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cp08-08-2006 cAGENDA REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 8, 2006 1. CALL TO ORDER — 5:30 P.M. 2. INVOCATION — Rev. James Rainwater, Seventh Day Adventist Church 3. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS 5. MINUTES (a) REGULAR MEETING OF JULY 25, 2006 Action - Motion to approve as presented 6. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. PUBLIC ARTS COMMISSION MEETING MINUTES FROM MAY 16, 2006, AND JUNE 20, 2006 2. FIRE DEPARTMENT MONTHLY REPORT FOR JULY 2006 3. BUILDING DEPARTMENT MONTHLY REPORT FOR JULY 2006 • 4. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR JUNE 2006 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 13006 - RESOLUTION DESIGNATING THE LOCATION OF POLLING PLACE FOR ALL CITY PRECINCTS AND APPOINTING JUDGES FOR THE 2006 CITY OF HUTCHINSON AND STATE PRIMARY AND GENERAL ELECTIONS 2. RESOLUTION NO. 13009 — RESOLUTION FOR PURCHASE (SEAL COAT PROJECT, FIBER CONNECTION, UNLEADED GASOLINE) 3. RESOLUTION NO. 13010 — RESOLUTION RELEASING PLEDGED SECURITIES FROM HOME STATE BANK 4. ORDINANCE NO. 06 -0440 — AN ORDINANCE ESTABLISHING A PROCEDURE FOR ENFORCING ADMINISTRATIVE PENALTIES FOR CERTAIN PETTY MISDEMEANORS AND MUNICIPAL CODE VIOLATIONS (SECOND READING AND ADOPTION) 5. ORDINANCE NO. 06 -0441 AN ORDINANCE REZONING PROPERTY LOCATED AT 255 AND 287 HWY 7 EAST FROM INDUSTRIALICOMMERCIAL TO R2 (SET SECOND READING AND ADOPTION) 6. ORDINANCE NO. 06-0442 — AN ORDINANCE AMENDING CHAPTER 120 OF THE CURRENT PAWNBROKERS ORDINANCE (SECOND READING AND ADOPTION) (c) CONSIDERATION FOR APPROVAL OF 32 "d ANNUAL ARTS & CRAFTS FESTIVAL TO BE HELD SEPTEMBER 15-16,2006, IN LIBRARY SQUARE AND SURROUNDING STREETS CITY COUNCIL AGENDA —AUGUST 8, 2006 . (d) CONSIDERATION FOR APPROVAL OF RESOLUTION REQUESTING MUNICIPAL STATE AID VARIANCE FOR HIGHWAY 7 UNDERPASS TRAIL Action — Motion to approve consent agenda 7. PUBLIC HEARINGS — 6:00 P.M. (a) CONSIDERATION FOR APPROVAL OF PROCEEDING WITH 2006 STREET/TRAIUSIDEWALK IMPROVEMENT PROJECTS (LETTING NO. 5, PROJECT NO. 06 -05) — ADOPTING ASSESSMENT AND ACCEPTING BID Action — Motion to reject — Motion to approve 8. COMMUNICATIONS, REOUESTS AND PETITIONS (a) ISSUES RELATED IQ NORTHWEST CORNER OF MILLER WOODS PARK PRESENTED BY KATE SEVERSON, 1270 7 AVENUE NW Action - (b) UPDATE BY CANDICE WOODS ON LIQUOR HUTCH OPERATIONS No action. 9. UNFINISHED BUSINESS (a) CONSIDERATION FOR APPROVAL OF CALLING FOR SALE OF 2006 IMPROVEMENT BONDS, GENERAL OBLIGATION WATER BONDS AND GENERAL OBLIGATION WASTEWATER BONDS Action — Motion to reject — Motion to approve (b) CONSIDERATION FOR APPROVAL OF OUT -OF -STATE TRAVEL FOR RANDY DEVRIES TO ATTEND THE WATER ENVIRONMENT FEDERATION ANNUAL TECHNICAL EXHIBITION AND CONFERENCE ON OCTOBER 21 — 25, 2006, IN DALLAS, TEXAS Action — Motion to reject — Motion to approve 10. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF COOPERATION BETWEEN CREEKSIDE AND PUBLIC WORKS/PARKS FOR THE UPCOMING 2006 -2007 SNOW REMOVAL SEASON Action — Motion to reject — Motion to approve (b) CONSIDERATION FOR APPROVAL OF CONSULTING AGREEMENT WITH BOLTON & MENK CONSULTING REGARDING CONSTRUCTION STAKING ON THE HIGHWAY 7 PROJECT Action — Motion to reject — Motion to approve (c) DISCUSSION OF HUTCHINSON AREA TRANSPORTATION SERVICES (HATS) FACILITY DEVELOPMENT AND OPERATIONS Action — Motion to reject — Motion to approve (d) CONSIDERATION FOR APPROVAL OF SETTING HEARING FOR DETERMINATION OF Aak DANGEROUS ANIMAL AS REQUESTED BY DAVID FREUND Action — Motion to reject — Motion to approve CITY COUNCIL AGENDA — AUGUST 8, 2006 11. MISCELLANEOUS • (a) COMMUNICATIONS 12. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS 13. ADJOURN • MINUTES REGULAR MEETING — HUTCHINSON CITY COUNCIL TUESDAY, JULY 25, 2006 . CALL TO ORDER — 5:30 P.M. 2. INVOCATION — Father Keith Salisbury, St. Anastasia Catholic Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS 5. MINUTES (a) REGULAR MEETING OF JULY 11, 2006 Motion by Stotts, second by Arndt, to approve the minutes as presented. Mayor Cook noted that the alley credits for Letting No. 7, Project No. 06 -07 & 06 -09 should be noted to say that a credit would apply if any major work needs to be done within a 15 -year period. Motion by Stotts, second by Haugen, to amend the motion to include adding the language regarding the 15 -year time frame. Motion carried unanimously. 6. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM JUNE 20, 2006, AND JUNE 28, 2006 2. PLANNING COMMISSION MINUTES FROM JUNE 20, 2006 • 3. PUBLIC LIBRARY BOARD MINUTES FROM APRIL 24, 2006, AND MAY 22, 2006 4. CITY OF HUTCHINSON FINANCIAL REPORT FOR JUNE 2006 5. CITY OF HUTCHINSON INVESTMENT REPORT FOR JUNE 2006 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 12995 — RESOLUTION AMENDING RESOLUTION NO. 12992 AUTHORIZING PURCHASE OF LAND FOR ECONOMIC DEVELOPMENT 2, RESOLUTION NO. 13001 — RESOLUTION FOR PURCHASE (BIODIESEL) (c) PLANNING COMMISSION ITEMS 1. CONSIDERATION OF REZONING PROPERTY LOCATED AT 255 AND 287 HWY 7 EAST FROM INDUSTRIAL /COMMERCIAL TO R2 WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 06 -0441 FOR AUGUST 8, 2006) 2. CONSIDERATION OF LOT SPLITS ON OTTAWA AVENUE SE SUBMITTED BY PAUL BETKER WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NUMBERS 12996, 12997, 12998 AND 12999) 3. CONSIDERATION OF A LOT SPLIT LOCATED AT 1160 BLUEJAY.DRIVE SW SUBMITTED BY BRUCE NAUSTDAL WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 13000) • (d) CONSIDERATION FOR APPROVAL OF TRANSIENT MERCHANT LICENSE FOR DAVID WAJCMAN OF CLOTHING CONCEPTS FOR CLOTHING SALE JULY 26, 2006, AT RECREATION CENTER (e) CONSIDERATION FOR APPROVAL OF OUT -OF -STATE TRAVEL FOR RANDY DEVRIES TO ATTEND THE WATER ENVIRONMENT FEDERATION ANNUAL TECHNICAL EXHIBITION AND J�� CITY COUNCIL MINUTES — JULY 25, 2006 CONFERENCE ON OCTOBER 21 — 25, 2006, IN DALLAS, TEXAS • (f) CONSIDERATION FOR APPROVAL OF OUT -OF -STATE TRAVEL FOR LENNY RUTLEDGE TO ATTEND THE INTERNATIONAL CODE COUNCIL HEARINGS ON SEPTEMBER 21— 29, 2006, IN ORLANDO, FLORIDA (g) CONSIDERATION FOR APPROVAL OF FAIRWAY ESTATES 3RD ADDITION SUBDIVISION AGREEMENT (h) CONSIDERATION FOR APPROVAL OF PURCHASE OF MED NET IV SOFTWARE SYSTEM AS REQUESTED BY HUTCHINSON AREA HEALTH CARE (i) CONSIDERATION FOR APPROVAL OF SURGERY REMEDIATION PROTECT AS REQUESTED BY HUTCHINSON AREA HEALTH CARE ' Items 6(c)1, 6(c)2, 6(c)3, 6(d) and 6(e) had further discussion. Motion by Stotts, second by Haugen, to approve consent agenda with the exception of the items noted. Motion carried unanimously. Item 6(c) I had further discussion. Mayor Cook noted that staff requested that Resolution No. 13002 be approved approving the findings of fact that were submitted by the Planning Commission. This will be in addition to the ordinance. Motion by Stotts, second by Peterson to adopt Resolution No. 13002 and the first reading of Ordinance No. 06 -0441. Motion carried unanimously. Items 6(c)2 and 6(c)3 had further discussion. Mayor Cook noted that much discussion was held on each of these items at the Planning Commission level. Rebecca Bowers, Planning Director, presented before the Council. Ms. Bowers explained that these lot split requests were made after the developments had been platted. Planning Commission discussion centered mainly around the process of approving lot splits. The process that is followed currently allows lot splits for platted developments after building permits have been • issued and the homes are under construction, however this does not allow the City to collect an additional fee that is usually regulated in a subdivision agreement at the time of platting. There was also discussion regarding the amount of trees that need to be on each lot. Council Member Haugen provided input that the Planning Commission discussed, which ultimately recommended the lot splits, but did not require the developers to pay the extra fees for additional trees. Motion by Peterson, second by Arndt, to approve Items 6(c)2 and 6(c)3, advising staff to begin requiring lots to be platted for twin homes and multifamily units with the preliminary and final plats. Motion carved unanimously. Item 6(d) had further discussion. Mayor Cook noted that Dolf Moon was indicated as a reference on the application. Mr. Moon noted that he does not personally know the applicant, however he is in charge of the Rec Center where the sale will be held. Motion by Arndt, second by Stotts, to approve Item 6(d). Motion carried unanimously. Item 6(e) had further discussion. John Rodeberg noted that Mr. DeVries is not in attendance tonight to address the matter, so he requested that the item be tabled until the next meeting. Motion by Peterson, second by Stotts, to table Item 6(e) until the next City Council meeting. Motion carried unanimously. 7. PUBLIC HEARINGS — 6:00 P.M. (a) CONSIDERATION OF ISSUING TAX EXEMPT HOUSING AND HEALTH CARE REFUNDING REVENUE BONDS AND AUTHORIZATION OF AMENDED AND RESTATED JOINT POWER AGREEMENT (THE OAKS) Joyce Akre, Housing Manager of The Oaks, presented before the Council. The Oaks is owned by a company called Ecumen that owns several senior housing facilities throughout the state. Ms. Akre explained that this • issue is a refinancing matter that will be sold through the City of Lake Crystal. The action required by the Council is a joint powers agreement due to one of the properties owned by Ecumen being located within the City of Hutchinson. The fee required by the City of Hutchinson will be 1/2% of the refinancing amount, which will be approximately $12,750.00. This fee is being collected because no fee was imposed at the time 5(6,) CITY COUNCIL MINUTES —JULY 25, 2006 of the initial financing. • Motion by Arndt, second by Peterson, to close public hearing. Motion carried unanimously. Motion by Arndt, second by Haugen, to approve issuing tax exempt housing and health care refunding revenue bonds and approving joint powers agreement with imposing a City fee of $12,750.00. Motion carried unanimously. Motion by Haugen, second by Stotts, to approve Resolution No. , resolution. Motion carried unanimously. (b) REVIEW OF SCHOOL ROAD/HIGHWAY 7 UNDERPASS John Rodeberg, Public Works Director, delivered the same power point presentation that was delivered at the July 11, 2006, City Council meeting, which provided background on the project as to how it got to where it is today. Over the years, many studies, focus groups, and task forces were established and several locations were studied that related to safety issues. Both overpasses and underpasses were studied and analyzed. Based on all of the financial and feasibility studies, an overpass located near the intersection of Hwy 7 and School Road was recommended. Timing for the project now is appropriate as Hwy 7 is being reconstructed and the City can save substantial money by incorporating it with this improvement project. Mr. Rodeberg then reviewed the tentative construction schedule as well as the base design, including the various design amendments that have been made along the way. $1.2 million is projected for the project. Mr. Rodeber� noted that for an additional $225,000 an entire trail system can be developed in this area, with trails extending to Shady Ridge Road to the west and Rolling Oaks Lane to the north. Mayor Cook commented that should the City decide to proceed with this project, he feels that it should all be done at one time. He would like to discuss this topic again at a Council workshop on August 8, 2006, to compare other capital improvement projects that are scheduled and determine priority and funding of the various projects. Council Member Stotts noted that the City currently does not have f indmg for this project, however in order to pay for it, money may need to be taken from another source or taxes may need to be raised. He did note IS that further in the agenda, a discussion item will be held regarding imposing administrative penalties, which could help fund projects like this. Mike McGraw, 1440 Heritage Avenue, presented before the Council. Mr. McGraw noted that for 13 years he lived on the south side of School Road and continually used the Hwy 7 /School Road to transport his kids to friends' houses on the north side. He, like other parents, will not allow his children to ride bike /walk across this intersection. He encouraged the Council to take action tonight and move forward with this project. Rich Westlund, 470 Campbell Lane, presented before the Council. Mr. Westlund explained that he was part of one of the task forces in 1993 that studied this issue. One of the major issues at that time was to address major safety- related intersections. He encouraged the Council to move forward with this project. Lloyd Schlueter, 907 Hillcrest Road, presented before the Council. He feels that this underpass should be located at Shady Ridge Road instead of School Road and Hwy 7, and adjust the stoplights at the intersection. Tony Rannow, Rolling Oaks Lane, presented before the Council. Mr. Rannow noted that he is a rather new resident to the City and applauded the City for being so progressive. He noted that the construction of this underpass makes good sense and he and his wife do not feel safe crossing the intersection. Liz Schwarze, McLeod County Historical Society, presented before the Council. Ms. Schwarze noted that the Board of Directors is not opposed to the underpass project, but they are opposed to the location of the access. Ms. Schwarze requested that the additional trails be put in place to make the entire project safe. Sedona Miller, 1235 Golfview Court, presented before the Council. Ms. Miller relayed thoughts of she and her recently passed husband, John. Ms. Miller recalled the hard work the group of museum volunteers have done to construct what it has done today. Ms. Miller requested that the location of the tunnel be moved a _ little further west as to impede on the Heritage Center's property as little as possible. qW Bill Mitchell, Carolina Avenue, presented before the Council. Mr. Mitchell explained that he uses this intersection quite a bit and has already been hit once by a motorist. 5eQ) CITY COUNCIL MINUTES —JULY 25, 2006 A resident of 335 Charles Street presented before the Council. She explained that she too has been hit by a • motorist at this intersection and does not wish for this to happen to anyone else. Gabra Lokken, 390 Shady Ridge Road, presented before the Council. Ms. Lokken noted that she feels the construction of this trail/underpass so close to the Heritage Center will bring more people past it that may not have before and could be good for the museum. Marlin Torgerson presented before the Council. Mr. Torgerson explained that recently approximately 80 children attended a golf outing held by the Crow River Golf Club and he feels that an underpass may have encouraged those children to utilize the trail and ride their bikes to the golf club. Mr. Torgerson also agreed with Ms. Lokken in the fact that this underpass /trail may bring in more users of the museum. He also stressed that the City needs to look at future use of this area 10 -15 years from now. John Komgiebel presented before the Council. Mr. Komgiebel requested that more definitive plans be presented that are easier to read. Dennis Heckes, 325 Hassan Street, presented before the Council. Mr. Heckes is a board member of the McLeod County Heritage Center. Mr. Heckes also noted that the current design location is largely related to the requests of the Heritage Center. Mr. Heckes also requested that the stoplights at the intersection be adjusted for pedestrians. He also encouraged support for paving of the trail as well. John Rodeberg noted that adjustments that are planned for the intersection include colored crosswalks and different timings of the lints. Mr. Rodeberg suggested a group meeting with Mn/DOT representatives to talk about various safety issues at this intersection. Keith Kamrath, 717 Shady Ridge Road, presented before the Council. Mr. Kamrath encouraged that the trail extensions be included over to Shady Ridge Road to increase safety. • David Nissen, 630 Shady Ridge Road, presented before the Council. Mr. Nissen explained that approximately three years ago he broke his collarbone while crossing this intersection. He stressed the importance of safety at this intersection. Claire Lenz, 550 Campbell Court, presented before the Council. Ms. Lenz stated that there are four issues to consider: Hwy 7 traffic will only get faster, north end residents have no safe route to the south end, residents do not want Hutchinson to be labeled as unprogressive and a dollar amount on the value of a life cannot be measured. Dean Nissen, 630 Shady Ridge Road, presented before the Council. Dr. Nissen stated that based on the information presented, this project and the timing of it seems to make the most sense and the best solution. Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously. Council Member Stotts asked if anything was going to be done at the Hwy 7 /California Street intersection. John Rodeberg noted that nothing is planned due to it being uncontrolled, with controlled intersections being located at Hwy 7/Montana Street and Hwy 7 /School Road. Council Member Stotts noted that some residents that live near California Street had inquired this of him and noted that they would probably not cross at the proposed underpass location. Motion by Arndt, second by Peterson, to proceed with this project, including the additional trail accesses to Shady Ridge Road and Millers Woods, requesting that John Komgiebel be part of design discussions to represent the wishes of the McLeod County Heritage Center. Mayor Cook noted that it should be determined now as to how this project will be funded. State -aid funding and grants will be considered to help fund the project. Motion carried unanimously. Council Member Stotts noted that creative funding will need to be sought. 8. COMMUNICATIONS. REQUESTS AND PETITIONS 9. UNFINISHED BUSINESS (a) CONSIDERATION FOR APPROVAL OF CALLING FOR SALE OF 2006 IMPROVEMENT BONDS, in _5(�) CITY COUNCIL MINUTES —JULY 25, 2006 GENERAL OBLIGATION WATER BONDS AND GENERAL OBLIGATION WASTEWATER BONDS • Ken Merrill, Finance Director, presented before the Council. Mr. Merrill requested that this item be deferred due to some recent issues that have arisen. These relate to the Denver Avenue project as well as an additional hearing that needs to be scheduled for an improvement project. Mr. Merrill also explained that within the wastewater bonds is financing for the wastewater plant. Concerns have been raised regarding the fact that architectural plans have not been received as of yet on that project. John Rodeberg also noted that issues have come up with the developer on Denver Avenue. Jessica Cook, Ehlers & Associates, presented before the Council. She noted that at the August 8, 2006, City Council meeting a request will be made to the Council to call for the sale of the bonds with awarding of the bonds occurring in September. Ms. Cook further explained that several improvement bonds are being combined with the sale of these bond issues and statutorily require a hearing. Motion by Peterson, second by Arndt, to defer this item to the August 8, 2006, City Council meeting. Motion carried unanimously. Motion by Stotts, second by Peterson, to set a public hearing for Letting No. 5, Project No. 06 -05 at 6:00 p.m. This item will be included with the upcoming bond sale. Motion carried unanimously. 1111101 MANN, 1fffZM c1 (a) CONSIDERATION OF ORDINANCE NO. 06 -0440 — AN ORDINANCE ESTABLISHING A PROCEDURE FOR ENFORCING ADMINISTRATIVE PENALTIES FOR CERTAIN PETTY MISDEMEANORS AND MUNICIPAL CODE VIOLATIONS (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR AUGUST 8, 2006) City Attorney Marc Sebora presented before the Council. Mr. Sebora stated that similar types of • administrative penalty programs are currently in place by several cities throughout the state in an effort to generate additional revenues. This program would allow the City to collect higher fees, however allow a violator to pay a lower fine and keep a traffic ticket off of his or her driving record. Mr. Sebora distributed a table of suggested offenses that could be implemented into this program with suggested fine amounts. Ultimately, the officer issuing a citation needs to determine what type of citation to issue — whether a regular citation or an administrative penalty citation. Chief Hatten noted that department guidelines would need to be established to address this. Mr. Sebora noted another item to consider is the amount it will cost to administer this program compared to the amount of revenue it will generate. Chief Hatten offered a couple of different ways to attempt to configure the amount of revenue generated from this type of program. Chief Hatten suggested having the administrative fines be collected through the City Center as opposed to the police department collecting the administrative fines. Ken Merrill, Finance Director, stated that he would need to visit with the City Attorney and Police Chief in regard to procedure. Council Member Stotts suggested putting these types of fines into a public safety fund, with Council using their discretion as to which projects it should be spent on. Discussion was held regarding procedure. Council Member Stotts noted that individuals that he has spoken to are in favor of the idea because it does not go on the violator's record and the fine is reduced. Chief Hatten noted that administrative penalty records are kept locally and not part of the statewide system. Motion by Arndt, second by Stotts, to waive first reading and set second reading of Ordinance No. 06 -0440 for August 8, 2006. At the second reading an effective date, as well as a dedicated fund, will be identified. Motion carried unanimously. Chief Hatten noted that National Night Out is set for August 1, 2006, from 6:00 — 9:00 p.m. He presented a map indicating the various neighborhood parties that will be held. • (b) CONSIDERATION OF ORDINANCE NO. 06-0442 — AN ORDINANCE AMENDING CHAPTER 120 OF THE CURRENT PAWNBROKERS ORDINANCE (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR AUGUST 8, 2006) 5�0.� CITY COUNCIL MINUTES — JULY 25, 2006 Chief Dan Hatten addressed the Council. Chief Hatten presented a revised pawn shop ordinance for the • Council to consider. This ordinance allows automation of the pawning system which can track stolen items more efficiently. There are initial costs to the police department and pawn shop owners for this system to be put in place. However, after it is in place, a $1.50 surcharge will be put on all transactions which will help recoup these costs over time. Dennis Johnson, Security Coin & Pawn Shop, presented before the Council. Mr. Johnson voiced some concerns regarding fairness and costs. He explained that there are other stores that conduct business similar to his pawn shop, however are not regulated like his store. Mr. Johnson stated that the store he has in Willmar is part of an automated system. He is willing to be part of Hutchinson's project, however asked that it not be implemented until February 1, 2007. Chief Hatten was in favor of allowing the Johnsons some extra time with regard to implementation, however requested that the revised ordinance be adopted and complied with by any new applicants. Chief Hatten also distributed some revised pages of the proposed ordinance which will be presented as a complete ordinance in the next Council packet. Motion by Peterson, second by Stotts, to waive first reading and set second reading of Ordinance No. 06- 0442 for Aupust 8, 2006, with implementation for the Johnson's going into effect February 1, 2007. Motion carried unanimously. (c) DISCUSSION OF LOCAL SALES TAX Mayor Cook requested the establishment of a community committee to review use of local sales tax and projects that a local sales tax could fund. Ken Merrill, Finance Director, shared information that approximately 13 cities currently use a local sales tax and approximately six others have received authorization this year to implement using a local sales tax. • Projects funded by local sales tax in these communities include community centers, street improvements, riverfront revitalization, airport renovation, water /wastewater treatment facilities, libraries, fire halls, and recreation uses. Mayor Cook noted that anyone interested in serving on such a committee should contact the City Center or a Council Member. (d) CONSIDERATION OF ITEMS REGARDING DENVER AVENUE SE EXTENSION PROJECT (LETTING NO. 3, PROJECT NO. 06 -03) - CONSULTING AGREEMENT AMENDMENT WITH SEH CONSULTING REGARDING DENVER AVENUE SE DESIGN SERVICES (CONTINUED FROM EARLIER MEETING) - CONSULTING AGREEMENT WITH SEH CONSULTING REGARDING DENVER AVENUE SE CONSTRUCTION SERVICES Kent Exner, City Engineer, presented before the Council. Mr. Exner explained that staff has met with the consultant regarding the fees imposed for the Denver Avenue project. Due to some changes with the project along the way, the consulting fees also changed. SEH Consulting has explained the reasons for the adjustments in the fees, which are mainly due to the scope of the project changing and the starting and stopping of it. Motion by Peterson, second by Stotts, to approve consulting agreement amendment with SEH Consulting regarding Denver Avenue SE design services. Motion carried unanimously. Kent Exner, City Engineer, presented before the Council. This consulting agreement is for staking of the Denver Avenue project, however staff will complete other standard work. No payment will be made unless work is actually completed by the consultant. Motion by Peterson, second by Stotts, to approve consulting agreement with SEH Consulting for construction services on Denver Avenue, with a not to exceed amount of $26,485. Motion carried unanimously. • (e) FOCILIDE CAON SYSTEM ( OVAL OF T S PR DER N NO . 506 -15) STEWATER TREATMENT 5ca� CITY COUNCIL MINUTES— JULY 25, 2006 John Rodeberg, Public Works Director, presented before the Council. Mr. Rodeberg explained that this • system is a Supervisory Control and Data Acquisition system that links all water /wastewater systems to read together. This is an automated system that can be remotely accessed and maintained by one operator. The total amount for this system totals $628,200 and will be phased in over the next several years. Motion by Stotts, second by Peterson, to approve Task Order No. 5 — Wastewater Treatment Facility SCADA System. Motion carried unanimously. (f) CONSIDERATION FOR APPROVAL OF PHOSPHORUS GRANT APPLICATION RESOLUTION John Rodeberg, Public Works Director, presented before the Council. Mr. Rodeberg explained that this grant could potentially fund up to $500,000 of the cost of the proposed Wastewater Treatment Facility membrane treatment improvements proposed for next year. Mr. Rodeberg noted that in the body of the resolution, the name of Ken Merrill needs to be changed to Gary Plotz. Motion by Arndt, second by Haugen, to approve Resolution No. 13005, application for phosphorus grant. Motion carried unanimously. (g) CONSIDERATION FOR APPROVAL OF SETTING COUNCIL BUDGET WORKSHOP FOR AUGUST 15, 2006, AT 3:00 P.M. AND PUBLIC HEARING FOR AUGUST 22, 2006, AT 6:00 P.M. Motion by Stotts, second by Arndt, to approve setting Council Budget workshop for August 15, 2006, at 3:30 p.m. and public hearing for August 22, 2006, at the regular City Council meeting at 6:00 p.m. The purpose of the public hearing is to allow the public to provide input on the proposed preliminary budget. Motion carried unanimously. 11. MISCELLANEOUS (a) COMMUNICATIONS 1. TRANSIENT MERCHANT APPLICATION FOR T.A.P. ENTERPRISES FOR A TOOL SALE AT THE RECREATION CENTER ON AUGUST 4, 2006 Motion by Arndt, second by Haugen, to approve this transient merchant application. Motion carried unanimously. Jim Haugen — Council Member Haugen thanked John Rodeberg and his staff for all of the work and thorough explanation of the underpass project. Bill Arndt — Council Member Arndt also thanked John Rodeberg for all of his work on the underpass project. Council Member Arndt also commented on the amount of people that attended the Allis Chalmers event at the Karg Farm over the weekend. The event brought in approximately 5000 people from over 24 different states. Casey Stotts — Council Member Stotts commended Claire Lenz on the work that she has done on the underpass project. Although he and she may not agree, he noted that this is the process of government. Ken Merrill — Mr. Merrill noted that the HUC web page is going to be featured on a national web site in the next couple of weeks. He commended staff member Jackie Penke on all of the work she has done on this. John Rodeberg — Mr. Rodeberg commented on the Hwy 7 project. 12. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Motion by Peterson, second by Stotts, to approve claims, appropriations, and contract payments. Motion carried unanimously. • 13. ADJOURN Motion by Arndt, second by Peterson, to adjourn at 8:40 p.m. Motion carried unanimously. 40A • City of Hutchinson Public Arts Commission May 16, 2006 Meeting, 4 PM All Committee Members were present: Tom Wirt, Mayor Steve Cook, Terry Kempfert, Joann Wilmert, and LuAnn Drazkowski. Ex- official member, Dolf Moon joined the meeting inprocess. The meeting was called to order by Tom Wirt. Tom welcomed the Commission Members and shared comments about the committee having an annual structural meeting. After several months/meeting, officer roles will be opened for discussion. Ex- official members include: Dolf Moon (Park and Rec), Mark Vallancourt (Hutchinson ChamberNisitor Bureau), Miles Seppelt (Economic Development), and Rebecca Bower (new Planning & Zoning). Mayor Steve Cook provided insight into why the Public Arts Initiative was formed. Tom handed out the City Council presentation outline as an overview of the past work done by the Public Arts Initiative task force. We reviewed the Ordinance No. 06 -0431, An Ordinance Establishing Public Arts Commission, adopted by the City Council on March 14, 2006. Discussions included: • 1. Need to find funding for maintenance /upkeep of existing public art (PA) through grants, private, policy, to avoid use of limited City funds. 2. A PA inventory list was started and should be kept current. ACTION: Tom will distribute the most recent version of the inventory list. 3. Commission needs to set standards, while not being too restrictive 4. Discussed resource information, including the McKnight Foundation literature. ACTION: Tom to acquire copies of the two publications for Terry and Joanne. ACTION: LuAn send out publication summary's prepared by Linda Remucal. 5. Opportunity to build public awareness 6. Near -term priorities of City activities include: • Little Crow Move and funding issue • Placard for memorial benches. Fund - raising potential • Reservoir fagade /scape 7. Dolf Moon provided updates on several projects/issues. They included: • Hwy 7 and Reservoir plans. $22 M landscape budget with MN Dot. • MN DOT preliminary discussions about options for Little Crow statue relocation, including potential of a plaza along the river. • South water tower logo/lettering determined • Lighting requested for the Hutchinson Brother's statues, however there is a need for support funds • Fountain in the river is impacted by future dam reshaping. Power and cabling considerations. Example of motor replacement associated to • public art and no maintenance funds reserved. (�oCC�) • Hutchinson's current Parkland Dedication Fee is low relative to similar and neighboring communities • Park/Rec have been setting up landscape to be maintenance- friendly • Park/Rec has developed a database of detailed itemizing of park trees, equipment, statues, etc. for predictive and preventative maintenance. • Landscape projects have about a 15 year life -cycle • Would like to see program to rotate art in Event Center 8. Briefly discussed funding tactics, including; adjusting the Parkland Dedication fee, establishing an Endowment reserve. 9. Next meeting invited guests will be John, Lawerance, and Miles Seppelt. 10. Next meeting's focus will be on exchanging information on what other communities with established PA programs have for police /ordinances. ACTION: Research these communities: • New Prague (Tom) • Minneapolis (Dolt) • Owatonna (LuAnn) • Excelsior (Joanne) • Eden Prairie (Joanne) • Albert Lea (LuAnn) • Maplewood (Joanne) • Shoreview (Joanne) • Duluth, plus others (Terry) • 11. Next meeting to also get update on Hwy 7 project and Little Crow statue progress. 12. Meeting adjournment. MPS Tom/Joanne U(a) t City of Hutchinson Public Arts Commission June 20, 2006 Meeting, 4 PM, City Center All Committee Members were present: Tom Wirt, Mayor Steve Cook, Terry Kempfert, Joanne Willmert, and LuAnn Drazkowski. Ex- official member, Dolf Moon present. Attending guests included; Mile Seppelt. Economic Development Director, Rebecca Bowers, Director of Building, Planning and Zoning, and Lawrence Winter, Park Resource Coordinator. The meeting was called to order by Tom Wirt. May 2006 Minutes approved. MPS Steve /Joanne Tom handed out Public Art Inventory Worksheets. Members asked to review and make ongoing updates. Comment made to synchronize with Park & Rec's data where appropriate. Discussions included: 1. Exchanged research information of other communities public art (PA) policy. Cities represented included: Eden Prairie, Bloomington, Minneapolis, Owantonna, Vancouver, WA, and Portland. OR. Discussed advantage of centralizing this information in an organized manner for future retrieval. Members asked to continue research effort to bring to the July meeting. ACTION: Organize the accumulated material (LuAnn). ACTION: Have copies made through Park & Rec office through Sharon (LuAnn). 2. General categories to include: go• Standards • Commission • Gifting process • General operating • Maintenance provisions • Funding • Retiring/obsolence • Transfer of ownership • Public works aspect 3. Point made that even with upfront criteria and specs developed, the installation needs to meet quality expectations. 4. Dolf referenced "Scope" a publication which includes the 2005 Park Survey of communities parks dedication rates. As a benchmark, Hutchinson is low and suggestion made to consider phase in increases to be comparible. 5. Need to maintain donor autonomy if that is their preference. 6. Suggestion made to review the drafted PA policy with former donors to get their feedback of useability prior to getting City Council approval. 7. Inquiry made about how Hutchinson Parks got named. Dolf responded through the "Adopt a Park" program, established in the `90's. Non - binding agreement to help development of park areas. Program highly successful and provided additional sources of funds and support for advancing the parks. Inspired friendly competition. 8. Little Crow statue needs restoration. City has the original mold if a remake is ever necessary. Will incorporate the relocation with the dam restoration effort. Funding available. 9. Bluff St and Hwy 7 reconstruction underway with decorative retaining walls and tiers. to (a)_ i a10. The EDA downtown plans have made significant improvements in appearance, connecting to Hutch's assets, and reinforced collaboration/ties with civic organizations. 11. PA Opportunities: • Miles provided background into the Econo Foods Mural project. Gained permission from Nash Finch. Seeking ways to find funding. Proposed artwork had a veterans motif, but met with some resistance because of perceived inaccurate rendition. If veteran stakholders had input into the mural design, the support and interest level might have been different. • Fagade for the reservoir • Medians on Hwy 15 • Feasibility of getting larger trees in the roadway reconstruction through a donor /dedication offering. 12. Agreed the Commissions needs to take a proactive, activist role 13. ACTION: Investigate into Ridgewater's Percent for Art (Joanne, LUAnn) Next meeting is July 18, 4 PM. Topics on the agenda include: • Further fact - finding on PA policy /procedures • Assigning categories to compose text • Updates to Inventory Worksheet August meeting- invite representative from the St. Louis Park's recent PA program launch to speak to the • Commission and guests on the subject. Meeting adjournment. MPS Luann/Joanne u c0(C�)) Memo To: Mayor and City Council Members Frmm Brad Emans, Fire Chief Date: 08/01/06 Re: Monthty Update on Activities of the Fire Department The fire department responded to 37 general alarms in the month of July. Example of a few of the calls: We responded to a person trapped in a grain bin. We were able to free the person in a short period of time, but the person succumbed to the nature of the accident We responded to a motor vehicle fatality just 20 minutes after the grain bin accident A vehicle stack a power pole, breaking k off, and allowing the power lines to dangle over the vehicle. We extricated one victim and then waded for the scene to become safe before extricating the deceased victim. • We responded mutual aid to a house explosion in Buffalo Lake with our Ladder truck and six firemen. • We responded to a residential kitchen fire in the southwest part of Hutchinson. He homeowner extinguished the fire; we assisted with Gearing the smoke from the building. The fire still did an estimated $3,000 damage. • We responded to a residential structure fire in Acoma Township, The house was struck by lightning causing the roof to bum off the second floor. The structure suffered considerable fire / water damage, however all of the family valuables were saved. The fire did an estimated $200,000 damage. • We were called to a senior housing building in the southeast part of the community where we found a sprinkler pipe started leaking and caused water damage to one unit. • We responded a commercial building in our industrial park where we found that the flinch feeder pipe to the sprinkler system had ruptured causing the entire building to flood. We assisted the property owner with the removal of the water. o)p- This is the breakdown of the calls for the month: City: Residential 3 Commercial /Industrial 4 Multi- family 5 School 1 Carton Monoxide 3 Hazardous Material 6 Vehicle 2 Rescue 1 Medical 1 Grass 1 Sky -Wam 0 Good Will 0 Mutual Aid 1 (Buffalo Lake FD) Arson 1 (Grass) Rural: Rescue 3 Grass Type 1 Medical 1 Residential 2 Farm Building 0 Hazardous Material 1 Carton Monoxide 1 Vehicle 0 Commercial/Industrial 0 Good Will 0 Arson 0 Drills / Meetings / Other Information Monthly SCBA / small tool/ pump maintenance • Annual OSHA required emergency vehicle driving test • We conducted our firefighter test to establish a hiring list of new firefighters. We put a lot of work in recruiting and we were very pleased that 17 citizens tested. It is our hope that we can hire at least 10 new people. • Fire Prevention / Public Relations • Assisted Cashwise grocery with their summer carnival • Presented information on pandemic influenza planning to the Kiwanis • Attended the Sno-Pro's annual picnic to show the members the equipment that they purchased. • Attended Hunters Ridge Church summer carnival • Attended the Dassel FD 125'" Celebration with our ladder truck. • Supplied our command trailer for the annual picnic of 3M. • Page 2 c�(a� CITY OF HUTCHINSON COUNT OF BUILDINGIPLUMBINGIMECH.ANICAL PERMITS ISSUED AND VALUATION aa- 3 • _.. _.. BALANCE ,JUNE 30*6 ASSETS UTILITY F1. -ANT - AT COST LAND 6 LAND RIGHTS DEPRECIABLE UTIi_I'IY PLANT 'TOTAL UTILITY PLANT LESS ACCUMULATED DEPRECIATION 'TOTAL ACCUMULATED DEPRECIATION CONSTRUCTION IN PROGRESS TOTAL CONSTRUCTION IN PROGRESS TOTAL. UTILITY PLANT DEPREC VALUE RESTRICTED FUNDS 6 ACCOUNTS FUTURE EXPANSION & DEVELOPMENT MEDICAL INSURANCE RATE STTABILIZATION FUND -- ELECTRIC RATE STABILIZATION FUND -GAS POND R INTEREST PAYMENT 2003 TOTAL RESTRICTED FUNDS 6 ACCOUNTS CURRENT h ACCRUED ASSETS CASI4 IN BANK ACCOUNTS RECEIVABLE INVENTORIES PREPAID INSURANCE PREPAID GAS EXPENSE DEFERRED ENERGY COST - MISO CLEARING ACCOUNT SALES TAX RECEIVABLE TOTAL CURRENT & ACCRUED ASSETS DEFERRED CHARGE BOND DISCOUNT 2003 TOTAL DEFERRED CHARGE TOTAL. ASSETS P v * * * * TOTAL 4 * * K 2,6:,3,391.60 102,794,441.91 105,447,833.59 (33,160,059.04) .(33,160,059.04) 967,546.85 967,546.85 73,255,321.40 659,772.46 100,000.00 673,826.62 477,186.63 669,830.83 2,580,616.54 2,771,699.32 3,389,376.82 1,211,515.42 i54,883.24 838.70 22,430.06 323.92 15,296.39 7,566,370.87 579,924.25 579,924.25 63,982,333.06 C 0 7/19/2006 HUl'CHINSON Ul'ILI 6 COMMISSION DALANCEOFET JUNE_ 30,'2006 MUNICIPAL EQUITY 6 LIABILITIES MUNICIPAL EQUITY MUNICIPAL EQUI'f1' UNAPPROPRIATED RETAINED EARNINGS TOTAL "MUNICIPAL EQUITY LONG TERM LIABILITIES -NE1 OF CURRENT MATURITIES 2003 DOND13 TONAL. LONG TERM LIABILITIES CONSIR CONTRACTS h ACCTS FAY RETAIN ACCRUED EXPENSES - RE'TAINAGE TOTAL CONSTRUCTION G ACCTS FAY CURRENT 6 ACCRUED LIABILLITIES ACCOUNTS PAYABLE ACCOUNTS PAYABLE - M]:SO INTEREST ACCRUED ACCRUED VACATION PAYABLE ACCRUED MEDICAL FUND ACCRUED REC PAYMENT ACCRUED SEVERANCE CUSTOMER DEPOSITS OTHER CURRENT 6 ACCRUED LIABILITIES TOTAL CURRENT A ACCRUED LIAR 'TOTAL MUNICIPAL EQUITY h LIAR �1 FACE * * * * 'TOTAL % * * * 50,733,782.03 1,655,202.29 52,368,984.32 28,780,000.00 28,780,000.00 107,671.74 1.07,671.74 2,138,047.36 237,505.76 98,492.21 214,150.52 (137,392.03) 25,644.17 20,860.07 104,120.00 4,148.94 2,705,577.00 83,982,233.06 • • Sl'ATEME:NT OF INC EXPENSES JUNE 3 *006 . PREV7: CIUS CURRENT BUDGETED BUDGET ANNUAL. YEAR TO DATE YEAk TO DATE YEAR TO DATE DEVIATION DUDGE_'T INCOME STATEMENT OPERATING REVENUE SALES - ELECTRIC ENERGY 10,129,752.90 12,866,713.35 12,738,786.00 127,927,35 27,103,800.00 SALES FOR RESALE 1,500.00 110,467.07 1.05,000.00 5,467,87 500,000.00 NET INCOME FROM 07HER SOURCES 77,102.16 131,043.98 92,500.00 38,543.98 585,000.00 SECURITY LIGHTS 5,438.00 5,430,00 ;,500.00 (70.00) 11.1000.00 POLE RENTAL 1,656,50 933.25 11000.00 (66.75) 2,000.00 SALES - GAS 6,296,284.81 6,976,881.70 6,901,639.14 75,242.56 12,780,813.23 NEW ULM TRANSPORTATION 330,243.28 328,839.26 408,333.34 (79,494,08) 816,666.67 TRANSPORTATION - ELECTRIC DIVISION .00 550,004.00 550,000.00 4.00 1,100,000.00 TOTAL OPERATING REVF_NI.IE 1'7, 441.,9137,55 20,970,3i3,41 20,802,758.48 1.6'7,554,93 42,499,779.90 OPERATING EXPENSES PRODUCTION OPERATION 820,272.82 1.,179,807.45 1,409,674.61 229,867.16 4,019,205.10 PRODUCTION MAINTENANCE 183,907,07 182,755. 32 211,500.00 28,784.68 423,000,.00 PURCHASED POWER 6.552,5.]7.89 7,989,323.50 '7,376,838.21 (612,465.29) 15,695,443.00 OTHER POWER 13UPPLY 268,032,20 168,094.26 198,500.00 30,405.74 397,000.00 TRANSMISSION OPERATION 57,71 595.60 1,000.00 404.40 2,000.00 TRANSMISSION MAINTENANCE 5,905.46 51079.01 31000.00 (2,079.01) 6,000.00 ELECTRIC DISTRIBUTION OPERATION 1.21,477.32 158,935.28 173,750.00 14,814.72 347,500.00 F_LECTRIC ISTRIBUTION MAINTENAiVCE 99,223.1.5 78,048.37 83,750.00 5,701.63 167,500.00 PURCHASED GAS EXPENSE 5,124, 505.37 5,499,340,97 5,819,713.49 320,372 52 10,777,247.21 GAS TRANSMISSION OPERATION 37,117.39 36,166.11 42,500.00 6,333.89 85,000.00 GAS TRANSMISSION MAINTENANCE 4,297,32 4,210.134 23,500.00 19,2289,66 47,000.00 GAS DISTRIBUTION OPERATION 155,130.10 .193,505.01 156,714.50 (36,790.5i) 313,429.00 GAS DISTRIBUTION MAINTENANCE 49,742.14 42,908.52 64,750.00 21,641.48 129,500.00 CUSTOMER ACCOUNTIW; E COLLETCTIONS 146„ 720.61 161,354.64 148,861.50 (12,493.14) 297,723.00 SALES EXPENSE 17,726.28 108,066.97 128,752.38 20,685.41 257,504.75 ADMINISTRATIVE A GENERAL EXP'ENSiES 1,003,756.57 1.,117,980.14 1,066,006.30 (51,873.64) 2,132,013.00 DEPRECIATION 1,476,i99.1,4 5,523,952.00 1,523,948.50 (3.50) 3,047,897.00 TOTAL OPERATING EXPENSES 16,066,246.54 18,449,983.49 18,432,779.69 (17,203.80) 39,144,962.14 OPERATING INCOME 1.,375,741.0i 2,520,329.92 2,369,978.79 150,351.13 4,354,317.76 OTHER INCOME OTHER - NET 64,788.29 34,989.99 25,000.00 9,989.99 50,000.00 INTEREST INCOME 33,943.02 83,251.51 32,500.00 50,751.51 65,000.00 MISC INCOME 1.,820.79 28,691.67 9,150.00 19,541.67 18,300.00 GAIN ON DISPOSAL - GAS .00 129,742.95 .00 129,742.95 .00 LOSS ON DISPOSAL - ELECTRIC .00 (10,895.94) .00 (10,895.94) .00 TOTAL OTHER INCOME 100,552.iO 265,700.18 66,650.00 199,130.18 133,300.00 OTHER EXPENSES MISC EXPENSES 62,302.95 35,277.84 54,000.00 18,722.16 1081.000.00 INTEREST EXPENSE 595,898.40 584,142.47 579,825.63 (4,316.84) 1,159,651.26 1'01'AL OTHER EXPENSES 654,201.35 619,420.31 633,825.63 14,405.32 1,267,651.26 CONTRIBUTION TO CITY 487,075.00 511,487.50 511,087.50 (400.00) 1,022,175.00 TOTAL CONTRIBUTION TO CITY 487,075.00 "511,487.50 511,087.50 (400.00) i,022,175.00 NON - OPERATING INCOME (1,040,7 2.4.25) (865,127.63) (1,078,263.13) 213,135.50 (2,156,526.26) :lEl INCOME 335,016.'76 1,655,202.27 11291,715.66 363,486.63 2,197,791.50 • RESOLUTION NO. 13006 RESOLUTION DESIGNATING THE LOCATION OF POLLING PLACE FOR ALL CITY PRECINCTS AND APPOINTING JUDGES FOR THE 2006 CITY OF HUTCHINSON AND STATE PRIMARY AND GENERAL ELECTIONS WHEREAS, Chapter 204B, Section 204B.16, Subd. 1 and Section 204B.21, Subd. 2 of the Laws of Minnesota states that the governing body of any municipality, by resolution adopted prior to the giving of notice of the election, may designate the location of polling place of all precincts (one, two, and three) and naming of judges for the City and School District Election. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: That the polling place to be used during the 2006 Election for all precincts will be in the Recreation Center located at 900 Harrington Street S.W., Hutchinson, Minnesota. That the Election Judges are hereby appointed in accordance with the attached list. Adopted by the City Council this 8`s day of August, 2006. ATTEST: Gary D. Plotz, City Administrator 0 Steven W. Cook, Mayor ('0(10 ) ELECTION JUDGES CITY OF HUTCHINSON • CITY, PRIMARY AND GENERAL ELECTIONS 2006 r1 LJ • EILEEN BERWALD MORRIS BJURLIN ELAINE BLACK DOLORES BRUNNER HARRIET BURICH DORIS DAGGETT MAXINE ENGWALL GAIL FRANSEN ROMAN HAAS ANNE HAAS JOHN HASSINGER JEAN HASSINGER ROXANNEJENSEN DORI JOHNSON DARLEEN KNIGGE *MARK LEWANDOWSKI MARY MCRAITH *DEETTA NELSON CATHY PRELLWITZ HARRIET SCHMIDT *DENNIS SCHROEDER *ANN SCHUMANN PEARLSEALE BILL WEGNER PHYLLIS WESELOH PATSY WRIGHT FRANK FAY PAT DODGE RUSS GOLDSTEIN HAROLD GRAMS ELIZABETH KURTH NANCY REDETZKE *denotes headjudge All judges are appointed as health care facility judges. 86 MCLEOD AVENUE NE 527 JUUL ROAD 9502 ND AVENUE SW 968 HAYDEN AVENUE 583 CARLISLE STREET NE 978 ROLLING GREENS LANE 506 JUERGENS ROAD 955 LAKEWOOD DRIVE SW 113 MARK DRIVE NE 113 MARK DRIVE NE 5462 ND AVENUE SW 5462 N' AVENUE SW 1239 BRADFORD STREET SE 1270 ROLLING OAKS LN 832 GREENSVIEW COURT NW 1357 WESTWOOD ROAD 600 TYLER STREET SW 815 COLORADO STREET NW 640 CALIFORNIA STREET 45 SHERWOOD CIRCLE 1074 PRAIRIE VIEW DRIVE SW 129 MORNINGSIDE DRIVE 569 MILLER AVENUE 125 11' AVENUE NE 1109 LEWIS AVENUE 1300 SHERWOOD STREET SE 1221 GOLF VIEW COURT NW 213 NORTH HIGH DRIVE #202 1680 SOUTH GRADE ROAD SW 540 LINCOLN AVENU SW 1165 CAROLINA AVENUE NW 411 935 2ND AVENUE SW RESOLUTION NO. 13009 • CITY OF HUTCHINSON RESOLUTION FOR PURCHASE The Hutchinson City Council authorizes the purchase of the following: ITEM COST PURPOSE DEPT. BUDGET VENDOR Seal Coat Project $42,959 Street Maintenance Street (1) Pearson Bros Inc Fiber connection 15,460 High speed computer IT Yes Steile Construction (events center- connection Capital Ridgewater college) fund g&l) 2006 Improv Bonds letting #5 NWThe following items were authorized due to an emergency need: ITEM COST PURPOSE DEPT. BUDGET VENDOR Unleaded gasoline 8,496 gallons $23,636.72 City, County, State use HATS Yes Schmeling Oil Co Date Approved: August 8, 2006 • Motion Made By: Seconded By: Resolution submitted for Council action Kenneth B. Merrill by: Finance Director (0Cb)'�' • • RESOLUTION NO. 13010 RELEASING PLEDGED SECURITIES FROM HOME STATE BANK WHEREAS, Home State Bank a city depository, has requested the following security be added under the collateral agreement with the City of Hutchinson: FHLMC 7% 31343EMS6 $1,000,000 04 01 2011 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT the City Finance Director be authorized to accept said securities. Adopted by the City Council this 8th day of August 2006. ATTEST: Gary D. Plctz City Administrator Steven W. Cook Mayor V-03 0 )007 MEMORANDUM POLICE / EMERGENCY MANAGEMENT SERVICES TO: Mayor and City Council FROM: Daniel Hatten, Chief of Police DATE: August 2, 2006 RE: Administrative Citations The purpose of this memo is to request the second reading and adoption of the Administrative Citation Ordinance be tabled until such time when the following items are addressed: 1. A list of specific City Ordinances and State Statutes that would qualify for this program is established. 2. The fee scheduleffine amount per offense is established. 3. The account in which fees will be placed is established. 4. The start date is established. ��hJ� PUBLICATION NO. 0 ORDINANCE NO. 06-0441 AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF HUTCHINSON FOR TWO LOTS TO BE REZONED FROM LC TO R2 LOCATED AT 255 AND 287 HWY 7 EAST THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS: WHEREAS, the following described real property is hereby rezoned from UC (Industrial/Commercial) to R2 (Medium Density Residential) as requested by the property owners: LEGAL DESCRIP'T'ION: The Westerly 55 feet of all that portion of Lot One (1) in Block Three (3) in the Townsite of Hutchinson North Half, lying Northerly of the Hutchinson - Silver Lake Road, excepting therefrom all Railroad right-of- -way. The East line of said tract is parallel to and distant 55 feet Easterly from the Westerly boundary line of said Lot 1 in said Block 3. All that portion of Lot One (1) in Block Three (3) Townsite of Hutchinson, North Half lying north of the Hutchinson - Silver Lake Road but saving and excepting therefrom the Westerly 55 feet thereof and also saving and excepting therefrom the right-of-way of the Minnesota Western • Railway. The west boundary line of said tract is parallel to and distant 55 feet easterly from the west boundary line of said Lot 1. AND ALSO That part of Lots One(1) and Two (2) in Block Three (3) in the Townsite of Hutchinson , North Half described as follows, to-wit: Commencing at the northeast comer of the Southeast Quarter of Section 31, Township 117 North, Range 2 thence south along the east line of said Southeast Quarter a distance of 970.00; feet thence southwesterly 268.19 feet along a line which prolonged southwesterly intersects the southeasterly line of said Lot 2 a distance of 50.00 feet westerly of said east line, as measured at a right angle to said east line, to the point ofbeg�nnm8 of the land to be described; thence continuing southwesterly, along said southwesterly pro longation, 45.39 feet to said intersection with the southeasterly line of Lot 2; thence south, parallel with said east line, to the intersection with the northerly right of way line of State Highway No. 7; thence easterly, along said right of way line, to the intersection with said east line; thence north along said east line, to a point 1241.04 feet south of said northeast comer of the Southeast Quarter, thence westerly, to the point of beginning. ALSO That part of Lot Two (2) in Block Three (3) in the Townsite of Hutchinson, North Half described as follows, to-wit: Commencing at the northeast comer of the Southeast Quarter of Section 31, Township 117 North, Range 29 West; thence south along the east line of said Southeast Quarter a distance of 970.00 feet; thence southwesterly 268.19 feet along a line which prolonged southwesterly intersects the southeasterly line of said Lot 2 a distance of 50.00 feet westerly of said east line; thence continuing southwesterly along said southwesterly prolongation, 45.39 feet to said intersection with the southeasterly line of said Lot 2; thence southwesterly, along said southeasterly line of Lot 2, a distance of 52.03 feet to a point 274.20 feet northeasterly of the southeasterly comer of said Lot 2 as measured along said southeasterly line,; thence northwesterly, at a right angle to said southeasterly line, a distance of 52.00 feet; thence northeasterly parallel with said southeasterly line, a distance 77.54 feet; thence easterly 36.63 feet to the point of beginning. Ordinance No. 06 -0441 255 and 287 Hwy 7 East August 8, 2006 Page 2 WHEREAS, the City Planning Commission and City Council have considered the effects of rezoning this piece of property, WHEREAS, there are certain parameters that will make this rezoning appropriate for this area; THEREFORE; the City hereby officially rezones this property to R2 and it shall take effect upon publication of this ordinance; Adopted by the City Council this 8"' day of August, 2006. ATTEST: Gary D. Plotz City Administrator is • Steven W. Cook Mayor ('(�)5 • • YJ Open in New Window CHAPTER ', 120: PAS Section Hutchinson, MN Code of Ordinances LAWONS DKERS' CHAPTER 120: PAWNBROKERS General Provisions 120.01 Purpose 120.02 Definitions Licensing 120.15 License required; exemption 120.16 Ineligible persons 120.17 Ineligible places 120.18 License application 120.19 Fees 120.20 Bond required 120.21 Licenseissuance 120.22 License suspension or revocation Rules and Regulations 120.35 Licensee responsibility; conduct 120.36 License display required 120.37 Records Required 120.38 Inspection of records 120.39 120.40 120.41 120.42 120.43 Property received; receipts Daily Reports to Police Department sale or redemption/Order to Hold Property Police restrictions on Inspection of items Gambling prohibited 1 120.44 Storage; oversized items 120.45 Off -site sales and storage 120.46 Restrictions on weapons 120.47 Redemption Period 120.48 Holding Period 120.49 Label Required 120.50 Prohibited Acts 120.51 Business at only one place 120.52 Effective Date GENERAL PROVISIONS § 120.01 PURPOSE. (A) The City Council finds that pawnbrokers potentially provide an opportunity for the commission and concealment of crimes. These businesses have the ability to receive • and transfer stolen property easily and quickly. The City Council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers. (B) The purpose of this chapter is to prevent pawn broking businesses from being used as facilities for commission of crimes and to ensure that these businesses comply with basic consumer protection standards, thereby protecting the public health, safety and general welfare of the citizens of the city. (C) To help the police department better regulate current and future pawn businesses, decrease and stabilize costs associated with the regulation of the pawn industry, and increase identification of criminal activities in the pawn industry through the timely collection and sharing of pawn transaction information, this chapter also implements and establishes the required use of the Automated Pawn System (APS). § 120.02 DEFINITIONS. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. . MINOR. Any natural person under the age of 18 years. 2 (o (�b) OVERSIZED ITEMS. Large items such as cars, boats and other motorized vehicles and motorized equipment. PAWNBROKER. Any natural person, partnership or corporation, either as principal, or agent, or employee thereof, who loans money on deposit or pledge of personal property or other valuable thing; who deals in the purchasing of personal property or other valuable thing on condition of selling the same back again at a stipulated price; or who loans money secured by chattel mortgage on personal property, taking possession of the property or any part thereof so mortgaged. To the extent that a PAWNBROKER business includes buying personal property previously used, rented or leased, the provisions of this chapter shall be applicable. Any bank, savings and loan association or credit union shall not be deemed a PAWNBROKER for purposes of this chapter. PERSON. One or more natural persons; a partnership, including a limited partnership; a corporation, including a foreign, domestic or nonprofit corporation; a trust; a political subdivision of the state; or any other business organization. SECONDHAND ITEM. Tangible personal property, excluding motor vehicles, which has been previously used, rented, owned or leased. REPORTABLE TRANSACTION. (a) Every transaction conducted by a pawnbroker in which merchandise is received through a pawn, purchase, consignment or trade, or in which a pawn is renewed, extended or redeemed, or for which a unique transaction number or identifier is generated by their point -of -sale software, or an item is confiscated • by law enforcement is reportable except: (1) The bulk purchase or consignment of new or used merchandise from a merchant, manufacturer or wholesaler having an established permanent place of business, and the retail sale of said merchandise, provided the pawnbroker must maintain a record of such purchase or consignment which describes each item, and must mark each item in a manner which relates it to that transaction record. (2) Retail and wholesale sales of merchandise originally received by pawn or purchase, and for which applicable hold and/or redemption periods have expired. BILLABLE TRANSACTION. Every reportable transaction conducted by a pawnbroker is a billable transaction except renewals, redemptions or extensions of existing pawns on items previously reported and continuously in the licensee's possession, voided transactions, and confiscations. LICENSE FEES. (a) The annual license fees for licenses under this chapter shall be: (b) The billable transaction license fee shall reflect the cost of processing transactions and other related regulatory expenses as determined by the city • council, and shall be reviewed and adjusted, if necessary, annually. Licensees 3 shall be notified in writing thirty (30) days before any adjustment is • implemented. (c) Billable transaction fees shall be billed monthly and are due and payable within thirty (30) days. Failure to do so is a violation of this chapter. LICENSING § 120.15 LICENSE REQUIRED; EXEMPTION. (A) License required No person shall engage in the trade or business of pawnbroker within the city unless that person is currently licensed under this chapter. (B) Exceptions to license requirement. A person who holds a motor vehicle dealer license is exempt from the terms of this chapter with respect to motor vehicles. ('89 Code, § 6.41) (Ord. 95 -162, passed 2- 27 -96) Penalty, see $ 10.99 § 120.16 INELIGIBLE PERSONS. • The following are not eligible for licensure under this chapter: (A) Anyone not a citizen of the United States or a resident alien; (B) A minor at the time the application is filed; (C) Anyone who has been convicted of any crime directly related to the licensed occupation and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of pawnbroker or precious metal dealer under M.S. § 364.03(3), as it may be amended from time to time, or a person not of good moral character and repute; (D) Anyone who holds a liquor license; (E) Anyone who, in the sole judgment of the City Council, is not the real party in interest or beneficial owner of the business operated under the license; (F) Anyone who has had a pawnbroker license revoked anywhere within five years of the license application; or (G) In the case of an individual, anyone who is not a resident of the county; in the case of a partnership, the managing partner is not a resident of the county; or in the case of a corporation, the manager is not a resident of the county. 4 • (1) The required residency must be established by the time the license is issued and maintained throughout the existence of the license and all renewals. (2) The time for establishing residency may, for good cause, be extended by the Council. ('89 Code, § 6.41) (Ord. 95 -162, passed 2- 27 -96) § 120.17 INELIGIBLE PLACES. The following places are not eligible for licensure under this chapter. (A) No license shall be issued for any place or any business ineligible for a license under city ordinance or state law. (B) No license shall be issued for a place or business, which holds a liquor license. (C) No license shall be granted for operation on any premises on which taxes, assessments or other financial claims of the city or other government agency are delinquent and unpaid. ('89 Code, § 6.41) (Ord. 95 -162, passed 2- 27 -96) 0 § 120.18 LICENSE APPLICATION. (A) In addition to any other information required by any other government agency, every application for a license under this chapter shall be made on a form supplied by the city, shall be verified and shall contain not only the following information, but other information as the city may reasonably require: (1) Representations as to the applicant's character; (2) The business in connection with which the proposed license will operate; (3) Whether the applicant is the owner and operator of the business and if not, who is; (4) Whether the applicant has ever used or been known by a name other than his or her true name, and if so, what was the name, or names, and information concerning dates and places where used; (5) Whether the applicant is married or single. If married, the true name, place and date of birth and street address of the applicant's spouse; (6) Street address at which the applicant and spouse have lived during the preceding ten years; • (7) Kind, name and location of every business or occupation the applicant has been engaged in during the preceding ten years; 5 (8) Names and addresses of the applicant's and spouse's employers and partners, if any, for the preceding ten years; (9) Whether the applicant or spouse has ever been convicted of a violation of any state law or local ordinance, other than a non - alcohol related traffic offense. If so, the applicant shall furnish information as to the time, place and offense for which convictions were had; (10) Whether the applicant or spouse has ever been engaged as an employee or in operating a pawnshop or other business of a similar nature. If so, the applicant shall furnish information as to the time, place and length of time; (11) Whether the applicant has ever been in military service. If so, the applicant shall, upon request, document all discharges; (12) If the applicant is a partnership, the name and address of all partners and all information concerning each partner as is required of a single applicant as above. A managing partner, or partners, shall be designated. The interest of each partner or partners in the business shall be submitted with the application and, if the partnership is required to file a certificate as to trade name under the provisions of M.S. Chapter 333, as it may be amended from time to time, a copy of the certificate certified by the district court administrator shall be attached to the application; (13) If the applicant is a corporation or other organization, the applicant shall submit the following: • (a) Name, and if incorporated, the state of incorporation; (b) A true copy of the certificate of incorporation, articles of incorporation or association agreements; (c) The name of the manager or proprietor or other agent in charge of, or to be in charge of, the premises to be licensed, giving all information about that person as is required in the case of a single applicant; (d) A list of all persons who, singly or together with their spouses, own or control an interest in the corporation or association in excess of 5% or who are officers of the corporation or association, together with their addresses and all information as is required for a single applicant. (14) A list of responsible persons, including the names of owners, managers and assistant managers, who may be notified or contacted by state or city employees in case of emergency; (15) Whether the applicant holds a current pawnbroker license from any other governmental unit and whether the applicant is licensed under M.S. §§ 471.924 or 325F.731 - 325.744, as it may be amended from time to time; (16) Whether the applicant has ever been denied a pawnbroker license from any • other governmental unit; E (n(6) �, (17) The location of the business premises; • (18) The legal description of the premises to be licensed, including a map of the area for which the license is sought, showing dimensions, location of building, street access and parking facilities; (19) Whether all real estate and personal property taxes that are due and payable for the premises to be licensed have been paid, and if not paid, the years and amounts that are unpaid; and (20) Other information that the city deems appropriate. (B) Any pawnshop conducting business within the city limits on January 2, 1996 shall not be required to submit the application otherwise mandated by this section. In all other respects, any such pawnshop shall comply with this chapter. (C) No person shall make a false statement or material omission in a license application or investigation. Any false statement or material omission shall be grounds for denial, suspension or revocation of a license. (D) Each licensee shall have the continuing duty to properly notify the City Administrator of any change in the information or facts required to be furnished on the application for a license. This duty shall continue throughout the period of the license. Failure to comply with this section shall constitute cause for revocation or suspension of the license. • (E) The application for the renewal of any existing license shall be made at least 90 days prior to the date of the expiration of the license and shall be made on the form, which the Council provides. ('89 Code, § 6.41) (Ord. 95 -162, passed 2- 27 -96) Penalty, see 6 10.99 § 120.19 FEES. (A) Every applicant for a license shall pay to the city the investigation fee specified by the city. This fee shall be for the purpose of conducting a preliminary background and financial investigation of the applicant. If the Council believes that the public interest so warrants, it may require a similar investigation at the time of renewal of any license. If an investigation is ordered by the City Council at the time of license renewal, the applicant shall pay the fee specified above, except that the fee shall be the smaller of the stated dollar amount or the actual cost of the investigation. There shall be no refund of the investigation fee for any person after the investigation has begun. (B) The annual fees for a pawnshop license shall be established by the City Council by ordinance. 7 (.Ocb� (C) Each license shall expire on December 31 of the year in which it is issued. Fees • for licenses issued during the license year shall be pro -rated according to the number of months remaining in the year. For this purpose an unexpired fraction of a month shall be counted as a whole month, which shall have elapsed. (D) No refund of any fee shall be made except as authorized by the City Council. ('89 Code, § 6.41) (Ord. 95 -162, passed 2- 27 -96) § 120.20 BOND REQUIRED. At the time of filing an application for a license, the applicant shall file a bond in the amount of $5,000 with the City Administrator. The City Attorney thereon, must approve the bond, with a duly licensed surety company as surety as to form. The bond must be conditioned that the licensee shall observe the ordinances of the city, in relation to the business of pawnbroker, and that the ceensee will . .,t fer and deliver- to an pefseft le ..n entitled there r4iele hi 1. h • to 4h fth ..g....� ... o- a. i���iirrczcS-�idnrorrrixv�r"mv'° " w' "`mv- i'r'�nvmc�i�Sw58ioi�vnrav licensee e........ ibfeker or in lieu theree f the I:eensee shall pay the ..e.... ,. per-sons th reasonable value 4hpfee) all laws in relation to pawnbrokers, and will conduct business in conformity thereto, and that the principal will account for and deliver to any person legally entitled any goods which have come into the principal's hand through the principal's business as a pawnbroker, or in lieu thereof, will pay the reasonable value in the money to the person. The bond shall contain a provision that no bond may be cancelled except upon thirty (30) days written notice to the city, which shall be served upon the licensing authority. § 120.21 LICENSE ISSUANCE. (A) No license shall be issued until the Police Department has conducted an investigation of the representations set forth in the application, the applicant's moral character and the applicant's financial status. All applicants must cooperate with this investigation. (B) No license shall be issued until the Council has held a public hearing in the manner as the Council may direct. At the public hearing all persons interested in the matter shall be heard, and the hearing may be adjourned from time to time. No hearing shall be required for a renewal of a license, but the Council may, in its sole discretion, hold a hearing. (C) After investigation and hearing, the Council shall, in its discretion, grant or deny the application. 0 91 • (D) Each license shall be issued only to the applicant and for the premises described in the application. No license may be transferred to another person or place without application to the Council in the same manner as an application for a new license. Transfer of 25% or more of the stock of a corporation or of a controlling interest thereof, whichever is less, shall be deemed a transfer of the license of a corporate licensee. If the licensee is a corporation, which is wholly owned by another corporation, the same provisions about the transfer of a stock or a controlling interest shall apply to that parent corporation, any second parent corporation, which wholly owns the parent corporation, and all other similarly situated parent corporations up through the chain of ownership. Transfer of this amount of stock without prior Council approval is a ground for revocation or suspension of the license. In addition, each day the licensee operates under the license after a transfer has taken place without obtaining Council approval shall be a separate violation of this chapter. (E) Any application for a license may be considered by the City Council at the same time an applicant is requesting any land use approvals needed for the site, including site plan review, rezoning or an amendment to the Comprehensive Guide Plan. Final approval of a license shall not be granted until the City Council has given at least preliminary approval to any necessary land use request. If an application is granted for a location where a building is under construction or not ready for occupancy, the license shall not be delivered to the licensee until a certificate of occupancy has been issued for the licensed premises. • (F) In the case of the death of a licensee, the personal representative of a licensee may continue operation of the business for not more than 180 days after the licensee's death. ('89 Code, § 6.41) (Ord. 95 -162, passed 2- 27 -96) Penalty, see § 10.99 § 120.22 LICENSE SUSPENSION OR REVOCATION. Any license under this chapter may be denied, suspended or revoked for one or more of the following reasons: (A) Delinquent taxes. The City Council may suspend or revoke a license issued under this chapter for operation on any premises on which real estate taxes, assessments or other financial claims of the city or of the state are due, delinquent or unpaid. If an action has been commenced pursuant to the provisions of M.S. Chapter 278, as it may be amended from time to time, questioning the amount of validity of taxes, the Council may on application by the licensee waive strict compliance with the provision; no waiver may be granted, however, for taxes, or any portion thereof, which remain unpaid for a period exceeding one year after becoming due unless the one -year period is extended through no fault of the licensee. (B) Violations. The Council may either suspend for up to 60 days or revoke any license or impose a civil fine not to exceed $2,000 for each violation upon a finding that the licensee or an agent or employee of the licensee has failed to comply with any applicable statute, regulation or ordinance. No suspension or revocation shall take effect • until the licensee has been afforded an opportunity for a hearing pursuant to M.S. §§ (i (0N) �-- 14.57 - 14.69, as it may be amended from time to time. Any conviction by the licensee • for theft, burglary, robbery, receiving stolen property or any other crime or violation involving stolen property shall result in the immediate suspension pending a hearing on revocation of any license issued hereunder. (C) The proposed use does not comply with the applicable zoning code. (D) The proposed use does not comply with any health, building, building maintenance or other provisions of this Code of Ordinances or state law. (E) The applicant or licensee has failed to comply with one or more provisions of this chapter. (F) The applicant is not a citizen of the United States or a resident alien, or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information. (G) Fraud, misrepresentation or bribery in securing or renewing a license. (H) Fraud, misrepresentation or false statements made in the application and investigation for, or in the course of, the applicants business. (I) Violation within the preceding five (5) years, or any law relating to the theft, damage or trespass to property, sale of controlled substances, or operation of a business. • (J) The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this chapter. RULES AND REGULATIONS § 120.35 LICENSEE RESPONSIBILITY; CONDUCT. Every licensee is responsible for the conduct of his or her place of business and the conditions of order in it. The act of any employee of the licensed premises is deemed the act of the licensee as well, and the licensee shall be liable for all penalties provided by this chapter equally with the employee, except criminal penalties. ('89 Code, § 6.41) (Ord. 95 -162, passed 2- 27 -96) § 120.36 LICENSE DISPLAY REQUIRED. Every license must be posted in a conspicuous place in the premises for which it is used. 0 ('89 Code, § 6.41) (Ord. 95 -162, passed 2- 27 -96) 10 Vo(o • § 120.37 RECORDS REQUIRED. (a) At the time of any reportable transaction other than renewals, extensions, redemptions or confiscations, every licensee must immediately record in English the following information by using ink or other indelible medium on forms or in a computerized record approved by the police department: (1) A complete and accurate description of each item including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item. (2) The purchase price, amount of money loaned upon or pledged therefor. (3) The maturity date of the transaction and the amount due, including monthly and annual interest rates and all pawn fees and charges. (4) Date, time and place the item of property was received by the licensee and the unique alpha and/or numeric transaction identifier that distinguishes it from all other transactions in the licensee's records. (5) Full name, current residence address, current residence telephone number, date of birth and accurate description of the person from whom the item of property was received, including: sex, height, weight, race, color of eyes and color of hair. (6) The identification number and state of issue from any of the following forms of identification of the seller: a. Current valid Minnesota driver's license. b. Current valid Minnesota identification card. c. Current valid photo identification card issued by another state or province of Canada. (7) The signature of the person identified in the transaction. (8) Effective sixty (60) days from the date of notification by the police department of acceptable video standards, the licensee must also take a color photograph or color video recording of: a. Each customer involved in a billable transaction. b. Every item pawned or sold that does not have a unique serial or identification number permanently engraved or affixed. If a photograph is taken, it must be at least two inches in length by two inches in width and must be maintained in such a manner that the photograph can be readily matched and correlated with all other records of the transaction to which they relate. Such photographs must be available to the chief of police or the chiefs designee, upon request. The major portion • of the photograph must include an identifiable facial image of the person II (o (b)(to who pawned or sold the item. Items photographed must be accurately • depicted. The licensee must inform the person that he or she is being photographed by displaying a sign of sufficient size in a conspicuous place on the premises. If a video photograph is taken, the video camera must focus on the person pawning or selling the item so as to include an identifiable image of that person's face. Items photographed by video must be accurately depicted. Video photographs must be electronically referenced by time and date so they can be readily matched and correlated with all other records of the transaction to which they relate. The licensee must inform the person that he or she is being videotaped by displaying a sign of sufficient size in a conspicuous place on the premises. The licensee must keep the exposed videotape for three (3) months. (9) Digitized photographs. Effective sixty (60) days from the date of notification by the police department, licensees must fulfill the color photograph requirements in section 120.37(8) by submitting them as digital images, in a format specified by the issuing authority, electronically cross referenced to the reportable transaction they are associated with. Notwithstanding the digital images may be captured from required video recordings, this provision does not alter or amend the requirements in subsection (8). (10) Renewals, extensions, redemptions and confiscations. For renewals, extensions, redemptions and confiscations, the licensee shall provide the • original transaction identifier, the date of the current transaction and the type of transaction. § 120.38 INSPECTION OF RECORDS. The licensee shall make available the information required above at all reasonable times for inspection by law enforcement officials. The information required in § 120.37 above shall be retained by the pawnbroker for at least four years. ('89 Code, § 6.41) (Ord. 95 -162, passed 2- 27 -96) § 120.39 PROPERTY RECEIVED; RECEIPTS. Each licensee shall issue a receipt as follows: (1) Every licensee must provide a receipt to the party identified in every reportable transaction and must maintain a duplicate of that receipt for three (3) years. The receipt must include at least the following • information: 12 (c,W)k-, § 120.40 DAILY REPORTS TO POLICE DEPARTMENT. Daily reports to Hutchinson Police Department containing the following information are hereby required: • 13 (,0(6) (P a. The name, address and telephone number of the licensed • business. b. The date and time the item was received by the licensee. c. Whether the item was pawned or sold or the nature of the transaction. d. An accurate description of each item received including, but not limited to, any trademark, identification number, serial number, model number, brand name or other identifying mark on such an item. e. The signature or unique identifier of the licensee or employee who conducted the transaction. f. The amount advanced or paid. g. The monthly and annual interest rates, including all pawn fees and charges. h. The last regular day of business by which the item must be redeemed by the pledger without risk that the item will be sold and the amount necessary to redeem the pawned item on that date. i. The full name, current residence address, current residence telephone number and date of birth of the pledger or seller. • j. The identification number and state of issue from any of the following forms of identification of the seller: 1. Current valid Minnesota driver's license; or 2. Current valid Minnesota identification card; or 3. Current valid photo drivers license or identification card issued by another state or province of Canada. k. Description of the pledger or seller, including approximate height and weight, sex, race, color of eyes and color of hair. 1. The signature of the pledger or seller. m. All printed statements as required by M.S.A. § 325J.04, Subdivision 2 or any other applicable statutes. § 120.40 DAILY REPORTS TO POLICE DEPARTMENT. Daily reports to Hutchinson Police Department containing the following information are hereby required: • 13 (,0(6) (P • (1) Effective no later than sixty (60) days after the police department provides licensees with the current version of the automated pawn system interchange file specification, licensees must submit every reportable transaction to the police department daily in the following manner: a. Licensees must provide to the police department all reportable transaction information by transferring it from their computer to the automated pawn system via modem using the current version of the automated pawn system interchange file specification. All required records must be transmitted completely and accurately after the close of business each day in accordance with standards and procedures established by the issuing authority. Any transaction that does not meet the automated pawn system interchange file specification must be corrected and resubmitted the next business day. The licensee must display a sign of sufficient size, in a conspicuous place on the premises, which informs patrons that all transactions are reported to the police department daily. (2) Billable transaction fees. Licensees will be charged for each billable transaction reported to the police department. a. If a licensee is unable to successfully transfer the required reports by modem, the licensee must provide the police department, upon request, • printed copies of all reportable transactions along with the video tape(s) for that date, by noon the next business day; is b. If the problem is determined to be in the licensee's system and is not corrected by the close of the first business day following the failure, the licensee must continue to provide the required reports as detailed in subsection 120.40 (1)(a), and shall be charged a $1.50 (reserved for future consideration) reporting failure penalty, daily, until the error is corrected; or c. If the problem is determined to be outside the licensee's system, the licensee must continue to provide the required reports in subsection 120.40 (1)(a), and resubmit all such transactions via modem when the error is corrected. d. If a licensee is unable to capture, digitize or transmit the photographs required in subsection 120.37, the licensee must immediately take all required photographs with a still camera, cross reference the photographs to the correct transaction and make the pictures available to the police department upon request. 14 (C06�� e. Regardless of the cause or origin of the technical problems that prevented the licensee from uploading their reportable transactions, upon correction of the problem, the licensee shall upload every reportable transaction from every business day the problem had existed. f. Subsection 120.40, and all subdivisions, notwithstanding, the police department may, upon presentation of extenuating circumstances, delay the implementation of the daily reporting penalty. § 120.41 POLICE RESTRICTIONS ON SALE OR REDEMPTION /ORDER TO HOLD PROPERTY. a) Investigative hold. Whenever a law enforcement official from any agency notifies a licensee not to sell an item, the item must not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the originating agency within seventy -two (72) hours and will remain in effect for 15 days from the date of initial notification, or until the investigative order is cancelled, or until an order to hold/confiscate is issued, pursuant to subsection (b), whichever comes first. (b) Order to hold. Whenever the chief of police, or the chiefs designee, notifies a licensee not to sell an item, the item must not be sold or removed from the licenses premises until authorized to be released by the chief of police or the chiefs designee. The order to hold shall expire ninety (90) days from the date it is placed, unless the chief of police, or the chiefs designee, determines the hold is still necessary and notifies the licensee in writing. (c) Order to confiscate. If an item is identified as stolen or evidence in a criminal case, the chief of police or the chiefs designee may: (1) Physically confiscate and remove it from the shop pursuant to a written order from the chief of police or the chiefs designee; or (2) Place the item on hold or extend the hold as provided in subsection (b) and leave it in the shop. When an item is confiscated, the person doing so shall provide identification upon request of the licensee and shall provide the licensee with the name and telephone number of the confiscating agency and investigator and the case number related to the confiscation. When an order to hold /confiscate is no longer necessary, the chief of police or chiefs designee shall so notify the licensee. 15 co 06) n § 120.42 INSPECTION OF ITEMS. (A) Inspection by city. The licensee shall, at all times during the term of the license, allow the City Police Department to enter the premises where the business is located and any other premises where items purchased or received as part of the business are stored, for the purpose of inspecting the premises and the merchandise therein to locate items suspected or alleged to have been stolen or otherwise improperly disposed of (B) Inspection by claimants. Additionally, all the items coming into possession of the licensee shall at all times be open to inspection and right of examination of any person claiming to have been the owner thereof or claiming to have any interest therein, when that person is accompanied by a police officer. The licensee may require, prior to inspection, a reasonable description of the property from the party claiming ownership or an interest in the property. ('89 Code, § 6.41) (Ord. 95 -162, passed 2- 27 -96) § 120.43 GAMBLING PROHIBITED. No licensee may keep, possess or operate, or permit the keeping, possession or • operation on the licensed premises of dice, slot machines, roulette wheels, punchboards, blackjack tables or pinball machines which return coins or slugs, chips or tokens of any kind, which are redeemable in merchandise or cash. No gambling equipment authorized under M.S. §§ 349.11 - 349.61, as it may be amended from time to time, may be kept or operated and no raffles may be conducted on the licensed premises or adjoining rooms. The purchase of lottery tickets may take place on the licensed premises as authorized by the director of the lottery pursuant to M.S. §§ 349A.01 - 349A.15, as it may be amended from time to time. ('89 Code, § 6.41) (Ord. 95 -162, passed 2- 27 -96) Penalty, see & 10.99 § 120.44 STORAGE; OVERSIZED ITEMS. All items must be stored within the licensed premises building, except the city may permit the licensee to designate one locked and secured warehouse building within the city in which the licensee may store oversized items. No item may be stored in the designated warehouse building that is not reported in the journal. The licensee shall permit immediate inspection of the warehouse at any time during business hours by the city, and failure to do so is a violation of this chapter. Oversized items may not be stored in parking lots or other outside areas. All provisions regarding record keeping and reporting shall apply to oversized items. ('89 Code, § 6.41) (Ord. 95 -162, passed 2- 27 -96) Penalty, see & 10.99 16 (AYP • § 120.45 OFF -SITE SALES AND STORAGE. All items accepted by a licensee at a licensed location in the city shall be for pledge or sale through a licensed location in the city. The licensee shall be responsible for maintaining adequate records to demonstrate ownership for the sale or pledging of items acquired at appropriately licensed facilities located in other cities. 0 ('89 Code, § 6.41) (Ord. 95 -162, passed 2- 27 -96) § 120.46 RESTRICTIONS ON WEAPONS. (A) A licensee may not receive as a pledge or otherwise, or accept for consignment or sale, any firearm as defined in § 130.01 of this code, unless the licensee also maintains a federal firearms dealer's license. (B) A licensee may not receive as a pledge or otherwise, or accept for consignment or sale, any assault weapon. (C) A licensee may not use out -of -state identification for the sale, consignment or pawning of any firearm. ('89 Code, § 6.41) (Ord. 95 -162, passed 2- 27 -96) Penalty. see § 10.99 § 120.47 REDEMPTION PERIOD. Any person pledging, pawning, or depositing an item for security must have a minimum of ninety (90) days from the date of that transaction to redeem the item before it may be forfeited and sold. During the ninety (90) day holding period, items may not be removed from the licensed location except as provided in 120.52 Licensees are prohibited from redeeming any item to anyone other than the person to whom the receipt was issued or, to any person identified in writing by the pledger at the time of the initial transaction and signed by the pledger, or with approval of the chief of police, or chief s designee. Written authorization for release of property to persons other than original pledger must be maintained along with the original transaction record in accordance with 120.37. § 120.48 HOLDING PERIOD. Any item purchased or accepted in trade by a licensee must not be sold or otherwise transferred for twenty -one (2 1) days from the date of the transaction. An individual may redeem an item seventy -two (72) hours after the item was received on deposit, excluding Sundays and legal holidays. § 120.49 LABEL REQUIRED. Licensees must attach a label to every item at the time it is pawned, purchased or received in inventory from an reportable transaction. Permanently recorded on this label must be the number or name that identifies the transaction in the shop's records, the transaction date, the name of the item and the description or the model and serial number of the item as reported to the police department, whichever is applicable, and the date the item is out of pawn or can be sold, if applicable. Labels should not be re -used. 17 (0(b�� § 120.50 PROHIBITED ACTS. • (a) No person under the age of eighteen (18) years may pawn or sell or attempt to pawn or sell goods with any licensee, nor may any licensee receive any goods from a person under the age of eighteen (18) years. (b) No licensee may receive any goods from a person of unsound mind or an intoxicated person. (c) No licensee by receive any goods, unless the seller presents identification in the form of a valid driver's license, a valid State of Minnesota identification card, or a current valid photo driver's license or identification card issued by the state or providence of residency of the person from whom the item was received. (d) No licensee may receive any item of property that possesses an altered or obliterated serial number or operation identification number or any item or property that has had its serial number removed. (e) No person may pawn, pledge, sell, consign, leave, or deposit any article of property no their own; nor shall any person pawn, pledge, sell consign, leave, or deposit the property of another, whether with permission or without; nor shall any person pawn, pledge, sell, consign, leave, or deposit any article of property in which another has a security interest; with any licensee. • (f) No person seeking to pawn, pledge, sell, consign, leave, or deposit any article of property with any licensee shall give a false or fictitious name; nor give a false date of birth; nor give a false or out of date address of residence or telephone number; nor present a false or altered identification, or the identification of another; to any licensee. § 120.51 BUSINESS AT ONLY ONE PLACE. A license under this chapter authorized the licensee to carry on its business only at the permanent place of business designated in the license. However, upon written request, the chief of police, or chief's designee, may approve an off -site locked and secured storage facility. The licensee shall permit inspection of the facility in accordance with 120.38. All provisions of this chapter regarding record keeping and reporting apply to the facility and its contents. Property shall be stored in compliance with all provisions of the city code. The licensee must either own the building in which the business is conducted, and any approved off -site storage facility, or have a lease on the business premise that extends for more that six (6) months. § 120.52 EFFECTIVE DATE. This division shall be effective from and after the later of the following: (1) Sixty (60) days after its adoption and second publication; or (2) September 1, 2006 • Cf3- (,(4 Disclaimer. • This Code of Ordinances and/or any other documents that appear on this site may not reflect the most current legislation adopted by the Municipality. Amercan Legal Publishing Corporation provides these documents for informational purposes only. These documents should not be relied upon as the definitive authority for local legislation. Additionally, the formatting and pagination of the posted documents varies from the formatting and pagination of the official copy. The official printed copy of a Code of Ordinances should be consulted prior to any action being taken. For further information regarding the official version of any of this Code of Ordinances or other documents posted on this site, please contact the Municipality directly or contact American Legal Publishing toll -free at 800- 445 -5588. ® 2005 American Legal Publishing Corporation tBC4suoo0rIA8Mleoa I. corn 1.800.445.5588. CI r � �J 19 r1 LJ (/W N#WWV Area Chamber of Commerce Convention & Visitors Bureau July 21, 2006 Mr. Gary Plotz City Administrator City of Hutchinson 111 Hassan Street Southeast Hutchinson, MN 55350 Dear Mr. Plotz, 2 Main Street South Hutchinson, MN 55350 320.587.5252 800.572.6689 Fax 320.587.4752 info @explorehutchinson.com www.explorehurchinson.com The 32 "d Annual Arts & Crafts Festival of the Hutchinson Area Chamber of Commerce, Convention & Visitors Bureau will be held Friday, September 15, 10 am to 6:00 pm, and Saturday, September 16, 9 am to 4 pm. We have contacted Mayor Cook, the Hutchinson Police Department, the Park and Recreation • Department and the Street Department for their assistance. If you have any questions, please call the Chamber CVB at 587 -5252. The Hutchinson Ambassadors also wish to reserve all concession rights in the downtown area as well as the control of any and all food exhibitors for the Taste of Hutchinson. The Ambassadors have an agreement with Hutchinson Downtown Association regarding the operation of the Popcorn Wagon during the event. Thank you for your cooperation and for all the help you've provided in the past. AVail'111anco President n LJ i(0-) 0 C TO: Mayor & City Council FROM: John Rodeberg, Director of Public Works Kent Earner, City Engineer RE: Consideration of Resolution Requesting Municipal State Aid Variance for Highway 7 Underpass Trail DATE: August 8, 2006 As noted at previous meetings and hearings, during the design process the City of Hutchinson agreed to pursue a variance from the State Aid standard trail radius (from 90' minimum to 70') in order to lessen the • impact on the Heritage Center site. The Mn/DOT State Aid Engineer has indicated that it is very likely that we would be able to acquire this variance. Attached is the Figure D from SRF Consulting's recommendation memo dated June 16,2006. This drawing shows the 70' radius relative to the Heritage Center's building and surrounding landscaping. We believe that this alternative best addresses the concerns and issues that have been communicated while still providing a functional and cost - effective trail location. The attached Resolution states as required by State Aid that the City Council supports the request for the design variance. This Resolution is necessary for the submittal to the State Variance Committee prior to September 1, 2006. We recommend approving this Resolution Requesting Municipal State Aid Variance for Highway 7 Underpass Trail. cc: Gary Plotz —City Administrator (,(J) • • 9 / PLOVER GAO DEN 41% TRAIL N TONE PROTE6TION ' PROP. T.E. -Y�� 1 O O O t PROP. P.E. 3t O PROPO Y S � ruc ' g TRAIL No. 2 MALI euE INI 6 'M s y1 Diff .x - P 0 EX.' RV— 0 DRFELLOWS PARK PA KING LOT — TRAIL 10. 5 ® UCE LINE 0i _ R q L �- �, l n� cS- �. G l cn G /, v Q G 0 C C OC TRAIL O No. 4 ! `1 i 100 0 100��. \ -_. �- TRAIL No. 3 scale fleet ®ALIGNMENT STUDY 6 figure D TH 71 School Road Pedestrian Underpass c..,.m.�c...a E.� S.P. 133 -090 -002 5376 City of Hutchinson 6HBR006 (,(4 • RESOLUTION RELATING TO STATE AID VARIANCE Resolution No. 13007 S.A.P. # 133 -090 -002 (School Road Pedestrian Underpass approximately 350' west of TH 7 and School Road NW intersection) in the City of Hutchinson, Minnesota, City Letting No. 1 /Project No. 07 -01. WHEREAS, THIS RESOLUTION was passed this 8th day of August, 2006, by the City of Hutchinson in McLeod County, Minnesota. The Municipal corporation shall hereinafter be called the "City", WiTNESSETH: WHEREAS, the "City", has planned the construction of a 10' x 14' tunnel structure beneath TH 7 with associated 10' trail improvements and appurtenances in the City of Hutchinson, Minnesota. WHEREAS, the "City" will be expending Federal Aid Funds and possibly expending Municipal Street Aid Funds on these improvements; and WHEREAS, this improvement provides for a 70' trail radius immediately adjacent to the northerly tunnel opening that does not achieve the State Aid standard of 92' minimum trail radii; and approval of the proposed construction as a Federal Aid and possibly Municipal State Aid Street project must therefore require a State Aid design variance. 0 NOW, THEREFORE, IT IS HEREBY RESOLVED: That the "City" formally requests a State Aid design variance for a 70' trail radius. By State approval of this variance, the "City" indemnifies, saves, and holds harmless the State and its agents and employees of and from claims, demands, actions, or causes of action arising out of or by reason of the granting of the variance. The "City" shall further agree to defend at its sole cost and expense any action or proceeding begun for asserting any claim of whatever character arising as a result of the granting of the variance. Dated this 8th day of August, 2006. ATTEST: City of Hutchinson, Minnesota. Steven W. Cook - Mayor • Gary D. Plotz - City Administrator (.0 (d) C� TO: Mayor & City Council FROM: John Rodeberg, Director of Public Works Kent Exner, City Engineer RE: Consideration of Proceeding with 2006 Street/TraillSidewalk Improvement Projects (Letting No. 5 /Project No. 06 -05) DATE: August 8, 2006 As previously discussed, this project includes general maintenance work (such as patching, concrete repair, seal coating, crack sealing and other minor repairs) that is included in several small contracts, each below $50,000. These projects are quoted individually, and the hearing is necessary for city bonding purposes. This is the work that eventually would come out of the General Fund when the proposed phased inclusion of maintenance funding in the Street Department budget is completed (about three more years). A short presentation and discussion regarding this project will be held prior to opening the Public Hearing. No assessments are proposed for these improvements, thus an Assessment Hearing will not be required. Attached is the Resolution Accepting Bids & Awarding Contracts. We recommend the approval of this Resolution. cc: Gary Plotz — City Adrrunistrator J RESOLUTION NO. 13008 • RESOLUTION ACCEPTING BID AND AWARDING CONTRACT LETTING NO.5 PROJECT NO. 06-05 Whereas, pursuant to an advertisement for bids for the furnishing of all labor and material for the improvement of: Street/Sidewalk/Trail Maintenance — maintenance of existing street, sidewalk and trail infrastructure by crack filling, patching, sealcoating, pavement reclamation /milling, resurfacing, concrete repairs and appurtenances, and bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: Bidder Skim Patching Mill Patchina Seal Coating Wm Mueller & Sons Inc of Hamburg MN $98.00/Ton $150.00/Ton No Bid Duininck Bros Inc of Prinsburg MN $167.45/Ton $167.45/Ton No Bid Pearson Bros Inc of Hanover MN No Bid No Bid $1.18/Sq Yd Astech Inc of St Cloud MN No Bid No Bid $1.34/Sq Yd and whereas, it appears that W m Meuller & Sons Inc of Hamburg MN is the lowest responsible bidder for Skim & Mill Patching and Pearson Bros Inc of Hanover MN is the lowest responsible bidderfor Seal Coating. • NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The mayor and city administrator are hereby authorized and directed to enter into a contract with Wrn Mueller & Sons Inc in the amount not to exceed $30,000.00 ($98.00/Ton for Skim Patching and $150.00/Ton for Mill Patching) and with Pearson Bros Inc in the amount not to exceed $50,000.00 ($1.18 /Sq Yd for Seal Coating) in the name of the City of Hutchinson, for the improvement contained herein, according to the plans and specifications therefor approved by the City Council and on file in the office of the Director of Engineering. 2. The Director of Engineering is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed, and the deposit of the successful bidder shall be retained until satisfactory completion of the contract. Adopted by the Hutchinson City Council this 8th day of August 2006. Mayor City Administrator rr` 2006 NEIGHBO..HOOD MAINT. City of Hutchinson Crack seal Project Year 2006 0„ Ll km ■�� m Crack sealing N Details —2 w e i Crack Seal City of Hutchinson Year 2006 ," ■ ■ ■■■■ ■t Prep. Patching ti!"�5 Prep. Patch ■1 City of Hutchins Seal Coat Proj �■� SOON, ���■ ■11111 �r � 11111l�.:. DETAILS I- SealCcat � �� III ■■ � � 4 1 #� _� ♦i�1 f(d� Liquor Hutch Update August 8t" 2006 U 0 0 0 Purpose of Municipal Liquor ■ Promote moderation and control in the sale of a product that has numerous societal impacts ■ Contribute to the financial well -being of the community through the annual transfer of profits to the City of Hutchinson General Fund — over $2.8 Million in the last 12 years!! ■ The Liquor Enterprise Fund is totally self - supporting with NO TAX DOLLARS USED for the Liquor Operations C� 0 . tr .R. P•Y A i f i .h. � WINDSOR !��, y�jR��yl�iy �. W�lYlW�K nncnlanl ,,��Irn�nnr '��:.,' '�*',f .. Ina l• #'a'16aa Tl���.�H� � � �1J' �— • -e--�. - I%AC AR Ill i�Ai'A lir)1 nnc. near WINDSOR f MtH lfa'�'W al . WINDSIlIE l e A N A ■) r A r`ir Y YL 1 A u IM e1 a " r1 iV' ,U I7 1 JA ins t r lh i.ec Pl' xw q�py,�.� � _� vim � {���. .may. �,. q...:� � d�^ria`. � �� � � t.,{�ru .. ... u A IfT Al w -- 1 0 UT I C-T -- 1 0 i a i I I : 7,:, � '73 i� .p 9IN�!.^Y.�M�'... + s, sAf rr _.. 2 ja bj 99PP G #R4lY. � i r' r7 Or �4f�1Y�1 0.10 Rk y P Y , .+� t, 4- i ! :29 pm - -■ P �t'f:' 'y�.'F13f •�T.�.. I:? g ■ �'LiNk� "' i°.�•''tt 4 `�aa -�` _. yam:. �:� , •� " L� i yr.,7 , 0- . • Construction Costs January 2005 Project Estimate $1,932,484 August 2006 Actual Project Costs $1,881,656 M- 0 if -0 • 2006 les Increases January 2006 up 11.7% $27,879 February 2006 up 19.9% $50,327 March 2006 up 12.1% $34,119 April 2006 up 8.7% $26,941 May 2006 up 13.8% $46,066 June 2006 up 16.9% $63,780 July 2006 up 6.7% $26,046 Year to Date up 12.7% $2751,158 0 • zuub cross Prom increases January 2006 February 2006 March 2006 April 2006 May 2006 June 2006 July 2006 up 11.0% up 19.8% up 13.0% up 6.3% up 18.3% up 20.3% up 13.2% $ 6,153 $11,928 $ 8,843 $ 4,914 $13,627 $16,861 $10,975 Year to Date up 14.7% $73,301 [:1 0 i� 0 0 ps -• • Revenue 06 Adopted audget " "Conservative /Worst Case Scenario" Projections Expenses Labor Supplies, Repairs, Maint Consulting Services and Misc Debt Service Cost of Goods $432,426 $ 12,850 $ 6,000 $113,650 $ 91,000 $3,088,010 Net Profit including depreciation Transfers to General Fund $3,998,828 $3,743,936 $254,892 $321,500 Note: Accumulated liquor profits to be used for 3 years to meet transfer obligation while sales increased to a level that would support debt service and transfer. u 40 IF .• • Revenue i Projected -Budget Based on a 10% Sales Increase Expenses Labor Supplies, Repairs, Maint Consulting Services and Misc Debt Service Cost of Goods $ 432,426 $ 12,850 $ 6,000 $ 113,650 $ 91,000 $3,311,000 Net Profit including depreciation Transfers to General Fund $4,300,000 $3,966,926 $ 333,074 $ 321,500 Note: Debt Service and Transfer should be supported by sales in the first year! I 11 IF 0 Future • New facility provides space for growth for many years to come ensuring continued contributions to the General Fund • Immediate issues to complete include increased lighting and aisle signage • Planning an In -store Customer Survey to be conducted this fall • Planning a comprehensive review of Marketing /Advertising strategy to be completed by November 1St. u 0 CITY OF HUTCHINSON MEMO Finance Department August 3, 2006 TO: MAYOR 6 CITY COUNCIL FROM: KEN MERRILL, FINANCE DIRECTOR SUBJECT: 2006 BONDING The revised documents calling for the sale of the 3 bonds to be issued by the City for 2006 are enclosed. Pre -Sale reports for the 2006 Improvement Bonds, 2006 GO Water Bonds, and 2006 GO Sewer Revenue Bonds were prepared and will be reviewed by our Ehlers Financial Consultant Tuesday. As you make dollar comparison from earlier reports you will notice we have reduced the bond amount for the GO Sewer Revenue Bonds. The resolutions requested to be approved by the City Council set the dollar amount of the bonds, the date bids will be opened and awarded by the City. H: \DOC \City council memo 3.doc I 1 L J 9(� t. City of Hutchinson, Minnesota Pre -Sale Report August 8, 2006 Proposed Issue: $3,230,000 General Obligation Improvement Bonds, Series 2006A Purpose: The bonds will finance the City's 2006 public improvement projects, including Highway 7 reconstruction; Denver Avenue; street, sidewalk, and trail maintenance; trail improvements; and the 2006 pavement rehabilitation projects. Term: The bonds will have a term of 15 years. Funding Sources: The bonds will be repaid with special assessments and tax levy. Special assessments are to be levied for 52% of the project costs. The remaining $1,565,000 of the bonds will be supported with the tax levy. The Bonds will be secured with a general obligation pledge from the City of Hutchinson. Discussion Items: The bonds have been structured consistent with the direction Council provided at their June 13, 2006 meeting. The term is 15 years, and the principal repayment is structured to achieve level annual debt payments on future bonds by 2010. The • annual debt levy is scheduled to increase 5% per year. Schedule: City Council Pre -Sale Review: August 8, 2006 Distribute Official Statement: Week of August 14 Rating Agency Interview Week of August 14 Bond Sale: August 22, 2006 Awarded at regular City Council meeting. Estimated Closing Date: Week of September 18 Ehlers Contacts: Financial Advisors: Steve Apfelbacher (651) 697 -8510 Jessica Cook (651) 697 -8546 Bond Analysts: Diana Lockard (651) 697 -8534 Debbie Holmes (651) 697 -8536 Bond Sale Coordinator: Connie Kuck (651) 697 -8527 Attachments: Resolution authorizing Ehlers to proceed with bond sale Proposed Debt Service Schedule and Assessments Chart Showing Future Debt and Target Levy • Bond Buyer Index Graph on Interest Rates The Official Statement for this financing will be mailed to the Council Members at their home address for review prior to the sale date 1 (G) • FREERS ASSOCIATES INC Resolution No. Council Member introduced the following resolution and moved its adoption: Resolution Providing for the Sale of 13,230,000 General Obligation Improvement Bonds, Series 2006A A. WHEREAS, the City Council of the City of Hutchinson, Minnesota, has heretofore determined that it is necessary and expedient to issue the City's $3,230,000 General Obligation Improvement Bonds, Series 2006A (the "Bonds "), to finance certain public improvements; and; B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ( "Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of Hutchinson, Minnesota, as follows: 1. Authorization: Findings. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. • 2. Meeting: Proposal Opening. The City Council shall meet at City Hall on August 22, 2006, for the purpose of considering sealed proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. 0 The motion for the adoption of the foregoing resolution was duly seconded by Council Member and, after full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this day of Prepared by Ehlers & Associates, Inc. City Clerk q V) City DI Hutchinson, MN l:aNlbw Bah•duN bntl 111/0lmalbn 2 rr•pa•W 0.0. Bom4, SNlea 2006 7 DeteC Dale 9I52OOB Per PmaM M Bondy 3,230.000 tellneee•t P)m 2/12W7 C4649u5on Fw 1nine•1 M,3O1 tet Pri•iPN Pyn9 2/12007 TO SOVme 3.258.304 A. Colyon Gat E•4 E•tlmaeM I" Ultleiwi0ela� (1.100%) 35.530 Tic 4.8976% Co dluualm 28,000 MC Eaben9 Boi« Depu to Pr*d Coimhvr500 Fv 3.190.533 Y«r flab rMlelp•I Rab Inbnat Rand'. Pmaa9 4241 R« " Only Tdm flees 3,258,304 1 i 0 1 EHLERS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 mw. 1.492666 91Y1008 1.16.186 Tebl Pr•p••N L•vy E•1 Gat E•4 E•tlmaeM L•vy CoNaol Paym 1 40 Nat Pal A•e•s•1«nl N•wD Eaben9 Boi« 8•l1« SaM• FO TOW T.'A O4.11 Y«r Y«r flab rMlelp•I Rab Inbnat Pal H.00% R« " Only L•vy 2007 2006 200! MN L•vy Levy' Un 2005 2006 9.52008 12/312(216 Dab - _ h" W mw. 1.492666 91Y1008 1.16.186 _ 1.49 ;868 1.492,666 10012(225 21221 207 12/312007 85,000 3.75% 127,513 212.513 223,136 (227,9&11 (4,817) 1,580,661 12/120" 331612 4.550% 4,888 1,58001 1,580,661 (0) 2007 2008 12/112008 165,000 395% 138,931 321,934 338.030 (219,642) 116,369 1,527,528 311M07 - - 1.615.915 1.M9,M4 (13,779) NOB 2008 12/112009 110,000 400% 131,080 241,080 253.134 1211,2961 41,636 1,524(268 180,000 IN.000 1,726104 1,742,679 (16,575) N" 2010 12/112010 70,000 405% 127,400 197.483 207,336 (202955) 4,381 1,528,294 1M,O00 160.000 MO00 1,817.875 1,826813 (12,138) 2010 2011 12/312011 70,000 4.10% 124.610 194810 201,341 (194.811) 9,120 1.513.137 1MO00 MOM 125,000 385,0" 1,"1.868 1,921.3" (13,438) 2011 2012 121112012 135.000 415% 120.308 255.300 Mon (256815) 11258 1,420.253 145,"0 140.000 125,000 570,000 2,001,508 2,017,388 (15,659) 2012 2013 12!112013 165,000 4.30% 113,890 278,880 292835 (245,423) 47.411 1,157.859 155000 180.000 MOM 88.0" Zan.= 2,118237 (47,967) M13 2014 lMlM14 125.000 44016 107,593 232500 202,222 (234.031) 10.191 1,136786 170,000 1 ",0" 160,000 970,00 - 2118,979 2.224,149 (105,170) M14 M15 12//12015 110,000 445% 102,395 212395 223,015 (222640) 375 1,064,388 170,000 185.000 190.000 1,135,000 2219,741 2335,356 (116,615) 2015 2018 12/112016 350,000 4.50% 82073 202073 484178 (211,246) 252628 669,300 1761100 MOM IN." 12 ,(210 2217,228 2452124 2018 2017 12/112017 630.000 4.55% 6sW5 6N.W5 734868 - 7!1.858 170,000 165000 160,000 1,455,000 2100658 2.574.730 (381.872) 2017 2018 12/112018 5110,000 4.60% "'am 544. "3 571,234 - 571.234 - 170,000 185.000 160.000 1615,000 2186234 2574.M (388.498) 2018 2019 12/312019 386000 4.65% 24,018 389.048 406.499 - 400,499 - 170,000 185.000 MOM 1,775.000 2183499 2574.M (381,232) 2019 2020 12/112020 1",000 410% 10.155 240,155 252181 - - 252.183 - 170.000 1650" 160.000 1,935,000 2187,183 2.574.730 (387.507) 2020 2021 12/112021 1 130,000 4.75% 2375 102,375 107.494 - 107,481 - 170,0" 16'.50" 186"0 2,045,000 2202494 2374,730 (372,235) _ iN,"0 185.0" 160.0" 22650" 2255.0" 2674.730 (319.730) _ 185.000 160.000 2245.000 2245.000 2574730 (329,730) _ _ 1 60,000 2.240.0210 - _ - 2.240.000 2.574.730314.30) 32300" 1334320 4561329 4,792545 (220610) 2.565.897 2240.000 2.240.000 2240.000 50.967.881 • tieNmNW ruttN• a61 Yttlua« E•L BarN• 2"7, 2"6 a x006, «wN.• MM I«U•d 2010 tlr0uph 26+e pwt •4101201). eah•dWd dab/ Snbe 2010 tlna49h 20fe I•hlml• b ••Bmabd Nr•14•01 N epP xknM y $14W0" par y P•rb•n•. " TarW L•vy a••um• a60%I«1••« •a•h Y«r 4 MW M 2006 b 10 yan e1.11 Mwl. N VAFneota9MMilem\N08 DeE6Geememanlrlbh6aw7 7202IX18 CpbhY0 "Fun6 Dmv eah•N• Dab Pr14wIpM bb h" W mw. 91Y1008 1.16.186 1,1m.180 10012(225 33.139 460% e,381 33.500 11/12008 330.395 4.50% 6.115 33.500 12/120" 331612 4.550% 4,888 336,500 1/1207 312.222 4.50% 3,656 336.378 2/12007 - 2,419 311M07 - 2426 4/12007 851,184 2,437 85.496 3,182229 26,302 3,1 ",533 Prepred M fTbn a Aa«tleNe. 11c • tieNmNW ruttN• a61 Yttlua« E•L BarN• 2"7, 2"6 a x006, «wN.• MM I«U•d 2010 tlr0uph 26+e pwt •4101201). eah•dWd dab/ Snbe 2010 tlna49h 20fe I•hlml• b ••Bmabd Nr•14•01 N epP xknM y $14W0" par y P•rb•n•. " TarW L•vy a••um• a60%I«1••« •a•h Y«r 4 MW M 2006 b 10 yan e1.11 Mwl. N VAFneota9MMilem\N08 DeE6Geememanlrlbh6aw7 7202IX18 1 1 • Pr 6 City of Hutchinson, MN Special Assessments for Proposed G.O. Bonds Series 2006A Assessment Revenue, Assessment Revenue Assessment Revenue 2008 Projects Applebees College and Fart Development Assessment Amt 1,399,751 Assessment Amt' 32,000 Assessment Amt 233,000 Rate 5.70% Rate 6.70% Accrued Interest 88,405 Start Year (Collection) 2007 Start Year (Collection) 2004 Assessment Amt 299,405 Term 10 Term 5 Rate 5.70% Calculation Method Equal Prin CakWatlon Method Equal Prin Start Year (Collection) 2004 Tenn 5 Calculation Method Equal Pnn 1 2 3 4 5 6 7 8 9 10 Total Total Total Total Assessment Principal Interest Assesamt Principal Interest Assessmt Principal Interest Assessmt Revenue (139,975) (79,786) (219,781) (6,400) (1,824) (8,224) (227,985) (139,975) (71,807) (211,782) (6,400) (1,459) (7,&59) (219,642) (139,975) (63,829) (203,804) (6,400) (1,094) (7,494) (211,298) (139,975) (55,850) (195,825) (6,400) (730) (7,130) (202,955) (139,975) (47,871) (187,847) (6,400) (365) (6,765) (194,811) (139,975) (39,893) (179,868) - - - (59,881) (17,066) (76,947) (256,815) (139,975) (31,914) (171,889) - - - (59,881) (13,653) (73,534) (245,423) (139,975) (23,936) (163,911) - - - (59,881) (10,240) (70,121) (234,031) (139,975) (15,967) (155,932) - - (59,881) (6,826) (68,707) (222,840) (139,975) (7,979) (147,954) - - - (59,881) (3,413) (63,294) (211,248) (1,399,751) (438,822) (1,638,573) (32,000) (5,472) (37,472) (299,405) (51,198) (350,603) rl (2,228,848) Prepared by Ehlers & Associates, Inc N. V. llnnsota+1utchlnsom2006 DebtWsseaementcashllow7 i rLf..: 3,000,000 2,500,000 1,500,000 1,000,000 500,000 Projected Futue Debt Levy with Series 2006A G.O. Improvement Bonds Existing Debt Future Debt including Series 2006 'Target Levy Prepared by Ehlers & Associates, Inc. 7/20/2006 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Existing Debt Future Debt including Series 2006 'Target Levy Prepared by Ehlers & Associates, Inc. 7/20/2006 BONDINDEX Bond Buyer Index (20 Bond, 20 Years) Revenue Bond Index (25 Bond, 30 Years) 5.40% { November 2004 through July 2006 I 5.20 % I 4 5.00% RBI I I I OON 4.80 % i`_ - _ L 4.80% Oe I. 'BBI i 4.40% - - i As of July 31, 2006 4.20% Revenue Bond Index............ 5.13% Bond Buyer Index ................. 4.55 ° /p 4.00% _-1 -,- T • x • t~ J t 3 t > 1 3 t J 5 2 • ] • t J t z 1] 1 ] s z • x •] • t ] 1 a e a • z F M A M J 5 O X p A N r1/ V • • City of Hutchinson, Minnesota Pre -Sale Report August 8, 2006 Proposed Issue: 52,240,000 General Obligation Sewer Revenue Bonds, Series 2006B Purpose: The bonds will finance the wastewater improvements to he installed in the Highway 7 Project the South Mill Pond trunk sanitary lining, and improvements to the aeration system. Term: The bonds will have a term of 15 years. Funding Sources: The bonds will be repaid with revenue from the wastewater utility (user charges and connection fees). The Bonds will be secured with a general obligation pledge from the City of Hutchinson. There will be a need to increase wastewater utility fees to fund these and future improvements (please see attached memo). Schedule: City Council Pre -Sale Review: Distribute Official Statement: Rating Agency Interview Bond Sale: Estimated Closing Date: Ehlers Contacts: August 8, 2006 Week of August 14 Week of August 14 August 22, 2006 Awarded at regular City Council meeting. Week of September 18 Financial Advisors: Steve Apfelbacher (651) 697 -8510 Jessica Cook (651) 697 -8546 Bond Analysts: Diana Lockard (651) 697 -8534 Debbie Holmes (651) 697 -8536 Bond Sale Coordinator: Connie Kuck (651) 697 -8527 Attachments: Resolution authorizing Ehlers to proceed with bond sale Proposed Debt Service Schedule Memo on Sewer Rates The Official Statement for this financing will be mailed to the Council Members at their home address for review prior to the sale date EHLERS 9 assocures inc n �J Resolution No. Council Member introduced the following resolution and moved its adoption: Resolution Providing for the Sale of $2,240,000 General Obligation Sewer Revenue Bonds, Series 2006B A. WHEREAS, the City Council of the City of Hutchinson, Minnesota, has heretofore determined that it is necessary and expedient to issue the City's $2,240,000 General Obligation Water Revenue Bonds, Series 2006B (the "Bonds "), to finance certain public improvements; and; B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ( "Ehlers "), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of Hutchinson, Minnesota, as follows: 1. Authorization: Findines. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. 2. Meeting: Proposal Opening. The City Council shall meet at City Hall on August 22, 2006, for the • purpose of considering sealed proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. • The motion for the adoption of the foregoing resolution was duly seconded by Council Member and, after full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this day of Prepared by Ehlers & Associates, Inc. City Clerk of (C;) AW Sources &lses Sotarccs OfFunds Farxmm/uo of Bonds ......................................................... ............................... ..................................................................................... $2,2*0»00.00 zmumfted Interest Earnings ' Construction Fund .................................................................................................................................. mo»oum T»to/ ----_--' $2,amPoouu Uses Of Funds Total Underwriter's oiwxmm(1.zmno ..................................................................................... ......................................................... m,W.00 un*wymumoe .'--_--.—_.—'----------_--'-----'----.'.--.—..'--..--.---' 26/000a0 Depositm"net Construction Fund .......................................................................................... .......................................... ............. 2,205.960.14 Ehlers /l Associates, Inc. Leaders in Public Finance Page 1 8 Hutchinson, MN •$2,240,000 G.O. Sewer Revenue Bonds, Series 2006 Debt Service Schedule Date Principal Coupon Interest Total P +I Fiscal Total 10/01/2006 - - - - 02/01/2007 - - 33,238.33 33,238.33 33,238.33 08/01/2007 - - 49,857.50 49,857.50 - 02/01/2008 110,000.00 3.950% 49,857.50 15907.50 209,715.00 08/01/2008 47,685.00 47,685.00 - 02/01/2009 115,000.00 4.000% 47,685.00 162,685.00 210,370.00 08/01/2009 - - 45,385.00 45,385.00 - 02/01/2010 120,000.00 4.050% 45,385.00 165,385.00 210,770.00 08/01/2010 - - 42,955.00 42,955.00 - 02/01/2011 125,000.00 4.100% 42,955.00 167,955.00 210,910.00 08/01/2011 - - 40,392.50 40,392.50 - 02/01/2012 130,(100.00 4.250% 40,392.50 170,392.50 210,785.00 08/01/2012 - - 37,630.00 37,630.00 - 02/01/2013 135,000.00 4.300% 37,630.00 172,630.00 210,260.00 08/01/2013 - - 34,727.50 34,727.50 - 02/01/2014 140,000.00 4.400% 34,727.50 174,727.50 209,455.00 08/01/2014 - - 31,647.50 31,647.50 - 02/01/2015 145,000.00 4.450% 31,647.50 176,647.50 208,295.00 08/01/2015 - - 28,421.25 28,421.25 - 02/01/2016 150,000.00 4.500% 287421.25 178,421.25 206,842.50 08/01/2016 - - 25,046.25 25,046.25 - 02/01/2017 • 160,000.00 4.55096 25,046.25 185,046.25 210,092.50 08/01/2017 - - 21,40625 21,406.25 - 02/01/2018 165,000.00 4.600% 21,406.25 186,406.25 207,812.50 08/01/2018 - - 17,611.25 17,611.25 - 02/01/2019 175,000.00 4.650% 17,611.25 1922611.25 210,222.50 08/01/2019 - - 13,542.50 13,542.50 - 02/01/2020 180,000.00 4.700% 132542.50 1932542.50 207,085.00 08/01/2020 - - 9,312.50 9,312.50 - 02/01/2021 190,000.00 4.750% 9,312.50 199,312.50 208,625.00 08/01/2021 - - 4,800.00 4,800.00 - 02/01/2022 200,000.00 4.800% 4,800.00 204,800.00 209,600.00 Total $2,240,000.00 - $934,078.33 $3,174,078.33 - Yield Statistics BondYear Dollars ........................................................................................................................................................ ............................... $20,411.67 Averagelife................................ ................................................................................ ............................................................................ 9.112 Years AverageCoupon ..............................................................................................................._......................................... ............................... 4.5761982% NetInterest Cost ( NIC) ............................ ........................................................................... _........................................................................ 4.7078876% TrueInterest Cost (TIC) ......... .................................................................................... ...... -........................................................................... 4.7311300% BondYield for Arbitrage Purposes .................................................................................................................................... ............................... 4.5614186% AllInclusive Cost ( AIC) ................................................................................................................................................. ............................... 4.8981098% IRS Farm 8058 NetInterest Cost ........................................................................................................................................................ ............................... 4.5761982% WeightedAverage Maturity ........ ... ............................................................................... ..........._...................................................................... 9.112 Years Sei Ofil29P.fM 4051nr:r / JNti/L/T/R/Cb'L / 8 121Z" / I #XM • Ehlers & Associates, Inc. Leaders in Public Finance Pape 2 (\ to-) 0 • 11 EHLERS 6 ASSOCIATES INC OTo: Ken Merrill, Finance Director 9M WSubject: From: Steve Apfelbacher and Jessica Cook Wastewater Rate Projections Date: July 20, 2006 MM You have requested that Ehlers & Associates analyze the impact of planned improvements on the sewer rates for the City's wastewater utility. Ehlers' review is based on historical operations, debt service, and future improvements to the system including building expansion, new lift station pumps, improvements to be undertaken in conjunction with road reconstruction projects, and other improvements in the five -year Capital Improvement Plan. Assumptions ✓ Historically, the City has collected enough revenue to fully fund depreciation. It is assumed that funding annual depreciation is the long -term financial goal for the wastewater utility. ✓ Operating expenses will increase 5% per year. In addition operating expenses will increase $150,000 by 2009 to operate the expanded treatment plant. ✓ Connection fees increase 5% per year. ✓ The City anticipates expanding the sewer treatment plant in 2007. The expansion is expected to cost $11412 million and will be financed with a combination of grants and a low- interest loan from the Public Finance Authority of the State of Minnesota. Donahue & Associates, the engineering firm designing the expansion, will be undertaking a rate study to determine the impact of the expansion on future sewer rates. Our analysis assumes that the City will finance an $11 million treatment plant with sewer revenue bonds. p 3060 Centre Pointe Drive (651) 697 -8546 Fez: (651) 697 -8555 Rouville, MN 55113 -1105 jwok(aehlers- ine.wm http:lt w .eWen- im.com q(a) 0 • • Conclusions Based on the cashflow projection attached as Exhibit A, we conclude that the following sewer revenue increases will be necessary to operate the system with a positive financial cashflow. Year 2007 2008 2009 and beyond Annual 300/6 20% 4 %per year Increasein Revenue If the City obtains grant funds or a low- interest loan from the Public Finance Authority, it will not need to raise as much revenue. In addition, it is our understanding that Donahue and Associates is conducting a rate study that includes allocating costs differently between industrial and residential users, thereby potentially reducing the impact to residents. Please note that we have evaluated the necessary increases in wastewater revenue. As mentioned above, actual rate increases will depend on how the revenue increases are allocated between the different types of water customers. 3060 Centre Pointe Drive Roseville, MN 55113 -1105 - — - __ - f (651) 697 -8546 Fu: (651) 697-8555 jcwk@ehlers-inc.com http: / /www.chle¢ inc.com 9((-')' NOTES: 1. G.pibl Mn1.0..1n.r6. M100184 CIP, Plea i2M^OOOP. M2006- M106M$MODOI^ MM11 2 B b 4.6um.d Rat Sa 6.aa bubn.r8 p11r14 X111 M M1P.9.M M 3067 w66mro.6 MM11 62606 6984.. S N I. 114.IIIa6 6163 9P6r11Rr.9 pp.b w111 Mm.w {846.000 P.r yur M 20011 .86rir6�n.rV pbM I..�.M.L L BplMlq In 200{, MvwMarlt M.en1. 14 6010 M Mb.wt V.YrIIM6. r.wMO en 0.. Man 4WN.M b tla 11p6.e 6MIr.. Pnpse05y Elms AUUtlala. N:VAMIa61.V98tlirv6M2o06 O6FLU's Nwvp6�rYm 7/20'20" CITY OF HUTCHINSON FOR DISCUSSION ONLY Exhibit A WASTEWATER SEWER UTILITY PROJECTION Ems. M 5% 5% 5% 5% 8% 5% 5% 5% 5% 5% 6% 5% CpDx Rmana M6966n 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% IncMman tluRps kr vNm. gya�w.m. 30% 2D% 4,^ 4.0% 4.0% 4.0% 4.0% 4.0% 1.091 3% 4.D% 1A1 Yn�e AUDITED ACTUAL BUDGET E6T EST EST EST EST EST EST EST EST EST 8401 IW6 2006 ]067 2068 2905 2840 3011 3012 N13 9014 2015 MIS GPERanNC REVENUES On6rp..Mes . 1403,950 1921495 2,906." 3.770.= 1,521,660 4,764,950 4.M.l 6 S,9M,695 SM,tw s,564,13e s,n43m 8,953275 5,191.106 Pm 16.&6vchs - - - - SUBTOTAL ;163.060 2,99 ;196 2.9K0N 3,T6006 1,624606 4704660 4663,166 18411,846 5261406 6.601,136 6.724,903 1 6^653,376 2 SiM,A NCBi-0PERATING REVENUES 6R.cbl A9.mv0.nd - RaM 4210 6.993 - - f.6Raca6n F. 155,667 125,521 M.000 92,700 95,481 95345 101.296 14,335 107,165 110,559 114,006 117,130 1M.M CMBS Moan 5,107 5.964 2.000 2.060 2,122 2.185 2361 .2319 zaas 2.160 _2.53^1 2510 2.685 SUBTOTAL 17C M 136 ^116 62^000 84.760 67.906 160,631 10.1 ^847 1N ^663 106^843 111116 114606 120 ^036 in'm TOTAL REVENUES 211166.064 SN1,6M Sf610m 3^W ^760 4.621,603 4,603,461 4666 ^706 6,166,636 6,061263 6^617.266 6,W.M9 6.071316 111315,W 01P MN0 9Pwl."ntl ,, tlgrplWOn Pc 1 S , 45/.986 552.506 560,596 Sm,625 60,105 875111 7M.717 741,00 775,053 515,955 557,503 Mm 945.TM S",i ,Rep®. d MwMwra 287,1. 209,733 196,060 206,9" 218,090 226,69.1 235339 260,151 261559 276^792 259,551 364,050 319263 Mi-amuFWni ®(mckmo6 Dep.ei. non) 17,100 17,955 1Rm 19,795 mm 21,524 21916 24,051 28]84 26,528 27,884 Ohm SmvM &chnn 837,396 1,095,334 493,950 518,648 W84mo 571.806 600,399 630,419 501,840 6KMT 729,759 766.279 SM.M 1m,m0 150.060 ly,8w 155.375 1TS644 182,326 191.42 201,014 211.065 SUBTOTAL 1,M &M 1.606^733 1, .846 1,362.17 1,619QM 1,MO,1110 1,721841 IAKT73 I mi11 1,11404,172 2,063,660 1161674 1306,606 Nd� `,Ca4N+111�*Ir•A�.dL'"/a ^u.Blrl c496d' -' 1i�kkaEA : 1.t11H5='". �i ;767.9Mrr::�"'�311ot,YrM�Kb61 s'�`6,$7+ko(6- 784.: ^:f. ":'P.'d''6YSiT�4 `::- 3,Y�Ye-Lxp'?.T�gpi;BK' CASH OUTFLOW FOR DEBT AND GHTAL Mbm1b F� C--dm 62a,655 SOM 82,506 66,125 57. 561 60,775 83,514 57,066 70.355 73573 77,566 Cp Mip6 35,115 3,195,760 4",000 250."0 250,006 250,"0 350.006 JSO,om 350,000 378,00) 375.060 3TS.m0 Sawa Tm6nm. Eywow✓Admb Buil�11 10,501,000 Ddl Serum Prapo..62m51.w. 64,658.74 331.132.60 331520.06 335. 320.00 3n525.00 33AMM 335.917.50 338,6n.S0 338,7n.50 516,31506 335290." Prap6. MV 1. WE+gt W. 915930 916,950 916,960 916,960 918,i6O 916,950 915,650 915,950 916,960 EA."CMW1 150. 668 363512 413.132 M,4 _ m1w 585.574 573.653 672.329 64061 674 ^661 574.581 674.861 574,851 SUSRDTAL 160.1184 M737 4.646^267 111N,6N 1224.622 2,22S,6M 2^231,096 1994W 1911,843 1948 ^166 2,373,AM 13711^666 1375,W BOND FROLT.EDS 3,071^717 11,OO ,ow TRANSFERS (57,000) (58.750) (80.000) (60,0DD) (50.000) (WOOD) 610,006) (60,000) (601ODO) (60,000) (80,000) (00,006) (80,OD0) 1N9LSFMIMTMCOML(Se.NMC1) - 7,149 25,750 28284 28,065 Min 23,524 21,803 .,018 19^515 17,010 15,519 14,018 CAlOY'LOW1 67P.77I6871.3 d;. 6R6 ,696-- :'.71116a6 11<1701,616 - -::t:m.lae .e:1:11r y-tae3keb`;3"J,eo6.ea ' r- 11m3A64^ 1.731:erkaa.ra3RtU3u en.33dd7e �- *ice °.: m4.ido e+e) NOTES: 1. G.pibl Mn1.0..1n.r6. M100184 CIP, Plea i2M^OOOP. M2006- M106M$MODOI^ MM11 2 B b 4.6um.d Rat Sa 6.aa bubn.r8 p11r14 X111 M M1P.9.M M 3067 w66mro.6 MM11 62606 6984.. S N I. 114.IIIa6 6163 9P6r11Rr.9 pp.b w111 Mm.w {846.000 P.r yur M 20011 .86rir6�n.rV pbM I..�.M.L L BplMlq In 200{, MvwMarlt M.en1. 14 6010 M Mb.wt V.YrIIM6. r.wMO en 0.. Man 4WN.M b tla 11p6.e 6MIr.. Pnpse05y Elms AUUtlala. N:VAMIa61.V98tlirv6M2o06 O6FLU's Nwvp6�rYm 7/20'20" San Sewer Chart 1 Page 1 City of Hutchinson, Minnesota Pre -Sale Report August 8, 2006 Proposed Issue: $2,210,000 General Obligation Water Revenue Bonds, Series 2006C Purpose: The bonds will finance the water improvements to be installed in the Highway 7 project and Denver Avenue, the Century Avenue elevated storage tank, and improvements related to the 2006 pavement rehab program. Term: The bonds will have a term of 15 years. Funding Sources: The bonds will be repaid with revenue from the water utility (user charges and connection fees). The Bonds will be secured with a general obligation pledge from the City of Hutchinson. As part of planning for the new water treatment facility, the engineers have indicated there will be a need to increase water rates through 2008. Ehlers & Associates' projections forecast that the capital improvements to be financed with the 2006C bonds as well as future improvements will necessitate rate increases beyond 2008. Please see attached memo. Schedule: City Council Pre -Sale Review: August 8, 2006 Distribute Official Statement: Week of August 14 Rating Agency Interview Week of August 14 Bond Sale: August 22, 2006 Awarded at regular City Council meeting. Estimated Closing Date: Week of September 18 Ehlers Contacts: Financial Advisors: Steve Apfelbacher (651) 697 -8510 Jessica Cook (651) 697 -8546 Bond Analysts: Diana Lockard (651) 697 -8534 Debbie Holmes (651) 697 -8536 Bond Sale Coordinator: Connie Kuck (651) 697 -8527 Attachments: Resolution authorizing Ehlers to proceed with bond sale Proposed Debt Service Schedule Memo on Water Rates • The Official Statement for this financing will be mailed to the Council Members at their home address for review prior to the sale date q(� L • Council Member 40 EHLERS & ASSOCIATES INC Resolution No. introduced the following resolution and moved its adoption: Resolution Providing for the Sale of $2,210,000 General Obligation Water Revenue Bonds, Series 2006C A. WHEREAS, the City Council of the City of Hutchinson, Minnesota, has heretofore determined that it is necessary and expedient to issue the City's $2,210,000 General Obligation Water Revenue Bonds, Series 2006C (the "Bonds "), to finance certain public improvements; and; B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ( "Ehlers "), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of Hutchinson, Minnesota, as follows: I. Authorization; Findings. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. 2. Meeting; Proposal Opening. The City Council shall meet at City Hall on August 22, 2006, for the purpose of considering sealed proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Council Member and, after full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this day of _ City Clerk • Prepared by Ehlers & Associates, Inc. • • Hutchinson, MN $2,21O,OOOG.O. Wafer Revenue Bonds,Series2OO6 Dated 09/09/20061 De]ivered 09/05/2006 Source Of Funds Per Amount of Bonds ..... ............................... Estimated Interest Earnings - Construction Uses Of Funds Total Underwriter's DLs nt Deposit to Project Construction Rounding Amount ...................... Total .Sn 0611..T99MW W krR I .AN4lLlLR/lUL i 71711r % l f 14f Ehlers & Associates, Inc. Leaders in Public Finance Sources & Uses MOM err $2,240,000.00 26,520.00 25,000.00 2,184,477.49 4,002.51 $2,240,000.00 Pape 1 q 16-) Hutchinson, MN • $2,210,000GO. Water Revenue Bonds, Senes2006 Debt Service Schedule Date Principal Coupon Interest Total P +1 Fiscal Total 09/05/2006 - 4.5768728% _ NetInterest Cwt ( NIC) ......................................................................................................._......................................... ............................... 4.7071200% 02/01/2007 - - 39,914.78 39,914.78 39,914.78 08/01/2007 - - 49,210.00 49,210.00 - 02/01/2008 110,000.00 3.950% 49,210.00 159,210.00 208,420.00 08/01/2008 - - 47,037.50 47,037.50 - 02/01/2009 115,000.00 4.000% 47,037.50 162,037.50 209,075.00 08/01/2009 - - 44,737.50 44,737.50 - 02/01/2010 115,000.00 4.050% 44,737.50 159,737.50 204,475.00 08/01/2010 - - 42,408.75 42,408.75 - 02/01/2011 120,000.00 4.100% 42,408.75 162,408.75 204,817.50 08/01/2011 - - 39,948.75 39,948.75 - 02/01/2012 125,000.00 4.250% 39,948.75 164,948.75 204,897.50 08/01/2012 - - 37,292.50 37,292.50 - 02/01/2013 130,000.00 4.300% 37,292.50 167,292.50 204,585.00 08/01/2013 - - 34,497.50 34,497.50 - 02/01/2014 1402000.00 4.400% 34,497.50 174,497.50 208,995.00 08/01/2014 - - 31,417.50 31,417.50 - 02/01/2015 145,000.00 4.450% 31,417.50 176,417.50 207,835.00 08/01/2015 - - 28,191.25 28,19125 - 02/01/2016 150,000.00 4.500% 28,191.25 178,191.25 206,382.50 08/01/2016 - - 24,816.25 24,816.25 - 02/01/2017 • 155,000.00 4.550% 24,816.25 179,816.25 204,632.50 08/01/2017 - - 21,290.00 21,290.00 - 02/01/2018 165,000.00 4.600% 21,290.00 186,290.00 207,580.00' 08/01/2018 - - 17,495.00 17,495.0 - 02/01/2019 170,000.00 4.650% 17,495.00 187,495.00 204,990.00 08/01/2019 - - 13,542.50 13,542.50 - 02/01/2020 180,000.00 4.700% 13,542.50 193,542.50 207,085.00 08/01/2020 - - 9,312.50 9,312.50 - 02/01/2021 190,000.00 4.750% 9,312.50 199,312.50 208,625.00 08/01/2021 - - 4,800.00 4,800.00 - 02/01/2022 200,000.00 4.800% 4,800.00 204,800.00 209,600.00 Total $2,210,000.00 - $931,909.78 $3,141,909.78 Ykld Statistics Leaders in Public Finance Page y qca-) BondYear Dollars ........................................................................................................................................................ ............................... $20,361.28 AverageLife ............................................................................................................................_............................... ............................... 9.213 Years AvengeCoupon.......................................................... ............................................................. ............. ...................................................... 4.5768728% NetInterest Cwt ( NIC) ......................................................................................................._......................................... ............................... 4.7071200% TrueInterest Cwt ( TIC) ......................................................................................................_......................................... ............................... 4.7299594% BondYield for Arbitrage Purposes ............................................................................................._........................................ ............................... 4.5618285% AllInclusive Cost ( AIC) ......................................................................................................_.........._........................... .._.............._............. 4.8911386% IRS Fonn 8038 NetInterest Cost................... _ ................................................... ............................... ...... _........................................................................ 4.5768728% WeightedAvenge Maturity ................................................................................................................................................ ............................... 9.213 Years . rc Sl.9.93 Wa fR I erAt'!L /i /! /t]¢' / 7171p " / 4.14M • Ehlers & Associates, Inc. Leaders in Public Finance Page y qca-) 0 • • OTo: From: W Subject: ,9M Date: Ken Merrill, Finance Director Steve Apfelbacher and Jessica Cook Water Rate Projections July 20, 2006 EHLERS & ASSOCIATES INC You have requested that Ehlers & Associates analyze the impact of planned improvements on the water rates for the City's water utility. The City's contract engineers have previously projected rate increases necessary to finance the construction and operations of the new water treatment plant and operations. Ehlers' review also includes improvements to the system undertaken in conjunction with road reconstruction projects, such as Highway 7 and Denver Avenue, and other improvements in the five - year Capital Improvement Plan. Assumptions ✓ Historically, the City has collected enough water revenue to fully fund depreciation. It is assumed that funding annual depreciation is the long -term financial goal for the water utility. ✓ The user fees will increase from 2005 -2008 as projected by the engineers. The total increase over those four years was projected to be 50% for residential customers, 52% for commercial customer, and 55.6% for industrial customers. The commercial and industrial customers will continue to pay less per 1,000 gallons than residential customers. ✓ Operating expenses will increase 5% per year. In addition operating expenses will increase $160,000 by 2008 to operate the new treatment plant, consistent with the engineers' estimates. ✓ Connection fees increase 5% per year. 3060 Centre Pointe Drive (651) 697 -6546 Fw (651) 697 -8555 Roseville, MN 55113 -1105 jcook@ehic s inc.com httpJ /w .thle aim.com q(0_� 0 • C1 Conclusions Based on the cashflow projection attached as Exhibit A, we conclude that the proposed water revenue increases in 2005 -2008 will not be sufficient to operate the system with a positive financial cashflow. The proposed revenue increases from the engineering report are 15% in 2006, 17% in 2007 and 17% in 2008. To achieve the City's primary requirement of operating the utility "in the black" and secondary goal of funding annual depreciation, the City has two options: Option 1: Continue to increase user charges by 25% in 2009, 20% in 2010 and 5% per year thereafter. Over time, the utility will restore its financial health. The water fund will experience two years of deficits in 2007 and 2008, totaling approximately $1.1 million. Option 2: Increase user charges above original estimates beginning in 2007. To keep the water utility in a positive cashflow position, the City would need to increase rates 50% in 2007, 20% in 2008, and 6% per year thereafter. Please note that we have evaluated the necessary increases in water revenue. Actual rate increases would depend on how the revenue increases are allocated between the different types of water customers. 3060 Centre Pointe Drive Roseville, h44 55113 -1105 (651) 697 -8546 Fm: (651) 697-8555 icaok@ehlem- tnc.com http://www.chlem-im.com 9tc) • 0 0 CITY OF HUTCHINSON FOR DISCUSSION ONLY Exhlblt A WATER UTILITY PROJECTION ErPenee IMa99n 5% 5% 5% 5% 5% S% 5% 5% O.05 0.05 0.05 C R1vu5t1 lnKWn 5% 5% 5% 5% 5% 5% 0% S% 5% 6% 5% Imeau on dirpea a. em it 10 17% fA1 m% tax 5% S% 5% 4% 4% AUDITED ACTUAL BUUOET EST EST ELT EST EST E8T ELT EST EST MI MS }Obi 3651 2006 2609 mm 2611 2012 9513 2014 2015 OPERATING REVENUES CturppbrS 1,270,410 1,374,740 1,516,500 1,052265 2,163,300 2741.125 3211,950 3.1/1,180 3,577,657 3.755.135 3,905,893 4,082,965 PYV Mva.hY 21AM 21.705 .21 000 25.510 .30.115 37651 45,217 47.478 49552 62345 5, 06.a16 SUBTOTAL t,m1,b" 1,354651 I'aw'm 1,6n,mo 21"4"9 2,741,606 3290,10 34"4,an 3,SVA0b 3.M.M 3,411,131 A.119,Bn NOKOPERATING REVENUES 8p9U8 Aiaaumenl3 1,188 1 609 Retie 19,665 19,600 2,000 21,000 22,050 23153 24,310 25,525 26,002 28,112 26,619 314027 COnrtllm Face - 125,563 56,015 5,000 60,565 99,225 101,150 165,386 111,065 120,809 1m,539 1311,571 135620 CNter limns 11690 6,851 MYK 9Ye 15000 15,750 15,535 17,341 15.233 19,1" 20,1D1 21,107 22.162 23,170 SUBTOTAL 1"'m tm,n6 126600 131,965 131,513 111,]65 151,636 165,636 167,512 116,a66 161,662 193,516 TOTAL REVENUES 1,119,T9a 1,63,m9 1.7m.boo 2,Om,m0 ;311,m2 2,56{.565 3,"2,106 3,511,211 3,?KSm 3.541.682 1,144513 43131M OPEMTNS OVEN656, /4/165 Nq dpmlYbn Pnnmel Senior 281, 160 335,920 316.731 3",065 362,271 N1,3 121,151 442526 161663 081,555 512260 537,091 Supplieq R.1®Od Mam9a00aa 00,a11 59,715 109,550 115,113 126,900 126,905 13382 139,957 Y15,955 151,26:1 1R401a 1n,115 Mrm0eeom E� ka Deprtcuion 40 19,250 26,213 2183 22.264 23395 21,568 25:n7 27,057 "."1 29,803 OHe $miaad COSbee 262337 m .m 219,726 230,7&1 212.302 251,117 267, 135 260,195 201,526 308206 321,708 ]10,913 hwuN Opcnma Eepc�fve NCwTwmmtPld 100,000 16,000 M.65 176,40 185,220 165, "1 201]05 214,415 225,136 SUBTOTAL 624.3]6 663,360 886,116 SJ,137 Sm,W 6740" 1.021.662 1."Zm 1.125,405 1,182 m 1,ml, 1,365,566 NY O6sY69.IYeaYiN Aa1916119w F.apRY:�1Dd5 ''. '.. -. &MASS 8'd5.025 �.: 1.03455/ CASH OUTFLOW FOR CAP AND DEBT OMa cwr9car 35.000 25,900 41.595 43,990 06.158 ",499 50.924 51,170 56,111 SS,950 Cpol lmpmrmimU PUtl MiIa COd 4216m 11,651 2,181,500 2X)665 260,000 1,10,000 350,000 3540,000 35,000 375,000 375,000 3n,650 WSar Taatmem -Te Sl3mfflm 2286,220 10,565600 5213,726 Deb S . Pr.po 2006 I.. 3,915 2OB,120 269,075 X",075 2016th 201896 21Y,555 m8,995 267,035 206,365 2005 PFAL 26,700 271,150 375,096 350. 349 308, 318 359,3.19 359.319 308,348 369,309 3 38D,319 2808 PFA LUn 702095 1,051,900 1,0516" 1.051,905 1651,905 1661,905 1,051,900 .mo i,O61,80a 1,061,908 Pmpmatl 200914w (15 y9�1 Y 5 5 %) S1n1 165,589 109,508 10,688 109,580 108,588 108,566 EAr V DaY 11,820 55,160 00.311 01.140 05,740 . 31,926 31,053 3O,tn 29,302 29,263 26,301 ?94405 SUBTOTAL 1 m 2,407,271 13,093,909 9677224 40"6/7 2,6n."3 21SZ908 2,151,411 41S46a6 9,"7,913 2. "a.1" 2,320.463 BOND 7ft C 2200,220 1 ;861,600 5,213,7n 1,165600 TRANS7EF5 157,04040) (58,700) (504000) (60665) (040.04040) (00,000) (65,000) (65,650) (50.000) (5919991 (59.995) (04697) RiVLRMPM DVCOME(See Nwa J) 08,030 117,710 2D,750 20241 26,555 25,182 23524 21,603 26,303 1S,Sm 17,3,1 16,6,1 734.586 "` 664726 :.'iU1F55a1 : �',:(56474DS� .: "�153,zi5'= ,:{667,012'' 'S14sn NOTEL: 1. Cryk01 NnPr9larnarrl 1969/! tl» Ci, P61a {954000 In 2606 and f340,000/7vr b 1910.201; MIaWq tllararbr. 2 Nb uwlnatl 21Y opwatlrp O9W wM h101vu"O,OWIn tlYed 11a4o001n2606far r 499bwR 40191/(/awe on Oe1�rsY9 utl61Wa) 3. 11191abrbrll BI ®5M b W %of 61Yrap Pa1'16mY rM91wtl an Ufa loin adv�mtl b tlM Ilgwr Yer9. 4. ErpYwn uW111M tl141amuY dapaYYbn wl9 MiiS0,oW bpMNrpFmOb. � Pr" by EHen A33WYn N:N6 \ r megeVM4iineaMl(BB [bEM9lw atl baspgaclipl 6711¢006 Water Chart 1 Projected Water Utility Cashflow 2006 -2015 Option 1 1,000,000 800,000 600,000 400,000 200,000 (200,000) (400,000) (600,000) (800,000) I i i .•ate Annual cashflow (before depreciation) Depreciation Page 1 2006 2009 2010 2011 2012 2013 2014 2015 �`Y ,+ �� a,.�?AS�*' -� 5*srx 36�� +Yry, as m ✓ �� � %�k ti�'�+�'x"`a'Ni�U� �,� v �^�'��v`r�'", N sl 5x �i4y Y �# V �" -a++lP to Nth Ai '" �.• $ vfy as Page 1 800,000 700.000 600,000 500,000 400,000 300,000 200,000 100,000 Water option 2 Chart 1 Projected Water Utility Cashflow 2006 -2015 Option 2 '006 2007 2008 2009 2010 2011 2012 2013 2014 201 Page 1 Annual cashflow (before depreciation) Depreciation �t :M s } `Y >s '006 2007 2008 2009 2010 2011 2012 2013 2014 201 Page 1 Annual cashflow (before depreciation) Depreciation ctcy of PUBLIC WORKS GROUP Engineering, Streets & Alleys, Water/Wastewater TO: Mayor and City Council FROM: John Rodeberg, Public Works Director Randy DeVries, Water/Wastewater Director RE: Consideration of Out -Of -State Travel by Water/Wastewater Director Randy DeVries (continued from July 25`h Council Meeting) DATE: August 1, 2006 At the last Council meeting we requested consideration for out -of -state travel by Randy to attend the Water Environment Federation Annual Technical Exhibition and Conference (WEF -TEC) from October 21't to 25th in Dallas, Texas. Questions were raised regarding previous out -of -state travel for Randy, based on the policy that allows attendance at out -of -slate conferences every other year (There was a question about whether or not he had been permitted to attend a conference last year). • Randy did request attendance at this same conference last year (at the July 12t, 2005 Council meeting). Although he had attended an out -of -state conference in 2004, and had not budgeted for this conference in 2005, one of the professional associations that he belonged to was going to pay the majority of his costs in lieu of his support and involvement at the conference. The Council denied Randy's request to attend the conference. Due to his commitment to the association, he utilized his own vacation time and paid for all extra costs in order to attend the Conference. This year, he would like to attend the conference sessions without the commitment of time and energy to the association. The estimated cost to attend the conference is $1,500 (Hotel: $500, Air: $289, Meals: $100, Transportation: $50 plus conference and other fees), and it is included in the Wastewater Travel Schools & Conferences budget for 2006. This conference directly supports Randy's continuing professional certification and includes sessions on biosolids, innovative technologies, MBR's (like the new proposed Wastewater Facility improvements), watershed management, TMDL's (Total Maximum Daily Loads to rivers, a new & controversial topic), automation, facility operations and other topics. It also includes a large exhibition of equipment and services related to the pollution control industry. Based on meeting the City's policy on attendance at out -of -state conferences, the inclusion of the conference and costs in the 2006 budget, and the direct benefit to Randy and the City of Hutchinson in his attendance and involvement /training at the Conference, we recommend this travel be • approved. Thank you! <<.(0 August 1, 2006 City of Hutchinson Public Works Department Maintenance Operations 1400 Adams St SE Hutchinson, MN 55350 Phone(320)234-4219 Fax(320)234 -6971 To: Honorable Mayor & City Council members From: Doug Johnson, Compost Facility Coordinator John Olson, Public Works Superintendent Subject: Shared Snow Removal Operations — Creekside & Public Works/Parks Creekside has the potential to provide a significant service to the community by partnering with Public Works/Parks for snow removal on City streets. The most significant contribution, by far, would be the use of a wheel loader. By using a Creekside wheel loader, the General Fund would not need to replace an existing 1985 wheel loader used for snow removal. The value of that replacement was estimated at $120,000. Equipment and personnel from Creekside will also have a significant positive affect on downtown snow removal operations by plowing curb cuts, parking lots, and smaller, tight areas ahead of larger wheel loaders. By plowing these areas with smaller equipment, the large Public Works/Parks wheel loaders can be used where they are most efficient. We propose that Creekside partner with Public Works/Parks for snow removal activities this winter, including these operations: 1. Creekside to provide a wheel loader for use by Public Works. The loader would be attached to a snow blower, used in downtown snow removal. The loader, whenever not being used by the snow blower, would be available to Creekside staff. 2. Creekside to provide at least one skid steer loader and operator, to assist Parks and Public Works staff clear corners of downtown parking lots, curb cuts, and other areas difficult for large wheel loaders to access. 3. Provided the hooklift is replaced, the large hook -lift truck used by Source Separated could be used to haul snow during any significant snow removal emergency not able to be managed using City- owned and contracted personnel/equipment. 4. Provide backup personnel to operate Parks/Public Works light trucks to perform snow removal on cul-de -sacs and dead -ends. 5. The City would purchase a 12' snow pusher for use at the Creekside facility using Central Garage funds. The snow pusher would also be available for use by Public Works/Parks staff for emergencies or when the attachment is available once Creekside operations are completed. • August I, 2006 • Mayor & City Council Doug Johnson, John Olson Page 2 During our discussions we identified that Creekside equipment and personnel would be available during the average 10 -15 snow events per season. Creekside operators would, be subject to callout provisions that other Maintenance personnel are subject to. Regarding compensation to cover the cost of using Creekside equipment and to compensate for personnel costs, the following fee schedule, which mirrors what is used for other interagency projects, would be used for winter 2006 -2007. Personnel = $30/hr. for regular time; $45/hr, for overt ime /premium time. Wheel loader = $70/hr. Heavy truck = $50 /hr. Skid steer loader = $25/hr. Creekside operators would prepare snow removal forms, just like Public Works /Parks employees use, identifying the operator, equipment, fuel, supplies & consmnables used during their operation. About the 20" of each month, Sonja would total the Creekside activity, and Doug and 1 would approve a memorandum to the Finance Department transferring the appropriate amount of money by month's end. This opportunity was generated primarily because of improvements to operations at Creekside over the last few years. This opportunity will save the City up to $120,000 by eliminating the need to replace a wheel loader. This opportunity will improve downtown snow removal operations. This opportunity provides some additional bench -depth to the snow removal crew without hiring additional staff. We recommend the City Council approve the cooperation between Creekside and Public Works/Parks for the upcoming 2006 -2007 snow removal season. iI L 9 C TO: Mayor & City Council FROM: John Rodeberg, Director of Public Works Kent Exner, City Engineer RE: Consideration of Consulting Agreement with Bolton & Menk for Regarding Construction Staking on the Highway 7 Project DATE: August 8, 2006 Bolton & Menk was originally contracted to only complete the construction staking work from Main St. to • the east end of the project, including Bluff/Adams Street and Main StreetrM 15, due to the complexity of the work and the lack of full- and - part-time City staff availability early in the construction season. We were going to look at our workload and staffing and consider whether to complete the remainder of the work in- house after that point. Due to being one staff member short (military duty in Iraq) and the remaining part- time help leaving for school and fulltime occupations shortly, we have proposed to extend the consulting agreement with Bolton & Menk. The consultant's work to date has been well above satisfactory, and is running below their original estimate. We recommend continuing with the current arrangement. Attached is the proposal provided by Bolton & Menk for completing the construction staking west ofTH 15 on an as- needed basis. The cost of providing these construction staking services for the westerly portion of the project is estimated to be 513,500. The costs of these services are accounted for within improvement project budgets and estimated fees. We recommend approving this consulting agreement with Bolton & Menk, Inc. cc: Crary Plotz — City Administrator �a(b� N • BOLTON & MBN K, Consulting Engineers & Surveyors 1960 Premier Drive • Mankato, MN 56001 -5900 Phone (507) 625 -4171 • FAX (507) 625 -4177 July 24, 2006 Attn: Kent Exner Hutchinson City Engineer 111 Hassan St. E Hutchinson, MN 55350 Re: TH 7 Improvements Dear Kent: Per Quinton's request I have prepared a scope of services and budget for the remaining construction staking services on the Trunk Highway 7 improvement through Hutchinson. Bolton & Menk, Inc.'s staff has posted approximately $10,000 in fees to the original contract, which was for the East end of the project's staking. Therefore, there is about $3,500 left in that budget. Bolton & Menk, Inc. puts a high priority on ensuring that our company's efforts are consistent with our clients needs. Please review the attached documents and contact me if this proposal does not meet your expectations. (This document will be emailed to you today.) If you accept all the terms defined on the attached pages please fax me a signed and dated copy of this document. Signature Sincerely, A' - Bolton & Menk, Inc. Janele Fowlds, L.S. Enclosures: Scope of Services and Budget (1 page) Terms of Proposal (2 pages) Fee Schedule (1 page) Date • I: \$MANAGEPR0P0SALSC0NST1JCr10N SIAKING20064MCHINSON TH 7 2ND PART.DOC MANKATO, MN • FAIRMONT, MN • SLEEPY EYE, MN • BURNSVILLE, MN • CHASKA MN • WILLMAR, MN • RAMSEY, MN • AMES. IA w .bonorHnenk.com An EcacY Opportunity Employer ('' N) SCOPE OF SERVICES AND BUDGET FOR CONSTRUCTION STAKING SERVICES Client: City of Hutchinson • Project: TH 7 Improvements DESCRIPTION OF PROPOSED PROJECT Watermain and Sanitary Sewer Improvements on the West end of MNDOT Project No. 4302-44 (T.H. 7) to T.H. 15 SCOPE OF WORK Bolton and Menk, Inc. (BMI) will complete the following scope of work: • Watermain Staking (5 trips to site — 50 hours allotted) • Set one set of stakes indicating the offset positioning for watermain at 100' increments • Set one set of stakes indicating the structures, services and hydrants for the watermain Sanitary Sewer Staking (5 trips to site — 50 hours allotted) • Set one set of stakes indicating the offset positioning for sanitary sewer at 100' increments • Set one set of stakes indicating the structures and services for the sanitary sewer ASSUMPTIONS This proposal is based upon the following assumptions: A. Bolton & Menk, Inc. budgeted time for the field crew to make 10 trips (100 hours) to the job site for the above defined construction staking. It is expected that the field crew will have a full days work on the project (10 hours per day - including travel time) for each staling request. B. Bolton & Menk, Inc. budgeted 12 hours of an office survey technician's time to prepare the • staking drawings and budgeted 7 hours for supervision/project management time. C. Staking is proposed on a "one time" basis. Other contractors and subcontractors are to protect all stakes until the staked facility has been completed and the stake is no longer roquired. Control points shall be protected throughout the project. Any replacing of lost or obliterated stakes will be considered re- staking and billed in accordance with Bolton & Menk, Inc.'s standard schedule of fees. FEES The fees to provide the above work will be billed hourly, in accordance with Bolton & Menk, Inc.'s standard schedule of fees, with the total estimated costs of. S 13,500.00 Additional Services will be provided on an hourly basis in accordance Bolton & Menk, Inc.'s standard schedule of fees. SCHEDULE Bolton & Menk, Inc.'s scheduling policy is that we will make every attempt to have a survey crew on site within 2 working days of a construction- staking request. • 1 ac-6) Version 11- 30 -99/CS • Terms of Construction Staking Proposal Bolton & Menk, Inc. This accompanying Proposal (hereinafter referred to as "Proposal") is subject to the following terms and conditions. These Terms of Proposal (hereinafter referred to as "Terms") are an Integral part of the Proposal as If stated directly therein. No change or deviation from these Terns will he binding without the written approval of Bolton & Menk, Inc (BM I). Such changes may require an adjustment in the proposed fee, schedule or scope of Proposal A. Services: BMl proposes to perform the services outlined in the Proposal for the stated fee arrangement. Restalong, verification of plans prepared by others and changes required by the Client or other controlling entities (regulatory agencies, contractors, subcontractors, etc.) from the scope or schedule of services described in the Proposal shall be considered "Additional Services" and will be invoiced on an hourly basis in addition to the stated fee arrangement. B. Information from Client: Unless otherwise stated, Client agrees to provide BMI with all site information necessary to complete the proposed services. This information includes current site property descriptions (from abstract, title opinion or title commitment) and other legal documents affecting site; a complete set of the project construction plans; copies of previous surveys, maps, engineering studies and plans; existing or required soils and geotechnical reports; governmental, regulatory and utility reviews and determinations; and all other pertinent information. BMI is entitled to rely upon the accuracy of the construction plans and accepts no responsibility for undetected errors in plans prepared by others. Client shall promptly inform BM of any alleged defects in services provided by Blvll. C. Access to Site: Unless otherwise stated, Client agrees to provide BMl with access to the site, including adjoining properties, for activities necessary for the performance of services. It is understood that in the normal course of work, • property damage may occur due to excavations, tree and brush trimming, marking lines, etc. The cost to correct resulting damages has not been included in the fee. BMI will take precautions to minimize damage due to these activities and the Client agrees to reimburse BMI for any toss associated with required restoration work D. Standard of Care: Professional services provided under this Agreement will be conducted in a marmer consistent with that level of care and skill ordinarily exercised by members of BMI's profession currently practicing under similar conditions. BIM makes no expressed or implied warranty with respect to its undertakings described herein. E Certifications: Any certification provided by BMl is a professional opinion based upon knowledge, information and beliefs available to BM at the time of certification. Such certifications are not intended as and shall not be construed as a guarantee or warranty. BM shall not be required to certify the existence of conditions whose existence BNII cannot reasonably ascertain. F. Construction Supervision: This Proposal assumes that the Client will maintain supervisory personnel for the control of the project. Client's supervisory personnel shall be empowered to authorize staking and additional services. Client is responsible for providing coordination of all staking requests from owner, other contractors, subcontractors, architects, etc. and any interpretation of plans, conflicts, dimensions, and other unresolved construction matters required for completion of staking services. Client shall promptly advise BMI of any addendums, change orders, field changes, shop drawings or other documents affecting the location of improvements to be staked. BMl shall not be responsible for the means, methods, techniques or procedures of construction selected by any contractor employed on the project nor for the safety precautions or programs incident to the work of any contractor. G. Ownership and Alteration of Documents: All documents, including reports, specifications, drawings, field data, notes and documents or electronic media prepared or furnished by BMl under this agreement shall remain the property of BMI. The Client may make and retain copies for its use in connection with this project. However, such documents are not intended for reuse by the Client on any other project or alteration of the project by others without the written consent of BM. Electronic media may be furnished for convenience of Client; however, only signed and certified hard copies of submittals may be relied upon as documentation of professional services provided. • Page I of 2 - Terms of Proposal 0b) l • Terms of Construction Staking Proposal Bolton & Menkc, Inc. (Continued) I- Billings and Payments: Invoices for BMl's services shall be submitted, at BMl's option, either monthly or upon completion of such services. Invoices are due and payable within 30 days after the invoice date. If the invoice is not paid within 30 days, BMI may, without waiving any claim or right against the Client, and without liability whatsoever to the Client, terminate the performance of its services. I. Late Payments: Accounts unpaid 30 days after the invoice date will be subject to a monthly service charge of 18% on the unpaid balance. If any portion or all of an account remains unpaid 90 days after billing, the Client shall pay all costs of collection, including reasonable attorney's fees. J. Lien Waivers: Upon request, BMI will provide lien waivers on industry standard forms for payments received. Lien waivers will not be issued in advance of receipt of payment or for balances owed. K. Termination of Services: The Client may terminate this agreement or BMI should the other fail to perform its obligations hereunder. In the event of termination, the Client shall pay BMI for services rendered to the date of termination, all reimbursable expenses, and reimbursable termination expenses. L. Certificates of Insurance: BMI will maintain, at its expense, statutory worker's compensation insurance coverage and such general liability insurance coverage for claims arising for bodily injury, death or property damage which may arise from the negligent performance by BMl or its employees of its general business activities, including automobile use, and exclusive of any professional services included in the Proposal. BMI will, upon request, furnish Certificates of Insurance documenting terms of coverages. BMI will not be required to extend coverages beyond those, which are usual and customary for similar firms practicing construction staking unless it is reimbursed for additional premium • expenses M. Limitation of Liability: In recognition of the relative risks, rewards and benefits of the project to both the Client and BMI, the risks have been allocated such that the Client agrees that, to the fullest extent permitted by law, BMI's total liability to the Client for any and all injuries, claims, losses, expenses, damages or claimed expenses arising out of the performance of this agreement from any cause or causes, shall not exceed S 13.500.00 . Such claims include, but are not limited to, BMI's negligence, errors, omissions, strict liability, breach of contract, or breach of warranty. r1 U N. Dispute Resolution: Any claims, with the exception of claims by BMI for non - payment of services rendered, or disputes made during or after the performance of services between BM1 and the Client and its contractors, subcon- tractors, suppliers, shall be submitted to mediation and/or arbitration. O. Withdrawal of Proposal: This Proposal constitutes a non - binding offer to perform services and BMI reserves the right to withdraw or modify this proposal, without liability to the Client, at any time prior to receipt of written acceptance from the Client and execution of a signed agreement in accordance with Paragraph P. P. Agreement: If the Proposal is accepted, the Client and BMl may enter into and execute an Agreement incorporating the Proposal, these Terms and such additional terms and conditions as may be mutually acceptable to BMI and Client. Upon request by the Client, BMI may, at its sole discretion and for the benefit of the Client, proceed with any proposed services prior to execution of a written agreement. In the absence of a executed written agreement, the accompanying Proposal and these Terms of Proposal shall constitute the whole and complete agreement between BMI and the Client- Page 2 of 2 - Terms of Proposal 1LCb� Wi • n U BO LTON & NA E N K If Consulting Engineers & Surveyors 1960 Premier Drive • Mankato, MN 56001 -5900 Phone (507) 625.4171 • FAX (507) 625 -4177 I NC_ The following Schedule of Fees is based upon competent, responsible engineering and surveying services and is the minimum, below which adequate professional standards cannot be maintained. It is, therefore, to the advantage of both the Professional Engineer or Surveyor and the Client, that fees be commensurate with the service rendered 2006 Hourly Billing Rates Principal Engineer / Surveyor ..................... ..................5120- 175/Hour Associate Engineer /Surveyor ......... ............................... 545- 135/Hour Project/Design Engineer ............................ ...................555- 125/Hour Licensed Surveyor ...... ............................... ...................570- 130/1-lour Project Surveyor .......... ............................... ....................550- 90/Hour Senior Technician ....... ............................... ...................555- 120/Hour Technician ................... ............................... ....................540- 90/Hour Clerical ............................................ ............................... 530- 85/Hour GPS/Robotic Survey Equipment ................. ....................$45- 80/Hour AutoCAD /Computer Time .................. ............................... No Charge Office Supplies ..................................... .............................No Charge Photo Copying/ Reproduction .............. ............................... No Charge Field Supplies/Survey Stakes & Equipment ....................... No Charge Mileage................................................. .............................No Charge Charges are based on hours spent at hourly rates in effect for the individuals performing the work. The hourly rates for Principals, Senior Associates, Associates and members of the staff vary according to skill and experience. The Schedule of Fees shall apply for the period through December 31, 2006. These rates may be adjusted annually thereafter to account for changed labor costs, inflation or changed overhead conditions. These rates include labor, general business and other normal and customary expenses associated with operating a professional business. Unless otherwise agreed, the above rates include vehicle and personal expenses, mileage, telephone, survey stakes and routine expendable supplies; and no separate charges will be made for these activities and materials. Expenses beyond the agreed scope of services and non- routine expenses, such as large quantities of prints, extra report copies, out - sourced graphics and photographic reproductions, document recording fees, outside professional and technical assistance and other items of this general nature, will be invoiced out separately. Rates and charges do not include sales tax, if applicable. When it is possible to accurately define the scope of the project and the engineering services to be performed, a lump sum may be agreed upon for total compensation. MANKATO, MN • FAIRMONT, MN • SLEEPY EYE, MN • BLHNISVILLE, MN • CHASKA MN • WILLMAR, MN • RAMSEY, MN • AMES, IA w .bottorrmenk.com •. ��� i TO: Mayor and City Council FROM: John Rodeberg - Public Works Director RE: Review of HATS Facility Needs DATE: August 2, 2006 We have been talking with the Council for some time about some of the capital needs and requests that our department is facing, including among them, the needs at the HATS Facility. This spring, the HATS Joint Powers Board invited Pat Murphy, a retired Mn/DOT State Aid engineer, now representing the University of Minnesota's Center for Transportation Studies, Local Technical Assistance Program, to review operations at the HATS Facility. Mr. Murphy has always been aware of the HATS Facility, and was eager to help the Joint Powers Board identify any issues and propose potential improvements. Mr. Murphy met with members of the HATS Joint Powers Board, then proceeded to interview representative groups of employees, including supervisors, mechanics, maintenance operations staff, office staff, and • engineering and construction staff. Many of the changes that have taken place at HATS over the last ten years were reviewed. He also took a look at how HATS operations are governed and the culture of the employees who work at HATS. After interviewing staff groups, Mr. Murphy gathered the Joint Powers Board and other partner agency leaders, to make his verbal report. Gary Plotz, City Administrator, was able to attend. Later, he followed up with a written report, attached for your reference. In his report, Pat states recognized the need for additional vehicle /equipment storage. He states, "...The state constructed additional cold storage on the site in the recent past and the city and county are in the process of developing plans to provide storage for each of their needs in the area adjacent to the salt storage. This appears to be a necessary and reasonable solution to the existing problem.... It is recommended that the city and county proceed as expeditiously as possible with their plans for additional storage." This report, along with other information gathered by staff, will help frame additional discussion about the capital needs at the HATS Facility. 0 ,d(c) excellent job of being responsive to each agency's changing needs while keeping the facility functional and the partnership healthy. Culture of the Facility: The most impressive perception of my visit was the high degree of collaboration and partnering taking place among the workers involved both with equipment/vehicle repair and with equipment operation in the field. These were the groups for which the facility was originally created and many have been there since the beginning. Both groups consist of city, county and state employees who recognize that their primary responsibility is maintaining the equipment or roads under their agency's jurisdiction. The members of both groups have a strong feeling of pride and ownership in belonging to this unique partnership. They understand the fact that they work for different agencies and therefore some of their rules, procedures, etc. will differ from each other. They respect the various differences and are each committed to working well together. The amount of knowledge transfer that takes place among the mechanics and among the equipment operators is very high. Also, although each agency is primarily involved in doing work on their own equipment and roads, they do collaborate on solving problems. While the three agencies have apparently historically helped each other out on specific projects or jobs where appropriate, all parties interviewed said that the increased communication possible by using a shared facility makes it easier for each agency to be most effective. The synergy that exists is evident and is an excellent example of the total exceeding the sum of the parts. This undoubtedly did not happen by accident. It surely is the result of an effort involving the managers and supervisors encouraging this partnering • culture among the employees. It could not have happened without a joint facility and it probably could not have happened without the unique partnering structuring which exists to manage the facility. While the state has had engineering and construction personnel in the facility for several years, they have not had their city or county counterparts at the same facility as is the case for the maintenance personnel. This will change when the county highway engineering and construction functions move into the new addition. This will provide a perfect opportunity to develop working relationships between state and county engineering and construction employees that can lead to the same collaborative and partnering culture which currently exists with the maintenance function. Again, it may not happen by itself and will almost certainly require active support, encouragement and empowerment on the part of managers, supervisors and employees. Physical Plant Needs: The four major changes cited earlier in this report have had two noticeable impacts on the operation of the facility. These changes have reduced the space available for equipment and vehicle storage and have increased the storage needs. Based on anecdotal information obtained during the 10 interviews, this problem has become very serious during the winter snow removal season. This will become even more of a problem when the county moves its engineering and • construction function because of the additional support vehicles to be accommodated on the site. All of the storage needs do hot require warm storage and can be handled in cold, or preferably temperate storage. The state constructed additional cold storage on the site in the recent past and the city and county are in the process of developing plans to provide storage for each of their needs in the area adjacent to the salt storage. This appears to be a necessary and reasonable solution to the existing problem. Once those facilities are constructed , it will be important to review and perhaps modify current policies in regard to where particular equipment is stored in order to protect the warm storage for those uses which most require warm storage. It is recommended that the city and county proceed as expeditiously as possible with their plans for additional storage. The other impact is probably best described as an inconvenience at the present but will likely become more serious when the county highway engineering and construction function moves into the building. This relates to the adequacy of restroom, locker, lunchroom and meeting room facilities. The additional employees using the facility will likely make this more than an inconvenience. At the present time, the meeting rooms can serve as a relief valve to the small lunchroom when they are not being used. The new functions in the building will not only increase the demand for restroom and lunchroom space but will also increase demand for meeting space, thereby reducing the use of meeting room space as a relief valve. The JPB is currently discussing various approaches to relieve this problem. In my experience these space uses are very "personal" to • employees and care must be taken to develop desirable space that will serve the need well for the long term, or the excellent employee morale which seems to exist today may deteriorate. Preparing for the Future: My review of HATS after its first ten years of operation was relatively brief, but I can say with certainty that this unique partnership for what was initially a shared maintenance facility has been successful. The collaborative culture which exists among the personnel in the maintenance operation is impressive and I believe it can be repeated when both the county and state engineering/construction are located there. The JPB has been successful in accommodating the changing needs of the three agencies on the site. The past few physical changes were not for joint uses and were financed by the respective agency using the new space, which meant that joint financing did not become an issue. Based on my discussions with you, I can see where it is becoming increasingly difficult to arrange financing for any major joint facility costs. With the three agencies having different revenue bases, and the state particularly needing to rely on legislative approval for any major capital building expenditures, coordinating a major joint development will be difficult. Fortunately, it appears that solutions for the storage and common usage area problems described earlier are of a magnitude that financing can be arranged and that will meet at least the essential needs for the near future. However, I cannot help but believe that it will not be too many years before the JPB will be faced with the need to consider • some major joint use project on the site. One possible example would be creating a more O(0 effective and efficient equipment repair facility, which has been studied in the past and • determined not to be attainable at the present time, primarily because of financing constraints. I believe there are some things that the JPB could do during the next couple of years that might make it easier to deal with major joint use project needs that may surface in the future. *Re- affirm, and possibly redefine the common purpose of HATS to the three agencies. It seems to me that with the additional or expanded functions that have taken place during the first ten years, that the facility fulfills far more than the role of a joint maintenance for each of the partners. I would think that at this stage, each of those three statements would be somewhat different from each other. The three agencies should then pull out the common threads from all of them to develop a common statement which could be used to reaffirm the benefits of this unique partnering arrangement while reflecting a broader use perspective than existed when the facility was first proposed. I believe this exercise would be a valuable renewal process to prepare for the next 10 to 15 years. *Since I believe you will be faced in the next several years with the need to consider some major joint project on the site, I suggest that you take some time to explore various joint financing methods. You can do a more comprehensive job of exploring various alternatives ( and exploring think outside of the box ideas) when you are not faced with an imminent project that requires decisions on a tight timetable. In this way you will be better prepared to deal with your next major joint facility need. Conclusion: I enjoyed the opportunity to review the HATS operation after its first ten years. It is truly a unique and very effective partnering arrangement which has been of real benefit to the agencies involved and to the constituency of each agency. I hope that this report will be of value as you embark on your next ten years of successful partnership. • lbcc� 0 • TO: Mayor & City Council FROM: Melissa Starke DATE: August 3, 2006 SUBJECT: Dangerous Animal Designation Appeal Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350-2522 320- 557.5151/Fa 320-2344240 As noted, a dog owned by David Freund has been designated by the City of Hutchinson's Animal Control Officer as a dangerous animal due to the dog biting an individual causing injury requiring medical attention. Per Hutchinson City Code, the dog owner has the right to appeal this designation and have a hearing in front of the City Council. On July 28, 2006, I spoke with David Freund who indicated that he wished to appeal this dangerous animal designation and requested that the City Council set a hearing date to discuss the matter. The hearing must occur within three weeks of the appeal date, or in this matter, by August 18, 2006. Primed on recycled paper - ,acs) • July 13, 2006 David Freund 405 Erie St. SE Hutchinson. MN 55350 Re: Dangerous Dog Designation Order Dear Mr. Freund: Police/Emergency Management Services 10 Franklin Street SW Hurchln , MN $5350 -2464 320- 587.2242/Fax 320 -587 -6427 Be advised that the Hutchinson Police Department has been made aware of an incident involving your dog that occurred on June 29, 2006, at approximately 3:23 p.m. at your residence. Because of your dog biting an individual causing injury requiring medical attention, your dog has been declared a dangerous animal. You have 14 days from the receipt of this letter to appeal this order. If you appeal this order, a hearing will be held within three weeks before the City Council. After hearing the evidence at the hearing, the City Council may order the following: 1. Seizure and destruction of the animal. • 2. The animal be kept in a proper enclosure. 3. Signs posted at the front and rear of your residence including a warning symbol to inform children that there is a dangerous animal as specified in Minnesota Statute §347.51. 4. Provide and show proof annually of public liability insurance in the minimum amount of $300,000. 5. If the animal is outside its proper enclosure, the dog must be muzzled and restrained by a chain or leash not lass than six feet in length and under the restraint of someone not under the age of 16. 6. The dog must have an easily identifiable standardized tag identifying the dog as a dangerous animal affixed to its collar at all times as specified in Minnesota Statute §347.51. 7. The dog shall have a microchip implanted as provided by Minnesota Statute §347.51. a. The dog shall be registered with McLeod County authorities as a dangerous animal. If you fail to appeal this order, this agency may seize and destroy the animal. Should you have any questions, please contact our office at 320-587 -2242. Sincerely, HUTCHINSON POLICE SERVICES Robert Loehrer Animal Control Officer • Pnmed on wycled paper - a)