cp12-12-23HUTCHINSON CITY COUNCIL
MEETING AGENDA
TUESDAY, DECEMBER 12, 2023
CITY CENTER — COUNCIL CHAMBERS
('The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many
decisions regarding agenda items are based upon this information as well as: City policy and practices, 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 — Oak Heights Covenant Church
(The invocation is a voluntary expression of theprivate citizen, to and for the City Council, and is not intended to affiliate the
City Council with, or express the City Council's preference for, any religious/spiritual organization. The views or beliefs
expressed by the invocation speaker have not been previous y 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 o the public to address the City Council. If the topic you would like to discuss is on the
agenda, please ask the ayor ifhe will be acceptingpublic comments during the agenda item if not a public hearing. Ifyou have
a question, concern or comment, please ask to be recognized by the mayor —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, butplease refrain from personal or derogatory attacks on individuals)
5. CITIZENS ADDRESSING THE CITY COUNCIL
6. APPROVAL OF MINUTES
(a) Regular Meeting of November 28, 2023
(b) Workshop Meeting of November 28, 2023
(c) Truth in Taxation Hearing of December 5, 2023
CONSENT AGENDA
(The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or
a city staff member requests an item to be removed. Traditionally items are not discussed)
7. APPROVAL OF CONSENT AGENDA I
(a) Consideration for Approval of Resolution No. 15664 — Resolution Designating Annual Polling
Places
(b) Consideration for Approval of Resolution No. 15665 — Resolution Adopting City's Snow
Removal and Ice Control Policy
(c) Consideration for Approval of Resolution No. 15667 — Resolution Authorizing an Interfund Loan
for Advance of Certain Costs in Connection With Tax Increment Financing District No. 4-23
(d) Consideration for Approval of Resolution No. 15668 — Resolution in Support of Greater Minnesota
Transportation Alternatives Grant
CITY COUNCIL AGENDA —December 12, 2023
(e) Consideration for Approval of Financial Management Plan Modifications
(f) Consideration for Approval of Authorizing the City Application for the MPCA FY24
Stormwater, Wastewater, and Community (SWC) Resiliency Grant
(g) Claims, Appropriations and Contract Payments — Register A
8. APPROVAL OF CONSENT AGENDA II
(a) Claims, Appropriations and Contract Payments — Register B
PUBLIC HEARINGS — 6:00 P.M. - NONE
purpose of 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.)
9. REVIEW OF TRUTH IN TAXATION HEARING
UNFINISHED BUSINESS
10. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 23-845 -AN
ORDINANCE TO REZONE PROPERTY AT BLOCK 1, LOTS 1 THROUGH 3, BAR
PROPERTIES PLAT AS REQUESTED BY BAR PROPERTIES, LLC
NEW BUSINESS
11. APPROVE/DENY RESOLUTION NO. 15666 — RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS ON A NEW
GRANDSTAND AND OTHER IMPROVEMENTS AT VMF BASEBALL FIELD
12. APPROVE/DENY RE -SETTING DECEMBER 26, 2023, CITY COUNCIL MEETING TO
DECEMBER 19, 2023
13. APPROVE/DENY SETTING DATE FOR CITY ADMINISTRATOR'S ANNUAL
PERFORMANCE REVIEW
GOVERNANCE
(The purpose o t tis 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) Sustainability Advisory Board Minutes from October 16, 2023
2
CITY COUNCIL A GENDA — December 12, 2023
MISCELLANEOUS
15. STAFF UPDATES
16. COUNCIL/MAYOR UPDATE
17. CLOSED SESSION PURSUANT TO MINNESOTA STATUTE § 13D.05, Subd. 3(c) TO
DETERMINE ASKING PRICE OF REAL PROPERTY LOCATED AT 44
WASHINGTON AVENUE WEST, 10 FRANKLIN STREET SW, AND 28 FRANKLIN
STREET SW
ADJOURNMENT
3
HUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, NOVEMBER 28, 2023
CITY CENTER — COUNCIL CHAMBERS
('The City Council is provided background information for agenda items in advance by city staff, committees and boards. Many
decisions regarding agenda items are based upon this information as well as: City policy and practices, 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
Motion by May, second by Burley, to approve the agenda as presented. Motion carried
unanimously.
2. INVOCATION
(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 religiouslspiritual organization. The views or beliefs
expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff)
A moment of silence was held in lieu of an invocation.
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 if he will be acceptingpublic comments during the agenda item if not a public hearing. Ifyou have
a question, concern or comment, please ask to 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, butplease refrain from personal or derogatory attacks on individuals)
5. CITIZENS ADDRESSING THE CITY COUNCIL
6. APPROVAL OF MINUTES
(a) Regular Meeting of November 14, 2023
Motion by Czmowski, second by Sebesta, to approve the minutes as presented. Motion carried
unanimously.
CONSENT AGENDA
(The items listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or
a city staff member requests an item to be removed. Traditionally items are not discussed)
7. APPROVAL OF CONSENT AGENDA
(a) Consideration for Approval of Enterprise Center Lease Agreement with GVL Medical, LLC
(b) Consideration for Approval of Presentation of Names and Positions for Lay -Offs (Police
Hospital Security Officer)
CITY COUNCIL MINUTES — November 28, 2023
(c) Consideration for Approval of Issuing Temporary Liquor License to Hutchinson Jaycees on
January 27, 2024, at Art's Place
(d) Consideration for Approval of Resolution No. 15654 — Resolution to Sell At Auction Unclaimed
Property and Bicycles
(e) Consideration for Approval of Resolution No. 15661 — Resolution Adopting Findings of Fact
and Reasons for Approval of a Preliminary and Final Plat for Hutchinson Downtown
Redevelopment Plat No. 4
(f) Consideration for Approval of Resolution No. 15663 — Local Road Improvement Plan —
Approve Submittal of Grant Application
(g) Claims, Appropriations and Contract Payments
Motion by May, second by Burley, to approve the consent agenda. Motion carried unanimously.
PUBLIC HEARINGS — 6:00 P.M. - NONE
8. APPROVE/DENY ISSUING 3.2% MALT LIQUOR LICENSE AND TOBACCO LICENSE TO
HOLIDAY STATIONSTORES, INC. LOCATED AT 1016 HWY 15 SOUTH
Matt Jaunich, City Administrator, noted that there has been an ownership change for the Holiday
store located at 1016 Hwy 15 South. City code requires a public hearing when a new liquor
license is issued. The applicant has also applied for a tobacco license as well.
Motion by Czmowski, second by May, to close public hearing. Motion carried unanimously.
Motion by Czmowski , second by May, to approve issuing 3.2% malt liquor license and tobacco
license to Holiday Stationstores, LLC. Motion carried unanimously.
9. 2024 STREET IMPROVEMENTS PROJECTS (LETTING NO. 1, PROJECT NO. 23-06, 24-01, 24-
02, 24-03, 24-04, 24-05, 24-06 AND 24-07)
(a) Approve/Deny Resolution No. 15659 - Resolution Ordering Improvement and Preparation of
Plans and Specifications
(b) Approve/Deny Resolution No. 15660 - Resolution Approving Plans and Specifications and
Ordering Advertisement for Bids
Mike Stifter, Public Works Director, presented before the Council. Mr. Stifter explained that
this project includes the following: 23-06 - Uptown Grand Sewer Realignment; 24-01 - Franklin
Street (51h Avenue to Washington Avenue); 24-02 Oakland Avenue SE/Main Street; 24-04 -
Uptown Grand SW Pond and Bank Stabilization; 24-05 - Michael Court NW; 24-06 —
Washington Avenue West (Lynn Road SW to Franklin Street SW); 24-07 — Fire Department
Parking Lot. Project 24-03 (Washington Avenue West (Franklin Street to Main Street) and
Franklin Street NW (Washington Avenue to 1st Avenue NW) has been removed from the project
list. Total project cost is estimated at $3.6 million and will be funded by a combination of City
utility funds, funds from issuing an improvement bond and funds from special assessments to
abutting properties.
Motion by Czmowski, second by Sebesta, to close public hearing. Motion carried unanimously.
Motion by May, second by Czmowski, to approve Resolution Nos. 15659 and 15660, excluding
Project 24-03. Motion carried unanimously.
2
CITY COUNCIL MINUTES — November 28, 2023
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.)
UNFINISHED BUSINESS
10. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 23-844 —AN
ORDINANCE AMENDING CHAPTER 72 — PARKING REGULATIONS
Matt Jaunich, City Administrator, noted that the first reading of this ordinance was held at the last
Council meeting and no changes have been made to it. The proposed ordinance changes
continuous parking on city streets from 24 hours to 72 hours.
Motion by Burley, second by Sebesta, to approve second reading and adoption of Ordinance No.
23-844. Motion carried unanimously.
NEW BUSINESS
11. APPROVE/DENY ISSUING TOBACCO LICENSE TO JEHAD MISHAL OF HUTCH
TOBACCO
Matt Jaunich, City Administrator, explained that there has been an ownership change of Hutch
Tobacco and therefore a new license was applied for by Jehad Mishal, the new owner. A
background check has been conducted and nothing precludes Mr. Mishal from being an eligible for
a license, therefore staff is recommending that a license be issued to him.
Motion by Czmowski, second by May, to approve issuing tobacco license to Jehad Mishal of Hutch
Tobacco. Motion carried unanimously.
12. APPROVE/DENY FIRST READING OF ORDINANCE NO. 23-845 - AN ORDINANCE TO
REZONE PROPERTY AT BLOCK 1, LOTS 1 THROUGH 3, BAR PROPERTIES PLAT
AS REQUESTED BY BAR PROPERTIES, LLC WITH FAVORABLE PLANNING
COMMISSION RECOMMENDATION
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that BAR
Properties has applied for a rezoning of the south third of 845 Hwy 7 West. The applicant has
applied to rezone the property to R-3 Medium Density High Residential from I/C
Industrial/Commercial. All of the adjacent single-family homes are zoned R-3 and the new lots
created will be very similar to the existing single-family homes. A public hearing was held at the
Planning Commission last week and no one spoke regarding the request. The Planning
Commission voted unanimously to recommend approval of the requested rezoning.
Motion by May, second by Czmowski, to approve first reading of Ordinance No. 23-845. Motion
carried unanimously.
CITY COUNCIL MINUTES - November 28, 2023
13. APPROVE/DENY TEMPORARILY SUSPENDING CITY ORDINANCE 93.41 (ANIMAL
KEEPING RESTRICTIONS) FROM MAY 1, 2024 THROUGH JULY 31, 2024, FOR PRAIRIE
RESTORATIONS
Lynn Neumann, PRCE Director, presented before the Council. Ms. Neumann explained that PRCE
staff has been working with "Goats on the Go" to perform targeted grazing in Roberts Park,
Riverside Park and Miller Woods Park. Targeted grazing for invasive species management in
public parks is an eco-friendly and sustainable approach that leverages the natural behavior of
livestock to control the spread of invasive plants. Quotes were received from "Goats on the Go' for
the program in the three identified parks. The work will be performed in the spring/summer of
2024. This program will be paid for using grant dollars obtained from the DNR for prairie
restorations. Staff is requesting the Council authorize temporarily suspending Ordinance 93.41
from May 1, 2024, through July 31, 2024. This ordinance does not allow harboring farm animals
within city limits and staff is requesting that it be suspended during the term of the program for the
specific parks indicated.
Motion by Czmowski, second by May, to approve suspending Ordinance 93.41 for "Goats on the
Go" program. Motion carried unanimously.
GOVERNANCE
iT e purpose o t tis 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 October 2023
(b) Hutchinson Housing & Redevelopment Authority Board Minutes from October 17, 2023
MISCELLANEOUS
15. STAFF UPDATES
Tom Gifferson — Chief Gifferson explained that with the hospital security officers being laid off from
the City, those employees are all, for the most part, becoming employees of Hutchinson Health. This is
occurring because Hutchinson Health will be having the security officer positions be an in-house
service and not contracted with the City. Chief Gifferson also noted that approximately 25 turkeys
were collected and harvested and donated to the food shelf.
Matt Jaunich — Mr. Jaunich reminded the Council of the Truth in Taxation hearing scheduled for
December 5, 2023, at 6:00 p.m. at City Center. Discussion was also held regarding rescheduling the
December 26, 2023, Council meeting to December 19, 2023. Formal action will be taken at the next
Council meeting to reschedule that meeting.
16. COUNCIL/MAYOR UPDATE
ADJOURNMENT
0
CITY COUNCIL MINU7ES - November 28, 2023
Motion by May, second by Czmowski, to adjourn at 6:25 p.m. Motion carried unanimously.
HUTCHINSON CITY COUNCIL
REVIEW OF 2024 ENTERPRISE FUND BUDGETS
MINUTES
TUESDAY, NOVEMBER 28, 2023, 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 Chad
Czmowski, Pat May, Tim Burley and Dave Sebesta. Others present were: Matt Jaunich, City
Administrator; Mike Stifter, Public Works Director; Andy Reid, Finance Director; Andy Kosek,
Creekside Manager; Candice Woods, Liquor Hutch Manager
REVIEW OF 2024 ENTERPRISE FUND BUDGETS
Matt Jaunich, City Administrator, spoke before the Council. Mr. Jaunich noted that a review of
the following budgets will be held at today's workshop: Liquor Hutch, Creekside,
Refuse/Garbage, Water/Wastewater/Storm Water. In addition, there will be a review of the local
sales tax option and the enterprise fund transfers to the general fund. Lastly, an update will be
given on the 2024 budget and tax levy and CIP.
2. Liquor Hutch Budget
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich reviewed the
proposed budget for 2024 which sees a 5.9% increase in sales revenue over the 2023 forecasted
sales. This is due to 2023 forecasted sales beating the budget by 3.8%. Additionally, THC
products are being budgeted for the first time ever since sales began in June of 2023. Proposed
expenses for 2024 have increased 6.2%. Capital projects include renovations to the checkout
counters and a new refrigeration system for the import beer cooler. Andy Reid, Finance Director,
commented on credit card fees that are beginning to be a large expense and need to be considered
in 2025. Mr. Jaunich also provided a 10-year liquor fund forecast.
Creekside Budget
Mr. Jaunich explained that Creekside's 2024 budget includes a -9.8% decrease in revenue. Sales
revenue for bagged product is budgeted at a -15.8% decrease due to the loss of a major customer
late in 2022. Bulk product sales revenue is up over 100% due to the availability of bitcon
inventory for the year. Total expenses are budgeted at a decrease of-15.2%. Capital projects
include cold storage expansion, pallet inverter, portable shrink-wrapping machine and bagging
line improvements. The transfer to the general fund is budgeted at $120,000. The ending cash
balance for Creekside is budgeted at $2,206,728. Mr. Jaunich also provided a 10-year compost
fund forecast.
Refuse/Garbage Budget
Mr. Jaunich noted that the refuse/garbage budget sees an increase in revenue of 6.8% from 2023.
This includes a 5% rate increase for all refuse rates, which is the first increase since 2008.
Expenses for the refuse/garbage budget will see a decrease of -5.6% for 2024. There is a $55,000
transfer that goes out to the tree disease infestation/mitigation fund. The capital outlay
assumption for 2024 is based on planned improvements to the source separated operating model.
This was originally planned in 2021, but was put on hold due to permitting delays with the
MPCA. Projects included are investment in new SSOM operations, a roll -off truck chassis, an
and airlift separator. Mr. Jaunich provided a 10-year refuse fund forecast.
Water Fund Budget
Mr. Jaunich explained that the Water Fund budget shows a 10.0% increase in total revenue for
2024. The 2024 budget does not include any increase in water rates, but does include some
adjustments to sales revenue based on the new rate structure that was effective 1/1/23. Water
fund expenses are budgeted at a 5.3% increase. Projects included are water meter replacements,
Well 4 rehabilitation and recovery treatment, water treatment facility roadway and parking lot
improvements, bulk tank and containment pit lining, plat optimization study, permeate flush
pump VFDs, and roadway infrastructure improvements. Transfer to the general fund will remain
at $70,000 for 2024. The ending cash balance for the water fund budget is budgeted at
$4,708,033. Mr. Jaunich provided a 10-year water fund forecast and noted that 2026 is the last
year of the local sales tax.
Wastewater Fund Budget
Mr. Jaunich explained that the wastewater fund budget sees a 16.5% increase in revenues for
2024. The 2024 budget does not include any increase in sewer rates, but does include some
adjustments to sales revenue based on the new rate structure that was effective 1/1/23. Total
expenses have a budgeted increase of 15.4%. Projects included are digester aeration and
mixation rehabilitation, belt press thickener 2 overhaul/replacement, main lift station pump 2 & 4
VFD replacement, EQ basin liner replacement, lift station repairs/upgrades at the Elementary
School, Our Saviors Church and 5th Avenue locations, roadway and parking lot improvements,
replace vactor truck and jetting trailer, half -ton extended cab 4x4 pickup truck, and roadway
infrastructure improvements. The wastewater fund budget has an ending cash balance budgeted
at $6,256,437. Mr. Jaunich provided a 10-year wastewater fund forecast.
Local Option Sales Tax
Mr. Jaunich reviewed the local option sales tax program and the purpose of it which is dedicated
solely to retiring the debt in water and sewer funds. Mr. Jaunich provided quick facts in reference
to local option sales tax, which included: local sales tax on a $100 purchase amounts to $.050;
local sales tax is applicable to the same retail purchases, subject to Minnesota sales tax; sale of
vehicles by dealers are exempt and instead are subject to an excise fee of $20 per vehicle sold;
local sales tax is applicable to any sale made within city limits as determined by the last four
digits of your zip code; point of possession determines taxability; purchases item/service
received/performed within city limits is subject to the local sales tax; purchased items/service is
received/performed outside city limits is exempt from local sales tax; organizations exempt from
paying state sales tax are also exempt from the local sales tax. Mr. Jaunich noted that the use tax
process is applicable so if a purchase is taxable but the vendor did not charge sales tax, then use
tax must be reported and paid to the State. Mr. Jaunich also reviewed other nearby cities with
local option sales tax. Mr. Jaunich explained that early retirement of debt is an option if cash
reserves are sufficient. While the main purpose of the tax is to retire existing debt, it also allows
the City to build healthy cash reserves to help with annual street projects with water & sewer
infrastructure improvements, improvements that may be needed in each facility, other projects
that create efficiencies and stable water/sewer rates. Mr. Jaunich noted that during the past
November elections, seven cities put forward 11 ballot questions for local sales tax and of those
11, 10 were approved by voters. Mr. Jaunich then reviewed the outstanding debt.
Stormwater Fund Budget
Mr. Jaunich explained that total revenue in the stormwater fund budget is seeing an increase of
3.9%. There is a planned rate increase of 3% over nine classifications. Expenses are budgeted at
a 13.2% increase. City's leaf vacuuming program is accounted for in this fund and street
sweeping is also funded by this account. Projects included for 2024 include pond improvements
in the developments of Fairway Estates, Summerset, Southfork, and Bridgewater and other
roadway infrastructure improvements. The ending cash balance in the stormwater fund is
budgeted at $1,036,481 for 2024. Mr. Jaunich provided a 10-year stormwater fund forecast.
Lastly, Mr. Jaunich provided an overview on enterprise fund transfers to the general fund. Mr.
Jaunich noted that the liquor fund continues to do well. 2024 sees the first rate increase in
garbage rates since 2008. 2024 is the second year of a new rate structure for water and sewer
users. There is a slight increase in the stormwater fees. Enterprise fund transfers into the general
fund account for about 5.8% of general fund revenue. Cash balances continue to remain healthy.
Capital needs continue to increase especially in the Creekside/Water/Sewer funds. In addition,
regulatory agencies have and likely will impact future needs.
Mr. Jaunich provided an update on the general fund budget. Mr. Jaunich noted that there have
been significant changes made to the preliminary budget and tax levy from September. Staff has
increased some revenues and cut expenditures from the budget based on departmental meetings
over the past couple of months that has resulted in the tax levy being lowered by $178,382.
September's preliminary general fund tax levy increase of 12% has been reduced to an increase
of 9%. September's preliminary overall city tax levy increase of 9.3% has been reduced to an
increase of 7.2%. Cuts include the elimination of a position that was being considered for an
addition in public works and includes the elimination of the Hospital Security Program as
Hutchinson Health will be having that program in-house. In addition, there were several other
line -item reductions. Minor changes were made to the Capital Improvement Plan. With the
adjustments made, the proposed total levy increase from 2023 is 7.2%. All of this information
will be presented at the Truth in Taxation hearing next week.
The Council had favorable comments on the change in the proposed levy increase.
3. Adjournment
Motion by May, second by Czmowski, to adjourn the workshop at 5:00 p.m. Motion carried
unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator
MINUTES
CITY COUNCIL
TRUTH IN TAXATION HEARING
DECEMBER 5, 2023
1. CALL TO ORDER — 6:00 P.M.
Members Present: Mayor Gary Forcier, Pat May, Tim Burley and Chad Czmowski.
Member absent was Dave Sebesta.
Others present: Matt Jaunich, City Administrator, Marc Sebora, City Attorney, Andy
Reid, Finance Director, and Justin Juergensen, Assistant Finance Director
2. TRUTH IN TAXATION HEARING
Mayor Forcier opened the hearing at 6:00 p.m.
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich
explained the budget process the City has used to date. Four work sessions have been
held over the past seven months. The Council adopted the preliminary budget and tax
levy in September and recently truth in taxation notices were mailed to all City
property owners. Mr. Jaunich explained the purpose for tonight's hearing is to
enhance public participation in the property tax system by allowing a public forum to
discuss the budget, discuss the proposed tax levy, explain the increases and hear
public comments and questions on the budget and tax levy. If the hearing needs to be
continued it will be continued at the next Council meeting on December 12, 2023,
and the final budget and tax levy is expected to be adopted by the Council on
December 19, 2023. Mr. Jaunich noted that at tonight's hearing the Council discusses
the City's share of citizens' total 2024 proposed tax bill, not property valuations. Mr.
Jaunich explained that property valuation open book meetings are held in May/June
by McLeod County. Mr. Jaunich briefly explained valuations and noted that the
market value of a property is determined by January 2 of the year prior to the year in
which taxes on that property are due. Therefore, market values for taxes payable in
2024 were set in January 2023. Property values on statements recently received are
based off of home sales from October of 2021 to September of 2022. Property
owners will receive new notices of market values from the assessor in March/April of
2024. Questions on valuations should be addressed in May/June with the County
Assessor/County Board.
Mr. Jaunich explained that the preliminary tax levy set in September showed a tax
increase of 9.3% and included a balanced budget. The revised budget has reduced the
tax levy increase to 7.2% while maintaining a balanced budget. The City has adjusted
its revenue and expense projections and eliminated roughly $178,500 in taxes since
its preliminary budget was adopted in September.
Hutchinson's 2023 average City tax rate ranked the second lowest in McLeod
County, however ranked in the average range amongst other outstate regional centers.
The state-wide city average tax rate is 74.65% and Hutchinson is at 60.41%.
Hutchinson is the fourth lowest of all outstate regional centers for the poverty level,
5t1i highest of all outstate regional centers for median household income, 7'1i highest of
all outstate regional centers for median home value and is the fourth lowest of all
outstate regional centers in LGA payments. The 2024 state-wide proposed property
tax increase of cities is 8.4% and the 2024 state-wide proposed property tax increase
for all taxing agencies is 7.3%. Mr. Jaunich provided data on tax levy comparison to
tax base, price of government for the City of Hutchinson and a price of government
comparison.
Mr. Jaunich noted that there are 14 reasons property taxes vary from year to year.
These include: the market value of property may change; the market value of other
properties in the taxing district may change, shifting taxes from one property to
another; the State general property tax may change; the city budget and levy may
change; the Township budget and Ievy may change; the County budget and levy may
change; the School District's budget and levy may change; a Special District's budget
and levy may change; special assessments may be added to a property tax bill; voters
may have approved a school, city/township, county or special district referendum,
federal and state mandates have changed; aid and revenue from the state and federal
governments may have changed; the state legislature may have charged the portion of
the tax base paid by different types of properties; other state law change may adjust
the tax base. Mr. Jaunich also reviewed Minnesota's property tax system and how it
is based off of five components, those being: local property tax levies (city, school
district, county, etc.), property tax classification rates (ranges from 0.25% to 2.0% -
set by the state) property value (based off of property sales and is set by the county
assessor), tax credits (only certain properties get this) and state general tax (set by the
state and assigned to mainly commercial/industrial properties). Hutchinson's
property tax rate is set by taken& the city's tax levy and dividing it by its total tax
capacity. Tax capacity is determined by multiplying a property's market value by its
classification rate. Each property rate is assigned a classification rate depending on
its use by the State Legislature. Properties associated with income production
(commercial & industrial) have a higher classification weight than other properties.
The City's total tax capacity is an accumulation of all parcels within the city, minus
adjustments.
Mr. Jaunich then explained how the City's portion of a proposed tax bill is
determined. Mr. Jaunich shared four options that the Council is considering for the
tax levy that range from a 0% increase to a 9.3% increase. Mr. Jaunich noted that
with the proposed 7.2% levy increase that means a $131.00/ ear increase on a home
valued at $250,000. Mr. Jaunich also noted that even with a 0% levy increase, a
property owner's taxes would increase $46 due to the increase in valuation. Again,
this is the City's portion of the tax statement. Mr. Jaunich also explained the
homestead exclusion and market value history. He noted that apartment complexes
have seen the lamest market value growth over the last couple of years. Mr. Jaunich
reviewed the entities that share a Hutchinson tax bill those being the County, the
School (operating), the School (debt), the City, the EDA, the HRA and Region 6E.
Mr. Jaunich then reviewed the City's mission statement and seven core areas of
focus, which include public safety; health & recreation; transportation; economic
development; environment, good government and housing.
Mr. Jaunich reviewed the proposed tax levies for 2024 which includes a 7.2%
increase for the City's portion and a 5.7% increase for the EDA levy and a 2.8%
increase for the HRA levy, for a total tax impact increase of 7.1%. Mr. Jaunich
reviewed the 2024 debt levy and the tax levy comparison since 2016. The proposed
2024 tax levy includes the ninth straight year of an increase in the general fund
portion of the levy. The proposed 2024 tax levy includes the third straight year of an
increase to the debt fund portion of the levy (2.6%). Compared to 2014, the City's
total tax levy has increased by 35.2%. The average annual tax levy increase since
2014 has been 3.1%. The 2024 total tax levy accounts for a per capita tax of $617,
which is up from $589 in 2023.
Mr. Jaunich provided additional information on the City's tax rate such as: 1.) The
City's growth in tax ca acity (6.1%) continues to do well; 2.) This will be the first
time that the tax levy 1 7.2%) outpaces the tax capacity in 10 years, resulting in a
likely increased city tax rate; 3.) The median home value would see a $46 city tax bill
increase, based on an estimated 8.7% increase from $230,000 to $250,000 (a property
possibly might not see a city tax increase if its value does not increase at the same
rate as the median home value and a property valued at $230,000 in 2023 with the
same value in 2024 would see a $12 increase in its city tax bill). Mr. Jaunich also
provided data on the 10-year tax rate trend.
Mr. Jaunich reviewed the general fund revenues and expenses. Mr. Jaunich explained
that the general fund revenues include property taxes, other taxes, licenses &permits,
intergovernmental revenue, charges for service, fines & forfeitures, miscellaneous
revenue, and transfers -in. He noted additional facts on general fund revenues which
include: general fund revenues include a 9% tax levy increase ($523,685) - $25,000
of the levy is allocated to the Uponor tax abatement; property taxes account for
approximately 43% of the General Fund Revenues; the PILOT payment from HUC
increased by $38,092; there are increases in LGA and the Fire & Police Pension Aid;
includes a reduction in building permit fees ($50,000) and the loss of hospital security
revenue ($347,834); transfer -ins from the enterprise funds account for $2,812,628
which is the equivalent of a 48% tax levy increase; there is increased revenue from
higher interest rates; and a 1% tax levy increase to the general fund is equivalent to
$58,350. Total general fund expenses are comprised of wages & benefits, supplies,
services & charges, miscellaneous expenses, transfers -out and capital outlay. Public
safety accounts for 34.0% of general fund, 26.2% is general government, 22.6% is
culture and recreation, 15.2% is streets and highway and 2.0% is miscellaneous. Mr.
Jaunich noted the following: wages & benefits increased 3.7% for 2024 which
includes performance and other annual adjustments, a 25% increase in health
insurance costs, elimination of the hospital security and the removal of a full-time
Public Works position from the preliminary budget; wages and benefits account for
67% of general fund expenses; supply costs are going up due to higher costs
associated with inflation; departments have held budgets flat other than wages &
benefits and inflationary factors; and the 2024 budgeted expenses are balanced with
revenues.
Mr. Jaunich then reviewed the enterprise funds — consisting of the liquor, compost,
refuse, water, wastewater and stormwater funds. Mr. Jaunich noted that the Liquor
Hutch and Creekside continue to do well and will contribute $670,000 to the general
fund in 2024. There will be a 5% increase in garbage rates which is the first increase
since 2008. All enterprise funds continue to have healthy fund balances. There will
be a slight rate increase to stormwater rates of 3%. Transfers to the general fund from
the enterprise funds will be at $870,000 in 2024. Total enterprise money is
$2,812,628 when HUC money is included. Mr. Jaunich noted that capital needs are
due to the age of all of the facilities starting to increase.
Mr. Jaunich reviewed the 2024-2028 capital improvement plan. The capital
improvement plan is made up of infrastructure, enterprise funds, public safety, public
works, Park & Recreation, and general government and is approximately $69 million.
The approximate breakdown of distribution of the funds is as follows: $23.35 million
to infrastructure; $3.28 million to public safety; $19.99 million to Enterprise Funds;
$15.02 million to Public Works; $6.36 million to Park & Rec and $1.18 million to
General Government. Funds for the CIP come from new debt, enterprise funds,
taxes, special assessments, aids/grant, special funds/reserves and unfunded (no
current funding sources). Major capital items included in the capital plan are:
Creekside facility/equipment, water and wastewater improvements/equipment, water
meters, lakes/river improvements, street improvement projects, Uptown Grand
project, Fire Department parking lot, air cemetery, cemetery, Public Works
vehicles/equipment, civic arena improvements, library, playgrounds, VMF Stadium,
Park & Rec vehicles/equipment, fire facilities/equipment, police vehicle and City
Center improvements. Mr. Jaunich reviewed the debt management plan. The big
impact was the new police station. 2022 was the first increase in the debt levy since
2016. The 2024 increase is at a 2.8% increase. Increased interest rates have/will
impact future debt decisions. Rising project costs have put pressure on increasing the
debt tax levy. Debt levy has not kept up with inflation. Special assessment rates need
to be reviewed. The City still has future debt needs for heavy equipment and fire
trucks.
Mr. Jaunich reviewed that staff is recommending a 9.1% increase in general fund
revenue/expenses which means a 9.0% increase in the total general fund and a 2.8%
increase in the debt tax levy with an overall tax levy increase of 7.2%. With the EDA
tax levy proposed to increase 5.7% and the HRA tax levy proposed to increase 3.1%
the total tax impact is 7.1%. One of the biggest factors behind the levy increase is the
general wage and benefit increases along with a significant increase in health
insurance costs are expected to cost the City an additional $357,812 in 2024. General
inflationary factors are impacting the budget as well. Mr. Jaunich noted that outside
of eliminating the hospital security and not adding an additional public works
employee, the budget includes no other significant increases or cuts in staffmg or
changes in service. Staffing costs and capital needs are the biggest driver of the
City's budget. Fund balances continue to remain high and the fiscal condition of the
City is healthy. The State's budget forecasts are projecting a slight surplus meaning
the City shouldn't see any State budget issues impactorg the City. While things are
slowing down, home values continue to increase and the City is continuing to see
growth at all levels. Inflation and supply chain issues are impacting the City as well.
Bill Ask, owner of River Ridge Apartments/Carolina Avenue Apartments, presented
before the Council. Mr. Ask noted that his taxes in 2019 were $23,000 and now
they're over $50,000 so more than doubled in four years. Mr. Ask also commented
about the increase in water/sewer rates. Mr. Ask noted that the culmination of all of
the increases really effects his tenants, which are work -force tenants and work -force
rates. Mr. Jaunich noted that the increase in value of Mr. Ask's property is a big
factor in his taxes along with some other factors. Mr. Ask was encouraged to speak
with McLeod County about the valuation of his property as well as the portion of his
taxes that are McLeod County's.
Jim Lauer, 775 Laura Avenue SW, presented before the Council. Mr. Lauer asked
about the enterprise fund transfer -ins. He noted that it appears that revenues are less
than expenses in the enterprise funds so he asked where the money is coming from
for the transfers -in. Mr. Reid explained that this is mainly due to depreciation which
is expensed and shows a negative net revenue but is not a cash item. When
depreciation is pulled out the cash flow is positive which allows for the transfers to
the general fund. Mr. Jaunich explained that all the enterprise funds are all self-
sustaining and no general fund dollars go into the enterprise funds. Mr. Lauer asked
that more detailed information on the enterprise funds be presented at this hearing in
the future.
Mr. Jaunich noted that an update on the budget will be held at the December 12,
2023, City Council meeting and will be formally adopted at the December 19, 2023,
City Council meeting.
3. ADJOURN
Motion by May, second by Czmowski, to adjourn at 7:15 p.m. Motion carried
unanimously.
ATTEST:
Gary T. Forcier Matthew Jaunich
Mayor City Administrator
c� HUTCHINSON CITY COUNCIL
KJ 21 "11464srolk Request for Board Action
A CITY ON PURPOSE.
Resolution Designating Annual Polling Places
Agenda Item:
Department: Administration/Elections
LICENSE SECTION
Meeting Date: 12/12/2023
Application Complete N/A
Contact: M. Starke/M. Jaunich
Agenda Item Type:
Presenter: M. Starke/M. Jaunich
Reviewed by Staff ❑f
Consent Agenda
Time Requested (Minutes):
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
Minn. Stat. §20413.16 requires the City Council to designate its local polling places for elections
by December 31 st of each year. The polling locations have not changed as from what was
established last year and are as follows:
Precinct 1 - Ridgewater College - 2 Century Avenue SE (east entrance)
Precinct 2 - Days Inn - 1000 Hwy 7 West (east entrance)
Precinct 3 - Recreation Center - 900 Harrington Street
These polling places are also designated in Resolution 15664. Upon adoption of this Resolution,
the Council will not need to update the polling place resolution unless the City has a change in
polling locations or statute is changed.
BOARD ACTION REQUESTED:
Approve Resolution No. 15664 - Designating Annual Polling Places
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: New Bu
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
Resolution No. 15664
A RESOLUTION DESIGNATING ANNUAL POLLING PLACES
WHEREAS, it is important that citizens exercise their right to vote at their local
polling places; and,
WHEREAS, Minn. Stat. §204B.16 requires the City Council to designate its local
polling places for elections by December 31St of each year,
NOW THEREFORE BE IT RESOLVED that the City Council of the City of
Hutchinson, County of McLeod, State of Minnesota does hereby designate the following
locations as its polling places for all state and federal elections in 2024:
Precinct 1 (Ridgewater College, 2 Century Avenue SE)
Precinct 2 (Days Inn, 1000 Hwy 7 West)
Precinct 3 (Recreation Center, 900 Harrington Street)
BE IT FURTHER RESOLVED, that the city notify residents of this designation
by following the requirements of Minn. Stat. §205.16.
Adopted by the City Council this 12th day of December, 2023
ATTEST:
Gary T. Forcier, Mayor Matthew Jaunich, City Administrator
- HUTCHINSON CITY COUNCIL
- Request for Board Action
A C€TY ON PURPOSE.
Review & Approval of Snow Removal & Ice Control Policy Resolution No. 15665
Agenda Item:
Department: PW/Eng
LICENSE SECTION
Meeting Date: 12/12/2023
Application Complete N/A
Contact: John Olson/Mike Stifter
Agenda Item Type:
Presenter: John Olson/Mike Stifter
Reviewed by Staff ❑�
Consent Agenda
Time Requested (Minutes):
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
It has been two years since the last review of the Snow Removal & Ice Control Policy document.
It is the intent of Public Works to review this policy periodically, roughly every two or three years.
Public Works staff recommends some changes to the policy that can be described as
administrative. These changes include updating descriptions, titles, terminology, etc. There also
are some improvements to word order, punctuation, and corrections to tense, along with other
minor changes to improve understandability.
Public Works staff will be available to address any questions.
BOARD ACTION REQUESTED:
Request adoption of Resolution 15665 a resolution adopting modifications to the City's Snow Removal
and Ice Control Policy.
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: New Bu
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
Resolution No. 15665
A RESOLUTION ADOPTING THE CITY'S
SNOW REMOVAL AND ICE CONTROL POLICY
WHEREAS, Minnesota Statutes, Section 412.221 and the City Charter authorizes the City to
maintain City streets; and
WHEREAS, the City Council finds that it is in the best interest of the residents, businesses and
industries for the City to assume basic responsibility for control of snow and ice on City streets; and
WHEREAS, The City Council finds that the City would be best served to have a policy addressing
snow removal and ice control; and
WHEREAS, a Snow Removal and Ice Control Policy has been developed and recommended by
City staff, and
WHEREAS, the City Council finds that adoption of said policy is in the best interest of the City,
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota that
said Snow Removal and Ice Control Policy is hereby approved and adopted.
Dated this 12" day of December, 2023.
By:
Gary Forcier, Mayor
Attest:
Matthew Jaunich, City Administrator
u00
HUTCHINSON
A CITY ON PURPOSE.
City of Hutchinson
Snow Removal and Ice Control Policy
December, 2023
City of Hutchinson
Snow Removal and Ice Control Policy
Purpose of this Policy
The City of Hutchinson recognizes that assuming basic responsibility for snow removal and ice control on
City streets and at City facilities is in the best interest of the residents, businesses and industries of
Hutchinson. Providing reasonable snow removal and ice control is necessary for emergency,
commercial, and personal travel. The City strives to provide this service in a timely, safe, and cost-
effective manner; keeping in mind safety, budget, personnel, equipment and environmental concerns.
The City will primarily use its own personnel and equipment to provide this service, but may also, when
necessary or beneficial, use private contractors.
This policy does not relieve vehicle operators or those that may otherwise be affected by snow removal
operations of their responsibility to act in a reasonable, prudent and cautious manner, given the
prevailing weather and pavement conditions.
Responsibility and Authority for this Policy
The Public Works Department is charged with the primary responsibility for executing snow removal and
ice control operations and for exercising the appropriate levels of authority to ensure maintenance and
compliance with this policy.
(In this document the title Public Works Department includes the qualified Public Works employee
designated by the Director to oversee snow removal and ice control operations. This position is typically
assigned to a senior operations manager, but may from time to time be assigned to another experienced
Public Works employee in the absence of a senior operations manager.)
The Public Works Department is responsible for coordinating equipment and personnel, assigning them
work based on the need for snow removal and ice control within the City. The Public Works Department
retains the authority to alter assignments based on weather conditions, equipment and personnel
availability and on other conditions related to snow removal/ice control. The Public Works Department
can declare a snow emergency for the purpose of restricting on -street parking (Appendix A). As
necessary, the Public Works Department can enlist the assistance of City employees or equipment not
usually assigned to snow removal responsibilities and hire contractors to provide snow removal services.
In cooperation with emergency services personnel, the Public Works Department continuously monitors
weather conditions to determine appropriate action.
Priorities for Service
Snow removal and ice control services will be generally provided using these priorities:
1st priority:
Priority routes and central business district areas with no boulevard
2nd priority:
Other business districts, truck routes and the airport
3rd priority:
Through streets and specifically identified public properties
4th priority:
Cul-de-sacs, dead-end streets and alleys
5th priority:
Specifically identified sidewalks, trails and walkways
last priority:
Other public property and maintenance activities.
These priorities will apply to nearly every snow removal and ice control operation. However, the Public
Works Department has the authority to adjust or deviate from these priorities, should conditions
warrant.
Policy Provisions
1) Initiating Operations: Commencement of snow removal and ice control operations depends upon
immediate and anticipated conditions. The Public Works Department generally initiates snow removal
and ice control operations when one or more of these conditions exist:
a) weather conditions do not endanger the safety of employees, contractors or equipment.
b) operations will be effective.
c) there are at least two inches of snow accumulation.
d) significant blowing and drifting of snow into traveled portions of major roadways and
intersections has occurred.
e) rainstorms, ice storms, and/or periods of light snow create slippery conditions — efforts
during these situations will be concentrated on major roadways, bridges, steep grades and
heavily traveled intersections.
Operations may be initiated any time the operations are deemed to be beneficial on either a short-term
or long-term basis.
2) Suspension of Operations: The Public Works Department may suspend operations at any time if
temperatures, winds, visibility, and/or precipitation make operations unsafe, ineffective or unnecessary.
3) Staffing Operations: Snow removal and ice control operations may occur during assigned work shifts
or, in some situations, on a call -out of operators. The Public Works Department has the discretion to
recall operators or wait until the next assigned work shift to respond to specific snow removal or ice
control service requests. For safety reasons, operators of snow removal and ice control equipment will
generally not be scheduled to work more than 12 hours in any 24-hour period with less than nine (9)
hours off between work shifts.
4) Response to Emergencies: Emergency services officers may contact the Public Works Department to
dispatch operators and equipment to provide services for emergency vehicles responding to
emergencies within the City (i.e., police, fire, ambulance, electrical outages, gas leaks, utility restoration,
etc.).
5) Routes: Each year the Public Works Department prepares a map of the street and sidewalk/trail
systems serviced by the City. These systems are divided into route areas that identify personnel and
equipment or, if necessary, private contractors used to provide services. Route areas are periodically
revised to correspond with budget, equipment, personnel and other resources available to the City.
Priority routes are identified within each route area. Hazards are also identified in each route area.
These route areas are generally assigned to individual operators and are used for planning and executing
routine snow plowing and ice control operations.
6) Methods: Snow is generally plowed in a way that reduces traffic obstructions and the effect of future
snowfalls. Generally, snow will be plowed from the center of the street outward toward the curb line so
the snow discharges onto the boulevard. Some streets may be plowed from one side of the street to
the other. Snow may also be moved to the center or side of the street to be hauled away later. Cul-de-
sacs and dead-end streets will generally be plowed to the outside. When plowing on bridges, operators
will adjust their speed to reduce or eliminate any snow going over the side of the bridge.
As necessitated by available resources, snow is plowed to the edge of the street without regard for
sidewalks, driveways and other structures located in the right-of-way. The City recognizes the
inconvenience that comes from accumulations on rights -of -way, sidewalks and driveways, but the City is
not responsible for removing snow from rights -of -way, private driveways, most sidewalks or from
private structures located in the right-of-way. Snowplowing is done on specifically identified
sidewalks/trails on a priority basis. Snow may be removed from areas other than the central business
district where no boulevard exist only at the direction of the Public Works Department.
The City recognizes that snowplow operators are exempt from traffic regulations set forth in Minnesota
Statutes, Chapter 169 while actually engaged in work on streets, except for regulations related to driving
while impaired and the safety of school children. Pursuant to this authority, snowplow operators have
discretion to disregard traffic laws, when required for their work and when, in the operator's judgment,
it is safe to disregard such laws, provided such actions comply with the Public Works policy entitled
Operation of Road Maintenance Equipment (Appendix B).
7) Expected Minimum Levels of Service:
The following represents the minimum levels of services that can be expected. The City strives to achieve
better results whenever possible:
I.) It is the City's intent to keep designated priority routes open to traffic, if possible, during a storm or
have them open to traffic as soon as possible after snow accumulation has subsided. 'Open to traffic'
means there is a lane available for cars to travel on; the term does not necessarily mean the street has
been plowed from curb to curb.
II.) As many routes as possible that serve business areas and densely populated residential areas are to
be open to traffic within 12 hours after snow accumulation subsides.
III.) Through streets are to be open to traffic within 36 hours after snow accumulation subsides. All
public streets are to be open to traffic within 48 hours, unless snow accumulation is of such depth as to
require removal. Every public street, alley and parking lot is to be opened to normal, functional traffic
patterns within four days after snow accumulation subsides.
IV.) Where space does not allow for snow to be moved from traffic lanes to storage on the adjacent
boulevard, the City may pile snow and haul it away. Snow may be stored in strategic locations for a time
before the snow is hauled away.
V.) Significant accumulations of snow on bridges will be removed. Removal of snow from bridges will
begin only after all City streets, alleys and parking areas have been serviced and normal, functional
traffic patterns have been restored. Because of safety considerations, this task will normally be done
during daylight hours.
VI.) Snow may be removed from selected critical intersections, away from fire hydrants and from other
utility appurtenances requiring access. These services will begin only after all City streets, alleys, parking
areas and bridges have been serviced. Snow may also be removed from boulevards and along curbs.
Because of safety considerations, these tasks will generally commence during daylight hours.
Priority Snow Removal Routes: The following are designated priority routes:
Name of Street
From:
To:
2"d Ave SW/SE
Dale St SW
Michigan St SE
5th Ave NE/NW
Montana St NW
Bluff St NE
5th Ave SW/SE
Lynn Rd SW
T.H. 22
California St NW
Highway 7
School Rd NW
Century Ave SW/SE
Dale St SW
Jefferson St SE
Dale St SW
School Rd SW (Co Rd 7)
2nd Ave SW
Echo Dr SW
Freemont Ave SW
Highway 15
Edmonton Ave SW/SE
Dead end
Grant Ave SE
Elm St NE
McLeod Ave NE
North High Dr NE
Freemont Ave SW
Highway 15
Dead-end
Golf Course Rd NW
North High Dr NW
Montana St NW
Name of Street
From:
To:
Jefferson St SE
Airport Rd
Washington Ave E
Lynn Rd SW
Hwy 15 Exit
Washington Ave W
McDonald Dr SW
Lakewood Dr SW
School Rd SW
McLeod Ave NE/6`h Ave NE
Highway 15
Bluff St NE
Michigan St SE/NE
5th Ave SE
Highway 7
Oakland Ave SE/TH 15 Service Rd
Freemont Ave SW
Adams St SE
Roberts St/Rd SW
McDonald Dr SW
Dale St SW
School Rd SW/NW
South Grade Rd SW
North High Dr NW (Co Rd 12)
Shady Ridge Rd NW
Highway 7
7th Ave NW
Sherwood St SE
Airport Rd
Century Ave SE
South Grade Rd SW
Underwood Ave
Highway 15
Sunset St SW
Century Ave SW
South Grade Rd SW
Downtown (areafrom/to)
Lynn Rd SW
Adams St SE
5th Ave SW/SE
5th Ave N
Cnnrl nnrl rmit
The City does not have a bare pavement policy. General snow pack remaining on City streets will not
normally be removed.
Sanding operations are initiated to provide some temporary relief from skidding. Salt may be applied to
melt ice on streets. Application of sand is generally limited to intersections, hazardous areas and
isolated slippery areas. Sand will be applied at times and at rates that maximize effectiveness. Salt is
mixed with sand to prevent the sand from freezing, but may also be added to melt ice/snow when
weather conditions are suitable. The Public Works Department may order use of additional salt if
pavement or air temperatures and precipitation type warrant use of additional salt for melting ice and
snow. The Public Works Department may also order use of salt brine to pre -treat, enhance operations
or provide additional ice and snow melting capabilities.
The Public Works Department may use other minerals, chemicals and mixtures to assist in ice control,
provided they are deemed to have fewer or the same effect on the environment as sand and salt
mixtures and are economically feasible.
Municipal Parking Lot Snow Removal
There is no parking in municipal parking lots between 2 a.m. and 6 a.m. However, there are some
municipal parking lots with designated overnight parking spaces, which are exempt from the 2 a.m. to 6
a.m. restriction. Designated overnight parking spaces are identified with signage.
Parking permits are available from the Police Department. It is recommended that drivers get a permit
for vehicles regularly parked in designated overnight parking stalls located within municipal parking lots.
These permits are optional, but they provide contact information helpful for vehicle owners to avoid the
expense of having their vehicles towed if they are parked in violation of signposted restrictions.
Whenever possible, snow in designated overnight stalls will be removed at the same time as the rest of
the parking lot. When that is not possible, subsequent operations during daylight hours using smaller
equipment may be employed to remove snow from designated overnight stalls.
If it becomes necessary to remove snow from designated overnight parking stalls during overnight
hours, existing overnight signs will be replaced with a temporary sign. The temporary sign prohibits
parking in overnight stalls, but allows parking in other areas of the parking lot between 2:00 a.m. and
6:00 a.m. These temporary signs are posted prior to 10:00 a.m. the morning prior to work beginning.
Once posted with the temporary signs, parking restrictions in overnight stalls begin immediately and
continue until snow has been removed from the designated overnight stalls and the temporary signs
have been removed. Once the temporary signs are removed, overnight parking is once again allowed
only in designated stalls.
Snow Removal on Sidewalks, Trails & Walkways ("Sidewalks")
It is the responsibility of the adjacent property owner, using due diligence, to keep sidewalks clear and
to maintain a four -foot (4') walkway for pedestrian travel.
The City has identified certain sidewalks that may receive some snowplowing services from City
operators and equipment. These services are provided at the City's discretion, on a priority basis and do
not relieve property owners of their responsibility to clear and maintain a four -foot (4') walkway for
pedestrian travel.
The City does not maintain a bare pavement policy, neither for roadways nor for sidewalks. The City will
not utilize abrasives or chemicals when maintaining sidewalks.
Sidewalks identified by the City will be plowed in a manner that may result in a double windrow on
some driveways or accesses. The City is not responsible for removing windrows left by sidewalk
snowplows. When snow blowers are utilized to clear snow, the discharge may be directed away from
the street or boulevard onto private property.
Sidewalks serviced by the City are done on a four -tiered priority system. If new snowfall occurs at any
time during the process of clearing identified sidewalks, the process restarts with the highest priority.
This often results in delayed service for lower priority sidewalks.
Snow remaining on sidewalks 24 hours after snow has stopped falling, including snow that was plowed
from public streets onto the sidewalk, is a public nuisance. The City may notify property owners that
their property is in violation. Beginning 12 hours after notification, City crews or contractors may clean
sidewalks, trails and walkways and bill adjacent property owners for that service. Unpaid bills will be
certified to the County for collection with property taxes.
The Luce Line state trail is not under the City's jurisdiction and therefore is not maintained by the City.
The Minnesota Department of Natural Resources establishes maintenance policies for the Luce Line
trail.
Snow Disposal Sites
Municipal sites
Snow disposal sites established by the City shall not be used by private parties.
Publicly accessible snow disposal site
A publicly accessible snow disposal site is located on City property north of the Hutchinson Armory,
1200 Adams St SE. Private parties may use this site free of charge. The City will provide no services at
this site, except to address its own use of the site, so close cooperation between private parties is
encouraged to ensure snow is dumped and piled in an orderly fashion to maximize use of the site. This
site is the only City snow disposal site that private parties shall use.
When the site at 1200 Adams St SE can no longer be used, the City will establish an alternate publicly
accessible disposal site. Signs will be posted at the Adams St SE site directing private parties to the new
snow disposal site.
Snow Removal on Private Properties
It is a violation of Minnesota statutes and local ordinances to move snow from private properties onto
or across public roadways. Property owners engaging in or allowing these activities are subject to the
consequences of the statutes and ordinances.
Private Contractors Providing Snow Removal Services
Permits for private snow removal contractors are required by ordinance. The City does not require
private contractors to obtain a written permit from the City, but their activities are still considered to be
permitted.
If a private contractor violates statutes, ordinances or policies related to snow removal, the City Council
can suspend their privilege of conducting snow removal business within the City.
Damage to Property
Snow removal and ice control operations can cause damage to property, even under the best
circumstances and care by equipment operators. Most damage occurs to property improvements in the
right-of-way, which generally extends 10 to 15 feet beyond the edge of street pavement.
The City is not responsible for damage to vegetation caused by plowing or the application of sand and
salt mixtures. The City will not repair or compensate residents for repairing damaged vegetation. In
certain cases, the City may clean up dead sod and over -seed areas in rights -of -way or on private
property. Sod will not be used on public rights -of -way.
Residents are encouraged to remove excess sand, dispose of the sand properly and thoroughly flush
areas that may be affected by sand and salt mixtures.
Only allowable and properly installed properties that are damaged by actual, physical contact with City
equipment will be considered for repair at City expense.
Personal property in the City's right-of-way damaged by snow being deposited from an accumulation on
the blade of a snowplow will not be considered for compensation. The City Council has the authority to
set reasonable maximum compensation limits for specific types of personal property placed in rights -of -
way.
When disagreement about the responsibility for the damage occurs, the Public Works Department will
investigate and determine responsibility. In certain cases, where there is significant damage, the Police
Department may be called to investigate. As always, property owners may bring their concerns to the
City Council.
Equipment operators and contractors are directed to immediately contact the Police Department and
the Public Works Department whenever an incident involves a damage to vehicles, significant
structures, or involves any injury to a person.
Equipment operators and contractors also report existing damage they observe to avoid any potential
future claim the damage was caused by snow removal or ice control operations.
Mailhnxaq
Mailboxes are a common obstacle that snowplow operators face. If mailboxes are damaged by
equipment operators, the City may install a temporary replacement until weather conditions are
conducive to complete repairs to the damaged mailbox.
The City will conduct a review of each mailbox incident to determine whether the City will repair,
replace or provide reimbursement for the mailbox. Only mailboxes actually hit by a snowplow will be
the responsibility of the City. The City will not be responsible for damage to mailboxes or support posts
caused by snow or ice coming in contact with the mailbox.
The City will replace damaged mailboxes with a standard size, non -decorative metal or plastic mailbox
and replace the support post, as necessary, with a 4"x4" decay resistant wood support or standard
galvanized post/tube support installed by the City. If the owner desires a mailbox configuration other
than the City's standard, the City will reimburse the mailbox owner for expenses, up to the maximum
rate identified in the City's Fee Schedule for the replacement of a mailbox and post (Appendix C).
Other Entities
Certain streets within the City are maintained by other governmental entities. The Minnesota
Department of Transportation and the McLeod County Public Works Department have separate
maintenance policies for streets within the City maintained by them.
From time to time, entities may contract with each other to perform snow removal services. The
ultimate responsibility for snow removal services rests with the controlling entity.
Others maintain these streets:
Name of Street
From:
To:
Entity:
Highway 15 S/Main St S/
South city limit
North city limit
Mn/DOT
Main St N/ Highway 15 N
Highway 7 W/4th Ave NW/
West city limit
East city limit
Mn/DOT
4th Ave NE /Highway 7 E
Adams Street
South city limit
Highway 7 E
McLeod Co
Bluff St NE
Highway 7 E
North city limit
McLeod Co
North High Dr NW/NE
West city limit
East city limit
McLeod Co
School Rd SW
South city limit
South Grade Rd SW
McLeod Co
Emergency Services
The City of Hutchinson has several relationships with surrounding areas concerning emergency services.
For that reason, emergency services dispatchers and officers are responsible for making requests for
snow removal and ice control services from the appropriate jurisdiction.
Service to Private Property
City personnel and personnel contracted by the City do not provide snow removal and ice control
services to private properties. Services on private property may, however, be provided with the
permission of property owners in situations where City operations directly benefit. Snow removal
operations may be conducted on any private property when emergency vehicles responding to a call for
service require access to private property.
Any operations on or services provided to private property are authorized by the Public Works
Department or are provided at the request of an emergency services officers responding to a call.
Requests for Services and Complaints
Requests for service and complaints regarding snow removal and ice control operations will be taken
during normal working hours. questions not able to be answered by administrative staff will be
forwarded to the Public Works Department. Requests for service and other problems are handled in
priority order, in keeping with personnel, equipment and materials available. Services are prioritized
and provided at the discretion of the Public Works Department.
Review of this Policy
This policy will be reviewed periodically. Comments and complaints regarding this policy received since
the last review will be considered during each review. Input from City employees and contractors,
members of the public, and other affected parties will be considered. Final revisions to the policy are at
the discretion of the City Council.
Appendix A
Declaration ❑f Snow Emergency; Parking Prohibited
City Code § 72.15
DECLARATION OF SNOW EMERGENCY; PARKING PROHIBITED.
(A) The City Administrator or other designated official may declare a snow emergency in the city. The
emergency shall be declared by 4:00 p.m. and shall take effect later that same evening at 12:00
midnight. The snow emergency shall continue to be in effect for 24 hours.
(B) Notice of the declaration of a snow emergency shall be given by notifying the local news media;
however the notification shall be a service right only and not a duty on the part of city officials.
(C) During a declared snow emergency, no motor vehicle shall be parked on any street or alleyway in
the city between the hours of midnight and 7:00 a.m. except as otherwise posted.
(D) During a declared snow emergency, any police officer is authorized to have a motor vehicle which
is parked in violation of this section removed at the owners' expense.
(Ord. 09-0536, passed 12-22-09)
To comply with the ordinance, it is the intent of Public Works to follow the procedure outlined below
when declaring a snow emergency:
As soon as practicable but prior to 4:00 p.m. each day, a decision will be made in accordance
with the existing Snow/ice Policy and Ordinances as to whether notification of a snow
emergency for purposes of imposing parking restrictions for upcoming snow/ice maintenance
activities is necessary.
2. If weather conditions warrant a snow emergency declaration, notification will be sent, via email,
to:
a. KDUZ/KARP radio stations
b. HCVN Cable Channel 7 & 10 television stations
c. Hutchinson Leader website
d. City of Hutchinson website/social media platforms
e. Designated City staff
In addition, Public Works staff will provide these additional notifications:
f. Notification of personnel involved in snow removal
g. Updating a message on a dedicated telephone message line
h. Updating/initiating any other current or future notification systems that may be
implemented
During snow emergencies, parking is restricted on City streets and alleyways between the hours of 12:00
a.m. midnight and 7:00 a.m., except as otherwise posted.
Once a snow emergency is declared, parking restrictions begin at 12:00 a.m. midnight and are in effect
for the following 24-hour period. During this 24-hour period, parking is restricted between the hours of
12:00 a.m. midnight and 7:00 a.m. Parking is restricted regardless of whether streets have been plowed.
Existing parking regulations, where posted, are enforced during snow emergencies.
If necessary, a snow emergency may be declared on successive days, prior to the end of the previously
announced 24-hour period. Each time a snow emergency is declared, the 24-hour period and related
parking restrictions begins again.
Issues identified by City operators engaged in snow removal shall be reported to the senior Public Works
employee, who shall report to the Police Department.
The intent is to use snow emergencies judiciously, considering current and expected weather conditions,
precipitation type/accumulation, timing of the storm and planned maintenance activities. Generally, a
snow emergency will be declared after four inches of snow, for periods of severe drifting and/or for the
necessity of treating roadways for severe slippery conditions.
Appendix B
Operation of Road Maintenance Equipment
The goal of all road maintenance operations is effectiveness and safety. Minnesota statutes give
considerable leeway to equipment operators engaged in road maintenance. State statutes recognize
the unique circumstances equipment operators encounter while performing road maintenance.
When engaged in snow and ice control or flood control work, equipment is exempt from standard size
and weight restrictions. Operators are never exempt from statutes regulating driving under the
influence or operations around school busses and in school zones.
Minnesota Statute §169.035
Subdivision 1. Working on highway. (a) The provisions of this chapter shall not apply to persons, motor
vehicles, and other equipment while actually engaged in work upon the highway, except as provided in
paragraphs (b) and (c).
(b) This chapter shall apply to those persons and vehicles when traveling to or from such
work, except that persons operating equipment owned, rented or hired by road authorities shall
be exempt from the width, height and length provisions of sections 169.80 and 169.81 and shall
be exempt from the weight limitations of this chapter while performing the following actions on
behalf of the state or a local governmental unit:
(1) while loading, readying, or moving the vehicles or equipment in preparation
for combating anticipated slippery road conditions or removing snow or ice;
(2) while actually engaged in snow or ice removal or combating slippery road
conditions, including but not limited to pretreatment and anti -icing activities; or
(3) while engaged in flood control operations.
(c) Chapter 169A and section 169.444 apply to persons while actually engaged in work upon
the highway.
The City has established the following guidelines that affect operation of maintenance equipment for
snow removal operations. The City does recognize that, while performing road maintenance, there will
be times when it is not feasible to comply with standard traffic control regulations. In those cases,
operators are expected to perform operations with caution and proceed only after consideration is
given to the safety of the operation.
Unless specifically stated below, all trucks hauling snow during snow removal operations shall comply
with all State traffic regulations.
e) All standard safety devices on the vehicles shall be functional prior to operating and shall be
used during operations.
f) When actively being loaded with snow, contract snow haulers shall perform functions under the
direction of the snow blower operator loading the truck.
g) Snow haulers, when actively engaged in hauling snow whether full or empty, may stop at red
traffic signals and proceed with caution if there is no oncoming traffic. When moving from one
work site to another, such as from downtown to the Civic Arena, operators shall comply with all
Minnesota Traffic Statutes.
h) When actively engaged in removing snow while crossing Main Street, contract snow haulers
may engage in blocking other traffic to allow the snow blower and other trucks to cross Main
Street safely.
i) Any action determined to be necessary by the operator to avoid an accident or to mitigate
damage or injury that may result.
Contractors are covered by this Minnesota State statute and City of Hutchinson policy only when
actively engaged in work for the City of Hutchinson.
Appendix C
City of Hutchinson
Public Works Department
Mailboxes
St-m-ral
Installation of mailboxes on City -owned rights -of -way is permitted. The mailbox owner assumes all risk
of damage, except when a mailbox is damaged by direct contact with City -owned equipment.
Coming in to contact with a mailbox is a common obstacle that operators face while performing their
tasks. If mailboxes are damaged, the City may install a temporary replacement until weather conditions
are conducive to repair.
Mail delivery
City operators make every effort to perform tasks as close to the curb line as possible to provide access
to mailboxes. It is not always possible to provide the necessary clearance, considering the size and types
of equipment used. Final cleaning adjacent to mailboxes is the responsibility of the property owner.
Damage to mailboxes
Mailboxes damaged by direct contact from City equipment will be considered for compensation at City
expense.
The City conducts a review of each mailbox incident to determine responsibility for repair. Damage to
mailboxes from materials, such as snow and ice, etc. that are discharged onto the right-of-way will not
be considered for compensation.
Mailbox repair
For mailboxes damaged by direct contact from City equipment, property owners may make repairs and
provide an itemized statement of the costs of the repair. The City will reimburse the property owner for
those expenses up to the maximum amount established by the City Council in the City's most recent Fee
Schedule.
If the property owner wants the City to repair the mailbox, property owners may select from one of
three standard options. The City will not provide mailboxes other than these three options: 1) Standard
pipe swing -away; 2) 4x4 treated wood post; 3) Plastic, post -mounted (see attached sheet).
In any case, property owners are responsible for mounting newspaper boxes adjacent to, not under, the
mailbox.
I
I
I
I
I
42"-48" Typical
48" Recommended
Standard galvanized,
flanged channel sign post
& pipe mailbox support
Standard 4" x 4"
treated wood post
mailbox support
Standard plastic slip-
over post mailbox
support
Fasten newspaper box to filler board on
the side of the mailbox. DO NOT mount
newspaper box below mailbox.
Appendix D
City of Hutchinson
Public Works Department
Planning Checklist
PRE -SEASON
• Seek out and arrange for training opportunities for operators
• Repair, prepare and transition equipment for snow season
• Review routes, update routes in tracking software
• Assign operators to routes
• Assign equipment to routes
• Preseason review of activities to address new infrastructure or development
• Review materials to be used for snow removal/ice control
• Review and execute intergovernmental snow removal/ice control agreements
• Contracts for snow removal/ice control services (e.g., snow hauling)
• Review equipment rates for snow removal on MnDOT streets
• Snow removal/ice control meeting with operators
• Provide for public awareness of smart salting practices
• Review and advertise snow -related ordinances, snow emergencies, etc.
OPERATIONS
• Monitor weather
• Communicate snow removal plans with leadership
• Review and address site -specific practices to enhance safety or improve service
• Identify and establish criteria for regular snow removal at small stockpile sites
• Coordinate intersection cleaning with utilities (electric, phone, cable...}
• Update and address recurring, post -event cleanup schedules
• Public outreach, school events, community events...
• Reporting incidents that are or may become a claim against the City
• Property damage claims (sod, mailboxes, etc.)
• Enforcement communications with property owners
• Sand -salt use reporting and billing
• Emergency management recordkeeping
• Monthly reporting to City Council
• Establish additional snow storage sites, as necessary
POST -SEASON
• Identify and perform needed equipment repairs
• Repair property damages (sod, mailboxes, etc.)
• Clean up snow storage sites
• Reconcile shared use of equipment with MnQOT & McLeod County
• Reconcile shared use of materials with MnDOT & McLeod County
Planning Checklist (cont.)
Service levels:
MnDOT & priority County routes Bare pavement
Remaining County & some City priority routes Bare wheel paths
Remaining City priority routes Plowed and treated
Remaining City routes Plowed to snowpack
WINTER PAVEMENT CONDITION
DEFINITIONS
Bare Pavement
ioll' I
f _
i t �
Plowed and Treated
Bare Wheel Paths
Plowed to Snowpack
'Final winter pavement conditions are defined by each agency based on their own service goals, budgets, and policies.
cR HUTCHINSON CITY COUNCIL
I � :114I14sick Request for Board Action
A CITY ON PURPOSE.
AUTHORIZATION FOR INTERFUND LOAN IN CONNECTION WITH TAX
Agenda Item: INCREMENT FINANCING DISTRICT 4-23
Department: EDA
LICENSE SECTION
Meeting Date: 12/12/2023
Application Complete N/A
Contact: Miles R. Seppelt
Agenda Item Type:
Presenter: None
Reviewed by Staff ❑�
Consent Agenda
Time Requested (Minutes): 0
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
When the City establishes a new tax increment financing (TIF) district there are assorted costs
incurred for legal and financial consulting related to setting up the new TIF district. These are
covered by a combination of a TIF Application Fee paid to the City by the developer and/or tax
increment generated by the new TIF District.
Because there is typically a 1-2 year lag time before the new district starts generating tax
increment, it is sometimes necessary to borrow internally to pay the various TIF consultants for
their work.
This inter -fund loan is for an amount not to exceed $25,000 and will be borrowed from the
Economic Development Loan Fund at an interest rate of 4%. As tax increment from TIF District
4-23 comes in, the loan will be repaid.
If you have any questions or need additional information, please give me a call anytime at
234-47223.
BOARD ACTION REQUESTED:
Authorization for the inter -fund loan.
Fiscal Impact: Funding Source:
FTE Impact: Budget Change:
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
Council member
adoption:
CITY OF HUTCHINSON
MCLEOD COUNTY
STATE OF MINNESOTA
introduced the following resolution and moved its
RESOLUTION NO. 15667
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN
COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO.4-23.
BE IT RESOLVED by the City Council (the "Council") of the City of Hutchinson, Minnesota (the
"City"), as follows:
Section 1. Background.
1.01. The City has approved the establishment of Tax Increment Financing District No. 4-23 (the
"TIF District") within Development District No. 4 (the "Project Area"), and has adopted a Tax Increment
Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project.
1.02. The City has determined to pay for certain costs in the Project Area and identified in the TIF
Plans (collectively, the "Qualified Costs"), which costs may have been financed on a temporary basis from
City funds available for such purposes.
1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan
money from the City's general fund or any other fund from which such advances may be legally authorized,
in order to finance the Qualified Costs.
1.04. The City intends to reimburse itself for the Qualified Costs from tax increments derived from
the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as
the "Interfund Loan").
Section 2. Terms of Interfund Loan.
2.01. The City hereby authorizes the advance of up to $25,000 from the Economic Development
Loan fund or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself for such
advances from Available Tax Increment (defined below) together with interest at the rate of 4%, which does
not exceed the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as
of the date the loan is authorized. Interest accrues on the principal amount from the date of each tranche.
2.02. Principal and interest ("Payments") on the outstanding Interfund Loan balance shall be paid
annually as of December 31 of each year (the "Payment Date"), commencing on the first Payment Date on
which the City has Available Tax Increment (defined below), or on any other dates determined by the City
Administrator, through the date of last receipt of tax increment from the TIF District.
2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which
shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as
determined by the City Administrator, generated in the preceding twelve (12) months with respect to the
property within the TIF District and remitted to the City by McLeod County, all in accordance with
Minnesota Statutes, Sections 469.174 to 469.1799, all inclusive, as amended. Payments on this Interfund
Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part
with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured
in whole or in part with Available Tax Increment.
2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre -payable
in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect
the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan.
2.05. This Interfund Loan is evidence of an internal borrowing by the City in accordance with
Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax
Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon
shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision
thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision
thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident
hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the
State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest
on this Interfund Loan or other costs incident hereto. The City shall have no obligation to pay any principal
amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment
Date.
2.06. The City may modify or amend the terms of this Interfund Loan at any time by resolution of
the City Council, including a determination to forgive the outstanding principal amount and accrued interest
to the extent permissible under law.
Section 3. Effective Date. This resolution is effective upon the date of its approval.
The motion for the adoption of the foregoing resolution was duly seconded by Council member
, and upon a vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
Dated: December 12, 2023
ATTEST:
Gary Forcier, Mayor Matthew Jaunich, City Administrator
(Seal)
- HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
RESOLUTION NO. 15668 SUPPORT FOR GREATER MINNESOTA
Agenda Item: TRANSPORTATION ALTERNATIVES GRANT
Department: PRCE/Public Works
LICENSE SECTION
Meeting Date: 12/12/2023
Application Complete N/A
Contact: Lynn Neumann/Mike Stifter
Agenda Item Type:
Presenter: n/a
Reviewed by Staff ❑�
Consent Agenda
Time Requested (Minutes): 0
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
The Resource Allocation Committee, Public Works and PRCE staff have identified a potential
need for a trail section off of 8th Avenue to the School Campus trail system. This trail would
finalize the trail system around the school campus and help with the Safe Routes to School. This
is a joint project between the City of Hutchinson and Hutchinson Public Schools. A portion of the
project will be on city property while the other portion of the project will be on the school campus.
Local monetary contribution for this grant will be shared between the City of Hutchinson and
Hutchinson Public Schools.
The Greater Minnesota Transportation Alternatives announced grant money availability this fall
for eligible projects for 2028 funding. Staff have reviewed the 8th Avenue Trail Expansion Project
and feel this particular project would be a good candidate for eligibility. Funding for this grant is
for year 2028. As part of the grant application a Resolution of Support is required. 2023/2024 Full
Grant Applications are due Friday, January 12, 2024.
BOARD ACTION REQUESTED:
Approve Resolution No. 15668 for Support for the Greater Minnesota Transportation Alternatives Grant
Application.
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: No 0
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
RESOLUTION NO. 15668
GREATER MINNESOTA TRANSPORTATION ALTERNATIVES GRANT
SUPPORT FOR GRANT APPLICATION
WHEREAS, the City of Hutchinson is committed to the development and maintenance of a
comprehensive trail system that contributes to the well-being of our community; and
WHEREAS, the Greater Minnesota Transportation Alternatives Grant presents a valuable
opportunity to secure funding for the improvement and expansion of our city's trail network; and
WHEREAS, the City of Hutchinson has thoroughly reviewed the requirements and objectives of
the Greater Minnesota Transportation Alternatives Grant and is committed to fulfilling the
necessary obligations to ensure the successful implementation of the 81h Avenue Trail Project;
and
WHEREAS, the City of Hutchinson, Minnesota is making an application for funding under the
2023/24 Greater Minnesota Transportation Alternatives grant in the amount of up to $200,000.00
for funding in year 2028; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF HUTCHINSON,
MINNESOTA:
The City of Hutchinson agrees to act as a sponsoring agency for the project identified as 8t'
Avenue Trail Project seeking up to $200,000.00 and has reviewed and approved the project as
proposed. Sponsorship includes a willingness to secure and guarantee the local share of costs
associated with this project and responsibility for seeing this project through to its completion,
with compliance of all applicable laws, rules and regulations.
Mike Stifter and Lynn Neumann ate hereby authorized to act as agent on behalf of this
sponsoring agency.
The City of Hutchinson and Hutchinson Public Schools take full responsibility for the operations
and maintenance of the 8th Avenue Trail Project related to the aforementioned transportation
alternatives project. City of Hutchinson will be responsible for the portion on city property and
Hutchinson Public Schools will be responsible for the trail sections on the school campus.
Resolution No. 15668 is hereby approved and adopted this 12th day of December, 2023
Gary Forcier, Mayor
Matthew Jaunich, City Administrator
cR HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Approve/Deny Financial Management Plan Modifications
Agenda Item:
Department: Finance
LICENSE SECTION
Meeting Date: 12/12/2023
Application Complete N/A
Contact: Andy Reid
Agenda Item Type:
Presenter: Andy Reid
Reviewed by Staff M
Consent Agenda
Time Requested (Minutes):
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
The Financial Management Plan was originally approved by city council in May 2018. Since that time, certain
areas of the policy require modification due to changes with state statute, city procedures or simply to better
clarify certain policy language. All modifications or deletions are highlighted in red font for your review.
The policy changes I'd like to highlight include the following:
1. Fund Balance - the prior policy was to maintain a fund balance of at least 40%. This has been modified to
maintain the 40% for working capital and another 10% (50% total) for public emergencies and tax levy
stabilization efforts, as may be approved by city council. Over 50% is available for use at council's discretion.
2. Debt Management Plan - I found it easier to scrap the old policy entirely and re -write a new policy. I've also
included a new Post -Issuance Tax Compliance Procedures for Tax -Exempt Bonds directly behind the Debt
Plan. This is a Policy that our bond advisors, bond attorneys and bond rating agency have all recommended. It
simply provides actions the city will take to ensure that the tax-exempt status on our debt is not determined to
be taxable by the IRS, thereby affecting the tax liability of investors holding our debt. Most of the actions are
assigned to the City's Finance Director.
3. Purchasing Policy - the threshold for a competitive bid process was increased by the State to $175,000.
4. Travel & Meals Expense Reimbursement Policy - due to inflation and rising costs, the policy has been
updated with increased meal reimbursement amounts for employees while traveling for City business.
Breakfast $20, Lunch $25 and Dinner $35. These are the maximum amounts, including sales tax and gratuity.
BOARD ACTION REQUESTED:
Approve/Deny the Financial Management Plan as presented with changes.
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
FINANCIAL MANAGEMENT PLAN
u
HUTCHINSON
A CITY ON PURPOSE.
DRAFT
December 12, 2023
Table of Contents
Page No.
3............... Purpose
4............... Cash and Investments
8...............Cash Controls & Procedures
11.............. Revenue Policy
13..............Operating Budget
16..............Fund Balance / Reserve Policy
21..............Capital Improvement Plan
23..............Debt Management
31..............Post-Debt Issuance Tax Compliance Procedures
38..............Purchasing Policy
44..............Procurement Card Policy
49..............Travel & Meal Reimbursement Policy
54..............Fiscal Agent Policy
55..............Exhibit A — List of City funds
56..............Exhibit B — Expense Reimbursement form
57..............Exhibit C — Projected Debt Tax Levy
PURPOSE
The City of Hutchinson (City) has a responsibility to provide quality services to its residents and
considers it important to do so in a fiscally responsible fashion designed to keep services and taxes
as consistent as possible over time. This Financial Management Plan (Plan) is designed to serve as
the framework upon which consistent operations may be built and sustained, which guides
responsible use of municipal resources and contributes to the City's overall financial health.
This Plan serves three main purposes-
1 . It draws together the City's major financial policies into a single document.
2. The plan establishes principles to guide both staff and City Council members to make
consistent and informed financial decisions.
3. The plan provides guidelines for ensuring and maintaining an appropriate level of funds,
unreserved and reserved, to sustain the financial integrity of the City.
The objectives of this Plan are:
➢ To provide both short term and long term future financial stability by ensuring adequate
funding for the provision of services needed by the community,
➢ To protect the City Council's policy -making ability by ensuring that important policy decisions
are not controlled by financial problems or emergencies,
➢ Prevent financial difficulties in the future,
➢ To provide sound principles to guide the decisions of the City Council and Administration;
➢ To employ revenue policies which prevent undue or unbalanced reliance on certain
revenues, distribute the cost of municipal services fairly, and provide funding to operate
desired programs;
➢ To provide essential public facilities and prevent deterioration of the City's public facilities and
infrastructure,
➢ To protect and enhance the City's credit rating and prevent default on any municipal debt,
➢ To create a document that City staff and City Council Members can reference during financial
planning, budget preparation and other financial management issues.
➢ The financial management plan will be reviewed annually during the city's budgeting
process.
CASH AND INVESTMENTS
PURPOSE
The purpose of this policy is to establish specific guidelines the City of Hutchinson will use in the
investment of City funds. It will be the responsibility of the City Administrator, or his designee, to
invest City Funds in order to attain the highest market rate of return with the maximum security while
meeting the daily cash flow demands of the City and protecting the capital of the overall portfolio.
Investments will be made in accordance with all state and local statutes governing the investment of
public funds.
SCOPE
The City Administrator, or his designee, is responsible for the investing of all financial assets of the
City of Hutchinson, excluding pension funds. These funds are accounted for in the City's
Comprehensive Annual Financial Report and include the following:
➢ General Fund
➢ Special Revenue Funds
➢ Debt Service Funds
➢ Capital Project Funds
➢ Enterprise Funds
➢ Internal Service Funds
➢ Economic Development Authority
PRUDENCE
Investments shall be made with judgment and care, not for speculation, but for investment,
considering the probable safety of the capital as well as the probable income to be derived.
The standard of prudence to be used by investment officials shall be the "prudent person" standard
and shall be applied in the context of managing the overall portfolio. Investment officers acting in
accordance with this policy, with MN Statutes, Chapter 118A, and exercising due diligences shall be
relieved of personal responsibility for an individual security's risk or market price change, provided
that reasonable action is taken to control adverse developments and unexpected deviations are
reported in a timely manner.
OBJECTIVE
1) Safety — Safety of principal is of critical importance to the investment program. Investments
of the City shall be undertaken in a manner that seeks to ensure the preservation of principal
in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.
a. Credit Risk — the risk of loss due to failure of the security issuer or backer, will be
minimized by -
Pre -qualifying the financial institutions, brokers/dealers, intermediaries, and
advisors with which the City will do business in accordance with this policy
under Authorized Financial Dealers and Institutions.
ii. Limiting investments to the types of securities listed in this policy under
Authorized and Suitable Investments.
iii. Diversifying the investment portfolio so that the impact of potential losses from
any one type of security or from any one individual issuer will be minimized.
Insurance or collateral may be required to ensure return of principal.
b. Interest Rate Risk — the risk that the market value of securities in the portfolio will fall
due to changes in market interest rates will be minimized to:
i. Provide for liquidity by reviewing cash flow requirements and making
investments to meet the shorter cash flow needs, thereby avoiding the need to
sell securities in the open market prior to maturity.
ii. Manage the annual maturity of the overall portfolio to be consistent with the risk
of the City.
2) Liquidity — The City's investment portfolio will remain sufficiently liquid to enable the City to
meet all operating requirements reasonably anticipated. The portfolio will be structured to
emphasize liquidity and consist largely of securities with active secondary or resale markets
(dynamic liquidity). A portion of the portfolio may be placed in money market mutual funds or
local government investment pools that offer same day liquidity for short-term funds.
3) Yield — The City's investment portfolio shall be designed with the objective of attaining a
market rate of return. The core of investments is limited to low -risk securities in anticipation
of earning a fair return relative to the risk being assumed. Securities shall generally be held
until maturity with the following exceptions:
a. A security with declining credit may be sold early to minimize loss of principal.
b. A security swap would improve the quality, yield, or target duration in the portfolio.
c. Liquidity needs of the portfolio require that the security be sold.
DELEGATION OF AUTHORITY
Authority to manage the City's investment program is derived from MS 118A which authorizes the
City to invest any funds not presently needed for other purposes. This law applies to all types of
funds not presently needed, including all general, special revenue, permanent, trust or other funds
regardless of source or purpose. Under this chapter, a city may invest idle funds in state or national
banks, savings and loan associations, or credit unions. No person may engage in an investment
transaction except as provided under the terms of this policy and the procedures established by the
policy.
Management responsibility for the investment program is hereby delegated to the City Administrator,
or his designee, who shall be responsible for all transactions. The City Administrator, or his
designee, shall establish procedures for the operation of the investment program, consistent with
this policy. Such procedures may include delegation of authority to persons responsible for
investment transactions.
ETHICS AND CONFLICTS OF INTEREST
The City Administrator and Finance staff involved in the investment process shall refrain from
conducting personal business activity that could conflict with proper execution of the investment
program, or which could impair their ability to make impartial investment decisions. Investment staff
shall annually disclose to the City Council any material financial interests as required by state
statute. Investment staff shall subordinate their personal investment transactions to those of the
City, particularly with regard to the time of purchases and sales, and shall refrain from undertaking
personal investment transactions with the same individual with whom business is conducted on
behalf of the City.
AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Council will annually approve by resolution the depositories and a list of financial
institutions authorized to provide investment services.
1) Only approved security broker/dealers, selected by creditworthiness, shall be utilized, with a
minimum of $10,000,000 capital and at least five years of operation.
2) Financial institutions must be qualified as a "depository" by the City Council; these may
include "primary" dealers or regional dealers that qualify under Securities & Exchange
Commission Rule 15C3-1 (Uniform Net Capital Rule).
3) All investments must be insured or registered, or securities must be held by the City or its
agent in the City's name.
4) No public deposit shall be made except in a qualified public depository, as established by
state laws.
5) When investments purchased by the City are held in safekeeping by a broker/dealer, they
must provide asset protection of $500,000 through Securities Investor Protection
Corporations (SIPC), and at least another $2,000,000 Supplemental Insurance Protection,
provided by the broker dealer.
6) Before engaging in investment transactions with the City, the supervising officer at the
securities broker/dealer shall submit a certification of "Notification to Broker and Certification
by Broker Pursuant to MN Statute 118X. Said certification will state that the broker/dealer
has reviewed the investment policies and objectives, as well as applicable state law, and
agrees to disclose potential conflicts or risk to public funds that might arise out of business
transactions between the securities broker/dealer firm and the City. All financial institutions
shall agree to undertake reasonable efforts to preclude imprudent transactions involving the
City's funds.
AUTHORIZED AND SUITABLE INVESTMENTS
It shall be the policy of the City that available funds be invested to the best rates obtainable at the
time of investment in conformance with the legal and administrative guideline outlined herein. US
Treasury Obligations and Federal Agency Securities will be given preference when the yields are
equal to or greater than alternative investments.
The investments of the City will be made in accordance with Minnesota Statutes, section 118A,
which lists all permissible investments for municipalities.
COLLATERAL
Interest -bearing deposits in authorized depositories must be fully insured or collateralized.
Collateral ization will be required on Certificates of Deposits (where the dollar amount is in excess of
FDIC coverage). In order to anticipate market changes and provide a level of security for all funds,
the collateral ization level will be 110% of the market value of principal and accrued interest. When
the pledged collateral consists of notes secured by first mortgages, the collateral level will be 140%
of the market value of principal and accrued interest. Collateral shall be deposited in the name of
the City, subject to release by the City Administrator.
SAFEKEEPING AND CUSTODY
Securities purchased shall be held by a third party trustee as a safekeeping agent and in a
segregated account for the City's benefit. The investment dealer or bank in which the security is
purchased shall issue a confirmation ticket to the City listing the specific instrument, issuer, coupon,
maturity, CUSIP number, purchase or sale price, transaction date, and other pertinent information.
The financial service provider that executes the transaction on the City's behalf shall deliver all
securities on a delivery versus payment method (DVP) to the designated third party. Delivery versus
payment (DVP) is a way of controlling the risk to which securities market participants are exposed.
Delivery of securities (i.e. the change in their ownership) is done simultaneously with payment. This
means that neither the buyer nor the seller is exposed to the risk that the other will default. The City
may not invest in securities that are uninsured. Securities will be held in the City's designated
accounts.
Investments, contracts and agreements may be held in safekeeping with:
➢ Any Federal Reserve bank;
➢ Any bank authorized under the laws of the United States or any state to exercise
corporate trust powers, including, but not limited to, the bank from which the investment is
purchased.
DIVERSIFICATION
The City Administrator or investment designee will attempt to diversify its investments according to
type and maturity. The City will attempt to match its investments with anticipated cash flow
requirements. Extended maturities may be utilized to take advantage of higher yields.
Diversifications strategies shall be determined and revised periodically by the City Council for all
funds.
1) Institutions — Diversity between financial institutions used.
a. The City Administrator or investment designee will attempt to diversify its investments
equally amongst investment companies, keeping in mind that some temporary
fluctuations may occur throughout the year (i.e. tax settlement in June, GO Bonds for
projects, etc.).
b. No funds may be invested in any single investment company in excess of the amount
insured by it.
2) Maturities — Diversity in length of maturities
a. Investments shall be made to assure that funds are constantly available to meet
immediate payment requirements.
b. No investments shall be made with a term of more than 10 years.
3) Investments — The City should maintain a diversity of investments.
a. Depending on market conditions, with the exception of US Treasury Securities,
authorized pools, and Federal Agencies (backed by the full faith and credit of the US
Government or its agencies), no more than 50% of the City's total investment portfolio
may be invested in any one of the following: Certificates of Deposit or Commercial
Paper.
POOLING OF INVESTMENTS
The City shall pool excess cash from all funds into one investment account in order to maximize the
amount of monies available for investment. Monthly investment earnings shall be allocated among
the various funds based on monthly cash balances.
PRIOR POLICY
The policy above supersedes the prior city policy #1.14.
Cash Controls & Procedures Policy
PURPOSE:
To provide reasonable controls for the handling and safeguarding of monies received in the course
of operations at various City facilities, and to protect City assets and minimize the potential for theft,
fraud and discrepancies in cash transaction records. The purpose of this policy is also to protect
City employees from inappropriate charges of mishandling of funds by defining his/her
responsibilities in the cash handling process.
Cash Systems and Records
All cash received in the course of operations, including concessions sales, to the extent possible,
must be entered into the City's point -of -sale (POS) system. Each transaction type will have a preset
code within the POS system with predetermined prices set per City approved pricing amounts.
Separate cash drawers shall be maintained at each point -of -sale location and shall be integrated
with the POS system for formal accounting of each transaction.
All employees authorized to receive cash shall have a separate user ID and password to gain
access to the POS system. Employees shall not share POS access information with others.
Daily reports will be generated from the POS system and forwarded to Finance on a weekly basis
along with the daily cash proofs for each cash drawer and the daily bank deposit proof. Finance will
reconcile submitted documentation to the bank records.
Safeguarding of Cash
The facility will have a cash safe with either a combination or key lock. Access to the safe shall be
restricted to City approved managers. The combination or key shall be changed periodically due to
turnover of authorized personnel or if theft occurs. The cash safe shall be located within a secure
room or office with access limited to authorized personnel. Ideally, the office shall have
computerized records of access based on an employee access card.
Transporting and counting of monies within the facility must always be done by two authorized
employees and never by only one employee. Cash and deposit counts must always be performed
within the secure office and documented by each of the two employees. Signatures by each
employee on a daily cash log represents approval of the cash count and bank deposit.
Discrepancies between the cash counts and the actual bank deposit shall be directly addressed to
the two employees evidenced on the cash log and the manager of the facility, or their designees. At
no time shall cash be left unattended in an open or unsecure location.
Employees may be subject to disciplinary action or termination due to cash discrepancies or theft.
Daily Cash Handling Process
1) Cash Drawer start-up cash
a. Each morning prior to opening for business, the facility manager, or the designee, shall
prepare each cash drawer with the pre -approved amount of cash and coin.
b. Cash drawers shall remain in the secure location until the start of business.
c. Each employee working a cash drawer shall recount the start-up cash and sign off on
the daily cash log sheet.
d. The manager on duty shall walk each employee to the appropriate cash register and
verify that the cash drawer is placed in service and that the employee logs into the
POS system.
i. Cash drawers shall never be transported by only one employee.
2) Cash Transactions
a. All cash and credit transactions must be entered through the POS system.
i. Acceptance of personal checks will be prohibited at certain facilities. Those
facilities shall have a sign posted informing customers of this policy.
b. A receipt shall be offered to the customer after every transaction.
c. Only the approved managers shall have system authority to process refunds, returns,
voids or over -rings.
3) Cash Drawer Count and Reconciliation
a. At the end of each employee's shift, the manager on duty shall verify that the
employee logs off the POS system.
b. The manager shall remove the cash drawer and walk with the employee to the secure
office.
c. The cash drawer shall be counted immediately by the employee in the direct presence
of the manager and documented on the daily cash log.
i. The cash count shall be compared to a cash register report from the POS
system and any discrepancy shall be noted.
d. The manager shall recount the cash drawer and evidence the cash count on the daily
cash log.
i. Any discrepancies in count between the employee and manager shall be
reconciled prior to finalizing the daily cash log.
ii. If employee and manager are in agreement, both parties sign the daily cash log
and the monies and log sheet are placed in the safe by the manager prior to the
employee leaving the secure room.
4) Bank Deposit Preparation
a. The shift manager, in the presence of the facility manager, or the designee, shall
prepare a total daily bank deposit based on the daily cash logs of each cash drawer.
i. The facility manager, or the designee, verifies that each cash log sheet is
properly approved by employee and shift manager.
ii. The facility manager, or the designee, recounts the cash and verifies that the
total deposit amount is in agreement with the totals of each daily cash log.
b. Start-up cash for the following day's cash drawers are deducted from the daily deposit.
i. The start-up cash is placed in a bank bag and stored in the safe for the
subsequent day cash drawers.
c. The shift manager and facility manager, or their designees, sign the deposit slip, make
a copy for Finance Department, and place the monies and deposit slip in the bank
deposit bag.
i. The deposit bag is placed in the safe, witnessed by both employees.
5) Transporting Daily Deposit to the Bank
a. For deposits made at night, an on -duty police officer shall be called to the facility to
transport the shift manager, or the designee, and deposit bag to the bank. The deposit
bag shall be removed from the safe with the police officer present as witness. If the
police are unavailable, two authorized employees shall deliver the deposit to the bank.
b. For deposits made during the day, it is preferable to have two employees deliver the
deposit to the bank.
6) Daily Reports to Finance
a. The facility manager, or the designee, shall be responsible for forwarding the following
information to the Finance Department:
i. Approved Daily Cash Logs
ii. Daily POS system report with subtotals by cash register
1. POS reports shall be only for the operations of one specific department.
iii. Copy of the approved Daily Bank Deposit slip
The facility's deposit shall be made separately from any other related
departmental operations (i.e.- Aquatic Center deposits shall be separate
from Recreation deposits)
iv. Any other reports as may be determined from time to time.
b. Finance shall reconcile facility reports to the bank statement.
Other Cash Controls
1) Currency larger than a twenty -dollar bill ($20) shall be inspected for any signs of being
counterfeit.
2) Only cash or credit cards will be accepted at certain facilities.
3) Credit cards will be processed at the point -of -sale and must not leave the customer's sight.
In no instance will credit card information be written down by City staff or retained in any
fashion.
4) A receipt is required to be given to the customer for every transaction.
Cash Operations without a POS System
Some City operations may be conducted in a location where it is not feasible to have a POS system
to account for cash transactions, such as the Roberts Park concession building and offsite events
for the liquor store. This policy is still applicable in those instances with the exception of reconciling
the receipts to a POS system report. Daily cash count sheets must still be maintained and
approved, and deposits shall be made on the next business day. If possible, two employees shall
be present when counting the cash and creating the deposit slip.
Policy Compliance
All employees of the City of Hutchinson, primarily Liquor Hutch and the Aquatic Center, who are
responsible for cash transactions shall be subject to the procedures within this document. The
Finance department acknowledges that certain aspects of this policy may not be practical for all
situations. A deviation from policy may be approved if it is determined that that such deviation does
not present a material risk of mishandling or misreporting cash activity. Any deviation from this
policy must be approved by the Finance Director. The City's Finance department shall reserve the
right to create an internal audit process and to perform audits as determined necessary.
REVENUE POLICY
PURPOSE
The City of Hutchinson is committed to maintaining a revenue system that meets the City's
immediate and long-term service delivery needs, protects the City's creditworthiness, and follows
best practices for administration and collection.
REVENUE STRUCTURE AND SOURCES
The City will strive to maintain a stable and diverse revenue system to reduce the effects of short-
term fluctuations in any one revenue source. Services having a city-wide benefit shall be financed
with revenue sources generated from a broad base, such as property taxes, state aids and transfers
from enterprise funds. Services where the customer determines the use shall be financed with user
fees, charges and assessments related to the level of service provided.
1) Property Taxes
Property tax payments are the largest source of revenue in the City's General fund,
accounting for approximately 40% of the total annual revenue. The City will strive to
proactively avoid large increases in property taxes and will explore other alternatives,
including:
➢ Other policy options (debt management, fees & charges, cost allocation, expenditure
cuts and use of reserves).
➢ Budget scenarios for a 0% tax levy, including potential reductions in service levels.
➢ Consideration will be given to staying within the amount of revenue generated by
increased market value with no increase in the City's tax rate.
If after exhausting these alternatives, a tax increase is required, the goal of the City will be to
keep any property tax rate increase at or below the prevailing inflation rate. City services will
be funded to the maximum extent possible by the increases in market valuation (i.e.; new tax
base growth and valuation increases).
Possible factors for considering an increase in property tax include:
➢ Long-term protection of the City's infrastructure.
➢ Meeting legal mandates imposed by outside agencies.
➢ Maintaining adequate fund balance and reserve funds sufficient to the City's Fund
Balance Policy.
➢ Funding City development and redevelopment projects that will clearly result in future
tax base increases. The expenditures of development and redevelopment funds must
be in accordance with a defined strategy as shown in the City's comprehensive plan,
capital improvement plan, and other council documents.
Property tax increases to meet other purposes will be based on the following criteria:
➢ A clear expression of community need.
➢ The existence of community partnerships willing to share resources.
➢ Establishment of clearly defined objectives and measurements of success, including
appropriate sunset provisions.
➢ Voter approved referendums for specific community needs/projects.
2) Fees and Charges
The City will establish fees and charges for services when the cost of services can be
allocated equitably among service users.
a. General Fund
Tax dollars should support essential City services that benefit and are available to
everyone in the community (such as parks, police and fire protection). For services
that largely or solely benefit individuals, the City should recover full or partial costs of
service delivery through user fees. The user fees must not exceed the full cost of
providing the service.
b. Enterprise Fund User Fees
Customer or user fees for services/products provided by an enterprise fund shall be
determined at a level that fully covers the total direct and indirect costs, including
operating expenses, capital expenditures and debt service. The fees shall also
provide for a positive cash flow and adequate working capital.
c. Fee Schedule
The City's fee schedule shall document all fees charged, or assessed, for services
provided to users or customers. Departments shall review existing fees as part of the
annual budgeting process to ensure that fees keep pace with changes in the service
delivery costs as well as changes in methods or levels of service delivery. Fees for
new services shall also be determined in a manner that equitably charges the user for
the service provided. Administration and Finance shall compile a preliminary fee
schedule and present to city council for review by October 31 of each year with final
approval of the schedule -+akin" ^'a^^ by December 31 of each year. Prices for
products sold at the Liquor Hutch and Creekside are exempt from the fee schedule
due to the dynamic nature of pricing in a competitive market.
REVENUE ESTIMATES
The City will conservatively estimate and budget for its annual revenues using an objective,
analytical process. All existing and potential revenue sources will be re-examined annually.
NON -RECURRING REVENUES
Revenue sources that are non -recurring in nature shall not be used to fund ongoing programs or
operations of the City. This includes revenue such as sales of assets, settlement from a lawsuit,
inter -fund transfers and other one-time payments. These revenue items should be used to build
reserves or for projects that will result in long-term operating cost savings.
Non -recurring revenue may also include grants and donations. These revenue sources should be
dedicated to the use designated by the grantor or donor.
The annual budget shall be prepared in a manner that eliminates, or minimizes, reliance on
unpredictable or non -recurring revenues for on -going operating costs.
OPERATING BUDGET
PURPOSE:
The objective of the operating budget policy is to ensure that sufficient information is available to
decision makers to provide fer adequate levels of funding for essential City services at reasonable
costs.
Budgeting is an essential element of the financial planning, control and evaluation process of
municipal government. The "operating budget" is the City's annual financial operating plan. The
annual budget includes all operating departments of the general fund, other governmental funds and
proprietary funds.
The budget will provide for adequate maintenance of city facilities and equipment and for their
orderly replacement.
The following funds are included within the City's annual budget
GOVERNMENTAL FUNDS:
1) General Fund, which accounts for all financial resources except those required to be
accounted for in another fund, and include basic governmental services, such as Police, Fire,
Parks and Recreation, Streets and Highways, Building Inspections, Cemetery, Airport and
Administrative services.
2) Special Revenue Funds, which account for revenues that are legally restricted or committed
to a specific purpose other than debt service and capital projects. The City currently budgets
for the Rural Fire and H.A.T.S. Facility funds. (See exhibit A)
3) Debt Service Funds, which are used to account for the payment of principal and interest on
the City's general obligation bond issues pFiRGipal and interest.. The payments are funded by
#Gm the City's debt tax levy and special assessment repayments bend pFiRGipal and
fri,m 6Ponial _A66o9-GmEmAt I894489
4) Capital Projects Funds, which are used to account for the acquisition of vehicles and
equipment, er and the construction of major capital projects other than those financed by
proprietary fund activities.
PROPRIETARY FUNDS:
Proprietary funds will be self-supporting and user rates or fees will be reviewed annually and
adjusted if necessary to ensure adequate funding of operating and capital expenditures.
1) Enterprise Funds, which include the City's "business -type" activities. The City budgets for
the Liquor, Water, Wastewater, Storm Water, Compost and Refuse funds.
2) Internal Service Funds, which account for the financing of goods or services provided by
one department to other departments of the City on a cost reimbursement basis. The City
budgets for the Equi„meRt ReplaGemen+ and Self -Insurance funds.
BASIS OF ACCOUNTING AND OF BUDGETING:
The City accounts and budgets for all Governmental Funds using the modified accrual basis of
accounting. This basis means that revenue is realized in the accounting period in which it becomes
available and measurable, while the expenditures are recognized in the accounting period in which
they are incurred. For revenue to be recorded within a given calendar year, it generally must be
received within sixty (60) days after the year-end. Exceptions to the modified accrual basis include:
• Grants, which are considered revenue when awarded, not received; and
• Principal and interest on long-term debt, which are recognized when paid.
The City's Proprietary Funds are accounted and budgeted using the full -accrual basis of
accounting. Under this method, revenues are realized when they are earned and measurable, while
expenses are recognized when they are incurred regardless of timing or related cash flows. The
basis for preparing the budget is the same as the basis for accounting except for principal payments
on long-term debt and capital outlay expense, which are treated as budgeted expenses.
BALANCED BUDGET:
The City Administrator shall submit a balanced General fund budget that provides for all current
expenditures with current revenues, matching ongoing operating expenses with the appropriate
source of ongoing revenues, except in emergency situations or in the event of unforeseen needs.
The City will avoid budgetary procedures that balance current expenditures at the expense of
meeting future years' budgets.
Any inclusion of previous years' excess fund balance in the adopted budget will be intended for one-
time or non -recurring expenses or projects. Fund balance may also be used as a short-term
measure to stabilize the tax levy.
The impact on the operating budget from any new programs or activities being proposed should be
minimized by providing funding with newly created revenues �•�"�ar to the extent possible.
BUDGETARY CONTROLS:
The City Administrator will ensure that a budgetary control system is in place to adhere to the
adopted budget and will provide monthly reports comparing actual revenues and expenditures to the
budgeted amounts. The legal level of budgetary control is at the department level within a fund.
1) Departments shall not exceed the budget within the four main expense categories without
City Administrator approval. Specific expense items within a category may be over budget as
long as the category in total does not exceed the budget. The main expense categories are
as follows:
a. Wages & Benefits
b. Supplies
c. Services & Charges
d. Miscellaneous
2) Surplus departmental revenue may not be used to justify overspending an expenditure
without approval from the City Administrator. An expenditure may exceed the budget when
the overage is caused by unbudgeted revenue from grants, insurance proceeds, donations or
other one-time monies.
3) The City Administrator is authorized to approve a transfer of funds from one appropriation to
another within the budget of any department of the City. Department means any city function
organized under the direct control of a single department head within the same fund. Such
approval shall be made by written memorandum setting forth the reasons therefore.
4) No officer or employee of the City shall place any order or make any purchase except for a
purpose and to the amount authorized in the budget resolution, or as authorized by the City
Administrator.
CAPITAL IMPROVEMENT PLAN:
The City Administrator will coordinate the development of the Capital Improvement Plan with the
development of the operating budget. Costs associated with new capital improvements will be
tr d estimated for each project and included in future budget forecasts.
PUBLIC HEARING:
The City's budgeting process allows for public input at various city council budget workshops as well
as the annual Truth in Taxation public hearing typically held in early December of each year.
FUND BALANCE
Policv Overview:
Fund Balance is defined as the difference between assets and liabilities reported in a governmental
fund. It is essentially the accumulation of all prior years' net surpluses and/or deficits of revenues
over expenditures.
The City of Hutchinson (City) understands it has a responsibility to maintain prudent financial
practices to ensure stable operations for the benefit of city residents and businesses. Fund balance
reserves are an important component in ensuring the overall financial health of a community by
giving the City cushion to meet contingency or cash flow timing needs.
The office of the State Auditor recommends that at year-end, local governments maintain an
unrestricted fund balance in the general fund and special revenue funds of approximately 35 to 50%
of fund operating revenues, or no less than five months of operating expenditures. While the bond
rating agencies do not have recommended fund balance levels, the agencies look favorably on
larger fund balances, which protect against contingencies and cash flow needs.
The purpose of this policy is to establish specific guidelines the City will use to classify fund
balances into categories based primarily on the extent to which the City is bound to honor
constraints on the specific purposes for which amounts in these funds can be spent.
Classification of Fund Balance:
Annual financial statements shall be prepared in accordance with generally accepted accounting
principles establishing fund balance at the end of each year into the following categories:
1) Non -spendable
a. This category includes amounts that are not in a spendable form (i.e. prepaid
expenses or supply inventories). Resources that must be maintained intact pursuant
to legal or contractual requirements are also considered non -spendable.
2) Restricted
a. Amounts subject to externally enforceable legal restrictions (creditors, grantors,
contributors and by law through constitutional provisions or enabling regulations).
3) Unrestricted
The total of committed fund balance, assigned fund balance and unassigned fund balance as
described below:
a. Committed
i. Fund balance that can only be used for the specific purposes determined by the
City Council. The committed amounts cannot be used for any other purpose
unless the City Council removes or changes the specified use by taking the
same type of action it employed to commit those amounts.
ii. The City Council will annually, or as deemed necessary, commit specific
revenue sources for specified purposes by resolution. This formal action must
occur prior to the end of the reporting period, however, the amount to be
subject to the constraint, may be determined in the subsequent period.
iii. To remove the constraint on specified use of committed resources, the City
Council shall pass a resolution.
b. Assigned
i. Amounts that are constrained by the government's intent to use for specified
purposes, but are neither restricted nor committed. Assigned fund balance in
the General fund includes amounts that are intended to be used for specific
purposes.
ii. The City Council has delegated the authority to assign and remove
assignments of fund balance amounts for specific purposes to the City
Administrator.
4) Unassigned
a. Unassigned fund balance represents the residual classification for the General fund.
This includes amounts that have not been assigned to other funds and have not been
restricted, committed, or assigned to specific purposes within the General fund. The
General fund should be the only fund that reports a positive unassigned fund balance
amount.
Governmental Funds:
The City's governmental funds include the following fund types-
1) General Fund
.02
assist in rnaiRtaiRiRg aR adequate level of fund halanre "revide- fhr r_
The City will commit 40% of the next year's General fund budgeted expenditures for working
capital. This provides adequate cash flow to fund operations since major revenues, including
property taxes and other government aid, are received on a biannual basis.
The City will commit 10% of the next year's General fund budgeted expenditures to plan for
contingencies and tax levy stabilization.
Use of Reserves
Use of the contingency or tax levy stabilization reserve requires city council approval and will
be limited to non -recurring or temporary events. Use may include, but not be limited to:
• Provide resources to make up for temporary decreases in revenues
• Provide temporary resources in the event of an economic downturn while expenditure
reductions are being implemented
• Provide resources to meet emergency expenditures in the event of extreme weather,
natural disasters or other public emergencies
• Provide temporary funding until proceeds are received from insurance, FEMA or other
potential reimbursement source, if applicable
• Stabilize or soften the impact of tax levy increases
Replenishment of Reserves
A plan to replenish reserves will be formulated during the annual budget process and five-
year strategic planning. Potential sources for replenishment include budgetary surpluses,
retired bond funds, uncommitted one-time monies, other city funds, and tax levy increases.
Excess Reserves
The unassigned fund balance represents reserves in excess of the 50% commitment for
working capital, contingencies and levy stabilization. These funds are available for use at the
city council's discretion. City council and staff will review excess reserves on an annual basis
to discuss potential uses for the funds. Emphasis will be placed on one-time uses that
achieve future operating cost reductions. Consideration will also be given to limiting the use
of reserves to levels that do not adversely affect the City's credit rating.
Periodic Review of Reserve Targets
The reserve target amounts will be reviewed by city council and staff on an annual basis
during the budget process.
2) Special Revenue Funds
a. Special Revenue funds are used to account for, and report, the proceeds of specific
revenue sources that are restricted or committed to expenditures for specified
purposes other than debt service or capital projects. Governmental accounting
standards require that substantial inflows of revenues into a special revenue fund be
either restricted or committed in order fer +� f,-U;a to be considered a special revenue
fund.
3) Debt Service Funds
a. Debt Service fund balances are considered restricted. They are resources that are
being accumulated for payments of principal and interest maturing in the current and
future years.
b. The remaining fund balance will typically be transferred into the Community
Improvement fund when all debt requirements have been met for a specific debt fund.
A transfer into another debt fund may be warranted to avoid any unplanned, adverse
impacts to the debt tax levy.
4) Capital Projects Funds
a. Capital Project fund balances are considered either committed or assigned. They are
resources that are used to account for the acquisition or construction of capital
facilities, infrastructure and equipment, other than those financed by Enterprise funds
or the EquipmeRt ReplaGernept fund.
b. The majority of these funds should be assigned for the Capital Improvement Plan
(CIP) or reserved for a specific project.
c. Specific Capital Project funds may temporarily have a negative fund balance due to
the timing of federal, state or other funding.
d. Future capital projects must shall be identified and quantified, to the extent possible,
within the City's five-year CIP, which shall be included in the City's annual budget
document.
e. The City has several capital projects funds, including:
i. Capital Projects fund, Community Improvement fund, Equipment Replacement
fund, Airport Construction fund, and the annual Capital Improvement
Construction funds.
• The Capital Projects fund accounts mainly for capital improvements
related to General fund facilities and miscellaneous infrastructure
maintenance. The main funding sources are LGA, excess HUC
payments grants and donations.
• The Community Improvement fund accounts for city enhancement and
public arts projects as approved by the City Council. The main funding
sources are retired bond funds, grants and donations.
• The Equipment Replacement fund accounts for the acquisition and
disposition of General fund vehicles and equipment. The main funding
sources are transfers from the General fund and proceeds from the sale
of vehicles/equipment.
• The Capital Improvement Construction funds account for the annual
roadway and infrastructure improvement projects. The main funding
sources are federal and state aid, grants, enterprise fund contributions,
other city funds, and bond proceeds. Excess fund balance when the
projects are complete generally are transferred into the debt service fund
but may also be used to fund deficits in other capital improvement
construction funds.
Enterprise Funds:
1) It is the goal of each enterprise fund to cover the costs of operations, including depreciation
and a transfer to the General fund, to maintain a financially healthy enterprise. The City will
maintain cash reserves in the Enterprise funds at a minimum level equal to 50% of the
following year's annual operating secs expenses plus one year of debt service payments and
transfers to the General fund (Target Cash Balance).
a. The Liquor fund shall be exempt from this provision since the majority of profits are
transferred to the General fund.
2) The Water, Wastewater and Storm Water funds may contribute capital improvement dollars
to the annual Capital Improvement Construction fund as a reimbursement for infrastructure
placed in service in conjunction with roadway and other improvement projects. Contributions
shall not exceed the total cost of the specific infrastructure being capitalized within the
enterprise fund.
3) Projects utilizing reserves shall be planned in advance and included within the 5-year Capital
Plan, to the extent possible. The amount of reserve funds utilized will be limited to an amount
that maintains a cash balance above the Target level and does not result in user rate
increases solely due to the use of those reserves.
4) Utility rates will be reviewed annually regarding projected expenses and capital
improvements. The City Council will annually establish rates in accordance to operating cost
recovery and the projected capital improvements.
Order of Fund Balance Spend -Down:
1) When both restricted and unrestricted resources are available for use, it is the City's policy to
first use restricted resources, and then unrestricted, as they are needed.
2) When committed, assigned or unassigned resources are available for use, it is the City's
policy to use resources in the following order; (1) Committed; (2) Assigned; and (3)
Unassigned.
3) A negative residual amount may not be reported for restricted, committed, or assigned fund
balances in the General fund.
Monitoring and Reporting:
The City Council shall review fund balance and cash -flow needs during the budget process in
accordance with this policy. Annually, after the audited financial report has been completed, the
City Council shall review fund balance results with the City Administrator, Finance Director and the
City's independent auditor.
CAPITAL IMPROVEMENT PLAN
VISIONS AND GOALS
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The City plans for capital improvements by preparing a five-year Capital Improvement Plan (CIP).
The CIP serves as a valuable planning tool for the preservation and expansion of the City's capital
assets, including facilities, infrastructure, amenities and equipment. It provides details of proposed
improvements by department and year, along with the estimated cost and funding sources for the
improvements. It is based upon several long-range planning documents that are updated regularly
as identified by the Facilities Committee, Fleet Committee, Resource Allocation Committee, City
staff and council members.
The CIP identifies projects that will support existing and projected needs in the following areas:
transportation, public safety, parks & recreation, general government and enterprise fund
operations. The CIP establishes a development program to maximize outside revenue sources and
effectively plan for the growth and maintenance of the City's infrastructure.
POLICIES
Criteria identified for inclusion of capital items in the CIP plan are as follows:
1) Capital Item must have a minimum cost of $10,000
2) Project must define the year proposed
3) Funding source should be identified
4) Detail should include annual operating costs or savings for proposed capital item
5) Department priority should be established
6) Must have a useful life of three years or greater
The plan encompasses projects using the following priority levels:
Priority 1: (Urgent) Projects currently underway or those that are considered essential to the
departments of City operations, and should not be delayed beyond the year requested. Failure to fund
these projects will seriously jeopardize City's ability to provide service to the residents and/or expose the
City to a potential liability and negative legal exposure.
Priority 2: (Very Important) Projects that are needed by a department or the City to improve or maintain
their operations, and to delay would cause deterioration or further deterioration of their current operation
and/or level of service to the residents of the City. These should not be delayed beyond the year
req uested.
Priority 3: (Important) Projects that are needed by a department or the City to improve or maintain their
operations, and should be done as soon as funds can reasonably be made available.
Priority 4: (Less Important) Projects, which are desirable, but needing further study.
Priority 5: (Future Consideration) Projects which sometime in the future will need to be funded to
maintain operations, safety or infrastructure desired within the community.
CIP PROCESS
1) Finance distributes CIP forms and the prior year's data to departments for updating.
2) Departments add, remove and reprioritize CIP data from the prior year's report.
3) Finance updates the CIP database with recommendations made by the department directors
and the Fleet, Facility and Resource Allocation committees.
4) Initial draft is reviewed with City Administrator and Department directors; corrections or
adjustments are made.
5) Preliminary CIP plan is submitted to City council by August 1st
6) Final CIP plan is reviewed and adopted by City council by year-end.
PROCESS CALENDAR
April/May - Departments work on updating the CIP. Any new capital items should be requested at
this time. The Facilities, Fleet and Resource Allocation Committees begin meeting to review and
prioritize potential improvement projects submitted by Departments.
June/July - Departments return updated CIP items. The Facilities, Fleet and Resource Allocation
Committees submit a recommended five-year plan to the City Administrator. An initial CIP draft is
reviewed with Department directors and corrections or adjustments are made. Current year CIP
items are incorporated into the early stages of the budgeting process during this time frame.
August 1st - Per Section 7.05 of the Hutchinson City Charter, the City Administrator shall submit to
the council a recommended CIP Plan no later than August 1st of each year.
October/November - Departments and Finance make final adjustments to the preliminary CIP.
December 31st - Final CIP is adopted by City council prior to year-end.
CAPITAL PROJECT APPROVAL
The CIP is a planning document comprised of potential capital improvement projects known at a
certain point in time. Projects are not approved simply by being included in the CIP as funding
sources or City priorities may change. All capital projects are subject to the City's purchasing
policy, requiring quotes/bids and approvals commensurate to the total cost.
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DEBT MANAGEMENT PLAN
The Finance Department of the City of Hutchinson has developed this Debt Management Policy to
provide guidelines for the issuance of bonds and other forms of indebtedness to finance necessary
land acquisitions, capital construction, equipment and other capital assets for the City. While the
issuance of debt is an appropriate method of financing the acquisitions of capital projects and major
equipment, such issuance must be carefully monitored to preserve the City's credit strength and to
provide the necessary flexibility to fund future capital needs.
The goal of the City's Debt Management Policy is to ensure a stabilized overall debt burden and
future tax levy requirement, in addition to ensuring that issued debt can be repaid without weakening
the City's financial condition. Adequate resources must be provided for the repayment of debt and
the level of debt incurred by the City must be effectively managed to maintain or enhance the City's
credit rating.
Financing capital projects with debt in certain circumstances may be the most cost-effective means
available to the City. City staff will analyze each potential capital improvement and make a
recommendation to City Council to either use cash reserves or issue debt. The City's 5-year Capital
Improvement Plan will be a valuable planning tool for the financing of future improvements.
Purpose of Financing
The City borrows money primarily to fund long-term capital improvement projects, essential
equipment and vehicle needs and to refinance existing debt. The city will not issue long-term debt
to finance current operations or to finance projects where the debt maturity exceeds the useful life of
the improvement or asset. Debt will be used to finance eligible projects only if it is the most cost-
effective means available to the City.
Financing Options
The City will strive to maintain a "pay -go" capital funding policy, supporting capital spending without
the use of debt whenever feasible. The following options will be considered, in the order presented,
when debt is determined to be the most appropriate means to finance a project.
1. Interfund Loan
Interfund borrowing is preferable to external debt as the City is paying itself interest rather
than to a third party. An interfund loan may be considered for circumstances in which all of
the following conditions are met-
a) The remaining cash reserve balance within the lending fund is adequate to meet cash
flow needs and does not adversely affect operations or user rates.
b) A repayment schedule will be prepared detailing the annual principal and interest
payments due to the lending fund.
c) The annual interest rate will equal the current prime lending rate or maximum amount
allowable by State Statute.
d) The repayment schedule will not exceed 15 years or the useful life of the
improvement.
e) The City Council approves the interfund loan and repayment plan via city resolution.
2. General Obligation Bonds
The City may issue general obligation bonds to finance a variety of improvement projects.
These bonds typically represent the lowest cost of debt to the city as they are tax-exempt and
guaranteed by the City's taxing authority to repay the debt. For enterprise funds, revenue
bonds may be issued using the fund's specific revenue source to repay the debt with the
City's taxing authority pledged to repay the debt.
a. The City will use an independent municipal advisor to assist with bond financing,
including the structuring of the bond issues and selling of the bonds.
b. The City will retain external bond counsel for all debt issues. No bonded debt will be
issued by the City without a written opinion by bond counsel affirming that the City is
authorized to issue the debt, stating that the City has met all state constitutional and
statutory requirements, and determining the debt's federal income tax status.
c. A fiscal agent will be utilized, to the extent necessary, for all bonded indebtedness to
coordinate and distribute the City's debt service payments to the various bondholders.
Fiscal agent fees for outstanding bonds will be paid from the respective debt funds as
determined by the Finance Director.
3. Short-term External Financing
The City may solicit financing from external lending institutions based on a competitive bid
process. This is the least attractive financing option for the City and will be avoided to the
extent possible.
Borrowing Purposes
The four primary borrowing purposes are summarized below:
1. Long -Term Capital Improvements
The City may issue debt to finance improvements to roadways, infrastructure, and city
facilities.
2. Essential Vehicle and Equipment
Certain specialized vehicles and equipment may require the issuance of short-term debt.
City staff will analyze cash reserves, other funding sources and short-term debt for each
potential purchase. Assets potentially financed with short-term debt include fire trucks, jet -
vac trucks, snowplow trucks, wheel loaders and any other specialized equipment as
recommended by City staff. Debt issued for this purpose generally will be for a term of 5 to
10 years but not longer than the useful life of the equipment.
3. Refinancing/Refunding of Existing Debt
The Finance Director shall periodically review the City's existing debt and recommend
refinancing or early refunding when economically beneficial. Refinancing to take advantage
of lower interest rates will generally be considered when it provides a present value net
savings of at least 3%.
4. Other Allowable
The Finance Director may pursue other borrowing mechanisms as allowed by Minnesota
State Statutes (Section 475, etc.) and approved by the City Council.
Debt Tax Levy
The City annually issues General Obligation tax-exempt bonds ("bonds") in accordance with
Minnesota Statutes 429 and 475. The annual debt service payments on the bonds are funded by
the City's special property tax debt levy ("debt levy") and by special assessments repaid by property
owners, if applicable. It is the intent of the city council to best manage the debt levy by using the
following guidelines to finance improvement projects.
1. Roadway & Infrastructure Projects will generally be financed by special assessments and
the debt levy, both of which are accounted for within the Debt Service fund.
a. Special assessments repaid by property owners benefitting from the improvement:
i. The debt associated with this component is generally repaid by property owners
over a 10-year period, but it may be less depending on the cost of the
improvement and associated assessments.
ii. The annual repayment installments shall be on a straight-line basis with simple
interest equal to the true interest rate on the debt issuance plus 1 % to cover the
City's administrative costs involved in managing the special assessments.
iii. The City debt levy generally is not impacted by special assessments unless
significant assessments are delinquent or deferred indefinitely.
iv. Certain improvement projects may result in a substantial assessment to a
specific property with the property owner agreeing to prepay the entire
assessment in the year of improvement. In this instance, the prepaid
assessment may be eliminated from the debt issuance and used as a direct
funding source in the Capital Improvement Construction fund.
v. Bonding under Statute 429 limits the bond proceeds to the amount of special
assessments divided by the minimum threshold of 20%. The bond proceeds
must be sufficient to pay the improvement costs in addition to the costs to issue
the bonds. In the case of insufficient assessments, the City must either bridge
the financing deficit with other funds or pursue bonding under Statute 475.
b. Project Costs not financed by other funds:
i. This component is the remainder of projects costs after all other funding
sources, including federal or state aid dollars, grants, enterprise fund
contributions, other funds and special assessments. The debt associated with
this component is repaid by the City's debt levy.
ii. The City will manage this debt component with an average annual improvement
cost limit of $1,900,000, which may be adjusted up or down by city council to
account for changing interest rates and other factors. Increasing this limit to
account for rising improvement costs will increase the City's overall debt levy.
iii. The City will manage the aggregate of current and future roadway and
infrastructure debt at a target debt levy of $2,600,000 per year. Once the target
levy is reached it should be self-sustaining, with one debt issue expiring as a
new debt issue is added. City council will periodically review the target and
adjust as needed for increasing construction costs or other factors that may
necessitate increased financing.
2. City Facility Improvements
Debt may be required in order to finance major improvements for existing or new facilities.
The debt associated with this component is repaid by the City's debt levy. Facility debt is
above and beyond the debt limits established for roadway and infrastructure improvements.
Facility debt levels will be analyzed and recommended by the City Administrator and Finance
Director with final approval by the city council.
3. Debt Levy Target
The goal of the city council is to have a steady debt levy and to minimize any large
fluctuations in the levy, to the extent possible. The city council recognizes the following
future, annual debt levy targets with this policy:
Roadway & Infrastructure Debt $2,600,000
Facility Debt (new police facility) 500,000
Total Debt Levy Target $3,100,000
The debt levy is currently below the $3,100,000 target and will increase moderately each year
until the target is reached in, or around, 2034. The facility debt will exceed the $500,000
target until 2034 due to front -loading the police facility debt to replace prior, existing debt that
was retired early.
4. Managing the Debt Levy
a. Future debt issuances will mature after 15 years. In the case of an exception to this
guideline, the debt maturity shall always be shorter than the life of the financed
improvement or asset.
b. Each debt issue shall be structured such that the its required debt levy will be stable
over the 15-year debt term. This will prevent fluctuations in the overall debt levy on a
year-to-year basis.
c. Any bond premium received will generally be used to reduce the par value, resulting in
lower debt. City staff will review each year for any circumstances that may necessitate
retaining the bond premium, or a portion thereof.
d. Debt issuances will be in an amount to finance the estimated project costs and
professional fees plus a reasonable construction contingency. The costs to issue debt
will also be included in the total amount financed.
e. The City will keep outstanding debt within the limits set by State Statutes.
f. Retired debt service funds will be closed into the City's Community Improvement fund.
This fund will be the primary funding source for any potential debt service shortfalls.
g. City staff will periodically review the annual debt levy target and may make
recommendations to City Council to increase the target to address rising construction
costs, interest rates or other unforeseen factors.
h. Future financing may need flexibility in structuring its debt. This policy shall not
prevent the City from deviating from this policy as long as the City adheres to the
overall intent of this policy.
Conduit Debt
The City is granted the power to issue tax-exempt conduit revenue bonds or other tax-exempt
obligations for a non-profit organization, as defined within Minnesota State Statutes. Such debt
shall encourage economic development, promote increased tax capacity (tax base) and provide no
liability to the City for repayment of the debt.
A. The City reserves the right to deny any application for financing at any stage of the
proceedings prior to adopting the final resolution authorizing issuance of the financing. The
City Council may waive any provision of this conduit debt policy if the council determines that
such waiver is in the best interests of the City.
B. The City Council will consider projects that are beneficial and appropriate for the City.
C. The City will consider issuing conduit financing as long as it does not interfere with the annual
bank qualification limit when the City issues its own bonds.
D. All applications and supporting materials and documents shall remain the property of the City
and may be subject to disclosure and/or public review under applicable provisions of State
law.
E. The City is to be reimbursed and held harmless for and from any out-of-pocket costs related
to the actual or proposed issuance of conduit revenue bonds. A nonrefundable processing
fee of $2,000 must be submitted with a written request for City financing assistance.
F. The entity will be charged an administrative fee of 0.50% of the par value of bonds being
issued, with payment made at the time of closing on the debt. In the case of a refinancing,
the fee shall be calculated at 0.25%. These percentages may be adjusted, with city council
approval, depending upon the size of the bonded debt.
G. The Finance Department shall report all conduit debt issues within the Annual
Comprehensive Financial Report in accordance with Generally Accepted Accounting
Principles.
Debt for Private Development
The City generally requires that private developers finance the cost of public infrastructure installed
for new developments.
Prior Property Tax Levy Debt Policy
The Debt Management Policy above supersedes the 2008 and 2018 policies and shall be used as
the guideline for all existing and future debt.
POST -ISSUANCE TAX COMPLIANCE PROCEDURES
FOR TAX-EXEMPT BONDS
I. Purpose
These procedures are adopted by the City to ensure that interest on tax-exempt bonds ("Bonds") of
the City remains excludable from gross income under Section 103 of the Internal Revenue Code of
1986, as amended (the "Code").
These written procedures are intended to formally memorialize certain policies and practices of the
City previously adopted or followed by the City in connection with its issuance of Bonds. The City
reserves the right to use its discretion as necessary and appropriate to make exceptions to these
procedures as facts and circumstances warrant.
II. Expenditure/Use of Bond Proceeds
a. Expenditure of Bond proceeds will be regularly reviewed by the City Finance Director
for consistency with the Bond documents, including any Bond Resolution and the
City's Tax Certificate.
b. The City has separately established procedures for preparation and review of requests
for Bond proceeds as part of its accounting system.
c. Requests must identify the Bond -financed property in conformity with the City's tax
certificate executed at closing of the Bonds, including the character of the Bond -
financed property. Such information is contained as part of the City's accounting
system coding.
d. None of the proceeds of the Bonds will be used to reimburse the City for costs paid
prior to the date of issuance of the Bonds unless the City shall have fully complied with
Section 1.150-2 of the Treasury Regulations with respect to such reimbursed amounts,
which is summarized in Exhibit A hereto.
e. Staff costs may be financed with Bond proceeds only to the extent that they are
properly capitalized as a cost of a capital project under generally accepted accounting
principles and federal tax law.
f. Requests for expenditures will be summarized in a "final allocation" of Bond proceeds
to uses not later than 18 months after the in-service date of the Bond -financed
property (and in any event not later than 5 years and 60 days after the issuance of the
Bonds and not later than 60 days earlier than retirement of the issue) in a manner
consistent with the Code and Treasury Regulations and the applicable Tax Certificate.
g. Expenditure of proceeds of the Bonds will be measured against the City's Tax
Certificate expectation to spend or commit 5% of net sale proceeds within 6 months, to
spend 85% of net sale proceeds within 3 years, and to proceed with due diligence to
complete the capital project and fully spend the net sale and investment proceeds. In
the event that exceptions under the Code are not met, calculations of rebate liability
will be performed or caused to be performed by as provided herein.
h. If there are any Bond proceeds remaining other than in a reserve or debt service fund
established pursuant to the Bond Resolution after completion of the projects, such
proceeds shall be applied in a manner consistent with the applicable Bond Resolution
and Tax Certificate or pursuant to advice from Bond Counsel.
In the event that Bond proceeds are to be loaned to a conduit borrower, such conduit
borrower will be required to agree to all terms of the Tax Certificate and provide
evidence of post -issuance tax compliance procedures deemed adequate and
consistent with those set forth herein; and all such obligations for post -issuance tax
compliance shall be assumed by such conduit borrower. The City Finance Director
shall be the primary contact for all conduit borrowers and related compliance matters.
III. Use of Bond -Financed Property
a. Use of Bond -financed property when completed and placed in service will be reviewed
by the City Finance Director and, as applicable, the City Engineer. Appropriate
department/facility managers, including staff responsible for asset management, shall
be trained regarding restrictions on the use of Bond proceeds and facilities financed
thereby and instructed to consult with regarding any third -party contract concerning
use of the facilities, including without limitation leases, use, management or service
contracts, and research contracts.
b. Upon issuance of Bonds, there shall be no expectation that the Bond -financed
property will be sold or otherwise disposed of by the City during the term of the Bonds,
except for replacement due to normal wear and tear or obsolescence.
c. Agreements with third parties for lease, use, management, or any other service
agreement or research contract with respect to, or non -governmental use in respect of,
Bond -financed property will be reviewed prior to execution for compliance with the
Code. Such agreement will be approved by the City Finance Director, who will be
responsible for determining whether the proposed agreement (1) results in private
business use of the facilities, and (2) Revenue Procedure 2017-13 and (3) Revenue
Procedure 2007-47 (regarding research sponsorship agreements).
d. No item of Bond -financed property will be sold or transferred by the City without
approval of the City Administrator or City Attorney, who shall seek advice of Bond
Counsel as necessary, to provide guidance as to "remedial action" that may be
required under the applicable Treasury Regulations if Bonds financing such property
remain outstanding as of the date of sale or transfer of such property. Remedial action
is summarized in Exhibit B hereto.
e. The City acknowledges that any sale, transfer, change in use, or change in users of
the Bond -financed property may require remedial action, as previously described, or
resolution pursuant to the IRS Voluntary Closing Agreement Program (or WCAP") to
assist in resolving violations of the federal tax laws applicable to the Bonds.
IV. Investments
a. Investment of Bond proceeds in compliance with the arbitrage and rebate
requirements of the Code and applicable Treasury Regulations will be managed and
supervised by the City Finance Director.
b. Guaranteed investment contracts ("GICs") will be purchased according to the fair
market value provisions of applicable Treasury Regulations, including bid
requirements and fee limitations.
c. Calculation of rebate liability will be performed annually by the City Finance Director or
as needed by outside consultants of the City.
d. Upon final expenditure of the gross proceeds of Bonds, and in any event promptly
following the fifth anniversary of the date of issuance of the Bonds or earlier retirement
of the Bonds, the City Finance Director will consult a qualified professional to prepare
a spending exception report or an arbitrage rebate computation (as applicable) for the
issue of Bonds.
e. Rebate payments, as required based upon the advice of a qualified professional, will
be made with Form 8038-T no later than 60 days after (a) each anniversary of the date
of issuance of the Bonds and (b) the final retirement of the Bond issue.
V. Record Management and Retention
a. Management and retention of records related to Bond issues will be maintained by
City Administration staff.
b. Records for Bonds will be retained for not less than the life of the Bonds, plus any
refunding bonds, plus three years. Such records may be in the form of documents or
electronic copies of documents, appropriately indexed to specific Bond issues and
compliance functions.
c. Retainable records pertaining to Bond issuance shall include a transcript of documents
executed in connection with the issuance of the Bonds and any amendments; and
copies of rebate calculations and records of payments, including IRS 8038-T forms.
d. Retainable records pertaining to expenditures of Bond proceeds include requisitions;
trustee statements, if applicable; and final allocation of proceeds.
e. Retainable records pertaining to use of Bond -financed property include all third -party
contracts concerning use of the facilities, including (without limitation) leases, use,
management or service contracts, and research contracts.
f. Retainable records pertaining to investments include GIC documents under the
Treasury Regulations, records of purchase and sale of other investments, and records
of investment activity sufficient to permit calculation of arbitrage rebate or demonstrate
that no rebate is due.
VI. Overall Responsibility
a. Overall administrative and coordination of this policy and the procedures set forth
herein are the responsibility of the City Finance Director.
b. Review of compliance with this policy and the procedures set forth herein shall be
undertaken periodically, and in any event, not less than annually.
c. The City understands that failure to comply with these policies and procedures could
result in the retroactive loss of the exclusion of interest on Bonds from federal gross
and Minnesota taxable net income; and thus, it would be advisable to consult with
Bond Counsel in advance regarding deviations from the facts and expectations as set
forth in the closing certifications relating to any issue of Bonds_
d. Any violation or potential violations of federal tax requirements shall promptly be
reported to the City Finance Director, and the City Finance Director will engage
qualified consultants and bound counsel to further investigate potential violations or
undertake appropriate remedial actions, which actions shall be approved by the
governing body of the City.
EXHIBIT A
REIMBURSEMENT BOND SUMMARY
Following is a general summary of the requirements relating to bonds that are issued to reimburse
expenditures that were paid prior to the date of issuance of bonds ("Reimbursement Bonds").
Reimbursement Bond proceeds cannot be used to reimburse expenditures paid more than 60 days
prior to the adoption of the declaration of official intent/reimbursement resolution, which must
contain:
• a general function description of the property to which the reimbursement relates or an
identification of the fund or account from which the expenditure is to be paid and a general
functional description of the purposes of such fund or account; and
• the maximum principal amount of debt to be issued.
Reimbursement Bonds must be issued not later than 18 months after the later of (i) the date on
which the original expenditure is paid, or, ii) the date on which the property is placed in service, but
in any case, not more than three years after the date on which the original expenditure is paid. If
possible, actual reimbursement should be made within 30 days of the date of issuance of the
Reimbursement Bonds.
Note that there are exceptions for "de minimis" amounts (not in excess of the lesser of $100,000 or
5% of proceeds of the issue) and for "preliminary expenditures" (such as architectural, engineering,
surveying, soil testing and similar costs and costs of issuance), so long as such preliminary
expenditures do not exceed 20% of the aggregate issue price.
REMEDIAL PROVISIONS APPLICABLE TO BONDS
The City acknowledges that any deliberate action by the City after Bond issuance that results in a
satisfaction of private business tests or the private loan test will result in private activity bond status
unless one or more qualifying remedial actions are taken by the City. Specifically, Treasury
Regulations provide that actions are not treated as deliberate actions if (A) five conditional
requirements are met, and (B) one of three remedial actions is taken, with respect to the disposition
proceeds and nonqualified bonds*:
CONDITIONAL REQUIREMENTS
1. Reasonable Expectations — The City reasonably expected on the issue date that it would not
meet the private business tests or the private loan test for the whole term of the bonds; and
2. Reasonable Bond Maturity — The term of the issue must not be unreasonable long; this
requirement is met if the weighted average maturity of the bond issue is not greater than
120% of the expected economic life of the property financed; and
3. Fair Market Value Consideration — The terms of any agreement (relating to satisfaction of a
private activity bond test) must be bona fide and at arm's-length, and the new user must pay
a fair market value consideration for the use of the bond -financed property; and
4. Disposition Proceeds Are Gross Proceeds — The City must treat any disposition proceeds as
gross proceeds subject to arbitrage/rebate restrictions; and
5. Proceeds Spent for Authorized Purpose — Except as described with respect to redemption
and defeasance options below, prior to deliberate actions, the affected proceeds must have
been spent for the authorized purposes under the applicable bond documents.
REMEDIAL ACTIONS — Under Treasury Regulations, Sections 1.141-12(d), (e) and (f)-
1 . Redemption of Non -Qualified Bonds — Under the general rule, all nonqualified bonds of the
issue must be redeemed. Tax-exempt bond proceeds (i.e., refunding bond proceeds) cannot
be used unless the tax-exempt bonds are qualified bonds, taking into account the purchaser's
use of the facility. The bonds must be redeemed within 90 days of the date of the deliberate
action or a defeasance escrow for the bonds must be established within such 90-day period.
Special rules apply to transfers exclusively for cash and to defeasance escrows.
* The portion of the outstanding bonds in an amount that, if the remaining bonds were issued on the date on which the
deliberate action occurs, the remaining bonds would not satisfy the private business use test or the private loan
financing test, as applicable. The amount of private business use is the highest percentage of business use in any
one-year period, commencing with the deliberate action
2. Alternative Use of Disposition Proceeds — To meet this requirement, all disposition proceeds
must be in cash, the City must reasonably expect to expend the proceeds within 2 years, the
new use must not meet the private business tests or the private loan test (and the City cannot
take any action subsequent to the date of the deliberate action to cause the tests to be met),
and any unused proceeds must satisfy the redemption requirement in the preceding
paragraph.
3. Alternative Use of Facility — This remedial action is satisfied if the bond -financed property itself
(as distinguished from the proceeds of the issue)is used in an alternative manner (e.g., for a
different purpose or by a different person); the nonqualified bonds are treated as reissued on
the date of the deliberate action and independently meet all of the requirements for tax
exemption under Sections 141 through 150 of the Code, except the arbitrage and rebate rules
of Section 148, for the remaining term of the nonqualified bonds; the deliberate action does not
involve a transfer of the property to a purchaser that finances the acquisition with the proceeds
of another issue of tax-exempt bonds; and any disposition proceeds, other than those arising
from an agreement to provide services, resulting from the deliberate action are used to pay
debt service on the bonds on the next available payment date or escrowed within 90 days of
receipt and yield restricted to pay debt service on the next available payment date.
The above is only a brief summary of remedial actions, and additional special rules may be
applicable. As provided in the City's Compliance Procedures for Tax -Exempt Bonds, the City
Finance Director shall seek advice of Bond Counsel as necessary to provide guidance as to "remedial
action" that may be required under the applicable Treasury Regulations.
The Commissioner of the IRS may, by publication, provide for additional remedial actions. In
addition, the IRS provides a program in which issuers/borrowers which cannot meet a listed remedial
action can enter into a closing agreement with the IRS to avoid private activity bond status. The
closing agreement program includes several conditions, including providing for the redemption of the
bonds and paying the IRS an amount based on an assumption that the non -qualified bonds are
taxable from the date of the subsequent act until they are redeemed.
PURCHASING POLICY
Policy Overview
It is the intent of the City of Hutchinson to purchase, in the most efficient and effective manner
possible, those goods and services necessary to conduct City operations. To accomplish this, a
formal set of purchasing procedures has been adopted. This policy recognizes and retains that the
ultimate purchasing authority is that of the City Administrator. This policy delegates purchasing
authority as outlined below.
Public Purpose
The City Council recognizes that public funds may only be spent if the expenditure meets a public
purpose and the expenditure relates to the governmental purpose for which the City of Hutchinson
was created.
The meaning of "public purpose" is constantly evolving. The Minnesota Supreme Court has followed
a broad approach and has generally concluded that "public purpose" means all activity that meets all
of the following standards:
• The activity will benefit the community as a body.
• The activity directly relates to the function of government.
• The activity does not have, as its primary objective, the benefit of a private interest.
Purchasing Agent
The City Administrator shall be the chief purchasing agent of the City. The City Administrator is
responsible for the citywide purchasing function and shall have the authority to delegate powers to
the City Department Directors and Supervisors for purchasing items within their respective budgets.
Purchasing
Purchasing and budgetary control is the responsibility of the department Director. Departments shall
strive to obtain the best possible prices and value, and are encouraged to buy locally whenever
possible or practical.
Each department shall have on file with the Finance department a list of employees authorized to
obligate appropriations of that department. Authorized employees shall be regular full-time or regular
part-time employees of the City. Individual exceptions may be considered by the City Administrator,
Finance Director and Department Director.
In no case shall an employee make a purchase for personal use utilizing his/her city purchasing
authority. Violation of this policy may result in an employee's purchasing authority being revoked.
1) Purchasing Limits:
$ 0 to $ 4,999 Department Director approval, or approved designee
$ 5,000 to $ 24,999 Finance Director or City Administrator approval required
$ 25,000 to $ 49,999 Finance Director and City Administrator approval required
$ 50,000 to $ 99,999 174,999 Finance, City Administrator & City Council approval
required
$199,990 175,000+ Competitive Bidding required (certain exceptions)
2) Written Quotes:
a. Purchases estimated to cost less than $5,000 may be made without seeking more than
one quote, however more than one quote is encouraged.
b. Purchases estimated to cost more than $5,000 but less than $100,099 175,000 must
have at least two written quotes. Verbal quotes should not be accepted. The City will
maintain documentation for a period of at least one year of its efforts to obtain at least
two written quotes as required by state statute 471.345.
c. The City will require competitive bidding on the sale, purchase or rental of supplies,
materials or equipment and on contracts for the construction, alteration, repair or
maintenance of real or personal property estimated to exceed $440-,000 175,000.
3) Competitive Bidding
Competitive bidding is required for certain contracts estimated to exceed $100,900 175,000.
The competitive bidding process may not be avoided by splitting a contract into several smaller
contracts, each of which is under the competitive bidding threshold.
4) State Pricing & Cooperative Purchasing
Contracts or purchases estimated to exceed $25,000 must consider the availability, price and
quantity of supplies, materials, or equipment available through the State's Cooperative
Purchasing Venture (CPV) before buying through another source.
The City may also purchase through a national municipal association's purchasing alliance or
cooperative. The alliance or cooperative must have been created by a joint powers agreement
and must purchase items from more than one source based on a competitive bidding process
or competitive quotations. The City currently is a member of the State's CPV and a few
national joint powers purchasing alliances Galled NiP . Contact the Finance Director with
questions on accessing pricing for these agencies.
5) Purchase Orders
A purchase order system is essentially a budgetary control mechanism that provides the
following:
• Achieves the best pricing by soliciting multiple vendor quotes in addition to state
contract pricing and cooperative purchasing availability.
• Ensures the department has sufficient budgetary dollars to fund the purchase.
• Formally documents the agreed upon price for both parties and prevents
overpayments.
• Serves as a legal document that can be enforced in the event of a disagreement r,
the vendor regarding cost, scope of work or quantity of merchandise.
• Complies with state statutes bidding and vendor quote retention requirements.
An approved purchase order is required for all purchases estimated to exceed $5,000.
Departments may not place an order without a prior approved purchase order.
a Departmental Responsibility
i. Obtaining at least two written quotes
ii. Preparing and forwarding a purchase requisition to the Finance Director for
review
• A purchase requisition is applicable to only one vendor. A project with
multiple vendors each exceeding the $5,000 threshold requires separate
requisitions for each vendor.
• Attach the written quote documentation
• Provide a reasonable explanation of the requested purchase within the
system's note feature.
• Include the proper departmental expense coding.
• Obtain the department director's approval.
iii. Forwarding a copy of the approved purchase order to the vendor, if required.
iv. Providing written explanations within the accounts payable invoice system in the
event of cost differences from the purchase order amount.
v. Departments should consider canceling and issuing a revised purchase order if
the scope of a project/purchase changes significantly from the original quoted
price.
b Finance Department Responsibility
i. The Finance Director will review each purchase requisition in a timely manner.
ii. An approved purchase order, or an explanation in the case of a denied
requisition, will be provided to the originating department generally within 2-3
business days.
iii. The finance department will maintain scanned images of all approved purchase
orders and corresponding written quotations for compliance with state statute.
iv. Finance Director and City Administrator approvals are required prior to seeking
City Council approval on purchases over $50,000.
v. Purchase orders remaining open at the end of a calendar year will be rolled
forward to be applied against the next year's budget. Departments have the
option to cancel the purchase order by contacting the Finance department.
c Purchases not requiring a Purchase Order
i. Annual Service Contracts — The City shall evaluate the performance of service
contracts at least every three years and determine if the City will renew the
agreement or seek written proposals from service providers.
ii. Professional Services - Contracts with a total cost of $5,000 to $50,000 to
provide professional services shall be approved by the City Administrator.
Contracts with a total cost over $50,000 shall be approved by City Council. A
purchase order is not required if a contract is executed.
iii. Inventory Purchases - Purchases for inventory assets of certain operations
shall not require a purchase order as doing so would delay purchases and
potentially hinder operations. This shall apply to the Liquor store, Creekside's
bagging production process, Water and Sewer chemical purchases and HATS
fuel purchases. The department directors shall be responsible for ensuring that
the City is receiving favorable pricing.
iv. Emergency Purchases - Purchases required by emergencies which impair the
City's ability to deliver services shall be outside the scope of this policy. In these
rare instances, a purchase order is not required, however the departmental
director shall t o hriof writton Pxp!aRatinR of tho omorgeRGY sits atinn ono
attorh to the invniro proseRted for paymo„+ explain the emergency reason within
the accounting system's invoice note feature.
Change Orders
Project change orders require either City Administrator or City Council approval. The City
Administrator is authorized to approve change orders less than $50,000. Change orders of $50,000
or more shall be approved by the City Council.
Disbursement Methods
The following disbursement methods are available for departmental approved purchases:
1) City Check — This is the standard disbursement process described in the next section.
2) Departmental Procurement Card — Covered under separate policy; "Procurement Card
Policy".
3) Vendor In -House Charge Accounts — The City currently utilizes charge accounts with
various vendors in the City. The Finance department will maintain a list of departmental
employees authorized to make purchases and will submit updated lists to the vendors at least
annually. Authorized purchasers shall be regular full-time or regular part-time employees.
4) Vendor Charge Cards — The City currently utilizes vendor charge cards for a limited number
of vendors. Departments will control access to these cards to prevent unauthorized use and
will notify the Finance Director immediately of lost/stolen cards or fraudulent activity. No new
charge cards shall be set up without the approval of the Finance Director.
5) Petty Cash — Departmental petty cash funds may be utilized for small purchases. The
department shall maintain detailed receipts for each purchase and periodically submit to the
Finance department for replenishment. Receipts shall be properly coded and contain an
adequate explanation of the expense along with departmental approval.
Disbursement Process
Departments will submit pFepeFly Gelled and dirosteF appFryed- i.Ayeir•or• try the AAAnl1Rts Payable
SpeGialis approve their invoices within the Accounts Payable system by 12:OOpm on Monday, one
week prior to each City Council meeting. In the case of a Monday holiday, the deadline shall be
12:OOpm on the prior Friday. Invoices s, ihea approved after the deadline may be delayed to the
next council check run. Checks will be distributed on the Wednesday after each City Council
meeting.
1) Invoices — Content and Approvals
a. Payments will only be made from original mailed or emailed invoices.
i. Payments will not be made from faxes, photocopies, vendor statements or
quotes/estimates.
b. The City of Hutchinson shall be named on the invoice as the purchaser.
Invoices naming another entity as the purchaser will not be processed for
payment. The vendor should be contacted to correct the invoice.
c. The invoice date shall accurately reflect the actual date of service or purchase.
d. The invoice is sent directly from the vendor to the City's Accounts Payable Specialist at
City Center (HutchAP@hutchinsommn.gov).
i. The A/P Specialist will stamp each invoice with a received date and route to the
appropriate department for approvals.
e. A vendor invoice should provide a reasonable description of the purchase or service,
ch:;" hp nn +ho irwniro
f.
dmreG+hi OR +ho inyeiro and not en a separate paper noc�_i�eDepartments will
provide the proper budgetary expense code for each invoice.
g. Departments are responsible for ensuring that the merchandise is received or the
services are performed prior to submittiRg approving an invoice for payment.
i. The City generally does not provide down payments for merchandise or services.
Progress payments may be made to vendors based upon a reasonable
percentage of completion for the service or project.
ii. Departments shall work directly with the vendor to correct any issues regarding
incorrect or defective merchandise or service.
Prompt Payment of City Bills
Minnesota Statute 471.425 requires cities to pay each vendor obligation according to the terms of the
contract. If no contract terms apply, payment must be made within the standard payment period of 35
days from the date of receipt.
1) Date of receipt is defined as the later of:
a. The completed delivery of the goods or services, or the satisfactory installation,
assembly or specified portion thereof; or
b. The receipt of the invoice for the delivery of goods or services.
2) Invoice Errors
a. The City must notify a vendor within 10 days of the date of receipt if the invoice is
incorrect. The 35-day standard period begins when a corrected invoice is received.
3) Payment of Interest
a. The City must calculate and pay interest if an invoice is not paid according to the terms
of the contract, or if no contract terms apply, within the standard period of 35 days.
i. Interest rate shall be 1.5% per month or part of month.
ii. The minimum monthly interest penalty that the City shall calculate and pay a
vendor for the unpaid balance of any one overdue bill of $100 or more is $10.
iii. For an unpaid balance of less than $100, the City shall calculate and pay the
actual interest penalty due to the vendor.
4) Prompt payment to Subcontractors
a. Each contract of the City must require the prime contractor to pay any subcontractor
within 10 days of the prime contractor's receipt of payment from the City for undisputed
services provided by the subcontractor.
b. The City's contract must require the prime contractor to pay interest of 1.5% per month
or any part of a month to the subcontractor on any undisputed amount not paid on time
to the subcontractor.
i. The minimum monthly interest penalty payment for an unpaid balance of $100 or
more is $10.
For an unpaid balance of less than $100, the prime contractor shall calculate and
pay the actual interest penalty due to the subcontractor.
Prior Policv
The policy above supersedes the prior city policy #1.11.
PROCUREMENT PURCHASING CARD POLICY
POLICY:
The purpose of this policy is to provide detailed information regarding the use of proGuromon+
purchasing cards (p-card) authorized by the Hutchinson City Council and assigned by the City
Administrator to selected department directors to purchase goods and services for the City. The use
of the ^r^^UremeRt p-card is an alternate means of payment and is not meant to replace the standard
purchasing order system of the city. The use of pFGGUremei# p-cards should only take place when the
normal purchasing order system cannot be used and/or the use of a r-rviZa [ p-card is the only
purchasing mechanism allowed.
STATUE AUTHORITY:
Minnesota Statute 471.382 Credit Cards. "A city council may authorize the use of a credit card by
any city officer or employee otherwise authorized to make a purchase on behalf of the city. If a city
officer or employee makes or directs a purchase by credit card that is not approved by the city
council, the officer or employee is personally liable for the purchase. A purchase by credit card must
otherwise comply with all statutes, rules, or city policy applicable to city purchases."
POLICY ADMINISTRATION:
The City Administrator shall determine the appropriate department directors to be issued City
„MGUremeRt p-cards. The Finance Director, with the oversight of the City Administrator, is hereby
designated the responsibility of ^r^^UremeRt p-card issuance, accounting, monitoring of use, retrieval,
payment of all charges, maintenance of a list of authorized users and cards assigned to them and
general compliance with the City's Pr^^„romo^t Purchasing Card Policy.
MAXIMUM LIMITS:
The monthly maximum card limit per director will be established by the City Administrator and
Finance Director based on the anticipated need.
DOCUMENTATION:
Itemized invoices or receipts are required to support all ^r^^UremeRt p-card purchases since the
monthly billing statements lack sufficient detail to comply with Minnesota Statutes. For purchases in
which a receipt is not normally available, a copy of the completed application or order form should be
used as a receipt (for example, conference registration forms).
CARDHOLDER RESPONSIBILITIES:
1) The Department Director is responsible for the authorized use of the City issued Prnr„reMeRt
p-card and for any purchases made on it.
2) Ensure that the prGGUremeiR p-card is used in compliance with the City's Purchasing Policy.
a. Purchases must be budgeted.
b. Use of the ^r^^UFeme„+ p-card for personal purchases is strictly prohibited. If the
„r^^„remeRt p-card is inadvertently used for a personal purchase, contact the Finance
Director/City Administrator immediately. Not reporting inadvertent personal purchases
will result in immediate revocation of the PFGGUFemei# p-card and the cardholder may be
subject to disciplinary and/or legal actions. The cardholder will be personally
responsible for reimbursing the City for any inadvertent personal purchases.
3) The ^r^^Uremen+ p-card may only be used for the purchase of goods or services for official
City business.
a. The ^r^^Uremen+ p-card may not be used for cash advances or any other type of
purchase not permitted under the City's Purchasing Policy. No cardholder shall be
allowed to make any purchases for personal use through the City. Use of the p-card for
personal use or inappropriate purchases, as deemed by the City Administrator, shall be
reimbursed and may result in discipline. Two or more inappropriate purchases may be
cause for revocation of the GFediVPF9n61remeRt p-card.
b. Purchase of motor fuels is prohibited, with the exception of extended travel with a city
owned vehicle. Fuel for personal vehicles used for official city business is reimbursed to
the employee based on the IRS mileage reimbursement through the Employee Expense
Reimbursement process covered under separate policy.
c. Cardholders shall verify with the Finance Department and notify vendors if the
transaction is exempt from Minnesota sales tax. All transactions should be exempt from
all local sales tax.
d. Online orders using a City p-card should be completed on a city computer as personal
computers or devices may not be properly protected against online fraud.
4) Authorized cardholders are responsible for the secure custody of the ^r^^UreMen+ p-card and
protection against theft, misuse and fraud.
a. Notify the Finance Director immediately if the PF9GHFemei# p-card is lost or stolen and
when fraudulent activity is suspected.
b. When fraudulent activity is suspected, immediately contact the prom Bremen+ p-card
company at the phone number listed on the back of the card. The procurement card
must not be used again until the situation is resolved. A new procurement card will be
issued if the activity was in fact fraudulent.
c. To prevent fraudulent activity, the cardholder shall not make transactions over
unsecured websites. Giving out PF9GHFemeRt p-card information over the telephone is
not recommended and should only be done in rare instances where the order cannot be
completed in any other manner.
5) Monthly review, approval and reporting of transactions:
a. At the end of each month, department directors shall have 10 days to review and
approve the prior month purchases via the Wells F,rno ^"'i"e "^ monthly activity file
provided by the Finance department.
i. Each transaction shall be evidenced by a detailed receipt or order confirmation.
ii. Directors shall code each purchase to the correct departmental expense account
and provide an adequate description of the expense within the ^"'i"e peFte
monthly activity file.
iii. Directors shall prim from the online portal a licking of all purrhases morale dWino
+he mePth :;Pd C;, ,hmi+ remit the completed monthly activity file to the Finance
department along with all detailed receipts supporting the purchases. Finance
shall receive this information by the 11th day of the month, or next business day if
the 11th falls on a weekend.
b. The Finance department will review all transactions and provide the final approval to
Wells F=ar-go the p-card provider to deduct from the City's bank account the total
payment amount to cover all authorized purchases.
6) Returns or Disputed Transactions:
a. It is the cardholder's initial responsibility to work directly with the merchant to receive
proper credit on returned merchandise or disputed transactions.
b. Finance Department will be available to assist cardholders with returns or disputed
transactions if initial contact by the cardholder is unsuccessful.
7) The cardholder must immediately surrender the procurement card to the Finance Director
upon retirement or termination of employment. All receipts for current purchases shall be
coded and submitted to the Finance Director when the credit card is surrendered.
8) Any exceptions to this policy must be approved in advance by the City Administrator.
SUSPENSION OR REVOCATION OF CARDS:
If any of the following occur, immediate suspension and/or revocation of the preGuremel# p-card
privileges may result, including discipline, as determined by the City Administrator-
1 ) Use of the p-card for personal purchases or cash advances.
2) Unauthorized use of p-card.
3) Failure to notify the ^r^^„remeRt p-card company and Finance Director of a lost or stolen card,
and fraudulent activity.
4) Repeated failure to submit in a timely manner the monthly billing statement with proper
receipts/support for payment.
5) Repeated failure in which the attached receipts do not match the item description or dollar
amounts listed on the monthly billing statement with no explanation.
Applicant:
City of Hutchinson
Request for PFOGUremenf Purchasing Card
Department:
Requested Monthly Card Limit: $2,000 $5,000 $10,000 Other: $
By requesting a City PFGGUFemeR4 p-card, I acknowledge the following:
1. The ^r^^UremeRt p-card is to be used only to make purchases in compliance with
Minnesota Statutes and the City's Purchasing Policy.
2. The card must be used in accordance with the City's Pr^^„romo^t Purchasing Card Policy.
3. Violation of the Pr^^„romo^# Purchasing Card Policy may result in suspension or
revocation of use privileges. Employees found to have inappropriately used the
procurement card will be subject to discipline, including the requirement to reimburse the
City for all costs associated with such improper use.
Director Signature:
Authorization Information
Approved Monthly Card Limit: $
City Administrator Approval:
Finance Director Approval:
Date:
Date:
Date:
This fully approved request gives the Finance Director authorization to issue a City of Hutchinson
„FOG „-o„ ent p-card in the name of the applicant with a monthly card limit as approved by the City
Administrator.
City of Hutchinson
Acknowledgement of Receipt of PFOGUrement Purchasing Card
I acknowledge that on the date indicated below, I received my City of Hutchinson Pr^^, �romon+
Purchasing Card. I have previously received a copy of the Pr^^„rernei# Purchasing Card Policy
explaining the use and responsibilities of the ^r^^„remei# p-card. I understand that:
1) The ^r^^„remeRt p-card is a cost-effective method for the purchase and payment of small
dollar material transactions and is limited to $ per month.
2) The ^r^^„remeRt p-card is to be used solely for City business purchases; not personal
purchases.
3) 1 am responsible for reconciling monthly statements and maintaining accurate accounting
records.
4) 1 must attach the itemized receipt with my statement each month.
5) Should my employment with the City of Hutchinson terminate, I am responsible for
returning the ^rn^,.rerneRt p-card to the City Administrator or Finance Director, along with
all receipts for purchases within the current billing cycle.
If the ^r^^„remeRt p-card is used for personal purchases, for unauthorized items, or used by
someone not authorized to do so, I hereby agree to personally pay the City for such purchases and
hereby authorize the City, if necessary, to withhold from my paycheck any amount necessary to pay
these charges.
This acknowledgement will be kept in my personnel file and I may be subject to discipline or
termination from employment for violation of this policy.
Purchasing Card #:
Employee Name:
(please print)
Employee Signature:
Wells Carer^ Customer Service: 1-844-386-8276
Date:
TRAVEL & MEAL EXPENSE REIMBURSEMENT POLICY
Policy Overview
This policy recognizes the fact that certain travel for official city business may require employees or
elected officials to incur expenses subject to reimbursement by the City. Reasonable travel costs for
out of town business meetings, conferences and training seminars may qualify for reimbursement as
provided by this policy. To be reimbursed by public funds, expenditures must meet a "public
purpose", defined by Minnesota Supreme Court as meeting all of the following:
➢ The activity will benefit the community as a body.
➢ The activity directly relates to the function of government.
➢ The activity does not have, as its primary objective, the benefit of a private interest.
This policy is intended to provide guidelines regarding which travel related expenditures are for public
purpose and authorized in accordance with the City's annual budget. The City Administrator and
Finance Director shall review all employee expense reimbursement requests and will determine if an
expense does not meet a public purpose and is not subject to City reimbursement.
Travel Approval
Each department director is responsible for ensuring that employee travel is for City business and is
consistent with City policy. Department Directors are responsible for approving all travel requests
within his/her respective departments and will ensure that departmental budget dollars are sufficient
to cover requested travel prior to approving. Requests fee travel by DiFeGtGFS shall have Pfk).F
appFeval by the city Administrator-. The following approvals are needed prior to employee travel:
1) Same Day & Overnight Travel - Department Director approval is required.
2) Out of State
a. All out-of-state travel exceeding a 300-mile radius from Hutchinson must be approved
within the annual budget process and approved separately by City Council. The
frequency of this out-of-state travel shall not exceed once every other year. In the event
an additional conference or seminar presents itself, the council may use its discretion in
considering the request.
b. All out-of-state travel within a 300-mile radius of Hutchinson shall be approved by the
City Administrator and does not require City Council approval.
Reimbursable Expenses
1) Transportation
Several means of transportation exist and each travel request shall consider the least -cost
method. For the maiority of travel requests, a City vehicle provides the least -cost to the City
and shall be considered before any other means. Vehicles from other departments may be
available and shall also be a consideration.
a) City Vehicle — All direct expenses incurred will be reimbursed, including fuel, oil and
maintenance/repair expenses. Only City employees are authorized and insured to drive
a city owned vehicle.
b) Personal Vehicle — When a city vehicle is not available, a personal vehicle may be
authorized for use. City reimbursement for the use of a personal vehicle is based on
the current IRS approved mileage rate using the shortest route. If the travel originates
from home, the mileage reported for reimbursement should be from the home or the
employee's normal City work facility, whichever is less. An employee's normal
commute mileage will not be reimbursed.
c) Airplane/Other — travel by any means other than by vehicle shall be approved by the
City Administrator.
d) Other related costs — Reasonable parking fees, car rental and fares for rail, bus, taxis
and shuttles are all subject to reimbursement if related to City business. Taxis and
shuttles reimbursement may include a maximum gratuity of 20%. Gratuities in excess
of 20% will not be reimbursed by the City. A standard model sedan shall be used when
renting a car unless unusual circumstances dictate otherwise.
e) Employee Time — Actual driving time required for City business travel is considered
hours worked for non-exempt employees when the travel occurs during the employee's
regular work hours. This includes weekend travel that occurs during the same Monday -
Friday normal work schedule. These compensable hours may result in overtime rates
being applied. Travel time outside of the employee's regular work hours is not
compensable. An employee's commute time to work is also not compensable.
2) Lodging
The City will reimburse the reasonable cost of lodging for training, seminars or conventions of
two or more days if the event site is outside a 50-mile radius of Hutchinson.
All employees shall ask for a standard room and inquire about the availability of a government
discount. In the event that a standard room is not available, other lodging establishments shall
be contacted prior to booking a non-standard room. A non-standard room is reimbursable if it
is at a contract rate through the event, offered at the same rate as a standard room or if no
other options are available within a reasonable distance from the event.
An increase in lodging rate due to family members staying is not reimbursable. The employee
will be reimbursed only for s the cost of a standard room.
Rental homes, such as through Airbnb and Vrbo, may be a more cost effective alternative to
hotel rooms if multiple employees are on the same overnight trip. Departments may book a
rental home if the cost is less than a hotel, with advanced approval from the City Administrator
and Finance Director.
Entertainment expenses incurred will not be reimbursed, such as in -room movies, mini -bar and
optional entertainment -type events provided at conferences.
3) Meals
The City generally will reimburse the cost of job -related meals only if an employee's travel
requires an overnight stay or if a business meeting is held during typical meal hours.
The following limits are in place for the total cost of each meal, including sales tax and gratuity:
Breakfast: $45 $20 — Travel begins before 6:OOam and extends beyond 9:OOam
Lunch: $2-0 $25 — Travel begins before 11:00am and extends beyond 2:OOpm
Dinner: $30 $35 — Travel begins before 4:OOpm and extends beyond 7:OOpm
a) A meal may be subject to reimbursement if actual travel time exceeds the times listed
above. For example, the cost of a dinner is considered unnecessary and not
reimbursable if the employee is expected to arrive home before 7:OOpm without
stopping for a meal.
b) All reimbursement requests for meals must include an itemized receipt detailing the
food and drinks purchased. The signed credit card slip is not sufficient for
reimbursement.
c) Meetings scheduled and held during typical meal hours do not automatically necessitate
that a meal will be provided at City expense. Per IRS regulations, a meal must have a
clear business purpose in order to be reimbursed.
tax and gratuity.
e) Gratuities paid by the employee over 20% will not be reimbursed. An employee will
reimburse the City for any cost in excess of the meal limits or in excess of the 20%
gratuity when the departmental purchasing card is used to pay for the meal.
f) The above dollar amounts cannot be combined in any fashion in order to reimburse an
employee for a meal costing more than the maximum amount listed per specific meal.
For example, an employee cannot use the breakfast and lunch amounts to justify
reimbursement of a $60 dinner.
g) Employees are expected to take advantage of meals provided by the conference or
seminar. The City will not reimburse an employee for a purchased meal when a meal
was provided by the event.
h) If more than one employee is present at a job -related meal, one employee may pay for
the entire meal cost of all employees. The reimbursement request shall clearly identify
each employee present for the meal.
i) If non -city personnel are present at a job -related meal, the city may reimburse the
paying employee for the cost of the meal(s) of the individual(s) if an itemized receipt and
a form indicating who attended, where the meal was held and the city -related purpose
for the meal is submitted and approved by the Department Director and City
Administrator. Reimbursement of a non -employee's meal is subject to the same dollar
limit as the employee.
j) When family members are present, a separate detailed receipt for the employee's meal
shall be requested.
k) The daily meal limits may be adjusted for out-of-state travel by the Finance Director
based on current IRS per diem guidelines.
1) The City may pay the cost of employee meals as part of city-wide events where all
employees are invited. Individual departmental meals or picnics will not be reimbursed.
Any meals of "appreciation" for employees or non -employees generally will not be
reimbursed.
4) Registration or Membership Cost
The City will reimburse the costs for registration, training and membership incurred to attend
conferences, seminars or training sessions. A check request shall be submitted to the City's
accounts payable department prior to the event as the primary option for payment of this type
of cost. The request shall include the necessary documentation evidencing the amount
payable and provide sufficient time to process a check prior to any payment due date. A
departmental purchasing card may also be used for payment based upon receipt of all
necessary travel approvals prior to making payment. Departments shall strive to utilize any
early registration discounts.
5) Non -Reimbursable Costs
a. Alcoholic beverages — whether consumed by an employee or a non -employee
b. Gratuities exceeding 20%. An employee will be required to reimburse the City for
gratuities in excess of 20% if a department purchasing card was used.
c. Snacks and other food/beverages outside of the daily meal reimbursements
d. Meals or events for spouses or family members traveling with an employee
e. Meals when an event provides for a meal
f. Private automobile expenses, including gas, oil, repairs
g. Traffic citations or fines
h. Cost related to damage by the employee, such as hotel rooms and rental car.
i. Travel between an employee's home and work facility
j. Entertainment expenses
k. In -room movies, mini -bar or other hotel services not required for City business
I. Optional entertainment events unless included as part of the overall conference
registration fee (e.g. optional golf rounds, sporting events, concerts)
m. Personal losses incurred while on City business
n. Other costs that do not meet the public purpose definition as determined by the City
Administrator and Finance Director
Emnlovee Expense Reimbursement Form
The Finance Department shall annually provide an updated Employee Expense Reimbursement
Form (Exhibit B) to all employees. This form shall be used for all reimbursement requests related to
approved travel or work -related expenses paid by an employee.
1) Retailed Itemized Receipts — each item submitted for City reimbursement must be supported
by an itemized receipt indicating a reasonable explanation for the expense. All receipts shall
be attached to each reimbursement request.
a. Meals will be reimbursed based on a detailed itemized receipt. When a credit card is
used to purchase the meal, both an itemized receipt and a credit card charge slip
indicating the tip amount shall be submitted.
b. Receipts for parking and taxis may not be available provided to the employee and may
be submitted for reimbursement without a receipt.
c. Mileage reimbursement for the use of a personal vehicle shall detail not only the
mileage but also the location traveled and the business reason for travel.
d. Proper departmental expense codes shall be used for each line item.
e. Unsupported expenses will not be reimbursed. If an employee is unable to get a
detailed receipt or the receipt is lost, a signed statement by the employee detailing the
purchased item, the business reason for the expense and certifying that the claim is
accurate must be submitted and approved by the Department Director. A copy of the
employee's credit card statement or cancelled check may also be provided to help
support the dollar amount being reimbursed.
2) Employees shall submit an employee expense reimbursement form with all necessary
supporting documentation to the appropriate Department Director for review and approval.
3) A Director -approved employee expense reimbursement form shall be forwarded to the
Accounts Payable Clerk who will route to the Finance Director and City Administrator for
approval prior to payment. Any issues will be communicated back to the employee for
correction/clarification.
4) The Finance department will make necessary corrections to reimbursement requests for
mathematical errors, gratuities in excess of 20%, to remove any alcoholic beverages and other
changes that may be necessary to comply with this policy.
5) Once approved, Rreimbursement will be made with the next City Council check register.
6) Employees shall submit an expense reimbursement claim no later than 60 days from the date
the expense was paid or incurred. If employee expenses are submitted for reimbursement
more than 60 days after the expense is incurred, the reimbursement may be taxable and
appropriate withholdings would need to be made through the payroll system.
Cash Advances
An employee may request a cash advance prior to an overnight business trip. The cash advance
shall be used only for expenditures related to official City business as specified within this policy. An
employee expense reimbursement form shall be completed upon the employee's return, detailing the
expenses subject to reimbursement, less the cash amount advanced. Expenses paid by the
employee above and beyond the cash advance amount will be subject to employee reimbursement
per this policy. Any portion of the cash advance that was not expended for a City related purpose
must be reimbursed to the City within 60 days.
The employee shall be responsible for any cash advance that is lost or stolen. In such instances, the
employee must reimburse the City within 60 days.
City Representation
Employees shall be aware at all times that they are representing the City of Hutchinson while
traveling out-of-town for official City business. Employees given the opportunity to be away from their
regular work and having their expenses paid are expected to perform in a similar manner as if they
were still at work. Conduct improper for a city employee will be treated as if it occurred during regular
working hours. At no times shall alcoholic beverages be consumed by any person(s) driving or riding
in a City of Hutchinson vehicle.
Prior Policy
The policy above supersedes the prior city policies #3.22 and #3.23.
FISCAL AGENT POLICY
Purpose
This policy defines the parameters necessary for the City of Hutchinson (City) to act as the fiscal
agent for a non-501(c)(3) organization (Other Entity) in order to secure grants or donations on behalf
of the Other Entity.
City Authority
All requests for the City to serve as fiscal agent shall be approved by the City Administrator. The City
Finance Director shall be made aware of all details related to approved fiscal agent projects for
proper accounting of proceeds and expenditures.
City Purchasing Policy
The City's purchasing policy must be followed in order to comply with the State of Minnesota
purchasing and contracting statutes. Vendor quotes shall be received, if required by policy, and the
contract shall be awarded to the lowest responsible bidder. Invoices paid by the City must be billed to
the City of Hutchinson and not another entity.
Public Purpose Expenditures
The City expenditure made on behalf of the Other Entity must meet a "public purpose", defined by the
Minnesota Supreme Court as meeting all of the following:
1) The activity will benefit the community as a body.
2) The activity directly relates to the function of government.
3) The activity does not have, as its primary objective, the benefit of a private interest.
The Minnesota Supreme Court further clarifies that activities that promote the following objectives for
the benefit of all the city's residents further a public purpose:
• Public Health
• Safety
• General welfare
• Security
• Prosperity
• Contentment
Donations
Donations related to a project with the City serving as fiscal agent shall be made directly to the City of
Hutchinson. The Hutchinson City Council shall formally accept all donations by resolution prior to
those funds being used for the designated purpose.
Grants
The Other Entity shall be responsible for the preparation of all grant documentation and grant
compliance, including reporting requirements. The City shall, upon request from the Other Entity,
supply supporting documentation or reports related to transactions incurred within the City's financial
system.
Other
The City shall not expend funds in excess of donations or grant proceeds received without City
Council or City Administrator approval.
EXHIBIT A
List of City Funds
Governmental Funds:
1.
General
Fund
2.
Special
Revenue Funds
a.
Rural Fire Department
b.
H.A.T.S.Operations
c.
Hutchinson Enterprise Center
d.
Economic Development Loan Funds
e.
HRA Loan Fund
f.
Tax Increment funds
g.
Public Sites Fund
h.
Tree Disease Mitigation Fund
3.
Debt
Service Funds
a.
Special Assessment G.O. Bonds Debt Service Funds
b.
General Obligation CIP Bonds Debt Service Funds
c.
Tax Increment Debt Service Funds
4.
Capital
Projects Funds
a.
Capital Projects Fund
b.
Equipment Replacement Fund
c.
Community Improvement Fund
d.
Airport Construction Fund
e.
Special Assessment Capital Improvement Funds
f.
Municipal State Aid Fund
Proprietary
Funds:
1.
Enterprise Funds:
a.
Liquor Fund
b.
Compost Fund
c.
Refuse Fund
d.
Water Fund
e.
Wastewater Fund
f.
Storm Water Fund
g.
Hutchinson Utilities Commission
2.
Internal Service Funds -
a. Eg yip meRt A laGemeRt P Ind
a--�ar�-rrcrrc-rce�crvcn�crrc-r-crrrcr
b.
Self -Insurance Fund
Component Units:
1. Hutchinson Economic Development Authority (EDA)
2. Hutchinson Housing Redevelopment Authority (HRA)
- HUTCHINSON CITY COUNCIL
H UTC H I N SO N Request for Board Action
A CITY ON PURPOSE.
Consideration of Authorizing the City Application for the MPCA FY24 SWC
Agenda Item: Resiliency Grant
Department: PW/Eng
LICENSE SECTION
Meeting Date: 12/12/2023
Application Complete N/A
Contact: John Paulson
Agenda Item Type:
Presenter: John Paulson
Reviewed by Staff ❑�
Consent Agenda
Time Requested (Minutes): 0
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
City staff has identified additional grant funding availability through the MPCA for Stormwater, Wastewater, and
Community (SWC) Resilience. The grant application process has a due date of December 14, 2023. The
application is currently under development and will likely include some cost share commitments from the City, to
be funded using budgeted funding for 2024. The MPCA has $750,000 in available grant funding for this round
in 2024. The City's current grant project was phased to distribute the cost over multiple years. The grant funds
being pursued are for phase 2 since we were not able to complete the entire city in phase 1.
The grant will be used to complete a hydrologic and hydraulic (H&H) modeling of the south half of the City storm
sewer system. The modeling will identify parts of the system that have adequate drainage capacity as well as
those that do not. The information will be used to prioritize drainage improvements and to inform us of future
system needs due to changes in precipitation intensity and duration.
The project budget and workplan are attached for reference. The total project cost is $135,044 and the grant
application will be requesting $81,200 from the MPCA, or 60% of the total project cost. The total cost includes
in -kind staff time estimated at $21,514. The City cash contribution is $32,330 if awarded the grant.
This grant, if awarded, would greatly reduce what is planned for the project as it is included in the 2025 City CIP
with a cash outlay of $100,000 (a savings of $67,670).
City staff will be available to answer any questions that you may have at the meeting.
We recommend approval to submit the MPCA SWC Resiliency Grant.
BOARD ACTION REQUESTED:
Approval to submit grant application.
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: New Bu
Included in current budget: Yes
PROJECT SECTION:
Total Project Cost:
Total City Cost: Funding Source: N/A
Remaining Cost: $ 0.00 Funding Source: N/A
MMINNESOTA POLLUTION
CONTROL AGENCY
520 Lalayelle Road North
St. Paul, MN 55155-4194
Planning Grants for
Stormwater, Wastewater,
and Community Resilience
Request for Proposals (RFP)
The RFP assists applicants in applying for state grants. This document describes the State Fiscal Year 2024 (FY24)
Planning Grants for Stormwater, Wastewater, and Community (SWC) Resilience, including information on who
may apply for funding, activities eligible for funding and other information that will help the applicants plan their
project and submit a competitive application. Applications are due no later than Thursday, December 14, 2023,
at 4:OOpm Central Time (CT).
The applicant should check the SWIFT Supplier Portal and the Minnesota Pollution Control Agency (MPCA)
Planning Grants for SWC Resilience webpage for any updates.
Contents
1. Project overview...................................................................................................................................... 1
2. Funding....................................................................................................................................................2
3. Eligible and ineligible applicants............................................................................................................... 2
4. Eligible and ineligible projects.................................................................................................................. 2
S. Eligible and ineligible costs....................................................................................................................... 4
6. Priorities.................................................................................................................................................. 5
7. Application instructions........................................................................................................................... 5
8. Application submission instructions......................................................................................................... 5
9. Application questions............................................................................................................................... 5
10. Application review process....................................................................................................................... 6
11. Grantee responsibilites............................................................................................................................ 6
Exhibit A: Application evaluation score sheet................................................................................................... 9
The Grant Application Form, Workplan and Budget, Sample Grant agreement, Questions and Answers, and any
addendums can be found in the SWIFT Supplier Portal.
1. Project overview
Minnesota's climate is changing — it is happening here and now and will continue well into the future. We see
the harmful effects in communities across our state today, from our own health and safety to overwhelmed
infrastructure, damaged property, dying trees and culturally important native species, and the inability of
population centers to cool off overnight. Climate trends identified through monitoring over decades of changes
in temperature and precipitation, snow depth, and lake ice, storms and droughts, our growing season, and more
show that Minnesota is becoming warmer and wetter, with more damaging rains, and cold weather warming.
More extreme heatwaves and extended periods of drought alternating with intense precipitation are expected
in the future.
During the 2023 Legislative Session, ongoing funding was appropriated in the Omnibus Environment, Natural
Resources, Climate, and Energy bill H.F. 2310, Article 1, Sec. 2, Subdivision 2(k) to support communities in
planning and implementing projects for climate resiliency and water infrastructure that will allow for adaptation
for a changing climate.
This Request for Proposals provides an opportunity for communities to assess vulnerabilities and plan for the
effects of Minnesota's changing climate in three areas: how to increase resilience to stormwater and reduce
localized flood risk, how to improve the resilience of wastewater systems, and how to reduce human health
effects and adapt community services, ordinances, and public spaces to the changing climate.
2. Funding
Approximately $750,000 is available for planning projects to be awarded during FY24. Grant projects must be
completed no later than June 30, 2025. There is no minimum and no maximum grant award under this RFP.
Match requirement
The minimum match requirement is 10% (ten percent) of the grant amount, either cash or in -kind, provided by
any organization involved in the project. Grantees will be expected to track and report all match provided for
the project by kind and source, even if the amount exceeds 10%. This will assist MPCA with better understanding
of project funding needs for future grant solicitations.
Reimbursement schedule
Grant funding for eligible costs of the planning project will be reimbursed during and upon completion of the
approved project with approved invoices.
Invoices for expenses incurred to -date may be submitted as frequently as monthly. Grantees are required to
submit their first invoice no later than 6 (six) months or midway through the project, whichever comes first. A
final invoice for payment of remaining grant funds expended by the project is required to be submitted at the
completion of the project. Payment of the final 10% of grant funds will be held back until the project is
completed satisfactorily and all deliverables have been submitted and approved. Invoices are sent directly to
MPCA Accounts Payable with cc to the MPCA Authorized Representative.
3. Eligible and ineligible applicants
Eligible applicants
Tribal Nations, and Local Governmental Units (LGUs) including only cities, counties, towns (townships), soil and
water conservation districts (SWCDs), water management organizations (WMOs), water districts (WDs), regional
development commissions (RDCs), and the Metropolitan Council of the Twin Cities region, and that are located
within the geographic boundaries of the state of Minnesota are eligible applicants.
Ineligible applicants
• Any other organization or individual not listed above as an eligible applicant.
• Entities that are currently suspended or debarred by the State of Minnesota and/or the federal
government are ineligible applicants.
• The MPCA may also deem an applicant ineligible because of, but not limited to: enforcement issues,
labor standards, tax status, past grant performance, or other such issues.
4. Eligible and ineligible projects
Eligible projects
Eligible projects are those that conduct planning for increased resilience to the impacts of Minnesota's changing
climate (i.e. already becoming warmer and wetter with more damaging rains and cold weather warming, and
expected to have more extreme heat and drought in the future) within any of the following three focus areas:
stormwater, wastewater, community resilience.
Some examples of eligible planning projects in the three focus areas:
Storm water resilience:
• Vulnerability assessment using a hydrologic/hydraulic model such as XP-SWMM or equivalent to
identify areas (e.g. creek corridors, bridges, intersections, etc.) within a tribal or local governmental unit
that are at risk for flooding. Includes assessment of changes in future precipitation with storm events of
greater intensity and frequency to evaluate how to optimize resiliency of stormwater infrastructure,
including use of green infrastructure and nature -based solutions.
• Inventory of water infrastructure issues developed using new or existing modeling information to
identify critical impacts (e.g. number of structures flooded, frequency of flooding, social
vulnerability, local environmental impacts, etc.), including but not limited to consideration of existing
asset management plans. Provides a prioritized list of critical areas needing infrastructure
improvements (including use of green infrastructure and nature -based approaches) to increase
resilience.
• Feasibility study that compares design alternatives (e.g. replacing small or undersized stormwater
infrastructure, adding surface or underground stormwater storage areas, increasing infiltration of
stormwater, adding green infrastructure and nature -based installations, etc.) to address known or
predicted areas of flooding within a tribal or local governmental unit. Identifies a preferred
alternative with sufficient information to support consideration for future construction funding.
• Plan development (conducted in-house or by contract) for the bidding or contracting, design work,
modeling, etc. needed for self -funded projects (not on the Project Priority List (PPL) / Intended Use Plan
(IUP)) that have been identified by a tribal or local governmental unit risk assessment or
adaptation/resilience plan.
Wastewater resilience:
• Risk assessment of wastewater facilities using the Environmental Protection Agency (EPA) Climate
Resilience Evaluation and Awareness Tool (CREAT) or similar analysis to discover which extreme weather
hazards pose significant challenges to the utility, identify the critical assets at risk, and explore
various actions to protect them.
• Climate vulnerability assessment of public and/or privately -owned sewer and/or sewer sheds.
• Planning and investigative work for climate resiliency of wastewater, sewer, and or Inflow &
Infiltration (I&I) projects to determine implementation plan for self -funded projects (that are not
anticipated to be part of a Facilities Plan for a Public Facilities Authority (PFA) /Project Priorities List
(PPL) )
• Plan development (conducted in-house or by contract) for the bidding or contracting, design work,
modeling, etc. needed for self -funded projects (not on the Project Priority List (PPL) / Intended Use Plan
(IUP)) that have been identified by a risk assessment or adaptation/resilience plan (CREAT or other).
Community resilience:
• Community -wide climate vulnerability assessment involving stakeholders and authentic
community engagement processes to identify community assets (such as parks and recreational areas,
green infrastructure installations, roads, public buildings, local power infrastructure, etc.) at risk
from more extreme weather and changing climate conditions, as well as local population segments at
greater risk from harm, stress or displacement due to climate change.
• Community -wide climate adaptation planning involving stakeholders and authentic community
engagement to identify specific strategies, policies, actions, and responsible parties needed for
equitable adaptation.
• Plan development (costing, bidding or contracting, design work, modeling, etc.) needed for projects that
will increase the climate resilience of one or more community assets identified by a community -wide
vulnerability assessment or climate adaptation plan.
Ineligible projects
Projects that do not fit any of the three focus areas — stormwater, wastewater, or community resilience — and
projects that are not planning -oriented are ineligible.
S. Eligible and ineligible costs
Eligible costs
Any cost that is directly related to the workplan tasks of an eligible planning project and not deemed ineligible
below or by MPCA staff.
Ineligible costs
Ineligible costs include costs that are not directly related to the workplan tasks of an eligible planning project.
The following costs, including but not limited to, even if they are directly related to the project, are ineligible:
• Any expenses incurred before the contract is fully executed including applicant's expense for preparing
the eligibility and cost applications
• Bad debts, late payment fees, finance charges or contingency funds, interest, and investment
management fees
• Attorney fees
• Employee worksite parking
• Lobbying, lobbyists and political contributions
• Mark-up on purchases and/or subcontracts
• Taxes, except sales tax on eligible equipment and expenses
• Activities associated with permit fees
• Activities addressing enforcement actions or that involve a financial penalty
• Memberships (including subscriptions and dues)
• Reimbursement to or stipends to non -staff stakeholders for their attendance at stakeholder
participation meetings or their related expenses
• Food (other than staff per diem)
• Alcoholic refreshments
• Entertainment, gifts, prizes and decorations
• Merit awards and bonuses
• Donations and fundraising
• Computer(s), tablets, and software, unless unique to the project and specifically approved by the MPCA
as a direct expense
• Purchase or rental of mobile communication devices such as pagers, cell phones, and personal data
assistants (PDAs), unless unique to the project and specifically approved by the MPCA.
4
6. Priorities
It is the policy of the State of Minnesota to ensure fairness, precision, equity and consistency in competitive
grant awards. This includes implementing diversity and inclusion in grant -making. The Policy on Rating Criteria
for Competitive Grant Review establishes the expectation that grant programs intentionally identify how the
grant serves diverse populations, especially populations experiencing inequities and/or disparities.
This grant prioritizes projects that are located in communities with higher concentrations of low-income
residents, and people of color, including tribal communities, and will benefit these communities. Click on the
link below for MPCA's criteria and interactive mapping tool (recently updated on the MPCA website with data
from a five-year 2016-2020 summary of the American Community Survey) to see if the project is located in an
area of concern for Environmental Justice:
http://mpca.maps.arcgis.com/apps/MapSeries/index.html?appid=f5bf57c8dac24404b7f8efl717f57d00.
Note: The map is subject to change. The MPCA will use the most current map when evaluating proposals.
This grant also prioritizes:
Projects located in Minnesota outside of the 7-county Twin Cities Region (compromised of Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties).
• Stormwater projects that address localized flooding.
7. Application instructions
All applicants must complete the Grant Application Form, work plan and budget. Applications without all forms
submitted will be deemed ineligible.
8. Application submission instructions
Applications must be received electronically by the MPCA by Thursday, December 14, 2023, at 4pm CT.
Application submissions received after the deadline will not be considered eligible.
Applications must be submitted through the SWIFT Supplier Portal. Note: The RFP is termed an
"Event" within SWIFT. MPCA is not responsible for any errors or delays caused by technology -related
issues.
Applicants do not need to log in to view the RFP and associated documents in the SWIFT system.
Applicants interested in applying will need to register as a bidder in the system by clicking on the
SWIFT Supplier Portal, then Register for an Account and Register as a Bidder. Applicants should allow
up to two business days to become registered as a Bidder.
Questions regarding submitting an application can be directed to the Vendor Assistance Help Desk at
651-201-8100, option 1 or by clicking on Supplier Portal Help within the SWIFT Supplier Portal.
Applications submitted via any other method, including but not limited to email, fax, mail, in -person deliveries,
will not be accepted.
9. Application questions
The MPCA is obligated to be transparent in all aspects surrounding grant work. To meet this obligation,
all questions must be submitted in the same manner, and answers are only provided via the SWIFT
Supplier Portal. It is the applicant's responsibility to check the SWIFT Supplier Portal and MPCA
website for the most recent updates.
Applicants who have any questions regarding this RFP must email questions to
grants.pca@state.mn.us, subject line: "FY 24 Planning Grants for SWC Resilience", no later than
Monday, December 11, 2023. Answers to questions will be posted frequently in the SWIFT Supplier
Portal.
MPCA personnel are not authorized to discuss this RFP with applicants outside of the Question and
Answer forum. Contact regarding this RFP with any MPCA personnel may result in disqualification.
10. Application review process
Applicants are encouraged to review the Evaluation Score -Sheet (Exhibit A) before submitting their application
and make sure they are providing all the relevant information. Formal review of applications will be conducted
by a team of MPCA staff.
Applications received by the grant deadline will be reviewed by MPCA staff using a two-step process.
Late applications will not be considered for review.
Step 1: Eligibility review
The MPCA will determine if eligibility requirements are met. Any application found to be ineligible will
be eliminated from further evaluation. Minimum requirements:
• Applicant is eligible as described in section 3.
• Project is eligible as described in section 4.
• All required forms submitted by the deadline.
Step 2: Application scoring
Only applications meeting the eligibility criteria under Step 1 will be considered for scoring in Step 2.
Reviewers will evaluate applications per project using the weighted criteria listed in Exhibit A.
In addition to the ability to partially award projects, the MPCA reserves the right to refrain from
awarding any grants.
In the event two applicants are tied in the scoring and there isn't sufficient funding to award both
projects, the MPCA will select the applicant with the highest score in the following criteria, in
descending order, until a winner is able to be determined:
• Environmental Justice
• Project located outside the 7-county Twin Cities Region
• Stormwater project that addresses localized flooding
Notification
All applicants will be notified by MPCA staff after approximately 60 days of application due date. Applicants
selected for funding will be contacted concerning the next steps in the award process, including execution of the
appropriate agreements with follow-up by the grantee within a reasonable time frame.
11. Grantee responsibilities
Awardees are required to be a registered vendor in SWIFT and will sign the grant agreement using Docusign.
To register, go to the Supplier Portal webpage in SWIFT and click on the Register for an Account link and then
Register as a Supplier.
Grant agreement
Each awardee must enter into a grant agreement. The agreement will address the conditions of the award. Once
the agreement is signed, the recipient is required to comply with all conditions.
Reporting requirements
Email updates about the status of the project are required to be provided to the MPCA Authorized
Representative whenever an invoice is submitted to MPCA Accounts Payable. The MPCA Authorized
Representative will not approve an invoice through the state system without this project update. A Grant
Project Final Report, in a format provided to the Grantee by the MPCA, is required to be submitted to the MPCA
Authorized Representative at the same time as the final invoice is submitted to MPCA Accounts Payable.
Public data
Applications are private or nonpublic until opened. Once the applications are opened, the name and address of
the applicant and the amount requested is public. All other data in an application is private or nonpublic data
until all agreements are fully executed. After all agreements are fully executed, all remaining data in the
applications is public with the exception of trade secret data as defined and classified in Minn. Stat. § 13.37. A
statement by a grantee that the application is copyrighted or otherwise protected does not prevent public
access to the application (Minn. Stat. § 13.599, subd. 3).
Conflict of interest
MPCA will take steps to prevent individual and organizational conflicts of interest, both in reference to
applicants and reviewers per Minn. Stat.§1613.98 and Conflict of Interest Policy for State Grant -Making.
Organizational conflicts of interest occur when:
• a grantee or applicant is unable or potentially unable to render impartial assistance or advice to the
Department due to competing duties or loyalties
• a grantee's or applicant's objectivity in carrying out the grant is or might be otherwise impaired due to
competing duties or loyalties
In cases where a conflict of interest is suspected, disclosed, or discovered, the applicants or grantees will be
notified and actions may be pursued, including but not limited to disqualification from eligibility for the grant
award or termination of the grant agreement.
Grant Monitoring
Minn. Stat. §1613.97 and Policy on Grant Monitoring require the following:
• One monitoring visit during the grant period on all state grants of $50,000 and higher.
• Annual monitoring visits during the grant period on all grants of $250,000 and higher.
• Conducting a financial reconciliation of grantee's expenditures at least once during the grant period on
grants of $50,000 and higher. For this purpose, the grantee must make expense receipts, employee
timesheets, invoices, and any other supporting documents available upon request by the State.
The monitoring schedule will be determined at a later date.
Grantee Bidding Requirements
For Municipalities
Grantees that are municipalities must follow:
• The contracting and bidding requirements in the Uniform Municipal Contracting Law as defined in Minn.
Stat. §471.345.
• The requirements of prevailing wage for grant -funded projects that include construction work of and
have a total project cost of $25,000 or more, per Minn. Stat. §§177.41 through 177.44 These rules
require that the wages of laborers and workers should be comparable to wages paid for similar work in
the community as a whole.
The grantee must not contract with vendors who are suspended or debarred in MN:
http://www.mmd.admin.state.mn.us/debarredreport.asp.
Audits
Per Minn. Stat. § 1613.98 Subdivision 8, the grantee's books, records, documents, and accounting procedures and
practices of the grantee or other party that are relevant to the grant or transaction are subject to examination
by the granting agency and either the legislative auditor or the state auditor, as appropriate. This requirement
will last for a minimum of six years from the grant agreement end date, receipt, and approval of all final reports,
or the required period of time to satisfy all state and program retention requirements, whichever is later.
Affirmative Action and Non -Discrimination requirements for all Grantees:
A. The grantee agrees not to discriminate against any employee or applicant for employment because of race,
color, creed, religion, national origin, sex, marital status, status in regard to public assistance, membership
or activity in a local commission, disability, sexual orientation, or age in regard to any position for which the
employee or applicant for employment is qualified. Minn. 5tat. §363A.02. The grantee agrees to take
affirmative steps to employ, advance in employment, upgrade, train, and recruit minority persons, women,
and persons with disabilities.
The grantee must not discriminate against any employee or applicant far employment because of physical
or mental disability in regard to any position for which the employee or applicant for employment is
qualified. The grantee agrees to take affirmative action to employ, advance in employment, and otherwise
treat qualified disabled persons without discrimination based upon their physical or mental disability in all
employment practices such as the following: employment, upgrading, demotion or transfer, recruitment,
advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training,
including apprenticeship. Minnesota Rules, part 5000.3500.
C. The grantee agrees to comply with the rules and relevant orders of the Minnesota Department of Human
Rights issued pursuant to the Minnesota Human Rights Act.
Voter Registration Requirement:
The grantee will comply with Minn. 5tat. § 201,162 by providing voter registration services for its employees
and for the public served by the grantee.
MMINNESOTA POLLUTION
CONTROL AGENCY
Exhibit A: Application evaluation score sheet
A 100 — point scale will be used to evaluate eligible applications and develop final recommendations.
Evaluation Category
Maximum
Points
Project has clearly defined objectives, tasks that describe how those objectives will be
20
met, a realistic timeframe, and a detailed budget that includes reasonable and cost-
effective expenses.
Organizations and specific individuals that will do the work on the project are well-
15
qualified for their roles with the knowledge, skills and abilities to carry out the project
successfully.
Project is located in communities within area(s) of concern for environmental justice
15
and will benefit these communities.
Project methodology effectively incorporates consideration of current climate trends
10
and projections of future climate conditions and how the impacts are anticipated to
affect the general location of the project.
The project will address a much -needed resiliency planning issue that can make a
15
meaningful difference to the community's preparedness for Minnesota's changing
climate, including human health impacts.
The project will provide results that position a tribal/local government to take further
15
action, assign responsibility for implementation, and/or pursue further funding to
implement the resilience project(s) for which planning was completed
The project is located in Minnesota outside the 7-county Twin Cities region.
5
The project is a stormwater project to address localized flooding.
5
otal
100
MMINNESOTA POLLUTION
CONTROL AGENCY
520 Lafayette Road North
St. Paul, MN 55155-4194
Planning Grants for Stormwater, Wastewater, and
Community Resilience
Budget
Doc Type: Grant Application
Total
Cost category
Cost ($/unit) Not to
Quantity (Qty/Unit)
Grant funds
Budgeted
Budgeted in-
budgeted
Total budget
Exceed
cash match
kind match
match (11 +
III
(I + IV)
Task 1 of 8: Data Collection/Review Et Watershed Delineation
Task 1a: Data Collection Et Review
City Public Works Lead
$86.00
hr
4
hr
$344.00
$344.00
$344.00
City Environmental Lead
$68.00
hr
24
hr
$1,632.00
$1,632.00
$1,632.00
City Engineering Technician
$63.00
hr
60
hr
$3,780.00
$3,780.00
$3,780.00
SEH Project Manager
$220.00
hr
6
hr
$1,320.00
$1,320.00
$1,320.00
SEH QAQC Lead
$195.00
hr
6
hr
$1,170.00
$1,170.00
$1,170.00
H Modeler
F
$150.00
hr
16
hr
$2,400.00
$2,4010.00
$2,400.00
sk 1a - Total
$0.00
$4,890.00
$5,756.00
$10,646.00
1 $10,646.00
(Task 1b: Watershed Delineation
City Public Works Lead
$86.00
hr
2
hr
$172.00
$172.00
$172.00
City Environmental Lead
$68.00
hr
4
hr
$272.00
$272.00
$272.00
City Engineering Technician
$63.00
hr
8
hr
$504.00
$504.00
$504.00
SEH Project Manager
$220.00
hr
2
hr
$440.00
$440.00
$440.00
SEH QAQC Lead
$195.00
hr
10
hr
$1,950.00
$0.00
$1,950.00
SEH Modeler
$150.00
hr
40
hr
$6,000.00
$6,000.00
$6,000.00
Task 1b -Total
$1,950.00
$6,440.00
1 $948.00
$7,388.00
$9,338.00
ITask 1 Grand Total $1.950.00 $11,330.00 $6,704,00 $18,034,00 $19.984.00 1
Task 2 of 8: XPSWMM Model Development - Existing Conditions
Task 2a: Develop Existing Conditions Model
City Public Works Lead
$86.00
hr
2
hr
$172.00
$172.00
$172.00
City Environmental Lead
$68.00
hr
2
hr
$136.00
$136.00
$136.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
14
hr
$3,080.00
$0.00
$3,080.00
SEH QAQC Lead
$195.00
hr
20
hr
$3,900.00
$0.00
$3,900.00
SEH Modeler
$150.00
hr
140
hr
$21,000.00
$21,000.00
$21,000.00
Task 2a - Total
$6,980.00
$21,000.00
$434.00
$21,434.00
$28,414.00
iTask 2b: Existing Conditions Model Calibration
City Public Works Lead
$86.00
hr
2
hr
$172.00
$172.00
$172.00
City Environmental Lead
$68.00
hr
4
hr
$272.00
$272.00
$272.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
2
hr
$440.00
$0.00
$440.00
SEH QAQC Lead
$195.00
hr
6
hr
$1,170.00
$0.00
$1,170.00
SEH Modeler
$150.00
hr
24
hr
$3,600.00
$0.00
$3,600.00
Task 2b - Total
$5,210.00
$0.00
$570.00
$570.00
$5,780.00
Task 2 Grand Total $12.190.00 $�21-001).00 S1,004,D0 $22.004.01) $34.194.00
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Task 3 of 8: Review Existing Conditions Results
Task 3a: Flood Inundation Assessment for Existing Conditions
City Public Works Lead
$86.00
hr
2
hr
$172.00
$172.00
$172.00
City Environmental Lead
$68.00
hr
4
hr
$272.00
$272.00
$272.00
City Engineering Technician
$63.00
hr
4
hr
$252.00
$252.00
$252.00
SEH Project Manager
$220.00
hr
2
hr
$440.00
$0.00
$440.00
SEH QAQC Lead
$195.00
hr
2
hr
$390.00
$0.00
$390.00
SEH Modeler
$150.00
hr
8
hr
$1,200.00
$0.00
$1,200.00
Task 3a - Total
$2,030.00
$0.00
$696.00
$696.00
$2,726.00
ITask 3b: Pipe Capacity Assessment for Existing Conditions
City Public Works Lead
$86.00
hr
2
hr
$172.00
$172.00
$172.00
City Environmental Lead
$68.00
hr
2
hr
$136.00
$136.00
$136.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
2
hr
$440.00
$0.00
$440.00
SEH QAQC Lead
$195.00
hr
2
hr
$390.00
$0.00
$390.00
SEH Modeler
$150.00
hr
8
hr
$1,200.00
$0.00
$1,200.00
Task 3b - Total
$2,030.00
$0.00
$434.00
$434.00
$2,464.00
Task 3c: Analysis of Future Rainfall Scenarios with Existing Stormwater System
City Public Works Lead
$86.00
hr
2
hr
$172.00
$172.00
$172.00
City Environmental Lead
$68.00
hr
2
hr
$136.00
$136.00
$136.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
2
hr
$440.00
$0.00
$440.00
SEH QAQC Lead
$195.00
hr
4
hr
$780.00
$0.00
$780.00
SEH Modeler
$150.00
hr
12
hr
$1,800.00
$0.00
$1,800.00
Task 3c - Total
$3,020.00
$434.00
$434.00
$3,454.00
Task 3d: Vulnerability Assessment for Existing Conditions
City Public Works Lead
$86.00
hr
4
$344.00
$344.00
$344.00
City Environmental Lead
$68.00
hr
2
..1
$136.00
$136.00
$136.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
2
hr
$440.00
$0.00
$440.00
SEH QAQC Lead
$195.00
hr
2
hr
$390.00
$0.00
$390.00
SEH Modeler
$150.00
hr
hr
$1,200.00
$0.00
$1,200.00
Task 3d - Total
$2,030.00
1-
$606.00
$606.00
$2,636.00
Task 3e: Critical Infrastructure Assessment for Existing Conditions
City Public Works Lead
$86.00
hr
4
$344.00
$344.00
$344.00
City Environmental Lead
$68.00
hr
2
hr
$136.00
$136.00
$136.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
2
hr
$440.00
$0.00
$440.00
SEH QAQC Lead
$195.00
hr
2
hr
$390.00
$0.00
$390.00
SEH Modeler
$150.00
hr
8
hr
$1,200.00
$0.00
$1,200.00
Task 3e - Total
$2,030.00
$606.00
$606.00
$2,636.00
ITask 3f: Damage Potential Assessment for Existing Conditions
City Public Works Lead
$86.00
hr
2
hr
$172.00
$172.00
$172.00
City Environmental Lead
$68.00
hr
2
hr
$136.00
$136.00
$136.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
2
hr
$440.00
$0.00
$440.00
SEH QAQC Lead
$195.00
hr
4
hr
$780.00
$0.00
$780.00
SEH Modeler
$150.00
hr
12
hr
$1,800.00
$0.00
$1,800.00
Task 3f - Total
$3,020.00
$0.00
$434.00
$434.00
$3,454.00
Task 3 Grand Total $14,160.00 $0.00 $3.210.00 $3:210A0 $17,370.OU
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Task 4 of 8: Develop Proposed Improvements Et Analyze with XPSWMM Model
Task 4a: Develop and Evaluate Concepts for Stormwater Management Improvements
City Public Works Lead
$86.00
hr
4
hr
$344.00
$344.00
$344.00
City Environmental Lead
$68.00
hr
4
hr
$272.00
$272.00
$272.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
4
hr
$880.00
$0.00
$880.00
SEH QAQC Lead
$195.00
hr
8
hr
$1,560.00
$0.00
$1,560.00
Modeler
p
$150.00
hr
40
hr
$6,000.00
$0.00
$6,000.00
4a - Total
$8,440.00
$0.00
$742.00
$742.00
$9,182.00
(Task 4b: Estimate Project Implementation Costs
City Public Works Lead
$86.00
hr
4
hr
$344.00
$344.00
$344.00
City Environmental Lead
$68.00
hr
4
hr
$272.00
$272.00
$272.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
4
hr
$880.00
$0.00
$880.00
SEH QAQC Lead
$195.00
hr
4
hr
$780.00
$0.00
$780.00
SEH Modeler
$150.00
hr
32
hr
$4,800.00
$0.00
$4,800.00
Task 4b - Total
$6,460.00
$0.00
$742.00
$742.00
$7,202.00
ITask 4 Grand Total 514.900.00 S3.C.3 S1,484.00 $1,484.04 $16,384,00 I
Task 5 of 8: Review Proposed Conditions Results
Task 5a: Flood Inundation Assessment for Proposed Conditions
City Public Works Lead
$86.00
hr
2
hr
$172.00
$172.00
$172.00
City Environmental Lead
$68.00
hr
4
hr
$272.00
$272.00
$272.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
2
hr
$440.00
$0.00
$440.00
SEH QAQC Lead
$195.00
hr
2
hr
$390.00
$0.00
$390.00
Modeler
p
$150.00
hr
8
hr
$1,200.00
$0.00
$1,200.00
5a - Total
$2,030.00
$0.00
$570.00
$570.00
$2,600.00
iTask 5b: Pipe Capacity Assessment for Proposed Conditions
City Public Works Lead
$86.00
hr
2
hr
$172.00
$172.00
$172.00
City Environmental Lead
$68.00
hr
4
hr
$272.00
$272.00
$272.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
2
hr
$440.00
$0.00
$440.00
SEH QAQC Lead
$195.00
hr
2
hr
$390.00
$0.00
$390.00
SEH Modeler
$150.00
hr
8
hr
$1,200.00
$0.00
$1,200.00
Task 5b - Total
$2,030.00
$0.00
$570.00
$570.00
$2,600.00
ITask 5c: Analvsis of Future Rainfall Scenarios with Proposed Stormwater Svstem
City Public Works Lead
$86.00
hr
4
hr
$344.00
$344.00
$344.00
City Environmental Lead
$68.00
hr
4
hr
$272.00
$272.00
$272.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
2
hr
$440.00
$0.00
$440.00
SEH QAQC Lead
$195.00
hr
4
hr
$780.00
$0.00
$780.00
SEH Modeler
$150.00
hr
0
hr
$900.00
$0.00
$900.00
Task 5c - Total
$2,120.00
$0.00
$742.00
$742.00
$2,862.00
Task 5d: Vulnerability Assessment for Proposed Conditions
City Public Works Lead
$86.00
hr
2
hr
$172.00
$172.00
$172.00
City Environmental Lead
$68.00
hr
2
hr
$136.00
$136.00
$136.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
2
hr
$440.00
$0.00
$440.00
SEH QAQC Lead
$195.00
hr
2
hr
$390.00
$0.00
$390.00
SEH Modeler
$150.00
hr
4
hr
$600.00
$0.00
$600.00
Task 5d - Total
$1,430.00
$0.00
$434.00
$434.00
$1,864.00
p-t2-27e-fy20-1 • 12/26/19 https://www.pca.state.mn.us • Available in altemative formats • 651-296-6300 • 800-657-3864 • Use your preferred relay service Page 3 of 5
Task 5e: Critical Infrastructure Assessment for Proposed Conditions
City Public Works Lead
$86.00
hr
2
hr
$172.00
$172.00
$172.00
City Environmental Lead
$68.00
hr
4
hr
$272.00
$272.00
$272.00
City Engineering Technician
$63.00
hr
4
hr
$252.00
$252.00
$252.00
SEH Project Manager
$220.00
hr
2
hr
$440.00
$0.00
$440.00
SEH QAQC Lead
$195.00
hr
2
hr
$390.00
$0.00
$390.00
Modeler
P
$150.00
hr
4
hr
$600.00
$0.00
$600.00
5e - Total
$1,430.00
$0.00
$696.00
$696.00
$2,126.00
ITask 5f: Damage Potential Assessment for Proposed Conditions
City Public Works Lead
$86.00
hr
2
hr
$172.00
$172.00
$172.00
City Environmental Lead
$68.00
hr
2
hr
$136.00
$136.00
$136.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
2
hr
$440.00
$0.00
$440.00
SEH QAQC Lead
$195.00
hr
4
hr
$780.00
$0.00
$780.00
SEH Modeler
$150.00
hr
8
hr
$1,200.00
$0.00
$1,200.00
Task 5f - Total
$2,420.00
$0.00
$434.00
$434.00
$2,854.00
ITask 5 Grand Total S11.460.00 $0.00 S3.446.00 $3A46.00 $14.906.00 1
Task 6 of 8: Community Outreach and Engagement
Task 6a: Community Engagement
City Public Works Lead
$86.00
hr
4
hr
$344.00
$344.00
$344.00
City Environmental Lead
$68.00
hr
8
hr
$544.00
$544.00
$544.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
4
hr
$880.00
$0.00
$880.00
SEH QAQC Lead
$195.00
hr
2
hr
$390.00
$0.00
$390.00
Modeler
P
$150.00
hr
2
hr
$300.00
$0.00
$300.00
6a - Total
$1,570.00
$0.00
$1,014.00
$1,014.00
$2,584.00
Task 6b: Community Stormwater Map
City Public Works Lead
$86.00
hr
2
hr
$172.00
$172.00
$172.00
City Environmental Lead
$68.00
hr
6
hr
$408.00
$408.00
$408.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
4
hr
$880.00
$0.00
$880.00
SEH QAQC Lead
$195.00
hr
2
hr
$390.00
$0.00
$390.00
SEH Modeler
$150.00
hr
16
hr
$2,400.00
$0.00
$2,400.00
Task 6b - Total
I
1
$3,670.00
$0.00
$706.00
$706.00
$4,376.00
Task 6 Grand Total $5,240.00 $0.00 $1,720.00 $1,720.00 $6,960.00
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Task 7 of 8: Prepare and Present Stormwater Resilience Plan
Task 7a: Prioritize Stormwater Management System Improvements
City Public Works Lead
$86.00
hr
4
hr
$344.00
$344.00
$344.00
City Environmental Lead
$68.00
hr
2
hr
$136.00
$136.00
$136.00
City Engineering Technician
$63.00
hr
0
hr
$0.00
$0.00
$0.00
SEH Project Manager
$220.00
hr
4
hr
$880.00
$0.00
$880.00
SEH QAQC Lead
$195.00
hr
4
hr
$780.00
$0.00
$780.00
SEH Modeler
$150.00
hr
1 _
hr
$1,800.00
$0.00
$1,800.00
Task 7a - Total
$3,460.00
$0.00
$480.00
$480.00
$3,940.00
(Task 7b: Draft Stormwater Resilience Plan
City Public Works Lead
$86.00
hr
4
hr
$344.00
$344.00
$344.00
City Environmental Lead
$68.00
hr
4
hr
$272.00
$272.00
$272.00
City Engineering Technician
$63.00
hr
4
hr
$252.00
$252.00
$252.00
SEH Project Manager
$220.00
hr
12
hr
$2,640.00
$0.00
$2,640.00
SEH QAQC Lead
$195.00
hr
24
hr
$4,680.00
$0.00
$4,680.00
SEH Modeler
$150.00
hr
40
1P
$6,000.00
$0.00
$6,000.00
Task 7b - Total
$13,320.00
$0.00
$868.00
$868.00
$14,188.00
(Task 7c: Finalize Stormwater Resilience Plan
City Public Works Lead
$86.00
V11hr
$344.00
$344.00
$344.00
City Environmental Lead
$68.00
hr
-
hr
$272.00
$272.00
$272.00
City Engineering Technician
$63.00
hr
hr
$126.00
$126.00
$126.00
SEH Project Manager
$220.00
hr
hr
$1,760.00
$0.00
$1,760.00
SEH QAQC Lead
$195.00
hi
hr
$1,560.00
$0.00
$1,560.00
odeler
pTaskM7c
$150.00
h.
hr
$1,200.00
$0.00
$1,200.00
- Total
$4,520.00
$0.00
$742.00
$742.00
$5,262.00
Task 7 Grand Total
$21,300.00 $0.00 $2,090.00
$2,090.00
$23,390.00
Task 8 of 8: Final Report Et Project Deliverables
Task 8a: Submit Final Grant Report
City Public Works Lead
$86.00
hr
4
$344.00
$344.00
$344.00
City Environmental Lead
$68.00
hr
$680.00
$680.00
$680.00
City Engineering Technician
$63.00
hr
$126.00
$126.00
$126.00
Task 8a - Total
1
$0.00
$1,150.00
1 $1,150.00
1 $1,150.00
Task 8b: Submit Project Deliverables
City Public Works Lead
$86.00
hr
2
hr
$172.00
$172.00
$172.00
City Environmental Lead
$68.00
hr
6
hr
$408.00
$408.00
$408.00
City Engineering Technician
$63.00
hr
2
hr
$126.00
$126.00
$126.00
Task 8b - Total
$0.00
$0.00
$706.00
$706.00
$706.00
Task 8 Grand Total $0.00 $0.00 $1,856.00 $1,856.00 $1,856.00
Project Grand Totals $81,200.00 $32,330.00 $21,514.00 $53,844.00 $135,044.00
p-t2-27e-fy20-1 • 12126119 https:/Avww.pca.state.mn.us • Available in alternative formats • 651-296-6300 • 800-657-3864 • Use your preferred relay service Page 5 of 5
MMINNESOTA POLLUTION
CONTROL AGENCY
520 Lafayette Road North
St. Paul, MN 55155-4194
Project title:
Hutchinson Stormwater Resilience Plan — South
Statement of project purpose(s)
Planning Grants for
Stormwater, Wastewater,
and Community Resilience
Project workplan
Doc Type: Grant Application
The City of Hutchinson South Stormwater Resilience Plan purpose is to develop a Stormwater Resilience Plan that identifies
locations and causes of localized flooding, assesses damage potential and community vulnerability due to localized flooding,
develops potential projects to reduce flooding and mitigate the effects of climate change, and estimates the cost of project
implementation. The plan will focus on the area of the City that is south and west of the South Fork Crow River as shown on
the study area map provided in the application. Public engagement will be conducted during the development of this Plan to
obtain information about past flooding and provide educational opportunities for the public to learn about the City's stormwater
infrastructure, climate change, and their ability to improve community resiliency.
Goal statement, project deliverable(s), tasks, and subtasks
Goal statement:
The City of Hutchinson will achieve the following goals through the development of a Stormwater Resilience Plan:
(1) Identify locations within the study area that are most prone to localized flooding by developing an XPSWMM model of
the stormwater management infrastructure,
(2) Identify feasible stormwater improvement projects that minimize localized flooding within the study area and develop
corresponding implementation cost estimates,
(3) Estimate the impact of climate change on existing stormwater infrastructure, and considering the proposed
improvements,
(4) Conduct a vulnerability assessment to identify locations where localized flooding impacts vulnerable populations for
existing and proposed conditions,
(5) Conduct a damage potential assessment to identify areas of greatest flood damage potential within the study area for
existing and proposed conditions,
(6) Conduct a critical infrastructure assessment to identify locations within the study area where critical infrastructure is
at risk of flooding for existing and proposed conditions,
(7) Engage the public to obtain input and share information throughout the planning process, and
(8) Produce an actionable plan that clearly identifies feasible stormwater improvement projects, prioritizes projects for
implementation, and provides corresponding implementation costs.
Project deliverables: The primary deliverable will be a Stormwater Resilience Plan for the City of Hutchinson. This Plan will
provide detailed information about available stormwater data, the XPSWMM modeling used to identify areas as having a high
risk of localized flooding, and the results of the damage potential assessment, critical infrastructure assessment and
vulnerability assessment for the study area. This Plan will also clearly identify projects which could be implemented to
minimize localized flood risk within the study area during current and future climate conditions. These projects will be
prioritized based on the results of the damage potential assessment, vulnerability assessment, critical infrastructure
assessment and other factors. Implementation cost estimates will be developed for each of the recommended proposed
projects. XPSWMM modeling will be conducted to estimate the expected benefits of the projects as it relates to localized flood
risk, and community vulnerability. This Plan is expected to provide a comprehensive summary of the City's plan to increase
stormwater resilience within the study area and will be used for future funding applications for project implementation.
Task 1 of 8: Data Collection/Review and Watershed Delineation
Subtask 1a: Data Collection/Review
Brief description of activities involved: Previously completed stormwater studies and reports will be reviewed to better
understand previously identified stormwater issues and priorities within the study area. The City's existing GIS database of
the stormwater management system will also be reviewed to identify gaps in the data that are needed develop the
Page 1 of 5
XPSWMM Model and conduct an accurate analysis of the City's stormwater management system. This gap analysis will
then be used to develop a scope of work for data management and field data collection to be completed by the City. The
data collected in the field will be added to the existing GIS database by the City to further improve the existing datasets.
Timeframe: April —August 2024
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 1b: Watershed Delineation
Brief description of activities involved: A comprehensive stormwater map will be developed in GIS including the City's
stormwater databases, LiDAR-based topographic data, and soils mapping. This map will be used to delineate major and
minor watersheds within the study area and assign hydrologic parameters to account for land cover and estimate runoff
from each watershed. The watershed area and associated hydrologic parameters will be associated with a specific feature
within GIS so that the data can be imported to XPSWMM at the correct location.
Timeframe: June —August 2024
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Task 2 of 8: XPSWMM Model Development — Existing Conditions
Subtask 2a: Develop Existing Conditions Model
Brief description of activities involved: A hydrologic and hydraulic model of the study area will be developed using
XPSWMM. This model will include a 2D modeling component that represents flood storage and overland flow patterns to
simulate real -world conditions more accurately than a traditional 1 D model. This model will also provide inundation
mapping showing flood -prone areas and potential flooding depths for all rainfall events analyzed.
Timeframe: August — October 2024
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 2b: Existing Conditions Model Calibration
Brief description of activities involved: Using information and photographs on localized flooding that has occurred in
the past, the XPSWMM model will be calibrated to improve the overall accuracy and relevance of the modeling effort.
Historic rainfall event data will be simulated and inundation maps will be generated and used to obtain feedback on the
validity of the modeling results. The XPSWMM model parameters and input data will be modified as needed to produce
results that match observations of past localizing flooding.
Timeframe: October 2024
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Task 3 of 8: Review Existing Conditions Results
Subtask 3a: Flood Inundation Assessment for Existing Conditions
Brief description of activities involved: The XPSWMM modeling of the existing stormwater infrastructure will be used to
map locations of localized flooding for various rainfall events based on rainfall events currently used for design.
Timeframe: November 2024
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 3b: Pipe Capacity Assessment for Existing Conditions
Brief description of activities involved: The XPSWMM modeling of the existing stormwater infrastructure will be used to
develop a color -coded map of the modeled pipe segments to indicate which segments have anticipated flows above or
below the system capacity. This result is intended to provide a visual of the undersized pipe segments which are likely
contributing to the localized flooding estimated by the model.
Timeframe: November 2024
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 3c: Analysis of Future Rainfall Scenarios with Existing Stormwater System
Brief description of activities involved: The XPSWMM model of the existing stormwater infrastructure will be used to
simulate potential future rainfall events to estimate the impact of climate change on flood risk. These parameters will be
identified for a point 50 years from now which coincides with an estimated 50-yr lifespan of stormwater infrastructure
installed today.
Timeframe: November 2024
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Page 2 of 5
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 3d: Vulnerability Assessment for Existing Conditions
Brief description of activities involved: The flood inundation results produced in Subtask 3a will be overlaid with the
MPCA's Environmental Justice mapping to identify flood risk within areas of vulnerable populations. This information will be
used to identify proposed improvements to limit community vulnerability to flooding.
Timeframe: November 2024
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 3e: Critical Infrastructure Assessment for Existing Conditions
Brief description of activities involved: The flood inundation results produced in Subtask 3a will be overlaid with a GIS
dataset developed by the City that identifies locations of critical infrastructure such as fire stations, drinking water wells,
hospitals, etc. This information will be used to identify proposed improvements to limit impacts of flooding on critical
infrastructure.
Timeframe: November 2024
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 3f: Damage Potential Assessment for Existing Conditions
Brief description of activities involved: The flood inundation results produced in Subtask 3a will be overlaid with the
County parcel dataset with building values categorized. This information will be used to identify proposed improvements to
limit damage potential caused by flooding within the community.
Timeframe: November 2024
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Task 4 of 8: Developed Proposed Improvements and Analyze with XPSWMM Model
Subtask 4a: Develop and Evaluate Concepts for Stormwater Management Improvements
Brief description of activities involved: Stormwater management improvement project concepts will be developed and
may include increasing pipe capacity, incorporating more stormwater detention and/or treatment, or rerouting drainage
systems. Up to 7 project concepts will be developed based on the results described in Task 3. These projects will focus
on reducing the localized flooding while minimizing risk and reducing the vulnerability within the study area. These projects
will likely also incorporate a water quality improvement component that would contribute to the City's ongoing effort to
improve the water quality of the Crow River which is an impaired stream. The project list will be compared to the City's
Capital Improvement Plan to identify opportunities for cost savings by adding stormwater infrastructure improvements to a
previously planned project.
Timeframe: December 2024 — January 2025
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 4b: Estimate Project Implementation Costs
Brief description of activities involved: Project implementation costs will be estimated for each of the proposed
improvement projects and will include construction, engineering, and property acquisition costs.
Timeframe: January 2025
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Task 5 of 8: Review Proposed Conditions Results
Subtask 5a: Flood Inundation Assessment for Proposed Conditions
Brief description of activities involved: The XPSWMM modeling of the proposed stormwater infrastructure will be used
to map locations of localized flooding for various rainfall events based on rainfall events currently used for design. These
results will be used to estimate the reduction in localized flooding associated with the proposed conditions. These results
may also indicate unintended consequences of a proposed improvement such as increased downstream flooding, which
will then be used to refine the proposed alternative.
Timeframe: February 2025
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 5b: Pipe Capacity Assessment for Proposed Conditions
Brief description of activities involved: The XPSWMM modeling of the proposed stormwater infrastructure will be used
Page 3 of 5
to develop a color -coded map of the modeled pipe segments to indicate which segments have anticipated flows above or
below the system capacity. These results will be used to visualize the improvement in pipe capacity associated with the
proposed conditions. These results may also indicate unintended consequences of a proposed improvement such as
decreased downstream pipe capacity, which will then be used to refine the proposed alternative.
Timeframe: February 2025
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 5c: Analysis of Future Rainfall Scenarios with Proposed Stormwater System
Brief description of activities involved: The XPSWMM model of the proposed stormwater infrastructure will be used to
simulate potential future rainfall events to estimate the impact of climate change on the flood risk. These parameters will
be identified for a point 50 years from now which coincides with an estimated 50-yr lifespan of stormwater infrastructure
installed today. These results will estimate how the proposed improvements may alleviate localized flooding while
considering effects of climate change.
Timeframe: February 2025
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 5d: Vulnerability Assessment for Proposed Conditions
Brief description of activities involved: The flood inundation results produced in Subtask 5a will be overlaid with the
MPCA's Environmental Justice mapping to identify flood risk within areas of vulnerable populations. This information will
be used to estimate the extent that the proposed improvements limit community vulnerability to flooding.
Timeframe: February 2025
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 5e: Critical Infrastructure Assessment for Proposed Conditions
Brief description of activities involved: The flood inundation results produced in Subtask 5a will be overlaid with a GIS
dataset developed by the City that identifies locations of critical infrastructure such as fire stations, drinking water wells,
hospitals, etc. This information will be used to estimate the extent that proposed improvements limit impacts of flooding on
critical infrastructure.
Timeframe: February 2025
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 5f: Damage Potential Assessment for Proposed Conditions
Brief description of activities involved: The flood inundation results produced in Subtask 5a will be overlaid with the
County parcel dataset with building values categorized. This information will be used to estimate the extent that proposed
improvements limit damage potential caused by flooding within the community.
Timeframe: February 2025
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Task 6 of 8: Community Outreach and Engagement
Subtask 6a: Community Engagement
Brief description of activities involved: Throughout the course of this planning effort, the City will lead the community
engagement effort by informing the community of their intent to prepare this Stormwater Resilience Plan, invite them to
provide input regarding previous flood events and impacts of flooding, and share information about the progress of the plan
development and recommended mitigation strategies.
Timeframe: May 2024 — May 2025
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 6b: Community Stormwater Map
Brief description of activities involved: An interactive web -based map of the study area will be developed and used as
a platform to compile community input. The community will be asked to add virtual "pins' to the map to identify areas of
observed flooding and ideas for improving stormwater management within the study area. This map will be publicized in
the local newspaper.
Timeframe: June — October 2024
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Page 4 of 5
Task 7 of 8: Prepare and Present Stormwater Resilience Plan
Subtask 7a: Prioritize Proposed Stormwater Management System Improvements
Brief description of activities involved: The results of Task 5 will provide the primary framework for prioritizing
proposed improvements to the stormwater management system, with a focus on reducing localized flood risk and
vulnerability to flooding within the study area. An additional consideration for project prioritization will be the feasibility of
adding a stormwater improvement to an already planned City project, which can result in significant cost savings for
implementation.
Timeframe: February — March 2025
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead)
Subtask 7b: Draft Stormwater Resilience Plan
Brief description of activities involved: A draft Stormwater Resilience Plan will be prepared and will include a
description of the work completed as part of the preceding tasks, maps of the study area showing locations of localized
flooding for current and future climate conditions, results of the risk and vulnerability assessments, and proposed projects
for lessening the impacts of localized flooding and climate change.
Timeframe: March 2025
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Subtask 7c: Finalize Stormwater Resilience Plan
Brief description of activities involved: The draft Stormwater Resilience Plan will be modified to incorporate public input
and comments provided by City staff.
Timeframe: April 2025
Name and Title of person(s) responsible: Emily Jennings (SEH Project Manager), Riley Mondloch (SEH QAQC Lead),
Carson Webb (SEH Modeler), John Olson (City Public Works Lead), John Paulson (City Environmental Lead), Brandon
Fitzpatrick (City Engineering Tech)
Task 8 of 8: Final Report and Project Deliverables
Subtask 8a: Submit Grant Final Report
Brief description of activities involved: Will provide a final grant project report using the MPCA template approximately
one month prior to the end of the grant agreement on June 30, 2025, or at completion of the project, whichever occurs first.
Will respond promptly to any requests by the MPCA authorized representative for additional information and/or corrections
to the report.
Timeframe: May -June 2025
Name and Title of Person(s) Responsible: John Olson (City Public Works Lead), John Paulson (City Environmental
Lead), Brandon Fitzpatrick (City Engineering Tech)
Subtask 8b: Submit Project Deliverables
Brief description of activities involved: Will provide electronic files of all project deliverables to the MPCA authorized
representative prior to the end of the grant agreement on June 30, 2025, or at the completion of the project, whichever
occurs first.
Timeframe: May -June 2025
Name and Title of Person(s) Responsible: John Olson (City Public Works Lead), John Paulson (City Environmental
Lead), Brandon Fitzpatrick (City Engineering Tech)
Page 5 of 5
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATE 12/12/23
Cheick Date Check # Vendor 1 Description Amount
12/01/2023 113977 VOID VOIDED CHECK -
12/01/2023
113978
VOID
VOIDED CHECK
-
12/Ol/2023
113979
VOID
VOIDED CHECK
-
12/01/2023
EFT
EFTPS
Payroll Report 11/12/23 -11/25 23
72 014.86
12/01/2023
EFT
Child Support
Payroll Repm 11112/23 - 11/25/23
1,102.90
12/01/2023
EFT
IMN Dept of Revenue
Pa roll Report 11/12/23 - 11/25/23
14,109.72
12/01/2023
EFT
JUNUM Voluntary Insurance
Pa roll Report 11/12/23 - 11/25/23
383.34
12/01/2023
EFT
IPERA
Payroll Report 11/12/23 - 11/25/23
52,238.70
12/01/2023
EFT
lFurther HSA
Payroll Re rt 11/12/23 - 11/25/23
15,671.43
12/01/2023
EFT
IMission Square
Pa roll Report 11/12/23 -11 25 23
4,384.93
12/01/2023
EFT
IVOYA
Payroll Report 11/12/23-11/25/23
460.00
12101/2023
EFT
JMNDCP
Payroll Report 11/12/2.3 - 11/25/23
325.00
12/01/2023
113980
JNCPERS
Payroll Report 11/12/23 - 11/25/23
192.00
12/01/2023
113981
IHART
Pa roll Report 11/12 23 - 11/25/23
521.41
12/12/2023
113982
ACE HARDWARE - 1315
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
236.18
1.2_./12 2023
113983
ACE HARDWARE - 1790
POSTAGE - FIRE
16.00
12/12/2023
113984
ACE HARDWARE - 1825
KEY - POLICE
5.78
12/12/2023
113985
ALLINA HEALTH SYSTEM
TRAINING EXPENSES - FIRE
847.53
12/12/2023
113986
AMERICAN BOTTLING CO
COST OF GOODS SOLD - LIQUOR HUTCH
334.84
12/12/2023
113987
AMPLIFY FOR CHANGE
SUPPORT TO MPCA GRANT - CREEKSIDE
1,400.00
12/12/2023
113988
ARMSTRONG, DIANNA M
TRANSCRIPT- LEGAL
50.00
12/12/2023
113989
ARTISAN BEER COMPANY
COST OF GOODS SOLD - LIQUOR HUTCH
570.55
12/12/2023
113990
AUTO VALUE - GLENCOE
SHOP SUPPLIES - HATS
26.99
12/12/2023
113991
B & C PLUMBING & HEATING INC
HOME IMPRV LOAN - HRA
2,975.00
12/1212023
113992
BELLBOY CORP
COST OF GOODS SOLD - LIQUOR HUTCH
5,588,88
12/12/2023
113993
BENNY'S MEAT MARKET
TURKEY PROCESSING - POLICE
125.00
12/12/2023
113994
BERNICK'S
COST OF GOODS SOLD - LIQUOR HUTCH
968.16
12112/2023
113995
BFG SUPPLY CO
PERLITE - CREEKSIDE
7,744.88
12112/2023
113996
BOBBING BOBBER BREWING CO
COST OF GOODS SOLD - LIQUOR HUTCH
611.53
12/12/2023
113997
BOLTON & MENK INC
OTTER & CAMPBELL LAKES - ENG
17,390.50
12/12/2023
113998
BREAKTHRU BEVERAGE
COST OF GOODS SOLD - LIQUOR HUTCH
15,348.52
12/12/2023
113999
BUFFALO CREEK ENTERPRISES
COST OF GOODS SOLD - LIQUOR HUTCH
216.36
12/12/2D23
114000
BURMEISTER, JEROME
REIMB: SAFETY FOOTWEAR -WWTP
224.99
12 12/2D23
114001
C & L DISTRIBUTING
COST OF GOODS SOLD - LIQUOR HUTCH
34 737.70
12/12/2023
114002
CARS ON PATROL SHOP LLC
TOW MA457A AIRPORT TO HATS
145.00
12/12/2023
114003
CENTRAL HYDRAULICS
CONTRACTED AUTOMOTIVE R&M - PARKS
221.46
12/12/2023
114004
CENTRAL MCGOWAN
WELDING SUPPLIES - HATS
150.55
12/12/2023
114005
CINTAS CORPORATION
CLEANING SERVICES - MULTIPLE DEPTS
372.25
12/12/2023
114006
COAST TO COAST SOLUTIONS
STICKERS - POLICE
359.95
12/12/2023
114007
ICOKER COMPOSTING AND CONSULTING
SUPPORT TO COMPOST IT RIGHT - CREEKSIDE
300.00
12112/2023
114008
COLDSPRING
SPAUDE PLAQUE - CEMETERY
335.00
12/12/2023
114009
COMPUTER INTEGRATION TECHNOLOGIES
CIT VIDEO SURVEILLANCE PROJECT -
4,381.00
12/12/2023
114010
CORE & MAIN LP
METERS, TRANSMITTERS - WATER
3,508.63
12/12/2023
114011
CORNER POST EROSION CONTROL
REPAIRS - MULTIPLE DEPTS
3,351.50
12/12/2023
114012
CREEKSIDE SOILS
OPERATING SUPPLIES - PARKS
159.79
12/12/2023
114013
CROW RIVER AUTO REPAIR
MA457A FUEL PUMP REPAIR - AIRPORT
198.28
1211212023
114014
CROW RIVER PRESS INC
SENIOR NEWSLETTERS - SR CTR
40.12
12/12/2023
114016
CROW RIVER WINERY
COST OF GOODS SOLD - LIQUOR HUTCH
1,898.4D
12/12/2023
114017
DAHLHEIMER BEVERAGE
COST OF GOODS SOLD - LIQUOR HUTCH
49,245.05
12/12/2023
114018
DELL MARKETING LP
DELL SFF DESKTOP - IT
735.26
12/12/2023
114019
DESIGN ELECTRIC INC
REPAIR & MAINT SUPPLIES - LIBRARY
57.00
12/12/2023
114020
DOG -ON -IT -PARKS
DOG BAGS - PARKS
288.50
12 12 2023
114021
IDORSEY & WHITNEY L-L.P
VARIOUS DEVELOPMENT AGREEMENTS- EDA
17,015,00
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATE 12/12/23
Check Date Check # Vendar Descrigglon Amount
12/12/2023
114022
VOID
VOIDED CHECK
-
12/12/2023
114023
E2 ELECTRICAL SERVICES INC
INSTALLS - MULTIPLE DEPTS
1,590.99
12/12/2023
114024
EHLERS & ASSOCIATES INC
UPDATED TIF RUN HUTCH UPTOWN
280.00
12/12/2023
114025
ELECTRIC PUMP INC
EQUIPMENT PARTS - WWTP
422.38
12/12/2023
114026
ELECTRO WATCHMAN
PAINTBOOTH REMOVAL INNOVATIVE - EDA
446.25
12/12/2023
114027
ELK RIVER COMPOSTING INC
COMPOST BULK - CREEKSIDE
71,052.62
12/12/2023
114028
FARM -RITE EQUIPMENT
EQUIPMENT PARTS - MULTIPLE DEPTS
1,607.50
12/12/2023
114029
FASTENAL COMPANY
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
154.55
12/12/2023
114030
FLOW MEASUREMENT & CONTROL COMPAI
FL.OWMETER CALS - WWTP
2,102.00
12/12/2023
114031
FOSTER MECHANICAL
OUTSIDE SHOWER REPAIRS - WATERPARK
1,799.24
12/12/2023
114032
GALCO INDUSTRIAL ELECTRONICS
ELECTRICAL PARTS - WWTP
232.74
12/12/2023
114033
GARAGE DOOR STORE
OVERHEAD DOOR REPAIR - EDA
285.00
12/12/2023
114034
GAVIN JANSSEN & STABENOW LTD
SERVICES 11-30-23 - LEGAL
3,732.21
12/12/2023
114035
GEMPLER'S INC
REPAIR & MAINT SUPPLIES - PARKS
203.97
12/1212023
114036
GOODPOINTE TECHNOLOGY
2023 PAVEMENT CONDITION SURVEY -
7,162.50
12/12/2023
114037
GRAINGER
REPAIR & MAINT SUPPLIES - WWTP
695.16
12/12/2023
114038
GRANITE ELECTRONICS INC
SMALL TOOLS & MINOR EQUIP - FIRE
15.00
12/12/2023
114039
GREEN MOUNTAIN TECHNOLOGIES
DESIGN ENG, CASP, WELDED HDPE -
52,724.35
12/12/2023
114040
HACH COMPANY
LAB SUPPLIES - WWTP
145.58
12/12/2023
114041
HARPER BROOMS
BROOMS AND SHOVELS - CREEKSIDE
599.51
12/12/2023
114042
HAWKINS INC
CHLORINE TABLETS - ARENA
437.20
12/12/2023
114043
HILLYARD HUTCHINSON
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
1 075.60
12/12/2023
114044
HJERPE CONTRACTING
WATER MAIN REPAIRS - WATER
12,975.35
12/12/2023
114045
HOLT-PETERSON BUS
SR CENTER TRIP EXPENSES
895.00
12/12/2023
114046
HUTCHFIELD SERVICES
HATS JANITORIAL SERVICE
1,485,75
12/12/2023
114047
HUTCHINSON CO-OP
FUEL & SERVICES - MULTIPLE DEPTS
8,953,61
12/12/2023
114048
HUTCHINSON FARMERS MARKET
FARMERS MARKET GRANT - POWER OF
6,000.OD
12/12/2023
114049
HUTCHINSON HRA
HOME IMPV LOAN - HRA
287.50
12/12/2023
114050
HUTCHINSON LEADER
ADVERTISING - MULTIPLE DEPTS
4,845.66
12/12/2023
114051
HUTCHINSON UTILITIES
UTILITIES - MULTIPLE DEPTS
82,576.44
12/12/2023
114052
HUTCHINSON WHOLESALE #1550
HATS SHOP SUPPLIES
339.58
12/12/2023
114053
HUTCHINSON WHOLESALE #2520
OPERATING SUPPLIES - FIRE
29.97
12/12/2023
114054
HUTCHINSON YOUTH VOLLEYBALL ASSOC
VB REGISTRATION REIMB - REC
1,650.00
12/12/2023
114055
HUTCHINSON CITY OF
UTILITIES - MULTIPLE DEPTS
7,220.28
12/12/2023
114056
IMS-INDUSTRIAL MAINTENANCE SUPPLIES
HATS TOOLS
318.00
12/12/2023
114057
INGSTAD BROADCASTING
ADVERTISING - MULTIPLE DEPTS
409.00
12/12/2023
114058
INTERSTATE BATTERY SYSTEM OF MPLS
HATS BATTERIES
39.90
12/12/2023
114059
INTEX CORPORATION
CRUSH 1 MINUS - CREEKSIDE
88,648.25
12/12/2023
114060
JISD#423
OCT CLASSES - COMM ED
3,785.63
12/12/2023
114061
1JEFFERSON FIRE & SAFETY INC
AUTO EXTRACATION EQUIP - FIRE
35,244.00
12/12/2023
114062
jJLR GARAGE DOOR SERVICE
HATS OVERHEAD DOOR
457.50
12/12/2023
114063
IJOHNSON BROTHERS LIQUOR CO
COST OF GOODS SOLD - LIQUOR HUTCH
16,091.74
12/12/2023
114064
IJOHNSON CONTROLS FIRE PROTECTION LP
ANNUAL CONTRACT - EV CTR
1,689.77
12/1212023
114065
IJUUL CONTRACTING CO
SEWER REPAIRS - WWTP
29,389,10
12/12/2023
114066
JKAHNKE BROTHERS NURSERY
FDP TREES - STREETS
675.00
12/12/2023
114067
IKENNEDY SCALES INC
REPLACE SCALE WEIGH BARS - CREEKSIDE
4,490.30
12/12/2023
114068
KERI'S CLEANING & HANDYMAN SERVICES
CONTRACTED JANITORIAL - MULTIPLE LOCATIO
6,189.06
12/12/2023
114069
JKOHLS SWEEPING SERVICE
PILING CONCRETE AND ASPHALT - CREEKSIDE
300.00
12/12/2023
114070
1 L & P SUPPLY CO
SUPPLIES & REPAIRS - MULTIPLE DEPTS
522.50
12/12/2023
114071
LEENHOUTS INC
SCULPTURE STROLL 2023 AWARDS
250.00
12/12/2023
114072
LOGIS
LOGIS MONTHLY SERVICES - IT
9,060.09
12/12/2023
114073
LPT ENTERPRISES LLC
FREIGHT - BAGGED
865.00
12/12/2023
1114074
MARCO TECHNOLOGIES LLC
NOV CONTRACTS - MULTIPLE DEPTS
2,467.321
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATE 12/12/23
Check Date Check # Vendor Descriglion khount
12/12/2023
114075
MARCO TECHNOLOGIES LLC
PRINTING CONTRACTS - MULTIPLE DEPTS
393.23
12/12/2023
114076
MECA
MECA ANNUAL CONFERENCE - STORMWATER
415.00
12/12/2023
114077
MEI TOTAL ELEVATOR SOLUTIONS
CONTRACTUAL R&M - LIBRARY
225.16
12/12/2023
114078
MENARDS HUTCHINSON
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
596.18
12/12/2.023
114079
MESERB
TRAVELICONFERENCE - MULTIPLE DEPTS
300.00
12/12/2023
114080
MESSNER, SANDRA
SEW PANTS AND PATCHES - POLICE
25.00
12/12/2023
114081
MIDWEST FENCE & MFG
CHAIN LINK FENCING - ARENA PROJECT
13 924.00
12/12/2023
114082
MINNESOTA DEPT OF AGRICULTURE
ANNUAL PERMIT - WWTP
100.00
12/12/2023
114083
MINNESOTA DEPT OF HEALTH
Q4 2023 STATE FEE - WATER CONNECTIONS
12,512.00
12/12/2023
114084
MINNESOTA POLLUTION CONTROL AGENCY
MPCA LAB CERT ANNUAL FEE 2023 - WWTP
2,192.00
12/12/2023
114085
MINNESOTA VALLEY TESTING LAB
LAB RESULTS - MULTIPLE DEPTS
864.80
12/12/2023
114086
NELSEN, TIM
SCULPTURE STROLL 2023 AWARDS
750.00
12/12/2023
114087
NEO ELECTRICAL SOLUTIONS
AIRFIELD LIGHTING REPL PROJ #3
271 762.34
12/12/2023
114088
NEO ELECTRICAL. SOLUTIONS
AIRFIELD LIGHTING REPL PROJ #4
27,468.30
12/12/2023
114089
NORTHERN SAFETY & INDUSTRIAL
SAFETY SUPPLIES - MULTIPLE DEPTS
205.69
12/12/2023
114090
NORTHERN STATES SUPPLY INC
HATS PARTS
124.98
12/12/2023
114091
NORTHSTAR SURVEYING INC
SURVEYING FOR LOT 1140 POND - EDA
600.00
12/12/2023
114092
NUSS TRUCK & EQUIPMENT
HATS SHOP SUPPLIES
228.00
12/12/2023
114093
NUVERA
PHONE SERVICES - MULTIPLE DEPTS
S,863.09
12/12/2023
114094
JCIDP BUSINESS SOLUTIONS LLC
HATS BREAKROOM PLATES
44.99
12/12/2023
114095
IPARK NICOLLET CLINIC
DEC 2023 CAM
1,500.00
12/12/2023
114096
IPAUSTIS WINE COMPANY
COST OF GOODS SOLD - LIQUOR HUTCH
807.00
12/12/2023
114097
PDQ/Smar-tDe lay
SMART DEPLOY - IT
1,100.33
12/12/2023
114098
PEOPLEREADY INC
CREEKSIDE TEMP STAFFING
2,439.20
12/12/2023
114099
PHILLIPS WINE & SPIRITS
COST OF GOODS SOLD - LIQUOR HUTCH
9,033,20
12/12/2023
114100
PINE PRODUCTS INC
YARD AND GARDEN PINE BARK - CREEKSIDE
3,700.00
12/12/2023
114101
QUALITY FLOW SYSTEMS
LIFT STATION PUMPS - WWTP
47,206.00
12/12/2023
114102
QUILL CORP
COPY PAPER - POLICE
72.98
12/12/2023
114103
RAHN PAINTING & CONTRACTING LLC
DEC SNOW CONTRACT - MULTIPLE DEPTS
5,500,00
12/12/2023
114104
RAMSTAD TECHNOLOGIES LLC
CAMERA PROJECT
1,281.00
12/12/2023
114105
RED BULL DISTRIBUTION COMPANY INC
COST OF GOODS SOLD - LIQUOR HUTCH
193.40
12/12/2023
114106
REINDERS
OP SUPPLIES, LIB SQUARE - MULTIPLE DEPTS
2,307.60
12/12/2023
114107
REINER ENTERPRISES INC
ST CLOUD HAULING - CREEKSIDE
20,450.00
1?1.12 2023
114108
RUNNING'S SUPPLY
REPAIR & MAINT SUPPLIES - MULTIPLE DEPTS
211.02
12/12/2023
114109
SCHWICKERT'S TECTA AMERICA LLC
ROOF LEAK - ARRIVAL BLDG - AIRPORT
2,355.84
12/12/2023
114110
JSEPPELTP MILES
REIMB: SIGN HOLDER, TRAVEL - EDA
338.61
12/12/2023
114111
VOID
VOIDED CHECK
-
12/12/2023
114112
SHORT-ELLIOT-HENDRICKSON INC
PROFESSIONAL SERVICES - MULTIPLE
16,236.88
12/12/2023
114113
SITEONE LANDSCAPE SUPPLY
OPERATING SUPPLIES - PARKS
703.19
12/12/2023
114114
SNAP -ON INDUSTRIAL
HATS TOOLS
485.17
12/12/2023
114115
SOUTHERN WINE & SPIRITS OF MN
COST OF GOODS SOLD - LIQUOR HUTCH
11,102.90
12/12/2023
114116
STANDARD PRINTING-N-MAILING
POSTAGE, UPS - MULTIPLE DEPTS
3,406.24
12/12/2023
114117
STAPLES ADVANTAGE
OFFICE SUPPLIES - MUTIPLE DEPTS
399.64
12/12/2023
114118
STARWIND SOFTWARE INC
STARWIND SUPPORT- MULTIPLE DEPTS
5,282.00
12/12/2023
114119
STATE CHEMICAL SOLUTIONS
CLEANING SUPPLIES - PARKS
276.10
12/12/2023
114120
STONEBROOKE ENGINEERING INC
PROFESSIONAL SERVICES - ENG
55.11
12/12/2023
114121
STREICHER'S
TACTICAL. SUPPLIES - POLICE
1,708.76
12/12/2023
114122
TALL SALES COMPANY
OCT COMMISSIONS - CREEKSIDE
3,705.47
12/12/2023
114123
TERMINAL SUPPLY CO
HATS SHOP PARTS
59.05
12/12/2023
114124
THOMSON REUTERS-WEST
WEST INFORMATION CHARGES - LEGAL
1,266.72
12/12/2023
114125
TIDY UP!
WITT RELOCATION EXPENSE
975.00
12/12/2023
114126
TRI COUNTY WATER
BOTTLE WATER AND DELIVERY - MULTIPLE
102.50
12/12/2023
1114127
ITRUE BRANDS
I COST OF GOODS SOLD - LIQUOR HUTCH
497.20
CHECK REGISTER A FOR CITY OF HUTCHINSON
CHECK DATE 12/12/23
Check date
Check #
114128
Vendor
JVEGA AMERICAS INC
Descri tion
Amount
12/12/2023
EQUIPMENT PARTS - WWTP
6,389.58
12/12/2023
114129
IVERIZON WIRELESS
PHONE SERVICES - MULTIPLE DEPTS
4,100.36
12/12/2023
114130
IVIKING BEER
COST OF GOODS SOLD - LIQUOR HUTCH
21,059.20
12/12/2023
114131
IVIKING COCA COLA
COST OF GOODS SOLD - LIQUOR HUTCH
619.40
12/12/2023
114132
IVINOCOPIA INC
COST OF GOODS SOLD - LIQUOR HUTCH
946.75
12/12/2023
114133
VIVID IMAGE
ENTERPRISE CENTER MARKETING
450.00
12/12/2023
114134
WASTE MANAGEMENT OF WI -MN
REFUSE TAKEN TO LANDFILL
19,470.30
12/12/2023
114135
WATER CONSERVATION SERVICE INC
LEAK LOCATE 904 CHURCH - WATER
669.20
12/12/2023
114136
WEST CENTRAL SANITATION INC
OCT REFUSE - MULTIPLE DEPTS
4,122.14
12/12/2023
114137
WIDSETH SMITH NOLTING & ASSOC INC
VMF GRANDSTAND RENOVATION SERVICES
14,110.37
12/12/2023
114138
WINE COMPANY, THE
COST OF GOODS SOLD - LIQUOR HUTCH
984.00
12/12/2023
114139
WM MUELLER & SONS
L3P23-03,04 ALLEY IMPVS PAY #3
25,008.63
12/12/2023
Total Cheek
114140 WOOD & RUE PLLP
Register A:
IATTEND HEARING R.E. - LEGAL
32,00
$1 228 332.65
CHECK REGISTER B FOR CITY OF HUTCHINSON
CHECK DATE 12/12/23
Check Date
Check #
Vendor
Descri tion
Amount
12/12/2023
114015
ICROW RIVER SIGNS
MISC SIGNAG E AT NEW PU FACILITY
620,20
Total Check Register B:
$620.20
cR HUTCHINSON CITY COUNCIL
HUTCHINS- ,. _ : Request for Board Action
A CITY ON PURPOSE.
Review of Truth in Taxation Hearing
Agenda Item:
Department: Administration
LICENSE SECTION
Meeting Date: 12/12/2023
Application Complete N/A
Contact: Matt Jaunich
Agenda Item Type:
Presenter: Matt Jaunich
Reviewed by Staff ❑�
Communications, Requests
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes 0
BACKGROUND/EXPLANATION OF AGENDA ITEM:
As a follow up to the Truth in Taxation Hearing from December 5, the Council should have a
discussion on whether or not there is a desire to change anything in regards to the 2024 budget
and/or tax levy. Requests (if any) for additional information from the Truth in Taxation Hearing
and/or any changes to the proposed budget/levy will be presented at this time as well.
One last thing that we will need to discuss is our LGA allocation for 2024. With the nearly
$400,000 increase in LGA, we need to determine how we are going to allocation our Capital
Portion of those funds. I've have included an attachment with a recommended breakdown for
discussion on Tuesday.
BOARD ACTION REQUESTED:
No action at this time. Final budget and levy will be approved at the December 19 meeting
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: No 0
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
LGA Allocation
Year
Total
LGA
LGA
Increase
2010
1,784,272
2011
1,784,272
2012
1,784,272
2013
1,784,272
-
2014
2,213,199
428,927
2015
2,270,517
57,318
2016
2,286,660
16,143
2017
2,295,074
8,414
2018
2,395,326
100,252
2019
2,401,715
6,389
2020
2,576,807
175,092
2021
2,646,397
69,590
2022
2,668,410
22,013
2023
2,698,261
29,851
2024
3,097,925
-2024 LGA INCREASE
2024 LGA PROPOSED ALLOCATION
General Fund
Amount %
1,784,272 100%
722,000 40%
722,000 40%
722,000 40%
722,000 33%
825,000 36%
862,500 38%
1,000,000 44%
1,100,252 46%
1,100,252 46%
1,268,473 49%
1,268,473 48%
1,334,205 50%
1,349,131 50%
1,548,963 50%
Capital Projects Fund
Facility
Playround
Misc Maint
Misc CIP
Total
Plan
Replacement
Fund
Undesignated
1,062,272
1,062,272
1,062,272
750,000
312,272
1,062,272
750,000
312,272
1,491,199
1,000,000
491,199
1,445,517
750,000
375,000
320,517
1,424,160
700,000
375,000
349,160
1,295,074
700,000
375,000
220,074
1,295,074
700,000
375,000
220,074
1,301,463
700,000
375,000
226,463
1,308,334
700,000
50,000
400,000
158,334
1,377,924
700,000
50,000
400,000
227,924
1,334,205
700,000
50,000
400,000
184,205
1,349,130
700,000
50,000
400,000
199,130
1,548,962
50,000 !
_1
198,962
Policy notes LGA to be split 50/50 between general fund and Capital Projects Fund -- $199,832 increase to General Fund
$199,832 increase to the Capital Projects Fund
Proposing to increase the Facility plan by $100,000, the Misc. Maint. Fund by $50,000 and a new allocation of $50,000 for fleet
Non -designated misc. capital projects fund
cR HUTCHINSON CITY COUNCIL
V" I-r"LF'"!^.4 Request for Board Action
A CI f 4N PURPOSE.
2nd Reading - Consideration to Rezone a property from I/C zoning district to R-3
Agenda Item: zoning district located at 845 Hwy 7 W (north 175 feet).
Department: Planning
LICENSE SECTION
Meeting Date: 12/12/2023
Application Complete N/A
Contact: Dan Jochum
Agenda Item Type:
Presenter: Dan Jochum
Reviewed by Staff ❑�
Unfinished Business
Time Requested (Minutes): 5
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
This is the second reading of this proposed rezoning ordinance. The Council approved the first
reading on November 28th.
BAR Properties has applied for a rezoning of the south third of 845 Hwy 7 W. The applicant has
applied to rezone the property to R-3 Medium High Density Residential from I/C
Industrial/Commercial. All of the adjacent single-family homes are zoned R-3 and the new lots
created will be very similar to the existing single-family homes.
Nobody from the Public spoke regarding this request. The Planning Commission did not have
any questions regarding this request. The Planning Commission voted unanimously (4-0) to
recommend approval of the requested rezoning.
BOARD ACTION REQUESTED:
Approval of 2nd reading of ordinance.
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: New Bu
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
PUBLICATION NO.
ORDINANCE NO. 23-845
AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, TO REZONE PROPERTY AT
BLOCK 1, LOTS 1 THROUGH 3 BAR PROPERTIES PLAT
AS REQUESTED BY BAR PROPERTIES, LLC, PROPERTY OWNER.
THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS:
Section 1. Notice of hearing was duly given and publication of said hearing was duly made and was made to appear
to the satisfaction of the City Council that it would be in the best interest of the City to rezone the property from VC
(Industrial/Commercial District) to R-3 (Medium -High Density Residential District).
Section 2. That the property to be rezoned to R-3 is described as follows:
That part of the following described property:
Lots 1-3, Block 1, BAR Properties.
Section 3. This ordinance shall take effect from and after passage and publication.
Adopted by the City Council this 12th day of December, 2023.
ATTEST:
Matthew Jaunich, City Administrator Gary T. Forcier, Mayor
DIRECTORS REPORT - PLANNING DEPARTMENT
To: Hutchinson Planning Commission
From: Dan Jochum, AICP
Date: November 15, 2023 for November 21, 2023, Planning Commission Meeting
Application: Consideration of a Rezoning for BAR Properties
Applicant: Brent Reiner, BAR Properties
REZONING
BAR Properties has applied for a rezoning of the south third of 845 Hwy 7 W. The applicant has applied
to rezone the property to R-3 Medium High Density Residential from I/C Industrial/Commercial. All of
the adjacent single-family homes are zoned R-3 and the new lots created will be very similar to the existing
single-family homes.
N ' Indicates property described in this notice "
TEXAS AVENUE NW
40
AM
845
k f`,
TRUNK H� 7 W
Preliminary and Final Plat
BAR Properties Rezoning
Planning Commission—10/17/23
Page 2
Existing Zoning:
Property Location:
Existing Land Use:
Adjacent Land Use
And Zoning:
Comprehensive
Land Use Plan:
GENERAL INFORMATION
1/C Industrial/Commercial District
845 Hwy 7 W
Commercial
Commercial and Residential
Commercial
Zoning History: The original building was built in the 1960s. Property was
previously the shop and contractors yard for E&T Contracting.
CUP was issued for Car Sales in September 2023 and in October
2023 the lot was re -platted.
Applicable
Regulations: Sections 154.173 of the City Code
Rezoning Consideration:
In considering a rezoning request, the Planning Commission should review the proposed rezoning for
consistency with the surrounding area, City Plans and the purpose of the Zoning Ordinance.
The area to the south of the subject property is zoned I/C, the areas to the north and east are zoned R-3
residential and the area to the west is zoned R-4 residential. The general character of this area is
residential in nature. Staff understands that the homes built on these lots will be very similar in nature to
the single-family homes within the area.
Staff doesn't believe this rezoning request will change the character of the existing area, and in fact would
be complimentary to the existing uses in this area.
Staff Recommendations:
Staff recommends rezoning the property from VC to R-3 for the reasons noted above. Staff recommends
approval of the request with the following findings and recommendations:
1. The rezoning is consistent with the character of the surrounding area.
2. The property to the north and east is already zoned R-3.
3. The property to the west is zoned R-4.
4. The property is proposed to be developed as single-family homes. Rezoning would allow the proposed
use to be developed as residential homes.
5. Staff believes R-3 zoning is the highest and best use for the subject property.
cwNn of
%R—'S C—FIC— AN A-0—O—ENT
aN OF
NE mA
PLANNING CONMISS-, ON OF - Inky
. MINNMTA
ON QOJNM ON I HU—. —ESOTA
—.—T T--
r&F.SINE NC.,
Professional Land SurveIyom
BAR PROPERTIES
NORTH
GRAPHIC SCALE
ORIENTATION
— 11 T
— — — .111 —a.
PROPOSED EASEMENT DETAIL
WW A —
LEGEND
Z
c�
A
2 a
'BLOCK
L
BLOCK 2
41
F
7 7 lk 22
cR HUTCHINSON CITY COUNCIL
' 7CHINSON Request for Board Action
A CITY ON PURPOSE.
Approve/Deny Resolution 15666 - A Resolution Approving Plans and Specs and Odering an
Agenda Item: Advertisement for Bids on a New Grandstand and other Improvements at VMF Baseball Field
Department: Administration/PRCE
LICENSE SECTION
Meeting Date: 12/12/2023
Application Complete N/A
Contact: Matt/Lynn
Agenda Item Type:
Presenter: Matt/Lynn
Reviewed by Staff ❑�
New Business
Time Requested (Minutes): 10
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
Please see the attached memo and additional documentation.
BOARD ACTION REQUESTED:
Approve/Deny Resolution 15666 - A Resolution Approving Plans and Specs and Odering an
Advertisement for Bids on a New Grandstand and other Improvements at VMF Baseball Field
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: No 0
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
u
now
HUTCHINSON
A CITY ON PURPOSE.
Memo
To: Mayor & City Council
From: Matt Jaunich, City Administrator
Date: 12/12/23
Re: VMF Grandstand Project
Office of the City Administrator
111 Hassan Street SE
Hutchinson, MN 55350-2522
320-234-4241/Fax 320-234-4240
At Tuesday's City Council meeting, staff will be asking the City Council to consider a resolution
to approve the plans and specs and authorize an advertisement for bids on the VMF Grandstand
Project. To assist you in that decisions, I've put together this memo with attachments on
additional information regarding this project.
Background on Current Grandstand and VMF
The current grandstand is 38/39 years old having been built in 1985/86. The current
grandstand seats around 240 to 250 people. The middle section of the grandstand is covered
with the two outside areas not being covered. The current grandstand has no handrails and was
not constructed with handicap -accessible seating areas.
The League of MN Cities conducted an ADA Survey in July of 2021 (report included). In regards
to the grandstand, the report noted that the "current grandstand may not meet the ADA
accessibility regulations". They noted that our available seating down the left and right field
viewing areas (both concrete sidewalks and the area around the grandstands are concrete) are
a short-term fix for the non -accessibility of the grandstand, but hinted that they were not sure
how long that would be accepted. They noted that the City should develop a transitional plan
that would integrate accessible seating into the grandstand, and/or a replacement plan. Please
note that the 2023 CIP did not include any work on the grandstand.
In regards to VMF, the City and the Hutchinson Huskies have had a long-standing partnership.
The Huskies officially "adopted" VMF in 2019. The Huskies take care of whatever is within the
fenced -in area (mow grass, field prep, cleanup, etc.), and the City provides field and bathroom
supplies and fixes major issues. Outside of the fee we collect from the High School for use of
our field, the Huskies collect all other revenues from admissions/concessions. Annually, it costs
the City about $30,000 to operate VMF.
Background on this Project
Back in May of 2021, the Hutchinson Huskies approached the City Council about their desire to
see a new grandstand built. Their proposed plan included a grandstand that sat around 381
fans with a press box and included handrails and 6 handicap seating areas. The proposal also
noted that all of the seating areas would be covered. At that time, they noted they were going
to attempt to raise the funds on their own and estimated that the cost would be in the range of
$250,000 to $300,000. The City noted that replacement of the grandstand was not included in
the five-year capital improvement plan.
Then in April of this year, the Huskies officially requested financial assistance from the City in
getting the project done. Their initial request was for $250,000 to $300,000. At that time, the
Council was noncommittal to the project, but instructed staff to investigate the project and the
project costs. In the middle of July, the City hired Widseth to do a preliminary design and cost
estimate on a new grandstand.
The preliminary design and cost estimate were provided to the City Council at your council
meeting on August 22, 2023. The preliminary design was for a 380-seat stadium with a press
box and had a price estimate of about $625,000. What was unknown at that time was the
details on the dirt work/foundation along with additional detailed costs of the project. With that
in mind, the City Council adopted a resolution ordering a preparation of a report on a new
grandstand and other improvements and city continued its work with Widseth on completing
plans and specs. That has led us to the decision that is now in front of the City Council.
Current Proposal/Options
In early October, staff received a more detailed construction plan for a 380-seat stadium with a
press box that would replace the current grandstand. The cost estimate included more detailed
numbers on concrete foundations, demolition of the current grandstand, the moving of a water
line that is currently under the existing grandstand, and a new concrete walk that would
surround the grandstand. The concrete work would also correct flood ing/ponding issues that
currently occur in front of the current grandstand and would replace pavement that will need to
be addressed in the next couple of years. That cost estimate (attached) came in at just over
$826,000.
Staff had concerns on the cost estimate being too high and met with both Widseth and the
Hutchinson Huskies on a redesign that would eliminate some of the concrete work and shrink
the seating of the stadium. Widseth worked with us to eliminate some of the concrete work and
the Huskies agreed to shrink the stadium from 380 seats to 270. Those design changes
(attached) eliminated about $183,000 in costs.
The option that is to be considered tonight by the City Council is a 270-seat stadium (covered)
with press box, concrete walkways, and landscaping for a total estimated cost of $642,894.94.
Funding
As it stands right now, it is proposed that this project will be funded in two ways. One is
through the fundraising efforts of the Hutchinson Huskies. To date they have received $250,000
4
in donations/pledges, which includes a significant pledge from Citizens Bank in the amount of
$150,000 if the project moves forward. The remaining $400,000 would be covered by the City.
Staff is proposing that funding for this project would come from the City's facility plan.
As was noted earlier, the current CIP that was adopted in 2023 does not include the grandstand
project. With that being said, and if the City Council so desires, staff has proposed a plan to
include the grandstand project in the 2024-2028 CIP through our facility's fund (attached). Staff
is able to make this project happen if the Council desires because of the following:
We pushed back the remodel of City Center and the construction of a new Garage at
City Center ($700,000) to 2028. Neither one of these projects are ready to go or are in
dire straits, and neither one of the projects have a direct benefit/impact to the public
like a new grandstand would.
Within the last two weeks, the City has a received a commitment from Hutchinson
Utilities to fund the lighting project at VMF. This has an estimated cost of $305,000 and
was something, funding -wise, we are able remove from our Facilities Fund.
Making these adjustments allows us to keep all other projects in the queue including a
potential locker room remodel at Burich Arena for a minor league hockey club.
There is the potential for additional private funding with this project as well. Both the Huskies
and city administration have been contacted by private funding sources who have expressed
their hesitancy in committing funds to the project without the support of the City Council. To be
fair, we don't know if these donations would be $5 or $5,000 and ""potential" money has not
been factored into the funding sources.
Other items to take into Consideration
While the timing of this project might not be ideal for the City Council, there are two items I
would like for you to take into consideration.
1) As the project stands today, we are looking at private donations/pledges totaling about
250,000 to help fund this project. In my tenure here with the City, this would be the
second largest private donation(s) we have received for a specific project. Is the City
going to be willing to turn down that money? And if so, what does that mean for private
funding with future projects?
2) As previously noted, the current grandstand was installed in the mid-1980's. And as
noted, the current grandstand may not meet the ADA accessibility regulations. The
available seating down the left and right field viewing areas appear to be short-term
fixes for the non -accessibility of the grandstand, but how long will that last? Also, are we
nearing the expected life of a facility that is almost 40 years old? Now, we may have 10
years of life left in the current grandstand. I would just hate for it to only be 2-3 and we
pass up on this opportunity and are left potentially paying for it all on our own.
Next Steps
As you may recall, the Hutchinson Huskies would like to see a new grandstand constructed prior
to them hosting the State Amateur Baseball Tournament in 2025. For that to take place, we will
need to construct the grandstand in 2024 after the conclusion of the baseball season. So
ideally, we would like to be bidding this project out this winter for a fall of 2024 construction
season.
The first step is that what is in front of you tonight. For your consideration is a resolution
approving the plans and specs and authorizing an advertisement for bids. Approving that
resolution will move the project forward. This would include putting the project out for bids with
a bid opening likely this February/March. Denying the resolution would cancel the project at this
time.
If the resolution is approved and the project goes out for bids, there would still be one other
step in which this project could be cancelled. That could potentially occur after the bid opening.
If the City receives bids that are not favorable or to our liking, we would have the opportunity
to reject the bids, which would essentially cancel the project for 2024. A decision would then
have to be made to "go back to the drawing board" or to simply cancel the project.
Please let me know if you have any questions or need any additional information. Widseth and
the Hutchinson Huskies should also be in attendance to answer any questions you may have of
them or the project.
Matt
E
LMC0 LEAGUE
MINNESOTA
CITIES
July 23, 2021
JJ Verhey, Facilities Manager — jverhey@ci.hutchinson.mn.us
City of Hutchinson
I I I Hassan Street
Hutchinson, MN 55350
Re: Veterans Memorial Park ADA Survey Conducted on July 19, 2021
Dear A
On the above date, I met with Sara Witte and you to discuss loss control topics pertaining to Veterans
Memorial Park in the City of Hutchinson. This was in conjunction with the City of Hutchinson's
participation in the League of Minnesota Cities Insurance Trust (LMCIT) property, liability and/or
workers' compensation program.
Purpose of Visit
The primary purpose of my visit was to discuss the Americans with Disabilities Act (ADA) and
complete a basic review of key provisions. ADA became law in 1990, with the purpose being to allow
people with disabilities the same opportunities as everyone else, including all areas of public life,
schools, transportation, jobs, and all public and private places open to the public.
Key Provisions
• New Construction and Alterations: Facilities constructed or altered after January 26, 1992,
must comply with the ADA Standards for Accessible Design (ADA Standards), which are
available online (ADA Standards 2010)
• Program Access in Existing Facilities: state and local government's services, programs, and
activities, when viewed in their entirety, must be readily accessible to and usable by persons
with disabilities, known as "program access".
• 2010 ADA Standard include Recreational Facilities: The 2010 ADA Standards contain
requirements for recreational facilities that were not addressed in the 1991 Standards. Because
there were no previous accessibility standards for these types of facilities, the safe harbor does
not apply. So even if one of the city's recreational facilities was built prior to 2010, the rules
still apply.
• Self -evaluation of accessibility is required of all public entities. A transition plan is also
required for cities of over 50 employees. Right -of -Way Transition Plan Template
Lawsuits and Claims
While many ADA lawsuits are genuinely concerned with accessibility for the good of the disabled
public, the ADA has also been abused by certain attorneys seeking fees. Because of the complicities of
ADA's technical requirements, they can easily find something out of compliance at the city. In
addition, since there is no pre -litigation notice, the city does not see it coming. However, several
indicators that a lawsuit is about to occur include:
145 University Avenue West PH: (651) 281-1200 FX: (651) 281-1299
St. Paul, Minnesota 55103 TF: (800) 925-1122 www.imc.org
• Open records requests regarding the ADA assessments
• An increase in complaints regarding accessibility
• Numerous businesses in your city being sued by the same plaintiff for accessibility violations
Common ADA Problem Areas at Cities
• Parking Designation
• Routes to Building Access
• Building and Facility Access
• Event Seating
• Bathroom Accessibility
• Program Access
• Recreational Facilities
• Websites and Communication
How to Make Progress
If the city has not already done so, an ADA Self -evaluation should be completed, prioritized, and
implemented. Cities could use seasonal employees, volunteers, safety committee, in some instances,
a city may choses to hire a vendor, or use a local advocacy group to perform these evaluations.
MN State Council on Disabilities: Building Access Survey
Technical Assistance and Training
The ADA requires the Department of Justice, (DOJ) to provide technical assistance to businesses, state
and local governments, and individuals with rights or responsibilities under the law which it does
through its ADA Website: www.ada.gov
For local expertise from the MN State Council on Disabilities, training and consultants are linked
below:
ADA Training
Access Specialist
Summary of Solutions
Though no amount of risk prevention can eliminate the risk of ADA litigation, the following efforts go
a long way:
• Make sure your city has an ADA coordinator (50 or more employees), who understands the need
to coordinate the city's efforts to comply with and carry out the ADA mandates.
• Make sure your city has established a grievance procedure (50 or more employees), for
resolving complaints of violations.
• Confirm that a self -evaluation was conducted.
• Confirm the implementation of a transition plan.
Conclusions
• Veterans Memorial Park has several provisions to meet ADA requirements in place including:
o Assessable Parking near the main entrance
o Assessable routes from the parking area to viewing seating.
o Some Assessable Seating along the First & Third Base Line.
Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They
are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or
imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards
were noted. The final responsibility for conducting loss control and risk management programs rests with the member.
2
Taking additional steps will strengthen the city's efforts to meet ADA requirements and
improve accessibility.
Areas we discussed for an improvement include:
o Reviewing the Parking Lot to ensure enough assessable spaces are installed.
o Improving tables and eating locations
o Review seating for additional assessable seating including the grandstand.
o Update the restrooms for ADA compliance.
o Counter height for the concession stand.
o Pathway to left field shelter.
Resources
MN Council on Disabilities
MN State Council on Disabilities: Building Access Survey
Recreational Facilities: Access Board
Outdoor Developed Areas: Access Board
ADA Update: A Primer for State and Local Governments
ADA Best Practices Tool Kit for State and Local Governments
ADA Transition Plan: City of Richfield
NFPA Safety Codes and Standards Guide you to Safe Bleacher
Recommendations
I've included loss control recommendations to strengthen ADA elements for your consideration in the
appendix.
Thanks again for the time and courtesy extended to me during my visit. As always, if you have safety
or loss control related questions, please do not hesitate to contact me.
Sincerely,
O
Troy T. Walsh I Loss Control Consultant
Public Works Specialist
Mobile: (612) 554-0623 1 Tel: (651) 281-1231
E-Mail: twalsh@hnc.org I Web site: www.lmc.or
League of Minnesota Cities
145 University Avenue West
St. Paul, MN 55103-2044
c: Cathy Caviness, Agent — cathy caviness@?Ljg.com
Sara Witte, Park Supervisor — switte@ci.hutchinson.mn.us
Matt Jaunich, City Administrator — mjaunich@ci.hutchinson.mn.us
Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They
are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or
imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards
were noted. The final responsibility for conducting loss control and risk management programs rests with the member.
Recommendation Appendix
Below are areas involving ADA Accessibility we discussed and/or viewed during my visit to the City
of Hutchinson's Veterans Memorial Park. The City should take a closer look at these areas, using the
tools referenced in this letter, attached, and listed below, to identify deficiencies and to use as a guide
for improvements.
Minnesota State Council on Disabilities: Building Access Survey
MN Council on Disabilities: Building Access Survey
Recommendations generated from today's visit:
01-07/21: Suggest the City Review All City Facilities for ADA accessibility.
Recommend appointing an Accessibility Coordinator (cities over 50 employees) to coordinate ADA
transitional plan, address complaints, and facilitate other ADA requirements.
• ADA Update: A Primer for State and Local Governments
• ADA Best Practices Tool Kit for State and Local Governments
02-07/21: Suggest review of designated accessible parking spots at Veterans Memorial Field.
While designated parking spots exist at this location the number could be increased depending on total
spots allowed, and/or a van accessible space should be added. Currently there are Two (2) spots in the
gravel parking lot, that could accommodate more than 50 vehicles. Using the attached diagram, could
help determine the correct number of accessible stalls. MN Accessibility Code Summary
a
PARKIN
VEHICLE ID
/�
k �E`>FUIRED
UP TO S2DO f IN
E
FOR VIOLAMO
Total Number of
Parking Spaces in a
Parking Facility
Minimum Number of
Accessible Parking
Spaces Required
1
26 - S0
2
S3 - 7S
3
76 - 100
4
101- 150
3
ISI - 200
6
201- 300
7
301- 400
8
401- S00
9
501 - 1000
2%of total
1001 and over
20, plus 1 for each
100, or fraction there-
of, over 1000
M MRNINB
IN
ACLFlF
11KF
�n n� NO
U U/ PARKING D D U
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0J U L
n n
8 feet 8 feet 8 feet
Recommendations and comments are provided.for loss control and risk exposure improvement purposes only. They
are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or
imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards
were noted. The final responsibility for conducting loss control and risk management programs rests with the member.
11
03-07/21: Suggest replacing current Handicap Parking Signs. The current signs are faded, and not
legible. The current signs should be replaced with new signs that meet the Retroreflective Code.
04-07/21: Suggest accessibility review and improvement to restrooms located Veterans Memorial
Park. The current restrooms do not have proper handrails, stall spacing, or access for ADA
Compliance. Adding short-term ADA ports -potty can help with compliance during events and busy
summer season. You can use the diagram below as a reference. Areas that need to be reviewed and/or
addressed could be:
• Door opening width
• Door hardware, threshold, barriers
• Spacing of grab bars
• Plumbing protection under sink
• General spacing of accessories
I 29' MIN
44'
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3Q' J
46' f
Y
MN WOM
60'
T W
CLEAR
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Recommendations and comments are provided.for loss control and risk exposure improvement purposes only. They
are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or
imply in the making of these recommendations and comments that all sites were reviewed or that allpossible hazards
were noted. The final responsibility for conducting loss control and risk management programs rests with the member.
Current Mens Resroom
0
AA
Current Womens Resroom
Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They
are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or
imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards
were noted. The final responsibility for conducting loss control and risk management programs rests with the member.
6
ADA Restroom Spacing and Distance Referance
00W ftbff a not sibrwed
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05-07/21: Suggest reviewing an access path that connect the various features in the parks. This
includes additional shelters, playgrounds, restrooms, etc. A Paved, Concrete or "Firm and Stable
Surface" as defined by ADA could be added. Means of stabilizing trails include using amendments
of crushed rock to strengthen and improve the natural surface, wood chips, fine granular stone
(also referred to as crusher fines or decomposed granite) or recycled materials. This could be done
when improvements are made to these parks also. Documentation and Transition Plans are helpful.
(Examples)
Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They
are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or
imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards
were noted. The final responsibility for conducting loss control and risk management programs rests with the member.
7
(Current Buildings)
06-07/21: Suggest reviewing the picnic tables at all shelters & parks to ensure that 20% percent,
but not less than 2% percent accessible picnic tables. Picnic facilities- United States Access Board /
ADA Picnic Tables
(Example)
Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They
are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or
imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards
were noted. The final responsibility for conducting loss control and risk management programs rests with the member.
07-07/21: Suggest review and improvement to grandstand accessible seating and ADA
accessibility. The current grandstand was installed in the 1980's and has had some improvements over
the years including a canopy over the center section, and enclosures underneath to eliminate trash
collection and entrapment hazards. The current grandstand may not meet the ADA accessibility
regulation. The City has made efforts to a short-term plan for accessible seating in the left and right
field viewing area of the grandstand common area. Developing a transitional plan that would integrate
accessible seating into the grandstand, and/or replacement is also suggested.
(Example)
Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They
are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or
imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards
were noted. The final responsibility for conducting loss control and risk management programs rests with the member.
9
(Current Facilities)
Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They
are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or
imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards
were noted. The final responsibility for conducting loss control and risk management programs rests with the member.
10
.a
Recommendations and comments are provided for loss control and risk exposure improvement purposes only. They
are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or
imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards
were noted. The final responsibility for conducting loss control and risk management programs rests with the member.
11
City of Hutchinson
Veterans Memorial Stadium
Construction Estimate: August 2, 2023 (Revised October 11, 2023) (Revised October 30, 2023)
WIDSETH
Dana Hlebichuk, AIA VP
dana. hleb ichu k@widseth.con
507.358.9976
Design Option #3 (Phase 1)
Alliance Contracting Estimate
Unit Cost
Revised Estimate 10/30 Plans
Features: Size Cost Subtotal
Subtotal Additional Scope
Revised Scope
Delta
380 Seat stadium with canopy 380 seats $ 971.13 /seat $ 369,028.87
$ 369,028.87
$ 971.13
Seat
270 Seats $ 262,205.10
(110 Seats)
Press Box 8x18 144 sf Included with stadium
New concrete foundations 14 $ 4,642.85 /pier $ 64,999.90
$ 55,000.00
$ 3,928.57
Pier
10 Piers $ 39,285.70
(4 Piers)
Demoltion $ 50,000.00
$ 48,000.00
$ 48,000.00
No Change
New concrete walk $ 100,000.00
$ 170,000.00
$17.79
sf
6,821sf $121,345.59
(4,821sf)
$ 130,000.00
Earthworkand Utilities
$ 130,000.00
No Change
Subtotal $ 584,028.77
$ 772,028.87
$ 600,836.39
Design and Construction Contingency 7% $ 40,882.01
$ 54,042.02
$ 826,070.89
$ 42,058.55
Total $ 624,910.79
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FACILITIES PLAN
As of December 12, 2023
Beginning
(LGA)
Ending
Year Balance
Funding Improvements
Balance
2023 $171,993
$700,000
-$222,485
$649,508
2024 $649,508
$700,000
-$1,145,200
$204,308
2025 $204,308
$700,000
-$875,000
$29,308
2026 $29,308
$700,000
-$241,500
$487,808
2027 $487,808
$700,000
-$330,000
$857,808
2028 $857,808
$700,000
-$1,055,000
$502,808
Target
Original Actual Costs
Est. Costs
Year
Facility
Project
Estimate
to Date
to Complete
Total Costs
2023
City Center
Parking lot improvements
98,250
105,955
105,955
2023
Civic Arena
Drainage improvements
69,955
84,625
84,625
2023
Recreation Center
Gutters on North side
13,595
13,595
13,595
2023
Various
Miscellaneous improvements
50,000
18,310
18,310 Rec Ctr counters $14,310; CA Locker
mom design fee $4,000
2023 Total
231,800
208,890
13,595
222,485
2024
City Center
Roof improvements
140,000
140,000
140,000
2024
Civic Arena
East rink dasher boards
253,700
253,700
253,700
2024
Civic Arena
Locker room updates
62,000
62,000
62,000 Net of $50K estimated donation from hockey
team
2024
Fire Hall
Roof improvements
80,000
80,000
80,000
2024
Rec Center
New flooring in pool/locker/hall areas
50,000
50,000
50,000
2024
Senior Dining
Roof improvements
9,500
9,500
9,500
2024
Library
Carpet, finishes, fixtures
100,000
100,000
100,000
2024
VMF
Grandstand
400,000
400,000
400,000 net of $250K private donations
2024
Various
Miscellaneous improvements
50,000
50,000
50,000
2024 Total
1,145,200
-
1,145,200
1,145,200
2025
Roberts Park
Lighting improvements
745,000
745,000
745,000
2025
VMF Park
Lighting improvements
-
-
- $300K estimated, on HUC's capital plan
2025
VMF
Restroom improvements
25,000
25,000
25,000
2025
Parks Garage
New Overhead doors
45,000
45,000
45,000
2025
Parks Garage
HVAC replacement
10,000
10,000
10,000
2025
Various
Miscellaneous improvements
50,000
50,000
50,000
2025 Total
875,000
-
875,000
875,000
2026
Fire
Exhaust capture system
55,000
55,000
55,000
2026
Fire
Concrete repairs
42,000
42,000
42,000
2026
Fire
Garage floor epoxy
44,500
44,500
44,500
2026
Roberts Park
Concession/restroom upgrades
50,000
50,000
50,000
2026
Various
Miscellaneous improvements
50,000
50,000
50,000
2026 Total
241,500
-
241,500
241,500
2027
Parks Garage
Cold storage steel/concrete
150,000
150,000
150,000
2027
Roberts Park
Perimeter fencing
100,000
100,000
100,000
2027
Water Street Garage
Siding/soffits
30,000
30,000
30,000
2027
Various
Miscellaneous improvements
50,000
50,000
50,000
2027 Total
330,000
-
330,000
330,000
2028
City Center
Remodel
300,000
300,000
300,000
2028
City Center
New garage
400,000
400,000
400,000
2028
Roberts Park
Parking Lot improvements
285,000
285,000
285,000
2028
Library
Sidewalk improvements
10,000
10,000
10,000
2028
Senior Dining
Lighting improvements
10,000
10,000
10,000
2028
Various
Miscellaneous improvements
50,000
50,000
50,000
2028 Total
1,055,000
-
1,055,000
1,055,000
RESOLUTION NO. 15666
RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING AN
ADVERTISEMENT FOR BIDS
NEW GRANDSTAND AND OTHER IMPROVEMENTS AT VMF
WHEREAS, following the adoption of Resolution 15625 on August 22, 2023 by the City
Council, Widseth has prepared plans and specifications for the following described city project:
Demolition of old grandstand; construction of new 270 seat stadium (grandstand) with
canopy and press box, new concreate foundations, landscaping and concrete walk
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HUTCHINSON, MINNESOTA:
1. Such plans and specifications, a copy of which is attached hereto and made a part hereof,
are hereby approved.
2. Widseth shall prepare and cause to be inserted in the official newspaper, the City's
website, and in the Minnesota Builders Exchange and/or similar -like trade magazines, an
advertisement for bids upon the making of such improvements under such approved plans
and specifications. The advertisement shall be published for three weeks, shall specify the
work to be done, shall state when the bids will be received and by whom; and that at
which time they will be publicly opened at the Hutchinson City Center, 111 Hassan
Street SW, by the City Administrator, will then be tabulated, and the responsibility of the
bidders will be considered by the City Council at a future city council meeting in the
council chambers of the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, MN.
Any bidder whose responsibility is questioned during consideration of the bid will be
given an opportunity to address the City Council on the issue of responsibility. No bids
will be considered unless sealed and filed with the City Administrator and accompanied
by cash deposit, cashier's check, bid bond or certified check payable to the City of
Hutchinson for 5 percent of the amount of such bid.
Adopted by the Hutchinson City Council this 12th day of December, 2023.
Gary Forcier, Mayor
Matthew Jaunich, City Administrator
cR HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Approve Rescheduling of the December 26 City Council Meeting
Agenda Item:
Department: Administration
LICENSE SECTION
Meeting Date: 12/12/2023
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 0
BACKGROUND/EXPLANATION OF AGENDA ITEM:
As was discussed at the last council meeting, with the Holiday, there is a desire to reschedule
the December 26 city council meeting. The discussion at the last meeting was to move it up a
week to Tuesday, December 19 at 5:30 p.m.
If there is still a desire to do this, the Council must take an official action to reschedule the
meeting.
BOARD ACTION REQUESTED:
Approve Rescheduling of the December 26 City Council Meeting to December 19 at 5:30 p.m.
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: No 0
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
cR HUTCHINSON CITY COUNCIL
HUTCHINSON Request for Board Action
A CITY ON PURPOSE.
Consideration of Setting Date for City Administrator Annual Performance Review
Agenda Item:
Department: Admin
LICENSE SECTION
Meeting Date: 12/12/2023
Application Complete N/A
Contact: Kellie Wendland
Agenda Item Type:
Presenter: K Wendland/M Sebora
Reviewed by Staff ❑
New Business
Time Requested (Minutes):
License Contingency N/A
Attachments: No
BACKGROUND/EXPLANATION OF AGENDA ITEM:
Per the Employment Agreement between the City of Hutchinson and Matt Jaunich, City
Administrator, the City Council will conduct an annual performance review for the City
Administrator at the end of each calendar year. The Council may set the review as an agenda
item of a regularly scheduled City Council meeting or set a special meeting for this purpose.
Upon the scheduling of the review, Human Resources will provide the City Council with the
performance review forms.
As part of the review process and also per the agreement, the City will consider an increase in
compensation to the Administrator dependent upon the results of the performance evaluation
and consistent with the City of Hutchinson annual Compensation Plan.
BOARD ACTION REQUESTED:
Set a date for City Administrator Matt Jaunich's annual performance review.
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
MINUTES
HUTCHINSON SUSTAINABILITY ADVISORY BOARD
Monday, October 16, 2023
5:30 p.m. Hutchinson City Center
1. CALL TO ORDER 5:30 P.M.
The October 16, 2023 Sustainability Advisory Board was an in -person meeting called to
order by Jeremy Carter at 5:30 p.m. Board members in attendance were, Jeremy Carter,
Andy Nissen, and Nathan Winter. Also present were John Paulson, City
Project/Env./Regulatory Manager, and Mike Stifter, Public Works Director
2. PLEDGE OF ALLEGIANCE
3. CONSENT AGENDA
A. CONSIDERATION OF MINUTES DATED August 21, 2023
1 st: Andy 2nd:Nathan
4. NEW BUSINESS
A. EV SMART CITIES
a. RIDE AND DRIVE EVENT SAMPLE — SPRING 2024?
b. CITY WEBSITE EV PAGE DEVELOPMENT
John Paulson updated the Board on EV Smart action that are being developed. A
discussion was held about hosting a EV Ride and Drive event in the spring of 2024.
Local automotive dealerships would be invited to participate in the event.
Jeremy Carter provided an overview and update of Hutchinson Utilities insight on EV
charging stations and local dealership inquiries into scaling up their infrastructure to
support the EV market growth. Current plans include further maturation of EV
marketing and service programs for the dealerships.
5. UNFINISHED BUSINESS
A. ALTERNATIVE NATIVE LANDSCAPES
a. ORDINANCE 923-840 NUISANCE VEGETATION ORDINANCE
b. LANDSCAPE MANAGEMENT PLAN
Mr. Paulson updated the board on the Nuisance Vegetation Ordinance and the
scheduled to occur on October 24tn
6. COMMUNICATION FROM STAFF
A. SWC CLIMATE RESILIENCY GRANT UPDATE
Paulson provided a status update to the Board about the Climate Resiliency Grant.
GIS data ag�p analysis completed by SEH has required a significant amount of staff
time to collect missing data in the field. Once the data collection is completed it will
be submitted to SEH so they may begin building the stormwater model for the study
area located north of the river. Staff will begin to distribute outreach materials by
utilizing QR codes and web based map so that residents can submit location specific
information about areas they have observed flooding in the past. Information
submitted will be anonymous and include options to submit comments and photos.
B. LAKES AND RIVER IMPROVEMENT PROJECT UPDATE
a. LEGISLATIVE BUS TOUR SUMMARY
b. PROJECT DEVELOPMENT UPDATE — POSTER BOARDS
John Paulson updated the Board on the project. Landowner engagement has been
ongoing and includes McLeod SWCD staff that have been engagingproperty
owners that are prime areas for river bank restoration improvements. City and Bolton
& Menk staff are working with two property owners where there is opportunity and
interest in constructing a forebay adjacent to the river so sediment and nutrients can
be reduced before entering Campbell and Otter Lake. Information provided to the
Legislative Bonding Bus Tour was shared with the Board. Positive feedback was
received from the Board regarding the project and current status.
7. MISCELLANEOUS
Mike Stifter included an update of the Citv's Emerald Ash Borer status in response to
the pest being found in McLeod County for the first time this year. The City is in a
good position financially and with staff capacity to continue diversification of species
planted in City right-of-way to reduce the number of Ash trees. A more in-depth
programpdate will provided in the Spring 2024.
8. ADJOURNMENT
c� HUTCHINSON CITY COUNCIL
Request for Board Action
A CITY ON PURPOSE.
Closed Session According to Minnesota Statute 13D.05, subdivision 3(c)
Agenda Item:
Department: Administration
LICENSE SECTION
Meeting Date: 12/12/2023
Application Complete N/A
Contact: Matt Jaunich
Agenda Item Type:
Presenter: Matt Jaunich
Reviewed by Staff ❑�
New Business
Time Requested (Minutes): 10
License Contingency N/A
Attachments: Yes
BACKGROUND/EXPLANATION OF AGENDA ITEM:
City staff will be asking the City Council to consider going into a closed session according to
Minnesota Statue 13D.05, Subd. 3(c), to consider the asking price for the properties at 44
Washington Avenue West (EOC Building), 10 Frankling Street SW (Police Station), and 28
Franklin Street SW (Police Parking Lot).
Our agent, Matt Pulkrabek of Hometown Realty will be present to go over some more recent
market data and to assist us in setting a sale price for the properties. I'll also be asking for some
direction from the Council when it comes to offers coming into the City. Attached for your review
is market data put together by Matt.
BOARD ACTION REQUESTED:
Going into a closed session to consider the asking price for the properties at 44 Washington
Avenue West, 10 Franklin Street SW, and 28 Franklin Street SW
Fiscal Impact: Funding Source:
FTE Impact: Budget Change: No 0
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