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cp10-11-2006 c e AGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL WEDNESDAY, OCTOBER 11,2006 1. CALL TO ORDER-5:30P.M. 2. INVOCATION -Rev. Jim Hall, Word of Life Church 3. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS 5. MINUTES (a) REGULAR MEETING OF SEPTEMBER 26, 2006 Action - Motion to approve as presented tit 6. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM AUGUST 28, 2006 2. HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY BOARD MINUTES FROM AUGUST . 25, 2006 3. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR AUGUST 2006 e 4. HUTCHINSON FIRE DEPARTMENT MONTHLY REPORT FOR SEPTEMBER 2006 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 1305] - RESOLUTION AUTHORIZING CHANGE TO ADDRESS OF CORNERSTONE COMMONS FROM 104 MAIN STREET NORTH TO 114MAIN STREETNORTH 2. RESOLUTION NO. 13052 - RESOLUTION FOR PURCHASE (COMPOST BAGS AND SCREENING) 3. ORDINANCE NO. 06-0445 - ORDINANCE V ACA TING DRAINAGE AND UTILITY EASEMENTS LOCATED BETWEEN LOTS 4 AND 5, BLOCK 1, FAIRWAY ESTATES SECOND ADDITION (1376 AND 1380 HERITAGE AVENUE) WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (SECOND READING AND ADOPTION) (c) CONSIDERATION FOR APPROVAL OF CURRENCY EXCHANGE LICENSE RENEWAL FOR W ALMART (d) CONSIDERATION FOR APPROVAL OF SHORT -TERM GAMBLING LICENSE FOR VFW POST 96 ON OCTOBER 26, 2006, AT VFW (e) REAPPOINTMENT OF CHUCK BRILL TO AIRPORT COMMISSION TO SEPTEMBER 2011 (f) APPOINTMENT OF LA VONNE HANSEN TO HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD TO AUGUST 2011 (g) CONSIDERATION FOR APPRO V AL OF IMPROVEMENT PROJECT CHANGE ORDERS - CHANGE ORDER NO. ] - EVENT CENTER CANOPY (LEITING NO. ] 0, PROJECT NO. 06-] 2). - CHANGE ORDER NO.1 - CENTURY A VENUE WATER TOWER RECONDITIONING (LEITING NO.8, PROJECT NO. 06-10) CITY COUNCIL AGENDA - OCTOBER 11, 2006 - CHANGE ORDER NO.6 - DOWNTOWN STREETS CAPE (LETIING NO.4, PROJECT NO. 05-04 & 05-05) . . a (h) CONSIDERATION OF ITEMS REGARDING REVERSE OSMOSIS MEMBRANE ELEMENT PROJECT ,., (LEITING NO. 15, PROJECT NO. 06-17) - ORDERING IMPROVEMENT AND PREP ARA TION OF PLANS & SPECIFICATIONS AND APPROVING PLANS & SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS (i) CONSIDERATION FOR APPROVAL OF ASSESSMENT ROLL - DOWNTOWN STREETSCAPE (LETTING NO.4, PROJECT NO. 05-04 & 05-05) - DECLARING COST TO BE ASSESSED & ORDERING PREPARATION OF PROPOSED ASSESSMENT - WAIVING HEARING ON PROPOSED ASSESSMENT - ADOPTING ASSESSMENT ROLL U) CONSIDERA TIONFOR APPROVAL OF PRE-APPLICATION TO THE SMALL CITIES DEVELOPMENT PROGRAM OWNER-OCCUPIED REHABILITATION PROGRAM Action - Motion to approve consent agenda 7. PUBLIC HEARINGS - 6:00 P.M. - NONE 8. COMMUNICATIONS, REQUESTS AND PETITIONS (a) PRESENTATION ON HARRINGTON-MERRILL HOUSE - JIM FAHEY No action. (b) PRESENTATION ON RESULTS OF EMPLOYEE SATISFACTION SURVEY - BRENDA EWING e No action. (c ) UPDATE ON COUNCIL CHAMBER IMPROVEMENTS - TOM KLOSS No action. 9. UNFINISHED BUSINESS (a) ORDINANCE NO. 06-0440 - AN ORDINANCE ESTABLISHING A PROCEDURE FOR ENFORCING ADMINISTRATIVE PENAL TIES FOR CERTAIN PETTY MISDEMEANORS AND MUNICIPAL CODE VIOLA TIONS (SECOND READING AND ADOPTION) Action - Motion to reject - Motion to approve (b) CONSIDERATION FOR APPROVAL OF DOCUMENTS RELATED TO RETIREMENT SAVINGS ACCOUNT PROGRAM Action - Motion to reject - Motion to approve 10. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF AUTHORIZING A LEVY ON BEHALF OF THE HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY Action - Motion to reject - Motion to approve e (b) CONSIDERATION FOR PROVIDING NOTICE OF OPEN ENROLLMENT FOR CITY OF HUTCHINSON TOWING SERVICES AND ESTABLISHING GUIDELINES OF ELIGIBLITY FOR OPEN TOWING Action - Motion to reject - Motion to approve 2 CITY COUNCIL AGENDA - OCTOBER 11, 2006 a (c) CONSIDERATION OF SETIING DATE FOR CANVASSING RESULTS FROM CITY GENERAL _ ELECTION TO BE HELD ON NOVEMBER 7, 2006 ' Action - Motion to reject - Motion to approve ( d) CONSIDERATION FOR APPROV AL OF AMENDMENT TO ENGINEERING SERVICES CONTRACT WITH DONOHUE & ASSOCIATES Action - Motion to reject - Motion to approve (e) CONSIDERATION FOR APPROVAL OF RESOLUTION ESTABLISHING MUNICIPAL AID (MSA) STREETS Action - Motion to reject - Motion to approve (f) CLOSED SESSION UNDER MINNESOTA STATUTE 13D.05, fUBD. 3(C) TO CONSID~ PROPERTY ACQUISITION (146 MAIN STREET NORTH, ]45 2" AVENUE SE AND 115 2 AVENUE SE) Action - 11. MISCELLANEOUS (a) COMMUNICATIONS 12. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS 13. ADJOURN . e e .., ,) MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDA Y, SEPTEMBER 26, 2006 _ CALL TQ QRDER - 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Kay Peterson, Jim Haugen, Casey Stotts and BillArndt. Others present were Gary Plotz, City Administrator, John Rodeberg, Director of Public Works and Marc Sebora, City Attorney. 2. INVOCATION - Due to the absence of Rev. Kevin Oster, Our Savior's Lutheran Church, the invocation was dispensed. 3. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS 5. MINUTES (a) REGULAR MEETING OF SEPTEMBER 13,2006 (b) BID OPENING MINUTES OF SEPTEMBER 19,2006 (SOUTH MILL POND & PISHNEY AREA TRUNK SANITARY SEWbR LINING) Motion by Peterson, second by Stotts, to approve the minutes as presented. Motion carried unanimously. 6. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM JULY 24, 2006 2. CITY OF HUTCHINSON FINANCIAL REPORT FOR AUGUST 2006 e e 3. CITY OF HUTCHINSON INVESTMENT REPORT FOR AUGUST 2006 4. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM AUGUST ]5,2006 5. PLANNING COMMISSION MINUTES FROM AUGUST 15,2006 (b) RESOLUTIONS AND ORDINANCES ]. RESOLUTION NO. 13042 - RESOLUTION FOR PURCHASE (SWITCH UP GRADE CITY CENTER & POLICE) 2. RESOLUTION NO. ] 3043 - RESOLUTION CALLING FOR REDEMPTION OF OUTSTANDING GENERAL OBLIGATION IMPROVEMENT BONDS 3. RESOLUTION NO. 13049 - RESOLUTION REQUESTING PRESERVATION OF CURRENT FUNCTIONAL CLASSIFICATION OF STATE HIGHWAY 7 (c) PLANNING COMMISSION ITEMS 1. CONSIDERATION OF V ACA TION OF DRAINAGE AND UTILITY EASEMENTS LOCATED BETWEEN LOTS 4 AND 5, BLOCK 1, FAIRWAY ESTATES SECOND ADDITION (1376 AND 1380 HERITAGE A VENUE) WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDA T10N (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. 06-0445 FOR OCTOBER] ], 2006) (d) CONSIDERATION FOR APPROV AL OF IMPROVEMENT PROJECT CHANGE ORDER - CHANGE ORDER NO. I - DENVER A VENUE SE (LETTING NO.3, PROJECT NO. 06-03) 5lc0 e CITY COUNCIL MINUTES - SEPTEMBER 26. 2006 (e) CONSIDERATION FOR APPROVAL OF PARTNERSHIP CONTRACT WITH THE STATE OF MINNESOTA (MN/DOT) e (f) CONSIDERATION FOR APPROVAL OF CONSULTING AGREEMENT AMENDMENT WITH SRF CONSULTING GROUP FOR SCHOOL ROAD PEDESTRIAN UNDERPASS DESIGN SERVICES (LETIING NO.1, PROJECT NO. 06-16) (g) CONSIDERATION FOR APPROVAL OF PLANS & SPECIF1CATIONS AND ADVERTISING FOR BIDS FOR HATS COLD STORAGE FACILITY (LEITING NO. 14, PROJECT NO. 06-16) (h) CONSIDERATION FOR APPROVAL OF ACCEPTING BIDS FOR THE SOUTH MILL POND TRUNK SANITARY SEWER LINlNG (LETTING NO.4, PROJECT NO. 06-04) (i) CONSIDERATION FOR APPROVAL OF CONTRACTOR CHANGE ORDER NOS. 8 AND 11 FOR WATER TREATMENT PLAN U) CONSIDERATION FOR APPROVAL OF PLANS & SPECIF1CA TIONS AND ADVERTISING FOR BIDS FOR W ASTEW A TER TREATMENT F AC1LITY ADMINISTRATION BUILDING EXPANSION (LETIING NO. 12, PROJECT NO. 06-14) Items 6(b)2, 6(b)3, 6(f), 6(i), and n(j) were pulled [01 separate action. Motion by Haugen, second by Arndt, to approve consent agenda with the exception of the items noted above. Motion carried unanimously. Item 6(b)2 had further discussion. Ken Merrill, Finance Director, presented before the Council. Mr. Menill explained the bond calls and recommended that the 1996 & 1997 bonds be redeemed and preserve the] 998 bond calls for cash for other projects. _ Motion by Stotts, second by Haugen, to approve redeeming bonds for ] 996, 1997 & 1998, adopting _ Resolution No. 13043. The reserves from 1996 & 1997 will be used to pay the deficit. Item 6(b)3 had further discussion. John Rodeberg, Public Works Director, presented before the douncil. Mr. Rodeberg explained that the City of Montevideo had requested support for designation of Hwy 7 between MonteVIdeo and the Twin Cities. Mn/DOT is considering downgrading the functional classification. Montevideo is requesting that Hutchinson support that the current classification be I~ft intact. 'I 1 Motion by Arndt, second by Peterson, to approve Resolution No. 13049. Motion carried unanimously. Item 6(f) had further discussion. John Rodeberg explained that this contract is for the remaining work for design services for the School Road pedestrian underpass. Kent Exner, City Engineer, explained that some additional costs will be incurred as part of this contract. These include increased project development efforts, expanded project scope, and significant agency coordination and identified bid/su~plemental agreement document requirements. This contract is for a not-to-exceed fee of$]69,000. John Rodeberg explained State Aid routes and how state aid funds can be used. ' Motion by Stotts, second by Peterson, to approve consultin~ agreement with SRF for design services for Hwy 7 pedestrian underpass. Kent Exner updated the CounCIl on the activities taken on this project thus far. These Include receiving variances from the State for the radius and meeting with the Heritage Center regarding landscaping and location of the trail. Motion carried unanimously. Item 6(i) had further discussion. John Rodeberg noted that on Change Order No. ] ], the cost was reduced from $31,000 to $] 3,000. There will be no time extension on the project as the contractor had proposed. Motion by Haugen, second by Arndt, to approve Item 6(i). Motion carried unanimously. Item 60) had further discussion. John Rodeberg noted that stafTis currently looking at alternates to the bid, but not looking at reconstructing the entire design. Council Member Stotts suggested that staff look at the cost of a detached garage as opposed to the attached garage that is part of the design. John Rodeberg noted that staff has considered this, but there is virtually no cost savings between the two. Council Member Stotts suggested looking at constructing a pole-shed-type, stand-alone garage, as compared to an attached block 2 5Lc0 CITY COUNCIL MINUTES - SEPTEMBER 26, 2006 e garage. John Rodeberg noted that could be considered and he will bring the numbers back to the Council. Motion by Peterson, second by Stotts, to approve Resolution No. 13046. Roll call vote was taken: Haugen - aye; Arndt - aye; Peterson - aye; Stotts - aye; Cook - nay. Motion carried 4 to 1. 7. PUBLIC HEARINGS - 6:00 P.M. (a) CONSIDERATION OF ISSUING ON-SALE WlNE/STRONG BEER LICENSE TO MA IT WOELFEL OF COUNTRY KlTCHEN e e City Attorney Marc Sebora stated that appropriate application procedures were completed and the police department conducted a favorable background investigation. Motion by Haugen, second by Arndt, to close public hearing. Motion carried unanimously. Motion by Stotts, second by Peterson, to issue on-sale wine/strong beer license to Matt Woelfel of Country Kitchen. Motion carried unanimously. (b) FINAL REPORT ON FRANKLIN GROVE SMALL CITIES DEVELOPMENT PROGRAM PROJECT CLOSEOUT Jean Ward, HRA Executive Director, and Judy Flemming, HRA Program Coordinator, presented before the Council. Ms. Ward gave an overview of the 2002 Franklin Grove Nei15hborhood Housing Rehabilitation Project. The overall goals and objectives of the project included correctIng the housing deficiencies related to the health and safety of owner-occupied households and improving the housing stock in the area via rehabilitation. 30 homes were rehabilitated with an average loan of $] 8,000. The areas included in the project were boundaried by Franklin Street, Fourth Avenue SW, Grove Street and Linden Avenue. Ms. Ward explained that the next proposed tar15eted area is to the east and west of the current Franklin-Grove neighborhood. Ms. Ward explained that thIS funding is very competitive and the HRA must pre-apply to the State by mid-October. The HRA is asking that residents in the neIghborhood complete pre-applications and submit them to the HRA by October 2, 2006. Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously. Motion by Arndt, second by Peterson, to approve the final closeout presentation of the Franklin Grove Small Cities Development Program Project. Motion carried unanimously. (c) WARRIOR MANUFACTURING GRANT APPLICATION Miles Seppelt, EDA Director, presented before the Council. Mr. SeppeIt explained that the EDA is applying for a $200,000 federally-funded want on behalf of Warrior Manufacturin15' This grant will assist in the expansion of Warrior Manufactunng, a new company building in the IndustrIal Park. Warrior Mfg. produces a wide variety of equipment related to the agricultural industry. If the application is successful, the city would use the grant proceeds to make a loan to Wanior Mf&. which would use the funds to purchase new equipment. As the funds are repaid to the city, the funds go Into the city's Industrial Park Revolving Loan Fund and would be available to make loans to other companies. Mr. Seppelt discussed the background and scope of the project, the construction schedule, project costs, benefit to persons oflow-to-moderate income and a housing & community development certIfication that was required as part of the grant application. Mr. Seppelt explained that Warrior's rapid j5Towth is due to the boom in the ethanol industry. Warrior currently has no room for expansion at then headquarters in Redwood Falls, and has had a hard time recruiting employees in the Redwood Falls area. The new Hutchinson manufacturing facility is scheduled to open in Spring 2007. The public was invited to comment on the project and ask any questions they might have. There was no public feedback. Motion by Arndt, second by Peterson, to close public hearing. Motion canied unanimously. 3 Sl~ CITY COUNCIL MINUTES - SEPTEMBER 26. 2006 Motion by Arndt, second by Peterson, to close public hearing. Motion carried unanimously. e CQMMUNICATIONS, REQUESTS AND PETITIONS (a) PRESENTATION ON RESULTS OF EMPLOYEE SA TISF ACTION SURVEY - BRENDA EWING This presentation will be given at the next City Council meeting. (b) UPDATE ON COUNCIL CHAMBER IMPROVEMENTS - TOM KLOSS This presentation will be given at the next City Council meeting. 9. UNFINISHED BUSINESS (a) CONSIDERATION OF POLICY ON GRANT APPLICATIONS Gary Plotz, City Administrator, presented before the Council. Mr. Plotz noted that at the last Council meeting,. i~ was suggested. that additionallCl!l~uage be a9ded to the proposed policy on grant applications. The addltlOnallan~age Includes not requITIng CouncIl approval for grants that are under $15,000 and allowing C; ty AdmInistrator approval for those grants that are over $15,000 but there i~ insufficient time for Council approval. Motion by Stotts, second by Haugen, to approve policy grant application. Motion carried unanimously. 10. NEW BUSINESS (a) REVIEW OF W A TER/W ASTEW A TER DEPARTMENT APPRENTICESHIP PROGRAM - JIM MILLER OF BONESTROO ROSENE ANDERLIK e Jim Miller, Bonestroo Consultants, presented before the Council. Mr. Miller delivered a presentation regarding the development of a Water/Wastewater Apprenticeship Pro&ram. The key elements. of this program are to develop skills and ability of employees in the program. ThIS provides value to both./the City and its employees and the community. The real purpose of this program is to achieve A and B1Hcensed operators within the City staff. . Motion by Peterson, second by Cook, to approve movin~ forward with the Water/Wastewater DJpartment Apprenticeship program for 2007. Motion canied unammously. I " (b) CONSlDERA TION FOR APPROV AL OF PURCHASING SITZ PROPERTY EAST OF MENAlillS FOR THE SETTING OF A NEW CARE CENTER FOR HUTCHINSON AREA HEALTH CARE I Mary Ellen Wells, new CEO of Hutchinson Area Health Care, presented before the Council. IMs. Wells explained that the purpose of the purchase ofthis land is to build a new nursing home and senioJ care living center. Ms. Wells further explaIned that HAHC has received an exception to a state moratorium on the building of new facilities for nursing home care. 18 months is allotted by the state for the exception to be in place. This specific purchase is 37 acres and located east of Me nards. Linda Krentz, Burns Manor Nursing Home Administrator, presented before the Council. Ms. Krentz explained the design of the senior living campus. This would include nursing homes, townhomes, assisted living, etc. Ms. Wells stated that the goal is for the campus to be operational by the end of2009 or beginning of20]0. Motion by Stotts, second by Arndt, to approve purchase of Sitz property east of Me nards for the setting of a new care center for Hutchinson Area Health Care. Motion carried unanimously. Paul Betker presented before the Council. Mr. Betker spoke about a piece of land on his property that he would like to discuss with HAHC. It is landlocked and serves him no purpose. It runs near the property that HAHC will be purchasing. e (c) UPDATE ON HIGHWAY 7 PROJECT BY MN/DOT REPRESENTATIVE Kelly Brunkhorst, Mn/DOT Engineer, presented before the Council. Ms. Brunkhorst reminded the Council 4 5(0 e e e CITY COUNCIL MINUTES - SEPTEMBER 26. 2006 and public that weekly updates are held every Tuesday at ] 2:30 p.m. in the Council Chambers regarding the Hwy 7 project. Ms. Brunkhorst explained that all of the underground work will be done this year as soon as the frontage road is put in. All of the retaining wall work has been complete, with the exception of painting and backfill. Concrete paving continues and more will be done as grading is completed. The bridge is progressing well. Everything is progressing as planned with opening planned before the snow flies. The bridge plans to be poured in mid-October. (d) CONSIDERATION FOR APPROVAL OF REVISION TO SITE PLAN FOR NEW DISCOVERIES MONTESSORI ACADEMY Rebecca Bowers, Planning Director, presented before the Council. Ms. Bowers reminded the Council that last month, the Council had approved a conditional use permit for New Discoveries Montessori Academy to place four educational trailers at the McLeod County Fairgrounds. Part of this approval required the construction of a berm. The Fairgrounds has constructed the berm and it is farther east than what was approved and shorter than approved. Council Member Haugen noted that he does not have any issues with the revised placement or size of the berm. Mayor Cook noted that the item to consider is the fact that the intent and expectation of the Council was not followed. Some concerns have been raised to him by the neighbors and he recommended that the effected parties meet to discuss this. Motion by Cook, second by Stotts, to recommend that the effected parties meet to discuss this matter and have feedback presented at the October 11, 2006, City Councij meeling. Dave Comad, New Discoveries Montessori Academy, presented before the Council. Mr. Conrad explained that his understanding was that the concept of the berm was approved and not necessarily the locatIOn and size of it. Tim Ulrich, McLeod County Fair Board, presented before the Council. Mr. Ulrich explained that a drawing of the site was completed by a draftsman in Chicago prior to the Council meeting where the berm was approved. It was not the Fair officials understanding that a specific drawin~ was approved, but a~ain, the concept of a berm. Mr. Ulrich explained that after the school leaves the locatIOn, the berm and plantIngs will be destroyed. Marian Filk, McLeod County Fairgrounds, presented before the Council. Ms. Fi]k explained that it was her responsibility to select the plantings for the berm. Ms. Filk explained that timing was right to get nice plantings at a nice price. Ms. Filk explained the benefits of the plantings selected - attractiveness, privacy, height, etc. Roll call vote was taken: Haugen - nay; Arndt - nay; Peterson - nay; Stotts - aye; Cook - aye; Motion failed 3 to 2. Motion by Arndt, second by Peterson, to approve revised site plan. Council Member Stotts noted that at the Council meeting that this was last discussed, the neighbors were in ajP'eement of the proposed berm size, which at the time, New Discoveries stated it would be five feet in height. Roll call vote was taken: Haugen - aye; Arndt - aye; Peterson - aye; Stotts - aye; Cook - nay. Motion canied 4 to 1. ( e) CONSIDERATION OF A VARIANCE TO INCREASE AMOUNT OF IMPERVIOUS SURF ~E IN THE SHORELAND AREA FROM 25% COVERAGE TO 31 % COVERAGE LOCATED AT 915 2 AVENUE SW WlTH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (PLANNING COMMISSION 6 TO] VOTE) (ADOPT RESOLUTION NO. 13044) Rebecca Bowers presented before the Council. Ms. Bowers explained that this variance is specifically to increase surface area in shoreland area to 31 % lot coverage. Current ordinance allows for 25%. Staff did not recommend approval to the Planning Commission, however the Planning Commission felt that the unique shape of the lot be recognized a hardship and approved the variance with a 6 to 1 vote. Christy Christensen, 915 2nd Avenue SW, presented before the Council. Mr. Christensen plans to install mechanisms to ensure that water runoff flows towards the street. These mechanisms include gutters on the north side of the garage, constructing a berm and a rain garden. Mr. Christensen requested that the City review the shoreland management ordinance related to impervious swfaces, and perhaps consider increasing the lot coverage allowance. Mayor Cook suggested reducing the proposed driveway to increase the 5 5L0 CITY COUNCIL MINUTES - SEPTEMBER 26, 2006 e impervious surface. Motion by Peterson, second by Stotts, to approve variance at 915 2nd A venue SE, approving Resolution No. 13044. Motion canied unanimously. (f) CONSIDERATION OF LOT SPLIT REQUESTED BY PAUL BETKER LOCATED AT 250 OTT A W A AVENUE SE WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (PLANNING COMMISSION 6 TO 1 VOTE) (ADOPT RESOLUL TION NO. 13045) Rebecca Bowers noted that the main discussion held at the Planning Commission was regarding the requirement for additional trees. The requirement of the ordinance is to have two trees per lot for twmhomes. However because of the way this was platted, only one tree was allotted per lot. Paul Betker, 375 Ottawa Avenue, presented before the Council. Mr. Betker argued the need for additional trees as the intent was to put them in the boulevard. Mr. Betker also argued the necessity of the new lot split procedure. He requested that the remaining lots in the development be grandfathered under the old way of doing things. Staff noted that there isn't a new lot split procedure, but rather the ordinance is now being followed as written. Rebecca Bowers addressed current procedures. Kay Petersol' asked that staff address some of the concerns and lot split issues. Discussion was held regarding how subdivision agreements should read to address tree issues. Discussion was held regarding the process of lot splits. It was discussed that, for a fee, special Planning Commission meetings could be held to help speed along building projects. Motion by Peterson, second by Stotts, to approve lot split at 250 Ottawa A venue SE, approving Resolution No. 13045. Motion carried unanimously. e (g) CONSIDERATION FOR APPROVAL OF DOCUMENTS RELATED TO RETIREMENT SAVINGS ACCOUNT PROGRAM This item was not discussed as the documents have not been received from ICMA. I ; (h) CONSIDERATION FOR APPROV AL OF USE OF HUTCHINSON FIRE STATION FOR W1Lp LAND FIREFIGHTER CERTIFICATION CLASS I Brad Emans, Fire Chief, presented before the Council. Mr. Emans explained that an opportunit1 has been provided to the Hutchinson Fire Department to host a Wild Land Firefighting Class for the Dep~rtment of InteriorlUS Fish and Wildlife. For hosting this class and holding it at the fire station, the HFD 'Yill receive $14,000 worth of equipment. . 'I Motion by Peterson, second by Arndt, Stotts abstaining, to approve use of Hutchinson Fire Station for wild land firefighter certification class. Motion carried unanimously. ',. (i) CONSIDERATION FOR APPROVAL OF REPLACMENT OF ENGINE 9 FIRE TRUCK e Lt. Michael Craig, Hutchinson Fire Department, presented before the Council. Lt. Craig delivered a presentation on the research and goals developed by the committee who is recommending replacement of the Engine 9 fire truck. Lt. Craig reviewed the limitations on the current Engine 9 fire truck. Because old fire trucks generally have little to no value, the fire department is proposing to use the existing truck for use at the training site. The estimated cost for the future Engine 9 is $300,000. The fire department hopes to be able to open bids on October 16, 2006, and request award of bid at the October 24, 2006, City Council meeting. Construction of a new truck will take approximately one year from the time of order. Motion by Arndt, second by Peterson, to approve replacement of Engine 9 fire truck. Motion carried unanimously. (j) CONSIDERATION FOR APPROVAL OF TRAFFIC CONTROL DEVICES ON MAIN STREET 6 5(0.) e e e CITY COUNCIL MINUTES - SEPTEMBER 26, 2006 John Rodeberg noted that a specific request has been made of a tenant in 101 Park Place to allow for some restrictive 'parking on Main Street due to the Farmers Market and Arts and Craft~ Festival. The request is to have 10-mInute parking restrictions put in place in some parts. The suggestion by staff is to have a small billboard-type sign that the business owner can put out himself during specific times approved by the City. Staff is suggesting trying this on a trial basis. Motion by Peterson, second by Stotts, to approve temporary traffic control devices on Main Street until the end of2007. Motion carried unanimously. (k) CONSIDERATION OF A WARDING BlD FOR REVERSE OSMOSIS MEMBRANE ELEMENTS John Rodeberg, Public Works Director, presented before the Council. Mr. Rodeberg explained that bids for this project were taken in late 2005. At that time, the alternate for reverse osmosis membrane elements was not awarded. This will now be bid out separately. Motion by Stotts, second by Arndt, to advertise for bids for reverse osmosis membrane elements. Motion carried unanimously. 1 I. MISCELLANEOUS (~) COMMUNICATIONS Miles Seppelt, EDA Director, explained to the Council that the Chamber of Commerce, Hutchinson Downtown Association and EDA are sponsering a "Retail Trade Analysis" for retailers in the area This is a free presentation being put on the by the U ofMN Extension Service. This will be held on October 5 from 6:30 - 8:30 p.m. 1. Resolution No. 13050 - Joint Resolution of the City of Hutchinson and Hutchinson Township as to the Extension and Renewal of Orderly Annexation Agreement Marc Sebora, City Attorney, presented before the Council. Mr. Sebora explained that back in 2000, the City and Hutchinson Township entered into an annexation agreement for the area on Hwy 7 east. Several properties have been annexed, but it is requested that the current agreement be extended' to 2009. Motion by Arndt, second by Peterson, to approve Resolution No. ] 3050. Motion carried una~imously. I 2. Temporary Liquor License for VFW I Motion by Arndt, second by Haugen, to approve temporary liquor license for September 3q, 2006. Motion carried unanimously. ' Marc ~ebora ~ Mr. Sebora thanked Phil Graves for all of his years of service and wishes him Iwell in his upcomIng retIrement. ; Bill Arndt - Council Member Arndt commented on vehicles parked on 2nd A venue that have not moved for days. He has concerns that, with the upcoming snow season, this causes unnecessary work and delays. He asked that vehicles be moved appropnately. Kay Peterson - Council Member Peterson reminded the public that campaign signs, realty signs and other signs are not to be placed on the boulevards. Gary Plotz - Mr. Plotz noted that an additional workshop needs to be held to discuss the budgets for the enterprise funds. Motion by Haugen, second by Arndt, to set October 24,2006, at 3 :30 p.m. to hold a budget workshop on the enterprise funds. Motion carried unanimously. . Gary Plotz also reminded the Council of the joint meeting with the school district on September 28,2006, at 4:30 p.m. 7 SLoj CITY COUNCIL MINUTES - SEPTEMBER 26. 2006 12. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS e Motion by Peterson, second by Stotts, to pay claims, appropriations and contract payments. Motion carried unanimously. ' 13. ADJOURN Motion 'by Stotts, second by Peterson, to adjourn ~t 9:00 p.m. Motion carried unanimously. e e 8 5Loj e e e Minutes Hutchinson Public Library Board August 28, 2006 Members present: Julie Jensen, Kay Peterson, John Hassinger, Yvonne Johnson, and Ann Vance. and Mary Henke, Ex-Officio Members absent: Janet Vacek and John Paulsen President Jensen called the meeting to order. Minutes of the July 24, 2006 meeting were reviewed and approved. Reports: 1. Pioneerland Library System (PLS) and Technology committee meetings were reviewed by Mary with notes from Jack Sandberg. Policy on Internet Safety is being reviewed and updated. PLS is anticipating a shortfall in budget and is studying combining of head librarian positions and staff reductions. 2. A fact sheet for the Hutchinson Public Library was provided. See enclosure. Old Business: 1. Budget request to the city continued to be accepted. County budget stBI under review. 2. Community forum continues to be developed. Subject will be renewable energy and ways to apply it to local needs. The director of the Utilities Commission to be contacted for possible provision of sample light bulbs. Our speaker will be Dave Paskach. Southwest Initiative Foundation staff member. Oct 24 is the preferred date with Oct. 17 as our second choice. I 3. Mary reported on a PLS meeting focusing on library services for the non- English speaking residents with Tammy Pineda, Hennepin County Library Hispanic Outreach specialist. Emphasis needs to be on family and how it would be beneficial to the children. Ways of spending money in the PLS's Mardag grant in this area are being considered. 4. The Furniture Committee has reviewed furniture needs. Furniture will be touched up and reupholstered. 5. Shiffelly Puppet Show on August 23 was well attended. New Business: 1. Mary hired two new student assistants, David Nissen and Kelsey Woodworth, to replace two who are leaving for college. 2. The Arts and Crafts Festival Used Book Sale wil be held on Sept. 15 and 16. Donations received in July were $18.24 from AAUW for the purchase of the bOOK, Women of the Northern Plains and $7 67 of artificial trees and plants from Friends of the Library. Our next meeting wm be on Sept. 25 at 4:30 p.m. Respectfully submitted, John Hassinger. Co-Secretary Lp L~ \ .' EDA Board of Directors e Minutes of Meeting Friday, August 25, 2006 Members present in bold print: Members: Tim U1ricb Duane Hoversten Steve Jansick Casey Stotts Jim Haugen Mike McGraw Don Walser Marc Vaillancourt Staff: Miles Seppelt, EDA Executive Director Dan Sexton, EDA Assistant Ken Merrill, Finance Director I. Tim U1ricb called tbe meeting to order at 7:00 a.m. n. App. ove Agenda- No actioil m. Review and Approve Meeting Minutes a. Review minutes from July 28th EDA Board Meeting M/SIP: Jansick, Hoversten to approve tbe minutes from the July 28, 2006 EDA Board meeting as written. Passed unanimously. e b. Review minutes from July 191h Finance Team Meeting M/SIP: McGraw, Jansick to approve tbe minutes from the July 19,2006 Finance Team Meeting as written. Passed unanimously. IV. Director's Report Miles Seppelt gave the foJlowing report: A. Goebel Land Transaction - The city council has approved for the deeding of the property. The paperwork for the deed transfer has been filed and the EDA is just awaiting confinnation for McLeod County. B. Warrior Manufacturing - The City Council and Planning Commission have approved Warrior's proposal. Warrior is in the process of getting underway, they have currently filed for grading penn its to prep the site for construction. C. Cornerstone Commons - The construction is back on track. Brick is being applied to the exterior of the structure. According to the owners the structure is approximately 50% of its leased D. Minnesota Investment Network - Mr. Seppelt commented on the meeting with Brian Johnson. He mentioned that the Finance Team was a little apprehensive about the idea of prospecting for possible clients. They recommended a more hands off approach. Mr. Ulrich requested the input of the EDA Board's perceptions. Members agreed that the idea of prospecting for individuals to invest in this fund was shaky. Members didn't want to be associated with setting individuals up with an investment that has no guarantees E. Business Recruitment e wL~~ EDA Board Meeting August 25, 2006 Page 2 of 4 e v. e a. Nordic Components - They are currently looking for a new facility around 15-20,000 sq. ft. to own. They were given a tour of the industria] park. Mr. Seppelt will keep the board up to date on this project. b. Alexis Systems - Mr. Seppelt informed the board that at the last Community Venture Network (CVN) meeting introductions were made this Alexis Systems. He further explained what A]exis Systems does and why they are looking at Hutchinson as a prospect for relocation. Mr. Seppelt commented on a site visit that was provided for the company on Wednesday, August 23rd. Currently Mr. Seppelt is waiting for Alexis Systems to submit their financial structure, business plan and confirmation from Ridge Water for approval to use their existing facility in the Industrial Park. Further discussion followed in reference to the employment needs of the company, this company as a future prospects and the board's general perception of the company. Review May Financial Statements Mr. Merrill gave the following report: o On Pg I under operations for the EDA, there is $218,00 I cash on hand. The total fund balance as of July 3 1.2006 is $217,865. Total Mortgages Receivable is $76,608. o Pg 2 and 3 is the statement of revenue and expenses. The EDA continues to collect $;UO each month for the Wetherell Property. The EDA has generated a total of $3,500 to date for the year of 2006. Total expenses for the month of July equal $9,126. o Pg 4 under the EDA Loan Fund, the cash on hand is $] 19,834. The EDA has generated a fund balance of $] 44,834 to date the year of 2006. o Pg 5 under the EDA Downtown Loan Fund, cash on hand is $81,540. Mortgages receivable is currently $667,319. $72,553 has been collected this year for loan repayments. A total of $22,087 has been paid out thus far in 2006 including loans, downtown grant program, and miscellaneous. The balance sheet reflects revenues of$50,421 above expenditures. 1 I: M/S/P: Haugen, Jansick to approve the July financial statements as presented. Passed unanim~,usly. VI. Cenex Redevelopment I Cenex is currently in the process of obtaining an appraisal for the property. This was suggest~ to be completed prior to opening negotiations with the company. Meanwhile the EDA has obtained an appraisal; for the property at a value of $180,000. With appraisals being completed by both parties hopefullyia better understand of the property can be attained prior to the meeting and that the transaction will'iproceed smoothly. VII. Pet Hospital Building Mr. Seppelt informed the board that there was a meeting scheduled with the owner and their attorney, this afternoon to discuss a third appraisal or possible settle meant. The owners have received their appraisal from Hokanson for $164,600. The EDA's appraisal was from Robinson for $70,000. He mentioned that the owners were still very against the EDA's offer. Mr. Seppelt mentioned that there still is nine months left on the grant window for funding on this project. Members of the board suggested the meeting be canceled and that whether a confidential meeting with the owner's attorney may be more productive. Mr. Jansick agreed to schedule a meeting with the attorney unofficially to discuss this matter further. VIII. e EDA Budget I LoaD Mr. Seppelt commented on the history of the EDA and the proposal of the Levy. When the EDA was originally formed the intent was that the EDA would at some point become self-sufficient, funded by its own levy. Currently the EDA's budget is funded from the general fund, $100,000 annually. This amount (p LCA'J~ e EDA Board Meeting August 25, 2006 Page 3 of4 over the years has maintained re]atively level due to staffing changes and funds fr~m rental revenues. The main goal of the levy is to stabilize the EDA funding source with an annual 1.525% draw and not have to rely of the general fund. This would also allow for further transparency to the general public of were their money is going to. e Further discussion followed with questions in reference to the amount that should be requested and the timeline necessary for approval. Mr. Merrill mentioned key points from the following list of procedural requirements needed to gain approval: I) EDA Board of Directors make a formal request (resolution) 2) City Council passes a resolution stating proposed amount of levy 3) Publish resolution together with a notice of public hearing on the resolution for two consecutive weeks in official newspaper. 4) Public hearing held 2-4 weeks after first publication in the official newspaper. 5) Following hearing, City Council adopts resolution authorizing the EDA levy 6) Resolution authorizing the levy is published 7) If a petition is received, the resolution could be voided. (see below) 8) Send copies of both resolutions to City Schultz at the County. Members of the board discussed that if our resolution was to be submitted that we should go for the full amount need. The action regardless will put the board's proposal up for public debate and the information that Mr. Seppeh presented clearly shows that there is a need for change. It was suggested that information about the EDA's past and present success be mentioned to further sway popular vote. M1S/P: Hoversten, Haugen to approve to move fonvard with the resolution to levy for $140,000 at 1.525%. Passed unanimously. IX. Grant & Loan Applications None. X. Chamber CVB Update Mr. Vaillancourt gave the reported the following: . The Chamber/CVB will have a new employee Megan Peterson starting September Sib. . There will be a Hutchinson Leadership Institute event on September 2 ]st. . The Professional Development Network will be hosting an event. . The Chamber/CVB is co-sponsoring a forum discussion at Ridge Water College for individuals running for State offices. There will also be a forum event for individuals running for local elected positions. . The Arts and Crafts Fair is ready to go. XI. Other Business None. XII. The next meeting will be Friday, September 29,2006 at 7:00 a.m. e (p L8 :l.. EDA Board Meeting August 25, 2006 Page 4 of 4 XIII. Adjourn e The meeting adjourned at 8:33 a.m. Respectfully submitted, Dan Sexton EDA Assistant e e lc Lcy~ e , JJ ~ ;r '- Z o H "1 "1 H 1: 1: o U '" 1-0 WO ~t'-l m ~ ~: EW'" ::; :J::J <C'-' Z l:!:l:J a <C (f; Z H ('j to; i en w H " 5': ~J :.:. .; ",' :.; " e , ~' -----..---- . ~__~~~:~. ~_~i:' 2 ::: ."'~.~ ~ f '" '* '* '* .1 <C I- a I- '* '* '" * !'I) M ID f'- ot ot II) (OorlO -00-... . . ...... o-ot 1')<0" Mot 11)0- -or- r.J (\1 o ... ?- m >- amI- UI-H ::::-1~ i-e'HZ <r i-q- <r OC::J..1 il. ow .....2-1:>- Z<I~i- ~--'-<tH ! ""'" i i5:..sUH l.ul- ">-.......U::~ j-z~~ H<::i.Ll~ ..J.JA..:! (J)H ~ 1-1- a W~ !o- (JJ '" <I ~ -:- , I (}o li) ~ Z <r il. ot 0' ,.., ot ,v tll, -0 00. ~,.., .,.,.., o ,.., ot o CD -0 -0 M M Z o HZ 1-0 <!:H H;- u<r WH "'u il.W WU::: Oil. 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Z C...J u<t .... o ... w r o U Z H '-' Z H .... <r "' W ~ I Z o Z W :t: o U Z H ... W Z tv L~J3 e Memo Hutchinson Fire Department To: Mayor and City Council Members From: Brad Emans, Fire Chief Date: 10/02106 Re: Monthly Update on Activities of the Fire Department The fire department responded to 25 general alarms in the month of September. Example of a few of the calls: . We responded to a residential fire started from a bird nest built in the vent of a gas fire place. . We responded to a rescue call where a vehicle went through two residential units, unfortunately the resident of one of the units died as a result of the accident. e . We responded to a call where approximately 100 pound bales of hay where on fire, It took us 5 hours to get the fire under control. . We responded to one of our assisted housing buildings when it was hit by lightning, The entire alarm system was destroyed, . We responded to an alarm at one of our restaurants in the southwest part of the city when a heat I detector activated in the storage room. I I I I I This is the breakdown of the calls for the month: City: Residential 3 Commercialllndustrial 4 Multi-family 3 School 3 Carbon Monoxide 0 Hazardous Material 5 Vehicle 0 Rescue 2 Medical 1 Grass 0 Sky-Wam 0 Good Will 0 Mutual Aid 0 Arson 1 (Old fumiture) Rural: e Rescue 1 Grass Type 2 Medical 1 Residential 0 Farm Building 0 Hazardous Material 0 Carbon Monoxide 0 Vehicle 0 CommerciaL/Industrial 0 Good Will 0 Arson 0 Co (0.0 y Drills I Meetings I Other Infonnation e · We held two grain bin rescue classes before the harvest season rolls into high gear. One was the classroom portion and one was the actual hands-on. . Our lieutenants held our monthly equipment maintenance check on all fuel powered tools. Fire Prevention I Public Relations . The fire department spent approximately 12 hours of ladder truck work time with the school district. . Conducted a search & rescue class for 70 employees of Aveyron Homes. . Conducted fire extinguisher hands-on class for the same 70 employees of Aveyron Homes, . Held a general fire safety class for the residence of "Prince of Peace". . Conducted a hands-on fire extinguisher class for the staff at Ridgewater College. . Gave tours of the station and fire safety classes to all of the elementary classes at charter school. . Gave an update on fire department activities to the Tuesday Moming Breakfast Club. e e . Page 2 (oL~j~ e e e MEMORANDUM DATE: September 6, 2006 TO: Hutchinson City Council FROM: Rebecca Bowers, Planning Director SUBJECT: APPROVAL TO CHANGE THE ADDRESS FOR CORNERSTONE COMMONS FROM 104 MAIN STREET N. TO 114 MAIN STREET N. The property owner of Cornerstone Commons has requested an address change for the entire building to 114 Main Street N. The property has an assigned address of 104 Main 'Street N., however some of the new tenants started using 114 Main Street N. as their address. In effort to simplify matters for the tenants, a new address of 114 Main Street N. is requested. The individual businesses will also have suite numbers. Staff have reviewed the requested address change with the Chiefs of the Police and fire Departments, who do not have any concerns with the change. Documentation in the formpf a resolution is needed to assure that the address change is correctly applied in all appropriate areas, such as building permits, property data, franchise agreements, and any other relevant property agreements and resolutions on file with the City. I I I i ReQuested Action: I Approval of resolution #13051, changing the address for Cornerstone Commons fromi104 Main Street N. to 114 Main Street N. ! , (P Lb) \ e e e RESOLUTION NO. 13051 RESOLUTION GRANTING APPROVAL TO CHANGE THE ADDRESS FOR CORNERSTONE COMMONS FROM 104 MAIN STREET N. TO 114 MAIN STREET N. Whereas, the property owners of Comerstone Commons have requested a change of address from 104 Main Street N. to 114 Main Street N. to accommodate new tenants, Whereas, the property previously had an address of 104 Main Street N.; Whereas, resolutions, building permits, and various property agreements were issued by the City under the 104 Main Street N. address; THEREFORE BE IT RESOLVED, the address of Cornerstone Commons shall be changed from 104 Main Street N. to 114 Main Street N.; THEREFORE BE IT FURTHER RESOLVED, that all relevant files, permits, documents, and agreements shall apply to the new address of 114 Main Street N. Adopted by the City Council this 11 th day of October, 2006. ATTEST: Gary D. Plotz City Administrator Steven W. Cook Mayor eoL-b) \ RESOLUTION NO. 1305'- CITY OF HUTCHINSON e RESOLUTION FOR PURCHASE The Hutchinson City Council authorizes the purchase of the following: lTEM COST PURPOSE DEPT. BUDGET VENDOR Compost Bags $28,700 Customer bin liners Refuse Yes JESCO Screening $41,250 Compost screening Creekside Yes RW Farms LLC ttne following items were authorized due to an emergency need: I: ITEM COST PURPOSE DEPT. BUDGET VENQOR !/ " I' ': eMOtion Made By: Seconded By: Resolution submitted for Council action Kenneth B. Menill by: Finance Director Date Approved: October 10, 2006 (p (1 J~ e e e PUBLICATION NO. ORDINANCE NO. 06--0445 AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA V ACA TING UTILITY AND DRAINAGE EASEMENTS ALONG THE PROPERTY LINE BETWEEN LOTS 4 AND 5, BLOCK 1, FAIRWAY ESTATES SECOND ADDITION FOR THE PURPOSE OF COMBINING THE TWO LOTS INTO ONE LARGER LOT TIIE CITY COUNCIL OF THE CITY OF lillTCHINSON, MINNESOTA ORDAINS: Section 1. Notice of hearing was duly given and publication of said hearing was duly made and was made to appear to the satisfaction of the City Council that it would be in the best interests of the City to vacate utility and drainage easements located in Fairway Estates Second Addition. Section 2. That the utility and drainage easements to be vacated are described :?.~fol1ows: Description for proposed easement vacation Lof4, Block 1, Fairway Estates Second Addition: Vacate the 6.00 foot wide drainage and utility easement lying southerly of and adjoining the northerly line of Lot 4, Block 1, Fairway Estates Second Addition, according to the recorded plat thereof. The easterly line of the easement to be vacated being the westerly line of the Easter]y 10.00 feet of said Lot 4 and the westerly line of the easement to be vacated being a line described as: beginning at a point on the northerly line of said Lot 4 a distant 10.33 feet easterly of the northwesterly comer of said Lot 4; thence southeasterly, to a point on the southerly line of said Lot 4 a distant 55.00 feet easterly of the southwesterly comer of said Lot 4. And: Description for proposed easement vacation Lot 5, Block 1, Fainvay Estates Second Addition: Vacate the 6.00 foot wide drainage and utility easement lying northerly of said adjoining the southerly line of Lot 5, Block 1, FairWay Estates Second Addition, according to the recorded plat thereof. The easterly line of the easement to be vacated being the westerly line of the Easterly 10.00 feet of said Lot 5 and the westerly line of the easement to be vacated being the easterly line. of the Westerly 10.00 feet of said Lot 5. Section 3. This ordinance shall take effect from and after passage and publication. Adopted by the City Council this ~th day of October, 2006. ATTEST: Gary D. Plotz City Administrator Steven W. Cook Mayor (p (b).3 e e e MEMORANDUM DATE: September 20, 2006 TO: Hutchinson City Council FROM: Hutchinson Planning Commission SUBJECT: CONSIDERATION OF VACATION OF EASEMENTS LOCATED BETWEEN 1376 AND 1380 HERITAGE AVENUE, IN FAIRWAY ESTATES SECOND ADDITION Request: The applicant is requesting approval for the vacation of the drainage and utility easement on the shared property line between 1376 and 1380 Heritage Avenue, inthe Fairway Estates Second Addition in order to combine the two lots. The property owner has indicated they will not be constructing anything over the lot line, however they want additional open space for their single family home. There are no services in the easement to be vacated. Additional details and analysis on the proposal are contained in the attached staff report. /,' " PlanninQ Commission MeetinQ: i ~ ~ The Planning Commission held a public hearing and considered the request at their September 19,2006, meeting. There were no property owners who objected to the request. Staff adYised the Commissiort that condition number 2 should be revised to remove the condition req~iring disconnection of the additional water and sewer service to avoid damaging the new street. The additional service can be left in it current, unconnected state. The following conditions were recommended by the Planning Commission: I I 1. The easement vacation shall be only for the easement between Lot 4 Block 1 and Lot 5, Block 1, Fairway Estates Second Addition, as described on the attached legal description. All remaining easements shall remain in place. 2. The property owners are responsible for any utility relocation costs at their own expense. Recommendation: The Planning Commission unanimously recommends approval of the vacation of easements with the stated findings and conditions and recommends approval of the attached Ordinance #06-0445. 0J L bp e e e K..-.........<lIJ'"---~,...~...-..........~~Ao"......w:..../,..w.....".-r_;'P:;;;..''''''",,;p-~~'''~#/~AY4I'YI''/'''''/I"_~'',.,NJr.'.#,,.,..,J<':~"~~~.,.o;.,,,,,,,-~/~.....~_/....,....~~~,.,~~ ~ DIRECTORS REPORT - PLANNING DEP ARTMENT ~ t.~/#"A',....;."'~""'''-''--.46..w..--...~__..~.;.cr....,.,>;,w;>I'F7....,.'''''''.,.,_.:.r.'''''':p",(oP'''''''Y~'''''''''~'-''''''/VAof'"/",,"/~';oI':W..w'~"""'-~.(I_.......w~.wr''u>;.~:#"'''''''~AY~~ To: Hutchinson Planning Commission (persons in attendance at Planning Staff Meeting (in bold) : From: Brad Emans, Dole Moon, Dave Hunstad, Miles Seppe]t, Dan Sexton, Jean Ward, John Rodeberg, F.E., John Webster, John. Olson, Lenny Rut]edge, Kyle DimIer, Kent Exner, Mark Schnobrich, Marc Sebora, Gary Plotz, Ken Menill, Jim Popp, Dan Hatten, Dick Nagy, Rebecca Bowers and Bonnie Baumetz Date: August 30, 2006 - Meeting Date: September 19, 2006 Applicant: Mark and Sara Girard, property owners V ACA nON OF EASEMENTS Brief Description The property owner has applied fOr the vacation of the drainage and utility easements on the north and south side of the property line between 1376 and 1380 Heritage Ave. N.W. in Fairway Estates Second Addition to allow for combining the two lots. The prospective property owner will be tax combining the two lots into one. They indicated they would not be placing any type of structure over the line. GENERAL INFORMA nON Existing Zoning: Rl PD (Single Family Residentia] - Planned Development District) Property Location: 1376 and 1380 Heritage Ave. NW Lot Size: Total Area .73 acres Existing Land Use: Single Family Residential Adjacent Land Use And Zoning: Single Family Residential Comprehensive Land Use Plan: Traditional Residentia] Neighborhood Zoning History: The property was platted in 1999 and a Planned Development District was also granted in 1999. Applicable Regulations: City Charter SPECIAL Th'FORMA nON Transportation: Herilage Avenue NW Col1-p e e e Vacation of Easements Mark Girard -1376/1380 Heritage Ave Planning Commission- September 19, 2006 Page 2 Parking: N/A Analysis and Recommendation: Staffwou]d recommend approval of the request with the following recommendations: 1. The easement vacation shall be only for the easement between Lot 4 B]ock 1 and Lot 5, B]ock 1, Fairway Estates Second Addition, as described on the attached legal description. All remaining easements shall remain in place. 2. The property owners are responsible for any utility relocation cost~ at their own expense. The additional water and sewer services shall be properly disconnecled and removed at the owner's expense. Cc: Mark and Sara Girard, 13 76 Heritage Ave. NW I I , I I I i lfJLbJ3 . z ~tnt' i a:: >.~~ E~ ~~!! E. Ow 1~! i: ..c:ts -= E~ ::II- ... __ t:li!i: ~~:.sl~!go '" - I: :?~::o~ E::~ OI~~,&~_ ~~...:~"OlO-:~ ~~.:~i8 E:&=~Qf~S ... 0= d eLL. -' 1- el ~ >. i. i.:H ~ d E" 1::6.....- Z Cl-. I"" z~ f'I~_';br 2.2 -~i ...~- ...- o.2o.~ _~ 2 i:!: 0 ; ~~ :. Q..~~.iE8 ~~ '" etC" .e :: ~ li ...m'1:J..- o. :. == ..~-E.i'I"l...~ ~~ ;:.n-tl -1 >~ ...'U' ~,..,. 50ls'"1- ':o~~~."\d~c !E", 6=~~lc:l~ !zu ~...J~.;;-"O ~lll ~lll o'S"'.a!. UJ &o!.., ig..'6. &!!i~~ 0 !: ~., Dt-Ev~i~c~ "'., UJI!! E-ou-V)'Co"'O ~I!! !.oo ~ 0< o ... 0 -J UJ< C~-~O~ ~E "'~rg...J.o...l- Stl -Il~go -';; '01 -0'0 'U~~ ...c~1::2 ~ ~ :2~~1:'U~~.., ~ ll~ :25 " ! ~~ ): u2_;~o~li ~i J:5:u~':l 0 g:~ g ~Eoo"CJ~"''''' - ll-" v _f "i;Ji~ o:! U "'-'" ~;:: ~l!1"i 0 0 8:!,i!i ~ 1: ~ ls ! ls 0'" 8 '" ..~" ....: E "8 0 u= u ....: .-EE i8'" ~1 <<i:!!o~dil~~~ z.. ID-C Cl R.~ - - - ~~ ~~i!~j 1'8 l-~ ~!~ !!oa> : i_~ f;~i Q.a> a: C' . .~~_"t: . u'; o~oo..~~.J:: uon '60 0".10 "'- "u -"'i~ - "'- g=~:!S-:o UJo ~_UJ~8o ~6 ~.3 0-' ou>:;w...1: ..." >oU)mw_....1 AVENUE h11J HERITAGE ...PSi? . ..,,,,~ I.! r~ h'Y- " a-~ ~ d'./ Cl a:: <t a:: ,... ...... ~ a:: <t :i: a:: o l..L. Z ~ a:: u (J) lLJ Cl cO :r: L' t- lLJ ~ (J) /" A.'I.'7'~7. l'4/.41 A' 12"41gO''$J' L,0\6. --- '. ~ --\ \ \ \ \ \ \ \ \ \ \ --.- -10 y:<;t -Q 9s.. \ \ \ .~ \ 0., ... \ ~\ o \ ~\ L0 \ \ ......... --- o -L07-Lno z '" li i ~ -... ~ ~ '" ~ -' z ~ d Q. 'I I I.otb~ '* MINNESOTA DEPARTMENT OF COMMERCE 85 7th Place East, Suite 500 St, Paul, Minnesota 55101-2198 651,296,4026 FAX. 651,297.1959 TTY 651,297,3067 September 22, 2006 City Clerk City of Hutchinson III Hassan St. SE Hutchinson, MN 55350 CERTIFIED MAIL RE: Wa]-Mart Stores, lnc. - License #20431060 Currency Exchange License Renewal for 2007 Dear City Clerk: The above-named currency exchange licensee has made application to renew its currency exchange license to operate at: e 1300 Trunk Highway 15 So Hutchinson, MN 55350 /, " " Pursuant to Minnesota Statutes Chapter 53A.04, we are forwarding a copy of the completJ renewal application to the City of Hutchinson in care of your office for you to review. ';1 ( 'I Minnesota Statutes Chapter 53A.04 requires the Department of Commerce to submit any/' application for licensure as a currency exchange to the governing body ofthe municipality in which the currency exchange conducts business. The law further requires the governin~ body of the municipality to render a decision regarding the renewal of the license within 60 days. Your cooperation in forwarding this information to the proper unit within your Ii organization is appreciated. !, Your reply must be received within 60 days of receipt of this letter. If you have any questions, please contact me at the telephone number listed below. e Very truly yours, R ~ PJL{fUrY\ Robin H. Brown Financial Examinations Division 651-282-9855 651-296-9851 (Fax) Enclosure Market Assur'ance: 1,800.657.3602 Energy Information: 1.800,657,371C W'Nw,commerce, state, mn. us Licensmg: 1,800,657,3978 Unclaimed Property: 1,800,925,5668 An Equcl Opportunity Employe,' ~(0 MINNESOTA 2007 LICENSE RENEWAL NOTICE CURRENCY EXCHANGE WAL-MART STORES INC. 00: W AL-MART STORE #1738 300 TRUNK HIGHWAY 15 S HUTCHINSON, MN 55350 License Type: CURREI'ICY EXCHANGE License Number: 20431060 Company Structure: CORPORATION Renewal Fee: $500 [ ] Check this box If you will not be renewing the Ik:ense for the year 2007. Returning the form will serve a8 a SURRENDER of the license. ~Of""l -'"fit. of Co AUG 20. "-c-ct$ Phone Number: (320) 587-1020 AFFIRMATION: I hereby certify that the information and responses contained in this renewal application are true and correct to the best of my knowledge end belef. Rick Vi. Brazile VP of Finance ;mz . ~~ 4- Signature ~ Title 8/22/06 Date NOTARY SEAL cribed and sworn to, before me. a Notary Public, this 22 day of Augus t , 2006. Arkansas State of County :If My commission expires Benton 6/22/13 You must return this entire 2-page form with attachments, signed, along with your renewal payment, to: Minnesota Department of Commerce Financial Examinations DIvision 85 - 7th Place East, Suite 500 SI. Paul, MN 55101-2198 _ORRECTIONS/AMENDMENTS: Make name, address or telephone number corrections directly on the'fonn above. . For a name change, attach a copy of the amended name filed and stamped by the Minnesota Secretary of State. . If the company uses an assumed name in Minnesota and the name is not Induded In the above information, attach a copy of the Assumed Name Certificate from the Minnesota Secretary of State. . P.O. Box addresses are not acceptable. Renewals without a street address will be returned. TIMELY RENEWAL: The renewal fonn must be signed, notarized, and dated and returned with the correct renewal fee by Sept. 1, 2006. . Pursuant to Minnesota Statutes, Chapter 53A.04(a), regarding the licensing of currency exchanges, both state and local approval of the issuance and renewal of a currency exchange license is required. This process may take up to 120 days; therefore, you should return the required forms immediately to ensure a timely renewal. . If all required forms are not fully completed and returned to our office with payment by September 1, 2006, your license will lapse effective December 31,2006. If your license does lapse, you must reapply for a license using the license application form and paying the new license fees. . A properly renewed license will be valid through December 31,2007. RENEWAL FEE: . NO CASH ACCEPTED. Please make check or money order payable to MN. DEPT. OF COMMERCE. . NOTICE: Dishonored checks will be assessed a $30 service fee by law and may result In failure to renew license. . Renewal fees are non-refundable except that an overpayment of a fee will be refundable upon proper application. If you have questions, please contact the Financial Examinations DIvision bye-mall at robln.brown@state.mn.us or by telephone at (651) 282-9855. e WAL-MART STORE #1738 1300 TRUNK HIGHWAY 15 S HUTCHINSON. MN 55350 Page 1 of 2 ~(0 MINNESOTA 2007 LICENSE RENEWAL NOTICE CURRENCY EXCHANGE ene following information must be completed as part of the renewal application: 1. Attach to this form a list of the name(s), business and residence address, and official title of each director, officer, limited or general partner, manager, shareholder holding more than ten percent of the outstanding stock of the corporation, and employees with authority to exercise management or policy control over the company or member of the licensee. The list should contain the equity ownership of each person. 2. Each person listed In Item 1 must request the Bureau of Criminal Apprehension conduct a background investigation on the form provided. Completed forms must be submitted with your renewal application. 3. Attach a current fee $chedule of all fees charged by the currency exchange office for cashing checks, money orders or travelers checks. The list must include the type of checks cashed, the fees charged, and whether or not the fees vary depending on the amount of the check. 4. Attach the $10,000 Surety Bond (on the forrrs provided) with a power of attorney form. The bond must be effective' January 1, 2007, until December 31,2007. 5. Does the licensee have employees at the currency exchange location? [X J Yes [ j No If yes, you must provide evidence of current workers' compensation insurance. A~t;h a c~I'Y of the certificate of insurance. 6. Does the licensee operate any other currency exchange locations? [ X J Yes [ ] No If yes, attach to this form the name of the location, the street address, city, state, zip code, and county. 7. issues: e Name Kimherly Cooper Tille Licensing Specialirt III Firm Name Wal-Mart Stores, Inc. Street Address BentonvilJ.e State/Zi Code AR 72716-0500 r Kimberly. Cooper@wdJ.-mart.com E-mail address !/ Tele hone Number 479-277-7042 Fax Number 479-204-9864 8. to consumer com lalnts: Name. Cindy H. Yan -McPike Title I Firm Name Wal-MaiI Stores Inc. Street Address 7 BentonvilJ.e Tele hone Number 479-204-0788 Fax Number State/ZI Code AR 72716-0500 chyang@wat.marl.com E-mail address 9. Contact erson at the curren location: Name Scott Heiglemann Title Store Manager Waf-Mart Supercemer #1738 e 1300 Trunk Hwy 15 S. Street Address Ci Hutchinson StatelZi Code MN 55350 320-587-1020 Tele hone Number 320-234-7460 Fax Number E-mail address nla PC; (~~ e e e Minnesota Lawful Gambling LG220 Application for Exempt Pennit Fee $50 Page 1 or 2 11/04 For Board Use Only Fee PaId Check No. An exempt permit may be issued to nonprofit organizations conducting lawful gambling activity on five or fewer days, and awarding less than $50,000 ip prizps during a calendar year. Organization Information Organization legal name ~ \>050 '10(0 (\\)).',l'tw Street City ..)t ~ ('So. '55 w Last name f!::X 'I!Q 01 Daytime phone number 3.K> - 'i:7- ~ '11 Type of nonprofit organization (check one) o Fraternal 0 Religious [Q"Veteran 0 other nonprofit organization Type of proof of nonprofit - attach a copy (see instructions) [jd"Nonprofit Articles of Incorporation or Certificate of Good Standing - Minnesota Secretary of State's Office o Internal Revenue Service o Affiliate of parent nonprofit organization (charter) Gambling Premises Information Name of premises where gambfing activity will be conduc:ted (for raffles. list the site where 1he drawing wiD take place) ~ \={...) \> oS'\ 4 0 l.:, Address (do not use PO box) ~~~ rx\..tri, \ ~\-. ;.)+L~~o Date(s) of activity (for reflies. indicate !he date of the drawing) Wo ~ \ l,., k\..... )D 0 10 Check the box or boxes that indicate the type of gambling activit:y your organization wi! be conducting: o 'Bingo 0 Raflles ~ "Paddlewheels 0 "PlM-Tabs 0 "Tlpboards 'Gambling equipment for pull4abs, t1pboards, paddlewheels, and bingo (bIngo paper, hard cards, and bingo ball selection device) must be obtained from a distributor licensed by the Gambling Control Board. To find a Beensed distributor, go to www.gcb.state.mn.us and click on List or Ucensed DIstributors. Or call 651-4139-4000. Thls foRn wtI be made available In akematlve format (Le.large print, Braille) upon request. The Information requested on this fonn (and any allaclmem) wi be used by the GarnbItIg Control Board (Board) to detennine your quailications to be Involved In lawful gambling actlvlties In Minnesota. You have the right to refuse to supply the information requested; however, if you refuse to supply this Information, the Board may not be able to determine your qualifications and, as a consequence, may refuse to issue you a permit. If you supply the information requested. the Board wll be able to process your appllca1lon. City Zip code ~ 5 3~~u Your name andand your organization's name and address will be publlc Information when received bylhe Board. Allheo1herinfonnatlon that you provide wII be private data about you untIthe Board Issues your permit. Wlen the Board Issues yOU' pennI. al oflhe Informatioo thst you have provided to the Board In the procell6 of applying for yOU' pennl will become public. If the Board does not Issue you a permit, all the Information you have provided in the process of applying tlr a pem-. remains private. with the exception of your name and your organization's name and address which wil remain pubic. PrIvate data about you are available only to the following: Board member6. stair of the Board whose work assignment requires that they have access to the InfoRnation; the Minnesota Department of Pubic safety; the Mlnnesote Attorney Genera~ the MInnesota Convnlssloners of Admlrilllratlon, Finance, and Revenue; the Minnesota Legislative Aucilor. national and International gambling regtAatory agencies; anyone pursuanlto oourt order, other individuais and agencies that are specillcaly authorized by &tate or federalll!w to have access to the Infonnatlon; individuals and agencies for which law or legal order authorizes a new use or shamg of Information aller this NolIce was given; and anyone will YOUf consent. CoLd) LG220 Application for Exempt Permit Organization Name V f:v...) (' OS", q Ob Local Unit of Government Acknowledgment U\U'i" t-' (....r'-1 , Page 2 of 2 11/04 e If the gambling premises is within city limits. the If the gambling premises Is located in a township, both city must sign this application. the county and township must sign this application. On behalf of the city, I acknowledge this application, On behalf of the county, I acknowledge this application. Check the action that Check the action that the city Is taking on this application. the county Is taking on this application. o The city approves the application with no o The county approves the application with no waiting period. waiting period, o The city approves the application with a 30 day o The county approves the application with a 30 day waiting period, and allows the Board to issue a waiting period, and allows the Board to issue a permit after 30 days (60 days for a first class permit after 30 days, city), o The city denies the application, o The county denies the application, Print name of city Print na me of county Signature of city personnel receiving appHcation Signature of county personnel receiving application Title Title Date~_/_ . Date ~_I- TOWNSHIP: On behalf of the township, I acknowledge that the organization is applying for exeFr4'ted gambling activity within the township limits, [A township has no statutory authority to approve or deny an application I . (Minnesota Statute 349213, subel, 2).] ! Print name of township I I , Signature of township official acknowledging application J Trtle ! I Date _/~- , ! Chief Executive Officer's Signature ! The information provided in this application is complete and accurate to the best of my knowledge, I acknowledge that the ! financial report will be completed and returned to the Gambling Control Board within 30 days of the date of our gambling activity . \Y! -\. ~".QL-o,)t\. I Chief executive officer's signature I ~ ' ) Date~dLdJ..k. Name (please print) (I') ('€ 'J',) r Mail application and attachments Send: Complete an application for each . the completed application, gambling activity: . a copy of your proof of nonprofit status (see instructions), and . one day of gambling activity . a $50 application fee, Make check payable to "State of Minnesota", . two or more consecutive days of gambling activity To: Gambling Control Board . each day a raffle drawing is held 1711 West County Road B, Suite 300 South Roseville. MN 55113 e e toLd) e Memo Hutchinson HRA To: Mayor and City Council From: Jean Ward. HRA Executive Director Date: 10/212006 ~~ Re: HRA Board Recommendation for replacement of Thor Skele The HRA Board respectfully submits the name of LaVonne Hansen as replacement for Thor Skele who completed ten years of service on the HRA Board in August 2006. LaVonne Hansen has impressive business background and will provide an employer contact with HTI that will be an asset to our HRA Board. Thank you for your consideration of this recommendation. e e ~(f') e e e TO: Mayor & City Council FROM: John Rodeberg, DirectorofPublic Works Kent Exner, City Engineer RE: Consideration of Improvement Project Change Orders DATE: October 11, 2006 As construction has proceeded on the below listed projects there have been additional work, project scope revisions and construction staging revisions. All of these items have been identified and deemed necessary to satisfactonly complete these projects. The following Change Orders are proposed to address these items: . Change Order No.l- Letting No.10/Project No. 06-12 - Event Center Canopy (additional work)- This change order is primarily required to account for the needed structural improvements to the existing Event Center building front to allow for an adequate connection to the new canopy. Also, some miscellaneous proj~t items are included as listed on the attached change order document. Total construction contract increase is $10,335.00. . Change Order No. 1- Letting No. 8/Project No. 06-10 - Century Avenue Water Tower Reconditiorting (scope revision) - After much discussion and input, it has been detennined that painting the City logo on the tower may be troublesome due to the geometrics of a spherical tower. Placing our normally flat logo I'on a rounded surface while maintaining the consistency of alllhe logo's features will be extremely difficult. lOne oplion was to decrease the size of the logo to maintain consistency, but the fear is the "Hutchinson" text may get to be too small and result in difficulties seeing the text and logo. Thus, a change order to exclude th~ logo painting alternative bid and rescind back to the original base bid "Hutchinson" block letters and colors similar to the South park tower is necessary. Total construction contract decrease is $8,000.00. ' . Change Order No.6 - Letting No. 4/Project No. 05-04 & 05 - Downtown Streetscape (construction staging revision) - Due to additional time required to complete the Cornerstone Connnons building exterior, City staff has worked with Duininck Bros. to re-schedule the installation of the streetscape improvements adjacent to their building. Thus, the contractor has requested an additional remobilization cost of$2,600 to complete this work within the original project contract (utilizing original 2005 work unit prices). The Cornerstone Connnons developerlbuilder has accepted these costs and the arrangement of the costs being assessed against the property. Total construction contract increase is $2,600.00. We recommend that the above Change Orders be approved in the amounts listed. cc: Gary Plotz - City Administrator lotS) CITY OF HUTCHINSON - ENGINEERING DEPARTMENT 111. HASSAN ST SE, HUTCHINSON MN55350 (320) 234-4209 ~heet 1 of 1 CHANGE ORDER NO.1 Dated: .0910612008 ~RACTOR: Salonek Concrete & Construction Letting No. 10 Project No. 06-12 12 West Lincoln . Springfield MN 56087 507 -7234218/507 -723/6355 Project Location: Event Center Canopv DESCRIPTION OF CHANGE: Necessary structural improvemente to the existing Event Center building to allow for an adequate connection t9 the new canopy. Also addressed are other miscellaneous project Items as listed below. Item No. Spec. Ref. Item 'Name I Unit 1/ Quantity I Unit Price Amount INCREASE ITEMS: 1 Plan Review Fee Lump Sum 1 $645.94 $645.94 2 Relocation of Footings due to field conditions. Lump Sum 1 $402.00 $402.00 Additional cutting and patching for beam bearing due 3 to concealed conditions. Lump Sum 1 $8,734.06 $8,734.06 4 Access panel for electrical in soffit. Lump Sum 1 $3D2.00 $302.00 5 Upcharge for custom color for letters. Lump Sum 1 $251.00 $251.00 . TOTAL INCREASE ITEMS $10,335.0C . . DECREASE SITEMS: . TOTAL DECREASE ITEMS $0.00 NET INCREASE -- -- - ---. - - --- -- - I $10,335.00 I In accordance with the Contract and Specifications, the contract amount shall be adjusted In the amount of $10,335.00 (add)/(deduct). An extension of -0- days shall be allowed for completion. The original completion date shall not be changed. ORIGINAL CONTRACT PREVIOUS ADDITIONS/DEDUCTIONS THIS ADDITIONIDEiDUCTlON TOTAL AMOUNT $114,400.00 $0.00 $10,335.00 $124,735.00 !APPROVED: APPROVED: Contractor: Salonek Concrete & Construction Mayor. Steven W Cook ED: DATED: 10/1112006 PROVED: APPROVED: City Engineer: Kent Exner City Administrator: Gary D Plotz DATED: 1011112006 DATED: 10/11/2006 (0 (~) CITY OF HUTCHINSON - ENGINEERING DEPARTMENT 111 HASSAN ST SE, HUTCHINSON MN 55350 (320) 234-4209 Sheet 1 of 1 CHANGE ORDER NO, 1 Dated: 10104I2006 Odland Protective Coatings Letting No. 8 Project No. 06-10 7655 Vernon St TRACTOR: Rockford MN 55373 763477 -6623/763477 -6623 Project Location: Century Avenue Water Tower DESCRIPTION OF CHANGE: After much discussion and input, it has been determined that painting the City logo on the tower may be roublesome due to the geometries of a spherical tower. Placing our normally flat logo on a rounded surface while maimalnlng the consistenCj of all the logo's features will be extremely difficult. One option was to decrease the size of the logo to maintain consistency, but the fear is the "Hutchinson'text may get to be too'small and result in difficulties seeing the text and logo. Thus. a change order to exclude the logo painting alternative bid and rescind back to the original base bid 'Hutchinson" block letters and colors similar to the South park tower is necessary litem No. II Spec. Ref.1 Item Name Unit Quanti Unit Price Amount . .. INCREASE ITEMS: $0.00 $0.00 TOTAL INCREASE ITEMS . , $0.00 DECREASE ITEMS: MULTICOLORED LOGO - (INSTALL MULTICOLORED I~ LOGO AS SHOWN IN APPENDIX EIN LIEU OF THE i BASE BID LOGO AS SHOWN IN APPENDIX D) LUMP SUM -1 $8,000.00 ($8.000.00) I I TOTAL DECREASE ITEMS ($8,000.00) I i I I I ; NET INCREASE ---------------____________________ ($8,000.00) In accordance with the Contract and Specifications, the contract amount shall be adjusted In the amount of $ 8,000.00 {adtI)I(deduct). An extension of -0- days shall be allowed for completion. The original completion date shall not be changed. ORIGINAL CONTRACT PREVIOUS ADDITIONSlDEDUCTIONS THIS ADDITIONIDIiDUCTION TOTAL AMOUNT $280,100.00 $0.00 ($8,000.00) $272,100.00 APPROVED: APPROVED: Contractor: Odland Protective Coatings Mayor: Steven W Cook DATED: DATED: 1 0/11/2006 r!.ROVED APPROVED: City Engineer. Kent Exner City Administrator: Gary 0 Plotz ATED: 10/1112006 DATED: 1 0/1112006 ~l~ CHANGE ORDER NO.6 CITY OF HUTCHINSON -ENGINEERING D.EPARTMENT 111 HASSAN ST SE, HUTCHINSON MN 55350 (320) 234-4209 Dated: 10JOSI280l1 TRACTOR: Dulnlnck Bros. Inc. Letting No. 4 Project No. 05-04 & 05 ~08 6th Street, PO Box 208. Prlnsburg MN 56281-0208 Project Location: Downtown Streetscape DESCRIPTION OF CHANGE: Due to additional time required to complete the Cornerstone Commons building exterior, City staff has workec [with Duininck Bros, to re-schedule the installation of the streetscape improvements adjacent to their building. Thus, the contractor has requested an add~ional remobllization cost of $2,600 to complete this work within the project original contract, The Cornerstone Common~ developerlbuilder has accepted these costs and the arrangement of having the costs assessed against the property Item No. Spec. Ref. Item Name Amount INCREASE ITEMS: 1 Remobilization Lump Sum 1 $2,600.00 $2,600.00 . . TOTAL INCREASE ITEMS: $2,600.00 . -- I I i DECREASE ITEMS: I : $0,00 $0,00 $0.00 TOTAL DECREASE ITEMS: I $0.00 . I ! I I NET INCREASE - -- . - . ..--- $2, In accordance with the Contract and Specifications, the contract amount shall be adjusted In the amount of $2.600.00 (add)l(deduGtj. An extension of 5 calendar days shall be allowed for completion. The original completion dates shall not be changed. ORIGINAl CONTRACT PREVIOUS THIS ADDlTlONlDiDUCTION TOTAl AMOUNT ADDITIONSJDEDUCTIONS $1,138,500.11 $47,349.n $2,600.00 $1,1~,449.88 f.PPROVED: APPROVED: Contractor: Duininck Bros Inc Mayor: Steven W Cook ATED: DATED: 1011112006 PPROVED: APPROVED: City Engineer: Kent Exner City Administrator. Gary D Plotz DATED: 1011112006 DATED: 1011112006 Co~ e e e TO: Mayor & City Council FROM: John Rodeberg, Director of Public Works Kent Exner, City Engineer REi Consideration of Items Regarding Reverse Osmosis Membrane Element Project- (Letting No. 15/P06-17) DATE: October 11,2006 At the September 26th Council meeting this project was discussed and u]timately it was determined that seeking bids for supplying the reverse osmosis membrane elements would be necessary. Thus, the attached resolutions verify the actions of approving plans and specs and advertising for bids that were discussed at the previous meeting. The bid opening date for this project is Tuesday, October l7rJ1. The specified latest membrane element delivery date is January 10,2007. We recommend approving the attached Resolutions. cc: Gary Plotz - City Administrator tD L h) e e e RESOLUTION NO. 13053 RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS LETTING NO.15 PROJECT NO. 06.17 WHEREAS, the following improvement is proposed: Construction of Reverse Osmosis Membrane Elements by manufacturing of specified membrane elements, timely delivery to Hutchinson Water Treatment Facility and providing appropriate training. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such improvement is hereby ordered as proposed. 2. Kent Exner is hereby designated as the Engineer for this improvement. He shall prepare plans and specifications for the making of such improvement. Adopted by the Council this 11th day of October 2006. Mayor City Administrator loLh) e e e RESOLUTION NO. 13054 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS LETTING NO. 15 PROJECT NO. 06.17 WHEREAS, the Director of Engineering has prepared plans and specifications for the following described improvement: Construction of Reverse Osmosis Membrane Elements by manufacturing of specified membrane elements, timely delivery to Hutchinson Water Treatment Facility and providing appropriate training. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The Director of Engineering shall prepare and cause to be inserted in the official newspaper, an advertisement for bids upon the making of such improvements under such approved plans and specifications. The advertisement shall be published for three weeks, shall specify the work to be done, shall state that bids will be received by the City Administrator until 2:00 pm on Tuesday, October 17th, 2006, at which time they will be publicly opened in the Council Chambers of the Hutchinson City Center by the City Administrator and/or Director of Engineering, will then be tabulated, and will be considered by the Council at 6:00 pm on Tuesday, October 24th, 2006 in the Council Chambers of the Hutchinson City Center, Hutchinson, Minnesota. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed w,ith the Director of Engineering and accompanied by cash deposit, cashier's check, bid bond or certified check payable to the City of Hutchinson for 5 percent of the amount of such bid. . Adopted by the Hutchinson City Council this 11th day of October 2006. Mayor: Steven W Cook City Administrator: Gary D Plotz ~(h) e e e TO: Mayor & City Council FROM: John Rodeberg, Director of Public Works Kent Exner, City Engineer RE: Consideration of Assessment RolI- Downtown Streetscape (SA-5080/Letting No. 4/Project No. 05-04 & 05) DATE: October 11,2006 Christian Ochsendorf of Cornerstone Commons, LLC has requested that the Downtown Streetscape improvements adjacent to their new building be delayed until they complete the exterior block work. The actual cost of delaying this work has been negotiated with the City's Downtown Streetscape contr8cto~, Duininck Bros. Inc. and will be formally included in the project cost by a change order. These costs will be directly assessed against the property within the Downtown Streetscape assessment roll. ! I Attached are the necessary Resolutions to revise the assessment roll accordingly. We recommend approval of the revised Assessment RoD and associated Resolutions. cc: Gary Plotz - City Administrator ~c~ e e e CONSTRUCTION EXCELLENCE Sf::lptElm~r ?1. ?OOR Mr. Quentin Larson Project Inspector 111 Hassan Street SE Hutchinson, MN 55350-2522 Re: Letting No.4 Streetscape project Remobilization in October ' Dear Quentin: The cost for delaying to the streetscape project to the 10th of October is an additional $2,600. This is to be added to the original re-mobilization charge of $2,900.00 submitte<j March 31, 2006. Also, we reserve the right to collect additional pay should we encounter winter conditions that will drive our costs higher. This includes, but is not limited to, heated concrete, blankets, and the like. :1 Also, the warranty on the concrete placed on this portion of the project will not apply due to our inability tp keep the General Contractor from driving his equipment on the sidewalk. cc. OBI Office File , Jon Kennedy, OBI Hutchinson DUININCK BOS., INC.,40S 6TH STREET, P.O. BOX 20S, PRINSBURG, MINNESOTA 562S1 -o20S TELEPHONE (320) 978-601 1 . FAX (320) 97S-4978 f 1'\) An Equal Opporruniry Employer \D L e e e AGREEMENT OF ASSESSMENT, WAIVER OF HEARING AND WAIVER OF IRREGULARITY AND APPEAL LETTING NO.4 PROJECT NO. 05-04 & 05-05 This agreement is made this 25th day of April, 2006. between the City of Hutchinson, State of Minnesota, hereinafter referred to as the City and Cornerstone Commons LLC of McLeod County, State of Minnesota, hereinafter referred to as Responsible Entity. In consideration of the action of the City Council, at the Responsible Entitys' request, to cause the construction of: 05-04 Main Street between 1st Avenue N and 4th Avenue S by construction of concrete sidewalk, street lights, landscaping, restoration and appurtenances, and 05-05 Washington Avenue West between Main Street S and Franklin Street SW by construction of concrete sidewalk, street lights, landscaping, restoration and appurtenances, and on real property described as Lot 1, Block 1. Cornerstone Commons, City PID# 31-117-29-14-0770, County PID# 23.477.0010, and to assess 1oo%of the cost of $25,952.00 to the Responsible Entity. Responsible Entity agrees to pay said percentage, as may be determined by the Council of the City to be a fair apportionment of the costs of said improvement not to exceed $25,952.00 plus interest, over a period ten years. Responsible Entity expressly waives hearing and objection to any irregularity with regard to the said improvement assessments and any claim that the amount thereof levied against Responsible Entity's property is excessive, together with all rights to appeal in the courts. Upon approval this agreement shall be binding upon and extend to the heirs, representatives, assigns and successors of the parties. I I In testimony, whereof, said Responsible Entity has hereunto set his hand, the day and year first abcive written. I RESPONSIBLE ENTITYS SIGNATURE: I ! IN PRESENCE OF: 1) Christian Ochsendorf, Chief Manager Cornerstone Commons LLC wC0 e e RESOLUTION NO. 13055 REVISED RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ASSESSMENT ROLL NO. 5080 LElTlNG NO. 4/PROJECT NO. 05-04 & 05-05 WHEREAS, cost has been determined for the improvement of: 05-04 Main Street between 1st Avenue N and 4th Avenue S by construction of concrete sidewalk, street lights, traffic signal system revisions,landscaping, restoration and appurtenances, and 05-05 Washington Avenue West between Main Street S and Franklin Street SW by construction of concrete sidewalk, street lights, watermain, storm sewer, landscaping, restoration and appurtenances, and the bid price for such improvement is $25,952.00 and the expenses incurred or to be incurred in the making of such improvement amount to $0.00 so that the total cost of the improvement will be $25,952.00. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The portion of the cost of such improvement to be paid by the City is hereby declared to be $0.00 and the portion of the cost to be assessed against benefited property owners is declared to be $25,952.00. 2. Assessments shall be payable in equal annual installments extending over a period of 9 years, the first of the installments to be payable on or before the first Monday in January, 2007 and shall bear interest at the rate of 4.51 percent per annum from November 1, 2006. 3. The City Administrator, with the assistance of the City Engineer, shall forthwith calculat~the proper amount to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law,.' and he shall file a copy of such proposed assessment in his office for public inspection. I 4. The City Administrator shall, upon the completion of such proposed assessment, notiw the Council thereof. . Adopted by the Council this 11 th day of October 2006. Mayor e City Administrator lnt0 COMPILED BY: K EXNER REVISED ASSESSMENT ROLL NO. sg t.lj'.;m $72.19317 TSTREET COSTIFF .- COMPUTED BY: K EXNER LETTING NO. 4/PROJECT NOS. 05-04 & 06-45 1ST HEARING: WAIVED ~: Maln S_ __ lot Avenue N ond.otll Avon... S by conotructIon ol c:onc:mo _... _Ughto, trofIIc olgnal CHECKED BY: P VANDER \IEEN oyotom ......lIiono, IondocapIng ,...tontIon end ~ 2ND HEARING: WAIVED NUMBER OF YEARS: 9 05-0a: WnhIngton A_ Wool...- IIoIn _ S end FronkIIn _ SW by conotructIOlI of c:onc:mo_", ADOPTED: 0412512008 INTEREST RATE: 4.61% __ llahto, wotwrmoIn, otorm _. 1ondocopIna. roolomlOll ond oppurtononceo, REVISED ASSESSMENT ADOPTED: 10111/2006 ACCT. CITY P10 NO. NA/IIe & ADIlIl1!lIS LEGAl. DESCRIPT10N 8TREI!T TOTAl DEFERRED TOTAl ACTIVE ADDmON OR SUBDMSlON . ASSESsMeNT NO. COUNTY P10 NO. OF PROPERTY OWNeR FF AlISESSIIENT ASSESSIIan- 1 31-117-29-14.0770 CORNERSTONE COMMONS 1001 MAIN STN ... 75090 ST f{WY 4 .> , 23A77.oo10 HECTOR MN 55342 LOT 1. BLOCK 1, CORNERSTONE COMMONS 359,048 525,952.00 $28,ge2.oo TOTAl. - ASSESSMENT ROLL NO. 5OllO . LETTING NO. M'ROJe<:T NO$. ~ &_ 35U8 $28,lII2.oo so.oo $28,952.00 ~ ("'., I o SA-508OI2OO5 LETTING NO, W5-04 05-CM'AGE 1 OF 1 e e RESOLUTION NO. 13056 REVISED RESOLUTION WAIVING HEARING ON PROPOSED ASSESSMENT ASSESSMENT ROLL NO. 5080 LETTING NO. 4/PROJECT NO. 05-04 & 05-05 CORNERSTONE COMMONS WHEREAS, by a resolution passed by the Council on the 25th day of April 2006, the City Engineer was directed to prepare a proposed assessment of the cost of improving: 05-04 Main Street between 1 st Avenue N and 4th Avenue S by construction of concrete sidewalk, street lights, traffic signal system revisions, landscaping, restoration and appurtenances, and 05-05 Washington Avenue West between Main Stre~t S and Franklin Street SW by construction of concrete sidew<:llk, street lights, watermain, storm sewer, landscaping, restoration and appurtenances; WHEREAS, the City Engineer has notified the Council that such proposed assessment has been completed and filed in his office for public inspection; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: Adopted by the Council this 11 th day of October 2006. Mayor City Administrator ~( ") e e e RESOLUTION NO. 130S7 RESOLUTION ADOPTING REVISED ASSESSMENT ASSESSMENT ROLL NO. S080 LETTING NO. 4/PROJECT NO. 05-04 & OS-oS WHEREAS, pursuant to resolution and waiver of hearing the Council has met and reviewed the proposed assessment for improvement of 05-04 Main Street between 1st Avenue N and 4th Avenue S by construction of concrete sidewalk, street lights, traffic signal system revisions, landscaping, restoration and appurtenances, and 05-05 Washington Avenue West between Main Street S and Franklin Street SW by construction of concrete sidewalk, street lights, watennain, storm sewer, landscaping, restoration and appurtenances, AND WHEREAS, due to additional construction costs, the assessment amount will increase by $2,600.00, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted, and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable in equal annual installments extending over a periQd of nine (9) years, the first of the installments to be payable on or before the first Monday in Januaw, 2006, and shall bear interest at the rate of 4.51 percent per annum as set down by the adoption:of this assessment resolution. To the first installment shall be added interest on the entire a55essm~nt from November 1, 2006 until the 31 st day of December 2007 . To each subsequent installment when due, shall be added interest for pne year on all unpaid installments. I 3. The owner of any property so assessed may, at any time prior to certification ofrthe assessment to the County Auditor, pay the whole of the assessment on such property, with inte'rest accrued to the date of payment, to the City Treasurer, except that no interest shall be charged if the entire assessment is paid by the 15th day of November, 2006; and he may, at any time there~fter, pay to the City Treasurer the entire amount of the assessment remaining unpaid, with interest accrued to the 31st day of December, of the year in which such payment is made. Such payment must be made before November 15, or interest will be charged through December 31, of the next succeeding year. 4. The Administrator shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County, and such assessment shall be collected and paid over in the same manner as other municipal taxes. Adopted by the Council this 11 th day of October, 2006. City Administrator Mayor we;) e Memo Hutchinson HRA To: From: Date: Mayor and City Council Jean Ward, HRA Director ~ ~t0 October 4, 2006 Request for Mayor to execute Pre-Application Cover Page to DEED for SCDP owner occupied rehab funding Re: e I am happy to report that the HRA has received 41 eligible owner occupied pre- applications for the proposed neighborhood adjacent to the recently closed out Franklin Grove Neighborhood. Therefore, we will have a waiting list sufficient to apply for funding for twenty homeowners in the targeted area. I have attached a fact sheet about the proposed program and a map of the targeted area for your information. At this point, the HRA is requesting authorization for the Mayor to execute the DEED SCDP owner occupied rehab pre-application cover page. The pre-application is not yet complete but will be submitted to DEED by October 24, 2006. If our pre- application is accepted, we will be directed to submit a full application to DEED by February 1,2007. Thank you for your interest and support of this proposed project. e tplJ) Proposed CITY OF 'HUTCHINSON HOUSING REHABILITATION PROGRAM FACT SHEET . The City of Hutchinson is applying for funding for homeowners interested in improving their homes from the _innesota Department of Employment & Economic Development, Small Cities Development Program (SCDP). . This assistance to Homeowners is in the form of a 0% Interest, Deferred Loan forgiven after 10 years. If the property Is sold, title is transferred, or the Borrower no longer lives in the home before the 10-year forgiveness date, 10% wUl be forgiven each full year in the home. . The maximum SCDP Loan amount available is $24,999, per property. Any costs exceeding this amount will be the responsibility of the Homeowner. . The Main Purpose of the Program is to address Health & Safety Issues, along with other improvements such as Repair . or Replacement ofthe flowing: ~ Defective plumbing, heating or electric systems ~ Roofing, windows and doors ~ Exterior carpentry such as rotting siding. porches and steps, etc. ___ ___. "__~~_,,,_"-.' 0"7'""'-,-...:_',_ __,,~.- ,,' Interior carpentry such as walls and floors ~ Handicap Accessibility Issues . A Minnesota licensed general contractor that is on file at the HRA office wiD have to do the rehab work and depending if your home has lead-based paint, a Lead-Certified Contractors may be needed. . . TOQUa~ You must live in the targeted neighborhood , . i ~ You must own the home free ahd clear of debt OR have 1/3 fee title interest in the property, thrbugh a Mortgage. Contract of Deed or Life Estate that is on record at the McLeod County Recorder's Office.: , ~ If required, you must be able to acquire an Owner Match , ~ Income Levels: Level Number One - Very Low to Low, which is up to 60% of Median Area lr..6ome, will not require an Owner Match; Level Number Two - Low to Moderate, 61% - 80% of Medial;l Area Incom.e, requires 40% of project. cost to be an Owner M~tch. Match funds can be obtained frqm other low - Interest loan products available through the Hutchmson HRA. ! ~ You must be CUffenton House Payments and Property Taxes Your Gross Annual Total Household Income, of any person age 18 or older, including ALL SOURCES of income, cannot exceed the following limits: FAMILY SIZE 1 2 3 4 5 6 7 8 LEVEL 1 INCOME 27,600 31,560 35,460 39,420 42,600 45,720 48,900 52.020 LEVEL 2 INCOME 36,800 42,050 47,300 52,550 56,750 60,950 65,150 69,350 e G:\HRA \DTED & SCDP Programs\New Rehab Projects\Housing Rehabilitation Fact Sheet 2006.doc 0G) ~T-C'<t":J~~Y !<~-l--i ! ;.lj-L \ i \ [\ H i 'i ! ! \ i: I i I CL ti \ U I Ll _J \ '.,J "","~.I" \ iTl iI' I I I 1 I : r,,, I I ,__ lAi<EUST SW L- . .{~,~~j '''--"'I' ~::~~::-l..-J___ \ I'/'!-;JJJ' ,,-LJ H '~,i<\--i ~I IL H~:t"l 1-~ II~ -H ~ ---L-..J II \ '" "- I ., I ~+ ,01 I' o__L~o '~L I I -H I I \' "--,.,. '-.J....., (-'~"L__ I~ .,..,',Gl'~ -~ s:t-+ IUlf---B,<r ," II ,~ ! ,,-,~ '-...i... ,,- "~' "..'. 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I i :Z & ~ iiI -; 8 h=i I ~ ~ ; ~ )> II ~'ll II E :':~';', ;l;~}ll~rJt I \, :L. \ ,I ' J """.:Xl ,. - >8 OW~ ,,' ~T' s~' "'~,;. ,.il,:t~~'.. _ i \ ~' '- '~ '~ ~ m 'i ;'1i Ii 1 ~ ~ p p ~ - - - -, - I \ '" r ;:-'" A "-. r: '" j>; ~...,. ~ '! \ I r----~ i \ \ , 1 I I '\ 1\, [', L~ I]DI~ ~ ~ Il' - a ~ ~ - _ c ~ :> g (j) :E ROAD W .:")~ ~ '~.:,i...'.. . . ," T SW ~. 'Q ,::U",' w.z tT1 ST S ." 'ii -i I ST SE ~ m r~Tl i-Tn .,,\ I \ J-iLllJ ~ITl \ \ \~Ll n I L~-, UlJ, \" ,0' J '[ J~~~)<;'::' rl~-'" "\,,/ .,..:,./. , , I ' )'....' ',,' ... ~I,~~~~ / -- , ,..... ....... \ \ />,' .' \ /,'v ,.."""", ,,.,, \/ // ,/' / i i \ \'l~(!l L.--..J-LJ.....J iii L__...L; ~ r i' _J Ul iT'-' m \.__.___L.._....__J m LLL .~__' -1", JEFFERSON ST SE r:::~l1jQ!1: \j~~d~~lAJj i'-\ L_J _ r-T---;-' I I I I \ ~- ~.,. ADAMS ///I~ 1.'---:-1' -'-1. ril~,' TTI,"! I I I i .~....,. 1;0 L-L-.-.....:...-~....L....~l-L-~ I -1-1 1~r-r!TT-n-,-r-,-T I' I I Ti! 1m! i: I i Ii! I i LLi i! i i! ,~'_'--'--'--'_~,-'--'----J-l.- MONROE' I '------l'TrrT\ 11Trj ST SE f----~n fub ST SE \ fll-J': l__L...:'.-1- ..J I'Tn:' ; I I : I I ~-"_...L.-i..-.J..-, 11'- l___L_._. n-,-- I ' , L__LJ_ m---~ ~,~-~ '--'n- i. . i, I',. I, i ' , I I I ii, LL.LL~ I ! ! loG) e ORDINANCE NO. 06-0440 AN ORDINANCE ESTABLISHING A PROCEDURE FOR ENFORClNG ADMINISTRATIVE PENALTIES FOR CERTAlN PETIY MISDEMEANORS AND MUNICIPAL CODE VIOLATIONS The City Council of the City of Hutchinson does ordain as follows: Section 1. Pumose: It is the intent of the City to establish in this ordinance a procedure to provide an informal, cost-effective and expeditious alternative to traditional criminal citations for violations of certain petty misdemeanors and municipal code violations. The procedures herein established are intended to be voluntary on the part of the offending party. Any offender may, prior to payment of the administrative penalty herein established, withdraw from participation in the procedures established in this ordinance and the City may thereafter file criminal charges in accordance with state law and established cOUl1 proceuun:s. Ii shall !:-;: in the discretion of the City to file a criminal citation in the McLeod County District Court in lieu of following the administrative procedure established in this ordinance. If an offending party elects to participate in the administrative procedures established in this ordinance but fails to pay the applicable monetary penalty, the City shall have the right to file a criminal citation in the McLeod County District Court and to pursue collection of all costs associated with the administrative procedure herein established. e Section 2. Definition of Administrative Offense. An administrative offense is a violation of any of the offenses hereinafter set out and is subject to the administrative penalties set forth in the schedule included in this ordinance. e Section 3. Notice to Offending Partv. Any member of the Police Department or any other person designated by the City Council to enforce this ordinance shall, upon determining there has been a violation of an offense set out in this ordinance, provide a written notice to the offending party. The written notice shall set forth the specific offense that has been committed, the date and time of the violation, and the name of the officer or other employee of the City issuing the written notice. The notice shall further state the amount of the penalty, the date by which the penalty must be paid, and the place where payment must be made. In the event the violation is in the nature of a parking violation and the owner or operator of the offending vehicle is not present, the officer or other designated employee of the City shall attach the written notice of violation to the windshield wiper or door handle of the vehicle. Section 4. Payment of Penalty. All persons receiving a written notice of violation in accordance with this ordinance shall make payment of the penalty set out in this ordinance within seven days of the date of issuance of the notice of violation. Payment shall be made by mail or in person to the City Administrator. Section 5. Failure of Offending party to Pay. In the event an offending party shall fail to pay the penalty for the designated offense as set out in this ordinance, the issuing officer may then file a citation or formal complaint with the McLeod County District Court. Section 6. Duties of City Administrator. It shall be the responsibility of the City Administrator, or other designee assigned by the City Administrator, to keep a full, accurate and complete record of all penalties collected pursuant to this ordinance and the person who has paid the penalty. The City Administrator, or designee, shall make regular reports to the City Council, Police Chief and the City Attorney of the number of offenses for which payment has been received and the number of offenses for which no payment has been received. I I I ! I 9(0) e e e Exhibit "A" OFFENSE DESCRIPTION ORDINANCE/ PENALTY STATUTE Muffler Violation Minn. Stat. ] 69.69/0rdinance 73.03 70 Exhibition Driving Ordinance 71.05 70 Failure to Yield Minn. Stat. ] 69.20 70 Parking Over Time Limit Ordinance 72.04 5 Parking Violations Ordinance 72.0] -72.14 25 Bicycle, Skateboards, Roller Blades Ordinance 733! n ) (l Violations Snowmobile Operations Violations Ordinance 73.02 70 Snowmobile Equipment Violations Ordinance 73.03 70 A TV Violations Ordinance 84.92 70 Motorized Golf Carts Ordinance 73.16 70 Motorized Scooters Ordinance 73. 1 7 70 , Abandoned Vehicle Ordinance 91.02 70 , I Public Nuisance Ordinance 92.] 8 70 ! Dog/Cat Running at Large Ordinance 93.] 7 70 I Barking DoglUnlicensed Dog Ordinance 93.23 70 ; Expired Vehicle Registration Minn. Stat. ] 68-09 70; Noisy Party Ordinance 130.23 70 Amplified Noise Ordinance] 30.20 70 Speeding (1-15 over) Minn. Stat. 169.14 70 Obscured Vision Minn. Stat. ]69.37 70 Engine Braking Noise Ordinance 71.11 70 Fireworks Violations Ordinance ]30.08 70 Seat Belt Minn. Stat. 169.14 70 Recreational Fires Ordinance 92.69 70 Watering Ban Violation Ordinance 52.06 70 Window Tint Minn. Stat. 169.71 70 9(0 e e e Disobey Signs/Signals Minn. Stat. ]69.06 70 Driving Rules Violation Minn. Stat. 169.18 70 Turning and Starting Violation Minn. Stat. 169.19 70 Equipment Violation Minn. Stat. 169.46-.65 35 9Lc9 e e e Memorandum TO: Mayor and City Council Brenda K. Ewi~an R"o"",,, D;rectm Resolution No. 13058 and Documentation Regarding the Estab]ishment of the City of Hutchinson Retirement Health Savings Plan FROM: RE: DATE: October 6, 2006 Attached are Resolution No. 13058 and the additional documentation that is required to be completed, approved and submitted to lCMA Retirement Corporation for the establishment of the City of Hutchinson Retirement Health Savings. If approved, the documents will be forwarded to ICMA for final review and approval. If upon lCMA's review the documents would need revision, they will be brought back to the Council for reconsideration and necessary amendment. 1 will be at the City Council meeting on the 1 I th to discuss this matter. Encl. ql~ e CITY OF HUTCHINSON RESOLUTION NO. 13058 Resolution for the Adoption of the Vantagecare Retirement Health Savings (RHS) Program Plan Number: 801393 Name of Employer: City of Hutchinson State: Minnesota Resolution of the above-named Employer (the "Employer"): WHEREAS, the Employer has employees rendering valuable services; and WHEREAS. the establishment of a retiree health savings plan for such employees serves the interests of the Employer by enabling it to provide reasonable security regarding such employees' health needs during retirement, by providing increased flexibility in its personnel management system, and by assisting in the attraction and retention of competent personnel; and WHEREAS, the Employer has determined that the establishment of the retiree health savings plan (the "Plan") serves the above objectives; NOW, THEREFORE BE IT RESOLVED, that the Employer hereby adopts the Plan in the form of the ICMA Retirement Corporation's VantageCare Retirement Health Savings program. e BE IT FURTHER RESOLVED that the assets of the Plan shall be held in trust, with the Employer serving as trustee, for the exclusive benefit of Plan participants and their beneficiaries, and the assets of the Plan shall not be diverted to any other purpose prior to the satisfaction of all liabilities of the Plan. The Employer has executed the Declaration of Trust of the City of Hutchinson Integral Part Trust in the form of: o The model trust made available by the ICMA Retirement Corporation o The trust provided by the Employer (executed copy attached hereto). i I , BE IT FURTHER RESOLVED, that the Human Resources Director shall be the coordinator and contact for the Plan and shall receive necessary reports, notices, etc, . I ! I, Gary D. Plotz, City Administrator of the City of Hutchinson, do hereby certify that the foregoing resolution, proposed by City Council Member . was duly passed and adopted in the Council Chambers of the City of Hutchinson at a regular meeting thereof assembled this day of October. 2006 , by the following vote: AYES: NAYS: ABSENT: e (Seal) City Administrator City of Hutchinson. Minnesota 1Lb) e ADMINISTRATIVE SERVICES AGREEMENT e Type: VantageCare RHS Account Number: 801393 City of Hutchinson e i i I ~(1) e e e Plan # 801393 ADMINISTRATIVE SERVICES AGREEMENT This Agreement, made as of the_day of , 20 (herein referred to as the "Inception Date"). between The International City Management Association Retirement Corporation ("ICMA-RC"). a nonprofit corporation organized and existing under the laws of the State of Delaware; and the City of Hutchinson ("Employer") a local governmental instrumentality organized and existing under the laws of the State of Minnesota with an office at 111 Hassan Street, Se, Hutchinson, Minnesota 55350-2522. RECITALS Employer acts as a public plan sponsor for a retiree health plan with responsibility to obtain investment alternatives and services for employees participating in that plan; Employer desires to make the VantageCare Retirement Health Savings Plan j"RHS Plan" or "Plan") provided by ICMA-RC available to its employees; ICMA-RC makes available the Vantagepoint Funds, a no-load, diversified mutual fund, for investment of public employer plan assets, including RHS Plan assets; ICMA-RC provides a complete offering of services to public employers for the operation of employee retirement and retiree health savings plans including, but not limited to, communications concerning investment alternatives, account maintenance, account record-keeping, investment and tax reporting, form processing, benefit disbursement and asset management. AGREEMENTS 1 . Acceptance of RHS Plan Employer agrees to make the RHS Plan provided by ICMA-RC available to its employees. The details of the RHS Plan shall be as mutually agreed between the Employer and ICMA-RC, and in general shall be as set forth in the RHS Plan materials developed by ICMA-RC and provided to Employer. The RHS Plan materials are hereby incorporated by reference and made a part of this Agreement, except that Employer and ICMA-RC may from time to time mutually agree in writing to terms that vary from the RHS Plan materials. RHS plan materials shall include the VantageCare RHS Employer Manual, available electronically through the EZ link System upon plan adoption. The functions to be performed by ICMA-RC and its agents include: (a) allocation in accordance with participant direction of individual accounts to - 2 - q[-0 e e e Plan # 801393 investment funds ("Funds") made available to Plan participants; (b) maintenance of individual accounts for participants reflecting amounts contributed, income, gain, or loss credited, and amounts disbursed as benefits; (c) provision of periodic reports to the Employer and participants of the status of Plan investments and individual accounts; (d) communication to participants of information regarding their rights and elections under the Plan; (e) disbursement of benefits as agent for the Employer in accordance with terms of the Plan; and (f) performance of tax wlthhoiding and reporting in conjunction with the Employer for each RHS account. 2. Em plover Dutv to Furnish Information Employer agrees to furnish to ICMA-RC on a timely basis such information as is necessary for ICMA-RC to carry out its responsibilities with respect to the Plan, including information needed to allocate individual participant accounts to Funds, and information as to the employment status of participants, and participant ages; addresses, beneficiaries and other identifying information (including tax identificatioo numbers). ICMA-RC shall be entitled to rely upon the accuracy of any information that is furnished to it by a responsible official of the Employer or any information relating tlo an individual participant, dependent, or beneficiary that is furnished by sUlqh participant, dependent, or beneficiary, and ICMA-RC shall not be responsible for aky " error arising from its reliance on such information. ICMA-RC will provide aCCOl,lrt information in reports, statements or accountings. .. 3. I, !' ': " Certain Representations and Warranties ICMA-RC represents and warrants to Employer that: (a) ICMA-RC is a non-profit corporation with full power and authority to enter into this Agreement and to perform its obligations under this Agreement. (b) ICMA-RC is an investment adviser registered as such with the Securities and Exchange Commission under the Investment Advisers Act of 1940, as amended. ICMA-RC Services, LLC (a wholly owned subsidiary of ICMA-RCl is registered as a broker-dealer with the Securities and Exchange Commission - 3 - 9L~ e e e Plan # 801393 (SEC) and is a member In good standing of the National Association of Securities Dealers, Inc. Employer represents and warrants to ICMA-RC that: (c) Employer is organized in the form and manner recited in the opening paragraph of this Agreement with full power and authority to enter into and perform its obligations under this Agreement and to act for the Plan and participants in the manner contemplated in this Agreement. Execution, delivery, and performance of this Agreement will not conflict with any law, rule, regulation or contract by which the Employer is bound or to which it is a party. (d) Information required to be retained by the Employer shall be set forth in the RHS plan materials developed by ICMA-RC and provided to the Employer. (e) Empioyer is responsible for Jetermining that there are no state or local laws that would prohibit it from establishing ICMA-RC's VantageCare RHS program. Employer is also responsible for determining that the investments selected for the RHS plan fall within state/local requirements. (f) Employer acknowledges that the RHS plan may be treated as a "health plan" for Health Insurance Portability and Accountability Act ("HIPAAU) purposes and therefore may be subject to HIPAA privacy rules. If it is determined that the RHS plan is considered a "health plan", an employer sponsoring RHS would be responsible for complying with the HIPAA privacy and security rules regarding protected health information of RHS plan participants. ICMA-RC has procedures in place to safeguard the protected health information of RHS plan participants. 4. Participation in Certain ProceedinQs The Employer hereby authorizes ICMA-RC to act as agent, to appear on its behalf, and to join the Employer as a necessary party in all legal proceedings involving the garnishment of benefits or the transfer of benefits pursuant to a medical child support order. Unless Employer notifies ICMA-RC otherwise, Employer authorizeslCMA-RC to determine whether disbursement of benefits to a former spouse, spouse or child pursuant to a medical child support order is appropriate. 5. Compensation and Payment (a) Absent an explicit agreement to the contrary between ICMA-RC and Employer, participant fees and expenses shall be payable from RHS assets, in accordance - 4 - Sl~ Plan # 801393 e with the requirements of the RHS Plan as set forth below. (i) Employer with ICMA-RC ~401 and ~457 retirement plan average participant account balances of $25,000 or more: A $30 annual account fee will be charged to each Accountholder's account. The fee will be charged against the account on a quarterly basis. Effective January 1, 2006, the annual account fee shall be waived until attainment of Benefit Eligibility by the Accountholder. Benefit Eligibility shall be transmitted electronically to ICMA-RC by Employer through the EZ Link System. Benefit Eligibility shall mean the quarter in which the Accountholder becomes eligible to use the account for reimbursement of medical expenses under the terms of the Employer's RHS Plan. In addition to the annual account fee, an annual asset fee 01 0.30% (30 basis points) will be charged on a quarterly basis, based on the balance in the account on the last day of the previous quarter. (ij) Employer with ICMA-RC ~401 and ~457 retirement plan average participant account balances of less than $25,000, or Employer who does not currently have a retirement plan with ICMA-RC: e A $30 annual account fee will be charged to each Accountholder's:: account. The fee will be charged against the account on a quarterlY basis. Effective January 1, 2006, the annual account fee shall be waived until attainment of Benefit Eligibility by the Accountholder. Benef;it Eligibility shall be transmitted electronically to ICMA-RC by Employer ,I through the EZ Link System. Benefit Eligibility shall mean the quarte~!in which the Accountholder becomes eligible to use the account ,tor reimbursement of medical expenses under the terms of the Employer's RHS Plan. I, )1 In addition to the annual account fee, an annual asset fee of 0.40% '(40 basis points) will be charged on a quarterly basis, based on the balance in the account on the last day of the previous quarter. When the average participant account balance of the Employer's ~401 and ~457 retirement plans with ICMA-RC totals $25,000 or more (based on the balances in the Employer's retirement plans on the last day of the previous quarter), the pricing detailed in paragraph 8.a. shall apply beginning in the subsequent quarter. e - 5 - ~l-0 e e e Plan # 801393 (iii) Account administration fees are subject to change with appropriate prior notification. (b) Compensation for Advisory and other Services to the Vantagepoint Funds. Employer acknowledges that certain wholly-owned subsidiaries of ICMA-RC receive compensation for advisory and other services furnished to the Vantagepoint Funds. The fees referred to in this subsection are disclosed in the Vantagepoint Funds Prospectus. 6. Custody Employer understands that amounts contributed to the RHS plan are to be remitted directly to Vantagepoint Transfer Agents in accordance with instructions provided to Employer in the RHS plan materials and are not to be remitted to the ICMA Retirement Trust or ICMA-RC. In the event that any check or wire transfer is incorrectly labeled or uansferred, ICMA-RC will return it to Employer with propei' instructiuns. 7. Responsibilitv (a) ICMA-RC shall not be responsible for any acts or omissions of any person other than ICMA-RC in connection with the administration or operation of the Plan. (b) The Employer understands that, as a general matter, the Internal Revenue Service (UIRS") may decline to rule on certain design features or provisions that the Employer may request to have added to the RHS plan materials. The Employer agrees to hold ICMA-RC harmless in connection with the addition and administration of any RHS plan feature or provision requested by the Employer for which the IRS will not provide express interpretive guidance. 8. Term This Agreement shall be in effect for an initial term beginning on the Inception Date and ending 5 years after the Inception Date. This Agreement will be renewed automatically for each succeeding year unless written notice of termination is provided by either party to the other no less than 60 days before the end of such Agreement year. 9. Amendments and Adiustments (a) This Agreement may not be amended except by written instrument signed by the parties. (b) The parties agree that an adjustment to compensation or administrative and operational services under this Agreement may only be implemented by ICMA- - 6 - qL10 e e e Plan # 801393 RC through a proposal to the Employer via correspondence or the Employer Bulletin. The Employer will be given at least 60 days to review the proposal before the effective date of the adjustment. Such adjustment shall become effective unless, within the 60 day period before the effective date, the Employer notifies ICMA-RC in writing that it does not accept such adjustment, in which event the parties will negotiate with respect to the adjustment. (c) No failure to exercise and no delay in exercising any right, remedy, power or privilege hereunder shall operate as a waiver of such right, remedy, power or privilege. 10. Notices All notices required to be delivered under Section 9 of this Agreement shall be delivered personally or by registered or certified mail, postage prepaid, return receipt requested, to (i) Legal Department, ICMA Retirement Corporation, 777 North Capitol Street, N.E., Suite 600, Washington, D.C, 20002-4240; (ii) Employer at the office set forth in the first paragraph hereof, or to any other address designated by the party to receive the same by written notice similarly given. 11 . Complete Aoreement , This Agreement shall constitute the sole agreement between ICMA-RC and Employer: relating to the object of this Agreement and correctly sets forth the complete right~j duties and obligations of each party to the other as of its date. Any prior agreements~ promises, negotiations or representations, verbal or otherwise, not expressly set forij1 in this Agreement are of no force and effect. Ii 12. Governino Law " .Ii This agreement shall be governed by and construed in accordance with the laws of ~he State of Minnesota, applicable to contracts made in that jurisdiction without refere~ce to its conflicts of laws provisions. ' In Witness Whereof, the parties hereto have executed this Agreement as of the Inception Date first above written. CITY OF HUTCHINSON Name of Employer - 7 - ~l~ e e e . . Plan # 801393 by: Signature/Date Name and Title (Please Print) INTERNATIONAL CITY MANAGEMENT ASSOCIATION RETIREMENT CORPORA TION f? ~~ D /1/11. /-:...ll.~..fI)!7J~ by: Paul Gallagher Corporate Secretary - 8 - ~L-0 EMPLOYER VANTAGECARE RETIREMENT HEALTH SAVINGS (RHS) PLAN ADOPTION AGREEMENT Plan Number: 801393 _EmPlOyer Retirement Health Savings Plan Name: City of Hutchinson Retirement Health Savings Plan I. Employer Name: City of Hutchinson State: Minnesota II. The Employer hereby attests that it is a unit of a state or local government or an agency or instrumentality of one or more units of a state or local government. III. The Effective Date of the Plan: January 1. 2007 IV. The Employer intends to utilize the Trust to fund only welfare benefits pursuant to the following welfare ben- efit plan(s) established by the Employer: Hutchinson Retiree Medical and Dental Expense Reimbursement Plan V. Eligible Groups and Participant Eligibility Requirements A. The following group or groups of Employees ell e eligible to participate in the \/antageCare Retiremer.t Hea!th Savings Plan: xxx See attachment All Employees All Full-Time Employees Non-Union Employees Public Safety Employees -- Police Public Safety Employees -- Firefighters General Employees Collectively-Bargained Employees (Specify unit) Other (specify below) to Section V.A. e The group specified must correspond to a group of the same designation that is defined in the statute/>, ordi- nances, rules, regulations. personnel manuals or other material in effect in the state or locality of the Employer. ',I ~ If this box is checked, in lieu of mandatory participation. the Employer provides for a one-tim~ irrevoca- ble election by eligible Employees to participate in RHS. Until such time as the eJ.ection is maille, the Employee shall not participate in the Plan or receive contributions pursuant to Section VI. I Newly eligible Employees shall be provided an election window of.30 days {no mhre than 60 calendar days) from the date of initial eligibility during which they may make the election to participate. P"rti"ip"tinn IT)ay be~in no earlier than the calendar month following thil end of the illection window If the Employee does not make the election in the year of initial eligibility, the election to participate may be made in a later year. An annual election window of 30 days (no more than 60 calendar days) shall be provided during which the election may be made. The election window shall run from November ISto December 15 (insert your annual time frame for the election window, e.g. October 1 to November 29). Participation may begin no earlier than the calendar year following the year of tM elec- tion. Once made, the election is irrevocable and may not be revoked while the participant is a member of the group covered by the RHS plan. e If the Employer's underlying welfare benefit plan or funding under this VantageCare Retirement Health Savings Plan is in whole or part a non-collectively bargained. self-insured plan, the nondiscrimination requirements of Internal Revenue Code (lRC) Section 105(h) will apply. These rules may impose taxation on the benefits received 11 qL0 by highly compensated Employees if the Plan discriminates in favor of highly compensated Employees in terms of eligibility or benefits. The Employer should discuss these rules with appropriate counsel. B. Participant Eligibility .Minimum period of service required for participation is JD......datsrrite N/A if an Employee is eligible to partici- e or to elect to participate immediately upon employment). 2. Minimum age required for eligibility to participate is ~ (write N/A if no minimum age is required). VI.Contribution Sources and Amounts A. Mandatory Contributions o 1. Direct Employer Contributions The Employer shall contribute on behalf of each Participant ~% of earnings or $ Year. for the Plan Definition of earnings: o 2. Mandatory Leave Contributions The Employer will make mandatory contributions of leave as follows: Accrued Sick Leave* 0 Yes 0 No e Accrued Vacation* 0 Yes 0 No Other* (describe) o Yes 0 No * Please provide the formula for determining the AccrLied Leave contribution: An Employee shall not have the right to discontinue or vary the rate of annual leave contributions. o 3. Mandatory Employee Compensation Contributions The Employer will make mandatory contributions of Employee compensation as follows: o Reduction in Salary - % of earnings (as defined in VI.A.1.) or $ contributed for the Plan Year. will be o Decreased Merit or Pay Plan Adjustment - All or a portion of the Employees' annual merit or pay plan adjustment will be contributed as follows: An Employee shall !lQ1 have the right to discontinue or vary the rate of mandatory contributions of Employee compensation. e 12 qO~ B. Elective Contributions 1. Elettive Pre-Tax Contributions ~:r.'...h.....e.........E........Jl1P !o.yerVVifl..P. e.l'.m.it each Employee to make the following elections to make pre-tax ... ntl'iblltionstothePlan; ',,- .- :'..... '. ......, Ii,:!, lrreyocableElection for Pre-Tax Contributions from Compensation: A one-time, irrevocable election .of tl1eaJT)ountofEmployer contributions of compensation made on his or her behalf. The Employer limits the amount elected to either a fixed percentage or a range of percentages Of an ,..., Employee'seclrnings % of earnings (as defined in VIAl.) or up to VIA'l forthe. Plan Year. % of earnings {as defined in ~ewlyeligible Employees shall be provided an election window of 30 days days (no mOre than 60) . from the date of initial eligibility during which they may make the election to contribute. Contributions may begin no earlier than the calendar month following the end of the election windoW. If tnI'! EmPloyee does not make the election in the year of initial eligibility, the eJ:o:ctior1 to cnntra,,].p' may be made in. alateI' year. An annual election window or Ju oays \no more thanbOi shall be provlqed dUl'ing which the election may be made. The election window shaH run from Nov. is to Dee. .1 'i (insert your annual time frame for the election window). Contributions may begin ho ear- lier than the calendar year following the year of the election. Once made,the. election is irrevocable and may not be revoked. 1!J b. Irrevocable Election for Pre-Tax Contributions of Accrued Leave: A one-time, irrevocable election of e the amount of employer contributions of Employee accrued 1[1 other Vacation (describe) leave made on his or her behalf. Leave Payout:~pon Termination and Retirement Sick Leave Payout - See Attachment to Section VI. R. l.".,b. for description The Employer limits the amount elected as shown below: F.~loyee may contribute up to iOO% of the above noted payouts. o sick o Yes o vacation o No Newly eligible Employees shall be provided an election window of 30 days (no more than 60 calendar days) from the date of initial eligibility during which they may make the election to contribute. Contributions may begin no earlier than the calendar month following the end of the election window. If the Employee does not make the election in the year of initial eligibility, the election to contribute may :be made In a later year. An annual election Window of '10 days (no more than 60 calendar days) shall be provided during which the election may be made. The election window shall run from Nov. 15 to Dec. 15 {insert your annual time frame for the election window}. Contributions may begin no earlier than the calendar year following the year of the election. Once made, the election is irrevocable and may not be revoked. ill c. Annual Prospective Election for Pre-Tax Contributions of Leave: An annual, irrevocable election to Annual Sick have his or her 0 sick 0 vacation lXJ otheiLeave Payout (describe) leave to be accrued in the next calendar year contributed to the Plan on his or her behalf .and Annual Police ~oliday Payout. See Attachment to Sect10n VI. B. 1. c. for description. e 13 <1[0 The Employer limits the amount elected as shown below: The Employee mqy contribute up to 100% of the ahovE> annual - o as earned :[) at the end of the calendar year. Contributions of future leave accruals will be remitted to the Plan The election to contribute must be made in the calendar year before the year in whithcontributions arelo begin. Once made, the election shall apply to succeeding calendar years unless otherwise reviseQor revoked by the Employee on an annual basis. An annual election window of ....1O..-days (no more than 60 calendar days) is provideddurin$J whicheligjble Employees may make the election to contribute. The election window shall run frorrfiav.15 teDee. IS (insert your annual time frame for the election window). . In adopting section a, b, and/or c. the Employeracknowledges that the Internal Revenue Service has not ruled on irrevocable election contributions in an integral part trust. ICMA-RC has obtained the acjvice of counsel that such contributions are allowable under thl'! conditions outlined in this Adoption Agreement. The Employer should discuss this issue with appropriate counsel. 2. Volulltary After-Tax Contributions Each Employee may contribute up to _% of earnings (as defined in VI.A.1.) or $ for the Plan Year on a voluntary after~tax basis. In no event may aggregate Employee voluntary after-tax contributions exceed 25% of total contributions in any Plan Year. An Employee shall have the right to discontinue or vary the rate of elective after-tax contributions of Employee earnings. By adopting this section, the Employer acknowledges that the Internal Revenue Service has declined to rule on Anployee after tax contributions in an integral part trust. ICMA-RC has obtained the advice of counsel that such W>ntributions are allowable in an insubstantial amount (i.e. no more than 25% of total contributions in any Plan Year). The Employer should discuss this issue with appropriate counsel. C. Limits on Total Contributions The total contribution on behalf of each Participant (including both Mandatory and Elective Contributions) for each Plan Year shall not exceed the following limit(s): o 10 $ :]a % of earnings (as defined in VI.A.1.), There is no Plan-defined limit on the percentage or dollar amount of earnings that may be contributed, Limits on individual contribution types are defined within the appropriate section above, See Section V,A. for a discussion of nondiscrimination rules that may apply to non-collectively bargained self- insured Plans, e 14 ~lJ0 VII. Vesting Schedule A. The account is 100% vested at all times, unless specified otherwise in B. below. B. The following vesting schedule applies to Direct Employer Contributions outlined in VI.A.1: e Years of Service Completed Specified Percent Vesting % _% _% % % % % _% _% C. The account will become 100% vested upon the death, disability, retirement, or attainment of benefit eligibility by a Participant. Definition of retirement: D. Any period of service by a Participant prior to a rehire of the Participant by the Employer shall not count toward the vesting schedule outlined in B. above. VIII. Forfeiture Provisions Upon separation from the service of the Employer or upon reversion to the Trust of a Participant's account assets remaining upon the participant's death (as outlined in Section XI), a Participant's non-vested funds shall: e 0 Remain in the Trust to be reallocated among all Plan Participant's as Direct Employer Contributio~s for the next and succeeding contribution cyclels).1 o Remain in the Trust to be reallocated on an equal dollar basis among all Plan Participants. 'I ii .0 Remain in the Trust to be reallocated among all Plan Participants based upon Participant accoJnt bal- ances. o Revert to the Employer. In the case of separation from service, the Participant's non-vested funds shall be applied as shown above. In the case of reversion due to the Participant's death under Section XI, the remaining account assets shall be applied as shown above. IX. Eligibility Requirements to Receive Medical Benefit Payments from the VantageCare Retirement Health Savings Plan A. A Participant is eligible to receive benefits: At retirement only (as defined in Section Vll.e.l At separation from service with the following restrictions e At age only At retirement and age At retirement or age 15 ~l10 B. Termination prior to general benefit eligibility: A Participant who separates from the -service of the Employer prior to attaining benefit eligibility as outlined in Section IX.A. or C. will be eligible to receive benefits: D Immediately upon separation from service. D At age . , A Participant who dies or becomes totally and permanently disabled (as defined by the Social Security Administration) will become immediately eligible to receive medical benefit payments from his/her VantageCare Retirement Health Savings Plan account. X. Permissible Medical Benefit Payments Benefits eligible for payment consist of: A. X All Medical Expenses eligible under IRC Section 213* other than direct long-term care expenses, OR B. The following Medical Expenses (select only the expenses you wish to cover under the VantageCare Retirement Health Savings Plan): Medical Insurance Premiums Medical Out-of-Pocket Expenses* Medicare Part B Insurance Premiums Medicare Supplement Insurance Premiums COBRA Premiums Dental Insurance Premiums Dental Out-of-Pocket Expenses* Long Term Care Insurance Premiums Other (Must be eligible under IRC Section 213)* e See Section V.A. for a discussion of nondiscrimination rules which may apply to non-collectivelly bargained, self-insured Plans. XI. Death Benefrt In the event of a Participant's death, the following shall apply: Account Transfer: The surviving spouse and/or surviving eligible dependents (as defined in Section XIII.F.) of the deceased Participant are immediately eligible to maintain the account and utilize it to fund eligible medical bene- fits specified in Section X above. Upon notification of a Participant's death, the Participant's account balance will be transferred into the Vantagepoint Money Market Fund*. The account balance may be reallocated by the surviving spouse or dependents. " Please read the current prospectus carefully prior to investing. An investment in this fund is neither insured nor guaranteed and there can be no assurance that the Fund will be able to maintain a stable net asset value of $1.00 per share. Vantagepoint Mutual Funds are distributed by ICMA-RC Services, LLC, a controlled affiliate of ICMA Retirement Corporation. Member NASD/SIPC. If a Parti.cipant's account balance has not been fully utilized upon the death of the eligible spouse, the account balance may continue to be utilized to pay benefits of eligible dependents. Upon the death of all eligible depend- ents, the balance will be available for medical benefits for the designated beneficiary of the last dependent or spouse to die. Assets remaining upon the death of a designated beneficiary shall be available for medical bene- _its of the beneficiary's designated beneficiary. If there is no living beneficiary(ies). the account will revert to the "Ian to be applied as specified in Section VIII. , 16 ~L0 There will be no elective withholding of federal, state, or local taxes for medical benefit payments to the Participant's spouse's or dependent's designated beneficiary(ies). If there are no living spouse or dependents at the time of death of the Participant, the account will be available ~r medical benefits for the designated beneficiary(ies) of the Participant. Assets remaining upon the death of all .signated beneficiaries shall be available for medical benefits of the beneficiary's beneficiary. If there is no liv- Ing beneficiary(ies), the account will revert to the Plan to be applied as specified in Section VIII. There will be no elective withholding of federal, state, or local taxes for medical benefit payments to the Participant's beneficiary(ies) or any beneficiary's beneficiary. XII. De Minimis Accounts Upon separation from the service of the Employer prior to a Participant becoming eligible for medical benefits from a VantageCare Retirement Health Savings Plan account, Participant accounts that are considered de min- imis as specified below will be paid to the Participant. o The de minimis account value shall be $5,000 or less. o The de minimis account value shall be $ $5,000) or less. (insert dollar amount between $0 and o The Plan shall not allow de minimis account distributions. XIII. The Plan will operate according to the following provisions: A. Employer Responsibilities e 1. The Employer will submit all VantageCare Retirement Health Savings Plan contribution data via electronic submission. 2. Participant status updates and/or changes or personal information updates and/or changes (Parti4ipants' termination dates, Participants' benefit eligibility dates, etc.) will be provided via electronic subm,ission. B. Participant account administration fees will be paid through the redemption of Participant account ~lI1ares, unless agreed upon otherwise in the Administrative Services Agreement. !i C. Employer plan fees will be paid by the Employer as outlined in the Administrative Services Agreement. . ,I D. Assignment of benefits is not permitted. I E. Payments to an alternate payee (payee other than a Participant) are not permitted with the excepti~n of reim- bursement of health insurance premiums to the Employer. F. An eligible dependent is the Participant's lawful spouse and any other individual who is a person described in IRC Section 152(a). G. The Employer will be responsible for withholding, reporting and remitting any applicable taxes, as outlined in the VantageCare Retirement Health Savings Plan Employer Manual. XIV. The Employer hereby acknowledges it understands that failure to properly fill out this Employer VantageCare Retirement Health Savings Plan Adoption Agreement may result in the loss of tax exemption of the Trust and/or loss of tax-deferred status for Employer contributions. e 17 9C~ EMPLOYER By: Title: _ttest: Title: City ~ministrator Accepted: Vantagepoint Transfer Agents. LLC !Zlt.i.df Corporate Secretary e e 18 q~ VantageCare Retirement Health Savings Plan Implementation Data Form - Page 1 ~ Instructions to Employer: Provide necessary information to establish your plan properly, ePlease contact your New Business Analyst at 1-800-326-7272, if you have any questions, ICMA RETIREMENT CORPORATION ICMA-RC Use Only 1. Employer# General Information 2, (902) Employer's Full Name: City of Hutchinson 3. (924) Street Address: III Hassan Street SE (925) 4, (918) City: Hutchinson (919) State: HN (920) Zip Code: 55350 . 5, (633) Primary Contact, Brenda EwinR 6. (634) Primary Contact Title: Human Resources Director 7, (631) Primary Contact Telephone #: (320 ) 234-4213 or 320-587-5151 8, (632) Fax #: ( 320) 234-4240 e . 9. (PTOO) E-mail Address:bewinJ;t@ci.hutchinson.1BD.us 10. (882) Employer's Federal Tax Identification Number. 41 6005253 11. # of Employees: 12. # of Employees Eligible for Plan Participation: 'I 13. # of Employees Eligible to Receive Medical Benefits: Ii i 'I Plan Implementation Information 14. Plan Level Quarterly Stalements: (Note: * = default) a. Sort Order. (629) 0 S=SSN* :u N=Name b, Output Media: (627) ex P=Paper* 0 M=Microfiche c, Type: (626) 0 S=Summary* :u D=Detail o B=Bound 15. (611) Contribution Information: (Note: * = default) ~ EI'e4U~-+c.l:leclORe.)~--IXWo}-Bi.we~kJ.v*----O-(4)-Mnnthjy --U-tSl-Semi--qlJafterly o (1) Weekly 0 (51 Semi-Monthly 0 (9) Bi-annually o (2) Semi-weekly 0 (6) Bi-quarterly 0 (10) Annually o (3) Bi-monthly 0 171 Quarterly 0 (11) Semi-annually o ( ) Other: b, Deposit Medium: 1624) :u Check * DWire Om c, Data Medium: EZ Link Required to participate in RHS Plan e d. First Contribution Date Following Implementation: January 19. 2007 leMA Retirement Corp<Jration . Attn: Records Management Unit. P.O. Box 96220. Washington, DC 20090-6220 . Toll Free 1-800 669-7400 , 20 q (1) VantageCare Retirement Health Savings Plan Implementation Data Form - Page 2 ~ Plan Contacts _ any item #16-21 is left blank, the Primary Contact in #5 will receive mailings ICMA RETIREMENT CORPORATION Payroll Contact Information 16, PTOl Contact Signature: 1200) Contact Name: Brenda Ewi.n~ Please indicate (200) Contact Title: Human Resources Coordinato alternate addresses in (420) Telephone: (320) 234-4213 Fax: I Coments Section 17. PT08 Contact Signature: (200) Contact Name: Joleen Runke (200) Contact Title: Payroll/Beneaits Speci,,'i (420) Telephone: (320) 234-4205 Fax: ( 18. PTOS Contact Signature: (200) Contact Name: (200) Contact Title: (420) Telephone: (_I Fax: ( Contribution lS, PT02 (200) Contact Name: Joleen Runke Co nta ct (200) Contact Trtle: Payroll/Beneflits Spe Information (420) Telephone: (3201 234-4205 Trustee Contact 20. PT10 1200) Trustee Name: ormation 1200) Trustee Trtle: 1200) Trustee Address: Street City State 14201 Telephone: ( ) Billing (Fees) 21. PT06 (200) Contact Name: Brenda Ewing Contact (200) Contact Title: Human Resources Dire Information (4201 T elephone:I.J2Jl) 234 4213 Comments: (Alternate Addresses for #16-211 Internal Use Only 641 912 608 - - - r 32~ 234-4240 st 32~ 234-4240 _I cialist Fax: (-3.20 234-4240 Zip Fax: 1_) ctor Fax: 132.Ol 234-4240 _MA Retirement Corporation. Attn: Records Management Unit. P.O, Box 96220. Washington, DC 20090-6220. Toll Free '.800669-7400 21 9 C-h) e Employer VantageCare Retirement Health Savings (RHS) Plan Adoption Agreement Attachment to Section V. A. Per City of Hutchinson Resolution No. 9593 relating to city personnel and establishing a basic personnel policy - Employees in permanent full time positions are those whose regularly scheduled duties consist of 80 hours in a two week pay period, year round. Employees in permanent part time positions are those whose regularly scheduled duties consist of at least 40 hours but less than 80 hours in a two week pay period, year round. e e qL0 Employer VantageCare Retirement Health Savings (RHS) Plan Adoption Agreement e Attachment to Section VI. B. 1. b. Per City of Hutchinson Resolution No. 9593 resolution relating to city personnel and establishing a basic personnel policy: Vacation Leave Payout Upon Termination Any employee leaving the municipal service in good standing after at least one year of service and after giving proper notice of such tennination of employment shall be compensated for vacation leave accrued and unused to the date of separation. Retirement Sick Leave Payout On retirement or upon death before retirement, a payback of'one-third of tl';e amOUii~ over 240 hours will be made. e e qL0 Employer VantageCare Retirement Health Savings (RHS) Plan Adoption Agreement e Attachment to Section VI. B. 1. c. Per City of Hutchinson Resolution No. 9593 resolution relating to city personnel and establishing a basic personnel policy: Annual Sick Leave Payout Sick leave shall accrue at eight hours per month, up to a maximum of 720 hours. After the accumulation of 720 hours, a payback of one-third of the amount over 720 hours will be made annually on or about February 1. No further payment will be made on termination of employment Annual Police Holiday Payout Police Holidays Any employee of the police department who works a rotating shift shall receive 84 hours extra pay per year in lieu of holidays, with payment made in December. Relief police dispatchers and part time officers shall be paid time and one half on holidays. e e qcJ:) VANTAGECARE RETIREMENT HEALTH SA VINGS PLAN DECLARATION OF TRUST OF THE e CITY OF HUTCHINSON INTEGRAL PART TRUST Declaration of Trust made as of the _ day of ,20_, by and between the City of Hutchinson, Minnesota a City (hereinafter referred to as the "Employer") and or its designee (hereinafter referred to as the "Trustee"). RECITALS VVHERE:AS, the Employer IS a political subdivision of the State of Minnesota exempt from federal income tax under the Internal Revenue Code of 1986; and WHEREAS, the Employer provides for the security and welfare of its eligible employees (hereinafter referred to as "Participants"), their Spouses, Dependents and Beneficiaries by the maintenance of one or more post-retirement welfare benefit plans, programs or arrangements which provide for life, sickness, medical, disability, severance and other similar benefits through insurance and self-funded reimbursement plans (collectively the "Plan"); and e WHEREAS, it is an essential function and integral part of the exempt activities of the Employer to assist Participants, their Spouses, Dependents and Beneficiaries by making contributions to and accumulating assets in the trust, a segregated fund, for post-retirement welfare benefits under the Plan; and WHEREAS, the authority to conduct the general operation and administration of the Plan is vested in the Employer or its designee, who has the authority and shall be subject to the duties with respect to the trust specified in this Declaration of Trust; and WHEREAS, the Employer wishes to establish this trust to hold assets and income of the Plan for the exclusive benefit of Plan Participants, their Spouses, Dependents and Beneficiaries; NOW, THEREFORE, the parties hereto do hereby establish this trust, by executing the Declaration of Trust of the City of Hutchinson Integral Part Trust (hereinafter referred to as the "Trust"). and agree that the following constitute the Declaration of Trust (hereinafter referred to as the "Declaration"): e ~L~ RETAIN BOOKLET ARTICLE I Definitions e 1.1 Definitions. For the purposes of this Declaration, the following terms shall have the respective meanings set forth below unless otherwise expressly provided. (a) "Account" means the individual recordkeeping account maintained under the Plan to record the interest of a Participant in the Plan in accordance with Section 7.4. (b) "Administrator" means the Employer or the entity designated by the Employer to carry out admin- istrative services as are necessary to implement the Plan. (c) "Beneficiary" means the Spouse and Dependents, or the person or persons designated by the Participant pursuant to the terms of the Plan, who will receive any benefits payable hereunder in the event of the Participant's death. A Beneficiary may also designate a beneficiaryOes) to receive any benefits payable hereunder in the event of the preceding Beneficiary's death, until the satisfac- tion of all liabilities under the Plan to provide benefits. In the case where there is no designated Beneficiary, any amount of contributions, plus accrued earnings thereon, remaining in the Account must, under the terms of the Plan, be returned to the Trust. (d) "Code" means the Internal Revenue Code of 1986, as amended from t.ime to time. (e) "Dependent" means an individual who is a person described in Code Section 152(a). If} "Investment Fund" means any separate investment option or vehicle selected by the Employerin which all or a portion of the Trust assets may be separately invested as herein provided. The Trustee shall not be required to select any Investment Fund. e (g) "Nonforfeitable Interest" means the interest of the Participant or the Participant's Spouse, Depend- ent or Beneficiary (whichever is applicable) in the percentage of Participant's Employer's cont~bu- tion which has vested pursuant to the vesting schedule specified in the Employer's Plan. A Partici- pant shall, at all times, have a one hundred percent (1000/0) Nonforfeitable Interest in the Partici- pant's own contributions. f (h) "Spouse" means the Participant's lawful spouse as determined under the laws of the state i~ which the Participant has his primary place of residence. (i) "Trust" means the trust established by this Declaration. i (j) "Trustee" means the Employer or the person or persons appointed by the Employer to serJe in that capacity. ' e 5 qLb) VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN ARTICLE II e Establishment of Trust 2.1 The Trust is hereby established as of the date set forth above for the exclusive benefit of Partici- pants, their Spouses, Dependents and Beneficiaries. ARTICLE III Construction 3.1 This Trust and its validity, construction and effect shall be governed by the laws oUhe State of Minnesota State 3.2 Pronouns and other similar words used herein in the masculine gender shall be read as the feminine gender where appropriate, and the singular form of words shall be read as the plural where appropriate. 3.3 If any provision of this Trust shall be held illegal or invalid for any reason, such determination shall not affect the remaining provisions, and such provisions shall be construed to effectuate the purpose of this Trust. ARTICLE IV Benefits e 4.1 Benefits. This Trust may provide benefits to the Participant, the Participant's Spouse, Dependents and Beneficiary(iesl pursuant to the terms of the Plan. 4.2 Form of Benefits. This Trust may provide benefits by cash payment. This Trust may reimburse the Participant, his Spouse, Dependents or Beneficiaryliesl for insurance premiums or other payments ex- pended for permissible benefits described under the Plan. This trust may reimburse the Employer, or the Administrator for insurance premiums. ARTICLE V General Duties 5.1 It shall be the duty of the Trustee to hold title to assets held in respect of the Plan in the Trustee's name as directed by the Employer or its designees in writing. The Trustee shall not be under any duty to com- pute the amount of contributions to be paid by the Employer or to take any steps to collect such amounts as may be due to be held in trust under the Plan. The Trustee shall not be responsible for the. custody, investment, safekeeping or disposition of any assets comprising the Trust, to the extent such functions are performed by the Employer or the Administrator, or both. 5.2 It shall be the duty of the Employer, subject to the provisions of the Plan, to pay over to the Adminis- trator or other person designated hereunder from time to time the Employer's contributions and Partici- pants' contributions under the Plan and to inform the Trustee in writing as to the identity and value of the assets titled in the Trustee's name hereunder and to keep accurate books and records with respect to the Participants of the Plan. e 6 9(1) RETAIN BOOKLET ARTICLE VI Investments e 6.1 The Employer may appoint one or more investment managers to manage and control all or part of the assets of the Trust and the Employer shall notify the Trustee in writing of any such appointment. 6.2 The Trustee shall not have any discretion or authority with regard to the investment of the Trust and shall act solely as a directed Trustee of the assets of which it holds title. To the extent directed by the Employer (or Participants, their Spouses and Dependents, or Beneficiaries to the extent provided herein) the Trustee is authorized and empowered with the following powers, rights and duties, each of which the Trustee shall exercise in a nondiscretionary manner: (a) To cause stocks, bonds, securities, or other investments to be registered in its name as Trustee or in the name of a nominee, or to take and keep the same unregistered; (b) To employ such agents and legal counsel as it deems advisable or proper in connection with its duties and to pay such agents and legal counsel a reasonable fee. The Trustee shall not be liable for the acts of such agents and counselor for the acts done in good faith and in reliance upon the advice of such agents and legal counsel, provided it has used reaso~,dJie care in selecting such agents and legal counsel; (c) To exercise where applicable and appropriate any rights of ownership in any contracts of insurance in which any part of the Trust may be invested and to pay the premiums thereon; and e (d) At the direction of the Employer (or Participants, their Spouses, their Dependents, their Benefi- ciaries, or the investment manager, as the case may be) to sell, write options on, conveyor transfer, invest and reinvest any part thereof in each and every kind of property, whether real, personal or mixed, tangible or intangible, whether income or non-income producing and if wherever situated, including but not limited to, time deposits (including time deposits,in ttk Ii Trustee or its affiliates, or any successor thereto, if the deposits bear a reasonable rate of :1 interest), shares of common and preferred stock, mortgages, bonds, leases, notes, debentures, equipment or collateral trust certificates, rights, warrants, convertible or exchangeable se~uri- ties and other corporate, individual or government securities or obligations, annuity, retirf?- ment or other insurance contracts, mutual funds (including funds for which the Trustee or its affiliates serve as investment advisor, custodian or in a similar or related capacity), or in pnits of any other common, collective or commingled trust fund.; 6.3 Notwithstanding anything to the contrary herein, the assets of the Plan shall be held by the Tru~,tee as title holder only. Persons holding custody or possession of assets titled to the Trust shall include th~ Employer, the Administrator, the investment manager, and any agents and subagents, but not the Trustee. The Trustee shall not be responsible or liable for any loss or expense which may arise from or result from compliance with any direction from the Employer, the Administrator, the investment manager, or such agents to take title to any assets nor shall the Trustee be responsible or liable for any loss or expense which may result from the Trustee's refusal or failure to comply with any direction to hold title, except if the same shall involve or result from the Trustee's negligence or intentional misconduct. The Trustee may refuse to comply with any direction from the Employer, the Administrator, the investment manager, or such agents in the event that the Trustee, in its sole and absolute discretion, deems such direction illegal. e 6.4 The Employer hereby indemnifies and holds the Trustee harmless from any and all actions, claims, demands, liabilities, losses, damages or reasonable expenses of whatsoever kind and nature in connection with or arising out of (i) any action taken or omitted in good faith by the Trustee in accordance with the directions ofthe Employer or its agents and subagents hereunder, or (ii) any disbursements of any part of the Trust made by the Trustee in accordance with the directions of the Employer, or Oii) any action taken by or omitted in good faith by the Trustee with respect to an investment managed by an investment manager in accordance with any direction of the investment manager or any inaction with respect to any 7 9lb) VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN such investment in the absence of directions from the investment manager. Notwithstanding anything to the contrary herein, the Employer shall have no responsibility to the Trustee under the foregoing indemni- fication if the Trustee fails negligently, intentionally or recklessly to perform any of the duties undertaken by it under the provisions of this Trust. " e 6.5 Notwithstanding anything to the contrary herein, the Employer or, if so designated by the Employer, the Administrator and the investment manager or another agent of the Employer, will be responsible for valuing all assets so acquired for all purposes of the Trust and of holding, investing, trading and disposing of the same. The Employer will indemnify and hold the Trustee harmless against any and all claims, actions, demands, liabilities, losses, damages, or expenses of whatsoever kind and nature, which arise from or are related to any use of such valuation by the Trustee or holding, trading, or disposition of such assets. 6.6 The Trustee shall and hereby does indemnify and hold harmless the Employer from any and all ac- tions, claims, demands, liabilities, losses, damages and reasonable expenses of whatsoever kind and nature in connection with or arising out of (a) the Trustee's failure to follow the directions of the Employer, the Administrator, the investment manager, or agents thereof, except as permitted by the last sentence of Section 6.3 above; (b) any disbursements made without the direction of the Employer, the Administrator, the investment manager or agents thereof; and (c) the Trustee's negligence, willful misconduct, or reck- lessness with respect to the Trustee's duties under this Declaration. ARTICLE VII Contributions 7.1 Employer Contributions. The Employer shall contribute to the Trust such amounts as specified in the Plan or by resolution. e 7.2 Participant Contributions. If specified in the Plan, each Participant may make voluntary after-tax contributions; Under no circumstances shall Participant Contributions exceed an insubstantial amount. These contributions shall be collected by the Employer and remitted to the Trust for deposit at such time or times as required under the terms of the Plan. 7.3 Accrued Leave. Contributions up to an amount equal to the value of accrued sick leave, vacation leave, or other type of accrued leave, as permitted under the Plan. The Employer's Plan must provide a formula for determining the value of the Participant's contribution of accrued leave. The Employer's Plan must contain a forfeiture provision that will prevent Participants from receiving the accrued leave in cash in lieu of a contribution to the Trust. 7.4 Accounts. Employer contributions, Participant contributions, and contributions of accrued leave, all investment income and realized and unrealized gains and losses, and forfeitures allocable thereto will be deposited into an Account in the name of the Participant for the exclusive benefit of the Participant, his Spouse, Dependents and Beneficiaries. The assets in each Participant's Account may be invested in Investment Funds as directed by the Participant (or, after the Participant's death, by the Spouse, Dependents or Beneficiaries) from among the Investment Funds selected by the Employer. 7.5 Receipt of Contributions. The Employer or, if so designated by the Employer, the Administrator or investment manager or another agent of the Employer, shall receive all contributions paid or delivered to it hereunder and shall hold, invest, reinvest and administer such contributions pursuant to this Declara- tion, without distinction between principal and income. The Trustee shall not be responsible for the calculation or collection of any contribution under the Plan, but shall hold title to property received in respect of the Plan in the Trustee's name as directed by the Employer or its designee pursuant to this Declaration. e 8 qCb) RETAIN BOOKLET 7.6 No amount in any Account maintained under this Trust shall be subject to transfer, assignment, or alienation, whether voluntary or involuntary, in favor of any creditor, transferee, or assignee of the Em- ployer, the Trustee, any Participant, his Spouse, Dependent, or Beneficiaries. e 7.7 Upon the satisfaction of all liabilities under the Plan to provide such benefits, any amount of Employer contributions, plus accrued earnings thereon, remaining in such separate Accounts must, under the terms of the Plan, be returned to the Employer. ARTICLE VIII Other Plans If the Employer hereafter adopts one or more other plans providing life, sickness, accident, medical, disability, severance, or otherbenefits and designates the Trust hereby created as part of such other plan, the Employer or, if so designated by the Employer, the Administrator or an investment manager or an- other agent of the Employer shall, subject to the terms of this Declaration, accept and hold hereunder contributions to such other plans. In that event (a) the Employer or, if so designated by the Employer, the Administrator or an investment manager or another agent of the Employer, may commingle for invest- ment purposes the contributions received under such other plan or plans with the contribution~ pre";,:,!.Js!y received by the Trust, but the books and records of the Employer or, if so designated by the Employer, the Administrator or an investment manager or another agent of the Employer, shall at all times show the portion of the Trust Fund allocable to each plan; (b) the term "Plan" as used herein shall be deemed to refer separately to each other plan; and (c) the term "Employer" as used herein shall be deemed to refer to the person or group of persons which have been designated by the terms of such other plans as having the authority to control and manage the operation and administration of such other plan. e ARTICLE IX Disbursements and Expenses 9.1 The Employer or its designee shall make such payments from the Trust at such time to such per!jons and in such amounts as shall be authorized by the provisions of the Plan provided, however, that no I payment shall be made, either during the existence of or upon the discontinuance of the Plan (subjePt to Section 7.7), which V';Iould cause any part of the Trust to be used for or diverted to purposes other than the exclusive benefit of the Participants, their Spouses and Dependents, and Beneficiaries pursuant to t~e provisions of the Plan. I I 9.2 All payments of benefits under the Plan shall be made exclusively from the assets of the Accourts of the Participants to whom or to whose Spouse, Dependents, or Beneficiaries such payments are to be made, and no person shall be entitled to look to any other source for such payments. 9.3 The Employer, Trustee and Administrator may be reimbursed for expenses reasonably incurred by them in the administration of the Trust. All such expenses, including, without limitation, reasonable fees of accountants and legal counsel to the extent not otherwise reimbursed, shall constitute a charge against and shall be paid from the Trust upon the direction of the Employer. ARTICLE X Accounting e 10.1 The Trustee shall not be required to keep accounts of the investments, receipts, disbursements, and other transactions of the Trust, except as necessary to perform its title-holding function hereunder. All accounts, books, and records relating thereto shall be maintained by the Employer or its designee. 9 ~lb) VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN 10.2 As promptly as possible following the close of each year, the Trustee shall file with the Employer a written account setting forth assets titled to the Trust as reported to the Trustee by the Employer or its designee. e ARTICLE XI Miscellaneous Provisions 11.1 Neither the Trustee nor any affiliate thereof shall be required to give any bond or to qualify before, be appointed by, or account to any court of law in the exercise of its powers hereunder. 11.2 No person transferring title or receiving a transfer of title from the Trustee shall be obligated to look to the propriety of the acts of the Trustee in connection therewith. 11.3 The Employer may engage the Trustee as its agent in the performance of any duties required of the Employer under the Plan, but such agency shall not be deemed to increase the responsibility or liability of the Trustee under this Declaration. 11.4 The Employer shall have the right at all reasonable times during the term of th.is Declar::!tion :;In_ci..)()r three (3) years after the termination of this Declaration to examine, audit, inspect, review, extract informa- tion from, and copy all books, records, accounts, and other documents of the Trustee relating to this Declaration and the Trustees' performance hereunder. ARTICLE XII Amendment and Termination e 12.1 The Employer reserves the right to alter, amend, or (subject to Section 9.1) terminate this Declar~tion at any time for any reason without the consent of the Trustee or any other person, provided that no ! amendment affecting the rights, duties, or responsibilities of the Trustee shall be adopted without the execution of the Trustee to the amendment. Any such amendment shall become effective as of the 1ate provided in the amendment, if requiring the Trustee's execution, or on delivery of the amendment to the Trustee, if the Trustee's execution is not required. I , ' 12.2 Upon termination of this Declaration and upon the satisfaction of all liabilities under the Plan tp provide such benefits, any amount of Employer contributions, plus accrued earnings thereon, remaining in such separate Accounts must, under the terms of the Plan, be returned to the Employer. ARTICLE XIII Successor Trustees 13.1 The Employer reserves the right to discharge the Trustee for any or no reason, at any time by giving ninety (90) days' advance written notice. 13.2 The Trustee reserves the right to resign at any time by giving ninety (90) days' advance written notice to the Employer. e 13.3 In the event of discharge or resignation of the Trustee, the Employer may appoint a successor Trus- tee who shall succeed to all rights, duties, and responsibilities of the former Trustee under this Declara- tion, and the terminated Trustee shall be deemed discharged of all duties under this Declaration and responsibilities for the Trust. 10 QCJ0 XJ;:;TAIN BOOKLET ARTICLE XIV Limited Effect of Plan and Trust tit Neither the establishment of the Plan and the Trust or any modification thereof, the creation of any fund or account, nor the payment of any benefits, shall be construed as giving to any person covered under the Plan or other person any legal or equitable right against the Trustee, the Administrator, the Employer or any officer or employee thereof, except as may otherwise be expressly provided in the Plan or in this Declaration. ARTICLE XV Protective Clause Neither the Administrator, the Employer, nor the Trustee shall be responsible for the validity of any con- tract of insurance or other arrangement maintained in connection with the Plan, or for the failure on the part of the insurer or provider to make payments provided by such contract, or for the action of any per- son which may delay payment or render a contract void or unenforceable inwhole or in part. tit e 11 C1 (1) e e e VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN IN WITNESS WHEREOF, the Employer and the Trustee have executed this Declaration by their respective duly authorized officers, as of the date first hereinabove mentioned. EMPLOYER: By: Title: TRUSTEES: By: Title: By: Title: By: Title:: I I I I 12 ~L1) e e e ""LI.I1In DUVh.LLJ Internal Revenue Service Department of the Treasury Index Number: 115.02-00 Washington, DC 20224 Contact Person: ~ , Telephone Number: In Refer~nce 19: CC:DOM:FI&P:2 PLR-116685-99 Date: December 28, 1999 City Trust = State = Dear This is in response to a letter dated October 12, 1999, and: prior correspondence, requesting a private letter ruling that Trust is an integral part of City. FACTS ! I City is a political subdivision of State. City currently! maintains one or more post-retirement welfare benefit plans ' (collectively, the "Plan") that provide its eligible employees! ("Participants") and their beneficiaries ("Beneficiaries") with life, sickness, medica~, disability, severance and other simil~r benefits through insurance and self-funded reimbursement plans!. I City intends to establish Trust to hold assets and income of the Plan for the exclusive benefit of Participants and their Beneficiaries. Trust's Declaration defines "Beneficiaries" -::.c :r:.c2.ude a Participant's spouse, any child of the Participant or the Participant's spouse wno is a minor or a student within the meaning of section 151(c) (4) of the Internal Revenue Cede, a~y ether minor child residing with the Participant, and any other individual who is a person described in section 152ta) of the Code. Death benefits may be provided to any Beneficiary designated by a Participant under the terms of a death benef:t program or an i~surance cont~act fo~mi~g pa~~ cf t~e P~a~. _~~~~ 13 q{1) VAN/A{,il:LAKl: Kl:."JlXl:.Ml:NI HEALTH SAVINGS PLAN PLR-116 685 - 99 2 e may provide benefits by cash payment, and may reimburse a Participant, City, or Trust's Administrator for insurance premiums or other payments expended for permissible benefits under the Plan. Under Trust's Declaration, City will be the Administrator of Trust. City may appoint one or more investment managers to manage and control all or part o~ the assets of Trust. Under Trust's Declaration, the Trustee will hold assets only as titleholder. Persons having custody or possession of assets may include City, the Administrator of Trust, the investment manager, and their agents and subagents, but not the Trustee. The Trustee will have no discretion or authority with regard to the investments of Trust and will act solely as a directed Trustee with respect to the assets to which it holds title. The Trustee will not be responsible or liable for any loss Or expense that may arise or result from complying with any direction from the City, the Administrator, the investment manager, or such agents to take title to any assets, or from the Trustee's refusal or failure to comply with any direction to hold title, unless it involves or results from the Trustee's negligence or intentional misconduct. The Trustee may refuse to comply with any direction if it deems such direction illegal. e City indemnifies and holds the Trustee harmless from any actions, claims, demands, liabilities, losses, damages or reasonable expenses of any kind in connection with or arising out ! of (i) any action taken or omitted in good faith in accordance I with its directions, (ii) any disbursements made in accordance ! with directions, or (iii) any action taken by or omitted by the Trustee with respect to an investment managed by an investment manager in accordance with any direction of the investment manager or any inaction regarding any investment in the absence of directions from the in~estment manager. City, however, has no, responsibility to the Trustee under the indemnification if the : Trustee fails negligently, intentionally, or reckless to perform its duties. City will contribute to Trust such amounts as specified in the Plan or by resolution. No other person or persons will be permitted to make any contribu~ions. The Plan must orovice a formula for determining the value of a Particioant's accrued vacation leave, sick leave, or both, in eXcess of-a threshold number of hours of such leave. City may Contribute amounts so determined to Trust. The Plan will contain a forfeiture provision that will prevent Participants and their Beneficiaries from receivina cash in lieu of a contribution to Trust in their behalf. Contributions, investment income, , realized and unrealized gains and losses, and forfeit~res will =e deposited into an account in Trust in the r.ame of t~e ?a~=:cipan= e 14 SC1) RETAIN BOOKLET PLR -116685 - 9 9 3 e for the exclusive benefit of the Participant and his or her Beneficiaries. A Participant may di:!:'ect the investment of amounts in her Or his account among investments selected by City. No amount in any account will be subject to transfer, assignment, or alienation, whether voluntary or involuntary, in favor of any creditor, transferee, or assignee of City, the Trustee, Participant or Beneficiary. City or the Administrator, investment manager, or other agent designated by City will receive contributions and will hold, invest, and administe:!:' contributions without distinction between principal and income. The Trustee will not be responsible for the calculation or collection of contributions, but will hold title to property received as directed by City or its designee. The Trustee will not be required to keep accounts of the investments, receipts, disbursements, and other transaction of Trust except as necessary to perform its title- holding f:::i.ction. City or its designee will maintain a] 1 books and records. City reserves the right to alter, amend, or terminate T:!:'ust at any time for any reason without the consent of any person. No amendment affecting the Trustee is effective without the Trustee's consent, and no termination can result in any part of Trust's assets being used for or diverted to purposes other than the exclusive benefit of Participants and Beneficiaries. e If City adopts otcer plans providing life, sickness, accident, medical, disability, severance, or other benefits and designates Trust as part of such plan, City or its agent will hold contributions to such plan in Trust. The contributions may be commingled for investment purposes, but the books and record of Trust must show the portion of Trust allocable to each plan. Upon the satisfaction of all liabilities under the Plan t:o provide benefits, any amounts remaining in any account must be returned to City. LAW & ANALYSIS Income of an integral part of a state or political subdivision of a state is not taxable absent specific st:atutc~y authorization. See Rev. Rul. 87-2, 1987-1 C.B. 18; section 511(a} (2) (B) of the Code, GCM 14407, C.B. XIV-l, 103 (1935), superseded by Rev. Rul. 71-131, 1971-1 C.B. 28. Whether an enterprise is an integral part depends on facts and circumstances such as the state's degree of control over the enterprise and its financial commitment to the enterprise. If an enterpris~ is an integral pa:!:'t of a state o:!:' political subdivision of a state, it will not be treated as a separate entity for federal tax pu=pcses, thcugh it may have been fermed as a sepa=ate e~t~ty e 15 ~lb) e e e VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN PLR -116 6 8 5 - 9 9 4 under state law. Section 301.7701-1(a) (3) of the Procedural and Administrative Regulations. City has made a substantial financial commitment to Trust by providing all of its funding. City retains complete control over Trust because it may amend or terminate Trust at any time. City retains control over the daily operation of Trust by its power to appoint or remove agents who manage daily operation. The Trustee is merely a title holder with no power to manage Trust. CONCLUSION Provided that City is the only person that makes contributions to Trust, and Trust accepts or holds only amounts of money contributed by City, Trust will be an integral part of City, and any income earned on amounts in Trust will not be subject to federal income tax. it. used This ruling is directed only to the. taxpayer Section 6110 (k) (3) of the Code provides that or cited as precedent. that requested it may not be Except as specifically provided otherwise, no opinion is expressed on the federal income tax consequences of the transaction described above. In accordance with the terms of a power of attorney on in this office, a copy of tn' lette!.- is being sent to your authorized representative. file; I I Sincerely, Assistant Chief Counsel I (Financial Institutions & Product~) By: William Coppersmith William E. Coppersmith Chief, Branch 2 16 9[1) RJ:.TAIN fjUUKLJ:.J e SAMPLE RETIREE MEDICAL AND DENTAL EXPENSE REIMBURSEMENT PLAN e e 17 I , , I , SLb) VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN SAMPLE RETIREE MEDICAL AND DENTAL EXPENSE REIMBURSEMENT PLAN e Article I Preamble 1.01 Establishment of Plan 1.02 Purpose of Plan Article II Definitions 2.01 "Beneficiary . 2.02 "Benefits" 2.03 "Code" 2.04 "Dependent" 2.05 "Eligible Medical or Dental Expenses" 2.06 "Employer" 2.07 "Entry Date" 2.08 "Participant" 2.09 ?Ian Administrator" 2.10 "Plan Year" 2.11 "Retiree" 2.12 "Spouse" Article III Eligibility 3.01 General Requirements e Article IV Amount of Benefits 4.01 Annual Benefits Provided by the Plan 4.02 Cost of Coverage Article V Payment of Benefits 5.01 Eligibility for Benefits 5.02 Claims for Benefits Article VI Plan Administration 6.01 Allocation of Authority 6.02 Provision for Third-Party Plan Service Providers 6.03 Several Fiduciary Liability 6.04 Compensation of Plan Administrator 6.05 Bonding 6.06 Payment of Administrative Expenses 6.07 Timeliness of Payments 6.08 Annual Statements Article VI Claims Procedure 7.01 Procedure if Benefits are Denied Under the Plan 7.02 Requirement for Written Notice of Claim Denial 7.03 Right to Request Hearing on Benefit Denial 7.04 Disposition of Disputed Claims 7.05 Preservation of Other Remedies e Article VIII Amendment or Termination of Plan 8.01 Permanency 8.02 Employer's Right to Amend 8.03 Employer's Right to Terminate 18 I ~(1) RETAIN BOOKLET Article IX General Provisions 9.01 No Employment Rights Conferred _ 9.02 Payments to Beneficiary _ 9.03 Nonalienation of, Benefits 9.04 Mental or Physical Incompetency 9.05 Inability to Locate Payee 9.06 Requirement of Proper Forms 9.07 Source of Payments 9.08 Tax Effects 9.09 Multiple Functions 9.10 Gender and Number 9.11 Headings 9.12 Applicable Laws 9.13 Severability e e 10 qlb) VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN ARTICLE I e THIS INSTRUMENT made and published by the City of Hutchinson (hereinafter called "Employer") on the _ day of .20. creates the Hutchinson Retiree Medical and Dental Expense Reimbursement Plan, as follows: Preamble 1.01 Establishment of Plan The Employer named above hereby establishes a Retiree Medical and Dental Expense Reimbursement Plan as of the day of , 20_. 1.02 Purpose of Plan This Plan has been established to reimburse the eligible Retirees of the Employer for medical and dental expenses incurred by them, their Spouses, Dependents, and Beneficiaries pursuant to the Employer's VantageCare Retirement Health Savings (RHS) Plan. ARTICLE II Definitions The following words and phrases as used herein shall have the following meanings, unless a different meaning is plainly required by the context: e 2.01 "Beneficiary" means the person or persons designated pursuant to the terms of the Plan, who will i receive any Benefits payable hereunder in the event of the Participant's death. A Beneficiary may also / designate a beneciary(ies) to receive any benefits payable hereunder in the event of the preceeding Bem- eficiary's death until the satisfaction of all liabilities under the plan to provide benefits. I 2.02 "Benefits" means any amounts paid to a Participant or Beneficiary in the Plan as reimbursement Ifor Eligible Medical and Dental Expenses incurred by the Participant or Beneficiary during a Plan Year by /1im, his Spouse, his Dependents, or his Beneficiary. 2.03 "Code" means the Internal Revenue Code of 1986, as amended. 2.04 "Dependent" means any individual who is a dependent of the Participant within the meaning o~ Code Se~ 152. ' 2.05 "Eligible Medical or Dental Expenses" means those expenses designated by the Employer as eligible for reimbursement in the VantageCare Retirement Health Savings Plan Adoption Agreement. 2.06 "Employer" means the unit of state or local government creating this Plan, or any affiliate or succes- sor thereof that likewise adopts this Plan. 2.07 "Entry Date" means the first day the Participant meets the eligibility requirements of Article III as of such Date. 2.08 "Participant" means any Retiree who has met the eligibility requirements set forth in Article III. e 2.09 "Plan Administrator" means the Employer or other person appointed by the Employer who has the authority and responsibility to manage and direct the operation and administration of the Plan. 20 qCb) RETAIN BOOKLET 2.10 NPlan Year" means the annual accounting period of the Plan, which begins on the 1st day of January . 20 ....QL and ends on the ....1lliday of December . 20JlL....z with respect to the first Plan Year, and thereafter as long as this Plan remains in effect, the period that begins on January 1 and ends on December 31 e 2.11 "Retiree" means any individual who, while in the service of the Employer, was considered to be in a legal employer-employee relationship with the Employer for federal withholding tax purposes, and who was part of the classification of employees designated as covered by the Employer's VantageCare Retire- ment Health Savings Plan. 2.12 "Spouse" means the Participant's lawful spouse as determined under the laws of the state in which the Participant has his primary place of residence. All other defined terms in this Plan shall have the meanings specified in the various Articles of the Plan in which they appear. ARTICLE III Eligibility Each Retiree who meets the eligibility requirements outlined in the Employer's VantageCare Retirement Health Savings Plan shall be eligible to participate in this Plan. ARTICLE IV Amount of Benefits e 4.01 Annual Benefits Provided by the Plan Each Participant shall be entitled to reimbursement for his documented, Eligible Medical or Dental Ex- ! penses incurred during the Plan Year in an annual amount not to exceed the account balance of the Pa,hici- pant in the Employer's VantageCare Retirement Health Savings Plan. 4.02 Cost of Coverage The expense of providing the benefits set out in Section 4.01 shall be contributed as outlined in the Em- ployer's VantageCare Retirement Health Savings Plan. ! ARTICLE V Payment of Benefits 5.01 Eligibility for Benefits (a) Each Participant in the Plan shall be entitled to a benefit hereunder for all Eligible Medical and Dental Expenses incurred by the Participant on or after the Entry Date of his or her participa- tion, (and after the effective date of the Plan) subject to the limitations contained in this Article V, regardless whether the mental or physical condition for which the Participant makes applica- tion for benefits under this Plan was detected, diagnosed, or treated before the Participant became covered by the Plan. e lb) In order to be eligible for benefits, the Participant must meet the benefit eligibility criteria outlined in the Employer's VantageCare Retirement Health Savings Plan Adoption Agreement. 21 qCb) e e e VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN (c) A Participant who becomes totally and permanently disabled (as defined by the Social Security Administration) will become immediately eligible to receive medical benefit payments from the Plan. Pursuant to Section 9.02 and Employer's VantageCare Retirement Health Savings Plan Adoption Agreement, the surviving Spouse and Dependents, or Beneficiary(ies) shall become immediately eligible to receive or to continue receiving medical benefit payments from the Plan upon the death of the Participant. 5.02 Claims for Benefits No benefit shall be paid hereunder unless a Participant, his Spouse, Dependent or Beneficiary has first submitted a written claim for benefits to the Plan Administrator on a form specified by the Plan Adminis- trator, and pursuant to the procedures set out in Article VI, below. Upon receipt of a properly documented claim, the Plan Administrator shall pay the Participant, his Spouse, Dependent or Beneficiary the benefits provided under this Plan as soon as is administratively feasible. ARTICLE VI Plan Administration 6.01 Allocation of Authority The Employer shall control and manage the operation and Administration of the Plan. The Employer shall have the exclusive right to interpret the Plan and to decide all matters arising thereunder, including the right to remedy possible ambiguities, inconsistencies, or omissions. All determinations of the Employer with respect to any matter hereunder shall be conclusive and binding on all persons. Without limiting the generality of the foregoing, the Employer shall have the following powers and duties: I (a) To decide on questions concerning the Plan and the eligibility of any Employee to participate in the Plan, in accordance with the provisions of the Plan; ! (b) To determine the amount of benefits that shall be payable to any person in accordance with the provisions of the Plan; to inform the Plan Administrator, as appropriate, of the amount o~ such Benefits; and to provide a full and fair review to any Pa rticipant whose claim for benefitsl has been denied in whole or in part; and I (c) To designate other persons to carry out any duty or power which would otherwise be a fiduci- ary responsibility of the Plan Administrator, under the terms of the Plan. (d) To require any person to furnish such reasonable information as it may request for the burpose of the proper administration of the Plan as a condition to receiving any benefits under the Plan; (e) To make and enforce such rules and regulations and prescribe the use of such forms as he shall deem necessary for the efficient administration of the Plan. . 6.02 Provision for Third-Party Plan Service Providers The Plan Administrator, subject to approval of the Employer, may employ the services of such persons as it may deem necessary or desirable in connection with operation of the Plan. The Plan Administrator, the Employer (and any person to whom it may delegate any duty or power in connection with the administra- tion of the Plan), and all persons connected therewith may rely upon all tables, valuations, certificates, reports and opinions furnished by any duly appointed actuary, accountant, (including Employees who are actuaries or accountants), consultant, third party administration service provider, legal counsel, or other specialist, and they shall be fully protected in respect to any action taken or permitted in good faith in reliance thereon. All actions so taken or permitted shall be conclusive and bin~ing as to all persons. 22 qlb) RETAIN BOOKLET 6.03 Several Fiduciary Liability To the extent permitted by law, neither the Plan Administrator nor any other person shall incur any liability for any acts or for failure to act except for his own willful misconduct or willful breach of this Plan. e 6.04 Compensation of Plan Administrator Unless otherwise agreed to by the Employer, the Plan Administrator shall serve without compensation for services rendered in such capacity, but all reasonable expenses incurred in the performance of his duties shall be paid by the Employer. 6.05 Bonding Unless otherwise determined by the Employer, or unless required by any Federal or State law, the Plan Administrator shall not be required to give any bond or other security in any jurisdiction in connection with the administration of this Plan. 6.06 Payment of Administrative Expenses All reasonable expenses incurred in administering the Plan, including but not limited to administrative fees and expenses owing to any third party administrative service provider, actuary, consultant. account- ant, attorney, ":-:,,=cialist, or other person or organization that may be employed by t!::: P!2~ A~mini:;!ratcr in connection with the administration thereof, shall be paid by the Employer, provided, however that each Participant shall bear the monthly cost (if any) charged by a third party administrator for maintenance of his Benefit Account unless otherwise paid by the Employer. 6.07 Timeliness of Payment for Benefrts Payment for Benefits shall be made as soon as administratively feasible after the required forms and documentation have been received by the Plan Administrator. e 6.08 Annual Statements I I i i The Plan Administrator shall furnish each Participant with an annual statement of his medical and dental expense reimbursement account within ninety (90) days after the close of each Plan Year. ARTICLE VII Claims Procedure 7.01 Procedure if Benefits are Denied Under the Plan I Any Participant, Spouse, Dependent, or Beneficiary, or his duly authorized representative may file a claim for a plan benefit to which the claimant believes that he is entitled. Such a claim must be in writing on a form provided by the Plan Administrator and delivered to the Plan Administrator, in person or by mail, postage paid. Within thirty 130) days after receipt of such claim, the Plan Administrator shall send to the claimant, by mail, postage prepaid, notice of the granting or denying, in whole or in part, of such claim, unless special circumstances require an extension of time for processing the.claim. In no event may the extension exceed ninety (90) days from the end of the initial period. If such extension is necessary, the claimant will be given a written notice to this effect prior to the expiration of the initial 3D-day period. The Plan Administrator shall have full discretion to deny or grant a claim in whole or in part. If notice of the denial of a claim is not furnished in accordance with this Section, the claim shall be deemed denied and the claimant shall be permitted to exercise his right to review pursuant to Sections 7.03 and 7.04. e 23 qLb) VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN 7.02 Requirement for Written Notice of Claim Denial The Plan Administrator shall provide, to every claimant who is denied a claim for benefits, written notice e setting forth in a manner calculated to be understood by the claimant: ' (a) The specific reason or reasons for the denial; (b) Specific reference to pertinent Plan provisions on which the denial is based; (c) A description of any additional material of information necessary for the claimant to perfect the claim and an explanation of why such material is necessary, and (d) An explanation of the Plan's claim review procedure. 7.03 Right to Request Hearing on Benefit Denial Within sixty (60) days after the receipt by the claimant of written notification of the denial (in whole or in part) of his claim, the claimant or his duly authorized representative, upon written application to the Plan Administrator, in person or by certified mail, postage prepaid, may request a review of such denial, may review pertinent documents, and may submit issues and comments in writing. 7.04 Disposition of Disputed Claims e Upon its receipt of notice of a request for review, the Plan Administrator shall make a prompt decision on the review. The decision on review shall be written in a manner calculated to be understood by the claim- ant and shall include specific reasons for the decision and specific references to the pertinent plan provi- sions on which the decision is based. The decision on review shall be made not later than sixty (60) days after the Plan Administrator's receipt of a request for a review, unless special circumstances require an extension of time for processing, in which case a decision shall be rendered not later than one hundred- twenty (120) days after receipt of a request for review. If an extension is necessary, the claimant shall b~ given written notice of the extension prior to the expiration of the initial sixty (60) day period. If notice qf the decision on the review is not furnished in accordance with this Section, the claim shall be deemed I denied and the claimant shall be permitted to exercise his right to legal remedy pursuant to Section 7.05. 7.05 Preservation of Other Remedies ! I After exhaustion of the claims procedures provided under this Plan, nothing shall prevent any person from pursuing any other legal or equitable remedy otherwise available. ; ARTICLE VIII Amendment or Termination of Plan 8.01 Permanency While the Employer fully expects that this Plan will continue indefinitely, due to unforeseen, future busi- ness contingencies, permanency of the Plan will be subject to the Employer's right to amend or terminate the Plan, as provided in Sections 8.02 and 8.03, below. 8.02 Employer's Right to Amend e The Employer reserves the right to amend the Plan at any time and from time-to-time, and retroactively if deemed necessary or appropriate to meet the requirements of the Code, or any similar provisions of subsequent revenue or other laws, or the rules and regulations in effect under any of such laws or to conform with governmental regulations or other policies, to modify or amend in whole or in part any or all of the provisions of the Plan. 24 ~L6) RETAIN BOOKLET 8.03 Employer's Right to Terminate The Employer reserves the right to discontinue or terminate the Plan at any time without prejudice. e ARTICLE IX General Provisions 9.01 No Employment Rights Conferred Neither this Plan nor any action taken with respect to it shall confer upon any person the right to be con- tinued in the employment of the Employer. 9.02 Payments After Death of Participant Any benefits otherwise payable to a Participant following the date of death of such Participant shall be paid as outlined in the Employer's VantageCare Retirement Health Savings Plan Adoption Agreement. 9.03 Nonalienation of Benefits No benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assign- ment, pledge, encumbrance or charge, and any attempt to do so shall be void. No benefit under the Plan shall in any manner be liable for or subject to the debts, contracts, liabilities, engagements or torts of any person. If any person entitled to benefits under the Plan becomes bankrupt or attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any benefit under the Plan, or if any attempt is made to subject any such benefit to the debts, contracts, liabilities, engagements or torts of the person entitled to any such benefit, except as specifically provided in the Plan, then such benefit shall cease and ... terminate in the discretior:l of the Plan Administrator, and he may hold or apply the same or any part .. thereof to the benefit of any dependent or beneficiary of such person, in such manner and proportion as j he may deem proper. I I 9.04 Mental or Physical Incompetency I If the Plan Administrator determines that any person entitled to payments under the Plan is incompetept by reason of physical or mental disability, he may cause all payments thereafter becoming due to such person to be made to any other person for his benefit, without responsibility to follow the application of amounts so paid. Payments made pursuant to this Section shall completely discharge the Plan AdminIs- trator and the Employer. 9.05 Inability to Locate Payee If the Plan Administrator is unable to make payment to any Participant or other person to whom a pay- ment is due under the Plan because he cannot ascertain the identity or whereabouts of such Participant or other person after reasonable efforts have been made to identify or locate such person (including a notice of the payment so due mailed to the last known address of such Participant or other person as shown on the records of the Employer). such payment and all subsequent payments otherwise due to such Partici- pant or other person shall be escheated under the laws of the State of the last known address of the Participant or other persons eligible for benefits. 9.06 Requirement of Proper Forms e All communications in connection with the Plan made by a Participant shall become effective only when duly executed on forms provided by and filed with the Plan Administrator. 25 qLb) VANTAGECARE RETIREMENT HEALTH SAVINGS PLAN 9.07 Source of Payments The Employer shall be the sole source of benefits under the Plan. No Employee or Beneficiary shall have ... any right to, or interest in, any assets of the Employer upon termination of employment or otherwise, ,., except as provided from time to time under the Plan, and then only to the extent of the benefits payable under the Plan to such Employee or Beneficiary. 9.08 Tax Effects Neither the Employer nor the Plan Administrator makes any warranty or other representation as to whether any payments received by a Participant, his Spouse, Dependents, or Beneficiary(ies) hereunder will be treated as includible in gross income for federal or state income tax purposes. 9.09 Multiple Functions Any person or group of persons may serve in more than one fiduciary capacity with respect to the Plan. 9.10 Gender and Number Masculine pronouns include the feminine as well as the neuter gender, and the singular shall include the plural, unless indicat",d othe,wise by the COf1text. 9.11 Headings The Article and Section. headings contained herein are for convenience of reference only, and shall not be construed as defining or limiting the matter contained thereunder. 9.12 Applicable Laws e The provisions of the Plan shall be construed, administered and enforced according to the laws of the I I State of Minnesota I I I 9.13 Severability r I Should any part of this Plan subsequently be invalidated by a court of competent jurisdiction, the rerpain- der thereof shall be given effect to the maximum extent possible. ; IN WITNESS WHEREOF, we have executed this Plan Agreement the date and year first written abovci. (Employer) By: ATTEST Secretary e 26 sC0 e e e MEMORANDUM Date: October 3, 2006 To: Honorable Mayor & City Council From: Miles R. Seppelt Economic Development Director RE: Levy for EDA At its October 11th meeting, the Council will consider adoption of a resolution authorizing a levy on behalf of the EDA. A resoiution to that effect is ATTACHED for your review. Also, as suggested at the September 12th City Council meeting, we've done some additional research on how other city's fund their Economic Development Authorities. (see below). The rest of the information below is the same as you've seen before. Please give me a call at (320) 234-4223 at anytime if you have any questions or need additional information. For the past 8 years, funding for the EDA has been pretty much flat. Figure 1, below, shows that the annual transfer to the EDA from the city's General Fund has been essentially unchanged since 1998. Typically it is about $100,000 each year. $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Figure 1 - General Fund Transfers to EDA, 1998 - 2006 1998 1999 2000 2001 2002 2003 2004 2005 2006 ID(~) e e e We've pretty much been able to get away with this because, for 6 of the last 9 years, EDA expenditures have been significantly lower than budgeted, due to staffing changes. (please refer to Table 1) This has allowed the transfer from the general fund to remain unchanged. Table 1 - Staff Transition, 1998 - Present Year Comment 1998 part-time position 1999 part-year - phase in of full-time position 2000 full year 2001 full year 2002 staff transition - position vacant part of year 2003 Miles deployed overseas, part-year 2004 Miles deployed overseas, part-year 2005 full year 2006 full year On the revenue side, we are looking at a decline in rental revenues EDA rental revenue will decrease by $6,000 over the next two years because the Wetherell Property will no longer be rented as of mid-2007. Mr. & Mrs. Wetherell have decided to relocate. $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Projected Year Rental Rev. 2006 $14,122 2007 $11,122 2008 $8,122 Figure 2 - EDA Rental Revenue, 2002 - 2008 (Projected) ~ --- ............ -....... /' ............... ~ /' ~ ~ ~ 2002 2007 2008 2003 2004 2005 2006 IOCLL) e e e EDA Budaet Prolectlons (see following page) For 2006, we are forecasting a $10,000 deficit in the EDA budget - this will be covered by existing fund reserves. The following page shows the EDA's current budget as well as the projected budgets for the next two years. (please see attached) To bring its budget into balance, the EDA will need about $140,000 next year. The options are to increase the transfer from the General Fund, or to implement an EDA tax levy and phase out the EDA's transfer from the General Fund. How Other Cities fund their EDA's Several other city's were contacted to leam how they fund their economic develcpme"t activities: ~ Fundina Method Olivia Levy & General Fund Montevideo Levy & General Fund Mankato General Fund New Ulm General Fund & partially self-sufficient Elk River Levy Ramsey Levy Anoka County Levy Albert Lea Self sufficient through buildings, investments, development deals, etc. (Currently building their 19th spec building - since the 1950's) The EDA is currently studying the Albert Lea model and would, over time, like to move in I this direction. Benefits to City A separate levy for the EDA will benefit the city in several ways: )> Greater transparency in City Budget )> Eliminates annual transfer to EDA )> City can reduce its tax rate Currently, the city's tax rate is high compared to other cites in part because we fund our EDA from the general fund whereas they do not. Benefits to EDA A separate levy will also provide benefits to the EDA: )> More stable funding source ) OlCL) 2006 - 2008 EDA Budget Worksheet Updated: 26 September 2006 Object Code I Description ~UES 4316 Rents 4625 Interest Earned 4720 Refunds & Reimbursements 4825 General Fund Transfer Downtown Loan Fund Transfer 4830 EDA Levy TOTAL REVENUES EXPENDITURES 5110 Wages Reg. Employees 6121 Wages, Intem 6122 Wages, Temporary Employees 6131 Vacation Pay 6132 Holiday Pay 6133 Sick Pay 6141 PERA - Coordinated 6145 FICA - City Portion 6160 Medicare 6160 Empl. Health & Ins. Benefit Total Salaries & Fringe Benefits _ Office Supplies _ Operating Supplies Total Supplies, Repairs & Main!. 6301 Professional Services 6302 Legal 6305 Other Contracturel Total Consulting 6310 Communications 6311 Postage 6320 Travel School Conference 6321 Car Allowance - Travel 6340 Printing & Publishing 6370 Contract Repair & Maintenance 6385 Data Proc Equipment Rental Total Other Services & Charges 6735 Southwest Foundation 6901 Dues & Subscriptions 6909 Miscellaneous Total Miscellaneous 7010 Land 7015 Improvements to Land 7030 Machinery & Equipment 7040 Development Cost II Capital Outlays TAL EXPENDITURES I BALANCE 2006 ~ 14,122 1,000 1,000 100,000 10.000. 126,122 2006 Reauest 70,385 16,100 o n o o 4,777 6,768 o 6,400 104,430 800 2,000 2,800 5,000 o 3,000 8,000 2,500 1,800 2,200 1,050 2.500 o 950 11,000 4,000 5,000 500 9,600 o o 500 o ~ ~ ($10,108) 2007 ProPO$ed 11,122 1,000 1,000 o HQ.QQQ 153,122 2007 ProPO$ed 72,497 21,560 o o o o 4,920 6.971 o 6,400 112,348 800 2,000 2,800 5,000 o 3,000 8,000 2,500 2,000 2,200 1,500 2,500 o 950 11,660 4,000 5.000 500 9,500 o o 500 o ~ 144,798 $8,324 a 2008 Prolected t!!lD! 8,122 ~ Stritesky = 73.84 acres @ $110 = $8,122.40 1,000 ---- Wetherell = 6 mo @ $500 / mo = $3,000 1,000 o a Discontinue transfer? (Sound Financial Mgmt.) HQ.Ql!Q EDA ~ = 1.525 Levy = $140,000 I year 160,122 2008 Prolected 74,671 21,560 o 3% increase 35 hours I week for 56 weeks (4 weeks overlap) = 1,960 total hours @ $11/ hour c o o 5,068 7,181 o 6,400 114,880 800 2,000 2,800 I I I I 5,000 o 3,000 8,000 2,500 2,000 Postage increase. 2,200 1,500 Restore to 2002 level. 2,500 o 950 11,650 4,000 5,000 500 9,600 o o 500 o ~ ~ $2,7921 I txp--) e ~ Protects the EDA from city budget pressures ~ Gives EDA Board of Directors more control over their own budget. ~ Better financial management ~ Moves the EDA towards financial self-sufficiency. Other considerations ~ The EDA is a separate legal entity from the city and should therefore be funded separately. ~ City Council would still have ultimate control - they would set the EDA levy each year at the same time they set the city's levy. Levv Procedure The steps to establish a levy for the EDA are as follows: 1) EDl\ makos a formnl roquost (th:s is attachod) 2) City Counoil posses a resolution stating the proposoG amount of the ED.^. levy 3) Publish in tho local nowspapor 4) Public hearing 5) City Council adopts resolution authorizing levy 6) Publish resolution newspaper 7) Resolution voided if a petition is received within 30 days (347 signatures needed) e EDA Reauest The EDA Board of directors is requesting that the City Council authorize the implementation of a levy on behalf of the EDA in the amount of $140,000 - which would result in an estimated EDA tax rate of 1 :525'%. i " I Each year going forward then we would request that the EDA tax rate be kept the same. i Then as the community's tax base grows, revenues to the EDA would grow; proportionally. Whv $140,OOO? 1) That is the amount we need to make our budget balance. 2) The EDA has not had any real increase in funding since it was formed 9 years ago. Every other department has seen increases... e 10(0) e What Is the impact on a typical $150,000 house? EDA -- ~-'-"'.--'-'.---,,--_.._-- - ... ~..m.l:-evy __ _.'__.__,._._,K_'_. _.___ EDA EDA tax on -"'_.-~-,_.'._--'_.,"-- --" Tax Rate $1~~~house . Ch~!l~~.. $100,000 .,....~--._;~._._. -._~-'--_.- $110,000 - -"~---',-",_._~,"-_.,.._.- --~- $120,000 _ ,_____~~__...".~_~_______. '_'.' ~ 'n'_'__' $130,000 $140,000 $150,000 _._-._._.-..-........-~-_.,.> $160,000 ,.. ---,.~"-.-.-_.~"..,--,.-.~.- $166,391 1.090% 1. 199% 1.308% 1.416% 1.525% 1.634% 1.743% 1.813% $16.34 $17.98 - - ~--<''''~'- $19.61 _.-._.->._--_._.__._,.,.,.~._-_.~. $21.25 $22.88 $24.52 $26. 15 $27.20 $1.64 _......_..__._d___ $3.27 $4.91 $6.54 $8.18 $9.81 _',.__.._'_'0 ,'__~' $10.86 If an EDA tax levy had been implemented back when the EDA was originally formed, and the tax rate kept constant at 1.525%, for the current year we would have almost exactly $140,000 in revenues: -.-------._.-~.,-.. .'.~-.--- __,d__,-"_" _ Hutchinson 1.525% "._~.---.'~-.'-- .- '-,_ "______r_~'...__._._ ~~___._.__r.~ - .. .~...,~ .~-..- ~~-_.- -'-,_.-, -',--'." Year Tax <::~J?~city EDA Levy e .. _,'__'r__~,. __"~_~,,~__ __.~. I , , w+~~,__~ ____ _..~_.~-...-..._..".."' ~ "-,,-.'~ _.~._-- . I 1996 $6,397,814 $97,567 , I ------,,^ 1997 $7,130,105 $108,734 '___.~~_n_' 1998 $6,849,014 $104,447 .---'---_...._--~- 1999 $6,837,064 $104,265 .'-'""~.,,+......-,~ 2000 $7,684,727 $117, 192 2001 $8,876,529 $135,367 2002 $6,928,360 $105,657 ---.'-~----'.-~' - _.~ ~ . 2003 $7,456,960 $113,719 2004 $7,937,112 $121,041 2005 $8,646,161 $131,854 2006 $9,177,656 $139,959 Note: The decrease you see in the city's tax capacity from 2001 to 2002 was the result of changes the Minnesota Legislature made in property classification rates. e The classification rate for commercial! business properties was lowered. , Dla) The EDA Provides Value to the Tax-Pavers of Hutchinson We believe that the EDA provides a lot of value to the community: Business Retention & Expansion Program ~ 2003 -7 15 businesses visited . ~ 2004 -7 9 businesses visited ~ 2005 -7 14 businesses visited ~ 2006 -7 11 businesses visited (so far) New Businesses Recruited to the Community ~ Impressions Inc. ~ Warrior Manufacturing ~ American Energy Systems .~ Hilliard Floor Care ~ Industrial Park Development ~ JOBZ New Business Start-ups ~ Ashwill Industries ~ McClure Business Park .:-~~. i.' ~. ~L:?! ~~) f' ~~~;:" .'J.l.'i:.., ;. ~~.~~i":i:'fi:j~~:.," ~. ~..;;. '1 Fon RF~T l....~. :~,i ;~~!( .~. ,.:~. Downtown Revitalization ~ I..f' .~ d , l ~ ~ Historic State Theatre ~ Jorgensen Hotel ~ Former Hennen's Building ~ Cornerstone Commons ~ Sign & Awning Grants ~ Storefront Revitalization Matching Grants ~ Downtown Loan Program ~ I I ) " ,DC c~ Project Management );> Liquor Hutch expansion Project Support );> Downtown Streetscape );> Hwy 7 Project );> Cornerstone Commons / Redevelopment Grant );> Warrior Manufacturing / Minnesota Investment Fund Grant Writing Staff Support );> Hutchinson Downtown Association o Farmers Market o Popcorn Wagon o Picnic in the Park );> Herrington-Merrill House restoration Marketing the Community );> EDA Web-site Questions If you have any questions or need additional information, please give me a call at 234- 4223 (office) or 587-2957 (home). \GL~) e RESOLUTION # 13060 RESOLUTION AUTHORIZING A LEVY ON BEHALF OF THE HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, the Hutchinson Economic Development Authority (EDA) has been made responsible for creating jobs and raising incomes in the city, broadening the community's tax base, facilitating redevelopment efforts and enhancing the local economy; and, WHEREAS, the Hutchinson EDA would benefit from having an established, dedicated source of funding; and, WHEREAS, Minnesota Statute 469.107 allows the City to levy taxes on behalf of the Economic Development Authority; and, WHEREAS, an EDA ievy would apoear as a separate line item on property tax statements and therefore bring more transparency to the budgeting process; and, WHEREAS, the City could thereby end its annual transfer of funds to the EDA from the General Fund and gain greater budgetary flexibility as a result; and, WHEREAS, the city's Housing and Redevelopment Authority has benefited from having its own levy and that process has worked extremely well since its implementation; e NOW, THEREFORE BE IT RESOLVED by the Hutchinson City Council that: 1} A tax levy on behalf of the Hutchinson Economic Development Authority in the amount of $140,000 is hereby authorized, resulting in a property tax rate of approximately 1.525%; and, /: I 2} City Staff is hereby authorized and directed to take such actions as necessary to Ii implement said tax levy; and, ': I' . N 3} Provided that a the tax levy is fully implemented and the Hutchinson Economic! Development Authority (EDA) will receive levy revenue for its operations in 2007, the;, transfer from the City's General Fund to the EDA shall be discontinued, resulting in ~I reduction of the City's levy and tax rate. " Adopted by the Hutchinson City Council this 11th day of October 2006. ATTEST: Gary D. Plotz City Administrator Steven W. Cook Mayor e )Ol~~ e RESOLUTION NO. 13059 RESOLUTION AUTHORIZING TOWING COMPANIES TO PROVIDE TOWING SERVICES FOR THE CITY OF HUTCHINSON WHEREAS, from time to time it becomes necessary for Hutchinson Police Services, the Hutchinson Public Works Department and other departments to have vehicles towed because of accidents, snow removal and other public safety reasons; and, WHEREAS, the City of Hutchinson has had an exclusive contract with the same towing company for the past six years; and, WHEREAS, due to the increase of the number of vehicles in the city on a daily basis, there is a need to have more than one towing company providing towing services to continue to clear vehicles from accident scenes and in other situations efficiently; and, WHEREAS, multiple towing companies have expressed interest in providing towing services for the city, e NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON: 1. That the current towing contract that the City of Hutchinson has will not be renewed and will expire by its terms on December 31, 2006. 2. That persons or companies interested in providing towing services for the City of Hutchinson shall contact the Director ofPolicelEmergency Services or his/her designee to be placed on a call list of individuals or companies providing towing services for the City of Hutchinson. 3. Those individuals wishing to be placed on the towing call list for the City of Hutchinson shall submit all required paperwork in satisfactory form to the Director ofPolicelEme~ency Services for the City of Hutchinson by December 15, 2006, and by the 15 day of December every year thereafter. The effective dates for the towing call list shall be from January 1 - December 31 of each year. 4. The rates to be charged for towing services shall not exceed the following: A. B. C. D. E. e F. G. Towing within the City of Hutchinson - $55.00, add $3.00/mile after the first three miles. Service calls - $35.00, plus $3.00 for every mile after the first three miles. Wenching - $60.00 for the first 20 minutes, plus $20.00 for each additional 15 minutes. Acpident towing - $95.00, which automatically includes one day of storage fees of $25.00 After hours service - $15.00 additional fee Use of dollies - $30.00 Use of go-jacks - $20.00 ) Dlb) e e e 5. H. Storage fees - $25.00 first day, $20.00/day thereafter The individuals or companies wishing to provide towing services for the City of Hutchinson shall be placed on the list of qualified towing providers subject to the following conditions: A. All towing providers shall have in full force and affect a comprehensive general liability insurance policy insuring against liability imposed by law for bodily injury or death, in the sum of $500,000 for anyone person and in the sum of $500,000 for two or more persons for the same occurrence, and for damages in the sum of $500,000 or $500,000 combined single limit. All towing providers shall have in full force and affect all workers' compensation insurance and employer's liability insUrance as required by law. All towing providers shall have in full force and affect automobile liability and property damage insurance, including coverage for non-owned and hired vehicles, and limits as for comprehensive general liability coverage above. All towing providers shall have in full force and affect garage-keepers liability coverage of at least $25,000. The City of Hutchinson shall be named an additional insured on all insurance policies required by this resolution and that coverage may not be terminated or changed by the insurer except upon ten days written notice to the City Administrator. No insurance policy shall contain any provisions for exclusions from liability other than provisions for exclusion from liability forming part of I the standard basic unamended and unendorsed form of policy, except that I no exclusion will be permitted in the event if it conflicts with a coverage !, expressly required by this resolution, and in addition, no policy shall . contain an exclusion from bodily injury to or sickness, disease or death oh the employee of the towing provider which would conflict with or in any I i way impair coverage under the contractual liability endorsement of the 'i liability of the towing provider for this resolution. Ii All endorsements shall apply to both bodily injury or death and property damage coverage. /. Prior to the towing provider being placed on the call list, the provider shall furnish to the City certificates or copies of these policies of insurance, approved by the City Administrator, showing that such insurance is in force. All towing service operators and their employees shall have all licenses required by the State and Federal government, including having Department of Transportation health cards on file with Hutchinson Police Services and a form E filing with the State of Minnesota. By requesting to be placed on the call list, the towing provider agrees that it shall indemnify and hold harmless the City and its officers, agents and employees from and against all claims, damages, losses or expenses, including attorneys' fees, which may be suffered for or which they may be held liable, arising out of or resulting from the assertion against them of any claims, debts, or obligations in consequence of the performances of B. C. D. E. F. G. H. 1. 1. 1 tlb) e e e K. L. M. N. 5. this agreement by the towing provider, their employees, agents, or subcontractors, whether or not caused in part by a party.to be indemnified under the terms of this resolution. . The City shall have the right to remove a towing provider from the call list in the event that the towing provider fails to fulfill the requirements of this resolution necessary to be on the call list. All towing services shall be conducted with equipment and personnel which are adequate to ensure the satisfactory towing ofvehic1es under all adverse conditions of weather, breakdown and similar hindrances, which on other work might be regarded as "acts of providence" and do not relieve the towing provider of the responsibility for carrying out the work. The Director of PolicelEmergency Services is authorized to implement other regulations and procedures which will promote efficiency for towing services in the City of Hutchinson while at the same time giving operators on the call list a fair and equitable opportunity to provide towing services within the City of Hutchinson. The towing provider:sagree to comply with administrative procedures as may be set forth by the City Administli:ltor and/or tilt: Director of PolicelEmergency Services or their designees. Adopted by the City Council this 11 th day of October, 2006. ATTEST: Steven W. Cook Mayor Gary D. Plotz City Administrator , ol1) , e RESOLUTION NO. 13059 RESOLUTION AUTHORIZING TOWING COMPANIES TO PROVIDE TOWING SERVICES FOR THE CITY OF HUTCHINSON WHEREAS, from time to time it becomes necessary for Hutchinson Police Services, the Hutchinson Public Works Department and other departments to have vehicles towed because of accidents, snow removal and other public safety reasons; and, WHEREAS, the City of Hutchinson has had an exclusive contract with the same towing company for the past six years; and, WHEREAS, due to the increase of the number of vehicles in the city on a daily basis, there is a need to have more than one towing company providing towing services to continue to clear vehicles from accident scenes and in other situations efficiently; and, WHEREAS, multiple towing companies have expressed interest in providing towing services for the city, e NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCIDNSON: 1. That the current towing contract that the City of Hutchinson has will not be renewed and will expire by its terms on December 31, 2006. 2. That persons or companies interested in providing towing services for the City of Hutchinson shall contact the Director of Police/Emergency Services or hislher designee to be placed on a call list of individuals or companies providing towing services for the City of Hutchinson. 3. Those individuals wishing to be placed on the towing call list for the City of Hutchinson shall submit all required paperwork in satisfactory form to the Director of PolicelEme~ency Services for the City of Hutchinson by December 15, 2006, and by the 15 day of December every year thereafter. The effective dates for the towing call list shall be from January 1- December 31 of each year. 4. The rates to be charged for towing services shall not exceed the following: A. B. C. D. e E. F. G. Towing within the City of Hutchinson - $55.00, add $3.00/mile after the ftrst three miles. Service calls - $35.00, plus $3.00 for every mile after the ftrst three miles. Wenching - $60.00 for the ftrst 20 minutes, plus $20.00 for each additional 15 minutes. Accident towing - $95.00, which automatically includes one day of storage fees of $25.00 After hours service - $15.00 additional fee Use of dollies - $30.00 Use of go-jacks - $20.00 ~\~ \Dc!0 e e e 5. H. Storage fees - $25.00 fIrst day, $20.00/day thereafter The individuals or companies wishing to provide towing services for the City of Hutchinson shall be placed on the list of qualified towing providers subject to the following conditions: A. All towing providers shall have in full force and affect a comprehensive general liability insurance policy insuring against liability imposed by law for bodily injury or death, in the sum of $500,000 for anyone person and in the sum of $500,000 for two or more persons for the same occurrence, and for damages in the sum of $500,000 or $500,000 combined single limit. All towing providers shall have in full force and affect all workers' compensation insurance and employer's liability insurance as required by law. All towing providers shall have in full force and affect automobile liability and property damage insurance, including coverage for non-owned and hired vehicles, and limits as for comprehensive general liability coverage above. All towing providers shall have in full force and affect garage-keepers liability coverage of at least $25.000. The City of Hutchinson shall be named an additional insured on all insurance policies required by this resolution and that coverage may not be terminated or changed by the insurer except upon ten days written notice to the City Administrator. No insurance policy shall contain any provisions for exclusions from liability other than provisions for exclusion from liability forming part of the standard basic unamended and unendorsed form of policy, except that no exclusion will be permitted in the event if it conflicts with a coverage expressly required by this resolution, and in addition, no policy shall contain an exclusion from bodily injury to or sickness, disease or death of the employee of the towing provider which would conflict with or in any way impair coverage under the contractual liability endorsement of the liability of the towing provider for this resolution. All endorsements shall apply to both bodily injury or death and property damage coverage. Prior to the towing provider being placed on the call list, the provider shall furnish to the City certificates or copies of these policies of insurance, approved by the City Administrator, showing that such insurance is in force. All towing service operators and their employees shall have all licenses required by the State and Federal government, including having Department of Transportation health cards on fIle with Hutchinson Police Services and a form E fIling with the State of Minnesota. By requesting to be placed on the call list, the towing provider agrees that it shall indemnify and hold harmless the City and its officers, agents and employees from and against all claims, damages, losses or expenses, including attorneys' fees, which may be suffered for or which they may be held liable, arising out of or resulting from the assertion against them of any claims, debts, or obligations in consequence of the performances of B. C. D. E. F. G. H. 1. J. e e e K. L. M. N. O. this agreement by the towing provider, their employees, agents, or subcontractors, whether or not caused in part by a party to be indemnified under the terms of this resolution. All towing operators shall have access to a fenced, secure impound lot within two miles of the City of Hutchinson available for vehicle storage. Operators must be able to release vehicles to their proper owners (upon payment of applicable fees) at least between the hours of 8:00 a.m. - 5:00 p.m. seven days a week. Any vehicle impounded at the direction of the City of Hutchinson shall not be released unless so ordered by the City Administrator or Hutchinson Police Services. During the time the vehicle is impounded the towing operator shall not permit the owner or any other person to take or remove from the vehicle any parts or change or repair any parts. The City shall have the right to remove a towing provider from the call list in the event that the towing provider fails to fulfill the requirements of this resolution necessary to be on the call list. AIL towing services shall be conducted with equipment and personnel which are adequate to ensure the satisfactory towing of vehicles under all adverse conditions of weather, breakdown and similar hindrances, which on other work might be regarded as "acts of providence" and do not relieve the towing provider of the responsibility for carrying out the work. The Director of Police/Emergency Services is authorized to implement other regulations and procedures which will promote efficiency for towing services in the City of Hutchinson while at the same time giving operators on the call list a fair and equitable opportunity to provide towing services within the City of Hutchinson. The towing providers agree to comply with administrative procedures as may be set forth by the City Administrator and/or the Director of PolicelEmergency Services or their designees. Adopted by the City Council this 11 th day of October, 2006. ATTEST: Steven W. Cook Mayor Gary D. Plotz City Administrator e e e PUBLIC WORKS GROUP Engineering, Streets & Alleys, WaterlWastewater M E IVI (") R A 1">,.T 1, ~ 1) u 1\ij1 TO: Mayor and City Council FROM: John Rodeberg, Public Works Director Randy DeVries, WaterlWastewater Director RE: Consideration of Amendment to Engineering Services Contract with Donohue & Associates DATE: October 5, 2006 In the new Wastewater Treatment Facility (WWTF) project design, we included a new emergency generator system to meet the state and federal requirements for back-up power. Hutchinson Utilities has determined that they can now provide a dual power feed to the facility, so we have the ability to get by without the construction and long-term maintenance costs of the emergency generator. Sinc~ .'; Donohue has already designed the work around the generator, they are asking for $12,000 to redesigtl , the project for dual power. This will save the city about $100,000 in construction costs arid r I " I i , significant long term operational and maintenance costs. We recommend approval of the contract amendment in the amount of $12,000. I I )u(d) Er'-....' ,._'"" R-, ,:,:.,"'..-u. . "",. 'k. [ \i 10- e SEP 2 7 2006 ~~9N9ltH~@ City of Hutchinson Eng. D~ www.donohue-associates.com September 22, 2006 3311 WEEDEN CREEK ROAD SHEBOYGAN. WI 530B1 John Rodeberg, P.E. Director of Public Works City Center III Hassan Street SE Hutchinson, MN 55350 PHONE 920-208-0296 FAX 920-208-0402 Re: Hutchinson WWTP Improvements Project Donohue Project No. 11063 Dear John: e As we discussed, we were informed a week ago about the City's opportunity to switch from standby generator power to dual power feed from the Hutchinson Electric Utility. Switching to dual power feed will be a much better electrical system backup for the wastewater treatment plant (WWTP) since the entire WWTP will continue to operate in emergency power situations. Another benefit for switching to dual power feed is the plant electrical distribution system will be changed from a radial distribution system to a loop distribution system. This system will provide more flexibility for taking plant units out of service while keeping the rest of the plant in operation. Since the WWTP was already designed with a new emergency generator system, there will be some redesign effort by Donohue to change the plans and specifications. There will be some additional effort also for converting the existing radial distribution system to a loop distribution system. The net changes should save the City about $100,000 in construction costs. Our additional design effort is estimated to be $12,000. We have enclosed Amendment No. I to the Engineering Services Agreement for this additional work. Please execute the agreement amendment and return one copy to our office. The remaining copy is for your files. Please caB me if you have any questions or comments. Sincerely, ~H,gJoY'P.E. Enclosures: As noted e Copy: Ed Nevers Randy DeVries 1 o[ d) e e e AMENDMENT NO.1 to ENGINEERING SERVICES AGREEMENT Project: Hutchinson Wastewater Treatment Plant Improvements (Project) Executed 4/25106 This Amendment is by and between: City of Hutchinson (Owner) Hutchinson City Center IllHassan Street SE Hutchinson, MN 55350 and Donohue & Associates, Inc. (Donohue) 3311 Weeden Creek Road Sheboygan,VVl 53081 Who agree to amend the original Agreement, as folIows: PART I-A. PROJECf DESCRIPTION The project description has been modified to include the following: 00 f The improvements to the wastewater treatment plant also include changing the existing radial electricaL'; distribution system to a loop electrical distribution system and other changes to convert standby power ip a dual power feed system. These changes are being made in conjunction with the Hutchinson Electric', Utility to provide a better standby power system for the wastewater treatment plant. !I PART 11I- A, COMPENSATION Compensation for the services set forth in Part I shall be increased $12,000, resulting in a total contract amount of $443,000. APPROVED FOR OWNER APPROVED FOR DONOHUE c'\ S. ,J) ~.y~ By: By: Printed Name: Printed Name: Edward S. Nevers. P.E. Title: Title: Vice-President Date: G Id-~ IOL Date: h ., I o (d) e e e PUBLIC WORKS GROUP Engineering, Streets & Alleys. WaterlWastewater M )2 M 0 l~ N D lJ M A TO: Mayor and City Council FROM: John Rodeberg, Public Works Director Kent Exner, City Engineer RE: Consideration of Establishing Municipal State Aid (MSA) Streets DATE: October 5, 2006 The City can designate mileage on its MSA system based on specific criteria in state regulations. Due to the city's growth, we now have additional mileage to designate. It is beneficial to the City to designate routes when the mileage is available in order to maximize the City's alIocation. Based on our previously approved Comprehensive Plan and previous discussions with the Council, we are proposing to add extend the following two routes to the system: . Edmonton Avenue SW from TH 15 to School Road o A portion of the roadway from TH 15 to west to Airport Road is already designated o Edmonton Avenue SE from TH 15 to Jefferson Street SE is also an MSA route o This proposal will revise that route slightly to meet current transportation plans . 51h Avenue SE from Michigan Street to TH 22. o This extends the existing MSA route east from Michigan Street to the bypass o 5th Avenue S is currently an MSA route from Lynn Road SW to Michigan Street SE o We annexed the right-of-way for this route last year in order to facilitate this addition. We will also discuss proposed future revisions to the MSA system in partnership with McLeod County. This proposal would turn back portions of South Grade Road SW west of School Road to the City, and transfer portions of Adams Street (between Washington Ave and TH 7) to the County. This would help McLeod County be able to designate additional mileage to complete the SW Bypass of the City, and the City is able to add this additional mileage to our MSA system, and generate additional needs and funding. \ u(eJ