Loading...
cp08-14-2007 c . AGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 14,2007 1. CALL TO ORDER - 5:30 P.M. 2. INVOCATION - Rev. Greg Nelson, Bethlehem United Methodist Church 3. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS 5. MINUTES (a) REGULAR MEETING OF JULY 24, 2007 (b) BID OPENING MINUTES OF JULY 20, 2007 (CROW RIVER DAM REPLACEMENT) Action - Motion to approve as presented . 6. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS I. PUBLIC LIBRARY BOARD MINUTES OF JUNE 25, 2007 2. PIONEERLAND LIBRARY SYSTEM BOARD MINUTES OF JUNE 21,2007 3. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES OF JUNE 19, 2007 4. BUILDING DEPARTMENT MONTHLY REPORT FOR JULY 2007 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 13249 - RESOLUTION TEMPORARILY SUSPENDING PARKING RESTRICTIONS ON JEFFERSON STREET DURING ARTS AND CRAFTS FESTIVAL 2. RESOLUTION NO. 13250 - RESOLUTION CALLING FOR A PUBLIC HEARING ON THE GRANTING OF A BUSINESS SUBSIDY (CALL CENTER) 3. RESOLUTION NO. 13251 - RESOLUTION FOR PURCHASE (UNLEADED GASOLINE AND B10DIESEL) 4. ORDINANCE NO. 07-0467 - AN ORDINANCE AMENDING SECTION 154.067 OF THE ZONING ORDINANCE ADDING SCHOOLS TO THE CONDITION ALL Y PERMITTED USES IN THE I-I (LIGHT INDUSTRIAL DISTRICT) (SECOND READING AND ADOPTION) 5. ORDINANCE NO. 07-0469 - AN ORDINANCE ADOPTING THE 2007 EDITION OF THE MINNESOTA STATE FIRE CODE (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR AUGUST 28, 2007) . CITY COUNCIL AGENDA -AUGUST 14,2007 . (c) CONSIDERATION FOR APPROVAL OF PARADE PERMIT FOR HUTCHINSON HIGH SCHOOL STUDENT ADVISORY COUNCIL ON SEPTEMBER 28,2007 (d) CONSIDERATION FOR APPROVAL OF PROJECT A WARD FOR THE 2007 PAVEMENT REHABILITATION SEALCOA TING (LETTING NO.5, PROJECT NO. 07-05) (e ) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDER NO.3, LETTING NO. 3/PROJECT NO. 06-03 - DENVER AVENUE PROJECT (f) REAPPOINTMENTS TO PRCE BOARD AND HRA BOARD a. RUTH KIMBALL TO HRA BOARD TO AUGUST 2012 b. DEANE DIETEL TO PRCE BOARD TO AUGUST 2010 c. LORA MUILENBURG TO PRCE BOARD TO AUGUST 2010 d. BETH HEPOLA TO PRCE BOARD TO AUGUST 20 I 0 Action - Motion to approve consent agenda 7. PUBLIC HEARINGS - 6:00 P.M. (a) CONSIDERATION FOR APPROVAL OF ISSUING ON-SALE INTOXICATING & SUNDAY LIQUOR LICENSE TO EL LORO II, INC., LOCATED AT 705 ATLANTA AVENUE SW Action - Motion to reject - Motion to approve . COMMUNICATIONS. REOUESTS AND PETITIONS (a) DISCUSSION AND POSSIBLE RECONSIDERATION OF RECREATIONAL VEHICLE PUBLIC HEARING Action - (b) DISCUSSION OF COMMUNITY VISIONING PROCESS It[.Action - 9. UNFINISHED BUSINESS 10. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF 2007 HUTCHINSON JAYCEES HAUNTED HOUSE Action - Motion to reject - Motion to approve (b) CONSIDERATION OF AMENDING SECTION 73.15 OF THE HUTCHINSON CITY CODE RELATED TO REGULATIONS OF ALL-TERRAIN VEHICLES (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION OF ORDINANCE NO. FOR AUGUST 28,2007) - ,,^-, ~"" Il1': Action - Motion to reject - Motion to approve . 2 CITY COUNCIL AGENDA -AUGUST 14,2007 (c) CONSIDERATION FOR APPROVAL OF AUTHORIZATION TO ENTER INTO PURCHASE . AGREEMENT WITH CENEX CO-OP AND APPROVE PROJECT FINANCING Action - Motion to reject - Motion to approve (d) CONSIDERATION FOR APPROVAL OF PROJECT FINANCING PLAN FOR CUSTOMER ELATION CALL CENTER Action - Motion to reject - Motion to approve (e) UPDATE ON PROPOSED 2008 BUDGET Action - (f) CONSIDERATION FOR APPROVAL OF POLICY ON FUND BALANCE Action - Motion to reject - Motion to approve 11. MISCELLANEOUS (a) COMMUNICATIONS 12. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS 13. ADJOURN . . 3 . MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JULY 24, 2007 1. CALL TO ORDER - 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Bill Arndt, Jim Hausen and Kay Peterson. Council Member absent was Casey Stotts. Others present were Gary Plotz, City Admimstrator, Kent Exner, City Engineer, and Jody Winters for Marc Sebora, City Attorney. 2. INVOCATION - Rev. Adam Krumrie, Shalom Baptist Church, delivered the invocation. 3. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS Rena Pearson presented before the Council. Ms. Pearson requested that the city ordinance be changed to prohibit recreational vehicle parking in driveways. Ms. Pearson spoke about the hindrance this causes her in her neighborhood. She also noted that if a committee is established to review this issue, she would like to serve on it. 5. MINUTES (a) REGULAR MEETING OF JULY 10, 2007 (b) BID OPENING MINUTES OF JULY 9, 2007 (SCHOOL ROAD PEDESTRIAN UNDERPASS) Motion by Arndt, second by Haugen, to approve the minutes as presented. Motion carried unanimously. . CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. PUBLIC ARTS COMMISSION MINUTES OF APRIL 19,2007, AND JUNE 21, 2007 2. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES OF MAY 21, 2007 3. PLANNING COMMISSION MINUTES OF JUNE 19,2007 4. HUTCHINSON AREA HEALTH CARE FINANCIAL REPORT FOR JUNE 2007 5. CITY OF HUTCHINSON FINANCIAL REPORT FOR JUNE 2007 6. CITY OF HUTCHINSON INVESTMENT REPORT FOR JUNE 2007 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 13245 - RESOLUTION FOR PURCHASE (UNDERGROUND FIBER, STAINLESS WEIRS & BRACKETS, COMPOST BULK) 2. ORDINANCE NO.07-0466 - A SELF-PERPETUATING ORDINANCE ADOPTING BY REFERENCE THE MINNESOTA STATE BUILDING CODE (SECOND READING AND ADOPTION) . (c) PLANNING COMMISSION ITEMS 5(0.) CITY COUNCIL MINUTES -JULY 24, 2007 . 1. CONSIDERATION OF PRELIMINARY AND FINAL PLAT (ONE LOT) JENSEN SECOND ADDITION WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13240) 2. CONSIDERATION OF CONDITIONAL USE PERMIT TO ALLOW CONTRACTING BUSINESS IN THE C5 DISTRICT LOCATED AT 261 3RD AVENUE NW WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13242) 3. CONSIDERATION OF SITE PLAN REVIEW FOR O'REILLY AUTO PARTS STORE TO BE . LOCATED AT 1500 HWY 15 SOUTH WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13243) (d) CONSIDERATION FOR APPROVAL OF 33'd ANNUAL ARTS & CRAFTS FESTIVAL TO BE HELD SEPTEMBER 14-15,2007, IN LIBRARY SQUARE AND SURROUNDING STREETS (e ) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDER NO. 1 - LETTING NO. 6A, PROJECT NO. 05-20 (AIRPORT IMPROVEMENTS) (f) CONSIDERATION FOR APPROVAL OF AN EASEMENT GRANTING CROW RIVER GOLF CLUB THE RIGHT TO PLACE A DRIVEWAY OVER AND ABOVE CERTAIN PROPERTY LOCATED AT THE NORTH WATER TOWER, 958 GOLF COURSE ROAD NW . (g) CONSIDERATION FOR APPROVAL OF ITEMS FOR THE NORTHEAST TRUNK STORM SEWER PHASE 2 - LETTING NO.3, PROJECT NO. 07-03 . (h) CONSIDERATION FOR APPROVAL OF AUTHORIZING REPLACEMENT OF ROOF AT EMERGENCY OPERATIONS CENTER (i) APPOINTMENTSIREAPPOINTMENTS TO TREE BOARD . LAURA POSER TO APRIL 2009 (UNEXPIRED TERM OF MARV NISSEN) . COREY STEARNS TO APRIL 2009 (EXPIRED TERM OF TIM SMITH) . NEWT POTTER TO APRIL 2010 (REAPPOINTMENT) . DALE REDETZKE TO APRIL 2010 (REAPPOINTMENT) . MAYOR STEVE COOK (COUNCIL REPRESENTATIVE) Item 6(c)l, 6(f), 6(g) and 6(i) were pulled for 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( c) 1 had further discussion. Mayor Cook noted that more clarification and research needs to be completed on this item. Motion by Peterson, second by Arndt, to table this item to August 14, 2007. Motion carried unanimously. Item 6(f) had further discussion. Council Member Haugen recollected that the last issue regarding this matter was whether or not the driveway would be paved. Kent Exner, City Engineer, noted at this time the plan is for the driveway to be graveled. Mr. Exner noted that the city could require that it be paved if that was the Council's wish. Council Member Haugen also suggested that language should be included in the . 2 5(0.') CITY COUNCIL MINUTES - JULY 24, 2007 . easement noting that if the driveway is not used, or the building is removed that this driveway is accessing, the driveway should be removed. Motion by Haugen, second by Peterson, to approve the easement noting that the driveway will be removed if not used and the surfacing can be determined by city staff. Motion carried unanimously. Item 6(g) had further discussion. Mayor Cook asked if a public hearing needed to be called forthis project. Kent Exner noted that after further discussion with the finance director, he is requesting that this Item be tabled. Motion by Peterson, second by Arndt, to table Item 6(g). Motion carried unanimously. Item 6(i) had further discussion. Mayor Cook noted that he would like Laura Poser's term to run to April 2008 in order to stagger the terms better. Motion by Cook, second by Arndt, to revise the term for Laura Poser to April 2008. Motion carried unanimously. Mayor Cook noted that a short-term gambling license had been submitted by the Ducks Unlimited for an event on September 5,2007, at the Crow River Golf Club. Motion by Peterson, second Arndt, to approve the short-term gambling license for Ducks Unlimited on September 5, 2007. Motion carried unanimously. Miles Seppelt, EDA Director, presented before the Council. Mr. SepJ?elt requested that the Council approve authorization to obtain bids for the Customer Elation call center project. Motion by Arndt, second by Haugen, to approve obtaining bids for the Customer Elation call center project. 'Motion carried unanimously. . PUBLIC HEARINGS - 6:00 P.M. - NONE 8. COMMUNICATIONS. REQUESTS AND PETITIONS (a) UPDATE ON RECREATIONAL VEHICLES ORDINANCE RESEARCH - REBECCA BOWERS Rebecca Bowers, Planning/ZoninglBuilding Director, presented before the Council. Ms. Bowers noted that due to some residents' concerns regarding recreational vehicle parking, the planning/zoning department conducted research in reference to how other communities regulate this type of parking. The research found that Litchfield, Glencoe, Fairmont and New U1m do not regulate RV parking on private property, like Hutchinson. However, there is quite a bit of variety in how cities regulate this issue. Various regulations include limits on the number of recreational vehicles, parking only in the side or rear yard, parking on hard surfaces only, setbacks to lot lines, screening requirements and various requirements depending on the size or weight of vehicles. Mayor Cook noted that he received several calls on this issue. More than half of the calls received were in favor of allowing homeowners to park recreational vehicles on their private property. He suggested leaving the ordinance as is. Council Member Arndt noted concerns about those recreational vehicles that stay put all year round and never move. Rena Pearson spoke again about the recreational vehicle that is blocking the view from her home and taking away her rights. Council Member Peterson noted that there are garages in the city that block neighbors' views as well. . 3 5((\) CITY COUNCIL MINUTES - JULY 24, 2007 . Motion by Arndt, second by Haugen, to establish a committee to review recreational vehicle parking and discuss various issues. Ms. Bowers suggested holding a I?ublic hearing to allow residents to be heard on this issue as well as to draw interest in serving on the committee. Motion by Arndt, second by Haugen to withdraw motion. Motion carried unanimously. Motion by Arndt, second by Haugen to set public hearing for August 28, 2007, at 6:00 p.m. to discuss recreational vehicle parking on private property. Motion carried unanimously. Jeremy Crosby, 1880 West Shore Drive, presented by the Council. Mr. Crosby noted that his house is for sale and the recreational vehicle will be removed when his house is sold and he moves. (b) PRESENTATION OF POTENTIAL LOCAL OPTION SALES TAX FUNDED PROJECTS Mayor Cook noted that over the last few months, a local option sales tax committee had been reviewing the benefits oflocal option sales tax. After researching, the committee recommended that a local option sales tax would be a very beneficial tool. City staff presented various projects that could be used and funded with a local sales tax. These projects include: Energy Park Drive (2500 foot road and lines to loop water and sanitary sewer with ponding and trunk storm water infrastructure); Les Kouba Parkway/West River Park/Gopher Campfire Sanctuary; South Grade Road trail extension; Washington Avenue improvements; downtown parking lots; water treatment plant & wastewater treatment facility expansion; Bernhagen Park (ballfield/soccer field complex); and family aquatic center. Mayor Cook suggested having a public hearing to discuss these projects and others. 9. UNFINISHED BUSINESS . (a) CONSIDERATION FOR APPROVAL OF STATE OF MINNESOTA GRANT AGREEMENT FOR THE HUTCHINSON DAM REPLACEMENT PROJECT Motion by Arndt, second by Arndt, to approve the grant agreement with the State of Minnesota for the Hutchinson dam replacement project. Motion carried unanimously. 10. NEW BUSINESS (a) REVIEW OF CITY OF HUTCHINSON 2006 YEAR-END REPORT AND CONSIDERATION FOR APPROVAL OF ACCEPTING AUDIT REPORT :;tt :-; -,..,~~ Kyle Meyers, the city's financial auditor of Abdo, Eick & Meyers, presented before the Council. Mr. Meyers very briefly reviewed the 2006 comprehensive annual financial report. Motion by Peterson, second by Haugen, to approve accepting 2006 audit report. Motion carried unanimously. (b) CONSIDERATION OF AMENDING SECTION 154.067 OF THE ZONING ORDINANCE ADDING SCHOOLS TO THE CONDITIONALLY PERMITTED USES IN THE I-I (LIGHT INDUSTRIAL DISTRICT) WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (4-2 VOTE) (ADOPTING RESOLUTION NO. 13241 AND WAIVING FIRST READING AND SETTING SECOND READING AND ADOPTION OF ORDINANCE NO. 07-0467 FOR AUGUST 14,2007) . Rebecca Bowers, Planning/Zoning/Building Director, presented before the Council. Ms. Bowers explained that this item is a zoning ordinance amendment change to allow schools in the II district, 4 GC 0-\ CITY COUNCIL MINUTES - JULY 24, 2007 . . which is the light industrial district. Some concerns raised at the Planning Commission level included whether or not an industrial area is appropriate for elementary students. The Planning Commission recommended approval of this item finding that the amendment would be consistent with the intent of the Comprehensive Plan as allowing schools as a conditional use in the II district would aid in training students and would be complementary to industrial uses and the change in the ordinance to add schools in I I is necessary to modernize the ordinance to reflect the changing times and nature of education. Motion by Arndt, second by Peterson, to approve amending Section 154.067 of the zoning ordinance adding schools to the conditionally permitted uses in the II district. Motion carried unanimously. (c) CONSIDERATION FOR APPROVAL OF SETTING DATE FOR ANNUAL CITY RECOGNITION EVENT Brenda Ewing, Human Resources Director, presented before the Council. Ms. Ewing noted that September 13 & 20, 2007, are currently open at the Event Center for the event. Last year, the City provided a meal for the employee/commission member & guest as well as beverages. Motion by Arndt, second by Peterson, to set annual City recognition event for September 20,2007, at 5:30 p.m. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF PROJECT AWARD FOR THE HUTCHINSON DAM REPLACEMENT - LETTING NO.2, PROJECT NO. 07-02 Kent Exner, City Engineer, presented before the Council. Mr. Exner noted that the lowest responsible bidder was Park Construction Company of Hampton, Minnesota (the lowest bidder was Veit & Company, Inc. whom failed to acknowledge Addendum No.2). The total bid came in at $1,043,198.65. Staff is recommending to eliminate alternate number 3, which is downstream riffle No. 11 in the amount of $96,848.80. With design, engineering and testing, the project cost is estimated at $1,175.000. The funding sources for the project would be derived from a $475,000 DNR grant with $700,000 coming from excess bond funds. Final completion date is estimated for December 15,2007. Motion by Peterson, second by Arndt, to approve project award to Park Construction Company for the Hutchinson dam replacement project, adopting Resolution No. 13247. Motion carried unanimously. 11. MISCELLANEOUS (a) COMMUNICATIONS ,e'.i....... ~", 'c '. ;,j,: ' . Chief Dan Hatten noted that the price that was approved for the replacement roof at the EOC came in lower than anticipated. However, the boiler at the police department needs to be replaced and he wanted the Council to be aware that the plan was to use the excess funds from the roofreplacement budget item. Motion by Arndt, second by Cook, to approve using the funds in this manner. Motion carried unanimously. Jim Haugen - Council Member Haugen initiated conversation related to administrative citations. Chief Hatten spoke about semi-tractor trailer parking on roadways and the police department's actions in having the owners be compliant with the ordinance. Bill Arndt - Council Member Arndt urged residents to water boulevard trees. Gary Plotz - Mr. Plotz noted that efforts have been made to clean out the fishkill by the. dam. City employees Dave Telecky, Joe Turner and Aaron Rassett were heavily involved in cleaning this area out along with a contractor. 5 tOO-) CITY COUNCIL MINUTES - JULY 24, 2007 . . Mr. Plotz also noted that the city's special counsel on the hospital privatization project can be available July 31,2007, at 6:15 p.m. as previously set. Mr. Plotz also noted that he distributed a survey on assessing activities throughout various cities. Five of the cities surveyed assess in-house. Seven cities contract with the county at a fee. 10 cities contract with the county at no fee. Kent Exner - Mr. Exner noted that all of the pipe work was completed last week on Hwy 7 and roadway paving will begin next week. Steve Cook - Mayor Cook noted that due to the budget situation for 2008 (potential shortfall of $600,000), he inquired of the Council as to whether or not they would be interested in not filling any new positions or vacant positions unless specifically approved by the Council. He suggested having a moratorium on filling positions until the 2008 budget is clearer, but give the City Administrator the authority to fill critical or essential needs. Brenda Ewing reviewed the positions that are open/vacant for 2007. These include: two part-time dispatch positions, one part-time police officer, one full-time police officer, one full-time park mamtenance operator and one full-time heavy equipment operator. There may be possible retirements to consider as well. Council Member Peterson suggested leaving the decision of filling these positions up to the department heads as they know what is most critical and needed for their department. Motion by Cook to implement a temporary moratorium on filling any positions as discussed until the Council gets a better handle on the 2008 budget. Motion failed for lack of a second. Council Member Haugen noted that he feels the employment decisions should be left to the City Administrator and department heads. Mayor Cook noted that current policy really leaves filling a vacancy in a budgeted position up to the directors and not the City Administrator. City Administrator Plotz concurred. 12. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS Motion by Arndt, second by Peterson, to approve claims, appropriations and contract payments. Motion carried unanimously. 13. ADJOURN Motion by Arndt, second by Haugen, to adjOuflf'a'tuafj:.m. Motion carried unanimously. . 6 sc fA ~ . . . BID OPENING LETTING NO. 21PROJECT NO. 07-02 Hutchinson Dam Replacement July 20,2007, at 9:00 am Present: Ken Merrill, Finance Director Kent Exner, City Engineer Melissa Starke, Recorder The Bid Opening was called to order at 9:00 a.m. by Ken Merrill. Mr. Merrill noted that the City Council reserves the right to reject all bids and to waive any informalities and irregularities. The reading of the Advertisement for Bids was waived and the following bids were opened and read aloud: Landwehr Construction P.O. Box 1086 846 33rd St. South St. Cloud, MN 56302 Park Construction Company 23260 Main Street Suite 6 Hampton, MN 55031 Reiner Contracting Inc. 21541 Hwy 7 West Hutchinson, MN 55350 Sheryl's Construction Inc. 19821 Parvey Line Rd. P.O. Box 40 Finlayson, MN 55735 Veit & Company Inc. 14000 Veit Place Rogers, MN 55374-9583 Closed: 9:10 a.m. Total Bid: $1,108,230.75 Bid Bond Enclosed Addendums 1 & 2 Acknowledged Total Bid: $1,043,198.65 Bid Bond Enclosed Addendums 1 & 2 Acknowledged Total Bid: $1,153,142.95 Bid Bond Enclosed Addendums 1 & 2 Acknowledged Total Bid: $1,481,462.00 Bid Bond Enclosed Addendums 1 & 2 Acknowledged Total Bid: $994,466.00 Bid Bond Enclosed Addendum 1 Acknowledged ATTEST: Steven W. Cook Mayor Gary D. Plotz City Administrator 6(0) . Minutes Hutchinson Public Ubrary Board June 25, 2007 Member absent: John Paulsen, Guy Stone. Abby Dahlquist, Ann Vance. Janet Vacek. Mary Henke, Ex-Officio, and Jack Sandberg, Pioneerland Ubrary System (PLS) representative Kay Peterson Members present: President John Paulsen called the meeting to order. Yvonne moved to approve the minutes with Janet seconding the motion. Motion passed. Report: PLS Board meetina on June 21 See attached summary per Jack's highlights. Yvonne asked about the educational qualifications for the newly created position of Ubrary Assistant IV. Jack will check on this. Jack alerted the board that PLS would like to have identical computers in all libraries by 201 O. . Old Business: 1. McLeod County Commissioners' presentation on Mav 22: The PowerPoint presentation about our county library services, usage statistics for 2006 and 2008 budget request was well-received. However. Grant Knutson cautioned that our 6% increase will be examined in light of the increases other departments are given. We also asked that the commissioners give the libraries the $2.541 shortfall from our 2007 request. 2. 2008 citv and county budaet reauests: The PLS board has approved our budget which asked for a 6% from the city and the county. Mary has submitted a budget worksheet to the city which inciudes that request and the county was notified at the May 22 presentation. PLS administration will be sending out official notification to the city and county also. 3. Municipal benchmarks: Ann, Mary and John met with Mayor Steve Cook and City Administrator Gary Plotz to find out what should be done. They would like us to establish 4-6 benchmarks, identify them and track them. Mary needs to submit a draft of the benchmarks. John, Ann and Mary shared a list of 11 benchmarks that they compiled and asked the board to review them and prioritize them. They will take the prioritized list and discuss how to present the information. 4. Wireless Internet access update: Mary asked Beth Lunn, PLS IT staff. about usage figures for Hutchinson but hasn't received a response yet. Staff-wise, it.s seamless. PLS will provide a sign indicating Wi-Fi service availability. New Business: 1. Children's summer readina proaram: Sherry Lund, the Children's Ubrarian. explained this summer's program. "Go Bananas at Your Ubrary" which uses the artwork of Minnesota illustrator Derek Anderson. Children from ages 2-14 sign up to read at least 20 minutes a day. five days a week and are eligible to receive prizes for each week they meet their goal. Citizens Bank. 3M and many local businesses have contributed funds or prizes. As of today, there are 477 children participating. The next meeting will be on Monday, July 23 at 4:30. Ann moved to adjourned the meeting and Janet seconded the motion. Motion passed. Respectfully submitted, Yvonne Johnson, Co-Secretary . LoCo.) I . Pioneerland Library System Board of Trustees Meeting June 21, 2007 Summary Notes Jack Sandberg New position: Library Assistant IV Board approved pay grade. Details NA. PLS 2008 RLBSS Grant application: 5366,134. [2007 ~ 5366, 123] Strategic Planning Preliminary version of PLS Strategic Plan for 2008 - 20 I 0 to be submitted July l. Approved by Board. PLS ad hoc committee to keep working. Final version due at end of Dec. Vision: PLS win be the recognized leader in providing regional library services to the public in the format it desires. Four Main Goal Areas (so far): . Public relations . Training · Technology · Library Programs for Teens - in cooperation with SAMMIE and PCLS Report on Collection Development: Last 12 years > 385,918 items. [Hutch =29,119 items] . Report on Cooperative project "PSP" PLS-SAMMIE-PCLS First Consultants Identified Strategic Planning as a good area for cooperation. 2" Consultants hired to add insight about areas for sharing resources. Steering Committee concluded project by suggesting that SAMMIE assume leadership of a cooperative venture of strategic planning and development of programs for "Youth Development" PLS Board committed 10 participate. Also see goal are in strategic plan: Teen Development and Cooperation Technology Plan 2008 - 2010 Approved Discussion about the need for creative ways to ensure and maintain PLS financial viability Discussion centered on possibility of charging a fee for groups 10 use the space in Willmar that is leased by PLS. Director remarked that an important part of the vision for public libraries involves encouraging and enabling free assembly and free discussion. . >~ ,,' t ;if... ~C(}.)1- . ~...1lf/.r\~11.~_ Hutchinson Housing & Redevelopment Authority Regular Board Meeting Tuesday, June 19,2007,7:00 AM Minutes 1. CALL TO ORDER: Chairman Casey Stotts called the meeting to order. Members Present: LaVonne Hansen, and Joel Kraft. Staff Present: Jean Ward and Judy Flemming. 2. MINUTES OF THE BRA BOARD MEETING ON MAY 15, 2007 Joel Kraft moved to approve the Minutes as written. La V onne Hansen seconded and the motion carried unanimously. 3. FINANCIAL REPORTS LaVonne Hansen moved to approve the Financials Reports. Joel Kraft seconded and the motion carried unanimously. . 4. PARK TOWERS a. Joel Kraft moved to set the Annual Plan Public Hearing Date for August 21, 2007 at 7:30 AM. LaVonne Hansen seconded and the motion carried unanimously. b. Jean Ward updated the Board on the progress of the Cingular Cell Tower. Construction is expected to start this July or August. c. Jean Ward reviewed with the Board the proposal from the Center for Energy for Replacement of Boiler Controls. Joel Kraft moved to approve the proposal for the Center for Energy. LaVonne Hansen seconded and the motion carried unanimously. d. Jean Ward reviewed with the Board the Housing with Services registration form. Joel Kraft moved to submit the Housing with Services registration form. La V onne Hansen seconded and the motion carried unanimously. 5. FRANKLIN GROVE EXPANDED REHAB PROJECT UPDATE a. LaVonne Hansen moved to approve EFG Loan #8681 contingent to the Loan Review Committee's Approval. Joel Kraft seconded and the motion carried unanimously. b. Joel Kraft moved to approve immediate payment to Mid MN Development Commission for the four lead assessments completed. LaVonne Hansen seconded and the motion carried unanimously. 6. UPDATE ON THE SCHOOL CONSTRUCTION HOUSE The Board discussed the house plan for next year. The Board decided to use the plan that Diane Sorensen of Coldwell Banker Advantage recommends. 7. HHPOP/CASA UPDATE a. Joel Kraft moved to approve $5,000 Downpayment Assistance for 5 homes in Rolling Meadows East and for Applying to Super RFP CRY and GMHF Affordability Gap. LaVonne Hansen seconded and the motion carried unanimously. b. Entry Cost Assistance/Gap Loans for Purchase of Existing Homes: Casey Stotts moved to approve a Waiver Request from Ian McDonald to increase Entry Cost Assistance from $3,000 to $5,000 for a proposed CASA financed existing home. LaVonne Hansen seconded and the motion carried unanimously. . 8. DOWNTOWN HOUSING · Jean Ward reviewed with the Board a downtown housing site. The Board requests input from the City regarding replacement parking options. June 19,2007 Minutes Page] of2 (PCo. )~ .9. . . . REVIEW OF DRAFT HRA CITY CENTER BUDGET Jean Ward reviewed with the Board the draft HRA City Center Budget. 10. ADJOURNMENT There being no other business, Chairman Casey Stotts declared the meeting adjourned. Recorded by Jean Ward, HRA Executive Director flu '1 ~ BeCky~g, S~Treasurer June 19,2007 Minutes Page 2 of2 Lo(C~3 crrY OF HUTCHINSON COUNT OF BUILDTN G/PL'Ul\'lBINGI~I.ECHAN] CAL PERM_rrS ISSlTED AN'D'VALUA'rION "'-~' ~~ """OM . .~~.~. ~ ,- ..., ,!% Accessory BId .8 Basement Finish Comrhercial- New 'CommercialAddi tion/ltemod el Commercial Re-Roof Deck Dtivewa - Residential Fence Gara e - Detached Miscellaneous Porch - Residential Resbin Ie - Residential Residential Addition/Re . airlRemodel Reside - Residential S4Igle Family Townhouse Unit Window Re "lacement -'Residenti~il Mechanical Plumbin Si n Fire S rinkl.ing No.oIPermits 5 5 1 7 2 10 7 6 1 8 2 19 2 10 2. 4 II 17 14 12 1 Valuation 1,000 24,000 5,190,000 332~OOO 13 t 000 .900 19,000 72,000 515,000 570~OOO 57,125 38,150 146 6,832,175 laC O\)i-\ . . . Resolution No. 13249 RESOLUTION TEMPORARILY SUSPENDING PARKING RESTRICTIONS ON JEFFERSON STREET WHEREAS, the 33'd Armual Arts and Crafts Festival/ Taste of Hutchinson will be held Friday, September 14 from 10:00 a.m. to 6:30 p.m. and Saturday, September 15 from 9:00 a.m. to 4:00 p.m.; and WHEREAS, there have been difficulties in the past along Jefferson Street regarding parking complaints; and WHEREAS, there have also been traffic congestion problems along Main Street and around Library Square during this weekend; NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Parking will be temporarily allowed on the west side of Jefferson Street from Washington Avenue to Fifth Avenue SE. City property "bass pond / snow storage area" near Sorensen's Sales and Rental will be designated for RV, camper and large trailer parking from Thursday, September 13 through Saturday, September 15, 2007. City parking lot Bat 106 Franklin St. SW will be designated for RV, camper and large trailer parking from Thursday, September 13 through Saturday, September 15,2007. The weekly Saturday Farmer's Market will be moved to 111 Hassan St. SE - the City Center parking lot 2. 3. 4. Adopted by the City Council this _ day of August, 2007. Steven W. Cook, Mayor Gary D. Plotz, City Administrator.._ .' ..'t ~ "'1'" ' ... ~,,'" . ":";.' Loeb) \ . . . RESOLUTION NO. 13250 A RESOLUTION CALLING FOR A PUBLIC HEARING ON THE GRANTING OF A BUSINESS SUBSIDY WHEREAS, Minnesota Statutes. Sections 116J.993 to 116J.995 (the "Act"), provides that the City, as a local government agency within the meaning of the Act, may not grant a business subsidy until it has held a public hearing; and, WHEREAS, the City, in order to enhance the economic diversity of the city, create high quality job growth, stabilize the community and increase the tax base of the community, finds it necessary and desirable to grant a business subsidy in order to attract new business into the community, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, That a public hearing on the proposed granting of a business subsidy is hereby called and shall be held on August 28th, 2007, at 6:00 PM, at the City Council Chambers located in City Center, located at 111 Hassan Street SE, Hutchinson, Minnesota; BE IT FURTHER RESOLVED THAT, Notice of said public hearing shall be published in a newspaper of general circulation in the City of Hutchinson not less than ten (10) days prior to the date set for the public hearing; BE IT FURTHER RESOLVED THAT, Copies of the proposed business subsidy shall be on file and available for public inspection between the hours of 8:00 a.m. and 4:00 p.m., on days when the city offices are open to the public. Adopted by the City Council this 14th day of August, 2007. ATTEST: Gary D. Plotz City Administrator Steven W. Cook Mayor 1o(~)2- RESOLUTION NO. 13251 CITY OF HUTCHINSON . RESOLUTION FOR PURCHASE The Hutchinson City Council authorizes the purchase ofthe following: ITEM COST PURPOSE DEPT. BUDGET VENDOR ee following items were authorized due to an emergency need: ITEM COST PURPOSE DEPT. BUDGET VENDOR Unleaded Gasoline $21,951.32 Use by MnDOT, Utilities HATS Yes CENEX 8,500 gallons & City vehicles Bio - Diesel 7,500 $19,338.84 Use by MnDOT, Utilities HATS Yes Schmeling Oil & City vehicles 411";'; Date Approved: Resolution submitted for Council action ,otion Made By: Seconded By: by: 0Co \1 ORDINANCE NO. 07-0467 AN ORDINANCE AMENDING CHAPER 154 (ZONING) OF THE HUTCHINSON CITY CODE TO AMEND SECTION 154.067 TO ADD LANGUAGE TO INCLUDE SCHOOLS IN THE 1-1 (LIGHT INDUSTRIAL) DISTRICT . THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS: Notice of public hearing was duly given and publication of said hearing was duly made to appear to the satisfaction of the City Council that it would be in the best interests of the City to amend Section 154.067 of the City Code to add schools as a conditionally permitted use in the I-I District, as follows: f 154.067 1-1, LIGHT INDUSTRIAL PARK DISTRICT (B) Permitted uses. Within an 1-1 district, unless otherwise provided by this chapter, no uses are permitted except for the following: (1) . (2) (3) (4) (5) (6) (7) Manufacturing: any light manufacturing or process including repairs, assembling, fabricating, altering, converting, finishing, processing, treating, testing, packaging or bottling; except any use or process hereinafter specifically excluded or which would not be in keeping with the purpose of the district as stated above. This determination shall be made by the Planning Commission upon review of the building permit application. Manufacturing includes the storage of goods or materials related to the manufacturing process. Offices; Office-showroom buildings; Warehousing, storage and wholesaling: the storage, handling and distribution of goods and materials for retail, wholesale or on-site use, except any hazardous combustible materials or flammable liquids or gases. This classification does not include truck terminals; Vocational and technical schools; Pawnbroker establishments; and Massage services establishments. (C) Conditional uses. (1) Motor vehicle body shops; (2) Dog kennels; (3) Bulk storage of liquid; (4) Athletic clubs; (5) Restaurants; (6) Recyclable material collection center; (7) Grain elevators; and (8) Tattoo establishments and adult-oriented businesses. (9) Storage Units (10) Schools EFFECTIVE DATE OF ORDINANCE. This ordinance shall take effect upon is adoption and publication. Adopted by the City Council this 14"' day of August, 2007. . Attest: Steven W. Cook Mayor Gary D. Plotz City Administrator (oCD~t.\ This ordinance adopts the ~ 2007 Minnesota State Fire Code and amendments for the . City of Hutchinson. ORDINANCE NO. 07-0469 AN ORDINANCE OF THE CITY OF HUTCHINSON ADOPTING THE ~ 2007 EDITION OF THE MINNESOTA STATE FIRE CODE, REGULATING AND GOVERNING THE SAFE GUARDING OF LIFE AND PROPERTY FROM FIRE AND EXPLOSION HAZARDS ARISING FROM THE STORAGE, HANDLING AND USE OF HAZARDOUS SUBSTANCES, MATERIALS AND DEVICES, AND FROM CQNDITIONS HAZARDOUS TO LIFE OR PROPERTY IN THE OCCUPANCY FOR BUILDINGS AND PREMISES IN THE CITY OF HUTCHINSON; PROVIDING FOR THE ISSUANCE OF PERMITS FOR HAZARDOUS USES OR OPERATIONS; THE COUNCIL OF THE CITY OF HUTCHINSON HEREBY ORDAINS: . Section 1. That a certain document, one copy of which has been marked as the official copy and is on file at the City of Hutchinson-Fire Chiefs Office, being marked and designated as the ;WW 2007 Minnesota State Fire Code, including Appendix Chapters B, C, D, H, and I, is hereby adopted as the Fire Code for the City of Hutchinson, Minnesota, for the purpose of prescribing regulations governing conditions hazardous to life and property from fire or explosion, except such portions as are modified or amended by Section 7 of this ordinance. Every provision contained in this code, except as modified or amended by this ordinance is hereby adopted and made a part of this ordinance as if fully set forth herein. The Appendix referenced in this Section 1 are further identified as: APPENDIX B - FIRE-FLOW REQUIREMENTS FOR BUILDINGS. APPENDIX C - FIRE HYDRANT LOCATIONS AND DISTRIBUTION. APPENDIX D - FIRE APP ARA TUS ACCESS ROADS. A Cul-de-sac shall have the Minimum diameter of 120' were parking is provided. ~. -"t. ~~ APPENDIX H - OPEN FLAME AND FUEL STORAGE PROHIBITED ON BALCONIES OR PATIOS 1.1 Open Flame Prohibited. In any structure containing three or more dwelling units, no person shall kindle, maintain, or cause any fire or open flame on any balcony above ground level, or on any ground floor patio within 15 feet of the structure. 1.2 Fuel Storage Prohibited. No person shall store or use any fuel, barbecue, torch, or other similar heating or lighting chemical or device in the locations designated in Section 1.1. . 1 loC\o)S . . . Exception: Listed electric or gas-fired barbecue grills that are permanently mounted and wired or plumbed to the building's gas supply or electrical system and that maintain a minimum clearance of 18 inches on all sides, unless listed for lesser clearances, may be installed on balconies and patios when approved by the fire chief. APPENDIX I - SPECIAL LOCKING ARRANGEMENTS FOR GROUP I OCCUPANCIES State Adopted Amendment. Section 1. That the following sections are hereby revised: 105.6 Required operational permits. Section 105.6 is amended to read "The code official Is authorized to issue operational permits for the operations set forth in SectionslO5.6.l through 105.6.4.6. Operational Permits required by the Fire Department": 105.6.15 105.6.17 105.6.28 105.6.31 Fireworks Flammable and combustible liquids LP Gas 105.7.5 is amended to read "An operational permit is required for the kindling or Maintaining of an open fire or fire on any public street, alley, road, or Other public or private ground" Instructions and stipulations of the permit Shall be adhered to. Item #3, To install, alter, remove, abandon or place temporarily out of service or otherwise dispose of a flammable or combustible liquid tank. LP gas 105.7.8 (See Minnesota State Fire Code Section 10 1.2.1,~ 2007 edition), as published by the International Code Council, be and is hereby adopted as the code of the City of Hutchinson for regulating and governing the safeguarding oflife and property from fire and explosion hazards arising from the storage, handling and use of hazardous substances, material' and devices, and from conditions hazardous to life or property in the occupancy of buildings and premises in the City of Hutchinson and providing for the issuance of permits for hazardous uses or operations; and each and all of the regulations, provisions, conditions and terms of such Minnesota State Fire Code ;J(}()J2007. ~ 2006 edition, published by the International Code Council, on file in the office of the City of Hutchinson are hereby referred to, adopted and made a part hereof as if fully set out in this ordinance. 2 loCb)S SECTION 2. That the following sections are hereby revised: . Section 101.1 Insert: City of Hutchinson Fire Department Section 109.3 Insert: Violations penalties. Persons who shall violate a provision Of this code or shall fail to comply with any of the requirements thereof or who shall erect, install, alter, repair or do work in violation of the approved construction documents or direction of the fire official, or of a permit or certificate used under provisions of this code, shall be guilty of a Misdemeanor, punishable by a fine of not more than $1,000, or by imprisonment not exceeding 90 days, or both such fine and imprisonment. Each day that a violation continues after due notice has been serviced shall be deemed a separate offense. Section IliA (Failure to Comply) Insert: Any person who shall continue any Work after having been served with a stop work order, except such work as that person is directed to perform to remove a violation or unsafe condition, shall be liable to a Misdemeanor charge/fine of not less than $1,000 dollars or more than 90 days by Imprisonment. . SECTION 3. That the limits referred to in certain sections ofthe;WW 2007 Minnesota State Fire Code are hereby established as follows: (limits in which open burning is prohibited): City of Hutchinson 307.1 General. A person shall not kindle or maintain or authorize to be kindled or Maintained any open burning unless conducted and approved in accordance with This section. 307.2 Permit required. A permit shall be obtained from the fire official in accordance With Section 105.6 prior to kindling a fire for recognized silvicultural or range or Wildlife management practices, prevention or control of disease or pests, Recreational permits, or special circumstances. Application for such approval shall Only be presented by and permits issued to the owner of the land, or their Designated agent, upon which the fire is to be kindled. 307.2.1 Authorization. Where required by state or local law or regulations, open Burning shall only be permitted with prior approval from the state or local Air and water quality management authority, provided that all conditions Specified in the authorization are followed. . 307.2.2 Is amended to read: Open burning that will be offensive or objectionable Due to smoke or odor emissions when atmospheric conditions or local 3 loCIo ')6 - . Circumstances make such fires hazardous shall be prohibited. The fire official is authorized to order the extinguishment by the permit holder or the fire department of open burning when it creates or adds to a hazardous or objectionable situation. Open burning of debris piles, leaves, and yard waste and burning in barrels is prohibited. 307.3 Location. The location for open burning shall not be less than 50 feet from any structure, and provisions shall be made to prevent the fire from spreading to within 50 feet of any structure. Exceptions: 1. Fire in approved containers that are not less than 15 feet from a structure. 2. The minimum required distance from a structure shall be 25 feet where the pile size is 3 feet or less in a diameter of 2 feet or less in height. 307.3.2 Recreational fires. Recreational fires shall not be conducted within 25 feet Of a structure or combustible material unless the fire is contained in an Approved device or method, such as a fireplace, charcoal grill, etc. located at least 15 feet from any buildings, fences or structures. . 307.4 Attendance. Open burning or recreational fires shall be constantly attended until the fire is extinguished. A minimum of one portable fire extinguisher complying with Section 906 with a minimum 4-A rating or other approved onsite fire extinguishing equipment, such as dirt, sand, water barrel, garden hose or water truck, shall be available for immediate utilization. 307.5 Open flame-cooking devices. Charcoal burners and other open-flame cooking devices shall not be operated on combustible balconies or within 15 feet of combustible construction. Exceptions: I. One and two family dwellings. 307.5.1 Liquefied-petroleum-gas-fueled cooking devices. LP gas burners having A LP gas container with a water capacity greater than 2.5 pounds LP gas Capacity shall not be located on combustible balconies or within 15 feet of Combustible construction. Exception: I. One and two family dwellings. . 4 Loeb ')6 . . . Chapter 314 - INDOOR DISPLAYS is amended to read: COVERED MALLS Section 314.5 Main Aisle Width: Main aisles shall be a minimum of 10 feet in width or The minimum 'required means of egress width, whichever is greater, and Shall be maintained clear from any obstructions. Section 314.6 Cross Aisle Width. Cross aisles shall be a minimum of 15 feet in width or The required means of egress width, whichever is greater, and shall be Maintained clear from any obstructions. Section 314.7 Fixtures. Fixtures shall not be located in main aisles or cross aisles. Section 314.8 Sprinkler Obstructions. Roofs or coverings for kiosks, display booths, Concession equipment or similar structures shall not exceed 4 feet in Dimension unless the area beneath the roofs or coverings is protected by an Approved automatic fire-extinguishing system. EXHIBIT HALLS AND ASSEMBLY OCCUPANCIES Section 314.9 Solid Fuel Burning Appliances. Use of solid fuel burning appliances for Display purposes shall not be allowed in assembly occupancies other than Cooking fuel as described in NFPA 101,2000 Edition, and Section 12.7.1.4. Solid fuel burning appliances may be defined as any appliance that uses Decomposition of cellulose material, hydrocarbon solids, animal fat or Proteins to produce heat or leaves an ash residue. This would include plant Products or materials, wood, coal, mesquite, etc. Section 314.10 Compressed flammable gas cylinders and flammable or combustible Liquids used for display purposes shall be prohibited within exhibit hall and assembly occupancies. Section 314. 11 Fireworks use, sales display or storage shall not be allowed in assembly occupancies or within 100 feet of the structure or unless separated by an Approved permanent partition such as a building wall. Section 314.12 Overcrowding and admittance of persons beyond the approved capacity ofa Place of assembl~ are prohibite~. The F!r.e Official or th~ir de.sig~at~.d .'.~'. ..... Agent, upon findmg overcrowdmg conditions or obstructIOns m alstM. , Passageways, or other means of egress, or upon finding a condition whit . Constitutes a serious menace to life, is authorized to cause the performance, Presentation, spectacle or entertainment to be stopped until such condition or 5 laC b) S . . . Obstruction is corrected. Section 314.13 Standby Personnel. When, in the opinion ofthe Fire Official or their Designated agent, it is essential for public safety in a place of assembly or Any other place where people congregate, due to the number of persons, Or the nature ofthe performance, exhibition, display, contest, or activity,. The owner, agent or lessee shall employ one or more qualified Persons, as required and approved, to be on duty at such place. Such Individuals shall be subject to the Fire Officials orders at all times when So employed and shall be in uniform and remain in duty during the times Such places are open to the public, or when such activity is being Conducted. Before each performance or the start of such activity, such Individuals shall inspect the required fire appliances provided to see that They are in proper place and in good working order, and shall keep Diligent watch for fires during the time such place is open to the public or Such activity is being conducted and take prompt measures for Extinguishment of fires that may occur. Such individuals shall not be Required or permitted, while on duty, to perform any other duties than Those herein specified. Section 503.4 Obstruction of fire apparatus access roads is amended to add: Section 503.4 Parking of motor vehicles in, or otherwise obstructing fire lanes shall be Prohibited at all times. Any vehicle so parked is the act of a registered Owner as well as the act of the person actually parking the vehicle. For Purposes of this section, registered owner is defined to include motor Vehicle leasing agencies and corporate owners. It shall be a defense to any Violator if the registered owner shows that on the date of the offense, title Has been transferred to another. A violation of this section is a petty Misdemeanor as defined by Minnesota Statute 609.02, Subdivision 4a, and Shall be punished by a fine not to exceed $200. Minnesota State Fire Code ~ 2007 shall be amended to read: Section 903.4.2 Alarms: An approved sprinkler flow alarm shall be provided on the Exterior of the building in a location to be approved by the Fire Department. An approved audible sprinkler flow alarm to alert the Occupants shall be provided in the interior of the building in a normally Occupied location. Chapter 32 CRYOGENIC FLUIDS is amended to read: Section 3204.3.1.1 (limits in which the storage of flammable cryogenic fluids in Stationary containers are prohibited): City of Hutchinson. The storage and use of flammable cryogenic fluids in stationary containers in any amount is prohibited within the corporate limits of the city without 6 ~(b)G . . . prior approval. Prior approval requires the submittal of a proposed storage use and will require technical assistance as specified in section Chapter 33 EXPLOSIVES AND FIREWORKS is amended to read: Section 3304.1.1 The storage of explosives and blasting agents is prohibited within the corporate limits of the city Chapter 34 FLAMMABLE AND COMBUSTIBLE LIQUIDS is amended to read: Section 3404.2.9.5.1 The storage of class I and class II liquids in above ground tanks outside of buildings is prohibited within the corporate limits of the City with exception ofthose areas zoned 1-2 industrial, agricultural and also other remote areas with quantities as approved by the fire Official. Section 3406.2.4.4 (limits in which the storage of Class I and Class II liquids in aboveground tanks are prohibited): City of Hutchinson. The storage of class I and class II liquids in above ground tanks is prohibited within the corporate limits of the city with exception of those areas zoned 1-2 industrial, agricultural and other remote areas with quantities as approved by the fire official. Chapter 38 LIQUEFIED PETROLEUM GASES is amended to read: Section 3804.2. (Limits in which the storage ofliquefied petroleum gas is restricted for the protection of heavily populated congested areas): City of Hutchinson. The limits referred to in section 3804.2 storage of Liquid Petroleum gas is prohibited within the corporate limits of the city with exception to those areas zoned I-I & 1-2 Industrial, Agricultural and also Residential locations and quantities as approved by the fire official. SECTION 4. That Ordinance of City of Hutchinson entitled Minnesota Uaiform State Fire Code Standards, 199+ 2003 Edition and all other Ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION S. That if any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be unconstitutional, such decision shall not affect the validity of the remaining portions Ofth.. , ceo The City of Hutchinson hereby declares that it would~led this ordinance, and each section, subsection, clause or phrase tn 1 , irrespective ofthe fact that one or more sections, subsections, sentences, clauses and phrases are declared unconstitutional. 7 (y(b )6 SECTION 6. That the City of Hutchinson-Administrator's Office is hereby ordered and . Directed to cause this ordinance to be published. SECTION 7. That this ordinance and the rules, regulations, provisions, requirements, orders and matters established and adopted hereby shall take effect and be in full force and effect Marsh 31, 2993 Julv 10. 2007 from and after the date of its final passage and adoption. Adopted this Minnesota. , 2007 by the City Council of Hutchinson, day of Mayor - Steve Cook City Administrator- Gary D. Plotz . . 8 leCIo)S z r_"" Permit Fee: $25 (short term) . . III Hassan Street Southeast Hutchinson, MN 55350 (320) 587-5i511Fax' (320) 234-4240 Date Received: 'l-I'l,n-r pdJ City of Hutchinson APPLICATION FOR PARADE PERMIT All applications must be received at least 30 davs before event in order to be considered Organization Information l:ild~ - ~-hul~~ AGh/i,lW~, (I f\1U\.I~ I Organization Nam I'LOO gf'l~(')t1J c::,',^, !du.+chiVlSI11 Orzanization Address Citv 'Z-34-21.Qz- Phone Number MN State ssC!,t;;'o Ziv Authorized Officer and Parade Chairman Information Z.s4-2 t,QZ Phone Number . Officer Name I~06 Rd;)U/fs. /{A'rIL1. SW Residence Address ~ MMf1,4 Parade Chairman Name I&Dn ~obufb.1Zu-J <b\Al Residence Address ~ City t::;t;;3'S'b Zip viS 4-- Z.t,8z Phone Number ~~ Ci State IlMJ State i)S35D Zi Parade Information Parade Date: ~. 2. '?L l. C()7 , Assembly Time: 4 '. V 0 r YV'\ Location and Description of Assembly Area: 1-+ \'V\ ~ r'i r ~ ,; ^"'-') Lnt Starting Time ofParade: 5 : no P rYI Estimated Time ofP:{rade: L ~ . n D 19 n1 \ Starting Point of Parade: ~S pa~\ ~ Lrrl: Route of Parade Travel: J-hV\ S;) ~ ijv\f- O~ ~ 0.1rk--. hYnrL k'cy ~ \A~ ~ ~ 'n :; ..:; tzi'S ~."t...1 p.S it./.fr M:f!j 5.k,j tJ. . Ending Point of Parade: _ Approximate Number ofUru!t:i ~ad,'and Vehicles which will constitute Parade: <' I ':::> Type and Description of Arumals and Vehicles: ' n 0 L1...tI l' l/\A -^ Q A j fl 1 t 'v-e J.. ~ C hA unlLh.o (Lrl\~ /J, ~ II IA. t.l...ALl Of... I) ceJ1~ d-.vi~_ '.. iffH (~J 0 k Q (I A1 II L + EC:LtfiL' ~/ frY LlJ/8u:l--_ffcu 1~"3 - . >, "mum Interval of pace to be Mamtamed etween Urnts: :s 0 .-te.:r:l- Maximum Length of Parade: _I ~ Minimum and Maximum Speed of Parade: U'\7.I 0 k:A I), (J ~ Q /1 Portion of Street Width Traversed: riA A d Jh MPH LoCC-) "'... . --- . . . we ,- City of Hutchinson Application for Parade Permit Page 2 of2 Checklist The following items need to be completed andlor attached in order for the application to be processed: Pennit fee paid in full~r money order): C;s 0 no Pennit Annlication completed in full and s"med: ~s 0 no I declare that the infonnation I have provided on this application is truthful, and I authorize the City of Hutchinson to investigate the information submitted. 9-/ Izj ()::;- I Date ( ignature of authorized officer of organization or parade chairman Police o denied Notes: " /O(,l<('J City Council 0 approved 0 denied Notes: ~(0) . . . TO: Mayor & City Council FROM: Kent Exner, City Engineer RE: Consideration of Project Award for the 2007 Pavement Rehabilitation SeaIcoating (LettingNo.5BlProj .No.07 -05B) DATE: August 14, 2007 Quotes for the 2007 Sealcoating project will be received on Friday, August 10th. City staffwill then provide a summary of the quotes and an award recommendation at the Council meeting. Considering the timely award of this project at the upcoming Council meeting is necessary to meet a very aggressive construction timeframe which is required to hopefully coordinate the construction prior to area schools starting and optimize the advantageous weather conditions. We recommend that the provided Resolutions be approved accordingly. cc: Gary Plotz, City Administrator ~cx) . . . RESOLUTION NO. RESOLUTION ACCEPTING QUOTE AND AWARDING CONTRACT LETTING NO. 5B PROJECT NO. 07-05B Whereas, pursuant to an advertisement for bids for the furnishing of all labor and material for the following improvement: 2007 Sealcoating Project quotes were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: Bidder Amount Bid and whereas, it appears that responsible bidder. of is the lowest NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The mayor and city administrator are hereby authorized and directed to enter into a contract with of in the amount of $ in the name of the City of Hutchinson, for the improvement contained herein, according to the plans and specifications therefor approved by the City Council and on file in the office of the City Engineer. 2. The City Engineer is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed, and the deposit of the successful bidder shall be retained until satisfactory completion of the contract. Adopted by the Hutchinson City Council this 14th day of August 2007. Mayor City Administrator (o( d:') . . . RESOLUTION NO. RESOLUTION ACCEPTING QUOTE AND AWARDING CONTRACT LETTING NO. 5B PROJECT NO. 07-05B Whereas, pursuant to an advertisement for bids for the furnishing of all labor and material for the following improvement: 2007 Sealcoating Project Quotes were received, opened and tabulated according to law, and the following quotes were received complying with the request: Bidder Pearson Bros., Inc. of Hanover MN Caldwell Asphalt Co., Inc. of Hawick MN Amount Bid $1.21 perSY $1.41 perSY and whereas, it appears that Pearson Bros., Inc. of Hanover, MN, is the lowest responsible quote submitter. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The mayor and city administrator are hereby authorized and directed to enter into a contract with Pearson Bros., Inc. of Hanover, MN. in the amount of $1.21 per Square Yard (not to exceed $50,000.00) in the name of the City of Hutchinson, for the improvement contained herein, according to the plans and specifications therefor approved by the City Council and on file in the office of the City Engineer. 2. The City Engineer is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed, and the deposit of the successful bidder shall be retained until satisfactory completion of the contract. Adopted by the Hutchinson City Council this 14th day of August 2007. Mayor City Administrator 'Q leA) . . . City of Hutchinson Public Works Department Operations & Maintenance 1400 Adams St SE Hutchinson, MN 55350 Phone (320) 234-4219 Fax (320) 234-6971 August 14,2007 To: Honorable Mayor and City Council members From: John Olson, Public Works Manager CC: Kent Exner, City Engineer Subject: 2007 Pavement Rehabilitation - Seal coating (Letting No. 5/ Project No. 07-05) Quotations for the 2007 seal coating project were received on or before Friday, August 10. This project is similar in nature to the project completed last year in the Shady Ridge NW. Earlier this spring, crews began crack filling streets in the St. Anastasia church neighborhood. This work was followed by intensive patching, and the final stage of maintenance is the seal coat. Streets included are Lewis Ave SW (cul-de-sac), Lake St SW, Hayden Ave SW, Fischer St SW, Osgood Ave SW, Thomas Ave SW, Goebel St SW, Larson St SW, Hidden Cir SW, Graham St SW, Wagner St SW, and 8th Ave SW (east of the high school property) Five seal coat vendors were contacted. ASTECH corp., St. Cloud, MN MoorSeal, Inc., Marshall.. MN Pearson Bros.. Inc., Hanover, MN Caldwell Asphalt Co., Inc., Hawick, MN Morris Seal Coat & Trucking, Morris, MN Specifications and special provisions were provided to each vendor. The City specified use of CRS2-P bituminous material for sea] coat, and F A-ZV" Class A basalt seal coat aggregate. The bituminous material was selected for its performance characteristics in urban settings. Basalt seal coat aggregate was chosen because it has the highest hardness rating for seal coat wear course rock readily available in this area. There were two quotations received. The highest quote was $1041 per square yard. The lowest quote was from Pearson Bros, Inc., Hanover, MN in the amount of $1.21per square yard. Timely award ofthis proj ect at the meeting is necessary to meet an aggressive construction time frame, necessary to coordinate construction in the area prior to area schools starting and to optimize advantageous weather conditions. I recommend awarding this project to Pearson Bros, Inc. of Hanover, MN in the amount of$1.Z] per square yard. Estimated square yards are 38,540 square yards for a total estimate of $46,633. Co Cd) . FROM :Caldwell Asphalt Co Inc FAX NO. :3202434023 Aug. 10 2007 10:29AM Pi P'll' No 01 rllQH . CALDWELL ASPHALT CO., INC. Famil, Owned Slnc. 1974 24060 175th Sf NE HAWICK. MN 56273 762 Phollll . Fax: (320) 243-4023 800.853.4023 TO CITY OF HUTCHINSON PUBUC WORKS bEPARTMENT 1400 ADAMS ST. S.E. HUTCHINSON. MN. 55350 ;;:~ 234-4219 --~::"-'---'~~;I07 JOB NAME' LOCATION 2007 NEIGHBORHOOD MAINTENA~E 2007 SEAL COA T PROJECT CITY OF HUTCHINSON JOB NUMQE-A t" 'HONE ~.1T".lllmm"I'I."IIIil:lll']I".:'J('''''''1II~1~, SEAL COA T OF VARIOUS S~EETS Approximately 48,352.7 square yards 1) Sweep designated areas. in preparation of seal coating. 2) Appiicotion of .25 gallon. of CRS-2P. per square yard. 3) Ar"o will then be covered with FA-2 112. CL. A. traprock 4) A99r"gate will be compacted in place. 5) After sufficient curing time, a....a will be .wept once (I), to....move excess mat"ria!. . COST OF ABOVE WORK: $1.41 per square yard "NOTE I; Area will be field measured upon completion '-NOTE 2: At Caldwell Asphalt Co., we do all we can to keep costs fair and reasonable for our customers. We will honor 011 proposals accepted and received within the alloted time frame below. However. due to fluctuating oil prices. slight mcreases may be charged. after that time. to offset any fuel and/or asphalt price increase, pa,sed on to us by our suppliers. THANK YOU WE PROPOSE hE!r~b'y 10 lurl"...1"I oY\,~It:!(iPlI (~Iljj I;:,\)u( '..' l.:ulTlplele in ac.COfClance ....llh the ebOvc l:Jipwcilicalions, fOllhe !'>vm 01' _~~)(ty ~9ht Thowand 0"", ~"ndr,:~_ Seventy s..VM and 31/100 Dollors ""'" IS PaYllluntlo be made M.loIIUv.S: ..-. 6B,.I:c!.~.!.._ 95% upon completion of seolcoot ~~~_.~~ All ,\1",..1041 i-,;. 9ul"~',\nv tll no~ 'l~ $(.1(1<:,_,11(1(1 All ...o'k 10 De- tVI'f\j)j..leO ill I. "1"'("'~5'r.>...,1 IlU",.ltl ::l~~,...iJi,,'J lu .~l.l"O;HO p'i'lCroCe" Aflr 81Icfill;~t1 UI Ue\fi:.hun irnm ;lol'}Q.... 'DeCor,Ca. \;0(",1 IIIVOI..iny a.lr;l ~1"l~.Ir,; "'0\1 ').. ..~E'Cuhl'" Dilly ullurl w,ill~n ordCI~.. ;'In<l 1'0'011 f)PCOo"$' 1lIf1 .....hi! o.:lI11f!JC IIVf:1 ;1"0 i'IQO"" IrlB UM181t, AIIIlII'l!e"'clII" tunlil'>!)r:nl UpO" 5r".a,. .iCC.OE'ollk 0' tlc<->yr. nnynn(1 "'"' c"lIl.oI. Ow',o:' Iv ""'''y li'c. \e"nad.,. ......d 011"10' nI'C"";Vy ''''uo'&Il<:><-, 0...: ""ur~t:lr. nrfl,,,lIy ';,~""'~d Uv Work,;,'~ CQII")CII~ll,illlll!'\OW'l"Cr. u ( J{eo'R. ~",.k u ~ , - NOI.'TrI"C)~lolIlmllytlc ...nnN"...nt>y-.., .ll"Ol.lOC"l>I-Hl.....itll;'. 5 ,',or";' ACCEPTANCE OF PROPOSAL - Tne aDove prices. SlJeCIIICbhOt\$ ,Ull.l condition, Arp. S811,rACIQ'y an\1 (,1t; l1l:rvl1y aCC;;l:Ipled. You ala author,ze" .IJ"I III'.: WOU. as speciheO. Paym@nl w,ll tle maae as O....ll<ne" /ltlf)YC D:i1nmAr,;Cl!opl;ont:e S''-l''llll:..'l!' $;9"",lu'll' Wed) . . . .. :. , Q079 Lamont Ave. N.E. Or Har;;over, Mn 55341 Fax: 763-391-6627 Phone: 783-~1-6622 PearS0111 Bros., Inc. Fax To: JOHN OLSON Fro"" JACK PEARSON F.... 320-234-8971 ".ses: 2 phone; 320-234-4473 Dtltel <618;67 <:;.Q-01 ~I QUOTE - 2007 SEAL COAT ec: ~ Urson! a Far RBYiBW a PIBBSe Camment lJ Pie... Rllply CI Pl.... Recycl. o Commonts: JOHN, I AM FAXING MY QUOTE FOR YOUR 2007 SEAL COAT PROJECT THAT IS DUE BY FRIOAY, AUGUST 10lli. JACK ~ t_J1l uJ6~ I 'd WON SOiS NOS~V3d fJ;l J.) ~Vl0:6 IOOl'vl 'onv Rug OS 2007 S:~7AM HATS (320123~-sS71 p.3 ,. . . Specifications for 2007 Neighborhood Maintomance Project . City of Hutchinson, Minnesota 2007 SOil Coat Project Locotions: . ~eaRur8 Proiect location DescriDt10n 2,081.7 BY Lewis Ave SW CuI-do-sac to School Rd SW 7,094.4 BY Lek. StSW . . Robert; Rd aw to 2"" Ave SW 3,09S.7 SY . Hayden Ave SW Lab 5t SW to Fiocher 51 SW 978.3 SY Pischar 5t SW Osgood Ave BW to Haydon Ave SW 3.978.6 . BY Osgood Ave SW Lake 5t SW to Dale St SW 3,175.8 BY Tholl'll8 Ave SW Lake 5t SW to Dale 5t SW ~ 3,699.0 SY Stonoy Pt Rd SW Roberts Rd SW to S<>hool Rd SW ... 3,029.1 BY Boulder 5t SW Roberts Rd SW to School Rd SW ... 829.4 SY Boulder Cir SW CUI-de-sac 10 Boulder SI SW .. 2,255.9 SY Lakeview Ul SW Roberlll Rd SW to School Rd SW . 4,687..6 ' SY Gaebel St SW Dead-end 10 il poi~ east gC Graham 5t SW 2,964.2 SY Lilrson St SW Goebel St SW to Roben! Rd SW l,72G.7 Sy Hidden Cir SW Cul-de-sac to Robo.rta Itd SW 3,860.5 BY Or8ham St SW 8th Ave SW to Goebel 5t SW . 2,452.9 SY Wacnar St SW 81b Avo SW to Milwaukee Ave SW 2,442.9 BY SthAveSW' Dead-end 10 n.lll St SW .... . s I. Q I per squanl ytlni" $j.~..6 J~ .5.s 2,1 S.sq, ; SY ToblJ of All LocatiolUl J - . Quotea ~all be provided on a per squatc yard (SY) basis and work shall comonn to attached speoifioaliolia. QUotel will bc conlidered on both B cost ond qualitative bails. The City tesel"<e8 the right to odd or delete work uaiog quoted per square yud cOllI. Please return quotaiions by: Friday A\lgust 10, 2007 at, 1:00 p.m. Work>> be completed nolaler than Friday September .7.2007. ~'\. ~~ ~~~4-~O" . \)~IJS -.r~l. Jolm OIBen, Public Works. Manager City ofHutehinson . 1400 Adams S1 SE Hutohinson, MN 55350 (320) 234-'1219 - genersl (320) 2344473 - direct (320) 583-8145 -mobile (320) 234"6971 - FAx: io~oniiilol.hutohin.s01\.mn. us .. r. ) v/7 ,(IN so~s NOmJd wC c\) ~m6 LOO~ .tl '9nV . . . Potential Vendor List (Updated 817/2007) ~TECH Corp. Asphalt Surface Technologies Corp. 8348 Ridgewood Rd St. Cloud, MN 56374 Phone - (320) 363-8500 Fax - (320) 363-8700 vialdwell Asphalt Co., Inc. 24060 - 175th St NE Hawick, MN 56273-7702 Phone - (320) 243-4023 Fax - (320) 243-4023 MoorSea1, Inc. 703 Deschepper St Marshall, MN 56258 Phone - (507) 532-5122 Fax- '~orris Seal Coat & Trucking 46253 - 208th St Morris, MN 56267 Phone - (320) 589-2844 Fax - (320) 589-4890 V:earson Bros., Inc. 11079 Lamont Ave NE Hanover, MN 55341 Phone - (763) 391-6622 Fax - (763)391-6627 loed) . . . City of Hutchinson Public Works Department Operations & Maintenance 1400 Adams St SE Hutchinson, MN 55350 Phone (320) 234-4219 Fax (320) 234-6971 August 3, 2007 To: Seal Coat Contractors Subj ect: 2007 Neighborhood Maintenance Project 2007 Seal Coat Project The City of Hutchinson is seeking price quotations from qualified seal coating Contractors, priced on a per square yard basis. The City intends to seal coat approximately 48,350 square yards of streets in 2007. The expected cost of this work is not expected to be more than $50,000. Quotes must be returned to the City no later than 1 p.m. on Friday August 10,2007. The seal coating work must be completed between Wednesday August 15 and Friday September 7, 2007. The City's specifications are for CRS-2P Bituminous Material and FA-2Y:z, Class A Basalt Seal Coat Aggregate, placed by the Contractor. Sweeping and disposal of sweepings is the Contractor's responsibility and should be included in the per square yard quotation. In no case may sweeping be delayed for more than 7 days without written permission from the City Public Works Manager or City Engineer. This work will be done primarily on residential streets. All of the streets will have been patched and prepared to the City's satisfaction. The City will be responsible for replacing any defaced pavement markings. There are 3 cul-de-sacs in the proposed project area. Seal coat construction in cul-de-sacs shall conform to construction methods described in the Minnesota Seal Coat Handbook, available at: http://www.mrr.dot.state.nm.us/researchIMnR 0 AD Proi ect/restoo1s/ seal coat/ chapter8. pdt' The estimated area of 48,350 square yards was calculated by multiplying centerline mileage reported by the City to MnlDOT each year, by pavement width, not including curb and gutter. You are welcome to arrange a site visit. If you have any questions about the project, including the special provisions, contract or other information, please contact me. You may call me at (320) 234-4473. I appreciate your prompt attention to this matter. John Olson, Public Works Manager ~Cd) . Specifications for 2007 Neighborhood Maintenance Project City of Hutchinson, Minnesota 2007 Seal Coat Project Locations: Measure Proiect Location Description 2,081.7 SY Lewis Ave SW Cul-de-sac to School Rd SW 7,094.4 SY Lake St SW Roberts Rd SW to 2nd Ave SW 3,095.7 SY . Hayden Ave SW Lake St SW to Fischer St SW 978.3 SY Fischer St SW Osgood Ave SW to Hayden Ave SW 3,978.6 SY Osgood Ave SW Lake St SW to Dale St SW 3,175.8 SY Thomas Ave SW Lake St SW to Dale St SW 3,699.0 SY Stoney PI Rd SW Roberts Rd SW to School Rd SW -3,e29.! SY Boulder St SW Roberts Rd SW to School Rd SW 81M SY Boulder Cir SW Cul-de-sac to Boulder St SW co.z,2..J~:~ SY Lakeview Ln SW Roberts Rd SW to School Rd SW 4,687.6 SY Goebel St SW Dead-end to a point east of Graham St SW 2,964.2 SY Larson St SW Goebel St SW to Roberts Rd SW 1,726.7 SY Hidden Cir SW Cul-de-sac to Roberts Rd SW 3,860.5 SY Graham St SW 8th Ave SW to Goebel St SW 2,452.9 SY Wagner St SW 8th Ave SW to Milwaukee Ave SW 2,442.9 SY 8th Ave SW Dead-end to Dale St SW . 48,352.7 SY Total of All Locations $ per square yard = $ Quotes shall be provided on a per square yard (SY) basis and work shall conform to attached specifications. Quotes will be considered on both a cost and qualitative basis. The City reserves the right to add or delete work using quoted per square yard cost. Please return quotations by: Friday August 10, 2007 at 1:00 p.m. Work to be completed no later than Friday September 7, 2007. John Olson, Public Works Manager City of Hutchinson 1400 Adams St SE Hutchinson, MN 55350 (320) 234-4219 - general (320) 234-4473 - direct (320) 583-8145 - mobile (320) 234-6971 - FAX io1sonlillci.hutchinson.mn.us . toed} . . . "":i SPECIAL PROVISIONS SEAL COAT CITY OF ffiJTCHINSON, MINNESOTA S-1.0 SCOPE: The proposed work shall consist of constructing a seal coat on a prepared surface. The seal coat is the application of bituminous material followed immediately by an application of a single layer of aggregate material. Construction shall be on designated areas of existing bituminous pavement streets within the City of Hutchinson, Minnesota. S-2.0 SPECIFICATIONS WHICH APPLY & MATERIALS TO BE USED: Minnesota Department of Transportation (Mn/DOT), Standard Specifications for Construction, 2356 "Bituminous Seal Coat" shall apply to all construction performed under the Contract, except as modified in these Special Provisions. S-3.0 MATERIALS: Bituminous seal coating shall be performed in accordance with the requirements of Mn/DOT 2360 and as follows: S-3.1 Bituminous Materials: Provide CRS-2P bituminous material for seal coat, as specified in MnlDOT Spec. 3l51.E S-3.2 Seal Coat Aggregate: The Class A aggregate shall consist of crushed basalt. The aggregate shall consist of sound, durable particles of crushed rock. It shall be clean, uniform in quality and free from wood, bark, roots and other deleterious materials. All aggregate to be used for bituminous seal coat shall conform to appropriate classes as described in MnlDOT Standard Specification 313 7.2B. Provide Basalt Seal Coat Aggregate FA-2V" Class A S-3.3 Sample and Tests: The Contractor shall provide the City with gradation and test results of materials conducted by an independent laboratory prior to delivering aggregate used for seal coating. (o(d') . . . S-4.0 CONSTRUCTION REOUIREMENTS: S-4.1 Seal Coating: Bituminous Seal Coating shall be performed in accordance with the requirements of Mn/DOT Specification 2356 and the following: Contractor shall provide the City with a description of proposed operations, including aggregate test results, generally proposed seal coat aggregate application rate, generally proposed bituminous material application rate, and provide access for the City to obtain a sample of the aggregate. All proposed materials and application rates are subject to City approval. S-4.2 Eauipment: Distributor - use a distributor as specified in Mn/DOT Specification 232 L3C 1. Aggregate Spreader - use a self-propelled mechanical type aggregate spreader, mounted on pneumatic tires, capable of distributing the aggregate uniformly to the required width and at the designed rate. Pneumatic-Tired Rollers - provide a minimum of three (3) self-propelled pneumatic-tired rollers as specified in MnlDOT Specification 2321.3C2. Sweepers - provide motorized pick-up type sweepers that possess a positive means of controlling vertical pressure and are capable of cleaning the road surface prior to applying bituminous materials and removing loose aggregate after seal coating. Kick-off type brooms are not acceptable. S-4.3 Construction Reauirements: Weather limitations Construction shall be completed no later than September 7. Work may take place only during daylight hours. Construction is prohibited between 9:00 p.m. and 7:00 a.m. Construction may start when pavement/air temperatures are 60 degrees Fahrenheit and rising. The road surface may be damp when construction begins, but construction shall not begin and shall cease if there is standing water. No construction is permitted during foggy weather. Road suiface preparation Clean all pavements to be seal coated. Sweep the pavement with a motorized pick-up type broom to remove loose material. Clean depressions not reached by the power broom using hand brooms, including all debris, etc., in the gutters. No direct compensation shall be made to the Contractor for the cleaning work Cleaning shall be considered incidental to the project. Cover iron manhole covers, gate valve covers, catch basins, sensor, and etc. to prevent adherence of the bituminous material. Suitable coverings include plywood disks, sand, Kraft paper, roofmg felt, or other approved methods. Remove the protective coverings before opening the road to traffic. loLJ ) . . . Tack material Apply a tack coat, if required, to prepare the road surface in accordance with MnlDOT Specifications 2357. Payment of necessary tack coat shall be under 2357.502 "Bituminous Material for Tack Coat". Application of Bituminous Material Only one street section of proposed work may be closed at anyone time. Remaining street sections must remain open to traffic. Construct one full lane width at a time. In cul-de-sacs, use construction methods described in the MN Seal Coat Handbook Inspect the aggregate in the wheel paths for proper embedment. Make adjustments to the rate of bituminous application, if necessary. Make additional adjustments to rates of bituminous and/or aggregate application during the project, if necessary. The ideal application temperature for CRS-2P is between 1700F and l800F. CRS-2P may not be applied at temperatures below 1400F. Application of Seal Coat Aggregate Apply the aggregate immediately (within 1 minute) after the bituminous material has been placed. Provide uniformly moistened aggregate, which are damp at the time of placement. Placement of previously placed aggregate (sweepings) is not allowed. Maintain proper speed of the aggregate spreader so aggregates are not rolling over, and so starting and stopping of the spreader is minimized. In cul-de- sacs, use construction methods described in MN Seal Coat Handbook Rolling Operations Complete the initial rolling within 2 minutes after applying the aggregate. Proceed at a recommended speed less than or equal to 5 miles per hour to prevent turning aggregate over. Make a minimum of three complete passes over the aggregate. Roll the aggregate so the entire width of the treatment area is covered in one pass of all the rollers. Total compacting operating width of a pneumatic- tired roller shall exceed 5 feet. Sweeping Sweep off surplus aggregates no later than seven days from when the seal coat is constructed. Sweepers' broom heights and down pressure shall be set and sweeper speed shall be adjusted with care to prevent dislodging the aggregate that is setting. Seal coated areas shall be swept at least once again after the initial sweeping. Sweeping shall be accomplished with a pick-up type sweeper only. Material shall be hauled and stockpiled separately for the City's use. The material shall be loaded and hauled to a stockpile site within the City limits and stockpiled to the satisfaction of the City. Protection of the Surface No traffic shall be permitted on seal coated surfaces until after the specified rolling has been completed and the bituminous material has set and will not pick up on vehicle tires. wed) . Protection of Motor Vehicles The Contractor is responsible for claims of damage to vehicles until the roadways, curbs, and shoulders have been swept free ofloose aggregate and City staff has inspected the project. Insurance Certificate The Contractor shall submit to the City an insurance certificate describing the Contractor's general liability and workers' compensation insurance coverage. S-5.0 METHOD OF MEASUREMENT AND BASIS OF PAYMENT: The City reserves the right to add or delete work anywhere within City limits using quoted per ton cost. The entire addition or deletion of work shall not exceed twenty percent (20%) of the total work under a contract approved by the City Council of the City of Hutchinson. Seal Coat Construction: Payment for bituminous material and aggregate for seal coat will be measured by square yard and payment made at the unit price bid per square yard, which shall be considered full compensation to furnish and apply the bituminous material and aggregate and perform all incidental work. Sweeping: . Sweeping shall be incidental to the project Traffic and parking control: Traffic and parking control shall be incidental to the project. . LoCd) ~ . . . . . . DOCUMENT 00500 CONTRACT AGREEMENT FORM THIS AGREEMENT, made this _ day of 2007, by and between hereinafter called the Contractor, and the City of Hutchinson, a Municipal Corporation in the County of McLeod, State of Minnesota, hereinafter called the Municipality. WITNESSETH, that the Contractor and the Municipality for the consideration hereinafter named agree as follows: ARTICLE 1. The Contractor agrees to provide all materials, equipment and labor necessary for the complete construction of all the work as prescribed by City of Hutchinson specifications, special provisions and reasonable additions and deductions as provided by the City of Hutchinson City Engineer or Public Works Manager. ARTICLE 2. The Contractor agrees that the work contemplated by this contract shall not begin before August 15. 2007 and shall be entirely completed on or before September 7. 2007. Work shall not be done on specific days that may be identified by the City of Hutchinson City Engineer or Public Works Manager. ARTICLE 3. The Municipality agrees to pay the Contractor in current funds for the performance of this Contract the sum of $ per square yard for Seal Coat construction, subject to specifications, special provisions and reasonable additions and deductions as provided by the City of Hutchinson City Engineer or Public Works Manager, except as hereinafter stated: Total contract payments shall not exceed $ 50.000 ARTICLE 4. The Contractor and the Municipality, for themselves, their successors, executors. administrators and assigns. hereby agree to the full performance of the covenants herein contained. IN WITNESS WHEREOF. the parties have caused these presents to be signed in their behalf by the proper officers thereunto duly authorized and their corporate seal to be hereto affixed, the day and year first above written. In the presence of: CONTRACTOR: By: Its: In the presence of: CITY OF HUTCHINSON Mayor: Clerk: Loed ') CITY OF HUTCHINSON - ENGINEERING DEPARTMENT 111 HASSAN ST SE, HUTCHINSON MN 55350 (320) 234-4209 Sheet 1 of 1 CHANGE ORDER NO.3 Dated: 08109/2007 _TRACTOR: Duininck Bros Inc Letting No. 3 Project No. 06-03 408 6th St. POBox 208 Prinsburg MN 56281 320-97-6011 FAX 320-978-4978 Project Location: Denver Ave DESCRIPTION OF CHANGE: Install additional street 1i9ht. litem No.11 Spec. Ref.11 Item Name II Unit II Quantity II Unit Price II Amount I INCREASE ITEMS: Install Additional Street Light - Honda Electric Quote LUMP SUM 1 $2.008.95 $2,008.95 Prime Markup LUMP SUM 1.0 $200.90 $200.90 TOTAL INCREASE ITEMS: $2,209.85 DECREASE ITEMS: CREDIT FOR UNINSTALLED LIGHT LUMP SUM 1 $541.23 ($541.23) TOTAL INCREASE ITEMS: ($541.23) . NET INCREASE ----------------------------------------------------------------------------------------- I $1,668.621 n accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of $1,668.62 (add) An extension of -0- days shall be allowed for completion. The original completion date shall not be changed. ORIGINAL CONTRACT PREVIOUS ADDITIONS/DEDUCTIONS THIS ADDITIONID&DUCTION TOTAL AMOUNT $511,218.91 $20,882.35 $1,668.62 $533,769.88 APPROVED: APPROVED: Contractor Mayor .: DATED: 08/14/2007 OVED: APPROVED: Director of Engineering City Administrator DATED: 08/14/2007 . DATED: 08/14/2007 loee) . . . TO BE PUBLISHED IN HUTCHINSON LEADER TUESDAY, JULY 31, 2007 Publication No. 7603 NOTICE OF PUBLIC HEARING TO WHOM IT MAY CONCERN: Notice is hereby given that a public hearing will be held on Tuesday, August 14,2007, at the hour of 6:00 p.m. in the Council Chambers of Hutchinson City Center for the purpose of: Issuing an On-sale Intoxicating/Sunday Liquor license to EI Loro II, Inc., applicant, to sell liquor at a restaurant located at 705 Atlanta Ave. SW, Hutchinson, Minnesota. This hearing will be held by the City Council of the City of Hutchinson. At such hearing, all persons interested may be heard. Gary D. Plotz City Administrator -'(tA) . . . ~ MEMORANDUM POLICE I EMERGENCY MANAGEMENT SERVICES TO: Chief Daniel Hatten fl. Sgt. Chris Dobratz l\1 FROM: DATE: July 31,2007 RE: On-Sale Intoxicating Liquor License Application As of to day's date, I have completed the background investigation on Mr. Marcos Gomez. Mr. Gomez has applied with the City of Hutchinson for an On-Sale Intoxicating Liquor License for EI Loro II Inc., in Hutchinson, MN. During the course of this investigation, I did not discover anything in Mr. Gomez's background that would disqualify him from obtaining this license. If you need any further information regarding this matter, please contact me at your earliest convenience. r\ .t~ /l o~ ii'" I ( / l0 . <'J' fl' 7 (P).. APPLICATION FOR ON-SALE INTOXICATING LIQUOR LICENSE . This form was prepared by the City of Hutchinson and the Minnesota Bureau of Criminal Apprehension, Department of Public safety, pursuant to Minnesota Statutes, 1976, Section 340.13, for purposes of back- ground inveetigation. It does not supercede any laws, rules or regulations of the Division of Liquor Control regarding the issuance of liquor licenses. Failure to provi.de information requested may result in denial of the application. 1. E:i- wf'-o II J;.NC, Trade Name 2. o,/O( Licensing Period 3. Type of Application: '7- () 3- Ol Date of Application 1XI New o Renewal o Transfer 4. EL weu Ii Yt. Name of Applicant PhOne 5. i-\OOl MCCD/I Home Mdress D~;v(, I I SIWMt, mrJ .553 -=t'i 6. Citizenship, E I :') ~\VAd6'{' 7. 5i4a-J M: G\JC.\ I E( SAfl/.4c1oV' Place of Birth / Date r70C; 8. f'<+\CM~ AvO- <. \ ",. iJ0 I , 1-11/+ (/( ',^ so-J f\Ic (U Address of Business Location 9. L~gal Description . 10. List owners of building or premise to be licensed: MA-~(;)) GO(VlIJ2- pvv(Jerfi&5 /1 11. List all partners, officers or directors, if corporation: Address Date of Birth ~ !\'\ARJ.<:o'S (JOIViEl-- 40DI fl/\CCb(/ .fJz, ___ 5' A' V!f'~ ,fV\N SD :r2' , 12. Prior experience in this type of business: 12- 0,) ~.-s 13. Present ownership in any other liquor establishment: L1 A>\ 1,1' ,) , 47..-2- ft,s-oO 14. Present ownership in any other restaurant or food business: 15. Three Business Referer.ces: r~ejN hv-..,,--J;-,I , ('7(,,0)-- . (;1.--:;"\ (.00('/ I (be;;) IP'-/I.- 0(,2.'1 . (qSI) 935-3Lf7'{ 16. 1)'/V\.i,,;C-A;V 1::J'S~ t . 'r( 5',)tr* _ Cor orate or partnersl:.ip Ti tle i(o-) 17. LloO\ Corporate r",(:(o (l pI', or Partnership Sfr i/f'c~ Address . 18. If this is a transfer application give name, address, of persons, partnership or corporation holding license for the past year. rJO 19. Who OWns the bar/tavern fixtures? f. 1- /-<, (2,0 1f j:,t\JC 20. Are you a Minnesota resident? Ell Yes o No 3-/~OI From 7-';3-3- 07 To If not, where resident? Dates of ReSiden9 DC'\- I, 0. fro ,/-d3-0'l' 4[10/ MCWI( D~ S4v~, 21. Residential Address du:cing Past Five (5) Years: 'i-'-CI - 04.1,,,s: LJ \-"" " r-:;~. "I C" , I, V V \0 v. LJ I' t \.;:;)1/..0;.1', 22. Three Personal References: JPl J'V\t-S ~~ Ihflr-p :f'uU</ JOhN ~ \~USo,.) lPSj- ~30 -49 'fer qs-~ _ 8'JS: "l'100 5'10_ C1<1Cl- (;)<:)01 23. Employment for the Past Five Years: EL.. Wr:D J::n4 73///0 i ",,3" 0'1 -1'1't."..,j- . 24. Any Convictions Other Than Minor Traffic: NO 25. This application must be accompanied by detailed statement of net worth and last year's tax return and statement of :method of paytnent for business, fixtures and inventory. 26. Applicant, and his associates in this application, will strictly comply with all the LaW's of the State of Minnesota. governing the taxation and the sale of intoxicating liquor~ rules and regulations promulgated by the Liquor Control Commissioner; and all ordinances of the municipality; and I hereby ~~rtify that I have read the fore- going questions and that the answers to said questions -, are- true-.of my own knowledge. I further understand that an investigation fee not to exceed $500.00 shall he charged an applicant by the cii:y or county if the investigation is conducted within the state, or the cost not to exceed $10,000.00 if the investigation is required outside the state. I further understand the ordinances of the City of Hutchinso reqardinq the operation of on-sale liquor licenses and agree to abide by them. . Subscribed and sworn to before me this 0i3 day of .,,)<<-1_ 190007 ( /~ ~ub~~)9 My Commission Expires, 1- 3/ - ;;Lo I u MAIIILYN L IiEO Notary Public "''''-eta Ureo...o.,&,i;os~~._ l(CA) . IIIIII!'!! ~a!::lCee5 July 18, 2007 Subject: Hutchinson .JayceesIHutchinson Fire Dept. Haunted House Dear Mr. Mayor and City Council members, The Hutchinson Jaycees and the Hutchinson Fire Dept would like use the fire/police training site located behind the National Guard Annory to host an area wide haunted house for the pure enjoyment of the cttizens in and around the Hutchinson area as we did last year. The tentative dates are: Friday October t9 - Saturday October 20 and Friday October 26 - Saturday October 27.2007. Buildings to be used: Both of the current residential search and rescue houses at the training stte along with the tower facility. We will not be entering the police firing range area. Parking: All vehicles will be parked on the training site land by Jaycees/HFD personnel. Security: Security will be provided by the JayceeslHFD personnel. . Liability: All liability insurance will be in place prior to the opening of the haunted house. Clean-up: The area will be restored to its original state after the final night The work will be completed by Jaycees/HFD personnel. Profrt: Any profit made will be divided equally between the Jaycees and HFD. Last year the Haunted House was a rousing success for all involved. Over 1,000 people from Hutchinson and surrounding communities went through the haunted houses. Those participants contributed nearly 1,200 pounds of food to the McLeod County Food Shelf We anticipate an even greater response this year based on all of the feedback we received last year. We thank you for your time and consideration. Sincerely, Josh Gehlen Vice President/Haunted House Chair Hutchinson Jaycees . \ o CO-} . . . MEMORANDUM OF AGREEMENTS This is a Memorandum of Agreements entered into between the Hutchinson Jaycees and the City of Hutchinson, Minnesota, regarding the use by the Jaycees of the Haunted House site, in 2007 as well as subsequent years. These agreements were reached at a meeting held on Thursday, August 2, 2007. In attendance at the meeting were Gary Plotz, Brad Emans, Joshua Gehlen, Christopher Wilke, Troy Scotting and Jared Martig. 1. There will be no smoking at the Haunted House site at anytime, except m designated smoking areas, if any. 2. There will be no alcohol permitted at the Haunted House site at anytime. 3. The Jaycees will be allowed to have full access to, and have full use of, the Haunted House site and buildings for one (I) full month, which shall include time before the event to prepare the Haunted House and time after the event to clean up. In 2007, the one month time period shall commence on September 29th, and shall end on October 29th. Each year thereafter, the specific thirty (30) days shall be agreed upon by the parties. The Jaycees shall be permitted to access the site for viewing/touring purposes prior to their thirty day use period by contacting the appropriate city employee. 4. The Haunted House site, including buildings and specific rooms, shall be inspected and approved by the Hutchinson Fire Inspector and/or a Hutchinson building official prior to allowing customers on the premises for the event. This inspection shall take place at least 72 hours before the Haunted House opens to the public, so that the Jaycees have adequate time to make necessary changes. S. The Hutchinson Jaycees shall provide liability insurance for the Haunted House, and they shall provide the City of Hutchinson with a certificate of insurance naming the City of Hutchinson as an additional insured in the amount of one million dollars. 6. The Hutchinson Jaycees shall pay $500.00 per year to the City of Hutchinson as a rental fee for the Haunted House facility. This fee is subject to review on a yearly basis. For this fee, the Hutchinson Jaycees will receive, inter alia, the use of the facility for a thirty day period, as well as city cooperation in getting the facility ready for the Jaycees to use and putting on the event (i.e. buildings and area surrounding the buildings are clean, provide electricity, use of portable lighting from Creekside, , etc) 7. The Hutchinson Fire Department Chief and Hutchinson Police Department Chief have the right to inspect the site and shut down the event for violation of the aforementioned agreements. \ D(O\) . . . ORDINANCE NO. 07-0471 ~ 73.15 ALL-TERRAIN VEHICLE TRAFFIC CONTROL AND REGULATIONS (f.) Seope ofaflfllieation. Notwithstamling flTOvisions Elftms title to the eOlltrary, this seetien saall aj3flly tEl eEllltrel Elftraffie aHa reglllatiEln of that eeFtain elass ofyeaieles falling within the aefinition of all terrain vehiele" as to matters set f.eFth herein. .'\Il previsions of this title nElt relatiag to matters herein statea, ll\lplj' as eqllally te sno'Nffiebiles as ether vehieles. (Il) Certain statlltes adeptea. M.S. ~ ~ 84.92 84.929, as it may be ameariea from time to time, together wita rules and reglllatiens flrolffillgated therellflder, are aereay aaoflted by reforeaee, ineerporated aerein, ana made a part hereef. (A) DEFINITIONS (1) All-terrain vehicle or vehicle. "All-terrain vehicle" or "vehicle" means a motorized flotation-tired vehicle of not less than three low pressure tires, but not more than six tires, that is limited in engine displacement ofless than 800 cubic centimeters and includes a class 1 all-terrain vehicle and class 2 all-terrain vehicle. (2) Class 1 all-terrain vehicle. "Class 1 all-terrain vehicle" means an all-terrain vehicle that has a total dry weight of less than 900 pounds, (3) Class 2 all-terrain vehicle. "Class 2 all-terrain vehicle" means an all-terrain vehicle that has a total dry weight of 900 to 1,500 pounds. (B) OPERATING RESTRICTIONS. It is unlawful to operate a Class 1 or 2 A TV as follows: (1) On a public sidewalk or walkway used for pedestrian travel, or upon any boulevard; (2) On private property of another without lawful authority or permission of the occupant or owner; (3) On school grounds, park property, playgrounds, recreational areas and golf courses, without express permission to do so by the property authority; (4) Upon any county road or state highway within the city, or within the designated downtown area as set forth in Chapter 74 Schedule I ofthis code; (5) Upon any street, other than the most direct route from the owner's or operator's residence to the nearest departure point from the city or appropriate snowmobile trail. When no such route exists without using a county road or state highway, then, in that \6(b) . . . event, the owner or operator may operate a snowmobile on the county road or state highway only to the intersection with a street, taking thereafter the most direct route to the nearest departure point from the city or appropriate snowmobile trail; (6) During the hours between 10:00 p.m. and 7:00 a.m. of the day next following, Sunday through Thursday, and the hours between 12:00 midnight and 7:00 a.m. of the day next following, Friday and Saturday; (7) At a rate of speed greater than reasonable or proper under all of the surrounding circumstances or in any instance in excess of 20 mph upon a public street; (8) At a speed greater than 10 mph when within 100 feet of any lake shore except in channels or when within 100 feet of a fisherman, ice house, skating rink or sliding area, or where the operation would conflict with the lawful use of property or would endanger other persons or property; (9) In a careless, reckless or negligent manner, so as to endanger the person or property of another or cause injury or damage thereto; (10) To tow any person or thing other than a disabled A TV upon a public street except through the use of a rigid towbar; or (II) To chase or run over any animal, wild or domestic. (C) EQUIPMENT REQUIREMENTS. A person shall not operate an all-terrain vehicle unless the vehicle is equipped with at least one headlight and one taillight, each of minimum candlepower as prescribed by rules of the Commissioner of Public Safety, and with brakes conforming to standards prescribed by rule ofthe commissioner, and all of which are subject to the approval of the commissioner of public safety. (D) EMERGENCY OPERATION. Notwithstanding any prohibition in this section, an ATV may be operated upon a public street in an emergency during the period of time when, and at locations where, snow upon the roadway renders travel by automobile impossible. (E) OWNER RESPONSIBILITY. It is unlawful for the owner of any A TV to permit its operation in violation of this subchapter. The party holding title to the A TV shall be conclusively presumed to be the owner unless the A TV shall have been stolen and so reported to a law enforcement agency. \6['0') . . . Adopted by the Hutchinson City Council this 28th day of August, 2007. Steven W. Cook Mayor Gary D. Plotz City Administrator Ic(b) . . . , ORDINANCE NQ. 07-0471 ~ 73.15 ALL-TERRAIN VEHICLE TRAFFIC CONTROL AND REGULATIONS (0'\) gespe sf applieatien. NetwithstaHaing prs,..isiElns efthis title te the eeRtrary, this seetien shall apply ts esnkel Elf !raffie ana reglllatisn Elf that eertain elass of venieles falling ..vithin the aefinitiEln sf all terrain '.'emeles as tEl matters set fElrth herein. .'\ll preyisioRs sf this title RElt relating to matters herein 9tatea, applj' as eqaally ts sRswffiebiles as ether vemsles. (B) Certainstatatesadsptea. M.S. ~~ 81.92 81.929,asitmaybeameRaeafrem time ts time, tsgether with rules aHa regalatiens pr-omlllgatea therelHlder, are hereby adepted by ref"reRee, iRSElI}lElrated herein, ana made a part hereef. (A) DEFINITIONS (I) All-terrain vehicle or vehicle. "All-terrain vehicle" or "vehicle" means a motorized flotation-tired vehicle of not less than three low pressure tires, but not more than six tires, that is limited in engine displacement of less than 800 cubic centimeters and includes a class 1 all-terrain vehicle and class 2 all-terrain vehicle. (2) Class 1 all-terrain vehicle. "Class 1 all-terrain vehicle" means an all-terrain vehicle that has a total dry weight of less than 900 pounds. (3) Class 2 all-terrain vehicle. "Class 2 all-terrain vehicle" means an all-terrain vehicle that has a total dry weight of 900 to 1,500 pounds. (B) OPERATING RESTRICTIONS. It is unlawful to operate a Class 1 or 2 ATV as follows: (I) On a public sidewalk or walkway used for pedestrian travel, or upon any boulevard; (2) On private property of another without lawful authority or permission of the occupant or owner; (3) On school grounds, park property, playgrounds, recreational areas and golf courses, without express permission to do so by the property authority; (4) Upon any county road or state highway within the city, or within the designated downtown area as set forth in Chapter 74 Schedule I of this code; (5) Upon any street, other than the most direct route from the owner's or operator's residence to the nearest departure point from the city or appropriate snowffiebi1e trail. When no such route exists without using a county road or state highway, then, in that \6(0) . . . event, the owner or operator may operate a sRe'lIfflebi1e an A TV on the county road or state highway only to the intersection with a street, taking thereafter the most direct route to the nearest departure point from the city or appropriate snewmebile trail; (6) During the hours between 10:00 p.m. and 7:00 a.m. of the day next following, Sunday through Thursday, and the hours between 12:00 midnight and 7:00 a.m. of the day next following, Friday and Saturday; (7) At a rate of speed greater than reasonable or proper under all ofthe surrounding circumstances or in any instance in excess of 20 mph upon a public street; (8) At a speed greater than 10 mph when within 100 feet of any lake shore except in channels or when within 100 feet of a fisherman, ice house, skating rink or sliding area, or where the operation would conflict with the lawful use of property or would endanger other persons or property; (9) In a careless, reckless or negligent manner, so as to endanger the person or property of another or cause injury or damage thereto; (10) To tow any person or thing other than a disabled A TV upon a public street except through the use of a rigid towbar; or (II) To chase or run over any animal, wild or domestic. (C) EQUIPMENT REQUIREMENTS. A person shall not operate an all-terrain vehicle unless the vehicle is equipped with at least one headlight and one taillight, each of minimum candlepower as prescribed by rules of the Commissioner of Public Safety, and with brakes conforming to standards prescribed by rule of the commissioner, and all of which are subject to the approval of the commissioner of public safety. (D) EMERGENCY OPERATION. Notwithstanding any prohibition in this section, an ATV may be operated upon a public street in an emergency during the period of time when, and at locations where, snow upon the roadway renders travel by automobile impossible. (E) OWNER RESPONSIBILITY. It is unlawful for the owner of any ATV to permit its operation in violation of this subchapter. The party holding title to the ATV shall be conclusively presumed to be the owner unless the A TV shall have been stolen and so reported to a law enforcement agency. \o(to ) . . . . Adopted by the Hutchinson City Council this 28th day of August, 2007. Steven W. Cook Mayor Gary D. Plotz City Administrator 10C\o) MEMORANDUM Date: August 1, 2007 To: Honorable Mayor ,& City Council From: Miles R. Seppelt Economic Development Dir~ctor RE; CENEX Purchase Agreement 1) Authorization for Cenex Deal and App1rov.al for Project Finan1cing For the past several months the Hutchinson EDA has been working with the local CENEX co..op on a project to clean up and redevelop the site of their existing fertilizer plant on3rd Avenue, near the Crow River. . We hav€f aU the details in plrace and are seeking City Council approval to enter into a purchase agreement. The EDA is a!lso seeking. City Council approval for the. proje.ct financing. The parameters are as follows: EDA Gets · FertiUzer site (4 lots) Cenex will demolish all structures on the. site by 12/31/07 · Cenex covers match requirements for state clean-up programs. · 70' x 591' (1.01 acres) for industrial park right-of-way (east ofgraih elevators) · 1.14 acre l'triangle" (east of grain elevators) EDA obtains four Cen:ex lots. Cenex will demolish all structures and cover the match requirements for the clean..up programs. EDA will obtain 70' right..of..way for Stritesky Industrial pa'rk.as well as the 1. t4acre Utriang Ie. 11 ..';,'~~:'.~ . I ,- _ : ." _ -. ..~ ,- :~<,,,'i IOG~) CENEX Gets · $300,000 cash · Appro~( 1.8 acres of easternmost Goebel Lot (135' x 5901) · A 3-year optionJ at no cost, on up to 5 acres of the Strite sky property at $10,000 per acre. Oust south of the elevator) ~'. ~-~ " h -.m -!lr,', ' r~ . I : ~ " ~ . "'T' Cenex will obtain roughly 1.8 acre~ (135' x 590') of the EDA's I eastern lot. ) Cenex will obtain a 3-year optiont at no cost, on up to '5 acres at $10,000 per acre south of the elevator. This transaction will accomplish a nu;mber of goals: · Removal & cJean-,up of the fertilizer site near the Crow River · Provides needed right...of-way to access our new' industrial park · Provides land th,at can facilitate bufferin'9 of scrap yard in industrial park. Proposed Proiect Financing The EDA Finance Team and the EDA Board of Directors have reviewed the options carefully ~~we recommending that the project be funded with $150,000 from the .DowntoWrl'~J:fA;S(llving Loan Fund and $150,OOOfro,m the city's uDevelopm,ent Fund." The ~~Developmetit Fund" was created a number of years 'ago from the proceeds of sales of old industrial park land as wen as sales of properUes involved' in downtown redevelopment 'projects of the early 1990's. \c(G'\ . . . The purpose of the "Development Fund" is to facilitate economic development and redevelopment projects. At present, the "Development Fund" is being used for the purchase of the 77 -acres that comprise the Stritesky industrial park, just south of the Cenex grain elevators in the industrial park. Given the nature of this project, and the fact that it accomplishes a number of goals that will benefit the city as a whole, it was deemed appropriate that the project be funded with both EDA and City resources. It is our plan that once the Cenex fertilizer site is redeveloped and sold to an end-user, that both the Downtown Revolving Loan Fund and the city's "Development Fund" be reimbursed. \o(t..>) . REAL ESTATE PURCHASE AGREEMENT Parties. This Purchase Agreement is made and effective on the last date executed below by and between Hutchinson Co-op Cenex, a Minnesota Cooperative Association, ("Cenex") and the Hutchinson Economic Development Authority, ("The EDA"). Real estate to be conveved agree to convey real property in McLeod County, Minnesota, as indicated by the legal description attached hereto: See attached "Exhibit A" Purchase Price and Terms. The Parties agree that for the sum of three hundred thousand dollars and no cents ($300,000.00) Cenex will convey to the EDA parcels numbered 1-6 on the attached Exhibit A. The purchase price for the Properties shall be be paid as follows: two hundred thousand dollars and no cents ($200,000.00) shall be paid by the EDA to Cenex upon the execution of this purchase agreement, ninety-nine thousand nine hundred ninety nine dollars and no cents ($99,999.00) shall be paid by Ihe EDA to Cenex on or before January 15, 2008, and one dollar and no cents ($1.00) shall be paid at the time of closing. In addition, for good and valuable consideration which both parties acknowledge, the EDA will convey to Cenex parcel number 7 on the attached Exhibit A. . Closing Date and Contingencies. The Parties recognize and agree that parcels 1-4 as listed in Exhibit A attached hereto may have significant soil contaminalion and that this transaction is contingent upon Cenex remediating the soil on these parcels to the satisfaction of the Minnesota Pollution Control Agency and Minnesota Department of Agriculture. The closing for Ihis transaction shall take place within 30 days of receipt by the EDA of a notice of satisfactory soil remediation by the Minnesota Pollution Control Agency and Minnesota Department of Agriculture for these four parcels, but in any event, the closing of this transaction shall take place no later than December 31, 2009. From the date that this purchase agreement is entered into until the date of closing the Parties shall have an opportunity to conduct investigations ofthe properties. The obligation of the EDA to complete the transaction contemplaled under this purchase agreement is specifically contingent on the EDA satisfYing itself that there are no significant environmental or other problems affecting any property related to this agreement. If, in the sole discretion of the EDA, any of the conditions of this purchase agreement are not met, this transaction shall not close and, upon written request of the EDA, Cenex will immediately refund all monies paid to it under this agreement. Buildings and Personal Prooertv. Each Party shall remove all buildings, fixtures, and personal property from their own respective parcels at their own expense by December 31, 2007. Deed. At closing, the Parties shall execute and deliver Warranty Deeds conveying title of record subject to building and zoning laws, ordinances, state and federal regulations, exceptions to title which constitute encumbrances, restrictions or easements of record. . Assessments. Sellers of each respective parcel shall pay on date of closing all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing. The parties conveying each respective parcel shall pay on Ihe date of closing all of the special assessments levied as of the date of this purchase agreement. The parties conveying each respective parcel shall provide for payment of special assessments pending as of the date of this purchase agreement for improvements that have been ordered by the Hutchinson City Councilor other governmental assessing authorities. As of the date of this purchase agreement, the Parties represent that they have not received a notice of hearing ofa new public improvement project from any governmenlal assessing authority, the costs of which project may be assessed against the Property. If a special assessment becomes pending after the date of this purchase agreement and before the date of closing, the Party receiving the property may, at their option require the other party to pay the pending special assessment (or escrow for payment of the same) or the receiving Party may declare this purchase agreement null and void by notice to the conveying Party and any earnest money shall be refunded to the receiving Party. The conveying Party shall also have Ihe right to cancel this purchase agreement and refund all earnest monies to the receiving Party if a special assessmenl becomes pending after the date of this purchase agreement and before the date of closing if, in the judgment of the conveying Party, the new levied special assessment makes this transaction unfeasible. IOG~) . . . The conveying Party shall pay on the date of closing any deferred real estate taxes (including "green acres" taxes) under Minnesota Statute 9273.1.11 or special assessments payment of which is required as a result of the closing of this sale. Real estate taxes due and payable in the year in which this transaction is closed shall be prorated between the receiving Party and the conveying Party. The receiving Party shall pay real estate taxes due and payable in the year following closing and thereafter. The conveying Party makes no representation concerning the amount of future real estate taxes or of future special assessments. Lien Warrants. The Parties warrant that there has been no labor or material furnished to the respective Properties for which payment has not been made. Condition of ProoerlY. The Parties shall remove all debris and all personal property not included in this sale from the Property before possession date. The Parties have nol received any notice from any governmental authority as to the existence of any Dutch elm disease, oak wilt, or other disease of any trees on the Properly. Upon execution of this purchase agreement, the Parties will deliver to one another true and correct copies of all records effecting the Property and its ownership, condition and use including, without limitation, copies of all surveys, soil tests, environmental studies and reports, market studies, appraisals, tax records, governmental permits and correspondence either in their possession or immediately available to them. Other than discussed above, the Parties know of no hazardous substances or petroleum products having been placed, stored, or released from or on the Property by any person in violation of any law, nor of any underground storage tanks having been located on the Property at any time. The Parties know of no wetlands, flood plain, or shoreland on or affecting the Property. The Parties warranties and representations contained in this section shall survive the delivery ofthe deeds provided that any notice of a defect or claim of breach of warranty must be in writing. Any such notice with respect to matters referred to in this section must be given by the Parties within one year of the date of closing or they will be deemed waived. The conditions of the conveyance of this Property set forth in the Price and Terms section of this agreement shall also survive the delivery of the deeds. Disclosure of Notices. The Parties have not received any notice from any governmental authority as to violation of any law, ordinance or regulation. If the Property is subject to restrictive covenants, the Parties have not received any notice from any person as to a breach of the covenants. The Parties have not received any notice from any governmental authority concerning any eminent domain, condemnation, special taxing district, or rezoning proceedings. Access Prior to Closing. By this purchase agreement, the Parties do not acquire any right of possession of the property, license, or easement. However, during the period from the date of the Purchase Agreement to the Closing Date, the Parties and their agents shall have access to the Property for completing such tests, studies, evaluations and other investigations as they deem necessary. This right of entry shall also include the Parties' agents, surveyors, engineers, and site evaluators for the purposes of testing, measuring and evaluating the condition of the parceL The Parties shall indemnitY and hold each other harmless from any and all liens, claims, liabilities or charges incurred or caused by the Parties' contracts with surveyors, engineers, and site evaluators, which indemnity shall include any costs and disbursements incurred by Sellers in any defense thereof. Possession. The Parties shall deliver possession of the Properties on the date of closing. Examination of Title. Upon the execution of the purchase agreement, the Parties shall, at their expense, deliver to each other an updated abstract or title commitment covering the Property issued by the title company. The Parties shall obtain UCC searches of the parcels they are acquiring at their own expense. Warranties and Reoresentations of the Parties. By executing this agreement, the Parties represent and warrant that they are the sole owners ofthe respective parcels and thai there is no actual pending or threatening legal action with respect to their respective parcels. The Parties also warrant that there are no other contracts for deed, agreements, and options of first refusal affecting the Properties. Finally, the Parties warrant there are no violations of applicable IOCv) . . . governmental laws, ordinances or regularions pertaining to the Properties. Closing Costs and Prorations. The Parties shall pay all costs and expenses necessary to place title in the condition represenled by them. The Parties shall pay the costs of the abstract or title search. The Parties shall pay any state deed tax due and payable with respect to the Warranty Deed conveying the Property. Real estate taxes due and payable for the Properties the year in which the Closing occurs shall be prorated between the Parties as ofthe Closing Date. The Parties shall pay the costs of recording the conveyance instruments and the premium for any policy of title insurance which the Parties elect 10 purchase. The Parties shall share equally the closing fee charged by a title company. All other costs and expenses with respect to the Properties shall be prorated between the Parties as is customary as of the closing date. Each party shall pay its respective attorney's fees and professional costs with respect to the negotiation and closing of the purchase. Records. Upon the execution of the Purchase Agreement, the Parties will deliver to each other true and correct copies of all records (the "Records") affecting the Properties and their ownership, condition and use including, without limitation, copies of all surveys, soil tests, environmental studies and reports, market studies, appraisals, tax records, governmental permits and correspondence either in their possession or immediately available to them. Minnesota Law. This contract shall be governed by the laws of the State of Minnesota. Well Disclosure. The Parties certify that they do not know of any wells on the Properties. Closing. Closing shall be at McLeod Counly Abstract and Title Services, LLC, 235 Hassan Street, SE, Hutchinson, Minnesota. At closing, Sellers and Buyer shall disclose Iheir Federal Tax Identification numbers for the purposes of compleling state and federal tax forms. Breach of Contract/Liauidated Damages. The parties herein agree that the sole remedy for any and all claims of breach of contract arising out of the non-performance or breach of this purchase agreement shall be the earnest money paid by buyer and the accrued interest thereon, if any. Citv Aoorovals. The closing of this transaction is subject 10 the approval of the Hutchinson EDA Board and the Hutchinson City Council. Purchase Ootion. Cenex will have for a three year time period from the closing of this transaction a non-transferable option to purchase up to five (5) additional acres of land from the EDA at a price often thousand dollars ($10,000.00) per acre. The five acres for this option are located in Lot 37, Auditors Plat of the West Y, of Section 5, Township 116, Range 29. HUTCHINSON CO-OP CENEX date date HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY date date \oCC->) . . . EXHIBIT A Parcell - Legal Description: N 57' of Lots 4 & 5 N Half City of Hutchinson Parcel 2 - Legal Description: S 75' of Lots 4 & 5 North Half City of Hutchinson Parcel 3 - Legal Description: Lots 2 & 3 North Half City of Hutchinson Parcel 4 - Legal Description: Part of Lot 1 North HalfCity of Hutchinson Parcel 5 - Legal Description: That part of Lot 14 ofthe Auditor's Plat of the West Half of Section 5, Township 116 North, Range 29 West, described as follows: Commencing at the intersection of the northerly line of the former Railroad right of way and the east line of said West Half of Section 5; thence northerly, along said east line, a distance of410.42 feet to the center line of Arch Street; thence northwesterly, deflecting to the left 64 degrees 15 minutes 37 seconds, along said center line, a distance of379.20 feet; thence westerly 273.65 feet along said center line, along a tangential curve concave to the south, having a radius of 645.97 feet and a central angle of 24 degrees 16 minutes 20 seconds; thence westerly, tangent to said curve, a distance of 26.11 feet to the center line of the railroad spur line and the point of beginning of the land to be described; thence southerly and southeasterly, along said center line to the intersection with a line parallel with said easlline of the West Half of Section 5 and distant 465.75 feet west of, as measured perpendicular to, said east line of the West Half of Section 5; thence southerly, along said parallel line 195.81 feet to the intersection with said northerly line of the former Railroad right of way; thence westerly, along said northerly line of the former Railroad right of way 150.03 feet; thence northerly, parallel with said east line of the West Half of Section 5 a distance of245.00 feel; thence northerly, 100.00 feet along a tangent curve concave to the west, said curve has a radius of 335.00 feet and a central angle of 15 degrees 33 minutes 49 seconds; thence northerly, 71.98 feet along a reverse curve concave to the east, said curve has a radius of265.00 feet and a central angle of 15 degrees 33 minutes 49 seconds; thence northerly, parallel with said east line of the West Half of Section 5 a distance of222.68 feet to the center line of Fifth Avenue Southeast (formerly Arch Street); thence easterly, along said center line 6.11 feet to the point of beginning. Parcel 6 - Legal Description: A 70.00 foot wide strip of land in Lot 14 of the Auditor's Plat of the West Half of Section 5, Township 116 North, Range 29 West, lying westerly of and adjoining a line described as follows: Commencing at the intersection of the northerly line of the former Railroad right of way and the east line of said West Half of Section 5; thence northerly, along said east line, a distance of 41 0.42 feet to the center line of Arch Street; thence northwesterly, deflecting to the left 64 degrees 15 minutes 37 seconds, along said cenrer line, a distance of379.20 feet; thence westerly 273.65 feet along said center line, along a tangential curve concave to the south, having a radius of 645.97 feet and a central angle of 24 degrees 16 minutes 20 seconds; thence westerly, tangent to said curve, a distance of26.11 feet to the center line of \Oec-) . . . the railroad spur line; thence southerly and southeasterly, along said center line to the intersection with a line parallel with said east line of the West Half of Section 5 and distant 465.75 feet west of, as measured perpendicular to, said east line of the West Half of Section 5; thence southerly, along said parallel line 195.81 feet to the intersection with said northerly line of the former Railroad right of way; thence westerly, along said northerly line of the former Railroad right of way 150.03 feet to the beginning of the line to be described; thence northerly, parallel with said east line of the West Half of Section 5 a distance of245.00 feet; thence northerly, 100.00 feet along a tangenl curve concave to the west, said curve has a radius of335.00 feet and a central angle of 15 degrees 33 minutes 49 seconds; thence northerly, 71.98 feet along a reverse curve concave to the east, said curve has a radius of265.00 feet and a central angle of 15 degrees 33 minutes 49 seconds; thence northerly, parallel with said east line of the West Half of Section 5 a distance of222.68 feet to the center line of Fifth Avenue Southeast(formerly Arch Street) and said line there terminating. The south line of said strip ofland being said northerly line ofthe former Railroad right of way and the north line of said strip of land being the center line of Fifth A venue Southeast (north line of said Lot 14). Parcel 7 - Legal Description: The East 135.00 feet ofLt 5, Block 2, GOEBEL'S ADDITION, according to the recorded plat thereof. \ aCe) . . . MEMORANDUM Date: August 1, 2007 To: Honorable Mayor & City Council From: Miles R Seppelt Economic Development Director RE: Call Center Project Customer Elation Call Center - Approval for Project Financing Plan Staff is seeking approval from the City Council for the financing plan for the EDA's Call Center project. The plan was developed in consultation with: Ehlers & Associates - the city's financial advisors Dorsey & Whitney - the city's bond consul Ken Merrill - Finance Director Jeremy Carter - Deputy Finance Director Gary Plotz - City Administrator Miles R. Seppelt - EDA Director The Customer Elation Call Center will be financed with a lease-revenue bond. Lease payments from the company will be set at a level sufficient to make the bond payments as they come due. However, we need the financial strength of the City to make the bond attractive to bond- holders. In essence, we need the city to "co-sign" the loan for the EDA. The diagram on the following page describes the proposed arrangement. (Please refer to following page) Details: . The EDA will own the call center building. . The EDA will rent the building to the city (this brings the city's financial strength into the equation) . The City will rent the building back to the EDA . The EDA will then rent the building to the company. . Hopefully within 5-8 years the company will purchase the building. \ c( o\) . . . Lease Sub-lease Sub-lease Authority owns facility ~ , , , , , , , , Cit , , , i , , , , City ... , , , A , , , , , , , , , Authority ... , , , , , , , , , , Call Center --- --1 Bondholders Trustee (holds debt service reservel EDA agrees to pay bondholders from available revenues and gives first mortgage on facility y agrees to provide annual appropriation if there s a shortfall in Call Center or EDA revenues uthority agrees to provide funding if there is a shortfall in Call Center lease revenues. Call Center agrees to make lease payments to EDA. \ DC?'\) . Protections for EDA & City We have several layers of protection in place for the City and the EDA. 1) Lease with Call Center . The EDA will have a long-term lease with the Call Center . The company itself is sound financially and is growing rapidly 2) Building itself as an asset . The building itself can be re-rented if need be . The building can be sold off . The building is being constructed so that it can be used by many different types of companies (light manufacturing, etc.) o 16-foot eave height o loading dock 3) EDA Assets . The EDA has sufficient assets to insure bond payments are made. . Annual bond payments will be about $185,000 . The EDA has $2.22 million in assets (cash, notes, real estate) The EDA has the resources to make the bond payments for many years - plenty of time to either re-rent or sell the building. . To make the bond attractive to potential buyers however, we need to have the financial strength of the city behind it. Consequently, we are asking the city to essentially "co-sign" the loan for the EDA. At the City Council meeting of August 14th we will be seeking City Council approval for this financing plan. In the meantime, if you have any questions or need additional information, please give me a call at 234-4223 or visit me at City Center at any time. Thank you for your consideration. """~ ;.,t";~ t!!".;JJ; --;,." . \(::{d) ~- . . . Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350-2522 320-587-5151/Fax 320-234-4240 TO: Mayor & City Council FROM: Kenneth B. Merrill, Finance Director SUBJECT: Proposed 2008 Budget DATE: August 9, 2007 At the August 14,2007, City Council meeting, staff will provide an update on the 2008 proposed budget. In addition, staff requests that the Council set a workshop prior to the August 28, 2007, City Council meeting to review the proposed budget. - Printed on recycled paper- \ () Ce) . . . Hutchinson City Center 111 Hassan Street SE Hutchinson, MN S5350~2S22 320-587-5151/Fax 320-234-4240 TO: Mayor & City Council FROM: Kenneth B. Merrill, Finance Director SUBJECT: Policy on Fund Balance DATE: August 9,2007 The City Council has recommended staff develop a policy setting a fund balance of 40% of general fund expenditures. More detailed information will be provided at the August 14,2007, City Council meeting. - Printed on recycled paper- l()(-F) . . . CITY OF HUTCHINSON RESOLUTION NO. 13252 SETTING UNRESERVED FUND BALANCE IN GENERAL FUND WHEREAS, the City of Hutchinson has set a goal of fiscal responsibility for use of unreserved fund balance in the General Fund and; WHEREAS, the Office of State Auditor has a Statement of Position for Fund Balances for Local Government (August 2007) recommending year end unreserved fund balance in the general fund of approximately 35 to 50 percent of fund operating revenues and; WHEREAS, the City's Auditor Abdo Eick & Meyers LLP has reviewed the unreserved fund balance of the City's General Fund recommending a minimum fund balance for working capital is approximately 40 percent to 50 percent of planned expenditures (2006 management letter) and;. WHEREAS, City of Hutchinson City Council has reviewed the State Auditors position and the City's Auditors recommendation, NOW THEREFORE, be it resolved that the City Council of the City of Hutchinson approves a policy of 40 percent unreserved fund balance for the City's General Fund of planned expenditures Adopted by the City Council this 14th day of August 2007. Steven W. Cook Mayor ATTEST: Gary D. Plotz City Administrator \D~) . . . ~-:."\\'::b~IT(f<i~"",_ t~" \i1 STATE OF MINNESOTA OFFICE OF THE STATE AUDITOR SUITE 500 525 PARK STREET SAINT PAUL. MN 55103-2139 (651)296-2551 (Voice) (651)296-4755 (Fax) state.auditor(wstate,mn,us (E-mail) 1-800-627-3529 (Relay Service) REBECCA OTTO STATE AUDITOR Statement of Position Fund Balances for Local Governments Background In governmental funds], a local government should identify fund balance separately between reserved artd unreserved fund balance. The local government may assign and report some or all of the unreserved fund balance as designated and undesignated. This statement of position is based on generally accepted accounting principles (GAAP) for govemment as established by the Governmental Accounting Standards Board. Future changes in GAAP may result in a change in the position of the Office of the State Auditor. Reserved Fund Balance The function of reserved fund balance is to separate the portion of fund balance that is not appropriable for expenditure or is legally segregated for specific future uses, so that the unreservedfund balance can serve as a measure of current available financial resources. Under GAAP, the portion of fund balance that meets the following criteria should be classified as reserved: . Resources not available for spending. Some of the assets reported in governmental funds are not available for spending in the subsequent year's budget. For example, a long-term loan receivable, such as an advance to another fund, is not available for current spending. Likewise, local govemments that report supplies, inventories, and prepaid items in governmental funds typically would report a corresponding amount of reserved fund balance to indicate that these amounts are not actually available for spending. . Legal restrictions on spending. Fund balance also is reserved to indicate situations where a portion of fund balance is not available for new spending because of legal I Governmental fund reporting focuses primarily on the sources, uses, and balances of current financial resources and often has a budgetary orientation. The governmental fund category includes the general fund, special revenue funds, capital projects funds, debt service funds, and permanent funds. (Codification of Governmental Accounting and Financial Reporting Standards ~ 1300.102). Reviewed: August 2007 Revised: NA 2007-1022 \Or+ ) . restrictions involving parties outside the financial reporting entity. One common example is amounts reserved for encumbrances, which represent contracts for goods or services with outside parties still outstanding at the end of the year. Reservations also are commonly used to report legal restrictions arising from state statutes or grant requirements placed on the use of specific resources. Unreserved Fund Balance The part of fund balance not identified as reserved is the unreservedfund balance. The unreserved fund balance may, in turn, be subdivided into designated and undesignated portions. Designated Fund Balance . Whereas GAAP dictates the criteria for reserved fund balance, fund balance designations represent management's intended use of resources. Fund balance designations may be established to indicate management's tentative plans for financial resource utilization in a future period, such as for general contingencies or for equipment replacement. Such designations reflect tentative managerial plans or intent and should be clearly distinguished from that which is reserved. Designations should be supported by actual plans approved by either the governing body or an appropriate officer. Such plans or intent are subject to change and may never be legally authorized or result in expenditures. Expressed another way, designations are a government's self-imposed limitations on the use of available current financial resources Unreserved fund balance is designated for a local government's intended use of current available financial resources. The focus on current financial resources is unique to governmental funds. Accordingly, designations are reported on the face ofthe balance sheet only in connection with governmental funds. Designations should be reported as part of the unreserved fund balance designated for. . . , or disclosed parenthetically or in the notes to the financial statements.2 GAAP does not allow for any equivalent equity designation to be used for government-wide financial reporting or for proprietary fund and fiduciary fund financial reporting. Undesignated Fund Balance The unreserved undesignated fund balance consists of current resources available for which there are no government self-imposed limitations or set spending plan. Although there is generally no set spending plan for the undesignated portion, there is a need to maintain a certain funding level. Undesignated fund balance is commonly used for emergency expenditures not previously considered. In addition, the resources classified as undesignated can be used to cover expenditures for revenues not yet received. . 2 Codification of Governmental Accounting and Financial Reporting Standards S 1800.144. Reviewed: August 2007 2 Revised: NA 2007-1022 1<<-9 ) . The basic financial statements should provide information on the nature and purpose of each major component of reserved fund balance and unreserved fund balance. The notes to the financial statements should disclose this information when it is not discernible on the face of the financial statements. Recommendations Adoption of Fund Balance Policy The Office of the State Auditor recommends that each local government establish a formal policy on the level of unreserved fund balance that should be maintained in the general fund and special revenue funds The policy should be set by the governing body and should provide both a time frame and a specific plan for increasing or decreasing the level of unreserved fund balance. If the fund balance does not match the policy, a plan should be developed by the governing body that will allow for compliance with the policy. The Office of the State Auditor recommends each local government adopt a policy specifYing the types of future expenditures to be designated, how the amounts for such designations are arrived at, and whether the governing body will set the designations annually or will set up a designation process and appoint someone to make the determination based on the guidelines established by the governing body. . The local government's revenue streams should be kept in mind when drafting such a policy. For example, funds that rely heavily on property taxes must maintain sufficient financial resources to provide adequate resources until the next tax revenue collection cycle. Funds that rely on state appropriations and grants should consider the timing of those payments. Also, local governments need to maintain a prudent level of financial resources to protect against a forced service level reduction or having to raise taxes and fees because of temporary revenue shortfalls or unpredicted one-time expenditures. Other considerations include the predictability ofrevenues and the volatility of expenditures--higher levels of unreserved fund balance may be needed if significant revenue sources are subject to unpredictable fluctuations or if operating expenditures are highly volatile. The availability of resources in other funds as well as the potential drain on the general fund resources from other funds could affect the level of unreserved fund balance needed. The availability of resources in other funds may reduce the amount of unreserved fund balance needed in the general fund, just as deficits in other funds may require that a higher level of unreserved fund balance be maintained in the general fund. In some cases, the unreserved fund balance in special revenue funds may not be available for use for general operations of the local government, for example a park dedication special revenue fund in a city or a ditch special revenue fund in a county. In these situations, it is important for the local government's fund balance policy to document that these type of funds are not available for future appropriation to the general operations of the local government. . Reviewed: August 2007 Revised: NA 3 2007-1022 I()C~ ) . Appropriate Fund Balance Levels The Office of the State Auditor recommends that at year-end local governments maintain an unreserved fund balance in their general fund and special revenue funds of approximately 35 to 50 percent of fund operating revenues or no less than five months of operating expenditures, which should provide the local government with adequate funds until the next property tax revenue collection cycle. The adequacy of unreserved fund balance should be assessed based on an individual local government's own circumstances. If the local government's unreserved fund balance is less than or greater than the 35 to 50 percent recommended above the local government should be able to explain the reason for the difference. Local governments should also consider taking a position on the level of unreserved fund balance in other funds that have unrestricted revenues. In setting an appropriate level, the local government should consider any long-term forecasting/planning issues, to avoid the risk of placing too much emphasis on the level of unreserved fund balance at anyone time. . . Reviewed: August 2007 Revised: NA 4 2007-1022 \O~) Page Four Other Matters Our principal observations and recommendations are summarized below. These recommendations resulted from our observations made in connection with our audit of the City's financial statements for the year ended December 31, 2006. Financial Position and Resnlts of Operations General Fund All general governmental funclions of the City which are not accounted for in separate funds are included in the General fund. Minnesota municipalities must maintain substantial amounts of fund balance in order to meet their liquidity and working capital needs as an operating entity. That is because a substantial portion of your revenue sources (taxes and intergovernmental revenues) are received in the last two months of each six-month cycle. As you can see from the following information, it is necessary to maintain fund balance in order to keep pace with the increasing operating budget. This information is also presented in graphic form below. Percent Unreserved General of Fund Fund Balance Budget Fund Balance to Year December 3 I Year Budget Budget . 2002 $ 2,5]] ,899 2003 $ 8,248,274 30.5 % 2003 2,777,522 2004 8,715,016 31.9 2004 3,691,199 2005 9,287,559 39.7 2005 4,124,007 2006 10,345,037 39.9 2006 4,825,600 2007 10,726,244 45.0 The following is an analysis of the General Fund's unreserved fund balance for the past five years compared to the following year's budget Unreserved Fund BalancelBudget Comparison $2,000,000 $10,726,244 . .. ---;;;.~ . . $10,345,037 ~.. ... -----.-- $8,248,274 $8,715,016 $9,287,559 ... -_. . . 45.0% . 39.7% 39.9% . 30.5% 31.9% $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $- . 2002 2003 2004 2005 2006 -+- Actual Fund Balance __Budget \ Dr~ ') S07.625.272i . Fax 507.388.9139 www.aemcpas.com City of Hutchinson Page Five The unreserved fund balance increased by $701,593 in 2006. The total unreserved fund balance of $4,825,600 represents 45.0 percent of the 2007 budget. The Minnesota Office of the State Auditor classifies urneserved fund balance levels relative to expenditures as follows: Extremely low Low Acceptable Moderately high High Very high Extremely high Under 20% 21-34 35 - 50 51-64 65 - 100 100 - 150 Above 150 They do group all General, special revenue and debt service funds of the government when making this calculation where our calculation is based only on the General fund. Although there is no legislation regulating fund balance, it is a good policy to designate intended use of fund balance. This helps address citizen concerns as to the use of fund balance and tax levels. The City has designated for intended use of fund balance a portion at and above the fifty percent level. We recommend a minimum fund balance for working capital be approximately 40 percent to 50 percent of planned expenditures. So at the current level, the fund balance is in the acceptable range. The purposes and benefits of a fund balance are as follows: eo Expenditures are incurred somewhat evenly throughout the year. However, property tax and state aid revenues are not received until the second half of the year. An adequate fund balance will provide the cash flow required to fmance the governmental fund expenditures. o The City is vulnerable to legislative actions at the State and Federal level. The State continually adjusts the local government aid and property tax credit formulas. We also have seen the State mandate levy limits for cities over 2,500 in population. An adequate fund balance will provide a temporary buffer against those aid adjustments or levy limits. o Expenditures not anticipated at the time the annual budget was adopted may need immediate Council action. These would include capital outlay, replacement, lawsuits and other items. An adequate fund balance will provide the financing needed for such expenditures. o A strong fund balance will assist the City in maintaining, improving or obtaining its bond rating. The result will be better interest rates in future bond sales. . \c(f) 507.625.2727 . Fax 507.388.9139 www.aemcpas.com