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cp09-08-20G Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350-2522 Phone 320-587-5151, Fax 320-234-4240 CITY OF HUTCHINSON MCLEOD COUNTY HUTCHINSON, MINNESOTA NOTICE OF A SPECIAL CITY COUNCIL WORKSHOP Tuesday, September 8, 2020 4:00 p.m. Council Chambers — Hutchinson City Center Notice is hereby given that the Hutchinson City Council has called a special workshop meeting for Tuesday, September 8, 2020, at 4:00 p.m. in the Council Chambers at the Hutchinson City Center, I I I Hassan Street SE, Hutchinson, Minnesota for the following purpose: • REVIEW OF 2021 PRELIMINARY BUDGET AND TAX LEVY DATED: September 3, 2020 POSTED: City Center Matthew Jaunich, inistrator HUTCHINSON CITY COUNCIL MEETING AGENDA TUESDAY, SEPTEMBER 8, 2020 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 — New Journey UCC (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 religiouslspiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY 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 ifhe will be acceptingpublic comments during the agenda item ifnot apublic hearing. Ifyou have a question, concern or comment, please ask to e recognized by the mayor— state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of August 25, 2020 (b) Budget Workshop Meeting of August 25, 2020 CONSENT AGENDA (The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed) 7_ APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of Resolution No. 15207 — Resolution to Sell at Auction Surplus Property (2004 Ford Explorer) (b) Consideration for Approval of Purchasing Replacement Portable Radios and Headsets (c) Claims, Appropriations and Contract Payments PUBLIC HEARINGS — 6:00 P.M. - NONE COMMUNICATIONS RE UESTS AND PETITIONS (T hepurpose oj this portion oj the agenda is to provide the oun— with information necessary to craft wise policy. Includes items like monthly or annual reports and communications from other entities.) 8. DISCUSSION ON NEW PROPOSED RATE STRUCTURE FOR HUTCHINSON UTILITIES COMMISSION CITY COUNCIL AGENDA September 8, 2020 UNFINISHED BUSINESS NEW BUSINESS 9. APPROVE/DENY RESOLUTION NO. 15206 — RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR SOUTH CENTRAL DRAINAGE ARE IMPROVEMENTS PHASE 2 PROJECT (LETTING NO. 3, PROJECT NO. 20-3) 10. APPROVE/DENY PURCHASE OF "SLAPSHOT" SCULPTURE GOVERNANCE (T epurpose o t is portion of the agenda is to deal with organizational development issues, includingpolicies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 11. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) Hutchinson EDA Board Minutes from July 22, 2020 1VHSCELLANEOUS 12. STAFF UPDATES 13. COUNCIL/MAYOR UPDATE ADJOURNMENT 2 HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, AUGUST 25, 2020 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) CALL MEETING TO ORDER — 5:30 P.M. Mayor Gary Forcier called the meeting to order. Members present were Steve Cook, Chad Czmowski, Mary Christensen and Dave Sebesta. Members were present via electronic means. Others present in the Council Chambers were Matt Jaunich, City Administrator, Marc Sebora, City Attorney and Kent Exner, City Engineer (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Christensen, second by Czmowski, to approve agenda as presented. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously 2. INVOCATION — The invocation was dispensed due to lack of a pastor. (The invocation is a voluntary expression oftheprivate citizen, to andfor the City Council, and is not intended to affiliate the City Council with, or express the City Council's preference for, any religiouslspiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY (a) Resolution No. 15202 — Resolution Accepting $100.00 Donation from Judy & Michael Bragelman to the Hutchinson Police Department towards the Law Enforcement Memorial Park Fund Motion by Czmowski, second by Forcier, to approve Resolution No. 15202. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. PUBLIC COMMENTS (T is is an opportunity or members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor ifhe will be acceptingpublic comments during the agenda item ifnot apublic hearing. Ifyou have a question, concern or comment, please ask to be recognized by the mayor— state your name and address for the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All comments are appreciated, but please refrain from personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of August 11, 2020 Motion by Cook, second by Sebesta, to approve minutes as presented. Roll call vote was taken: Cook — aye, Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. CONSENT AGENDA (The items listedjor consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff member requests an item to be removed. Traditionally items are not discussed) CITY CO UNCIL MINUTES August 25, 2020 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of 2020 CARES Act Grant with McLeod County (b) Consideration for Approval of Resolution No. 15205 — Resolution Adopting Findings of Fact and Reasons for Approval of a Site Plan Located at 225 Hwy 7 West (c) Consideration for Approval of Improvement Project Change Orders 1. Change Order No. 6 — Letting No. 2, Project No. 19-02 (South Grade Road Corridor Improvements) 2. Change Order No. 1 — Letting No. 4, Project No. 20-04 (Airport Area Utility Improvements) (d) Claims, Appropriations and Contract Payments Item 7(b) was pulled for separate action. Matt Jaunich, City Administrator, noted that a revised Resolution has been distributed as there was a typographical error in the Resolution that was in the Council packet. Motion by Czmowski, second by Christensen, to approve consent agenda with the exception of Item 7(b). Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. Item 7(b) had further discussion. Council Member Cook noted that the plans indicate that there is going to be a fence installed abutting the residential areas that is proposed at six feet and by ordinance he thought it was to be eight feet. Dan Jochum, Planning Director, clarified that the fence is to be eight feet in height and it will be. Council Member Cook also spoke about the loading area located on the northeast side and voiced some concerns with the amount of truck traffic backing up to the loading area. Mr. Jochum noted that trucks will be making deliveries approximately once or twice a week to unload in that area and a few smaller trucks on a weekly basis that deliver food items. Mr. Jochum noted that the typographical error was an address that has been corrected. Motion by Cook, second by Sebesta, to approve Item 7(b). Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. - NONE purpose o t is portion o t e agen a is to provi e the Councilwith information necessary to craft wise policy. ides items like monthly or annual reports and communications from other entities.) UNFINISHED BUSINESS NEW BUSINESS APPROVE/DENY PROPOSAL FROM CONTEGRITY GROUP FOR CONSTRUCTION MANAGEMENT SERVICES FOR NEW POLICE FACILITY 2 CITY CO UNCIL MINUTES August 25, 2020 Matt Jaunich, City Administrator, spoke before the Council. Mr. Jaunich noted that, as has been discussed, it is being proposed to hire construction management services for the new police facility project. The role of the construction manager is to assist the City from project inception, including cost estimating and analysis during the design phase, through actual construction and final warranty closeout. The construction manager will work closely with the architect/engineer and City staff. Staff conducted five interviews with construction management firms from throughout Minnesota and it was the consensus of the panel was to recommend that Contegrity Group be hired as the construction manager. The Contegrity Group comes highly recommended by the McLeod County Board having worked on their jail project and their current efforts on the government center. Council Member Cook spoke about the proposed fees and many are fixed, however the construction management fee is estimated. He proposed that fee having a not to exceed limit. Mr. Jaunich explained that the construction management fee is based on estimated construction costs and since that could fluctuate it may be difficult to set a not to exceed figure. Motion by Cook, second by Forcier, to approve proposal from The Contegrity Group for construction management services for the next phase of design/build on the new police station. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 9. APPROVE/DENY PROPOSAL FROM WOLD ARCHITECTS FOR NEXT PHASE OF DESIGN ON NEW POLICE FACILITY Matt Jaunich, City Administrator, noted that staff is ready to move forward with design and construction efforts on the new police station. Therefore, staff is recommending that the City Council continue to work with the Wold Architect as the architect/engineer on the project. The proposal from Wold on providing architectural and engineering services from design through construction is $417,000 plus reimbursable expenses estimated to be around $15,000. Motion by Christensen, second by Czmowski, to approve proposal from Wold Architects for the next phase of design on new police station. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 10. APPROVE/DENY RESOLUTION 15204 — ADOPTING CITY OF HUTCHINSON' S LOGO, TAGLINE AND USAGE STANDARDS Matt Jaunich, City Administrator, explained that back in August of 2019, the City Council hired Chandlerthinks to conduct a marketing and branding study for the City. Work began in September 2019 and recently concluded with their final report that was received by the City in late July of 2020. Mr. Jaunich provided a short presentation on the proposed new logo, tagline and usage standards. The proposed official tagline for the City is "A City on Purpose". The Resolution includes a graphic of the logo and the usage standards. Council Members Christensen and Cook were on the marketing/branding committee and were involved in the development/selection of the logo, tagline and usage standards. Motion by Cook, second by Czmowski, to approve Resolution No. 15204. Roll call vote was CITY CO UNCIL MINUTES August 25, 2020 taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. 11. APPROVE/DENY SETTING COUNCIL WORKSHOP FOR SEPTEMBER 22, 2020, AT 4:30 P.M. FOR ANNUAL UPDATE FROM COALITION OF GREATER MINNESOTA CITIES Motion by Czmowski, second by Sebesta, to approve setting Council workshop for September 22, 2020, at 4:30 p.m. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. GOVERNANCE (T epurpose o t is portion of the agenda is to deal with organizational development issues, includingpolicies, performances, and other matters that manage the logistics of the organization. May include monitoring reports, policy development and governance process items) 12. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) Hutchinson Utilities Commission Minutes from June 24, 2020 b) Hutchinson Housing & Redevelopment Authority Annual Meeting Minutes from August 20, 2019 (c) Hutchinson Housing & Redevelopment Authority Board Meeting Minutes from July 21, 2020 �d) Tall Grass Enforcement Report for June/July 2020 e) Planning Commission Minutes from June 16, 2020 (f) City of Hutchinson Financial Report and Investment Report for July 2020 MISCELLANEOUS 13. STAFF UPDATES 14. COUNCIL/MAYOR UPDATE Steve Cook — Council Member Cook commented that South Grade Road is looking very nice and the start to the side streets are looking good as well. He asked that when work begins on the streets on the east side of the Rec Center, that ash trees are removed as part of the diversification program. Council Member Cook also mentioned that gravel had been brought down to the South Grade Road bridge where people fish to level off the area by the stairs. He noted that that was much appreciated and asked if perhaps more gravel could be placed in other spots in the area. He suggested that perhaps a plan be put together that could be implemented next year. Matt Jaunich noted he could speak with the parks department on this matter as it was identified in the parks master plan to incorporate more fishing opportunities throughout the city. Council Member commented that the resurfacing of the Hutchinson Mall parking lot looks great and he suggested that perhaps a thank you letter be sent to them. Mary Christensen — Council Member Christensen commented that many individuals have approached her about the City considering putting in a splash pad and she would like staff to review the possibility and the costs associated with it. Chad Czmowski — Council Member Czmowski also commented on the South Grade Road work that has been completed and what a great improvement it is. He also inquired whether or not any pedestrian crossing lights will be installed on the new crosswalk that was put in on Hwy 15 South at Echo Drive as the site lines in the area are poor. Mr. Jaunich noted that he does not believe that pedestrian lights are in the plan, but that perhaps it can be addressed or requested with MnDOT. Council Member Czmowski mentioned that he also liked the idea of a splash pad and would suggest looking at spaces on the north side of the river. Gary Forcier — Mayor Forcier commented that the improvements to the Rec Center look good. He also reiterated that a splash pad should be researched and considered. .19 CITY CO UNCIL MINUTES August 25, 2020 ADJOURNMENT Motion by Czmowski, second by Sebesta, to adjourn at 6:30 p.m. Roll call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator 5 HUTCHINSON CITY COUNCIL REVIEW OF 2021 PRELIMINARY CAPITAL IMPROVEMENT PLAN MINUTES TUESDAY, AUGUST 25, 2020, 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, Dave Sebesta and Chad Czmowski. Others present were Matt Jaunich, City Administrator and other city directors. REVIEW OF 2021 PRELIMINARY CAPITAL IMPROVEMENT PLAN 2. 2021 Preliminary Capital Improvement Plan Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich reviewed the purpose of a capital improvement plan and the planning that goes into it. A CIP is a document that realistically projects city needs, outlines means by which those needs can be met and provides prioritization of those needs. The planning process provides city staff and Council with a framework to make decisions regarding current and future city needs considering the city's financial capability. The CIP commits the City to a long term capital plan that ensures that expenditures can be made to add or replace capital items when needed, without significant fluctuations in the property tax levy. Capital planning enables the City to maintain a stable property tax rate, prevent peaks and valleys in its debt retirement program and establish and thereafter improve its credit rating. The CIP establishes a comprehensive development program that is used to maximize outside revenue sources and effectively plan for the growth and maintenance of the city's infrastructure. The plan should be used as a goal, priority and vision - setting tool. Mr. Jaunich also reviewed how the CIP Plan is built which includes individual City Council goals and collective Council goals; citizens/business/user feedback to elected officials (needs, wants, desires of the community); City staff long-term maintenance and replacement schedules; and state/federal mandates. Mr. Jaunich began an overview of the five year capital plan document. The proposed plan is estimated at $57.17 million. The Plan is approximately $2.1 million larger than last year's five- year plan. The plan has an average CIP cost of $11.4 million. 2021's $14.95 million CIP cost currently accounts for approximately 30-35% of all budgeted expenses. For comparison purposes, this year's (2020) general fund budget is $13.45 million. This plan includes costs for a new police station in 2021/2022. Mr. Jaunich reviewed that the plan is divided into infrastructure at $18.65 million; Park & Rec at $3.74 million; Enterprise Funds at $16.86 million; Public Works at $5.92 million; Public Safety at $10.89 million and General Government at $1.11 million. The make-up of the CIP includes: New Debt: $18.48 million (amount of money that we need to borrow to pay for capital projects); Aid/Grants (state aid, federal/state grants, bridge funds, donations): $5.58 million; Enterprise Funds (Creekside, Liquor Store, Refuse, Water, Sewer, Wastewater, Stormwater): $17.59 million; Taxes (money from our tax levy that gets designated towards capital projects): $11.30 million; Special Assessments (direct costs that will be assigned to property owners adjacent to projects): $4.09 million; Special Funds/Reserves (rural fire department, cooperative agreements): $129,392. CIP funding sources for general fund projects include the General Fund from the Facility Improvements (Capital Projects Fund and $750,000 of LGA is dedicated annually); Fleet & Equipment (Equipment Replacement Fund, General Fund — annual transfer of $275,000, current funding is not adequate for "small" and "heavy" fleet needs, additional funding source of about $327,000/year is needed); and Other Capital Needs — capital expenditures that are not facility or fleet related (department budgets — tax levy, grants or donations, and other city funding). Enterprise fund projects are covered by cash flow from operations driven by user revenue and cash reserves — annually budget approximately 75% of annual net cash flow for capital expenditures. Debt service payments are funded by revenue from operations. Infrastructure improvements debt are covered by GO special assessment improvements bonds, special assessment, municipal state aid for streets, grants, enterprise fund contributions and other city funding from Capital Projects and Community Improvement. Capital project costs and funding is reviewed by the Resource Allocation Committee. The Capital Projects Fund funding sources come from LGA, bonding dollars and grants. The use of these funds are for general fund capital improvements included in the Facility Plan, miscellaneous infrastructure maintenance such as trails, sidewalks, parking lots, street lights, sealcoating, etc., and other projects approved by the City Council. The 2019 year-end unreserved cash balance is $983,219 from this fund. The Community Improvement Fund funding sources come from retired debt service funds and donations. The use of these funds are for City Council approved projects and Public Arts Commission & other public arts projects. The 2019 year-end unreserved cash balance is $2,256,033 from this fund. The Public Sites Fund funding sources come from park dedication fees, donations, grants and rent on agricultural land. The use of these funds are for parkland improvements, tree development, arts, and City Council approved projects. The 2019 year-end unreserved cash balance is $167,225 from this fund. Mr. Jaunich noted where the proposed 2021 CIP monies are going to. They include $2.75 million for infrastructure (Harrington Street SW, Merrill Street SW, Clinton Avenue SW, Church Street SW, Lyndale Avenue SW, LED light retrofits and other miscellaneous streets); $1.16 million for Park & Rec (vehicles, East Rink roof, playgrounds); $5.82 million for Enterprise Funds (Creekside facility/equipment, water/sewer/wastewater/storm water improvements and equipment); $525,100 for Public Works (interior shop painting, cemetery and street vehicles/equipment); $4.51 million for Public Safety (new police station, police/fire vehicles, radio replacements); $177,675 for General Government (Dakota Trail and general facility/IT upgrades). Mr. Jaunich then reviewed where the proposed 2021 CIP monies are coming from. They include $3.98 million from New Debt (amount of money that we are planning to borrow to pay for capital projects next year); $89,600 from Aid/Grants; $5.91 million from Enterprise Funds; $4.37 million from Taxes (money from our tax levy that is helping to pay for capital projects next year); and $516,920 from Special Assessments (direct costs that will be assigned to property owners adjacent to projects). Mr. Jaunich reviewed the five components of the Plan which include the fleet committee, facilities committee, Creekside, Resource Allocation Committee and General. Mr. Jaunich provided an overview of fleet. With regard to light duty fleet there are currently 89 pieces of light duty equipment such as cars, pickups, skid loaders, etc. Currently $275,000 of CIP funds are allocated annually for light duty fleet, funded by the general fund. The unreserved fund balance at the end of 2019 acquisitions is $706,000. In 2020, seven vehicles/equipment have been recommended for replacement at an estimated gross cost of $228,700. With regard to heavy duty fleet, the City currently has 21 pieces of heavy duty equipment which are made up of fire apparatuses, snow equipment, frontend loaders, etc. In 2020, a Zamboni and wheel loader have been recommended for replacement at an estimated gross cost of $348,891, less a $60,000 donation received for the Zamboni. The City took a significant step in meeting its demand of this in 2016 with bonding for several large pieces of equipment with a 5-year debt expiring February 1, 2022 and potential capacity to add new debt in 2021 with first principal repayment February 1, 2023. The light duty and heavy duty fleet program is still currently not sustainable with this plan. The current plan has an annual shortage of roughly $327,000. The Fleet Committee is looking at bonding/borrowing for future heavy duty fleet and looking at making policy changes in 2020 with more focus on the Vehicle Condition Index and less focus on expected life, although service is a major component of the VCI. Mr. Jaunich provided an update on the facility committee. Overall, the facility planning concept/funding model with a facility manager has been working well. Construction costs were increasing, but staff believes we are entering a competitive bidding season. A small project building repair fund has been established with $50,000 per year set aside to address smaller facility items such as lighting upgrades, small roof projects, tuck pointing/joint repair, etc. Facility Committee staff continue to assess condition ratings and develop a project list based on needs. Mr. Jaunich reviewed projects that have been completed in 2020 or are near completion. Those projects include a new roof at the recreation center, City Center ADA sidewalk improvements and access controls and COVID-19 related improvements. Mr. Jaunich then reviewed a draft project list for 2021-2025. Mr. Jaunich also reviewed the 5 Year CIP for both the compost and refuse funds which is just over $3.7 million. The Compost Fund is about $600,000 cheaper than the previous year's five year CIP. The walking floor trailers have been removed and the screener replacement was placed in 2020. No major changes to the Refuse Fund from last year's 5-Year CIP. There is currently an analysis being completed by a consultant that will help lead discussions for future expenses and the CIP. This analysis will look at a potentially a new way to run the system and a review of the source separated organic material curbside program. In addition, staff is planning to renew the garbage contract in October. Public Works projects included in the 2021 plan are: Pavement Management Program which includes Clinton Avenue SW and Lyndale Avenue SW (Harrington to Merrill), Merrill Street SW/Church Street/Harrington Street SW (South Grade Road to Linden), and Keith Street (South Grade Road to Neal Avenue); LED Streetlight Retrofits; South Central Storm work; Southfork Storm Pond; Preliminary Treatment Redesign & EQ System at Wastewater; additional upgrades to water and wastewater facilities; facility painting and vehicle and equipment replacements. Mr. Jaunich then noted Public Works CIP highlights slated for 2021-2025. Mr. Jaunich reviewed project funding limitations/concerns. These include $1.9 million bonding target limitations; dedicated street sealcoating funding at $125,000/year; infrastructure maintenance needs at $275,000/year; construction costs; utility funds capacity; municipal state & federal aid utilization; environmental & infrastructure grant possibilities. Other items to keep in consideration are long-term funding needs, funding plan for the new police station, funding of infrastructure improvements, the Compost fund study; funding of water/wastewater/storm sewer and the impact on rate study; LGA allocation between the general fund and CIP and other projects/Council needs. Mr. Jaunich also provided an updated 2020 financial forecast and an update on the current budget situation. The April projected deficit of $212,000 has turned into a projected surplus of approximately $157,000 due to approximately $150,000 of CARES funding allocated to the general fund, Liquor transfer expected to be approximately $100,000 higher, building permit fees expected to be approximately $26,000 higher, some recreational programming came back online increasing revenue projections, and reduced employment costs by delaying hirings and eliminating seasonal hires. Current revenues are expected to be under budget by about $658,000 but will be offset with expenditures being under budget by about $815,000. So far sales tax revenue hasn't really been affected, but it is still early and a lot can happen between now and December 31st. Mr. Jaunich noted that the state situation is likely to have more of an impact than the City's local one and the potential impact on LGA later this year and more likely next year. 3. Adjournment Motion by Christensen, second by Sebesta, to adjourn the workshop at 5:10 p.m. Roll call vote: Cook — aye; Christensen — aye; Sebesta — aye; Czmowski — aye; Forcier — aye. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator HUTCHINSON CITY COUNCIL Ci=y�f Request for Board Action 79 =-W Agenda Item: Approve disposal of surplus equipment by auction Department: PW/Engineering LICENSE SECTION Meeting Date: 9/8/2020 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: Public Works has one piece of surplus equipment: ENGR-817-SUV 2004 Ford Explorer SUV, VIN: 1 FMZU72K44UB53817 Lic: 904-424 This vehicle was replaced in 2020. The intent is to offer this unit for sale at an upcoming Fleet & Government Services auction, or other auction conducted by Fahey. Fahey will be provided with information concerning the equipments' condition. Proceeds from any sale of the vehicle would be deposited into the Vehicle -Equipment Replacement Fund. BOARD ACTION REQUESTED: Declare ENGR-817-SUV as surplus equipment for sale at auction, approval of Resolution Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 0.00 Total City Cost: $ 0.00 Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 15207 RESOLUTION TO SELL AT AUCTION SURPLUSPROPERTY WHEREAS, the Hutchinson Public Works Department has accumulated surplus property; and WHEREAS, the Hutchinson City Code provides pursuant, to Section 91, Subdivision 3, Paragraph C, for the sale at auction of surplus City property; and WHEREAS, the Public Works Department has determined that it is in possession of surplus property. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: That the following surplus City property be sold at auction and proceeds from the sale be credited to the appropriate account: 1. ENGR-817-SUV 2004 Ford Explorer SUV VIN: 1 FMZU72K44UB53817 Adopted by the City Council this 8 h day of September, 2020. Gary Forcier, Mayor ATTEST: Matt Jaunich, City Administrator HUTCHINSON CITY COUNCIL Ci=y�f Request for Board Action 79 =-W Agenda Item: Capital Improvement Project : Purchase Portable Radios and Headsets. Department: Police LICENSE SECTION Meeting Date: 9/8/2020 Application Complete N/A Contact: Thomas Gifferson Agenda Item Type: Presenter: Thomas Gifferson Reviewed by Staff ✓❑ Consent Agenda Time Requested (Minutes): 2 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: See attached BOARD ACTION REQUESTED: Authorization to purchase replacement portable radios and accessories as part of CIP. Fiscal Impact: $ 198,401.00 Funding Source: CIP FTE Impact: Budget Change: Yes Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 198,401.00 Total City Cost: $ 198,401.00 Funding Source: CIP Remaining Cost: $ 0.00 Funding Source: This is a request to authorize the replacement of the Police Department's current portable radios (Motorola XTS2500) with an upgraded version (Motorola APX6000). The current Motorola portables are no longer supported by Motorola. This project has been included in the City's Capital Improvement Plan. The current radios in use were purchased originally through grant funds from the State of Minnesota when the ARMER project was originally established in this region. At that time there were two forms of encryption available to us. ADP encryption which is a Motorola product and was included in the radio at no cost. The second available encryption was DES encryption. The cost to include that encryption was approximately $750.00 per radio. The decision at the time was to not purchase additional encryption to keep the cost of the project down. However, because of that decision we did not, nor did any radio in McLeod County, have access to State of MN encrypted resources. This poses a problem when we assist other state agencies and more importantly when other agencies from within the state come to assist us when it may be needed. Therefore, it makes sense to include those resources now, to improve our interoperability with other agencies and jurisdictions within the state. The second part of this project is to purchase communication headsets for the tactical team that are compatible with the new portable radios. This request is to purchase the headsets from Atlantic Signal. The cost of the Atlantic Signal headsets is approximately twice the cost of the headsets from Advantage Police Supply. However, they have greater functionality in regards to safety and communication than those from Advantage. Therefore the request is for the more expensive option. The two quotes are the closest we could get to comparing like units, even though the Atlantic Signal is a superior product. This project was originally budgeted at a cost of 160,000.00; however, some recent information regarding the State of Minnesota's encrypted resources has become available that no longer makes the projected cost feasible. When this project was originally budgeted, the plan was to purchase APX 4000 radios with ADP and DES encryption. It has recently come to light that the State of MN is planning on moving their encrypted resources from DES encryption to AES encryption, a far more robust form of encryption. Unfortunately the APX 4000 does not have the capability of being programmed with both DES encryption (the current state standard) and AES encryption (the future state standard). Therefore, it is necessary to purchase the APX6000 to enable both forms of encryption to be programmed. The State does not have a firm date for the transition to AES but an estimate of 3yrs was given. The additional $40,000.00 cost of the project is a direct result of having to purchase the more expensive radio to ensure we neither buy a radio that is obsolete in three years or buy a radio that we may not be able to use to its full potential for at least 3 years. The total cost of the project as quoted is $196,401.20 with an approximate additional $2,000.00 in set- up fees from our vendor. CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 8/20/20 - 9/8/20 Check Date ------------------ 08/20/2020 Check ------------ 212146 Vendor Name --------------------------------------------------------- LOGIS Description -------------------------------------------------------------------------------- APPLSUP-GIS BASE & NETWORK SERVICES Amount ------------------------- 9,427.55 08/20/2020 212147 CITIZENS BANK & TRUST CO HUTCHCOBBLE TIF NOTE PAYMENT 1,329.53 08/28/2020 EFT1285 EFTPS Payroll 8/9/20 - 8/22/20 66,362.64 08/28/2020 EFT1286 Child Support Payroll 8/9/20 - 8/22/20 577.29 08/28/2020 EFT1287 MN Dept of Revenue Payroll 8/9/20 - 8/22/20 12,757.35 08/28/2020 EFT1288 Provident Life Payroll 8/9/20 - 8/22/20 612.34 08/28/2020 EFT1289 PERA Payroll 8/9/20 - 8/22/20 53,313.12 08/28/2020 EFT1290 TASC-Flex Payroll 8/9/20 - 8/22/20 1,491.70 08/28/2020 EFT1291 TASC-H S A Payroll 8/9/20 - 8/22/20 13,574.13 08/28/2020 EFT1292 ICMA Payroll 8/9/20 - 8/22/20 3,308.52 08/28/2020 EFT1293 VOYA Payroll 8/9/20 - 8/22/20 330.00 08/28/2020 EFT1294 MNDCP Payroll 8/9/20 - 8/22/20 350.00 08/28/2020 212148 MNPEA Payroll 8/9/20 - 8/22/20 585.00 08/28/2020 212149 Unum Life Insurance Payroll 8/9/20 - 8/22/20 1,254.05 08/28/2020 212150 LELS Union Payroll 8/9/20 - 8/22/20 310.00 08/28/2020 212151 HART Payroll 8/9/20 - 8/22/20 602.54 08/27/2020 212152 JAY MALONE MOTORS PURCHASE OF (2) 2020 DODGE RAMS 1500- PARKS 37,966.00 09/08/2020 212153 A.M. LEONARD INC REPAIR& MAINT SUPPLIES -STREETS 600.28 09/08/2020 212154 ACE HARDWARE- 1315 REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 618.80 09/08/2020 212155 ACE HARDWARE - 1790 STRIPING PAINT & AIR DUSTERS- FIRE DEPT 38.95 09/08/2020 212156 ALL AM ERICA PRESSURE WASHER MFG EQUIPMENT PARTS- MULTIPLE DEPTS 269.50 09/08/2020 212157 ALLIED ELECTRONICS INC DC CONTROL, FUSE, SURGE SUPPRESSOR, FAN - WWTP 1,787.13 09/08/2020 212158 AMERICAN BOTTLING CO COST OF GOODS SOLD - LIQUOR HUTCH 105.60 09/08/2020 212159 AMERIPRIDE SERVICES 8/24 CLEANING SERVICES - LIQUOR HUTCH 159.18 09/08/2020 212160 ANDERSON CHEMICAL COMPANY SODIUM HYDROSOFITE -WATER DEPT 2,103.59 09/08/2020 212161 APX CONSTRUCTION GROUP, LLC PAY APP #4 THRU 7/31/20 - REC CENTER 220,393.63 09/08/2020 212162 ARTHUR J GALLAGHER RISK INSURANCE BROKER FEE 10/1- 12/31-20 3,500.00 09/08/2020 212163 ARTISAN BEER COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 384.92 09/08/2020 212164 AUTOVALUE- GLENCOE EQUIPMENT PARTS - HATS 44.56 09/08/2020 212165 BCA BACKGROUND CHECK FOR NEW EE - MV 33.25 09/08/2020 212166 BELLBOY CORP COST OF GOODS SOLD - LIQUOR HUTCH 1,644.30 09/08/2020 212167 BERNICK'S COST OF GOODS SOLD - LIQUOR HUTCH 311.56 09/08/2020 212168 BLUE VALLEY SOD PEAT DELIVERED - COMPOST 5,400.00 09/08/2020 212169 BRAUN INTERTEC CORP TH 15 CONSULTING FEES: THRU 8/21/20 1,170.50 09/08/2020 212170 BREAKTHRU BEVERAGE COST OF GOODS SOLD - LIQUOR HUTCH 18,506.63 09/08/2020 212171 C & L DISTRIBUTING COST OF GOODS SOLD - LIQUOR HUTCH 78,523.28 09/08/2020 212172 CANNON RIVER WINERY COST OF GOODS SOLD - LIQUOR HUTCH 570.00 09/08/2020 212173 CARAHSOFT TECHNOLOGY CORP LINKEDIN LEARNING - IT 2,070.00 09/08/2020 212174 CARD SERVICES MISC SUPPLIES - POLICE 7.94 09/08/2020 212175 CARLOS CREEK WINERY COST OF GOODS SOLD - LIQUOR HUTCH 297.00 09/08/2020 212176 CENTRAL HYDRAULICS REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 103.57 09/08/2020 212177 CENTRAL MCGOWAN MISC OPERATING SUPPLIES - HATS 733.91 09/08/2020 212178 CHEMISOLV CORP FERRIC CHLORIDE -WWTP 5,134.50 09/08/2020 212179 CINTAS CORPORATION CLEANING SUPPLIES & SERVICE - MULTIPLE DEPTS 200.67 09/08/2020 212180 CITY OF SOUTH HAVEN WATERLESS FIRE HYDRANT HEADS - WATER 100.00 09/08/2020 212181 CLAY COYOTE - MORGAN BAUM SIGN & AWNING GRANT - EDA 1,000.00 09/08/2020 212182 COBBLESTONE HOTEL & SUITES PRO -RATED REFUND FOR LIQUOR LICENSE 212.50 09/08/2020 212183 COKER COMPOSTING AND CONSULTING GROWTH OPTIONS STUDY - REFUSE 3,770.00 09/08/2020 212184 CORNER POST EROSION CONTROL DE -THATCH & INTER -SEED BOULEVARD - STREETS 200.00 09/08/2020 212185 CREEKSIDE SOILS BITCON, COFFEE MULCH - PARKS 387.14 09/08/2020 212186 CROW RIVER OFFICIALS ASSN UMPIRE FEES - REC 720.00 09/08/2020 212187 CROW RIVER PRESS INC SR NEWSLETTERS -SR CENTER 93.41 09/08/2020 212188 CROW RIVER WINERY COST OF GOODS SOLD - LIQUOR HUTCH 1,066.80 09/08/2020 212189 CRYSTEEL TRUCK EQUIP RETROFITKIT- STREETS 179.00 09/08/2020 212190 DELL MARKETING L.P. DELL MONITOR - IT 269.99 09/08/2020 212191 DPC INDUSTRIES INC HYDROFLUOROSILICIC ACID - WATER 1,518.00 09/08/2020 212192 DYNA SYSTEMS SILICONE, WASHERS -WWTP 197.00 09/08/2020 212193 E2 ELECTRICAL SERVICES INC CONVEYOR REPAIR- REFUSE 265.81 09/08/2020 212194 ECOLAB PEST ELIMINATION PEST CONTROL SERVICES - MULTIPLE DEPTS 232.10 09/08/2020 212195 ELK RIVER COMPOSTING INC JUNE COMPOSTING 3,520.00 09/08/2020 212196 EMERGENCY RESPONSE SOLUTIONS LLC ADDITIONAL COVID SUPPLIES - FIRE DEPT 1,222.23 09/08/2020 212197 FASTENAL COMPANY REPAIR&MAINTSUPPLIES- MULTIPLEDEPTS 550.21 09/08/2020 212198 FINANCE & COMMERCE 1_31320-03 BIDS - ENGINEERING 297.06 09/08/2020 1212199 FIRST CLASS BUILDERS UB REFUND 17.69 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 8/20/20 - 9/8/20 Check Date ------------------ 09/08/2020 Check ------------ 212200 Vendor Name --------------------------------------------------------- FLAGSHIP RECREATION Description -------------------------------------------------------------------------------- TRASH RECEPTACLES FOR MAIN STREET PROJ Amount ------------------------- 17,667.00 09/08/2020 212201 FORBES AUTO VALUE TIRE REPAIR -WATER 40.00 09/08/2020 212202 FORESTEDGE WINERY COST OF GOODS SOLD - LIQUOR HUTCH 378.00 09/08/2020 212203 GALLS LLC UNIFORM SUPPLIES - FIRE DEPT 130.54 09/08/2020 212204 GITCH GEAR LLC COST OF GOODS SOLD - LIQUOR HUTCH 408.00 09/08/2020 212205 GRAINGER VARIOUS PARTS & SUPPLIES - WWTP 1,667.05 09/08/2020 212206 GREEN EARTH LAWN CARE INC RESIDENTIAL LAWN MOWING -STORM WATER 195.00 09/08/2020 212207 HACH COMPANY COLORIMETER - WATER 1,601.91 09/08/2020 212208 HANSON & VASEK CONSTRUCTION 2020 CONCRETE REPAIRS -STREETS 6,770.00 09/08/2020 212209 HARPER BROOMS BRUSHES, HANDLES- HATS 494.50 09/08/2020 212210 HAWKINS INC SODIUM HYDROXIDE -WATER 3,889.25 09/08/2020 212211 HENDERSON, TYLER UB REFUND 21.78 09/08/2020 212212 HILLYARD / HUTCHINSON REPAIR, CLEANING & MAINT SUPPLIES - MULTIPLE DEPTS 1,331.84 09/08/2020 212213 HJERPE CONTRACTING VARIOUS EMERGENCY REPAIRS- MULTIPLE DEPTS 20,184.50 09/08/2020 212214 HUTCH AUTO BODY 2009 F350: REPAIR BOX- PARKS 2,542.44 09/08/2020 212215 HUTCHINSON CHAMBER & TOURISM JULY 2020 LODGING TAX 7,488.75 09/08/2020 212216 HUTCHINSON LEADER 24 MONTH SUBSCRIPTION - FIRE 105.00 09/08/2020 212217 HUTCHINSON WHOLESALE #1550 REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 382.80 09/08/2020 212218 HUTCHINSON WHOLESALE #1551 EQUIPMENT PARTS -COMPOST 127.36 09/08/2020 212219 HUTCHINSON WHOLESALE #1552 GOAL POST SUPPLIES - PARKS 172.48 09/08/2020 212220 HUTCHINSON WHOLESALE #2520 COVID-19 SUPPLIES HAND SANITIZER SPRAY -FIRE DEPT 17.97 09/08/2020 212221 HYDRO KLEAN LLC PREP FOR SEWER REPAIR, CLEAN & TELEVISE - WWTP 3,260.00 09/08/2020 212222 J & B PALLET, LLC PALLETS - COMPOST 4,984.00 09/08/2020 212223 JEFFERSON FIRE & SAFETY INC FIRE GEAR SUSPENDERS - FIRE 442.80 09/08/2020 212224 JOE'S SPORT SHOP TROPHIES - REC 120.00 09/08/2020 212225 JOHNSON BROTHERS LIQUOR CO. COST OF GOODS SOLD - LIQUOR HUTCH 43,470.76 09/08/2020 212226 JOHNSON CONTROLS FIRE PROTECTION LP 9/1 - 11/30-20 ALARM & DETECTION MONITORING - EV CTR 202.34 09/08/2020 212227 KAHL, DENNIS RESIDENTIAL LAWN MOWING -STORM WATER 1,030.00 09/08/2020 212228 KELLER, MATTHEW REIMB: SAFETY GLASSES- WWTP 100.00 09/08/2020 212229 KERI'S CLEANING & HANDYMAN SERVICES AUGUST CLEANING - LIQUOR HUTCH 1,507.95 09/08/2020 212230 KOHLS SWEEPING SERVICE RESTRIPED PARKING LOTS, GARAGE LINES & CURB - FIRE DEPT 295.00 09/08/2020 212231 KONRAD MATERIAL SALES, LLC 5 GALLON TACK - STREETS 615.00 09/08/2020 212232 KOSTERS, MICHAEL REIMB: PREHIRE PHYSICAL -COMPOST 31.00 09/08/2020 212233 KRUSE, SUSAN UB REFUND 83.70 09/08/2020 212234 KYLE A WENDLING COST SHARE WELL SEALING - WATER 500.00 09/08/2020 212235 L & P SUPPLY CO REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 131.60 09/08/2020 212236 LANO EQUIPMENT OF NORWOOD BOBCAT REPAIR- CEMETERY 2,539.34 09/08/2020 212237 LAUER,TAMMY FACADE IMPROVEMENT GRANT -EDA 2,483.07 09/08/2020 212238 LEAGUE OF MN CITIES -INS TRUST 2020/2021 INSURANCE RENEWAL 15,621.00 09/08/2020 212239 LOCHER BROTHERS INC COST OF GOODS SOLD - LIQUOR HUTCH 51,567.80 09/08/2020 212240 LYNDSY HART REFUND FOR WATERPARK PURCHASE 42.00 09/08/2020 212241 MACQUEEN EQUIP LLC HOSE CLAMPS - STORM WATER 186.27 09/08/2020 212242 MADDEN GALANTER HANSEN LLP JULY LEGAL SERVICES - POLICE 153.00 09/08/2020 212243 MARSHALL CONCRETE PRODUCTS MCP GLOSS CURE/SEAL- PARKS 179.95 09/08/2020 212244 MCLEOD COUNTY HHW APPLIANCE RECYCLING - WWTP 10.00 09/08/2020 212245 MENARDS HUTCHINSON REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 833.89 09/08/2020 212246 MHSRC/RANGE EVO/PIT REFRESHER HYBRID - POLICE 1,100.00 09/08/2020 212247 MIDWEST FIRE EQUIPMENT NEW 3000 GALLON FIRE TANKER TRUCK 10,534.00 09/08/2020 212248 MIDWEST PLAYSCAPES INC. SAFETY SURFACING - PARKS 3,700.00 09/08/2020 212249 MILLNER HERITAGE VINEYARD & WINERY COST OF GOODS SOLD - LIQUOR HUTCH 663.60 09/08/2020 212250 MINI BIFF RENTALS: MULTIPLE LOCATIONS 607.43 09/08/2020 212251 MINNESOTA CHIEFS OF POLICE ENTRY TESTS - POLICE 436.00 09/08/2020 212252 MINNESOTA DEPT OF HEALTH Q3 2020 STATE FEE - WATER CONNECTIONS 11,766.00 09/08/2020 212253 MINNESOTA DEPT OF LABOR & INDUSTRY INSPECTIONS- MULTIPLE DEPTS 300.00 09/08/2020 212254 MINNESOTA VALLEY TESTING LAB LAB SAMPLE TESTING - MULTIPLEDEPTS 765.60 09/08/2020 212255 MYGUY INC. TOTAL POWER CLEANER - HATS 586.00 09/08/2020 212256 NORTH CENTRAL UTILITY SPRING BRAKE- HATS 146.49 09/08/2020 212257 NORTHERN BUSINESS PRODUCTS OFFICE SUPPLIES - POLICE 736.09 09/08/2020 212258 NORTHERN SAFETY & INDUSTRIAL SAFETY TAGS - HATS 42.78 09/08/2020 212259 NORTHERN STATES SUPPLY INC WASHERS, PAINT, LADDER, CONNECTORS - HATS 314.86 09/08/2020 212260 O'REILLYAUTO PARTS MUSCLE MAGIC- PARKS 36.99 09/08/2020 212261 OK TIRE STORE TIRES FOR CREEKSIDE LOADER 5,625.60 09/08/2020 212262 OLS RESTORATION, INC 2020 SIGNAL -STREETLIGHT PAINTING 8,825.00 09/08/2020 212263 PAUSTIS WINE COMPANY COST OF GOODS SOLD - LIQUOR HUTCH 617.08 CHECK REGISTER A FOR CITY OF HUTCHINSON CHECK DATE FROM 8/20/20 - 9/8/20 Check Date ------------------ 09/08/2020 Check ------------ 212264 Vendor Name --------------------------------------------------------- PECE RECYCLING LTC Description -------------------------------------------------------------------------------- PALLETS-COMPOST Amount ------------------------- 1,258.75 09/08/2020 212265 PENMAC STAFFING SERVICES, INC. CREEKSIDE TEMP STAFFING 1,144.95 09/08/2020 212266 PEOPLEREADY INC CREEKSIDE TEMP STAFFING 3,276.84 09/08/2020 212267 PETERSON, PAT REFUND: SHELTER RENTAL @ RIVERSIDE PARK 45.00 09/08/2020 212268 PHILLIPS WINE & SPIRITS COST OF GOODS SOLD - LIQUOR HUTCH 26,060.68 09/08/2020 212269 PIONEER MANUFACTURING CO BRITE STRIPE - PARKS 2,962.50 09/08/2020 212270 PLUNKETTS PEST CONTROL SEPT 2020 - AUG 2021 PEST CONTROL SERVICE - LIQUOR HUTCH 709.05 09/08/2020 212271 POSTMASTER POSTAGE - UB BILLS 1,540.00 09/08/2020 212272 PREMIUM WATERS 5 GALLONS WATER - PARKS 30.99 09/08/2020 212273 PRIEVE LAWN CARE ROUND UP APPLICATION - LIQUOR HUTCH 80.16 09/08/2020 212274 PRO AUTO MN INC. MULTIPLE VEHICLE OIL CHANGES 71.72 09/08/2020 212275 QT PETROLEUM ON DEMAND LLC AIRPORT FUEL CONTROLLER REPAIR PARTS 508.32 09/08/2020 212276 QUALITY FORKLIFT SALES & SERV INC MULTIPLE REPAIRS -COMPOST 3,003.28 09/08/2020 212277 R & R EXCAVATING L4P20-04 PAY #1: AIRPORT AREA UTILITY EXT - STREETS 44,509.26 09/08/2020 212278 R & R EXCAVATING & RELIAFUNDS ESCR 1_21319-02 PAY #6: S GRADE RD CORR IMPRV - STREETS 109,849.18 09/08/2020 212279 RAMY TURF PRODUCTS TURF MIX, PRO -SEEDER -STREETS 1,269.00 09/08/2020 212280 RED BULL DISTRIBUTION COMPANY, INC. COST OF GOODS SOLD - LIQUOR HUTCH 85.00 09/08/2020 212281 REINER ENTERPRISES INC CREEKSIDE FREIGHT MULTIPLE LOCATIONS 7,368.61 09/08/2020 212282 REVIER WELDING COMPOST SCREENER REPAIRS 3,158.56 09/08/2020 212283 RUNNING'S SUPPLY REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS 1,090.89 09/08/2020 212284 SAM'S TIRE SERVICE NEW TIRES FOR COMPOST LOADER 933.20 09/08/2020 212285 SHERWIN WILLIAMS PAINT- REC 26.94 09/08/2020 212286 SHORT-ELLIOT-HENDRICKSON, INC CONSULTING SERVICES FOR VARIOUS PROJ THROUGH 7/31/20 5,981.07 09/08/2020 212287 SITEONE LANDSCAPE SUPPLY HERBICIDE - PARKS 889.51 09/08/2020 212288 SJF MATERIAL HANDLING INC RACKS, WIRE DECK- WWTP 1,110.35 09/08/2020 212289 SMITH, TYLER & RACHEL UB REFUND 2.88 09/08/2020 212290 SOUTHERN WINE & SPIRITS OF MN COST OF GOODS SOLD - LIQUOR HUTCH 30,953.75 09/08/2020 212291 SOUTHWEST CORRIDOR TRANS COALITION 2020 DUES: KENT EXNER 100.00 09/08/2020 212292 STANDARD PRINTING-N-MAILING POSTAGE - MULTIPLE DEPTS 898.45 09/08/2020 212293 STAPLES ADVANTAGE OFFICE SUPPLIES - MULTIPLEDEPTS 461.35 09/08/2020 212294 STREICH TRUCKING CREEKSIDE FREIGHT MULTIPLE LOCATIONS 5,840.00 09/08/2020 212295 STREICHER'S PANTS -POLICE 639.96 09/08/2020 212296 SUBWAY DIRECTOR'S PICNIC 791.70 09/08/2020 212297 SUN LIFE FINANCIAL AUGUST DENTALCLAIMES &ADMIN FEES 10,081.60 09/08/2020 212298 TASC OCTOBER FLEX & HSA ADMIN FEES 1,497.33 09/08/2020 212299 TEK MECHANICAL SCHEDULE 80 PVC MIP ADAPTER 1 1/2" - WWTP 14.90 09/08/2020 212300 THOMPSON, MITCHELL REIMB: MEAL FOR TRAINING 16.56 09/08/2020 212301 TRAVIS, GENORA & GARY UB REFUND 33.00 09/08/2020 212302 UNITED FARMERS COOP FUEL- HATS 9,859.87 09/08/2020 212303 VALLEY SALES OF HUTCHINSON 2014 EQUINOX: INSTALL ACCESSORIES - POLICE 121.47 09/08/2020 212304 VIK, BRANDON REIMB: TRAINING EXPENSES 854.49 09/08/2020 212305 VIKING BEER COST OF GOODS SOLD - LIQUOR HUTCH 21,371.00 09/08/2020 212306 VIKING COCA COLA COST OF GOODS SOLD - LIQUOR HUTCH 483.65 09/08/2020 212307 VIKING SIGNS & GRAPHICS INC NUMBER DECALS - STREETS 60.00 09/08/2020 212308 VINOCOPIA INC COST OF GOODS SOLD - LIQUOR HUTCH 1,705.16 09/08/2020 212309 WASTE MANAGEMENT OF WI -MN 8/1- 8/15-20 RESIDENTIAL REFUSE 6,524.69 09/08/2020 212310 WATERVILLE FOOD & ICE COST OF GOODS SOLD - LIQUOR HUTCH 1,293.93 09/08/2020 212311 WELCOME NEIGHBOR NEW RESIDENT VISITS, PRINTING OF CLIENTS - LIQUOR HUTCH 126.80 09/08/2020 212312 WENINGER, ABBEY REFUND: RECEPTION CANCELLED DUE TO COVID - EV CTR 1,425.00 09/08/2020 212313 WEST CENTRAL SHREDDING 3 CONSOLES -VARIOUS DEPTS 25.00 09/08/2020 212314 WILSON'S NURSERY INC TREES -STREETS 1,021.35 09/08/2020 212315 WINE COMPANY, THE COST OF GOODS SOLD - LIQUOR HUTCH 5,430.30 09/08/2020 212316 WINE MERCHANTS INC COST OF GOODS SOLD - LIQUOR HUTCH 3,211.52 09/08/2020 212317 WM MUELLER& SONS 3/8"FINE ASPHALT 6.5%-STREETS 864.00 09/08/2020 212318 YESSIKA GONZALEZ REFUND: CANCELLED DUE TO COVID-19 - REC 30.00 09/08/2020 212319 ZIEGLER INC FILTERS,ELEMENTS-COMPOSTSCREENER 350.96 Total - Check Disbursements: I$ 1,130,548.59 HUTCHINSON CITY COUNCIL Ci=y�f Request for Board Action 79 =-W Agenda Item: Discussion on the New Proposed Rate Structure for Hutchinson Utilities Department: Administration LICENSE SECTION Meeting Date: 9/8/2020 Application Complete N/A Contact: Matt Jaunich Agenda Item Type: Presenter: Jeremy Carter, HUC Reviewed by Staff ✓❑ Communications, Requests Time Requested (Minutes): 15 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: On September 2, the City received a notice from Hutchinson Utilities in accordance with Section 11.04 of our Charter regarding a proposed rate structure change. Included with this Board Action form is a letter from General Manger Jeremy Carter highlighting the proposed changes along with some additional information regarding what is being proposed. Jeremy will be at the meeting on Tuesday to discuss the proposed changes and answer any questions you may have on what is being proposed. Per Section 11.04 of the City Charter, the City Council has up to 30 days to veto the rate changes with a 4/5 vote. There is no requirement for the Council to formally accept the rate changes. Noting that, following the presentation and an opportunity for you to ask some questions, I'll be asking the Council for a direction on whether or not you would like to formally approve or reject the proposed new rate structure. If there is a desire to take any action, that would be placed on the September 22 agenda. BOARD ACTION REQUESTED: No action needed. Discussion only. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: pO T Hutchinson Utilities Commission September 2, 2020 Honorable Mayor Forcier and Council Members 111 Hassan Street SE Hutchinson, MN 55350 Dear City Council, 225 Michigan Street SE Hutchinson, MN 55350-1905 320-587-4746 1 Fax 320-587-4721 www.hutchinsonutilities.com Putting All of Our Energy into Serving You The purpose of this letter is to provide notice to the City of Hutchinson that on Wednesday August 261", 2020 the Hutchinson Utilities Commission (HUC) approved resolution 20-01 changing the rate structure for another 2 years on all customer classes within the Electric & Natural Gas Divisions. Pursuant to the City of Hutchinson Charter section 11.04, such veto power shall be exercised, if at all, within 30 days after the council has received notice of any proposed change in charge and rate. To recap, on January 171", 2018 Utility Financial Solutions, LLC presented the final results of the Cost of Service (COS) study to the HUC and the City Council. The results showed HUC was currently and continues to be in good financial position, appropriately forecasts operational and capital expenses, and that the financial policies adopted by HUC met benchmarks utilized by Utility Financial Solutions, LLC as part of the COS study. Based on the COS study results appropriate rate design structures and various +/- bandwidth and glide paths were approved with a conscious effort on minimizing the impact to customers. The continued direction of HUC is to stay relatively revenue neutral in the rate design. This means based on the on -going rate structure designs HUC will not be generating additional revenue. The collection of revenue between customer classifications will change slightly but not the overall revenue collected. Secondly, HUC wants to continue to align the various cost components of the utilities more closely with the monthly revenue components collected on a customer's bill. Finally, HUC's direction is to continue to follow a 6-year glide path for the Electric division and a 9-year glide path for the Natural Gas division. The purpose of these glide paths is to achieve moving the various customer classes within each division towards more equitability between classes. The first 2-year rate design restructure approved back on May 30th, 2018 accommodated the first 2 years down the respective glide paths. The adoption of resolution 20-01 continues the second phase or years 3 & 4 of the rate restructure down the respective glide paths. At the conclusion of the 2nd phase of rate restructures another COS study is anticipated to be completed. Based on the next COS study HUC will determine if the current glide paths are still the continued course of action or if adjustments need to be made. HUC will continue to adjust the rates starting October 1 st of each year when energy consumption in both divisions is typically low to minimize the impact to customers. In conclusion, please find enclosed the adopted resolution and some additional materials for review. I will plan to attend the Council meeting on September 81" to answer any questions from the council. However, please feel free to reach out to me directly if there are questions ahead of time. Sincerely, Jeremy J. Carter General Manager Hutchinson Utilities Commission Resolution No. 20-01 A RESOLUTION CHANGING THE HUTCHINSON UTILITIES COMMISSION RATE STRUCTURE FOR 2020 & 2021 FOR ELECTRIC AND NATURAL GAS DIVISIONS Be It Resolved by the Hutchinson Utilities Commission: That the current Electric and Natural Gas Rates paid by customers of the Hutchinson Utilities Commission be changed as follows: Electric Division Table - Current 2020 2021 Residential Monthly Customer Charge $ 11.70 $ 14.30 $ 16.90 Energy Charge (per KWH) $ 0.08290 $ 0.08070 $ 0.07852 Small General _ Monthly Customer Charge $ 15.80 $ 18.70 $ 21.60 Energy Charge Block 1(0-2000 KWH) $ 0.09052 $ 0.09023 $ 0.08994 Block 2 (Excess) $ 0.08314 $ 0.08196 $ 0.08078 Large General Monthly Customer Charge $ 53.80 $ 80.70 $ 107.60 Energy Charge (per KWH) $ 0.06637 $ 0.06210 $ 0.05783 Demand Charge (per KW) $ 8.00 $ 9.00 $ 10.00 Large Industrial Monthly Customer Charge $ 150.40 $ 225.60 $ 300.80 Energy Charge (per KWH) $ 0.05680 $ 0.05477 $ 0.05274 Demand Charge (per KW) $ 9.00 $ 10.00 $ 11.00 Natural Gas Table - Residential Monthly Customer Charge Gas Commodity Charge ($/MCF) Commercial Monthly Customer Charge Gas Commodity Charge ($/MCF) Current 2020 2021 $ 11.30 $ 13.70 $ 16.10 $ 8.2447 $ 7.8240 $ 7.4040 $ 48.10 $ 56.40 $ 64.70 $ 8.5282 $ 8.2482 $ 7.9682 Large Industrial Monthly Customer Charge $ 145.00 $ 215.00 $ 285.00 Gas Commodity Charge ($/MCF) $ 8.0390 $ 7.7950 $ 7.5450 Demand Charge (Max Daily MCF per month) $ 9.0000 $ 8.5000 $ 8.0000 AND BE IT FURTHER RESOLVED, that the General Manager of the Hutchinson Utilities Commission, Jeremy J Carter, shall provide notice of these rate changes to the City Council of the City of Hutchinson. Adopted by the Hutchinson Utilities Commission this �(-O — day of U 2020 Hutchinson Utilities Commission )P000lp / Don Martinez, President Attest: oe Robert Wendorff, Secreta ELECTRIC RATES Residential Monthly Charge Energy Charge (per Kwh) Small General Monthly Charge Energy Charge (per Kwh) "Block 1" Energy Charge (per Kwh) "Block 2" Large General Monthly Charge Energy Charge (per Kwh) Demand Charge (per KW) Industrial Monthly Charge Energy Charge (per Kwh) Demand Charge (per KW) NATURAL GAS RATES Residential Monthly Charge Gas Commodity Charge (per MCF) Commercial Monthly Charge Gas Commodity Charge (per MCF) Large Industrial Monthly Charge Gas Commodity Charge (per MCF) Demand Charge (Max Daily MCF per/month) INSTITUTED RATES PROPOSED RATE SCHEDULE COS Rates 10/1/2017 10/1/2018 10/1/2019 10/1/2020 10/1/2021 $ 14.35 $ 6.50 $ 9.10 $ 11.70 $ 14.30 $ 16.90 $ 0.1028 $ 0.08720 $ 0.08504 $ 0.08290 $ 0.08070 $ 0.07852 $ 24.43 $ 10.00 $ 12.90 $ 15.80 $ 18.70 $ 21.60 $ 0.1028 $ 0.09110 $ 0.09081 $ 0.09052 $ 0.09023 $ 0.08994 $ 0.1028 $ 0.08550 $ 0.08432 $ 0.08314 $ 0.08196 $ 0.08078 $ 134.67 $ - $ 26.90 $ 53.80 $ 80.70 $ 107.60 $ 0.05680 $ 0.07370 $ 0.07003 $ 0.06637 $ 0.06210 $ 0.05783 $ 14.72 $ 6.00 $ 7.00 $ 8.00 $ 9.00 $ 10.00 $ 375.96 $ - $ 75.20 $ 150.40 I $ 225.60 $ 300.80 $ 0.0568 $ 0.0610 $ 0.0589 $ 0.0568 $ 0.05477 $ 0.05274 $ 15.86 $ 7.00 $ 8.00 $ 9.00 $ 10.00 $ 11.00 Alternate 10/1/2021 $ 14.30 $ 0.08240 INSTITUTED RATES PROPOSED RATE SCHEDULE Alternate COS Rates 10/1/2017 10/1/2018 10/1/2019 10/1/2020 10/1/2021 10/1/2021 $ 13.81 $ 6.50 $ 8.90 $ 11.30 $ 13.70 $ 16.10 $ 13.70 $ 6.24 $ 9.080 $ 8.662 $ 8.244 $ 7.824 $ 7.404 $ 7.756 $ 72.87 $ 31.50 $ 39.80 $ 48.10 I $ 56.40 $ 64.70 $ 6.40 $ 9.080 $ 8.803 $ 8.528 $ 8.25 $ 7.97 $ 372.33 $ - $ 75.00 $ 145.00 I $ 215.00 $ 285.00 $ 4.52 $ 8.540 $ 8.284 $ 8.039 $ 7.795 $ 7.545 $ 5.71 $ 10.00 $ 9.50 $ 9.00 $ 8.50 $ 8.00 ELECTRIC RATES Monthly Bill by Energy Usage RESIDENTIAL IMPACTS All Energy Current 2020 $ 2021$ 250 $ 33.75 $ 35.80 $ 37.86 350 $ 42.57 $ 44.40 $ 46.24 450 $ 51.39 $ 53.00 $ 54.62 550 $ 60.22 $ 61.61 $ 63.01 650 $ 69.04 $ 70.21 $ 71.39 750 $ 77.86 $ 78.81 $ 79.77 850 $ 86.68 $ 87.41 $ 88.16 950 $ 95.50 $ 96.01 $ 96.54 1,050 $ 104.32 $ 104.61 $ 104.92 1,150 $ 113.14 $ 113.21 $ 113.30 Monthly % Change by Energy Usage All Energy 2020 2021 250 6.1% 5.7% 350 4.3% 4.1% 450 3.1% 3.1% 550 2.3% 2.3% 650 1.7% 1.7% 750 1.2% 1.2% 850 0.8% 0.9% 950 0.5% 0.6% 1,050 0.3% 0.3% 1,150 0.1% 0.1% Monthly $ Change by Energy Usage All Energy 2020 2021 250 $ 2.05 $ 2.06 350 $ 1.83 $ 1.84 450 $ 1.61 $ 1.62 550 $ 1.39 $ 1.40 650 $ 1.17 $ 1.18 750 $ 0.95 $ 0.97 850 $ 0.73 $ 0.75 950 $ 0.51 $ 0.53 1,050 $ 0.29 $ 0.31 1,150 $ 0.07 $ 0.09 ELECTRIC RATES Monthly Bill by Energy Usage SMALL GENERAL IMPACTS Energy Block 1 Block 2 Current 2020 $ 2021$ 400 400 $ 54.13 $ 56.92 $ 59.70 700 700 $ 79.16 $ 81.86 $ 84.56 1,000 1,000 $ 111.63 $ 114.24 $ 116.85 1,300 1,300 $ 140.38 $ 142.90 $ 145.43 1,600 1,600 $ 169.13 $ 171.56 $ 174.00 1,900 1,900 $ 197.88 $ 200.23 $ 202.58 2,200 2,000 200 $ 225.15 $ 227.23 $ 229.32 2,500 2,000 500 $ 251.69 $ 253.42 $ 255.15 2,800 2,000 800 $ 278.22 $ 279.60 $ 280.97 3,100 2,000 1,100 $ 304.76 $ 305.78 $ 306.80 Monthly % Change by Energy Usage All Energy 2020 2021 400 5.1% 4.9% 700 3.4% 3.3% 1,000 2.3% 2.3% 1,300 1.8% 1.8% 1,600 1.4% 1.4% 1,900 1.2% 1.2% 2,200 0.9% 0.9% 2,500 0.7% 0.7% 2,800 0.5% 0.5% 3,100 0.3% 0.3% Monthly $ Change by Energy Usage All Energy 2020 2021 400 $ 2.78 $ 2.78 700 $ 2.70 $ 2.70 1,000 $ 2.61 $ 2.61 1,300 $ 2.52 $ 2.52 1,600 $ 2.44 $ 2.44 1,900 $ 2.35 $ 2.35 2,200 $ 2.08 $ 2.08 2,500 $ 1.73 $ 1.73 2,800 $ 1.38 $ 1.38 3,100 $ 1.02 $ 1.02 NATURAL GAS RATES Monthly Bill by Energy Usage RESIDENTIAL IMPACTS MCF Usage Current 2020 $ 2021$ 4 $ 41.29 $ 42.01 $ 42.73 5 $ 48.79 $ 49.09 $ 49.39 6 $ 56.29 $ 56.17 $ 56.05 7 $ 63.79 $ 63.25 $ 62.71 8 $ 71.28 $ 70.32 $ 69.36 9 $ 78.78 $ 77.40 $ 76.02 10 $ 86.28 $ 84.48 $ 82.68 11 $ 93.78 $ 91.56 $ 89.34 Monthly % Change by Energy Usage MCF Usage 2020 2021 4 1.7% 1.7% 5 0.6% 0.6% 6 -0.2% -0.2% 7 -0.8% -0.9% 8 -1.3% -1.4% 9 -1.8% -1.8% 10 -2.1% -2.1% 11 -2.4% -2.4% Monthly $ Change by Energy Usage MCF Usage 2020 2021 4 $ 0.72 $ 0.72 5 $ 0.30 $ 0.30 6 $ (0.12) $ (0.12) 7 $ (0.54) $ (0.54) 8 $ (0.96) $ (0.96) 9 $ (1.38) $ (1.38) 10 $ (1.80) $ (1.80) 11 $ (2.22) $ (2.22) NATURAL GAS RATES Monthly Bill by Energy Usage COMMERCIAL IMPACTS MCF Usage Current 2020 $ 2021$ 10 $ 125.92 $ 131.42 $ 136.92 20 $ 203.74 $ 206.44 $ 209.14 30 $ 281.56 $ 281.46 $ 281.36 40 $ 359.38 $ 356.48 $ 353.58 50 $ 437.21 $ 431.51 $ 425.81 60 $ 515.03 $ 506.53 $ 498.03 70 $ 592.85 $ 581.55 $ 570.25 80 $ 670.67 $ 656.57 $ 642.47 90 $ 748.49 $ 731.59 $ 714.69 Monthly % Change by Energy Usage MCF Usage 2020 2021 10 4.4% 4.2% 20 1.3% 1.3% 30 0.0% 0.0% 40 -0.8% -0.8% 50 -1.3% -1.3% 60 -1.7% -1.7% 70 -1.9% -1.9% 80 -2.1% -2.1% 90 -2.3% -2.3% Monthly $ Change by Energy Usage MCF Usage 2020 2021 10 $ 5.50 $ 5.50 20 $ 2.70 $ 2.70 30 $ (0.10) $ (0.10) 40 $ (2.90) $ (2.90) 50 $ (5.70) $ (5.70) 60 $ (8.50) $ (8.50) 70 $ (11.30) $ (11.30) 80 $ (14.10) $ (14.10) 90 $ (16.90) $ (16.90) Hutchinson Utilities Commission Electric Rate Design for 2020 Rate Design Summary Projected Projected Projected Projected Revenues Under Revenues Under Revenue Change from Customer Class Current Rates Proposed Rates Change Current Residential $ 5,666,392 $ 5,745,256 $ 78,864 1.39% Small General Service $ 1,913,128 $ 1,929,507 $ 16,379 0.86% Large General Service $ 7,735,776 $ 7,671,343 $ (64,434) -0.83% Large Industrial $ 10,170,440 $ 10,147,932 $ (22,508) -0.22% TOTALS $ 25,485,736 $ 25,494,037 $ 8,301 0.03% Hutchinson Utilities Commission Electric Rate Design for 2021 Rate Design Summary Projected Projected Projected Projected Revenues Under Revenues Under Revenue Change from Customer Class Current Rates Proposed Rates Change Current Residential $ 5,745,256 $ 5,825,203 $ 79,947 1.39% Small General Service $ 1,929,507 $ 1,945,886 $ 16,379 0.85% Large General Service $ 7,671,343 $ 7,606,907 $ (64,436) -0.84% Large Industrial $ 10,147,932 $ 10,125,426 $ (22,506) -0.22% TOTALS $ 25,494,037 $ 25,503,421 $ 9,384 0.04% Hutchinson Utilities Commission Natural Gas Rate Design for 2020 Rate Design Summary Projected Projected Projected Projected Revenues Under Revenues Under Revenue Change from Customer Class Current Rates Proposed Rates Change Current Residential $ 3,870,540 $ 3,842,013 $ (28,527) -0.74% Commercial $ 2,912,294 $ 2,876,480 $ (35,814) -1.23% Industrial $ 406,048 $ 391,700 $ (14,348) -3.53% Contracted Industrial #1 $ 328,345 $ 337,902 $ 9,557 2.91% Contracted Industrial #2 $ 2,498,157 $ 2,586,882 $ 88,724 3.55% TOTALS $ 10,015,385 $ 10,034,977 $ 19,593 0.20% Hutchinson Utilities Commission Natural Gas Rate Design for 2021 Rate Design Summary Projected Projected Projected Projected Revenues Under Revenues Under Revenue Change from Customer Class Current Rates Proposed Rates Change Current Residential $ 3,842,013.40 $ 3,813,785.02 $ (28,228) -0.73% Commercial 2,876,480.15 2,840,666.27 $ (35,814) -1.25% Industrial 391,700.01 377,051.51 $ (14,649) -3.74% Contracted Industrial #1 337,902.39 337,902.39 $ - 0.00% Contracted Industrial #2 2,586,881.50 2,586,881.50 $ - 0.00% TOTALS $ 10,034,977.45 $ 9,956,286.69 $ (78,691) -0.79% Average Residential Usage Kwhr's 25DORLESS 251-500 501-75U Customer #'s 857 1,462 1,541 °h of Total 14% 23% 25% >= 251, <=375 720 >375, <=500 732 1,452 >= 501, <=625 785 >625, <=750 756 1,541 751-1000 1001-1250 1251-1500 1,151 63T 620 Avg Residential Usage MCF's 3 OR LESS 3.1-5 5.1-7 7.1-9 9.1-11 11.1-13 13.1-15 Customer #'s 790 1,594 1,407 667 308 12T 215 96 of Total 156 31% 286 1396 fi 2°h 4° >3, <4 695 1594 >5, <6 849 >= 6, <=7 558 1407 Sum 6,258 1 DO% Sum 5,108 100% HUTCHINSON CITY COUNCIL Ci=y�f Request for Board Action 79 =-W Agenda Item: Project Award for SC Drainage Area Improvements Phase 2 Project (1-3/P20-03) Department: PW/Eng LICENSE SECTION Meeting Date: 9/8/2020 Application Complete N/A Contact: Kent Exner Agenda Item Type: Presenter: Kent Exner Reviewed by Staff ❑ New Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: The City received five (5) bids (see attached Bid Tabulation) for the South Central Drainage Area Improvements Phase 2 project letting on Wednesday, September 2nd. The apparent low bidder is Hjerpe Contracting Inc. of Hutchinson, MN, with a bid of $715,066.79 (approximately 40% lower than the final Engineer's Estimate of $1,200,000.00). This project's total cost and associated funding contributions will be incurred by the City's Stormwater, Water and Wastewater funds per the actual bid item amounts. The necessary Resolution to award this project is attached, and City staff recommends approving it accordingly. BOARD ACTION REQUESTED: Approval of Resolution Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: Total City Cost: Funding Source: Remaining Cost: $ 0.00 Funding Source: RESOLUTION NO. 15206 RESOLUTION ACCEPTING BID AND AWARDING CONTRACT LETTING NO. 4/PROJECT NO. 20-04 Whereas, pursuant to an advertisement for bids for the furnishing of all labor and material for the improvement of: South Central Drainage Area Improvements Phase 2: Harrington Street SW, Merrill Street SW, Clinton Avenue SW & Lyndale Avenue SW; utility improvements by construction of grading, aggregate base, storm sewer, sanitary sewer, restoration and appurtenances, and bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: Bidder Total Bid Hjerpe Contracting Inc of Hutchinson MN $715,066.79 R & R Excavating Inc of Hutchinson MN $832,711.42 Widmer Construction LLC of Minnetrista MN $844,532.50 Schneider Excavating & Grading Inc, Young America MN $1,003,846.10 Duininck Inc of Prinsburg MN $1,059,911.00 and whereas, it appears that Hjerpe Contracting Inc. of Hutchinson MN is the lowest responsible bidder; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: The mayor and city administrator are hereby authorized and directed to enter into a contract with Hjerpe Contracting Inc of Hutchinson MN in the amount of $715,066.79 in the name of the City of Hutchinson, for the improvement contained herein, according to the plans and specifications therefor approved by the City Council and on file in the office of the City Engineer. The City Engineer is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed, and the deposit of the successful bidder shall be retained until satisfactory completion of the contract. Adopted by the Hutchinson City Council this 8th day of September 2020. Mayor, Gary Forcier City Administrator, Matthew Jaunich CITY OF HUTCHINSON, 111 HASSAN ST SE, HUTCHINSON MN 55350 320-234-4209 BID TABULATION - CITY OF HUTCHINSON LETTING NO. 3/PROJECT NO. 20.03 South Central Drainage Area Improvements - Phase 2 BID OPENING: 09/02/2020 @ 11:00 AM ENGINEER'S ESTIMATE $1,207,610.00 COMPLETION DATE: 1112512020 _ _ _ - a Engineer's ESgmne Hjerpe Contracting Inc Kurt H Hjerpe 162a6 Hwy 15 S P O Box 517 Hutchinson MN 55350 Phone: 320-234-8305 Fax: 3213234-7305 estimatingghj.,p -tracti R & R Excava5 ng, Inc. Brent Reiner 1149 Hwy 22 South Hutchinson, MN 55350 Phone 320487-5918 Fax 320487-113" michelle�rtexcavating.net Wid-Construction LLC Tony Vanneninne 9455 Cty Rd 15 Minnetnsta MN 55359 Phone: 952-9554062 Fax: 9524554034 fm tony.wdmemonst@ntw. rom Schneid-Excavating & G.ding Inc Bnan Wachholz 405 Central Ave S PO Box 814 Young Amen- MN 55397 Phone: 952-2924374 Fax: 952467-2563 Duininck Inc Brady Bumhill 408 61, St P O Box 208 Pnnsburg MN 56281 Phone 320-978-6011 Fax 320-9]849]8 Bn dyB,§tluininck.- BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TO TAL BIDPRICE I BIDTOTAL BASE BID $1,203,460.45 $715,066.79 $832,711.42 $844,532.50 $1,003,846.10 $1,059,911.00 BASE BID UNIT OUANTRY BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL 1 2021501 MOBILIZATION LUMPSUM 1 $60,00000 $60,0000 $39000 $3,0000 $110456.4 $1104564 $11.000.00 $11,000.00 $47000.00 $47000.00 $900000 $90,000.00 2 2101524 CLEARING TREE 1 $40000 $40000 $40000 $40000 $2WN $25000 $1.250.00 $1,250.00 $1000.00 $100000 $100000 $1000.00 3 2101 524 GRUBBING TREE 1 $250 00 $25000 $100 00 $100 00 $2WN $250 W $800 00 $800 00 $250 00 $250 00 $1 00000 $1 000.00 4 2103502 DISCONNECT WATER SERVICE EACH 3 $850.00 $25500 $8500 $25500 $1651 $496]1 $1.500.00 $45000 $500.00 $150000 $120000 $360000 5 2104502 REMOVE MANHOLE EACH 13 $350.00 55ao $20000 z6000 $26]85 3,4820 $450.00 58500 $300.00 390000 $40000 520000 6 2104 502 REMOVE CATCH BASIN EACH 14 $260.00 $3 6400 $195 00 $2 7300 $128 4] $1 ]98 58 $250 00 $3 5000 $250 00 $3 50000 $250 00 $3 50000 7 2104502 REMOVE GATE VALVE EACH 7 $185.00 $12050 $2000 $14000 $14193 $99351 $300.00 $2,1000 $50.00 $35000 $20000 $140005 8 2104502 REMOVE HYDRANT EACH 3 $900.00 $27000 $42500 $12750 $331.18 $00354 $400.00 $12000 $350.00 $1,05000 $50000 $150000 9 2104502 SALVAGE LIGHTING UNIT EACH 2 $800 00 $16000 $2500 $5000 $2WN $58000 $1,500.00 $30000 $1500.00 $3,000.00 $29000 $58000 10 2104.502 SALVAGE SIGN EACH 6 40 00 $240.00 5000 $300.00 2500 $150 00 125.00 $750.00 100.00 $600.00 5000 $300 00 11 2104.502 SALVAGE MAIL BOX SUPPORT EACH 1 $5500 $55.00 $6500 $65.00 $SON $5000 $60.00 $60.00 $100.00 $100.00 $5500 $5500 12 2104.503 SAWING CONCRETE PAVEMENT FULLDEPTH LIN FT 225 $800 1,800.00 $4.15 933.]5 $331 ]4475 $5.50 1237.5 $5.00 1.125.00 $500 1,12500 13 2104.503 SAWN G BITUMIN OUSPAVEM ENT FULL DEPTH LIN FT 167 $600 1,002.00 $2 00 334.00 $223 3]241 $3 00 50100 $3 00 501.00 $2 00 33400 14 2104.503 REMOVEWATER MAIN LIN FT 200 $1000 $2,000.00 $1 00 $200.00 $058 $11600 $25.00 $50000 $5.00 $1,000.00 $500 $100000 15 2104.503 REMOVE SEWER PIPE STORM LIN FT 2057 00 $8 00 $16,456 00 $5 55 $11 416 35 $6 23 $12,815.11 $15.00 $30,855 0 $10.00 $20, 570.00 $1000 $2U 51000 16 2104.503 REMOVE SEWER PIPE SANITARY LIN FT 874.00 $5.00 $4 3700 $0 01 $8 ]4 $0.14 $122 36 $12.00 $10,4880 $5.00 $4, 370.00 $2 50 $2,185 00 17 2104.503 REMOVECURB&GUTTER LIN FT 1770.00 $8 00 $14,1 W0 $300 $5,3100RL12 $4,301.1 $6.00 $1062000 $11.00 $19,470.00 $500 $885000 18 2104.504 REMOVE CONCRETE DRIVEWAY PAVEMENT SO YD 289.00 $15.00 $4 3350 $8 00 $2 312 0 $1 63514 $12.00 $3 468 00 $13.00 $3 757.00 $1000 $2 80000 19 2104.505 REMOVE BITUMINOUS PAVEMENT SO YD 122.00 $6.00 $]3200 $2 00 $24400 $40870 $1000 $12200 $10.00 $1220.00 $800 $07600 20 2104.518 REMOVE CONCRETE WALK SO FT 991.00 $4.50 459 5 $0 80 792 80 812 62 $2 50 2 4]] 5 $3.00 2,9]3.00 $1 00 991 00 21 210550] COMMON EXCAVATION EV CU YD 2321.00 $15.00 $348150 $980 $22,7458 $31,078.1 $2000 $46,4200 $9.00 $20,889.00 $2000 $46,42005 22 2105 507 SOIL STABILIZATION GRID SO YD 1035 00 $3.85 $3 984.75 $3 25 $3,363 ]1 $3011 8 $3 50 $3 622 5 $4 50 $4, 657.50 $5 00 $5,175 00 23 2211609 AGGREGATE BASE CV FROM STOCKPILE TON 468000 $10.00 $46,800.00 $875 $40,95004 $30,6072 $1075 $50,3100 $725 $33,930.00 $1050 $40,14000 24 2112 W4 SUBGRADE PREPARATION SO YD 1043200 $1 00 $10,432.00 $1 50 $15,6480$1 35 $14,0832 $125 $13,0400 $150 $15648.00 $1 50 $1564800 25 2215.504 FULLDEPTH RECLAMATION SO YD 10432.00 $1 50 $15648.00 $200 $208640 $959744 $155 $161606 $1.30 $1356160 $150 $15648026 2502.503 4" PERF PVC PIPE DRAIN LIN FT 190.00 $6.50 $1 235.00 $8 00 $1 52005 $9]8 50 $19]5 $3]52 5 $21.00 $399000 $1000 $100000 27 2503.503 TPVC PIPE SEWER LIN FT 35.00 $53.00 18550$1400 90009 6815 $3225 1,128] $85.00 207500 $5000 175000 28 2503503 12" RC PIPE SEWER DESIGN 3006 CL V LIN FT 510.00 $71.00 $36,210.00 $4000 $20,4000 $24,214 8 $62 00 $31 6200 $70.00 $35,70000 $47 00 $23,07005 29 2503503 15" RC PIPE SEWER DESIGN 3006 CL V LIN FT 28.00 $74.00 $2 072 0 $49 00 $1 372 0 $5523 $1 54644 $66 00 $1 8480 $114.00 $3,192 00 $58 00 $1 624 00 30 2503 503 24" RC PIPE SEWER DESIGN 3006 CL V LIN FT 137.00 $90.00 $12 330 0 $69 00 $9,453 0 $8322 $11,401.14 $90.00 $12 3300 $96.00 $13,152 00 $85 00 $11 645 00 31 2503 503 42" RC PIPE SEWER DESIGN 3006 CL III LIN FT 1625 00 $215 00 $349 375 0 $100 00 $162500 0 $13732 $223,1450 $143.00 $232 3750 $151.00 $245 375 00 $175 00 $284 375 0 32 2503602 CONNECTTO EXISTING SANITARY SEWER EACH 1000 18000 $180000 18200 $182000 99]94 $997040 500.00 $50000 2.000.00 $2000000 110000 $1100000 33 2503602 CONNECTTO EXISTING MANHOLES SAN EACH 100 $32000 $32000,5000 $35250 $35250 $198]0 $198]03 $1,000.00 $10000 $3.500.00 $350000 $210000 $210000 34 2503602 CONNECTTO EXISTING STORM SEWER EACH 1100 $25000 2]. $14850 16,3350 $99352 10,92872 $500.00 5,500.00 $1.500.00 16,50000 $140000 15,40000 35 2503602 CONNECT INTO EXISTING DRAINAGE STRUCTURE EACH 100 $2 5000 2 5000 $2 7500 2 7500 $1 %70 1 98] 0 $500.00 500.00 $2..500.00 2 50000 $2 50000 2 50000 36 2503602 4"CLEAN-OUT ASSEMBLY EACH 800 $45000 $36000 $18500 $14800 $10425 $83400 $125.00 $1,000.00 $250 00 $200000 $50000 $400000 37 2503 602 6" CLEAN -OUT ASSEMBLY EACH 100 $55000 $5500( $27000 $27000 $152 62 $152 62 $215.00 $215.00 $350.00 $350 00 $700 00 $700 00 38 2503602 TX4"PVC ME EACH 800 $75000 $60000 $81000 $64800 $10535 $,2848 182.5 $750.00 $6000.00 $150.00 $120000 $60000 $480000 39 2503 602 TX6" PVC ME EACH 100 $95000 $950 00 $83500 $83500 $1 082 5 $21 $783.00 $783.00 $200.00 $200 00 $800 00 $800 00 40 2503 603 CLEAN & VIDEO TAPE PIPE SEWER LIN FT 163200 $1 85 $3 0192 $230 $3 7536 $21N1 $3 264 0 $2.45 $3 99840 $3 50 $5 712 00 $2 50 $4 080 00 41 2503.603 4" PVC PIPE SEWER LIN FT 18500 $40 00 $7400 0 $2400 $4 4400 $12 46 $2 305.1 $31.05 $5144 2 $81 00 $14 985 00 $44 00 $8 14000 42 2503.603 8"PVC PIPE SEWER LIN FT 129400 $5500 71,1700 $3000 388200 $3037 39,298_]8 $24.00 31056.0 $5500 71,1]000 $4400 $56,036.00 43 2504.602 WATER MAIN OFFSET 3" EACH 100 $8 00000 000 $8 000 0 $4 400 0 $4 4000 $3 258 6 $3,258 68 $3 912 0 $3 0120 $5 703 00 $5 703 00 $3 10000 $3,100 00 44 2504.602 WATER MAIN OFFSET 6" EACH 200 $8 500 0 $1 ],0000 $4 4999 $8 8000 $2 8004 $5,60094 $3 512 0 $]0240 $5 16100 $10,322 00 $3 80000 $7600 00 45 2504.602 CONNECTTO EXISTING WATERMAIN EACH 1200 $20000 $240000 $12000 $144000 $10016 $12,01956 $17500 $210000 $170000 $20,40000 $250000 $30,00002 46 2504.602 HYDRANT EACH 300 $5,50000 $16,500001 $4,78500 $14 355 0 $4 36032 $13,08096 $3 7640 $11 292 0 $6 276 00 $18 828 00 $4 40000 $1320000 47 2504.602 1"CORPORATION STOP EACH 200 $21000 $42000 $18250 $36500 $109564 $219128 $448.00 $8%00 $112000 $224000 $800 00 $160002 48 2504.602 2"CORPORATION STOP EACH 100 $24999 $24000 $21000 $21000 $13130 $13130 $689.00 $68900 $1eoo oo $180000 $105000 $105000 49 2504.fi02 6"GATE VALVE EACH 800 $z 4999 19,2000 $14950 119600 $18315 146520 $1.20].00 96560 $1 ]3300 13,86400 $190000 1520000 50 2504.602 1" CURB STOP AN BOX EACH 200 $85000 $1 ]000 $1 100.00 $2 2000 $150.10 $300 20 $501.00 $1 002 0 $1 1]] 00 $2 354 00 $350 00 $700 00 51 2504.602 2"CURB STOP AN BOX EACH 100 $95000 $95000 $1425.00 $14250 $456.5] $45fi.5] $841.00 $84100 $153900 $153900 $85000 $85000 52 2504.603 1"TYPE K COPPER PIPE LIN FT 9000 $2600 $23400 $6.00 $54000 $1539 $1,385.1 $40.00 $36000 $2900 $2610.00 $3200 $288000 53 2504.603 2"TYPE K COPPER PIPE LIN FT 40.00 $3500 $14000 $13.00 $52000 $3563 $14252 $47.00 $18800 $4500 $1,800.00 $4800 $192000 54 2504.603 T WATERMAIN DUCTILE IRON CL 52 LIN FT 117.003$130* 00 $8 775 0 90.00 $10 5300 4 75 $5 235 ] 51.50 $6 025 5 10800 $12 636.00 72 00 $8 424 00 55 2504.608 DUCTILE IRON FRTINGS POUND 300.0000 $30000 $9.00 $27000 $110] $33210al 00 $18000 $1000 $3000.00 $1500$45000056 2506.502 CONSTRUCT DRAINAGE STRUCTURE DESIGN SPECIAL EACH 100 0 140000 $125000 125000 $1516052 15,160.525 146075 $86440p 8.644.00 $151000 15,10005] 2506.502 CONSTRUCT MANHOLE DESIGN 400] EACH 9000 38 ]000 $29300 26,3700 $330294 29,72640 26,4600 $480000 3.200.00 $440000 3960000 58 2506.502 CONSTRUCT CATCH BASIN TYPE A EACH 18000 $45,0000 $1 9100 $34 3800 $1 ]11.18 $30,801 241 0 $25,]58 0 $200200 $36 036.00 $250000 $45,00002 59 2506.502 CONSTRUCT DRAINAGE STRUCTURE DESIGN 48-0020 EACH 5000 $27,5000 $26400 $132000 $25916 $12,95800 $10,9500 $205200 $14,]60.00 $280000 $1400000 fi0 2506.502 CONSTRUCT DRAINAGE STRUCTURE DESIGN 60-0020 EACH 3000 $186000 $3]500 $1I 50.0 $343662 $10,30980 $96360 $568900 $17,067.00 $380000 $1140000 2506502 CONSTRUCT DRAINAGE STRUCTURE DESIGN 72-M20 EACH ]000 $616000 $56550 $39,5850 $504]6 $35,33320 $3],1000 $692000 $48440.00 $]10000 $49]0000fit 2506502 CONSTRUCT DRAINAGE STRUCTURE DESIGN 84-0920 EACH 2000 $194000 $6 ]550 $135100 $593]41 $11.8]4820 $123860 $859900 $1]19800 $]40000$148000 RUCT DRAINAGE STRUCTURE DESIGN 91-02U EACH 300 .00 $30 UUUU $91900 $275700 $814]1 $24,441.30 $248460 $9223 UU $2]fi69.00 $980000 $2940000 STRUCT DRAINAGE STRUCTURE DESIGN 108d020 EACH 100 .00 180000 $13500.0 13,5000 $134112 13.41120 16,1630 $1356300 13,563.00 $155000 15,50000 fi5 2540602 MAILBOX EACH 2400 $10000 $z400.o $10000 $24000 $5000 $1,200000 $25200 $12500 $3,000.00 $10000 $z400 oo CITY OF HUTCHINSON, 111 HASSAN ST SE, HUTCHINSON MN 55350 320-234-4209 BID TABULATION - CITY OF HUTCHINSON LETTING NO. 3/PROJECT NO. 20-03 South Central Drainage Area Improvements - Phase 2 BID OPENING: 09/02/2020 @ 11:00 AM ENGINEER'S ESTIMATE $1,207,610.00 COMPLETION DATE: 11/25/2020 Hjerpe Contracting Inc R& R Excavating, Inc. Wid-Construction LLC Schneider Excavating& Duininck Inc Kurt H Hjerpe Brent Reiner Tony V-derlinde Gn.ding Inc Bretly Burchill 16246 Hx 15 S 1149 Hwy 22 South 9455 Cty Rd 15 Brian Wachholz 408 6th St P O Box 517 Hutchinson, MN 55350 Minnetriete MN 55359 405 Central Ave S P O Box 208 - - Engineer's E,bmate Hutchinson MN 55350 Phone 320-587-5918 Phone: 952-9554062 P O Box 814 Prineburg MN 56281 Phone: 320-234-8305 Fax 320-587-10" Fax: 952E555034 Young America MN 55397 Phone 320-978-6011 _ Fax: 320-234-7305 michelle@nn,..-tng.net tony.widmerconstM_frontier. Phone: 952-2924374 Fax 320-9784978 eetimating@hjerpecontrecti com Fax: 952467-2563 B,.dyB@tluininck.com BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE I BID TOTAL BASE BID $1,203,460.45 $715,066.79 $832,711.42 $844,532.50 $1,003,846.10 $1,059,911.00 BASE BID UNIT QUANTITY BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE BID TOTAL BID PRICE I BID TOTAL 66 2540.602 INSTALLMAIL BOX SUPPORT EACH 1.00 $65.00 $65.00 $75.00 $75.00 $50.00 $50.00 $73.50 $73.50 $150.00 $150.00 $70.00 $70.00 67 2545.602 INSTALLLIGHTING UN IT EACH 2.00 $1,500.00 13,000.00 $250.00 $500.00 $680.00 $1360.00 $1,500.00 $3,000.00 $1,500.00 $3,000.00 $680.00 $1360.00 68 2563.601 TRAFF IC GO NTROL LU MP SUM 1.00 $13,500.05 $13,500.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,510.00 $6,510.00 $7,000.00 $7,000.00 $6,000.00 $6,000.00 68 2564.602 INSTALL SIGN EACH 6.00 $225.00 $1350.00 $200.00 $1 200.00 $100.00 $600.00 $200.00 $1 200.00 $250.00 $1 500.00 $200.00 $1 200.00 70 2573.502 STORM DRAIN INLET PROTECTION EACH 1 41.11 $185.00 7,-UU $110.00 4.500.00 $60.00 2.460.00 $225.00 8.225.00 $350.00 14350.00 $175.00 7.175.00 71 2575.505 RAPID STABILISATION METHOD ACRE 0.55 $2,100.00 $1,155.00 $2, 500.00 $1375.00 $2, 500.00 $1375.00 $2, 000.00 $1,100.00 $5,000.00 $2,750.00 $2,500.00 $1375.00 TOTAL - LETTING NO. 3/PROJECT NO. 20-03 $1,203,460.45 $1 15,066.79 $832,711.42 $844,532.50 $1,003,846.10 $1,059,911.00 HUTCHINSON CITY COUNCIL Ci=y�f Request for Board Action 79 =-W Agenda Item: Approve/Deny Purchase of "Slapshot" Sculpture Department: Park & Rec - Public Arts LICENSE SECTION Meeting Date: 9/8/2020 Application Complete N/A Contact: Steve Cook Agenda Item Type: Presenter: Steve Cook Reviewed by Staff ❑ New Business Time Requested (Minutes): 10 License Contingency N/A Attachments: Yes BACKGROUND/EXPLANATION OFAGENDA ITEM: When you think of Thomas "Buzz" Burich words like community, support and philanthropy come to mind. Over the years Buzz has supported the community and various organizations in a variety of ways and set an example for giving back and helping others to make Hutchinson a better place to live. This includes his support of the youth hockey and skating programs. For example, the Burich Foundation has made sizable donations to the city to help purchase two new electric ice resurfacing machines- the most recent this spring. These also help us meet indoor air quality requirements. In addition, a debt buy down/naming right arrangement allowed the city to generate additional ice rental fees at a time when LGA was cut. Buzz has also supported the arts in Hutchinson in a variety of ways, including the city's public art program. For example Buzz served on the Public Arts Commission in its infancy and starting last year Citizens Bank began sponsoring a Sculpture Stroll pad in the new Citizens Bank and Trust Park. In the first Sculpture Stroll year when Buzz was serving on the Public Arts Commission, "Slapshot" by Judd Nelson of Wayzata was one of the pieces submitted for consideration. While not chosen for display that year, I remember Buzz commenting on how he thought that would look nice at the arena. Over the years I have heard that he has mentioned that piece to others. Fast forward to the present and Slapshot was part of the 2019 Sculpture Stroll. The Public Arts Commission would like to ask the City Council to approve the purchase of Slapshot as a token of appreciation for Buzz's support of the youth hockey and skating programs and the arts, and place it by the entrance of the east arena as Buzz envisioned back in 2013. The Hutchinson Hockey Association is also excited to participate in this project in honor of Buzz for all he has done for HHA, hockey and the arena. The costs and funding sources are included on the attached document. BOARD ACTION REQUESTED: Approve the purchase of "Slapshot" using Community Improvement and Public Art Funds and install the sculpture by the entrance to the east arena in appreciation of Buzz Burich. Fiscal Impact: Funding Source: FTE Impact: Budget Change: No Included in current budget: Yes PROJECT SECTION: Total Project Cost: $ 7,850.00 Total City Cost: $ 6,600.00 Funding Source: PAC ($3,700), Comm Improv Fund ($2,900) Remaining Cost: $ 1,250.00 Funding Source: HHA ($1,000) Other ($250) "Slapshot" Sculpture Project Item Cost Comm Improv Fund Public Arts Fund Hutch Hockey Assoc. Other Donation Total Sculpture $6,900 * $2,450 $3,450 $1,000 $6,900 Concrete Pad $250 (estimated) $100 $150 $250 Plaque/Signage $700 (estimated) $350 $250 $100 $700 Total $7,850 $2,900 $3,700 $1,000 $250 $7,850 * After the 25% commission has been subtracted. EDA Board Meeting Video / Conference Call 11:30 AM Wednesday, July 22nd, 2020 MEETING MINUTES Members present in bold. EDA Board Members Mike McGraw Jonny Block Mike Cannon Corey Stearns Daron Vanderheiden Chad Czmowski Mary Christensen Jeremy Carter Staff Miles Seppelt, EDA Director Matt Jaunich, City Administrator Andy Reid, Finance Director Maddie Newcomb, EDA Program Manager I. Call to Order Meeting called to order at 11:31 AM. II. Review Agenda III. Review Minutes a. b. June 171h Finance Team meeting M/S/P: Stearns, Czmowski to approve the minutes as written June 24th EDA Board Meeting Economic Development Authority Financial Summary as of June 2020 Operations Cash Available $148,866 Reserved $56,736 Unreserved $91,239 Economic Development Loan Fund Cash Available $70,554 Ashwill Industries Balance $6,050 Zephyr Wind Services $94,798 Laser Dynamics Balance (forgivable) $23,000 Innovative Foam Balance (forgivable) $14,355 Advances to other funds (Enterprise $283,146 Center) Downtown Revolving Loan Fund Cash Available $579,111 Loans Receivable $335,849 Capital Assets $201,329 Total Assets $1,116,289 MIF Loan Fund Cash Available $3,145 MOXY Loan Receivable $15,240 Enterprise Center Fund Cash Available $25,059 SHOPKO TIF District (TIF 4-5) Cash Available $185,137 Interfund Loans Receivable $480,906 MEDICAL CLINIC TIF District (TIF 4-16) Interfund Loan Payable $322,661 Passed unanimously. M/S/P: Block, Cannon to approve the minutes as written. Passed unanimously IV. Review of EDA Financial Statements Finance Director Andy Reid provided an update on the EDA financials. (Please refer to table) M/S/P: Block, Czmowski to approve the financial report as presented. Passed unanimously. V. Director's Report A. Marketing Plan: FB = 372, T = 94, Facebook updates = 8, Twitter updates = 8, Website updates = 4. B. Business recruitment / expansions — Staff provided an update on recent prospects and ongoing conversations. C. Solar Project — HUC will bring to their Board meeting next week, looking at a 600-700kw system, self - funded as opposed to a PPA. Could add a smaller scale system in the future for residential use. If the HUC board gives approval, project will move forward with an RFP and design process. Project will be able to fit on one site, (most likely the EDA's 3-acre lot) which will eliminate some infrastructure costs associated with multiple locations. More updates next month. D. EDA Website — hoping to have finished by the end of July. E. County Economic Development — meeting to be held in August to discuss possibility of bringing in a consultant for strategic planning / roadmap creation. VI. Crow River Area Redevelopment — Status & Plan A. Overview & Updates on status of EDA Redevelopment activities ■ Discussion on EDA/City investment into the former Cenex site, and Medical Clinic site. Recap of redevelopment options and additions to Franklin Avenue block, which includes HUC electric vehicle charging station, potential trail extension to Cedar Park, and using FEMA grant to remove three houses. Currently talking with developers for both sites. A. Consider acquisition of Franklin Avenue House ■ County is consolidating their group homes. ■ EMV is $180,000, 6 bed 3 bath home built in 1900 on .332 acres. ■ Possible redevelopment options include row houses or small commercial building. ■ Rationale to purchase: o Eliminate blight o Control how the site gets redeveloped. o Identified in our downtown plan. o Supports surrounding redevelopment activities. ■ Funding: o Redevelopment TIF (25 years, captures new property taxes from redevelopment, need to "front" dollars from somewhere else) o Downtown RLF o Partner with City, 50/50 o Combination of above. ■ Committee formed to oversee negotiations M/S/P: Cannon, Stearns to approve proceeding with negotiations for the acquisition of the Franklin Avenue House. Passed unanimously. VII. Recommendation to City Council on Job Creation Fund for 3M ■ 3M is applying to the State's (DEED) Job Creation Fund. ■ Project would include renovations, site improvements & new machinery. Expansion of existing building by 10,000 square feet also a possibility. ■ Will produce 10 new jobs in the next 3 years, paying $20 - $29 / hour. ■ Job Creation Fund application requires a resolution of support from the community. ■ This comes at no cost to the City of Hutchinson, just strictly to show support of the project. M/S/P: McGraw, Vanderheiden to approve the recommendation of the resolution of support for 3M. Passed unanimously. Vill. CARES Act Business Assistance Program ■ Federally funded business assistance program ■ Proposed $750k allocated to the EDA for a small business assistance program. ■ A draft concept has been brought forward, still need to refine it and bring to the City Council meeting next week. IX. Grant & Loan Program Applications Sign & Awning Grant Program Junk-N-Treasures — Scott Jaster 37 Main Street North $920 M/S/P: Czmowski, Block to approve the sign and awning grant application. Passed unanimously. X. Other Business — NONE XI. Set Next Meeting — 11:30 AM Wednesday, August 261h, 2020. XII. Adjourn —With no further business, the meeting was adjourned at 12:32 pm. Respectfully Submitted, Madison Newcomb EDA Program Manager