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cp11-12-2002 cAGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, NOVEMBER 12, 2002 1. CALL TO ORDER - 5:30 RM. 2. INVOCATION -Rev. Scott Daniels, Vineyazd United Methodist Church 3. MINUTES (a) REGULAR MEETING OF OCTOBER 22, 2002 Action -Motion to approve as presented 4. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMLSSIONS 1. BUII.DING DEPARTMENT MONTHLY REPORT FOR OCTOBER 2002 2. PIONEERLAND LIBRARY SYSTEM FINANCIAL REPORT FOR SEPTEMBER 2002 3. IIUTCHINSON AIRPORT COMMISSION MINUTES FROM SEPTEMBER 5, 2002 4. PARKS, RECREATION & COMMUNITY EDUCATION BOARD MINUTES FROM SEPTEMBER 9, 2002 • 5. FIRE DEPARTMENT MONTHLY REPORT FOR OCTOBER 2002 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 12060 -RESOLUTION DEFERRING ASSESSMENT FOR SENIOR CTTIZEN 2. RESOLUTION NO. 12062 -RESOLUTION TRANSFERRING FUNDS FROM THE CpM i~JNITY DEVEIC,OPMENT (ED~FUND RGY LOAN, TO HUTCHINSON 3. RESOLUTION NO. 12063 -RESOLUTION TRANSFERRING $158,500 FROM SPECIAL ASSESSMENT BOND FUND TO AIItPORT CONSTRUCTION FUND 4. RESOLUTION NO. 12064 -RESOLUTION TRANSFERRING $170,000 FROM CAPTI'AL PROJECTS FUND TO AIRPORT CONSTRUCTION FUND 5. RESOLUTION NO. 12065 - RESOLUTION RELATING TO FINANCING EXPENDITURES RELATING TO NATURAL GAS PIPELINE 6. RESOLUTION NO. 12066 - RESOLUTION RELATING TO FINANCING EXPENDITURES RELATING TO IIvIPROVEMENT TO HLITCHINSON COMMUNITY HOSPITAL 7. RESOLUTION NO. 12067 -RESOLUTION FOR PURCHASE • 8 PROPERTYCEIN HASS3AN VALLEOY~ OWNSH (SECOND 4READIIVG AND ADOPTION CITY COUNCIL AGENDA -NOVEMBER 12, 2002 9. ORDINANCE NO. 02-324 - AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP OF THE CTI'Y OF HUTCHINSON FOR A PROPERTY TO BE REZONED FROM R-1 TO C-2 (SECOND READING AND ADOPTION) (c) CONSIDERATION FOR APPROVAL OF CHANGE ORDER NO. 1 (LETTING NO. 3, PROJECT N0.02-06) (d) CONSIDERATION FOR APPROVAL OF CHANGE ORDERNO.1(LETTING N0.4 & 5 PROJECT NO. 02-11, 02-12, 02-13, 02-14) (e) CONSIDERATION FOR APPROVAL OF HIJTCHINSON AREA CONVENTION & VISITORS BUREAU BUDGET (~ COURSE OAD N FOR APPROVAL OF ACQUIRING RIGHT-OF-WAY FOR GOLF (g) CONSIDERATION FOR APPROVAL OF FLE3GBLE BENEFTI' PLAN DOCUMENT AND PLAN SUMMARY DOCUMENT RESTATEMENT (h) CONSIDERATION FOR APPROVAL OF REVISING STATE AID STREET SYSTEM Action -Motion to approve consent agenda 5. PUBLIC HEARINGS - 6:00 P.M. -NONE 6. COMMUNICATIONS REQUESTS AND PETITIONS • 7. UNFINISHED BUSINESS 8. NEW BUSINESS (a) DISCUSSION OF VEHICLE(S) REMOVAL DURING SNOW EVENTS (STREET & PARKING LOTS) Action - (b) CONSIDERATION FOR APPROVAL OF SETTING BUDGET WORKSHOP FOR NOVEMBER 26, 2002, AT 4:00 P.M. Action -Motion to reject -Motion to approve (c) CONSIDERATION FOR APPROVAL OF CONSULTING AGREEMENT WITH EARTH TECH FOR WATER TREATMENT PLANT PILOT TESTING Action -Motion to reject -Motion to approve (d) CONSIDERATION FOR APPROVAL OF ASSESSMENT MANUAL Action -Motion to reject -Motion to approve (e) CONSIDERATION OF ORDINANCE NO. 02-325 - AN ORDINANCE PERMITTING CITY COUNCIL MEMBERS TO SERVE ON THE HUTCHINSON UT'lLITIES COMIvIISSION (WAIVE FIRST READING AND SET SECOND READING AND • ADOPTION FOR NOVEMBER 26, 2002) Action -Motion to reject -Motion to approve CITY COUNCIL AGENDA-NOVEMBER 12, 2002 • (f) RESOLUTION DESIGNATING CITY COUNCIL MEMBER SEATS Action - Motion to reject -Motion to approve 9. MISCELLANEOUS (a) CONIMiTNICATIONS 10. CLAIMS APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS A Action - Motion to approve and authorize payment of Verified Claims A from appropriate funds (a) VERIFIED CLAIMS B Action-Motion to approve and authorize payment of Verified Claims B from appropriate funds 11. ADJOURN • n LJ MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCII, • OCTOBER 22, 2002 1. CALL TO ORDER - 5:30 P.M. Mayor az orgerson ca the meeting to order. Council Members present were John Mlinaz, Jim Haugen, Kay Peterson and Duane Hoversten. Also present were Gary Plotz, City Admimstrator, Mazc Sebora, City Attorney and John Rodeberg, Director ofEngineering/Public Works. 2. INVOCATION -Rev. Sam Grozdanov, of Shalom Baptist Church, delivered the invocation. 3. MINUTES (a) REGULAR MEETING OF OCTOBER 8, 2002 (b) JOINT MEETING WITH HUTCHINSON UTILITIES COMMISSION ON OCTOBER 1Q 2002 Minutes were approved as presented 4. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. PIONEERLAND LIBRARY SYSTEM BOARD MINiJTES FROM AUGUST 15, 2002 2. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM JULY 22, 2002 • 3. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM AUGUST 26, 2002 4. PLANNING COMMISSION MINUTES FROM SEPTEMBER 17, 2002 5. HUTCHINSON AREA HEALTH CARE FINANCIAL REPORT FOR SEPTEMBER 2002 6. HUTCHINSON AREA HEALTH CARE BOARD MINCJTES FROM SEPTEMBER 17, 2002 7. CITY OF HUTCHINSON FINANCIAL REPORT FOR SEPTEMBER 2002 8. CITY OF HUTCHINSON INVESTMENT REPORT FOR SEPTEMBER 2002 9. COMPOST REFUSE FINANCIAL REPORT FOR SEPTEMBER 2002 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO.12052-RESOLUTION CERTIFYING ASSESSMENTS OF THE CITY OF HUTCHINSON TO THE COUNTY OF MCLEOD (c) PLANNING COMMISSION ITEMS 1. CONSIDERATION OF ANNEXATION LOCATED IN HASSAN VALLEY TOWNSHIP REQUESTED BY HUTCHINSON LAND HOLDINGS, LLC (SHIMEK PROPERTY) WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (WAIVEFIRSTREADINGAND SET SECOND READIIVGAND • ADOPTION OF ORDINANCE NO. 02-323 FOR NOVEMBER 12, 2002) 2. CONSIDERATION OF REZONING PROPERTY FROM R-1 TO C-2 REQUESTED 3(~-~ CITY COUNCIL MINUTES -OCTOBER 22, 2002 BY L&P SUPPLY, 1470 SOUTH GRADE ROAD WITH STAFF • RECOMMENDATION AND FAVORABLE RECOMMENDATION (WAIVE FIRST READINGAND SET SECOND READING ANDADOPTIONOF ORDINANCENO. 02- 324 FOR NOVEMBER 12, 2002) 3. CONSIDERATION OF VARIANCE REQUESTED BY CARSON BUII.DERS TO CONSTRUCT ATHREE-SEASON PORCH 40 FEET FROM THE SHORELAND LOCATED AT 346 SCHOOL ROAD WTI'H STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12054) 4. CONSIDERATION OF DENYING A VARLANCE REQUESTED BY DAVID VANDENBERG,1035 JEFFERSON STREET, TO REDUCE DRIVEWAY SETBACK FROM 5 FEET TO 1 FOOT WITH STAFF RECOMMENDATION AND UNFAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12055) 5. CONSIDERATION OF A CONDITIONAL USE PERMIT REQUESTED BY RIGHT WAY BUILDERS TO OPE~,TE A CONSTRUCTION BUSINESS OFFICE IN THE C-5 DISTRICT AT 177 - 3 AVENUE NW WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12056) (d) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR JOHN RODEBERG, DIRECTOR OF ENGINEERING/PUBLIC WORKS, TO WASHINGTON, D.C. FROM JANUARY 12 - 16, 2003 (e) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR SGT. CHRLS DOBRATZ TO APPLETON, WISCONSIN, FROM NOVEMBER 12 -15, 2002 (~ APPOINTMENT OF BOARD MEMBERS TO PARKS, RECREATION & COMMUNITY • EDUCATION BOARD AND PLANNING COMMISSION (g) CONSIDERATION FOR APPROVAL OF CIVIC ARENA AGREEMENT MODIFICATIONS (h) CONSIDERATION FOR APPROVAL OF TRANSIENT MERCHANT LICENSE FOR ROBERT PAUL ON NOVEMBER 7, 2002, AT HUTCHINSON EVENT CENTER Mike Cannon appointed to Pazks, Recreation & Community Education Boazd and Mike Flaata appointed to the Planning Commission. John Rodeberg clarified that the variance for Mr. Vandenberg was denied by the Planning Commission. Motion by Mlinaz, second by Haugen, to approve consent agenda. Motion carried unanimously. 5. PUBLIC HEARING - 6:00 P.M. (a) ORDINANCE N0.02-322 - AN ORDINANCE GRANTING A FRANCHISE WITH JOE DOOLEY TO CONSTRUCT AND MAINTAIN A PRIVATE HANGAR ON HUTCHINSON CITY AIRPORT PROPERTY (SECOND READING AND ADOPTION) John Rodeberg explained that this is the first franchise agreement being considered for a private hangar to be built at the Hutchinson Municipal Airport. John Olson, Assistant Public Works Director, went onto explain that this is historic for the Hutchinson Airport, as this is the fast private hangaz to be considered. Mr. Olson projected that this azea may very well be • developed with commercial grade hangazs. Mr. Olson explained that the process used for individuals interested in building private hangars aze for the individuals to apply for a franchise and then enter into a lease agreement. 2 3c~~ CITY COUNCIL MINUTES -OCTOBER 22, 2002 The lease agreement will be somewhat geazed to the specific individuaUapplicant, however • the ordinance granting the franchise will be standard. Motion by Peterson, second by Mlinaz to close the public hearing. Motion carried unanimously. Motion by Mlinaz, second by Hoversten, to approve the franchise ageement and adopt Ordinance No. 02-322. Motion carried unanimously. 6. COMMUNICATIONS, REOUEST5 AND PETITIONS (a) PROJECT NO. 02-06, JUUL ROAD SW -REQUEST BY MERRILL AND DONNA JOHNSON John Rodeberg explained that Merrill Johnson, resident on Juul Road, had raised a concern regarding the assessment payments that aze due even though the project is not completed yet. Mr. Rodeberg expplained that the project is 95% complete, with final completion slotted for the Spring 2003. Mr. Rodeberg went on to explain the process used for paying assessments. 7. 8. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF RATE AND POLICY CHANGES AT OAKLAND CEMETERY John Olson, Assistant Public Works Director, presented before the Council. Mr. Olson explained that in comparison to other municipal cemeteries, Hutchinson rates are average, however services and maintenance of the cemetery aze well above average. Due to that, Mr. Olson is proposing that rates increase with a percentage of the increase being deposited into the perpetual care fund. Motion by Peterson, second by Hoversten, to approve the rate changes at Oakland Cemetazy. Motion carried unanimously. (b) CONSIDERATION OF A VARIANCE REQUESTED BY GENE EBNET, 106 GARDEN ROAD, TOCONSTRUCT AN ADDITION TONON-CONFORMING GARAGE 2.6 FEET FROM PROPERTY LINE WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12053) John Rodeberg, Director of Engineering presented on behalf of the Director of Planning/Zoning/Building. Mr. Rodeberg explained that the request was to construct a gazage 2.6 feet from the property line, wrth requirements normally being 3 feet from the property line. Motion by Mlinar, second by Haugen, to approve variance for Gene Ebnet at 106 Garden Road. Mofion carried unanimously. (c) CONSIDERATION OF SETTING DATE FOR CANVASSING RESULTS FROM GENERAL ELECTION TO BE HELD NOVEMBER 5, 2002 Motion by Mlinaz, second by Peterson to set the canvassing ofthe November 5~' election for November 6, 2002, at 8:00 a.m. Motion carried unanimously. (d) CONSIDERATION FOR APPROVAL OF LOG, BRANCH AND LEAF GRINDER • REQUEST Gary Plotz, City Administrator, presented before the Council. Mr. Plotz explained that McLeod County has been grinding this type of material at several locations throughout the 3i0.~ CITY COUNCIL MINUTES -OCTOBER 22, 2002 county. The County leases the equipment to provide this service. The amount of material to • be ground has increased over the yeazs. The City is proposing that the County pay for a horizontal grinder, with the City providing the grinding services with City staff at each location. The City would then retain the ground material for composting. The County is also considering requesting that the City provide the trucking services from each azea city that participates to haul the material to the compost site. Mr. Plotz explained that a formal request needs to be made by the City in order for the County to approve such a transaction. Motion by Peterson, second by Mlinaz, to approve a request to the County of $250,000 (est.) for the horizontal log, branch and leaf grinder. Motion carried unanimously. 9. MISCELLANEOUS (a) COMMUNICATIONS Kay Peterson - Ms. Peterson stated that the Hutchinson Fire Department was recognized at the Fire Chiefs Conference for the expose done on WCCO Channel 4. Ms. Peterson also informed the public that free batteries for smoke detectors aze being given away by the Fire Department. Gary Plofz - Mr. Plotz explained the items that were discussed at the Team Leadership Meeting eazlier in the day. Items discussed were the horizontal grrider, the EDA Executive Director position- an offer has been extended, the Liquor Store Manager position- an offer has been extended, liquor store location - an appraisal will be done on property located on Main Street, update on Jefferson Street project. John Rodeberg - Mr. Rodeberg explained that earlier in the year there were two assessment objections filed. One of the objections was filed by American Energy Systems on 2 • Avenue. After review, staff is recommending reducing the assessment rate for propertywith existing curb and gutter (including Ridgewater College) which reflects the cost of removing and replacing concrete curb and gutter. The second objection was filed by Deane Dietel also on 2" Avenue. After further review, staff is recommending not to modify the assessments on his property. Money from state aid funds are available to aid in this project. Motion by Peterson, second by Hoversten, to approve amended assessment roll on 2na Avenue. Motion carried unanimously. Marc Sebora - Mr. Sebora explained that he is reseazching the possibility of having a Council Representative serve on the Utilities Commtsston m order to approve commttnicahon lines between the two commissions. Mr. Sebora will have a recommendation at the next Council meeting. 10. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS A Motion by Haugen, second by Peterson, to approve and authorize payment of Verified Claims A from appropriate funds. Motion carried unanimously. 11. ADJOURN With no further business to discuss, the meeting adjourned at 6:15 p.m. • 3c~~ Ft?r° rTr~° rrrr~ir~lt t7,~i~'1+~h~'J' ~rif~~' [1 F 'vi ~' ~~' ,,~,~ tiro*~ r rN, `,, 11~ :(~ 1~ ~~' ~ ''. (t ~[ l~ rl~fn~t, e ~~AyC ~~I~~ I ~:L I i(_1~V7 T. '...,.. ~''`~' _sa.':: 7.307-~ ~..,w r '>. :...'.'.' = .~'~ .s ,'°t ~ .,.x ..? ~r ~.-,-. i'--r. m ~ .. p1~1 kc 31N~EN"I.~~L RESyIN~:;I - ...~ _ 13$~.f1U ' _ ~ .._ ....~. ~.~.....- ... ..... ~, gyp.®~.. X115 ..~- IIaIC~N~TJr'4LI~~II~E ~~~.~.~. ~~~. -..... .. ..~n., -. ~_ ._~.... ... _ ... -_._m~ Ip~t~,hITeWL `IN~~'~ 1~PIF~1~1T ~ ~ i ~.~ _ _ ... w .. _.~... C15 ..... ~;xC.~~AV. 1~Y .~.~ .~.~. .. _...._ I~T1~~ #! ~~.C10 ~.~.._. r~{1 fd~_... .... -~ ...-w.....-, '- E . .~.A ... _ a ~ ~a.~a _ ~~~ 4; a.laa .... .....m,. ~ ..~. ~_.e~_. ..... ~ ..._. ~,. _-.__~a.a..._ . _~ ~ .....~.-~...~~~._..-r....._ .... ~..mm.._. .~....._ ~.... ~~~ _ ......_ .....--...~...~~- ~~~ .. .-. r=1NJS~~..__ ...~_ a~r~~ rv ~ .~.~ ~_.....~-.~ .._._..~...~.~. ~aa~w.~ ,mm ~. ._ m...... ~rr~~~~ m-...~ -~,Ah41L1r' DFTAC~'N~~[~ ~~ .....~...... . GITIHI1~ UI~I~IVFdw01~~~~EFpINC, k~LTER...~ ~ ....~.-.~~.... ~~5....m.~ .m ... ~T~i...~._._~... ....... -...._.. '~9C1h~F~E~I~}~N'I"IAL 3~'g~~f~LJC,,TL1~8~~ ~t"HEi~ f"HAN E3Ui~C)VNCa, I ~~ ...m. . m~__ _~. ..... _ _.m, .,.,u ~ ~. ..~_ 43q I~SIC7~NTI~aL H~11~7E' e4iJC11TIQPJS .. ~ 437-.. - ~PJRB~If7EhIT~JAL t~ IN ~~ M H~'i !~+Efti~E~IN~, ~r,n f ENTIAL ~ n nw„; ITl~t~H ._,. k..;- ' ~ ra e ^-+~ ~ ~ spy .._ _ -m.~_ ... ~~,,,~ 4>~`r. 3 ~..~t~xN '~Nn,.r~k,yi3 ~ T~}T.Ak. I,lrti7~~:' fy ;, ,;:.: afp:. ,~ectr~rrs furth•_ :cre',h ~~Ifa ~ ~a.~~ s~;zo~a„u~;~. ' ', 'S~35,i714,17C} ~? ~2O.~Jt~O Chu _._. 7 7ryry'Sryry~[1yy.y0^^y~y0~y m•aq"f~MV4fV.A~"LF Frye !. 5 $B~1,Q~p"»I,flol 1,~5~,(104.0~1 A~fr,arr~ta~r ~f Fa~~rn7an~ f'~rmrts f~rr tf~~ v~tJa PIONEERLAND LIBRARY SYSTEM REVENUE AND EXPENDITURE REPORT SEPTEMBER 30, 2002 HUTCHINSON M-T-D Y-T-D % OF % OF AMOUNT AMOUNT BUDGET BUDGET YEAR CIT`! OPERATING 0.00 72,640.50 96,854.00 75.00% 75% COUNTY OPERATING 0.00 39,537.75 52,717.00 75.00% 75% GIFTS 31.22 1,209.72 797.00 151.78% 75% CHARGES, FINES 528.65 4,492.20 5,455.00 82.35% 75% COPY MACHINE 236.30 2,363.15 2,451.00 96.42% 75% EQUIPMENT RENTALS 3.00 17.00 8.00 212.50% 75% BOOK SALES O.DO 0.00 0.00 0.00% 75°k OTHER 83.00 681.06 390.00 174.63% 75% TOTAL REVENUES 882.17 120,941.38 158,672.00 76.22% 75% RESERVE 0.00 100,247.70 lOD,248.00 100.00% 75% GRP,ND TOTAL 882.17 221,189.08 258,920.00 85.43% 75% EXPENDITURES: • SALARIES -9,295.37 -78,343.23 -112,348.00 69.73% 75% HEALTH INSURANCE -2.20 -18.80 -54.00 34.81% 75% HEALTH INSURANCE- DEDUCTIBLE 0.00 0.00 -0.00 0.00% 75% PAYROLL TAXES -1,077.02 $,848.33 -14,807.00 59.76% 75% 800KS -1,671.11 -17,380.84 -27,000.00 64.37% 75% PERIODICALS 0.00 -3,965.47 -4,160.00 95.32% 75% VIDEOS 0.00 -79.14 -434.00 18.24% 75% BINDINGS 0.00 0.00 -100.00 0.00% 75% TELEPHONE -33.60 -242.62 -320.00 75.82% 75% POSTAGE 8 SHIPPING -50.00 -84.00 -300.00 28.00% 75% NEW EQUIPMENT 0.00 0.00 -1,000.00 0.00% 75% MAINTENANCE CONTRACTS 0.00 0.00 -1,298.OG 0.00% 75% SUPPLIES -245.40 -1,094.17 -2,000.00 54.71°h 75% PROMOTIONAL & PROGRAMS O.OD -450.42 -500.00 90.08% 75% INSURANCE 0.00 -1,254.13 -1,254.00 100.01% 75% AGS $ LEGAL NOTICES 0.00 0.00 -112.00 0.00% 75% AUDITING 0.00 -96.62 -97.00 99.61% 75% BOOKKEEPING;OVERDUES -275.12 -2,412.17 -2,857.00 84.43% 75°.'0 CGNTIIVUING EDUCATION 0.00 -32.23 -427.00 7.55% 75°r5 SALES TAX 0.00 0.00 -0.00 0.00% 75°k TOTAL EXPENDITURES -12,649.82 -114,302.17 169,068.00 67.61% 75% RESE~4`/E -11,767.65 106,886.91 89,852.00 75% l~la~a '~HUTCHINSON AIRPORT ADVISORY COA'IlVIISSION Thursday, September 5, 2002 • 5:30 p.m. Amval/Departure Building IVIIIIUtCS Ct+airmAn Dave Skaaz called the meeting of the Hutchinson Airport Commission to order at 5:35. Members present: Dave Skaaz, Chuck Brill, Tim Faber, Robert Hantge Members absent: Doug Kephart, excused Others Present: John Olson, City of Hutchinson; and Tom Pazker, Hutchinson Aviation, Fixed Base Operator, Jeff Lux, potential Airport Commission appointee. There was a quomm of members present 1. Approve minutes of August 8, 2002 A motion was made by Brill, seconded by Faber, to approve minutes of the August 8, 2002 meeting. Unanimous approval. 2. Conditional Use Permit Application -Erection of 140' lower at Fairgrounds Per existing zoninDV ordinances, the Airport Advisory Coffinission must comment on any requests for towers that are made within City limits. Olson reviewed the Conditional Use Permit application, submitted by Midwest Real Estate Services, Inc, on behalf of Midwest Wireless. The application is for erection of a 140' tower to be located on Fairgrounds property, just west of the intersection of Market St SW and Denver Ave SW. • A motion was made by Brill and seconded by Faber to approve an Airport Advisory Commission Resolution related to the conditional use permit application, attached and made a part of these minutes. Unanimous approval. 3. Conditronal Use Permit Application Area at airport designated for construction of private hangars At the August 8, 2002 meeting, Commissioners directed Olson to apply for a conditional use permit, for a period of three years, designating spaces at the airport where private parties could construct hangars on airport property. Olson reviewed the contents of the application with Commission members, reported that the application had received staff recommendation and the Planning Commission would review the application at the September 17, 2002 meeting. Olson reported the private hangar lease document, that the City Attorney had reviewed Commission members had been working on for several months. Connuission members requested that language regazding azbittation be left in the document. Commissioners directed Olson to draft a letter to Ore Director of Mn/DOT Aeronautics to express concern regazding this application and ask if Aeronautics would contact the Attorney General's ofSce to expedite the agreement mentioned in the application. 4. Prov[sion of Utilities to Airport A motion was made by Faber and seconded by Brill to approve an Airport Advisory Commission Resolution related to provision of utilities to the airport, attached and made a part of these minutes. Unanimous approval. 5. Ground Communicafiops Outlet fG.C.O.1 • Chairman Dave Skaaz updated Commission members that a Ground Communications Outlet (GCO) had been installed at the airport. The GCO provides a telephone link, via Ore aircraft radio, to Center and Princeton Flight Service. Tuning the radio [0 121.725 accesses the GCO. 4 clicks accesses Center, and 6 clicks accesses Princeton. Skaaz informed Commissioners that pilots should not use the GCO while airborne. ~ ~~~3 Airport Advisory Commission Minutes • September 5, 2002 Page 2 6. Bulldina Maintenance Commission members informed Olson of building maintenance needs at the Arriva]/Departure building. 7. Miscellaneous Jeff Lux has expressed interest in becoming a Conmrission member. Jeff could replace Jim Faber, whose term expires at the end of September, or if it is Jeff s preference, he could fill the remainder of Robert Hantge's term. Other potential members were discussed. None have formally filed an interest form at City Center, but will be encouraged to do so. This individual, when appointed, could fill the remainder of Robert Hantge's term or replace Jim Faber, whose term expires at the end of September. 8. Next Meetine The next meeting date still remains set for October 17, 2002 at 5:30. The preliminary agenda will include more information related to private hangaz development. • Attached and made a part of these minutes aze: 1. Resolution related to the conditional use pemnt application 2. Resolution related to provision of utilities to the airport • y l.~~3 ~HUTCHINSON AIRPORT ADVISORY COMNIISSION • Resolution A resolution relating to a Conditional Use Pemrit application submitted on behalf of Midwest Wireless. WHEREAS; the existing zoning ordinances require continent from the Airport Advisory Commission whenever a tower is proposed within the City limits of the City of Hutchinson, and; WHEREAS; a 140' monopole tower, located west of the intersection of Market St SW and Denver Ave SW on Fairgounds property, is being proposed by Midwest Wireless, NOW, THEREFORE BE IT' RESOLVED BY THE AIl2PORT ADVISORY COMMISSION OF THE CITY OF HUTCHINSON: That the Planning Commission and City Council consider denying the permit for the following reasons 1. The proposed tower would be very close to the pattern for runway 15. The proposed tower may likely affect Non-directional beacon and Global Positioning System (NDB/GPS) approaches under Instrument Flight Rules (IFR). 2. The proposed tower would likely affect "Circle-to-Land" operations on runway 15. 3. The proposed tower may affect helicopter traffic, because helicopters do not follow standazd patterns during emergency flights. 4. The proposed tower may pose a safety hazard for parachuting operations. • 5. The elevation of [he property on which the tower would be constructed was not discernable from information provided by the applicant. Therefore, the Airport Advisory Commission could not determine if the structure would meet Airspace Zoning requirements related to max;mum height of objects neaz the airport. 6. All efforts to secure an appropriate site on the Century Ave SE water tower have not been exhausted. Adopted on the 5's day of September, 2002 by The Hutchinson Airport Advisory Commission Dave Skaar, Chair Chuck Brill Jim Faber Robert Hantge, liaison with Planning Commission ~J y ~~J3 ~HIJTCHINSON AIRPORT ADVISORY COMMISSION • Resolution A resolution relating to provision of utilities to Hutchinson Municipal Airport -Butler Field. WHEREAS; the airport lies wholly within the City limits of the City of Hutchinson, and; WHEREAS; the airport is using electricity and gas from vendors other than Hutchinson Utilities, NOW, THEREFORE BE IT RESOLVED BY THE AIItPORT ADVISORY COMMISSION OF THE CITY OF HUTCHINSON: That the Hutchinson Utilities Commission and City Council provide elec~icity and natuml gas to airport property, with the following understanding: 1. The schedule of installation would be at the convenience of both Hutchinson Utilities and the airport. 2. The Airport Advisory Commission is awaze it maybe difficult to bring both natural gas and elechicity to the site atone time. Adopted on the 5"' day of September, 2002 by the Hutchinson Airport Advisory Commission Dave Skaar, Chair • Chuck Brit] Jim Faber Robert Hantge, liaison with Planning Commission • ~~j3 C • September 6, 2002 Raymond J. Rought, Director Mn/DOT Office of Aeronautics 222 East Plato Blvd St. Paul, MN 55107-1618 Dear Mr. Rought: City of Hutchinson Hutchinson Municipal Aitport -Butler Field Maintenance Operations 1400 Adams St SE Hutchinson, MN 55350 Phone (320) 234-4219 Fax (320) 234-6971 I write you on behalf of the Hutchinson Airport Advisory Commission (HCD) and Dave Skaaz, Chairman. At our September 5 meeting, the Commission directed me to solicit your support on an issue of import to aviation in Hutchinson. The Airport Commission is seeking your assistance in working with the Attorney General's office to expedite an agreement between Ridgewater College (MIQSCIn and Midwest Wireless that would allow construction of a cellular telephone tower on [he City's water tower, which sits on land leased to the City by Ridgewater College. On August 21, 2002 the City of Hutchinson received a conditional use permit application, filed on behalf of Midwest Wireless by Midwest Real Estate Services, Inc., for erection of a 140 foot monopole towerjust west of the intersection of Denver Ave SW and Market St SW in Hutchinson on Fairgrounds property. The Fairgrounds aze • located just north of the airport. Commission members feel the proposed tower location may interfere with NDB/GPS IFR approaches and `circle-to- land' opemtions on runway 15, HCD. They also feel the tower would pose a potential safety hazard to emergency helicopter travel and to parachuting operations. The reason for the request as stated by the applicant included the following statement: "Midwest Wireless has determined that no other available structure esists within its search ring that would satisfy Midwest Wireless coverage objectives. Therefore, Midwest Wireless is requesting a Conditional Use Permit in order to construct a 140' Tower for wireless communications. One such esisting structure is located in the vicinity (Water Tower). Unfortunately, after one year of effort, Midwest Wireless has been unable to get approval from the underlying property owner (Ridgewater College). As such, fhe orsly option available to Midwest Wireless is to construct a new tower.... " Your help on this maker could eliminate the need for building a 140' tower so close to the airport, hospital, and skydiving operations. I would be happy to answer any question you may have about this situation or direct you to the City staff that has been working on this mattes You may call me at (320) 234-4473, or at (320) 583-8145. Sincerely, John Olson, • Asst. Public Works Director, Airport Mgr. cc: Airport Advisory Commission Planning/Zoning/Building Deparfixnt, City of Hutchinson ~ LaJ3 MINUTES Parks, Recreation & Community Education Advisory Board • September 9, 2002 Members present: Jay Beytieq Rev. Todd Ertsgaazd, Ralph Johnson, Claire Lenz, Bernie Miner, Bruce Petersoq and Mt7ce Schiesl. John McRaith, Sonja Muellerleile, and John Rodeberg were also present. Minutes dated August 1, 2002 were approved by Bernie Miner and seconded by Bruce Peterson OLD BUSINESS Feirgrouuds Update: The next meeting will be on Friday. They are wodang towazds a management agreement instead of a joint powers agreement. The County would own the Fairgrounds, the City would nm it, and the losses would be shared. Summer Program Report: We had more adults coaching this summer, as well as staff John McRaith and Chuck Wedin. T-Ba1lBesebalUSoftball: there were 80 more kids registered than last year. Adult Softball: We didn't lose any teams from last year (70). Most teams are in the C and D divisions. Ideas to improve leagues include: a wood bat league, limit cost of bats, share bats between teams, provide all equipment to teams. Soccer: Kids are in need of a club or school team Outdoor Pool: We had great numbers this summer. Numbers start to drop off in mid-July. HJLB: John worked with them on umpire scheduling, regulaz scheduling, and is also on their Board. Chuck coached their 14-year old traveling team Community Education Budget Report: The School District hasn't closed out their fiscal year. More information will be presented at the October meeting. • NEW BUSINESS Fall Program: Youth numbers have been about the same as last yeaz. One of the popuhu• classes in Comrmmity Education is "Twist on Walls" This fall's swimming lessons filled immediately but are short instructors. One ofthe new programs this fall is a Fantasy Football League for 6-12 grade, Has been slow to start but will give it a shot Hockey Association Contract: The Hockey Association is currently negotiating with the city. Cuaently they contract the East arena for 690 hours. New cooract could include 1,000 hours splitbetweenboth arenas. Some other options include: 517,000 hours through 2008-2009; 470,000 hours with no surttmcr ice; 430,000 hours with 100 hours si,nmrer ice. Crow River Dam (plan shown): John Rodeberg presented the newest plan to apply for the Aquatic Ecosystem Grant, which would give the city $800,000 toward revamping the dam area in the next 2-5 years. This money, along with $300,000 from DNR and $300,000 from the city, would be enough for the $1.4 million project, which wouldmchtde installing a fish ladder where the current Girl Scout Park is located, the north side 5 feet higher, and moving Little Crow northwest ofhis current location Work would need to begin within l8 months from the time the grant is received. This could coincide with MNDot's plan to redo the bridge, installing 5 lanes and running the Luce Litz Trail underneath. With this new park area, the fountain, some schematic lighting, this could becotne a tourist area, as well as making the entire area safer Cor staff and the public. Park & Recreation Budget (handout): This is virtually the same budget as 5 years ago. Health and wage expenses are not included. BOARD MEMBER ITEMS • 1. John Mcltaith: Per Dolf, if anyone has any nominees for potential Park Board members, please contact Dolf or Marlin 2. Ralph: Will PRCE be involved in any changes at the schools if the bond passes (field makeovers, etc.). ~~a~`~ Memo To: Mayor & City Coundl From: Brad Emans, Fire Chief Date: 1114/02 Re: Monthly Council Update The fire department responded to 32 general alarms in Odober. Two of the more interesting ells we responded to was a grain bin fire that held 5500 bushels of corn that needed to be unloaded, and one grain dust explosion at the Fanners Elevator that did minor damage to the grain dryer. This is the break down of those calls: Clty: • Commerdal /Industrial 2 Multi-Family 5 Scholl 2 Carbon Monoxide 3 Hazardous Material 9 Rescue 2 Medical 1 Rural: Rescue 4 Medical 2 Farm 2 Drills I Meetlngs /Other Information: • We conducted a live house bum for our more experienced firefighters, we conducted several level 2 bums We drilled on locate of address and quick attack at that address We drilled on rural tanker operations when we burned the out buildings at the live twm site • We concluded a decontamination demonstration for the hospital board. This was done to show readiness in case of a hazardous material, or bio-terorism inddent. • In the month of Odober we concluded 33 fire prevention/fire safety classes for our children and our senor citizens. In all 899 dozens attended these Gasses. • On a more personal note I was nominated and then eleded president of our regional fire assodation. The regional assodation is made up of 22 fire departments and meets 4 times a year to discuss everything from training issues to new legislation. • ~ ~a~ Hutchinson City Center 111 Havsan S[reet SE Hutchinwn, MN 55350-2522 324587-5151/Fax 324234-0240 RESOLUTION 12060 BE IT' RESOLVED BY THE CITY COUNCIL OF THE CTI'Y OF HUTCHINSON, MINNESOTA: That, the following property be certified as deferred for hardship for senior citizen or disabled person as outlined by state statute, city ordinance, and city resolution 11993. Property description Owner 50' X 242' of Lot 6 N of Elmer G Teleciry Jr S50' X 242' in SW coiner 1373 Jefferson St. SE Section 07-T116N-R29W .50 Acres Hutchinson MN 55350 That, the following assessment roll shall be deferred under the above guidelines: City and County Roll # 5059 Amount $ 3,312.50 2002 PROJECT AND ASSESSMENT Interest rate of 4.38% This special assessment was adopted by the city council this 12's day of September, 2002. Resolution 12060 submitted to the council on this 12"' day of November 2002. Marlin Torgerson Mayor • Attest: Gary D. Plotz City Administrator Pnn[ed nn recycled paper - y~~~r • CITY OF HUTCHINSON RESOLUTION NO. izo6z TRANSFERRING FUNDS FROM THE GENERAL FUND, ECONOMIC LOAN, ENERGY LOAN, TO HUTCHINSON COMMUNITY DEVELOPMENT (EDA) FUND BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT $120,000 is hereby transfierred to Hutchinson Community Development fund (EDA) firom the fiollowing: General Fund $110,000 Economic Loan Fund $5,000 Energy Loan Fund $5,000 THAT this fund transfer is authorized for the fiscal year 2002. • Adopted by the City Council this 12th day of November 2002. Marlin Torgerson Mayor ATTEST: Gary D. Plotz City Administrator • y i.b~a CITY OF HUTCHINSON • RESOLUTION NO. 12063 TRANSFERRING $158,500 FROM SPECIAL ASSESSMENT BOND FUND TO AIRPORT CONSTRIICTION FUND BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT $158,500 is hereby transferred from the Special Assessment Bond Fund to the Airport Construction Fund. Adopted by the City Council this 12th day of November 2002 • ATTEST: Gary D. Plotz City Administrator • Marlin Torgerson Mayor y~~3 • CITY OF HUTCHIN3ON RESOLUTION NO. 12064 TRAN3FERRINCi $170,000 FROM CAPATIAL PROJECTS FUND TO AIRPORT CON3TRIICTION FUND BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT $170,000 is hereby transferred from the Capital Fund to the Airport Construction Fund. THAT this transfer shall be as authorized by the Capital Fund Budget for the budget years 1999 and 2000. Adopted by the City Council this 12th day of November 2002 n LJ Marlin Torgerson Mayor ATTEST: Gary D. Plotz City Administrator y~b~~~ • RESOLUTION NO. 12065 RESOLUTION RELATING TO FINANCING OF CERTAIN PROPOSED EXPENDITURES RELATING TO A NATURAL GAS PIPELINE TO BE CONSTRUCTED BY THE HUTCHINSON UTILITIES COMMISSION; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE IIVTERNAL REVENUE CODE BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota (the "City"), as follows: 1. Recitals. (a) The United States Department of Treasury has promulgated final regulations governing the use of proceeds oftax-exempt bonds, all or a portion of which are to be used to reimburse the City for project expenditures paid by the City prior to the date of issuance of such bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the "Regulations") require that the City adopt a statement of official intent to reimburse an original expenditure not later than 60 days after payment of the original expenditure. (b) The City desires to comply with requirements of the Regulations with respect • to expenditures to be made for an 89-mile natural gas pipeline to run from Hutchinson to Trimont, Minnesota, which is to be constructed by the Hutchinson Utilities Commission (the "Project"). The present estimated cost of the Project is $ and it is proposed that all or a portion of the costs of the Project be financed with bonds to be issued by the City (the "Bonds"). 2. Official Intent Declaration. The City proposes to make payments from funds of the City to fund certain costs of the Project to be paid prior to the issuance of the Bonds. The City reasonably expects to reimburse such expenditure out of the proceeds of the Bonds after the date the payment of such expenditure is made by the City. 3. Budgetary Matters. As of the date hereof, there aze no City funds reserved, allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long-term basis or otherwise set aside) to provide permanent financing for the payment of costs of the Project, other than pursuant to the issuance of the Bonds. The statement of intent contained in this resolution, therefore, is determined to be consistent with the City's budgetary and fmancial circumstances as they exist or aze reasonably foreseeable on the date hereof. Adopted this day of , 2002• • ~~b~ • RESOLUTION NO. 12066 RESOLUTION RELATING TO FINANCING OF CERTAIN PROPOSED EXPENDITURES RELATING TO IIviPROVEMENTS TO HUTCHINSON COMMUNITY HOSPITAL; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE BE IT RESOLVED by the City Counci] of the City of Hutchinson, Minnesota (the "City"), as follows: 1. Recitals. (a) The United States Department of Treasury has promulgated final regulations governing the use of proceeds oftax-exempt bonds, all or a portion of which aze to be used to reimburse the City for project expenditures paid by the City prior to the date of issuance of such bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the "Regulations") require that the City adopt a statement of official intent to reimburse an original expenditure not later than 60 days after payment of the original expenditure. (b) The City desires to comply with requirements of the Regulations with respect • to expenditures to be made for expansion to and the acquisition and installation of equipment in Hutchinson Community Hospital (the "Project"). The voters of the City of Hutchinson have approved the issuance of genera] obligation bonds of the City in an amount not to exceed $10,000,000 to finance the Project (the "Bonds"). 2. Official Intent Declaration. The City proposes to make payments from funds of the City to fund certain costs of the Project to be paid prior to the issuance of the Bonds. The City reasonably expects to reimburse such expenditure out of the proceeds of the Bonds after the date the payment of such expenditure is made by the City. 3. Budgetary Matters. As of the date hereof, there are no City funds reserved, allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on along-term basis or otherwise set aside) to provide permanent financing for the payment of costs of the Project, other than pursuant to the issuance of the Bonds. The statement of intent contained in this resolution, therefore, is determined to be consistent with the City's budgetary and financial circumstances as they exist or are reasonably foreseeable on the date hereof. Adopted this day of , 2002. n LJ y~~~ RESOLUTION N0. 12067 CITY OF HUTCHINSON RESOLUTION FOR PURCHASE The Hutchinson City Council authorizes the purchase of the following: ITEM COST PURPOSE DEPT. BUDGET VENDOR 5000 Pallets 19,500 Shipping product Compos Yes orthland Pallets The following items were authorized due to an emergency need: ITEM I COST I PURPOSE I DEPT. I BUDGET I VENDOR Date Approved: • Motion made by: Seconded by: _ Resolution submitted for Council action by: Ken Merrill Finance Director ~~ ~,~ RESOLUTION N0. 12067 CITY OF HUTCHINSON RESOLUTION FOR PURCHASE • The Hutchinson City Council authorizes the purchase of the following: ITEM COST PURPOSE DEPT. BUDGET VENDOR 5000 Pallets Compost Bags 19,500 30,888 Shipping product Bags for customer compost Compos Compost Yes Yes orthland Pallets Recyclaholica ~ The following items were authorized due to an emergency need: ITEM COST PURPOSE ~ DEPT. ~ BUDGET ~ VENDOR Date Approved: Motion made by: Seconded by: Resolution submitted for Council action by: Ken Merrill Finance Director Revised 4(b)7 PUBLICATION NO. ORDINANCE NO. 02-323 ORDINANCE ANNEXING 41.3 ACRES OF PROPERTY IN HASSAN VALLEY TOWNSHIP MINNESOTA STATUTES 414.033, SUBDIVISION 2(1) AND 2(3) WHEREAS, the City of Hutchinson considered a petition for annexation as submitted by Hutchinson Land Holdings LLC, property owners; WHEREAS, the property owners wish to annex the property forthe purposes of residential development; WHEREAS, the City of Hutchinson will work with the developers to provide services to the property; WHEREAS, the property is legally described as: Beginning at a point marked by an iron pipe 778.6 feet North of the South line of Section 7, Township 116 Range 29 and 1376.2 East of the West line of the East half of the Southwest Quarter of said Section 7; thence North 920.7 feet to a point marked by an iron pipe, which is 1376.2 feet East of a stone monument on the West line of the East Half of the Southwest Quarter of said Section 7; thence, East parallel to the South line of said Section 7 and on a line with the aforesaid monument and a stone monument on the East line of said Section 7, 1948 feet to center of the Hutchinson and Glencoe road, which point is 568.5 feet west of the stone monument aforesaid on the East line of said Section 7; thence, Southeasterly along the center line of Hutchinson and Glencoe road to a point on the center line of the aforesaid road, which is 778.6 feet North of the South line of said Section 7; thence, West parallel to the South line of said Section 7, 2377.1feet to point of beginning all lying in the Southeast Quarter of Section 7 Township 116 Range 29, McLeod County, Minnesota. EXCEPTING THEREFROM, Parcel 2 of CITY OF HUTCHINSON STREET RIGHT OF WAY PLAT NO. 7 in Lot 13, AUDITORS PLAT OF SECTION 7, Township 116 North Range 29 West, according to the map on file and of record in the office of the County Recorder, McLeod County, Minnesota. r~ L Ordinance No 02-323 Page 1 November 12, 2002 y ~b~g • EFFECTIVE DATE OF ORDINANCE. This ordinance shall take effect upon is adoption and publication. Adopted by the City Council this 12"' day of November, 2002 Attest: Gary D. Plotz Marlin Torgerson, Mayor Ordinance No 02-323 • Page 2 November 12, 2002 ~~~g PUBLICATION NO. ORDINANCE NO. 02-324 AN ORDINANCE AMENDING THE OFFICLAL ZONING MAP OF THE CITY OF HUTCHINSON FOR A PROPERTY TO BE REZONED FROM R-1 TO C2 THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS: WHEREAS, the following described real property is hereby rezoned from Rl (Low Density Residential) to C2 (Automotive Service Commercial) as requested by property owner: LEGAL DESCRIPTION: The East 361.50 feet of the North 361.50 feet of the Northwest quarter of the Northeast 1/4 , Section 11, Township 116, Range 30 WHEREAS, the City Planning Commission and City Council have considered the effects of rezoning this piece of property, WHEREAS, there are certain parameters that will make this rezoning appropriate for this azea; • THEREFORE; the City hereby officially rezones this property to C2 and it shall take effect upon publication of this ordinance; Adopted by the City Council this 12th day of November 2002. ATTEST: Gary D. Plotz City Administrator • Marlin D. Torgerson Mayor y~~~~ • DATE: October 15, 2002 Hutchinson City Center 111 Hawn Strtet SE HutchWon, MN 55350.2522 320.587.5151/Fu 320.234-42d0 MEMORANDUM TO: Hutchinson City Council FROM: Hutchinson Planning Commnission SUBJECT: CONSIDERATION OF REZONING OF PROPERTY LOCATED AT 1470 SOUTH GRADE RD REQUESTED BY L&P SUPPLY FROM R-1 TO C-2 Pursuant to Section 6.05 of Zoning Ordinance, Chapter 11, Hutchinson City Code, the Hutchinson Planning Coffinission is hereby submitting its findings of fact and recommendation with respect to the aforementioned request for rezoning. HIST RY On September 17, 2002 B & B Properties, property owners, applied for rezoning of property located at 1470 South Grade RD SW from R-1 to C-2. The property is the L&P Supply business and was annexed to the City in April, 2002. FINDINGS OF FACT 1. The required application was submitted and the appropriate fee paid. 2. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on October 3, 2000. 3. A public hearing was held a[ which there were no neighbors objecting to the request 4. The property adjoins county property zoned ag. RF('OMMENDATION The Planning Commission nnanimnusly voted to approve the rezoning with the following requirements: 1. Remove the second access on the property. (See Engineering comments from January of 2001) 2. The business must apply for a Conditional Use Permit with complete site plan indicating areas of outdoor display, screening proposals, landscaping, etc. 3. A permit is required for the sign. The application must include drawing of the proposed signage and placement of the sign on the property. The permit would not be issued until the conditional use permit process is completed. Respectfully submitted, William Arndt, Chairman Hutchinson Planning Cortnnission • cc: B&B Properties, 1470 South Grade Rd John Bnudchorst, McLeod County Engineer Primed on rtcycled paper - \ 1 ~Jq 1'aal~li+~.~inil ~T+.r. ~i78" 1'U'I3Li5tiL~ T1~1 I,~IC.JTE11~1~~fi`~1 L11ti,, ~1"htars~3~y, CJ~tsabc~r 3, J~~ +~~~ ~~" ~">v~bti~ ~~~irin ~~"T~1'""~ ~'1k" i1~l~~C'~1~~(~1~ C~uU~T~° ~~~~ 1~1c~Lr~. ~~ry~`T ~~~~~ ~`~l~~l~~ 11.1 l~~ssara ~tr~:c:t, 1~ut~;laai~s~ra 1'~N 55 ~Sl~a~a~ (~ X87-11, exp. ~~ ter :1) fix (4~ ~14~1 1~1'catic~ is ~r~l~y "~~~ ~~` 1-l~atawh~ra~n-,n Pla~at~irr ~;~t~arrai~~i~r~ gill laaW 1-acalalir~t ~a aaaar~~aaa aa~a t1Y ~'a~aaracil ~`hb~rw~, t+~;ity I~~11 aura ~u~s~~ U~.,~_?l~t~r 1 ~, ~Q'0 rat : ~+~',~.rn. 1"artl~~ ur~,c,,~:s a~fl~~alai7:f~ uL~~icha~arrira,~ r~~._,r~3i ,<_ :rr7 ~171i~a~at~n fr~rri ,~ .~` F roprrties„ prcr~r~rt~a owner, 147Q'~'a~r!!r G'r~rdr Rd S", pare rec,~~r~stin,~ car rezvwa~~h~ L r~'c 1'ur~r~alJvpra,~~^rr~~ ~"rr~ra~ ~.1 d~ [;°.Z ~":1 c~~a~nzoti~re S~..r-~r"~e ~"a.ma~err~i~rCJ f~rv~ t0~pjnerrpro:~~ ~rf tnst~a~FPn cr~ft~~st~~t~i~r~ sc~~ ~+~ [~ear~ar,~p~rt. °"law fc~llcr~var~ is a asap ta.t icla~,~'1t.ilic~~ flaw lac~~i~ara a~f~t~ property: .ill p~~~°s~n ~;ra~hira to e e~r~~ ~°~~ s,~tr~ira~ t~a~i~~ 4,~ 1.:-..~ ~ k~ ~,-l,a 1„ ;:_~,~, ~ ~"~~is rfl~ e ~~ rar prr~v~e wri~t~~r, aotnrrae~at~ rte later ::~ ~ p.rxa. ~,ra `1 u~;~~i,r, +~eta~laer 1 ~1~~. 1'"ls araa~ rr~teril~ e vatlal~la~ t tli~- ~: ~~, off cep fir rev~ier~,, ~~' apprtiratraaexa~..~1 c~>n11~Cet~ a~c;nda~ t~~°te l~laxaraira~ ~~rnrra.~~~~rr rt~eetirag i~ a ?~~, availa~51~ t1~ae ~C"ty glees. ifyou l~a~ .•, Cl~~~:;..ti~~ra,s ~~~~: i t~~e pz~capcta~, ya~.- a~a~a~a c~rntc;t tl'r~ l'lanraiaa ~e~"la7tr;ent ~i ~ the: rrul~r pra~~aie. ,~ .,~ ,,. ,. ~~~ ~ ~l e_.. 1'~~ L~1T1iC, mms~s ~1 ~Jirect~ar ~l` 1'~~in, Zt~rrira azaal aralicliri, mate DATE: Friday, October 11, 2002 McLEOD COUNTY ~EC~N^D ~~T ~ `f HIGHWAY DEPARTMENT ,,~Z c;~ orti~ MEMORANDUM APL ofP~i ~esOn TO: Julie Wischnack, City of Hutchinson Planning Director CC: John Rodeberg, Hutchinson City Engineer FROM: John T. Brunkhorst, P.E. County Engineer SUBJECT: Rezoning of L 8~ P Supply Property I have received the agenda for the next Hutchinson Planning Commission meeting on October 15, 2002. I understand that there is a request to rezone the L ~ P Supply property along County Road 82 (South Grade Road) from Residential to Commercial. I have a safety concern regarding the number of entrances/access points onto CR 82 from this property. This property is located on the crest of a hill. There are currently numerous entrances along this property accessing CR 82. There is limited sight distance for approaching traffic to see vehicles entering and exiting L & P supply using some of these entrances. It is the Histhwav Deaartments recommendation that access into or out of L & P Supply should be handled with one entrance on the top of the hill. If you allow this property to be rezoned; a new access permit should be applied for from the McLeod County Highway Department. This is not the first time this issue has been brought up. I have attached correspondence from 1983 regarding this same subject and location. If you have any questions please feel free to contact our office. Thank you. ~-I ~bJ~ 10.11-02_L & P Entrances_memo.doc ~U _ ~ _. ^~ ~~~ ---i '.r _ ~ _ ~ M~LEOD COUNTY HIGHWAY DEPARTMENT Wy' i tr - r, .-rT'~ q m August 30, 1983 Mr. Edwin E. Homan McLeod County Zoning Administrator McLeod County Court House Glencoe, MN 55336 Re: Special Use Permit No, 1-78 Dear Mr. Homan: Your letter dated June 29, 1983, to Mr. Orion Lokensgard and copied to me regarding the re-evaluation of access to L & P Supply Company along County Road 83 has been reviewed with Mr. Lokensgard on several occassions during the past few weeks. In reviewing previous decisions of McLeod County, it is my understanding and my comment to Mr. Lokensgard that access and egress to the L & P Supply Company was to be limited to the one driveway immediately to the west of Mr. Lokensgard's house. • With a small shop business apparently expanding into a larger business, the available space for vehicle parking and movement has been insufficient. It is my understanding that expansion of the parking and driving area with the expansion of the business has been an item of disussion from earliest consideration of permitting the L ~ P Supply Company to locate on Mr. Lokensgard's property. To date, I am not aware of any plans to proceed with the expansion of the parking and driving area. If McLeod County does wish to help the L S P Supply Company reduce the congestion in its parking area, the plan by Mr. Lokensgard to utilize the driveway to the west of his home as an "entrance only" and the driveway to the east of his home as an "exit only" would provide an improved parking and driving pattern for L 6 P, in my opinion. However, the contrary is true for McLeod County. The county would be permitting the increased use of a driveway located within a marked "no passing zone". This would be in conflict with the county's objective of not adding traffic to a driveway located in a "no passing zone" when the land use of the area is changed and other alteratives for off road parking and vehicular. circulation are possible. The proposal to use the east driveway only for exi tang the Lokensgard property does eliminate the least visible traffic movement along C.R. 82. That movement would be the west bound vehicle crossing the east bound lane into the east driveway. Visibility from the east driveway would be reasonably good even though a portion of the east bound vehicle would not be visible in the sag of the road to the west. The driver of the vehicle approaching from the west would also lose sight of a portion of the exi ting car as the driveway was approached. P.O. Box 23fi Glencoe, MN 55336 (612J 864-5553 An Equal Opportunity Employer a ~~~q Mr. Edwin E. Homan -2- August 30, 1983 • The development of a one-way traffic pattern utilizing the east driveway as the exit from the L & P Company is not the best solution to the problem. However, the very limited space provided by L & P Supply Company for vehicle parking is placing the customers of L S P and the people traveling C.R. 82 in a.higher risk situation as the parking congestion becomes worse. This higher risk situation is caused by the observed tendency of the customers to back onto C.R. 82 from the parking area when leaving L 6 P Supply. The preferred solution to the customer parking problems at L 6 P Supply is the construction of an enlarged parking area where ingress and egress using the one driveway can be made with ease. McLeod County may wish to grant permission to use the east driveway as an "exit only" as an interim improve- ment. In giving such permission, the sight distance restrictions at the east driveway should not be overlooked. Also, the implementation of an entrance-exit driveway arrangement should be clearly signed for proper useage. If you wish to discuss-this matter with me in more detail, please contact me at your con4enience. Sincerely, Roger M. Gustafson, P.E. County Highway Engineer- • st cc: McLeod County Commissioners Loran Lokensgard • ~~h~~ C • Hutchinson City Center ulas~nscralse HIdCEim00, MN SSSSO-2STL 320.587-5151/Fsx 320.234-0140 M E M O R A N D U M TO: Julie Wischnack, AICP -Director of PlanningBuilding FROM: John P. Rodeberg, Director of Engineering/Public Works RE: L & P Supply Company DATE: January 16, 2001 We have reviewed the safety of the multiple accesses to the highway at this location several times. Some accesses are located on either side of the hill, creating significant sight distance and safety concerns. We also predict a continued significant increase in traffic on this route as residential development continues to grow dramatically in the • area. This route is in a 55-mph zone, although much of the traffic often moves slower due to the roadway and entrance characteristics. We hope to continue to maintain a higher speed limit on this route in the future, and any improvements to the roadway would be based on maintaining a higher speed limit (no less than 45-mph). Based on these issues, we strongly encourage and recommend that the accesses be redesigned and located to facilitate a higher level of safety.We would recommend consolidating the accesses into one large access directly at the top of the hill with potentially a second, gated access at a point as faz west as is practical (away from the peak of the hill). Please note that we are also planning on signing the highway for "No Parking" to avoid safety concerns about pedestrian traffic on the highway. It is assumed that current on-site parking will be verified as being adequate. Cc: Richazd Kjonaas, County Engineer • Primed on rtcKkd paper- , `~\ Q 1..~~w~ ~ 114.~~.1~w. ~wJ~Y\ ~~LAN~:'I~j ~1 ~~.~~J~" 1V....~~1 ~'ra,r ~ +n „r ~-.a«..r« w....~~sm~+~,vr...r+.o.:~.w a .,...~ .. _. ~ . _ .. .,r r ..w~,rm..x~rm x- d, . ~ .., . ~, _.. a~iw-. a . -.. ~.d .,,x. a,..,w,...,.x--.M ,.M......A~..r ~f~ Ta; ~Itc~~~~s~~i Plar~r~~~- ~~rr~r~~issi~rt x~p~~~ ~I;~.~i~ t~` ~r~c rr~an~, pcyl~` illc~t~n, a 'iel~~~, Lrsa ~~~~r~r~ J~ar~ ~~t~~, J+~l~u Ft~~;1~br~, 1P.~., J~a~~ "V"~~~~~i~r, r~eaha~ C.}I~sa~, ].~~~~ ~~:tl~d~~ B3r~r +~:~r~v~, I"-'Ia~°k chnt~~rm~~a, i.arc l~or~, ar Plc~l,. +~~ ~~~-mill, .~i~~t ~pp~ t~r~ ~c~~v, I~i~c N~~~'~ Ju~~ ~v'V~~cl~~~ack, ~:~C~p', an~1 :F3ta~naai+~ ~~u~~~ :~: ~t~mb~r ~, X42 _ Me~~~r~g date. ~+~~~~ber ~, ~! A~a~rl~~rt: ~racl andl' ~~r~a~ L"~k+~n~ard ~~~~ ~''rupert~e r~-pe~tr~ t~rw~ue~- ~1~ l~rie~' I~escrp~t~n "'~~~e a~aplic~t~ ire r~quesi~c~,g ~c~ ~-~~n~ the ~.c~ ~'~rly rae~y '~zta ~.~i' (~r~1~ ~ ~tnil ~~id~:n~e) ~~ ~- (~.~t~~~tiv~ e~rvic ~;c~z~zxerc~~~~. "l"k-~e x~a~~rty !a .nr~~~ed inl{~ il~c~ ~:..i ,rii, 4~. "lira 1~~"~~e is ara~~~c~ t~ the ~ it c~cs ip~ as -1. e ~.~siz~es ex~~~~i ~aric~r ls~ tlr~ ~r~a~ex~liti~a~. `l"ae a~rplicaaats l~av~ ~;ra~~rxmit~ ~ ~i~ra ~erra~~~ fear tl~~ t~usarrss,, which n~a~e~sit~tc~s ih r~;~araiaa. J... ,_ r: `~' • Rezoning Request L&P Supply Planning Commission -October 15, 2002 Page 2 GENERAL INFORMATION • Existing Zoning: R-1 Property Location: 1470 South Grade Rd. S.W. Lot Size: 3 acres Existing Land Use: Commercial Adjacent Land Use And Zoning: Residential and Agricultural Comprehensive Land Use Plan: Mixed use residential Zoning 13istory: The property was zoned agricultural until annexed to the city in April of 2002. All newly annexed properties are zoned R-1 (Single Family Residence) There was a need for city sewer service necessitating the annexation. Applicable Regulations: Section 6.05 Rezonings SPECIAL INFORMATION Transportation: Access to the property is off South Grade Rd. Parking: Warehouse 1 space per 2000 sq. ft. Retail business 5.5 spaces. Per 1000 sq. f.t. Analysis and Recommendation: This situation is difficult in that this has been a very long standing business in this area. The long range comprehensive plan considers this to be a good place for some type of mixed use residential in and around which will eventually become the new high school. While staff is understanding of the rezoning request, there aze major concerns about the existing business. The following aze concerns: 1. Remove the second access on the property. (See Engineering comments from January of 2001) • The business must apply for a Conditional Use Permit with complete site plan indicating azeas of outdoor display, screening proposals, landscaping, etc. 3. A permit is required for the sign. The application must include drawing of the proposed signage and placement of the sign on the yL~hJ9 Rezoning Request L&P Supply Planning Commission -October 15, 2002 Page 3 property. The permit would not be issued until the conditional use permit process is completed. Staff' would be prepared to recommend approval of the rezoning request, if the previous items aze considered and addressed for the November Planning Commission meeting. Cc: B&B Properties, 1470 South Grade Rd. or email at lpsupply@hutchteLnet John Brunkhorst, McLeod County Engineer • y Lb~9 CHANGE ORDER NO. 1 (Revised) CITY OF HUTCHINSON -ENGINEERING DEPARTMENT 111 HASSAN ST SE, HUTCHINSON MN 55350 (612) 234-4209 sl,«t 1 of 1 NTRACTOR: Dulninck Bros Inc Letting No. 3 Project No. 02-06 408 6th St, P O Box 208, Prlnsbur MN 56281-0208 Project Location: Juul Road SW DESCRIPTION OF CHANGE: Replacement of existing catch basin leads. Dated: 1012112002 Item No. Spec. Ref. Item Name Unit Quanti Unit Price Amount INCREASE ITEMS 2502 12" PVC PIPE SEWER SDR35 (Inc. Removal) LIN FT 50 $20.55 $1,027.50 P 8 O 10% $102.75 $102.75 NET INCREASE -----------------------°--------------- 51,130.25 In accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of 51,130.25 add)1(dedus~t)r An extension of -0- days shall be allowed for completion. The original completion date shall not He than ed. ORIGINAL CONTRACT AMOUNT PREVIOUS ADDI110NS1DEDUCTIONS THIS ADDITION/DEDUCTION TOTAL 5507,571.90 E0.00 51,130.25 5508,702.15 PROVED: Contractor DATED: APPROVED: Mayor DATED: PPROVED: Director of Engineering DATED: APPROVED: City Administrator DATED: • ~C~ CHANGE ORDER NO. 1 CITY OF HUTCHINSON -ENGINEERING DEPARTMENT 111 HASSAN ST SE, HUTCHINSON MN 55350 (612) 234-4209 snee~+o++ NTRACTOR: Schoe 8 Sons Contracting, LLC Letting No. 4 & 5 Project No. 02-12 345 Wilkins St, Montevideo MN 56265 Project Location: Ninth Ave NE DESCRIPTION OF CHANGE: 1) Lower 4" watermain in-grade with storm sewer. 2) Raise and insulate 6" watermain in-grade with storm sewer. 3) Insulate services at storm Dated: 11/0712002 sewer crossings. Item No. Spec. Ref. Item Name Unlt Quanti Unit Price Amount INCREASE rfEMS 2504 Lower 4" Watermain Lump Sum 1 51,158.72 $1,158.72 2504 2504 Raise and Insulate 6"Watermain (Inc. 4" Insulation) 2" Pol ene Insulation Service Lum Sum Sheet 1 12 $964.00 $42.00 $964.00 $504.00 --.____--_ 52,626.72 NET INCREASE -----•------------------•-------•---•-- In accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of 52,626.72 dd)/(ded~wtjr An extension of -0- days shall be allowed for completion. The original completion date shall not be changed. ORIGINAL CONTRACT PREVIOUS THIS TOTAL AMOUNT ADDITIONSIDEDUCTIONS ADDITIONIDEDUCTION 5482,396.90 50.00 APPROVED: Contractor DATED: PROVED: Director of Engineering DATED: 52,628.72 5486,023.62 APPROVED: Mayor DATED: APPROVED: City Administrator DATED: y~~ • CITY OF HUTCHINSON MEMO Finance Department November 7, 2002 TO: MAYOR & CITY COUNCIL FROM: KEN MSRRILL, FINANCE DIRECTOR SUBJECT: HiTi'CHINSON AREA CONVENTION ~ VISITOR BUREAU (HCVB) BUDf3SP Attached is the 2002 Hutchinson Area Convention & Visitor Bureau Budget for 2003. By Ordinance "the annual budget is to be presented to the council for its approval shall be approved or disapproved in total" (ordinance 6.90 subd 14 d) • The Financial Review Statement of HCVB for 2001 has an unrestricted net asset balance of $120,527 of which $4,183 is equipment. The action would be to approve the budget as presented H:\DOC\City count it memo l.doc • ~ L~~ . Expenses: General i Admtrlhtrdlve 2002 5udyet Aciud 2009 budpst consunirgservice $e,16o.00 $a,t6o.oo Se,4oo.Do Equipment $800.00 52038.00 5300.00 Meeting 8 Board Refreai 50.00 5150.00 5100.00 Marketing Wage 527.000.00 $27.000.00 529.000.00 Payroll Tax&Expense 52116.00 52176.00 52400.00 401 K 5810.00 3870.00 5810.00 Accounting 57.000.00 $1,200.00 51.200.00 OtTice Suppfes 51.200.00 5750.00 3800.00 Postage 52000.00 51,500.00 51.200.00 Telephone/Cel 51,200.00 52000.00 51,200.00 Depredation 51,200.00 51.200.00 5500.00 Health Insurance 5790-QD- 546,956.00 Sl~~- $45,424.00 ~~~- $47,770.00 Corlferewce i TravM State Conference 3600.00 5550.00 5500.00 SMTA Meetings 5600.00 5550.00 $'~'~ Misc Meetigs 30.00 51.000.00 $9QQ.9Q 51.0.00 52,100.00 57.100.00 VlsSon Markeing Media Adv. IN SMie 39.000.00 38.540.00 35,650.00 Media Adv. Out Of State 36,758.00 57,456.00 58,78200 Ad 8. Marketng Agency SO.OD 50.00 55,000.00 Intemet X3,000.00 32,900.00. 5540.00 Printing-Commerical 5750A0 3400.00 5500.00 Printing-In house 3500.00 5250.00 S5~'~ YlsBors &ouchersN & L 580000 5500.00 ~44.9SL • 525,ea5-oo 520,046.00 521,4nao Grow Maketing Welcome Materials 5600.00 5267.00 51.000.00 &ouchers/Mailers 37,000.00 512200 5750.00 Travel Stows 51,400.00 51,375.00 5600.00 Bid Packets i Promotion SZ.Z9p.0fL S2LQ-.flO- ;E1-~4.41Z' 55,700.00 59.564.00 53,550.00 Ileloted AaoclaMoru Donations 5400.00 5400.00 5600.00 Dues ~ 5600.00 5600.00 COQ 51,000.00 51.000.00 51,000.00 VI- Morkel6g VIP Marketing 5400.00 5405.00 57,500.00 Local Marketing 560000 5500.00 31.000.00 51.000.00 5905.00 52.500.00 Tdd des 576.694.00 576,939.00 577.692.00 Revenue: Fs5rna6ad Acted 2009 6t. Revenue . Lodging Tax 559,000.00 558,000.00 559,000.00 MOT ParfiershQ 52534A0 52534.00 53.526.00 c~ am m Interest Income X3.9451.42 e~ ~a pp Totd Income 564.534.00 569,566.00 564,526.00 pIFFE~NCE (512.160.001 !51247100) ($J2.506.001 • y~e~ • C Hutchinson City Center 111 Hasmn Street SE Hn[cLioson, MN 55350.2522 320-587-5151/Fex 320.234-0240 ~ x_ TO: Mayor and City Council FROM: John P. Rodeberg, Duector of Engineering/Public Works RE: Approval of Acquiring Right-of--Way for Golf Course Road Pazcel 2 of City of Hutchinson Right-of--Way Play No. 5 NaustdallSorenson Property DATE: 11/7/2002 We have been discussing the acquisition of the above noted right-of--way for several years. Discussion has centered on how much of the right-of--way should be dedicated to the City of Hutchinson at no cost aspart ofthe development/platting process, and how much should be paid for as an additional taking. This route has significantly more width than normal due to the topography and type of road proposed. We are proposing to only compensate for added dedication. • Since the sale of the property to Bruce Naustdal and his partners, we have negotiated a price based on appraised values for the land in question above what normally would be dedicated. We aze proposing to have the owner/developer dedicate 1.81 acres of land, and we are compensating for the other 1.82 acres. The calculations are based on the following: Commercial Property: 8,100 SF @ $3.00/SF = $24,300 Residential Property' 1 426 acres (cry $13 600/acre = $19,400 TOTAL ACQUISITION $43,700 The original appraisals were completed in 1999 by Robinson Appraisal of Mankato, and updated in 2002 by Hacker Appraisals of Hutchinson. The funding will come out of the County Turnback fund that we established for this project with County Highway funds. We recommend approving the acquisition of the described right-of--way (Pazcel 2 of City of Hutchinson Right-of--Way Play No. 5). Printed on recyckd paper - ~ (~\ !~ Memorandum TO: Mayor and City FROM: Brenda K. RE: Flexible Benefit Resolution No. 1 DATE: November 6, 2002 of Human Resources Document and Plan Summary Document Restatement Attached are the City of Hutchinson Flexible Benefit Plan Document and the Flexible Benefit Plan Summary Description. These documents aze proposed to be restated or amended to incorporate the following changes: 1. City staff is recommending that the maximum reimbursement for the health care reimbursement account be increased from $3,000 to $3,500, effective January 1, 2003. 2. Amend the language regazding the dependent caze tax credit figures to reflect current law. It is requested that you consider these requests and approve the restatement of the above plans as described in Resolution No. 12068. Please contact me if you have any questions. Thank you. Encl. ~l~ • RESOLUTION NO. 12068 RESOLUTION TO AMEND THE CITY OF HUTCHINSON FLEXIBLE BENEFTT PLAN SUMMARY PLAN DESCRIPTION EFFECTIVE JANUARY 1, 2003 • • WHEREAS, the City of Hutchinson desires to offer its employees a flexible benefit program providing for reimbursement of medical expenses and dependent care expenses, and payment of employees' insurance premiums, and a plan entitled the City of Hutchinson Flexible Benefit Plan has been prepared and submitted to the City Council with a recommendation for adoption; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hutchinson amends its current Plan entitled of Hutchinson Flexible Benefit Plan by adopting in whole the City of Hutchinson Flexible Benefit Plan bearing an effective date of January 1, 2003, and directs management to implement the Plan in accordance with its terms. Adopted by the Council this 12a' Day of November, 2002. Mazlin Torgerson, Mayor ATTEST: Gary D. Plotz, City Administrator `-i~~ n ~J FLEXIBLE BENEFIT PLAN DOCUMENT C~ C~ 3/]2001 v3 y ~~ TABLE OF CONTENTS • ............................1 ARTICLE I: INTRODUCTION ......................................................... ................ Section 1.1 Purpose ................................................................ ............................................1 Section 1.2 Rules of Construction .......................................... ............................................1 ARTICLE II: DEFINITIONS ............................................................. ............................................1 Section 2.1 Code ..................................................................... ............................................1 Section 2 2 Compensation ...................................................... ............................................1 Section 2.3 Dependent ............................................................ ............................................1 Section 2 4 Dependent Care Account ..................................... ............................................1 Section 2 5 Dependent Care Expense ..................................... ............................................1 Section 2.6 Effective Date ...................................................... ............................................2 Section 2.7 Election ................................................................ ............................................2 Section 2.8 Emp]over .............................................................. ............................................2 Section 2.9 FMLA Leave ....................................................... ............................................2 Section 2.10 Gainfully Emploved ........................................... ............................................2 Section 2.11 Health Care Account .......................................... ............................................2 Section 2 12 Health Expense .................................................. ............................................2 • Section 2 13 Hiehly Compensated Emplovee ........................ ............................................3 Section 2 14 Highly Compensated Individual ........................ ............................................3 Section 2 15 Key Employee ................................................... ...:........................................3 Section 2 16 Optional Benefits ............................................... ............................................3 Section 2 17 Par[icipant .......................................................... ............................................3 Section 2 18 Period of Covera2e ........................................... .............................................3 Section 2.19 Plan ................................................................... .............................................4 Section 2.20 Plan Administrator ............................................ .............................................4 Section 2.21 Plan Year .......................................................... .............................................4 Section 2 22 Qualified Benefit ...:.......................................... .............................................4 Section 2 23 Qualified Employee .......................................... .............................................4 Section 2 24 Oualifyine Dependent ....................................... ........................................ 4 Section 2 25 Summary Pages ................................................ .........................:...................5 Section 2.26 Student .............................................................. .............................................5 Section 2.27 USERRA Leave ................................................ .............................................5 ARTICLE III: ELIGIBILITY AND PARTICIPATION ................... .............................................5 Section 3.1 EliAibility ............................................................ .............................................5 3/IROOl v3 ~l~ Section 3.2 Commencement ofParticipation .....................................................................5 Section 3.3 Section 3.4 Ternnation of Participation ................................ Participation during Unpaid Leave ...................... ............................................6 ............................................6 Section 3.5 Continuation of CoveraQe ................................................................................7 ARTICLE N: CONTRIBUTIONS ..................................... ...........................................................7 Section 4.1 Salary Reduction Contributions ............ ...........................................................7 Section 4.2 Benefit Credits ...................................... ...........................................................8 Section 4.3 Maximum Contribution ........................ ...........................................................8 ARTICLE V: BENEFTI'S .................................................... ...........................................................8 Section 5.1 Benefit Ogtions ......................:.............. ...........................................................8 Section 5.2 Benefit Descriptions ............................. ...........................................................8 Section 5.3 Limitation of Benefits ........................... ...........................................................8 Section 5.4 Appeal Procedure ................................... ..........................................................9 Section 5.5 Forfeitures .............................................. ..........................................................9 ARTICLE VI: ELECTION PROCEDURES ........................ ..........................................................9 Section 6.1 Election Form and Timin~ ..................... ..........................................................9 Section 6.2 Elections Irrevocable ......:...................... ........................................................10 Section 6.3 Failure to Elect ....................................... ........................................................13 Section 6.4 Automatic Termination of Election ....... ........................................................13 Section 6.5 Requalifying Employees ........................ ........................................................13 ARTICLE VII: PREMNM CONVERSION ....................... ........................................................13 Section 7.1 Applicabiliri of this Article ................... ....................................:...................13 Section 7.2 Premium Conversion ............................. ........................................................13 ARTICLE VIII: HEALTH CARE REIMBURSEMENT ...... ........................................................14 Section 8.1 Applicability of this Article ................... ........................................................14 Section 8.2 Purpose .................................................. ........................................................14 Section 8.3 Health Care Account ............................... .......................................................14 Section 8.4 Claims for Reimbursement ............................................................................14 Section 8.5 Reimbursement of Expense ..................... .......................................................15 Section 8.6 Maximum Reimbursement ..................... .......................................................1 S Section 8.7 Revocation of Election ........................... .......................................................15 ARTICLE IX: DEPENDENT CARE REIMBURSEMENT . .......................................................15 Section 9.1 Applicability of this Article .................... .......................................................15 Section 9.2 Purpose ................................................... .......................................................15 Section 9.3 Dependent Care Account ........................ .......................................................16 r1 U 3/12001 v3 ~~ Section 9.4 Claims for Reimbursement ............................. ...............................................16 • Section 9 5 Reimbursement of Exnense ............................ ......................................:........16 Section 9.6 Maximum Reimbursement ............................. ...............................................17 ARTICLE X: ADMINISTRATION ............................................. ................................................17 Section 10.1 Plan Administrator ....................................... ................................................17 Section 10.2 Powers of the Plan Administrator ................ ........:.......................................17 Section 10.3 Actions of the Plan Administrator ............... ................................................17 Section 10.4 Information to be Furnished ........................ ................................................18 Section 10.5 Nondiscrimination ....................................... ..........:.....................................18 Section 10 6 Changes by Administrator ........................... .......................................:........18 Section 10 7 Reportine and Disclosure ............................ ........................:.......................19 Section 10.8 Indemnification of the Administrator .......... ................................................19 ARTICLE XI: MIS CELLANEOUS ............................................. ................................................19 Section 11.1 Amendment and Termination ...................... ................................................19 Section I 1 2 Plan Not a Contract of Emy]oyment ............ ................................................19 Section 11.3 Fundins ........................................................ .....:.......................................:..19 Section 11 4 No Guarantee of Tax Consequences ............ ................................................19 Section 11 5 Plan Benefits May Not be Assipned ............ ................................................20 Section ] 1.6 Govemina Law ............................................ ................................................20 • 3/1/2001 v3 ~~ (~ ' FLEXIBLE BENEFTI' PLAN • ARTICLE I: INTRODUCTION Section 1.1 Purpose. The purpose of the Plan is to provide Participants with a choice between cash and certain "qualified benefits" as defined in Section 125 of the Code. The Plan is intended to qualify as a "Cafeteria Plan" under Section 125 of the Code so that Optional Benefits a Participant elects to receive under the Plan will be eligible for exclusion from the Participant's gross income under Section 125(a) of the Code. The Employer intends Plan terms, including those relating to coverage and benefits, to be legally enforceable. The Plan shall be maintained for the exclusive benefit of Qualified Employees. Section 1.2 Rules of Construction. The Plan shall be construed in accordance with the following rules: (a) Headings at the beginning of articles and sections are provided for convenience of reference and shall not influence construction of the Plan. (b) Capitalized words and phrases shall have the meaning defined in the Plan unless a different meaning is plainly required by the context. (c) Except as otherwise indicated by context, the masculine gender shall include the feminine, the singular shall include the plural, and vice versa. • ARTICLE II: DEFINITIONS Section 2.1 Code means the Internal Revenue Code of 1986, as amended, and its regulations. Section 2.2 Compensation means the total wages and salary, including salary reduction amounts, overtime payments and bonus payments, which are paid by the Employer to a Participant during the Plan Year. Section 2.3 Dependent for purposes of Premium Conversion under Article VII and Health Care Reimbursement under Article VIII means the spouse of a Participant or any individual who is a dependent of the Participant as defined in Section 152 of the Code and any Alternate Recipient under a Qualified Medical Child Support Order ("QMSCO") as defined in ERISA Section 609. Section 2 4 Dependent Care Account means the account established and maintained by the Employer under Article IX, to record a Participant's interest in the Plan. Section 2.5 Dependent Care Expense for the purpose of Dependent Care Reimbursement under Article IX, means an amount paid or incurred by the Participant for the care of a Qualifying Dependent or for related household services, but only if such expenses were incurred . to enable the Participant (and spouse if applicable) to be Gainfully Employed during the period 3/1I2D0] v3 t 1 ``1 J in which the expenses were incurred. Expenses for services delivered outside of the Participant's • home for a Qualifying Dependent described in Section 2.22(6) shall be Dependent Care Expenses only if such Qualifying Dependent regulazly spends at least eight (8) hours per day in the Participant's household. Expenses shall be considered incurred on the date services are provided. Eligible expenses do not include: amounts paid for food, clothing or education unless such expenses are incidental to and inseparable from the care provided; educations] expenses for a child in kindergarten or higher grade; or expenses for services at a camp where the Qualifying Dependent stays overnight. Eligible expenses do not include amounts paid to: (a) A dependent care facility or person providing caze for more than six (6) nonresident individuals which does not wmply with all applicable laws and regulations of the state or local government in which it is located; or (b) A child of the Participant under the age of nineteen (19) at the close of the Plan Year; or (c) Any other individual which the Participant or the Participant's spouse may claim as a dependent under Section 151(c) of the Code. Section 2.6 Effective Date means the Effective Date as shown in the Summary Pages. Section 2.7 Election means an election pursuant to Article VI by a Qualified Employee to participate in the Plan and the allocation by the Participant of elective contributions made on the Participant's behalf among Optional Benefits available under the Plan. Section 2.8 Emplover means the entity named as the Employer in the Summary Pages, or any successor that agrees to continue the Plan and any affiliated employer which adopts the Plan. Affiliated employer in this regard means another corporation which is a member of a controlled group of corporations, any trade or business under common control or an affiliated service group. .Section 2.9 FMLA Leave means a leave of absence that the Employer. is required to extend to a Participant under the provisions of the Family and Medical Leave Act of 1993. Section 2.10 Gainfully Employed for the purpose of Dependent Care Reimbursement under Article D~, means the earning of income which is not nominal reimbursement for volunteer work, or the period of active search for gainful employment. Section 2.11 Health Care Account means the account established and maintained by the Employer under Article VIII, to record a Participant's interest in the Plan. Section 2.12 Health Expense for the purpose of Health Caze Reimbursement under Article VIII, means an expense incurred during a Period of Coverage by a Participant or by the Dependent of a Participant for medical care as defined in Section 213 of the Code, excluding any insurance premiums for health coverage and excluding expenses for long term care. Expenses aze considered incurred on the date services are rendered. Expenses are eligible only to the • 3/IROOlv3 ~ yl~ extent such expense is not reimbursable through insurance or some other source. Medical care generally refers to the diagnosis, cure, treatment, or prevention of disease or for the purpose of affecting any structure or function of the body and includes transportation expenses primarily for and essential to medical caze. - Section 2 13 Highly Compensated Employee means the following for each type of benefit described below: (a) a highly compensated employee for purposes of applicable nondiscrimination requirements of Section ] 25 of the Code means an employee who is highly compensated as defined in Section 125(e) of the Code, (b) for Health Care Reimbursement under Article VIII, a highly compensated employee for purposes of applicable nondiscrimination requirements of Section 105 of the Code means an employee who is highly compensated as defined in Section 105(h) of the Code, (c) for Dependent Caze Reimbursement under Article D~, a highly compensated employee for purposes of applicable nondiscrimination requirements of Section 129 of the Code means an employee who is highly compensated as defined in Section 414(q) of the Code. Section 214 Hi¢}rly Compensated Individual for purposes of Section 125 and its nondiscrimination requirements as to eligibility shall include an officer, a shareholder owning more than 5 percent of the voting power or value of all classes of stock of the Employer, a highly • compensated employee or a spouse or dependent of any of the above. Section 2.15 Key Employee means any person who is a key employee as defined in Section 416(1)(1) of the Code. Section 2.16 Optional Benefits means the following employee benefit plan(s) offered by the Employer: (a) Premium Conversion as described in Article VII (b) Health Care Reimbursement as described in Article VIII (c) Dependent Care Reimbursement as described in Article IX if adopted by the Employer as shown in the Summary Pages. Section 2.17 Participant means a Qualified Employee who has satisfied the eligibility requirements provided in Article III and who makes an Election to participate in the Plan. Section 2 18 Period of Coverage means the time period commencing on the first day of the Plan Year except for, 3/12001v3 ' ~~ (a) Anew or requalifying Participant who satisfies the participation requirements of Article • III during the Plan Year, (b) A Participant who has an Election change (as provided in Section 6.2) during a Plan Year, or (c) A Participant whose participation in the Plan terminates during the Plan Year in accordance with Section 3.3, in which case the Period of Coverage shall be the time period commencing on mid-year entry date as shown in the Summary Pages following receipt by the Plan Administrator of an Election by the Participant and ending on the date participation in the Plan terminates in accordance with Section 3.3. Section 2.19 Plan means the Flexible Benefit Plan as set forth herein, and as amended from time to time. Section 2.20 Plan Administrator means the Employer or such other person or persons designated to administer the Plan pursuant to Article X. Section 2.21 Plan Yeaz means the period designated as the Plan Year as shown in the Summary Pages. Section 2.22 Qualified Benefit means a benefit provided under an Employer sponsored • benefit plan that is a qualified benefit under section 125(fj. Section 2.23 Qualified Emplovee means an individual who receives Compensation fiom the Employer and who meets the eligibility requirements shown in the Summary Pages and who is not 1) anowner-employee of the Employer as defined in Section 401(c)(1)(Bx3) of the Code, or 2) a shazeholder if the Employer is a subchapter S corporation as defined in Section 1361 (a) of the Code. Bargaining unit employees are eligible only if there was good faith bazgaining about cafeteria plan benefits between the Employer and the employees' representative regarding participation in the Plan. Section 2.24 pualifyinA Dependent. For purposes of Dependent Caze Reimbursement under Article IX means any individual who is, (a) A child of the Participant under the age of thirteen (13) and for whom the Participant is entitled to an exemption under Section 151(c) of the Code, or (b) A dependent or spouse of the Participant who is physically or mentally incapable of self- care. (c) Where the parents aze divorced, legally sepazated or separated under a written sepazation agreement, a child (as defined in Section 151(c)(3) of the Code) who: 3/12001v3 4 ~~~~ 1) is under age 13 or is physically or mentally incapable of self-care, • 2) receives over half of his or her support during the calendar year from his or her parents who aze divorced or legally sepazated under a decree of divorce or separate maintenance or who are sepazated under a written sepazation agreement, and 3) is in the custody of one or both of his or her pazents for more than one-half of the calendaz year. is treated for any taxable year beginning in the calendaz year as a Qualifying Dependent of that parent who has custody for a longer period during the calendar year than the other parent. Accordingly, a child maybe treated as the Qualifying Dependent of a pazent even though that pazent is not entitled to a dependency exemption for the child under Code Section 152. Only one parent may treat the child as a Qualifying Dependent. Section 2.25 Summary Pages means the elections made by a particular employer in adopting this Plan, attached hereto as "Summary Pages" and incorporated herein by reference. Section 2.26 Student means an individual who, during each of five (5) calendar months during a taxable year, is a full-time student at an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where its educational activities aze regularly carried on. • Section 2.27 USERRA Leave means a leave of absence that the Employer is required to extend to a Participant under the provisions of the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended from time to time. A Participant returning from a USERRA Leave shall have elections and benefits restored to him at the same level and type that were in effect at the time when the USERRA Leave began, as well as any benefits that began during the leave of absence for which the Participant would have reasonably become eligible. ARTICLE III: ELIGIBILITY AND PARTICIPATION Section 3.1 Eli 'bp ility A Qualified Employee will become eligible to participate in the Plan on the mid-yeaz entry date shown in the Summary Pages. If there is a length of service requirement shown in the Summary Pages, time that a Qualified Employee spends on an FML,A Leave or USERRA Leave will count toward fulfilling the length of such service requirement. Section 3.2 Commencement of Participation. Participation commences on the first day of a Period of Coverage for which an Election is filed in accordance with Article VI. Except as provided below, an Election shall be effective on the first day of the next Plan Year. If a new Qualified Employee (or a Qualified Employee who has an Election change as provided in Section 6.2) files an Election during the Plan Yeaz in accordance with Article VI, such Election shall be effective as of the mid-year entry date shown in the Summary Pages. 3/12001 v3 5 yl~ • Section 3.3 Termination of Participation. A Participant will cease to be a Participant in the Plan on the earliest o£ (a) the date on which any Optional Benefit with respect to which the Participant has an Election terminates, but only to the extent of the Participant's participation in-that Optional Benefit, (b) the date the Participant is no longer a Qualified Employee, (c) the first day of a Period of Coverage for which an Election is revoked pursuant to Section 6.2, (d) the last day of the Plan Year for which an Election is filed, (e) the date required Employee contributions cease, or (f) the date on which the Plan terminates Termination of participation in this Plan shall not prevent a former Participant from continued coverage or benefits under respective Optional Benefit plans (as provided in Sections 3.4 and 3.5) if and to the extent provided by such plans or as authorized by any applicable state or federal law. • Section 3 4 Participation during Unpaid Leave. A Participant who is not at work because of an unpaid leave of absence (including an FMLA Leave or USERRA Leave), may, at the Participant's option, continue any and al] Optional Benefits under the Plan that such Participant elected for the Plan Year during the period of the absence, provided that, the Participant makes al] required contributions for such Optional Benefits. Such Participant may choose from among any of the payment options adopted in the Summary Pages, including the following: (a) PRE-PAY: At the Participant's request, paying the amounts through salary reduction that will become due during the leave out of one or more of the Participant's paychecks preceding the leave; (b) AFTER-TAX PAY AS YOU GO: Remitting after-tax payments to the Employer on or before each pay period for which the contributions would have been deducted from the Participant's paycheck if the leave had not been taken, provided that any delinquent payments must be made within thirty (30) days of their due date; (c) PRE-TAX PAY AS YOU GO: Pre-tax salary reduction contributions from payments to the Participant (i.e., sick pay, wage continuation, short term disability benefits or vacation pay) during the leave; or C~ 3/12001 v3 6 a~~ (d) PAY ON RETURN: From paychecks following the leave provided that all contributions • are made within the Plan Yeaz in which the Election occurs and provided that the Participant and Employer agree to this payment option before the unpaid leave commences. • Section 3.5 Continuation of Coverage. For purposes of the Health Caze Reimbursement Optional Benefit described in Article VIII only, a Participant whose coverage under such Optional Benefit would otherwise terminate may elect to continue coverage under this Optional Benefit in accordance with the rules of Section 4980B of the Code. A Participant who elects to continue coverage under this Optional Benefit shall pay to the Employer an amount designated by the Employer up to the maximum amount permitted under Section 4980B of the Code. A Participant who takes an FMLA Leave may continue coverage under the provisions of the Family and Medical Leave Act of 1993. For purposes of applying the provisions of Code Section 4980B, a Participant who takes an FMLA Leave and who does not return to service as a Qualified Employee at the expiration of the FMLA Leave, will become subject to the provisions of Section 4980B at the expiration of the FMLA Leave. A Participant who takes a USERRA Leave for less than 31 days may continue on such benefit plans on the same terms as active employees. A Participant who takes a USERRA Leave for 31 days or more may continue coverage under the provisions of USERRA and Code Section 4980B, making contributions at the rate charged for continuation coverage for other Participants, as detemvned by the Employer up to the maximum amount permitted under Section 4980B of the Code. A Participant on FMLA Leave or USERRA Leave who does not elect to continue participation in the Health Care Reimbursement Optional Benefit under this Section 3.5 shall not be entitled to payment or reimbursement of Health Expenses incurred during his FMLA Leave or USERRA Leave, nor shall such Participant be entitled to retroactively elect coverage of such expenses under the Plan upon his reinstatement in the Plan. In lieu of the foregoing continuation coverage provisions, the Employer may establish a policy whereby Participants can waive continuation of coverage and choose instead to extend coverage by self paying the remaining premiums, at an amount determined by the Employer. In addition to the foregoing, the Plan will pemvt a Participant to continue coverage in accordance with any other provision of applicable law requiring such continuation. This Section 3.5 shall apply only the Health Care Reimbursement Optional Benefit described in Article VHI. ARTICLE IV: CONTRIBUTIONS • Section 4 1 Salary Reduction Contributions. A Participant may elect in accordance with the election procedures described in Article VI to receive his or her full Compensation for any Period of Coverage in cash, or to have a portion of such Compensation applied by the Employer toward the Participant's share of the cost of Optional Benefits available under Article V and as 3nnooi~3 ~ \ ~~ elected by the Employer in the Summary Pages. If so elected, the Participant's Compensation • will be reduced, and an amount equal to the reduction will be allocated by the Employer to the Optional Benefits designated by the Participant. Pro rata amounts of the total salary reduction election will be deducted from a Participant's Compensation at least once per month but not more frequently than once per pay period unless the Employer adopts a specific policy which provides for contributions on a periodic basis other than level pro rata amounts. The amount of the salary reduction election for the premium conversion option described in Section 7.2 shall be the Participant's share of the cost of Employer sponsored group health coverage or other Qualified Benefits, as determined by the Employer, taking into account any benefit credits available to the Participant under Section 4.2. If the employee's share of the cost for such benefit changes during the Period of Coverage, a Participant's salary reduction for such benefit(s) maybe adjusted automatically in accordance with the change in cost. Section 4.2 Benefit Credits. The Employer may make available to Participants elective Employer provided benefit credits which the Employer shall allocate to offset the cost of Optional Benefits elected by the Participant, or pay to the Participant as additional taxable Compensation as defined in the Summary Pages. The amount of benefit credits available under this Section, if any, is shown in the Summary Pages and may change in subsequent Plan Years provided that the new amount is determined before the beginning of the Plan Yeaz. Benefit Credits shall be earned in equal pro rata amounts on the last day of each payroll period throughout the Period of Coverage. • Benefit Credits in excess of the cost of Optional Benefits elected by the Participant may be forfeited or distributed in whole or in part to the Participant, as selected by the Employer in the Summary Pages. Section 4.3 Maximum Contribution. The maximum amount of Employer contributions under this Plan for any Participant for a Plan Yeaz shall be the sum of the maximum salary reduction contribution and benefit credits which aze shown in the Summary Pages. ARTICLE V: BENEFITS Section 5.1 Benefit Options. A Participant may allocate elective contributions as provided in Article N between cash and the Optional Benefits in Article II, as adopted by the Employer as shown in the Summary Pages. Section 5.2 Benefit Descrintions. While the election to receive one or more benefits may be made under this Plan, the benefits will be provided in accordance with the plan documents or contracts governing the respective benefits. The governing documents which describe the types and amounts of benefits available, the requirements for participation, procedures for submitting claims, and the other terms and conditions of coverage for each benefit are incorporated into this Plan by reference. Section 5.3 Limitation of Benefits. No Optional Benefits shall be paid to or on behalf of • a Participant in excess of the amount elected by the Participant under the Plan. In no case shall 3nrzom.s 8 ~-I ~~~ the Plan allow a Participant to carry over unused contributions from one Plan Year to a • subsequent Plan Year, or allow contributions from one Plan Year to purchase a Qualified Benefit incurred in a subsequent Plan Year. Section 5.4 Appeal Procedure. This appeal procedure shall apply to the extent that a claims appeal procedure is not provided for in the document governing the Optional Benefit If any claim for benefits under the Plan is denied in whole or in part, within 30 days of the initial receipt of the claim (or within 45 days if additional information is required and an extension notice is provided to the Participant during the initial 30 day period), the Participant shall be famished by the Plan Administrator a written notice: (a) outlining the reason for the denial, (b) making reference to pertinent Plan provisions on which denial is based, (c) describing any additional material or information which is necessary and why, and (d) explaining the claim review procedure set forth herein. The Participant has 45 days after receiving an extension notice to provide the required information. Within one hundred eighty (1 HO) days after denial of any claim for benefits under this Plan, the Participant may request in writing a review of the denial by the Plan Administrator. Any Participant seeking review hereunder is entitled to examine al] pertinent documents, and to • submit issues and comments in writing. The Plan Administrator shall render a decision on review of a claim not later than sixty (60) days after receipt of a request for review. The decision of the Plan Administrator on review shall be in writing and shall state the reason for the decision, referring to the Plan provisions upon which it is based. Section 5.5 Forfeitures. If a Participant has not used all amounts available for benefits to the Participant under any Optional Benefit for a Period of Coverage in accordance with the terms thereof, any remaining balance shall be forfeited by the Participant, who shall have no further claim thereto. Such forfeitures shall be used to offset the reasonable administrative costs of the Plan. ARTICLE VI: ELECTION PROCEDURES Section 6.1 Election Form and Timintt. Elections must be in writing, shall specify the Optional Benefits to which elective contributions will be allocated and designate the amount, if any, of reimbursement account contributions. The Plan Administrator shall make available to all Qualified Employees a form on which to make benefit elections during an election period. Except as described in subsections (a), (b) and (c) below, the election period shall commence no earlier than the ninety (90) day period immediately preceding the first day of the Plan Year. (a) The election period for a new Qualified Employee shall be a thirty (30) consecutive day period which commences on the date of satisfaction of the eligibility requirements as defined in Section 3.1 • 3/12001 v3 9 ~11~ (b) The election period for a Qualified Employee who makes an Election change as defined in Section 6.2 shall be a thirty (30) consecutive day period which commences on the date of the election change event. (c) The election period for a Qualified Employee who returns to employment following a FMLA Leave or USERRA Leave shall be a thirty (30) consecutive day period which commences on the date of return to employment. The designated election form must be received by the Plan Administrator prior to the first day of the Plan Year. Except as described in subsections (a), (b) and (c) above, Elections received after the first day of the Plan Year shall be void. Section 6.2 Elections Irrevocable. Once an Election becomes effective, such Election shall be irrevocable for the remainder of the Plan Year except under the following circumstances. (a) Special enrollment rights - A Participant may revoke an election under a group health plan and make a new election to apply only for the remaining period of coverage that corresponds with the special enrollment rights provided by the Health Insurance Portability and Accountability Act of 1996 (HIPAA), including the enrollment of both new and pre-existing Dependents. (b) Changes in status - A Participant may revoke an Election for a Qualified Benefit and • make a new Election for the remainder of the Plan Yeaz if a change in status occurs and the election change satisfies the consistency rule defined below. A new election must be filed with the Plan Administrator of this Plan, within thirty (30) days after the date of the change in status. For purposes of this paragraph, a change in status means any of the following: 1) Change in legal marital status of the Participant through marriage, divorce, death of a spouse, legal separation and annulment. 2) Change in number of Dependents of the Participant through birth, adoption, placement for adoption, and death. 3) Change in the employment status of the Participant or Dependent including his or her termination or wmmencement of employment, loss of work due to strike or lockout, commencement or return from an unpaid leave of absence, change from full-time to part-time status or change in work site. In addition, if a Participant or Dependent has a change in employment status that affects eligibility under an employer plan, that is a change in status under this paragraph. 4) Events that cause a Dependent to satisfy or cease to satisfy eligibility requirements of an employer plan, including achieving or losing student status, reaching the limiting age for benefits or any similar circumstance. 5) Change in residence of the Participant or Dependent which renders the person unable to use the qualified benefit plan (such as if one relocated outside of the HMO service area). • 6) Change in status shall also include other events as maybe permitted under regulations and rulings of the Internal Revenue Service. 3/12001v3 10 yl~ • The consistency rule requires that Election changes must be due to and correspond with a change in status that affects eligibility for coverage under an employer's plan. With respect to accident or health plans and group term life insurance, a change in status that affects eligibility is deemed to be consistent with the benefit change if it results in an increase or decrease in the number of dependents who may benefit from coverage under the plan. The consistency rule as to adding or dropping coverage is satisfied only for an individual who has gained or lost eligibility. Further, an Election change to cancel coverage for an individual who gains eligibility under another employer plan satisfies the consistency rule only if the Participant certifies that the individual has actually become covered under such plan. With respect to group term life insurance and disability coverage, either an Election change which increases or decreases coverage as a result of a change in status complies with this consistency rule. Notwithstanding this consistency rule, if the Participant or Dependent becomes eligible for continuation coverage under Section 4980B of the Code or any similar state law, the Participant may increase the amount of Premium Conversion under Article VII to pay such premiums. (c) Judgment, decree, or order - A Participant may change an Election with respect to an accident or health plan as required to provide coverage for a dependent child pursuant to . a court judgment, order, decree or QMSCO as described in Section 2.3 resulting from a divorce, legal separation, annulment or change in legal custody. A Participant may cancel or terminate accident or health plan coverage for a child if such court order or decree requires the Participant's former spouse or another person to provide coverage, but only upon certification by the Participant or another party to the court order that such coverage has in fact been obtained. (d) Entitlement to Medicare or Medicaid - If the Participant or a Dependent who is enrolled in an accident or health plan of the Employer becomes enrolled under Part A or Part B of Title XVIII of the Social Security Act (Medicare) or Title XD~ of the Social Security Act (Medicaid), other than coverage consisting solely of benefits under section 1928 of the Social Security Act (Distribution of Pediatric Vaccines), the Participant may make a corresponding Election change to cancel or reduce coverage for the Participant or Dependent under the accident or health plan. Further, if Participant, spouse or dependent who has been entitled to coverage under Medicare or Medicaid loses eligibility for such coverage, the Participant may make a prospective election to commence or increase coverage for the Participant or Dependent. (e) Cost or coverage changes - If there is a change in the cost or coverage of a Qualified Benefit as described below, a Participant may revoke an Election with respect to such Qualified Benefit and make a new Election for the remainder of the Plan Year. This paragraph does not apply to health care reimbursement benefits defined in Section • 2.16(b) and described in Article VIII. 3nrzooi~s t1 a~~ 1) Automatic changes - If the cost of a Qualified Benefit which is not a health FSA • increases or decreases during the Plan Year, and Participants are required to make a corresponding change in their contributions, the Employer may, on a reasonable and consistent basis, automatically make a prospective increase or decrease in affected Participants' Elections for the plan. 2) Significant cost changes - If the cost charged to a Participant for a Qualified Benefit option significantly increases or decreases during the Plan Year, the Participant may make a corresponding prospective Election change. Through such election, a Participant may commence participation in a Plan option that decreases in cost or a Participant may revoke an Election for a Plan option that increases in cost and, if the Employer makes available another option that provides similaz coverage, elect to receive coverage under such option. Employees who have not previously elected to participate may elect mid-year and commence participation on a prospective basis. Cost increase or decrease for this paragraph means a change in the amount of the elective contributions required under the Plan, and may result from actions taken by the Participant or the Employer. With respect to dependent care as defined in Section 2.6(c), this pazagraph only applies if the cost change is imposed by a dependent care provider who is not a relative of the Participant. 3) Significant curtailment of coverage - If there is a significant curtailment of coverage under a Qualified Benefit option, a Participant may revoke their Election and receive coverage on a prospective basis under another option providing similar coverage. If the curtailment of coverage involves a loss of coverage, the • Participant may drop coverage if no other similaz benefit option is available under e includes any of loss of covera lti ith t il g a resu ng men w the Plan. Significant curta the following: HMO not available in geographic azea of residence, coverage not helpful because lifetime or annual cap has been reached, a substantial decrease in medical care providers in a PPO network or HMO, a hospital dropping out of the plan or network, reduction in benefits for a certain illness or injury in which a participant or family member is currently in a course of treatment, an increase in deductible, copay, out-of-pocket cost-sharing limit or any other similar fundamental loss of coverage. 4) Addition or improvement of a benefit option - If the Plan adds a new Qualified Benefit option or if coverage under an existing option is significantly improved during the Plan Year, Participants may revoke their Election and elect coverage under the new or improved benefit option on a prospective basis. 5) Change in coverage under another employer plan - A Participant may make an Election change that is on account of and corresponds with a change made by a Dependent or former spouse under another employer plan if: i.) the circumstances for the Dependent's or former spouse's election change is described in this Section 6.2, or ii.) the Dependent's or former spouse's employer plan permits an election for a period of coverage that is different fiom the Period of Coverage for this Plan. 6) Loss of coverage under other group health coverage - A Participant may add coverage on a prospective basis if the Participant or Dependent loses coverage • under a group health plan sponsored by a governmental or educational institution: 3/I20D1 v3 12 "1 `~ • (f) Special FMLA requirements - A Participant who takes an FMLA Leave may revoke an election of group health coverage and make such other election for the remaining portion of the period of coverage as may be provided for under the Family and Medical Leave Act. Section 6.3 Failure to Elect A Participant who fails to return the required Election form for any Period of Coverage to the Plan Administrator before the first day of such Period of Coverage shall be deemed to have elected to receive his or her full Compensation in cash, except to the extent that an alternate deemed election is contained in the Summary Pages. Section 6.4 Automatic Termination of Election. Elections made under this Plan shall automatically terminate on the date the Participant ceases to be a Participant in the Plan in accordance with Section 3.3, although coverage under Optional Benefits may continue if and to the extent provided by such plans. Section 6.5 RequalifyinA Employees. A former Participant whose participation in the Plan terminated because of an Employer approved unpaid leave of absence, and who subsequently requalifies for coverage during the same Plan Yeaz shall have their Election for that Plan Year automatically reinstated unless such Election is revoked in accordance with Section 6.2. The Employer may require that a Participant who returns to work as a Qualified • Employee within 30 days of termination of active employment will resume Plan participation under the Participant's original election, provided there is no other intervening change in status event as defined in Section 6.2. The Employer may also permit a Participant who returns to work more than 30 days after termination of employment but within the same Plan Year, to have the option of resuming the original election or making a new election. The policy adopted by the Employer is shown in the Summary Pages. ARTICLE VII: PREMIUM CONVERSION Section 7 1 Apnlicabilitv of this Article. The terms of this Article VII apply only to the extent that the Employer has adopted the Premium Conversion Optional Benefit in Section 2.16(a). The term "Election" as used in this Article VII refers to the Election made by a Participant pursuant to Article IV, to receive Optional Benefits described in such Section 2.16(a). Section 7.2 Premium Conversion. Participants may elect as a benefit under this Article pre-tax payment of the Participant's share of the cost for Employer sponsored Qualified Benefits provided through an insured plan, a preferred provider organization, a health maintenance organization or other group arrangement in accordance with the options made available through the Employer. Once elected, this Optional Benefit shall be provided automatically, and as such, no separate claim need be submitted to the Plan Administrator. The Employer's liability for benefits provided by third parties through this premium • conversion option shall be limited to the payment of required premiums. The Employer does not 3n2001 v3 13 ~~ guarantee benefits payable under any insurance policy or other similar contract. Such benefits • shall be the exclusive responsibility of the insurer or other entity that is required to provide the benefits under the governing policy or contract. ARTICLE VIII: HEALTH CARE REIMBURSEMENT C~ Section 8 1 Applicability of this Article. The terms of this Article VIII apply only to the extent that the Employer has adopted the Health Care Reimbursement Optional Benefit in Section 2.16{b) in the Summary Pages. The term "Election" as used in this Article VII refers to the Election made by a Participant pursuant to Article N, to receive Optional Benefits described in such Section 2.16(b). Section 8.2 Purpose. The purpose of the Health Care Reimbursement Optional Benefit described in this Article is to provide Participants with the option of being reimbursed for eligible Health Expenses. The Health Care Reimbursement Optional Benefit is intended to qualify as a medical reimbursement plan under Section 105 of the Code so that payments received pursuant to this Article and the Plan aze excludable from the gross income of the Participant under Section 105(b) of the Code. Section 8.3 Health Caze Account. The Employer will establish and maintain for record keeping purposes a Health Care Account for each Plan Year for each Participant from whom an Election is received. The account will be increased as of each date compensation is paid to the Participant in an amount equal to the allocation,. if any, which the Participant has elected. A Participant's Health Care Account will be decreased from time to time in the amount of payments made to the Participant for Health Expenses incurred during the Period of Coverage. All amounts added to a Health Care Account remain the property of the Employer until distributed to the Participant in accordance with this Article VIII. Section 8.4 Claims for Reimbursement. A Participant who has made an Election for a Plan Yeaz may apply to the Plan Administrator for reimbursement of Health Expenses incurred during such Period of Coverage by executing and submitting a claim. form which the Plan Administrator prescribes setting forth: (a) The amount, date and nature of the expense, (b) The name of the person or entity to which the expense was paid, (c) The Participant's statement that the expense has not been reimbursed or is not reimbursable from any other source, and (d) Such other information as the Plan Administrator may require. Such claim form shall be accompanied by bills, invoices, receipts, or other statements from an independent third party stating the Health Expense has been incurred and the amount of the expense. The Plan Administrator may, to the extent provided by law, rely on information 3/1/1001 v3 14 yl~ provided by Participants. Such claims must be submitted within such time periods as the Plan • Administrator may reasonably require. Section 8.5 Reimbursement of Expense. The Employer shall reimburse the Participant for Health Expenses incurred during a Period of Coverage if the Participant submits the documentation required under Section 8.4. An amount up to the Participant's total Election for the Plan Year (reduced as of any particular time for prior reimbursements for the same Period of Coverage) shall be available for reimbursement at all times during the Plan Year. The Plan may not make advance reimbursements of future or projected expenses. The Plan Administrator shall make a determination on claims submitted for reimbursement within 30 days of receipt unless such deternunafion cannot be made due to reasons beyond the control of the Plan Administrator. In this case a 15 day extension is available if the Participant is notified of the extension within the initial 30 day period. If a determination on a claim cannot be made because the Participant did not provide sufficient information, the Participant has 45 days from receipt of a request to provide such information. Eligible claims for reimbursement shall be paid within 30 days of receipt, or when the total amount of claims to be paid reaches a reasonable minimum designated by the Plan Administrator, such as $50. However, if a minimum amount is specified, that amount will not be applicable for the final processing cycle of the Plan Year or other interim processing cycles as determined by the Plan Administrator. Section 8.6 Maximum Reimbursement. The maximum reimbursement which a • Participant may receive for a Plan Year under this Article VIII shall be the amount designated in the Summary Pages for health care reimbursement. Section S.7 Revocation of Election. If a Participant revokes an Election during the Plan Year as a result of a change in status or separation from service, the Employer shall reimburse the Participant for any amount previously prepaid or contributed in advance to the Optional Benefit on the Participant's behalf for coverage relating to a period after the date of such Election revocation, regazdless of the Participant's claims or reimbursements as of that date. ARTICLE IX: DEPENDENT CARE REIMBURSEMENT Section 9 1 Applicability of this Article. The terms of this Article IX apply only to the extent that the Employer has adopted the Dependent Care Reimbursement Optional Benefit in Section 2.16(c) in the Summary Pages. The term "Election" as used in this Article IX refers to the Election made by a Participant pursuant to Article N, to receive Optional Benefits described in such Section 2.16(c). Section 9.2 Puroose. The purpose of the Dependent Care Reimbursement Optional Benefit described in this Article is to provide Participants with the option of being reimbursed for eligible Dependent Care Expenses. The Dependent Care Reimbursement Optional Benefit is intended to qualify as a dependent care assistance program under Section 129 of the Code so that payments received pursuant to this Article and the Plan aze excludable from the grass income of the Participant under Section 129(a) of the Code. • 3/1/1001 v3 15 ~ l~ • Section 9 3 Dependent Care Account. The Employer will establish and maintain for record keeping purposes a Dependent Care Account for each Plan Year for each Participant from whom an Election is received. The account will be increased as of each date compensation is paid to the Participant with an amount equal to the allocation, if any, which the Participant has elected. A Participant's Dependent Care Account will be decreased from time to tune in the amount of payments made to the Participant for Dependent Care Expenses incurred during the Period of Coverage. Al] amounts added to a Dependent Caze Account remain the property of the Employer until distributed to the Participant in accordance with this Article IX. Section 9.4 Claims for Reimbursement. A Participant who has made an Election for a Period of Coverage may apply to the Plan Administrator for reimbursement of Dependent Care Expenses incurred during such Period of Coverage by executing and submitting a claim form which the Plan Administrator prescribes setting forth: (a) 'The amount, date and nature of the expense, (b) The name of the person or entity providing the services, and if different, the name of the person or entity to which the expense was paid, (c) The Participant's statement that the expense has not been reimbursed or is not • reimbursable from any other source, and (d) Such other information as the Plan Administrator may require. Such claim form shall be accompanied by bills, invoices, receipts, or other statements from an independent third party stating the Dependent Caze Expense has been incurred and the amount of the expense. The Plan Administrator may, to the extent provided by law, rely on information provided by Participants. Section 9 5 Reimbursement of Exnense. The Employer shall reimburse the Participant from the Participant's Dependent Care Account for Dependent Care Expenses incurred during the Period of Coverage for which the Participant submits the documentation required under Section 9.4. In no case shall a payment be made which exceeds the balance in the Participant's Dependent Caze Account at the time reimbursement is requested. The Plan may not make advance reimbursements of future or projected expenses. Such claims must be submitted within such time periods as the Plan Administrator may reasonably require. Claims for reimbursement shall be paid at least monthly, or when the total amount of claims to be paid reaches a reasonable minimum designated by the Plan Administrator, such as $50. However, if a minimum amount is specified, that amount will not be applicable for the final processing cycle of the Plan Year or other interim processing cycles as determined by the Plan Administrator. • snrzooi~s 16 ~ly Section 9.6 Maximum Reimbursement. The maximum reimbursement which a • Participant may receive in a tax year under this Article D{ shall be the least of: (a) The Participant's earned income for the tax year, (b) The actual or deemed earned income of the Participant's spouse for the tax year; or (c) $5,000, or in the case of a Participant who is married and filing a separate income tax return form his or her spouse, $2,500. In the case of a spouse who is a full-time student, or is physically or mentally incapable of self-care, such spouse shall be deemed to have earned income of $200 per month if the participant has one Dependent and $400 per month if the Participant has two or more Dependents. ARTICLE X: ADMINISTRATION Section 10.1 Plan Administrator. The Employer is hereby designated as the Plan Administrator. The Employer may delegate in writing its duties under the Plan to one or more officers or employees, or to individuals or entities independent of the Employer. Section 10.2 Powers of the Plan Administrator. The Plan Administrator shall have sole and complete authority necessary to administer the Plan, including but not limited to the . following: (a) To interpret the provisions of the Plan, decide questions of eligibility and determine amounts of benefits due under the Plan. Benefits under this Plan will be paid only if the Plan Administrator decides in his discretion that the Participant or applicant is entitled to them. (b) To establish and revise the method of accounting for the Plan and to maintain the accounts. (c) To establish Hiles and prescribe any forms necessary or desirable for the administration of the Plan. Except as provided in Section 10.6, the Plan Administrator shall have no power to add to, subtract from or modify any of the terms of the Plan, or to change or add to any benefits provided by the Plan, or to waive or fail to apply any requirements of eligibility for a benefit under the Plan. Section 10.3 Actions of the Plan Administrator. All determinations, interpretations, rules and decisions of the Plan Administrator shall be conclusive and binding upon all persons having or claiming to have any interest or right under the Plan. All decisions and actions by the Plan Administrator shall be applied uniformly and consistently to all Participants so that all persons • similarly situated will receive substantially the same treatment. ennao~~s t~ yl~ Section 10.4 Information to be Furnished. Participants shall provide the Plan Administrator with such information and evidence, and shall sign such documents as may reasonably be requested from time to time for the purpose of administration of the Plan. The Plan Administrator may, to the extent provided by law, rely on information provided by Participants. Section 10.5 Nondiscrimination. The Plan shall not discriminate in favor of Highly Compensated Individuals as to eligibility to participate. Optional Benefits provided to Key Employees under the Plan shall not exceed 25% of the aggregate of such benefits provided for all Participants in any Plan Year. In addition, Optional Benefits shall comply with any nondiscrimination rules which apply to those plans separately. Specifically, (a) if the Employer has adopted the Health Care Reimbursement Plan described in Article VIII, the plan pursuant to such Article VIII shall not discriminate in favor of Highly Compensated Individuals as to eligibility to participate or in favor of Highly Compensated Employees as to benefits and shall meet the discrimination tests of Section 105(h) of the Code; and (b) if the Employer has adopted the Dependent Caze Reimbursement Plan described in Article Df, not more than 25% of the amounts paid by the Employer for dependent care assistance during the Plan Year shall be provided to Participants who are shareholders or owners (or their spouses or dependents) of more than 5% of the stock or of the capital or • profit interest in the Employer. Benefits provided under Article IX shall not discriminate in favor of Highly Compensated Individuals with respect to eligibility or in favor of Highly Compensated Employees with respect to contributions or benefits. The average dependent care reimbursement paid pursuant to Article IX to non-highly compensated employees for Dependent Caze Expenses shall be at least 55% of the average Dependent Care Expenses paid to Highly Compensated Employees. If the Plan fails any of the requirements of this Section 10.5, benefits provided under the Plan will become taxable to Highly Compensated and Key Employees to the extent required by law. Section 10 6 Chances by Administrator. If the Plan Administrator determines, before or during any plan Year, that the Plan may fail to satisfy for the Plan Year any nondiscrimination requirement imposed by the Code or any limitation on benefits provided to Key Employees, the Plan Administrator may reject or reduce Elections by Highly Compensated Employees or Key Employees with or without the consent of such employees. Any limitation imposed by the Plan Administrator shall apply on a uniform basis pursuant to rules applicable equally to all Participants who are Highly Compensated Employees or Key Employees. To the extent practicable, such adjustments shall be made before the commencement of • the Plan Year for which the Election is effective. 3/12001 v3 18 y~~ Section 10.7 Reuortins and Disclosure. Promptly after the Plan, or any Optional Benefit thereunder, is adopted, the Plan Administrator will notify all Qualified Employees of the availability and terms of the Plan. The Plan Administrator shall be responsible for complying with all reporting, filing and disclosure requirements for the Plan. If the Employer has adopted a Dependent Care Reimbursement Plan pursuant to Article DC, on or before January 31, the Plan Administrator will furnish each Participant who has received payments under Article IX with a written statement showing the amount of Dependent Care Expenses reimbursed by the Plan for the previous calendar year. The Plan Administrator will provide required information on the applicable Treasury Form W-2. Section 10.8 Indemnification of the Administrator. Any individual acting in the capacity of Plan Administrator shall be indemnified by the Employer against any and all liabilities arising by reason of any act or failure to act made in good faith pursuant to the provisions of the Plan, including expenses reasonably incurred in the defense of such claim. ARTICLE XI: MISCELLANEOUS Section 11.1 Amendment and Termination. The Employer may amend or terminate the Plan, or any Optional Benefit offered thereunder, at any time by a duly adopted resolution of its Boazd of Directors (or appropriate governing body) or written instrument executed by a duly authorized individual. Unless otherwise specifically provided, amendments shall be only • prospective in impact. No amendment or termination shall deprive a Participant of any benefits to which he or she is entitled under this Plan with respect to contributions previously made. Section 11 2 Plan Not a Contract of Emnlovment. The Plan is not an employment agreement and does not assure the continued employment of any employee or Participant for any period of time. Nothing contained in the Plan shall interfere with the Employer's -right to discharge an employee or Participant at any time, regardless of the effect such discharge will have upon that individual as a Participant in this Plan. Section 11.3 Funding. The Plan provides a means of making Elections concerning Optional Benefits but has no assets per se. Nothing contained in the Plan shall require the Employer to maintain a separate fund or trust for the benefit of Participants unless otherwise required by law. No Participant shall, by virtue of this Plan, have any right or interest in the assets of the Employer. A Participant has only an unsecured contract right to receive benefits in accordance with the Plan. Section 11 4 No Guarantee of Tax Consequences. The Employer makes no commitment or guarantee that any amounts paid to a Participant under any Article of this Plan will be excludable from the Participant's gross income for federal or state income tax purposes. It shall be the obligation of each Participant to determine whether each payment is excludable from the Participant's gross income for federal and state income tax purposes, and to notify the Employer if the Participant has reason to believe that any such payment is not so excludable. n -..J 3/IIlOOlv3 19 yl~ Any Optional Benefit provided to a Participant that is includable in the Participant's gross • income shall be treated as if it were a distribution of cash under this Plan. Section 11 5 Plan Benefits Mav Not be Assi¢ned. No Participant may assign, pledge, or otherwise dispose of any benefit under the Plan prior to actual receipt thereof. Section 11.6 Governing Law. This Plan shall be construed and enforced according to the laws the jurisdiction name3 in the Summary Pages except to the extent preempted by federal law. • r1 LJ 3/120D1v3 20 y~~ SUMMARY PAGES Definitions Employer: City of Hutchinson Optional Benefits means those components checked below: X Premium Conversion as described in Article VII X Health Care Reimbursement as described in Article VIII X Dependent Caze Reimbursement as described in Article IX Effective Date of Plan: January 1, 1991 of Restatement: January 1, 2003 and ending on the subsequent December 31 and the 12 month period ending on each December 31 thereafter. Plan Year: Period beginning on the Effective Date and ending on the subsequent MONTH/DAY and the 12 month period ending on each MONTH/DAY thereafter. X Period beginning on January 1, 2003 and ending on the subsequent December 31 and the 12 month period ending on each December 31 thereafter. Eligibility and Wafting Periods • The following employees aze eligible to participate in the Plan. New employees may begin participafion on the new employee Mid-Yeaz Entry Date. (Check all that apply.) X Full-time employees working an average of at least 30 hours per week. X Permanent part-time employees working more than 20 hours per week. X Eligible employees as indicated above are eligible to participate in all Optional Benefits adopted by the Employer to be included in the Plan. The following employee classifications are eligible for only the following Optional Benefits adopted by the Employer to be included in the Plan: _ Premium Conversion _ Health Caze Reimbursement Dependent Care Reimbursement The Mid-Year Entry Date for a new employee is: First day of the month following O days of service as a Qualified Employee First day of employment as a Qualified Employee X Other: The first day of the month following date of employment. 3nnooz~a ~~~ • The Mid-Year Entry Date far a Participant with an Election change event as defined in Section 6.2 or returning from a FMLA or USERRA Leave is: X First day of the payroll period following receipt of an Election First day of the month following receipt of an Election Other: Leased Employees The term "Qualified Employee" in Section 2.23 Shall X Shall not include Leased Employees, meaning any person who is an employee of the Employer and who provides services to an Employer where: 1) such services are provided pursuant to an agreement between an Employer and any other person (leasing organization); 2) such person has performed such services for the Employer on a substantially full time basis for a period of at least one year pursuant to Code Section 414(n)(2); and 3) such services aze performed under primary direction or control by the recipient. Salary Reduction Contributions Maximum Salary Reduction Contribution: • $8,500 plus the amount required to fully pay the Participant's shaze of the cost for benefits under any Premium Conversion Optional Benefit available through the Plan. Other: Maximum Health Care Reimbursement in any Plan Year: $3,500 Elective Employer Contributions Benefit Credits available under Section 4.2 (check all that apply): X No Benefit Credits aze available under the Plan. Benefits under the Plan aze provided solely through Salary Reduction contributions. Benefit Credits are provided in the following amount: _ Benefit Credits shall be allocated by the Employer to offset the Participant's cost . for Optional Benefits elected pursuant to Article VI in the following order: 3nnooz~a 2 y~~ • Benefit Credits in excess of a Participant's cost for Optional Benefits will be paid to the Participant as additional taxable cash Compensation. In equal amounts on each paycheck Other: Benefit Credits in excess of a Participant's cost for Optional Benefits will be forfeited by the Participant and aze not available as additional taxable cash Compensation. Benefit Credits will be paid to the Participant as additional taxable cash Compensation. Participation During Unpaid Leave (Section 3.4) A Participant on an unpaid leave of absence (including an FMLA Leave or USERRA Leave), may choose to pay for Optional Benefits elected under any of the options checked below (select all that apply): PRE-PAY: Paying pre-tax before the leave begins the amounts that will become due during the leave out of payroll checks; X AFTER-TAX PAY AS YOU GO: Remitting after-tax payments to the Employer on or before each pay period during the leave, with all • delinquent payments to be made within thirty (30) days of their due date; X -PRE-TAX PAY AS YOU GO: Pre-tax salary reduction contributions from payments to the Participant (i.e., sick pay, wage continuation, short term disability benefits or vacation pay) during the leave; or PAY ON RETCTRN: From paychecks following the leave on a pre-tax basis. Participant must make up all amounts owing for Plan Yeaz, must elect this payment option before the Unpaid Leave commences and Employer must approve. Continuation of Coverage (Section 3.5) _ Continuation coverage is available to all Participants and Qualified Beneficiaries in the Health Caze Reimbursement Gptional Benefit, regazdless of account balance. X Continuation coverage in the Health Care Reimbursement Optional Benefit will be made available only if the amount of required payments for the remainder of the Plan Year does not exceed the maximum amount available to the Participant or Qualified Beneficiary for reimbursement for the remainder of the Plan Yeaz. Safe Harbor Rules Related to Re-Employment (Section 6.5) • X Participant who returns to work within 30 days of termination will automatically resume their original election unless another intervening event has occurred which would permit a change in election. A snnooz~a 3 y~~ . Participant who returns to work more than 30 days after termination will be treated as having a change in status and have the option of resuming the original election or making a new election. Participants who return to work may not resume the original election and may not participate in the plan for the rest of plan year. Deemed Elections Deemed Election to be applied in Section 6.3 (check all that apply): X Participant deemed to have elected to receive his full Compensation in cash. X Participant deemed to have elected to receive the same Premium Conversion election as existed on the last day of the immediately preceding Period of Coverage, if applicable. Participant deemed to have elected the following coverage under Employer sponsored accident and health, disability and group term life benefits: Employee only medical coverage Other: X There aze no deemed Elections for the Health Caze Reimbursement or Dependent Care Reimbursement Optional Benefits. • Governing Law Jurisdiction: X Minnesota Other: Date of Execution • City of Hutchinson By Its snrzooz~a 4 yl~ ~J CITY OF HUTCHINSON FLEXIBLE BENEFIT PLAN SUMMARY PLAN DESCRIPTION January 1, 2003 r~ snrzoaz~a Ul~ TABLE OF CONTENTS INTRODUCTION .............................................................................................. ......:.....................1 ELIGIBILIT'Y ..................................................................................................... ............................1 CONTRIBUTIONS: SALARY REDUCTION ................................................ ............................1 Social Security Impact ........................................................................... ............................1 PREMNM CONVERSION .............................................................................. ............................1 HEALTH CARE REIMBURSEMENT ............................................................. ............................2 Eligible Health Caze Expenses ............................................................... ............................2 Maximum Health Caze Reimbursement ................................................ ............................2 Termination of Employment and Leave of Absence ............................. ............................3 COBRA Continuation Notice ................................................................ ............................3 DEPENDENT CARE REIMBURSEMENT ..................................................... ............................5 Eligible Dependent Caze Expenses ........................................................ ............................6 Maximum Dependent Caze Reimbursement .......................................... ............................6 Termination of Employment .................................................................. ............................7 Dependent Care Tax Credit ..........................................:........................ ............................7 ENROLLMENT AND ADMINISTRATION .................................................... ............................8 Election Process ..................................................................................... ............................8 Election Changes ................................................................................... ............................ 8 Reimbursement Accounts and Account Forfeiture ................................ ..........................10 • Submitting Reimbursement Account Claims ......................................... .......................... l l Reimbursement Account Claim Denial ................................................. .......................... l l Unpaid Leave of Absence ..................................................................... ...........................11 Plan Amendment and Termination ....................................................... ...........................12 GENERAL INFORMATION ........................................................................... ...........................13 STATEMENT OF RIGHTS OF PARTICIPANTS .......................................... ...........................14 DEFINITIONS .................................................................................................. ...........................16 n U 3nnaaz~a \ ~ Jl INTRODUCTION Many employees don't view their benefits as compensation. They see pay and benefits as two separate programs. Actually, your pay and benefits together form your total compensation. With the Flexible Benefit Plan, you receive more choices in your benefit program and more flexibility in how your total compensation is allocated between pay and benefits. The Plan allows you to elect certain optional nontaxable benefits as alternatives to cash compensation that would be taxable. As a result, your total compensation is delivered more tax effectively. ELIGIBILITY Employees aze not automatically eligible for the Flexible Benefit Plan. The Definitions section at the end ofthis document describes which employees aze Eligible Employees andthe applicable Waiting Period before participation for newly hired employees begin. Sole proprietors, partners in a partnership arrangement and owners of 2% or more of the shares of a Sub-S corporation are not eligible to pazticipate. CONTRIBUTIONS:. SALARY REDUCTION The Flexible Benefit Plan allows you to elect to have a portion of your pay set aside (before any taxes have been deducted) to be applied to the payment of your shaze of the cost for the Optional • Benefits you select. The legal term for this process is "salary reduction". The advantage is that it reduces your federal and state income taxes and social security taxes (FICA). The maximum amount of salary reduction allowable in any Plan Year is shown in the Definitions section at the end of this document. Soda! Security Impact It should be noted that because the amount of your salary reduction is not subject to FICA taxes, it is also not included in determining your average wages for Social Security benefit purposes. For example, if you reduce your salary in one yeaz from $20,000 to $18,000 through use of this Plan, the salary included in your Social Security wage history for that yeaz would be $18,000 rather than $2Q000. The exact effect this will have on your Social Security benefits is based on your pay history throughout your working cazeer, your marital status, and other factors. One potential effect is that your Social Security benefits maybe reduced. PREMIUM CONVERSION This benefit allows you to use before-tax dollars to pay the employee shaze of the premiums for certain employer-sponsored benefit plans such as group medical insurance. The available plans are listed in the Definitions section at the end of this document. If you decide to use this option, your portion of premiums will be deducted from your pay before taxes. Your shaze of the cost will be determined annually by the Employer. If there is an increase or • decrease in your shaze of the cost during the plan yeaz, the Employer may on a reasonable and 3nnooz~a 1 ~J' • consistent basis, automatically make a prospective increase or decrease in your salary reduction contribution. HEALTH CARE REIMBURSEMENT If you elect to participate in the Health Caze Reimbursement Benefit, contributions you designate will be credited to a bookkeeping account on your behalf. This account will be used to reimburse you for eligible health caze expenses for you and your dependents that are not reimbursed by insurance. Eligible Health Care Expenses You may use your Health Care Reimbursement Account to be reimbursed for most of the "out-of- pocket" expenses you incur for medical caze. Allowable expenses for medical caze include: • Medical and dental expenses which aze covered but not paid by insurance (deductible amounts paid before benefits begin and the percentage of chazges not covered) • Vision and hearing expenses including examinations, eyeglasses, contact lenses, laser eye surgery, hearing aids and seeing-eye dogs Fees paid to doctors, chiropractors and hospitals • • Dental caze including orthodontia Routine physical examinations, x-rays and lab fees Prescription drugs including insulin and birth control pills • Special equipment bought or rented because of a physical problem (wheelchairs, crutches, orthopedic shoes, etc.) • Ambulance service and other transportation costs necessary to receive medical caze Other expenses which would otherwise qualify as legitimate medical caze deductions for federal income tax purposes excluding premiums you pay for health insurance Medical expenses that are reimbursed by insurance, insurance premiums, and expenses for long term caze aze not eligible. Insurance premiums your spouse pays through his/her employer will not be reimbursed through this account. Expenses for which you aze reimbursed through your Account may not be claimed as deductions for income tax purposes. Maximum Heath Care Reimbursement The maximum amount you may elect for the Health Care Reimbursement Account is shown in the • Definitions section at the end of this document. The amount available for reimbursement is limited to the amount that you designated as your contribution for the Plan Year and is not limited to snnooz~a 2 ~~~ • contributions that have been made to your Account at the time of reimbursement. You may submit requests for reimbursement up to 90 days following the end of the Plan Yeaz. Termination of Employment and Leave of Absence If your employment terminates, or you take an unpaid leave of absence, eligible expenses incurred prior to your separation will be reimbursed up to the amount remaining of your annual election. Eligble expenses incurred after your separation will be reimbursed only if you elect to continue contributions and benefits. Your rights to legally mandated continuation coverage aze described in the COBRA Continuation Notice found at the end of the section. The Employer may also allow continuation coverage for participants, even if it is not legally mandated. A description of the Employer's specific policy is contained in the Definitions section of this document. If you elect to continue benefits, you must make the required payments in a timely manner. If you take an unpaid leave of absence under the provisions of the Family and Medical Leave Act ("FMLA"), and do not return to employment following the end of the leave, your coverage will terminate at the end of the FMLA leave. At that time, you may have the right to continue benefits as described in the COBRA Continuation Notice found at the end of this section. If your leave of absence is due to a period of duty in the Uniformed Services of the United States and lasts more than 31 days, you may also continue this coverage. COBRA Continuation Notice • Federal law requires that most employers sponsoring group health plans offer employees and their families the opportunity for a temporary extension of health coverage (called "continuation coverage) in certain instances where coverage under the plan would otherwise end. This notice is intended to inform you, in a summary fashion, of your rights and obligations under the continuation coverage provisions of the law. You and your spouse should take the time to read this notice cazefully. As an employee electing to participate in the Health Caze Reimbursement Optional Benefit, you may have a right to choose this continuation coverage if you lose your coverage because of a reduction in hours of employment or the termination of your employment (for reasons other than gross misconduct on your part), or if you aze a retiree, because your employer has filed for Chapter 11 reorganization. If you aze the spouse of an employee covered by the Health Caze Reimbursement Optional Benefit, you may have the right to choose continuation coverage under the plans for any ofthe following four reasons: 1) The death of your spouse; 2) The termination of your spouse's employment (for reasons other than gross misconduct) or reduction in your spouse's hours of employment with the Employer; • 3) Divorce or legal sepazation from your spouse; or 3nnooz~a 3 ~~~ 4) Your spouse becomes enrolled for Medicare benefits. In the case of a dependent child of an employee covered by the Health Caze Reimbursement Optional Benefit, he or she may have the right to continuation coverage if coverage is lost for any of the following five reasons: 1) Death of a pazent; 2) The termination of a pazent's employment (for reasons other than gross misconduct) or reduction in pazent's hours of employment with the Employer; 3) Pazents' divorce or legal separation; 4) A pazent becomes enrolled for Medicare benefits; or 5) The dependent ceases to be a "dependent child" under the Flexible Benefit Plan. For purposes of the above continuation provisions, dependent child includes a child bom to, adopted by or placed for adoption with the covered employee during the period of continuation coverage provided that the covered employee has elected continuation coverage. Under the law, the employee or a family member has the responsibility to inform the Employer of a divorce, legal separation, a child losing dependent status or Medicaze emolhnent under the Health Caze Reimbursement benefit within 60 days of the qualifying event. The Employer will be awaze of the employee's death, termination of employment or reduction in hours without notice from the employee. When the Employer is notified or becomes awaze that one of these events has happened, the Employer will in turn notify you that you have the right to choose continuation coverage. Under the law, you have 60 days from the date you would lose coverage because of one of the events described above (or 60 days from the date you are provided with your continuation notice, if later) to inform the Employer that you want continuation coverage. You will have the right to continuation coverage in the event that the maximum amount of your required continuation payment for the remainder of the Plan Yeaz does not exceed the maximum amount that you may receive in reimbursements from your health caze reimbursement account for the remainder of the Plan Year. You may also have the right to continuation coverage under other circumstances if your Employer has adopted such a policy. The policy adopted by your Employer is shown in the Definitions section of this document. The monthly cost for continuation coverage may not exceed one-twelfth of your election to the • Health Caze Reimbursement Optional Benefit plus a two percent administrative surchazge. For example, if you elected $600, your monthly continuation cost would be $51.00 [(600/12) x 1.02]. snnooz~a 4 y ~~ • The Employer will provide you with the appropriate cost information if you become eligible for continuation coverage. If you do not choose continuation coverage, your Health Caze Reimbursement coverage will end. If you choose continuation coverage, the Employer is required to give you coverage which, as of the time wverage is being provided, is identical to the coverage provided for Health Caze Reimbursement benefits to similazly situated employees or familymembers. Eachperson eligible for continuation coverage may elect that coverage separately. However, the law also provides that your continuation coverage may be cut short for any of the following reasons: 1) The Employer no longer provides health caze reimbursement benefits to any of its employees; 2) The premium for your continuation coverage is not paid in a timely fashion; 3) You become enrolled in Medicaze; or 4) You elect this continuation coverage and then you become covered under another health caze reunbursement plan which does not contain any exclusion or limitation with • respect to apre-existing condition that applies to you. You do not have to show that you aze insurable to choose continuation coverage. However, under the law, you may have to pay a premium for your continuation coverage. The first payment will be due within 45 days after the date you initially elected continuation coverage. Thereafter, payments will be due on the fast day of each month, and coverage will terminate on the due date if payment is not received within 30 days after the due date. If you have any questions about the law, please contact the Employer at the address shown on the General Information page at the end of this document. Also, if you have changed marital status, or you or your spouse have changed addresses, please notify the Employer at this same address. You may also have rights under state law to continuation coverage under medical, dental and group term life insurance plans offered by the Employer, if any. Please see the medical, dental and group term life insurance plan Summary Plan Description(s) for more detailed information. DEPENDENT CARE REIMBURSEMENT If you elect to participate in the Dependent Caze Reimbursement Benefit, contributions you designate will be credited to a bookkeeping account on your behalf. Expenses for dependent caze that aze considered employment-related expenses aze eligible for reimbursement from your Account. 3nnaoz~a y~~ Eligible Dependent Care Expenses Eligible dependent care expenses aze those costs that you incur for caze ofyour dependents (i.e. day caze) that enable you and your spouse if you aze married, to work. If you aze marred, your spouse must be gainfully employed, afull-time student, or incapable of self-caze. Eligible dependents are: your dependent children under age 13; or a spouse or another dependent whose principal residence is your home, who is dependent on you for more than half of his or her support and who is mentally or physically unable to caze for himself or herself. Your eligible dependents may receive caze from a babysitter, dependent caze center or someone who comes to your home. However, expenses for caze of a dependent outside the home aze eligible only if the qualifying individual normally spends at least 8 hours per day in your household. If you utilize a caze provider which Gazes for more than six nonresident persons, the caze provider must be licensed and comply with all applicable state andlocal laws. The types of expenses that aze not reimbursable include caze that is primarily educational or medical in nature, education at the kindergarten level or higher, the cost of transportation to and from the care • facility and any portion of the cost for overnight camp. Household service expenses for food, clothing or entertainment (unless they aze incidental to care) are not eligible. Also, services provided by your child under age 19 (or someone you can claim as a dependent on your tax return) are not reimbursable. Maximum Dependent Care Reimbursement The maximum reimbursement you can get from your Dependent Caze Reimbursement Account is $5,000 per Plan Year. This will be paid to you on a pre-tax basis (without income tax or FICA tax withholding). However the tax benefit from these reimbursements is subject to limitations. You will be required to declaze on your income tax return the amount of reimbursement, if any, that exceeds certain limits that are imposed by the tax laws. For example, the maximum reimbursement in a calendar year is $5,000 or $2,500 ifyou aze mazried and file a separate return. In addition, your tax- free amount may not be more than whichever of the following limitations apply to you: If you aze single, your earned income (after salary reduction) for the yeaz the expenses were incurred; or If you aze married and your spouse is working, your earned income (after salary reduction), or the earned income of your spouse, whichever is less, for the yeaz the expenses were incurred. • For purposes of applying the earned income limit, eazned income generally means income from employment (such as wages, salaries, tips, etc.). If you aze married and your spouse is either a full- 3~7l2002v4 0 1~~ • time student or is physically or mentally incapable of caring for himself or herself, you must assume an earned income of no more than $200 in any one month ifyou have only one qualified dependent, or $400 in any one month ifyou have more than one qualified dependent. Termination of Employment If your employment terminates or you take an unpaid leave of absence, you may submit requests for reimbursement of dependent caze expenses incurred during the Plan Yeaz up to 90 days following the close of the Plan Year, provided however that the dependent care expenses were incurred before the last day of the Plan Yeaz. Eligible dependent caze expenses incurred after your sepazation but before the end of the Plan Year will be reimbursed up to the amount remaining in your Account. Dependent Care Tax Credit You cannot claim a Federal Dependent Care Tax Credit on your income tax return for dependent care expenses reimbursed from this Account. Also, amounts reimbursed through this Account will reduce, dollar for dollaz, the maximum expenses available for determining the tax credit. In general, the Dependent Care Tax Credit allows you to reduce the amount of federal income taxes you owe by giving you a credit against your tax liability. The amount of the credit is a percent of eligible dependent caze expenses. The percentage varies from 20% to 35% depending on your adjusted gross income. The amount of eligible expenses toward which the credit can be applied is limited to the lesser o£ 1) $3,000 for one child ($6,000 for two or more children), or 2) the earned income of the lower earning spouse. In certain cases, it maybe more advantageous for you to claim a tax credit for your dependent caze expenses rather than pay for those expenses through a dependent care reimbursement account. You may want to consult your tax advisor. Following are some very rough "rules of thumb." If you aze married filing a joint return and have two or more qualifying dependents, your family adjusted gross income will probably need to exceed $39,000 before the dependent care FSA will yield greater tax savings than the tax credit. Also remember that because the limit on eligible expenses for the tax credit is $6,000, many individuals who use the dependent care FSA for the full $5,000 will be able to use the tax credit on qualifying expenses in excess of $5,000 (up to the $6,000 limit). Ifyou have only one qualifyingdependent and your eligible expenses exceed $3,000, the Dependent Caze FSA may yield greater tax savings, even at lower income levels. Eligible dependent caze expenses for one dependent aze limited to $3,000 for purposes of the tax credit and $5,000 purposes of the Dependent Caze FSA. Finally, you should be awaze that you will be required to report the name, address and tax identification number of your dependent caze provider on your tax return if you use either the tax • credit or the Dependent Care Reimbursement Optional Benefit. 3nnooz.~a 7 ~~ • ENROLLMENT AND ADMINISTRATION Election Process Each yeaz you will have the opportunity to re-enroll in the Plan. Reimbursement account elections do not carry forwazd from one yeaz to the next. Elections must be in writing on the form provided and received prior to the fast day of the period of coverage. Lf you fail to return the required election form, you will receive the Deemed Election shown in the Definitions section at the end of this document. Election Changes Once an election becomes effective, it stays in effect until the following Plan Yeaz. You may not change your election during the Plan Yeaz except under the following circumstances. 1) You may revoke an election and make a new election for the remainder of the Plan Yeaz if a change in status occurs and the election change satisfies the consistency rule defined below. A new election must be filed within thirty (30) days after the date of the change in status and will be effective on the Status Change date shown in the Definitions section at the end of this document. A change in status means any of the following: • Change in your legal marital status due to marriage, divorce, death of a spouse, legal • separation or annulment. • Change in the number of your dependents because of birth, adoption, placement for adoption, or death. • Change in the employment status of you or your dependent such as termination or commencement of employment, strike or lockout, commencement or return from an unpaid leave of absence, change in work site. In addition, if you or your dependent has a change in employment status that affects eligibility under an employer plan, that is a change in status. • Events that cause a dependent to satisfy or cease to satisfy eligibility requirements of an employer plan such as gain or loss of student status, reaches the limiting age for benefits or any similar circumstance. • Change in residence of you or your dependent. The consistency rule requires that any election change must be due to and con espond with a change in status that affects eligibility for coverage under this plan or another employer's plan. With respect to accident or health plans, a change in status that affects eligibility includes a change in status that results in an increase or decrease in the number of dependents who may benefit from coverage under the plan. The consistency rule requires that coverage be added or dropped only for an individual who has gained or lost eligibility. Further, an election change to cancel coverage for an individual who gains eligibility under another employer plan satisfies the consistency rule only if that individual actually becomes covered • under such plan. If you or one of your dependents become eligible for continuation coverage 3nnaoz~a ~-1 ~~ • under COBRA or any similaz state law, you may increase the amount of your Premium Conversion election to pay such premiums. 2) You may revoke an election under a group health plan and make a new election on a prospective basis that corresponds with the special enrollment rights provided by the Health Insurance Portability and Accountability Act of 1996 (HIPAA), including the enrollment of both new and pre-existing dependents. 3) If you take an FMLA Leave, you may revoke an election for group health coverage and make another election for the remaining portion of the period of coverage as may be provided for under the Family and Medical Leave Act. 4) You may change your election with respect to an accident or health plan if you aze required to provide coverage for a child due to a court order, judgment or decree resulting from a divorce, legal separation, annulment, or change in legal custody. You may cancel or terminate coverage for the child under the plan if the court order or decree requires your former spouse or another person to provide coverage for the child but only if you or your former spouse or another person subject to the order certifies that such coverage is in fact provided. 5) If you or a dependent becomes enrolled for Medicaze or Medicaid benefits (other than • coverage limited to benefits for distribution of pediatric vaccines), you may make a corresponding election change to cancel accident or health plan coverage under this Plan for yourself or the dependent. Conversely, if you or your dependent is not enrolled in an employer-sponsored accident or health option under this Plan because you were enrolled to receive Medicaze or Medicaid benefits and later become ineligible for such benefits, you may make a corresponding election change to elect coverage for yourself, or your dependent. 6) If there is a change in the cost or coverage of a benefit (excluding the Health Caze Reimbursement Account), you may revoke your election with respect to that benefit and make a new election for the remainder of the plan year. Changes in cost or coverage include the following: • Automatic changes - If the cost of a benefit you are purchasing with Premium Conversion increases (or decreases) during the plan yeaz and you aze required to make a corresponding change in your election, the Employer may, on a reasonable and consistent basis, automatically make a prospective increase (or decrease) in your elections. • Significant cost changes - If the cost of a benefit option significantly increases or decreases during the plan yeaz, you may make a corresponding prospective election change. You may commence participafion in an option that decreases in cost. You may revoke an election for an option that increases in cost and, if another option that provides similar coverage is available under the plan, elect to receive coverage under that option. Cost increase or decrease for this purpose means a change in the amount of the elective contributions required under this plan, and may result from actions taken by you or the Employer. With respect to the dependent caze reimbursement only, a dependent care snnaoz~a ~Il~ provider who is not your relative may impose a change in cost which permits you to make a new election. • Significant curtailment of coverage - ff there is a significant curtailment of coverage under a benefit option, you may revoke your election and receive coverage on a prospective basis coverage under another option providing similaz coverage. If the curtaihnent of coverage involves a loss of coverage, you may drop coverage if no other similaz benefit option is available under the plan. A significant curtailment with a resulting loss of coverage includes: HMO not available in geographic area of residence, coverage not helpful because lifetime or annual cap has been reached, a substantial decrease in medical care providers in a PPO network or HMO, a hospital dropping out of the plan or network, reduction in benefits for a certain illness or injury in which a participant or family member is currently in a course of treatment, an increase in deductible, copay, out-of-pocket cost-sharing limit or any other similaz fundamental loss of coverage. • Addition or improvement of a benefit option - If a new benefit option is added to the plan, or if coverage under an existing option is significantly improved during the plan yeaz, you may revoke your election and elect coverage under the new or improved benefit option on a prospective basis. • Change in coverage under another employer plan -You may make an election change that is on account of and corresponds with a change made by your dependent or former spouse under another employer plan if: a.) the dependent's or former spouse's election • change would be allowed under this plan, or b.) the dependent's or former spouse's employer plan permits an election for a plan yeaz that is different from the plan year for this plan. • ~,oss of coverage under other group health coverage -You may add coverage on a prospective basis if you or your dependent loses coverage under a group health plan sponsored by a governmental or educational institution. If you are a new employee, you may file an election a8er meeting the Waiting Period shown in the Definitions section at the end of this document. If you have been on an FMLA Leave or absent due to a period in the Uniformed Services, that leave time will count towazd your satisfaction of the service requirement. New employees must make elections within 30 days of the satisfaction of the Waiting Period or they will receive the Deemed Election shown in the Definitions section. Reimbursement Accounts and Account Forfeiture Each time you aze paid, contributions you allocate for Health Care Reimbursement or Dependent Care Reimbursement aze recorded in a health caze account or dependent caze account on your behalf. Note these accounts aze for bookkeeping purposes only; no money is actually held in the accounts. You may submit claims incurred during a Plan Yeaz for up to 90 days after the end of the Plan Yeaz. Any balance remaining in vour accounts} after this date cannot be paid to you or carried forward into the next Plan Year. You should therefore carefully anticipate vour needs for the year before • determining the amount of vour election. These forfeitures will be used to offset the reasonable administrative expenses of the Flexible Benefit Plan. snnooz~a 10 y~~ • Submitting Reimbursement Account Claims In order to be reimbursed, eligible reimbursement account expenses must have been incurred during the Plan Year while you aze a participant in the Optional Benefit. Expenses aze considered incurred on the date the services were provided. You may not receive advance reimbursement for future or projected expenses. Eligible health care claims will be reimbursed up to the full amount of your election, reduced by previously paid claims. Eligible dependent care claims will be reimbursed up to the balance in your account at the time reimbursement is requested. You request reimbursement from your account by submitting a claim form and documentation showing the amount, date the expense was incurred, nature of the expense and the name of the provider. You must include bills, invoices, receipts, or other statements from an independent third party verifying expenses. In addition, you must certify that the expense has not been reimbursed or is not reimbursable under any other plan. To be reimbursed for health care expenses, ifthe expense is covered by medical insurance, you must first submit the expenses to your insurance company to obtain whatever reimbursement is available from that source. The Plan Administrator will make a detemvnation on claims submitted for reimbursement within 30 days of receipt unless a determination cannot be made due to reasons beyond the control of the Plan Administrator. In this case a 15 day extension is available if you aze notified of the extension within the initia130 day period. If a detemunation on a claim cannot be made because you did not provide • sufficient information, you have 45 days from receipt of a request to provide the required information. Requests for reimbursement may be submitted for up to 90 days following the close ofthe Plan Year in which the expenses are incurred. You will be reimbursed directly. Payments will not be made to providers. Your Employer does not guarantee that the amounts reimbursed through this Account will be excludable from gross income for federal or state income tax purposes. It is your responsibility to determine whether or not each payment you receive is a qualified excludable expense. You may wish to consult a tax advisor for assistance. Reimbursement Account Claim Denial If your reimbursement account claim is denied, you will receive notice in writing, stating the specific reasons for the decision. If you do not agree with the decision, you can request that the decision be reviewed by filing a written request with the Plan Administrator for review within 180 days after receiving notice that the claim has been denied. The Plan Administrator will review your appeal and ave you written notice of a final decision within 60 days after receiving a request for review. Unpaid Leave ojAbsence If you take an unpaid leave of absence (including an FIvILA Leave or USERRA Leave), at your option you may continue any or all of your benefits under the Plan as long as you make the required contributions. You have the option of making contributions in the following ways: r~ snnooz~a 11 ~~ • 1) AFTER-TAX PAY AS YOU GO: You can make after-tax payments to the Employer on or before each pay period (when contributions would have been taken). Any delinquent payments must be made within 30 days of their due date; or 2) PRE-TAX PAY AS YOU GO: You can make pre-tax payments during your leave out of any payments you receive during your leave, such as vacation pay, sick pay, wage continuation; or Payments made under option 2) will be made on a pre-tax (that is, salary reduction) basis. All salary reduction contributions must be made within the same Plan Yeaz in which the leave began. In addition, the Employer may enforce the catch-up Pay On Return option if you fail to make agreed upon pay-as-you go payments, regazdless ofwhether or not an agreement was made in advance of the leave, to the extent permitted by state law. If your participation in the Plan terminates during an unpaid leave of absence and you return from leave during the same Plan Yeaz, your election for that Plan Yeaz will be automatically reinstated unless you revoke it in accordance with election change rules described above. If your coverage under a FSA terminates during an unpaid leave (either because of election revocation or non- payment ofpremium) you have two options: reinstate the original amount elected prior to the leave, and make up the missed contributions through higher salary reductions for each remaining payroll • period during the plan yeaz, or reduce the original election amount by the contributions missed during the leave, maintaining the same level of salary reduction for subsequent payroll periods. In either case, expenses incurred while coverage was not in effect aze not reimbursable. These same options apply if your leave of absence is due to a period of duty in the Uniformed Services of the United States and that duty lasts more than 31 days. Plan Amendment and Termination The Flexible Benefit Plan has been designed to comply with all current laws regarding flexible benefit plans. The Employer may change, amend or terminate the Plan, or any portion thereof, at any time. If the Plan is terminated, you will not lose your right to benefits accrued prior to Plan temunation. This Summary Plan Description merely summarizes the benefits provided pursuant to the Plan, and is not the legally controlling document. All determinations regazding benefit entitlement and Plan provisions are based upon the actual Plan documents, which aze available for inspection at the office of the Plan Administrator. snnaoz~a 12 ~~ GENERAL INFORMATION • Name of Plan: City of Hutchinson Flexible Benefit Plan Plan Sponsor: City of Hutchinson 111 Hassan Street SE Hutchinson, MN 55350 Plan Administrator: City of Hutchinson 111 Hassan Street SE Hutchinson, MN 55350 320-587-5151 Employer Identification Number: 41-6005253 Plan Number: 502 Type of Plan: The Flexible Benefit Plan is a cafeteria plan under Section 125 of the Internal Revenue Code, allowing a choice between cash and certain qualified benefits. The Plan is unfunded, with contributions and benefits paid out of the general assets of the Employer and therefore has no trustee. Plan Yeaz: January 1 through December 31 Funding: Reimbursement account benefits aze entirely self-funded by the Employer, through salazy reduction contributions. The medical, dental and group term life insurance coverage purchased through the Premium Conversion option of this Plan is provided through insurance contracts, though the Premium Conversion benefit under this Plan is not insured. For questions or service of legal process contact the Plan Administrator at: Attn: Finance Director City of Hutchinson 111 Hassan Street SE Hutchinson, MN 55350 320-587-5151 • 3nnooz~a 13 a~~ STATEMENT OF RIGHTS OF PARTICIPANTS As a participant in the medical reimbursement plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (FRIBA). ERISA provides that all plan participants shall be entitled to: 1) Receive Information About Your Plan and Benefits Examine, without charge, at the plan administrator's office and at other specified locations, such as worksites and union halls, all documents governing the plan, including insurance contracts and collective bargaining agreements, and a copy of the latest annual report (Form 5500 Series), if any, filed by the plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Pension and Welfare Benefit Administration. • Obtain, upon written request to the plan administrator, copies of documents govemmg the operation of the plan, including insurance contracts and collective bazgaining agreements, and copies of the latest annual report (Form 5500 Series) and updated summary plan description. The administrator may make a reasonable chazge for the • copies. • Receive a summary of the plan's annual financial report. The plan administrator is required by law to furnish each participant with a copy of this summary annual report. 2) Continue Group Health Plan Coverage Continue health care coverage for yourself, spouse or dependents if there is a loss of coverage under the medical reimbursement plan as a result of a qualifying event. You or your dependents may have to pay for such coverage. Review this summary plan description and the documents governing the plan on the rules governing your COBRA continuation coverage rights: Prudent Actions by Plau Fiduciaries In addition to creating rights for plan participants ERISA imposes duties upon the people who aze responsible for the operation of the employee benefit plan. The people who operate your plan, called "fiduciaries" of the plan, have a duty to do so prudently and in the interest of you and other plan participants and beneficiaries. No one, including your employer, your union, or any other person, may fire you or otherwise discriminate against you in any way to prevent you form obtaining a welfaze benefit or exercising your rights under ERLSA. 3nnooz~a 14 ~~~ • Enforce Your Rights If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without chazge, and to appeal any denial, all within certain time schedules. Under ERLSA, there are steps you can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the plan and do not receive them within 30 days, you may file suit in a Federal court. in such a case, the court may require the plan administrator to provide the materials and pay you up to $110 a day until you receive the material, unless the materials were not sent because of reasons beyond the control of the administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court. In addition, if you disagree with the plan's decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may file suit in Federal court. ff it should happen that plan fiduciaries misuse the plan's money, or if you aze discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you aze successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. Assistance with Your Questions • If you have any questions about your plan, you should contact the plan administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the plan administrator, you should contact the neazest office of the Pension and Welfaze Benefits Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Pension and Welfaze Benefits Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Pension and Welfaze Benefits Administration. C~ J 3nnooz~a 15 y ~~ ~J DEFINITIONS Eligible Employee: A full-time employee of the Employer who is regularly scheduled to work an average of at least 30 hours per week. Apart-time employee of the Employer who is regulazly scheduled to work more than 20 hours per week. Waiting Period: Eligible Employees may begin participation on the first day of the month following their date of employment Maximum Salary Reduction Contribution: $8,500 plus the amount necessary to fully pay the participant's portion of the cost for benefits under the Premium Conversion Optional Benefit. Premium Conversion Plans: Participants may elect to use Premium Conversion to pay for the • cost of the following benefits: Medical, Dental, Group Term Life. Maximum Health Care Reimbursement Account: You can allocate any amount you wish to a Health Care Reimbursement Account up to a maximum of $3,500. Health Care Reimbursement Continuation Coverage: Continuation coverage will be made available only if the amount of required payments for the remainder of the Plan Year does not exceed the maximum amount available to the Participant or Qualified Beneficiary for reimbursement for the remainder of the Plan Yeaz. Maximum Dependent Care Reimbursement Account: • snnooz~a You can allocate any amount you wish to a Dependent Caze Reimbursement Account up to a maximum of $5,000. See the Dependent Care Reimbursement section of this document for other restrictions on the amount of this election. 16 ~t~ • Deemed Election: Anew Eligible Employee who fails to return the required enrollment form will be deemed to have elected to receive all of his or her compensation in cash. Any premiums will be paid on an after-tax basis; no Reimbursement Accounts will be established. All other Eligible Employees who fail to return the required enrollment form will be deemed to have elected continued participation in the Premium Conversion Optional Benefit, if applicable. No Reimbursement Accounts will be established. Status Change: An election made as the result of a status change will be effective on the fast day of the payroll period, following receipt of the election form by the Plan Administrator. However, an elecfion change made due to a special enrollment right in the Health Insurance Portability and Accountability Act of 1996 will be effective as of the date requirefl by that Act. • • snnooz~a 17 ~~ • Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350.2522 320.587-5151/Fax 320234-4240 lti'f ~ ~~,~_ ~ ~ ~~ I°r 17+ t1 ~'~ TO: Mayor and City Council FROM: John P. Rodeberg, Duector of Engineering/Public Works RE: Consideration of Revising State Aid Street System DATE: 11/6/2002 Attached please find two resolutions that revise the Municipal State Aid (MSA) Street System for the City of Hutchinson: • Resolution Establishing State Aid Streets (Edmonton Avenue SE and Golf Course Road NW) ^ Resolution Revoking State Aid Streets (1°` Avenue NE) Edmonton Avenue SE is the extension of Edmonton Avenue from the traffic signal on State Highway 15 South (neaz Menards) to the east to Jefferson Street. This route is approximately 0.87 • miles long, and it would act as a Major Collector for the newly developing SE area of town. It will specifically serve the Menazds Addition, Summerset Addition and the proposed development on the former Shimek property. We aze proposing to construct a portion ofthis route next yeaz (Menazds to Summerset Addition). This dedication would allow the use of State Aid funds for the project. Golf Course Road NW is an extension of the existing Major Collector route that would connect to State Highway 7 on the west side of Modem Mazda. This route was designated several years ago by the County prior to transfer of the route to the City. This 0.3 mile addition would provide a major transportation link to that portion of the City, and allow a utility corridor to serve the north-central area of the City. 1°` Avenue NE has been on the MSA system for decades. This section was reconstructed in the eazly 1990's as part ofthe Downtown redevelopment (ShopKo and EconoFoods) without using State Aid funds. This route was narrowed and does not meet State Aid standards. There is no benefit to keep this route on the system. We need to revoke this mileage in order to have enough extra miles to establish Edmonton Avenue NE and Golf Course Road NW. We recommend approval of the two attached Resolutions, including forwarding copies to the Commissioner of Transportation for his consideration and approval. • Printed on acycled pope[ - ~ ~\ \ RESOLUTION NO. 12069 • RESOLUTION REVOHING MUNICIPAL STATE AID (MSA) STREET WHEREAS, it appears to the City Council of the City of Hutchinson that the street hereinafter described should be revoked as a Municipal State Aid (MSA) Street under the provisions of Minnesota Law. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA that the road described as follows, to-wit: Route No Street Name Termini Mileaee 133-111-020 ls` Avenue NE Hassan Street NE to Jefferson Street NE 0.07 miles 133-111-030 19` Avenue NE Jefferson Street NE to Bluff Street NE 0.09 miles TOTAL ROUTES 0.16 miles be, and hereby is, revoked as a Municipal State Aid (MSA) Streets of said City, subject to approval of the Commissioner of Transportation of the State of Minnesota. • BE TI' Fi JRTHER RESOLVED, that the City Administrator is hereby authorized and directed to forward two certified copies of this resolution to the Commissioner of Transportation for his consideration. Adopted this 12th day of November 2002, by the City Council of Hutchinson, Minnesota. Mayor -Marlin Torgerson City Administrator -Gary D. Plotz eu,oor ma Msnwem~ewwae imn~ rEOOc r L J y~~) • RESOLUTION NO. 12070 RESOLUTION ESTABLISHING MUNICH'AL S'I ATE AH) (MSA) STREET WHEREAS, it appears to the City Council of the City of Hutchinson that the street hereinafter described should be designated a Municipal State Aid (MSA) Street under the provisions of Minnesota Law. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA that the road described as follows, to-wit: Edmonton Avenue SE from State Highway 15 to Jeffffersoo Street (McLeod CSAH 25) Golf Course Road NW [rom Golf Coarse Road (e.k.a. Soh Avenue NW) to TH 7/22 be, and hereby are established, ]ocated, and designated Municipal State Aid (MSA) Streets of said City, subject to approval of the Commissioner of Transportation of the State of Minnesota. BE IT FURTHER RESOLVED, that the City Administrator is hereby authorized and duected to forward two certified copies of this resolution to the Commissioner of Transportation for his consideration, and that upon his approval of the designation as MSA Streets of the City of Hutchinson to be numbered as noted below: • Route No Street Name Termini Mileage 133-131-030 Edmonton Avenue SE TH 15 to Montreal Street 0.08 miles 133-131-040 Edmonton Avenue SE Montreal St to Jefferson St (CSAH 25) 0.79 miles 133-128-070 Golf Course Road NW Current Golf Course Road to TH 7/22 0.28 miles TOTAL ROUTE 1.15 miles Adopted this 12th day of November 2002, by the City Council of Hutchinson, Minnesota. Mayor -Marlin Torgerson City Administrator - Gary D. Plotz I'.U1nDOT mN MSAV2ta~INioy\F,hrovue MSA Rmlutimi.DDC • y «~ ~ CITY OF HUTCHINSON MEMO Finance Department November 4, 2002 TO: MAYOR & CITY COUNCIL FROM: REN MERRILL, FINANCE DIRECTOR SUBJECT: BUDGET iVORRSHOP I would request the City Council set a workshop for budget review for Tuesday, November 26, at 4 p.m. H:\DOC\City council memo l.doc • ~~,~~ City of/ Hutchinson City Center (( m n~„sn~~sE • ° Hu[ehlnsoq MN 5535a7522 3zass7-sisveex 3zaz3a-auo TO: Mayor and City Council FROM: John P. Rodeberg, Director of Engineering/Public Works Randy DeVries, Director of Water/Wastewater/Resource Recovery • RE: Consideration of Consulting Agreement with Earth Tech for Water Treatment Plant Pilot Testing DATE: 11/7/2002 Attached please find a copy of the contract for the above referenced work. The outline for this work was presented to the Council at the Workshop on October 22°a Please note in addition to the pilot testing work previously discussed, this contract also includes preliminary design services after the pilot testing to help develop more detailed floor plans and project cost estimates. We recommend approval of the contract at a total cost of $191,200. Pri Med on recycled paper - / C\ • • November 6, 2002 Dick Nagy, Water System Supervisor City of Hutchinson 111 Hassan Street SE Hutchinson, MN 55350-2522 Re: Engineering Services Proposal WTP Pilot Testing & Design Services Deaz Mr. Nagy: Earth Tech offers the attached engineering services proposal for your consideration. This proposal includes the piloting and design services we discussed with the City Council at their workshop on October 22, 2002. As discussed at the Council Workshop, we were successful in negotiating equipment pricing to get the basic pilot testing below $150,000. Design documentation and project reporting bring the cost to $191,200. Throughout the project, we will prepaze four reports documenting the efforts, including 1) Pilot Protocol Report; 2) Pilot Testing Report; 3) Design Documentation Report with facility layouts and costs; and 4) a Project Summary Report for general distribution and use in public presentations. We trust this proposal meets your needs and expectations. Please contact our office if you have any questions or wish to review the proposal in additional detail. Very truly yours, Earth Tech, Inc. Scott L. Youog, P.E. Section Manager enc.: Engineering Services Proposal Draft Pilot Protocol cc: John Rodeberg, Director of Engineering & Public Works Randy DeVries, Director of Water, Wastewater & Resource Recovery E A fl T H `) T E C H ~~~~ ENGINEERING SERVICES PROPOSAL WTP PILOT TESTING & DESIGN SERVICES Hutchinson, Minnesota Project Background Earth Tech completed a `Water Treatment Study", dated December 2001, for the City of Hutchinson recommending a membrane treatment facility utilizing reverse osmosis to meet the City's desired water quality goals. The report also indicates that biological filtration could be used to enhance ammonia removal from the source water Subsequent reviews of the repoR, by others, agree that reverse osmosis and biological filtration are feasible treatment systems to address source water ammonia and copper corrosion, which aze the two key treatment issues for the City of Hutchinson. Prior to proceeding to detailed design For such a facility, pilot testing is recommended to: 1. determine the need for pretreatment prior to the membranes. 2. refine design parameters and system schematic. 3. refine chemical feed requirements and other operating parameters. 4. minimize overell project costs. Project Overview Earth Tech proposes to complete the WTP Pilot Testing & Design Services project as a joint effort with the City of Hutchinson, equipment suppliers and our staff. The project is scheduled to be completed within 12 months and will result in a recommended design schematic and facility layout, complete with an estimate of probable construction cost and operating expenses. Two pilot units will be operated during the project, including a reverse osmosis unit with membranes suitable for hardness and ammonia reduction end a biological filtration unit For iron, manganese and ammonia removal Results from the pilot testing will be augmented with water quality simulations to project the final effluent water quality of the combined treatment streams. Results from the pilot testing will be used to refine the design schematic for the proposed facility. The schematic will serve as the basis for a preliminary facility layout, resulting in an estimate of probable constmction cost for the project. Major Tasks include: 1. Pilot Protocol Definition 2. Equipment Installation & Start-up 3. Pilot Testing & Data Analysis 4. Design Documentation 5. Project Reporting & Meetings • E A H T H V T ! C H gc~~ WTP Pilot Proposal November 6, 2002 Page 2 of 5 Scope of Services Earth Tech proposes to complete the following Scope of Services for the Fees listed and within the Schedule proposed later m this document. Task 1-Pilot Protocol DeSnitlon 1.1 Develop the pilot testing protocols using membrane filtration for hazdness and ammonia reduction and biological filtration for iron, manganese and ammonia reduction. 12 Assign responsibilities for equipment selection & procurement, installation & start-up services, pilot operations, sampling and testing, as well as equipment shutdown and return shipping. 1.3 Establish sampling protocols and frequency to acquire necessary data to determine the effectiveness of the process systems, effluent quality, waste stream characteristics and operating parameters. 1.4 Provide draft protocols to City staff and the Minnesota Department of Health (MDH) for review sod comment. Finalize protocols within 2 weeks of comments. 1.5 Order pilot testing equipment and coordinate delivery requirements. 1.6 Establish preliminary monitoring requirements, including raw water dissolved oxygen (DO) and oxidation reduction potential (OItP), and coordinate implementation with City staff. Task 2 -Equipment Insta11at1on & Start-up 2.1 Provide up to forty (40) hours of assistance with equipment installation, up to twenty-Four (24) of which may be provided on-site. 2.2 Provide up to forty (40) hours of assistance with equipment start-rrg up to twenty-four (24) of which may be provided on-site. 2.3 Coordinate supplier- and City-provided services for installation and start-up. Task 3 -Pilot Testing & Data Analysis 3.1 Provide as-needed telephone support to City staff for the anticipated four (4) month pilot testing period. 3.2 Provide weekly site visits by the project engineer/technician to monitor pilot equipment, review performance matters with City staff operating the facility, and suggest modifications to the system operations and protocol. • E A H T N` J T E C N ~~c~ WTP Pilot Proposal November 6, 2002 Page 3 of 5 • 3.3 Provide monthly site visits by [he senior process engineer to review pilot testing performance with City staff, address potential changes to the established protocol and recommend modifications to the pilot operations, as necessary and appropriate. 3.4 Compile pilot testing data on a weekly basis and provide monthly updates to City staff for review and comment. Document pilot testing procedures and results in a bound report at the conclusion of the operating period. Task 4 -Design Documentation 4.1 Based upon pilot testing resulu, prepare process flow schematics for the proposed treatment system 4.2 Develop design documentation in sufficient detail to size supply facilities, major equipment items, chemical feed systems, pumping systems, waste handling facilities and administration facilities. 4.3 Prepare preliminary layouts of the proposed facility in cuff cient detail to determine space requirements and potential re-use of existing structures and equipment. 4.4 Prepare an estimate of probable capital costs, operating expenses and indvect costs for the proposed facility. 4.5 Attend up to two (2) review meetings with City staff for presentation of design documentation. • Task 5 -Project Reporting 5.1 Prepare a draft Summary Report of project findings suitable for presentation at a public meeting. 5.2 Submit frve (5) copies of draft Summary Report to City staff for review and attend one meeting to collect comments and schedule Council presentation. 5.3 Finalize Summary Report and submit fifteen (15) copies for City distribution. 5.4 Attend Council W orkshop/Meeting to present Summary Report 5.5 Provide quarterly updates of project findings (previously developed) and present at Council Workshops or Meetings, as considered appropriate by the City. Client Responsibilities The City of Hutchinson shall be responsible for the following services: 1. Assign a Project Manager, who will be the primary liaison with Earth Tech staff during the conduct of the project. This person shall generally provide direction and decisions on behalf of the City. E A p T H `/ T E C X ~~~~ WTP Pilot Proposal November 6, 2002 Page 4 of 5 • 2. Conduct preliminary monitoring, as established in Task 1-Scope of Services, and provide analytical testing results for incorporation into pilot protocol. 3. Provide utility services to the pilot equipment, including power, telephone, water supply taps and piping, and effluent disposal. Earth Tech will coordinate requirements with City staff during Task 1-Scope of Services. 4. Provide staff and services to monitor the pilot equipment on a daily basis, as established in the pilot protocol developed under Task 1 of Scope of Services. S. Provide sampling and analytical services, using in-house or outside laboratories, during the duration of the project 6. Provide background reports and information, as may be available and necessary for the conduct of the projeck Assumptions 1. The "base" pilot testing period includes an anticipated duration of four (4) months from start-up to shutdown. "Extended" pilot testing may require up to 2 additional months if pretreatment is required prior to the membranes. Such "extended" pilot testing would include metal(s) removal filtration prior to the membranes. • 2. The Membrane Pilot Unit includes atrailer-mounted RO skid with booster pumps; filter cartridge; CIP skid; chemical feed pumps and day tanks; influent, effluent and concentrate metering for flow, pressure and conductivity; heating, lighting and communications; and cartridge filters, chemicals and manufacturer suppork Utility requirements include 480 VAC with 100 amp service, 30-50 gpm water supply at lOpsi and a telephone connection. The Biological Filtration Pilot Unit includes dual column media vessels, an oxygen control module and monitoring systems for process control Utility requirements include 120 VAC and a 5 gpm water supply. Fees Earth Tech will complete the Services described above for the fees listed in the following table. "Extended" Pilot Testing will be implemented only upon written approval of City staff: Task Effort Professional Services Ezpenses Total "B e" Pilot Testis $64 800 $76 100 $140 00 Desi Documentation 34 700 1000 35 700 Pro'ect Re ortin 13 500 1 100 14 600 Total-Base Pro ect 5113 000 S78 00 S191 00 "Extended" Pilot Testis $27 900 $33 100 $61 000 • E JI R T N `) T E C H ~ (c~ WTP Pdot Proposal November 6, 2002 Page 5 of 5 • Schedule Earth Tech proposes the following schedule, which is based upon authorization to proceed by November 18, 2002. Complete Pilot Protocol and Order Equipment January 3, 2003 Install & Start-up Pilot Equipment February 3-14, 2003 Complete Basic PIIot Testing June 13, 2003 Pilot Testing Documentation Report July 18, 2003 Design Documentation September 12, 2003 Present Summary Report October 2003 The proposed schedule may be revised as a result of equipment delivery delays and/or the need for "extended" pilot testing. Nonetheless, we anticipate final project completion within 365 days of authorization to proceed. E A H T H" T E C N ~C~~ DRAFT PILOT PROTOCOL-NF/RO WTP PILOT TESTING & DESIGN SERVICES Hutchinson, Minnesota The following material is the outline for the pilot scale evaluation of nanofiltratron/reverse osmosis (NF/RO) water treatment at the Hutchinson Water Treatment Plant, Hutchinson, MN. OBJECTIVE Determine design criteria required to implement NF/RO water treatment at the Hutchinson WTP for use in designing afull-scale system. GOALS • Evaluate pretreatment requirements • Test performance and design parameters SCOPE OF TESTING • Preliminary Tells Before beginning any pilot-studies, preliminary tests should be completed to make preliminary assessment of the requirements for pretreatment. T1tis can be completed while the pilot plant is being obtained. Iron and manganese fouling is a major concern in the operation of any NF/RO plant. If tltese metals aze maintained in an anaerobic condition, they will remain in solution (the ferrous and manganous oxidation state) and be rejected similar to other soluble metals. However, if oxidation is allowed to occur, femc and manganic forms will be present in the NF/RO feed water. These later forms of iron and manganese will foul the membranes and cause excessive cleaning requirements. The initial test recommended is to monitor the raw water dissolved oxygen (DO) and oxidation reduction potential (O1tP). Both DO and ORP need to be continuously monitored, using DO and ORP probes and data logging capability. This testing should be completed for a period of 1 week, continuous monitoring. If there is no dissolved oxygen and the ORP is negative, then it may be possible to control Ure iron and manganese with antiscalant compounds. However, if this testing identifies the presence of dissolved oxygen or a positive ORP, then iron and manganese pretreatment will need to be considered further for evaluation and added to the pilot testing treatment train. E A R T H `/ T E C N \v\~ ~(~~ • • Draft Pilot Protocol-NF/RO November 6, 2002 Page 2 of 4 NF/RO Tests There aze two philosophies io completing NF/RO pilot plant studies. They are; 1) single element bench-scale test and 2) pilot-scale evaluation. The single element bench-scale test simulates the fmal element m the NF/RO array, whereas the pilot-scale evaluation is a complete miniatwe of the full-scale plant Both operations will require similaz operational and monitoring requirements. The single element bench-scale test is less costly, occupies Less space, but requires more staff hours to operate. Pilot units may be designed with automaflc controls and data logging capability, where the single element bench-scale test will require more manual data monitoring. Earth Tech's standard NF/RO pilot procedure is to conduct the pilot-scale evaluation and is recommended for this project. This method provides the most information to demonstrate the system operations, obtain design data, and is easiest to obtain state agency approvals. GeneralProcedare • Select and procure one membrane from one manufacturer for evaluation • Elements to be flinch diameter minimum • Opetate at design recovery tale, increase recovery late towazd end of cycle to determioe Operate for minimum of 2,000 operating bows, operations shall be continuous Do Clean-in-Place (C1P) cleaning at least once during the test to determine changes in operational parameters A typical layout for the pilot~cale evahuation is presented in Figure 1. Pad CWid~e PAP tib~ 1 Z 3 .art.. ~l~ ~ _____I I e BI I I i~ ~ G I ' I a wl L---- - pllenQ 16 Llcyfye P~ {epfi•stJ Shpe Tro 1----I ~'" L__J is ~ r~• t2 awn Figure ! Flow Diagram of Two Stage Pilot Plant. Numbering identifies smnple locations. E R H T H `) T E C N is CC\ Draft PilotProtocol-NF/RO November 6, 7A02 • Page 3 of 4 • Parameters to Monitor SamnkPohd Parameter Raw Water Feed Water Flow I I I I C Pressure I I I I H I I I F Tem stature I F 1 F Condo I I I F ORp I F F F Dissolved O ea I F F F Total Hardness F/A F/A F/A F/A Calcium Hardness F/A F/A F/A F/A Sodium A A A A Potassium A A A A Iron F/A F/A F/A F/A anew A A A A Ammonia F/A F/A F/A F/A Total Alkalinl F/A F/A F/A F/A P-Alkalhv F/A F/A F/A F/A Chloride A A A A Sulfate A A A A Nitrate A A A A Total Slllca A A A Reactive Silica A A A SDI F Total Dissolved Solids A!C A/C A/C A/C TotalOrganlc Carbon A A A W-254 A A A Osmotic Pressure C C C C Osmotic Gradient C C C C Lan ller lndea C C C C F -Field Analysis .~. - nnaiyucai nnazysis C -Calculated PROPOSED APPROACH 1. Pn:liminary Monitoring a. Equipment Required 1) Dissolved Oxygen probe • E A R T H` j T E G X I - Instrumenfa[ion ~~~ Draft Pilot Protocol-NF/RO November 6,1A02 • Page 4 of 4 2) ORP probe 3) Data logger 2. PilotScale Evaluation a. Equipment 1) Pilot Unit a) Boosts pump b) NF/RO pressure vessels c) NF/RO elements d) Chemical feed e) CIP skid f) Remote monitoring capability 2) Ammonia Analyzer and Probe 3) DO Meter 4) pH meter 5) Thermometer 6) Conductivity meter 7) ORP meter 8) MACH Total and Calcium Hardness Kit 9) HACH Total and Phenolphthalein Alkalinity Kit ]0) 1IACH Iron Test Kit 1 I) SDl Test Equipment • SCHEDULE Task Time Fume Notice to Proceed Preliminary Testing (order equipment, setup, operate and analy~c data 4 weeks Delius Pilot Plant 4 weeks Sd u & for lions 2 weeks Stud Period 16 weeks Pilot Stu R rt g weeks E A R i H `/ T E C H \v~ gC~~ • C Hutchinson City Center 111 Hasran Slreel SE Hnichlnson, MN 55350.2522 320-587-S15UFax 320.234-4240 TO: Mayor and City Council FROM: John P. Rodeberg, Director ofEngineering/Public Works RE: Consideration of Approval of Assessment Manual DATE: 11 /7/2002 A copy of the attached document was sent out a couple of weeks ago for review and comment. Only minor wording changes have been made since that version. As previously noted, there are no major changes fromprevious policies. The document has been substantially expanded to include most related documents in a single manual. I will briefly outline the manual at the Council meeting. We recommend that the Assessment Manual be approved. Pnnrcd on mcycl<d puper- ~~d~ C Assessment Menu Policv ~ Procedures Gui THE LAW. M_S_A 428-051 "The cost of any improvement, or any part thereof, maybe assessed upon property benefited by the improvement, based on the benefits received" November 2002 Revlslon ~ca~ AppiB[ MrW - POlcy ~d h'Oe~'e8 9ld®- q[y If fGe~1~ Nar~r t~P IWYIu u Intent It is the intent of this manual to establish the basic policies and procedures for the City of Hutchinson to follow in the establishment of assessments. The policies and procedures shall be based on Minn. Statute §429 (hereinafter noted "the Statute") and the "Local Improvement Guide" (S15a1a3), hereinafter noted as "the Guide", as developed by the League of Minnesota Cities (http://www.lmnc.org_/pdfs/LocallmprovementGuide.pdf). It is understood and agreed that the City maintains the right to vary from the following policies based on the principles set forth in the Guide and in the law: • Neither the Constitution nor the Statute specifies any method or formula to be used in making the assessment, although under the Constitution special assessments "shall be as neazly equal as maybe..." • Any formula used must operate so that the assessments on all pazcels are roughly in the same proportion to actual benefits. Any formula must be only an attempt to get at the real measure of benefits: the increase in the Mazket Value as a result of the improvements. • The City Council has broad discretion in determining benefits and its findings will not be upset by the Courts except where they result in cleaz discrimination or inequality. • The following Manual provides an outline of standard policies and procedures beyond those noted in the Guide. • Improvements Included The City of Hutchinson reserves the right to assess for all improvements as allowed by the Statute. In general, for the City, these shall include: • Street and sidewalk (including trails & paths) improvements • Storm and sanitary sewer systems • Street lights • Water work systems (watermain) Other items that maybe assessed include • Planting, maintenance and trimming of trees • Pazks, open space areas, playgrounds and recreational facilities • Nuisance abatement • Dikes and flood control works • Other items as allowed by law Basic policies and procedures for assessing replacement of existing infrastructure and the construction of new improvements are included on the following pages. These are meant to be guidelines. The City reserves the right to vary from, modify and/or amend the policies and procedures • in conformance with local, state and federal rules and regulations. ~(d~ Aloe~t Mlod - ~Y Yid kOCIdrAB 9iA1- pl'f IT ~q11 IYrrr 71121wh1~ Section 1: Terms and Definitions Includes general definitions as used in this Manual. Section 2: Replacement of Existing Infrastructure The section generally applies if the project area includes primarily infrastructure that has been in-place for an extended period. Usually this means that the property owner has paid for the initial construction of the infrastructure at some point in the past, and it is being maintained, upgraded or replaced. This section applies to most reconstruction projects within the City limits of Hutchinson. Section 3: New Development/Improvements This section generally applies to first-time construction of a new development or project that has been initiated by the residents or a developer. It is the policy of the City that 100% of all new development costs should be assessed. Section 3a: New Development of Bare Land Generally includes all land being privately developed Section 3b: New Improvements in Developed/Annexed Areas • Includes first-time municipal infrastructure development in newly annexed areas or in areas within the city limits that have never been served by infrastructure improvements Section 4: Sanitary Sewer and Water Availability Charges (SAC/WAC) These charges apply to all fast-time users of sanitary sewer and watermain, as well as properties that modify andlor increase their use of the sanitary sewer or water works systems of the City. Section 5: Other Policies and Information • Improvement Project Notes • Interest Rate Calculations Newly Annexed Platted or Developed Land Policy • Tax Delinquent/Forfeited Property Policy ^ Improvement Project Expense Rates • Project Development Deadlines ^ Disclaimer! • ~~ 1 AnNOeot M^ul - PakY d Preeedlll'it CuW - ql) If ~1^ xrr~lr t~ crab • Front Footage/Adjusted Front Footage: A measurement of the lot size of a particular lot in regazds to assessments. The City may utilize an "adjusted front footage" for irregulazly shaped lots. In general, this would be calculated by averaging front and back lot lines or using the azea of the lot divided by a typical depth. The City reserves the right to use its discretion in developing a fair and equitable "adjusted front footage" due to the large variance in shapes and conditions that may apply. Lateral: A sanitary sewer, watermain or storm sewer line used primarily to serve the adjacent development, with no significant oversizing to serve areas beyond the development. Some oversizing of infrastructure to serve adjoining properties is expected in every project, and shall still be considered a part of the lateral benefit to the property. SAC/WAC: SAC (Sewer Availability Charge) and WAC (Water Availability Charge) are generally applied at the time of the building permit. These fees aze held in a dedicated account and help pay for generation, treatment, safety and other trunk uses that aze not assessed as part of a project. See the related SAC/WAC section for further information. Service (sanitary sewer or water): The portion of a sanitary sewer or watermain system specifically constructed to serve one pazcel or property. Generally includes all costs from the • lateral or trunk line to the property line. Trunk: A "trunk" sanitary sewer, water main or storm sewer is a line that has significant use for lazge areas of the community, and is oversized specifically for this purpose. In general, a sanitary sewer or watermain line lazger than 8" diameter in a low-to-mid density residential azea or lazger than a 10" diameter in a high density, commercial or industrial area shall be considered a trunk line. Trunk oversizing for storm sewer lines shall be defined as noted in the fast paragraph and applied an acase-by-case basis. • $~d) AipiY11~[ AIrIUN - PofCY imll PI'a~dlu'BS 61mde - ptY rT ~telimR tfre~r 7112 Rwtrla~ • IMPROVEMENT ITEM DESCRIPTION- Sanitary Sewer Service The entire service, from the main in the street to the property line, and Watermain shall be replaced at the cost of the Property Owner. This cost may include all related appurtenances and restoration. The Cost of any work outside of the right-of--way shall also be the responsibility of the affected Property Owner. Assessments will generally be on a "per unit" basis. Lateral & Trunk Cost for replacement of the lateral and trunk improvements are generally included in monthly user fees (as depreciation) and shall therefore be aid b The Ci Storm Sealer Lateral and All required reconstmction of catch basins and storm sewer, and the Service new construction of drain the and sump connections, shall be assessed to the Pro ert Owner in con~unction with the Street assessment. Trunk Improvements required [o meet design or environmental standards, or [o improve service to the benefited area, shall be assessed to the Property Owner. Assessments will generally be on an "area" basis, but may also be modified if uses in the area have significantly different runoff characteristics. Stre¢t General In general, the entire cost of the street shall be divided by the length (including Storm of the street, and the assessment made on a "front foot" basis to the Sewer Lateral and Property Owner. Service) • At the City's discretion, comer lots shall be assessed for the short side of the lot, plus any footage on the long side over 132' in length. This "credit" only applies to improvements constructed on more than one side of the lot within a reasonable time period. The City reserves the right to assess all costs if it deterrnines that the parcel receives an added benefit from construction on more than one side. • The City reserves the right to assess on a "per unit" basis if all lots are essentially the same size. This method will be preferred if the conditions warrant. • The City pays for extra width depth of a truck route above a standard residential street, and for unassessable fronta e. DrlveWayS Typically 65 % of the cos[ for driveways being replaced due to grade and reconstmc[ion issues shall be assessed to the Property Owner. Driveways requiring replacement due to defects in the driveway construction maybe assessed 100% to [he Property Owner. The assessment maybe on a "per unit" basis if all driveways are essentially the same size or are being replaced primarily for grade or other design issues, by "area" if large variances are present, or maybe included in the street assessment. Street Lig11t5 New lighting required to meet City standards for spacing and safety shall be paid by the City. Standard lighting being replaced by decorative lighting at the request of [he property owner/neighborhood shall be assessed to the Pro er[v Owner. Sldewalk/Tr3115 Sidewalks/paths/trails installed based on the priority system applied per City policy shall generally be installed at the City's cost. Sidewalks/pathsltrails requested petitioned to be installed in areas not in the City's Light Traffic Plan, or not included in [he Capital Im rovements Plart, ma be assessed to benefiten Pro e ~ Owners. ~Cr1 ~ Awpeln[ MIRY - PoICy stud h'oeadrel idil- ply If rle~IN IYr~rr x112 ~ • Other Right-ol-Ways/ Costs incurred to acquire right-of-way and easements required to Easements construct or reconstruct infrastructure to serve the azea, or each individual home, shall be reassessed to the property owners benefited. Property owners who dedicate the appropriate easements maybe exempt from such (re)assessments. If a special case exists in which an additional easement is required on only a specific pmperty, the City reserves the right to pay for the easement and spread the cost among all benefiting property owners as part of the project cost. Policies/Procedures ASSESSMENT ROLLS • Length of Payment: The roll shall run for 10 years with equal principal payments. On existing projects with assessments less than $3,000 the City reserves the right to shorten the payment period to 5 yeazs or less. • Interest Rate: The rate for the assessment rolls shall be at 1 % over the TIC (True Interest Cost) of the bonds sold, rounded up to the closest two decimals. Deferments of all, or portions of, assessments aze allowed based on policies of the City and in State regulations. The following are brief outlines of existing policies/rules. Please see the complete policies for more detailed information. In all cases of deferment, interest builds on the principal amount. If the assessment is activated after a period often years, the principal plus • interest amount is compared to the same principal adjusted by the Engineering New Record Cost Index (ENR), or other selected index, and the lower of the two costs selected for activation. • Senior Citizen/Disabled: available for property owners meeting income guidelines who aze either over 65 years old or disabled. The deferment generally occurs until the property is sold. See Finance Director for details and application forms. Improvement project expenses (Expenses) shall be added to all construction costs to establish the total Froject Cost for an improvement. These Expenses include a generally applied standazd rate of 24% of the construction cost to cover Engineering, Project Administration and other expenses (Finance/Fiscal/Legal) as noted in the attached "Improvement Project Expense Rates". Additional Expenses maybe added above this that could include property acquisition, landscaping and other costs that maybe directly related to the construction of the improvement. The City reserves the right to adjust this rate if specific conditions on a project warrant a variation from the standard. TAX DELINOENT/FORFEITED PROPERTY See attached policy • ~~/ Amt AY~W - PMey and ProceOrK Cdtle - Ory d rtdi~ll Mou.~ ~u ~ C~ I L BASIC POLICY: 100% of the cost of the infrastructure for all new development shall be assessed to the Developer or property owner IbIPROVE1t1ElYT- T~=EM=. = DESCRIPTION -° ~ - _ Sanitary S¢Wer Lateral & 100% assessed. In general these assessments will be assessed on a "per and Watermain Service tine["basis if all units are approximately the same size, or as agreed to between the Developer and the City in the Subdivision/Development A Bement. Trunk Includes all sanitary sewer and watemrain in excess of 10" diameter for commerciaUindustriaUhigh-density residential development and in excess of 8" diameter for low-[o-mid density residential development Each pazcel must pay a Sewer (SAC) or Water (WAC) Access Charge with the Building permit at the rates noted in the most recently approved table. The City pays for the oversizin . Storm Sewer Lateral & 100% assessed. Includes all required constmction of storm sewer, catch Serviee basins, drain file and sump connections required to serve the lat/develo went. 'I'rupk The Developer/Property Owner is responsible for all costs related to meeting the Best Management Practices noted in the MPCA document "Protecting Water Quality in Urban Areas" and [he standards noted in the City's Comprehensive Stormwater Management Plan. Regional ponds and trunk storm sewer oudets/mains constructed by the City shall be assessed to the Developer/Property Owner based on the utilized portion of the rovement. Street General 100% assessed. The City shall only pay a portion of the cost of the street improvements if a [ruck route is requested by the City in a low-to-mid density residential area, and [hen only for the added costs. If improvements to adjacent City, Municipal State Aid, County or State streets or highways are required as part of a development, 100% of the cost of the improvements needed to serve the developing azea shall be assessed to the Developer. Assessments for limited access Municipal State Aid routes shall be limited to 25% of the normal assessment rate, unless right-of--way dedication is not made by the developer/property owner and purchase of the right-of--way is required. In [his case, 100% of the cost of the required right-of--way dedication, per City Ordinance, shall be assessed to the Developer/property owner. Street Street signs and street lights required to serve the plaUdevelopment area Lights & shall be installed and paid for by the Developer/Property Owner. This SlgnS shall also include all required traffic markings. Traffic Traffic signals shall be assessed to adjacent land based on either the traffic Signals generated from the site or on the `legs" of the intersection served by the si 1. Sidewalk/ The Developer/Property Owner shall pay for installing sidewalks, paths or Trail trails in conformance with the Light Traffic Plan of the City. This includes trail locations noted in the Light Traffic Plan, and sidewalk on all minor arterial and major collector routes and in all commercial and highdensity residential areas. ~~ ~ M^w - Poor wta Proce~ra crae - oty w rtela^ ~~~t.. U r~ \J L~ Othei Turn Lanes (Leh, right or center)or other safety improvements required to be added on State and County Highways and local minor arterials shall be installed at the Develo er's! ro'ect ex erase. Rights-01- It is expected that properties will dedicate the rights-of--way and easements Ways required to provide complete municipal infrastructure improvements to the Easements property and adjacent property, including major corridors adjacent to the property. Any costs incurred to acquire these rights shall be reassessed to the property owners benefited. Property owners who dedicate the appropriate easements may be exempt from such (re)assessments. If a special case exists in which an additional easement is requrred on only a specific property, the City reserves the right to pay for the easement and spread the cost among all benefiting property owners as part of the project cost. GENERAL INFORMATION • All infrastructure shall be required to be extended through the development up to adjoining properties to serve future development. This includes, but is not limited to, the construction of streets, watermain (looping, etc.), sanitary sewer and storm sewer. • Cul-de-sacs are strongly discouraged due to maintenance, access, system continuity and other issues. If staff allows cul-de-sacs, the right if reserved to collect an up-front fee to cover anticipated future maintenance and related costs. ~~~ Asertt NlarMtal - Pofcy and Procedures Guide - pty n rrb~ live.r.r 2102 a•vlal~ y„ , _ ,section 3a: ` NEW DEVELOPMENT. OF BARE LAlYD ~ ,~; ~° ~ , ~` ENGINEERING/COMPREHENSIVE PLANNING & OTHER EXPENSES: In general, the Developer shall complete all design and construction related engineering for any improvements within the City. The City shall collect a Lump Sum fee for services provided to the Developer. The Developer will have an approved consultant complete the following at its own expense: Project pre-design and design (including plans and specifications), construction staking, general project administration and construction review, and detailed as-built drawings in AutoCAD. The City shall complete the following at the noted percent of construction cost. These costs will be paid prior to issuance of building permits for the development. Design/Preliminary Layout Review 2.5% Administrative/Prelim. Development 1.5% Comprehensive Planning/Topography 1.5% HRA First Time Housing Fund2 1.0% Leeal/Fiscah/Financial 0.5% TOTAL CITY EXPENSE RATE 7.0% NOTES: ~ This fee shall be based on the total construction cost within easements & rightof-way, excluding grading. This fee will be collected prior to beginning construction. s The Hutchinson Housing and Redevelopment Authority (HRA) shall have the right to waive the 1 % fee if affordable housing is included wdhin the proposed development • The City reserves the right and ability to complete the project design and engineering work with City staff based on the following: • City staff has the time to complete the work with existing staff. • Infrastructure construction issues have arisen that mandate closer quality control. If all work is completed by city staff, the Expense Rate shall be set based on the rates in-place. The current rate is 25% of construction cost (as noted above). The rates can be reduced if financing is not completed through the City, or if the HRA waives their surcharge. FINANCING All new, private development shall be privately financed without utilizing municipal bonding unless otherwise approved by the City Council. The City shall utilize the "Financing Hutchinson's Future" document as a guideline. The City of Hutchinson reserves the right to require financial assurance of project completion from the Developer, as allowed in local and state regulations, prior to commencement of work. LAND DEDICATION Dedication ofright-of--way for streets, sidewalks and trails is required as part of the plat. Dedication shall also include all required utility and drainage easements to serve the plat. The . City reserves the right to assess the Developer for right-of--way acquired adjacent to the development required to properly serve the plat. 8 ~<<,I Asaess~wnt IMs~wl - Poicy and ProceduresGuide - mll e1 btdi~so. Nove~ier 2112 AeYYelex • seare~n 3ti 1 ,; :NEW IMPRQVEMENTS TN DEVELOPEDLANNEXEI~ AREA,.; These policies apply to areas that have never had municipal improvements. ASSESSII~IENT ROLLS • Length of Payment: The roll shall generally run for 10 years with equal principal payments. On existing projects with assessments less than $3,000 the City reserves the right to shorten the payment period to 5 years or less. • Interest Rate: The rate for the assessment rolls shall be at 1 % over the TIC (True Interest Cost) of the bonds sold, rounded up to the closest two decimals. DEFERMENTS (for newly annexed or undevelopedlunplatted property only) Deferments of all, or portions of, assessments are allowed based on policies of the City and in State regulations. The following are brief outlines of existing policies/rules. Please see the complete policies for more detailed information. In all cases of deferment, interest builds on the principal amount, but no payment is due until activation. When the assessment is activated, after being deferred for ten years or longer, the principal plus interest amount is compared to the same principal adjusted by the Engineering New Record Cost Index (ENR), or other selected index, and the lower of the two costs is selected for activation. • Agricultural Land: deferred until the land is developed or utilized for primarily a non- agricultural use • Land Outside of City Limits: deferred until the land is annexed and developed or utilized • for primarily anon-agricultural use • Senior Citizen/Disabled: available for property owners meeting income guidelines who are either over 65 years old or disabled. The deferment generally occurs until the property is sold. See Finance Director for details and application forms. • New Annexed Platted Land: Lots with Certified Septic S}stems: deferred until the system is used, or a maximum of 10 years. Certification documentation must be provided to the City within 30 days of the Assessment Hearing. Water and sewer service must be installed/assessed at the same time. Lots with Working Wells: deferred until the system is used, or a maximum of 10 years. Water and sewer service must be installed/assessed at the same time. Lot Size Less Than 250 Feet of Defined Frontage: If the lot is unable to be, or unlikely to be subdivided, and therefore creates an economic hardship, the Council has the option of deferring a portion of the assessment until subdivision occurs, or for a period often years. This deferment shall only be allowed by special Council action. Lot Size Greater Than 250 Feet of Defined Frontage: Platted lots with frontage greater than 250 feet shall be able to defer assessments on the portion of the lot which is determined to be a separate, buildable lot. The assessment is deferred until the lot is subdivided and sold, or a maximum of 10 years. ^ Activation of assessments: In general, when an assessment is activated after being deferred, it will be spread per the current policy for reconstruction projects as noted under "Assessment Rolls". C~ 9 ~~s ~ \~ Ailp~ant A11m1- Poley 8B~ h'1t~t'p Cr11- OlY 11 f~1~ rr.rr 7111 rwi. • Improvement project expenses (Expenses) shall be added to all construction costs to establish the total Project Cost for an improvement. These Expenses include a generally applied standazd rate of 24% of the construction cost to cover Engineering, Project Administration and Finance/FiscaULegal asnoted in the attached "Improvement Project Expense Rates". Additional Expenses maybe added above this that could include property acquisition, landscaping and other costs that maybe directly related to the construction of the improvement. The City reserves the right to adjust this rate if specific conditions on a project warrant a variation from the standazd. PROCEDURES • The City may choose to assess by front foot, area or by the `5rnit", based on the conditions and layout of the property being served by the infrastructure improvements. • Sirice annexed areas may often have vast differences in lot layout and other conditions, the City reserves the right to utilize its discretion in applying policies and procedures in a manner that best suits the conditions of the azea to be served. It is understood that the "Intent" of the law, as noted in the opening section of this policy, shall always apply. TAX DELINOENT/FORFEITED PROPERTY See attached policy. • • l0 g Cd) NCI - Ielcy aar Pr~adu~s Oide - Oq- ~11~a xn.rrszrr~a. SAC: Sewer AvallabAlty Charge •WAC. Watw' ArrallabNlty Charge Backeround SAC and WAC are known as "impact" or "connection" fees. The City of Hutchinson has collected these fees since the mid-1990's as a Trunk Fee based on land use, number of connections and area of a parcel of land at the time of development. This system was revised in 2001 to be based on the MCES (Metropolitan Council Environmental Services) procedures that utilize land-use parameters and related SAC units. This procedure more accurately reflects the use of the infrastructure services, and has a strong base of use as a fair and acceptable standard. SAC/WAC Determinations The MCES Procedures Manual defines SAC as "Service" Availability Change and is specifically utilized for sanitary sewer flows to the Metropolitan wastewater system. The City of Hutchinson's policy uses the following definitions: SAC: Sewer Availability Charge (Relates to sanitary sewer systems) WAC: Water Availability Charge (Relates to water works systems) Both SAC and WAC will be chazged based on the same unit basis, which may be noted separately, or together as "SAC/WAC". • Single-family homes, townhouses, duplex units and most apartments each equal one SAC/WAC unit. For non-residential properties, one SAC/WAC unit is defined as 274 gallons of maximum potential daily wastewater flow volume. Commercial buildings are assessed SAC/WAC units based on the maximum potential daily wastewater flow value. Industrial buildings aze assessed SAC/WAC units based on maximum normal daily wastewater flow volume for process areas and maximum potential flow volume for commercial areas. SAC/WAC unit detemunations will be made by the Director of Engineering/Public Works and/or the Director of PlanningBuilding/Zoning. Change in demand or use of a property may trigger a redetermination of the unit chazge, and additional fees may become due. The "unit" calculations will be based on the MCES SAC Criteria and pazameters, however City staff has the authority and responsibility to vary from the noted criteria and parameters if specific conditions warrant. SAC/WAC Revenue SAC/WAC revenues collected by the City will be used to finance capital infrastructure expenses for the Wastewater and Water systems of the City. These funds may be utilized for any expenses that are not normally covered by other user fees or assessments, and shall be utilized only for improvements directly related to the wastewater and water systems of the City. This includes, but is not limited to: • 11 l ~W~ ~r - roleY end Plvairn iddl - plY K ~Itrmf^ IYr.Ir 7112 Yrh1~ • "Trunk" system pipe oversizing • Non-assessable "trunk" improvements • Storage facilities, lift stations, and other related facilities • Treatment and production facility modifications, construction or reconstruction • Debt retirement of related expenses These funds will be held sepazately in a fund dedicated for this specific use. SAC/WAC Rates The fees/rates as currently charged by the City of Hutchinson have been determined based on a policy of offsetting the cost of growth and having new development pay for improvements required to make sanitary sewer and water service available. Based on financial analysis the 2001 rates actually needed to be over 50% higher ($2,700 per SAC/WAC unit vs. $1,750 per SAC/WAC unit) in order to cover all costs associated with growth. Sanitary sewer and water monthly user fees, and taxes for payment of debt service of improvement bonds, cover the remainder of the cost of this community growth. SAC/WAC rates will be reviewed yeazly. Inflationary increases based on the ENR (Engineering News Record) Cost Index will be considered, as well as any mazket adjustments related to meeting the policies and direction of the Council. The City Council shall approve the rate for the following yeaz as part of the yearly budget process. The City Council reserves the right to adjust fees at other times of the year based on financial analyses. Rate Adiustroent Policy Rates aze proposed to be increased on a yeazly basis through 2010 based on an inflationary increase (related to the CP)) and a 5%mazket adjustment to reflect a 10-year goal to reach the rate determined as part of the financial analysis noted above. SAC/WAC Fee Collection SAC and WAC fees will be collected with the building permit for any new construction that has not previously paid a trunk fee. The fees shall also apply to expansions of existing buildings either in size, or in use of sanitary sewer and water works systems. • 12 C~l.~) Aes~wrtt Awl - Pofcy and Procedures 6ulde - pty d Iutdigw Nore.br 2012 AlYkfee C J IMPROVEMENT PROJECT NOTES ~ ~~` r The City will follow MN Statue 429 in regards to all requirements for assessing public improvement projects. The following notes are used at neighborhood meetings and public hearings to describe the hearing/assessment process. • Staff will complete the project design and go out for bids if approved at Public Hearing • An Assessment Hearing is to be held after bids, (usually) prior to award of contract • Actual final assessment costs to be calculated for Assessment Hearing based on the actual project costs. • Interest rate will be determined by rate that city receives for the project bonds. PAYMENT OPTIONS: • Full (or partial) payment without interest by November 15th • After November 15th, the assessments are certified to tax rolls, with interest • Assessment on Tax Roll, 10 years with interest, Equal Principal • Deferments are available for property owners, meeting income guidelines, who are either over 65 years old or disabled. • _ _ , - _ _ INTEREST RATE CALCULATIONS - ,~._ . 1. Deferred assessments shall bear simple interest compounded annually on the original amount. The interest rate during the first ten years shall be at 1 % over the TIC (True Interest Cost) of the bonds sold, rounded up to the closest two decimals. 2. If the assessment is activated within the ten years after the project, the "adjusted" principle amount shall be as noted above. The property owner shall have the option of paying the amount in full or spreading said "adjusted" assessment over a 10-year period at the interest rate of the original assessment roll, unless otherwise stated in a Development, or other, agreement. 3. If the assessment is activated in year 11 or later, the "adjusted" assessment principle amount to be activated shall be the lower of: a. The original principle amount plus interest as noted above b. The original principle amount multiplied by a construction ratio based on the Engineering News Record (ENR) Construction Cost Index. The index for the current year shall be divided by the index at the time of the original assessment to determine the ratio. 4. If the assessment is activated in year 11 or later, the property owner shall have the option of paying the amount in full or spreading said "adjusted" assessment over a 10-year period at an interest rate set by City Policy (currently 5%), unless otherwise stated in a Development, or other, agreement. l3 ~J~~ ~~ Alle:s^alt Meld - Poky 8nd Procldures 6ufdB - Gty ~ ~rtdiaa Nov~~x 2002 Rovtrl~ NEWLY ANNEXED PLATTED OR DEVELOPED<~A1 ~~ LOTS WITH CERTIFIED SEPTIC TANKS The City of Hutchinson will defer the water and sewer system assessment until the property begins use of the system. (Water and sewer systems will not be allowed separate installation, and must be installed and assessed at the same time.). Certification documentation must be provided to the City within 30 days of the Assessment Hearing. The property must also be in compliance with current Hutchinson's shoreline ordinance and all other applicable state, and federal laws. The deferment shall be until the lot is split, construction of a structure on the lot, the system no longer can be certified, or after ten years, whichever occurs first. Curly the sewer and water portion of the proposed assessment will be deferred. LOT SIZE LESS THAN 250 FEET OF DEFINED FRONTAGE Lots shall be assessed based upon current City Policy. Street, curb, gutter, water, sewer, and storm water assessment would be assessed and implemented immediately as similar type assessments. The City Council reserves the right to adjust the noted minimum lot width based on the specific conditions of the area that has been annexed. LOT SIZF. GREATER THAN 250 FEET OF DEFINED FRONTAGE Platted property with frontage greater than 250 feet shall be able to defer street, storm sewer, curb, gutter, watermain, and sewer on that portion of the lot, which is determined to be able to be a separate, buildable lot. The deferment shall be until the earlier of construction of a structure on the lot or 10 years, whichever occurs first. That part of the lot not deferred as defined above, -shall be assessed as described for lots less than 250 feet. The City Council reserves the right to adjust the noted minimum lot width based on the specific conditions of the area that has been annexed. TAX DELINQUENT/FORFEITED PROPE~TYT}`,=:_ ,~,° ~~_ The Policy is intended to address issues surrounding assessments on property where the taxes are now delinquent or the property has been forfeited for failure to pay taxes. The Policy is intended to be a guide for the benefit of the Hutchinson City Council, which will decide questions regarding assessments on a case-by-case basis and retains the right to deviate from the policy where necessary or beneficial to the public. RECITALS 1. The City has made significant road and utility improvements in areas of the community and has assessed the costs for these improvements to the then property owner or owners; 14 ~~~~~ lUaa~~t 1164 - Poky and PI'1Cedm'et 6d0~ - Gh ~ rtelir ir.rr as rwd. 2. In some instances, the costs of the improvements has not been recovered because the • property owner or owners have failed to pay their real estate tax obligations and interest has continued to accumulate upon the delinquent balances owed for taxes or assessments; 3. It would be in the public interest to promote development to return presently taxed delinquent property to the tax roles, but any such development must be weighed against the cost of constructing the improvements in the first place; 4. The City Council has determined that a written policy would be helpful in reaching decisions, on a case by case basis, as to whether or not delinquent assessments should be reimposed, written down or in some manner adjusted to facilitate the sale of the property and the retum of the property to the tax roles. POLICIES Based on the findings as described above, the City Council adopts the following policies regarding delinquent assessments: 1. Adjustments to the assessment burden on a particular pazcel will be considered only when the property has been carried on the tax roles as delinquent for three years or more. 2. The City Council for the city of Hutchinson will abate all of the assessments on such a parcel subject to the following terms and conditions: • a. The original principal amount of the assessment will be reimposed with the principal amount adjusted upward based on a cost of living factor to be determined by the Engineering Department using engineering guidelines provided for this purpose; b. The balance so determined shall beaz interest at the rate of 7% and shall be payable in equal installments over a five yeaz period. c. A written agreement shall be entered into between all the parties having an interest in the real estate, reciting that the City shall be entitled to collect the assessments as provided by law or by foreclosure by action, at the sole option of the City. 3. The proposed land use is a factor in whether or not the City Council will grant relief from assessments and accordingly, any construction or change in use contemplated or agreed to by the parties shall be completed within one year of the decision of the City Council abating the present assessment burden. C , J 15 ~~~ a~ INantial Palcy and Pncadnres Guide .~ ~ ~` ern 21UD2 RevPSbn lI~'IPRO`r~NT~NT PROJECT" EXPENSF1 RATES F7r~vr~inn f7~~~ta- I"Jnvr rnt~~r ~'i)'t?? P~CCeCIt CUSt _..... ~ ategory Total Sub-Tptai Description Motes Dept. ~iF r'~ti' ~Jr ~ItC dfiCi Ci!`3 ~~111 ~::7 !,1 c]f 1.`F i?11ti~1'U0 iaras ar~d Sp~X rtic<~ri :rs~: pre~df2d b"y p q~ VG'ieCtaper„ C7f ~?tt~-r°:nc~if if~rYrRC~ C1 ~. I ~~.~.~ ~_ .. Y .. .. ....~.., r ea~Cra~~kCUiu~raF'~c~5~ is~.. ..._....~_.~ ~~..~.. Casa to ~arnplete ~I ins ae~d En ineerpn 1 ~'~/~ g ~ ~.!~% ~sir~n FPn~I !fie s ~~iPYcatiz~rgs in-r~~,~,~me ..~ ..I~4~::.~~ ...~. „__. ,.... .~.~~_ ir,';~iu~esarl-"„"9fl~ .,q. .. . SerVV~. i~rlV~te (~'~E*1fia~~"IfS ET14J,St oC'47WRdE^SUIr'/e'~ Untt'Y~~Ctlbnl li~f.'Yle~4F ~u~M7tN"CYP ~rqd bYl~y" d ~ $G t9"19 (}rk WUNfih ~ C~mrrSUlt~rtlQ appravFd b;r kh'e llty rid .d~~/, anti Stai(in P,.~v tYre~~e C~rsts c~irectiPy. ~n~r~ ~'!an ~~ ~,i~W ~nd+~e~rel~~~,n~e~~7~, ~'i'~~,f~11?A~c7C„~I" ~;U ~c~i:l~i:~~? driL'~PrpG ~-"VE ~7~}iTb~87't "~,~~1ca ~G'1+'~~"~17P47~"' ;~,t~ crrflF~n _~..a... ~ ° t'~ , .'u"tl '. m .... ....~.. . . .. .,...~._ ,~ss~ssla~ent IRe~YP ~reparekian, 7~PN :~Gaf.~rte ~2~ ~nr~', a;e~rttr~~d a~rrwwrawSkp',~#ur~n _C~"~/pro ~t"Dntl'"a~Ct I~4~rT#il'"~NSff"tlQl~ ~n~il revevu .. ~~~. _ q..... ~ ~~ C'~~~~'NlV t ' ~ ~ ` ~ ' L t ~ ~tr~s ructia~re; rti ecy~rnprehe ~ive I ~C up~ ` ~.~~~ P1ar7ning'~' ialen~r~in~ ~~~ .._ ~,~,~ Project Administration ~ ~,~ ~ _u _ ~11Yd~VGN~ tai C~7rnpl~tln~ dl~Ei ~aN"Ptt~~tlr .:~~"~ .m. m, ..~ ~O Gr C'+~~7~llt~' ~~~D~'A1AtG~~" . ..~__ n'1ping a~ ure~an agree .~ ~~_ .. ~ ..._~.m......w ~uan~t ~~.. ~.. Fult~Mprr~ Erar d tl~ prr~gr~rrra f~Jr supp~a~fing hawing treads rithiirc k~ro'e tran~rrburaty. The FMA ~3aard rrnay ~raive this ie+. <~n ~rraaacta I~rrecatirlgs htlF~.f1 Q°bau;ih~ ~Q~N~. t~at,~t}~~k~~ tCY recvnstru~tiarl ar trrank ~wt'~~itY .f'Y'`u 1~C~ld!S'P/~ 1V~d~ ~u~a'~f~` ip~r~vern~rwtss, iaF-.+~ ~3~,"~ ~~ ~drn is ~str~trar~„ ipr~~ ae~ty °~,.[.)%' Finanlap ~t"kPiG~ ~5scs~,rnen1 idmpu'q - rii~~~n4: ..._ ...._..... F'inanceJLegal!Fisc~l ~/~' .....~ _ Tlit~. r~~~ir~,v P~~:~weVcat r~ti~ t'-uP~~livusoacr _ 6~~~n~riE dewe9a~~ '/"fig ~7rflieGW~ ~frd Ie~fOe .g tltl~~~ a~, (~' p ,~~' ~pnr1?Pi,~G=? Pe~1tl'E7iM ~''unene 1.~/a 'fls~~lp ~~ ateiized Nruterr~~4. ~6ro~r~ce ~ 24°/a i~,e~'ev+~VmpuPr~entlM~wl~° Anne~red ~C~oe not. irreiude tine "Housing Deeds Fund'",~ Y ,' ~ ~_ >a.~, ~c' 4 ",~.+,` ~ ~ New aev~l~per~nt® the pity r"etaun~ khe right tv apa~ro~e uwrhPh prratek wvill e .~. ~k <~ ~ 25% c:ur~`r~plel~:r~ !_~tiCiingi O'ti+"Vtani~ip>>ap Finant~irng based on guP~eiines apprc~~d bythu f~ity ,` ~~ r ~~~ ta ~ . ; ~~ r-. ,' fir., ~"~ . b >,<~,., ,:. ,.:r; ~7l~rt~i1. ~d"IL~~I~d~`.~ °`~11~14.;N9"tC7 I'~C~~S Ftand~"' ` A~ ' t ~ :- ~ ,~~- =~~ v N4~iPnNtT"UM1~r"n rate, inqua'dPng '~~ ~~~rTl:~ r"d~k~d lth n aterASk ~"~. Irt~Jt• ~VtViP~Pr"rl rric~re x G°< ~ . f .~ 7 /e E .; t ~ ~ .~ ~ ~~ {~it°! services wili tie charged t~~~s~d tart tt.ae m;~teS rusted 9..~w~ ~,` c ~ T , ~ r .:~~ Nf? 7"ES: h~ duty retairus the right to ersgat~~ a ~ctsrssPSgtars'p to c~rrup~l~t~ ~ p~rtP~ns at th mi~reerirroa~ and ~r~~~t c~rrsirpUstratirsrn. he' Igv~t~p~r sha111 hsu~ ir~lin~~Pnary ~ irraB FUst a~pprav~ gr~r tm ~varU~ ~~'rna~~n~Ung ~sn final dsigl~. U=irrao'~~r~q a~~uran~~~'beradPrag a~ b~ r~quraired t~rr irrlp~r~rreurtients tseirr'g ~rrtgiet~a~ i~~ psri~!st d~~r~^it~paers. l i h~ q~eweNapc shaiB rriet Cpl d'~~sign stn'damds s~a~ tinancvai sur~fi~ re~~uou~er~emts tit t#~ pity. i Aasesmeut iiaiual - Poicy a~ Procedures Guide - City of ~tdiise~ eovr~9er 2eet pvwo~ • PROJECT DEVEI:OPMENT_DEADLIN~=~~ `~`~~~~ The following deadlines are necessary in order for the City of Hutchinson and Hutchinson Municipal Utilities to provide service to the proposed improvement area. Projects that are not able to meet these schedules cannot be assured of completion within the expected timeframe. City Council action is needed to approve variations to these deadlines, based on recommendations from the Director of Engineering/Public Works, the Finance Director, and the Hutchinson Municipal Utilities General Manager. Additional restrictions due to City bonding limitations may require the City to not accept applications for improvements prior to these dates. Any projects not able to meet these deadlines cannot be assured of completion within the proposed proiect year. All legal requirements of Minnesota Statutes and local ordinances must be followed. DEADLINES ARE NOTED FROM THE YEAR PRIOR TO PROPOSED CONSTRUCTION SEPTEMBER PETITION Includes redevelopment projects that require City site surveying • OCTOBER ^ ANNEXATION REQUESTS Completed forms and payment received DECEMBER ^ PRELIMINARY PLAT COMPLETION Including Grading Plan, Utility Plan and all required submittals JANUARY ^ FINAL PLAT Including Petition for Improvement ^ UTILITY SERVICE APPLICATIONS Includes Hutchinson Municipal Utilities, Hutchinson Telephone, etc. MARCH ^ WAIVER OF ASSESSMENT APPEAL OR ASSESSMENT HEARING u 17 C~ ~ ~,C ~~ ,~ / A:aasaa^rtt Mardl - Pofcy and Procedures 6ude - pt) ei stn Novntr wez R~vmu ~`~~ : _ ~~~~ ~~~ ~~ . e.. _ DT5CLAIMER~ ~ ~# ' ` ~ ~ ~-~ - _~s~ _. This Assessment Manual (Policy and Procedures Guide) is intended to be a guide and each application to the City Council for relief from assessments will be decided by the City Council on a case-by-case basis. Policies and Procedures may be amended, modified or abandoned in their entirety, in the sole discretion of the City Council. Nothing in this policy shall be construed to give any property owner or applicant a right to a change in the assessment burden imposed on any specific property. This document was approved by the City Council of the City of Hutchinson, Minnesota on November 12, 2002. i tg `~~~~~ ORDINANCE NO. 02-325 • AN ORDINANCE PERMITTING CITY COUNCIL MEMBERS TO SERVE ON THE HUTCHINSON UTILITIES COMMISSION THE CITY COUNCIL OF THE CITY OF HUTCHINSON ORDAINS: Section 1. Purpose. The growth of the City of Hutchinson, its infrastructure and municipal utilities have made it desirable for there to be a closer interaction between the Hutchinson City Council and Hutchinson Utilities Commission as it is beneficial to both of these bodies to share a common member to improve communication between them. City Council representation on municipal utility commissions is specifically authorized by Minnesota Statute 412.341 and has been approved of in various Minnesota Attorney General's opinions. Such representation is consistent with that of the governing boazd of Hutchinson Area Health Caze, which also has a City Council representative. Section 2. In recognition of Section 1 and the appointing powers granted to it by the Hutchinson City Charter, the City Council may appoint a City Council member or the Mayor to a position on the Hutchinson Utilities Commission. Section 3. A person appointed to the Hutchinson Utilities Commission pnrs~,ant to this ordinance shall serve the terms on the Ufilities Commission as set out in the Hutchinson . City Charter as long as that person is still on the Council or is Mayor only. The person so appointed shall be deemed to have resigned from the Utilities Commission at the end of their service as a councilperson or Mayor. Section 4. There shall be only one City Council member on the Hutchinson Utilities Commission at any one time. Section 5. This ordinance becomes effective from and after its passage and publication. Passed by the City Council of the City of This day of Signed Attest u City Clerk ~C~) ;ANIZATION '';STATUTORY CITIES § 412.341 rwte a Laws 1877, c. 61, §§ 1, 2. Laws 1854, c. 25, § 3. laws 1876, c. 36, § 2. Rev.Bt.(Terr.) c 41, §§ 1 [0 3, 5 to 7, 11 to Laws 1875, c. 139, §§ I, 4, 6 to 9, 14. 14, 16, 17, 19, 21, 23, 25, 42, 64 to 66, 73 • P.5.1858, c. 17, §§ 116 to 118, ]20 to 122, to 76. 124 to I29, 136, 138, 140, 157, 179 to 181, 188 to 191. r 412.341. Commission; membership, organization Subdivision 1. Membership. The commission shall consist of three mem- be~s appointed by the council. No more than one member may be chosen from village. opam'. 'the council membership. Each member shall serve for a term of three years and -until a successor is appointed and qualified except that of the members initially appointed in any city, one shall serve for a term of one yeaz, one for a term of two years, and one for a terrra of three years. Residence shall not be a qualification for membership on the commission unless the cotmcil so provides. i A vacancy shall be filled by the council for the unexpired term. Subd. 2. Rules; officers, salary. The commission shall adopt miles for its own proceedings which shall provide among other things for at least one , lob,"71s, 718 to regulaz meeting by the co**+miccion each month. It shall annually choose a president from among its own members. It shall also appoint a secretary for an indefinite term. The secretary need not be a member of the commission and may be the city clerk. No member of the commission shall receive a salary except as Fixed by the council. The secretary shall receive a salary fixed by the Lws 1949, c. 119, § 44, eff. July 1, 1949. Amended by Laws 1951, c. 378, § 12; Laws '~ 1973, c. 123, art. 2, § I; Laws 1986, c. 444. Historical end Statutory Notes 1208, 1218, -, The 1951 amendment added [he word "coon- chatters which were redefined as "statutory clt- 1259, 1261, " In the second sentence of subd. 1. ies" and were made subject to the code. Ciry ~,~, ]270, 1272 - "- Laws 1973, c. 123, enacted the uniform code elections, of&cets and teens were revised, tran- municipal government in order to eliminate sition provisions were added, and [he smtu[es n(usion as to the existing laws rda[ing to were generally revised to reflect [he changes Ilages, boroughs and cities without home rule made by [he new code. )'- - Notes of Decleions on S 2. Vacancies 2. ~ 206 to 212, ]0 patible positions 6 Inltnen[ 3 M appointee to Fill a vacancy on the public , J, 231 to 241, 243, of members 4 utilities commission should be appointed ro J, 252, 254, 257 to RIIY t - " serve Eor the balance of the term of his prede- ~~ 2 censor. Op.Atty.Gen., 624e-2, Jan. 23, 1959. 3: Reappoln[tttent [0 9 11 18 21 27 Ttn-ms An acfing member of [he public ufilifies com- 47, 49, 51, 52, 46 - In view of [he fact that this section does not mission may be reappointed by [he village coun- , Ify when [he terms of members of the pub- ci] when his current term expitu. OpA[ty. utilities commission shall commence, it Gen., 624a-3, Feb. 16, 1973. 0 5, ]0, 12, 21, 29, d no[ be necessary that [he terms of the 7, 49, 51, 52, 54 to bens of the commission commence at the " q Removal of nxmben Inning of the official village year, or with )7, 209 [0 212, 217. -~'- nce to the date of the original utility coin- Village council cannot remove member oQ vil- r' n. Op.Atty.Gen., 624e-2, Tan. 23, 1959. lage public utilities commission at will but can 235 8(e 1Jag7/02 14:35 FAa 651 297 1235 ATTORNEY GENERAL OFFICE r~ooz/oo3 _. ... , ~~s . i .r•' ~ •__ ~i^1 1;1 c~J,~~•r~a 1~ O.Z C: .71.: ~.. SLY' Jr C~ Qr ::~il .- .. l ~.. ....~ .. .-~ U~J L:, mission. :Jcver'ber 20, 1g57 358e••~% Honorable Harvey E. Gardner pillage Attorney Janesville, :rLl.nrteaota Dear fir. Gardner: In you_* letter of ~:ovc~tber $, ?957 to AL•toxslep General idil2s Lord yo~~. snb:rit Y,he fol~.avrian sr~a~r~~~rr: °The L-~L1ag® of Jar_esv:~.ile oporates under the Standard Plan of government as set- forth in' Chapter ls12. • In 1939 the Council estab~felied. a [dater,, zght, Poorer and ~u.ilding Co~iasion; and autos th'e,adoptio~ of tho new Village Cods and•pursu2nt to'Section ~1z.33, 4ha i'oralar tlatat•, Lie~~'t= ?o;cs, a;:~l Dt;ilding; Ca~mi.ssio~~ • has no*.~ beec~e thy: 'uhlic L';;tisi~L.'ies Com:lis:•jor~. ^Section. 412.3la1 =~. st~atea in part: 'The Corz~ission ahall co~tsist oi' three m3mbers appointed by the Council. No more than one member rray be chosen from the Council aemberahip.' ^Previoua ruling ,of pour office have held that the office of member of the villase counicil anc nieaiber ~~ of the Water, Light, Patvar and Building..Com~ission - tvsre #.ncompatible. The ~tiea~zon no~- arises as to tr~tat;ter or not 'A' xho rtes elected :~ayor of the tillage oS Janesville and tri.1J. take office. on Jan- uai"y 1, 195~f and urho is also a present member of tie ~'ttblic Utilities Colamission r+za~ continue tt! sorve on the Coa~•aissi.on ~,_iile acting as :+~ayor.^ Q[s~.8TI0id: "~'L~y th•-::~ayor ~r anp mor7'asr r,= t1-:e `jiZlag~ Counca.I also be a [Runner C° t1'ie Fr_u1i , .U+,i ~ i ti 2~J Comni9sio13 at the same time?" (1?:L i? I1T? ~l.1::.'lt''~3.rt; of ,Z.~±.~-. lU~~._SI4.], '::!:iCn Y`.'-~'I;~$ ~'1~0 reViry tilcll', ~"'.~.J T7i e~btr I;ic.}~ bC CCOSen f?"~^I'] ':hQ ~+JIIP_f~ii ;~e~±bC!^Ship.", me£:ny ;~•. ~_* one r±amroer o£ the vilys+;;a ~:;ili'_L`_'. is n7_iniblF ~n me-~bf:•::,`s., g ~e~ 1~,i07/02 14:95_FA% 651 297 12J6 ATTORNEY GENERAL OFFICE ~ OOJ/009 ,• ~cr:o~~a~~lc~ i;t2y~,••E:f ii. ;,a~dnc:: - 2. i~o~:~.~ <[; s~5'% on the public utilities commieafon. Hence, the mayo=~ or any other member of the pillage council may also be a member of a commission at the same sire, provided that at no time is thE:ra more than one membar of •che village council on such cvm- rliss5.on. The legislature undoubtedly has the power t~o nrvvide for a village council member being at the same tilae a. me;nber n~' the utilities cornn3.asio~:. C£. 45° .02 Iahich included villages, uraiier its special provision3, provia:;s for council representat?or. cn the utilities commission. Dery trcd.y ~oure • ;~III,ES LORD Attorney General RAREFY C.. SL~;30N Assistant Attorney General FzGS : j s • ge c~ Resolution No. 12061 • A RESOLUTION DESIGNATING CITY COUNCIL SEATS WHEREAS, an amendment to the City Charter was presented to the citizens of Hutchinson to designate City Council seats by a number or letter of the alphabet; and, WHEREAS, the citizens of the City of Hutchinson voted in favor of this amendment at the November 5, 2002, General Election; and, WHEREAS, the designated system shall be put in place at the next City Council meeting following the adoption of this amendment, NOW, THERFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON THAT: The City Council seats will be designated in the following manner: Mayor - Mazlin Torgerson Seat 1 -Jim Haugen • Seat 2 -John Mlinaz (Council Member-Elect Bill Arndt) Seat 3 -Kay Peterson Seat 4 -Duane Hoversten Adopted by the City Council of the City of Hutchinson this 12"' day of November, 2002. ATTEST: Mazlin Torgerson Mayor • Gary D. Plotz City Administrator ~C~~ • R55APPYRV By Check Number Checks - Ck Date Type 1 111 212 0 02 PK CITY OF HUTCHINSON AP Payment Register with Voids Check # Vendor Name Amount Vold Amount 113379 102136 BUSINESSWARE SOLUTIONS 2,005.22 2,005.22 • R55APPYRV • By Check Number Ck Date Type Check # 10/24/2002 PK 113336 10/24/2D02 PK 113337 10/24/2002 PK 113338 10/24/2002 PK 113339 10/24/2002 PK 113340 10/24/2002 PK 113341 10/24/2002 PK 113342 10/24/2002 PK 113343 CITY OF HUTCHINSON AP Payment Register with Voids Check Dates 10/24/2002 - Vendor Name Amount 115067 ARM/ACI REGISTRATION OFFICE 100.00 103665 BP 2g,p6 102213 COMMISSIONER OF TRANSPORTATION 100.00 102213 COMMISSIONER OF TRANSPORTATION 100.00 102533 HUTCHINSON CONVENTION & VISITO 6,367.04 102259 LAKE SUPERIOR COLLEGE 100.00 102563 LEAGUE OF MN CITIES 5,000.00 102606 SCHMELING OIL CO 7,788.25 19,584.35 19,584.35 IMMEDIATE PAYS n u R55APPYRV By Check Number Ck Date Type Check # 10/29/2002 PK 113344 ' 10/29/2002 PK 113345 10/29/2002 PK 113346 10/29/2002 PK 113347 10/29/2002 PK 113348 10/29/2002 PK 113349 10/29/2002 PK 113350 10/29/2002 PK 113351 10/29/2002 PK 113352 10/29/2002 PK 113353 10/29/2002 PK 113354 10/29/2002 PK 113355 10/29/2002 PK 113356 CITY OF HUTCHINSON AP Payment Register with Voids Check Date 10/25/2002 - Vendor Name Amount 102823 GOVERNMENT FINANCE OFFICERS AS 95.00 102524 GOVERNMENT TRAINING SERVICE 285.00 111229 GREIVE, BARRY 1,424.65 102543 HUTCHINSON WHOLESALE 280.92 101869 HUTCHINSON, CITY OF 1,273.50 101869 HUTCHINSON, CITY OF 354.00 102573 MCLEOD COOP POWER 10.38 114650 MINNESOTA OFFICE OF ENVIRONMEN 25.00 11319D MINNESOTA PLANNING OFFICE OF B 206.50 102745 OLD LOG THEATRE 941.25 102627 UNIVERSITY OF MINNESOTA 175.00 102627 UNIVERSITY OF MINNESOTA 120.00 108598 WAL-MART 62.78 5,253.98 5,253.98 IMMEDIATE PAYS • R55APPYRV CITY OF HUTCHINSON B Check Number AP Pa ment Re ister with Voids Checks - Ck Date T e Check # Vendor Name Amount 11/6/2002 PK 113357 101876 AETNA VARIABLE LIFE ASS. CO. 780.00 1 1 /612 0 0 2 PK 113358 101919 AMERICAN FAMILY INS CO. 106.14 11/6/2002 PK 113359 102943 BAUERLY COMPANIES 337.95 11/6/2002 PK 113360 110728 FIRE MARSHALS ASSOCIATION OF M 75.00 11/6/2002 PK 113361 101875 GREAT WEST LIFE INS. CO. 300.00 1 1 /612 0 02 PK 113362 101872 H.R.L.A.P.R. 252.30 11/6/2002 PK 113363 101869 HUTCHINSON, CITY OF 1,025.00 1 1 /612 0 0 2 PK 113364 101869 HUTCHINSON, CITY OF 394.50 11/6/2002 PK 113365 102633 HUTCHINSON, CITY OF 5,611.26 11/6!2002 PK 113366 102635 HUTCHINSON, CITY OF 503.93 11/6/2002 PK 113367 101873 ICMARETIREMENTTRUST 2,974.62 11/6Y1002 PK 113368 102123 KRISHNAMOORTHI, CHITRA 11.45 11/6/2002 PK 113369 102449 MINNESOTA CHILD SUPPORT PAYMEN 406.63 1 1 /612 0 0 2 PK 113370 101877 PRUDENTIAL 75.00 1 1 /612 00 2 PK 113371 102096 PRUDENTIAL MUTUAL FUNDS 30.00 11/6/2002 PK 113372 102052 QUALITY WINE & SPIRITS CO. 17,821.73 30, 705.51 30, 705.51 IMMEDIATE PAYS u R55APPYRV By Check Number CITY OF HUTCHINSON AP Payment Register with Voids • Check Date 11/7/2002 - Ck Date Check # Vendor Name Amount 11/7/2002 113373 ' 102524 GOVERNMENT TRAINING SERVICE 115.00 11/7/2002 113374 102649 MPCA 4,000.00 11!7/2002 113375 102649 MPCA 1,000.00 11/7/2002 113376 102841 MRPA 1,200.00 11/7/2002 113377 102613 STATE OF MINNESOTA BUILDING CO 278.20 11!7/2002 113378 102627 UNIVERSITY OF MINNESOTA 50.00 6,643.20 6,643.20 INIlVIEDIATE PAYS PAYROLL ACCOUNT -PAYROLL OF NOVEMBER 1, 2002 Period Ending: October 26, 2002 FOR COUNCIL LIST ONLY -ELECTRONIC TRANSFER • TO STATE AND IRS DO NOT ISSUE CHECKS FOR THIS PAGE AMOUNT PEID ACCT# NAME DESCRIPTION $20,853.30 9995.2034 WITH. TAX Employee Contribution -Federal Tax ACCOUNT $10,344.34 9995.2040 Empbyee Contribution -Soc. Security $2,918.10 9995.2242 Employee Contributlon -Medicare $34,115.74 Sub-Total - Empbyee Contribufion $10,344.34 9995.2240 Employer Contribution -Social Security $2,918.10 9995.2242 Employer Contribution -Medicare $13,262.44 Sub-Total -Employer Contribution 7,378.18 Grand Total - Wlthholding Tax Account ;8,713.33 9995.2035 MN DEPT OF REVENUE $9,886.64 102615 9995.2241 PERA Employee Conlribution -Pension Plan $11,795.30 102615 9995.2241 Employer Canributlon -Pension Plan 521,681.84 Sub-Total - PERA $26.01 102615 9995.2243 PERA-DCP Employee Contributlon -Pension Plan $26.01 102615 9995.2241 Employer Contribution - Penslon Plan ;52.02 Sub -Total -DCP ;21,733.96 GRAND TOTAL - PERA • Finance Director Approval C~ • • R55APPYRV CITY OF HUTCHINSON B Check Number AP Pa ment R aster with Voids Checks - Ck Date T e Check # Vendor Name Amount 11/12/2002 PK 113380 102126 ACE HARDWARE 1,126.66 11/12/2002 PK 113381 103041 ACTION ACCENTS 126.00 11/12/2002 PK 113382 102217 AEM MECHANICAL SERVICES, INC 424.10 11/12/2002 PK 113383 104570 AGGREGATES EQUIP 865.21 11/12/2002 PK 113384 101867 AMERICAN WATER WORKS ASSN 243.15 11/12/2002 PK 113385 102430 AMERIPRIDE LINEN & APPAREL 146.14 11/12/2002 PK 113386 115233 ANDERSON, JEFF 83.69 11/1212002 PK 113387 111041 ARROW TERMINAL LLC 205.68 11/12/2002 PK 113388 103127 ASCE 200.00 11/12/2002 PK 113389 102894 AUTOMATIC GARAGE DOOR 611.97 1 111 2 /2 0 02 PK 113390 104077 B & C PLBG & HTG INC. 110.82 1 1 /1 212 0 02 PK 113391 102207 BACHMAN'S 329.07 11/12/2002 PK 113392 102898 BAILEY NURSERIES 9,307.04 11/12/2002 PK 113393 101925 BECKER ARENA PRODUCTS 44.73 11/12/2002 PK 113394 102039 BENNETT OFFICE TECHNOLOGIES 204.59 11/12/2002 PK 113395 113316 BERNHAGEN, EDWIN 776.67 11/12/2002 PK 113396 113317 BERNHAGEN, HERBERT & DONNA 776.67 11/12/2002 PK 113397 113319 BERNHAGEN, JOHN & LORETTA 776.67 11/12/2002 PK 113398 101916 BERNICK COMPANIES, THE 210.22 11/12/2002 PK 113399 102810 BOELTER, GALE 52.54 1 1 11 2/2 0 02 PK 113400 101987 BRANDON TIRE CO 260.64 11/12/2002 PK 113401 102752 BRAUN INTERTEC CORP 1,254.75 11/12/2002 PK 113402 102456 C 8 L DISTRIBUTING 32,816.05 11/12/2002 PK 113403 104512, CALIFORNIA CONTRACTORS SUPPLIE 191.52 11/12/2002 PK 113404 102117 CAROUEST AUTO PARTS 59.88 11/12/2002 PK 113405 102092 CARR FLOWERS 34.63 11/12/2002 PK 113406 103014 CDI OFFICE PRODUCTS LTD 1,133.85 11/12/2002 PK 113407 104391 CENTRAL HYDRAULICS 467.75 11/12/2002 PK 113408 102143 CENTRAL LANDSCAPE SUPPLY 100.00 11/12/2002 PK 113409 102253 CENTRAL MCGOWAN 57.51 11/12/2002 PK 113410 115237 CHUCK'S CLOCK SHOP 50.00 1 1 /1 212 002 PK 113411 105423 CINDY'S HOUSE OF FLORAL DESIGN 49.60 11/12/2002 PK 113412 105318 CINTAS 45.13 11/12/2002 PK 113413 102179 CLAREYS SAFETY EQUIP 33.61 1 111 2 /2 0 02 PK 113414 102741 COBORN'S INCORPORATED 884.59 11/12/2002 PK 113415 105068 COLD SPRING GRANITE CO 884.00 1 1 /1 212 002 PK 113416 114510 COMPAQ COMPUTER CORP 13,085.65 11/12/2002 PK 113417 102484 CORPORATE EXPRESS 108.16 11/12/2002 PK 113418 103682 COUNTRY DINER CATERING INC. 173.75 11/12/2002 PK 113419 102892 CROW RIVER ARTS 255.00 11/12/2002 PK 113420 102289 CROW RIVER GLASS 1;022.06 1 1 /1 212 0 02 PK 113421 103815 CRYSTEEL TRUCK EQUIP 5,495.40 11/12/2002 PK 113422 102488 DAY DISTRIBUTING 2,656.75 1 1 /1 212 00 2 PK 113423 102698 DEVRIES, RANDY 47.90 11/12/2002 PK 113424 115241 DIAZ VALENTIN, ARTURO 10.00 11/12/2002 PK 113425 103793 DLT SOLUTUIONS 216.00 11/12/2002 PK 113426 105182 DOBRATZ, CHRIS 1,703.13 11/12/2002 PK 113427 102393 DON HUME 210.12 11/12/2002 PK I 113428 104084 DONOHUE &ASSOC 935.82 11/12/2002 PK 113429 102275 DPC INDUSTRIES INC 651.52 1 1 /1 212 0 02 PK 113430 113181 DROP-N-GO SHIPPING, INC 22.61 11/12/2002 PK 113431 103753 DUBOIS CHEMICALS 1,750.22 11/12/2002 PK 113432 102236 DUININCK BROS INC. 11,895.55 11/12/2002 PK 113433 102647 DYNASYSTEMS 1,004.34 11/12/2002 PK 113434 102343 E & T CONTRACTING 270.00 11/12/2002 PK 113435 102343 E & T CONTRACTING 90.00 11/12/2002 PK 113436 105467 EAGLE LEGAL SERVICE 148.80 11/12/2002 PK 113437 104415 EARTH TECH 120.00 11/12/2002 PK 113438 102726 ECOLAB PEST ELIM 42.60 11/12/2002 PK 113439 102354 ECONOFOODS 124.80 11/12/2002 PK 113440 114005 ENGWALL, DAN 10.00 11/12/2002 PK 113441 105106 EVIDENCE COLLECTION 8 PROTECTI 137.40 11/12/2002 PK 113442 102223 FARM-RITE EQUIPMENT 24,446.88 11/12/2002 PK 113443 104137 FASTENAL COMPANY 74.41 11/12/2002 PK 113444 105335 FERNHOLZ, JANE 13.00 11/12/2002 PK 113445 111230 FLEXOTECH GRAPHICS INC 4,009.88 11/12/2002 PK 113446 102806 FOGG JR., MICHAEL 120.00 11/12/2002 PK 113447 115116 FORCIER, PHILLIP E 90.00 11/12/2002 PK 113448 102636 FORTIS BENEFITS 2,719.55 11/12/2002 PK 113449 115236 G 8 J AWNING & STEPPINGSTONE G 947.00 1 1 /1 212 0 02 PK 113450 102526 G 8 K SERVICES 2,087.05 11/12/2002 PK 113451 102963 GENERAL REPAIR SERVICE 274.54 11/12/2002 PK 113452 113699 GOEBEL, JOSH 20.00 11/12/2002 PK 113453 105159 GOODPOINTTECHNOLOGY 356.25 11/12/2002 PK 113454 102087 GRAINGER PARTS OPERATIONS 149.00 11/12/2002 PK 113455 104814 GREEN LIGHTS RECYCLING 425.15 11/12/2002 PK 113456 101874 GRIGGS 8 COOPER & CO 4,605.70 11/12!2002 PK 113457 115234 HAAS, ANNELLA 83.69 11/12/2002' PK 113458 115231 HAAS, ROMAN 85.85 11/12!2002 PK 113459 102529 HACH COMPANY 241.01 11/12/2002 PK 113460 104432 HAGEN, BOB 123.45 11/12/2002 PK 113461 102730 HALT-BRITE INC 335.74 11/12/2002 PK 113462 102451 HANSEN DIST OF SLEEPY EYE 2,240.60 11/12/2002 PK 113463 101958 HANSON & VASEK CONSTRUCTION 2,116.53 11/12/2002 PK 113464 109799 HARRIS COMPANIES 9,620.95 11/12/2002 PK 113465 105493~ HEARTLAND TIRE & SERVICE 871.90 11/12/2002 PK 113466 103240 HEMMAH, KATHY 24.19 11/12/2002 PK 113467 103059 HEMMAH, LLOYD 75.00 11/12/2002 PK 113468 102531 HENRYS FOODS INC 722.18 11/12/2002 PK 113469 101915 HERMEL WHOLESALE 159.41 11/12/2002 PK 113470 102518 HILLYARD FLOOR CARE/HUTCHINSON 1,853.00 11/12/2002 PK 113471 102119 HOLT MOTORS INC 787.39 11/12/2002 PK 113472 102534 HUTCH AUTO BODY 200.00 1 111 212 0 0 2 PK 113473 115141 HUTCH HANDYMAN 728.26 11112/2002 PK 113474 108389 HUTCHINSON AUTO CENTER 206.32 11/12/2002 PK 113475 102530 HUTCHINSON CO-0P 242.35 11/12/2002 PK 113476 111309 HUTCHINSON HIGH SCHOOL 100.00 11/12/2002 PK 113477 102537 HUTCHINSON LEADER 14,996.61 1 1 /1 212 0 02 PK 113478 102540 HUTCHINSON PLUMBING 8 HEATING 217.00 11/12/2002 PK 113479 102541 HUTCHINSON TELEPHONE CO 8,297.38 • • • • L~ L J 11112/2002 PK 113480 102542 HUTCHINSON UTILITIES 37,756.66 11112/2002 PK 113481 102543 HUTCHINSON WHOLESALE 27.67 11/12/2002 PK 113482 101869 "VOID VOID VOID VOID VOID" 11/12/2002 PK 113483 102038 "VOID VOID VOID VOID VOID""' 11/12/2002 PK 113484 102633 HUTCHINSON, CITY OF 51,465.86 11/12/2002 PK 113485 102635 HUTCHINSON, CITY OF 4,580.45 11/12/2002 PK 113486 103099 HUTCHINSON, CITY OF 1,563.95 11/12/2002 PK 113487 103246 HUTCHINSON, CITY OF 8,263.03 11/12/2002 'PK 113488 105160 HUTCHINSON, CITY OF 17,940.12 11/12/2002 PK 113489 103079 ICE SKATING INSTITUTE OF AMERI 178.32 11/12/2002 PK 113490 103606 INDEPENDENT EMERGENCY SERVICES 75.00 11/12/2002 PK 113491 ; 102779 1NDEPENDENTSCHOOLDIST.#423 8,419.91 11/12/2002 PK 113492 102702 INDUSTRIAL MAINT SUPPLIES 53.68 11/12/2002 PK 113493 103051 INFRATECH 71.59 1 1 /1 212 00 2 PK 113494 115153 INSTRUMENT CONTROL SYSTEMS INC 3,397.85 11/12/2002 PK 113495 103520 INTERSTATE BATTERIES 582.14 11/12/2002 PK 113496 102062 JACK'S UNIFORMS 8 EQUIPMENT 60.10 11/12Y2002 PK 113497 111836 JACOBSEN, SEPTEMBER 35.64 11/12/2002 PK 113498 111192 JAHN, DAVID 18.00 11/12/2002 PK 113499 102208 JEFF'S ELECTRIC 2,744.79 1 1 /1 212 00 2 PK 113500 101938 JOHNSON BROTHERS LIQUOR CO. 11,834.13 11112!2002 PK 113501 115136 JOSE/GAGNAN, JENNIFER 200.00 11/1212002 PK 113502 110507 JUNGCLAUS IMPLEMENT INC 300.00 11/12/2002 PK 113503 102555 UUUL CONTRACTING CO 322.00 11/12/2002 PK 113504 102555 JUUL CONTRACTING CO 3,892.00 11/12/2002 PK 113505 102555 JUUL CONTRACTING CO 3,538.50 1 111 2/2 0 0 2 PK 113506 102555 JUUL CONTRACTING CO 9,921.40 11112/2002 PK 113507 115115 KALDAHL, TIM 14.20 11/12/2002 PK 113508 102986 KARP RADIO 204.00 11/12/2002 PK 113509 103700 KIRCHER, WENDY 29.00 11/1212002 PK 113510 105697 KOIC-0102 360.00 1 1 /1 212 0 02 PK 113511 115117 KRAEMER, AMY 10.00 11112/2002 PK 113512 102561 L & P SUPPLY CO 6,040.27 11/12/2002 PK I 113513 101946 LAB SAFETY SUPPLY INC 216.23 11/12/2002 PK 113514 101976 LAKESIDE EQUIPMENT CORP 2,660.00 11/12/2002 PK 113515 115238 LANDFAIR, JOLENE 16.00 11/12/2002 PK 113516 114699 LATOUR CONSTRUCTION 340,899.74 11/12/2002 PK 113517 101974 LENNEMAN BEVERAGE DIST. INC 2,875.85 11/12/2002 PK 113518 101984 LOCHER BROTHERS INC 21,584.50 1 111 212 0 02 PK 113519 102571 MACOUEEN EQUIP INC 46,860.00 11/12/2002 PK 113520 115240 MAJESKI, LERITA 5.00 11/12/2002 PK 113521 102093 MANKATO MACK SALES 35.29 1 111 212 0 0 2 PK 113522 102565 MARCO BUSINESS PRODUCTS 1,278.00 11/12/2002 PK 113523 115139 MAY, JON 178.50 11/12/2002, PK 113524 102144 MCBROOM CONSTRUCTION 4,126.00 11/12/20021 PK 113525 101986 MCKAY, KAREN 74.51 1 111 2 /2 00 2 PK 113526 102674 MCLAIN, DEETTA 84.98 11/12/2002 PK 113527 102166 MCLEOD COUNTY PUBLIC HEALTH NU 57.00 11/1212002 PK 113528 103783 MCLEOD PUBLISHING INC 77.00 11/12/2002 PK 113529 102574 MEEKER WASHED SAND 8 GRAVEL 476.70 1 1 /1 212 0 02 PK 113530 112400 MENARDS - HUTCHINSON 862.36 11/12/2002 PK 113531 115134 MES-MINNESOTA 198.74 11/12/2002 PK 113532 102131 METRO ATHLETIC SUPPLY 203.30 11/12/2002 PK 113533 108663 MID AMERICA BUSINESS SYSTEMS 13,803.44 11/12/2002 PK 113534 101889 MID-MINNESOTA HOTMIX INC 2,070.68 11112/2002 PK 113535 104957 MIKE CRAVES TRUCKING 14,277.50 11/12/2002 PK 113536 108770 MINNESOTA DEPT OF ADMIN INTERT 99.31 11/12/2002 PK 113537 101992 MINNESOTA DEPT OF HEALTH 23.00 11/12/2002 PK 113538 102754 MINNESOTA GIS/LIS CONFERENCE 205.00 11/12/2002 PK 113539 102569 MINNESOTA MUTUAL LIFE 920.43 11/12/2002 PK 113540 105157 MINNESOTA SHREDDING 54.95 11/12/2002 PK 113541 102570 MINNESOTA SPORTS FEDERATION 96.00 1 111 2 /2 0 02 PK 113542 102581 MINNESOTA U C FUND 108.80 11/12/2002 PK 113543 102583 MINNESOTA VALLEY TESTING LAB 3,933.75 11/12/2002 PK 113544 104583 MOBILE VISION INC 118.03 1 111 212 002 PK 113545 102115 MUNITECH INC 490.72 11/12/2002 PK 113546 101985 NAGY, RICHARD 30.00 11/12/2002 PK 113547 110363 NASH FINCH COMPANY 383.42 11/12/2002 PK 113548 102591 NORTHERN STATES SUPPLY INC 119.26 1 111 2/2 0 02 PK 113549 115135 NOVELL, INC 2,649.93 11/12/2002 PK 113550 102791 NSPE 250.00 11/12/2002 PK 113551 111001 OLSON POSTER SUPPLY 130.00 11/12/2002 PK 113552 110174 ONDEO NALCO CO 6,025.28 11/12/2002 PK 113553 102483 OTTO ASSOCIATES 129.25 1 1 /1 212 0 02 PK 113554 104785 PACK, BYRON 45.00 11/12/2002 PK 113555 102596 PETERSON BUS SERVICE 434.60 11/12/2002 PK 113556 101853 PHILLIPS WINE & SPIRITS 9,654.90 11/12/2002 PK 113557 102373 PINNACLE DISTRIBUTING 488.42 11/12/2002 PK 113558 102593 PLOTZ, GARY D. 376.25 11/12/2002 PK 113559 114774 PORTRIATAMERICA 200.00 11/12/2002 PK 113560 102445 POSTMASTER 660.00 11/12/2002 PK 113561 102232 PRAIRIE RESTORATION 4,350.00 11/12/2002 PK 113562 103605 PRECISION LINE BORING 110.00 11/12/2002 PK 113563 102493 PREMIER TECH PACKAGING 426.95 1 1 /1 212002 PK 113564 102899 PRIEVE LANDSCAPING 79.88 11/12/2002 PK 113565 102598 QUADE ELECTRIC 686.40 11/12/2002 PK 113566 102052 QUALITY WINE & SPIRITS CO. 230.79 11/12/2002 PK 113567 102398 R & R EXCAVATING 11,592.85 1 111 212 0 02 PK 113568 114718 RBSCOTT EQUIPMENT 519.37 1 1 /1 212 0 02 PK 113569 102395 REINER IRRIGATION & SEPTIC 455.75 11/12/2002 PK 113570 103830 RELIABLE 104.87 1 1 /1 212 0 02 PK 113571 105266 RESERVE ACCOUNT 2,181.00 11/12/2002 PK 113572 104149 RIVER VALLEY TRUCK CENTERS 73.91 11/12/2002 PK 113573 102205 RJ TRANSFER 615.56 1 1 /1 212 0 02 PK 113574 105193 RUNKE, JOLEEN 6.97 11/12/2002 PK 113575 102225 RUNNING'S SUPPLY 935.90 1 1 /1 212 0 02 PK 113576 115239 RUPPERT, CHERI 18.00 11/12/2002 PK 113577 104437 S.W.A.T. 26.95 1 1 /1 212 0 02 PK 113578 102621 SALTMAN, THE 308.22 11/12/2002 PK 113579 102436 SARA LEE COFFEE 8 TEA 192.60 11/12/2002 PK 113580 115154 SCHAUER & SONS CONST 2,691.00 11/12/2002 PK 113581 115138 SCHLAUDERAFF, LORRAINE 86.00 11112/2002 PK 113582 115113 SCHLOSSER, CRYSTAL 200.00 11/12/2002 PK 113583 102606 SCHMELING OIL CO 2,680.83 • ~J L J • 11!12/2002 PK 113584 114431 SCHOEP 8 SONS CONTRACTING 40,338.35 11!12/2002 PK 113585 113318 SCHWARZE, RUTH 8 MALCOLM 776.67 11/12/2002 PK 113586 101892 SEH 35,835.34 11!12/2002 PK 113587 102749 SENIOR CENTER ADVISORY BOARD 222.00 11/12/2002 PK 113588 105011 SENSIBLE LAND USE COALITION 40.00 11/12/2002 PK 113589 102719 SHAW, KAREN 96.00 11!12!2002 PK 113590 113324 SHIP IT 182.04 11!1212002 PK 113591 102609 SHOPKO 42.87 11/12/2002 PK 113592 102106 SIMPLEXGRINNELL LP 231.20 11/12/2002 PK 113593 102204 SOIL CONTROL LAB 955.00 11/12/2002 PK 113594 102611 SORENSEN'S SALES & RENTALS 415.08 11/12/2002 PK 113595 105064 SPRUCE RIDGE LANDFILL 9,962.17 11/12/2002 PK 113596 103363 ST. CLOUD RESTAURANT SUPPLY 491.52 11/12/2002 PK 113597 102747 ST. JOSEPH'S EQUIPMENT INC 815.26 1 111 2/2 0 0 2 PK 113598 102612 STANDARD PRINTING 304.07 1 111 2/2 0 0 2 PK 113599 105307 STANTON GROUP 550.00 11/12/2002 PK 113600 102584 STAR TRIBUNE 27.95 1 111 2/2 0 02 PK 113601 103062 STEPP MFG CO INC 1,303.25 1 111 2/2 0 02 PK 113602 103094 SUBWAY 71.70 11/12/2002 PK 113603 105103 SUBWAY-SOUTH 5.61 1 1 /1 212 0 02 PK 113604 108773 SWIFT, BERNETTA 12.00 1 111 2/2 0 0 2 PK 113605 102054 TELECKY, DAVE 100.00 11/12/2002 PK 113606 103567 THODE, MATT 30.00 1 111 212 0 02 PK 113607 115152 TM POLY FILM INC 3,342.20 1 1 /1 212 0 02 PK 113608 102620 TRI CO WATER 187.16 1 111 2/2 0 0 2 PK 113609 102454 TRI-COUNTY BEVERAGE & SUPPLY 26.80 11/12/2002 PK 113610 115114 TWIN CITY FILTER SERVICE INC 100.18 1 1 /1 212 0 02 PK 113611 102619 TWO WAY COMM INC 892.24 1 111 2/2 0 02 PK 113612 102201 UHL CO. 2,000.00 11/12/2002 PK 113613 102623 UNIFORMS UNLIMITED 42.55 1 111 212 0 02 PK 113614 102624 UNITED BUILDING CENTERS 696.16 1 111 2/2 0 0 2 PK 113615 102627 UNIVERSITY OF MINNESOTA 30.00 11/12/2002 PK 113616 103210 USA BLUE BOOK 448.39 1 1 /1 212 0 02 PK 113617 102419 VALLEY SALES OF HUTCHINSON 102.59 1 1 /1 212 0 02 PK 113618 112569 VAN SICKLE, ALLEN 8 ASSOC 532.22 1 1 /1 212 0 02 PK 113619 107553 VANDER VEEN, PATRICE 51.10 1 111 212 0 0 2 PK 113620' 113695 VEDDER, TYLER 36.00 1 111 2/2 0 02 PK 113621 102132 VIKING COCA COLA 318.04 1 1 11 2/2 0 02 PK 113622 104709 VNID IMAGE 18.75 1 1 /1 212 0 02 PK 113623 102642 W. D. COOLING CLINIC 917.35 1 1 /1 212 0 02 PK 113624 103342 WAHL REBUILD & REPAIR INC 187.28 1 111 212 0 02 PK 113625 115137 WALTER/ODEGARD, JENNIFER 200.00 1 1 11 212 0 02 PK 113626 105122 WASTE MANAGEMENT 42,248.44 1 111 212 0 02 PK 113627 115232 WEGNER, BILL 110.31 1 111 212 0 0 2 PK 113628 115235 WEMCO PUMP 9,133.00 1 111 212 0 02 PK ~ 113629 104173 WENDOLEK, LINDA 68.00 1 111 212 0 02 PK i 113630 114902. WHITE,JULIE 10.00 1 111 2/2 0 0 2 PK 113631 115140 WINSLOW, ROBERT 100.00 11/12/2002 PK 113632 103450 WINZER CORP 183.12 11/12/2002 PK 113633 101963 WITTE SANITATION 94.92 1 111 2/2 00 2 PK 113634 103779 WOODS END RESEARCH LAB 185.50 11/12/2002 PK 113635 103068 WRIGHT, LEE 20.56 11/12/2002 PK 113636 102632 XEROX CORP 607.57 11/12/2002 PK 113637 103980 ZARNOTH BRUSH WORKS 110.76 11/12/2002 PK 113638 105571 ZEP MANUFACTURING CO 184.69 11/12/2002 PK 113639 101869 HUTCHINSON, CITY OF 30.31 11/12/2002 PK 113640 102038 HUTCHINSON, CITY OF 522.95 1,021,368.81 Account Number 1,021,368.81