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cp09-24-19HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, SEPTEMBER 24, 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 — Riverside Church (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. 15095 — Resolution Accepting $500 Donation from James & Arlene Martini for Law Enforcement Memorial Park Fund (b) Resolution No. 15099 — Resolution Accepting Donation from Goldeneye Solutions Inc. for Water Treatment Reverse Osmosis Equipment (c) Resolution No. 15100 — Resolution Accepting $2552.50 Cash Donation from Hutchinson Elks Lodge for Landscaping Pavers at VMF Park and Bicycle Fix -it Station at Recreation Center PUBLIC COMMENTS (T is is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. If you have a question, concern or comment, please ask to be recognized by the mayor — state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to 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) Workshop of September 10, 2019 (b) Regular Meeting of September 10, 2019 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 Improvement Project Change Orders 1. Change Order No. 1 & 2 — Letting No. 1, Project No. 19-01 (5t' Avenue South Reconstruction) 2. Change Order No. 2 — Letting No. 2, Project No. 19-02 (South Grade Road Corridor Improvements) CITY COUNCIL AGENDA September 24, 2019 3. Change Order No. 2 — Letting No. 5, Project No. 19-06 (Technology Drive/West Highland Park Drive Construction) (b) Consideration for Approval of Issuing Parade Permit to Hutchinson High School on October 4, 2019, for Homecoming Parade (c) Consideration for Approval of Spooky Sprint Event on October 26, 2019 (d) Consideration for Approval of Resolution No. 15096 — Resolution Returning Donation to Hutchinson Elks (e) Consideration for Approval of Issuing Short -Term Gambling License to Minnesota Holstein- Fresesian Breeder's Association on April 11, 2020, at McLeod County Fairgrounds (f) Consideration for Approval of Resolution No. 15098 — Resolution to Sell at Auction Surplus Property (2013 Chevrolet Caprice) (g) Consideration for Approval of MnDNR Emerald Ash Borer Tree Planting Grant Opportunity (h) Appointments to Public Arts Commission - Jackie Fuchs to August 2022 - Patrick Hiltner to August 2022 - Kay Voigt to August 2021 (reappointment) (i) 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 COMMUNICATIONS RE UESTS AND PETITIONS (T e purpose oJ this portion oJ the agenda is to provide the Council with information necessary to craft wise policy. Includes items like monthly or annual reports and communications from other entities) UNFINISHED BUSINESS 9. APPROVE/DENY ORDINANCE NO. 19-806 - ORDINANCE REVISING CHAPTER 111 — PEDDLERS AND SOLICITORS 10. APPROVE/DENY ORDINANCE NO. 19-807 — ORDINANCE REVISING CHAPTER 123 — FOOD VENDORS NEW BUSINESS 11. APPROVE/DENY RESOLUTION NO. 15092 — RESOLUTION SETTING HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY 2020 PRELIMINARY TAX LEVY 12. APPROVE/DENY RESOLUTION NO. 15093 — RESOLUTION SETTING HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY 2020 PRELIMINARY TAX LEVY 2 CITY COUNCIL AGENDA September 24, 2019 13. APPROVE/DENY RESOLUTION NO. 15094 — RESOLUTION APPROVING THE GENERAL FUND AND DEBT SERVICE FUND PRELIMINARY 2020 TAX LEVIES 14. APPROVE/DENY RESOLUTIN NO. 15097 — RESOLUTION CALLING FOR A PUBLIC HEARING ON A PROPOSAL FOR THE ISSUANCE OF SENIOR HOUSING FACILITY REVENUE OBLIGATIONS TO FINANCE A SENIOR HOUSING PROJECT 15. APPROVE/DENY SETTING TRUTH IN TAXATION HEARING FOR DECEMBER 5, 2019, AT 6:00 P.M. GOVERNANCE (T e purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 16. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) Hutchinson Public Library Board Minutes from July 22, 2019 b) City of Hutchinson Financial and Investment Reports for August 2019 �c) Hutchinson Housing & Redevelopment Authority Board Minutes from August 20, 2019 d) Tall Grass/Noxious Weed Monthly Report for September 2019 NUSCELLANEOUS 17. STAFF UPDATES 18. COUNCIL/MAYOR UPDATE ADJOURNMENT CITY OF HUTCHINSON RESOLUTION NO. 15095 RESOLUTION ACCEPTING DONATIONS WHEREAS, the City of Hutchinson is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17,- and WHEREAS, the following persons or entities have offered to contribute the cash amounts set forth below to the city: Name of Donor Amount Donation Date James & Arlene Martini $500.00 9/12/2019 WHEREAS, such donation has been contributed to the Hutchinson Police department to the Law Enforcement Memorial Park fund WHEREAS, the City Council finds that it is appropriate to accept the donations offered. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: THAT, the donations described above are hereby accepted by the City of Hutchinson. Adopted by the City Council this 24th day of September 2019. ATTESTED: Matthew Jaunich City Administrator APPROVED: Gary T. Forcier Mayor CITY OF HUTCHINSON RESOLUTION NO. 15099 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 WHEREAS, the following person(s) has offered to contribute the equipment set forth below to the city: Name of Donor Equipment Donation Date Goldeneye Solutions Inc Water Treatment Reverse 06/10/2019 P O Box 456 Osmosis Equipment Little Falls MN 56345 (See Attached) WHEREAS, such donation has been contributed to the Hutchinson Water Treatment Facility. WHEREAS, the City Council finds that it is appropriate to accept the donation offered. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, AS FOLLOWS: THAT, the donation described above is hereby accepted by the City of Hutchinson. Adopted by the City Council this 24th day of September, 2019. APPROVED: Gary T Forcier, Mayor ATTEST: Matthew Jaunich,City Administrator SALVAGED ITEMS Valuation Estimate 6/10/2019 Name / Address City of Hutchinson I I I Hassan Street Hutchinson, Minnesota 55350 Item Description Qty Cost Total Miscellaneous Neptune Mixer JG1.1 AS IS 1 266.40 266.40 Estimated value as of 6/10/2019 Miscellaneous Chromolox heater with 2 thermocouples, 1 2,391.64 2,391.64 thermocouple wire and control panel AS IS Estimated value as of 6/10/2019 Miscellaneous Plas-Tanks 1500 gallon FRP Tank AS IS 1 1,547.60 1,547.60 Estimated value as of 6/10/2019 This estimate is strictly for salvage valuation purposes. Goldeneye Solutions Inc neither provides nor offers ANY warranties with regard to the fitness or employability of this used equipment. USE AT YOUR OWN RISK. Sales Tax (0.0%) so.00 Total $4,205.64 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Elks Lodge #2427 Donations Department: Parks LICENSE SECTION Meeting Date: 9/24/2019 Application Complete N/A Contact: Sara Witte Agenda Item Type: Presenter: Reviewed by Staff ❑ Recognition of Gifts/Donations Time Requested (Minutes): 5 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: The local Elks Lodge #2427 has donated substantially to the City of Hutchinson Park Department in the last couple of years. The purchase and installation of an inclusive playground at Elks Park was a huge project that benefited many in our community and adjacent towns as well. More recently the local Elks Lodge donated to the City on two separate projects totaling $2,552.50 The first one being for the landscaping pavers to go in front of the VMF (Dave Mooney Baseball Complex) flagpole display. This project was a joint effort of the Elks Lodge, American Legion, Huskies and City of Hutchinson Park Dept. The second project was a donation to purchase a second bike fix -it station in our community. The new one will be placed at the Recreation Center/Aquatic Center to better serve the youth traveling to and from the facility on their bicycles. The first bike fix -it station is located along the Luce Line trail near the Police Memorial. PRCE Staff recommends that the City Council accept and recognize the donation from the Elks Lodge for the purchase of the pavers for VMF Flagpole display ($1,326.50) and Rec Center bike fix -it station ($1,226.00). BOARD ACTION REQUESTED: Approval to accept the donation from local Elks Lodge for the two noted projects above. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: Resolution No. 15100 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 service pursuant to Minnesota Statutes Section 471.17; and, WHEREAS, the following organization has offered to contribute the cash amount set forth below to the City of Hutchinson: Name of Donor Amount Hutchinson Elks Lodge $2,552.50 WHEREAS, the donation is being made to assist the City in the purchase of pavers for the VMF Flagpole Display ($1,326.50); and WHEREAS, the donation will also cover the costs for the Rec Center bike fix -it station ($1,226); and WHEREAS, The City Council hereby finds that it is appropriate to accept the donation offered and assign its use to the parks noted above; and WHEREAS, the City Council would like to especially thank the Hutchinson Elks for this gift. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, NHNNESOTA: THAT, the donations described above are hereby accepted by the City of Hutchinson with the conditions as laid out in the resolution. Adopted by the City Council this 24t' day of September 2019. Gary T. Forcier, Mayor Matthew Jaunich, City Administrator HUTCHINSON CITY COUNCIL REVIEW OF 2020 PRELIMINARY BUDGET MINUTES TUESDAY, SEPTEMBER 10, 2019, AT 4:00 PM CITY CENTER — COUNCIL CHAMBERS 1. Call to Order Mayor Forcier called the workshop to order at 4:00 p.m. Members present included Mary Christensen, Steve Cook, Chad Czmowski and Dave Sebesta. Others present were: Matt Jaunich, City Administrator, and other City directors REVIEW OF 2020 PRELIMINARY BUDGET 2. 2020 Preliminary Budget Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that today's agenda will include a review and reminders, the state budget impact, preliminary levy and past levies, general fund revenue and expenses, proposed staff changes, enterprise funds revenue and expenses, debt management plan and next steps. Mr. Jaunich also reviewed the City's mission statement, vision statement, the six core areas of focus, items included to be completed by 2023 in the strategic plan and five long-term goals the Council should consider every budget season. Those goals include: 1. What should future tax levies look like? 2. What levels of services should the City perform and provide in the future? 3. What is an acceptable level of debt? 4. What is our level of investment in technology and equipment, and what period of payback is acceptable? 5. What are our future infrastructure needs (roads, utilities, buildings, etc.) and how are we going to pay for them? Mr. Jaunich reminded the Council that the City Charter requires staff to submit an annual budget by September 1st. The City Charter also requires the Council to act on the preliminary budget by the second regular meeting in September. After the preliminary levy is set, it can only be lowered, not raised. The Council will need to set the date and time of its Truth -in -Taxation hearing at the second meeting in September and provide a phone number and mailing address that taxpayers may call/contact if they have questions related to the City's property tax levy/budget. The hearing is usually held in early December. The budget will be adopted in mid -late December. Mr. Jaunich commented on the State budget situation and reported that while the State's economy has slowed, the State's finances remain sound. Positive balances are expected this biennium and the next. The 2020-21 State budget (February forecast) began with a surplus of $1.052 billion. July's forecast had state revenue collections exceeding the forecast by $636 million. The State's budget reserve continues to be healthy. The next full budget forecast is expected in December. Unallotment and levy limits don't expect to be in place in the near future. The state's budget situation shouldn't have an impact on the City's 2020 budget. Staff is proposing to increase the general tax levy by 3.3%, with a 3.7% increase in the EDA tax levy and a 3.7% increase in the HRA tax levy, with a total tax impact of 3.3%. This includes a 3.9% increase in the general fund and a 0% increase in the debt funds. There is a $45,000 tax abatement allotted for the Uponor project. Mr. Jaunich provided an overview of past tax levies from 2012 to the present. Mr. Jaunich provided the Council four options for the Council to consider for the preliminary tax level. The first option would hold both levies flat; the second option would increase the general fund levy by 3% and the debt levy by 0%; the third option would increase the general fund levy by 4.0% and the debt levy by 0%; and the fourth option would increase the general fund levy by 4.8% and the debt levy by 0%. Mr. Jaunich spoke about a 10-year tax rate trend. Mr. Jaunich provided a market value history which is a 3.7% increase from 2018 to 2019. Mr. Jaunich reviewed general fund revenues and how they are proposed to be increased and decreased, with an average of a 3.9% increase. Property taxes see an increase of 4.7%; other taxes increase 0.0%; licenses & permits decrease 5.2%; intergovernmental revenue increase 11.2%; charges for service decrease of 0.5%; no increase in fines & forfeitures, decrease of 12.8% in miscellaneous revenue, and an increase of 6.8% in transfers -in. The general fund revenues include a 4.7% tax levy increase. $45,000 of this increase is due to the Uponor tax abatement. Without this tax abatement, there would be a3.9% tax levy increase. The general fund revenues include an increase of the transfer from the HUC in the amount of $192,016 or 7.7%. This includes a renegotiated PILOT payment from 2.75% of operating revenue to 4.50 % with a three-year phase in. Next year's payment will be 4.5%. Budgeting all of the LGA increase is in the general fund. The City is in Year 2 of 5 of phasing out HSA funding from the self insurance fund. Permit fees are budgeted to have a slight reduction. Mr. Jaunich noted that a 1% tax levy increase in the general fund is equivalent to $51,100. Mr. Jaunich then spoke about local government aid and explained that 49% of the City's LGA in 2020 has been allocated to the general fund with 51% going to the capital fund. The split in 2018 & 2019 was 46%/54% and in 2017 was 44%/56%. Originally when LGA was split out of the general fund in 2011 it was split 40%/60%. The 2020 LGA is $168,221 higher than 2019 and is fully "restored" minus inflation. General fund expenses are proposed to increase 3.9%. Wages & benefits are increased 3.9%, supplies increased 3.9%, services & charges increased 3.2%, miscellaneous expenses increased 6.7%, transfers -out increased 3.0% and no increase in capital outlay. Mr. Jaunich noted that the largest impact on the City's general fund expenses is associated with wages and benefits which includes costs for general performance increases and staff timing changes and minor shifts. There will be a 7% increase to health insurance next year. It is also being proposed to include the addition of a new full-time Parks Maintenance Operator and the exclusion of a building inspector (not filling a vacancy). This also includes moving the part-time Human Resources/Administrative Technician to full-time. In addition, additional hours for fire fighters have been included due to the Main Street project. The additions also include $45,000 for Uponor tax abatement, $60,000 for software upgrades and additional IT security training and inflation and other miscellaneous costs. Mr. Jaunich explained that the preliminary budget is currently balanced. Mr. Jaunich then reviewed expenditures from 2019 to 2020, historical general fund budget information and staffing levels. Mr. Jaunich reviewed the enterprise funds and their proposed increases. Mr. Jaunich noted that fund numbers include depreciation. He noted that the liquor fund continues to do well, as well as other utility funds. There are no proposed rate changes for garbage, water and sewer. There will be a slight rate increase in the stormwater rates. There will be a decrease in fund balances due to capital needs. There will be no changes in transfers to the general fund from the enterprise funds. Additional budget factors include an $18.41 million capital improvement plan, no significant staffing cuts and/or changes in service, staffing costs and capital needs are the biggest driver of the city's budget with staffing costs being the biggest reason behind the request of a tax levy increase, Uponor tax abatement kicks in next year, this is the last year of HUC increase and fund balances continue to remain healthy. Mr. Jaunich then briefly reviewed the debt management plan with a target debt levy of $2.6 million. The 2020 Debt Management Plan includes the changes from May of 2016 which increased the targeted limit from $2.2 million to $2.6 million. The new project limit is $1.9 million which is up from $1.5 million. After a 5% levy increase in 2015 and a 1% increase in 2016, staff is budgeting for a 0% increase for the fourth straight year and is not expecting a debt levy increase again until 2023. Mr. Jaunich reviewed the following considerations: a 1% levy increase is equal to $73,100, staff is proposing a preliminary City tax levy increase of 3.3% (3.9% increase in general fund), combined with the EDA, HRA and tax abatement levy increases, the total tax impact to Hutchinson residents will be the equivalent to a 3.3% increase, the current budget is balanced, the current proposed tax levy increase would have a small impact on property taxes due to the increase in value. Mr. Jaunich noted again that the biggest factors behind a levy increase are the standard wage and benefit increases expected to cost $290,567 and the first year of the Uponor tax abatement of $45,000. Council Member Cook raised some concerns with the added expenses in the general fund budget. Discussion also centered around shopping around for health care insurance. There were some concerns noted about budget increases year after year. Council Member Cook suggested using some LGA from this year for next year's capital projects fund. Formal action of the preliminary budget will be taken at the September 24, 2019, Council meeting. Morgan Baum — Ms. Baum asked about sales tax increasing and how that effects years after 2020. It was noted there are three elections scheduled in 2020 as well. The consensus of the Council was that they were okay with a 3.3% tax levy increase, but if it could be lowered that would be good too. 3. Adjournment Motion by Czmowski, second by Sebesta, to adjourn the workshop at 5:15 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL MEETING NHNUTES TUESDAY, SEPTEMBER 10, 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, Kent Exner, City Engineer, Marc Sebora, City Attorney. (a) Approve the Council agenda and any agenda additions and/or corrections Matt Jaunich asked the Council to consider adding Item 4(c), Assignment of Copyright and Licensing Agreement with Keith Kamrath, as it pertains to the bronze statute they are donating. Motion by Christensen, second by Sebesta, to approve adding Item 4(c). Motion carried unanimously. 2. INVOCATION — Due to the absence of a pastor, a moment of silence was held. (The invocation is a voluntary expression of theprivate citizen, to and for the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Proclamation — Direct Support Professional Day Mayor Forcier proclaimed September 11, 2019, as Direct Support Professional Day. �b) Resolution No. 15079 — Accepting Donation of Property from Jon and Keith Kamrath c) Assignment of Copyright and Licensing Agreement with Keith Kamrath Keith and Jon Kamrath presented before the Council. The Kamraths would like to donate to the City of Hutchinson a bronze statue of a Word War II army soldier to be placed in the McLeod County Veterans Memorial Park. In accepting the donation, the Council is being asked to approve language for a plaque and the location of the statue within the Veterans Memorial Park. Both the language and the location of the statue have been approved by the Veterans Park Board. Additional conditions have been included in the Resolution as follows: The City will provide any site preparation/landscaping/walkways/installation at the City's expense; The City assumes all future maintenance and liability of the statue upon installation; If repairs or maintenance are required in the future to the statue, the City agrees to consult with Jonathan Kamrath prior to making any changes; and If at any time in the future the City discontinues the public display of the statue, the statue may be donated back to the Kamrath Family at their request. Plans are to have the statute installed Memorial Weekend of 2020. Council Member Cook noted that the Public Arts Commission approved spending $1500 towards the installation costs of the statue. Motion by Cook, second by Czmowski, to approve Resolution No. 15079 and Assignment of Copyright and Licensing Agreement with Keith Kamrath. Motion carried unanimously. CITY COUNCIL MINUTES September 10, 2019 PUBLIC COMMENTS (T is is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. If you have a question, concern or comment, please ask to be recognized by the mayor — state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to 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) Workshop of August 27, 2019 (b) Regular Meeting of August 27, 2019 Motion by Cook, second by Czmowski, to approve minutes as presented. Motion carried unanimously. CONSENT AGENDA (The items iste or consi eration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed.) 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of Resolution No. 15090 - Resolution Establishing Location for Traffic Control Devices ("NO PARKING" Signs to be Removed from the North Side of Denver Avenue SE Between Bradford Street SE and Sherwood Street SE) (b) Consideration for Approval of Wastewater Treatment Facility Ditch Aeration Project Construction (c) Consideration for Approval of 2019 Recycle Aggregate Crushing Services (d) Claims, Appropriations and Contract Payments Motion by Czmowski, second by Christensen, to approve consent agenda. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. - NONE purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) 8. REVIEW OF POTENTIAL CIVIL AIR PATROL SITE AT CITY OF HUTCHINSON AIRPORT John Olson, Public Works Manager, presented before the Council. Minnesota Wing Commander, Col. James Garlough, presented before the Council. Col. Garlough provided a presentation on the Civil Air Patrol. Col. Garlough noted that the CAP has never had a training facility site in Minnesota and is looking for a facility in central Minnesota. This facility would be used for training purposes and other things. Mr. Olson explained that he has met with the McLeod County Fair Board as they will be close neighbors potentially. He has also spoke with the City of Hutchinson Parks staff and McLeod 2 CITY COUNCIL MINUTES September 10, 2019 County Fairgrounds staff to clue them in on facilities that could potentially be needed. Mr. Olson also spoke of getting services hooked up for a CAP facility with the biggest factor being water hookup. There are options that have been identified, most likely off of Edmonton Avenue. A lease agreement would need to be entered into and if the project moves forward, the intention is to have it decided upon by the end of the year so a project could begin in the spring. UNFINISHED BUSINESS 9. APPROVE/DENY ORDINANCE NO. 19-806 - ORDINANCE REVISING CHAPTER I I I — PEDDLERS AND SOLICITORS Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that at the last Council meeting, the Council had made some suggestions for revisions/additions to the proposed ordinance. In addition to those suggestions, Council Member Cook has offered some suggestions to staff since that time. Mr. Sebora reviewed the proposed changes considered at the last Council meeting, along with some staff suggestions and Council Member Cook's suggestions. Motion by Cook, second by Christensen, to table Ordinance Nos. 19-806 and 19-807. Motion carried unanimously. 10. APPROVE/DENY ORDINANCE NO. 19-807 — ORDINANCE REVISING CHAPTER 123 — FOOD VENDORS Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that at the last Council meeting, the Council had made some suggestions for revisions/additions to the proposed ordinance. In addition to those suggestions, Council Member Cook has offered some suggestions to staff since that time. Mr. Sebora reviewed the proposed changes considered at the last Council meeting, along with some staff suggestions and Council Member Cook's suggestions. See action above. NEW BUSINESS 11. APPROVE/DENY AUTHORIZING RESOLUTION NO. 15091 FOR THE SALE OF $5,860,000 GENERAL OBLIGATION IMPROVEMENT AND REFUNDING BONDS, SERIES 2019A Andy Reid, Finance Director, presented before the Council. Mr. Reid reviewed the 2019 bonding process. Three projects are included for the bond sale — 5t' Avenue South reconstruction, South Grade Road Corridor improvements and Technology Drive construction totaling $6.65 million. Mr. Reid reviewed funding of projects costs with 10% coming from property owners via special assessments and 32% from future tax levies. In addition, this bond sale allows for a refinancing opportunity for water and sewer bonded debt. This debt will be repaid by water and sewer operations. Mr. Reid introduced Nick Anhut of Ehlers & Associates. Mr. Anhut presented the 2019 pre -sale report for the issuance of G.O. Improvement Bonds and Refunding Bonds with a par value estimated at $5,860,000. This year's bonding includes the refinancing of the 2009A G.O. Sewer Bonds and the 2009B G.O. Water Bonds to take advantage of the low interest rates. Upon approval of Resolution No. 15091, Ehlers will initiate the process. A bond rating call with city staff will be held and competitive bids will be solicited on behalf of the City of Hutchinson. The bond sale will be CITY COUNCIL MINUTES September 10, 2019 awarded to the winning bidder at the October 8, 2019, Council meeting and the bond proceeds are expected to be received in early November. The future debt service payments related to this bond issuance meet the guidelines of the City's debt management plan and will be paid from the debt tax levy dollars and special assessments received. The debt service related to the Water and Sewer Refundings will be paid by cash provided from operations within the Water and Sewer funds. Motion by Czmowski, second by Christensen, to approve Resolution No. 15091. Motion carried unanimously. 12. APPROVE/DENY SETTING ANNUAL CITY RECOGNITION EVENT/PUBLIC MEETING FOR NOVEMBER 4, 2019 Motion by Czmowski, second by Sebesta, to approve setting annual City recognition event/public meeting for November 4, 2019. Motion carried unanimously. 13. APPROVE/DENY RE -SETTING DECEMBER 24, 2019, CITY COUNCIL MEETING Motion by Czmowski, second by Christensen, to approve re -setting December 24, 2019, City Council meeting to December 19, 2019. Motion carried unanimously. GOVERNANCE (T e purpose o t is portion of the agenda is to deal with organizational development issues, including policies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items.) 14. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) City of Hutchinson Financial Report and Investment Report for July 2019 (b) EDA Board Minutes from July 31, 2019 NHSCELLANEOUS 15. STAFF UPDATES John Olson — Mr. Olson provided an update on 5t' Avenue SW. If all goes well, the street could be open this Friday, September 13t'. He also provided an update on South Grade Road Corridor improvements. All utilities are completed and concrete work and milling work are being conducted. 16. COUNCIL/MAYOR UPDATE Steve Cook — Council Member Cook spoke of the possibility of a tree removal assessment program as some trees start to get in sick condition. John Olson spoke of how staff has worked with property owners in the past on assessment agreements for tree removal on private property. Council Member Cook suggested putting a more formal policy in place to address this practice. Gary Forcier — Mayor Forcier noted that he would like to make two appointments to the Public Arts Commission at the next Council meeting. The appointees he is recommending are Patrick Hiltner and Jackie Fuchs. ADJOURNMENT Motion by Cook, second by Sebesta, to adjourn at 7:15 p.m. Motion carried unanimously. .19 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Approval of Project Change/Work Orders and Supplemental Agreements Department: PW/Eng LICENSE SECTION Meeting Date: 9/24/2019 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: As construction has proceeded on the below listed projects there has been additional work, project scope revisions, and/or construction completion date changes. The items specified below have been identified and deemed necessary to satisfactorily complete the projects per the intent of the original construction contract. The following Change Orders, Supplemental Agreements and/or Work Orders are proposed as noted: - Change Order No. 1 - Letting No. 1/Project No. 19-01 - 5th Avenue South Due to adverse weather conditions, the Stage 1 B Interim Completion Date of August 9, 2019 should be extended to Friday, August 16, 2019. This Change Order does not result in in increase the Contract amount. This action does not change the Final Completion Date. - Change Order No. 2 - Letting No. 1/Project No. 19-02 - 5th Avenue South This Change Order addresses the administration of a required bituminous compaction density and pavement thickness incentive/disincentive specification. This Change Order does result in an increase to the Contract in the amount of $1,420.57. This action does not change the Final Completion Date. - Change Order No. 2 — Letting No. 2/Project No. 19-02 — South Grade Road Corridor Improvements During fairly recent discussions with two adjacent business owners, it was determined that additional business specific routing signage would be appropriate. Thus, five temporary sign installations were requested. This Change Order does result in an increase to the Contract in the amount of $1,292.50. - Change Order No. 2 - Letting No. 5/Project No. 19-06 - Technology Dr NE & West Highland Park Dr NE Due to adverse weather conditions and to protect new concrete pavement, the original Final Completion Date of 08/30/2019 should be extended to Tuesday, 09/03/2019. This Change Order does not result in an increase to the Contract amount. This Change Order does result in an extension of the Final Completion Date. BOARD ACTION REQUESTED: Approval of Change Orders Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: Page 1 of 1 STATE AID FOR LOCAL TRANSPORTATION CHANGE ORDER City/County of City of Hutchinson Change Order No. 2 FEDERAL PROJECT NO. STATE PROJECT NO. LOCAL PROJECT NO. CONTRACT NO. NA NA L5P19-06 L5P19-06 CONTRACTOR NAME AND ADDRESS LOCATION OF WORK Wm Mueller & Sons Inc Technology Dr NE & West Highland Park Dr NE 831 Park Ave, P O Box 247 TOTAL CHANGE ORDER AMOUNT Hamburg, MN 55339 $0.00 In accordance with the terms of this Contract, you are hereby authorized and instructed to perform the work as altered by the following provisions. Issue: The Engineer has determined that due to adverse weather conditions and to protect new concrete pavement, the original Final Completion Date of 08/30/2019 will be extended to Tuesday, 09/03/2019. Resolution: The Contract completion date is hereby revised to read that the Contractor must complete all work under this contract on or before 09/03/2019. COST BREAKDOWN There are no items associated with this Change Order. * Funding category is required for federal projects. CHANGE IN CONTRACT TIME (check one) Due to this change the Contract Time: a. [ ] Is Increased by Working Days b. [ ] Is Not Changed [ ] Is Decreased by Working Days [ X ] Is Increased by 4 Calendar Days c. [ ] May be revised if work affected the controlling operation [ ] Is Decreased by Calendar Days Approved By Project Engineer: Kent Exner Approved By Contractor: Wm Mueller & Sons Inc Signed Signed Date: Phone: (320) 234-4212 Date: Phone: (952) 467-2720 Original to Project Engineer; Copy to Contractor Approved by Hutchinson City Council 09/24/2019. Signed Mayor, Gary Forcier Date: 09/24/2019 Signed City Administrator, Matthew Jaunich Date: 09/24/2019 STATE AID FOR LOCAL TRANSPORTATION CHANGE ORDER City/County of City of Hutchinson Change Order No. 2 FEDERAL PROJECT NO. STATE PROJECT NO. LOCAL PROJECT NO. CONTRACT NO. SAP 133-130-002 L2P19-02 L2P19-02 CONTRACTOR NAME AND ADDRESS LOCATION OF WORK R & R Excavating South Grade Road SW, Hutchinson MN 1149 Hwy 22 South TOTAL CHANGE ORDER AMOUNT Hutchinson, MN 55350 $1,292.50 In accordance with the terms of this Contract, you are hereby authorized and instructed to perform the work as altered by the following provisions. Issue: Lack of signage for businesses. Resolution: Add additional signage. COST BREAKDOWN Item No. Item Unit Unit Price Quantity Amount Funding Category No. 002 2563.602 TRAFFIC CONTROL (SPECIAL) EACH $235.00 5 $1,175.00 1904.000 CONTRACTOR 10% ALLOWANCE LUMP SUM $117.50 1 $117.50 Funding Category No. 002 Total: $1,292.50 Change Order No. 2 Total: $1,292.50 " Funding category is required for federal projects. CHANGE IN CONTRACT TIME (check one) Due to this change the Contract Time: a. [ ] Is Increased by Working Days b. [ X ] Is Not Changed [ ] Is Decreased by Working Days [ ] Is Increased by Calendar Days c. [ ] May be revised if work affected the controlling operation [ ] Is Decreased by Calendar Days Approved By Project Engineer: Kent Exner Approved By Contractor: R & R Excavating Signed Signed Date: Phone: (320) 234-4212 Date: Phone: (320) 587-5918 Original to Project Engineer; Copy to Contractor Once contract has been fully executed, forward a copy to DSAE for funding review: The State of Minnesota is not a participant in this contract; signing by the District State Aid Engineer is for FUNDING PURPOSES ONLY. Reviewed for compliance with State and Federal Aid Rules/Policy. Eligibility does not guarantee funds will be available. This project is eligible for: Federal Funding State Aid Funding Local funds District State Aid Engineer: Date: J y t- \r l�E Al AVL rn )UTI- GRADI ROAD SW w j SOUTH GRADC ROAD SY✓ V) C' 1 P-1- z r 3seN 1$va � t AIN ENTR,ANa: G/ V� CF.NIURY AVL SW i pores: 1] All Cf W OF or Dt , III�yU AV ZCNE xcNE urou-rs STARE CP COW CLN 01L ]) WE CONTRACT[ aAIM n d N0. YI PAR ■�1R� —__.. IpG'A ur i►{T NiwK 11Ni U`�9 DEPM rl: a ---.. I.Mr sa..r�oR,t wa n^ mow ,K u.n - n n i or I,...— p�, � SDIM GRADE ROAD CORRIDOR IMPROVE TRAFFIC APPINAM "< S.A.P. 133-I30-002 MW � nMlm RA1C . _ U.M. MMG NID. 2 /CRY PROJECT I9-02MENTS E JINIIO OLLOtltldOdIHO MONNaa SS3NLId 3NLIANV n N n Qe, x GRADF / T So Lil}'i'.RADE ROAD SW 2 A Z_ A Z n A MOM: 1)■LL S"N tpp [DrMR OF THE Rrsccs. UCUA ZONE uTOLrM' START w QUMS ""TRimok S) THE CQNTKK-g PRR 2C .3 ►' ouwl or, a ie.rmr clnm -w1r n.s n� .ns m�,uao ar��,0,7 -- w1 '�RRRroe¢anrRae �.4r' molm ar. a - - � �.wn � urs �+ +K s+,a a Mru�n.r �CORRID011 IMPROYENENTS � TRAFFIC "�M1OikO°M1� Y PROJECT 19-02 STATE AID FOR LOCAL TRANSPORTATION CHANGE ORDER City/County of City of Hutchinson Change Order No. 2 FEDERAL PROJECT NO. STATE PROJECT NO. LOCAL PROJECT NO. NTRACT NO. 71P19-01 SAP 133-108-006 L1 P19-01 CONTRACTOR NAME AND ADDRESS LOCATION OF WORK Duininck Inc 5th Avenue South 408 6th St, P O Box 208 TOTAL CHANGE ORDER AMOUNT Prinsburg, MN 56281-0208 $1,420.57 In accordance with the terms of this Contract, you are hereby authorized and instructed to perform the work as altered by the following provisions. Issue: The Contract calls for the Contractor to be paid incentive/disincentive for bituminous density and pavement thickness. Resolution: As per specification 2360.3E.1 the Contractor has incurred a pavement disincentive in the amount of $3,366.70 due to thin cores. As per specification 2360.3D.1.q the Contractor has received a bituminous density incentive in the amount of $4,787.27. Thus the total resulting incentive is $1,420.57. COST BREAKDOWN Item No. Item Unit Unit Price Quantity Amount Funding Category No. 001 2360.601 BITUMINOUS INCENTIVE/DISINCENTIVE LUMP SUM ($3,366.70) 1 ($3,366.70) 2360.601 BITUMINOUS INCENTIVE/DISINCENTIVE LUMP SUM $4,787.27 1 $4,787.27 Funding Category No. 001 Total: $1,420.57 Change Order No. 2 Total: $11420.57 " Funding category is required for federal projects. CHANGE IN CONTRACT TIME (check one) Due to this change the Contract Time: a. [ ] Is Increased by Working Days b. [ X ] Is Not Changed [ ] Is Decreased by Working Days [ ] Is Increased by Calendar Days c. [ ] May be revised if work affected the controlling operation [ ] Is Decreased by Calendar Days Approved By Project Engineer: Kent Exner Approved By Contractor: Duininck Inc Signed Signed Date: 09/24/2019 Phone: (320) 234-4212 Date: Phone: (320) 978-6011 Original to Project Engineer; Copy to Contractor Once contract has been fully executed, forward a copy to DSAE for funding review: The State of Minnesota is not a participant in this contract; signing by the District State Aid Engineer is for FUNDING PURPOSES ONLY. Reviewed for compliance with State and Federal Aid Rules/Policy. Eligibility does not guarantee funds will be available. This project is eligible for: Federal Funding State Aid Funding Local funds District State Aid Engineer: Date: STATE AID FOR LOCAL TRANSPORTATION CHANGE ORDER City/County of City of Hutchinson Change Order No. 1 FEDERAL PROJECT NO. STATE PROJECT NO. LOCAL PROJECT NO. NTRACT NO. 71P19-01 SAP 133-108-006 L1 P19-01 CONTRACTOR NAME AND ADDRESS LOCATION OF WORK Duininck Inc 5th Avenue South 408 6th St, P O Box 208 TOTAL CHANGE ORDER AMOUNT Prinsburg, MN 56281-0208 $0.00 In accordance with the terms of this Contract, you are hereby authorized and instructed to perform the work as altered by the following provisions. Issue: The Engineer has determined that due to adverse weather conditions, the Stage 1 B Interim Completion Date of August 9, 2019 should be extended to Friday, August 16, 2019. Resolution: The Engineer has determined that the Stage 1 B Interim Completion Date is extended to Friday, August 16, 2019. COST BREAKDOWN There are no items associated with this Change Order. " Funding category is required for federal projects. CHANGE IN CONTRACT TIME (check one) Due to this change the Contract Time: a. [ ] Is Increased by Working Days b. [ X ] Is Not Changed [ ] Is Decreased by Working Days [ ] Is Increased by Calendar Days c. [ ] May be revised if work affected the controlling operation [ ] Is Decreased by Calendar Days Approved By Project Engineer: Kent Exner Approved By Contractor: Duininck Inc Signed Signed Date: Phone: (320) 234-4212 Date: Phone: (320) 978-6011 Original to Project Engineer; Copy to Contractor Once contract has been fully executed, forward a copy to DSAE for funding review: The State of Minnesota is not a participant in this contract; signing by the District State Aid Engineer is for FUNDING PURPOSES ONLY. Reviewed for compliance with State and Federal Aid Rules/Policy. Eligibility does not guarantee funds will be available. This project is eligible for: Federal Funding State Aid Funding Local funds District State Aid Engineer: Date: HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Homecoming Parade Permit Department: Administration LICENSE SECTION Meeting Date: 9/24/2019 Application Complete Yes Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): License Contingency No Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The City has received a parade permit application from the Hutchinson High School in reference to the 2019 Homecoming Parade. The Annual Homecoming Parade will be held on Friday October 4, 2019. The parade will go from the Middle School Parking lot on South Grade Road then along School Road to the High School parking lot. This request requires South Grade Rd between Dale St and School Rd to be closed, School Rd between South Grade Rd and Roberts Rd between the hours of 12:30 pm and 1:30 pm for this event. The police department has reviewed the application and has no concerns. BOARD ACTION REQUESTED: Approve issuing parade permit to Hutchinson High School on October 4, 2019. Fiscal Impact: $ 500.00 Funding Source: Police FTE Impact: 4.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: NI A - Perm 3� {short term) Date Received: Hufthhiwn, MIN 55350 (320)587-5t511Fax:(320)2344240 City of Hutchinson APPLICATION FOR PARADE PERNHT (Under Ordinance No. 71.01) All applications must be received at least 30 daVs before event in order to be considered Organization Information dzk-&h Orrg pttnn Name Phone Number } Organization Address _Cily zip Authorized Officer and Parade Chairman Informatioa . . . I . 1 [i] Officer Name Phone Number Address City SYure Zip r Phone Number Parade' Information Parade Date: LJC� • C3 j Assembly Time. /Q; 36 Location and Description of Assembly Area: C I & +! Starting Time of Parade: ' Estimated Time of Parade: Starting Point of Parade: Route of Parade Travel: Ending Point of Parade: � Approximate Nurnber of Units, Animals, and Vehicf&rwhich will constitute Parade: Type and Description of Animals and Vehicles: b Maxhn= interval of Space to be Maintained Between Units: 3o Maximum Length of Parade: IQ 5 [ Minimum and Maximum Speed of Parade: � ^ MPH Portion of Street Width Traversed: aY of F!a[tclu Uw, -Applicari"forPwu:L- Permit Pft-dof2 The following items need to be completed and/or attached in order for the appl •cation'to be pr ceased: Permit fee paid in full (check or money order): Permit ®no h1 f �} Permit ApPGcatiou completed in full and signed: .0 Yes ❑ no I declare that the information I have provided on this app[ication is t mdif4 and I alldK)rize the Cityof Hutchinson to investigate the information submitted. of organization or parade chairman Date Police > „•w,• r, i, _ F _f:., , :: approved ❑ denied Notes: City Council ❑ approved ❑ denied. Notes: HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: 5K family Run/Walk (Spooky Sprint) Department: Police LICENSE SECTION Meeting Date: 9/24/2019 Application Complete Yes Contact: Thomas D. Gifferson Agenda Item Type: Presenter: Thomas D. Gifferson Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 2 License Contingency No Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The 5K family Run/Walk Saturday October 26th, 2019. They are in the planning stages for a 5k (3.1 mile) family fun run and walk to be staged in Hutchinson with a start time of 9AM. The proceeds of this run will go to the REACH program at the Hutchinson High School. They want to take advantage of a great resource in town, the area around the Library (Library Square). As such, they would like to start and end this race there, on 1st Ave SE. They realize that having a 3 mile run throughout the city may cause disruption, so they are attempting to run on city streets for about 20% of the total run distance. The remainder would be run on the Luce Line Trail. Their goal is to offer 2 runs, a 5k run and walk, and a'h mile dash for children. The 'h mile dash will begin at 9:15AM, the 5k run and walk will begin at 9:30AM. Each participant will be required to sign a waiver stating the following: "I am properly trained and enter this walk/run totally at my own risk and hereby waive all claims that I or my heirs may have against all sponsors, walk/run directors and all others associated with this walk/run, for any injuries or problems I may sustain, regardless of any negligence. I am totally responsible for my safety and any injury I may suffer." The Hutchinson Police Department has reviewed and approved the proposed route. The organizers are seeking approval for closure of 1st Ave SE for this run. They will also be running down Adams Street towards the Luce Line Trail. Adams will not need to be closed off. We will be using cones to create a separation lane on Adams St SE. 1 st Ave SE will be closed from Main St to Adams St during the hours of 6:00 am until 12:00 pm or as determined by the Hutchinson Police Dept on Saturday October 26th, 2019. The businesses impacted by this temporary closure will be notified and their customers impacted by this closure will be given access to the businesses during the street closure. They understand there may be costs associated with this Traffic Control and have accounted for this in their budget. BOARD ACTION REQUESTED: I recommend approval. Fiscal Impact: $ 0.00 Funding Source: FTE Impact: 2.00 Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Jason Werowinski 16650 206t" Circle Hutchinson, MN 55350 September 9th, 2019 Hutchinson City Council 111 Hassan ST SE Hutchinson, MN 55350 Re: 5K Family Run and Walk in Hutchinson on Saturday October 26th, 20189 To The Members of the Hutchinson City Council, I am writing today in regards to the 10th Annual Spooky Sprint we are planning for Saturday October 261", 2019. It will stay the same as it has the last 9 years, a 5k (3.1 mile) family fun run and walk to be staged in Hutchinson with a start time of 9AM. The proceeds of this run will go to the REACH program at the Hutchinson High School. As in the past, we want to take advantage of a great resource in town, the area around the Library (Library Square). As such, we would like to start and end this race there, on 15T Ave SE. We realize that having a 3 mile run throughout the city may cause disruption, so we are attempting to run on city streets for about 20% of the total run distance. The remainder would be run on the Luce Line Trail (obtaining a permit for use from the DNR). Our goal is to offer 2 runs, a 5k run and walk, and a % mile dash for children. The % mile dash will begin at 9:15AM, the 5k run and walk will begin at 9:30AM. Each participant will be required to sign a waiver stating the following: "I am properly trained and enter this walk/run totally at my own risk and hereby waive all claims that I or my heirs may have against all sponsors, walk/run directors and all others associated with this walk/run, for any injuries or problems I may sustain, regardless of any negligence. I am totally responsible for my safety and any injury I may suffer." I am attaching a map of the proposed courses. I have met with Sergeant Nagel about the course and modified it as suggested. I am seeking approval for closure of Is'Ave SE for this run. We will also be running down Adams Street towards the Luce Line, but our belief is that Adams will not need to be closed off. We will be using cones to create a separation lane on Adams. As I stated, I have discussed this with Sergeant Nagel. So in essence the matter before the Council on this issue is the approval or denial for the Police Department to use their discretion to close/block Is'Ave SE for some period of time on Saturday October 271", 2018. We understand there may be costs associated with this Traffic Control and have accounted for this in our budget. We are looking forward to this event in Hutchinson, and to continuing it in the years to come. Sincerely, Jason Werowinski S Proposed Course - Spooky Sprint 5K _ There and Back Style Run l t 4LM1 are MrL _ �rh�m 5�',7... •3 to Avr my �� Firrrrrr L fsA •x7 q Ph Wlfr = Axx PM ( _� VfL k'W 15h A>'e NO 1,1 HE �i hYr Wa:5ing7on AvEW Wich:rYJktn Are4 � Wyr k±M tl. FRnxlYtfari R i 'Po�I.1� 4w HAnnany I n S+v _ x Y,S rkw SW E*ww� _i:7 +-� ...� .. 7 7:M •Vrw SW E 2nd A— SW L]' i 4 7•� nve 5E 7n0 .V re SE T m �.+ :.t.,, ^..L t �n . z.� .:. -. ...., ,. .... 4 i nNr •a•rra � ,G^. _ .•.Eurfi f WF 'GW A, SW YAAve SE a Nd Ar St £ - C2s} N K —h M Proposed Course - Spooky Sprint 112 Mile Dash - There and Back Style Run it 3ra Ave NW Ke ba V"j NW G A �7 u,l , Ave r w �� II _ L it xntlAve SW County Hwy 2ntl Ava SW Lowly Hvy7 I swL ------ qr Lcyvls Ave 6W 1 �Xaydett Ave SW "�. 1_, �L dID A�SW l'ri 15 $ y PPam 1i 4Ava Grow River NF Recreational O Area tr_ 3rd Ave 6W I � 6tIt A. SW FFOhWit- - cn .rn O Parkk Rem.' 'M 4.! F HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Resolution No. 15096 - Returning Donation to Elks Club Department: Administration/Legal LICENSE SECTION Meeting Date: 9/24/2019 Application Complete Yes Contact: Marc A. Sebora Agenda Item Type: Presenter: Marc A. Sebora Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: At its August 27, 2019, meeting, the Council accepted a donation from the Hutchinson Elks Lodge in the amount of $6495 for the purpose of which was so that Hutchinson Police Services could purchase a rescue phone that could be used during hostage and other like situations. Since that time, the Minnesota Gambling Control Board has notified the Elks Club that that donation does not fit into the "lawful purposes" of the charitable gambling statute. In fact, Minnesota law prohibits charitable gambling donations to law enforcement agencies or prosecutorial agencies. For your consideration is a resolution authorizing the return of the August 27, 2019, donation to the Elks Club. BOARD ACTION REQUESTED: Approve Resolution No. 15096 - Returning Donation to Elks Club Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON RESOLUTION NO. 15096 RESOLUTION RETURNING DONATION Whereas, on August 27, 2019, the City of Hutchinson accepted a donation from the Hutchinson Elks Lodge in the amount of $6495.00 with said money being derived from the charitable gambling operations of the Hutchinson Elks Lodge; and Whereas, the donation from the Hutchinson Elks Lodge was intended for use by Hutchinson Police Services to purchase a rescue phone to be used during negotiation situations; and, Whereas, the Hutchinson Elks Lodge has been advised by the Minnesota Gambling Control Board that this donation was not proper under state law as state law prohibits charitable gambling donations to law enforcements agencies; and, Whereas, as it appears this donation was improperly made, the Hutchinson Elks Lodge has requested that the donation be returned to it and the City of Hutchinson deems it proper to return said donation; Now, therefore, be it resolved by the City Council of the City of Hutchinson, Minnesota, as follows: THAT, the $6495.00 donation received by the Hutchinson City Council on August 27, 2019, be returned to the Hutchinson Elks Lodge. Adopted by the City Council this 24th day of September, 2019 Approved: Gary T Forcier Mayor Attest: Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Short -Term Gambling License - Minnesota Holstein -Friesian Breeder's Assoc. Department: Administration LICENSE SECTION Meeting Date: 9/24/2019 Application Complete Yes Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The Minnesota Holstein -Friesian Breeder's Association, a nonprofit organization, has submitted a short-term gambling license application into administration for review and processing. The application is for an event the organization is holding on April 11, 2020, at the McLeod County Fairgrounds. The applicant has completed the appropriate application in full and all pertinent information has been received. BOARD ACTION REQUESTED: Approve issuing short-term gambling license to Minnesota Holstein -Friesian Breeder's Association on April 11, 2020. 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: III Hassan Street Southeast Hutchinson, Iv1N 55350 (320) 587-5151 Fax: (320) 2344240 City of Hutchinson APPLICATION FOR GAMBLING DEVICES LICENSE In provisions of the City of Hutchinson Ordinance Chapter 114 and Minnesota Statutes Chapter 349 All applications are to be received at least 30 days before event in order to be considered Ap2lication Ty2e Short Term Date(s) Alpr i ❑ Fee- S30.00 MonthlDa I ear — ManthlDaylYearp.- 5135 Organization Information sr3 Name Phone Number Address where regular meeting are held City State zip Federal or State ID: 44 " C7 Oo SQO Day and time of meetings? f-3a-t `'r Is this organization organized sender the laws of the State of innesota? kyes ❑ no How long has the organization been in existence? How may members in the organization? 9 �� What is the purpose of the organization? Lt.wuo— In whose custody will organization records be kept? tc_,_ 3 7 Name ev b( V-7 Phone Number -��45`14 Address City State zip Duly Authorized Officer of the Organization Information nd S4ilq tv" True Name' Rc( 5Z Residence Address en b1,,) .-5el - 752.E Phone Number• �Y ciol State zip Date of Birth: c 1 1 Iq -77 Place of Birth: Monthldaylyear Have you ever been convicted of any crime other than a traffic offense? If yes, explain: Con City State ❑ yes �(no 2 r(� City ofHurchinson Application.for Gambling Devices License Page 2 of 3 Designated Gambling Manager (Qualified under Minnesota Statute 4349) 1/\ sri` 5 ,rLA— C t-L e- _ -3x `-3 ct 7¢ q True Name `� Phone Number Residence Address Cit3r Date of Birth: L))-- / a / 1440 f �7 Place of Birth: Monthldaylyear Have you ever been convicted of any crime other than a traffic offense? If yes, explain: How long have you been a member of the organization? C1 L. !-� r, r-- . State Zip !� p u S _ A4(�j City State ❑ yes Ano S Game Information CT. Location #1 M c. L eA Name of location where game will b 1 yed Phone Number n 6 CGPI tutry A~vL Svt► Address of local o hwn ere game will be played City State Zip Date(s) and/or day(s) gambling devices will be used: 2rthrough Ada 2e AU - Hours of the day gambling devices will be used: From %6 pM To % / RM_ Maximum number of player: Will prizes be paid in money or merchandise? ❑ money merchandise Will refreshments be served during the time the gambling devices will be used? ❑ yes &no If yes, will a charge be made for such refreshments? ❑ yes ❑ no Game Information Location #2 Name of location where game will be played Phone Number Address of location where game will be played City .State Zip Date(s) and/or day(s) gambling devices will be used: through AM AM Hours of the day gambling devices will be used: From pM_ To PM Maximum number of player: Will prizes be paid in money or merchandise? ❑ money ❑ merchandise Will refreshments be served during the time the gambling devices will be used? ❑ yes ❑ no If yes, will a charge be made for such refreshments? ❑ yes 13 no y�Ir City of Hutchinson Application for Gan:piing Avices License Page 3 of 3 Officers of the Organization (if necessary. list additional names on senarale sheet) (11t.e� I Name j T;Ile q /k6 Sit S -'�- cicY' '41 �'j Residence Address Ciijyy Slate Zip Name Title Residence Address City State Zip -es --- A944Z41-6e ZZ410c� Name Title X? 1!a"'os Ad I& el--s Residence Address "�V 3� 341d State zip Officers or Other Persons Paid for Services Information (ifnecessary, list additional names on .se arate .sheet Name Title Residence Address City State zip Name Title Residence Address City Stale Zip Name Title Residence Address Ci , State zip Have you (Gambling Manager and Authorized Officer) read, and do you thoroughly understand the provisions of all laws, ordinances, and regulations governing the operation and use of gambling devices (as outlined in City of Hutchinson Ordinance 114.20 and Minnesota Statutes Chapter 349)? Gambling Manager *(yes ❑ no Authorized Officer -eyes ❑ now Initial Initial 1 declare that the information I have provided on this application is truthful, and I authorize the City of Hutchinson to investigate the information submitted. Also, I have received from the City of Hutchinson a copy of the City Ordinance No. 114.20 relating to gambling and I will familiarize myself with the contents thereof. Of Internal Use authorized officer of organization Date manager of organization City Council ❑ approved 0 denied Notes: Date HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Resolution to Sell Surplus Equipment at Auction Department: Building LICENSE SECTION Meeting Date: 9/24/2019 Application Complete N/A Contact: Dan Jochum Agenda Item Type: Presenter: Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The Building Department has a surplus vehicle to auction off due to a staffing change in the department. A 2013 Chevrolet Caprice will be sent to auction at Fahey Auctioneers in Glencoe. Please contact me with any questions you may have. BOARD ACTION REQUESTED: Approval of resolution. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 15098 RESOLUTION TO SELL AT AUCTION SURPLUS PROPERTY WHEREAS, the City of Hutchinson has accumulated surplus property; and WHEREAS, the Hutchinson City Code, Section 91, Subdivision 3, Paragraph C, provides for the sale at auction of surplus property; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, NHNNESOTA: That the following surplus City property be sold at auction and proceeds from the sale be credited to the appropriate account: 1. 2013 Chevrolet Caprice Adopted by the City Council this 24t' day of September, 2019. Gary Forcier, Mayor ATTEST: Matthew Jaunich, City Administrator HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Consideration of MnDNR EAB tree planting grant opportunity Department: PW/Eng LICENSE SECTION Meeting Date: 9/24/2019 Application Complete N/A Contact: John Olson Agenda Item Type: Presenter: John Olson Reviewed by Staff ❑ Consent Agenda Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: MnDNR has made available an Emerald Ash Borer Community Forest Response Tree Planting Grant. Public Works staff has prepared a pre -application. The pre -application process provides MnDNR with the opportunity to review potential projects, find out more information about the projects and begin matching projects to the grant budget. This all takes place before formal applications are taken. The proposal staff submitted as part of the pre -application process is to plant 268 trees at a value of $24,908.94 and acquire supplies and equipment at a value of $4,815.35, for a total of $29,724.29. Public Works staff anticipates approximately 75% of the plantings to be in parks with high concentrations of ash trees, particularly around park features, such as playgrounds, trails, shelters, and other play areas that would benefit from good tree canopy. The remaining 25% would be planted in street boulevards, replacing ash trees that have been or will be removed. No cash/in-kind match by the City was proposed, but if the project were selected by MnDNR for consideration during the pre -application process, a City match may be both feasible and beneficial. Public Works staff recommends considering a City match using Tree Disease/Infestation Mitigation funds not to exceed 50% (+/- $15,000), as necessary or beneficial as part of the formal application process. BOARD ACTION REQUESTED: Approve submission of necessary information relative to the MnDNR EAB grant, to include formal grant application, if the project is selected as part of MnDNR's pre -application process. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: Emerald Ash Borer Community Forest Response Tree Planting Grants m1 Pre -Application ENVIRONMENT DEPARTMENT OF AND NATURAL RESOURCES D Refer to the Request for Applications RFA when completing this application. NATURAL RESOURCES TRUST FUND q pP � ( ) p g pp Organization: City of Hutchinson MN Project Coordinator: Donovan Schuette Address: 111 Hassan St SE County: Mcleod Phone: offtce320-583-8982 Grant amount requested: $29,724.29 Type of Organization, Municipality Title: Arborist, MN-4636BM City, State, Zip. Hutchinson MN 55350 Email: dcchuette@ci.hutchinson.mn.us cell 320-583-8982 Total match; optional: Can provide if needed (combine cash & in -kind match) Cash match contributions: In -kind match contributions: Project Staff:Have obtained credentials of this type and will maintain credentials thro[]Type of Credential: Master Location: Distance: Adjacent to quarantine county W Total ash in community: 3110 percent ash makes -up: 18.8 Arborist Project Overview (1,140 character maximum including spaces) Provide a summary of the project, why additional funds are needed, and expected outcomes. This should include a description of the project location (City wide project, here are more ash trees in the City of Hutchinson than any other species. For several years and on an annual basis, e have removed approximately 50 publicly owned ash trees that meet condition criteria for removal. This proposed Slanting project would specifically target replacement plantings in: 1) parks with high concentrations of ash trees; and 2) on boulevards where low quality ash trees were removed, but have not yet been replanted. This project would consist of approximately 75% of trees being planted in parks, with the other 25% being replacement plantings in boulevards. In parks, the goal is to plant/replant near prominent features currently surrounded by ash trees. These features include playgrounds, trails, shelters, and other play areas that benefit from good tree canopy cover. Because of our program to remove declining ash trees, in boulevards there are anywhere between 50 and 100 replanting sites available at any time. Regarding equipment, the proposal includes some hand tools, white guards, water bags, and a 48 " auger. The large 48 " auger will allow larger areas of loosened/amended soil at planting sites, which will help to avoid future issues with stem girdling and surfacing roots. Project Impacts on Priority Landscapes (1,725 character maximum including spaces) Based on the project summary, describe how yourproject will reduce the impact emerald ash borer has on,your community. For example, impacts on runoff to important and/or impaired bodies of water. Since ash trees are the most prevalent species of tree in the City, this planting program would help us to meet our species diversity goal of having no more than 10% of any given tree species in our urban forest. The environmental benefits of trees are well known. This grant would help accelerate replacement of ash trees that .have been removed and accelerate the benefits of these maturing trees. Residents and park users naturally question removal of trees that are not completely dead, which provides the opportunity to educate about EAB and the measures being taken to proactively address it. Filling gaps in the tree canopy, both in parks and on streets, will also help reduce damage during windstorms, especially to larger trees exposed by ash removal. Name Family Genus Species Unit Price Units Total <20% <10% <5% with 22 varieties 4.4 2.2 268 trees <13 of any one variety 'Inferno' Aceraceae Acer Saccharum $ 93.50 13 $ 1,215.50 'Sienna Glen' Aceraceae Acer x Freemanii $ 81.00 13 $ 1,053.00 ech Betulaceae Carpinus Caroliniana $ 83.15 12 $ 997.80 �tulaceae Betulaceae Betula Nigra $ 86.30 12 $ 1,035.60 od Betulaceae Ostrya Virginiana $ 95.95 12 $ 1,151.40 Catalpa Bignoniaceae Catalpa Speciosa $ 146.00 12 $ 1,752.00 rry Cannabaceae Celtis Occidentalis $ 84.25 12 $ 1,011.00 'Skyline' Fabaceae Gleditsia Triacanthos $ 86.30 12 $ 1,035.60 resso' or 'True North' Fabaceae Gymnocladus Dioicus $ 122.00 12 $ 1,464.00 A Fagaceae Quercus Rubra $ 95.95 12 $ 1,151.40 ite Oak Fagaceae Quercus Bicolor $ 95.95 12 $ 1,151.40 :on Sentry' Ginkgoaceae Ginkgo Biloba $ 137.30 13 $ 1,784.90 i 'Redmond' Malvaceae Tilia Americana $ 88.40 12 $ 1,060.80 i'Harvest Gold' Malvaceae Tilia Mongolica $ 97.75 12 $ 1,173.00 Summer Storm' Oleaceae Syringa Reticulata $ 79.00 12 $ 948.00 rnarack Pinaceae Larix Laricina $ 79.00 12 $ 948.00 line Pinaceae Pinus Strobus $ 60.92 12 $ 731.04 imn Brilliance' Roseaceae Amelanchier x Grandiflora $ 74.90 12 $ 898.80 tejoice' Roseaceae Malus 'Rejoice' $ 60.85 12 $ 730.20 stain Ash Roseaceae Sorbus Decora $ 72.80 12 $ 873.60 rie Expedition' Ulmaceae Ulmus Americana $ 135.00 12 $ 1,620.00 Triumph' Ulmaceae Ulmus Triumph' $ 86.30 13 $ 1,121.90 268 $ 24,908.94 amponent iger $ 2,500.00 !Is $ 500.00 'tie $ 315.35 Bags $ 1,500.00 $ 4,815.35 Emerald Ash Borer (EAB) Management Plan City of Hutchinson January, 2018 Purpose The purpose of this management plan is to address what likely will be an eventual infestation of EAB in the City of Hutchinson's urban forest. The goal of this plan is to slow the spread of the infestation through public education, inspection, and strategic management. By refining and maintaining efforts begun in the early 2000's, the hope is to mitigate the disruption of an EAB infestation to the urban forest to the extent possible. Creating awareness of EAB will help to detect infestations and their spread as early as possible and to stretch the costs associated with an infestation over as long a period of time as possible. Applicability This plan is applicable to rights -of -way and publicly owned trees. Removal orders for infested trees on private properties may be necessary when infestations result in specific public hazards, negatively affect public land and/or threaten the overall health of Hutchinson's urban forest. Administration The Public Works Manager and Arborist will implement and oversee this plan, implementing components of the plan with support from others in Public Works, the Parks, Recreation & Community Education department, and Creekside Soils. EAB Background EAB is non-native beetle that causes widespread decline and death of ash trees. EAB, in its larval stage, feeds on plant tissues between the bark and sapwood, disrupting the transport of water and nutrients within the tree. When the infestation is severe enough in an individual tree, the tree will die. EAB has destroyed millions of ash trees in other states and many within Minnesota. EAB Status in Minnesota In 2009, EAB was found in southern Minnesota along the Mississippi river and in the City of St. Paul. EAB was found soon after that in Minneapolis. Since then, EAB has been confirmed to be as close to Hutchinson as Eden Prairie, MN, located in western Hennepin County, 47 miles from Hutchinson. Infestations in the metro area tend to be about a mile apart. The Minnesota Department of Agriculture (MDA) and the University of Minnesota both helped to coordinate responses and continue to produce educational material that is helpful for planning. EAB Manaeement 5trateaies In general, there are both proactive and reactive strategies for managing EAB. When EAB was first found in Minnesota, the belief was that, as had earlier been the case in other states, the infestation would move rapidly, affecting vast numbers, if not all, of the state's ash trees. EAB has spread quite differently in Minnesota, however. Extensive efforts have been taken to detect infestations early. Efforts have also been taken to place quarantines on counties to restrict transportation of potentially infested wood from affected counties. Since the beginning of EAB infestations in the U. S., integrated proactive and reactive management approaches have been developed to address the mortality of ash trees. By slowing an infestation and reducing local mortality rates, costs to manage an infestation can be spread over a longer period. In addition, there are now biological and pesticide controls and processes being developed and refined that make Minnesota's EAB infestation look very different from past infestations in other states. Proactive management • Maintain tree inventory information • Establish tree condition ratings to reflect the health of a tree (Good, Moderate, Poor). • Establish an 800 meter grid overlaying ash trees throughout the City that are in Good condition. to determine sites for chemical injection of ash trees and to refine cost estimates for a program. • Implement public education initiatives. • Identify triggering event(s) used to implement reactive management components of the plan. • Initiate removal of ash trees in poor or moderate health condition. • Continue forestry diversification programs. o Continue the forestry diversification program begun in 2014 at levels increased in 2017 to remove and replace up to 40 selected ash trees, replacing them with other species. o As opportunity arises, to reduce the population of ash trees as part of street and roadway improvement projects. o Remove and replace ash trees in poor or moderate condition as part of ongoing general forestry maintenance efforts, particularly in areas with a high percentage of ash trees. • Within the limits of resources available for forestry diversification, maintain two general congruent priorities. In areas of the City with high populations of green ash trees, remove and replace ash trees regardless of the health of the tree. As requested by property owners or noted by City staff, remove and replace boulevard ash trees in marginal or poor condition. Reactive management • Initiate and continue injection treatments at selected sites for a specified time. Once the period has expired, only high -value ash trees will continue to receive treatment. • Continue removal of ash trees in poor or moderate health condition, particularly in areas with a high percentage of ash trees. • Regularly monitor infested ash tree conditions. Ash trees deteriorate quickly and can cause significant hazards shortly after their death, necessitating removal of ash trees as soon as practicable as they decline or die. • Replace trees as resources permit Triggering Events, Subsequent Inspection, Detection & Monitoring Triggering events are one or more of the following: 1) A verified EAB infestation in any adjoining county 2) A verified EAB infestation anywhere within McLeod County Once a triggering event takes place, a public hearing will be held to consider declaring EAB a public nuisance and to initiate reactive management measures. Proactive measures at that time will cease or be significantly decreased, depending upon available resources. Tree Inventory A tree inventory is the foundation for this management plan and provides baseline data. Inventory data is kept up to date as resources permit and allows the tracking of tree management similar to other infrastructure management programs, such as pavement management. Efforts are undertaken to assign a general health condition rating (Good, Moderate, Poor) to publicly owned ash trees, as time and other resources permit. Upon a triggering event, using location information from the existing tree inventory, the ash tree inventory will be broken down into 800-meter radii. One tree, located centrally located within the 800- meter radii will be selected to receive chemical treatment. The total number of ash trees that will receive chemical treatment, to include estimating anticipated treatment costs, will be calculated based on one tree per 800-meter radius, plus up to five additional high -value ash trees on public property. Inspection, Detection & Monitoring The goal is to find infestations and determine their extent as early as possible. Once an infestation is found, efforts will be undertaken to identify the outer boundaries of the infestation and the potential duration. Several individuals and agencies are involved in inspection, detection and monitoring efforts. • City Arborist — In conjunction with inspections for Dutch Elm Disease, Bur Oak Blight, and other diseases and infestations, the Arborist's duties include inspection, detection and monitoring of EAB infestations. • City staff (Parks & Public Works) — City staff that are outdoors on a regular basis will be trained in the identification of ash trees in all seasons. Training will include detection of potential ash tree defects, both natural defects and those potentially caused by infestation. Staff will be trained in the identification of EAB insects and the signs they tend to leave on ash trees. • Property owners/Residents — Property owners/Residents may likely be the first to detect EAB on private property. Property owners/Residents are encouraged to contact the City with information relating to any known or suspected infestation. They may directly contact the City by calling (320) 234-4219, or contact the Mn Dept. of Agriculture's "Arrest the Pest" website at htta;/1www;mF a,state.mn.us_arrestthepest. • Federal and State Agencies — Federal and State agencies may provide a variety of services to assist in detecting and monitoring an infestation. For example, MDA may set EAB traps throughout the area to determine whether there is an infestation and, if so, to help determine the extent of the infestation. Pesticide Treatment As soon as a triggering event takes place, predetermined trees will begin to be treated using pesticides. Generally, these treatments will be on ash trees in a good health condition that are in key locations to maximize the effectiveness of pesticide treatments. It has been established that having one treated tree significantly reduces the larval population within an 800 meter radius. The pesticide treatments will continue for a predetermined amount of time. The goal of pesticide treatments is to allow the cost of removals and replacements to be spread over a longer time. Eventually, infested trees will die. In general, no other public ash trees will receive ongoing pesticide treatments. On a case -by -case basis, however, it may be determined that high -value ash trees in specifically identified locations could be selected for ongoing pesticide treatment. Property owners/residents may choose to initiate pesticide treatments of privately owned ash trees at their own expense. Tree Removal The City has established a diversification program to strategically, proactively remove ash trees. The program replaces ash trees with a wide diversity of tree species. Specific areas with high ash tree populations or ash trees in poor or moderate health are identified as time and resources permit to establish program delivery goals. This program is considered proactive and is intended to continue until a triggering event takes place, but may be extended depending upon available resources. Once a triggering event occurs, available inventory and health condition assessment information will be used to identify ash trees in poor health and steps will be taken to remove those trees as soon as is practicable. Strategic removals of declining and aged ash trees will help to spread out the cost of removals and replacements and may help to slow the spread of EAB. It is often difficult to identify infested trees, often for as many as 3-5 years, because of the subtle signs within the tree. When an infested tree is identified, the extent of the infestation and the number of trees affected needs to be ascertained to the extent practicable, so an appropriate response can be made. If necessary, Federal or State agencies or arboricultural specialists may be brought in to help City staff determine the extent of the infestation. Once ash trees die, they can quickly become hazardous to nearby buildings, parks or boulevards, and the people using them. In nearly all cases, dead ash trees will need to be removed as soon as possible after the death of the tree. Dead ash trees in parks, on boulevards or dead trees on private properties that can negatively affect use of public property must be removed quickly. In large open spaces, it may not be necessary to remove dead ash trees right away, so these removals can be prioritized based on their potential hazard. Property owners and residents will need to remove affected trees in a timely manner, so they do not end up presenting a hazard to either people or structures. Tree removal programs established must account for what is happening in the wider area. Removal efforts are to be coordinated with other agencies whenever possible to maximize their effectiveness. Responses by the Federal, State, County or other governmental agencies will need to be reviewed and adjustments may need to be made the City's response plans, based upon the goals and objectives of the plans at higher levels of government. Public Education and Outre Once a triggering event occurs, efforts will be undertaken to provide information about EAB to property owners/residents. Understanding the threat, knowing what to look for, knowing what options exist and knowing what to do will be areas of focus for the City's public education and outreach efforts. In addition, all City staff will be educated to recognize obvious signs and symptoms of an EAB infestation. Diverse forums will be used to disseminate information about EAB, to include public hearings and programs, website information, articles, handouts, press releases and public service announcements. Whenever possible, neighboring property owners/residents will be notified prior to any ash tree management functions taking place near or adjacent to their property. Neighborhood and/or volunteer groups that are interested in assisting in efforts to detect and manage EAB will be directed to appropriate educational opportunities in order to gain necessary skills. Replantine If large numbers of ash trees are removed, there will be an aesthetic and ecological impact to the City. It is recommended that, where feasible considering engineering parameters, one-to-one replacements of removed trees should be done as soon as practicable, considering available resources. The actual number of trees replanted may be reduced, due to available resources, obstructions, setbacks, and clearance requirements. As trees are replanted, the goal will be to further tree species diversification within the urban forest, having no more than 10% of any species, 20% of any genus, or 30% of any family of species, whenever possible. The goal is to maintain species diversification, whenever possible, within 5-10% (no more than 700 - 1,400 trees of any one species). Wood Disposal and utilization EAB spreads most quickly through transportation of infested wood, whether in the form of logs, tree waste, chips or firewood. Once an infestation has been verified, the County in which the infestation is discovered is quarantined. No wood may be moved out of the affected County without complying with regulations under a separate agreement with the State of Minnesota. Creekside Soils will be the designated disposal site for infested ash trees. Once large numbers of affected ash are transported to Creekside, there will be an opportunity to decide the highest, best use for the wood waste. Possible uses for ash wood include biomass fuel, mulch, pulpwood, and/or saw logs. Ordinances, Policies and Programs Applicable ordinances are included in City Code: §31.27 City Tree Board §92 Nuisances; Health and Sanitation §92.02 Tree Diseases §153.85 Tree Planting in New Subdivisions §154.060 R-5 Manufactured Home Park §154.065 C-5 Conditional Commercial District §154.115 Screening, Landscaping, Outdoor Storage and Display This management plan is subject to the most recent Public Works Urban Forest Maintenance Program, including boulevard tree recommendations, and the most current approved species list for boulevard trees. Contractor Registration It will be necessary to manage the likely influx of tree care contractors into the community following an EAB infestation. Once a triggering event occurs, minimum standards will be established and City -sponsored educational seminars will be initiated. Any contractor who provides proof of insurance, successfully meets minimum standards, and attends related educational seminars will be registered as a tree care contractor on the City's website. Contractors will be responsible for initiating this process. City residents and property owners will be warned on the City's website to check the credentials of any tree services they engage for work on private properties. Fundine & Finances In 2011, the City began putting away funds to mitigate potential tree diseases/infestations. Approximately $55,000 per year has been transferred into this dedicated account. Primarily, the fund is to provide for future tree removal/replacement costs. Secondarily, and as a proactive effort, it funds tree diversification projects. Diversification projects were done in 2013-2015, at a cost of up to $25,000 per year. In 2016, grant funds were utilized to remove/replace several ash trees. In 2017, 3 grant trees and 30 other ash trees were affected. In 2018 and following, the focus will be on ash trees in poor health or those that are over -mature, as well as areas with high ash tree populations. The balance available at the beginning of 2017 was estimated at $362,000. Based on the balance in this account, the primary use of this account will be for tree removals once a triggering event occurs. Until a triggering event occurs, replacement of up to 40 ash trees per year for diversification projects using these funds has been deemed reasonable. Additional funding sources will likely be required to respond to an EAB infestation for replacing trees, according to cost estimates prepared using available information: Trees in City inventory 13,948 Total ash trees 2,142 POTENTIAL EAB COSTS EAB Mortality Ash lost Removal cost/tree Total Removal cost Replace cost/tree Total Replace cost Total Cost Yr 1-5 (10%) 214 $365 $78,110 $260 $55,640 $ 133,750 Yr 6-10 (20%) 428 $425 $181,900 $300 $ 128,400 $ 310,300 Yr 11-15 (70%) 1,500 $490 $ 735,000 $350 $ 525,000 $1,260,000 Totals 2,142 $ 995,010 $ 709,040 $ 1,704,050 Pesticide 35* $200 $7,000 for 10 yrs = $70,000 *land area of Hutchinson: 24 kmz _ 800 m grid = 30 trees + 5 high -value sites. Annualneed $1,774,415 =15yrs $118,270 FUNDING EAB COSTS Forestry diversification transfer Annual $55,000 01/01/2017 Balance $362,077 - 15 yrs $24,138 Current resources 67% $79,138 Remaining unfunded need 33% $39,132 Under the current plan, adequate funding is available for removals and approximately 33% of replacements. Funding/financing options for the remaining 67% of replacements may include; • Grants — City staff will stay informed of available grant opportunities. • General funds — Some additional general levies or fees may be needed for tree replacement. • Chapter 429 assessments/Capital improvement plans — planting trees on boulevards and their trimming, care and removal are a recognized public improvement able to be specially assessed to abutting property owners. Historically, tree -related costs that are part of a City improvement project have not been assessed to abutting properties. 0 Donations — Cash or in -kind donations from private groups will be emphasized. Action plans Short-term (0-3 years) 1. Review and update ash tree inventory. 2. Assign health condition ratings to ash trees. 3. Develop strategic removal plan using inventory & health condition ratings. Mid-term (4-6 years) Using ash tree inventory information, establish 800-meter radii, selecting an ash tree to receive pesticide treatments for a given period. 2. Develop educational and outreach material for property owners/residents, appropriate City staff and volunteers. 3. Thoroughly investigate any report of potential infestation, using outside help, as necessary, to verify an infestation and determine its extent. Triggering event 1. Initiate communication with the City Council regarding the triggering event 2. Set and hold public hearing declaring EAB as a nuisance 3. Identify the processes that will be used to manage EAB during communications with the Council and the public. 4. Implement identified post -triggering event EAB management components identified in the plan. "f""t, � ."/4"IV-^y SPECIES Alder 11 0.1% Amelanchier (juneberry) 7 0.0% American Hornbeam (bluebeech) 11 0.1% Amur Corktree 14 0.1% Apricot 10 0.1% Ash (white,green, and black) 3110 18.8% Beech 16 0.1% Birch (river, paper, and asiatics) 433 2.6% Butternut 11 0.1% Catalpa 88 0.5% Cedar (red, white, and cultivars) 475 2.9% Cherry, Canada Red 87 0.5% Elm, all varieties 1210 7.3% Fir, Balsam and Douglas 35 0.2% Ginkgo 72 0.4% Hackberry 1227 7.4% Hawthorn 65 0.4% Hemlock 5 0.0% Horse Chestnut 11 0.1% Ironwood 38 0.2% Japanese Tree Lilac 106 0.6% Kentucky Coffeetree 179 1.1% Larch 27 0.2% Linden all varieties 1372 8.3% Honeylocust 411 2.5% Malus (apple, crabapple) 638 3.9% Maple all varieties 3051 18.5% Mountain Ash 68 0.4% Oak 1480 9.0% Ohio Buckeye 43 0.3% Pine 398 2.4% Poplar (aspen, cottonwood, balsam) 373 2.3% Black locust 43 0.3% Spruce 1214 7.3% Sycamore 20 0.1% Walnut 97 0.6% Willow 68 0.4% 165241 100.0% M,.,� NATURAL a ounc es Tree Maintenance Plan Template for Newly Planted Trees Organization: City of Hutchinson MN Year and Season of Planting:2020/21/22 Project Coordinator: Donovan Schuette, BCMA , MN-4636BM Phone: 3205838982 # of Trees to be Planted: 200 Email: dschuette@ci.hutchinson.mn.us Size (caliper for deciduous, height for conifers)#15 Type of Stock to be Planted (Bare root, etc.):pots Describe how the activities below will be completed. 1. Tree Maintenance Personnel a. Describe who is responsible for maintenence. Donovan Schuette, Arborist, overseeing forestry operations including formative work During the summer we have 2 full time seasonals who are engaged soley in forestry operations such as pruning, planting, watering, stake monitoring, etc. We conduct large scale pruning operations in the winter with both parks and public works employees. 3 FTE streets employees have pruning experience and 1 FTE parks employee has pruning experience. b. Volunteers, homeowners, or inexperienced staff that will provide maintenance should receive basic training and literature on proper maintenance techniques. Is training needed and how will you do it? I would be working hand in hand with the summer full time seasonals on all phases of formative tree maintenance, also we tend to retain these type of employees throughout their college years so there is generally some experience carryover to the next year. c. How will you inspect tree maintenance work periodically to make sure it is being done correctly? We already have a driving route utilizing our G.I.S. inventory software that puts all publicly owned trees less than five years old in the most direct route. We run this route multiple times per year (in spring to check for winter damage and bud break, late spring/early summer to check stakes and prune suckering, mid/late summer (especially after a couple weeks without rain) to check for watering needs, and right around leaf drop for structural pruning. I generally perform the structural/development pruning portion of the inspection. 2. Tree Watering Process Describe in detail how trees will be watered, the time period and frequency of watering. Trees should be watered weekly for the first 3 to 5 years when the ground is thawed, unless it has rained 1 inch in a week. We run water bags which are removed over winter and replaced in the spring, this is primarily the job of the full time summer seasonals. We run water bags on 1 and 2 year old trees and evaluate watering needs based on tree location and amount of rainfall on 2-5 year old trees. We've got a variety of soils, some are much more forgiving when it comes to water than others. 3. Mulching Trees Will you mulch your trees and if so, how will you maintain mulch? We mulch trees up to five years old and re -apply yearly. This is one of the duties on the spring inspection route. We get free mulch through our city owned compost site so the only cost is labor. We work with residents on boulevard trees to try to keep a wood mulch as long as possible but we do get a few who want to put rock around them right away. Rather than fight with the homeowner i put a COCO disc down under the rock to help with temperature extremes. Essentially I'd rather have them use rock mulch than bans into it with a weed whin or lawn mower. Parks and public facilities trees aet mulch in nernetuity. 4. Staking and Tying Trees Explain if staking is necessary due to mowing, vandalism, or wind conditions, and describe plans for inspection and removal. Potted stock usually roots in fairly quickly so we tend to plant without stakes and do a follow up check after any major wind events to straighten if needed. If there's a tree that particulary recalcitrant about staying straight we'll stake it. 5. Checking Tree Health The grantee will check trees every 6 — 12 months to identify and address problems. Describe inspection process and follow-up. See question 1 portion (c) 6. Tree Protection Young trees in busy urban areas may be easily damaged by human activity, animals, and equipment. Describe how planted trees will be protected. Our main obstacles in terms of damage are mowers and weed whips which can be ameliorated with an aggressive mulching program and deer rubs/disc golfers which can be addressed with white guards which we leave on until the tree is about 2" thick. 7. Pruning Newly planted trees should need little pruning, if they were properly cared for in the nursery. In the first year after planting, remove only dead or broken branches. In later years, weakly attached limbs can be removed, and corrective pruning can be done if needed. Describe your pruning maintenance cycle. I might diverge a bit from the above comments for vigorous potted stock. Even after breaking up the root ball these tree can grow aggressively even in their first year, especially hackberry, elm hybrids, freeman hybrids, and honeylocust. If you don't sublimate the exterior of the crown you can lose your leader fairly quickly which on some varieties means a lost tree. My summer helpers are used to sucker pruning and limbing up and i follow up around leaf drop with cleaning out the interior of the crown, checking branch 8. Tree Warranty Tree planting should include a warranty from the nursery for replacement (due to poor condition or mortality). The grantee should be prepared to fully replace all trees that are in poor condition or die prior to inspection at the end of the project grant agreement, unless loss was due to natural disaster. Describe your tree warranty or how trees will be replaced. We'd be planting these ourselves so i don't think we'd get a long term warranty from a larger distributor like Baileys, but we replace any of our trees that die with a new tree. We have a couple different funding sources for new trees so its not a problem to replace the tree should something happen. Once we've established a tree planting site we try to ensure a healthy tree occupies that site. CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 9/5/19 - 9/24/19 Check Date Check Vendor Name Description Amount 09/13/2019 EFT1037 EFTPS PAYROLL 8/25 - 9/7/2019 $ 64,105.89 09/13/2019 EFT1038 Child Support PAYROLL 8/25 - 9/7/2019 149.54 09/13/2019 EFT1039 MN Dept of Revenue PAYROLL 8/25 - 9/7/2019 13,074.88 09/13/2019 EFT1040 Provident Life Insurance PAYROLL 8/25 - 9/7/2019 655.60 09/13/2019 EFT1041 PERA PAYROLL 8/25 - 9/7/2019 51,873.06 09/13/2019 EFT1042 TASC-Flex PAYROLL 8/25 -9/7/2019 1,551.25 09/13/2019 EFT1043 TASC-H S A PAYROLL 8/25 - 9/7/2019 12,938.27 09/13/2019 EFT1044 ICMA PAYROLL 8/25 - 9/7/2019 2,460.00 09/13/2019 EFT1045 VOYA PAYROLL 8/25 - 9/7/2019 530.00 09/13/2019 EFT1046 MNDCP PAYROLL 8/25 - 9/7/2019 350.00 09/10/2019 207347 R & R EXCAVATING VOID - REISSUED WITH CHECK 207392 (124,695.95) 09/05/2019 207389 HUTCHINSON, CITY OF PRINCE SHOW SPIFF CASH 2,000.00 09/13/2019 207390 NCPERS PAYROLL 8/25 - 9/7/2019 320.00 09/13/2019 207391 HART PAYROLL 8/25 - 9/7/2019 585.47 09/16/2019 207392 R&R EXCAVATING & RELIAFUNDS ESCROW 1-21319-02 PYMT #1 124,695.95 09/24/2019 207393 4-SQUARE BUILDERS INC. WINDOW REPLACEMENT 1,975.15 09/24/2019 207394 48FORTY SOLUTIONS, LLC PALLETS 2,484.00 09/24/2019 207395 A R ENGH HEATING & AIR CONDITIONING REMOVED AIR LINE TO MECHANICAL ROOM & AD 111.30 09/24/2019 207396 AARP SEPT CLASSES 300.00 09/24/2019 207397 ABEL REALTY ADVISORS, LLC AUGUST RETAILER BILLING: ECONO FOODS/SHO 3,500.00 09/24/2019 207398 ACE HARDWARE REPAIR & MAINTENANCE SUPPLIES 374.59 09/24/2019 207399 AEM MECHANICAL SERVICES INC BLD #1700: WOMEN'S RESTROOM REPAIR 248.37 09/24/2019 207400 AHLGREN ELECTRIC LABOR - CONCESSION RECEPTACLES @ ROBERTS 1,357.62 09/24/2019 207401 ALPHA WIRELESS SEPT MAINT ON RADIO EQUIP 794.75 09/24/2019 207402 AMERICAN BOTTLING CO SEPTEMBER COST OF GOODS - LIQUOR STORE 128.48 09/24/2019 207403 AMERIPRIDE SERVICES EOW - MO SERVICES 253.16 09/24/2019 207404 ANIMAL MEDICAL CENTER ON CROW RIVER PROCESSING / BOARDING FEES 1,771.00 09/24/2019 207405 ARCTIC GLACIER USA INC. SEPTEMBER COST OF GOODS - LIQUOR STORE 389.62 09/24/2019 207406 ARNZEN, MARY UB refund for account: 1-786-3550-9-02 1.00 09/24/2019 207407 ARTISAN BEER COMPANY SEPTEMBER COST OF GOODS - LIQUOR STORE 676.55 09/24/2019 207408 B & C PLUMBING & HEATING INC TEST RPZ @ WW PLANT 255.00 09/24/2019 207409 BELLBOY CORP AUGUST COST OF GOODS - LIQUOR STORE 6,480.35 09/24/2019 207410 BENNY'S MEAT MARKET DIRECTORS PICNIC SUPPLIES 554.18 09/24/2019 207411 BERNICK'S SEPTEMBER COST OF GOODS - LIQUOR STORE 266.70 09/24/2019 207412 BLUE VALLEY SOD 8/26 PEAT DELIVERED 4,500.00 09/24/2019 207413 BRANDED SOLUTIONS SHIRTS W/ LOGOS 248.82 09/24/2019 207414 BRANDON TIRE CO TUBES 99.03 09/24/2019 207415 BRAUN INTERTEC CORP THRU 9/7 - SOUTH GRADE - MNDOT TESTING 8,514.00 09/24/2019 207416 BREAKTHRU BEVERAGE SEPTEMBER COST OF GOODS - LIQUOR STORE 20,652.19 09/24/2019 207417 C & L DISTRIBUTING SEPTEMBER COST OF GOODS - LIQUOR STORE 30,141.72 09/24/2019 207418 CARD SERVICES CASH WISE PURCHASES - SENIOR CENTER 60.07 09/24/2019 207419 CARS ON PATROL SHOP LLC SQUAD #4: NEW TIRES & LABOR 320.00 09/24/2019 207420 CENTRAL HYDRAULICS CYLINDER DISASSEMBLY, VELVAC AIR CYL 1,081.37 09/24/2019 207421 CENTRAL MCGOWAN ACETYLENE, HIGH PRESSURE 153.76 09/24/2019 207422 CHANDLERTHINKS, LLC CITY MARKETING / BRANDING PROJECT 17,875.00 09/24/2019 207423 CHANKASKA CREEK SEPTEMBER COST OF GOODS - LIQUOR STORE 716.04 09/24/2019 207424 CHEMISOLV CORP FERRIC CHLORIDE 5,029.26 09/24/2019 207425 CINTAS CORPORATION SHOP TOWELS, CLOTHING 154.68 09/24/2019 207426 CORE & MAIN LP O-RINGS, GASKETS, NOZZLES, FLANGES 3,735.65 09/24/2019 207427 CORNER POST EROSION CONTROL BLVD HYDRO -SEEDING @ 620 JEFFERSON, 13TH 1,703.00 09/24/2019 207428 CREEKSIDE CASH DRAWER REPLENISH CASH DRAWER 25.00 09/24/2019 207429 CREEKSIDE SOILS BULK SAND 151.62 09/24/2019 207431 CROW RIVER WINERY SEPTEMBER COST OF GOODS - LIQUOR STORE 1,050.00 09/24/2019 207432 DAVE GRIEP CLEANING CLEAN WINDOWS 45.00 09/24/2019 207433 DPC INDUSTRIES INC SODIUM HYPO 1,685.11 09/24/2019 207434 ECOLAB PEST ELIMINATION COCKROACH/RODENT PROGRAM 64.93 09/24/2019 207435 ELK RIVER COMPOSTING INC CONTRACTED COMPOST 4/19 - 5/23 27,510.40 09/24/2019 207436 EXNER, KENT EXPENSE REIMB: TRAVEL EXP FOR APWA IN SE 2,612.65 09/24/2019 207437 FASTENAL COMPANY HEX NUTS, WASHERS 1,376.28 09/24/2019 1207438 1 FERGUSON WATERWORKS #2516 HAMMER DRILL 172.06 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 9/5/19 - 9/24/19 Check Date Check Vendor Name Description Amount 09/24/2019 207439 FIRST ADVANTAGE LNS OCC HEALTH SOLU DRUG TESTING 166.62 09/24/2019 207440 FOSTER MECHANICAL HVAC REPAIR 843.76 09/24/2019 207441 GRAINGER SPILL CABINET 1,173.92 09/24/2019 207442 HACH COMPANY CHEMICALS 2,207.01 09/24/2019 207443 HANSEN GRAVEL INC. VFWPARK- TRUCKING 188.00 09/24/2019 207444 HANSEN TRUCK SERVICE ENGINE #7: INSTALL AIR FILTER 181.00 09/24/2019 207445 HANSON & VASEK CONSTRUCTION WATER LEAK: DRIVEWAY REPLACEMENT 1150 P 4,400.00 09/24/2019 207446 HAWKINS INC SODIUM HYDROXIDE 3,485.06 09/24/2019 207447 HEARTLAND AG SYSTEMS LUG BOLT - MCCLOSKEY SCREENER 2.11 09/24/2019 207448 HILLYARD / HUTCHINSON TISSUES, TOWELS 114.28 09/24/2019 207449 HJERPE CONTRACTING SEWER CAP, COMPRESSION COUPLER 12,987.25 09/24/2019 207450 HOHENSTEINS INC SEPTEMBER COST OF GOODS - LIQUOR STORE 354.50 09/24/2019 207451 HOLT-PETERSON BUS 11/4/19 ANTON'S & PARAMOUNT THEATRE TRIP 645.00 09/24/2019 207452 HUTCHINSON CO-OP LP GAS, DIESEL, TIRE REPAIR, TIRES 11,582.31 09/24/2019 207453 HUTCHINSON ELKS LODGE REFUND OF DONATION TO PD 6,495.00 09/24/2019 207454 HUTCHINSON HEALTH TESTING 492.00 09/24/2019 207455 HUTCHINSON UTILITIES Aug Utilities 8/1- 9/1'19 70,148.91 09/24/2019 207456 HUTCHINSON WHOLESALE #1550 SPRAY PAINT 150.92 09/24/2019 207457 HUTCHINSON WHOLESALE #1551 SERPENTINE BELT 358.60 09/24/2019 207458 HUTCHINSON WHOLESALE #2520 LADDER 1: SOLENOID 47.99 09/24/2019 207459 HUTCHINSON, CITY OF Storm Drainage 8/1- 8/31'19 6,376.45 09/24/2019 207460 HUTCHINSON, CITY OF REPLENISH ATM AT CITY CENTER 5,000.00 09/24/2019 207461 INDUSTRIAL PARTS & ELEC MOTORS INC MOTOR 766.89 09/24/2019 207462 INTERSTATE BATTERY SYSTEM MINNEAPOL HATS SUPPLIES 32.40 09/24/2019 207463 ISD #423 FEES COLLECTED FOR JULY & AUGUST CLASSES 19,172.00 09/24/2019 207464 JOHN KORSON REFUND: DAD IS COACHING TACKLE FOOTBALL 75.00 09/24/2019 207465 JOHN TAMMINEN REBATE FOR CREEKSIDE PRODUCT 60.00 09/24/2019 207466 JOHNSON BROTHERS LIQUOR CO. SEPTEMBER COST OF GOODS - LIQUOR STORE 20,188.02 09/24/2019 207467 KELLY KNICKERBOCKER REFUND: CAMPING RESERVATION CANCELLED 9/ 55.00 09/24/2019 207468 KERI'S CLEANING & HANDYMAN SERVICES 9/1- 9/15 CC, LIB, SR DIN 2,044.00 09/24/2019 207469 KOHLS SWEEPING SERVICE DOZER, PILED RECLAIM @ HATS FROM HTI PRO 6,942.87 09/24/2019 207470 KRANZ LAWN & POWER #626: PARTS 74.25 09/24/2019 207471 L & P SUPPLY CO CANNED FUEL 1,370.35 09/24/2019 207472 LEAGUE OF MN CITIES -INS TRUST Q4 WORKER COMP PREMIUM 85,979.00 09/24/2019 207473 LEVINE, ERIC EXPENSE REIMB: PVC BUSHINGS, MOLYKOTE 98.04 09/24/2019 207474 LOCHER BROTHERS INC AUGUST COST OF GOODS - LIQUOR STORE 38,640.35 09/24/2019 207475 LOEHRER, ROBERT EXPENSE REIMB: BOILERS LICENSE 20.00 09/24/2019 207476 LYNDE & MCLEOD INC. AUGUST YARDWASTE ACTIVITY 232.00 09/24/2019 207477 MARCO TECHNOLOGIES, LLC 8/20 - 9/20'19 MOTOR VEHICLE CONTRACT PA 1,576.53 09/24/2019 207478 MARTIN-MCALLISTER PUBLIC SAFETY ASSESSMENT: T STOCKMANN 550.00 09/24/2019 207479 MAYTAG LAUNDRY & CAR WASH 8/12 SERVICE 96.45 09/24/2019 207480 MCLEOD COUNTY RECORDER RIGHT OF WAY PLAT: TECH DR & HIGHLAND PA 102.00 09/24/2019 207481 MCLEOD FOR TOMORROW TUITION FOR 19/20 LEADERSHIP PROG: RANDY 475.00 09/24/2019 207482 MCRAITH, JOHN EXPENSE REIMB: FOOTBALLS FOR FLAG FOOTBA 53.46 09/24/2019 207483 MEDICA October Medical Insurance 136,233.53 09/24/2019 207484 MENARDS HUTCHINSON REPAIR & MAINTENANCE SUPPLIES 1,631.76 09/24/2019 207485 MID AMERICA BUSINESS SYSTEMS PURCHASE SPACESAVER VIKING 920 SERIES PR 6,112.77 09/24/2019 207486 MINI BIFF 7/25 - 8/21'19 SHOOTING RANGE 203.49 09/24/2019 207487 MINNESOTA CONTROL SYSTEMS LLC REPAIR TO VAV & RTU 985.00 09/24/2019 207488 MINNESOTA DEPT OF LABOR & INDUSTRY PRESSURE VESSEL INSPECTIONS 10.00 09/24/2019 207489 MINNESOTA DEPT OF TRANSPORTATION MATERIAL TESTING & INSPECTION 370.51 09/24/2019 207490 MINNESOTA VALLEY TESTING LAB VARIOUSTESTING 1,147.20 09/24/2019 207491 MOTRE, ERIC EXPENSE REIMB: WATER SCHOOL 112.48 09/24/2019 207492 MYGUY INC. 1 YEAR LEASE BLENDCO TANK 30.00 09/24/2019 207493 NATIONAL RESEARCH CENTER INC. NATIONAL CITIZEN SURVEY BASIC SERVICE 5,715.00 09/24/2019 207494 NEUBARTH, JULI REFUND SEPT-DEC HANGAR RENT 440.00 09/24/2019 207495 NORTH CENTRAL INTERNATIONAL WALKING FLOOR TRAILER: HORIZ CRAN 39.42 09/24/2019 207496 NYGAARD INDUSTRIAL PAINTING INC SANDBLAST, PAINT PRIMER PUMP 720.00 09/24/2019 207497 O'RElLILY AUTO PARTS CONTROL KNOB 329.35 09/24/2019 1207498 1 OFFICE DEPOT FORM HOLDER CLIPBOARD 51.98 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 9/5/19 - 9/24/19 Check Date Check Vendor Name Description Amount 09/24/2019 207499 ON TRAX TRUCK REPAIR #972: REPLACED ALL GEAR LUBES & AIR DRY 2,100.31 09/24/2019 207500 PAUSTIS WINE COMPANY SEPTEMBER COST OF GOODS - LIQUOR STORE 1,276.75 09/24/2019 207501 PENMAC STAFFING SERVICES, INC. WEEK WORKED 9/1/19 5,495.75 09/24/2019 207502 PHILLIPS WINE & SPIRITS SEPTEMBER COST OF GOODS - LIQUOR STORE 10,379.79 09/24/2019 207503 PLUNKETTS PEST CONTROL SEPT 2019 - AUG 2020 GENERAL PEST CONTRO 705.77 09/24/2019 207504 PRECISION CONCRETE CUTTING TRIP HAZARD REPAIR: MAIN STREET 478.00 09/24/2019 207505 PREMIUM WATERS SEPT SERVICES 40.50 09/24/2019 207506 PTM DOCUMENT SYSTEMS W-2 FORMS 148.75 09/24/2019 207507 QUADE ELECTRIC SPLICED WELL WIRES FOR PUMP #5 TO PUMP W 797.90 09/24/2019 207508 RAPIDS PROCESS EQUIPMENT INC LABOR TO FLIP THE ORIENTATION 840.01 09/24/2019 207509 RBSCOTT EQUIPMENT DURO-CLEAT BELT 1,343.58 09/24/2019 207510 REINER ENTERPRISES INC 8/27 - 9/11 HAULING 19,770.00 09/24/2019 207511 RIDGEWATER COLLEGE FALL SEMESTER BOOKS: JOHN KENT 1,207.15 09/24/2019 207512 RUNNING'S SUPPLY REPAIR & MAINTENANCE SUPPLIES 317.12 09/24/2019 207513 SAM'S TIRE SERVICE GY EAGLE ENFORCER 1,095.80 09/24/2019 207514 SHORT-ELLIOT-HENDRICKSON, INC THRU 7/31-TH 7-MONTANA HAWK SYSTEM PRO 9,495.99 09/24/2019 207515 SITEONE LANDSCAPE SUPPLY HERBICIDE, FERTILIZER 1,921.56 09/24/2019 207516 SMALL LOT MN LLC AUGUST COST OF GOODS - LIQUOR STORE 1,836.00 09/24/2019 207517 SOIL CONTROL LAB WB POTTING MIX GUARANTEED ANALYSIS 225.00 09/24/2019 207518 SOLUS LED REPLACE 2X2 LIGHT FIXTURE WITH LED AT C 8,568.00 09/24/2019 207519 SORENSEN'S SALES & RENTALS JUMPING JACK COMPACTOR 186.00 09/24/2019 207520 SOUTHERN WINE & SPIRITS OF MN SEPTEMBER COST OF GOODS - LIQUOR STORE 41,159.50 09/24/2019 207521 SRF CONSULTING GROUP THRU 7/31- SOUTH GRADE ROAD FINAL DESIG 15,209.84 09/24/2019 207522 STANDARD PRINTING-N-MAILING OAKLAND CEMETERY PURCHASE AGREEMENT, CAR 1,602.31 09/24/2019 207523 STREICH TRUCKING 9/3 CREEKSIDE TO TRAVERS 1,005.00 09/24/2019 207524 SUN LIFE FINANCIAL September Admin Fees 9,688.63 09/24/2019 207525 THOMPSON, MITCHELL EXPENSE REIMB: PANTS 204.95 09/24/2019 207526 THOMSON REUTERS-WEST AUG WEST INFO CHARGES 126.00 09/24/2019 207527 TITAN MACHINERY SERVICE MACHINE, REPAIR TILT WHEEL 4,657.73 09/24/2019 207528 TRI COUNTY WATER RENTAL WATER COOLER 24.00 09/24/2019 207529 TWO-WAY COMMUNICATIONS INC ENGINE #7, REPLACE HEADSET CHARGING CORD 235.00 09/24/2019 207530 UNUM LIFE INSURANCE CO OF AMERICA October Life Insurance 2,639.23 09/24/2019 207531 USA BLUE BOOK GLOVES 217.84 09/24/2019 207532 VER-TECH SOLUTIONS & SERVICES SEPT DISHMACHINE RENTAL 69.95 09/24/2019 207533 VERHEY, JJ EXPENSE REIMB: WORK PANTS 50.00 09/24/2019 207534 VERIZON WIRELESS JUL 24 - AUG 23, 2019 3,259.93 09/24/2019 207535 VIKING BEER SEPTEMBER COST OF GOODS - LIQUOR STORE 14,025.65 09/24/2019 207536 VIKING COCA COLA SEPTEMBER COST OF GOODS - LIQUOR STORE 778.42 09/24/2019 207537 VIKING SIGNS & GRAPHICS INC AIRPORT STENCIL "TRANSIENT" 160.00 09/24/2019 207538 VINOCOPIA INC SEPTEMBER COST OF GOODS - LIQUOR STORE 1,833.25 09/24/2019 207539 WASTE MANAGEMENT OF WI -MN 8/16 - 8/31'19 REFUSE 7,455.26 09/24/2019 207540 WELCOME NEIGHBOR HUTCH NEW RESIDENTVISITS 60.00 09/24/2019 207541 WEST CENTRAL SANITATION INC. MONTHLY REFUSE HAULING & CITY FACILITIES 49,481.23 09/24/2019 207542 WINE COMPANY, THE SEPTEMBER COST OF GOODS - LIQUOR STORE 1,287.55 09/24/2019 207543 WINE MERCHANTS INC SEPTEMBER COST OF GOODS - LIQUOR STORE 133.61 09/24/2019 207544 WITTE SOD FARMS INC 15 ROLLS SOD - FOOTBALL FIELD 45.00 09/24/2019 207545 WM MUELLER & SONS FINE MIX 4,863.12 09/24/2019 207546 WORKUP STARTUP BOOTCAMP - MILES SEPPELT 1,250.00 Total - Check Disbursements: $ 992,082.94 Department Purchasing Card Activity - August 2019 Date Dept Vendor Name Description Amount 08/14/2019 FINANCE MINNESOTA GFOA MNGFOA Conference - A.Reid $ 210.00 08/21/2019 FINANCE AMAZON Envelopes, correctible ribbon, calculator 73.17 08/22/2019 FINANCE AMAZON Headset and microphone 37.90 08/26/2019 FINANCE WAL-MART Soda for City Center vending machine 51.82 08/26/2019 FINANCE CASH WISE Soda for City Center vending machine 19.26 08/29/2019 FINANCE AMAZON DMV - Thermal paper rolls 21.20 08/29/2019 FINANCE AMAZON DMV - Thermal paper rolls 21.54 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 9/5/19 - 9/24/19 Check Date Check Vendor Name Description Amount 08/30/2019 FINANCE AMAZON Pack of writing paper pads 6.94 08/07/2019 FIRE CASH WISE Bulk bottled water and coffee for station. 72.94 08/09/2019 FIRE KNOX COMPANY Knox box access door decals 56.00 08/12/2019 FIRE GLOBAL TEST SUPPLY Sensor for the 4 gas monitor 107.40 08/27/2019 FIRE WPSG, INC Highrise pack straps for Ladder 1 161.66 08/02/2019 IT AMAZON Cell phone headsets for Engineering staff 147.96 08/05/2019 IT AVTECH SOFTWARE INC Server room temperature alert system 99.95 08/06/2019 IT SOLARWINDS Dameware remote pc support system 226.85 08/07/2019 IT BESTBUY Ink for field printers 39.99 08/07/2019 IT BESTBUY IPAD for Jetter Truck 1,149.99 08/08/2019 IT AMAZON Die for plotter 307.38 08/09/2019 IT AMAZON Ipad case for jetter truck 29.99 08/12/2019 IT AMAZON Plotter print head 80.50 08/12/2019 IT AMAZON Matt Maiers cell phone acc 26.88 08/13/2019 IT AMAZON Plotter print heads 241.50 08/13/2019 IT AMAZON JJ hands free 20.89 08/15/2019 IT CROSS BORDER TRANS FEE Server hard drives 15.49 08/15/2019 IT SILLWORKS LTD Server hard drives 925.75 08/15/2019 IT SILLWORKS LTD Server hard drives 54.00 08/15/2019 IT SILLWORKS LTD Server hard drives 40.00 08/15/2019 IT SILLWORKS LTD Server hard drives 47.00 08/15/2019 IT SILLWORKS LTD Server hard drives 54.00 08/15/2019 IT SILLWORKS LTD Server hard drives 13.00 08/15/2019 IT SILLWORKS LTD Server hard drives 402.00 08/15/2019 IT SILLWORKS LTD Server hard drives HRA 13.00 08/15/2019 IT AMAZON Hands free Matt Maiers 36.99 08/19/2019 IT AMAZON DVD DL Body Cams 98.80 08/20/2019 IT AMAZON RAID controller battery 33.97 08/20/2019 IT AMAZON CMOS battery for server 3.82 08/21/2019 IT AMAZON DVD drive for laptop in IT 32.99 08/23/2019 IT AMAZON Headphone adapter TKLoss 9.99 08/29/2019 IT PAYPAL League Lineup web site 299.95 08/30/2019 IT AMAZON Cables for Ryan Ellenson 42.99 08/05/2019 PRCE AMAZON SOS Bags 13.20 08/05/2019 PRCE AMAZON Snickers 67.96 08/05/2019 PRCE AMAZON Assorted Products 357.58 08/05/2019 PRCE AMAZON Cheetos 52.35 08/05/2019 PRCE AMAZON Goldfish Crackers 25.95 08/07/2019 PRCE AMAZON Candy 42.44 08/09/2019 PRCE GREEN PAPER PRODUCTS Cups and Lids 742.13 08/12/2019 PRCE AMAZON Cups 47.71 08/12/2019 PRCE AMAZON Pickleball Nets 2,169.93 08/12/2019 PRCE WHENIWORK.COM When I Work 134.42 08/12/2019 PRCE ALL SPORTS AMERICA LTD Practice Pants and Pads 810.68 08/12/2019 PRCE AMAZON Solo Cups 199.80 08/16/2019 PRCE HORIZON POOL SUPPLY Filter Cleaner 1,294.34 08/19/2019 PRCE RED CROSS TRNG & PROD Lifeguarding , Waterpark training bundle 410.00 08/22/2019 PRCE FIRST AID SUPPLIES ONLINE First Aid Supplies 124.74 08/30/2019 PRCE MN RECREATION AND PARK ASSOC MRPA Conference Registration 350.00 08/08/2019 PLANNING AMAZON Safety post for roof hatch. 249.00 08/05/2019 POLICE AMAZON Iphone chargers 13.39 08/19/2019 POLICE AMAZON Coffee Cups 57.24 08/20/2019 POLICE AMAZON Iphone protective case 11.99 08/21/2019 POLICE AMAZON Paper plates 25.99 08/22/2019 POLICE AMAZON Flash drives 30.22 08/27/2019 POLICE AMAZON Small plates 15.02 08/05/2019 PUB WKS PAYPAL Vehicle Side Steps 169.99 08/07/2019 PUB WKS POLLUTION CONTROL AGENCY MPCA SW Permit - SGR Project 400.00 08/15/2019 PUB WKS INTERSTATE PRODUCTS Jetter Dewatering Bags 455.82 08/15/2019 PUB WKS HOM ELECTRICAL WWTF Process LED Bulbs 746.40 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 9/5/19 - 9/24/19 Check Date Check Vendor Name Description Amount 08/19/2019 PUB WKS AMERICAN SAFETY WW Nitrile Gloves 195.00 08/21/2019 PUB WKS AMAZON WW Fluke Meter Fuses 66.32 08/26/2019 PUB WKS SEALMASTER OF MINNESOTA Street Repair Materials 713.88 08/28/2019 PUB WKS WESTECHRIGG Forestry Rigging 1,584.95 08/29/2019 PUB WKS HAMLINE UNIVERSITY APWA Leadership Training - John P. 1,475.00 08/29/2019 PUB WKS CASHNET SERVICE FEE APWALeadershipTraining- JohnP. 40.56 08/07/2019 CREEKSIDE SPS COMMERCE July 2019 SPS fees for UH, Bomgaars & ACE 242.00 08/30/2019 CREEKSIDE VALLEY EXPO & DISPLAY Booth furnishings -table, at 2019 Prince Fall show 183.82 08/01/2019 LIQUOR FACEBOOK Advertising 122.94 08/01/2019 LIQUOR ACE HARDWARE Tapper repair 4.74 08/05/2019 LIQUOR RETAIL INFORMATION TEC 2 credit card terminal replacements Reg 2 and 4 1,184.47 08/08/2019 LIQUOR MENARDS HUTCHINSON Replacement lights 21.46 08/16/2019 LIQUOR RETAIL INFORMATION TEC Monthly CardDefender fee 213.75 08/23/2019 LIQUOR EIG CONSTANTCONTACT.COM Email advertising 70.00 08/26/2019 LIQUOR MENARDS HUTCHINSON Cleaning supplies 41.46 08/26/2019 LIQUOR ACE HARDWARE Misc operating supplies 11.58 08/27/2019 LIQUOR MINNESOTA MUNICIPAL BEVERAGE ASSOC MMBA Regional meeting for 4 Full Time employees 80.00 08/30/2019 LIQUOR RETAIL INFORMATION TEC 2 credit card terminal replacements Reg 1 and 3 1,184.47 08/01/2019 EDA MENARDS HUTCHINSON Materials for Enterprise Center monument sign 51.37 08/01/2019 EDA MENARDS HUTCHINSON Materials for Enterprise Center monument sign 26.84 08/01/2019 EDA MENARDS HUTCHINSON Return of surplus materials for monument sign (40.63) 08/09/2019 EDA MENARDS HUTCHINSON Return of surplus materials for monument sign (38.53) 08/12/2019 EDA WAL-MART Miscellaneous supplies for Enterprise Center 12.39 08/26/2019 EDA ZELLAS Lunches for TigerPath Moms focus group 77.31 08/30/2019 EDA SUBWAY Lunches for EDA Board meeting 62.57 Total- Purchasing Cards: $ 21,941.46 GRAND TOTAL I 1$ 1,014,024.40 CHECK REGISTER B FOR CITY OF HUTCHINSON CHECK DATE FROM 9/5/19 - 9/24/19 Check Date Check Vendor Name Description Amount 09/24/2019 207430 CROW RIVER GLASS INC. INSTALL 3 WINDOWS ON LOADER 321.19 Total - Check Disbursements: $ 321.19 HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Ordinance No. 19-806 & 19-807- Amending Chapters 111 and 123 Department: Administration/Legal LICENSE SECTION Meeting Date: 9/24/2019 Application Complete N/A Contact: Marc A. Sebora Agenda Item Type: Presenter: Marc A. Sebora Reviewed by Staff ❑ Unfinished Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: You may recall that at the end of our discussion on the food vendor and transient merchant ordinances at the last meeting, the Council ended up tabling approval of these ordinances so that an exception provision could be added to the food vendor ordinance that would exempt multivendor events at the McLeod County Fairgrounds, Hutchinson Mall, Event Center or connected with the Chamber of Commerce, which was something that was already included in the transient merchant ordinance. Staff has made the changes to incorporate these exceptions into the food vendor ordinance and it is shown in the ordinance in purple. Other than that one change, both the food vendor and transient merchant ordinances are the same as the previous meeting. BOARD ACTION REQUESTED: Approve draft/first reading of Ordinance No. 19-806 & 19-807 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: ORDINANCE 19-806 AN ORDINANCE AMENDING CHAPTER 111 — PEDDLERS AND SOLICITORS The City Council hereby ordains: 111.01 DEFINITIONS. Except as may otherwise be provided or clearly implied by context, all terms shall be given their commonly accepted definitions. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. PEDDLER. Any person, whether a resident of the city or not, who goes from house to house, from place to place or from street to street, conveying or transporting goods, wares or merchandise or offering or exposing the same for sale or making sales and delivering articles to purchasers. It does not include vendors who distribute products to regular customers on regular established routes. SOLICITOR. Any person, whether a resident of the city or not, who goes from house to house, from place to place, or from street to street, in person or by telephone, soliciting or taking or attempting to take orders for sale of goods, wares or merchandise, including magazines, books, periodicals or personal property of any nature whatsoever for future delivery, or for service to be performed in the future, whether or not such individual has, carries or exposes for sale a sample of the subject of such order or whether or not he or she is collecting advance payments on such orders. Such definition includes any person who, for himself or herself, or for another person, firm or corporation, hires, leases, uses or occupies any building, motor vehicle, trailer, structure, tent, railroad box car, boat, hotel room, lodging house, apartment, shop or other place within the city for the primary purpose of exhibiting samples and taking orders for future delivery. It does not include vendors who distribute products to or take orders from regular customers on regular established routes or display products or take orders at invited in -home demonstrations. TRANSIENT MERCHANT. Any person, firm or corporation, whether as owner, agent, consignee or employee whether a resident of the city or not, who engages in a temporary business of selling and delivering goods, wares and merchandise within the city, and who, in furtherance of such purpose, hires, leases, uses or occupies any building, structure, motor vehicle, lodging house, apartments, shops or any street, alley or other place within the city, for the exhibition and sale of such goods, wares and merchandise, either privately or at public auction. Such definition does not include any person who, while occupying such temporary location, does not sell from stock, but exhibits samples for the purpose of securing orders for future delivery only. The sale of farm or garden products, whether or not sold by the person producing the same, shall be included within the definition set forth above; provided, however, that, the City Council may exempt such farm and garden products from the chapter as are sold at a duly organized and authorized farmer's market. (2004 Code, § 111.01) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.02 LICENSE REQUIRED. (A) It is unlawful for any peddler, solicitor or transient merchant to engage in any business within the city without first obtaining a license therefor from the city. It is unlawful for any solicitor to engage in any business within the city without first registering his or her business information with the city. Business information shall include: (1) Name of owner/agent of company performing solicitation; (2) Company address; (3) Contact phone number of owner/agent; (4) List of all employee names who will be performing solicitation on behalf of company; (5) Estimated time frame when solicitation will occur; (6) Products being solicited; and (7) Other cities solicitation has occurred. (B) Where licensing is referenced throughout the remainder of this chapter, it shall refer to peddlers and transient merchants only (2004 Code, § 111.02) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003; Ord. 13-718, passed 9-24-2013) Penalty, see § 10.99 111.03 Types of license An applicant may apply for the following_types of license: (A) Annual License — an annual license for the activities contained in this chapter may be issued for the duration of a calendar year at a fee set by the City Council as part of the ci . 's fee schedule. The fee shall not be prorated. (B)Temporary License - a license for the activities contained in this chapter may be issued for a period of up to three consecutive days at a fee set by the City Council as part of the city's fee schedule. A maximum of four temporary licenses per calendar year will be issued to the same aDDlicant or for the same location. (C Multi -vendor Sponsored Event License — a license for events hosted by an individual or entity that will have three or more transient merchants and/or food vendors as defined under chapter 123 of this code in attendance. This license will not be issued to the same applicant or for the same location more than four times in a calendar year and is limited to a spee fie date each license is limited to a period of up to three consecutive days. It shall be the responsibili . of the sponsor of the event to provide all of the information required under this chapter for all transient merchants attending the sponsored event. The fee for this license shall be set by the City Council as part of the city's fee schedule. § 111.43 04 EXEMPTIONS This chapter does not include the acts of persons selling personal property at wholesale to dealers in such articles, nor to newsboys, nor to the acts of merchants or their employees in delivery goods in the regular course of business. Nor shall the provisions of this chapter be applied to the acts of persons selling or displaying personal property, goods or wares to merchants or their employees for use in the merchant's business or sale upon consignment by the merchant. Additionally, multi -vendor events that are held at the Hutchinson Event Center, McLeod County Fairgrounds, Hutchinson Mall or are sponsored by the Chamber of Commerce ara ler +he Httte inner Ma4 are exempt. Nothing contained in this chapter prohibits any sale required by statute or by order of any court, or prevents any person conducting a bona fide auction sale pursuant to law. (2004 Code, § 111.03) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.,04 05 APPLICATION. (A) Applicants for a license under this chapter shall file with the City Administrator a sworn application in writing on a form to be furnished by the City Administrator. (B) The application shall give the following information: (1) Name and physical description of applicant; (2) Complete permanent home and local address of the applicant and, in the case of transient merchants, the local address from which proposed sales will be made; (3) A brief description of the nature of the business and the goods to be sold; (4) The name and address of the employer, principal or supplier of the applicant, together with credentials therefrom establishing the exact relationship; (5) The length of time for which the right to do business is desired; (6) The source of supply of the goods or property proposed to be sold, or orders taken for the sale thereof, where such goods or products are located at the time said application is filed, and the proposed method of delivery; (7) The names of at least two property owners of the county who will certify as to the applicant's good character and business respectability or, in lieu of the names of references, such other available evidence as to the good character and business responsibility of the applicant as will enable an investigator to properly evaluate such character and business responsibility; (8) A statement as to whether or not the applicant has been convicted of any crime, misdemeanor or violation of any city code provision, other than traffic violations, the nature of the offense and the punishment or penalty assessed therefor; (9) The last municipalities, not to exceed three, where applicant carried on business immediately preceding date of application and the addresses from which such business was conducted in those municipalities; and (10) At the time of filing the application, a license/investigation fee adopted by ordinance of the Council shall be paid to the City Administrator to cover the cost of investigation of the facts stated therein. (2004 Code, § 111.04) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.05 06 RELIGIOUS AND CHARITABLE ORGANIZATIONS; EXEMPTION. The provisions of this chapter shall not apply to any organization, society, association or corporation desiring to solicit or have solicited in its name money, donations of money or property or financial assistance of any kind or desiring to sell or distribute any item of literature or merchandise for which a fee is charged or solicited from persons other than members of such organizations upon the streets, in office or business buildings, by house to house canvass or in public places for a charitable, religious, patriotic or philanthropic purpose. (2004 Code, § 111.05) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.,06 07 INVESTIGATION AND ISSUANCE. (A) Upon receipt of each application, it shall be referred to the Chief of Police, who shall immediately institute such investigation of the applicant's business and moral character as he or she deems necessary for the protection of the public good and shall endorse the application in the manner prescribed in this chapter within seven days after it has been filed by the applicant with the City Administrator. (B) As a result of such investigation, the Chief of Police shall endorse his or her approval or disapproval on such application and his or her reasons for the same and return the application to the City Administrator, who, after consideringthe he application and results of the police investigation, may_ administratively_ issue tempo,., ..y ,liens,., all licenses under this chapter. date of the applieation. (C) If the City Administrator of C;etmeil shall reject such application, the City Administrator shall notify the applicant that his or her application is disapproved and that no license will be issued. The City Administrator may deny a license application for any of the reasons contained in Section 111.13 of this ordinance and the applicant may appeal the city administrator's decision in the manner contained in that same section. If the City Administrator the r;,.,,,, :' shall approve such application, the City Administrator shall deliver to the applicant his or her license. Such license shall contain the signature of the issuing officer and shall show the name and address of the licensee, the class of license issued and the kinds of goods to be sold thereunder, the date of issuance and the length of time, not to exceed one year from the date of issuance that the same shall be operative, as well as the license number. Each peddler, solicitor or transient merchant must secure a personal license. No license shall be used at any time by any person other than the one to whom it is issued. The City Administrator shall keep a permanent record of all licenses issued. (2004 Code, § 111.06) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 111.07 08 LOUD NOISES AND SPEAKING DEVICES. No licensee, nor any person in his or her behalf, shall shout, cry out, blow a horn, ring a bell or use any sound amplifying device upon any of the streets, alleys, parks or other public places of the city or upon private premises where sound of sufficient volume is emitted or produced therefrom to be capable of being plainly heard upon the streets, avenues, alleys, parks or other public places, for the purpose of attracting attention to any goods, wares or merchandise which such licensee proposes to sell. (2004 Code, § 111.07) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) Penalty, see § 10.99 § 111.49 09 USE OF STREETS. (A) No licensee shall have any exclusive right to any location in the public streets, nor shall any be permitted a stationary location in the public streets or public right-of-way, nor shall any be permitted to operate in a congested area where such operation might impede or inconvenience the public use of such streets. (B) For the purpose of this chapter, the judgment of a police officer, exercised in good faith, shall be deemed conclusive as to whether the area is congested and the public impeded or inconvenienced. (2004 Code, § 111.08) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) Penalty, see § 10.99 § 111.09 10 EXHIBITION OF LICENSE. Licensees are required to exhibit their license at the request of any citizen. (2004 Code, § 111.09) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 111.4-0 11 DUTY OF POLICE TO ENFORCE. It shall be the duty of the police to require any person seen peddling, soliciting or canvassing and who is not known by such officer to have obtained a license hereunder to produce his or her license and to enforce the provisions of this chapter against any person found to be violating the same. (2004 Code, § I11.10) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 111.44 12 RECORDS. The Chief of Police shall report to the City Administrator all convictions for violation of this chapter and the City Administrator shall maintain a record for each license issued and record the reports of violation therein. (2004 Code, § I11.11) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 111.42 13 DENIAL AND REVOCATION OF LICENSE. (A) Licenses applied for or issued under the provisions of this chapter may be denied or revoked by the Council after notice and hearing, for any of the following causes: (1) Fraud, misrepresentation or incorrect statement contained in the application for license; (2) Fraud, misrepresentation or incorrect statement made in the course of carrying on his or her business as solicitor, canvasser, peddler, transient merchant, itinerant merchant or itinerant vendor; (3) Any violation of this section; (4) Conviction of any crime or misdemeanor; and (5) Conducting the business of peddler, canvasser, solicitor, transient merchant, itinerant merchant or itinerant vendor, as the case may be, in an unlawful manner or in such a manner as to constitute a breach of peace or to constitute a menace to health, safety or general welfare of the public. (B) Notice of the hearing for the denial or revocation of a license shall be given by the City Administrator in writing, setting forth specifically the grounds of complaint and the time and place of hearing. Such notice shall be mailed, postage prepaid, to the licensee at his or her last known address at least five days prior to the date set for hearing, or shall be delivered by a police officer in the same manner as a summons at least three days prior to the date set for hearing. (2004 Code, § I11.12) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 11 L-14 14 REAPPLICATION. No licensee whose license has been revoked shall make further application until at least six months have elapsed since the last previous revocation. (2004 Code, § I11.13) (Ord. 92-52, passed 2-25-1992; Ord. 03-340, passed - -2003) § 111.4-4 15 EXPIRATION OF LICENSE. (A) All annual licenses issued under the provisions of this chapter shall expire at midnight on December 31 in the year when issued. (B) Other than annual, licenses shall expire at midnight on the date specified in the license. § 111.16 Community Festivals. The City Council retains the authority to determine what types of licensing, if any, are required of the sponsors of recognized community festivals. (2004 Code, § 111.14) (Ord. 92-52, passed 2-25-1992; Ord. W3-340, passed - -2003) Adopted by the City Council this Gary T. Forcier, Mayor day of 2019. Attest: Matthew Jaunich, City Administrator ORDINANCE 19-807 AN ORDINANCE AMENDING CHAPTER 123 — FOOD VENDORS The City Council hereby ordains: 123.01 DEFINITIONS. For the purposes of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. MOBILE FOOD CART. A non -motorized cart from which prepackaged or ready -to -eat foods are sold to the public. MOBILE FOOD VEHICLE. A self-contained vehicle or trailer used to prepare and serve food or ice cream novelties that is readily movable without disassembling. TEMPORARY FOOD STAND. A food and beverage service establishment that is disassembled and moved from location to location which operates no more than 21 days in the same location (2004 Code, § 123.01) (Ord. 13-0704, passed 3-26-2013) § 123.02 LICENSE REQUIRED. It is unlawful for any person to engage in the business of selling items from a mobile food cart or food vehicle in the city without having obtained the proper license therefor, except as stated herein. (2004 Code, § 123.02) (Ord. 13-0704, passed 3-26-2013) Penalty, see § 123.99 § 123.03 TYPES OF LICENSE. (A) Annual License — an annual license for the activities contained in this chapter may be issued for the duration of a calendar year at a fee set by the City Council as part of the ci . 's fee schedule. The fee shall not be prorated. (B)Temporary License - a license for the activities contained in this chapter may be issued for a ��ro�e period of up to three consecutive days at a fee set by the City Council as part of the city's fee schedule. A maximum of four temporary licenses per calendar .j ear will be issued to the same applicant or for the same location. Multi -vendor Sponsored Event License — a license for events hosted by an individual or entity that will have three or more food vendors and/or transient merchants as defined in chapter 111 of this code in attendance. This license may be issued for a 2ro 1� period of up to three consecutive days and may be issued up to four times per calendar year per applicant. It shall be the responsibility of the sponsor of the event to provide all of the information required under this chapter for all transient merchants attendingthe he sponsored event. The fee for this license shall be set by the City Council as part of the city's fee schedule. This license will not be issued to the same applicant or for the same location more than four times in a calendar year. § 123. 04 EXEMPTIONS. Multi -vendor events that are held at the Hutchinson Event Center. McLeod C Fairgrounds, Hutchinson Mall or are sponsored by the Chamber of Commerce are exempt from the requirements of this ordinance. Additionally, any person may sell or peddle the products of the farm or garden that they occLiRy and cultivate without obtaining a license therefor. (2004 Code, § 111.03) (Ord. 89-14, passed 6-1-1990; Ord. 03-340, passed - -2003) § 123.43 05 REQUIREMENTS. (A) All persons applying for a mobile food cart or food vehicle license shall first have obtained all proper licenses from the state and submit copies of said licenses to the city for review during license application process. (B) All mebile f9ed e&4 licensees under this chapter conducting activities on city owned or controlled property shall be properly insured naming the city as an additional insured for liability imposed by law arising out of the ownership, maintenance or operation of such cart or vehicle in amounts of at least $50,000 for the injury or death of one person, $100,000 for the injury or death of two or more persons and $10,000 for damage to property. (C) Licensees shall have a waste receptacle available to patrons and are responsible for all litter and waste generated by the food cart or food vehicle operation. No tables or chairs for customer use are permitted. (D) All signage, other than one sandwich board sign as permitted through the Planning Department shall be affixed to the food cart or food vehicle only. Use of sandwich board signs by licensees shall be subject to the requirements of this chapter. (E) All mobile food carts or food vehicles shall prominently display all relevant state and local licenses and permits. (F) In areas where parking spaces are delineated, no food vehicle shall occupy more than two parking spaces and shall otherwise comply with all parking regulations. (2004 Code, § 123.03) (Ord. 13-0704, passed 3-26-2013) Penalty, see § 123.99 § 123.06 INVESTIGATION AND ISSUANCE. (A)Upon receipt of each application, it shall be referred to the Chief of Police, who shall immediately institute such investigation of the applicant's business and moral character as he or she deems necessary for the protection of the public good and shall endorse the application in the manner prescribed in this chapter within seven days after it has been filed b, t�pplicant with the City Administrator. (B) As a result of such investigation, the Chief of Police shall endorse his or her approval or disapproval on such application and his or her reasons for the same and return the application to the City Administrator, who, after considering the application and results of the police investigation, may administratively issue tempefaf lice ses all licenses under this chapter. date of the (C If the City Administrator ^ shall reject such application, the City Administrator shall notify the applicant that his or her application is disapproved and that no license will be issued. 44ie City "ar inistrater may deny a heense applieationfor- any of the . If the City Administrator or the Council shall approve such application, the City Administrator shall deliver to the applicant his or her license. Such license shall contain the signature of the issuing officer and shall show the name and address of the licensee, the class of license issued and t e= Reeds to be sold then-o,,, & the date of issuance and the length of time, not to exceed one Ye from the date of issuance that the same shall be operative, as well as the license number. peddle-senciterof t ansient mef:ehant fmist seettr-ea i3ef:senal lieense. No license shall be used at any time by any person other than the one to whom it is issued. The City Administrator shall keep a permanent record of all licenses issued. (D) An applicant whose license application has been denied by the city administrator magppeal the denial by requesting a hearing before the city council as set forth in § 123.07. § 123.94 07 RESTRICTIONS It is unlawful for any mobile food eat4 ^r food .,ehiele licensee under this chapter to engage in the following activities: (A) To operate within 100 feet of a restaurant that is open for service without the written consent of the restaurant owner or operator; (B) To operate a food cart within 500 feet of any festival, fair or civic event, except when authorized to do so by the event sponsor in writing; (C) To operate on public property or adjacent parking lots where a concession stand is open and operating; (D) To operate in violation of nuisance statutes or ordinances; (E) To operate on any public parking lot, trail or public sidewalk within four feet of the curb or roadway; (F) To operate in such a way as to impede normal traffic flow; (G) To permit smoking within 15 feet of the food cart or food vehicle; (H) To operate within five feet of any crosswalk, access ramp, disabled parking space or in a manner that would impede access to any adjacent business; (I) To sell or distribute alcoholic beverages; and/or (J) To disobey any order of the City Police Department. (2004 Code, § 123.04) (Ord. 13-0704, passed 3-26-2013) Penalty, see § 123.99 § 123.08 DENIAL AND OR REVOCATION OF LICENSE AND HEARING. (A) Licenses applied for or issued under the provisions of this chapter may be denied or revoked by the Council after notice and , hearin for or any of the following causes: (1) Fraud, misrepresentation or incorrect statement contained in the application for license, or in the case of a license denial, submitting an incomplete application, Fraud. misrepresentation or incorrect statement made in the course of carrying on his or her business as solicitor, canvasser, peddler, transient merchant, itinerant merchant or itinerant vendor: (3) Any violation of this section, (4) Conviction of any crime or misdemeanor, and (B) Notice of the hearing for the denial or revocation of a license shall be given by the City Administrator in writing, setting forth specifically the grounds of complaint and the time and place of hearing. Such notice shall be mailed, postage prepaid, to the licensee at his or her last known address at least five days prior to the date set for hearing, or shall be delivered by a police officer in the same manner as a summons at least three days prior to the date set for hearing. (2004 Code, § 111.12) (Ord. 92-52, passed 2-25-1992, Ord. 03-340, passed - -2003) § 123.09 REAPPLICATION. No licensee whose license has been revoked shall make further application until at least six months have elapsed since the last previous revocation. (2004 Code, § 111.13) (Ord. 92-52, passed 2-25-1992, Ord. 03-340, passed - -200D § 123.09 EXPIRATION OF LICENSE. (A) All annual licenses issued under the provisions of this chapter shall expire at midnight on December 31 in the year when issued. (B) Other than annual, licenses shall expire at midnight on the date specified in the license. (2004 Code, § 111.14) (Ord. 92-52, passed 2-25-1992, Ord. W3-340, passed - -2003) § 123.10 Community Festivals. The City Council retains the authority to determine what types of licensing, if any, are required of the sponsors of recognized community festivals. § 123.99 PENALTY. Violations of any portion of this section are punishable as a misdemeanor and are grounds for the suspension or revocation of the mobile food cart license in accordance with § 110.03 of this code of ordinances. (2004 Code, § 123.99) (Ord. 13-0704, passed 3-26-2013) Adopted by the City Council this Gary T. Forcier, Mayor day of 2019. Attest: Matthew Jaunich, City Administrator HUTCHINSON CITY COUNCIL ci vof 0, a_ � Request for Board Action 79 M-W Agenda Item: Resolution 15092 Approving the HRA Preliminary 2020 Tax Levy Department: Finance LICENSE SECTION Meeting Date: 9/24/2019 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff F1 New Business Time Requested (Minutes): 3 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: In accordance with State Statute, the City must certify a preliminary 2020 tax levy to the County by September 30, 2019. This tax levy will fund the 2020 operations of the HRA. The HRA's 2020 statutory levy limit is $192,993 which is the levy amount the HRA board is requesting. This levy represents a 3.7% increase from the 2019 levy of $186,023. The HRA's statutory levy limit is based on .0185% of the City's 2019 Estimated Market Value of $1,043,205,000. BOARD ACTION REQUESTED: Approve the HRA preliminary 2020 tax levy of $192,993. Fiscal Impact: Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON RESOLUTION NO. 15092 CITY OF HUTCHINSON, MINNESOTA SETTING 2020 PRELIMINARY TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON REDEVELOPMENT AUTHORITY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA WHEREAS the City of Hutchinson hereby establishes a special taxing district for the purpose of Hutchinson Housing Redevelopment Authority (Hutchinson HRA) and the financing of such district as authorized under Minn. Statute 469.033. WHEREAS the Minn Stat 469.033 authorizes a levy to be set for an HRA special tax of .000185 times estimated market value of the city. AND for 2020 the authorization yields:.000185 x $1,043,205,000 = $192,993; the HRA Board requests for 2020 a levy of $192,993. THAT the City of Hutchinson hereby establishes a preliminary tax levy for the above named special taxing district of: $192,993 Adopted by the City Council this 24th day of September 2019. Gary T. Forcier Mayor ATTESTED: Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL ci vof 0, a_ � Request for Board Action 79 M-W Agenda Item: Resolution 15093 Approving the EDA Preliminary 2020 Tax Levy Department: Finance LICENSE SECTION Meeting Date: 9/24/2019 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff F1 New Business Time Requested (Minutes): 3 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: In accordance with State Statute, the City must certify a preliminary 2020 tax levy to the County by September 30, 2019. This tax levy will fund the 2020 operations of the EDA. The EDA's 2020 statutory levy limit is $189,133 which is the levy amount the EDA board is requesting. This levy represents a 3.7% increase from the 2019 levy of $182,303. The EDA's statutory levy limit is based on .01813% of the City's 2019 Estimated Market Value of $1,043,205,000. BOARD ACTION REQUESTED: Approve the EDA preliminary 2020 tax levy of $189,133. Fiscal Impact: Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON RESOLUTION NO. 15093 CITY OF HUTCHINSON, MINNESOTA SETTING 2020 PRELIMINARY TAX LEVY FOR SPECIAL TAXING DISTRICT HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA WHEREAS the City of Hutchinson hereby establishes a special taxing district for the purpose of Hutchinson Economic Development Authority (Hutchinson EDA) and the financing of such district as authorized under Minn. Statute 469.107. WHEREAS the Minn Stat 469.107 authorizes a levy to be set for an EDA special tax of .0001813 times estimated market value of the city. AND for 2020 the authorization yields- .0001813 x $1,043,205,000 = $189,133; the EDA Board requests for 2020 a levy of $189,133. THAT the City of Hutchinson hereby establishes a preliminary tax levy for the above named special taxing district of: $189,133 Adopted by the City Council this 24th day of September 2019. Gary T. Forcier Mayor ATTESTED: Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Resolution 15094 Approving the General Fund & Debt Service Fund Preliminary 2020 Tax Levies Department: Finance LICENSE SECTION Meeting Date: 9/24/2019 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ New Business Time Requested (Minutes): 5 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: In accordance with State Statute, the City must certify a preliminary 2020 tax levy to McLeod County by September 30th, for the General Fund and Debt Service Funds. We will be setting the final tax levy in December. As a reminder, the final levy cannot increase from the Preliminary levy, however it can be reduced. At the budget workshop on September 10th, Matt Jaunich reviewed the preliminary General Fund budget and Debt levy. The total tax levy was projected to increase 3.3%, consisting of a 4.8% General fund levy increase and no increase to the Debt levy. The General fund budget was balanced with the 4.8% levy increase. Since that meeting, we received the estimated 2020 tax capacity from the county, totaling $11,243,553. This represents an 3.1 % increase over 2019, while the 9/10 presentation included a 4% estimated increase. I have included a revised analysis of the tax impact on the median home value. The increased tax capacity essentially would offset a 3.1 % tax levy increase, leaving the tax rate flat from 2019. The median home could see a $47 increase in City taxes with a 3.1 % levy increase, with about $19 of that increase being attributed to the increase in home value. The preliminary budget includes a 2% shift in the pay grid, a 5% estimated increase in workers compensation rates and a 7% increase in the health premiums. There are no increases to other employee benefits. The impact from the open enrollment for health and dental coverage will be known for the final budget. The Debt levy remains flat since we are at the current target levy of $2,200,000 per the Debt Management plan. The revised debt plan calls for a $400,000 per year increase in funding for street improvements, starting in 2016, but the debt tax levy will remain at $2.2M until 2023, at which point moderate increases will be needed to reach the new target debt levy of $2.6M in 2032. BOARD ACTION REQUESTED: Approve the 2020 preliminary tax levy increase of 3.1 % (4.5% General Fund and 0% Debt levy). Fiscal Impact: Funding Source: FTE Impact: 0.00 Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: CITY OF HUTCHINSON RESOLUTION NO. 15094 2020 PRELIMINARY TAX LEVY FOR CITY OF HUTCHINSON, MINNESOTA BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA THAT A NET tax levy for the City of Hutchinson for 2020 is hereby set in the amount of: $7,537,908 The detail for this levy is as follows: LEVY Amt. General Fund 5,292,908 Tax Abatement 45,000 Improvement Bonds 2006 250,417 2008 118,466 2009 160,155 2010 78,492 2011 144,580 2012 114,676 2013 123,852 2014 129,884 2015 151,325 2016 317,092 2017 208,466 2018 182,369 2019 220,226 Total Improvement Bonds $ 2,200,000 TOTAL TAX LEVY $ 7,537,908 Adopted by the City Council this 24th day of September 2019. Gary T. Forcier Mayor /_�91IMN1121191i Matthew Jaunich City Administrator Preliminary Levies for 2020 General Fund Tax Abatement Debt Funds Total City Levy EDA Levy H RA Levy TOTAL TAX IMPACT 2019 5,110,005 2020 5,292,908 45,000 % Chg 3.6% 0.9% 2,200,000 2,200,000 0.0% 7,310,005 7,537,908 3.1 % 182,303 189,133 3.7% 186,023 192,993 3.7% 7,678,331 7,920,034 3.1 % Preliminary Tax Levy Impact - City of Hutchinson General Fund levy: Debt levy. TAX CAPACITY % Change Tax Levy - General Fund Tax Levy - Debt Service TOTAL LEVY Total Levy % Increase over 2019 Tax Rate Change in Tax Rate Homestead Property: Median Home Value Homestead Exclusion Net Taxable Value % Change Tax Capacity (1%) Estimated City Tax Change from 2019 % Change PRELIMINARY 2020 Adopted 2019 Option #1 Option #2 Option #3 Option #4 4.0% 0.0% 3.0% 4.0% 4.5% 0.0% 0.0% 0.0% 0.0% 0.0% $ 10,903,202 $ 11,243,553 $ 11,243,553 $ 11,243,553 $ 11,243,553 3.1% 3.1% 3.1% 3.1% 5,110,005 2,200,000 5,110,005 2,200,000 5,263,305 2,200,000 5,314,405 2,200,000 5,337,908 2,200,000 $ 7,310,005 $ 7,310,005 $ 7,463,305 $ 7,514,405 $ 7,537,908 0.0% 2.1% 2.8% 3.1% 67.045% 65.015% 66.379% 66.833% 67.042% -2.029% -0.666% -0.212% -0.003% Adopted 2019 Option #1 PRELIMINARY 2020 Option #2 Option #3 Option #4 $ 160,000 $ 166,500 $ 166,500 $ 166,500 $ 166,500 (22,800) (22,300) (22,300) (22,300) (22,300) $ 137,200 $ 144,200 $ 144,200 $ 144,200 $ 144,200 5.1% 5.1% 5.1% 5.1% $ 1,372 $ 1,442 $ 1,442 $ 1,442 $ 1,442 920 938 957 964 967 $ 19 $ 38 $ 45 $ 47 2.0% 4.2% 4.9% 5.1% EXHIBIT C $2.500,000 $2,000,000 $1,500,000 ■ $1,000,000 $500,000 $0 Debt Management Plan Projected Debt Tax Levy 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 =Existing Levy =Proposed Future Issues =Equipment —Target Levy Debt Memo To: Mayor and City Council From: Jean Ward, HRA Executive Director Date: September 17, 2019 Re: Tax Levy Request for 2020 HRA Board approved City Center Budget The HRA Board respectfully requests a 2020 tax levy increase of $6,970 compared to 2019 for a total 2020 tax levy request of $192,993.00. The tax levy increase will be used for salaries according to the approved pay plan as well as a health insurance increase in 2020. There will also be an expected 5% increase in costs for the starter home initiative relating to additional affordability gap needed and provided by the HRA. Thank you for your consideration of the 2020 HRA Tax Levy request. The HRA looks forward to continuing to provide affordable housing programs relevant to the needs of Hutchinson. HUTCHINSON CITY COUNCIL Cityaf A L� Request for Board Action Resolution 15097 Calling for a Public Hearing on a Proposal for the Issuance of Senior Agenda Item: Housing Facility Revenue Obligations to Finance a Senior Housing Project Department: Finance LICENSE SECTION Meeting Date: 9/24/2019 Application Complete Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff New Business Time Requested (Minutes): 5 License Contingency iN, Attachments: Yes BACKGROUND/EXPLANATION OF AGENDA ITEM: Please see the attached memo from me regarding a request from Prince of Peace for the City to serve as the conduit for tax-exempt financing for a planned $3.5M expansion to its senior housing facility. Also attached is a resolution calling for a public hearing on October 22, along with information submitted by Prince of Peace and its bond counsel, Briggs and Morgan. Essentially, city council needs to decide the following during the September 24 council meeting: 1. Is the project appropriate for the city and for the city's tax-exempt financing capability? 2. What level of city fee should be charged, if any. Typical fees are in the range of 0.125% to 1.00% of the par value of bonds issued, or a negotiated flat fee amount. The fee is designed to reimburse the city for its incurred costs and staff time related to the project. I am recommending a $12,000 fee, which is what we collected from Ecumen in 2006 related to the Oaks and Pines financing. The fee amount should be decided on September 24th to be communicated to Prince of Peace prior to debt issuance. Just to reiterate what my memo states, the City is in no way obligated to pay the debt service on this issuance. Prince of Peace is solely responsible for making the payments. BOARD ACTION REQUESTED: Approve or Disapprove Resolution #15097 and set the amount of City fee related to the project. 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 Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350-2522 320-587-5151/Fax 320-234-4240 Memo To: Mayor Forcier and City Council From: Andy Reid Cc: Matt Jaunich Date: September 18, 2019 Re: Prince of Peace Senior Apartments — Conduit Financing The City has received a formal request from Prince of Peace to act as the conduit for issuing tax-exempt bonds to finance an expansion to its senior living facility. The proposed expansion, with a not to exceed cost of $3.5 million, would add eleven new apartment units and convert two existing units into office and common space. The purpose of this agenda item is to make council aware of the request, to gain an understanding if council believes the project is appropriate to the city, and that council is willing to extend the City's tax-exempt financing for the intended project. Resolution 915095, which is attached behind this memo, would need to be approved if council is receptive to the City being the conduit for financing the project. The resolution does not commit the City to the project, but merely calls for a public hearing to be held on October 22 to discuss the project, with final approval, or denial, given at that time. The anticipated time line of events is as follows: 1) Sept 24 —council approves/disapproves conduit financing as appropriate for this project 2) Sept 24 —council approves resolution setting Public Hearing for October 22na 3) Oct 22 — council holds public hearing and gives final approval of the project 4) Nov 1 — anticipated closing date and sale of bonds to finance project Non-profit organizations cannot issue tax-exempt bonds directly. Federal law requires non -profits to go through a city to issue tax-exempt bonds, with the city essentially acting as a conduit. It is important to note that this conduit financing will not obligate the City in any manner. An agreement will be drafted, and approved by the city council on October 22, explaining that Prince of Peace is solely responsible for debt service payments, IRS reporting, arbitrage, continuing disclosures, and other responsibilities related to the debt issuance for the life of the bonds. The only potential impact to the City is regarding the $10 million annual bank qualification limit for tax- exempt financing. This will not be an issue for 2019, as the City's bond issuance along with the conduit financing will fall well under the $10 million limit. Please note that our Water and Sewer refinancing of $3 million does not count towards the $10 million limit since we are not extending the original maturities on those bonds. It is beneficial to the City to finalize this financing in 2019 while we are under the $10 million annual limit. There is a possibility that we issue bonds in 2020 for a new police facility and this conduit financing would definitely put us over the $10 million limit if done in the same year as the police facility. Conduit financing such as this is common. In fact, this exact process was used to finance the Ecumen project of the Oaks and Pines, although Lake Crystal was the local government that issued the bonds. It is common practice for cities to assess an administrative fee, which is paid upfront at the time the bonds are issued. The fee is intended to cover the city's expenses related to the issuance, including costs related to legal review, financial advisory service and to reimburse for city staff time. Ehlers has noted that they have seen fees in the range of 1/8 of 1% to 1%, depending on the community. It can also be a fixed fee. We received $12,000 in 2006 when the Ecumen project was financed and another $1,000 in 2014 when it was refinanced. I recommend that the City assess a fee for the Prince of Peace project and any future conduit financing projects that may arise, but that fee should be in line with actual costs incurred, rather than a percentage of the bond issuance. My recommendation is for a $12,000 fee, which is consistent with the Ecumen project. This fee amount will sufficiently cover the City's expenses related to the project. We can review this fee amount in the future if necessary. Thank you. Extract of Minutes of a Meeting of the City Council of the City of Hutchinson, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Hutchinson, Minnesota, was duly called and held at the City Hall in said City on September 24, 2019, at 5:30 p.m. The following members were present: and the following were absent: Member introduced the following resolution and moved its adoption: RESOLUTION NO. _15097_ RESOLUTION CALLING FOR A PUBLIC HEARING ON A PROPOSAL FOR A HOUSING FINANCE PROGRAM AND GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF SENIOR HOUSING FACILITY REVENUE OBLIGATIONS TO FINANCE A SENIOR HOUSING PROJECT (PRINCE OF PEACE EXPANSION PROJECT) The motion for the adoption of the foregoing resolution was duly seconded by member , and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 12062576v2 RESOLUTION NO. _15097_ RESOLUTION CALLING FOR A PUBLIC HEARING ON A PROPOSAL FOR A HOUSING FINANCE PROGRAM AND GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF SENIOR HOUSING FACILITY REVENUE OBLIGATIONS TO FINANCE A SENIOR HOUSING PROJECT (PRINCE OF PEACE EXPANSION PROJECT) (a) WHEREAS, Minnesota Statutes, Chapter 462C (the "Act"), confers upon cities, the power to issue revenue obligations to finance multifamily housing developments; and (b) WHEREAS, the City Council of the City of Hutchinson, Minnesota (the "City") has received a proposal from Prince of Peace Senior Apartments, Inc., a Minnesota nonprofit corporation (the 'Borrower"), that the City assist in financing a Project hereinafter described, through the issuance of revenue obligations (in one or more series) (the "Bonds") to be issued in 2019 pursuant to the Act; and (c) WHEREAS, the City desires to facilitate the maintenance and development of senior rental housing facilities within the community; encourage the development of affordable housing opportunities for elderly residents of the City and the surrounding community; encourage the development and maintenance of housing facilities designed for occupancy by elderly; and encourage the development of blighted or underutilized land and structures within the community; and the Project will assist the City in achieving these objectives; and (d) WHEREAS, the Bonds will be issued to finance (i) the expansion, construction, and equipping of eleven (11) additional independent living units and (ii) the construction, conversion, and equipping of two (2) existing living units into office and common space in an existing multifamily senior housing facility, totaling approximately 18,882 square feet, located at 301 Glen Street Southwest, in the City (the "Project"); and (e) WHEREAS, the Borrower is the owner and operator of the Project; and (f) WHEREAS, no public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project; and (g) WHEREAS, before proceeding with final consideration of the request of the Borrower it is necessary for the City to hold a public hearing on the housing finance program and proposal pursuant to the Act; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, as follows: 1. A public hearing on the housing finance program and proposal of the Borrower will be held at the time and place as determined by the City Administrator and as set forth in a Notice of Public Hearing substantially in the form attached hereto as Exhibit A. 2 12062576v2 2. The general nature of the proposal and an estimate of the principal amount of Bonds to be issued to finance the Project are described in the attached form of Notice of Public Hearing. 3. A draft copy of the housing finance program with proposed forms of all attachments and exhibits, if any, shall be on file in the office of the City Administrator on the date the Notice of Public Hearing is published. 4. The City Administrator is hereby authorized and directed to cause notice of the hearing to be given one publication in the official newspaper of the City and a newspaper of general circulation available in the City, not less than 15 days nor more than 30 days prior to the date fixed for the hearing, substantially in the form of the attached Notice of Public Hearing with such changes as required or approved by Bond Counsel. 5. The City hereby gives preliminary approval to the proposal of the Borrower that the Borrower undertake the Project, and the City undertake the program of financing therefor, pursuant to the Act, consisting of the financing of the Project pursuant to the Borrower's specifications and to a loan agreement between the City and the Borrower on such terms and conditions with provisions for revision from time to time as necessary, so as to produce income and revenues sufficient to pay, when due, the principal and interest on the Bonds in a total principal amount not to exceed $3,500,000 to be issued pursuant to the Act to finance the Project; and said agreement may also provide for the entire interest of the Borrower in the Project to be mortgaged to the purchasers of the Bonds. 6. At the option of the City, the financing may be structured so as to take advantage of whatever means are available and are permitted by law to enhance the security for, or marketability of, the Bonds; provided that any such financing structure must be consented to by the Borrower. 7. On the basis of information available to the City it appears, and the City hereby finds, that the Project constitutes a multifamily housing development designed for rental by elderly persons, as permitted by subdivision 4 of Section 462C.05 of the Act; that the availability of the financing under the Act and the willingness of the City to furnish such financing will be a substantial inducement to the Borrower to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the construction and maintenance of new multifamily rental housing opportunities for elderly residents of the community, and to promote more intensive development and use of land within the community. 8. Briggs and Morgan, Professional Association, acting as bond counsel, is hereby directed to prepare a housing program for the Project and the financing thereof in accordance with the provisions of Minnesota Statutes, Section 462C.03. 9. The Borrower has agreed and it is hereby determined that any and all costs incurred by the City, including its administrative fee, in connection with the financing of the Project whether or not the Project is carried to completion will be paid by the Borrower. 9 12062576v2 10. Briggs and Morgan, Professional Association, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents relating to the Project, to consult with Borrower and the purchaser of the Bonds as to the maturities, interest rates and other terms and provisions of the Bonds and as to the covenants and other provisions of the necessary documents and submit such documents to the City for final approval. 11. Nothing in this Resolution or the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holders of the Bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Bonds or the interest thereon, or to enforce payment thereon against any property of the City, except such property as may be expressly pledged for the security of the Bonds. The Bonds shall recite in substance that the Bonds, including the interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. Adopted by the City Council of the City of Hutchinson, Minnesota, this 24t' day of September, 2019. ATTEST: City Administrator rd Mayor 12062576v2 EXHIBIT A NOTICE OF PUBLIC HEARING ON A PROPOSAL FOR A HOUSING FINANCE PROGRAM AND THE ISSUANCE OF SENIOR HOUSING REVENUE OBLIGATIONS TO FINANCE A SENIOR HOUSING PROJECT Notice is hereby given that the City Council of the City of Hutchinson, Minnesota (the "City"), will meet in the Council Chambers at the City Center building, located at 111 Hassan Street SE, in the City of Hutchinson, at 6:00 p.m. on Tuesday, October 22, 2019, to consider a housing finance program of the City and the proposal of Prince of Peace Senior Apartments, Inc., a Minnesota nonprofit corporation (the "Borrower"), that the City issue its revenue obligations (the "Bonds") to finance the Project described below pursuant to Minnesota Statutes, Chapter 462C. The Bonds will be issued to finance (i) the expansion, construction, and equipping of eleven (11) additional independent living units and (ii) the construction, conversion, and equipping of two (2) existing living units into office and common space in an existing multifamily senior housing facility, totaling approximately 18,882 square feet, located at 301 Glen Street Southwest, in the City (the "Project"). The Project will be owned and operated by the Borrower. The maximum aggregate estimated principal amount of the Bonds to be issued in one or more series to finance the Project pursuant to the housing finance program will be approximately $3,500,000. The Bonds, as and when issued, will not constitute a charge, lien, or encumbrance upon any property of the City, except the revenues to be derived from the Project. Such Bonds will not be a charge against the City's general credit or taxing powers but are payable from sums to be paid by the Borrower pursuant to a revenue agreement. Further information concerning the housing finance program and the Project may be obtained from the City Administrator during normal business hours. At the time and place fixed for the public hearing, the City Council of the City will give all persons who appear at the hearing an opportunity to express their views with respect to the housing finance program and proposal to issue the Bonds. Written comments will be considered if submitted at the above City office on or before the date of the hearing. BY ORDER OF THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA By Matt Jaunich Its City Administrator A-1 12062576v2 STATE OF MINNESOTA ) COUNTY OF MCLEOD ) CITY OF HUTCHINSON ) I, the undersigned, being the duly qualified and acting City Administrator of the City of Hutchinson, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to calling for a public hearing on and giving preliminary approval to senior housing facility revenue bonds to finance a project pursuant to a housing finance program. WITNESS my hand this day of , 2019. City Administrator 12062576v2 CITY OF HUTCHINSON, MINNESOTA HOUSING FINANCE PROGRAM PRINCE OF PEACE EXPANSION PROJECT This housing finance program is undertaken by the City of Hutchinson, Minnesota (the "City") for a Project, hereinafter described, located within the City. The Project will be financed by the issuance of revenue bonds or other obligations (the 'Bonds") pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), issued by the City and in accordance with a loan agreement (the "Loan Agreement") between the City and Prince of Peace Senior Apartments, Inc. (the 'Borrower"), a Minnesota nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"). Issuance of the Bonds is anticipated to be in the fall of 2019. The Project will consist of (i) the expansion, construction, and equipping of eleven (11) additional independent living units and (ii) the construction, conversion, and equipping of two (2) existing living units into office and common space in an existing multifamily senior housing facility, totaling approximately 18,882 square feet, located at 301 Glen Street Southwest, in the City (the "Facility"). The Facility will be owned and operated by the Borrower. The Facility has been designed and is intended for residency solely by elderly and disabled persons, and consequently, no income limits apply under the Act or other state law. The City will issue the Bonds in one or more series of tax-exempt and/or taxable obligations to finance the Project in a principal amount not to exceed $3,500,000. The Borrower will be required, pursuant to the Loan Agreement, to make payments sufficient to pay when due the principal of, premium, if any, and interest on the Bonds. The Bonds may be structured so as to take advantage of whatever means are available or necessary and are permitted by law to enhance the security for and marketability of the Bonds. Substantially all of the net proceeds of the Bonds (the initial principal amount thereof, less amounts deposited in a reasonably required reserve or paid out as costs of issuance of the Bonds) will be used to pay the costs of the Project, including any functionally related and subordinate facilities. Because the Borrower is an organization described in Section 501(c)(3) of the Code, no allocation of authority to issue tax-exempt bonds is required pursuant to Minnesota Statutes, Chapter 474A. The Facility constitutes a multifamily housing development designed for rental occupancy by elderly persons, as permitted by Section 462C.05 Subd. 4 of the Act. The Bonds issued for the Project shall be payable primarily from revenues of the Facility. The Project will be carried out in accordance with applicable land use and development restrictions, and any new construction is subject to applicable state and local building codes. The Project is not inconsistent with any Housing Plan adopted by the City under Minnesota Statutes, Chapter 462C. The Borrower will be required to operate the Facility in accordance with state and local anti -discrimination laws and ordinances. The costs of the Project and the program of financing the Project, including specifically the costs of the City, generally will be paid or reimbursed by the Borrower. Adopted 52019 12073332v2 BRIGGS September 17, 2019 City of Hutchinson Attn: Andy Reid, Finance Director 111 Hassan Street SE Hutchinson, MN 55350-2522 2200 IDS Center 80 South 8th Street Minneapolis, MN 55402 oFc 612-977-8400 FAx 612-977-8650 uiec Briggs.corn Prince of Peace Senior Apartments, Inc. Attn: Merline Duering, Executive Director 301 Glen Street Southwest Hutchinson, MN 55350 Daniel F. Burns (612)977-8511 dbums@briggs.com Citizens Bank & Trust Co. Attn: Anthony Hanson, Executive Vice President 102 Main Street South PO Box 339 Hutchinson, MN 55350 Re: Housing Revenue Bonds, Series 2019 Dear Ms. Duering and Gentlemen: We have been asked to serve as Bond Counsel and Bank Counsel for the issuance of tax- exempt revenue obligations (the "Bonds") issued by the City of Hutchinson, Minnesota (the "Issuer") and purchased by Citizens Bank & Trust Co. (the "Bank"). The proceeds of the Bonds will be loaned by the Issuer to Prince of Peace Senior Apartments, Inc. (the "Borrower") and used to finance the expansion, construction, and equipping of nine (9) additional independent living units to an existing multifamily senior housing facility (the "Facility"), totaling approximately 18,882 square feet (the "Project"), that is owned and operated by the Borrower, and located at 301 Glen Street Southwest, Hutchinson, Minnesota. In performing our services as Bond Counsel and Bank Counsel, our clients will be the Issuer and the Bank. Our principal responsibility as Bond Counsel is to provide the Issuer, the Borrower, and the Bank an expert opinion (the "Bond Opinion"), upon which each of them may rely, as to (i) the validity and enforceability of the Bonds and the Issuer's obligations under the financing documents, and (ii) exemption of interest on the Bonds from federal and Minnesota income taxes. We will also assume principal responsibility for drafting any and all documents agreed to by the parties. You are also in agreement that we will not be acting as a municipal advisor in regards to this transaction. We do not assume any responsibility for any disclosures made to the Issuer or the Bank regarding the Borrower or the Project. We do not expect to give any opinion with respect to the Borrower's participation in the financing or the status of title or the priority of any mortgage lien, Briggs and Morgan, Professional Association Affirmative Action, Equal Opportunity Employer 11750870v1 BRIGGS City of Hutchinson Citizens Bank & Trust Co. Prince of Peace Senior Apartments, Inc. September 17, 2019 Page 2 if any. As to these and other matters the parties will be relying upon the opinion to be given by counsel for the Borrower. The Bond Counsel opinion will be executed and delivered by us in written form on the date the Bonds are purchased by the Bank and will be based on facts and law existing as of that date. Upon delivery of the Bond Counsel opinion, our responsibilities as Bond Counsel will be concluded with respect to this transaction. In rendering the Bond Counsel opinion, we will rely upon representations of the Issuer, the Borrower, and the Bank set forth in the financing documents, the certified proceedings, and other certifications of public officials, officials of the Borrower and other persons (including certifications as to the use of Bonds proceeds and various tax matters) without undertaking to verify the same by independent investigation. As Bond Counsel, we do not review the financial condition of the Borrower or the financial feasibility of the financing, and we will express no opinion relating to the foregoing. We wish to point out to the parties that while we do not represent the Borrower for this transaction, we may have represented the Borrower in the past on at least one legal matter unrelated to the present financing and may do so in the future. While this and any other unrelated representations may be "adverse" under applicable ethics rules, this letter will confirm our understanding that the parties are agreeable to our acting as Bond Counsel and Bank Counsel in this proposed financing notwithstanding our potential historical representation of the Borrower on unrelated matters. If our understanding is not correct, please contact us. We understand that the Borrower will be responsible for payment of our fees and disbursements as Bond Counsel and Bank Counsel. Our fee will be based upon: (i) our current understanding of the terms, structure, size and schedule of the financing represented by the Bonds, and (ii) the time we anticipate devoting to the financing. Such fee may vary: (i) if the principal amount of the Bonds actually issued differs significantly from the amount currently anticipated, (ii) if the manner in which the Bonds are marketed (private placement, public offering, etc.) changes, (iii) if material changes in the structure of the financing occur, or (iv) if unusual or unforeseen circumstances arise which require a significant increase in our time or responsibility. If the Bonds are in fact issued we will submit our statement for services and disbursements to the Borrower at the closing. 11750870v1 BRIGGS City of Hutchinson Citizens Bank & Trust Co. Prince of Peace Senior Apartments, Inc. September 17, 2019 Page 3 If the transaction is cancelled before closing for whatever reason, we would then submit our bill to the Borrower for the time expended and disbursements made by us to the date of termination at our standard hourly rates. If the foregoing omits or misstates any item, please contact me. Otherwise, we will assume our participation as Bond Counsel and the scope of our engagement as Bond Counsel are acceptable to you. We are pleased to be working on this matter and look forward to bringing it to a successful conclusion. Sincerely, Daniel F. Burns DFB/pmr 11750870v1 301 Glen Street SW Hutchinson, MN 55350 (320) 234-7588 Cell; (320) 583-2117 Fax: (320) 234-6355 September 11, 2019 City Council City of Hutchinson 111 Hassan St SE Hutchinson, MN 55350 Dear City Council: Retirement Living Website: www.poprl.org E-mail: merline@popr.org I am writing as the Executive Director of Prince of Peace Senior Apartments, Inc. For those unfamiliar with Prince of Peace, we are a non-profit organization which provides affordable independent residential living, for those 55 and older. We presently have 40 living apartments available to seniors who do not require close supervision of their daily living activities. Given the shortage of affordable senior housing in the area, we are seeking to expand our building and add a net of nine new apartments. Our proposed expansion project includes a firm not to exceed amount of $3.5 million. In order to finance this project, we are seeking conduit financing with tax-exempt bonds. We are asking the City of Hutchinson to issue these tax-exempt bonds with the assistance of Citizens Bank & Trust Co. and their bond counsel Briggs and Morgan. The $3.5 million not to exceed figure would cover- all of our construction and renovation costs, including the cost of moving a gas Iine, a fixed bid for the construction of an addition to our building and renovation of our existing building, and contingencies and overruns. Here is the proposed breakdown of the use of the funds: Fixed Bid for Construction/Renovation of Building $3,100,000.00 Soft Costs $400,000.00 Including moving a gas line, architectural fees, loan costs, bond counsel fees. closing costs, and contingencies and overruns Total Project Cost not to exceed $3.500,000,00 To verify the use of these funds, I have enclosed a copy of the fixed bid from Larson Building, Inc. An appraisal of our project is pending and will be forwarded as soon as we have it. It is our mission at Prince of Peace Retirement Living to create a dignified lifestyle within a "Senior Community" that provides conveniences and services which enhance that quality of life and social involvement of each community member. September 11, 2019. Page 2 of 2. Our funding will come almost exclusively from Citizens Bank & Trust Co. They have offered us a term sheet including a not -to -exceed real estate mortgage of $3,500.000 or 75% of the appraised value of the project, whichever is less. This mortgage would include a 300 month term on a 300 month amortization schedule, with a 3.5% fixed interest rate which would reset on 5 year anniversaries to fixed at the 7 year US Treasury yield + 2.0%. As collateral, we are offering Citizens Bank & Trust Co. a first mortgage on the expansion project and our existing building. The term sheet is enclosed with this letter. Prince of Peace will not be providing equity or a down payment on this loan. This is because Prince of Peace has a need to reserve cash for working capital and for the first year's debt service cash requirement. We are confident this project will be successful. Our general contractor Larson Building, Inc. is more than capable to handle this project as they specialize in construction of senior apartments and assisted living facilities. There is a shortage of affordable senior housing in our community, and we hope to help alleviate that shortage with this expansion project. Prince of Peace has been a reliable source of affordable, independent senior housing in our community for twenty-five years, and this expansion project will help ensure that this will continue into the future. if you need any more documentation, please call me at 320- 234-7588 or a -mail me at merline@poprl.org. poprl.org. Sincerely. Lku L � Merl i ne R. Duer Executive Direci Enc. Project Duration (wk5) Prince of Peace Total New SF Total Remodel SF Total SF LA Hutchinson Mn Total Cost �.4.= Cost per SF General Conditions % GC's Addendums 0 18,982 18,882 $2,961,945 $156-87 $294,913.00 9.96% 0 - i3Cscriptiort .: Name a PSf : HoUrs . Rate; . La liar' 1... ... Mats • ..: :..:::+ •. 1 100D General Conditions o 1 Supervision Time Full Time 8 months 4.95% $ 7.75 1559 $94 $146,546 $0 $0 $146,546 1 Pro]ect Manager 1A5% $ 277 390 $110 $42,900 $0 $0 S42,900 1 Surveying 0.25% $ 0,40 0 $0 $0 $o $7,SOO $7.500 1 Dumpsters 18 each at $444 017% $ 0-42 0. $0 $0 $o $7,992 S7,992 1 1 Disposables General Labor Daily Cleanup 1 MIscShelters D.27% $ 0-42 0. $0 $0 $16,250 $0 $o $8,D00 $0 $8,000 $16,250 0.55% $ 0.46 250 $55 1 Plan Production /Postage 0.07% 5 0,11 0 $o S0 $0 $2,100 $2,100 1 Porta Potty 2 @ 175 Month 0.09% A $ 0.15 0 $0 $0 $0 $2,800 $2,800 1 Job Trailer $650/mo 0_19% $ 0-28 8 $650 $0 $0 $5,200 $S,2o0 11 Storage Tra I I er $200/mo 0,07% $ Q11 10 $200 $0 $9 $2,000 $2,000 11 Temp Utilities By Owner 0.00% $ - 0 $0 $0 $O 5o $0 1 Final Cleaning Allowance 0,25% $ 0.40 0 $o $0 $0 $7,500 $7,500 1 Jab Tools & Equipment Larson Building 0,34% $ 0,53 0 $0 Sol $0 $10,Do0 $10,ODD 1 Winter Conditions Allowance 1,1894 $ 1.85 0 $o $o $0 535,000 $35,000 1 Drinking Water/First Aid 125 per month 0,04% S 0.06 0 $o $0 59 $1,125 $1,125 2 02000 Special Inspections Testing Chosen Val I eV Testi ng 0.27% $ 0.42 0.0 $0 $0 $o $8,000 $8,000 2102050 Demolition Kellington 0.44% $ 0.69 0.0 $o $0 $0 512,950 $12,950 2102200 Excavation Juul 4,48% $ 7,03 0.0 $o $0 $33,732 $99,084 $132,816 2 02220 utilities Inc. Juul 0,00% $ 0-0 $D $0 $0 SO So 2 02513 Asphalt Concrete Paving Dunnicks 0.94% S 1.47 0.0 $0 So 513,938 $13,874 $27,81.2 2 02520 Partlan6 Cement Paving Juul 0,00% $ - 0.0 $0 $0 $o $0 $o 2 Fence trash enclosure Keller Fence 0.34°% $ 0-53 0.0 $0 So $4,140 $5,820 $9,960 2 02800 ILandscaping Allowance 0.68% $ 1,06 0.0 $D SO $0 $20,000 $20,000 3103300 Cast in place concrete Ashwill 2.53% $ 3.97 0.0 $0 $0 $0 $75,000 $75,000 3 03420 Precast Concrete Malin 2.48% $ 3,98 0,0 $0 $0 $57,690 $15,649 $73339 3 03510 Gyp Crete Underlayment KMAC+Winter number 0.53% $ 0.83 0.0 $0 5o $6,960 S8,69D $15,650 404200 Masonry Concrete Foudations Ashwill- No Brick 9,04% 5 14.18 0.0 $o $0 $118,750 $148,916 $267,666 5 05100 Structural Steel 0,00% $ - OX $0 $0 $0 $0 $0 5 05110 Steel Erection 0.00% $ - 0.0 $0 Sol $o $0 $o 5 05500 Metal Fabrications Allowance 0.32% $ 0.48 0.0 $0 $o $9,100 $0 S9,100 6 6 06100 06120 Raugh Carpentry Finish CarpentryTrim First Choice/ 6luedorn Unit Allowance /.61uedorn++ 9.80% $ 15.39 0.0 $0 $o $10,400 $164,389 $16,SOO $126,000 $o $290,389 526,900 0,91% $ 1,42 160.0 SO 6106180 Laminated Beams & Micro Lam Inc. First Choice O.DO% $ - 0.0 $0 to $0 $o 50 6 06192 Wood Truss Inc. First Choice 0.00% $ - 0.0 $o $0 $0 $0 $0 Inc 06390 Fabrications First Choice D.OD% $ - oA $0 So $0 $0 $0 6 064DO Architectural Woodwork Maselter 3.11% $ 4.87 OX $0 $o $91,995 $91,995 5 06410 Cabinets Maselter 0.00% $ OX $0 $0 $0 $0 $0 6 06420 Countertops Maselter 0.0% $ 0.0 $o $0 $0 $o $0 6 06430 Casework (Plastic Laminate) Maselter 0.00% $ OX $0 $0 $0 $0 $0 707111 Composite Sheet Waterproofing Spec7 Group 0.47% $ 0.74 0.0 $0 $0 $7,9381 $5,954 $13,992 797210 Building Insulation Stevens Insulation 1-01% $ 1.59 0.0 $0 $0 $13,740 $16,245 $29,985 7 Thermax Stevens Insulation 0.83% $ 1.30 OX $0 $0 $11,925 $12,701 524,526. 7 07300 Shingles, Flashing Kingdom Builders 0,97% $ 1.51 0.0 $0 $0 $15,610 $12,997 528,597 7 07470 Siding Soffit and facia Horizon Roofing 2.09% $ 3.26 0.0 $0 $0 $20,450 $41,100 $61,550 7107600 1 Sheet Metal Fla shIngs and Trim Horizon Roofing 0.00% $ - 0,0 $0 $0 $0 So $0 7 17900 Joint Sealers Sunrise 0.30% $ 0.48 O.0 SO 59 $2,250 $6,740 58,990 8 08110 Steel Doers and Frames �.___ _--- - - Prefinishad Sect, Metal Frames Door Service Company - .. - -- - - - Door Service Company 2.49% $ 3.90 105.0 $65 $6,825 - - - - --- $o $66,850 --. _ .._ . $0 _ _ $0 $0 $73,675 $0 808130 �._ -0-OD% $ OX $0 iV Sec.:•..I : ... Oescriptioi ... Name % . $jPSV Hoursl Rate Labor . ftltats Labor-2 Total 8 03210 1wood Doors 'poor Service Company 0.00% $ 0,0 $0 $0. $0 $01 SD 8 08311 Access Doors and Panels Allowance - Rated D.08% $ 0.12 10.0 S65 $550 $1,600 $0 $2,250 8 08320 Metal Clad Doors Door Service Company 0.06% $ u $o $0 $0 $0 SO 8 G8333 Overhead Doors American Door Works 0.64% $ 1.01 0.0 $0 50 $o $18,993 $18,993 8 08600 dad Wood Windows First Choice 0.06% $ - 0.0 $0 $0 $0 $0 $9 8108710 Door Hardware Door Service Company O.M $ - oA ► $0 $D $0 $0 $0 8108800 JGIasss and Glazing Dakota 0.15% 5 0.23 0.0 $0 50 $1,943 $2,375 $4,319 9 092SO Gypsum Drywall Larson Drywall 3.68% $ 5.77 OX $0 $0 $33,223 $75.791 $109,014 9 09300 Tile US 0.34% $ 0,53 OX $0 $o $S,O36 $5,056 _ _ 510,092 9 09510 Acoustical Ceilings Stumpf Acoustics 0.19% $ 0.29 OX $0 $0 $3.130 $2,400 $5,530 9 9 0965D 09680 _ ResiIlent Flooring Carpeting Y — CFS CFS 0.00% $ - 0.0 $0 $0 $0 $0 $41,376 SO $13.5Z5 $0 �----$54,901 1.85% 5^ 2,91 OX $0 9109900 Painting Finnish Painting 1.29% $ 1,85 0:0 50 50 $34,900 $34,900 10 10260 Wall and Carrier Guards SM51 0.04% $ 0.07 10.0 $65 5650 $579 50 $1,229 10 10522 fire Extinguishers BMSI 0.05% 5 0.07 4.0 $65 S260 51,089 $0 $1,349 10 10550 Postal Specialties BM51 0.05% 5 0,08 12.0 $65 $780 $643 SO $1,423 10 10800 Toilet and Bath Accessories 8M51 0.27% $ InA2 6MO $55 $3,900 $3,957 $D $7,8S7 10 Wire Mesh Lockers BM51 0.214% $ 0.32 40.0 $65 $2,600 53,509 $0 $6.109 11 11900 Residential Equipment by owner 0.00% $ - OX $0 $0 $0 $0 s0 1414200 Elevator Schindler 3.32% $ 5.21 0.0 $0 $0 $32.840 $65,450 $98,290 15 15300 Fire Sprinkler Breth-Zenzen 2.26% $ 3.55 OX $0 5o 528,500 $38,580 $67,OSO 15 15400 Plumbing and HVAC Falcon Mechanical 13,00% $ 20.39 0.0 50 $0 $206,874 $178,711 $395,085 16 16100 Electrical Melrose Electric "' 8.45% $ 13,26 0.0 $0 $0 $130,770 $119,600 $250,370 0.00% $ - 0,0 $O $0 50 0.00% $ D.G SG $01 so 89.69% $ 140.69 $231,761 $1,059,931 51,365,903 $2,656,495 Arojerrgorificafia7ns 89.69% 5 140,69 Subtotal $2,656,495 0.87% $ L37 Permit $25,914 Window Treatments by owner 0,00% 1 5 SAC/Wq_ Appllantes By Owner 0.90% j $ 1A1 P&P Bond $26,565 Utility Fee's By Owner 0.34% $ 0.54 GL Insurance $Zo,158 Sac. Wac. Fee By Owner 91.80% 4 $ 144.01 3.0MY Subtotal Builders Risk Contingency $2,719,132 Landscaping Allowance $20,000 included 0.24% 1 $ 0.38 $7.200 $81,574 Elevator included is a Schindler Elevator 2,75%_ 1 $ 4.32 Delete exterior brick and install siding 5,20% 1 $ &16 5.50% ............. ....... )-€ ^ 54,039 Simplified boors - Hardware • Frame Package 100,00% 5 156,87 Totall $2,961,945 Electrical VE options to go D0 with alternate design scope Foundations changed to Poured Conc. vs Masonry Increase winter conditions budget for November Start HVAL product J equipment substitutions and reductions f BidAflerneces Tax Exempt Material Contract $1,058,931 Labor and Taxable Contract $1,903,014 Paint Existing Exterior Building Budget Add $24,265.00 Total Project $2,961,945 New Carpet in Dining Room Budget Add $5.000.00 -CITIZENS BANK 8c TRUST CO. September 3, 2019 Prince of Peace Senior Apartments, Inc. 301 Glen St SW Hutchinson, MN 55350 Dear Prince of Peace Senior Apartments, Inc: Citizens Bank & Trust Co, has reviewed your financing request for of commercial real estate located at 301 Glen St SW in Hutchinson. We are pleased to offer the following term sheet for your consideration: Real Estate Loans: Tax Exempt Construction/Permanent Term Financin Borrower: Prince of Peace Senior Apartments, Inc I" REM Loan Amount: Not to exceed $3,500,000 or 75% of appraised value, whichever is less Loan Term: 300 month term, 300 month amortization Payment Amount: Monthly interest only (6 to 12 months), remaining term $17,980/mo P&I (est.) Rate: 3.5% fixed, rate resetting on 5 year anniversaries to fixed at 7 yr US Treasuries + 2.0% (not to be lower than 3.41/6) Prepayment Penalties None Collateral: I" CREM on 301 Glen St SW, Hutchinson, Fees, 0.25% loan fee plus all out of pocket costs, including all costs for tax exempt issuance. Guarantors: None Loans are subject to the rollowing: • Final approval by CB&T credit committee • Perfected 1st lien on project real estate and business personal property & satisfactory title insurance. • Sufficient appraised value, Loan to value not to exceed 75%. ■ Sufficient projected cash flows to service proposed debt. ■ Satisfactory tax exempt financing approval by the City of Hutchinson, State of Minnesota and any other required parties, • Architect assistance (at borrower's expense) with construction draw inspections, • Evidence of insurance coverage listing Citizens Bank as loss payee/lien holder. • Other items as they are needed. This proposal is valid for 90 days from the date on this letter. Thank you for the opportunity to review your request and offer you these terms. Please let me know if you have any questions. Sincerely, Ben R. Beckman Vice President .___.__. 102 Main Street South • P.O. Box 339 • Hutchinson, Minnesota 55350-0339 Phone 320/587-2233 • FAX 320/587-5738 • www.cbhutch.com CB On -Call 320/234-6234 • TolI-Free 888/234-2910 ■ Member FDIC HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: Approve Setting the Truth -in -Taxation Hearing Date and Time Department: Administration LICENSE SECTION Meeting Date: 9/24/2019 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Matt Jaunich Reviewed by Staff ✓❑ New Business Time Requested (Minutes): 1 License Contingency N/A Attachments: No BACKGROUND/EXPLANATION OFAGENDA ITEM: As we certify our preliminary tax levies to the County, we must also notify the County (and the Public) of the date that we will hold our Truth -in -Taxation Hearing. This is a public meeting of which the tax levy and budget will be discussed and a forum will be given to allow the public to comment on the proposed levy/budget. This public hearing is required by state statute. The public meeting requirements are as follows: 1. The Council must set the date, time and place of the meeting at which a final budget and tax levy will be discussed. 2. Meeting must be held after November 24 and before December 27 and at or after 6:00 p.m. 3. The public will be allowed to speak at the meeting. 4. We must have a phone number available where the public can call to ask questions on the budget along with an address available where public comments can be received by mail. Generally speaking, we have held our Truth -in -Taxation Hearing on the first Tuesday in December. That first Tuesday is December 3 this year. However, the County Board is hosting their Truth -in -Taxation on that Tuesday this year. As an alternative, I would propose that we host ours this year on Thursday, December 5. The School District will be hosting their public hearing on December 9 this year. BOARD ACTION REQUESTED: Approve setting the Truth -in -Taxation Hearing date and time for Thursday, December 5 at 6:00 p.m. in the Council Chambers at City Center Fiscal Impact: $ 0.00 Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: Library Board Meeting July 22, 2019 Margaret Hoffman, Kay Hultgren, Carolyn Ulrich, Dianne Wanzek, and Katy Hiltner, Ex-Officio. Excused: Mary Christensen, Jared Golde, Kristine Leuze Minutes from the June 24, 2019 meeting were reviewed and accepted. Old Business: 1. Update on Library Construction Projects: Outside construction has begun with some loud noise being experienced due to the method being used to remove paint. The bathroom project will begin in August, with the hope that all projects will be completed by the time of the Arts and Crafts Fair. 2. Library Board Goals 2019-2020: There was discussion as to whether some of the suggested goals overlapped with her Katy's job description. Discussion will be continued at future board meetings, when a larger number of board members are present. New Business: 1. Summer Programs —Children and Teens: The Brodini Comedy Magic Show will be on Thursday, July 25, Open Mic Night will be held on Tuesday, July 30 (Grades 7-12), and the Schiffelly Puppets perform on Thursday, August 1. 2. Passport to the Park (Library Square): On August 12, from 6-8 pm., Historic Hutch, Hutchinson Center for the Arts, along with the Chamber of Commerce, will provide different activities in the park —crafts, games, etc. 3. McLeod County Fair Legacy Stage: On Saturday, August 17, at 4 pm., Minnesota author, Lorna Landvik, will be featured. 4. Adult Fall Programs: Under the Legacy Author Program, someone will speak at the McLeod County History Museum in Hutchinson, and then at Glencoe, later in the day. Details will follow later. Internet Safety and Scam Education will be held on Saturday, September 7, 10:30, at the library. A suggestion was made to have it filmed for the cable station. 5. Library Buzz: Carolyn: Scandal in Scarlet (Vicki Delaney), Boys in the Boat (Danial James Brown), D- Day Girls (Sarah Rose), UnKnown Warriors (James Leasor), and Madam Fourcade's Secret War (Lynne Olson) Dianne: Let Me Finish (Chris Christie), The Bible. RBG (?) Margaret: Matriarch (Susan Page), Before We Were Yours (Lisa Wingate) Kay: Maid (Stephanie Land) Katy: Her title is a secret (one of the community read candidates). Katy watched the movie "The Public" (homeless taking over a library) and felt it wasn't quite accurate. Donations for June 2019: $20.00 to buy the children's book, The Poppy Lady: Moina Bell Michael and her Tribute to Veterans, by Barbara E. Walsh, was given by the American Legion Auxiliary The meeting was adjourned at 7 pm. Next Meeting: Monday, August 26, 2019, at 6 pm. Minutes submitted by Kay Hultgren, secretary HUTCHINSON CITY COUNCIL ci=V�f� Request for Board Action 79 M-W Agenda Item: August 2019 Financial and Investment Reports Department: Finance LICENSE SECTION Meeting Date: 9/24/2019 Application Complete N/A Contact: Andy Reid Agenda Item Type: Presenter: Reviewed by Staff ❑ Governance Time Requested (Minutes): 0 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: For Council review, attached are the August Financial Reports for the general fund and enterprise funds. Also attached is the August Investment Report. Feel free to contact me with any questions. Thank you. BOARD ACTION REQUESTED: Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: No PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2019 2019 2018 2019 ACTUALS 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED General Fund Taxes - 2,702,367 5,122,005 2,419,638 52.8 2,600,325 4,925,466 52.8 Other Taxes 12,540 154,872 315,000 160,128 49.2 157,612 305,000 51.7 Licenses & Permits 41,314 353,516 414,200 60,684 85.3 378,232 343,050 110.3 Intergovernmental Revenue 47,070 1,236,521 1,578,056 341,535 78.4 1,243,657 1,555,161 80.0 Charges for Services 226,884 1,628,904 2,830,857 1,201,953 57.5 1,650,246 2,840,534 58.1 Miscellaneous Revenues 34,476 202,775 317,500 114,725 63.9 211,083 319,500 66.1 Transfers -In - 837,558 2,497,175 1,659,617 33.5 1,460,050 2,515,092 58.1 Fines & Forfeitures 4,798 45,703 50,000 4,297 91.4 33,715 55,000 61.3 Capital Contributions - - - - - - - - TOTAL REVENUES 367,081 7,162,216 13,124,793 5,962,577 54.6 7,734,920 12,858,803 60.2 Wages & Benefits 1,048,136 5,716,096 8,866,013 3,149,917 64.5 5,644,963 8,657,896 65.2 Supplies 96,935 607,974 870,578 262,604 69.8 586,450 868,840 67.5 Services & Charges 204,836 1,612,582 2,855,282 1,242,700 56.5 1,633,735 2,659,777 61.4 Miscellaneous Expenses 2,224 170,638 620,950 450,312 27.5 202,405 562,290 36.0 Transfers -Out - 50,985 101,970 50,985 50.0 451,288 501,288 90.0 Capital Outlay - - 10,000 10,000 - 13,045 10,000 130.5 TOTAL EXPENDITURES 1,352,131 8,158,275 13,324,793 5,166,518 61.2 8,531,887 13,260,091 64.3 NET REVENUE (985,050) (996,059) (200,000) 796,059 (796,966) (401,288) Comments Revenues: Net Revenue The budget reflects a deficit due to the $200,000 budget amendment to address the significant frost boil repairs on the various streets. REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2019 2019 ACTUALS AUGUST General Fund Expense by Department YTD 2019 2018 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED Mayor & City Council 4,244 27,871 55,328 27,457 50.4 27,108 49,922 54.3 City Administrator 45,369 275,602 415,643 140,041 66.3 271,823 411,990 66.0 Elections 11,588 11,588 6,000 (5,588) 193.1 5,245 23,100 22.7 Finance Department 29,217 251,277 371,041 119,764 67.7 249,607 359,527 69.4 Motor Vehicle 30,290 178,352 268,721 90,369 66.4 165,070 264,832 62.3 Assessing - - 61,152 61,152 - - 61,131 - Legal 34,035 195,236 306,847 111,611 63.6 201,365 313,858 64.2 Planning 17,110 99,101 155,835 56,734 63.6 93,748 149,212 62.8 Information Services 45,948 297,689 568,872 271,183 52.3 332,538 560,588 59.3 City Hall Building 14,623 97,401 174,705 77,304 55.8 108,524 167,556 64.8 Police Department 364,315 2,229,003 3,453,954 1,224,951 64.5 2,231,130 3,331,215 67.0 Hospital Security 32,104 192,021 323,205 131,184 59.4 194,313 311,394 62.4 Emergency Management 1,641 9,356 12,280 2,924 76.2 8,612 22,180 38.8 Safety Committee - 9,270 10,850 1,580 85.4 8,960 10,800 83.0 Fire Department 23,420 224,565 357,602 133,037 62.8 195,037 332,858 58.6 Protective Inspections 38,194 226,114 348,856 122,742 64.8 192,172 365,062 52.6 Engineering 46,298 311,516 470,704 159,188 66.2 279,269 457,087 61.1 Streets & Alleys 208,053 1,094,801 1,739,705 644,904 62.9 997,515 1,582,983 63.0 Park/Recreation Administration 25,939 166,226 265,144 98,918 62.7 165,603 260,339 63.6 Recreation 18,987 159,320 249,316 89,996 63.9 177,971 247,593 71.9 Senior Citizen Center 8,365 58,264 86,622 28,358 67.3 55,695 86,779 64.2 Civic Arena 31,974 217,477 355,362 137,885 61.2 232,639 338,878 68.6 Park Department 109,643 595,970 926,369 330,399 64.3 631,513 904,484 69.8 Recreation Building 28,154 160,464 237,367 76,903 67.6 160,994 225,236 71.5 Events Center 23,557 165,393 263,142 97,749 62.9 170,851 253,808 67.3 Evergreen Building 2,310 16,930 27,250 10,320 62.1 17,571 26,650 65.9 Library 3,002 158,963 223,460 64,497 71.1 159,248 216,091 73.7 Waterpark 122,533 287,987 388,840 100,853 74.1 322,186 398,741 80.8 Cemetery 16,932 85,794 143,159 57,365 59.9 77,737 141,517 54.9 Airport 8,692 86,118 120,670 34,552 71.4 77,025 113,640 67.8 Unallocated General Expense 5,593 268,604 936,792 668,188 28.7 720,817 1,271,040 56.7 TOTAL EXPENDITURES 1,352,131 8,158,275 13,324,793 5,166,518 61.2 8,531,887 13,260,091 64.3 Liquor Fund Sales Miscellaneous Revenues TOTAL REVENUES Cost of Sales Wages & Benefits Supplies Services & Charges Miscellaneous Expenses Transfers -Out Capital Outlay Depreciation Expense Debt Service TOTAL EXPENDITURES NET REVENUE REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2019 2019 ACTUALS AUGUST YTD 2019 2018 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED 578,861 4,175,647 6,357,000 2,181,353 65.7 4,090,033 6,245,000 65.5 613 2,154 3,000 846 71.8 1,781 4,000 44.5 579,473 4,177,802 6,360,000 2,182,198 65.7 4,091,814 6,249,000 65.5 464,087 3,247,148 4,890,710 1,643,562 66.4 3,145,042 4,771,290 65.9 72,986 428,543 698,094 269,551 61.4 425,706 671,021 63.4 1,079 12,532 25,050 12,518 50.0 9,940 27,750 35.8 7,281 82,730 143,675 60,945 57.6 90,834 145,800 62.3 118 6,088 5,350 (738) 113.8 3,800 5,850 65.0 - - 500,000 500,000 - - 500,000 - 9,698 15,000 5,302 64.7 31,777 25,000 127.1 - 82,500 82,500 - - 85,000 - - - 128,243 128,243 - - 128,045 - 545,551 3,786,738 6,488,622 2,701,884 58.4 3,707,098 6,359,756 58.3 33,922 391,063 (128,622) (519,685) 384,716 (110,756) Year to Date Sales August Sales Comments 2019 2018 Change 2019 2018 Change Liquor Sales Revenue: Liquor 1,395,259 1,359,255 2.6% 187,328 183,500 2.1% Beer 2,092,840 2,033,722 2.9% 311,024 291,284 6.8% Wine 592,243 603,253 -1.8% 66,175 67,632 -2.2% Other 95,306 93,802 1.6% 14,333 14,258 0.5% Total Sales 4,175,647 4,090,033 2.1% 578,861 556,673 4.0% Customer Count 163,310 163,882 -0.3% 23,055 22,500 2.5% Average Sale per Customer $ 25.57 $ 24.96 2.5% $ 25.11 $ 24.74 1.5% Gross Margin on Sales 22.2% 23.1 % 19.8% 30.7% Labor to Sales Ratio 10.3% 10.4% 12.6% 13.2% Year-to-date sales are up 2.1 % while customer count is down 0.3%. August sales and customer count were up 4.0% and 2.5%, respectively. 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 AUGUST 31, 2019 2019 ACTUALS AUGUST YTD 2019 2018 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED 172,262 1,116,195 1,780,000 663,806 62.7 1,147,874 1,880,000 61.1 39,478 377,907 543,500 165,593 69.5 423,455 516,750 81.9 66,351 421,959 665,000 243,041 63.5 395,565 640,000 61.8 2,224 46,953 53,000 6,047 88.6 45,443 55,000 82.6 9,324 54,859 69,500 14,641 78.9 36,812 104,500 35.2 289,638 2,017,873 3,111,000 1,093,127 64.9 2,049,149 3,196,250 64.1 56,511 330,858 519,888 189,030 63.6 310,815 478,638 64.9 3,094 97,200 137,250 40,050 70.8 81,941 132,300 61.9 35,396 314,574 522,950 208,376 60.2 279,775 535,960 52.2 - 599 15,000 14,401 4.0 11,338 14,700 77.1 - 60,000 60,000 - - 60,000 - 24,671 300,000 275,329 8.2 142,078 350,000 40.6 - - 1,100,000 1,100,000 - - 1,100,000 - 1,126,463 1,373,744 1,485,523 111,779 92.5 1,361,530 1,485,627 91.6 TOTAL EXPENDITURES 1,221,464 2,141,645 4,140,611 1,998,966 51.7 2,187,477 4,157,225 52.6 NET of REVENUES & EXPENDITURES (931,826) (123,773) (1,029,611) (905,838) (138,329) (960,975) Year to Date Water Sales Comments 2019 2018 Change Water Sales Revenue: Residential 720,766 730,924 -1.4% Commercial 222,345 252,462 -11.9% Industrial 173,084 164,489 5.2% Water Sales 1,116,195 1,147,874 -2.8% Base Charge 284,742 283,200 0.5% WAC Charge 50,015 82,222 -39.2% Other 43,150 58,032 -25.6% Other Sales 377,907 423,455 -10.8% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2019 2019 2018 2019 ACTUALS 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED Sewer Fund Sales 223,944 1,871,277 2,700,000 828,723 69.3 1,770,547 2,920,000 60.6 Sales - Other 37,624 323,866 468,000 144,134 69.2 364,896 410,000 89.0 Local Sales Tax 66,351 421,959 665,000 243,041 63.5 395,565 640,000 61.8 Licenses & Permits - 6,500 6,500 - 100.0 5,100 6,500 78.5 Charges for Services - 4,155 7,500 3,345 55.4 4,110 3,500 117.4 Miscellaneous Revenues 15,264 88,626 120,000 31,374 73.9 55,753 140,000 39.8 TOTAL REVENUES 343,182 2,716,382 3,967,000 1,250,618 68.5 2,595,971 4,120,000 63.0 Wages & Benefits 79,279 451,556 691,874 240,318 65.3 415,007 678,838 61.1 Supplies 9,077 125,401 210,700 85,299 59.5 142,259 219,700 64.8 Services & Charges 122,900 586,009 803,000 216,991 73.0 504,193 800,830 63.0 Miscellaneous Expenses 46 24,119 36,500 12,381 66.1 45,258 32,500 139.3 Transfers -Out - - 60,000 60,000 - - 60,000 - CapitalOutlay 34,509 65,507 625,000 559,493 10.5 274,262 650,000 42.2 Depreciation Expense - - 1,250,000 1,250,000 - - 1,450,000 - Debt Service 869,842 1,312,589 1,403,676 91,087 93.5 1,354,230 1,458,251 92.9 TOTAL EXPENDITURES 1,115,653 2,565,181 5,080,750 2,515,569 50.5 2,735,208 5,350,119 51.1 NET of REVENUES & EXPENDITURES (772,471) 151,201 (1,113,750) (1,264,951) (139,238) (1,230,119) Year to Date Sewer Sales Comments 2019 2018 Change Sewer Sales Revenue: Residential 1,052,323 1,036,093 1.6% Commercial 296,250 306,840 -3.5% Industrial - Flow 350,785 304,358 15.3% Industrial - Violation Surcharges 171,918 123,256 39.5% Sewer Sales 1,871,277 1,770,547 5.7% Base Charge 247,173 245,782 0.6% SAC Charge 65,734 108,054 -39.2% Other 10,959 11,060 -0.9% Other Sales 323,866 364,896 -11.2% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2019 2019 2018 2019 ACTUALS 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED Refuse Fund Sales 99,979 788,102 1,160,000 371,898 67.9 772,023 1,154,000 66.9 Sales - Other 3,987 31,625 45,600 13,975 69.4 30,988 43,550 71.2 Intergovernmental Revenue - 6,131 12,500 6,369 49.1 6,172 12,500 49.4 Miscellaneous Revenues 3,603 19,037 22,000 2,963 86.5 12,283 12,500 98.3 TOTAL REVENUES 107,569 844,896 1,240,100 395,204 68.1 821,465 1,222,550 67.2 Wages & Benefits 22,188 118,637 190,965 72,328 62.1 120,579 187,401 64.3 Supplies 1,109 32,262 62,050 29,788 52.0 38,371 58,400 65.7 Services & Charges 61,129 447,386 761,600 314,214 58.7 426,155 736,190 57.9 Miscellaneous Expenses - 840 1,500 660 56.0 6,224 6,500 95.8 Transfers -Out - 55,000 55,000 - - 55,000 - CapitalOutlay 61,141 221,500 160,359 27.6 55,640 85,000 65.5 Depreciation Expense - - 146,000 146,000 - - 144,000 - TOTAL EXPENDITURES 84,426 660,265 1,438,615 778,350 45.9 646,970 1,272,491 50.8 NET of REVENUES & EXPENDITURES 23,143 184,631 (198,515) (383,146) 174,496 (49,941) REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2019 2019 2018 2019 ACTUALS 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT AUGUST YTD BUDGET BALANCE USED ACTUAL BUDGET USED Compost Fund Sales 100,994 2,095,845 2,378,175 282,330 88.1 2,085,370 2,003,975 104.1 Charges for Services 3,520 24,119 91,245 67,126 26.4 18,076 82,500 21.9 Miscellaneous Revenues 33,571 98,445 35,000 (63,445) 281.3 37,685 26,400 142.7 TOTAL REVENUES 138,084 2,218,409 2,504,420 286,011 88.6 2,141,132 2,112,875 101.3 Cost of Sales 110,066 1,393,239 1,633,505 240,266 85.3 1,389,158 1,316,600 105.5 Inventory Cost Adjustment (49,245) (416,414) (709,585) (293,171) 58.7 (443,612) (494,200) 89.8 Wages & Benefits 75,259 453,256 704,078 250,822 64.4 407,116 610,345 66.7 Supplies 5,481 65,555 114,825 49,270 57.1 50,965 65,300 78.0 Services & Charges 24,640 161,061 308,940 147,879 52.1 153,318 243,440 63.0 Miscellaneous Expenses 1,045 7,327 11,500 4,173 63.7 8,216 11,500 71.4 Transfers -Out - - 110,000 110,000 - - 110,000 - CapitalOutlay 13,217 51,644 80,000 28,357 64.6 115,559 139,227 83.0 Depreciation Expense - - 220,000 220,000 - - 207,000 - Debt Service - 158,780 158,939 159 99.9 84,070 87,833 95.7 TOTAL EXPENDITURES 180,463 1,874,448 2,632,202 757,754 71.2 1,764,790 2,297,045 76.8 NET of REVENUES & EXPENDITURES (42,378) 343,961 (127,782) (471,743) 376,341 (184,170) Year to Date Sales Comments 2019 2018 Change Compost Sales Bagged 1,596,390 1,678,050 -4.9% Bulk 315,779 242,516 30.2% Other (Freight) 183,677 164,805 11.5% Total Sales 2,095,845 2,085,370 0.5% REVENUE AND EXPENDITURE REPORT for CITY of HUTCHINSON PERIOD ENDING AUGUST 31, 2019 2019 ACTUALS AUGUST YTD 2019 2018 2019 AVAILABLE % BDGT 2018 YTD 2018 % BDGT BUDGET BALANCE USED ACTUAL BUDGET USED Storm Water Utility Sales 78,704 626,810 937,000 310,190 66.9 608,190 904,600 67.2 Sales - Other 323 2,666 3,500 834 76.2 2,408 3,000 80.3 Licenses & Permits 945 4,060 4,500 440 90.2 3,805 4,000 95.1 Charges for Services - - - - - - - - Miscellaneous Revenues 3,646 37,073 22,300 (14,773) 166.2 14,027 13,750 102.0 Capital Contributions - - - - - - - - TOTAL REVENUES 83,617 670,609 967,300 296,691 69.3 628,430 925,350 67.9 Wages & Benefits 26,522 152,311 248,348 96,037 61.3 141,068 276,489 51.0 Supplies 5,316 29,696 32,000 2,304 92.8 9,197 38,800 23.7 Services & Charges 16,170 66,440 173,300 106,860 38.3 52,219 165,600 31.5 Miscellaneous Expenses - 18,649 10,500 (8,149) 177.6 7,315 11,250 65.0 Transfers -Out - - - - - 125,000 - CapitalOutlay 15,240 351,047 340,000 (11,047) 103.2 55,640 200,000 27.8 Depreciation Expense - - 195,000 195,000 - - 157,000 - Debt Service - 186,724 231,777 45,054 93.5 152,233 154,750 70.2 TOTAL EXPENDITURES 63,247 804,866 1,230,925 426,059 65.4 417,673 1,128,889 37.0 NET of REVENUES & EXPENDITURES 20,370 (134,257) (263,625) (129,368) 210,758 (203,539) Oppenheimer & Co. Inc. (")PPENHEIME (2126 Broad Street New York NY 10004 Transacts Business on All Principal Exchanges Asset Allocation Government Agency Bonds - 8.51 Municipal Bonds- 10.43% Mutual Funds- 43.17% Certificates of Deposit- 37.89 Portfolio Summary This Previous Estimated Period Period Annual Income 08/31/19 07/31/19 Mutual Funds $15,242,763.85 $15,905,485.98 $349,562.30 Government Agency Bonds 3,002,080.00 2,999,045.00 62,250.00 Municipal Bonds 3,678,719.10 4,140,299.50 86,155.40 Certificates of Deposit 13,381,689.25 13,065,013.91 314,273.50 Cash Account Balance 1,414.96 1,369.31 Total Asset Value $35,306,667.16 $36,111,213.70 $812,241.20 Net Value of Accrued Interest $79,649.74 $91,352.20 Total Asset Value does not include Direct Investments, Accrued Interest or unpriced securities. Cash Activity Summary 'on Opening Cash Balance $1,369.31 Net Buy and Sell Transactions -38,367.51 Net Funds Deposited or Withdrawn -1,000,000.00 Net Miscellaneous Credits/Debits 956,277.04 Net Income Activity 82,136.12 Closina Cash Balance $1.414.96 STATEMENT OF ACCOUNT Account Number: D25-5019707 Tax ID Number: ON FILE For the Period: 08/01/19 - 08/31/19 Last Statement: 07/31/19 Page 1 of 13 CITY OF HUTCHINSON MINNESOTA III HASSAN ST SE HUTCHINSON MN 55350-2522 Financial Advisor SULLIVAN/SULLIVAN X2J (800)258-3387 Internet Address: www.opco.com Income Summary Office Serving Your Account 50 SOUTH SIXTH STREET SUITE 1300 MINNEAPOLIS, MN 55402 Reportable This Period Year to Date Advantage Bank Dep Interest $0.00 $10.28 Corporate Accrued Int Received 0.00 21.48 Corporate Interest 23,023.26 168,821.91 Municipal Interest 20,202.50 88,536.70 Government Interest 5,000.00 49,750.00 Dividends 33,910.36 192,555.51 Total Reportable $82,136.12 $499,695.88 Non -Reportable Municipal Accrued Int Paid $0.00 $-6,949.40 Total Non -Reportable $0.00 $46,949.40 ('PPENHEIMEk Executive Summary CITY OF HUTCHINSON report as of09/03/2019 FIXED INCOME REPORT:... Summary Totals Original Face $20,096,000 Current Face (Par) $20,096,000 Market Principal $20,307,802 Accrued Interest $84,913 Cash & Cash Alternatives $0 Fixed Income Funds $0 Equity Balance $0 Total Portfolio Value $20,392,715 Next 12mo Cpn Cash Flow $457,624 Generic Annual Cpn Cash Flow $471,254 Weighted Averages Coupon* 2.345 Maturity** 2.76 yrs Duration 1.56 Yield to Worst 1.832 k Yield to Maturity 2.161 Market Price* 101.054 Tax Lots Holdings Included 67 of67 `Par-Wtd, all else Mkt-Wtd. "Avg life used for principal paydoms, and perpetual securities are assigned a 40 year maturity. um CD- 67.1% Muni- 18.1% 20% A9y- 14.8% 'yA'1O'I,''1�"'13'I.b'1�''1`0'11'1`b'1A3031"i�'333b"i�'3�°"i1 "i`b3�' 60 b1 b�' 63 bb b�' b`� b1 60oi `J 000000000000000000000000000000b r"e<, Q Moody's = S&P ■ Fed Tax -Exempt 0 Fed Taxable 0 Subj to Cap Gains 0 Subj to AMT 11ST/AGi PR/ETM $54,000 60 Aaa AAA $45,000 Aa AA $36,000 A 'A 40 Bea $27,000 BBB Be $18,000 BS za % <ea $9,000 NR NR $0 None �y0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 ry0 None 0� O� �° pe lac �� a PQ �a� c �� P�9 �� 0 0% 20% 40% 60% 80% 100% Cash flows based on position settlement date from 09/03/2019 to 09/02/2020. Includes all positions with recognized CUSIP, quantity, market price and full analytical calculations on reporting date. Coupon cash flow period exactly 12 months. Page 3 of 29 010�'O�Ob0�0�0^ O�O�''10,111^'1�,1R1�1�,111�10tiO; L1'�.�"ti3; Lb;�.yti6;L^'L$ti0,300' 00"O'i0'Y03"Ob'Oh"OC"O'�"O`D09;yO,y1,y'L.y3.yb,y5.y(,y'�,y0,y�i,yO,y1,y'L,y"�,yb,yS,yC ,y'�,y0,y0 "� (-PPENHEIMEI, Totals & Averages @ Acquisition CITY OF HUTCHINSON report as of09/03/2019 FIXED INCOME REPORT:... Original Face Value Current Face Value Valid Tax Lot Holdings Unrecognized Tax Lot Holdings Total Tax Lot Holdings $20,096,000 Portfolio Totals Portfolio Averaaes $20,096,000 Original Face Value $20,096,000 Yield to Worst (cost) 2.289% 67 Face Value at Acquisition $20,096,000 Yield to Worst (mkt) 1.832% 0 Original Principal Cost $20,104,725 Yield to Maturity (cost) 2.393% 67 Adjusted Principal Cost $20,092,743 Yield to Maturity (mkt) 2.161% Current Market Principal $20,307,802 Original Acquisition Price 100.043 Estimated Gain/(Loss) $215,059 Adjusted Cost Basis 99.984 Tax Lot Holdings Included 67 of 67 Current Market Price 101.054 'Valid Tax Lot Holdings' includes all tax lot holdings with recognized CUSIP and quantity. Original Face Value $20,096,000 Face Value at Acquisition $20,096,000 Tax Lot Holdings Included 67 of 67 Original Principal Cost $20,104,725 Average Acquisition Price 100.043 Includes all tax lot holdings with recognized CUSIP, quantity, acquisition date/price, full analytical calculations at acquisition, market price, and full analytical calculations on reporting date. Average values @ cost are weighted by respective original acquisition values. Includes all tax lot holdings with recognized CUSIP, quantity, and acquisition date/price. All prices have been normalized to par Average acquisition price is weighted by original principal cost. Average life used for principal paydowns, and perpetual securities are assigned a 40 year matunty. Page 5 of 29 CEPENHEIMEk Position Details CITY OF HUTCHINSON report as of09/03/2019 FIXED INCOME REPORT:... Position Details CUSIP Curr Face (oon( Account# Mdy I S&P Coupon Mkt Px ATY Acq Date Tot Adj Cost Mkt Value Unreal G/L Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield TEY Acq Px / Yld Adj Cost Px Accr Int. % Adj Cost 02587CCR9 247 D255019707 4- AMERICAN EXPRESS FSB 2.150% 100.042 Maturity 11/13/2019 1.914%(w) 1.914% 05/09/2017 $247,000 $247,104 $104 CD 1.23% Held FDIC Cert #. 35328 11/1312019 0.19 1.914% 100.000 / 2.150% 100.000 $1,673 0.0% Death Put I Restricted States: TX 17284C3N2 240 D255019707 4- CIT BK SALT LAKE CITY UTAH 2.100% 100.032 Maturity 11/13/2019 1.917%(.) 1.917% 05/09/2017 $240,000 $240,077 $77 CD 1.19% Held FDIC Cert #. 58978 11/1312019 0.19 1.917% 100.000 / 2.100% 100.000 $1,588 0.0% Death Put I Restricted States: N/A 05580AFT6 245 D255019707 4- BMW BANK OF NORTH AMERICA - UT 1.550% 99.892 Maturity 12/16/2019 1.932%() 1.932% 05/09/2017 $245,000 $244,735 ($265) CD 1.22% Held FDIC Cert #. 35141 1211612019 0.28 1.932% 100.000 / 1.550% 100.000 $864 (0.1 %) Death Put I Restricted States: OH 87219RBC7 245 D255019707 4- TBK BK SSE DALLAS TEX 1.600% 99.909 Next Call 12/14/2019 1.933% 1.927% 05/09/2017 $244,994 $244,777 ($217) CD 1.22% Held FDIC Cert #. 23498 1211612019 0.28 Maturity 12/16/2019 1.927% () 1.927% 100.000 / 1.596% 99.998 $891 (0.1%) Death Put I Restricted States: TX 06740KJC2 240 D255019707 -/- BARCLAYS BANK DELAWARE 2.050% 100.052 Maturity 12/17/2019 1.856%() 1.856% 05/09/2017 $239,988 $240,125 $137 CD 1.19% Held FDIC Cert #. 57203 1211712019 0.28 1.856% 100.000 / 2.049% 99.995 $1,078 0.1% Death Put 795450ZT5 245 D255019707 4- SALLIE MAE BK SLT LAKE CITY UT 1.750% 99.948 Maturity 03/09/2020 1.853% () 1.853% 05/09/2017 $244,983 $244,873 ($111) CD 1.22% Held FDIC Cert #. 58177 03r09/2020 0.50 1.853% 100.000 / 1.749% 99.993 $2,126 (0.0•%) Death Put I Restricted States: OH, TX 20772JEK4 560 D255019707 Al/A CONNECTICUT ST 2.534% 100.224 Maturity 04/15/2020 2.161%O 2.161% 11/21/2017 $561,322 $561,254 ($67) Muni 2.79% Held (A1A) 04/15r2020 0.60 2.161% 100.915 / 2.140% 100.236 $5,518 (0, 0%) Material Events I Federally Taxable 57582P2T6 500 D255019707 Aal/AA MASSACHUSETTS ST 2.090% 99.992 Maturity 05/01/2020 2.101%() 2.101% 05/09/2017 $499,995 $499,960 ($35) Muni 2.49% Held (Aall) 05r01/2020 0.64 2.101% 99.999 / 2.090% 99.999 $3,599 (0.0%) Material Events I Federally Taxable 55266CRK4 245 D255019707 -/- ME FINL BK NA CHIC. IL 1.300% 99.849 Maturity 05/11/2020 1.523%() 1.523% 05/09/2017 $245,000 $244,630 ($370) CD 1.22% Held FDIC Cert #. 3628 05'1112020 0.68 1.523% 100.000 / 1.300% 100.000 $218 (0.2%) Death Put I Restricted States: IL Includes all positions with recognized CUSIP. For preferred securities, # of shares is displayed instead of current face value. The (w) in the Yield column indicates which yield value is the Yield to Worst (YTW). Duration figure represents modified duration to worst. ATY/TEY calculations use a Fed Tax rate of 0.00•` o, a Cap Gains Tax rate of 0.005/, a State of N/A, and a State Tax rate of N/A. Page 6 of 29 CEPENHEIMEk Position Details (continued...) CITY OF HUTCHINSON report as of09/03/2019 FIXED INCOME REPORT:... Position Details CUSIP Curr Face (000) Account# Mdy I S&P Coupon Mkt Px ATY Acq Date Tot Adj Cost Mkt Value Unreal G/L Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield TEY Acq Px / Yld Adj Cost Px Accr Int. % Adj Cost 15135KBA8 245 D255019707 4- CENTENNIAL BK CONWAY ARK 1.300% 99.815 Maturity 05/20/2020 1.563%(w) 1.563% 05/09/2017 $245,000 $244,547 ($453) CD 1.22% Held FDIC Cert A 11241 0520/2020 0.70 1.563% 100.000 / 1.300% 100.000 $140 (0,2%) Death Put 88413QBQO 245 D255019707 4- THIRD FED SVGS & LN ASSN OF 1.900% 100.167 Maturity 09/15/2020 1.735%(.) 1.735% 09/15/2017 $245,000 $245,409 $409 CD 1.22% Held FDIC Cert #. 30012 091152020 1.00 1.735% 100.000 / 1.900% 100.000 $2,219 0.2% Death Put I Restricted States: FL,OH,TX 14042RCA7 245 D255019707 4- CAPITAL ONE, NATIONAL 1.400% 99.499 Maturity 09/21/2020 1.885%O 1.885% 05/09/2017 $245,000 $243,773 ($1,227) CD 1.22% Held ASSOCIATION 0912112020 1.02 1.885% 100.000 / 1.400% 100.000 $1,579 (0.551) FDIC Cert #. 4297 Death Put 947547JR7 245 D255019707 4- WEBBANK 2.000% 100.003 Next Call 09/28/2019 1.951%() 1.951% 09/28/2017 $245,000 $245,007 $7 CD 1.22% Held FDIC Cert #. 34404 091282020 0.06 Maturity 09/28/2020 1.997% 1.951 % 100.000 / 2.000% 100.000 $107 0.0% Death Put I Restricted States: AL,GU,OH,TX . 92937CGB8 245 D255019707 -/- WEX BK MIDVALE UTAH 2.000% 100.288 Maturity 10/19/2020 1.739%() 1.739% 10/18/2017 $245,000 $245,706 $706 CD 1.22% Held FDIC Cert #. 34697 1011912020 1.10 1.739% 100.000/2.000% 100.000 $1,879 0.3% Death Put I Restricted States: OH,TX 31938QR89 245 D255019707 4- FIRST BUSINESS BK MADISON WIS 1.400% 99.586 Maturity 11/13/2020 1.751%() 1.751% 05/09/2017 $245,000 $243,986 ($1,014) CD 1.22% Held FDIC Cert #. 15229 11/1312020 1.17 1.751% 100.000 / 1.400% 100.000 $1,081 (0.4%) Death Put 14042OS43 245 D255019707 -/- CAPITAL ONE BK USA NATL ASSN 2.050% 100.388 Maturity 12/29/2020 1.749% () 1.749% 05/09/2017 $244,993 $245,951 $957 CD 1.22% Held FDIC Cert #. 33954 12/29/2020 1.29 1.749% 100.000 / 2.049% 99.997 $936 0.4% Death Put 61747MJ36 245 D255019707 4- MORGAN STANLEY BANK NA 2.500% 101.041 Maturity 02JO112021 1.749%() 1.749% 02JO112018 $245,000 $247,550 $2,550 CD 1.22% Held FDIC Cert #. 32992 0210112021 1.38 1.749% 100.000 / 2.500% 100.000 $587 1.0% Death Put 17312QH77 245 D255019707 -/- CITIBANK NATIONAL ASSOCIATION 2.700% 101.447 Maturity 03/29/2021 1.757%() 1.757% 03/29/2018 $245,000 $248,545 $3,545 CD 1.22% Held FDIC Cert #. 7213 0329/2021 1.51 1.757% 100.000 / 2.700% 100.000 $2,900 1.4% Death Put I Restricted States: N/A Includes all positions with recognized CUSIP. For preferred securities, # of shares is displayed instead of current face value. The (w) in the Yield column indicates which yield value is the Yield to Worst (YTW). Duration figure represents modified duration to worst. ATY/TEY calculations use a Fed Tax rate of 0.00•%, a Cap Gains Tax rate of 0. 00%, a State of N/A, and a State Tax rate of N/A. Page 7 of 29 CEPENHEIMEk Position Details (continued...) CITY OF HUTCHINSON report as of09/03/2019 FIXED INCOME REPORT:... Position Details CUSIP Curr Face (000( Account# Mdy I S&P Coupon Mkt Px ATY Acq Date Tot Adj Cost Mkt Value Unreal G/L Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield TEY Acq Px / Yld Adj Cost Px Accr Int. % Adj Cost 203507BA5 245 D255019707 4- COMMUNITY BK PASADENA CALIF 1.550% 99.681 Maturity 06/15/2021 1.732%(w) 1.732% 05/09/2017 $245,000 $244,218 ($782) CD 1.22% Held FDIC Cert #. 24315 06/152021 1.75 1.732% 100.000 / 1.550% 100.000 $218 (0.3%) Death Put I Restricted States: CA 27113PBEO 245 D255019707 -/- EAST BOSTON SVGS BK MA 1.500% 99.496 Maturity 06/23/2021 1.785%() 1.785% 05/09/2017 $245,000 $243,765 ($1,235) CD 1.22% Held FDIC Cert #. 33510 0623i2021 1.76 1.785% 100.000 / 1.500% 100.000 $745 (0.5%) Death Put 8727OLCJO 245 D255019707 -/- TIAA FSB JACKSONVILLE FLA 2.050% 100.485 Maturity 07/12/2021 1.782%() 1.782% 07/12/2019 $245,000 $246,188 $1,188 CD 1.22% Held FDIC Cert #. 34775 0711212021 1.81 1.782% 100.000 / 2.050% 100.000 $757 0.5% Death Put I Restricted States: OH,TX 3134GTA60 500 D255019707 Aaa/AA+ FEDERAL HOME LOAN MORTGAGE 2.250% 100.035 Next Call 10/15/2019 1.936% () 1.936% 07/15/2019 $500,000 $500,175 $175 Agy 2.49% Held CORPORATION 071152021 0.11 Maturity 07/15/2021 2.230% 1.936% 100.000 / 2.250% 100.000 $1,531 0.0% Callable 3134GBYJ5 500 D255019707 Aaa/AA+ FEDERAL HOME LN MTG CORP 2.000% 100.052 Next Call 10/26/2019 1.636% () 1.636% 07/26/2017 $500,000 $500,260 $260 Agy 2.49% Held 071262021 0.14 Maturity 07/26/2021 1.971% 1.636% 100.000/2.000% 100.000 $1,056 0.1% 02007GEC3 245 D255019707 -/- ALLY BK MIDVALE UTAH 2.950% 102.196 Maturity 08/02/2021 1.774%() 1.774% 08/02/2018 $245,000 $250,380 $5,380 CD 1.22% Held FDIC Cert #. 57803 0810212021 1.85 1.774% 100.000 / 2.950% 100.000 $673 2.2% Death Put 32022MBC1 245 D255019707 4- FIRST FINANCIAL NORTHWES 2.950% 100.044 Next Call 10/16/2019 2.556% () 2.556% 08/16/2018 $245,000 $245,108 $108 CD 1.22% Held FDIC Cert #. 29058 081162021 0.11 Maturity 08/16/2021 2.927% 2.556% 100.000 / 2.950% 100.000 $396 0.0% Death Put I Restricted States: OH,TX, WA 89214PCA5 245 D255019707 -/- TOWNEBANK PORTSMOUTH VA 3.000% 102.442 Maturity 09/27/2021 1.788%() 1.788% 09/26/2018 $245,000 $250,983 $5,983 CD 1.22% Held FDIC Cert #. 35095 09/27/2021 1.97 1.788% 100.000 / 3.000% 100.000 $3,282 2.4% Death Put I Restricted States: NC,VA 3134GASK1 500 D255019707 Aaa/AA+ FEDERAL HOME LOAN MORTGAGE 2.000% 100.084 Next Call 10/28/2019 1.429% () 1.429% 05/09/2017 $500,000 $500,420 $420 Agy 2.49% Held CORPORATION 10282021 0.15 Maturity 10/28/2021 3.342% 1.429% 100.000 / 1.000% 100.000 $3,500 0.1% Multi -Step Coupon 1.0 % until 10/28/2017, 1.5 % until 10/28/2018, 2.0 % until 10/28/2019, 3.0 % until 10/28/2020, then 4.0 % Includes all positions with recognized CUSIP. For preferred securities, # of shares is displayed instead of current face value. The (w) in the Yield column indicates which yield value is the Yield to Worst (YTW). Duration figure represents modified duration to worst. ATY/TEY calculations use a Fed Tax rate of 0.00•/,, a Cap Gains Tax rate of 0. 00%, a State of N/A, and a State Tax rate of N/A. Page 8 of 29 CEPENHEIMEk Position Details (continued...) CITY OF HUTCHINSON report as of09/03/2019 FIXED INCOME REPORT:... Position Details CUSIP Curr Face (000) Account# Mdy I S&P Coupon Mkt Px ATY Acq Date Tot Adj Cost Mkt Value Unreal GIL Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield TEY Acq Px / Yld Adj Cost Px Accr Int. % Adj Cost 34415LAN1 245 D255019707 4- FOCUS BK CHARLESTON MO 2.100% 100.643 Maturity 11/24/2021 1.802%(w) 1.802% 11/24/2017 $245,000 $246,575 $1,575 CD 1.22% Held FDIC Cert #. 1426 1112412021 2.15 1.802% 100.000 / 2.100% 100.000 $1,466 0.6% Death Put 606857Q78 245 D255019707 -/- MIZRAHI TEFAHOT BANK, LTD 2.000% 100.022 Next Call 11/30/2019 1.906%(.) 1.906% 05/09/2017 $245,000 $245,054 $54 CD 1.22% Held FDIC Cert #. 33661 1113012021 0.23 Maturity 11/30/2021 3.318% 1.906% 100.000 / 1.247% 100.000 $81 0.0% Death Put I Foreign I Multi -Step Coupon 1.25% until 11/30/2017, 1.75%until 11/30/2018, 2.0%until 11/30/2019, 3.0% until 11/30/2020, then 4.0% I Restricted States: OH,TX ME 8562845Z3 247 D255019707 -/- STATE BK INDIA NEWYORK N Y 2.350% 101259 Maturity01/26/2022 1.810%() 1.810% 05/09/2017 $246,979 $250,110 $3,131 CD 1.23% Held FDIC Cert #: 33682 0112612022 2.31 1.810% 100.000 / 2.349% 99.991 $652 1.3% Death Put I Foreign I Restricted States: MT,OH,TX 38148PGX9 247 D255019707 -/- GOLDMAN SACHS BK USA NY 2.300% 101.179 Maturity 03/08/2022 1.817%() 1.817% 05/09/2017 $246,982 $249,912 $2,930 CD 1.23% Held FDIC Cert #. 33124 03r0812022 2.40 1.817% 100.000 / 2.299% 99.993 $2,817 1.2% Death Put 87164XPZ3 245 D255019707 -/- SYNCHRONYBANK 2.400% 101.457 Maturity 04/07/2022 1.821%() 1.821% 05/09/2017 $245,000 $248,570 $3,570 CD 1.22% Held FDIC Cert #. 27314 04/07/2022 2.48 1.821% 100.000 / 2.400% 100.000 $2,433 1.5% Death Put I Restricted States: TX 574446GV6 500 D255019707 Aa1/- MARYSVILLE MICH PUB SCHS DIST 2.317% 101.428 Maturity 05/01/2022 1.764%() 1.764% 05/09/2017 $494,230 $507,140 $12,910 Muni 2.49% Held (A21--) 05r01/2022 2.55 1.764% 98.846 / 2.565% 98.846 $3,990 2.6% Federally Taxable 64971 WJ35 500 D255019707 Aal/AAA NEW YORK N Y CITY TRANSITIONAL 1.650% 99.652 Maturity 05/01/2022 1.784% () 1.784% 05/09/2017 $497,125 $498,260 $1,135 Muni 2.49% Held (Aall) FIN AUTH REV 05r01/2022 2.57 1.784% 99.425 / 1.771% 99.425 $2,842 0.2% Material Events I Federally Taxable I Make Whole Call 48125Y21_7 245 D255019707 -/- JP MORGAN CHASE BANK NA 1.500% 99.976 Next Call 11/30/2019 1.596% 1.531% 05/09/2017 $245,000 $244,941 ($59) CD 1.22% Held FDIC Cert #. 628 05r31/2022 0.73 Mid Call 05/31/2020 1.531% () 1.531% 100.000 / 1.243% 100.000 $977 (0.0%) Maturity 05/31/2022 2.669% Death Put I Multi -Step Coupon 1.25% until 05/31/2018, 1.5%until 05/31/2020, 2.0% until 05/31/2021, 3.0% until 11/30/2021, then 5.5% 15721 UCT4 245 D255019707 -/- CFBANK FAIRLAWN OHIO 3.250% 103.967 Maturity 07/19/2022 1.831%() 1.831% 12/19/2018 $245,000 $254,719 $9,719 CD 1.22% Held FDIC Cert #. 28263 07/19/2022 2.74 1.831% 100.000 / 3.250% 100.000 $371 4.0% Death Put I Restricted States: CA,PR,TN,TX Includes all positions with recognized CUSIP. For preferred securities, # of shares is displayed instead of current face value. The (w) in the Yield column indicates which yield value is the Yield to Worst (YTW). Duration figure represents modified duration to worst. ATY/TEY calculations use a Fed Tax rate of 0.00•%, a Cap Gains Tax rate of 0. 00%, a State of N/A, and a State Tax rate of N/A. Page 9 of 29 CEPENHEIMEk Position Details (continued...) CITY OF HUTCHINSON report as of09/03/2019 FIXED INCOME REPORT:... Position Details CUSIP Curr Face (000) Account# Mdy I S&P Coupon Mkt Px ATY Acq Date Tot Adj Cost Mkt Value Unreal G/L Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield TEY Acq Px / Yld Adj Cost Px Accr Int. % Adj Cost 680061HN1 245 D255019707 4- OLD NATL BK EVANSVILLE IND 2.100% 100.360 Next Call 07/26/2020 1.692% (w) 1.692% 07/26/2019 $245,000 $245,882 CD 1.22% Held FDIC Cert #. 3832 0726/2022 0.88 Maturity 07/26/2022 1.972 % 1.692% 100.000 / 2.100% 100.000 $141 0.4% Callable I Death Put I Restricted States: IN,KY 3134GBYN6 1,000 D255019707 Aaa/AA+ FEDERAL HOME LN MTG CORP 2.100% 100.080 Next Call 10/27/2019 1.552%(.) 1.552% 07/27/2017 $1,000,000 $1,000,800 $800 Agy 4.98% Held 07/27/2022 0.15 Maturity07/27/2022 2.342% 1.552% 100.000/2.100% 100.000 $2,158 o.t% Multi -Step Coupon 2.1% until 07/27/2020, 2.25% until 07/27/2021, 2.5% until 01/27/2022, then 3.0% 02587DV47 245 D255019707 -/- AMERICAN EXPRESS CENTURIAN BK 2.350% 101.020 Maturity 08/08/2022 1.989%() 1.989% 08/08/2017 $245,000 $247,499 $2,499 CD 1.22% Held CTF DEP PROGRAM BOOK ENTRY 0810812022 2.81 1.989% 100.000 / 2.350% 100.000 $442 1.0% FDIC Cert #. 27471 Death Put I Restricted States: OH, TX 3134GBB27 500 D255019707 Aaal- FEDERAL HOME LOAN MORTGAGE 2.000% 100.085 Next Call 11/22/2019 1.605% () 1.605% 08/22/2017 $500,000 $500,425 $425 Agy 2.49% Held CORPORATION 08/22/2022 0.22 Maturity08/22/2022 2.384% 1.605% 100.000 / 2.000% 100.000 $333 0.1% Multi -Step Coupon 2.0 % until 08/22/2020, 2.25% until 02/22/2021, 2.5% until 08/22/2021, 2.75 % until 0212212022, then 3.0 % 01748DAY2 245 D255019707 -/- ALLEGIANCE BK TEX HOUSTON 2.200% 101.034 Maturity 11/03/2022 1.863%() 1.863% 11/03/2017 $245,000 $247,533 $2,533 CD 1.22% Held FDIC Cert #. 58629 11/03i2022 3.05 1.863% 100.000 / 2.200% 100.000 $30 1.0% Death Put I Restricted States: TX 254672WU8 245 D255019707 -/- DISCOVER BK 2.450% 101.806 Maturity 11/18/2022 1.866% (w) 1.866% 05/09/2017 $245,000 $249,425 $4,425 CD 1.22% Held FDIC Cert #. 5649 1111812022 3.05 1.866% 100.000 / 2.450% 100.000 $1,809 1.8% Death Put 94986TWE3 245 D255019707 -/- WELLS FARGO BK N A SO 2.250% 100.120 Next Call 11/23/2019 1.683% (w) 1.683% 05/09/2017 $245,000 $245,294 $294 CD 1.22% Held FDIC Cert #. 3511 1123i2022 0.22 Maturity 11/23/2022 3.726% 1.683% 100.000 / 1.650% 100.000 $1,586 0.1% Death Put I Multi -Step Coupon 1.65% until 11/23/2018, 2.25% until 11/23/2020, then 4.75% I Restricted States: N/A 58404DDMO 245 D255019707 -/- MEDALLION BK UTAH 2.850% 103.224 Maturity 03/06/2023 1.898%() 1.898% 03/05/2019 $245,000 $252,899 $7,899 CD 1.22% Held FDIC Cert #. 57449 03'0612023 3.34 1.898% 100.000 / 2.850% 100.000 $0 3.2% Death Put I Restricted States: AL,OH,TX 149159MQ5 245 D255019707 -/- CATHAY BK LOS ANGEL CALIF 3.150% 104.420 Maturity 06/08/2023 1.925%() 1.925% 06/08/2018 $245,000 $255,829 $10,829 CD 1.22% Held FDIC Cert #. 18503 0610812023 3.52 1.925% 100.000 / 3.150% 100.000 $1,882 4.4% Death Put I Restricted States: CA, NY Includes all positions with recognized CUSIP. For preferred securities, # of shares is displayed instead of current face value. The (w) in the Yield column indicates which yield value is the Yield to Worst (YTW). Duration figure represents modified duration to worst. ATY/TEY calculations use a Fed Tax rate of 0.0056, a Cap Gains Tax rate of 0. 00%, a State of N/A, and a State Tax rate of N/A. Page 10 of 29 CEPENHEIMEk Position Details (continued...) CITY OF HUTCHINSON report as of09/03/2019 FIXED INCOME REPORT:... Position Details CUSIP Curr Face (000) Account# Mdy I S&P Coupon Mkt Px ATY Acq Date Tot Adj Cost Mkt Value Unreal GIL Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield TEY Acq Px / Yld Adj Cost Px Accr I nt. % Adj Cost 856425AR4 245 D255019707 4- STATE BANK OF LISMORE LISMORE 3.100% 104.289 Maturity 06/27/2023 1.932%(w) 1.932% 06/27/2018 $245,000 $255,508 $10,508 CD 1.22% Held MN 06/27/2023 3.60 1.932% 100.000 / 3.100% 100.000 $187 4.3% FDIC Cert #. 8190 Death Put 45581 EAX9 245 D255019707 4- INDUSTRIAL& COML BK CHI NA USA 3.300% 105.034 Maturity 06/30/2023 1.932%() 1.932% 08/30/2018 $245,000 $257,333 $12,333 CD 1.22% Held FDIC Cert #. 24387 06/30/2023 3.59 1.932% 100.000 / 3.300% 100.000 $133 5.0% Death Put I Restricted States: NON-USACCOUNTS 35471TFG2 245 D255019707 4- FRANKLIN SYNERGY BANK FRANKLIN 2.200% 100.054 Next Call 11/07/2019 1.886% () 1.886% 08/07/2019 $245,000 $245,132 $132 CD 1.22% Held TN 0810712023 0.17 Maturity 08/07/2023 2.186% 1.886% 100.000 / 2.200% 100.000 $428 0.1% FDIC Cert #. 58714 Callable I Death Put 59833LAF9 245 D255019707 4- MIDWEST INDPT BK MO 3.150% 104.652 Maturity09/18/2023 1.951%() 1.951% 09/17/2018 $245,000 $256,397 $11,397 CD 1.22% Held FDIC Cert #. 25849 0911812023 3.79 1.951% 100.000 / 3.150% 100.000 $402 4.7% Death Put 61760ARSO 245 D255019707 -/- MORGAN STANLEY PVT BK 3.550% 106.109 Maturity 11/08/2023 2.017%() 2.017% 11/08/2018 $245,000 $259,967 $14,967 CD 1.22% Held PURCHASE 1110812023 3.85 2.017% 100.000 / 3.550% 100.000 $2,859 6.1% FDIC Cert #. 34221 Death Put 15118RQF7 245 D255019707 4- CELTIC BK SALT LAKE CITY UTAH 3.500% 100.128 Next Call 09/30/2019 1.628% () 1.628% 11/30/2018 $245,000 $245,314 $314 CD 1.22% Held FDIC Cert #. 57056 11/30/2023 0.07 Maturity 11/30/2023 3.467% 1.628% 100.000 / 3.500% 100.000 $141 0.1% Death Put I Restricted States: AL,OH,TX 59013J5R6 245 D255019707 4- MERRICK BK SOUTH JORDAN UTAH 3.600% 100.473 Next Call 12/07/2019 1.738% () 1.738% 12/07/2018 $245,000 $246,159 $1,159 CD 1.22% Held FDIC Cert #. 34519 12/07/2023 0.25 Maturity 12/07/2023 3.480% 1.738% 100.000 / 3.600% 100.000 $701 0.5% Callable I Death Put I Restricted States: OH,TX 538036CZ5 245 D255019707 4- LIVE OAK BANKING COMPANY 2.500% 102.255 Maturity 12/13/2023 1.950%() 1.950% 12/13/2017 $245,000 $250,525 $5,525 CD 1.22% Held WILMINGTON NC 12/13/2023 4.05 1.950% 100.000 / 2.500% 100.000 $67 2.3% FDIC Cert #. 58665 Death Put 06251AV80 245 D255019707 -/- BANK HAPOALIM B M NEWYORK 3.200% 105.253 Maturity 01/23/2024 1.944%(w) 1.944% 01/23/2019 $245,000 $257,870 $12,870 CD 1.22% Held FDIC Cert #. 33686 0112312024 4.08 1.944% 100.000 / 3.200% 100.000 $945 5.3% Death Put I Foreign I Restricted States: MT,TX Includes all positions with recognized CUSIP. For preferred securities, # of shares is displayed instead of current face value. The (w) in the Yield column indicates which yield value is the Yield to Worst (YTW). Duration figure represents modified duration to worst. ATY/TEY calculations use a Fed Tax rate of 0.00•/,, a Cap Gains Tax rate of 0. 00%, a State of N/A, and a State Tax rate of N/A. Page 11 of 29 CEPENHEIMEk Position Details (continued...) CITY OF HUTCHINSON report as of09/03/2019 FIXED INCOME REPORT:... Position Details CUSIP Curr Face (000) Account# Mdy I S&P Coupon Mkt Px ATY Acq Date Tot Adj Cost Mkt Value Unreal GIL Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield TEY Acq Px / Yld Adj Cost Px Accr Int. % Adj Cost 32117BCS5 245 D255019707 4- FIRST NATIONAL BANK/DAMA 3.250% 100.653 Next Call 02/14/2020 1.772%O 1.772% 02/14/2019 $245,000 $246,600 $1,600 CD 1.22% Held FDIC Cert #. 4256 0211412024 0.44 Maturity 02/14/2024 3.093% 1 772% 100.000 / 3.250% 100.000 $480 0.7% Callable I Death Put 20033AP91 245 D255019707 4- COMENITY CAP BK UTAH 3.100% 104.916 Maturity 02/15/2024 1.946%() 1.946% 02/15/2019 $245,000 $257,044 $12,044 CD 1.22% Held FDIC Cert #. 57570 0211512024 4.15 1.946% 100.000 / 3.100% 100.000 $437 4.9% Death Put I Restricted States: OH,TX 90348JJQ4 245 D255019707 4- UBS BK USA SALT LAKE CITY UT 2.900% 104.187 Maturity 04/03/2024 1.944% () 1.944% 04/03/2019 $245,000 $255,258 $10,258 CD 1.22% Held FDIC Cert #. 57565 0410312024 4.29 1.944% 100.000 / 2.900% 100.000 $39 4.2% Death Put 828373FL9 245 D255019707 4- SILVERGATE BK LA JOLLA CALIF 2.950% 100.113 Next Call 10/08/2019 1.698% () 1.698% 04/08/2019 $245,000 $245,277 $277 CD 1.22% Held FDIC Cert #. 27330 0410812024 0.09 Maturity 04/08/2024 2.924% 1.698% 100.000 / 2.950% 100.000 $554 0.1 % Callable I Death Put 81258PJM6 245 D255019707 -/- SEATTLE BK WASH 2.700% 100.186 Next Call 11/30/2019 1.893% () 1.893% 05/30/2019 $245,000 $245,456 $456 CD 1.22% Held FDIC Cert #. 35139 05/30/2024 0.23 Maturity 05/30/2024 2.657% 1.893% 100.000/2.700% 100.000 $1,776 0.2% Callable I Death Put I Restricted States: OH,TX 225862EC1 245 D255019707 4- CRESCOM BK MYRTLE BEACH S C 2.650% 100.076 Next Call 10/06/2019 1.754% () 1.754% 06/06/2019 $245,000 $245,186 $186 CD 1.22% Held FDIC Cert #. 57135 0610612024 0.09 Maturity 06/06/2024 2.633% 1.754% 100.000 / 2.650% 100.000 $534 0.1 % Callable I Death Put 4804OPESO 245 D255019707 -/- JONESBORO STATE BANK 2.700% 100.226 Next Call 12/07/2019 1.810% (w) 1.810% 06/07/2019 $245,000 $245,554 $554 CD 1.22% Held FDIC Cert #. 9325 0610712024 0.25 Maturity 06/07/2024 2.649% 1.810% 100.000 / 2.700% 100.000 $526 0.2% Callable I Death Put 20056UAV6 500 D255019707 -/AA COMMERCE CALIF CMNTY DEV 3.000% 104.292 Maturity 08/01/2024 2.075%() 2.075% 05/09/2017 $518,495 $521,460 $2,965 Muni 2.49% Held (IA) COMMN SUCCESSOR AGY TAX 0810112024 4.55 2.075% 105.319 / 2.200% 103.699 $1,417 0.6% ALLOCATION Federally Taxable I OID I AGMC Insured 20772,13,19 570 D255019707 Al/A CONNECTICUT ST 2.400% 101.421 Maturity08/15/2024 2.096%() 2.096% 07/11/2019 $568,906 $578,100 $9,194 Muni 2.84% Held (A 1A) 0ali5�2024 4.64 2.096% 99.808 / 2.440% 99.808 $760 1.6% Material Events I Federally Taxable Includes all positions with recognized CUSIP. For preferred securities, # of shares is displayed instead of current face value. The (w) in the Yield column indicates which yield value is the Yield to Worst (YTW). Duration figure represents modified duration to worst. ATY/TEY calculations use a Fed Tax rate of 0.0056, a Cap Gains Tax rate of 0. 00%, a State of AMA, and a State Tax rate of N/A. Page 12 of 29 CEPENHEIMEk Position Details (continued...) CITY OF HUTCHINSON report as of09/03/2019 FIXED INCOME REPORT:... Position Details CUSIP Curr Face (000) Account# Mdy I S&P Coupon Mkt Px ATY Acq Date Tot Adj Cost Mkt Value Unreal GIL Asset % Port Held (Underlying) Issue Description Maturity Duration Px To Date Yield TEY Acq Px / Yld Adj Cost Px Accr Int. % Adj Cost 81423LCQ3 245 D255019707 4- SECURITY FED BK AIKEN S C 2.000% 100.022 Next Call 11/23/2019 1.898% (w) 1.898% OS/23/2019 $245,000 $245,054 $54 CD 1.22% Held FDIC Cert #. 31100 0823i2024 0.22 Maturity 08/23/2024 1.995 % 1.898% 100.000 / 2.000% 100.000 $175 0.0% Callable I Death Put 64971QJ38 500 D255019707 Aal/AAA NEW YORK N Y CITY TRANSITIONAL 2.600% 102.509 Next Call 11/01/2022 1.778% () 1.778% 05/09/2017 $486,750 $512,545 $25,795 Muni 2.49% Held (Aav-) FIN AUTH REV 1110112024 3.00 Maturity 11/01/2024 2.084% 1 778% 97.350 / 2.998% 97.350 $4,478 5.3% Material Events I Federally Taxable I Callable 40434ASB6 240 D255019707 -/- HSBC BANK USA, NATIONAL 2.250% 100.053 Next Call 03/11/2020 2.145% () 2.145% 05/09/2017 $240,000 $240,127 $127 CD 1.19% Held ASSOCIATION 03111/2025 0.50 Maturity03/11/2025 4.033% 2.145% 100.000 / 2.249% 100.000 $2,633 0.1% FDIC Cert #. 578gO Callable I Death Put I Multi -Step Coupon 2.25% until 03111/2020, then 4.25 % 33742CAN7 245 D255019707 -/- FI RST U NITED BANK AND TRUST 2.250% 100230 Next Call 02/28/2020 1.771%() 1.771% 08/30/2019 $245,000 $245,564 $564 CD 1.22% Held FDIC Cert #. 4239 0829/2025 0.48 Maturity 08/29/2025 2.209% 1 771 % 100.000 / 2.250% 100.000 $91 0.2% Callable I Death Put I Restricted States: OK,TX Includes all positions with recognized CUSIP. For preferred securities, # of shares is displayed instead of current face value. The (w) in the Yield column indicates which yield value is the Yield to Worst (YTW). Duration figure represents modified duration to worst. ATY/TEY calculations use a Fed Tax rate of 0.0056, a Cap Gains Tax rate of 0. 00%, a State of N/A, and a State Tax rate of N/A. Page 13 of 29 r'.PPENHEIMEkCoupon Cash Flow CITY OF HUTCHINSON report as of0910312019 FIXED INCOME REPORT:... Sep'19 Oct'19 Nov'19 Dec'l9 Jan'20 Feb'20 Mar20 Apr20 May'20 Jun'20 Jul'20 Aug'20 Sep'20 Total %Tot Agency - $5,000 121,125 $5,000 $7,500 121,125 $5,000 $64,750 14.1% Agency Pass-Thru I = _ = = _ =I - - Asset -Backed CD $32,367 $18,036 $39,163 $26,251 $19,520 $24,426 $30,941 $18,426 $33,959 $20,710 $18,521 $23,877 $520I $306,718 67.0% CMO I Corporate - - - - - - Muni :Fed Tax $7,095 $21,642 $14,340 $7,095 $21,642 $14,340 $86,155 18.8% Muni: Tax -Exempt - - - - - - - - Muni: Subj AMT Pfd: Fed Tax Pfd: Tax -Exempt Pfd: Cap Gains Treasury Total $32,367 $30,131 $60,806 $26,251 $40,645 $43,766 $30,941 $33,021 $55,601 $20,710 $39,646 $43,217 $520 $457,624100.0% Fed Tax -Exempt - - - - - - - - - - - - - - Fed Taxable $32,367 $30,131 $60,806 $26,251 $40,645 $43,766 $30,941 $33,021 $55,601 $20,710 $39,646 $43,217 $520 $457,624100.0% Subj to Cap Gains - - - - - - - - - - - - - - - Subj to AMT 0 Fed Tax -Exempt 0 Fed Taxable 0 Subj to Cap Gains 0 Suhj to AMT $54,000 $45,000 $36,000 $27,000 $18,000 $9,000 $0 Sep'l9 Oct'19 Nov'l9 Dec'l9 Jan'20 Feb'20 Mar'20 ApF20 May'20 Jun'20 Jul'20 Aug'20 Sep'20 Includes all positions with recognized CUSIP, quantity, market price and full analytical calculations on reporting date. Includes coupon cash flows for the next 12 months, from 0910312019 to 0910212020. Totals are the sum of rounded displayed values. The cash flows displayed are only estimates. Your actual interest and principal payments may be higher or lower than these estimates. Page 14 of 29 OWENHEIMEk Maturity & Duration - All CITY OF HUTCHINSON report asof09/03/2019 FIXED INCOME REPORT:... 40% 20 % ,,monsoon .y1 Cy' cl°' "�O ,�1 ,�'L "�"� "b "y "C "1 "0 3oi by b1 by b3 bb b5 bC R1 b0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 b)X J Q 50% - 40% 20 % o I I I 0/ Displays represent % of market principal for all positions with a recognized CUSIP, quantity, current market price and available analytical calculations. Average life used for principal paydowns, and perpetual securities are assigned a 40 year maturity. Duration figure represents modified duration to worst. Year Curr Face % Mkt Value % Range Curr Face % Mkt Value % 2019 $1,217,000 6.06% $1,216,818 5.99°/ 00-01 $10,172,000 50.62% $10,180,869 50.13% 2020 $3,265,000 16.25% $3,265,095 16.08% 01-02 $2,940,000 14.63% $2,956,454 14.56% 2021 $3,950,000 19.66% $3,969,223 19.55% 02-03 $2,974,000 14.80% $3,015,330 14.85% 2022 $4,954,000 24.65% $4,990,510 24.57% 03-04 $1,960,000 9.75% $2,034,892 10.02% 2023 $2,450,000 12.19% $2,525,063 12.43% 04-05 $2,050,000 10.20% $2,120,257 10.44% 2024 $3,775,000 18.78% $3,855,403 18.98% 05-06 2025 $485,000 2.41% $485,691 2.39°/ 06-07 2026 07-08 2027 08-09 2028 09-10 2029 10-11 2030 11-12 2031 12-13 2032 I 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 2044 25-26 2045 26-27 2046 27-28 2047 28-29 2048 29-30 2049+ 30+ Perpetual Page 15 of 29 (7)PPENHEIMEMaturity & Call -Adjusted Maturity - All CITY OF HUTCHINSON report as of0910312019 FIXED INCOME REPORT:... 40 i 20 a 0% ' • 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 bOXti Q 40 20 a I I I ai 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 kOXz Q Displays represent % of market principal for all positions with a recognized CUSIP, quantity, current market price, and available analytical calculations. Call Adjusted Maturity displays the next call date for callable bonds and the maturity date for nor" callable bonds. Average life used for principal paydowns, and perpetual securities are assigned a 40 year maturity Year Curr Face k Mkt Value k Year Curr Face k Mkt Value k 2019 $1,217,000 6.06% $1,216,818 5.911 2019 $7,402,000 36.83% $7,407,433 36.48% 2020 $3,265,000 16.25% $3,265,095 16.08% 2020 $3,995,000 19.88% $3,998,260 19.69% 2021 $3,950,000 19.66% $3,969,223 19.55% 2021 $1,960,000 9.75% $1,978,206 9.74% 2022 $4,954,000 24.65% $4,990,510 24.57% 2022 $3,219,000 16.02% $3,265,713 16.08% 2023 $2,450,000 12.19% $2,525,063 12.43% 2023 $1,715,000 8.53% $1,788,458 8.81% 2024 $3,775,000 18.78% $3,855,403 18.98% 2024 $1,805,000 8.98% $1,869,732 9.21% 2025 $485,000 2.41% $485,691 2.39% 2025 2026 2026 2027 2027 2028 2028 2029 2029 2030 2030 2031 2031 2032 2032 2033 2033 2034 2034 2035 2035 2036 2036 2037 2037 2038 2038 2039 2039 2040 2040 2041 2041 2042 2042 2043 2043 2044 2044 2045 2045 2046 2046 2047 2047 2048 2048 2049+ 2049+ Perpetual I Perpetual Page 19 of 29 �0 �\ HRA NUTC:t INSOW HOUSIM; AN$ RIDEVELOPMENT AUTHOP.i7Y Regular Board Meeting Tuesday, August 20, 2019, 7:00 AM Minutes 1. CALL TO ORDER: Chair Renee Lynn Johnson Kotlarz called the meeting to order. Members Present: Gary Forcier, Steve Jensen and Nikki Willemssen. Staff Present: Jean Ward and Judy Flemming. 2. CONSIDERATION OF MINUTES OF THE REGULAR BOARD MEETING ON JULY 16, 2019 Nikki Willemssen moved to approve the Minutes of the regular board meeting as written. Steve Jensen seconded and the motion carried unanimously. 3. FINANCIAL REPORTS a. Nikki Willemssen moved to approve City Center General Fund payments of $27,277.43 for checks 9050 to 9056. Steve Jensen seconded and the motion carried unanimous. b. Steve Jensen moved to approve City Center July 31, 2019 financial statements. Nikki Willemssen seconded and the motion carried unanimously. c. Nikki Willemssen moved to approve the Park Towers Operating Account payments of $58,341.76 for checks 14707 to 14740. Steve Jensen seconded and the motion carried unanimous. d. Nikki Willemssen moved to approve the June 30, 2019 Park Towers financial statements. Steve Jensen seconded and the motion carried unanimously. 4. PARK TOWERS UPDATE a. Occupancy Report: Full; FYI Demographic Statistic Report; and Jean Ward reviewed with the Board the Move -in Summary Report. b. Jean Ward reviewed the Park Towers' August Newsletter with the Board. c. Nikki Willemssen moved to approve to Award the Contract to Solid Rock Construction for $84,372.00 to apply Seal Coat to Park Towers Stucco. Steve Jensen seconded and the motion carried unanimous. d. Jean Ward reviewed the 2020 Park Towers Draft Budget with the Board. e. Jean Ward reviewed the Capital Needs Assessment Draft Narrative with the Board. 5. 7:30 A.M. RAD INFORMATIONAL TELEPHONE CONFERENCE CALL WITH NICOLE WICKLIFFE, RECAP ADVISORS REVIEWING RAD FINANCIAL REPORTS Nicole Wickliffe reviewed with the HRA Board the RAD Financial Reports. 6. UPDATE REGARDING NEW CONSTRUCTION 1 ST TIME HOMEBUYER INITIATIVE Jean Ward updated the Board on the progress of the initiative. 7. CONSIDERATION OF HUTCHINSON HRA CELLPHONE POLICY Steve Jensen moved to approve the Hutchinson HRA Cellphone Policy. Gary Forcier seconded and the motion carried unanimous. August 20, 2019 Minutes Page 1 of 2 8. CONSIDERATION OF REVISED HRA BYLAWS Gary Forcier moved to approve the Hutchinson HRA Bylaws. Steve Jensen seconded and the motion carried unanimous. 9. CONSIDERATION OF REVISED HRA VISION STATEMENT AND MISSION STATEMENT Gary Forcier moved to approve the revised Hutchinson HRA Vision Statement and Mission Statement. Steve Jensen seconded and the motion carried unanimous. 10. UPDATE SCDP REHAB SOUTHDALE APARTMENTS Judy Flemming updated the Board on the project timeline. 11. CONSIDERATION OF APPROVAL CITY GRANT APPLICATION(S) a. Gary Forcier moved to approve the 1037 Sherwood Street SE Streamline Grant. Steve Jensen seconded and the motion carried unanimous. 12. CONSIDERATION OF OUT OF STATE TRAVEL FOR EXECUTIVE DIRECTOR TO ATTEND NATIONAL NAHRO CONFERENCE IN SAN ANTONIO TEXAS OCTOBER 9Tx TO 12TH. Gary Forcier moved to approve the out of state travel for Executive Director to attend National NAHRO conference in San Antonio Texas October 9 h to the 12t'. Steve Jensen seconded and the motion carried unanimously. 13. FINANCE AND COMMERCE ARTICLE REGARDING AFFORDABLE HOUSING FYI 14. ADJOURNMENT There being no other business, Chair Renee Lynn Johnson Kotlarz declared the meeting adjourned. Recorded by Jean Ward, HRA Executive Director T Gary Forc' r, Secretary/Treasurer August 20, 2019 Minutes Page 2 of 2 Hutchinson Properties Orded To Be Cleared By City I Enforcement Number Address Parcel Category Date Filed Sta EEN19-0222 456 Prospect St NE 31-117-29-10-0470 EEN19-0223 246 College Ave NE 31-117-29-07-1100 EEN19-0224 1220 SUNSET ST SW 12-116-30-02-0450 Total Records: 3 Enforcement.Category = Tall Grass/Noxious Weeds AND Enforcement.CodeOfficer = John Paulson AND Enforcement.DateFiled Between 8/19/2019 12:00:00 AM AND 9/16/2019 11:59:59 PM Population: All Records Status Descriptions Abated by City = Ordered by City to be cleared using Contractor Closed = Removed by Owner Tall Grass/Noxious Weed 08/29/2019 Ab Tall Grass/Noxious Weed 08/29/2019 Ab Tall Grass/Noxious Weed 09/10/2019 Re