulting team are acceptable with a single project manager. SCOPE OF WORK Project Management — This project will be a "first" for the city of Hutchinson and city staff and elected officials will be looking for guidance from the selected consultant on the type of project that is best for the City. The consultant will lead all aspects of the city of Hutchinson community marketing, logo redesign, and branding initiative, including the following: 1) Advisory to the Steering Committee (to be determined) — This team will be composed of City and community leaders. Meetings throughout the process will be required. 2) Lead for various focus groups comprised of residents and business owners to determine existing attitudes, perceptions, opportunities and challenges to enhancing the City's image. 3) Facilitator during the research process and/or testing of the new brand and logo - Include descriptions of community engagement efforts that will take place during this process. The City has a very involved and engaged community. The consultant will be expected to employ creative means of public involvement to ensure that multiple segments of the community are aware of and involved in the project. 4) Research — Research will be the basis for the development of a brand concept, creative elements, messaging/positioning and the overall brand initiative. The consultant will create and implement a brand and marketing research plan, which will include qualitative and quantitative research with key people to identify the following: 3 a) List of key stakeholders, groups, or influential individuals, as well as a cross section of citizens and business owners in the city of Hutchinson and those outside of the city that have a vested interest in the branding, logo and marketing initiative and need to be involved in the process. b) The key elements of the city of Hutchinson c) Analysis of current efforts and existing creative elements such as logos, tag lines, and creative designs. d) Measures that will be used to determine if the branding and marketing effort is successful. 5) Strategic Plan — The consultant will develop strategic objectives that will include implementation, management and ongoing promotion of the brand to include, but not be limited to the following: a) Promotion of the use of the brand among many city of Hutchinson and community agencies, groups and businesses while maintaining brand integrity. b) Maintenance and consistency of brand image and messaging while providing suitable flexibility for the target audiences of the participating agencies. c) Recommendation of ways to articulate the brand; define markets and promotional avenues; and advise on strategies to better promote and create brand awareness. 6) Creative/Development of Brand — The consultant will develop creative elements that include design concepts, logos, messages, taglines, and other products to support the overall brand initiative. A minimum of three distinct creative options must be presented, based on the results of the research. The selected logo design (including the possibility of the current logo) will be delivered with a style manual and guidelines for use and the capability of use in the following: a) Print and electronic advertising b) Website design c) Media placement d) Public Relations e) Events f) Templates 7) Marketing Plan — The consultant will develop a multi -media marketing plan that will be used to attract new families, residents and businesses to the community. The consultant will advise the City in the marketing plan (targeted or broad) that is most beneficial. 8) Implementation Plan — The consultant will develop an action plan for implementation of the brand and marketing plan in sufficient detail to allow the Steering Committee to understand the approach and work plan. An Action Plan should include, but not be limited to the following: a) Estimated costs/budget associated with the implementation process. b) Proposed timelines for development of creative elements. c) Recommended positioning logo and brand guidelines. d) Implementation plans for brand identity applications and brand identity maintenance plan. 9) Evaluation Plan - The consultant will develop a plan for ongoing evaluation of the brand's effectiveness and reporting of results of the strategy to the Steering Committee, key stakeholders and the public. SPECIFIC PROPOSAL PREPARATION INSTRUCTIONS 4 Proposals should be as thorough and detailed as possible so that the City may properly evaluate the capabilities of the firm to provide the required Services and Results. The firm shall submit one (1) original and seven (7) copies of their proposal along with one (1) electronic copy. Respondents are required to submit the following items for a complete proposal: 1) A description of the firm's capabilities and experience conducting similar plans. Include a description of the firm, its organizational structure, location of the principal office and the location of the office that would manage this project. 2) A summary of professional qualifications and experience of the individuals the firm would assign to the project and their individual project responsibilities. Indicate whether these individuals have worked together on previous projects. Indicate each individual's current commitment, availability to start this project and percentage of time that they will be assigned to complete their project tasks on this job. 3) Specific plans or methodology to be used to perform the services with timeline proposed for each phase of the project. Include a description of community engagement efforts included and deliverables proposed. 4) Estimated timeline for completion through implementation. 5) Names, addresses, telephone numbers, and e-mail addresses of clients for which the firm performed projects of a similar type and size within the last five years with reference letters, and awards received. Describe in detail, each projects outcome and the process your firm used to achieve those outcomes. 6) A work sample of a completed project(s) that is representative of the work proposed for the City and any positive results of past marketing efforts for a government agency. 7) Proposal Lump Sum Fee (not -to -exceed) for this project. Provide a detailed cost for each phase of the project, including but not limited to, the number of meetings with stakeholders, travel expenses, and document production costs. 8) Proposed engagement agreement with terms and conditions. EVALUATION CRITERIA Proposals will be evaluated by the City using the following criteria: 1) Qualifications and experience of the firm and individuals to be assigned to this project in providing requested services. 2) Specific plans or methodology to be used to perform the services. 3) Costs 4) References from other clients. 5) Quality of illustrative examples. 6) All qualified submissions received by the deadline will be analyzed by the City according to the criteria outlined in this RFP. Failure to comply with the provisions of the RFP may cause a proposal to be rejected. 5 7) The City shall be the sole judge of the proposals, and the resulting negotiated agreement that is in its best interest, and its decision shall be final. MISCELLANEOUS Hold Harmless: The Contractor is required to hold the City harmless from any liability for personal or property damage, including any and all legal costs. Insurance: The Contractor shall carry Public Liability Insurance including coverage of all motor vehicles of $1,500,000, bodily injury of $1,500,000, and property damage of $1,500,000; and the City of Hutchinson shall be a party insured in said policies. Oversight: All work performed by the Contractor under the contract shall be under the oversight of the Hutchinson City Administrator or his designees. Independent Contractor: The Contractor hereby acknowledges that it is an independent contractor and neither it nor its employees or agents are employees of the City. The contractor shall agree to pay all necessary Federal Social Security taxes and all State and Federal taxes required by law and at its own expense will cover all of their employees with workman compensation insurance as required by law, and shall deliver such policies to the city of Hutchinson. The Contractor shall also agree to comply with all of the laws of the State of Minnesota and the United States of America regarding the employment of persons. Proposals Public Data: Data submitted by the Contractor to the City in response to this Request for Proposal will become property of the City and is not public data until the proposals are opened by the City. Once the proposals are opened, the name of the Contractor is public data. All other data in response to this Request for Proposal is private or nonpublic data until completion of the evaluation process. Right to Reject Proposals: The City reserves the right to reject any and all proposals, and furthermore, reserves the right to waive any informality in proposals at the discretion of the City Council. This RFP does not commit the City to enter into a contract, nor does it obligate the City to pay for any costs incurred in preparation and submission of proposals or in anticipation of a contract. Questions and inquiries regarding this request should be directed to: Matt Jaunich City Administrator 111 Hassan Street SE Hutchinson, MN 55350-2522 (320) 234-4241 Email to: mjaunichkci.hutchinson.mn.us *End* 0 HUTCHINSON CITY COUNCIL CityafA Request for Board Action Agenda Item: Approve Direction for Preservation of City Plat Maps in Council Chambers Department: Administration LICENSE SECTION Meeting Date: 4/23/2019 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff New Business Time Requested (Minutes): 10 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: Back in November of 2017, the City Council had a discussion on preserving the historic city plat maps located in the council chambers. At that time, the council reviewed a proposal from the McLeod County Historical Society to preserve the plats. The cost to preserve those maps was around $300. There was some discussion at that time in regards to donating the maps to the Historical Society. The Council was not clear on whether or not they would be willing to donate the maps. There was some desire to keep the maps at City Center but place them in a system that is conducive to preservation. Since that time, City staff has been pursuing options for a storage system here at the City. Ideally, a full room should be created to preserve all of our important documents. A project like that would ideally be done when the city remodels the City Center. In the mean time, we found a preservation cabinet that could be purchased and used to store important documents like the plat maps (about $6,000). What staff is seeking direction from the council on is which route to go. Do you want us to donate the maps to the Historic Society, have them preserve them in a manner that we would be allowed to keep them, or do we purchase a storage system. Previously a clear direction was not given from Council to staff. Attached for your consideration is the proposal that was presented to the City back in 2017 from the McLeod County Historical Society. We have also included some information on the storage system that we could purchase (Mid - America Business Solutions). BOARD ACTION REQUESTED: Approve/Deny Direction to City Staff on the preservation of the City Plat Maps in the Council Chambers Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: City of Hutchinson Plat daps: The McLeod County Historical Society and Museum would like to let the Council know that the two original town plat maps of Hutchinson, MN may be damaged by the following in their current location and display methods: • Ultra Violet rays from interior lights -this will overtime fade the printing on the paper and it will disappear_ • Hanging Stress from gravity -hanging the maps on the wall adds stress to the fibers of the paper and over time the paper will tear at the stress points. • Acidic Exposure -Adhesives ❑r other mounting/framing techniques can cause the paper to dry out and become brittle overtime due to the migration of acid from one item pressed against the maps. • Temperature and Humidity Fluctuation -Although I would have t❑ take readings over a year at day and evening intervals to know if the maps could be suffering ill effects from this, paper is very susceptible to damage with the fluctuation of temperature and humidity. The more stable and constant the temperature and humidity can be kept throughout the year the aging process of the paper can be slowed. McLeod County Historical Society and Museum staff would recommend the following steps to ensure the prolonged life of the ❑riginal Hutchinson Plat Maps: Remove the Plat Maps from their current frames/mats, being tremendously careful and aware that any adhesive products that may have been used need to be removed using paper conservation methods. • High Resolution, (1200 t❑ 2400 dpi) scans or photos of the Plat Maps should be taken and along with their history, provenance information, measurements and a detailed condition report should be taken to prevent handling and regulate their preservation plan in the future. • Create a custom Mylar enclosure that is at least two inches wider than the actual document and allows for air circulation and uses no adhesive, creates no holes or damage of any sort to the maps. (Rule of thumb, never do anything to a piece that cannot be undone.) • The Encapsulated Maps should then be placed in acid free boxes or custom made envelopes. I would recommend two metal edge acid free boxes, stored flat in a dry temperature and humidity controlled space. Currently when artifacts like the Plat Maps are donated to the Museum, the Museum will cover all supply and labor costs to do the above_ The Maps would then be stored in our archive that can be accessed by the public via our research library, or the images and history via our online website and in-house database. As a thank you to the donor, Museum staff will create a digital copy ❑f the image for the donor's personal use.. If the donor wishes to retain the original, the Museum will take a high resolution scan or photo of the artifact for our records and to share with the public. The Museum will do the preservation work for the donor at a cost for supplies and labor. The cost to preserve the two Hutchinson Plat maps would be: • Mylar with breathable enclosures ❑n three sides-$50.00 • Two Acid Free Metal Edge boxes-$180.00 • Shipping-$20.00 • Labor to remove from the frame/matting and custom encapsulation-$40.00 Total Cost: $290.00 If you have any questions, please feel free to contact me via email ❑r phone below: Lori Pickell-Stangel MCHS Executive ❑irector 320-587-2109 asa@hutchtel.net Recommendations and Guidelines for Preservation Damage Caused by Displays Acidic Storage: "Some of the deterioration that items in storage suffer is caused by the acids and other harmful substances in the containers, supports, and mounts that are used to protect them. These harmful substances migrate from storage materials into the items, causing such problems as discoloration, corrosion, and embrittlement. For example, discoloration caused by an acidic window mat can disfigure and hasten the deterioration of a drawing on paper that has been matted and framed." -Storage Containers, Supports, and Mounts. Conservation Office of MNHS Light Damage: "Any exposure to light, even for a brief time, is damaging, and the damage cannot be reversed. Although all wavelengths of light are harmful, ultraviolet (UV) is particularly harmful. One of the most common sources of UV is the sun. Certain types of lamps, such as fluorescent tubes, also emit high amounts of UV energy and should be avoided. If they cannot be avoided, they can be filtered with relatively inexpensive plastic filtration films that reduce UV emissions." -80sic Preservation Considerations. How Much Light Is Too Much? Conservation Office of MNHS Proper Storage Boxes or Drawers: "Oversize materials, such as maps and large prints, are best stored flat in the drawers of map cases or in large covered boxes. Place the items in folders, and cut all the folders to fit the size of the drawer or box. Allow adequate room where oversize materials are stored to remove them safely from drawers or shelves, and make sure there is a place to put them down once they are removed." -paper: Oversize Items. Conversation {office of MNHS Acid -Free: "Folders, envelopes, tissue, and papers for interleaving sheets should be lignin-free and made of chemically stable fibers. The board for boxes should also be lignin-free and chemically purified. The board used for matting drawings and other sorts of items should be a 100 percent cotton or linen rag board or an otherwise lignin-free, chemically purified conservation mounting board. Tapes for making mats, folders, and boxes should be chemically stable, non -staining, and free of damaging components if possible. Such materials commonly are described as acid -free. It is important to be aware that not all paper based materials are acid -free. Standard museum preservation practice maintains, however, that only acid -free materials should be used." -Storage Containers, Supports, and Mounts: Poper-Based Storage Materials Should Be Acid - Free. Conservation Office of MNHS Substitutions "Substitution works especially well for paper items. While all materials are susceptible to the environmental and security hazards presented by display, paper is particularly vulnerable. Many items made ❑f paper are easy to copy, and thanks to new technologies, the copies look similar to the original. Some examples follow: • High -quality laser color copiers produce excellent substitutes of documents, newspapers, book pages, and some art on paper. If the substitute is made on a sheet of paper that is similar in texture to the original, it is even more convincing. Check your telephone directory for a copy service in your area. • A substitute of a photograph can be made from the original negative, if it is available and in acceptable condition, or from a copy negative, if that is available. If not, it can be made from the original print. This latter alternative will give you a copy negative to keep for future use. ❑ften a local photographer can do this. * Digital scanning technology also can be used to produce substitutes of documents, newspapers, book pages, photographs, and some art on paper. This technology allows the image to be manipulated in a variety of ways so that blemishes and evidence of Physical damage can be lessened if this is deemed appropriate." -Display: Use of Substitutions. Conservation Office of MNHS MID 4AWMIERICA BUSINESS SYSTEMS 2500 Broadway Street NE Minneapolis, MN 55413 Phone:(612) 378-3800 Fax:(612) 378-3100 WWW.MID-AMERICA.COM QTY Spacesaver Viking 920 Series Preservation Cabinet Proposal City of Hutchinson uate: 111 Hassan Street Se Hutchinson, MN 55350-2522 PO #: Contact: Prepared for: Expiration: JJ Verhey Matt Jaunich Terms: Taxable: if applicable DESCRIPTION Spacesaver Viking 920 Series Preservation Cabinet One 920 Series Preservation Cabinet 48" Wide x 36" Deep x 84" High Configured with: • Full steel panel double doors (not glass fronts) • Six heavy duty steel adjustable shelves (300 lb. capacity each shelf) • Six 3" full extension drawers • Viking 920 vent for airflow exchange (adjustable) • Closed cell seal around door closure • Hanson style recessed handles with key lock on front doors • Powder coat finish in Spacesaver standard color options • Delivery and placement into you facility • All work will be performed by Mid -America's factory trained, certified and insured technicians during normal working hours M-F 8 a.m. — 5 p.m. Subject to our credit department approval, this quotation is made for immediate acceptance and is subject to change without notice. Deliveries are subject to delays from fire, strikes, and other causes beyond our control. We reserve the right to correct clerical errors. Prepared by: Mark Sawinski Authorized Signature 4-5-19 Mark Sawinski 30 days Net 30 PER PRICE $5,637.00 Plus any state or federal taxes that may apply. Freight and Installation $300.00 Date 1 I Versatile Preservation Cabinet With a fully configurable interior and a sturdy, modular exterior, the 920 Series is designed to protect your collections now and into the future. S t o r a g e S o I v e dm BUILDING A SUSTAINABLE FUTURE Well -designed collections areas embody the concept of resilience: they're built to last while also being flexible enough to change. They continually preserve collections and they adapt to evolving circumstances, changing right along with new curatorial priorities, emerging guidance in classification, and advances in collections care practices. With the acquisition of the Viking Metal Cabinet Company in 2016, Spacesaver strengthened its commitment to providing resilient museum solutions. That commitment went far beyond simply adding Viking museum cabinets to our product line. It meant engaging with museum professionals, listening to their needs, and working to meet those needs. We understand that preservation and access are paramount: museums need cabinets with proven strength and durability. They also need flexibility because of the on -going need to accommodate new acquisitions, reorganize collections, and responsibly house items on temporary loan. That's why the Viking Preservation Cabinet is such an enduring investment in the future of your collections. Its interior can be configured and reconfigured as collections change, while its modular steel exterior is built to stand the test of time. BUILDING YOUR CABINETS When designing your ideal cabinet or collections area layout, it's always a good idea to start by considering the objects in your collections and the preservation conditions they need. It's also helpful to consult with staff who will be using the cabinets on a daily basis to determine their preferences for using the cabinets and accessing the collections. The goal is to optimize space and promote efficiency throughout the collections area and within the cabinets themselves. 1 -W "jam• 02 PRESERVATION AND ACCESS: DETERMINING EXTERIOR FEATURES Long known for their strength and durability, Viking museum cabinets are now offered as modular units that can be stacked, ganged, stationary, or mounted on mobile carriages or caster bases. This modularity takes some of the stress and guesswork out of planning collections areas because additional cabinets can be purchased in the future that will be fully compatible with existing units, with no wasted space. In addition to outside dimensions, a variety of options ensure that you'll be able to build a cabinet solution that suits the needs of your collection and your staff. From door types and handle styles to vents and bases, you can create cabinets that are as visually appealing as they are functional. CABINET DIMENSIONS The first step in building your cabinet is determining its dimensions, from counter -height to full -height and with several options in between. Counter -height cabinets can double as a work surface, and their modular design allows them to be safely and securely stacked at a later date. Full -height cabinets, on the other hand, are more cost-effective, with a lower cost per cubic foot. STANDARD OFFERING: - I WIDTH 30" DEPTH 181, HEIGHT 42" DOOR STYLE 36" 42" 24" 30" 60" 72" 48" 60" 36" - 84" 96" All Viking doors are designed to protect collections and promote convenience. Depending on the needs of your institution, you can choose solid doors, which provide security by concealing collection contents behind a steel barrier, or visual doors, which allow staff and visitors to view collections without disturbing objects or disrupting the preservation environment within the cabinets. 1� I n _ II A _ bL �. SOLID DOOR OPTION The timeless classic to provide security and durability. I I E� - Fil VISUAL DOOR OPTION UV -coated glass protects collections and allows for visual inspection. 03 0. Spacesaver HANDLE OPTIONS Access your cabinet with your choice of the classic Hansen D-ring handle or the modern Emka style. Both handles are flush with the surface of the door, providing a sleek appearance and the ability to mount the cabinets on compact mobile carriages. Emka Style Handle Emka ergonomic handles allow for easy operation while maintaining three-point latching. Also available with integrated combination lock to minimize number of keys. Hansen D-Ring Handle The D-Ring style handles feature a separate lock mechanism with three-point latching. A FLEXIBLE FUTURE The biggest challenge in planning a collections area is dealing with future uncertainty. Cabinets represent major investments and are expected to last for years, and yet their interiors are relatively fixed and unchanging. As a result, collections managers often find themselves locked into cabinet configurations that were chosen decades ago. Although it's still important to make an educated guess as to how collections will grow and change in the future, the 920's removable liners allow for a great deal of flexibility as time goes by. A 920 cabinet can be configured for two-inch trays today, and in ten or twenty years the liners and accessories can be removed and replaced with liners that support six-inch drawers, or even hanging rods and shelves. Optional dividers and half -width accessories create even more options. Type and Quantity of Collection: Do best practices call for trays, drawers, shelves, or rods? Vertical Density of Collection: If only a few accessories are needed, the corner post option is most cost-effective. Frequency of Collection Removal: Will entire trays need to be removed frequently for study, display, or reorganization? Frequency of Collection Relocation within Cabinet: Will trays or other accessories need to be moved frequently? Pf X r ALM n� 05 0. Spacesaver ACCESSORY OPTIONS Adjustable Shelves • 11/4" tall shelf • Mounted with (4) shelf clips • Standard Duty:100 lb. Capacity • Heavy Duty: 300 lb. Capacity • Available in full or half -width for dividers Textile Tray • Available with individual CIC track pair • Includes safety stops • Approximately 72% extension • Tray heights available in 4" • 1 5/16" rods adjustable within drawer Full -Height Center Dividers • Only available in 42" wide or greater Hat Shelf/Coat Rod • Standard adjustable shelf with 1" rod • Variable widths for use with dividers Full -Extension Drawers Standard Tray • Available with individual CIC track pair • Includes safety stops • Approximately 72% extension • Tray heights available in 2" and 4" • Available in full or half -width for dividers Garment Rod Desiccant Tray • Available with individual CIC track pair • Includes safety stops • Approximately 72% extension • Tray heights available in 2" • Available in full or half -width for dividers Rolled Textile Drawers • Mechanical slides for maximum extension Mounted with (4) shelf clips Mechanical slides for maximum extension • 3", 4", and 6" nominal height options Rod is not adjustable front to back 4" nominal height - Ability to mix and match sizes Available in full or half -width for dividers 1 5/16" rods adjustable within drawer Partial -Height Center Divider • Increments will be 6" • Only available in 42" wide or greater • Split the cabinet vertically to allow full - width trays to be used on bottom portion and halfwidthtrays on top portion. 06 ACCESSORY OPTIONS Adjustable Shelves • 11/4" tall shelf • Standard Duty:100 lb. Capacity • Heavy Duty: 300 lb. Capacity • Panels provide 2" tray adjustability • Available in full or half -width for dividers i_ Full -Height Center Dividers • Only available in 42" wide or greater Standard Tray • Includes safety stops • Approximately 72% extension • Tray heights available in 2" and 4" • Panels provide 2" tray adjustability • Available in full or half -width for dividers Partial -Height Center Divider • Increments will be 6" • Only available in 42" wide or greater • Split the cabinet vertically to allow full - width trays to be used on bottom portion and halfwidthtrays on top portion. Desiccant Tray • Includes safety stops • Approximately 72% extension • Tray heights available in 2" • Panels provide 2" tray adjustability • Available in full or half -width for dividers J— Textile Tray • Includes safety stops • Approximately 72% extension • Tray heights available in 4" • Textile rods adjustable on 1" centers • Panels provide 2" tray adjustability Full -Height Center Dividers • Only available in 42" wide or greater Standard Tray • Includes safety stops • Approximately 72% extension • Tray heights available in 2" and 4" • Panels provide 2" tray adjustability • Available in full or half -width for dividers Partial -Height Center Divider • Increments will be 6" • Only available in 42" wide or greater • Split the cabinet vertically to allow full - width trays to be used on bottom portion and halfwidthtrays on top portion. Desiccant Tray • Includes safety stops • Approximately 72% extension • Tray heights available in 2" • Panels provide 2" tray adjustability • Available in full or half -width for dividers J— Textile Tray • Includes safety stops • Approximately 72% extension • Tray heights available in 4" • Textile rods adjustable on 1" centers • Panels provide 2" tray adjustability 0. Spacesaver ACCESSORY OPTIONS Adjustable Shelves • 11/4" tall shelf • Panels provide 1" tray adjustability • Available in full or half -width for dividers Full -Height Center Dividers • Only available in 42" wide or greater Standard Tray • No safety stops • 100% removable • Tray heights available in 2" and 4" • Panels provide 1" tray adjustability • Available in full or half -width for dividers Half -Height Center Divider • Increments will be 6" • Only available in 42" wide or greater • Split the cabinet vertically to allow full - width trays to be used on bottom portion and halfwidthtrays on top portion. Desiccant Tray • No safety stops • 100% removable • Tray heights available in 2" • Panels provide 1" tray adjustability • Available in full or half -width for dividers STATIC, CASTERS, OR MOBILE Cabinets can be stationary, mounted on a caster base or forklift base, or mounted on compact mobile carriages. They can also be switched at a later date: stationary cabinets can be mounted on carriages, and carriage -mounted cabinets can be removed and set directly on the floor. Every 920 cabinet comes with a fully integrated leveling base, so even stationary cabinets are never resting directly on the floor. The optional forklift base accessory allows cabinets to be moved to a new location without damaging their structure. 1. Static shelving sections waste space between aisles. 2. Mobile sections double space by compacting aisles. DOUBLED CAPACITY 3. Maximize your capacity with additional carriages 09 0. Spacesaver EXCELLENCE IS STANDARD The 920 Series offers the Viking features you've come to know and trust over the years. From the integrated base to the watershield cap, every cabinet is designed from the ground up to protect collections and provide efficient, convenient access. Lmannei wan c: Our cabinets maintain a sealed h steel channel designed to house Lift -Off Doors Quick and convenient access, ideal for collections that are con- stantly growing or changing. UV Protected Glass Tempered and UV Protected glass ensures your collections. Adjustable Interior Easily configure cabinet interior and adapt as your needs change. Standard: Integrated Leveling Base Threaded Inserts With integrated top and side threaded inserts, cabinets come from the factory ready to be stacked or ganged side to side. Optional: Caster Base i 1 itersnieia crap :ect collections from water damage in case of rhead sprinkler deployment or malfunction. 35 Non -Off -Gassing Powder -Coat Paint Options Minimize deterioration risk with paint that provides a clean, durable finish. 3-Point Latching Reliable and secure system to keep collections safe. Optional: Forklift Base 10 THE SPACESAVER ADVANTAGE At Spacesaver, we know that new cabinets represent a significant investment. That's why we work hard to bring you the best value and unsurpassed customer service from your project's earliest planning stages to the final walk-through and ongoing routine maintenance. Our Wisconsin -based teams of in-house engineers, project managers, and manufacturing craftspeople are ready to work with you and your local Spacesaver consultant to design, build, and install museum cabinets and other enduring storage solutions that will stand the test of time. 800.255.8170 1 VIKINGMETAL.COM �Spacesaver Spacesaver Corporation 1450 Janesville Avenue Fort Atkinson, WI 53538-2798 800.492.3434 www.spacesaver.com 02019 Spacesaver Corporation. All Rights Reserved. Litho in USA. SSC/DEL 920product_0119_BROCH_MUS HUTCHINSON CITY COUNCIL Cityaf A� L� Request for Board Action 7S Approve/Deny Updated Employee Uniform & Clothing Policy and the Safety Clothing Agenda Item: and PPE Policy Department: Finance LICENSE SECTION Meeting Date: 4/23/2019 Application Complete Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff Governance Time Requested (Minutes): 5 License Contingency iN, Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: City staff is recommending updated policies for (1) Employee Uniforms & Clothing and (2) Safety Clothing and Personal Protection Equipment (PPE). These policies were last updated in 2003 and 2008. The main goal of the updated Uniform & Clothing policy is to comply with the IRS requirement to tax employees for the value of clothing provided by the City, such as jeans and polo/button-up shirts. Clothing that does not meet the IRS's definition of a "uniform" must be considered a taxable fringe benefit to the employee, with the tax based on the value of clothing provided. Police officer and Firefighter uniforms meet the IRS definition of a uniform and are not taxable. We currently provide jeans/pants to maintenance and other personnel, either on a reimbursement method or by direct purchase through the City's account at Runnings. This practice will no longer be acceptable. In it's place, staff is recommending a clothing allowance paid to qualifying employees to mainly address the purchase of jeans/pants. The allowance will be paid through the City's payroll function with appropriate taxes withheld. The allowance amounts identified in the policy have been determined after a detailed review of past purchases. We feel comfortable that employee purchases can stay within these allowance amounts given reasonable purchase prices and brands. The proposed clothing allowance should not have a material impact on departmental budgets. Since departments have already made their jeans/pants purchases in early 2019, the first allowance payments will not occur until January 2020. Additionally, employees who are provided polo or button -up shirts with the City logo must be taxed on the value of the shirts provided. The IRS does not consider a logo shirt as a uniform as it can be worn for general, everyday use. The updated Safety Clothing and PPE policy provides for those safety wear items necessary in performing employee work duties. Any items provided to employees within this policy are not considered a taxable benefit. If approved, the proposed policies would replace the current policies numbered 3.16 & 3.17. Both the proposed and current policies are attached for your review. BOARD ACTION REQUESTED: Approve the updated Employee Uniform & Clothing Policy and the Safety Clothing and PPE Policy. Fiscal Impact: Funding Source: 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 EMPLOYEE UNIFORM & CLOTHING POLICY POLICY OVERVIEW The City of Hutchinson recognizes the need to provide clothing and/or uniforms to some employees in order to prevent damage to personal items as a result of the work required for certain jobs as well as to help promote identification in the field. The purpose of this policy is to identify which clothing items should be provided to employees and to provide guidance for the appropriate acquisition of, or compensation for, such clothing. Personal Protective Equipment (PPE) is not considered as a uniform or clothing, as defined in this policy, and is separately addressed within city policy number 3.18. PPE will be provided by the City and is not a taxable benefit to the employee. INTERNAL REVENUE SERVICE (IRS) When an employer provides uniforms/clothing or pays uniform/clothing allowances, Federal tax laws, rulings and regulations stipulate that in order to be excludable from an employee's wages, the uniforms/clothing must be required by the employer and cannot be adaptable for general use. If both these conditions are not met, the value of the uniforms/clothing, or the amount of any allowance paid, must be recognized as compensation to the employee and subject to federal and state taxes. UNIFORMS Uniforms are excluded from taxes if covered by an accountable plan, as defined by the IRS, and are specifically required as a condition of employment. They cannot be worn or adaptable to general usage as ordinary clothing. The value and upkeep of uniforms provided to law enforcement officers and firefighters are not taxable to the employee. For the purpose of this policy, clothing with the official Police or Fire badge shall be considered an excludable uniform if it is required to be worn for work duties and is prohibited for wear outside of work. Those departments shall have separate policies addressing the issuance and maintenance of its uniforms. Administrative employees, or any other employees within the Police and Fire departments who are not required to wear an excludable uniform shall be subject to the Clothing section of this policy. CLOTHING The IRS mandates that clothing which can be adaptable for general use as ordinary clothing must be included as a taxable benefit to the employee. Simply having a City logo will not avoid the taxable benefit. Clothing necessary for employees to perform their duties will be divided into two categories, which are both taxable to the employee: Clothing with City Logo a. City departments will purchase the clothing and the employee will pay only the taxable benefit based on the value of the clothing received. b. Shall include the following logoed clothing: i. Shirts, sweatshirts and jackets ii. Hats or caps c. Purchases must be made for exact quantities to be distributed to identified employees. d. Each City department must coordinate clothing purchases with the Finance Department so that employees receiving the clothing can be taxed appropriately. e. Departments are not allowed to maintain an inventory of logoed clothing. f. One shirt provided to an employee is considered by the IRS to be a de minimis benefit and therefore exempt from taxes. g. Safety wear items with the City logo and any clothing with the official Police or Fire logos are excluded from this policy. 2. Clothing without City Logo a. To be purchased by the employee using the employee's personal funds. b. Shall include the following non-logoed clothing i. Jeans and pants ii. Shirts, sweatshirts, hats and caps iii. Socks, belts and other miscellaneous personal items iv. Footwear not identified as PPE c. City purchasing powers shall not be used, including direct invoice, department purchasing cards and house accounts at local retailers. d. Employees will be reimbursed by a taxable clothing allowance as defined below. EMPLOYEE CATEGORIES: City employees will be classified in one of the following three categories when determining if a clothing allowance is necessary. See ExhibitA for a listing of employee positions within each category. 1. Category I: Field Services — Physical Work Includes positions that require the employee to spend most of his/her time in the field or in more industrial -type settings, performing physical work. As a result, the wear and tear on clothing is more significant than for other positions. There is also a need for recognition as a city employee (with a city logo) when in public. 2. Category II: Field Services — Public Contact/Less Intensive Physical Work Includes positions that require the employee to spend time in the field where public contact often occurs and/or performing work where some wear and tear on clothing is expected, but where the physicality of the role is not intense. For example, this may include engineers, laboratory employees, and building inspectors/officials. There may be occasional needs for recognition as a city employee (with a city logo) when in public. 3. Category III: Office/Administrative Includes positions that require employees to spend the majority of their time in an office setting. There may be occasional opportunities when recognition as a city employee (with a city logo) in public is helpful. CLOTHING ALLOWANCE From an administrative perspective, the least complicated method for obtaining such clothing and withholding applicable taxes is the payment of a clothing allowance to each eligible employee through the payroll function. The annual allowance amounts for each employee category are as follows: Full -Time Part -Time Temp/Seasonal Category I: $250 $125 None Category II: $150 $ 75 None Category III: None None None The clothing allowance rates identified above, which may be amended from time to time, shall be the maximum amount the City will provide to an employee in one calendar year for clothing. If employees need to spend beyond the allowance amounts for additional items, then the purchases will need to be made with personal funds or they can wait for the next allowance to be issued. ALLOWANCE PAYMENT Clothing allowance checks will be issued two times during the budget year, in the months of January and July, with each check at 50% of the allowance total. The check in January is intended to reimburse the cost of clothing purchases made between July 1 and December 31. The check issued in July is intended to reimburse the cost of clothing purchases made between January 1 and June 30. Allowances will be prorated for new employees with start dates that occur within the six-month allowance period. The proration will be based on the number of days employed within the six-month period. An employee changing City positions that affects the clothing allowance category shall receive a prorated allowance for the six-month period in which the transfer occurs. The proration will be based on the total number of days employed in each position during the six-month period. A clothing allowance shall be forfeited if an employee leaves employment with the City prior to the designated dates of June 30 or December 31. There will be no prorated distribution of the allowance. In the event of an employee retirement or death, a prorated allowance shall be paid. The proration will be based on the number of days calculated to the last day worked during the six-month period. EMPLOYEE RESPONSIBILITIES • Employees must purchase their clothing on personal time outside of working hours. • Employees shall be responsible for proper care, cleaning, alterations and repair of their clothing. • Taxable clothing items are considered property of the employee and may be kept after employment has ended. • The City will not track items purchased with the clothing allowance. Rather, the City is compensating the employee for assumed costs associated with his/her job, and the employee is responsible for purchasing clothing necessary to perform City work duties. • The employee may keep any unspent allowance as compensation. • Employees shall abide by the City's Personnel Policy regarding appearance when purchasing clothing. Exhibit A Clothing Allowance Categories Category I: Field Services — Physical Work Arborist Compost Coordinator Compost Equipment Operator Compost Laborer Engineering Specialist Equipment Mechanic Facilities Manager General Maintenance — Event Center Lab Technician/Wastewater Operator Maintenance Lead Operator Parks Maintenance Equipment Operator Parks Maintenance Specialist Parks Supervisor Plant Equipment Mechanic II Public Works Maintenance Operator Senior Engineering Specialist Senior Public Works Maintenance Specialist Senior Wastewater Operator Senior Water Plant Operator Wastewater Maintenance Operator Water Plant Operator Water/Wastewater Technician Cateaory II: Field Services — Public Contact/Less Intensive Phvsical Work Building Inspector PT Custodian — Event Center Building Official PT Recreation Facility Maint Technician Inspector Public Works Manager PRCE Maintenance Technician Wastewater Supervisor Project/Environmental/Regulatory Manager Water Supervisor Category III: Office/Administrative Administrative Secretary — Engineering Administrative Secretary - Public Works City Administrator City Attorney Compost Manager Compost Operations Specialist Economic Development Director EDA Intern/Administrative Technician Emergency Dispatcher - FT & PT Event Center Coordinator Executive Assistant/Paralegal Finance Director Human Resources Director Information Technology Director Information Technology Specialist Licensing Clerk FT/PT Liquor Sales Manager Motor Vehicle Deputy Registrar Parks/Recreation/Community Ed Director Payroll/Benefits Specialist Uniform Service Fire Chief Hospital Security Guard FT/PT Police Officer FT/PT Permit Technician Planning Director Police Administrative Specialist Police Investigative Specialist Police Supplemental Services Specialist PT Compost Scale Operator PT Human Resources/Admin Technician PT Liquor Sales Clerk PT Office Specialist - Event Center PT PRCE Receptionist PT Recreation Specialist/Concessions Coord. Public Works Director/City Engineer Recreation Facilities Operations Manager Recreation Services Coordinator Sales & Marketing Specialist Senior Accountant Senior Accounting Specialist Senior Liquor Sales Clerk Server/Network Technician Utility Billing Specialist Police Sergeant Police Lieutenant Police Chief/Emergency Management Director SAFETY CLOTHING AND PPE POLICY POLICY OVERVIEW Protective clothing and equipment (PPE) is required for all persons engaged in maintenance duties. This applies to full-time, part-time and seasonal employees in the following departments: Public Works (Streets, Engineering, Forestry, Cemetery, Water, Wastewater, Storm Water), Parks, Recreation, Civic Arena, Creekside, Building Inspections, Building Maintenance and Other Maintenance. PPE must be worn during working hours, based on the requirements for the specific job assignment. Directors, supervisors and employees are responsible for the proper use of PPE. PPE is not a taxable benefit to an employee since it is required by the City and cannot be adaptable for general use. PPE consists of two components; Employer supplied and Employer reimbursed. EMPLOYER SUPPLIED PPE The following PPE will be provided by the City and kept in each department. It is the responsibility of every department to assess the condition of each item and replace when necessary. • Hardhats, helmets, faceshields, etc. • Safety vests and/or other retroreflective apparel • Swimsuits for Aquatic Center lifeguards The following PPE may be provided by the City, depending upon specific work duties. It is the responsibility of the department director to approve the use prior to distribution to the employee. • Non-prescription safety glasses, safety goggles • Retroreflective vests, jackets, sweatshirts, raincoats and windbreakers • Insulated and Non -insulated coveralls and protective suits • Chainsaw safety apparel • Any other specialized PPE as approved by the department director Employer supplied PPE will be purchased using departmental purchasing methods. PPE, other than jackets, shall be housed in the department's facility and cannot be taken home, other than for repairs. A terminated employee shall return all employer supplied PPE to his or her department supervisor on the last day of work duties. It is the supervisor's responsibility to collect all applicable PPE. EMPLOYER REIMBURSED PPE The following PPE must be purchased by the Employee and submitted for reimbursement by the City. The City will reimburse the lessor of the actual purchase price or the maximum amount indicated within this policy. The type and/or need must be approved by the department director prior to purchase and reimbursement. ***.The original receipt must be submitted with all reimbursement requests *** • Safety Boots & Shoes —Employees are highly encouraged to purchase quality footwear for their own protection and comfort. The City will reimburse employees based on the following criteria: o Up to $175 for full-time employees, once every 12 months o Up to $175 for seasonal and temporary employees, once every 36 months • Insulated Winter Boots —The need for insulated boots must be approved by the department director. The City will reimburse employees based on the following criteria: o Up to $125 for full-time and part-time employees, once every 24 months • Safety Eyeglasses — the City will reimburse the following amounts for safety glasses: o Prescription Eyeglasses: ■ Up to $100 for full-time employees, once every 12 months ■ Up to $50 for part-time employees, once every 12 months o Non -Prescription Eyeglasses ■ Up to $40 for full-time employees, once every 12 months ■ Up to $20 for part-time employees, once every 12 months ■ Standard non-prescription safety glasses and googles supplied by the City may be substituted at the director's discretion o The cost of an eye exam is an employee expense. Employees shall inform their eye doctor that the safety glasses are needed for work. o Contact Human Resources for information regarding the Safety Eyewear program and local participating vendors. The program offers discounted prices for safety eyewear. CITY OF HUTCHINSON SAFETY FOOTWEAR & GLASSES REIMBURSEMENT CHECK PAYABLE TO: NAME: DATE: ACCOUNT: PLEASE CIRCLE ITEM FOR REIMBURSEMENT: SAFETY FOOTWEAR/FT SAFETY FOOTWEAR/SEASONAL & TEMP WINTER BOOTS SAFETY GLASSES/PRESCRIPTION/FT SAFETY GLASSES/NON-PRESCR./FT SAFETY GLASSES/PRESCRIPTION/PT SAFETY GLASSES/NON-PRESCRIPT AMOUNT REIMBURSED DIRECTOR'S APPROVAL The original purchase receipt must be attached. L\forms\safety boot or glass reimb.doc 3/6/2018 $175.00/YEAR $175.00/ 3 YEARS $125.00/ 3 YEARS $100.00/YEAR $40.00/YEAR $50.00/YEAR $20.00/YEAR Policy No. 347 3.16 CITY OF HUTCHINSON POLICY -PERSONNEL - UNIFORMS - MAINTENANCE PERSONNEL DATE 2003 NO. 3-47 3.16 (2 pgs.) SOURCE ADMINISTRATION Uniforms will be provided to all regular full time and regular part time employees of the following maintenance departments: cemetery, central garage, compost, engineering, park maintenance, wastewater, water, and streets. Upon initiation of this policy or upon hire, maintenance employees will be issued 5 sets of City uniforms. (**See attached addendum for departmental uniform distribution.) Uniforms that are provided to maintenance personnel for the City of Hutchinson are expected to be neat, clean, and in good repair when reporting for duty. Employees are responsible for the laundering and general upkeep of the uniforms issued to them by the City. Additional replacement uniforms will be issued by the City on a rotating schedule determined by the City. The City may also issue replacements for uniforms damaged beyond reasonable repair due to work related incidents. Uniforms that need to be replaced for other reasons (lost, damaged outside of work, etc.) will be replaced at the employee's expense. Upon termination of employment, employees are required to return the 5 sets of clothing currently issued to the employee. If not returned, the terminating employee will be responsible for the replacement cost of any missing uniform items. Each department is responsible for seeing to it that the uniform inventories are properly maintained and that employees follow this policy regarding uniforms. Addendum to City of Hutchinson Policy No. '173.16 Uniforms — Maintenance Personnel Departmental Uniform Distribution Cemetery 2 pair blue pants 2 long sleeve blue shirts with City of Hutchinson logo 2 short sleeve blue shirts with City of Hutchinson logo Central Garage 2 pair blue pants 2 long sleeve blue shirts with City of Hutchinson logo 2 short sleeve blue shirts with City of Hutchinson logo 1 black/yellow reflective jacket Compost 5 pair khaki pants 5 long sleeve green shirts with City of Hutchinson logo 5 short sleeve green polo shirts with City of Hutchinson logo Engineering 5 pair khaki pants 5 long sleeve green shirts with City of Hutchinson logo 5 short sleeve green shirts with City of Hutchinson logo HATS/Airport 1 pair blue pants 1 long sleeve blue shirt with City of Hutchinson logo 1 short sleeve blue shirt with City of Hutchinson logo 1 black/yellow reflective jacket Park Maintenance 5 pair blue pants 5 long sleeve blue shirts with City of Hutchinson logo 5 short sleeve blue shirts with City of Hutchinson logo Streets 5 pair brown pants 5 long sleeve orange shirts with City of Hutchinson logo 5 short sleeve orange shirts with City of Hutchinson logo Water/Wastewater 5 pair khaki pants 5 long sleeve green shirts with City of Hutchinson logo 5 short sleeve green shirts with City of Hutchinson logo Policy No. 349 3.17 CITY OF HUTCHINSON POLICY -PERSONNEL - SAFETY EYEWEAR/FOOTWEAR- REIMBURSEMENT DATE 1983; 1995; 2008 NO. 349 3.17 SOURCE COUNCIL APPROVED Protective clothing is required for all persons engaged in maintenance duties. This includes both full time, part time and seasonal employees in the following departments: Public Works (Streets - Cemetery - Water - Wastewater - Engineering - Forestry) - Parks - Recreation - Civic Arena - Creek Side — Building Maintenance - Other Maintenance. Hardhats, safety vests, steel -toed footwear and safety glasses must be worn during working hours, based on the requirements for the specific job assignment. Directors, supervisors and employees are responsible for their proper use. HARDHATS and SAFETY VESTS are provided by the City and kept in each department. Other protective equipment required by the city is reimbursed to full time, part time and seasonal employees at the following rate, but not to exceed 100% of total cost: STEEL TOED FOOTWEAR - SHOES $80/pair -or- BOOTS $125/pair. Reimbursement may be made once every 12 months. The type needed must be approved by the director in charge. INSULATED WINTER BOOTS $125/pair. Reimbursement may be made once every 24 months, except with the specific authorization of the director. The need for insulated boots must be approved by the director in charge. Employees are highly encouraged to purchase quality footwear (i.e. Carhartt, LaCrosse, Milwaukee, Red Wing, Rocky, etc.) for their own protection and comfort. SAFETY GLASSES Up to $100 for prescr. glasses, full time empl. once every 12 months. Up to $50 for prescr. glasses, part time empl. once every 12 months. Up to $40 for non-prescr. glasses, full time empl. once every 12 mos. Up to $20 for non-prescr. glasses, part time empl. once every 12 mos. NOTE: The cost of the eye exam is an employee expense. Tell the doctor the glasses are needed for work. Plastic safety goggles supplied by the City may be substituted at the director's discretion. Contact Human Resources for information regarding the Safety Eyewear program and local participating vendors. The program offers discounted prices for safety eyewear. EACH EMPLOYEE MUST PURCHASE REQUIRED EQUIPMENT AND PAY FOR IT. THE ORIGINAL RECEIPT MUST BE GIVEN TO THE DIRECTOR IN CHARGE, APPROVED BY THE DIRECTOR AND SUBMITTED TO THE FINANCE DEPARTMENT FOR REIMBURSEMENT ACCORDING TO THE ABOVE SCHEDULE. "This mid -year policy change will go into effect per Council action, but is subject to any 2007 budget limitations for each affected department. Employees should contact their director/supervisor prior to the purchase of reimbursable equipment with any questions and regarding available funds. Snow Removal -Ice Control by the numbers MARCH 2O19 2018 2017 2016 2015 2014 Days with operations 15 9 2 5 7 Actual snowfall (inches) 11.8 7.7 2.1 7.8 2.1 Average snowfall (inches) 8.7 8.7 8.7 8.7 8.7 8.7 Days with below 00 temps 8 1 1 2 3 Actual average high temp 35 38 41 49 45 33 Actual average low temp 17 23 24 31 24 17 Average high temp 40 40 40 40 40 40 Average low temp 21 21 21 21 21 21 City employees utilized 19 17 16 7 15 13 Contractors utilized 7 7 - - 5 Total personnel hours 670.25 401.50 187.50 27.75 268.50 192.25 City equipment units used 27 20 23 7 23 16 Contractor equipment units used 7 7 - - 6 - Total equipment hours 699.75 412.50 187.50 27.75 271.50 192.25 Gallons of fuel used 2,088.5 1,254.3 488.1 72.0 848.5 655.7 Salt brine used (gallons) 455.0 2,185.0 360.0 860.0 275.0 1,170.0 Sand -Salt used (tons) 52.5 190.1 39.0 69.0 58.1 159.5 De-icing salt used (tons) - 12.5 7.6 18.5 - 12.5 Personnel Equip High Low Operators hours Equip hours Salt brine Sand/Salt De-ice salt temp temp Precip Snow Date Description (ea) (hrs) (ea} (hrs) Fuel (gal) (gal) (ton) (ton} (F) (F) (in.) (in.) 03/01/19 Clean up & plow 10 39.50 10 39.50 96.00 65.00 - - 18 -9 0.12 3.00 03/02/19 Plow 15 75.00 17 75.00 282.64 290.00 28.40 - 15 -9 - - 03/03/19 -3 -24 - - 03/04/19 Plow & Removal 18 95.50 18 100.00 260.15 40.00 (12.90) - 8 -13 - - 03/05/19 Clean up & drifts 7 29.50 8 35.00 76.50 - - 15 -1 - - 03/06/19 Clean up & drifts 6 33.50 7 39.00 155.00 - - 20 -1 - 03/07/19 Clean up 5 34.50 7 40.50 136.00 - - 20 -7 - 03/08/19 Clean up 4 30.50 4 30.50 107.00 - - - 31 17 - - 03/09/19 Plow 14 86.00 14 86.00 257.84 - 55.90 - 35 30 0.45 5.80 03/10/19 Plow & sand 12 74.50 14 74.50 235.30 60.00 12.00 - 33 4 0.30 3.00 03/11/19 Clean up & removal 17 115.00 18 123.00 384.10 - 26 -3 03112/19 Clean up 7 42.50 7 42.50 55.00 (30.95) - 37 13 03/13/19 Clean up 1 &00 1 6.00 20.00 - - - 39 34 0.77 - 03/14/19 Clean up 1 3.50 1 3-50 10.00 - - 39 32 0.13 - 03/15/19 32 23 - - 03/16/19 30 18 - - 03/17/19 36 23 - - 03/18/19 Clean up 1 2.00 1 2.00 - - - - 36 23 - 03/19/19 41 30 - - 03/20/19 Clean up 1 2.75 1 2.75 13,00 - - - 45 32 - - 03/21/19 45 28 - - 03/22/19 46 28 - - 03/23/19 50 28 - - 03/24/19 50 30 - 03/25/19 41 27 - 03/26/19 48 27 - 03/27/19 61 39 - - 03/28/19 47 27 - - 03/29/19 46 26 - - 03/30/19 39 231 - 03/31/19 51 30 Month: 8 days below zero; Season: 39 days below zero Avg, season days below zero = 23 MARCH 24 670.25 28 699.75 2,088.53 455.00 52.45 35 17 1.77 11.80 Days with operations: 15 40 21 Avg temp Average month snowfall = 8.70 SEASON TO -DATE (OCT-MAR) 3,954.50 4,039.00 12,051.5 10,442.0 1,255.8 192.9 6.48 63.80 Average seaonsnowfoll= 40.00 Employee Department Primary role Nov. 2018 Dec. 2018 Jan. 2019 Feb. 2019 Mar. 2019 Apr. 2019 Total Burmeister, Jerome PW - Operations Route SWl 11.50 33.50 40.00 93.00 39.00 217.00 Dehn, Pete PW - Operations Route SW2 19.00 34.50 39.75 103.25 49.50 246.00 Fenske, Bruce PW - Operations Downtown 8.25 18.75 45.00 106.00 24.50 202.50 Herrmann, Cory PW - Operations Route SE1 26.75 42.75 86.25 18.75 174.50 Inselmann, Eric PW - Operations Alleys 15.25 25.00 61.50 17.00 118.75 Keller, Matthew PW - Wastewater Downtown E 11.25 12.00 35.75 17.50 76.50 Kent, John PW - Wastewater Backup operator 8.00 20.25 9.00 4.75 42.00 Maiers, Matthew PW - Operations Downtown, Snow removal 21.75 38.25 97.50 46.00 203.50 Navratil, Jim PW - Water Downtown W 11.25 6.50 49.00 18.00 84.75 Olson, John PW - Operations Airport 7.50 21.00 36.00 91.50 44.00 200.00 Schuette, Donovan PW - Operations Airport, Downtown 5.00 24.50 33.50 93.50 23.00 179.50 Schulte, Josh PW - Operations Downtown, dead ends 36.50 130.00 58.50 225.00 Thompson, DeNeil PW - Operations Route NWl 18.00 28.50 41.75 112.50 49.00 249.75 Thompson, Mitchell PW - Operations Route NE1 16.50 37.00 45.75 119.00 31.50 249.75 Trnka, James PW - Operations Cul-de-sac, dead ends 19.25 36.75 44.00 137.50 67.75 305.25 Carter, Randy PRCE Schools, PRCE, trails 14.00 25.00 112.00 23.00 174.00 Hutton, Chris PRCE Downtown, Schools, PRCE 22.50 35.00 131.25 35.50 224.25 Magnusson, Brian PRCE Schools, PRCE, trails 16.00 8.00 89.50 33.50 147.00 Mielke, Justin PRCE Schools, PRCE, trails 24.00 21.00 - 45.00 Schelitzche, Jay PRCE Downtown, Schools, PRCE 24.00 42.50 131.00 8.00 205.50 Contractor Hansen Gravel Dump truck 207 Snow removal 14.50 6.50 21.00 Hansen Gravel Dump truck 208 Snow removal 4.50 8.00 31.00 10.00 53.50 Hansen Gravel Dump truck 212 Snow removal 4.50 8.00 31.00 10.00 53.50 Hanson - Vasek Dump truck Snow removal 8.00 31.00 10.00 49.00 Jeff Kosek Large dump truck Snow removal 5.00 8.00 31.00 10.00 54.00 Juul Dump truck 444 Snow removal 8.00 31.00 10.00 49.00 Juul Dump truck 666 Snow removal 4.50 12.50 33.00 5.00 55.00 TOTAL PERSONNEL HOURS 105.00 447.75 691.00 1,991.50 670.25 3,905.50 HOURS EQUIP# DESCRIPTION Nov. 2018 Dec. 2018 Jan. 2019 Feb. 2019 Mar, 2019 Apr. 2019 Total Light Trucks 1 PARK-221-TK1 LTK Pickup,1/2 ton 4x4 16.00 18.00 13.50 47.50 2 PARK-664-TK1 LTK Pickup, 1 ton 4x4 3.00 27.00 30.00 5.00 70.00 4 STRT-170-TK1 LTK Pickup, l ton 4x4 100 1.50 13.75 2.50 26.75 5 STRT-660-TK1 LTK Pickup, 1 ton 4x4 1.75 21.75 56.75 4.75 85-00 6 WWTF-661-TK3 LTK Pickup, 3/4 ton 4x4 7.00 7.00 Snowplow Trucks 1 STRT-115-HTK HTK Truck, S/A w/ dump box 12.75 20.25 2.25 34.75 15.75 85.75 2 STRT-441-HTK HTK Truck, S/A w/ hooklift 35.75 43.25 110.25 19.00 208.25 3 STRT-522-HTK HTK Truck, 5/A w/ dump box 20,00 41.75 43,00 109.00 20.00 233.75 4 STRT-613-HTK HTK Truck, S/A wJ dump box 6.50 21.00 43.75 87.50 18.75 177.50 5 STRT-812-HTK HTK Truck, 5/A w/ dump box 20.00 30.00 41.00 92.25 22.00 20525 6 STRT-894-HTK HTK Truck, S/A w/ dump box 11.50 23.50 42.50 67.00 10.50 155.00 7 STRT-923-HTK HTK Truck, S/A w/ dump box 18.00 23.00 44.50 SIM 28.00 205.00 Skid steer Loaders 1 CEMT-412-SKD SKD Toolcat 2.00 3.50 1.50 7.50 9.50 24.00 2 PARK-032-SKD SKD Skid steer, 5250 24.00 28.50 122.00 9.00 182-50 3 PARK-032-SKD SKD Toolcat 16.00 21.00 82.50 21.00 140.50 4 PARK-211-SKD SKD Skid steer, 5250 18.50 31.00 131,25 43.00 223.75 4 STRT-592-SKD SKD Skid steer, A770 12.00 31.00 68.50 39.50 151-00 Tractors 1 AIRP-055-TRC TRC Tractor, TV6070 7.50 21.00 2450 78.50 48.50 180.00 4 STWT-104-TRC TRC Tractor, 6125R 14425 18.00 58.00 24.75 115.00 5 STWT-106-TRC TRC Tractor, 6125R 5.00 16;75 27.00 74,75 18.75 142.25 6 STWF-184-TRC TRC Tractor, 6125R 18.00 6.00 84.50 23.00 131.50 Wheel Loaders 1 STRT-447-LDR LDR Wheel loader, 521C 15.00 34.00 116.75 56.00 221.75 2 STRT-750-LDR LDR Wheel loader, 621D 17.25 35.50 121.50 8000 254.25 3 STRT-969-LDR LDR Wheel loader, 621D 18,75 41.50 103,00 65.00 228.25 Heavy Eauioment 1 STRT-116-HEQ HEQ Snow blower 11.00 44.00 1950 74.50 2 MCLD-409-HEQ HEQ Snowblower 1000 Snow Hauling Trucks 1 STRT-218-HTK HTK Truck, T/A wf dump box 3.00 6.50 19.50 14.50 43.50 2 STRT-972-HTK HTK Truck, T/Aw/dump box 3A0 4.00 14.50 4.00 25.50 Contractors Hansen Gravel 207 14.50 6.50 21.00 Contractors Hansen Gravel 208 4,50 8.00 31.00 MOO 53.50 Contractors Hansen Gravel 212 4.50 8.00 31.00 10.00 53.50 Contractors Hanson & Vasek 8.00 31.00 10.00 49.00 Contractors Juul Contracting 444 8.00 31.00 10.00 49.00 Contractors Juul Contracting 666 4.50 12.50 33.00 5.00 55.00 Contractors Kosek, Jeff 5.00 8.00 31.00 10.00 54.00 105.00 447.75 702.00 2,035.50 699.75 3,980.00 HUTCHINSON CITY COUNCIL ci=v-f� Request for Board Action 7AL =-ft Agenda Item: March 2019 Financial and Investment Reports Department: Finance LICENSE SECTION Meeting Date: 4/23/2019 Application Complete Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff Governance Time Requested (Minutes): 0 License Contingency Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: For Council review, attached are the March Financial Reports for the general fund and enterprise funds. Also attached is the March Investment Report. Through March, the impact of snow removal operations is evident in Contracted Snow Removal and Fuel expenses, which are $33,000 and $6,000 higher than in 2018, respectively. Other expenses are not impacted as greatly but we may have more invoices to be paid in April. Feel free to contact me with any questions. Thank you. BOARD ACTION REQUESTED: Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2019 2019 2018 2019 ACTUALS 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT MARCH YTD BUDGET BALANCE USED ACTUAL BUDGET USED General Fund Taxes - - 5,122,005 5,122,005 - - 4,925,466 - Other Taxes 5,863 11,615 315,000 303,385 3.7 11,473 305,000 3.8 Licenses & Permits 18,642 74,075 414,200 340,125 17.9 150,169 343,050 43.8 Intergovernmental Revenue 3,724 23,979 1,578,056 1,554,077 1.5 40,963 1,555,161 2.6 Charges for Services 229,148 517,716 2,830,857 2,313,141 18.3 594,839 2,840,534 20.9 Miscellaneous Revenues (2,580) 57,009 317,500 260,491 18.0 63,339 319,500 19.8 Transfers -In - - 2,497,175 2,497,175 - 610,337 2,515,092 24.3 Fines & Forfeitures 9,207 13,387 50,000 36,613 26.8 10,724 55,000 19.5 Capital Contributions - - - - - - - - TOTAL REVENUES 264,004 697,781 13,124,793 12,427,012 5.3 1,481,844 12,858,803 11.5 Wages & Benefits 892,670 1,865,022 8,866,013 7,000,991 21.0 1,858,066 8,657,896 21.5 Supplies 53,119 138,223 870,578 732,355 15.9 156,672 868,840 18.0 Services & Charges 225,264 517,832 2,655,282 2,137,450 19.5 474,688 2,659,777 17.8 Miscellaneous Expenses 12,405 63,171 620,950 557,779 10.2 68,395 562,290 12.2 Transfers -Out 50,985 50,985 101,970 50,985 50.0 451,288 501,288 90.0 Capital Outlay - - 10,000 10,000 - - 10,000 - TOTAL EXPENDITURES 1,234,443 2,635,233 13,124,793 10,489,560 20.1 3,009,109 13,260,091 22.7 NET REVENUE (970,439) (1,937,452) - 1,937,452 (1,527,266) (401,288) Comments Revenues: Transfers -In The difference from 2019 compared to 2018 is due to the timing of HUC's 1st quarter PILOT payment and the Hospital lease payment. HUC's PILOT payment was received in April 2019 and the Hospital lease payment has been eliminated due to the 2018 lease payoff settlement. Expenditures: Transfers -Out The 2018 activity included the $401,288 transfer of fund balance to the new Tree Disease Mitigation fund. Rather than accounting for those efforts out of general fund reserves, it is more appropriately accounted for within a separate fund. Snow Removal Impact Through March, fuel expense is up $6,000 from 2018 and Contracted Snow Removal is up $33,000. Other expenses, such as employee overtime and repairs to snow equipment are at about the same level as in 2018. Perhaps more activity will be reflected in the April financial statements. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2019 2019 ACTUALS MARCH General Fund Expense by Department YTD 2019 2018 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED Mayor & City Council 4,204 10,468 55,328 44,860 18.9 9,421 49,922 18.9 City Administrator 44,751 92,376 415,643 323,267 22.2 93,431 411,990 22.7 Elections - - 6,000 6,000 - - 23,100 - Finance Department 33,466 69,624 371,041 301,417 18.8 69,613 359,527 19.4 Motor Vehicle 30,407 61,538 268,721 207,183 22.9 55,573 264,832 21.0 Assessing - - 61,152 61,152 - - 61,131 - Legal 27,368 63,687 306,847 243,160 20.8 68,501 313,858 21.8 Planning 16,192 34,101 155,835 121,734 21.9 31,156 149,212 20.9 Information Services 38,892 96,761 568,872 472,111 17.0 140,797 560,588 25.1 City Hall Building 15,509 33,731 174,705 140,974 19.3 35,184 167,556 21.0 Police Department 364,771 780,913 3,453,954 2,673,041 22.6 794,315 3,331,215 23.8 Hospital Security 32,974 66,850 323,205 256,355 20.7 68,618 311,394 22.0 Emergency Management 559 1,771 12,280 10,509 14.4 3,790 22,180 17.1 Safety Committee 40 9,270 10,850 1,580 85.4 8,960 10,800 83.0 Fire Department 32,560 71,733 357,602 285,869 20.1 60,571 332,858 18.2 Protective Inspections 35,885 78,224 348,856 270,632 22.4 43,866 365,062 12.0 Engineering 48,360 105,559 470,704 365,145 22.4 101,832 457,087 22.3 Streets & Alleys 177,776 295,453 1,539,705 1,244,252 19.2 259,299 1,582,983 16.4 Park/Recreation Administration 25,482 56,919 265,144 208,225 21.5 57,518 260,339 22.1 Recreation 17,927 38,984 249,316 210,332 15.6 48,649 247,593 19.6 Senior Citizen Center 9,096 17,795 86,622 68,827 20.5 18,258 86,779 21.0 Civic Arena 47,951 103,981 355,362 251,381 29.3 122,980 338,878 36.3 Park Department 84,607 169,683 926,369 756,686 18.3 181,944 904,484 20.1 Recreation Building 27,572 57,727 237,367 179,640 24.3 55,474 225,236 24.6 Events Center 27,902 65,774 263,142 197,368 25.0 65,437 253,808 25.8 Evergreen Building 2,181 5,538 27,250 21,712 20.3 6,372 26,650 23.9 Library 3,898 54,129 223,460 169,331 24.2 54,906 216,091 25.4 Waterpark 1,251 3,408 388,840 385,432 0.9 4,116 398,741 1.0 Cemetery 10,602 27,778 143,159 115,381 19.4 25,808 141,517 18.2 Airport 13,081 23,330 120,670 97,340 19.3 17,347 113,640 15.3 Unallocated General Expense 59,179 138,130 936,792 798,662 14.7 505,375 1,271,040 39.8 TOTAL EXPENDITURES 1,234,443 2,635,233 13,124,793 10,489,560 20.1 3,009,109 13,260,091 22.7 Liquor Fund Sales Miscellaneous Revenues TOTAL REVENUES Cost of Sales Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES NET REVENUE REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2019 2019 ACTUALS MARCH YTD 2019 2018 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED 472,402 1,293,433 6,357,000 5,063,567 20.3 1,300,674 6,245,000 20.8 51 708 3,000 2,292 23.6 567 4,000 14.2 472,453 1,294,141 6,360,000 5,065,859 20.3 1,301,241 6,249,000 20.8 408,819 994,861 4,890,710 3,895,849 20.3 995,046 4,771,290 20.9 72,726 148,145 698,094 549,949 21.2 147,753 671,021 22.0 1,054 6,447 25,050 18,603 25.7 2,907 27,750 10.5 8,488 30,286 143,675 113,389 21.1 28,479 145,800 19.5 - 166 5,350 5,184 3.1 - 5,850 - - 500,000 500,000 - 500,000 15,000 15,000 25,000 82,500 82,500 85,000 - - 128,243 128,243 - - 128,045 - 491,087 1,179,904 6,488,622 5,308,718 18.2 1,174,185 6,359,756 18.5 (18,633) 114,236 (128,622) (242,858) 127,056 (110,756) Year to Date Sales March Sales Comments 2019 2018 Change Liquor Sales Revenue: Liquor 472,177 462,121 2.2% Beer 589,247 593,964 -0.8% Wine 206,716 220,134 -6.1% Other 25,293 24,455 3.4% Total Sales 1,293,433 1,300,674 -0.6% Customer Count 52,739 54,346 -3.0% Average Sale per Customer $ 24.53 $ 23.93 2.5% Gross Margin on Sales 23.1 % 23.5% Labor to Sales Ratio 11.5% 11.4% 2019 2018 Change 170,330 171,747 -0.8% 217,697 225,481 -3.5% 74,693 86,722 -13.9% 9,682 9,100 6.4% 472,402 493,051 -4.2% 19,080 20,243 -5.7% $ 24.76 $ 24.36 1.7% 13.5% 24.6% 15.4% 14.6% Water Fund Sales Sales - Other Local Sales Tax Charges for Services Miscellaneous Revenues Ifell FAN NaTia,n1*� Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2019 2019 ACTUALS MARCH YTD 2019 2018 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED 123,762 384,615 1,780,000 1,395,385 21.6 382,242 1,880,000 20.3 44,107 126,644 543,500 416,856 23.3 171,022 516,750 33.1 57,596 118,296 665,000 546,704 17.8 109,482 640,000 17.1 2,185 35,912 53,000 17,088 67.8 34,812 55,000 63.3 (6,643) 11,774 69,500 57,726 16.9 4,654 104,500 4.5 221,006 677,241 3,111,000 2,433,759 21.8 702,211 3,196,250 22.0 55,565 116,200 519,888 403,688 22.4 107,327 478,638 22.4 12,438 49,533 137,250 87,717 36.1 23,638 132,300 17.9 42,389 79,946 522,950 443,004 15.3 76,977 535,960 14.4 - 298 15,000 14,702 2.0 7,585 14,700 51.6 - 60,000 60,000 - - 60,000 - 300,000 300,000 350,000 - 1,100,000 1,100,000 - - 1,100,000 - 202,482 1,485,523 1,283,041 13.6 200,680 1,485,627 13.5 TOTAL EXPENDITURES 110,393 448,459 4,140,611 3,692,152 10.8 416,207 4,157,225 10.0 NET of REVENUES & EXPENDITURES 110,614 228,781 (1,029,611) (1,258,392) 286,004 (960,975) Year to Date Water Sales Comments 2019 2018 Change Water Sales Revenue: Residential 248,551 251,862 -1.3% Commercial 71,694 72,263 -0.8% Industrial 64,370 58,117 10.8% Water Sales 384,615 382,242 0.6% Base Charge 106,547 105,850 0.7% WAC Charge 3,500 46,522 -92.5% Other 16,597 18,649 -11.0% Other Sales 126,644 171,022 -25.9% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2019 Sewer Fund Sales Sales - Other Local Sales Tax Intergovernmental Revenue Licenses & Permits Charges for Services Miscellaneous Revenues Ifell FAN NaTia,n1*� Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES NET of REVENUES & EXPENDITURES 2019 ACTUALS MARCH YTD 2019 2018 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED 237,020 721,856 2,700,000 1,978,144 26.7 639,770 2,920,000 21.9 34,082 100,856 468,000 367,144 21.6 157,007 410,000 38.3 57,596 118,296 665,000 546,704 17.8 109,482 640,000 17.1 - 6,500 6,500 - 100.0 5,100 6,500 78.5 575 575 7,500 6,925 7.7 1,670 3,500 47.7 (10,217) 20,698 120,000 99,302 17.2 3,958 140,000 2.8 319,057 968,781 3,967,000 2,998,219 24.4 916,987 4,120,000 22.3 75,451 155,984 691,874 535,890 22.5 156,977 678,838 23.1 10,756 42,298 210,700 168,402 20.1 34,963 219,700 15.9 78,237 167,618 803,000 635,382 20.9 154,298 800,830 19.3 55 5,391 36,500 31,109 14.8 8,729 32,500 26.9 - - 60,000 60,000 - - 60,000 - 30,998 625,000 594,002 5.0 173,007 650,000 26.6 - 1,250,000 1,250,000 - - 1,450,000 - - 406,082 1,403,676 997,594 28.9 450,137 1,458,251 30.9 164,499 808,372 5,080,750 4,272,378 15.9 978,110 5,350,119 18.3 154,558 160,409 (1,113,750) (1,274,159) (61,123) (1,230,119) Year to Date Sewer Sales Comments 2019 2018 Change Sewer Sales Revenue: Residential 397,618 383,685 3.6% Commercial 116,726 105,997 10.1 % Industrial - Flow 124,243 106,498 16.7% Industrial - Violation Surcharges 83,268 43,590 91.0% Sewer Sales 721,856 639,770 12.8% Base Charge 92,526 91,880 0.7% SAC Charge 4,600 61,134 -92.5% Other 3,730 3,993 -6.6% Other Sales 100,856 157,007 -35.8% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2019 2019 2018 2019 ACTUALS 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT MARCH YTD BUDGET BALANCE USED ACTUAL BUDGET USED Refuse Fund Sales 97,326 292,503 1,160,000 867,497 25.2 286,466 1,154,000 24.8 Sales - Other 3,886 11,580 45,600 34,020 25.4 11,209 43,550 25.7 Intergovernmental Revenue - - 12,500 12,500 - - 12,500 - Miscellaneous Revenues (3,087) 3,938 22,000 18,062 17.9 887 12,500 7.1 TOTAL REVENUES 98,126 308,022 1,240,100 932,078 24.8 298,562 1,222,550 24.4 Wages & Benefits 16,493 34,243 190,965 156,722 17.9 33,616 187,401 17.9 Supplies 718 12,583 62,050 49,467 20.3 15,772 58,400 27.0 Services & Charges 62,132 135,978 761,600 625,622 17.9 125,863 736,190 17.1 Miscellaneous Expenses 20 40 1,500 1,460 2.7 564 6,500 8.7 Transfers -Out - - 55,000 55,000 - - 55,000 - CapitalOutlay 24,689 24,689 221,500 196,811 11.1 85,000 Depreciation Expense - - 146,000 146,000 - - 144,000 - TOTAL EXPENDITURES 104,052 207,533 1,438,615 1,231,082 14.4 175,815 1,272,491 13.8 NET of REVENUES & EXPENDITURES (5,927) 100,489 (198,515) (299,004) 122,746 (49,941) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2019 2019 2018 2019 ACTUALS 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT MARCH YTD BUDGET BALANCE USED ACTUAL BUDGET USED Compost Fund Sales 342,016 502,416 2,378,175 1,875,759 21.1 535,307 2,003,975 26.7 Charges for Services 13,560 13,600 91,245 77,645 14.9 10 82,500 0.0 Miscellaneous Revenues 23,213 33,106 35,000 1,894 94.6 759 26,400 2.9 TOTAL REVENUES 378,790 549,123 2,504,420 1,955,297 21.9 536,077 2,112,875 25.4 Cost of Sales 204,893 294,179 1,633,505 1,339,326 18.0 323,882 1,316,600 24.6 Inventory Cost Adjustment (47,511) (111,200) (709,585) (598,385) 15.7 (70,096) (494,200) 14.2 Wages & Benefits 64,754 142,244 704,078 561,834 20.2 126,183 610,345 20.7 Supplies 2,357 19,198 114,825 95,627 16.7 13,696 65,300 21.0 Services & Charges 20,979 56,222 308,940 252,718 18.2 27,228 243,440 11.2 Miscellaneous Expenses 297 2,047 11,500 9,453 17.8 1,558 11,500 13.5 Transfers -Out - - 110,000 110,000 - - 110,000 - CapitalOutlay 80,000 80,000 139,227 Depreciation Expense 220,000 220,000 207,000 Debt Service - - 158,939 158,939 - - 87,833 - TOTAL EXPENDITURES 245,769 402,691 2,632,202 2,229,511 15.3 422,450 2,297,045 18.4 NET of REVENUES & EXPENDITURES 133,021 146,432 (127,782) (274,214) 113,626 (184,170) Year to Date Sales Comments 2019 2018 Change Compost Sales Bagged 450,179 496,419 -9.3% Bulk 6,299 1,788 252.3% Other (Freight) 45,939 37,100 23.8% Total Sales 502,416 535,307 -6.1% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2019 2019 ACTUALS MARCH YTD 2019 2018 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED Storm Water Utility Sales 78,634 233,507 937,000 703,493 24.9 226,592 904,600 25.0 Sales - Other 288 939 3,500 2,561 26.8 785 3,000 26.2 Licenses & Permits 300 435 4,500 4,065 9.7 370 4,000 9.3 Charges for Services - - - - - - - - Miscellaneous Revenues (786) 1,535 22,300 20,765 6.9 1,634 13,750 11.9 Capital Contributions - - - - - - - - TOTAL REVENUES 78,437 236,416 967,300 730,884 24.4 229,381 925,350 24.8 Wages & Benefits 27,099 53,806 248,348 194,542 21.7 37,993 276,489 13.7 Supplies 4,948 8,062 32,000 23,938 25.2 314 38,800 0.8 Services & Charges 8,175 20,750 173,300 152,550 12.0 5,226 165,600 3.2 Miscellaneous Expenses 783 933 10,500 9,567 8.9 810 11,250 7.2 Transfers -Out - - - - - - 125,000 - CapitalOutlay 340,000 340,000 200,000 Depreciation Expense - 195,000 195,000 - - 157,000 - Debt Service - 146,404 231,777 85,373 93.5 150,508 154,750 70.2 TOTAL EXPENDITURES 41,005 229,955 1,230,925 1,000,970 18.7 194,851 1,128,889 17.3 NET of REVENUES & EXPENDITURES 37,431 6,461 (263,625) (270,087) 34,529 (203,539) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING MARCH 31, 2019 2019 2018 2019 ACTUALS 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT MARCH YTD BUDGET BALANCE USED ACTUAL BUDGET USED HATS Operation Intergovernmental Revenue 52,873 67,980 181,280 113,300 37.5 66,000 176,000 37.5 Charges for Services 32,841 94,390 280,000 185,610 33.7 74,487 267,500 27.8 Miscellaneous Revenues 2,776 5,225 6,000 775 87.1 163 3,500 4.6 Transfers -In 50,985 50,985 101,970 50,985 50.0 50,000 100,000 50.0 TOTAL REVENUES 139,475 218,580 569,250 350,670 38.4 190,650 547,000 34.9 Wages & Benefits 3,805 8,310 42,644 34,334 19.5 7,241 38,151 19.0 Supplies 71,034 148,340 297,050 148,710 49.9 88,922 273,650 32.5 Services & Charges 20,584 34,928 161,200 126,272 21.7 26,765 157,160 17.0 Miscellaneous Expenses - 10 5,600 5,590 0.2 - 5,600 - CapitalOutlay - - 62,756 62,756 - - 76,612 - TOTAL EXPENDITURES 95,423 191,588 569,250 377,662 33.7 122,928 551,173 22.3 NET of REVENUES & EXPENDITURES 44,052 26,992 - (26,992) 67,722 (4,173) Comments Charges for Services The main activity in this category is the sale of fuel to City departments, the State, County and Hutchinson Utilities. Supplies The main activity in this category is the cost of fuel for the fueling system. Fuel expenses exceed revenues due to refueling the system at the end of March, thereby incurring the expense in March with the revenue for usage to occur in April. Oppenheimer & Co. Inc. PPEN IME Broad Street HOUSEHOLD New York, NY 10004 (212) 668-8000 SUMMARY (2 Transacts Business on All Principal Exchanges SIK News and Information For the Period Ending: Financial Advisor SULLIVAN/SULLIVAN - X2J Internet Address: www.opco.com 50 SOUTH SIXTH STREET Oppenheimer's 2019 Annual Disclosure Notices (including our Privacy Policy) appears immediately SUITE 1300 following this Household Summary. Please retain this information foryour records. MINNEAPOLIS, MN 55402 (800)258-3387 CITY OF HUTCHINSON MN HOSPITAL III HASSAN ST SE HUTCHINSON MN 55350-2522 Cash, Money Fonds Priced Total Asset Direct Adjusted Previous Month Statement Account & Bank Deposits Securities Value Investments (1) Asset Value 1z1 ' Adj Asset Value Enclosed (3) D25-5020051 CITY OFHUTCHUQSONMNHOSPITAL $0.00 $5,532,508.93 $5,532,508.93 $0.00 $5,532,508.93 $5,524,633.26 Yes 111 HASSAN ST SE D25-5019707 CITY OF HUTCHUQSONMUQNESOTA 3,656.21 28,634,301.15 28,637,957.36 0.00 28,637,957.36 28,516,763.67 Yes 111 HASSAN ST SE Totals $3,656.21 $34,166,810.08 $34,170,466.29 $0.00 $34,170,466.29 $34,041,396.93 (1) Values for Direct Investments, which are not included in the Total Asset Value for your account, are provided for informational purposes only. Note that prices for Direct Investments are furnished periodically by the entities issuing and/or managing such investments. Due to timing of such pricing, values for Direct Investment reflect the most recent prices available, which may not be month -end values. (2) "Adjusted Asset Value" is the sum of" Total Asset Value" and "Direct Investments". (3) "No" in the Statement Enclosed column indicates that a statement was not generated for the specified account due to lack of activity during the period. However, as a courtesy, current values for the account are displayed for informational purposes. This Household Summary, which displays separate and combined assets for all linked accounts, is provided as a courtesy. The Household Summary is not, and should not be construed as, a substitute foryour Oppenheimer & Co. Inc. account statements. Oppenheimer & Co. Inc. (")PPENHEIME (2126 Broad Street New York NY 10004 Transacts Business on All Principal Exchanges Asset Allocation A Government Agency Bonds- 8.69% Municipal Bonds - 13.56 k Certificates of Deposit - 39.21 k Mutual Funds - 38.54 k Portfolio Summary IF This Previous Estimated Period Period Annual Income 03/31/19 02/28/19 Mutual Funds $11,036,132.01 $11,585,759.55 $229,507.40 GovemmentAgency, Bonds 2,488,570.00 2,476,580.00 51,000.00 Municipal Bonds 3,882,730.50 3,506,097.40 90,668.40 Certificates of Deposit 11,226,868.64 10,946,584.21 270,173.50 Cash Account Balance 3,656.21 1,742.51 Total Asset Value $28,637,957.36 $28,516,763.67 $641,349.30 Net Value of Accrued Interest $79,877.29 $72,782.86 Total Asset Value does not include Direct Investments, Accrued Interest or unpriced securities. Cash Activity Summary IF I Opening Cash Balance $1,742.51 Net Buy and Sell Transactions-25,708.10 Net Miscellaneous Credits/Debits-20,411.26 Net Income Activity 48,033.06 Closinq Cash Balance $3,656.21 Account Number: D25-5019707 For the Period: 03/01/19 - 03/31/19 STATEMENT OF ACCOUNT Tax ID Number: ON FILE Last Statement: 02/28/19 Page 1 of 12 CITY OF HUTCHINSON MINNESOTA III HASSAN ST SE HUTCHINSON MN 55350-2522 Financial Advisor SULLIVAN/SULLIVAN X2J (800)258-3387 Internet Address: www.opco.com Income Summary Office Serving Your Account 50 SOUTH SIXTH STREET SUITE 1300 MINNEAPOLIS, MN 55402 Reportable This Period Year to Date Corporate Accrued Int Received $0.00 $21.48 Corporate Interest 27,621.80 54,732.06 Municipal Interest 0.00 36,362.50 Government Interest 0.00 24,250.00 Dividends 20,411.26 66,442.30 Total Reportable $48,033.06 $181,808.34 Non -Reportable Municipal Accrued Int Paid $-1,401.40 $-1,401.40 Total Non -Reportable $-1,401.40 $-1,401.40 Oppenheimer & Co. Inc. Broad PPEN IME 85wYorsNY STATEMENT OF New York, NY 10004 (z1sACCOUNT 9 I- . Transacts actctBs Businsin ess on All Principal Exchanges Assets maturing during the next 60 days appear at the end of this statement. Asset Allocation Municipal Bonds - 22.77 k --- Mutual Funds - 77.23 k Portfolio Summary This Previous Estimated Period Period Annual Income 03/31/19 02/28/19 Advantage Bank Deposits` $0.00 $87.80 $0.00 Mutual Funds 4,272,763.43 4,614,015.36 88,856.38 Municipal Bonds 1,259,745.50 910,530.10 31,932.00 Total Asset Value $5,532,508.93 $5,524,633.26 $120,788.38 Net Value of Accrued Interest $11,458.27 $7,684.47 Total Asset Value does not include Direct Investments, Accrued Interest or unpriced securities. Eligible for FDIC insurance up to standard maximum insurance amounts, Not SIPC insured. Cash Activity Summary Ooenina Cash Balance $0.00 Net Buy and Sell Transactions -1,950.63 Net Miscellaneous Credits/Debits -7,544.34 Net Income Activity 9,407.17 Net Advantage Bank Deposit Activity 87.80 Closing Cash Balance $0.00 Account Number: D25-5020051 Tax ID Number: ON FILE For the Period: 03/01/19 - 03/31/19 Last Statement: 02/28/19 Page 1 of 5 CITY OF HUTCHINSON MN HOSPITAL III HASSAN ST SE HUTCHINSON MN 55350-2522 Financial Advisor SULLIVAN/SULLIVAN X2J (800)258-3387 Internet Address: www.opco.com Income Summary Office Serving Your Account 50 SOUTH SIXTH STREET SUITE 1300 MINNEAPOLIS, MN 55402 Reportable This Period Year to Date Advantage Bank Dep Interest $0.01 $0.03 Municipal Interest 1,862.82 1,950.60 Government Interest 0.00 3,750.00 Dividends 7,544.34 22,053.34 Total Reportable $9,407.17 $27,753.97 Non -Reportable Municipal Accrued Int Paid $-1,401.40 $-1,401.40 Total Non -Reportable $-1,401.40 $-1,401.40 PPENHEIMFP, TOTAL POSITIONS PORTFOLIO OVERVIEW CITY OF HUTCHINSON report as of 411119 POSITIONS INCLUDED IN PORTFOLIO ANALYSIS Original Face Value $18,161,000.00 Current Face Value $18,161,000.00 Estimated Portfolio Totals Estimated Portfolio Averages Est Annual Income $426,174.40 Original Face Value $18,161,000.00 Coupon 2.35% Valid Positions 60 Current Face Value $18,161,000.00 Maturity 2.85 yrs Exceptions 0 Market Value $18,088,296.54 Effective Maturity 2.23 yrs Total Positions 60 Accrued Interest $83,700.56 Modified Duration 2.11 Includes all positions with recognized CUSIP and valid quantity provided Total Market Value $18,171,997.10 Yield to Maturity 2.73% Please see exception report for positions not included in reports. Yield to Worst 2.57% POSITIONS W/ MARKET PRICE Positions 60 of 60 Market Price 99.60 Priced Orig. Face Value $18,161,000.00 Rating Priced Current Face Value $18,161,000.00 a a a Priced Positions 60 of 60 Priced Market Principal $18,088,296.54 Average Coupon 2.35% Average Price 99.60 Includes all positions with recognized CUSIP, quantity and market price on report date Original Face: the original dollarvalue at issuance Current Face: the dollarvalue afterthe current factor is applied Includes all positions with recognized CUSIP, quantity, market price and derived calculations on report date. Coupon and Market Price weighted by Current Face Value, all others weighted by Market Value. Please see the last page of this report for detail. Page 2 of 44 PPENHEIMEI, PORTFOLIO SUMMARY - CURRENT FACE VALUE WEIGHTED - ALL SECURITY TYPES CITY OF HUTCHINSON report as of 411119 PORTFOLIO SUMMARY Portfolio Totals Fed Exempt Fed Taxable Current Face Value - $18,161,000 Positions - 60 Accrued Interest - $83,701 Est Annual Income - $426,174 * Portfolio Average Avg Coupon Rate - 2.347% Avg Maturity - 2.8yrs * Current Face Value -weighted. For Avo Maturity calculations, Deroetual securities assume 40 HOLDINGS BY SECURITY TYPE Total Positions Face (000) %Face $18,161,000 Agency 4 $2,500.0 13.8% 60 of 60 Asset Backed - - - $83,701 CD 48 $11,751.0 64.7% $426,174 CEF - - - CMO Corp - - 2.347% Muni 8 $3,910.0 21.5% 2.8yrs Pass Thru - - - Preferred Treas - - Total 60 $18,161.0 100.0 Current Face Value -weighted PORTFOLIO RATING SUMMARY RATING DISTRIBUTION **Ratina Positions Face (000) % Face AAA zi AAA 7 $3,850.0 21.2% AA 4 $2,000.0 11.0% m > AA yy A 1 $560.0 3.1 % u m BAA - - _ A 3 0 Below BAA - - - v BAA O1 NR 48 $11,751.0 64.7% m c Below Total 60 $18,161.0 100.0% u BAA v a NR 0 10 20 30 40 s0 60 70 ** Best of Short/Long term equivalent Moody's or Standard & Poor's Rating. Current Face Value -weighted. Best of Short/Long term equivalent Moody's or Standard & Poor's Rating. Current Face Value -weighted. Please see the last page of this report for detail. Page 4 of 44 PPFh'H!" !AFR, PORTFOLIO SUMMARY - CURRENT FACE VALUE WEIGHTED - ALL SECURITY TYPES CITY OF HUTCHINSON report as of 411119 MATURITY SCHEDULE Year Face(000) % Year Face(000) 2019 $2,067.0 11.4% 2033 - 2020 $3,265.0 18.0% 2034 - - 2021 $3,205.0 17.6% 2035 - - 2022 $4,709.0 25.9% 2036 - - 2023 $2,450.0 13.5% 2037 - - 2024 $2,225.0 12.3% 2038 - - 2025 $240.0 1.3% 2039 - - 2026 - - 2040 - - 2027 - - 2041 - - 2028 - - 2042 - - 2029 - - 2043+ - - 2030 - - Perpetual - - 2031 2032 28 24 20 U 16 Q u. 12 0 8 4 0 MATURITY EXPOSURE 1 alp 1p01�10tl O,t90,tb0,00,t60,V10,t60,t90ap00 , 1v0090nb049040,!10�60�90a00p10pb Q2 Current Face Value -weighted. ESTIMATED COUPON CASH FLOW SUMMARY Jan Feb Mar Am May Jun Jul Aug Agency $15,500 $5,000 - $5,000 - - $15,500 $5,000 CD $16,775 $22,571 $29,642 $15,343 $34,422 $23,499 $16,775 $22,571 Muni:Non AMT - - - - - - - - Muni:Subj AMT - - - - - - - - Muni:Taxable $3,234 $13,363 - $7,095 $21,643 - $3,234 $13,363 Seal Oct Nov Dec Total - $5,000 - - $51,000 $29,642 $15,343 $34,422 $23,499 $284,506 - $7,095 $21,643 - $90,668 Total $35,509 $40,933 $29,642 $27,438 $56,065 $23,499 $35,509 $40,933 $29,642 $27,438 $56,065 $23,499 $426,174 Reflects extended cash flow estimates assuming portfolio composition as of report date. Please refer to Definitions for more complete explanation. Please see the last page of this report for detail. Page 5 of 44 PPENHEIMEI, PORTFOLIO SUMMARY - MARKET VALUE WEIGHTED - ALL SECURITY TYPES CITY OF HUTCHINSON report as of 411119 I PORTFOLIO SUMMARY 1 Portfolio Totals Fed Exempt Fed Taxable Total Priced Current Face $18,161,000 $18,161,000 Positions - 60 60 of 60 Market Value - $18,088,297 $18,088,297 Accrued Interest - $83,701 $83,701 Total Market Value - $18,171,997 $18,171,997 Est Annual Income - $426,174 $426,174 Portfolio Averages ** Coupon Rate - 2.347% 2.347% Maturity - 2.8yrs 2.8yrs Effective Maturity 2.2yrs 2.2yrs Modified Duration 2.1 2.1 Yield To Maturity - 2.73% 2.73% Yield To Worst - 2.57% 2.57% ** Market Price - 99.600 99.600 ** Par Value wtd, other avgs Mkt Value wtd. Ind only positions with mkt value & calcs on report date. For perpetual securities avg calcs, Final Maturity assume 40 yrs, Yield to Maturity uses strip yield. PORTFOLIO RATING SUMMARY ❑ AAA 21.1% ❑ AA 11.0% ❑ A 3.1% ❑ BAA 0.0% ❑ Below BAA 0.0% ❑ NR 64.8% Total: 100.0% R Includes only positions with market value & calculations on report date. Market Value -weighted. POSITIONS BY SECURITY TYPE F_CD Agency 13.8% Asset Backed 0.0% CD 64.8% CEF 0.0% CMO 0.0% Corp 0.0% Muni 21.5% Pass Thru 0.0% ■ Preferred 0.0% Treas 0.0% Total: 100.0% Agency Muni Includes only positions with market price & calculations on report date. Market Value -weighted. 100 90 80 70 ~y 60 F s0 0 40 30 20 10 0 SECURITY FEATURES Ga�`9,o ocG 0+0`0 Ca+9,o Q9�0 iQO,`o �a+ Quo Q0 Includes only positions with market price & calculations on report date. Market Value -weighted. Please see the last page of this report for detail. Page 6 of 44 PPEINHFIMEI1 PORTFOLIO SUMMARY - MARKET VALUE WEIGHTED - ALL SECURITY TYPES CITY OF HUTCHINSON report as of 411119 MATURITY EXPOSURE 28 24 20 Y 16 12 0 8 4 0 ti°,t'*,arpjti tiyti6�0ti$ti`�3pf!; 3y333a3y3 f3Af$b lip`�aoa�ay3Xoa• ,,p ,p ,p ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 1p ,l0v00, 0t Q Includes only positions with market price & calculations on report date. Market Value -weighted. DURATION EXPOSURE 28 24 20 Y 16 i e 12 8 4 0 oMotio3oaoyo6o� Includes only positions with market price & calculations on report date. Market Value -weighted. PORTFOLIO EXPOSURE MaturitV Effective Maturity Duration to Worst Average: 2.85yrs Average: 2.23yrs Average: 2.11 Year $ Mkt % Mkt $ Mkt %Mkt Year $ Mkt % Mkt 2019 $2,071,792 11.4% $4,298,066 23.7% 00-01 $5,028,256 27.7% 2020 $3,256,516 17.9% $3,743,068 20.6% 01-02 $4,003,488 22.0% 2021 $3,204,529 17.6% $3,953,141 21.8% 02-03 $4,689,122 25.8% 2022 $4,689,862 25.8% $2,700,138 14.9% 03-04 $1,964,972 10.8% 2023 $2,473,764 13.6% $1,733,935 9.5% 04-05 $1,988,375 10.9% 2024 $2,236,216 12.3% $1,743,648 9.6% 05-06 $497,784 2.7% 2025 $239,318 1.3% - - 06-07 - 2026 - - - 07-08 - 2027 - - - 08-09 - 2028 - - - 09-10 - 2029 - - - 10-11 - 2030 - - - 11-12 - 2031 - - - 12-13 - 2032 - - - 13-14 - 2033 - - - 14-15 - 2034 - - - 15-16 - 2035 - - - 16-17 - 2036 - - - 17-18 - 2037 - - - 18-19 - 2038 - - - 19-20 - 2039 - - - 20-21 - 2040 - - - 21-22 - 2041 - - - 22-23 - 2042 - - - 23-24 - 2043+ - - - 24-25 - Perpet -' ' - - 25-26 - 26-27 27-28 28-29 30+ Avg life used in Effective Maturity for principal pay -downs. Includes only positions with market price & calculations on report date. Market Value -weighted. For Avg Maturity calculations, perpetual securities assume 40 yrs. Please see the last page of this report for detail. Page 7 of 44 PPENHEIMFR PORTFOLIO CASH FLOW CITY OF HUTCHINSON report as or yi 111 a ESTIMATED ANNUAL COUPON CASH FLOW SUMMARY Jan Feb Mar ADr May Jun Jul Aug Seal Oct Nov Dec Total %Tot Agency $15,500 $5,000 - $5,000 - - $15,500 $5,000 - $5,000 - - $51,000 12.0% CD $16,775 $22,571 $29,642 $15,343 $34,422 $23,499 $16,775 $22,571 $29,642 $15,343 $34,422 $23,499 $284,506 66.8% Muni:Non AMT - - - - - - - - - - - - - Muni:Subj AMT - - - - - - - - - - - - - Muni:Taxable $3,234 $13,363 - $7,095 $21,643 - $3,234 $13,363 - $7,095 $21,643 - $90,668 21.3% Total $35,509 $40,933 $29,642 $27,438 $56,065 $23,499 $35,509 $40,933 $29,642 $27,438 $56,065 $23,499 $426,174 Fed Taxable $35,509 $40,933 $29,642 $27,438 $56,065 $23,499 $35,509 $40,933 $29,642 $27,438 $56,065 $23,499 $426,174 100.0% Fed TaxExempt - - - - - - - - - - - - - Subj to AMT - - - - - - - - - - - - - $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 - --- 0-11- - - T - All. $O Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec E-Su:bj AMT 1-1 Fed TaxExempt ❑ Fed Taxable Please see the last page of this report for detail. Page 37 of 44 (_jPPENHEIMFR PORTFOLIO POSITION DETAIL CITY OF HUTCHINSON report as of 411119 Page 1 of 3 A Type St Qty Cp. Maturity dy S&P % Mkt Duration Acq Cost Acq Yid $ Acq Cost Mkt Price Accrued Int Security Description C CUSIP Insurer Convexity Acq Date Mkt Yid $ Adj Cost Mkt $ Value Unreal Gn/Ls METROPOLITAN TRANSN AUTH N Y SPL O Muni -Taxable NY 350 1.848 07/01/19 Aaa 1.93% 0.24 $99.81 2.503 $349,346 99.78 $1,653 Make Whole Call Only - Make Whole Call Exp 59261 EAE9 0.00 03/19/19 2.729 $349,346 $349,241 ($105) RIVERSIDE CALIF CMNTY COLLEGEDIST Muni -Taxable CA 500 2.345 08/01/19 Aa2 AA 2.76% 0.32 $101.50 1.657 $507,485 99.92 $2,019 TAXABLE -Material Events 76886PFA6 0.00 05/09/17 2.584 $501,110 $499,595 ($1,515) AMERICAN EXPRESS FSB CD 247 2.150 11/13/19 NR NR 1.36% 0.60 $100.00 2.150 $247,000 99.83 $2,051 Conditional Puts - Death of holder - Restrict 02587CCR9 0.01 05/09/17 2.427 $247,000 $246,580 ($420) CIT BK SALT LAKE CITY UTAH CD 240 2.100 11/13/19 NR NR 1.32% 0.60 $100.00 2.100 $240,000 99.80 $1,947 Conditional Puts - Death of holder - Restrict 17284C3N2 0.01 05/09/17 2.428 $240,000 $239,518 ($482) BMW BANK OF NORTH AMERICA - UT CD 245 1.550 12/16/19 NR NR 1.35% 0.69 $100.00 1.550 $245,000 99.37 $1,144 Conditional Puts - Death of holder - Restrict 05580AFT6 0.01 05/09/17 2.457 $245,000 $243,452 ($1,548) TBK BK SSB DALLAS TEX CD 245 1.600 12/16/19 NR NR 1.35% 0.70 $100.00 1.596 $245,000 99.40 $215 Callable 06/19@100 - Conditional Puts - Dea 87219RBC7 0.01 05/09/17 2.457 $244,993 $243,537 ($1,456) BARCLAYS BANK DELAWARE CD 240 2.050 12/17/19 NR NR 1.32% 0.69 $100.00 2.049 $240,000 99.75 $1,442 Conditional Puts - Death of holder 06740KJC2 0.01 05/09/17 2.406 $240,005 $239,398 ($608) SALLIE MAE BK SLT LAKE CITY UT CD 245 1.750 03/09/20 NR NR 1.35% 0.92 $100.00 1.749 $245,000 99.32 $305 Conditional Puts - Death of holder - Restrict 795450ZT5 0.01 05/09/17 2.490 $244,984 $243,332 ($1,652) CONNECTICUT ST GO BDS Muni -Taxable CT 560 2.534 04/15/20 Al A 3.09% 1.00 $100.92 2.140 $565,124 99.88 $6,622 TAXABLE -Material Events 20772JEK4 0.02 11/21/17 2.657 $562,240 $559,300 ($2,940) MASSACH USETTS ST GO BDS Muni -Taxable MA 500 2.090 05/01/20 Aa1 AA 2.75% 1.05 $100.00 2.090 $499,995 99.52 $4,412 TAXABLE -Material Events 57582P2T6 0.02 05/09/17 2.543 $499,995 $497,605 ($2,390) MB FINL BK NA CHIC. IL CD 245 1.300 05/11/20 NR NR 1.34% 1.10 $100.00 1.300 $245,000 98.99 $201 Conditional Puts - Death of holder - Restrict 55266CRK4 0.01 05/09/17 2.229 $245,000 $242,513 ($2,487) CENTENNIAL BK CONWAY ARK CD 245 1.300 05/20/20 NR NR 1.34% 1.12 $100.00 1.300 $245,000 98.91 $122 Conditional Puts - Death of holder 15135KBA8 0.01 05/09/17 2.279 $245,000 $242,322 ($2,678) THIRD FED SVGS & LN ASSN OF CD 245 1.900 09/15/20 NR NR 1.34% 1.42 $100.00 1.900 $245,000 99.18 $242 Conditional Puts - Death of holder - Restrict 88413QBQO 0.03 09/15/17 2.474 $245,000 $243,001 ($1,999) CAPITAL ONE, NATIONAL ASSOCIATION CD 245 1.400 09/21/20 NR NR 1.33% 1.44 $100.00 1.400 $245,000 98.25 $122 Conditional Puts - Death of holder 14042RCA7 0.03 05/09/17 2.621 $245,000 $240,708 ($4,292) WEBBANK CD 245 2.000 09/28/20 NR NR 1.35% 1.46 $100.00 2.000 $245,000 99.32 $81 Callable 04/19@100 - Conditional Puts - Dea 947547JR7 0.02 09/28/17 2.469 $245,000 $243,322 ($1,678) WEX BK MIDVALE UTAH CD 245 2.000 10/19/20 NR NR 1.34% 1.50 $100.00 2.000 $245,000 99.29 $2,242 Conditional Puts - Death of holder - Restrict 92937CGB8 0.03 10/18/17 2.468 $245,000 $243,268 ($1,732) FIRST BUSINESS BK MADISON WIS CD 245 1.400 11/13/20 NR NR 1.33% 1.57 $100.00 1.400 $245,000 98.32 $1,325 Conditional Puts - Death of holder 31938QR89 0.03 05/09/17 2.467 $245,000 $240,877 ($4,123) CAPITAL ONE BK USA NATL ASSN CD 245 2.050 12/29/20 NR NR 1.34% 1.69 $100.00 2.049 $245,000 99.30 $1,307 Conditional Puts - Death of holder 14042OS43 0.04 05/09/17 2.460 $245,008 $243,287 ($1,720) MORGAN STANLEY BANK NA CD 245 2.500 02/01/21 NR NR 1.36% 1.77 $100.00 2.500 $245,000 100.08 $1,024 Conditional Puts - Death of holder 61747MJ36 0.04 02/01/18 2.454 $245,000 $245,194 $194 CITIBANK NATIONAL ASSOCIATION CD 245 2.700 03/29/21 NR NR 1.36% 1.93 $100.00 2.700 $245,000 100.49 $91 Conditional Puts - Death of holder - Restrict 17312QH77 0.05 03/29/18 2.447 $245,000 $246,196 $1,196 COMMUNITY BK PASADENA CALIF CD 245 1.550 06/15/21 NR NR 1.33% 2.16 $100.00 1.550 $245,000 98.03 $198 Conditional Puts - Death of holder - Restrict 203507BA5 0.05 05/09/17 2.469 $245,000 $240,178 ($4,822) EAST BOSTON SVGS BK MA CD 245 1.500 06/23/21 NR NR 1.32% 2.16 $100.00 1.500 $245,000 97.79 $1,017 Conditional Puts - Death of holder 27113PBEO 0.06 05/09/17 2.526 $245,000 $239 586 $5 415 Please see the last page of this report for detail. Page 39 of 44 CITY OF HUTCHINSON POSITION DETAIL as of 0410112019 Page 2 of 3 Security Description A Type St C CUSIP Qty Cpn Maturity Mdy S&P % Mkt Insurer Duration Convexity Acq Cost Acq Date Acq Yid Mkt Yid $ Acq Cost $ Adj Cost Mkt Price Mkt $ Value Accrued Int Unreal Gn/Ls FEDERAL HOME LN MTG CORP CALL 2% Agency 500 2.000 07/26/21 Aaa AA- 2.74% 2.24 $100.00 2.000 $500,000 99.17 $1,833 Callable 04/19@100 3134GBYJ5 0.06 07/26/17 2.370 $500,000 $495,845 ($4,155) ALLY BK MIDVALE UTAH CD 245 2.950 08/02/21 NR NR 1.37% 2.23 $100.00 2.950 $245,000 100.90 $1,188 Conditional Puts - Death of holder 02007GEC3 0.06 08/02/18 2.550 $245,000 $247,198 $2,198 FIRST FINANCIAL NORTHWES CD 245 2.950 08/16/21 NR NR 1.35% 0.04 $100.00 2.950 $245,000 100.03 $356 Callable 04/19@100 - Conditional Puts - Dea 32022MBC1 0.00 08/16/18 2.160 $245,000 $245,069 $69 TOWNEBANK PORTSMOUTH VA CD 245 3.000 09/27/21 NR NR 1.37% 2.38 $100.00 3.000 $245,000 100.97 $161 Conditional Puts - Death of holder - Restrict 89214PCA5 0.07 09/26/18 2.597 $245,000 $247,364 $2,364 FEDERAL HOME LOAN MORTGAGE CORP Agency 500 2.000 10/28/21 Aaa AA+ 2.76% 0.56 $100.00 1.000 $500,000 99.91 $4,278 Callable 04/19@100 - Multi -Step Coupon 3134GASK1 0.01 05/09/17 2.151 $500,000 $499,570 ($430) FOCUS BK CHARLESTON MO CD 245 2.100 11/24/21 NR NR 1.34% 2.53 $100.00 2.100 $245,000 98.60 $1,832 Conditional Puts - Death of holder 34415LAN1 0.08 11/24/17 2.648 $245,000 $241,580 ($3,420) MIZRAHI TEFAHOT BANK, LTD CD 245 2.000 11/30/21 NR NR 1.35% 0.65 $100.00 1.247 $245,000 99.72 $456 Callable 05/19@100 - Multi -Step Coupon - Co 606857Q78 0.01 05/09/17 2.426 $245,000 $244,316 ($684) STATE BK INDIA NEW YORK N Y CD 247 2.350 01/26/22 NR NR 1.35% 2.69 $100.00 2.349 $247,000 99.05 $1,065 Conditional Puts - Death of holder - Restrict 8562845Z3 0.09 05/09/17 2.700 $247,027 $244,661 ($2,366) GOLDMAN SACHS BK USA NY CD 247 2.300 03/08/22 NR NR 1.35% 2.81 $100.00 2.299 $247,000 98.78 $405 Conditional Puts - Death of holder 38148PGX9 0.09 05/09/17 2.736 $246,982 $243,984 ($2,998) SYNCHRONY BANK CD 245 2.400 04/07/22 NR NR 1.34% 2.85 $100.00 2.400 $245,000 98.98 $2,868 Conditional Puts - Death of holder - Restrict 87164XPZ3 0.10 05/09/17 2.755 $245,000 $242,503 ($2,497) MARYSVILLE MICH PUB SCHS DIST GO U Muni -Taxable MI 500 2.317 05/01/22 Aa1 2.75% 2.92 $98.85 2.565 $494,230 99.44 $4,891 TAXABLE -Material Events 574446GV6 0.10 05/09/17 2.506 $494,230 $497,220 $2,990 NEW YORK N Y CITY TRANSITIONAL FIN A Muni -Taxable NY 500 1.650 05/01/22 Aa1 AAA 2.68% 2.95 $99.43 1.771 $497,125 97.10 $3,483 Make Whole Call Only - Make Whole Call Exp 64971 WJ35 0.10 05/09/17 2.636 $497,125 $485,510 ($11,615) JP MORGAN CHASE BANK NA CD 245 1.500 05/31/22 NR NR 1.35% 2.10 $100.00 1.243 $245,000 99.33 $1,248 Callable 05/19@100 - Multi -Step Coupon - Co 48125Y21_7 0.06 05/09/17 2.048 $245,000 $243,351 ($1,649) CFBANK FAIRLAWN OHIO CD 245 3.250 07/19/22 NR NR 1.37% 3.12 $100.00 3.250 $245,000 101.45 $327 Conditional Puts - Death of holder - Restrict 15721 UCT4 0.10 12/19/18 2.788 $245,000 $248,557 $3,557 FEDERAL HOME LN MTG CORP CALL STE Agency 1,000 2.100 07/27/22 Aaa AA+ 5.51% 2.24 $100.00 2.100 $1,000,000 99.62 $3,792 Callable 04/19@100 - Multi -Step Coupon 3134GBYN6 0.06 07/27/17 2.334 $1,000,000 $996,160 ($3,840) AMERICAN EXPRESS CENTURIAN BK CTF CD 245 2.350 08/08/22 NR NR 1.33% 3.18 $100.00 2.350 $245,000 97.98 $852 Conditional Puts - Death of holder - Restrict 02587DV47 0.12 08/08/17 2.985 $245,000 $240,061 ($4,939) FEDERAL HOME LOAN MORTGAGE CORP Agency 500 2.000 08/22/22 Aaa 2.75% 1.84 $100.00 2.000 $500,000 99.40 $1,111 Callable 05/19@100 - Multi -Step Coupon 3134GBB27 0.04 08/22/17 2.392 $500,000 $496,995 ($3,005) ALLEGIANCE BK TEX HOUSTON CD 245 2.200 11/03/22 NR NR 1.33% 3.44 $100.00 2.200 $245,000 97.85 $0 Conditional Puts - Death of holder - Restrict 01748DAY2 0.12 11/03/17 2.830 $245,000 $239,742 ($5,258) DISCOVER BK CD 245 2.450 11/18/22 NR NR 1.34% 3.41 $100.00 2.450 $245,000 98.68 $2,237 Conditional Puts - Death of holder 254672WU8 0.14 05/09/17 2.834 $245,000 $241,771 ($3,229) WELLS FARGO BK N A SD CD 245 2.250 11/23/22 NR NR 1.35% 0.14 $100.00 1.650 $245,000 100.04 $1,978 Callable 05/19@100 - Multi -Step Coupon - Co 94986TWE3 0.00 05/09/17 1.971 $245,000 $245,088 $88 BMO HARRIS BK NATL ASSN CHICAG CD 245 3.000 02/15/23 NR NR 1.36% 0.36 $100.00 3.000 $245,000 100.24 $946 Callable 08/19@100- Conditional Puts -Dea 05581WL45 0.00 02/15/19 2.339 $245,000 $245,588 $588 MEDALLION BK UTAH CD 245 2.850 03/06/23 NR NR 1.35% 3.70 $100.00 2.850 $245,000 99.92 $555 Conditional Puts - Death of holder - Restrict 58404DDMO 0.15 03/05/19 2.872 $245,000 $244,802 ($198) CATHAY BK LOS ANGEL CALIF CD 245 3.150 06/08/23 NR NR 1.37% 3.86 $100.00 3.150 $245,000 101.00 $2,453 Conditional Puts - Death of holder - Restrict 149159MQ5 0.18 06/08/18 2.892 $245,000 247 460 $2 460 Please see the last page of this report for detail. Page 40 of 44 CITY OF HUTCHINSON POSITION DETAIL as of 0410112019 Page 3 of 3 Security Description A Type St C CUSIP Qty Cpn Maturity Mdy S&P % Mkt Insurer Duration Convexity Acq Cost Acq Date Acq Yid Mkt Yid $ Acq Cost $ Adj Cost Mkt Price Mkt $ Value Accrued Int Unreal Gn/Ls STATE BANK OF LISMORE LISMORE MN CD 245 3.100 06/27/23 NR NR 1.37% 3.96 $100.00 3.100 $245,000 100.81 $146 Conditional Puts - Death of holder 856425AR4 0.17 06/27/18 2.897 $245,000 $246,982 $1,982 INDUSTRIAL & COML BK CHINA USA CD 245 3.300 06/30/23 NR NR 1.38% 3.96 $100.00 3.300 $245,000 101.61 $89 Conditional Puts - Death of holder - Restrict 45581 EAX9 0.17 08/30/18 2.897 $245,000 $248,940 $3,940 MIDWEST INDPT BK MO CD 245 3.150 09/18/23 NR NR 1.37% 4.15 $100.00 3.150 $245,000 100.99 $359 Conditional Puts - Death of holder 59833LAF9 0.18 09/17/18 2.913 $245,000 $247,430 $2,430 MORGAN STANLEY PVT BK PURCHASE CD 245 3.550 11/08/23 NR NR 1.39% 4.17 $100.00 3.550 $245,000 102.38 $3,479 Conditional Puts - Death of holder 61760ARSO 0.20 11/08/18 2.992 $245,000 $250,831 $5,831 CELTIC BK SALT LAKE CITY UTAH CD 245 3.500 11/30/23 NR NR 1.36% 0.16 $100.00 3.500 $245,000 100.20 $94 Callable 05/19@100 - Conditional Puts - Dea 15118RQF7 0.00 11/30/18 2.190 $245,000 $245,500 $500 MERRICK BK SOUTH JORDAN UTAH CD 245 3.600 12/07/23 NR NR 1.37% 0.67 $100.00 3.600 $245,000 100.84 $652 Callable 12/19@100 - Conditional Puts - Dea 59013J5R6 0.01 12/07/18 2.358 $245,000 $247,048 $2,048 LIVE OAK BANKING COMPANY WILMINGT CD 245 2.500 12/13/23 NR NR 1.33% 4.42 $100.00 2.500 $245,000 98.11 $34 Conditional Puts - Death of holder 538036CZ5 0.21 12/13/17 2.930 $245,000 $240,377 ($4,623) BANK HAPOALIM B M NEW YORK CD 245 3.200 01/23/24 NR NR 1.37% 4.40 $100.00 3.200 $245,000 101.17 $1,504 Conditional Puts - Death of holder - Restrict 06251AV80 0.23 01/23/19 2.936 $245,000 $247,864 $2,864 FIRST NATIONAL BANK/DAMA CD 245 3.250 02/14/24 NR NR 1.36% 0.85 $100.00 3.250 $245,000 100.73 $436 Callable 02/20@100 - Conditional Puts - Dea 32117BCS5 0.01 02/14/19 2.395 $245,000 $246,798 $1,798 COMENITY CAP BK UTAH CD 245 3.100 02/15/24 NR NR 1.36% 4.51 $100.00 3.100 $245,000 100.72 $395 Conditional Puts - Death of holder - Restrict 20033AP91 0.22 02/15/19 2.942 $245,000 $246,759 $1,759 UBS BK USA SALT LAKE CITY UT CD 245 2.900 04/03/24 NR NR 1.35% 4.65 $100.00 2.900 $245,000 99.92 $0 Conditional Puts - Death of holder 90348JJQ4 0.23 04/03/19 2.918 $245,000 $244,794 ($206) SILVERGATE BK LA JOLLA CALIF CD 245 2.950 04/08/24 NR NR 1.36% 0.50 $100.00 2.950 $245,000 100.14 $0 Callable 10/19@100 - Conditional Puts - Dea 828373FL9 0.00 04/08/19 2.677 $245,000 $245,333 $333 COMMERCE CALIF CMNTY DEV COMMN S Muni -Taxable CA 500 3.000 08/01/24 AA 2.78% 4.87 $105.32 2.200 $526,595 100.39 $2,583 DID - TAXABLE - Material Events -AGMC, in 20056UAV6 AGMC 0.27 05/09/17 2.919 $519,995 $501,965 ($18,030) NEW YORK N Y CITY TRANSITIONAL FIN A Muni -Taxable NY 500 2.600 11/01/24 Aa1 AAA 2.72% 5.09 $97.35 2.998 $486,750 98.46 $5,489 Callable 11/22@100 -TAXABLE -Material Ev 64971QJ38 0.30 05/09/17 2.901 $486,750 $492,295 $5,545 HSBC BANK USA, NATIONAL ASSOCIATIO CD 240 2.250 03/11/25 NR NR 1.32% 0.92 $100.00 2.249 $240,000 99.57 $340 Callable 03/20@100 - Multi -Step Coupon - Co 40434ASB6 0.01 05/09/17 2.710 $240,000 $238,978 ($1,022) Please see the last page of this report for detail. Page 41 of 44 PPENHEIMFP, TOTAL POSITIONS Original Face Value Current Face Value Est Annual Incoq e Valid Positions Ermeptions Total Positions Includes all positions °ldtwrecognihed Cz UIP and valid Suantity provided Please see emeption report for positions not included in reports7 PORTFOLIO OVERVIEW CITY OF HUTCHINSON HOSPITAL report as of 411119 POSITIONS INCLUDED IN PORTFOLIO ANALYSIS $ 6,„7, $ 6 7 Estimated Portfolio Totals $44330. 7, , POSITIONS W/ MARKET PRICE Original Face Value 4 Current Face Value 1 Market Value b Accrued Interest I Total Market Value Priced Orig7Face Value $. 6, , , 7, , Priced Current Face Value $. 6, , , 7, , Priced Positions 4 of 4 Priced Market Principal $. 053306�6, Average Coupon 472.9 Average Price 55T8 Includes all positions %twrecognihed Cz UIP3Suantity and q arket price on report date7 Original Face: t- original dollarvalue at issuance Current Face: tv�e dollarvalue afterhw current factor is applied Positions Estimated Portfolio Averages $. 6, � , , 7, , Coupon 472. 9 $. 6, � , , 7, , Maturity 74, yrs $. 053306Z, Effective Maturity 74, yrs $8318, 7, 0 Modified Duration , 715 $. 62T516T0 Yield to Maturity 47269 Yield to Worst 47269 4 of 4 Market Price 55T8 Rating a a Includes all positions %twrecognihed Cz UIP3Suantity3q arket price and derived calculations on report date7 Coupon and Market Price °keigvded xy Current Face Value3all ot— °keigU<ted xy Market Value7 Please see Ne last page of tvAs report for detai17 Page 4 of 41 PPENHEIMEI, PORTFOLIO SUMMARY - CURRENT FACE VALUE WEIGHTED - ALL SECURITY TYPES CITY OF HUTCHINSON HOSPITAL report as of 411119 PORTFOLIO SUMMARY HOLDINGS BY SECURITY TYPE Portfolio Totals Fed Exempt Fed Taxable Total Positions Face (000) %Face Current Face Value - $850,000 $850,000 Agency - - - Positions - 2 2 of 2 Asset Backed - - - Accrued Interest - $7,170 $7,170 CD - - - Est Annual Income - $22,748 $22,748 CEF - - - CMO * Portfolio Average Corp - - - Avg Coupon Rate - 2.676% 2.676% Muni 2 $850.0 100.0% Avg Maturity - 0.2yrs 0.2yrs Pass Thru - - - Preferred Treas - - - Total 2 $850.0 100.0 * Current Face Value -weighted. For Avo Maturity calculations, Deroetual securities assume 40 vrs * Current Face Value -weighted PORTFOLIO RATING SUMMARY RATING DISTRIBUTION **Ratina Positions Face (000) % Face AAA ai AAA 1 $350.0 41.2% 59 AA 1 $500.0 58.8% m > AA A BAA u A Below BAA - - - v BAA O NR m c Below Total 2 $850.0 100.0% u BAA v a NR 0 10 20 30 40 s0 60 ** Best of Short/Long term equivalent Moody's or Standard & Poor's Rating. Current Face Value -weighted. Best of Short/Long term equivalent Moody's or Standard & Poor's Rating. Current Face Value -weighted. Please see twe last page of twis report for detail7 Page 0 of 41 PPFh'H!" !AFR, PORTFOLIO SUMMARY - CURRENT FACE VALUE WEIGHTED - ALL SECURITY TYPES CITY OF HUTCHINSON HOSPITAL report as of 411119 MATURITY SCHEDULE Year Face(000) % Year Face(000) 2019 $850.0 100.0% 2033 - 2020 - - 2034 - - 2021 - - 2035 - - 2022 - - 2036 - - 2023 - - 2037 - - 2024 - - 2038 - - 2025 - - 2039 - - 2026 - - 2040 - - 2027 - - 2041 - - 2028 - - 2042 - - 2029 - - 2043+ - - 2030 - - Perpetual - - 2031 2032 MATURITY EXPOSURE 100 80 W 60 Q LL e 401 20 0 o1p 1p01�10tl O,t90tb0,�90,t60,V10,t, 11t ,�00�10,�'60,�90,�b0,�904, !A, 0�60�90b00p10pb �x Jp� 'b 'b 'b 'b 'b 'b 'b 'b 'b 'b 'b 'b 'b 'b Q2 Current Face Value-weightetl. ESTIMATED COUPON CASH FLOW SUMMARY Jan Feb Mar ADr Max Jun Jul Aug Sep Oct Nov Dec Total Muni:Non AMT - - - - - - - - - - - - - Muni:Subj AMT - - - - - - - - - - - - - Muni:Taxable $3,234 - - - - $8,140 $3,234 - - - - $8,140 $22,748 Total $3,234 Reflects extended cash flow estimates assum $8,140 $3,234 as of report date. Please refer to Definitions for more complete explanation. Please see twe last page of twis report for detail7 Page 6 of 41 - $8,140 $22,748 PPENHEIMEI, PORTFOLIO SUMMARY - MARKET VALUE WEIGHTED - ALL SECURITY TYPES CITY OF HUTCHINSON HOSPITAL report as of 411119 I PORTFOLIO SUMMARY 1 Portfolio Totals Fed Exempt Fed Taxable Total Priced Current Face - $850,000 $850,000 Positions - 2 2 of 2 Market Value - $849,746 $849,746 Accrued Interest - $7,170 $7,170 Total Market Value - $856,916 $856,916 Est Annual Income - $22,748 $22,748 Portfolio Averages ** Coupon Rate - 2.676% 2.676% Maturity - 0.2yrs 0.2yrs Effective Maturity 0.2yrs 0.2yrs Modified Duration 0.2 0.2 Yield To Maturity - 2.65% 2.65% Yield To Worst - 2.65% 2.65% ** Market Price - 88.870 99.970 ** Par Value wtd, other avgs Mkt Value wtd. Ind only positions with mkt value & calcs on report date. For perpetual securities avg calcs, Final Maturity assume 40 yrs, Yield to Maturity uses strip yield. PORTFOLIO RATING SUMMARY ❑ AAA 41.1% ❑ AA s8.9% ❑ A 0.0% ❑ BAA 0.0% ❑ Below BAA 0.0% ❑ NR 0.0% Total: 100.0% Includes only positions with market value & calculations on report date. Market Value -weighted. POSITIONS BY SECURITY TYPE Agency 0.0% Asset Backed 0.0% CD 0.0% CEF 0.0% CMO 0.0% Corp 0.0% Muni 100.0% Pass Thru 0.0% ■ Preferred 0.0% Treas 0.0% Total: 100.0% Includes only positions with market price & calculations on report date. Market Value -weighted. 100 90 80 70 ~y 60 F s0 0 40 30 20 10 0 SECURITY FEATURES Ga�`9,o ocG 0+0`0 Ca+9,o Q9�0 iQO,`o Includes only positions with market price & calculations on report date. Market Value -weighted. Please see twe last page of twis report for detail7 Page 2 of 41 PPEINHFIMEI1 PORTFOLIO SUMMARY - MARKET VALUE WEIGHTED - ALL SECURITY TYPES CITY OF HUTCHINSON HOSPITAL report as of 411119 MATURITY EXPOSURE 100 80 F 60 Y i e 40 20 0 �`� ti° ti�tititi3 ti°` by ti6 ti� ti$ ti° 3° 3�3ti33 3°` 3y 363� 3$ 3° a° a'� ati3X oa• ,yo ,p ,p ,p ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,y0 ,l0v00, 0t Q Includes only positions with market price & calculations on report date. Market Value -weighted. DURATION EXPOSURE 100 80 Y 60 i 40 20 0 oN01'10110`'odo�060°',�°,y'r,�tiy3,�°`,y`',yd,y�,�6,y°'ti°�,'rtiti�3;v°`ry`'ryd���6�°'0" Includes only positions with market price & calculations on report date. Market Value -weighted. PORTFOLIO EXPOSURE MaturitV Effective Maturity Duration to Worst Average: 0.20yrs Average: 0.20yrs Average: 0.19 Year $ Mkt % Mkt $ Mkt % Mkt Year $ Mkt % Mkt 2019 $856,916 100.0% $856,916 100.0% 00-01 $856,916 100.0% 2020 - - - 01-02 - 2021 - - - 02-03 - 2022 - - - 03-04 - 2023 - - - 04-05 - 2024 - - - 05-06 - 2025 - - - 06-07 - 2026 - - - 07-08 - 2027 - - - 08-09 - 2028 - - - 09-10 - 2029 - - - 10-11 - 2030 - - - 11-12 - 2031 - - - 12-13 - 2032 - - - 13-14 - 2033 - - - 14-15 - 2034 - - - 15-16 - 2035 - - - 16-17 - 2036 - - - 17-18 - 2037 - - - 18-19 - 2038 - - - 19-20 - 2039 - - - 20-21 - 2040 - - - 21-22 - 2041 - - - 22-23 - 2042 - - - 23-24 - 2043+ - - - 24-25 - Perpet -' ' - - 25-26 - 26-27 27-28 28-29 30+ Avg life used in Effective Maturity for principal pay -downs. Includes only positions with market price & calculations on report date. Market Value -weighted. For Avg Maturity calculations, perpetual securities assume 40 yrs. Please see twe last page of twis report for detail7 Page 8 of 41 PPENHEIMER PORTFOLIO CASH FLOW CITY OF HUTCHINSON HOSPITAL report as of 411119 ESTIMATED ANNUAL COUPON CASH FLOW SUMMARY Jan Feb Mar Agr Max Jun Jul Aug Sea) Oct Nov Dec Total %Tot Muni:Non AMT - - - - - - - - - - - - - Muni:Subj AMT - - - - - - - - - - - - - Muni:Taxable $3,234 - - - - $8,140 $3,234 - - - - $8,140 $22,748 100.0% Total $3,234 - - - - $8,140 $3,234 - - - - $8,140 $22,748 Fed Taxable $3,234 - - - - $8,140 $3,234 - - - - $8,140 $22,748 100.0% Fed TaxExempt - - - - - - - - - - - - - Subj to AMT - - - - - - - - - - - - - $10,000 $8,000 $6,000 $4,000 $2,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec SSubj AMT 8 Fed TaxExempt ■ Fed Taxable Please see Ne last page of twis report for detail7 Page 12 of 41 (-jPPENHEIMFR PORTFOLIO POSITION DETAIL CITY OF HUTCHINSON HOSPITAL report as of 411119 Page 1 of 1 Security Description A Type St C CUSIP Qty Cpn Maturity dy S&P % Mkt Insurer Duration Convexity Acq Cost Acq Date Acq Yid Mkt Yid $ Acq Cost $ Adj Cost Mkt Price Mkt $ Value Accrued Int Unreal Gn/Ls GRAND STRAND WTR & SWR AUTH SC W Muni -Taxable SC 500 3.256 06/01/19 Aa2 AA- 58.90% 0.16 $100.32 2.651 $501,580 100.10 $5,517 TAXABLE -Material Events 386475ER4 0.00 11/20/18 2.598 $500,460 $500,505 $45 METROPOLITAN TRANSN AUTH N Y SPL O Muni -Taxable NY 350 1.848 07/01/19 Aaa 41.10% 0.24 $99.81 2.503 $349,346 99.78 $1,653 Make Whole Call Only - Make Whole Call Exp 59261 EAE9 0.00 03/19/19 2.729 $349,346 $349,241 ($105) Please see tAe last page of twis report for detail7 Page 1. of 41 P14p, mkov-, HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY Regular Board Meeting Tuesday, March 19, 2019, 7:00 AM Minutes CALL TO ORDER: Chair Renee Lynn Johnson Kotlarz called the meeting to order. Members Present: Gary Forcier, Eileen Henry and Steve Jensen. Staff Present: Jean Ward and Judy Flemming. 2. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON FEBRUARY 19, 2019 Steve Jensen moved to approve the Minutes of the regular board meeting as written. Gary Forcier seconded and the motion carried unanimously. 3. FINANCIAL REPORTS a. Steve Jensen moved to approve City Center General Fund payments of $28,286.64 for checks 9013 to 9021. Eileen Henry seconded and the motion carried unanimous. b. Steve Jensen moved to approve City Center General Fund payments for checks 9002 to 9012 showing voided check 9008. Eileen Henry seconded and the motion carried unanimous. c. Steve Jensen moved to approve City Center February 28, 2019 financial reports. Gary Forcier seconded and the motion carried unanimously. d. . Eileen Henry moved to approve Park Towers Operating Account payments of $163,083.56 for checks 14572 to 14597. Steve Jensen seconded and the motion carried unanimous. e. Steve Jensen moved to approve Park Towers Security Deposit payments of $210.25 for checks 1576. Gary Forcier seconded and the motion carried unanimous. f. Steve Jensen moved to approve the January 31, 2019 Park Towers financial statements. Gary Forcier seconded and the motion carried unanimously. 4. PARK TOWERS UPDATE a. Occupancy Report: At the beginning of the month, there was one vacant but filled now and will have one next month too. b. Park Towers' March Newsletter — FYI. c. RAD update • Jean Ward reviewed with the Board: o CNA RFP — They had no questions or changes. o RAD Tenant Meetings January 20 & 31' Minutes o RAD Conversion Calendar o PHADA Issue Brief regarding HUD considering Cash Management System • Steve Jensen moved to set the Public Hearing for Tuesday, May 21' at 7:30 AM to Review Significant Amendment to Annual/Five Year Plan for Potential RAD Conversion. Gary Forcier seconded and the motion carried unanimously. March 19, 2019 Minutes Page 1 of 2 5. CONSIDERATION OF REVISIONS TO THE CITY LIVE AND WORK IN HUTCHINSON PROGRAM AND THE CITY HOME IMPROVEMENT PROGRAM Gary Forcier moved to approve the revisions to the City Live and Work in Hutchinson Program and the City Home Improvement Program. Steve Jensen seconded and the motion carried unanimously. 6. CONSIDERATION OF APPROVAL OF CITY HOME IMPROVEMENT GRANT PROGRAM PROJECT FUNDS CONTINGENT TO THE LOAN REVIEW COMMITTEE'S APPROVAL Steve Jensen moved to approve the following City Home Improvement Grant program project funds contingent to the loan review committee's approval: • Live and Work in Hutchinson Grant Program: Kamrath & Brisse • Home Improvement Grant Program plus Impact Owner match: Jimenez • Home Improvement Grant Program - Mobile Home Initiative plus Impact Owner match: Berg Gary Forcier seconded and the motion carried unanimously. 7. BOARD RECOMMENDATIONS FOR HOUSING QUESTIONS FOR CITY OF HUTCHINSON CITIZENS SURVEYS The Board reviewed the 2015 Citizens Survey questions and brainstormed other possible questions. After the discussion, the Board decided to recommend to the City Council to keep the same housing questions as the last survey so that the data can be compared to the benchmark and previous survey. 8. BOARD RECOMMENDATIONS FOR CITY COUNCIL WORKSHOP DATES IN JUNE OR JULY • The Board would like to have Workshop with the City Council on June 11, 2019 at 4PM. Topics of discussion: Year End Numbers, Workforce New Construction, RAD, SDCP updates, other 9. ADJOURNMENT Steve Jensen moved to adjourn and Eileen Henry seconded. There being no other business, Chair Renee Lynn Johnson Kotlarz declared the meeting adjourned. Recorded by Jean Ward, HRA Executive Director Gary F March 19, 2019 Minutes Page 2 of 2 MINUTES HUTCHINSON PLANNING COMMISSION Tuesday, February 19, 2019 5:30 p.m. 1. CALL TO ORDER 5:30 P.M. The February 19, 2019 Planning Commission meeting was called to order by Chair Fahey at 5:30 p.m. Members in bold were present Chair Fahey, Vice Chair Wick, Commissioner Garberg, Commissioner Wirt, Commissioner Sebesta, Commissioner Hantge and Commissioner Forcier. Also present were Dan Jochum, City Planner, Kent Exner, City Engineer, John Olson, City Public Works, John Paulson, City Environmental Specialist, Marc Sebora, City Attorney and Andrea Schwartz, City of Hutchinson Permit Technician 2. PLEDGE OF ALLEGIANCE 3. CONSENT AGENDA A. CONSIDERATION OF MINUTES DATED JANUARY 19, 2019. Motion by Commissioner Forcier, Second by Commissioner Garberg. Motion approved. Motion to Approve — Motion to Reject 4. PUBLIC HEARINGS A. CONSIDERATION OF A SITE PLAN, VACATION OF EASEMENT, REZONE FROM R-1 TO R-4, AND CONDITIONAL USE PERMIT FOR A 38 UNIT ADDITION TO WOODSTONE SENIOR LIVING LOCATED AT 1015 AND 1025 DALE ST SW. Dan Jochum, City Planner addressed the Commission and asked the applicant to give a brief overview of the project. Mr. Jochum then covered the staff report. There was discussion about replacing the fence presented along the SE side of the property with a living fence (evergreens). Commissioner Wick questioned if the fence would be on the property line or have a setback. Mr. Jochum explained that there is not a setback requirement for planting trees/bushes. This will depend on the topography and drainage. There was discussion about the new pond and its capabilities. In the event of an overflow all water would go along the SE side of the property and flow to Cleveland Ave. The City Engineering Department is confident that the new proposed pond will be sufficient for the new addition and my help the current Minutes Hutchinson Planning Commission February 19, 2019 Page 2 water situation. It was decided that it would be a good idea for the developer to look over the overland overflow. Joyce Krcil 1120 Keith St — questioned the depth of the pond and if a fence will be placed around the pond. Also questioned the height of the inlet for the pond so that the water can flow away faster. There was more discussion of the developer looking more into the inlet and outlet. Joyce also asked if the lighting at the facility can be more downcast so that it does not affect neighboring property. Motion by Commissioner Hantge, second by Commissioner Wick to close hearing at 6:10 p.m. Commissioner Forcier will remove herself from any actions on this project as she is a neighbor. Motion by Commissioner Hantge to approve with sixteen staff recommendations with a substitute for recommendation number 14 from a fence to live screening with a minimum starting height of 6 ft; and adding recommendation number 17 for the developer to review the overland overflow. Second by Commissioner Wirt. Motion approved. Item will be on City Council consent agenda on 02/26/2019. Motion to close hearing — Motion to approve with staff recommendations — Motion to reject 5. NEW BUSINESS A. NONE 6. UNFINISHED BUSINESS 7. COMMUNICATION FROM STAFF A. Former KFC site is working on starting their project this project. B. There is a training opportunity for Commissioners to attend that Mr. Jochum will send out to the Commission. C. There will be an application for March for another senior housing addition. 8. ADJOURNMENT Motion by Commissioner Wick, Second by Commissioner Wirt to adjourn at 6:21 p.m. Planning, Zoning and Building Dept. Monthly Report 1st Quarter 2019 Building Department Permit Activities 1st Qtr. 2018 1st Qtr. 2019 2018 Year to Date 2019 Year to Date Total Number Inspections 347 840 347 870 Total Number Plan Review 25 30 25 30 Building Permits Issued by Type Number of Permits & Valuation Number of Permits & Valuation Year to Date Number Permits & Valuation Year to Date Number Permits & Valuation Commercial (new) 2 $6,761,366.00 0 $0.00 2 $6,761,366.00 0 $0.00 Commercial ( additions/remodels) 10 $1,885,415.00 12 $492,500.00 B 10 $1,885,415.00 12 $492,500.00 Total Commercial 12 $8,646,781.00 12 $492,500.00 12 $8,646,781.00 12 $492,500.00 Industrial (new) 0 $0.00 0 $0.00 0 $0.00 0 Industrial (additions/remodels) 3 $918,000.00 0 $0.00 3 $918,000.00 0 $0.00 Total Industrial 3 $918,000.00 0 $0.00 3 $918,000.00 0 $0.00 Fire Sprinkling 3 $51,180.00 2 $4,797.00 3 $51,180.00 2 $4,797.00 New Residential 1 $203,941.00 2 $566,694.00 1 $203,941.00 2 $566,694.00 Residential mist (additions/remodels) 21 $372,571.00 20 $173,735.00 21 $372,571.00 20 $173,735.00 Set Fee permits (reside, reroof, window) 71 $0.00 48 $0.00 711 48 HRA Permits 0 $0.00 1 $0.00 0 $0.00 1 $0.00 Waived Fees 1 $4,000.00 0 $0.00 1 $4,000.00 0 $0.00 Subtotal Building Permits 112 $10,196,473.00 85 $1,237,726.00 112 $10,196,473.00 85 $1,237,726.00 Mechanical 37 $933,653.00 35 $341,890.00 37 $933,653.00 35 $341,890.00 HRA Mechanical 0 $0.00 0 $0.00 0 0 Plumbing 25 $0.00 21 $0.00 25 21 HRA Plumbing 0 $0.00 0 $0.00 0 0 Total Valuation 174 $11,130,126.00 141 $1,579,616.00 174 $11,130,126.00 1411 $1,579,616.00 *Set fees not included in valuation B A Commercial New Commercial/Ind. Remodel 1300 Hwy 15 S (Walmart grocery pick up)- $168,000; 600 Adams St SE (Cenex remodel exterior) - $60,000; 10 Denver Ave SE (Kwik Trip kitchen hood) - $50,000; 1400 Adams St SE (MNDOT interior C offices) - $0,000; 1500 Adams St SE (Creekside overhead door) - $37,000 New Single Family 1470 Southfork Dr SE - $340,750; 189 Denver Ave SE - $225,944 Other Building Inspection Activities Jan 9 - AMBO Board mtg; Jan 16 - SW MN Capter mtg; Feb 5 -AMBO Board mtg; Feb 6, 7, 8 - Region 3 Education; Mar 15 - AMBO Board mtg; Mar 20 - SW MN Chapter mtg Evergreen Meals served January - March Week of Hutchinson Park Towers Silver Lake Glencoe Brownton Stewart week 281 105 4 140 23 71 week 771 344 30 409 128 247 week 1014 439 64 542 173 370 week 728 364 101 608 137 214 week 731 310 30 419 135 190 3525 1562 229 2118 596 1092 Total Meals served January - March 9122 Dates Closed Jan 1 (New Years); Jan 29, 30; Feb 7, 8, 20 (snow) Planning and Zoning Quarterly Activities Year: 1st Quarter, 2019 Activity Number Additional Info. Number of Planning Applications Reviewed and 10 Site Plan, Vacation of Easement, Rezone Processed and Conditional Use Permit for Woodstone Senior Living. Preliminary and Final Plat, Site Plan, Conditional Use Permit, Vacation of Alley and Rezone for Prince of Peace Senior Apartments. Number of Joint Planning Board Applications 0 Reviewed and Processed Number of Planning Commission Meetings 2 Preliminary and Final Plat for Bear Paw Addition; Site Plan for Hutch Health Addition; Site Plan, Vacation of Easement, Rezone and Conditional Use Permit for Woodstone Senior Living. Number of Joint Planning Meetings 1 Board Orientation/Workshop Presentation and Discussion Number of Zoning Reviews for Building Permits 2 (Compliance with Zoning Code Number of Land Use Permits Issued - (Fences, 1 small sheds, patios, driveways, detached decks, etc.) Number of Zoning Review for Sign Permits 11 Number of Predevelopment/Pre Application 7 Hotel, Senior Housing, Commercial, Meetings and Church projects, Cell Tower Number of Misc. Planning Meetings 57 City Council - 5 PBZ Staff Mtg - 5 Directors Mtg - 4 Public Arts - 3 Resource Allocation Mtg Facilities Update - 3 Planning Staff - 2 Directors Coordination Mtg - 9 Rec Center exterior renovation Harrington Merrill House King Motel PD Facility Mtg - 2 FEMA Mtg Facilities Committee Mtg Jim Haugen Dave Sebesta Small Cell Klodt New Discoveries Church Building Dept. Project review (OPG-3) Gordain Group County Commissioners Church Rental Prince of Peace - 2 Historic Hutchinson Parks Master Plan mtg Verizon mtg Planners Day at Capital MCFOA Conference Cell Tower mtg Land Use Seminar (Golden Valley) Number of Zoning Enforcement Cases 6 Number of Walk -In Customers Served 426 Site Visits 10