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cp04-14-1998 c• s APRIL SUNDAY MONDAY TUESDAY 77 1998 -12- -13- -14- 9:00 a.m. — Management Team in HUTCHINSON 1:00 p.m. — HATS Joint Powers Main Conf. Room CITY EASTER Board Meeting at HATS Facility CALENDAR 2:00 p.m. — Open Bids at City Center for Demolition of Old WEEK OF Wastewater Plant April 12 to April 18 5:30 p.m. — Light Traffic Advisory 5:30 p.m. - City Council Meeting Board Meeting in City Center in City Council Chambers Main Conference Room WEDNESDAY THURSDAY FRIDAY SATURDAY -15- -16- -17- -18- CONFERENCE /SEMINAR/ 10:00 a.m. - Employee Safety 7:00 a.m. — Economic Development VACATION Committee Meeting Authority Meeting at in City Center Library City Center 4/13 Mark Hensen (V) Conference Room 4/16 -17 John Rodeberg (M) C =Conference M = Meeting S = Seminar T = Training V = Vacation AGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL • TUESDAY, APRIL 14, 1998 2. INVOCATION - Rev. Michael Wuehler, Vineyard United Methodist Church �n.Iy MINUTES OF REGULAR MEETING OF MARCH 24, 1998 Motion to approve as presented 4. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS BUILDING OFFICIAL'S REPORT - MARCH 1998 2. LIBRARY BOARD MINUTES OF MARCH 23, 1998 (b) RESOLUTIONS AND ORDINANCES • 1. ORDINANCE NO. 98 -220 — AN ORDINANCE REPEALING EXISTING SECTION 6.21 OF THE HUTCHINSON CITY CODE ENTITLED "TOBACCO" BY REPEALING EXISTING SECTION 6.21 AND ADOPTING SUBSTITUTE LANGUAGE AND ADOPTING BY REFERENCE, CITY CODE CHAPTER 1 IN SECTION 2.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS (SECOND READING AND ADOPT) 2. ORDINANCE NO. 98 -221 — AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AMENDING CITY CODE CHAPTER 6 ENTITLED "OTHER BUSINESS REGULATIONS AND LICENSING" BY ADDING SECTION 6.44 ENTITLED "DANCES" AND BY ADOPTING BY REFERENCE, CITY CODE CHAPTER 1 AND SECTION 2.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS (SECOND READING AND ADOPT) 3. RESOLUTION NO. 11001 — DESIGNATION OF ADDITIONAL DEPOSITORY OF CITY FUNDS (c) APPOINTMENTS TO LIBRARY BOARD ➢ LOIS CARLSON (SECOND TERM) ➢ RICHARD PETERSON (SECOND TERM) (d) USE PERMIT FOR PORTION OF PARKING LOT AT SECOND AVENUE SE AND HASSAN STREET SE ON MAY 16, 1998 (8:00 A.M. TO 12:00 NOON) BY • HUTCHINSON GARDEN CLUB FOR ANNUAL PLANT SALE CITY COUNCIL AGENDA — APRIL 14, 1998 (e) OUT -OF- COUNTRY TRAVEL FOR POLICE CHIEF TO ATTEND CONFERENCE IN WINNIPEG, MANITOBA (t) TRANSFER OF SECURITIES FOR FAHEY SALES AGENCY LOAN TRANSACTION (g) Hi T HINSON JAY ... WATER CA RNIVA L REQUESTS /ACTIVITIES: ➢ PERMIT FOR CARNIVAL MIDWAY SHOW ➢ CLOSE STREETS ➢ PARADE PERMIT FOR KIDDIE DAY PARADE ➢ PARDE PERMIT FOR GRANDE DAY PARADE ➢ PERMIT FOR CONCESSION STAND ➢ PERMIT FOR WATER CARNIVAL, "OUTDOOR DANCE" ➢ PERMIT FOR WATER CARNIVAL DANCE ➢ PERMIT FOR FIREWORKS DISPLAY ➢ ON -SALE NON - INTOXICATING MALT LIQUOR LICENSE ➢ PERMIT FOR SET -UPS AT WATER CARNIVAL DANCE ➢ WAIVER OF FEES AND RENTAL COSTS FOR WATER CARNIVAL Action - Motion to approve consent agenda �jll:lq COB: I : ; ► ' (a) LETTING NO. 3, PROJECT NO. 97-30,98-04,98-05, 98-06,98-07, 98 -08, 98 -09, 98 -10 (1998 STREET AND SIDEWALK IMPROVEMENTS) • Action - Motion to close hearing - Motion to reject - Motion to approve and adopt Resolutions No. 10997 & No. 10998 (b) LETTING NO. 5, PROJECT NO. 98-14 (BLOCK 50 ALLEY IMPROVEMENTS) Action — Motion to close hearing — Motion to reject — Motion to approve and adopt Resolutions No. 10999 & No. 11000 (a) DISCUSSION OF SURFACE WATER MANAGEMENT UTILITY BY ROBERT OBERMEYER OF BARR ENGINEERING COMPANY Action — (b) PETITION TO REINSTATE ORIGINAL ELEVATIONS EXISTING PRIOR TO ANNEXATION ON OTTER STREET SW Action - L AI9 lei M 9 1 DI 1 ► • Ll 2 CITY COUNCIL AGENDA — APRIL 14, 1998 8. NEW BUSINESS (a) CONSIDERATION OF ACCEPTING BID FOR AWARDING CONTRACT FOR DEMOLITION OF OLD WASTEWATER PLANT (LETTING NO. 6, PROJECT NO. 98-16) Action — Motion to reject — Motion to approve bid and award contract (b) CONSIDERATIONS FOR INDUSTRIAL PARK DEVELOPMENT: 1. DONATION OF SEVEN ACRES OF LAND BY RONALD MCGRAW 2. PURCHASE OF TWO ACRE PARCEL OWNED BY LEONARD MILLER 3. PURCHASE OF 1.06 ACRE PARCEL OWNED BY ALLIED PROPERTIES OF HUTCHINSON 4. RESOLUTION NO. 11002 TO PROVIDE FUNDING FOR COSTS INVOLVED FOR INDUSTRIAL PARK DEVELOPMENT Action — Motion to reject — Motion to approve and enter into agreement and adopt Resolution No. 11002 (c) CONSIDERATION OF REQUEST FROM AUGUSTA BUILDING CORPORATION TO REMOVE LAND FOR CENTURY COURT APARTMENTS II FROM TIF DISTRICT • Action — Motion to reject — Motion to approve (d) CONSIDERATION OF ESTABLISHING DATE FOR SPECIAL CITY COUNCIL WORKSHOP ON APRIL 28, 1998 AT 7:00 A.M. Action— Motion to reject— Motion to approve (e) CONSIDERATION OF LEASE AGREEMENT BETWEEN ABBYCO AND HUTCHINSON AREA HEALTH CARE, INC. TO RENT SPACE FOR HOSPITAL HOSPICE PROGRAM Action — Motion to reject — Motion to approve lease agreement 9. MISCEL.L.ANEOUS (a) COMMUNICATIONS 10. CLAIMS, APPROPRIATIONS ND CONTRACT PAYMENTS (a) VERIFIED CLAIMS Action - Motion to approve and authorize payment from appropriate funds i 1 1: ►lu ►Y 1 11 MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL • TUESDAY, MARCH 24, 1998 Vice President Mlinar called the meeting to order at 5:30 p.m. Present: Vice President John Mlinar, Council Members Kay Peterson and Don Erickson. Absent: Mayor Marlin Torgerson and Council Member Jeff Haag. Also present: City Administrator Gary D. Plotz, City Engineer John Rodeberg and City Attorney G. Barry Anderson. 2. Pastor Tim Caspers gave the invocation. 3. MENUTES The minutes of the regular meeting of March 10, 1998 and bid opening minutes of March 23, 1998 were approved as presented. 4. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. FINANCIALMWESTMENT REPORT - FEBRUARY 1998 2. PLANNING COMMISSION MINUTES OF FEBRUARY 17, 1998 3. LIGHT TRAFFIC ADVISORY BOARD MINUTES OF MARCH 9, 1998 • 4. AIRPORT COMMISSION MINUTES OF FEBRUARY 23, 1998 (b) RESOLUTIONS AND ORDINANCES 1. ORDINANCE NO. 98 -221 — AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AMENDING CITY CODE CHAPTER 6 ENTITLED "OTHER BUSINESS REGULATIONS AND LICENSING" BY ADDING SECTION 6.44 ENTITLED "DANCES" AND BY ADOPTING BY REFERENCE, CITY CODE CHAPTER 1 AND SECTION 2.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS (FIRST READING AND SET SECOND READING FOR APRIL 14, 1998) 2. RESOLUTION NO. 10993 — ACCEPTING PLEDGED SECURITIES FROM MARQUETTE BANK, HUTCHINSON, MN 3. RESOLUTIONS RECEIVING REPORTS AND CALLING FOR HEARING ON IMPROVEMENT(S): • RESOLUTION NO. 10994 — LETTING NO. 3, PROJECT NOS. 97 -30, 98 -04, 98 -05, 98 -06, 98 -07, 98 -08, 98 -09, 98 -10 • RESOLUTION NO. 10995 - LETTING NO. 5, PROJECT NO. 98 -14 (c) SHORT -TERM GAMBLING LICENSE FOR MCLEOD COUNTY WOMEN'S D.U., CHAPTER 261, ON MAY 15, 1998 (d) REQUEST FOR EXTENSION OF VARIANCE FOR SIX MONTHS BY GARY DOBMEIER, MAILBOXES, ETC. WITH FAVORABLE RECOMMENDATION • OF PLANNING COMMISSION WITH STAFF RECOMMENDATIONS (e) COMMERCIAL LOAN FROM HCDC /EDA FOR PAUL KOCH ,e�_I CITY COUNCIL MINUTES — MARCH 24, 1998 (f) COMMERCIAL LOAN FROM HCDC/EDA FOR NEIL JENSEN • (g) HARDEE /AMERICA'S FITNESS FAMILY WALK, ROLL AND FUN RUN (h) ON SALE SUNDAY LIQUOR LICENSE FOR GOLD COIN, INC. Motion was made by Erickson, seconded by Peterson, to approve the consent agenda. Motion unanimously carried. 5. PUBLIC HEARING — 6:00 P.M. (a) ADOPTION OF CITY TOBACCO ORDINANCE Vice President Mlinar called the hearing to order at 6:00 p.m. The City Attorney stated that the public hearing was required by State law. He noted two revisions in the proposed ordinance. Anderson reported that a couple local businessmen had called his office in support of the ordinance. Anne Hoyer, Tri-County Coordinator, commended the City Attorney on the way he had handled the topic. She reviewed Subdivision 7 and 8 and inquired how the City's vending machines related to the State law. She was informed that the City of Hutchinson had previously eliminated vending machines, except in locations where minors under 18 were not present. She encourap ti the City Council to vote for a strong tobacco law and recommended removing the word "freely" from the ordinance. • Four teenagers who had addressed the County Commissioners at the County public hearing stressed the necessity of making it difficult for young people to obtain tobacco products. Many of their friends were already addicted to cigarettes and found it hard to quit smoking. Motion was made by Erickson, seconded by Peterson, to close the hearing at 6:15 p.m. Motion unanimously carried. The City Attorney recommended that the word "freely" be removed from the ordinance and that the vending machines issue be brought into line with State law. He will have an amended ordinance with the two proposed changes for the next meeting. Motion was made by Erickson, seconded by Peterson, to waive the first reading and approve the two changes for the second reading of Ordinance No. 98 -220 on April 14, 1998. Motion unanimously carried. During discussion of the fee for a tobacco license, it was determined to set the yearly fee at $150.00. Motion was made by Peterson, seconded by Erickson, to approve $150.00 as the tobacco license fee. Motion unanimously carried. luU . MY eM901611i ;.Ut tl. �7►ic! • CITY COUNCIL MINUTES — MARCH 24, 1998 • (a) PRESENTATION BY DICK LENNES REGARDING 1997 ACCOMPLISHMENTS BY HUTCHINSON COMMUNITY DEVELOPMENT —AN EDA The presentation was deferred to the April 28, 1998 City Council meeting. AI W 10 M 11 D1 1 1►I • Q (a) CONSIDERATION OF HUTCHINSON SPONSORING REGIONAL LEAGUE OF MINNESOTA CITIES WORKSHOP IN FALL 1998 Motion was made by Erickson, seconded by Peterson, to approve sponsoring the fall 1998 workshop. Motion unanimously carried. (b) CONSIDERATION OF ESTABLISHING COMMUNITY DEVELOPMENT FUND Motion was made by Peterson, seconded by Erickson, to approve and adopt Resolution No. 10996. Motion unanimously carried. (c) CONSIDERATION OF ADOPTING 1998 CITY POLICIES/FEE SCHEDULES Motion was made by Erickson, seconded by Peterson, to approve all policies and fee schedules except for the tobacco license fee. Motion unammously carried. • (d) CONSIDERATION OF REQUEST FOR MECHANICAL BIDS BY HUTCHINSON COMMUNITY HOSPITAL Motion was made by Erickson, seconded by Peterson, to approve the request for bids. Motion unanimously carried. (e) CONSIDERATION OF ACCEPTING BID FOR SALVAGE OF MATERIALS AT OLD WASTEWATER PLANT Motion was made by Peterson, seconded by Erickson, to approve and award the bid to R. T. Scrap & Iron for $1,158.00. Motion unanimously carried. (f) CONSIDERATION OF APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR OLD WASTEWATER PLANT DEMOLITION It was reported that Rust E &I will complete the plans and specifications for the demolition work. Motion was made by Erickson, seconded by Peterson, to approve the plans and specifications and to authorize advertisement for the bids. Motion unanimously carried. (g) CONSIDERATION OF APPROVING MEMORANDUM OF AGREEMENT FOR ADVANCED FLOOD WARNING DEVICES FOR THE SOUTH FORK OF THE CROW RIVER • CITY COUNCIL MINUTES — MARCH 24, 1998 It was requested that this item be deferred. r Motion was made by Erickson, seconded by Peterson, to defer. Motion unanim ously carried. 9. MISCELLANEOUS (a) COMMUNICATIONS FROM DIRECTOR OF BUILDING/PLANNING /ZONING Director Marka requested authorization to travel to Troy, Michigan to attend a four - day seminar from March 26 -29, 1998. He reported all expenses would be covered by the Board of Architecture/Engineering, and the per diems would be rebated to the City. Motion was made by Peterson, seconded by Erickson, to approve the out -of -state travel. Motion unanimously carried. (b) COMMUNICATIONS FROM CITY ATTORNEY Anderson reported on additional complaints received regarding cable television, and he has contacted the Triax cable office about the issues. The customer service standards for Triax are in the process of being drafted. (c) COMMUNICATIONS FROM COUNCIL MEMBER KAY PETERSON Peterson stated that the Pioneerland Library System will hold an award dinner in • Willmar on April 16, 1998, at which time Ralph Bergstrom will be presented with a post humous award. The Bergstrom children will be invited to attend and accept the award. She also reported that the library card catalog is now available on the internet. (d) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING Rodeberg commented on a letter received from the Dobratz -Hantge Funeral Chapel. It was their recommendation to remodel the Oakland Cemetery holding vault into a small chapel and office area. Dobratz -Hantge would be committed financially and operationally to a joint effort with the City to provide an alternative location for funeral service matters. The City Engineer reported that the loop detector is not working at Washington Avenue for the sound bound Main Street traffic. He requested approval of Supple- mental Agreement No. 1 for repair of the downtown traffic signal. The City share will be $320.00 from the state aid fund. Motion was made by Peterson, seconded by Erickson, to approve the repair. Motion unanimously carried. (a) VERIFIED CLAIMS Motion was made by Erickson, seconded by Peterson, to approve the claims and is CITY COUNCIL MINUTES — MARCH 24, 1998 • authorize payment from appropriate funds. Motion unanimously carried. : 1 I l:►ul x ► 1 There being no further business, the meeting adjourned at 6:19 p.m. • • CITY OF HUTCHINSON BUILDING / PLANNING / ZONING DEPARTMENT 1 I 1 HASSAN STREET S.E., HUTCHINSON, A1N 55350 PHONE: 612. 234 -4216 FAX: 612. 234.4240 March 1998 _ u NEW RESIDENTIAL PRIVATELY OWNED PUBLICLY OWNED HOUSEKEEPING aem Number Of Valuation of Number d Valuation of BUILDINGS No. Bulldmtga &rW4ge dl � � O = � a) c (.) 0 S detached 101 3 3 427,403 Single-family houses. attached SeavenA bh -pgnE b molw4 wbuW aN,e aOeMw. rrrd 102 S a YF1 Two-larrvly buscings 107 Three- end four -farm 104 Flu r.moref - buddirgs 105 TOTAL Sum of 101.106- 109 3 3 NEW RESIDENTIAL PRIVATELY OWNED PUBLICLY OWNED NONHOUSEKEEPING tsar Number of I valu•uon of Number of Valuslkm of BUILDINGS No. ca ft bn L»rl • Hotels, motels, and louhel cabins (benNaccommodataccommodatioaaccommodations o 1 117 Other N a raOUe•epinq shelter 214 Eallff NEW PRIVATELY OWNED PUBLICLY OWNED NONRESIDENTIAL Item Number Vacation of Number of Vastlon d BUILDINGS No. of construction BLOW" cauurucaon Bu ildnps Orrwf cents Omit carps a ) c Amusement. social, and recreational 716 - Churches and other religious 719 Industrial 320 Parking garages (buildings a open dsdstl) 321 Service stations and relow garages 322 . Hospitals and Institutional 723 Offices, bards, and Professional 324 Public works and utilities 326 Schools and other educadoral 326 Stores and customer services 327 Other nonresidentlal bulk9rgs 326 jjjj Stnxlures other than buidtga 329 ADDITIONS, PRIVATELY OWNED PUBLICLY OWNED ALTERATIONS, Item Number Valuation of Number of Vastbn of AND CONVERSIONS No. of c nslnrction Buldrga conalruction Buldrgs Orr cents Ornt coats (a) (b) (c) (d) (e) Residential - Cassiy adddors of 434 garage, And carp" n Tram 438 . 1 Now"dentfal and nonhousekeepirp 437 7 488 Additions of residential garages and am - carports (attached and detached) nnn DEMOLIITONS PRIVATELY OWNED PUBLIC YOWNED AND RAZING Item Number Number of Number of Number of OF BUILDINGS No. of Buldrgs Houag units Buildings Hotuaq nits (•) ) (c S'rgle -lenity houses (anschad end 646 "$Chad) Two-lemily buLdInp 646 Three- and four -lamay buildings 647 Flve-or-more family bulkings 646 AM other buildings and si+r !t 649 RRR -4, RRS -1, RNR -2, SIGN -1, MHI -5, FENCE -1, Total permits 33 Total VAluatlon $1 Hutchinson Public Library Board Meeting • Monday, March 23, 1998 Members Present Mary-Henke, Paul Wright, Sue Munz, Kay Peterson, Joe Schulte, Richard Peterson, Larry Ladd, Lois Carlson. Members Absent Connie Lambert, Joyce Beytien Meeting called to order by Paul Wright. The minutes from the February meeting were read and accepted. Old Business: Mike Fallon from F & W Roofing presented his thoughts on the leaky roof problem. After commenting on the situation, he recommended re- roofing the building. After discussing all aspects of the roof problems, the motion was made by Sue Munz and seconded by Joe Schulte that the matter should be referred to City Hall so they can research the situation and get it into the budget for next year. Note cards and book markers were passed out to members. It was decided to sell note cards 10 for $5.00. They will be displayed in the library and Chamber office. Free book marks will be given to new customers, placed in newcomers pamphlets and given to the Chamber to pass out. Bookmarks will sell for 25 cents. Joyce Beytien was thanked for all the work she did in arranging for the markers and notes. Mary Henke reported on a future meeting with Grant Knutson, McLeod County Commissioner. This will include PLS reps and four libraries (Brownton, Winsted, Glencoe & Hutchinson). Probably after Easter. Subjects to discuss -- communication between county and library, automation, and funding. • Mary presented an update on National Library Week, April 19 -25. Children's author, Judy Nichols, will be at the library, there will be an Origami program, plus book drawings and give - aways. Sue Munz announced her plans to resign from the PLS Board. It was recommended that Kay bring this to the attention of the Mayor and look for a replacement. New Business April 16 is the PLS award dinner in Willmar. Ralph Bergstrom will be honored. An invitation will be sent to the Bergstrom children. Mary Henke and Paul Wright will attend. A survey from the Minn. Library Trustee Assoc. was discussed. It was felt it was a duplicate service and not necessary. The Board recommended the reappointment of Richard Peterson and Lois Carlson. Larry Ladd reported on PLS. They discussed the awards dinner, discussed salaries, what City budgets can handle, automation, insurance responsibilities, recording the donation of books and their inventory. The next meeting will be April 27, 1998 at 4:30 PM. Meeting adjourned. Secretary pro tem, Lois Carlson 4 - A (2) • • • ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW DAVID B. ARNOLD' STEVEN A. ANDERSON G. BARRY ANDERSON LAURA K. FRETLAND PAUL D. DOVE" JANE VAN VALKENBURG RICHARD G. MDGEE CATHRYN D. REHER WALTER P. MICHELS, III JAMES UTLEY 101 PARK PLACE HUTCHINSON, MINNESOTA 55350-2563 (3 20) 587 -7575 FAX (320) 567 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON 'ALSO .ADMITTED IN TEXAS AND NEW YORK Ms. Marilyn Swanson Hutchinson City Center 111 Hassan Street SE Hutchinson, Mn. 55350 Re: City Council Meeting Our File No. 3188 -87001 Dear Marilyn: April 14, 1998 APR 14 1498 CITY OF HUTCHINSON OF COUNSEL ARTHUR L. DOTEN 5881 CEDAR LAKE ROAD MINNEAPOLIS. MINNESOTA 55416 (612) 545 -9000 FAX (612) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (61 2) 382214 FAX (61 2) 389 -5508 I am enclosing herewith a revised Tobacco Ordinance that contains two changes f rom the draft previously approved by the City Council. I have changed the period of time for the license so that it conforms with most of the rest of the City's �O o licensing provisions; j&, t he license period will run from January 1 to December 31. Second I included language in Subd 8(C) that allows tobacco sales within an enclosed facility which must_ be under continuous supervision by an employee, er the a e of 18 years of a e is prohibited and a fully functioning door must also be a portion of the premises. This has the effect of allowing the 'smoke shop' type facility. Whether or not the Council wis es�to do this is, of course, a matter of public policy and is something that can be discussed at this evening's City Council meeting. I am also requesting that we consider as a post - agenda item the request from Sam and Shari Colvin for reimbursement for certain expenses relating to water damage occurring on June 29, 1997. The Council may or may not wish to act on this request this evening but I am providing the background information for your consideration. In discussing the matter with the insurance carrier, the claims representative handling this claim indicated that the League Trust was willing to make a payment of approximately one -half of the amount in dispute. Mr. and Mrs. Colvin have requested that the Council consider reimbursement of the full amount of $550.82. There is some history here of difficulties with water in the area although the problems experienced by Mr. and Mrs. Colvin, while real, are related to developmental issues and not to any errors on the part of the City as far as I can tell. Nonetheless, their situation does seem unique. did indicate in visiting with Mr. and Mrs. Colvin that they are certainly entitled to have the matter placed / 9� before the City Council and they are requesting that this claim be paid. I would recommend payment of this claim as long as Mr. and Mrs. Colvin are willing to enter into a formal Release of All Claims which will recite that the City is not responsible for payment of damages and that this claim along with all prior claims are now considered satisfied and paid in full. The benefit to the City would be that with respect to these individuals the issue would be resolved. 'CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION Ms. Marilyn Swanson April 14, 1998 page 2 In any event, I did indicate to Mr. and Mrs. Colvin that I would bring the matter at their request back to the Council and 1 have now done so. If you have any questions or need additional information, please feel free to either contact myself or the city engineer. Best reoards. rr1:.A • • • G. Barry Anderson GBA:Jm • I. Renewals. The renewal of a licensed issued under this section shall be handled in the same manner as the original application. The request for a renewal shall be made at least twenty (20) days but no more than sixty (60) days before the expiration of the current license. The issuance of a license issued under this ordinance shall be considered a privilege and not an absolute right of the applicant and shall not entitle the holder to an automatic renewal of the license. Subd. 4. Fees. No license shall be issued under this ordinance until the appropriate license fee shall be paid in full as specified by resolution as adopted by the City Council. Subd. 5. Basis for Denial of lacense. The following shall be grounds for denying the issuance or renewal of a license under this ordinance; however, except as may otherwise be provided bylaw, the existence of any particular ground for denial does not mean that the City must deny the license. If a license is mistakenly issued or renewed to a person, it shall be revoked upon the discovery that the person was ineligible for the license under this Section: A. The applicant is under the age of eighteen (18) years. B. The applicant has been convicted within the past five (5) years of any violation of a Federal, State or local law, ordinance provision or other regulation relating to tobacco or tobacco products or tobacco - related devices. • C. The applicant has had a license to sell tobacco, tobacco products or tobacco-related devices revoked within the preceding twelve (12) months of the date of application. D. The applicant fails to provide any information required on the application, or provides false or misleading information. E. The applicant is prohibited by Federal, State or local law, ordinance or other regulation, from holding such a license. Subd. 6. Prohibited Sales. It shall be a violation of this ordinance for any person to sell or offer to sell any tobacco, tobacco product or tobacco - related device: A. To any person under the age of eighteen (18) years. B. By means of any type of vending machine, except as may otherwise be provided in this ordinance. C. By means of self - service methods whereby the customer does not need to make a verbal or written request to an employee of the licensed premise in order to receive the tobacco, tobacco product or tobacco - related device and whereby there is not a physical exchange of the tobacco, tobacco product or tobacco - related device between the licensee or the licensee's employee and the customer. Self - service sales are permitted within an enclosed area where per • under the age of 18 years of age are not permitted to enter and the enclosed area is under the / continuous supervision of an employee of the licensed premise All sales must occur within the / e nclosed area and access to the enclosed area must be by way of a fully functioning door. • D. By means of loosies as defined in Subdivision 2 of this ordinance. E. Containing opium, morphine, jimson weed, bella donna, strychnos, cocaine, marijuana or other deleterious, hallucinogenic, toxic or controlled substances except nicotine and other substances found naturally in tobacco or added as part of an otherwise lawful manufacturing process. F. By any other means, to any other person, on in any other manner or form prohibited by Federal, State or local law, ordinance provision or other regulation. Subd. 7. Vending Machines. It shall be unlawful for a person licensed under this ordinance to allow the sale of tobacco, tobacco products or tobacco - related devices by the means of a vending machine. Subd. 8. Self- Service Sales. It shall be unlawful for a licensee under this ordinance to allow the sale of tobacco, tobacco products or tobacco- related devices by any means whereby the customer may have access to such items without having to request the item from the licensee or the licensee's employee and whereby there is not physical exchange of the tobacco, tobacco product or tobacco-related device between the licensee or his or her clerk and the customer. All tobacco, tobacco products and tobacco- related devices shall either be stored behind a counter or other area not accessible to customers. Any retailer selling tobacco, tobacco products or tobacco- • related devices at the time this ordinance is adopted shall comply with this Subdivision within sixty (60) days. Subd. 9. Responsibility. All licensees under this ordinance shall be responsible for the actions of their employees in regard to the sale of tobacco, tobacco products or tobacco - related devices on the licensed premises, and the sale of such an item by an employee shall be considered a sale by the license holder. Nothing in this section shall be construed as prohibiting the City from also subjecting the clerk to whatever penalties are appropriate under this ordinance, State or Federal law or other applicable law or regulation. Subd. 10. Compliance Checks and Inspections. A. All licensed premises shall be open to inspection by the local law enforcement agencies or other authorized City official during business hours. From time to time, but at least once per year, the City shall conduct compliance checks by engaging, with the written consent of their parents or guardians, minors over the age of fifteen (15) but less than eighteen (18) years, to enter the licensed premises to attempt to purchase tobacco, tobacco products or tobacco - related devices. Mnors used for the purposes of compliance checks shall not be guilty of the unlawful purchase or attempted purchase, nor the unlawful possession of tobacco, tobacco products or tobacco- related devices when such items are obtained or attempted to be obtained as a part of the compliance check. No minor used in compliance checks shall attempt to use a false identification • misrepresenting the minor's age and all minors lawfully engaged in a compliance check shall answer ar "4 Stores in One" 10 APRIL 98 TO: MAYOR MARLIN TORGERSON RE: SMOKE SHOP ORDINANCE VERBIAGE AMENDMENT WE, AT MORE 4, REALIZE THAT UNDERAGE SMOKING IS A PROBLEM. WE FEEL WE NEED TO TAKE A STRONG APPROACH TO HELP REMEDY THIS PROBLEM. BY THIS WE HAVE ADDED A SMOKE SHOP TO OUR SERVICE COUNTER BY DOING THIS, NOT ONLY DID WE TAKE DISPLAYS OFF THE FLOOR, WHICH DECREASED THE AVAILABILITY TO UNDERAGE SMOKERS, AND CONCEAL THE CIGARETTES TO A CERTAIN EXTENT, BUT THIS HAS ALSO HELPED TO DETER THEFT. OUR SMOKE SHOP IS EQUIPPED WITH A SECURED DOOR WITH AN ALARM AND A VIDEO CAMERA ON THAT AREA CONSTANTLY. WITH BRINGING THE SMOKE SHOP IN OUR STORE, WE FELT IT VERY NECESSARY TO HAVE OUR ASSOCIATES WHO ARE SELLING THE • CIGARETTES HAVE TRAINING TO EMPHASIZE CIGARETTE LAWS AND REGULATIONS. AFTER HAVING GONE THROUGH THIS TRAINING, WE ARE HAVING THESE EMPLOYEES SIGN OFF ON A SHEET EXPLAINING THEY UNDERSTAND EVERYTHING AND WILL ABIDE BY THE LAWS. WE PROPOSE THE LANGUAGE TO READ, "ALL TOBACCO, TOBACCO PRODUCTS AND TOBACCO RELATED DEVICES SHALL BE SOLD BEHIND A COUNTER OR A DOOR THAT IS STATING NO ONE UNDER THE AGE OF 18 ALLOWED'." SINCE L/Y, MARK MITTELSTEADT STORE DIRECTOR, MORE 4 CC: CITY COUNCIL MEMBERS DON ERICKSON JEFF HAAG JOHN MLINAR KAY PETERSON G. BARRY ANDERSON, CITY ATTORNEY GARY PLOTZ, CITY ADMINISTRATOR 205 Washington Avenue East • Hutchinson, MN 55350 Telephone (320) 487 -8233 • Fax (320) 587 -3816 ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP DAVID B. ARNOLD' STEVEN A. ANDERSON G. BARRY ANDERSON' LAURA K. FRETLAND PAUL D. DOVE" JANE VAN VALKENSURG RICHARD G. McGEE CATHRYN D. REHER WALTER P. MICHELS. III JAMES UTLEY 'ALSO ADMITTED IN TEXAS AND NEW YORK Mr. Mark Mhtelsteadt, General Manager More 4 205 Washington Avenue E. Hutchinson, Mn. 55350 Mr. Glen Woelfel, General Manager Cash Wise Foods 1020 Highway 15 S. Hutchinson, Mn. 55350 Re: Smoke Shop Our File No. 3188 -87031 Dear Mark 8 Glen: (320) 567 -7575 FAX (320) 567 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON March 30, 1998 OF COUNSEL ARTHUR L. DOTEN 5661 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (812) 546 -6000 FAX (612) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (61 2) 36D -2214 FAX (O 1 2) 389-550G At various times over the last several weeks both of you have contacted this office, and perhaps other city officials as well, to discuss the potential for a smoke shop In your business establishment. I am enclosing a copy of the revised City Ordinance which will have its final reading on April 14, 1998 and presumably will take effect shortly thereafter upon publication. In reviewing the ordinance as drafted, I believe a reasonable interpretation of that Ordinance would prohibit a smoke shop operation. The issue was not discussed at the public hearing but as a courtesy to both of you I wanted to Icl you know the status of the language of the proposed ordinance. The language as proposed for action on April 14, 1998, will provide 'all tobacco, tobacco products and tobacco related devices shall either be stored behind the counter or other area not accessible to customers.' Thus, the Ordinance would appear to prohibit, as presently drafted, a free standing secured smoke shop operation. It should be pointed out that there is no particular magic in amending the City Ordinance and this is a policy decision to be made by the City Council. Further, the Ordinance can be amended at any time although I would point out that generally it takes 2 to 3 months to request an Ordinance change, discuss the matter with the Council and prepare appropriate language for Council consideration and have the same approved by the Council and published In the local newspaper. If you desire a change earlier, you may wish to contact Individual Council members or City staff in advance of the April 14, 1998 meeting. How you wish to proceed Is entirely up to you or even, for that matter, whether or not you wish to pursue this point further. Should you have any questions regarding thg,foregoing, please advise. Thank you. Best regards. Very truly yours, ,.. r ARNOI�, 8. D01(E, PLLP ` G. Barry Anderson GBA:Jm enc. ATTORNEYS AT LAW 101 PARK PLACE HUTCHINSON, MINNESOTA 55350 -2563 i 0 • CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION AN ORDINANCE REPEALING EXISTING SECTION 6.21 OF THE HUTCHINSON CITY CODE ENTITLED "TOBACCO" BY REPEALING EXISTING SECTION 6.21 AND ADOPTING SUBSTITUTE LANGUAGE AND ADOPTING BY REFEREN CITY CODE CHAPTER 1 IN SECTION 2.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS. THE CITY OF HUTCHINSON ORDAINS: SECTION 1. City Code, Section 6.21 entitled "Tobacco" is hereby repealed. SECTION 2. City Code, Section 6.21 "Tobacco" shall read as follows: SEC. 6.21 TOBACCO Subd.1. Purpose and Preamble. The City recognizes that many persons under the age of 18 years purchase or otherwise obtain, posses and use tobacco, tobacco products and tobacco related devices and such sales, possessions and use are violations of both State and Federal laws; and because studies have shown that most smokers begin smoking before they have reached the age of eighteen (18) years and that those persons who reach the age of eighteen (18) years . without having started smoking are significantly less likely to begin smoking; and because smoking has been shown to be the cause of several serious health problems which subsequently place a financial burden on all levels of government; this ordinance shall be intended to regulate the sale, possession, and use of tobacco, tobacco products, and tobacco- related devices for the purpose of enforcing and furthering existing laws, to protect minors against the serious effects associated with the illegal use of tobacco, tobacco products and tobacco - related devices, and to further the official public policy of the State ofMiimlesota in regard to preventing young people from starting to smoke. Subd. 2. Definitions and Interpretations. Except as may otherwise be provided or clearly implied by context, all terms shall be given their commonly accepted definitions. The singular shall include the plural and the plural shall include the singular. The masculine shall include the feminine and neuter, and vice - versa. The term "shall" means mandatory and the term "may" means permissive. The following terms shall have the definitions given to them: A. Tobacco or Tobacco products. "Tobacco" or "Tobacco products" shall mean any substance or item containing tobacco leaf, including but not limited to, cigarettes; cigars; pipe tobacco; snuff; fine cut or other chewing tobacco; cheroots; stogies; perique; granulated, plug cut, crimp cut, ready - rubbed, and other smoking tobacco; snuff flowers; cavendish; shorts; plug and twist tobaccos; dipping tobaccos; refuse scraps, clippings, cuttings and sweepings of tobacco; and other kinds and forms of tobacco leaf prepared in such manner as to be suitable for chewing, sniffing or smoking. 0 B. Tobacco- related devices. "Tobacco- related devices" shall mean any tobacco product as well as a pipe, rolling papers or other device intentionally designed or intended to be used in a manner which enables the chewing, sniffing or smoking of tobacco or tobacco products. C. Self - Service Merchandising. "Self- Service Merchandising" shall mean open displays of tobacco, tobacco products or tobacco - related devices in any manner where any person may have access to the tobacco, tobacco products or tobacco - related devices, without the assistance or intervention of the licensee or the licensee's employee. The assistance or intervention shall entail the actual physical exchange of the tobacco, tobacco product or tobacco - related device between the customer and the licensee or employee. Self- service merchandising shall not include vending machines. D. Vending Machine. "Vending Machine" shall mean any mechanical, electric or electronic or other type of device which dispenses tobacco, tobacco products or tobacco - related devices upon the insertion of money, tokens or other form of payment directly into the machine by the person seeking to purchase the tobacco, tobacco product or tobacco - related device. E. Individually Packaged. "Individually packaged" shall mean the practice of selling any tobacco or tobacco product wrapped individually for sale. Individually wrapped tobacco and tobacco products shall include, but not be limited to, single cigarette packs, single bags or cans of loose tobacco in any form, and single cans or other packaging of snuff or chewing tobacco. Cartons or other packaging containing more than a single pack or other container as described in this subdivision shall not be considered individually packaged. F. Loosies. "Loosies' shall mean the common term used to refer to a single or individually packaged cigarette. G. Mawr. "Minor" shall mean any natural person who has not yet reached the age of eighteen (18) years. H. Retail Establishment. "Retail Establishment" shall mean any place of business where tobacco, tobacco products or tobacco- related devices are available for sale to the general public. Retail establishments shall include, but not be limited to, grocery stores, convenience stores, restaurants, bars and liquor outlets. I. Movable Place of Business. "Movable Place of Business" shall refer to any form of business operated out of a truck, van, automobile or other type of vehicle or transportable shelter and not a fixed address store front or other permanent type of structure authorized for sales transactions. J. Sale. A "sale" shall mean any transfer of goods for money, trade, barter or other consideration. K. Compliance Checks. "Compliance Checks" shall mean the system the City uses to investigate and ensure that those authorized to sell tobacco, tobacco products and • • tobacco-related devices are following and complying with the requirements of this ordinance. Compliance checks shall involve the use of minors as authorized by this ordinance. Compliance checks shall also mean the use of minors who attempt to purchase tobacco, tobacco products or tobacco- related devices for educational, research and training purposes as authorized by State and Federal laws. Compliance checks may also be conducted by other units of government for the purpose of enforcing appropriate Federal, State or local laws and regulations relating to tobacco, tobacco products and tobacco - related devices. Subd. 3. License. A. Prohibition. No person shall sell or offer to sell any tobacco, tobacco products or tobacco- related device without first having obtained a license to do so from the City. B. Application. An application for a license to sell tobacco, tobacco products or tobacco- related devices shall be made on a form provided by the City. The application shall contain the full name of the applicant, the applicant's residential and business addresses and telephone numbers, the name of the business for which the license is sought, and any additional information the city deems necessary. Upon receipt of a completed application, the City shall determine whether the applicant is eligible for a license and then forward the application to the City Council for action at its next regularly scheduled Council meeting. If the City shall determine that an application is incomplete, they shall return the application to the applicant with notice of the information necessary to make the application complete. • C. Action. The City Council may either approve or deny the license, or it may delay action for such reasonable period of time as necessary to complete any investigation of the application or the applicant it deems necessary. If the City Council shall approve the license, the City shall issue the license to the applicant. If the City Council denies the license, notice of the denial shall be given to the applicant along with notice of the applicant's right to appeal the decision. D. Tam. The term of all licenses issued hereunder shall be from February 1 to the following January 31 or any part thereof. E. Revocation or Suspension. Any license issued under this ordinance may be revoked or suspended as provided in the Violations and Penalties section of this ordinance. F. Transfers. All licenses issued under this ordinance shall be valid only on the premises for which the license was issued and only for the person to whom the license was issued. No transfer of any license to another location or person shall be valid without the prior approval of the City Council. G. Moveable Place of Business. No license shall be issued to a movable place of business. Only fixed location business shall be eligible to be licensed under this ordinance. H. Display. All licenses shall be posted and displayed in plain view of the is general public on the licensed premises. I. Renewals. The renewal of a licensed issued under this section shall be handled in the same manner as the original application. The request for a renewal shall be made at least twenty (20) days but no more than sixty (60) days before the expiration of the current license. The issuance of a license issued under this ordinance shall be considered a privilege and not an absolute right of the applicant and shall not entitle the holder to an automatic renewal of the license. Subd. 4. Fees. No license shall be issued under this ordinance until the appropriate license fee shall be paid in full as specified by resolution as adopted by the City Council. Subd. S. Basis for Denial of License. The following shall be grounds for denying the issuance or renewal of a license under this ordinance; however, except as may otherwise be provided bylaw, the existence of any particular ground for denial does not mean that the City must deny the license. If a license is mistakenly issued or renewed to a person, it shall be revoked upon the discovery that the person was ineligible for the license under this Section: A. The applicant is under the age of eighteen (18) years. B. The applicant has been convicted within the past five (5) years of any violation of a Federal, State or local law, ordinance provision or other regulation relating to tobacco or tobacco products or tobacco - related devices. C. The applicant has had a license to sell tobacco, tobacco products or tobacco-related devices revoked within the preceding twelve (12) months of the date of application. D. The applicant fails to provide any information required on the application, or provides false or misleading information. E. The applicant is prohibited by Federal, State or local law, ordinance or other regulation, from holding such a license. Subd. 6. Prohibited Sales. It shall be a violation of this ordinance for any person to sell or offer to sell any tobacco, tobacco product or tobacco - related device: A. To any person under the age of eighteen (18) years. B. By means of any type of vending machine, except as may otherwise be provided in this ordinance. C. By means of self- service methods whereby the customer does not need to make a verbal or written request to an employee of the licensed premise in order to receive the tobacco, tobacco product or tobacco- related device and whereby there is not a physical exchange of the tobacco, tobacco product or tobacco- related device between the licensee or the licensee's employee and the customer. D. By means of loosies as defined in Subdivision 2 of this ordinance. • • E. Containing opium, morphine, jimson weed, bella donna, strychnos, cocaine, marijuana or other deleterious, hallucinogenic, toxic or controlled substances except nicotine and other substances found naturally in tobacco or added as part of an otherwise lawful manufacturing process. F. By any other means, to any other person, on in any other manner or form prohibited by Federal, State or local law, ordinance provision or other regulation. Subd. 7. Vending Machines. It shall be unlawful for a person licensed under this ordinance to allow the sale of tobacco, tobacco products or tobacco - related devices by the means of a vending machine. Subd. 8. Self - Service Sales. It shall be unlawful for a licensee under this ordinance to allow the sale of tobacco, tobacco products or tobacco- related devices by any means whereby the customer may have access to such items without having to request the item from the licensee or the licensee's employee and whereby there is not physical exchange of the tobacco, tobacco product or tobacco - related device between the licensee or his or her clerk and the customer. All tobacco, tobacco products and tobacco- related devices shall either be stored behind a counter or other area not accessible to customers. Any retailer selling tobacco, tobacco products or tobacco - related devices at the time this ordinance is adopted shall comply with this Subdivision within sixty (60) days. • Subd. 9. Responsibility. All licensees under this ordinance shall be responsible for the actions of their employees in regard to the sale of tobacco, tobacco products or tobacco - related devices on the licensed premises, and the sale of such an item by an employee shall be considered a sale by the license holder. Nothing in this section shall be construed as prohibiting the City from also subjecting the clerk to whatever penalties are appropriate under this ordinance, State or Federal law or other applicable law or regulation. Subd. 10. Compliance Checks and Inspections. A. All licensed premises shall be open to inspection by the local law enforcement agencies or other authorized City official during business hours. From time to time, but at least once per year, the City shall conduct compliance checks by engaging, with the written consent of their parents or guardians, minors over the age of fifteen (15) but less than eighteen (18) years, to enter the licensed premises to attempt to purchase tobacco, tobacco products or tobacco - related devices. Minors used for the purposes of compliance checks shall not be guilty of the unlawful purchase or attempted purchase, nor the unlawful possession of tobacco, tobacco products or tobacco-related devices when such items are obtained or attempted to be obtained as a part of the compliance check. No minor used in compliance checks shall attempt to use a false identification misrepresenting the minor's age and all minors lawfully engaged in a compliance check shall answer all questions about the minor's age asked by the licensee or his or her employee and shall produce any identification, if any exists, for which he or she is asked. Nothing in this Subdivision shall prohibit compliance checks authorized by State or Federal laws for education, research or training purposes • or required for the enforcement of a particular State or Federal law. B. Conducting compliance checks shall be the responsibility of the City or County officials, where appropriate. For all compliance checks, the supervising adult shall be a licensed peace officer. All minor participants shall receive training prior to engaging in compliance check activities. Transportation shall be provided by the supervising adult or other adult employee of the City as designated by the police department. Participating minors shall be considered "volunteers" subject to receipt of a per diem payment in an amount established for other City boards and commissions. Subd. 11. Other Illegal Acts. Unless otherwise provided, the following acts shall be a violation of this ordinance. A. Illegal Sales. It shall be a violation of this ordinance for any person to sell, give or otherwise provide any tobacco, tobacco product or tobacco - related device to any minor. B. Illegal Possession. It shall be a violation of this ordinance for any minor to have in his or her possession any tobacco, tobacco product or tobacco-related device. This section shall not apply to minors lawfully involved in a compliance check. C. Illegal Use. It shall be a violation of this ordinance for any minor to smoke, chew, sniff or otherwise use any tobacco, tobacco product or tobacco - related device. D. Illegal Procurement. It shall be a violation of this ordinance for any minor to purchase or attempt to purchase or otherwise obtain any tobacco, tobacco product or • tobacco - related device and it shall be a violation of this ordinance for any person to purchase or otherwise obtain such items on behalf of a minor. It shall further be a violation for any person to coerce or attempt to coerce a minor to illegally purchase or otherwise obtain or use any tobacco, tobacco product or tobacco - related device. This section shall not apply to minors lawfully involved in a compliance check. E. Use of False Identification. It shall be a violation of this ordinance for any minor to attempt to disguise his or her true age by the use of a false form of identification, whether the identification is that of another person or one on which the age of the person has been modified or tampered with to represent an age older than the actual age of the person. Subd. 12. Violations. A. Notice. Upon discovery of a suspected violation, the alleged violator shall be issued, either personally or by mail, a citation that sets forth the alleged violation and which shall inform the alleged violator of his or her right to be heard on the accusation. B. Hearings. If a person accused of violating this ordinance so requests, a hearing shall be scheduled, the time and place of which shall be published and provided to the accused violator. C. Hearing Officer/Panel. The City Attorney's office or its designee is • • hereby appointed as the Hearing Officer. D. Decision. If the Hearing Officer determines that a violation of this ordinance did occur, that decision, along with the Hearing Officer's reasons for finding a violation and the penalty to be imposed under Subdivision 13 of this ordinance, shall be recorded in writing, a copy of which shall be provided to the accused violator. Likewise, if the Hearing Officer finds that no violation occurred or finds grounds for not imposing any penalty, such findings shall be recorded and a copy provided to the acquitted accused violator. E. Appeals. Appeals of any decision made by the Hearing Officer shall be filed in the District Court having jurisdiction of the City. F. Misdemeanor Prosecution. Nothing in this Subdivision shall prohibit the City from seeking prosecution as a misdemeanor for any alleged violation of this ordinance. If the City elects to seek misdemeanor prosecution, no administrative penalty shall be imposed. G. Continued Violation. Each violation, and every day in which a violation occurs or continues, shall constitute a separate offense. Subd. 13. Penalties. • A. Licensees. Any licensee found to have violated this ordinance, or whose employee shall have violated this ordinance, shall be charged an administrative fine of $75.00 for a first violation of this ordinance; $200.00 for a second offense at the same licensed premises within a twenty -four (24) month period; and $250.00 for a third or subsequent offense at the same location within a twenty-four (24) month period. In addition, after the third offense, the license shall be suspended for not less than seven (7) days. B. Other Individuals. Other individuals, other than minors regulated by Section C of this Subdivision, found to be in violation of this ordinance shall be charged an administrative fee of $50.00. C. Minors. Minors found in unlawful possession of, or who unlawfully purchase or attempt to purchase, tobacco, tobacco products or tobacco - related devices, shall be if a first time offense, referred to a diversion program operated by appropriate City officials or, if a second or subsequent offense, be petitioned or ticketed into juvenile court as a petty offender and receive such disposition as is authorized by law and appropriate for petty offenders. D. Misdemeanor. Nothing in this Subdivision shall prohibit the City from seeking prosecution as a misdemeanor for any violation of this ordinance. Subd. 14. Exceptions and Defenses. Nothing in this ordinance shall prevent the providing of tobacco, tobacco products or tobacco- related devices to a minor as part of a lawfully • recognized religious, spiritual or cultural ceremony. It shall be an affirmative defense to the violation of this ordinance for a person to have reasonably relied on proof of age as described by State law. Subd. 15. Severability and Savings Clause. If any section or portion of this • ordinance shall be found unconstitutional or otherwise invalid or unenforceable by a court of competent jurisdiction, that finding shall not service as an invalidation or effect the validity and enforceability of any other Subdivision or provision of this ordinance. SECTION 3. City Code Chapter 1 entitled "General Provisions and Definitions Applicable to the entire City Code Including Penalty For Violation" and Section 2.99 entitled "Violation a Misdemeanor" are hereby adopted in their entirety, by reference, as though repeated verbatim herein. SECTION 4. This Ordinance shall take effect upon adoption and publication. Adopted by the City Council this 14' day of April, 1998. Marlin Torgerson, Mayor Attest: Gary D. Plotz, City Administrator Published in the Hutchinson Leader on: First Reading: Seond Reading: E r • ORDINANCE NO. 98-221 , 2 " SERIES AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA, AMENDING CITY CODE CHAPTER 6 ENTITLED "OTHER BUSINESS REGULATIONS AND LICENSING" BY ADDING SECTION 6.44 ENTITLED "DANCES" AND BY ADOPTING BY REFERENCE, CITY CODE CHAPTER 1 AND SECTION 2.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS. THE CITY OF HUTCHINSON ORDAINS: Section 1. Section 6.44 of the City Code, "Dances" is hereby added and shall read as follows: Section 6.44 Dances Subd. 1. License Required. It is unlawful for any person to operate a public dancing place, or to hold a public dance, without a license for such activity from the City. In lieu of a per dance license for a specific dance, the City Council may grant an annual license under such terms and conditions as it deems appropriate. Subd. 2. License Fee. The license fee shall include the cost of providing attendance by a designated security officer or officers when required by the Chief of Police. The license fee shall be • fixed and determined by the Council at the time the application is approved, which fee shall also include the cost of any investigation. An annual fee may be charged for the application processing and investigation portion when license applicants contemplate numerous public dances throughout a calendar year. Any portion, or all of, the license fee may be waived if the Council finds that the applicant is a charitable, religious or fraternal committee, association or organization operating on a purely nonprofit basis and all dance proceeds other than direct operating expenses are used for benevolent or charitable purposes. Subd. 3. Application and License. An application for a dance license shall be filed with the City on such forms as are specified by the City Administrator and shall specify the names and addresses of the person, persons, committee or organization that is to hold the dance, time and place thereof:, the area of the dance floor, estimated number of dance patrons and such other information as the City may reasonably request. Subd. 4. Security. The Chief of Police may designate a security officer or officers to be present at a public dance during the entire time said dance is underway. For purposes of this paragraph the term "security officer" means any person who is a full -time or part-time peace officer, a reserve officer or a community service officer employed by the City of Hutchinson. The total costs of any such security provided by the City must be paid by the applicant and the City may require an advanced deposit or a corporate surety bond guaranteeing payment. Security officers designated by the City shall have full authority to bar disruptive persons from the premises and to otherwise engage in necessary policing activities including any activity necessary to preserve the peace. • Section 2. City Code Chapter 1 entitled "General Provisions and Definitions applicable to the Entire City Code Including Penalty for Violation" and Section 2.99 entitled "Violation a Misdemeanor" are hereby adopted in the it entirety, by reference, as though repeated verbatim herein. Section 3. This ordinance shall take effect upon adoption and publication. Adopted by the City Council this 14th day of April, 1998. Marlin Torgerson, Mayor Attest: Gary D. Plotz, City Administrator Published in the Hutchinson Leader on: First Reading: March 24, 1998 • Second Reading: April 14, 1998 • 0 RESOLUTION NO. 11001 DESIGNATION OF ADDITIONAL DEPOSITORY OF CITY FUNDS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT the following named bank, which are authorized to do a banking business and act as depositories in Minnesota, be and they hereby are designated depositories of the Public Funds of the City of Hutchinson in the County of McLeod, 'State of Minnesota, by the City Council of said City, for the term commencing April 14, 1998 and ending December 31, 1998: NORWEST BANK MINNESOTA SOUTH NA, HUTCHINSON, MN upon terms and conditions following, to -wit: THAT this designation is subject to the right of said City of Hutchinson, Minnesota to modify, vacate, or revoke the same according to law, and also subject to any depository agreement executed pursuant to Minnesota Statutes, Section 118.01 and Section 475.66, and BE IT FURTHER RESOLVED: THAT the City Administrator of the City of Hutchinson is hereby authorized and directed to deposit in said banks and institutions in special funds to be known as "City of Hutchinson" all monies that may come into his hands. BE IT FURTHER RESOLVED: THAT a copy of this resolution be filed with the City Administrator and each of the banks and institutions so designated. Adopted by the City Council this 14th day of April, 1998. Marlin Torgerson Mayor u ATTEST: Gary D. Plotz City Administrator �Z- C4<3) Hutchinson Garden Club iii - i, -1111 D.bbM KWWWd, Pr@Oda • Lisa SMW, Y Pr� • Robw T&WM , TrM • MYrl, KOWK Ssr Y • San} No m NWMMW March 30, 1998 Hutchinson City Council City Center Hutchinson, Mn. 55350 TO: CITY COUNCIL MEMBERS The Hutchinson Garden Club would like to obtain a "Use Permit" for a portion of the parking lot located at the corner of Second Ave SE and Hassan Street SE on Saturday, May 16th, 1998, during the hours of 8 AM to 12 Noon. The purpose of this Use Permit is for our Club to have a fund raising plant sale to raise funds for our Club projects. Members of our Club will have many types of home raised perennials, bulbs, and bedding plants available for sale. There will be some gardening supplies also available. The funds from this sale are used to purchase bedding plants for the flower bed at the intersection of Roberts Road and Dale Street. to purchase seeds to distribute at the Bluebird Project at the Gopher Campfire outing in April and this year we will be maintaining a flower bed on the County Fair grounds. The parking lot located across the street from the Library Square is centrally located and easy to find for our customers. The McLeod County Horticultural Society will also be participating in this plant sale for their own special projects. If you have any questions about our project or need further information, please contact me at this address: Roberta Tabberson, 12154 Tagus Ave, Hutchinson, Mn. #587- -9101. Si a ely, C11 Treasu Hutchinson Garden Club ARNOLD. ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP . ATTORNEYS AT LAW 501 SOUTH FOURTH STREET DAVID B. ARNOLDT PRINCETON. MINNESOTA 55371-2005 STEVEN A. ANDERSON G. BARRY ANDERSON' (612)389 -2214 LAURA K FRETLAND FAX (6121389-5506 PAUL D. DOVE" METRO LINE (512) 545 -6018 JANE VAN VALKENBURG RICHARD G. MCGEE RESIDENT ATTORNEY CATHRYN D. REHER WALTER P. MICHELS. III STEVEN A ANDERSON JAMES UTLEY ALSO ADMITTED IN TEXAS AND NEW YORK Reply to Hutchinson Office March 24, 1998 OF COUNSEL ARTHUR L. DOTEN 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 5459000 FAX (612) 545 -1793 10 1 PARK PLACE HUTCHINSON. MINNESOTA 55350 (320) 587 -7575 FAX (3201 587 -4096 Ms. Mary Beth Schaufler Hutchinson Community Development Commission - EDA Hutchinson City Center Sent via Facsimile & U.& Mal 111 Hassen Street S.E. (310) 234 -4240 Hutchinson, MN 55350 Re: Fahey Sales Agency Loan Transaction Dear Mary Beth: I write to you today regarding certain loans to the Fahey Sales Agency, Inc. in connection with downtown real estate improvements. I have reviewed the file maintained by Hutchinson Community Development Corporation, the predecessor to the Economic Development Authority. In my review of the file, I find two loans that are due on December 10, 2010, both of which relate to the uptown revitalization project. According to information supplied to me by your office, the remaining balance on these two (2) notes is $8,041.45 and $9,701.71. The other four (4) notes are all commercial revolving loan fund notes, bear interest at the rate of 8 %, and are due on December 10, 2000. These four notes have remaining balances of $2,698.34, $652.12, $4,419 -99 and $2,204.46. Some of the loans contain due on sale clauses and others do not. Policy arguments can be made either way. I would recommend the following: 1. Require Fahey to provide satisfactory proof to the Finance Committee that the security position of the EDA is no worse than present and hopefully better under the new financial arrangement. Fahey reports that he will have $200,000 equity in the property when all of the improvements are completed which, if true, should provide ample security for the EDA's loans. However, I think it would be wise for the EDA to require fiuther information and perhaps a verified financial statement relating to this project 'CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION / T / 1 Ms. Mary Beth Schaufler March 24, 1998 Page 2 which would, of course, be confidential but would supply some protection to the EDA on these issues; 2. I would recommend allowing these loans to be transferred to the new property provided, however, that we consolidate the two (2) loans with maturities in the year 2010 into one note and consolidate the remaining notes, which mature in December of 2000 into one note, all of which I think will make the bookkeeping more sensible; 3. I would point out that the City will be acquiring the property by virtue of a closing in advance of Fahey actually completing the financial aspects of his transaction with the Bank providing financing for his new business. In order to fully protect the EDA, I would recommend that Fahey be required to sign a personal guaranty, in addition to a guaranty by the corporation, which would expire when the transaction is completed. The reason for this is that at the time the City closes the loan transaction, he will receive the net proceeds unless the City requires payoffs on these loans. If no payoffs are required, the City can reasonably require additional security during the interim and a personal guaranty should be sufficient. An alternative would be to escrow the funds until the financial transaction with the Bank on the new property is completed. My reasoning in allowing the transfer to take place, essentially using substitute security, is that the City actively encouraged Fahey Sales Agency, Inc. to make the improvements to it's property for revitalizing the downtown and for dealing with other issues. The City has now acquired the property for demolition purposes and had the borrower known of the likelihood of this transaction, it is conceivable the borrower would not have agreed to request the funds in the first place. I recognize that this is an unforseen benefit to the community, but under the unique circumstances present here, using substitute security makes sense provided, however, that the Finance Committee is satisfied that the transaction does not in any way degrade the security held by the City for the repayment of these loans. I hope this correspondence has been helpful to you with regard to my recommendation. Thank you. Best regards. V6ry yours, i ARN , ANDERSON & DOVE, P.L.L.P. 1 Y. a G. BV0 .Anders Attorney at Law GBA:ln LJ L • 0 Hutchinson Jaycee Water Carnival P.O. Box 624 Hutchinson, Minnesota 55350 Ofh' OF HUI CHASON Crary Plot7_ City Administrator Citv of Hutchinson 111 Hassan St SE Hutchinson, MN 55350 The 56' Annual Hutchinson Javicee Water Carnival, which will be held June 15' - 21 1998 is fast approaching. Plans for our affival community celebration are well under way. The Jaycees would like to request that permits be issued for the 1998 Water Carnival as follows: 1.) Issue permit for the Carnival Midway Show for Magel Carnival Midways, Inc. June 17" — 21 at West River Park The Park and Recreation Dept has been asked to approve this location again for this year. An alternative site can be set for the Jaycee Park parking lot, as has been done previously in wet seasons or another site agreeable with the Park and Rec. Dept. • 2.) Close the south end of Lynn road, by Pica Hut, for the 8K and RollerBlade races on June 20 from 7:00 am. to noon, for the safety of the participants at the beginning and end of the races. 3.) Close the streets and issue a Parade permit for the Kiddie day Parade on Saturday, June 20` from 11:00 am. to 1:30 p.m. The same route will be used as last year, starling at the St. Anastasia parking lot and continuing to the High School on Roberts road, from Lake Street to Boulder. 4.) Close the streets and issue a Parade permit for the Grande day Parade on Sunday, June 21 °, from 11:00 a.m. to 4:00 p.m. This years proposed parade route starts with the staging area headquarters of St. A's parking lot, then Roberts road from Dale St to Alan St, including the side streets of Graham, Hidden Circle, and Larson St. The Parade starts at the intersection of Roberts Road and Dale Street heading north on Dale Street until turning Fast on Second Ave and continuing until turning South onto Franklin Street and ending on Linden Ave. 5.) Issue a permit to operate a concession stand during the Boat Parade on Thursday, June IS at West River Park and Les Kouba Park, at the Sand Volleyball Tournament on Saturday, June 20" at West River Park and Les Kouba Park, and during the Grande Day Parade, Water Ski Show, and Mud Volleyball Tournament on Sunday, June 21` at West River Park and Les Kouba Park 6.) Issue a permit for the Water Carnival "Outdoor Dance" on Friday, June 19' and Saturday, June 20' from 8:00 p.m to Midnight at Flyers" -Tops, Hutch Bowl parking lot. The dance will be fenced off to enable Flvers/Hi -Tops employees to monitor gate entry to dance area. The Hutchinson Police Dept. will be contacted about this event • I/ -G, April 8, 1998 n Jayc Water Ca rnival P Minnes 55350 0 7.) Issue a permit for the Fireworks display on Thursday, June 18'" and on Sunday, June 21` at approximately 10:00 p.m. at the AFS International Friendship Grove Park. The Fire Chief; Brad Emans, will be notified concerning the necessary permits regarding the display of fireworks. The Jaycees have arranged to have the Fire Dept_ along with an Ambulance crew stand by if any assistance is needed. 8-) Issue a Non - Intoxicating Liquor License for liquor sales on the following dates: A) Thursday evening, June 18", at West River Park/I es Kouba Park during the Water Parade B.) Sunday afternoon, June 21 at West River Park/I es Kouba Park during Mud Volleyball 9.) We will follow the same plan as last year for the requisition of portable toilets needed for the Water Carnival Weekend. The Jaycees, which is a non -profit organization, would greatly appreciate the waiver of any fees or rentals during the duration of the Water Carnival to help defray the expenses. We appreciate all the help and assistance we receive from the City of Hutchinson and all of its staff and employees, for it is the city, that is the real backbone of support for this community celebration. Please inform me when the Water Carnival items will be on the City Council Agenda I will plan to attend r along with my Vice Commodore, Mike Cannon. If you should have any questions, concerns, or need additional information, please feel free to contact me anytime. Michael R. McGraw, Commodore 1998 Hutchinson Jaycee Water Carnival 34 Main St S Hutchinson. MN 55350 W: 587 -2565 F: 587 -2256 H: 587 -3889 Cc: Mayor Marlin Torgerson Police Chief Steve Madsen Fire Chief Brad Emans Director of Park & Rec. /Comm. Ed. Dolf Moon r� L • PUBLICATION NO. 5147 NOTICE OF HEARING ON PROPOSED IMPROVEMENT LETTING NO.3 PROJECT NO. 97 -30, 98.04, 98 -05, 98 -06, 98 -07, 98 -08, 98 -09, 98 -10 TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council of Hutchinson, Minnesota, will meet in the unc bens of the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, MN, at 6:30 P.M. o the 14` day of April, 1998, to consider the making of an improvement of: Project No. 97 -30 Otter Street SW from South Grade Road to 1240 feet north of South Grade Road (adjacent to Westridge Shores) by construction of grading, bituminous base, bituminous surfacing and appurtenances; Project No. 98-04 Glen Street NW from TH 7 to 5th Avenue NW by construction of storm sewer, sanitary sewer and services, watermain and services, grading, gravel base, bituminous base, bituminous surfacing and appurtenances; • Project No. 98 -05 Erie Street SE, Huron Street SE and 1st Avenue SE, north of 2nd Avenue SE and east of railroad tracks by construction of storm sewer, watermain and services, grading, gravel base, curb and gutter, bituminous base, bituminous surfacing and appurtenances; Project No. 98 -06 Texas Avenue NW from California Street to Huski Addition by construction of bituminous wear course and appurtenances; Project No. 98 -07 Lakewood Drive SW from South Grade Road SW to 825 feet north of South Grade Road to Lakewood Terrace by construction of bi wear course and appurtenances; Project No. 98 -08 4th Avenue NE from Bluff Street NE to High Street NE by construction of storm sewer, sanitary sewer and services, grading, gravel base, bituminous base, bituminous surfacing and appurtenances; Project No. 98 -09 Larson Street SW from Roberts Road SW to 150 feet north of Goebel Street SW by construction of storm sewer, grading, gravel base, curb and gutter, bituminous base, bituminous surfacing and appurtenances; Project No. 98 -10 Century Avenue from Sunset Street SW to TH 15 and TH 15 to Ridgewater • College entrance by construction of sidewalk and appurtenances; PUBLICATION NO. 5147 LETTING NO. 3 /PROJECT NO. 97 -30, 98 -04, 98 -05, 98 -06, 98 -07, 98 -08, 98 -09, 98 -10 • PAGE 2 pursuant to Minnesota Statutes, Sections 429.011 to 429.111. The area proposed to be assessed for such improvement is the benefited property, for which property owners shall receive mailed notice. The estimated City Cost of said improvement is $340,440.00, with an Assessable Cost of $356,180.00, for the total estimated cost of $696,620.00. Such persons as desire to be heard with reference to the proposed improvement will be heard at this meeting. Dated: March 24c 1998 a. • PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS HEARING, WHETHER YOU ARE FOR OR AGAINST THE PROJECT, IN ORDER THAT YOUR COUNCIL CAN BE BETTER INFORMED OF A TRUE REPRESENTATION OF OPINION. PUBLISHED IN THE HUTCHINSON LEADER ON TUESDAY, MARCH 31 1998 AND TUESDAY, APRIL 7 1998. E RESOLUTION NO. 10997 RESOLUTION ORDERING IMPROVEMENT • AND PREPARATION OF PLANS AND SPECIFICATIONS LETTING NO.3 PROJECT NO. 97-30, 98-04, 98 -05, 98 -06, 98-07,98-08, 98-09,98-10 WHEREAS, a resolution of the City Council adopted the W day of March, 1998, fixed a date for a Council Hearing on the improvement of. Project No. 97 -30 Otter Street SW from South Grade Road to 1240 feet north of South Grade Road (adjacent to Westridge Shores) by construction of grading, bituminous base, bituminous surfacing and appurtenances; Project No. 98-04 Glen Street NW from TH 7 to 5th Avenue NW by construction of storm sewer, sanitary sewer and services, watermain and services, grading, gravel base, bituminous base, bituminous surfacing and appurtenances; Project No. 98 -05 Erie Street SE, Huron Street SE and 1st Avenue SE, north of 2nd Avenue SE and east of railroad tracks by construction of storm sewer, watermain and services, grading, gravel base, curb and gutter, bituminous base, bituminous surfacing and appurtenances; Project No. 98 -06 Texas Avenue NW from California Street to Huski Addition by construction of bituminous wear course and appurtenances; Project No. 98 -07 Lakewood Drive SW from South Grade Road SW to 825 feet north of South Grade Road to Lakewood Terrace by construction of bituminous wear course and appurtenances; • Project No. 98 -08 4th Avenue NE from Bluff Street NE to High Street NE by construction of storm sewer, sanitary sewer and services, grading, gravel base, bituminous base, bituminous surfacing and appurtenances; Project No. 98 -09 Larson Street SW from Roberts Road SW to 150 feet north of Goebel Street SW by construction of storm sewer, grading, gravel base, curb and gutter, bituminous base, bituminous surfacing and appurtenances; Project No. 98 -10 Century Avenue from Sunset Street SW to TH 15 and TH 15 to Ridgewater College entrance by construction of sidewalk and appurtenances; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1998. • 1. Such improvement is hereby ordered as proposed in the resolution adopted the 24° day of March, 2. John P. Rodeberg is hereby designated as the Engineer for this improvement. He shall prepare plans and specifications for the making of such improvement. Adopted by the Council this 14' day of April, 1998. Mayor City Administrator A, RESOLUTION NO. 10998 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS LETTING NO.3 • PROJECT NO. 9730, 98-04,98-05,98-06, 98 -07, 98 -08, 98 -09, 98 -10 WHEREAS, the Director of Engineering has prepared plans and specifications for the improvement of: Project No. 97 -30 Otter Street SW from South Grade Road to 1240 feet north of South Grade Road (adjacent to Westridge Shores) by construction of grading, bituminous base, bituminous surfacing and appurtenances; Project No. 98-04 Glen Street NW from TH 7 to 5th Avenue NW by construction of storm sewer, sanitary sewer and services, watermain and services, grading, gravel base, bituminous base, bituminous surfacing and appurtenances; Project No. 98-05 Erie Street SE, Huron Street SE and 1st Avenue SE, north of 2nd Avenue SE and east of railroad tracks by construction of storm sewer, watennain and services, grading, gravel base, curb and gutter, bituminous base, bituminous surfacing and appurtenances; Project No. 98-06 Texas Avenue NW from California Street to Huski Addition by construction of bituminous wear course and appurtenances; Project No. 98 -07 Lakewood Drive SW from South Grade Road SW to 825 feet north of South Grade Road to Lakewood Terrace by construction of bituminous wear course and appurtenances; Project No. 98 -08 4th Avenue NE from Bluff Street NE to High Street NE by construction of storm sewer, sanitary sewer and services, grading, gravel base, bituminous base, bituminous surfacing and appurtenances; • Project No. 98 -09 Larson Street SW from Roberts Road SW to 150 feet north of Goebel Street SW by construction of storm sewer, grading, gravel base, curb and gutter, bituminous base, bituminous surfacing and appurtenances; Project No. 98-10 Century Avenue from Sunset Street SW to TH 15 and TH 15 to Ridgewater College entrance by construction of sidewalk and appurtenances, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The Director of Engineering shall prepare and cause to be inserted in the official newspaper, an advertisement for bids upon the making of such improvements under such approved plans and specifications. The advertisement shall be published for three weeks, shall specify the work to be done, shall state that bids will be publicly opened at 11:00 am on Friday. May 8' , 1998, in the Council Chambers of the Hutchinson City Center by the City Administrator and/or Director of Engineering, will then be tabulated, and will be considered by the Council on June 23`°, 1998, in the Council Chambers of the Hutchinson City Center, Hutchinson, Minnesota. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Director of Engineering and accompanied by cash deposit, cashier's check, bid bond or certified check payable to the City of Hutchinson for 5 percent of the amount of such bid. Adopted by the Hutchinson City Council this W day of April, 1998. Mayor City Administrator 74 • • PUBLICATION NO. 5148 NOTICE OF HEARING ON PROPOSED IMPROVEMENT LETTING NO.5 PROJECT NO. 98 -14 TO WHOM IT MAY CONCERN: Notice is hereby given that the City Council of Hutchinson, Minnesota, will meet in the ,C unct ambers of the Hutchinson City Center, 111 Hassan Street SE, Hutchinson, MN, at - 6:30 P.M. the 14` day of April, 1998, to consider the making of an improvement of Alley in outh 'h City between Hassan Street SE and Main Street S and 4th Avenue SE and 5th Avenue SE by construction of grading, gravel base, concrete paving, sidewalk and appurtenances; pursuant to Minnesota Statutes, Sections 429.011 to 429.111. The area proposed to be assessed for such improvement is the benefited property, for which property owners shall receive mailed notice. The estimated City Cost of said improvement is $125,800.00, with an Assessable Cost of $45,000.00, for the total estimated cost of $170,800.00. Such persons as desire to be heard with reference to the proposed improvement will be heard • at this meeting. Dated: March 24 1998 A AA ! `v X City A 6:is rator PLEASE NOTE: IT IS IMPORTANT THAT YOU ATTEND THIS HEARING, WHETHER YOU ARE FOR OR AGAINST THE PROJECT, IN ORDER THAT YOUR COUNCIL CAN BE BETTER INFORMED OF A TRUE REPRESENTATION OF OPINION. PUBLISHED IN THE HUTCHINSON LEADER ON TUESDAY, MARCH 31 1998 AND TUESDAY, APRIL 7 1998. 1] RESOLUTION NO. 10999 RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS LETTING NO.5 PROJECT NO. 98 -14 WHEREAS, a resolution of the City Council adopted the 24 day of March, 1998, fixed a date for a Council Hearing on the improvement of: of Alley in Block 50 South 'l City between Hassan Street SE and Main Street S and 4th Avenue SE and 5th Avenue SE by construction of grading, gravel base, concrete paving, sidewalk and appurtenances. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such improvement is hereby ordered as proposed in the resolution adopted the 24" day of March, 1998. 2. John P. Rodeberg is hereby designated as the Engineer for this improvement. He shall prepare plans and specifications for the making of such improvement. Adopted by the Council this 14"' day of April, 1998. • Mayor City Administrator RESOLUTION NO. 11000 0 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS LETTING NO.5 PROJECT NO. 98 -14 WHEREAS, the Director of Engineering has prepared plans and specifications for the improvement of: Alley in Block 50 South' /2 City between Hassan Street SE and Main Street S and 4th Avenue SE and 5th Avenue SE by construction of grading, gravel base, concrete paving, sidewalk and appurtenances NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The Director of Engineering shall prepare and cause to be inserted in the official newspaper, an advertisement for bids upon the making of such improvements under such approved plans and specifications. The advertisement shall be published for three weeks, shall specify the work to be done, shall state that bids will be publicly opened at 11:00 am on Friday, May 8'", 1998, in the Council Chambers of the Hutchinson City Center by the City Administrator and/or Director of Engineering, will then be tabulated, and will be considered by the Council on June • 23r 1998, in the Council Chambers of the Hutchinson City Center, Hutchinson, Minnesota. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Director of Engineering and accompanied by cash deposit, cashier's check, bid bond or certified check payable to the City of Hutchinson for 5 percent of the amount of such bid. Adopted by the Hutchinson City Council this 14' day of April, 1998. Mayor City Administrator • 0 C Hutchinson City Center Ill Hawn Street SE Hutchinson, MN 55350.2522 320. 587- 5151/Fa 320.234 -4240 M E M 0 R A N D U Mil • L-1 TO: Mayor and City Council FROM: John P. Rodeberg, Director of Engineering/Public Works RE: Discussion of Surface Water Management Utility by Bob Obermeyer of Barr Engineering Company DATE: April 1, 1998 Attached please find a short, draft version of a proposed ordinance related to the implementation of a Surface Water Management Utility. I have presented Surface Water Management Utility information to the Council several times, and it appears that we are in the position to finally consider its implementation. The Council has requested that the consultant be made available to discuss issues and answer questions. Bob Obermeyer of Barr Engineering Company will be at the Council meeting. We are planning on approximately a 45 minute presentation prior to the Public Hearings. typical residential household would generate approximately $120,000 — 180,000 per year to this fund. These cost could be used to offset the following Operational Costs: ► Storm sewer maintenance (1998 budget: $11,000) ► Crow River dam maintenance (1998 budget: S15, 000) ► Street sweeping (1998 budget -- $75,000) ► Consultant/Professional services for drainage and topography (1998 budget: 87,0001cut from budget in 1998: 522,500) Based on our preliminary review, we are assuming that an initial charge of $1.50 per month for a Some of the funds cut from the 1998 prevented us from reviewing problems that occurred in many areas of town during the storms of 1997. We really need to find a way to address these problem areas! We are also going to have rising storm sewer maintenance costs in regards to pond and runoff maintenance. We will need approximately $50,000 to remove buildup from storm sewer outlets into Otter Lake, and will need additional funding for storm water detention pond maintenance in the future. We are also facing trunk storm sewer improvements in several portions of the city that will require significant funding. These projects could include regional pond development and are expected to be hard to assess due to the requirement of showing a 1 -to -1 dollar benefit. Printedo recycledpaper- 0 These combined budget issues greatly exceed our ability to easily budget, even if the Surface Water Management Utility is approved. However, the Utility has many benefits, including: The Utility is a continuous, dedicated source of revenue The Utility is a "User Fee" based on the use of the surface water system rather than on a properties assessed value, making it more fair The Utility would generate revenues from properties that are currently exempt from taxes. The Utility revenue could be utilized to reduce the need for taxes to cover some operational costs. This addresses our goal of reducing the dependence on property taxes. The proposed rate of $4.50 would result in the following typical costs: Golf Course, undeveloped Single Family Residential Home Twin Home Schools, institutional uses Churches, mid - density residential High- density residential/Indust W Commercial/Business $2.50 /acre /month $1.50 /month $3.00 /month $10.00 /acre /month $12.50 /acre /month $17.50 /acre /month $22.50 /acre /month Based on the information presented at the Council meeting, we would like a motion recommending approval for preparing the ordinance, and holding the required public hearings. cc: Bob Obermeyer, Barr Engineering file: Surface Water Management Plan U • SEC. 3.50. RULES AND REGULATIONS RELATING TO SURFACE WATER MANAGEMENT Subd. 1. Surface Water Management Utility Established A municipal surface water management utility is hereby established and shall be operated as a public utility pursuant to Minnesota Statute 444.075. Revenues from the utility shall be used to fund the Surface Water Management Budget as defined below. Subd.2. Definitions "Residential Equivalent Factor (REF)" is defined as the ratio of the average volume of runoff generated by one acre of a particular land use compared to the average volume of runoff generated by one acre of a typical single - family residential parcel, assuming Soil Conservation Service (SCS) Type B soil conditions during a one -year rainfall event, all as determined by the City Engineer. 2. "Surface Water Management Budget" is defined as the annual budget approved by the City Council for surface water management, including but not limited to; planning monitoring, prevention, maintenance, land acquisition, capital expenditures, personnel and equipment. 3. "Surface Water Management Fee" is defined as the charge for each parcel of non - exempt • property in the City for management of surface water. a) The REF for particular land uses are as follows: "M 1 Cemetery, Golf Course, agricultural areas served by municipal utilities 0.5 2 Single - Family, 2- Family Residential 1.0 3 Public/Private Schools, Institutional Uses 2.0 4 Medium - Density Residential/Churches 2.5 5 High- Density Residential, Industrial, Railroad Rights -of -Way 3.5 6 Business/Commercial 4.5 b) The surface water management fee for a single - family residential property shall be calculated based on a typical 1/3 acre parcel. A 2- family residential property shall be calculated based on a typical 2/3 acre parcel. c) Other land uses not listed in the foregoing table shall be classified by the City Engineer based on runoff volumes for standard rainfall events. • Subd.4 Exemptions The following land uses are exempt from the surface water management fee: . a) Public rights -of -way b) Lakes and delineated wetlands c) City Property d) Agricultural areas not served by municipal utilities Subd. 5. Credits for On -Site Storm Water Detention A parcel may be credited for up to 50% of the Surface Water Management Fee for on -site measures which are owned and maintained by the applicant which limit storm water outflow rates from the site, and/or which effectively reduce the outflow of pollutants from the site. a) Procedure for Calculation of Storm Water Detention Credits for Runoff Rates If storm water detention ponds limit peak outflow rates during the noted 24 -hour rainfall events to the pre- development rates, the referenced credits will be applicable. Runoff rates will be determined using SCS TR -55, or other approved method, for the critical duration storm events noted below: Storm Event Pond Credit 5 -year 14% 10 -year 18% 25 24% 50 27% 100 -year 31% b) Procedure for Calculation of Water Quality Treatment Credits Credits will be based on the actual percentage of total suspended solids (TSS) removal efficiency for the following rates. Efficiency rate Credit 55% to 80 % sediment removal 13% 80 %+ sediment removal 19% The TSS removal efficiency shall be calculated using one of the following methodologies: - Desien Calculations for Wet Detention Ponds (W. Walker, 1987a) - P8 Urban Catchment Model IEP, Inc. (W. Walker) - P ondNet (W. Walker) - information on these are available on Walker's Web Site at www2.shore.net/—wwwatker/index-htm Subd. 6. Fees and Rates 1. Setting of Rates Rates shall be determined from time to time by Council Resolution 2. Payment of Fees The surface water management fee shall be billed monthly in coordination with the municipal utility billing • • 3. Appeal of Fee The City Council will review written appeals from property owners that believe a particular fee is incorrect. Certification of Delinquent Fees Does the current utility billing process have a policy to deal with this? City's Right to Inspect G: IENVIRONOo mCod.do i C • The city of Hutchinson plans to undertake a surface water management program. To pay for the costs of this program, the city plans to implement a Surface Water Management Utility. What Is a surface Water Management Utility? Similar to sanitary sewer and water utilities, surface water management utility fees are based on contribution rather than property values. Fees are related to the amount of rainfall that drains away or runs off land rather than soaking into the ground. The more runoff, the greater the impact on surface waters, therefore, the greater the charge. Why Does Hutchinson Need a Utility? To provide a continuous, dedicated source of revenue essential for managing lakes, water quality /quality basins and wetlands in the City, and to maintain and improve these same areas. Benefits • • Improved Lake Water Quality • Wetland Protection • Flood Protection • Erosion & Sediment Control • Conveyance System Maintenance • Maintenance of Water Quantity /Quality Basins Who Else is Using This Approach? C� The utility approach has gained acceptance locally as evidenced by the number of communities already using a stormwater utility including. • Roseville • Bloomington • Eagan • Edina • Eden Prairie • St. Paul • Fridley • Shakopee • Wayzata • Chanhassen 2343010 \68242 -UYMI3 Costs On an annual basis, the city could be based with costs exceeding $125,000 if water quality and surface water management issues are to be properly addressed. The monthly fees associated with funding a program of this size, for different property type may be: Single Family $1.50/lot Residential (1/3 acre) Commerical/Business $22.50/acre Undeveloped, Parks Cemeteries, Golf &urses $2.50/acre Churches Mid- Density Residential $12.50/acre Twin Homes $3.00/umt Schools, Institutional Uses $10.00/acre High - Density $17.50/acre ResidentiaU Industrial 0 The Utility or user charge places costs on contributors of runoff and water quality impacts, on a proportional basis. All properties pay, including churches, schools and government parcels. Paths, Cemeteries and Golf Coyrses • R esiderrda 1 Vacant Vacant Industrial Comm. General Taxes Residential Commercial & Industrial Utility Funding • Churches, Schools & Gov. Buildings Programs to be Funded by Utility • Wetland enhancement and maintenance • Street sweeping • Removal of accumulated sediment from lakes, water quantity /quality basins ✓ Surface water management practices and ordinance implementation and enforcement • Detention basin and stormwater conveyance system construction • In -place drainage system maintenance and reconstruction • Sedimentation basin maintenance • Address localized drainage problems ✓ Ditch and culvert maintenance 2343010 \68242 -1/YMH • THE UNDERSIGNED PERSONS PETITION THE CITY OF HUTCHINSON, THE LYNN TOWN BOARD AND THE MCLEOD COUNTY COMMISSIONERS, TO WORK TOGETHER TO PERFORM THE FOLLOWING WORK ON OTTER ST. S. W. WITHIN THE HUTCHINSON CITY LIMITS. RE -APPLY THE ORIGINAL ELEVATIONS THAT WERE PRESENT BEFORE ANNEXATION. THE CURRENT PROFILE IS A HIGH MAINTENANCE ITEM AS WELL AS A TRECHEAROUS SAFTY PROBLEM IN THE WINTER. DRIFTING SNOW CONSTANTLY CAUSES A NARROWING OF THE ROADWAY. WITH LIMITED VISIBILITY, IT IS NOT POSSIBLE TO SEE ON- COMING TRAFFIC. THE SOUTH SECTION, TEEING INTO SOUTH GRADE IS SO LOW THAT TRAFFIC VISIBILITY FROM THE WEST IS GREATLY IMPAIRED AND TOTALLY OBLITERATED BY THE HILL TO THE WEST JUST PRIOR TO THE INTERSECTION, ESPECIALLY WHEN THERE ARE SNOW BANKS. THE MIDDLE SECTION IS SO LOW THAT SNOW IS CONSTANTLY DRIFTING AND BLOCKING THE ROAD. THERE ARE 14 HOMES WITH APPROXIMATLY 30 PLUS PEOPLE LIVING ON THE NORTH SECTION. THIS IS THE%tONLY ROUTE OUT. INSTALL A RIGHT HAND TURN LANE INTO OTTER ST SW FROM SCHOOL ROAD. THIS TURN IS BEING EXECUTED IN A NO- PASSING ZONE, AND A • TURNING VEHICLE CAUSES TRAILING VEHICLES TO PULL OVER INTO ON COMING TRAFFIC. THIS HAS BECOME AN INCREASING PROBLEM WITH THE INCREASE IN TRAFFIC. WE ARE REQUESTING THAT THESE CHANGES BE IMPLEMENTED PRIOR TO FURTHUR WORK ON THIS ROAD. 1. 3. 4. 5. 6. 7. 8. • d' 0 9. ic 11 1i I/ 13.4 14. is. 11.1 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 0 • 0 0 0 #1= Virgil & Virginia Wegscheid #2 =Boyd Welch #3= Lowell & Wanda Brecht #4 =Alma Boller #S =Carla Dummer #6 =Fred & Darlene Schmoll 191 x 1 x,1 F 20 7 1 18 l 191 110 II CITY PROPERTY 6 � 15 16 17 #7 =David Steinle #8 =John & Jolene Landfair #9 =Dan Kable #10 =John Okonski #11 =Bob & Judy Geary #12 =Scott Hays #13= Russell & Theresa Barrick � 18 21 113 #1 4= #1 5= #16= #1 7= #18 =Ron Hansen #19= Datlof Weslow #20 =Dale Redetske 14 Cn 0 C w CL cn 0 Note: This shows how many homes are effected by this road. 0 APR 1 3 1998 CI fjr Hu i Uh+NSON Lynn Township • At the April meeting of the Lynn Town Board, Virgil Wegscheid was present to inform the board about a petition from the residents of Otter Street. The residents are very concerned t about the change in the road elevation causing a lot of drifting of snow in the winter time making it a safety issue. After the city annexed this land from Lynn Township the land was plotted out and the elevation changed. The residents want to re -apply the original elevation that was present before the annexation. This letter is to inform you that the Lynn Town Board gives their full support on this petition. Cheryl Bleil Clerk, Lynn Township e s • 1 Hutchinson City Center CI r� L • DATE: April 14, 1998 111 Hawn Street SE Hutchim a, MN 55350-2522 320 - 587- 51511Fm 320-234 -4240 TO: Mayor and City Council FROM: Randy DeVries, Director of Water/Wastewater RE: Letting No. 6, Project No. 98 -16 Demolition of Old Wastewater Treatment Plant Bids on the above referenced project were opened on April 13, 1998 and the following bids were received: Structural Specialties, Inc. of Hutchinson MN $49,488.00 Diamond Five Construction of Hutchinson MN $54,000.00 Max Steininger Inc of Eagan MN $59,900.00 Veit & Co Inc $83,619.00 Landwehr Const Co $98,500.00 The low bidder was submitted by Structural Specialties Inc. Staff has reviewed all submittals required in the Bid Documents and found them to meet requirements. I recommend that Letting 6/1roject No. 98 -16 be awarded to Structural Specialties, Inc. 0 _ /q' Printed on recycled paper - -. APR -14 -96 14:05 FrwRUST E L I 6125512499 T -119 P, 01/01 Job -076 MWINFRASTECTURE Far 7' I • 0 f" A r r . •� Conummm • ... MEMO= - MAIN - .�•�.- 1. :.L. ! r r �Y /I � IL. • - •9 , a- r � ♦_ f...... Imo. � a �.._. I • 0 f" A City of Hutchinson, 111 Hassan St SE, Hutchinson MN 55350 (320 -587 -5151) BID TABULATION LETTING NO. 6 PROJECT NO. 98-16 COMPLETION: 5 -13 -1998 ENGINEER'S ESTE%1ATE $ NA BID OPENING DATE: 4-13 -1998 BIDS OPENED AT 2:00 PM NAME AND ADDRESS TELEPHONE FAXIWATS SURETY ADDENDIIMS AMOUNT' Landwehr Consturction Inc 846 South 33r St, P O Box 1086 BB 1 & 2 $98,500.00 St Cloud MN 56302 320- 252 -1494 320- 252 -2380 Structural Specialties Inc 20498 Hwy 15 N, P O Box 502 BB 1 & 2 49, 488.00 Hutchinson MN 55350 320 -587 -6719 320- 587 -0838 Diamond Five Construction 20718 Hwy 7 West BB 1 & 2 54,000.00 Hutchinson MN 55350 320 -587 -7121 Mathiowetz Construction Cc RR 2, P O Box 84 Sleepy Eye MN 56085 507- 794 -6953 507 -794 -3514 J & D Enterprises 5197 Lavaque Rd uth MN 55803 218 - 729 -9105 218- 729 -7296 AC Metro 8830 Xylite St NE Blaine MN 55449 612 -786 -1071 612- 786 -1171 Veit & Co., Inc. 1400 Veit Place BB 1 & 2 83, 619.00 Rogers MN 55374 612428 -2242 612 -528 -8348 Max Steininger Inc 3070 So. Lexington Ave BB 1 & 2 59, 900.00 Eagan MN 55121 612 -454 -6620 612 -454 -6716 Dirtworks 2000 Inc 1960 Oak Grove Rd SW St Claud MN 56301 320 -259 -4900 320- 259 -4970 int: 1 set try File: L6198 -16 I set t— MINUTES BID OPENING MONDAY, APRIL 13, 1998 Finance Director Kenneth B. Merrill called the bid opening to order at 2:00 p.m. Also present were Director Randy DeVries, Engineering Project Inspector Quentin Larson and Administrative Secretary Marilyn J. Swanson. The reading of Publication No. 5149, Advertisement for Bids, Letting No. 6, Project No. 98 -16, was dispensed with. The Addendums No. 1 and No. 2 were acknowledged, and the following bids were opened and read: Landwehr Construction Inc. St. Cloud, MN $98,500.00 Structural Specialties Inc. Hutchinson, MN 49,488.00 Diamond Five Construction Hutchinson, MN 54,000.00 Veit & Co., Inc. Rogers, MN 83,619.00 Max Steininger Inc. Eagan, MN 59,900.00 The bids were referred to staff for review and a recommendation. The bid opening closed at 2:10 p.m. 71 t • n LJ • DATE: April 9, 1998 • TO: Mayor Marlin Torgerson and City Council Members FROM: Dick Lennes - HCDC Executive Director RE: Considerations for Industrial Park Development Please review the following information prior to the City Council meeting on April 14th. These items will be on the agenda for that evening. If you have any questions or want better clarification of any of the items listed please let me know. McGraw Donation. Donation of seven acres of land in the Industrial Park by Ronald McGraw. McGraw is ready to donate seven acres of land on the corner of Michigan St. and 2nd Avenue in the Industrial Park. The conditions for his gift would be the forgiveness of approximately $52,198.00 of deferred assess- ments and forgiveness of the delinquent taxes of approximately $4,825.00. The closing date estab- lished for this transaction is May 1, 1998. This transaction has been considered favorably by the HCDC Industrial Park Development Team, HCDC Finance Team and HCDC Board of Commission- ers. In addition, Don Erickson, as a representative of the Council and Board of Commissioners and Gary Plotz, have been involved in working with McGraw in making this a reality. It comes to the Council with full support of the EDA. 2. Purchase of the two acre parcel owned by Leonard Miller. • The purchase of approximately two acres owned by Leonard Miller is an opportunity to enhance the donation of the Ron McGraw property. The purchase would square off a rectangular piece of land that makes it more conductive for development in the Industrial Park. The purchase would be for #30,000.00 net with the EDA absorbing the closing costs on this property. The Leonard Miller purchase amounts to $15,000.00 per acre which is within the appraisals that we've had on similar property. The Goebel property is considered a good comparison because it has full City services adjacent to the property and a finished road. The appraisal on that property is almost $20,000.00 per acre. Just as the McGraw property has gone through all the committees with favorable action, the Leonard Miller property has been endorsed as a desirable purchase. Council person, Don Erickson, and City Administrator, Gary Plotz, have been involved in this transaction. 3. Purchase of Allied Properties. For quite some time HCDC has been working with the Industrial Park Development Team, Finance Team, and the Board to allow for expansion of the Business Park concept in the Industrial Park. Dick McClure is a key player in building rental properties for industry on the corner of 5th Avenue and Arch St. next to the 5th Avenue bridge. The Industrial Park Development Team has laid out a total concept that would involve several properties in the future. The purchase of the Allied Properties 1.06 acres in a logical first step to making properties available for this purpose. The intention would be for the EDA to hold title on the property and make it available at some future date to a developer to continue with the design that is laid out for the Business Park concept. At that time a nine year economic development district would be established and a land writedown • would be available to comply with the existing City policy. It is recommended by all of the HCDC entities to move ahead with the purchase of the Allied Property at a price of $20,000.00. Again, this is in compliance with the comps. that we have on the formal appraisals of properties in the Industrial Park. The closing date is scheduled for May 1, 1998. ' 4, 4. Proposed Resolution. Attached is a proposed resolution which would provide the funding for the costs involved • with items numbers 1, 2, and 3 of this memo. The money that is being asked to transfer in the amount of $91,953.00 plus interest is a result of the sale of previous properties in the Industrial Park. You can see that the $300,000.00 of money that was committed by the City will still be in tact and used for other purposes and remain in control of the City. It is recommended that City Council consider affirmative action on the proposed resolution. 46 E RECE. ARNOLD, ANDERSON & DOVE • PROFESSIONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW Mr. Gary D. Plotz Hutchinson City Center 111 Hassan Street SE Hutchinson, Mn. 55350 Re: HCDC/Miller - McGraw Farm Purchase Our File No. 3188 -98370 Dear Cary .1PR 14 19y -i OF COUNSEL ARTHUR L. DOTEN 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545.9000 FAX (612) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (6 121 389-221 4 FAX (81 2) 389 -5508 I am enclosing herewith a Bare Ground Purchase Agreement which will be needed at the City Council meeting on Tuesday evening. There may be some minor changes In this Agreement but I expect the broad outlines of • this transaction will remain the same. Essentially, the City is acquiring the parcel of real estate located at the intersection of 2 n° Avenue and Michigan Street known as the Miller farm. Mr. and Mrs. Miller or their Trust is retaining a small portion of the real estate. The property has been surveyed but as of the preparation of this correspondence and purchase agreement (Monday) I have not yet received the legal description and survey from Pellinen Land Surveying. I expect to receive It either today or tomorrow. I believe you either have or will receive information from the EDA regarding acquisition which reflects some history and background but essentially the deal is that Mr. and Mrs. Miller or their Trust will receive the sum of $30,000.00 net for their interest in the property and Mr. McGraw will donate the 7 acres that he owns by way of an unrecorded document (presumably a Contract for Deed) provided the City agrees to assume responsibility for assessments and taxes. it should be noted that this purchase agreement does otot require the City to relieve the property of the present assessment or tax burden since the issue of what will be done with the taxes or assessments will be addressed at some later date when development of the site occurs. I assume that Mary Beth will circulate the agreement among the interested parties although I am taking the liberty of mailing a copy to Ron McGraw's office for his review. I understand he is out of town until Thursday and so other signatures may not be secured until that time. If you have any questions regarding this Bare Ground Purchase Agreement, please do not hesitate to contact me. Thank you. A Very truly G. Baby Anderson • GBA:jm cc: Ron McGraw Mary Beth Schaufler ) !5 (14,2-) 4,2-) 'CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION 'CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION 101 PARK PLACE DAVID B, ARNOLD' HUTCHINSON, MINNESOTA 55350-2563 STEVEN A- ANDERSON G. BARRY ANDERSON' (320) 587 -7575 LAURA K. FRETLAND FAX (320) 587 -4096 PAUL D. DOVE'* JANE VAN VALKENBURG RESIDENT ATTORNEY RICHARD G. McGEE G. BARRY ANDERSON CATHRYN D. REITER WALTER P. MICHELS. III JAMES UTLEY 'ALSO ADMITTED IN TEXAS AND NEW YORK April 13, 1998 Mr. Gary D. Plotz Hutchinson City Center 111 Hassan Street SE Hutchinson, Mn. 55350 Re: HCDC/Miller - McGraw Farm Purchase Our File No. 3188 -98370 Dear Cary .1PR 14 19y -i OF COUNSEL ARTHUR L. DOTEN 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545.9000 FAX (612) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (6 121 389-221 4 FAX (81 2) 389 -5508 I am enclosing herewith a Bare Ground Purchase Agreement which will be needed at the City Council meeting on Tuesday evening. There may be some minor changes In this Agreement but I expect the broad outlines of • this transaction will remain the same. Essentially, the City is acquiring the parcel of real estate located at the intersection of 2 n° Avenue and Michigan Street known as the Miller farm. Mr. and Mrs. Miller or their Trust is retaining a small portion of the real estate. The property has been surveyed but as of the preparation of this correspondence and purchase agreement (Monday) I have not yet received the legal description and survey from Pellinen Land Surveying. I expect to receive It either today or tomorrow. I believe you either have or will receive information from the EDA regarding acquisition which reflects some history and background but essentially the deal is that Mr. and Mrs. Miller or their Trust will receive the sum of $30,000.00 net for their interest in the property and Mr. McGraw will donate the 7 acres that he owns by way of an unrecorded document (presumably a Contract for Deed) provided the City agrees to assume responsibility for assessments and taxes. it should be noted that this purchase agreement does otot require the City to relieve the property of the present assessment or tax burden since the issue of what will be done with the taxes or assessments will be addressed at some later date when development of the site occurs. I assume that Mary Beth will circulate the agreement among the interested parties although I am taking the liberty of mailing a copy to Ron McGraw's office for his review. I understand he is out of town until Thursday and so other signatures may not be secured until that time. If you have any questions regarding this Bare Ground Purchase Agreement, please do not hesitate to contact me. Thank you. A Very truly G. Baby Anderson • GBA:jm cc: Ron McGraw Mary Beth Schaufler ) !5 (14,2-) 4,2-) 'CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION 'CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION • BARE GROUND PURCHASE AGREEMENT THIS BARE GROUND PURCHASE AGREEMENT is made and entered into this day of April, by and between the Hutchinson Community Development Commission, a division of the City of Hutchinson (Buyer) and Leonard G. Miller and Miriam L Miller (as to Certificates of -Title 6231 and 6232) and Miriam L. Miller as trustee of the Leonard and Miriam L. Miller Trust (as to CertrfiZate No. 6230) and R.J. McGraw and Kathleen McGraw (Sellers). RECITALS: 1. Sellers desires to sell the real estate described on attached Exhibit "A' which is incorporated herein as if fully set out. 2. R.J. McGraw and Kathleen McGraw desire to donate to the Hutchinson Community Development Commission, a division of the City of Hutchinson, their Interest in 7 acres of the property described on attached Exhibit 'A', which 7 acres was purchased by way of unrecorded documentation, and which donation is subject to certain conditions and restrictions as hereinafter set forth. 3. The Hutchinson Community Development Commission, a division of the City of Hutchinson, desires to accept the donation and purchase of said property and the parties hereto have now reduced their agreement in writing. NOW THEREFORE, forgood and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties do hereby agree and contract as follows: . 1. OFFER AND ACCEPTANCE OF DONATED LAND McGraw agrees to donate to the Hutchinson Community Development Corporation (HCDC) and HCDC agrees to accept the donation of certain real estate described on attached Exhibit 'B' which is incorporated herein as if fully set out. McGraw's donation of said land is expressly conditioned upon acceptance of the donation by HCDC and the agreement of the City of Hutchinson that McGraw and all owners of the land described on attached Exhibit 'A' shall be held harmless from any and all tax obligations associated with the property, whether current or delinquent, and shall also be held harmless from any and all assessments now imposed or to be imposed on the properly described on attached Exhibit *A ". 2. PRICE AND TERMS The price for the real property included in this sale is Thirty Thousand and no /100 Dollars ($30,000) to be paid in cash at the time of closing. Within thirty (30) days following execution of this agreement, buyer shall furnish to sellers the sum of One Hundred and no /100 Dollars ($100.00) as and for earnest money for this purchase agreement and shall receive a credit for said amount at the time of closing. 3. DEED AND MARKETABLE TITLE Upon performance by Buyer, Sellers shall execute and deliver a general warranty deed joined in by spouse, if any, conveying marketable title, subject to: • (a) building and zoning laws, ordinances, state and federal regulations; (b) restrictions relating to use or improvement of the property without effective forfeiture provisions; (c) reservation of any mineral rights by the Stale of Minnesota; (d) utility and drainage easements which do not interfere with existing Improvements; (e) exceptions to trite which constitute encumbrances, restrictions or easements which have been disclosed to Buyer and accepted by Buyer In this purchase agreement; (must be specified In writing) 4. REAL ESTATE AND ASSESSMENTS All real estate taxes due and payable in and for the year of closing, and all delinquent real estate taxes, if any, shall be the responsibility of Buyer and Sellers shall, collectively, be held harmless from any obligation associated with said taxes or assessments. 5. DAMAGES TO REAL PROPERTY If the real property is substantially damaged prior to closing, this agreement shall terminate and the earnest money shall be refunded to Buyer. If the real property Is damaged materially but less than substantially prior to closing, Buyer may rescind this agreement by notice to Seller within twenty one (21) days after Sellers notify Buyer of such damage, during which twenty one (21) day period Buyer may inspect the real property, and in the event of such rescission, the earnest money shall be refunded to Buyer. 6. BOUNDARY LINE. ACCESS, RESTRICTIONS AND LIEN WARRANTIES Sellers warrant that there is a right of access to the real property from a public right of way. Sellers warrant that there has been no labor or material furnished to the property for which payment has not been made. Sellers warrant that there are no present violations or any restrictions relating to the use or improvement of the property. 7. DISCLOSURE OF NOTICES Sellers have not received any notice from any governmental authority as to violation of any law, ordinance or regulation affecting the property. If the property is subject to restrictive covenants, Sellers have not received any notice from any person as to a breach of the covenants. 8. EXAMINATION OF TITLE Within a reasonable time after the acceptance of this agreement, Sellers shall furnish Buyer with an Abstract of Title or a Registered Property Abstract certified to date Including proper searches covering bankruptcies and State and Federal judgments, liens and levied and pending special assessments. Buyer shall have ten (10) business days after receipt of the Abstract of Title or Registered Property Abstract either to have Buyer's attorney examine the title and provide Sellers with written objections or at Buyer's own expense, to make an application for a Title Insurance Policy and notify Sellers of the application. Buyer shall have ten (10) business days after receipt of the Commitment foi Title Insurance to provide Sellers with a copy of the Commitment and written objections. Buyer shall be deemed to have waived any We objection not maae within the ten (10) day period, except that this shall not operate as a waiver of Sellers' covenant to deliver a statutory Warranty Deed, unless a Warranty Deed is not specified above. 9. TITLE CORRECTIONS AND REMEDIES: Sellers shall have 120 days from receipt of Buyer's written title objections to make title marketable. Upon receipt of Buyer's title objections, Sellers shall, within ten (10) business days, notify Buyer of Sellers' intention to make title marketable within the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Sellers shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the closing shall be postponed. (A) If notice is given and Sellers makes title marketable, then upon presentation to Buyer and proposed lender of documentation establishing that title has been made marketable, if not objected to In the same time and manner as the original title objections, the closing shall take place within ten (10) business days or on the scheduled Dosing date, whichever is later. (B) If notice is given and Sellers proceeds in good faith to make title marketable but the 120 day period expires without title being made marketable, Buyer may declare this agreement void by notice to Sellers, neither party shall be liable for damages hereunder to the other, and earnest money shall be refunded to Buyer. (C) If Sellers do not give notice of intention to make title marketable, or if notice is given but the 120 day period expires without title being made marketable due to Sellers' failure to proceed in good faith, Buyer may seek, as permitted by law, one or more of the following: Proceed to dosing without waiver or merger in the deed of the objections to title and without i waiver of any remedies, and may. (a) seek damages, costs, and reasonable attomeys' fees • from Sellers as permitted by law (damages under this subparagraph (1) shall be limited to the costs of curing objections of title, and consequential damages are excluded); or (b) undertake proceedings to correct the objections to title; 2. Rescission of this purchase agreement by notice as providecLherein, in which case the purchase agreement shall be void and all earnest money paid hereunder shall be refunded to Buyer. 3. Damages from Sellers together with costs and reasonable attomeys' fees, as permitted by law; 4. Specific performance within six months after such right of action arises. (D) If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Sellers mayelect either of the following options as permitted by law: Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; 2. Seek specific performance of this agreement within six months after such right of action arises, including costs and reasonable attomeys' fees, as permitted by law. (E) If title is marketable, or is made marketable as provided herein, and Sellers defaults in any of the agreements herein, Buyer may, as permitted by law: • 1. Seek damages from Sellers including costs and reasonable attomeys' fees; 2. Seek performance within six months after such right of action arises. 10. ENVIRONMENTAL CONTINGENCY: Buyer shall have the right to enter upon the property, at any reasonable time and with adequate notice to Sellers a visual Inspection and for the purpose of conducting such environmental, engineering, surveying and other investigations or testing as Hutchinson considers necessary. Buyer shall () deliver to Sellers a waiver of lien executed by any part or entity conducting any Investigation or testing on Buyer's behalf on the property (i) conduct all Investigation or testing in compliance with applicable governmental rules, laws and regulations oil) repair or restore any damage or disturbance to the property caused by investigation or testing conducted by or on behalf of Buyer and (iv) indemnity and hold Sellers, and Sellers' successors and assigns, harmless from any claim, action, liability or demand and in any way arising from or related to the investigation or testing conducted on the property. The indemnification by Buyer shall not extend to any environmental condition on the property which existed prior to Buyer's Investigation or testing. Buyer's obligations under this purchase agreement are contingent upon satisfactory testing results pursuant to this paragraph. This contingency shall be deemed waived unless Buyer gives written notice to Seller of Buyer's desire to avail itself of this contingency on or before May 1, 1998. 11. ASSIGNMENT: This purchase agreement shall be fully assignable by either party. 12. NOTICES: Notices under this agreement shall be sent to the following addresses: If to Sellers: Ronald and Kathleen McGraw 102 Main Street S. Citizens Bank Building Hutchinson, Mn. 55350 If to Buyers: Hutchinson Community Development Commission - EDA • Hutchinson City Center 111 Hassan Street SE Hutchinson, Mn. 55350 With a copy to: G. Barry Anderson, City Attomey — — ARNOLD, ANDERSON & DOVE, PLLP 101 Park Place Hutchinson. Mn. 55350 13. MINNESOTA LAW: This contract shall be govemed by laws of the Stale of Minnesota. 14. WELL DISCLOSURE AND INDIVIDUAL SEWAGE TREATMENT SYSTEM DISCLOSURE: Sellers certify that Sellers know of no wells or individual sewer systems on the property. 15. DATE OF CLOSING: Unless otherwise agreed by the parties, or unless otherwise required by this agreement because of title defects or other contingencies, this transaction shall close at the offices of McLeod County Title Services, LLC on or before May 1, 1998. 18. C Q LOSING COSTS All closing costs exclusive of Sellers' attomey's fees shall be bome by the Buyer. written. IN WITNESS WHEREOF the parties hereto have set their hands the year and date first above CITY OF HUTCHINSON Ronald J. McGraw Kathleen McGraw Leonard G. Miller Miriam L. Miller Miriam L. Miller as trustee of Leonard & Miriam L. Miller Trust By: Its Mayor City Administrator HUTCHINSON COMMUNITY DEVELOPMENT COMMISSION - EDA Donald Walser, President E 0 Hutchinson Community Development Commission — an EDA PROPOSED .RESOL UTION- Recommend the City Council transfer an amount of $91,953. plus interest to the EDA from the Economic Development Loan fund to be used for Industrial Park development. It is also recommended that the EDA be authorized to purchase or improve property in the Industrial Park within the limitation of resources available. Background: The $91,953. was generated through Industrial Park land sales as follows: Impressions Incorporated $ 18,342. Plastic Specialties 39,528. 3D CNC 12,790. Solitra 21,293. The purpose of the transfer is to provide funds for the EDA to expand and improve the Industrial Park. Acquisition of the two parcels (Miller & Allied Mechanical) will be the short -term use of the funds. In addition, the City Council approved $300,000. for Industrial Park Development. It seems prudent to keep the $300,000. in a city fund until settlement has been reached on the Wetherell property with the City of Hutchinson. 0 BARE GROUND PURCHASE AGREEMENT THIS BARE GROUND PURCHASE AGREEMENT is made and entered into this _ day of April, by and between Allied Properties of Hutchinson, a Minnesota partnership, (Seller) and the Hutchinson Community Development Commission, a division of the City of Hutchinson, a Minnesota municipal corporation (Buyer). RECITALS: 1. Seller desires to sell the following described real estate: Lot 5,Block t, Swanson's Subdivision, Hutchinson Industrial District 2. Buyer desires to purchase said property; 3. The parties hereto have reduced their agreement to writing. NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties do hereby agree and contract as follows: 1. OFFER AND ACCEPTANCE Buyer offers to purchase and Seller agrees to sell the above described real estate. • 2. PRICE AND TERMS The price for the real and personal property included in this sale is Twenty Thousand and no /100 Dollars ($20,000.00), to be paid in cash at the time of closing. Within thirty (30) days following execution of this agteement, Buyer shall furnish to Seller the sum of One Hundred and no/100 Dollars ($100.00) as and for earnest money for this purchase agreement and shall receive a credit for said amount at the time of closing. 3. DEED AND MARKETABLE TITLE Upon performance by Buyer, Seller shall execute and deliver a general warranty deed joined in by spouse, if any, conveying marketable title, subject to: (a) building and zoning laws, ordinances, state and federal regulations; (b) restrictions relating to use or improvement of the property without effective forfeiture provisions; (c) reservation of any mineral rights by the State of Minnesota; (d) utility and drainage easements which do not interfere with existing improvements; (e) exceptions to title which constitute encumbrances, restrictions, or easements which have been disclosed to Buyer and accepted by Buyer in this purchase agreement; (must be specified in writing) 4. REAL ESTATE TAXES AND ASSESSMENT ASSESSMENT Real estate taxes due and payable in and for the year of closing shall be pro rated between Seller and Buyer on a calendar year basis to the • actual date of closing, unless otherwise provided in this agreement. Real estate taxes due and payable in the years preceding the year of closing shall be paid by Seller. Seller shall pay on the date of closing all installments of special assessments either certified for payment with the real estate taxes due and payable in the year of closing or levied or pending as of the date of this agreement. As of i the date of this agreement, Seller represents that Seller has not received a notice of hearing of a new public improvement project from any governmental assessing authority, the costs of which project may be assessed against the property. If a special assessment becomes pending after the date of this agreement and before the date of closing, Buyer may, at Buyer's option: (a) assume payment of the pending special assessment without adjustment to the purchase price of the property; or (b) require Seller to pay the pending special assessment and Buyer shall pay a commensurate increase in the purchase price of the property, which increase shall be the same as the estimated amount of the assessment; or (c) declare this agreement null and void by notice to Seller and earnest money shall be refunded to Buyer. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter and any unpaid special assessments, the payment of which is not otherwise provided for herein. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. Seller warrants that the taxes due and payable in the year 1998 will be full homestead classification. 5. DAMAGES TO REAL PROPERTY If the real property is substantially damaged prior to closing, this agreement shall terminate and the earnest money shall be refunded to Buyer. If the real property is damaged materially but less than substantially prior to closing, Buyer may rescind this agreement by notice to Seller within twenty one (2 1) days after Seller notifies Buyer of such damage, during which twenty one (21) day period Buyer may inspect the real property, and in the event of such rescission, the earnest money shall be refunded to Buyer. 6. BOUNDARY LINE ACCESS RESTRICTIONS AND LIEN WARRANTIES Seller warrants that there is a right of access to the real property from a public right of way. Seller warrants that there has been no labor or material furnished to the property for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the property. 7. DISCLOSURE OF NOTI CES , Seller has not received any notice from any governmental authority as to violation of any law, ordinance or regulation affecting the property. If the property is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. 8. EXAMINATION OF TM,E Within a reasonable time after the acceptance of this agreement, Seller shall furnish Buyer with an Abstract of Title or a Registered Property Abstract certified to date including proper searches covering bankruptcies and State and Federal judgments, liens, and levied and pending special assessments. Buyer shall have ten (10) business days after receipt of the Abstract of Title or Registered Property Abstract either to have Buyer's attorney examine the title and provide Seller with written objections or, at Buyer's own expense, to make an application for a Title Insurance Policy and notify Seller of the application. Buyer shall have ten (10) business days after receipt of the Commitment for Title Insurance to provide Seller with a copy of the Commitment and written objections. Buyer shall be deemed to have waived any title objection not made within the ten (10) day period, except that this shall not operate as a waiver of Seller's covenant to deliver a statutory Warranty Deed, unless a Warranty Deed is not specified above. 9. TITLE CORRECTIONS AND REMEDIE Seller shall have 120 days from receipt of Buyer's written title objections to make title marketable. Upon receipt of Buyer's title objections, Seller shall, within ten (10) business days, notify Buyer of Seller's intention to make title marketable within the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the closing shall be postponed. (A) If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation establishing that title has been made marketable, if not objected tom the same time and manner as the original title objections, the closing shall take place within ten (10) business days or on the scheduled closing date, whichever is later. (B) If notice is given and Seller proceeds in good faith to make title marketable but the 120 day period expires without title being made marketable, Buyer may declare this agreement void by notice to Seller, neither party shall be liable for damages hereunder to the other, and earnest money shall be refunded to Buyer. (C) If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 day period expires without title being made marketable due to Seller's failure to proceed in good faith, Buyer may seek, as permitted by law, one or more of the following: Proceed to closing without waiver or merger in the deed of the objections to title and without waiver of any remedies, and may: (a) seek damages, costs, and reasonable attorneys' fees from Seller as permitted by law (damages under this subparagraph (I) shall be limited to the costs of curing objections of title, and consequential damages are excluded), or (b) undertake proceedings to correct the objections to title; 2. Rescission of this purchase agreement by notice as provided herein, in which case the purchase agreement shall be void and all earnest money paid hereunder shall be refunded to Buyer. Damages from Seller together with costs and reasonable attorneys' fees, as permitted by law; 4. Specific performance within six months after such right of action arises. (D) If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options as permitted by law: 1. Cancel this contract as provided by statute and retain all payments made hereunder • as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; 2. Seek specific performance of this agreement within six months after such right of action arises, including costs and reasonable attorneys' fees, as permitted by law. (E) If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: Seek damages from Seller including costs and reasonable attorneys' fees; 2. Seek performance within six months after such right of action arises. 10. ENVIRONMENTAL CONTINGENCY: Buyer shall have the right to enter upon the property, at any reasonable time and with adequate notice to Seller a visual inspection and for the purpose of conducting such environmental, engineering, surveying and other investigations or testing as Hutchinson considers necessary. Buyer shall (i) deliver to Seller a waiver of lien executed by any part or entity conducting any investigation or testing on Buyer's behalf on the property (ii) conduct all investigation or testing in compliance with applicable governmental rules, laws and regulations (iii) repair or restore any damage or disturbance to the property caused by investigation or testing conducted by or on behalf of Buyer and (iv) indemnity and hold Seller, and Seller's successors and assigns, harmless from any claim, action, liability or demand and in any way arising from or related to the investigation or testing conducted on the property. The indemnification by Buyer shall not extend to any environmental condition on the property which existed prior to Buyer's investigation or testing. Buyer's obligations under this purchase agreement are contingent upon satisfactory testing results pursuant to this paragraph. This contingency shall be deemed waived unless Buyer gives written notice to Seller of Buyer's desire to avail itself of this contingency on or before May 31, 1998. 11. ASSIGNMENT: This purchase agreement shall be fully assignable by either party. 12. NOTICES: Notices under this agreement shall be sent to the following addresses: If to Seller: Allied Properties of Hutchinson 340 Michigan Street S.E. Hutchinson, Mn. 55350 If to Buyer: Hutchinson Community Development Commission -EDA Hutchinson City Center 111 Hassan Street S.E. Hutchinson, Mn. 55350 With a copy to: G. Barry Anderson, City Attorney ARNOLD, ANDERSON & DOVE, PLLP 101 Park Place Hutchinson, Mn. 55350 • G 0 13. MINNESOTA LAW: This contract shall be governed by laws of the State of Minnesota. 14. WELL DISCLOSURE AND INDIVIDUAL SEWAGE TREATMENT SYSTEM DISCLOSURE: Seller certifies that Seller knows of no wells or individual sewer systems on the property. 15. DATE OF CLOSING: Unless otherwise agreed by the parties, or unless otherwise required by this agreement because of title defects or other contingencies, this transaction shall close at the offices of McLeod County Title Services, LLC on or before A� IN WITNESS WHEREOF the parties hereto have set their hands the year and date first above written. ALLIED PROPERTIES OF HUTCHINSON HUTCHINSON COMMUNITY DEVELOPMENT COMMISSION -EDA M Donald Walser, President 0 MARILYN M SWANSON From: JAMES MARKA Sent: Friday, March 06, 1998 4:46 PM GARY D PLOTZ; MARILYN M SWANSON c: Barry Anderson; BONNIE J BAUMETZ; KENNETH B MERRILL; MARK HENSEN; MARY BETH SCHAUFLER Subject: Augusta TIF district Cary Osbo TIF district. the next Cc It is my unc Thanks! with Auausta Coro will be faxing a writtten reauest to remove Phase two of the lot split has been recorded. Bonnie, please verify. Court Apts from the rmi . Please place on El 0 1 v • 511 Colfax Street Box 367 Office: (715) 286 -5003 Augusta, Wisconsin 54722 Brian Solsrud ext 230 Fax: (715) 286 -2850 Cary Osborn ext 232 David Wood ext 240 March 10, 1998 VIA: FAX (320/2344240) & MAIL Gary Plotz City Administrator City of Hutchinson 111 Hassan Street SE Hutchinson, Minnesota 55350 Iwa MAR 1 2 1998 cif J; HuiCHINSON RE: Removal of Land for Century Court Apartments H from TIF District Dear Mr. Plotz: This letter serves as a formal request to remove the land for the Century Court Phase II apartment development from the TIT District established for the Phase I development. Enclosed is a copy of the recorded deed for Phase 11, which includes the legal description for the land area to be removed from the TIF District. Please call with questions or comments. I look forward to your response. Sincerely, Cary o?KTV- Vice President Century II Development, LLC General Partner, Century Court II L.P. cc: Jim Marka CCO:sa enclosure 11 i WZZW Coryemde. or►m..rJlpb . C neu Or ►+n..e,hl ! GIIIO:i OaTLxi wWi tt�'Mr rRO.oaR 11O.iPe rowRt NloY No del nquent taxes and transfer enters Certificate e.r.ey r..uxr. ra.c cu. t,.a,. %. " xu.d fer r.rard ., E of Real ststa Value �5 ( )Sled ( not required oee. .e. a. Certifl to of Real Estate Value No. in „ .�hrr e...ry xwa "eY..f9. ry. e..e cs.wr q �y {J o a re u ie n I S. O i.. • n� /'� .aa•d „A„ Tn t,,r,ni a .min 1 i ounty Auditor .I 1 by d x.dn �- -T'sv 7Zs Deputy STATE DEED TAX DUE HEREON: S_ 1.65 ... , . Date: December 15 - OR VALUABLE CONSIDERATION, he laws Of Wiecena in a na rte shin under Limn OruHOr, hereby conveys and warrants to _ted Par erehiO Grantee, a Wisconnin under the laws of Wisconsin :ounty,1Irmesota„descdbed as follows; real Property in _McLeod Lot 1, Block 1, Century court, according to the recorded plat thereof, except the South 365.00 feet, as measured along the east and west lines of said Lot 1. No known wells. Consideration less than $500 -State Deed Tax Due, $1.65 ogether with all hueditaments and ore0m w.r. r 21444coadvas e.b.rp appurtenances belonging thereto, subject to the following exceptions: all minerals and mineral rights, municipal and zoning ordinances, recorded easements, recorded building and use restrictions and covenants, and real estate taxes levied in the year Of closing. . CROW M OW RIVER AP RTENTS LIMITED P RTNER ciiD xu vsa 5 __ a.e.ipe Yo. - By Rut•rhinnnn na• tnn t r ed Co ry ru.ar.r 4 I/ By J:& C v r� n��w0 TATEOA I IWC __Ardath X. Solsrud - its Presid 7C OUNTY OF ss. 0 The foregoing instrument was acknowledged before me this '1 day of Decembe r Ardahh R. Rnla� d 19 der the laws of Wisconsin � ` Np'1'AR LSTAWOILU .(OROTHERTRLa Oa RAMP THIS rNSMUMM'r WAS DRAFM BYNAME AND ADDR21s), Gregory A. Solsrud- Attorney 529 South Seventh St. Ste. 421 Minneapolis MN 55415 612 - 338 -3706 .- on behalf of the atQNANRR 21 TAIONO A O ra sru.m, e. m.r t 7 �h j w /OO ►mp.rryd .ereWl.rW Wb. amm prdud...ms ud adsmn of On ): Century Court II Limited Partnership Box 367 Augusta, WI 54722 -0367 r 1 LJ Po— ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP • DAVID B. ARNOLD' STEVEN A. ANDERSON G. BARRY ANDERSON LAURA K. FRETLAND PAUL D. DOVE' JANE VAN VALKENBURG RICHARD G. McGEE CATHRYN D. REHER WALTER P. MICHELS, III JAMES UTLEY ' ALSO ADMITTED IN TEXAS AND NEW YORK Ms. Marilyn Swanson Hutchinson City Center 111 Hassan Street SE Hutchinson, Mn. 55350 Re: ABBYCOWutchinson Area Health Care Lease Our File No. 3750 -88008 Dear Marilyn: ATTORNEYS AT LAW 101 PARK PLACE HUTCHINSON, MINNESOTA 55350-2563 (320) 567 -7575 FAX (320) 567 -4096 RESIDENT ATTORNEY G- BARRY ANDERSON April 8, 1998 APR Q 1998 CIT`-. JF HUTCHASON OF COUNSEL ARTHUR L. DOTEN 5661 CEDAR LAKE ROAD MINNEAPOLIS. MINNESOTA 55416 (612) 545 -9000 FAX (612) 545 -1793 501 SOUTH FOURTH STREET PRINCETON. MINNESOTA 55371 (C 1 2) 369-2 21 4 FAX (61 2) 369-5506 I am enclosing herewith a Lease which should be placed on the Council Consent Agenda for the April 14 meeting. This Lease allows the Hospital to rent certain property in the Anderson Interiors Building for the Hospital Hospice program, its ConnectCare program and other hospital functions. By way of background, • much of the cost of this Lease will be shared with the Glencoe Area Health Center or subleasing some of the space to other tenants. If you have any questions regarding the agreement, please do not hesitate to contact Phil Graves directly. L Thank you. Best regards. Very truly (�Bar7y Anderson GBA:jm cc: Phil Graves 'CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION THIS LEASE, made as of the 15th day of February, 1998, by and between Hutchinson Area Health Care, Tnc. (HAHC), a Minnesota corporation with its principal place of business located at 1095 Hwy. 15 South, Hutchinson, MN 55350, and ABBYCO, a Minnesota partnership with its principal place of business located at 119 Main Street South, Hutchinson, MN 55350. W 1 T N E S S E T H: WHEREAS, ABBYCO is the owner of the building and associated real estate described in Exhibit A attached hereto and incorporated herein by reference (the "Premises "); and WHEREAS, ABBYCO desires to lease the Premises to HAHC, and HAHC chairs& to lease the Premises from ABBYCO, pursuant to the terms of this Lease; NOW, THEREFORE, in consideration of the premises and agreements contained herein, as well as other good and valuable consideration, the receipt and sufficiency of which is hereby expressly acknowledged, intending to be legally bound hereby, the • parties hereto agree as follows: 1. Demising Clause ABBYCO hereby leases to HAHC, and HAHC hereby leases from ABBYCO, the Premises, subject to the terms and conditions set forth herein. 2. initial Term he initial term of this Lease shall commence on -9p 998, and shall be fo a term of five (5) years, endzng` t m ight 0 3 (the "Term "). 3. Extended Term HAHC shall have he option of extending the term of this Lease for an additional two terms of 5 years each provided, however, that HAHC is not in default at the time each option is exercised. HAHC shall notify ABBYCO in writing of its intent to exercise each option at least 90 days prior to the expiration of the applicable term of the Lease. If HAHC indicates its intent to exercise the above option, the parties shall have 30 days to arrive at a base rent for the extended term. If a base rent is not determined within 30 days of the date of notice of HAHC exercising its option, ABBYCO will have the option of voiding the extended term at its sole discretion. 4. Base Rent HAHC shall pay to ABBYCO at the address set forth above, or such other address as ABBYCO may from time to time designate, base rent of $1000 per month for the term of this • 154B168B.126/122096/836 -1- � C aPR -03 -9e 16:03 FROM:RRNOL.D ANDERSON DOVE 612 -389 -5506 TO:320 5B7 40% PRGE:03 • lease. HAHC may prepay rent payments not yet due hereunder at any time. Rent may be prorated for partial months of occupancy. • • 5. Use by HAHC The Premises shall be used by HAHC as office and warehouse storage space and other related purposes. 6. Taxes. HAHC shall be solely responsible for and shall pay when due as additional rent all general real estate taxes assessed against the land constituting the Premises and the improvements located on the Premises, and shall further pay as additional rent all charges and special assessments for utilities and public works applicable to the Premises. HAHC agrees to pay all taxes and license fees which may be assessed against HAHC's property located on the Premises or which may arise as a result of HAHC's operation of its business upon and within the Premises. In any event, HAHC's obligation to pay taxes and assessments shall expire upon the termination of the Lease. As to any special assessments imposed by the City of Hutchinson pursuant to Chapter 429 of Minnesota Statutes or other applicable law, HAHC shall have such options as are permitted under the law to either pay the assessment in one lump sum or to Pay such assessment over such periods of time as are permitted by the City. HAHC shall pay each installment of the assessment when due in its entirety. In no event shall HAHC be obligated to pay any installments or special assessments if its obligations under this Lease have terminated. 7. Utilities HAHC shall pay when due and as additional rent all utilities including, but not limited to, heat, gas, power, water, sewer, and telephone service within the Premises. 8. Repairs and Maintenance HAHC shall, as additional rent and at its own expense, be responsible for all non- structural repairs, replacements, and maintenance on or about the Demised Premises, and shall keep the sidewalks and driveways located on and adjacent to the Demised Premises reasonably free of ice and snow. HAHC shall keep the Demised premises free of rubbish, debris and Other garbage, and shall arrange and be solely responsible for the removal of all garbage from the Demised Premises. ABBYCO shall be responsible for all structural repairs, replacements, and maintenance of the Demised Premises, including repairs, replacements, and maintenance of the foundation, slab, structural walls, plumbing, heating, ventilating, and air conditioning systems, and roof, if the cost of such repairs, replacement, or maintenance shall exceed five hundred and No /100ths Dollars ($500.00) per occurrence for related instances individually or in the aggregate (in the reasonable estimation of ABBYCO)i provided, however, that notwithstanding anything contained herein to the contrary, ABBYCO shall not be obligated to perform any maintenance or make any 154B1688.126/122096/836 -2- 0 repairs or replacements made necessary by the fault or negligence of HAHC, its employees, agents or invitees. Non - structural items shall be defined to include, but not be limited to, routine maintenance and repair of the sidewalks, driveways and parking lot for matters not arising as the result of defect in the design or construction thereof. Notwithstanding the foregoing, ABBYCO shall have the right, but not the obligation, to perform any such replacements, maintenance, and repairs if HAHC fails to do so within a reasonable period of time after the same becomes necessary, and HAHC shall reimburse ABBYCO, as additional rent, for its costs of so performing. 9. Insurance During the term of this Lease, HAHC shall procure and maintain, at its expense, fire and casualty insurance with an extended coverage endorsement covering the Premises in an amount equal to one hundred percent (100 %) of the insurable value of the Premises. In addition, HAHC shall, at its own expense and as additional rent, procure, carry, maintain, and pay the premiums for public liability insurance insuring both ABBYCO and HAHC against injury to property, person, or loss of life arising out of the use and occupation of the Premises, with a limit of not less than the maximum municipal tort liability under Chapter 466 of Minnesota Statutes. HAHC shall further carry and pay the premiums for workers' compensation insurance covering all of HAHC's employees. All such policies referenced herein shall name • ABBYCO as an additional named insured and loss payee, be with companies licensed to do business in the State of Minnesota, and provide for not less than thirty (30) days prior written notice of cancellation to ABBYCO. HAHC shall, upon the request of ABBYCO, provide ABBYCO with certificates evidencing all insurance policies required herein. ABBYCO and HAHC agree that ABBYCO is not responsible and HAHC is solely responsible for all contents coverage policies covering items kept by HAHC on the Premises. 10. Machinery Equipment and Fixtures of HAHC HAHC may install at its expense structures, machinery, equipment, or trade fixtures upon the Premises. At the termination or expiration of this Lease, any structures, machinery, equipment, or trade fixtures so installed shall, at HAHC's election, (a) be removed, said removal to be at the expense of HAHC, and the Premises shall be restored to its original condition, reasonable wear and tear excepted, or (b) immediately become the property of ABBYCO and shall remain with the Premises. HAHC agrees at the termination or expiration of this Lease to surrender the Premises in as good order and condition as the same are in at the commencement of the Lease, reasonable wear and tear only excepted. 11. Mechanic's Liens HAHC shall promptly pay for any work done in or about the Premises contracted by it and will not permit or suffer any mechanic's liens to attach to the Premises which are a result thereof, and shall promptly cause any claim 0 15481688.126/122096 /836 -3- OR-03-9e 16:04 FROM: ARNOLD ANDERSON DOVE 612- 389 -5506 TO:320 587 4096 PAGE:05 • for any such lien to be released or shall secure ABBYCO to its satisfaction in the event HAHC desires to contest any such claim. 12. Access to Premises HAHC shall allow ABBYCO and /or its agents or employees access to the Premises at all reasonable times to inspect, maintain, or repair the Premises and for any other reasonable purpose. During the last twelve (12) months of the term of this Lease, ABBYCO may exhibit the Premises to prospective tenants provided such showing does not unreasonably interfere with HRHC's use of the Premises. 13. Bankruptcy In the event of the filing of a petition for voluntary or involuntary bankruptcy on the part of HAHC, the filing of a petition for the appointment of a receiver for RMC, or a voluntary assignment for the benefit of the creditors of HAHC, and such condition is not remedied within sixty (60) days, or if this Lease shall by operation of law devolve upon or pass to any person or corporation other than HAHC, then and in each of said events this Lease shall, at the sole option of ABBYCO, he subject to cancellation forthwith. 14. signs HAHC shall have the right to install and display advertising signs on the Premises (excepting therefrom "for sale," "for rent," or similar such signs), provided such signs are reasonable in their content and size, and comply with all applicable laws, statutes, regulations, or ordinances, and shall remove the same upon termination of this Lease, provided that upon removing the same, HAHC shall restore the Premises to the condition they were in prior to the installation of such signs. Retail "for sale" or "for rent" signs are not prohibited. 15. Condemnation If the Premises or any part thereof shall be taken or condemned for public purposes by public authorities, HAHC shall have no claim against ABSYCO and shall not have any claim or right to any portion of the amount that may be awarded or paid to ABSYCO as a result of any such condemnation; provided, however, that in the event the Premises or any part thereof'shall be taken or condemned for public purposes resulting in a material interference with HAHC's use of the Premises, then either ABBYCO or HAHC shall have the option of terminating this Lease upon giving to the other party written notice of such election within thirty (30) days after the condemnation judgment is entered, and the Term of this Lease, or any extension thereof, shall be considered terminated as of the date judgment is satisfied by payment of the award. 16. Destruction of Premises Should the Premises be totally destroyed by fire, however caused, or other casualty, or should the Premises be damaged by fire, however caused, or other casualty, so as to require the expenditures to rebuild, repair, . or replace the damaged portion of the Premises of a sum exceeding 15481688.126/122096 /8 -4- 2PR -03 -99 16:05 fifty percent (50's) of the fair markat value of the buildings and improvements located thereon immediately prior to the damage, HAHC or ABBYCO shall have the option to terminate this Lease by written notice to the other within sixty (60) days after such damage or destruction. if either party does not exercise the option to terminate this Lease, as provided herein, or if no such option exists because the preceding provisions of this Paragraph 16 do not apply, the Premises shall be restored as best as practically possible to their condition just prior to such loss by and at the expense of ABBYCO using any and all insurance proceeds available therefor without unnecessary delay. From the date of such fire or casualty, until said Premises are fully restored to their former condition, HAHC shall pay only such portion of the rent accruing from time to time as the area of that portion of the Premises not made untenantable by reason of such fire or casualty shall bear to the value of the entire Premises. 17. Condition of Premises C ComT31iance. HAHC further agrees, at its expense, to keep the Premises in a good state of repair, neat and sanitary in condition, and to conform to all applicable municipal ordinances and orders, and all federal and state laws, statutes, regulations, and rulaa regarding sanitation, fire, and matters of like nature, governing the maintenance and use of said Premises. No noxious or offensive trade or activity shall be carried on or upon the Premises at any time. 18. Alterations by HAHC HAHC shall not make any alterations to the Premises except as otherwise provided in this Lease, without the prior written consent of ABBYCO; provided, however, that HAHC shall have the right, which right is expressly granted herein, to remodel the interior of the Premises, for the sole purpose of facilitating HAHC's use of the Premises as office space. In the event of any such alterations or construction, at the termination of this Lease, upon the election of HA.HC, the Premises shall, at the sole expense of HAHC, be restored to its original condition, reasonable wear and tear excepted, or any such alterations and construction shall become the property of ABBYCO. 19. Indemnification HAHC shall and hereby agrees to indemnify, defend, and hold ABBYCO, his personal representatives, heirs, successors, assigns, employees, and agents (collectively, the "Lessor Indemnified Parties ") harmless from and againot and with respect to any "Damages to Lessor Indemnified Parties." The term "Damages to Lessor Indemnified Parties" as used herein shall include any claim, demand, action, cause of action, loss, cost, expense, liability, injury, administrative order, consent agreement and order, penalty, interest, or damage, including, without limitation, reasonable attorneys' fees, and all costs and • 15481688.126/122096 /836 -5- aPR -03 - 98 16:05 • • 0 FRCM:RRNOLD RNDERSON DOVE 612 - 389 -5506 TO:320 587 4056 PRGE:07 expenses of all actions, suits, proceedings, demands, assessments, claims, and judgments resulting from, occurring in connection with, or arising out of the negligent or intentional acts or omissions of HAHC, its directors, shareholders, officers, employees, agents, and invitees in connection with this Lease or any transaction contemplated heroin, specifically including but in no way limited to those of an environmental nature. However, HAHC shall have no obligation to pay attorney fees of ABBYCO unless HAHC refuses a tender of defense or otherwise refuses a request to indemnify as required by this paragraph. 20. Subordination HAHC's right, title, and interest in, to, and under this Lease are, and shall at the option of any mortgagee of AHBYCO's be, subordinate to the lien of any mortgage or mortgages now or hereafter placed upon the land and /or buildings of which the Premises are a part, and to all advances hereafter made from time to time upon the security thereof; provided, however, that as long as HAHC is not in default under the terms of this Lease, it may continue in possession of the Premises under the covenants, terms, and conditions of this Lease. upon notice to HAHC, HAHC shall execute any instruments reasonably required to evidence such subordination and shall execute any attornment and /or estoppel certificates reasonably requested by ABBYCO. 21. A6signment and Subletting HAHC may not assign or sublet this Lease, in whole or in part, except as further set out in this lease, without the prior written consent of ABBYCO, which consent may be withheld for any or no reason; provided, however, (i) in the event of an assignment, contemporaneously with the granting of ABBYCO's aforesaid consent, HAHC shall cause the assignee or sublessee to expressly assume in writing and agree to perform all of the terms, covenants, duties, and obligations of HAHC herein, and such assignee or sublessee shall be jointly and severally liable thereafter along with HAHC to perform all of the terms, covenants, duties, and obligations of HAHC, (ii) no usage of the Premises different for the usage herein provided to be made by HAHC shall be permitted, and (iii) all other terms and provisions of this Lease shall continue to apply after any such assignment or sublease. HAHC does not need prior approval to sublet or assign to that entity known as ConnectCare. However, if the leased premises is assigned or otherwise sublet to ConnectCare, ConnectCare shall be bound by the provisions of this paragraph and this lease. 22. Default In the event of (i) default in the prompt and full payment of any base rent due under this Lease within fifteen (15) days of the date when due, or (ii) in the event of default in the prompt and full performance of any provision of this Lease, and such default shall continue for thirty (30) days after written notice to cure such default, or if such default cannot be 1S421688.126/122096/836 -6- ?4-03 -98 16:06 E cured within such thirty (30) day period, then unless within such thirty (30) day period HAHC shall diligently commence action to cure such default, ABBYCO shall, without further notice, at its option, have the right to reenter said Premises, to remove HAHC and all persons holding under it therefrom and to terminate this Lease and repossess itself of the Premises. Notwithstanding the foregoing, such repossession shall not constitute a waiver by ABBYCO of any other rights which it might have to enforce collection of rents for the balance of the term, to recover damages from HAHC for default in payment of rents, or any other rights or remedies ABBYCO may have in law or equity• 23. Notige. Any notice required or permitted under this Lease shall be deemed sufficiently given or served if delivered personally, or if sent by certified mail, return receipt requested, postage paid, to the parties at the addresses set forth above, and either party may by like notice at any time and from time to time designate a different addrces to which notices shall be sent. Noticeo given in accordance with these provisions shall be deemed received when mailed. 24. Expenses Each party shall pay upon demand all the other's costa, charges and expenses, including the feed of counsel, agents and others incurred in enforcing the requested party's obligations hereunder or incurred by the requesting party in any litigation in which the requesting party, without requesting party's fault, becomes involved or concerned by reason of the existence of this Lease or the relationship hereunder of ABBYCO and HAHC. 25. Waiver. No waiver of any default by HAHC hereunder shall be implied from any omission by ABBYCO to take any action on account of such default if such default persists or is repeated and no express waiver shall effect any default other than the default specified in the express waiver, and then only for the time and the extent therein stated. one or more waivers of any covenant, term, or condition of this Lease by ABBYCO shall not be construed as a waiver of a subsequent breach of the same covenant, term, or condition. 26. Binding Effect Each provision hereof shall extend to and shall, as the case might require, bind and inure to the benefit of HAHC and ABBYCO and their respective heirs, personal representatives, successors, and assigns. 27, Quiet EnJOYTnent ABBYCO warrants and certifies that it has legal title to the Premises and shall defend and guarantee the same. So long as HAHC shall fully and punctually pay all the rents and other amounts provided to be paid hereunder by HAHC, and HAHC shall fully and punctually perform all of the other terms, covenants, obligations, and responsibilities hereunder, 1s4S1688.126/122096/836 -7- i p R -03-99 16:07 FROM:ARNOLD ANDERSON DOVE 612-389-5506 TO: �tl 127 4Y55 CL: b5 0 is HAHC shall peaceably and quietly have, hold, and enjoy the Premises. 28. Severability In the event that any provision of this Lease shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 29. Counterpart This Lease may be executed in several counterparts all of which, when taken together, shall constitute one Lease. 30. Amendment This Lease may not be amended, changed, modified, or altered without in each instance the prior written consent of both ABBYCO and HAHC. 31. Governing Law This Lease with the intention that the lawn of govern its construction. 32. Memorandum of Lease This except that ABBYCO and HAHC agree to documents necessary to evidence this limited to, a Memorandum of Lease. is prepared and entered into :he State of Minnesota shall Lease shall not be recorded, execute any and all Lease, including, but not IN WITNESS WHEREOF, the parties hereto have caused this Lease to he executed by their respective authoriz ®d representatives, as of the date first written above. ABBYCO HUTCHINSON AREA H • TH CARE 154B1688.126/122096/836 -8- F - 1 U EXHIBIT A The Premises shall include the buildings and improvements and real estate beginning at a point 44 feet south of the Northwest corner of Lot Eight (8) in Block Thirteen (13) in the Townsite of Hutchinson, South Half, thence running North 30 feet on the East line of Main Street, thence East 132 feet to the alley, thence South 30 feet, thence west 132 feet to the place of beginning: being the South 8 feet of the North 22 feet of said Lot 8, also the center 22 feet of said Lot B in Block 13 in the Townsite of Hutchinson, South Half. U 154131688.126/122096 /836 0 M E M O R A N D U M i -• ., - .• � -., a -� Attached is a listing of the delinquent water and sewer accounts • for the month of March. Recommend service be discontinued on Monday, April 14, 1998, at Noon. • 9- 141 ACCT BNAME BADDR BCITY SITEAD AMOUN OWNER OADDR OWNER ESS DRESS TDUE ESS CITY • 3- 015 - Carmen 421 1st Hutchins 421lst 106.33 CC: 703 0421- Brygger Ave SE on MN Ave SE Roger Shady Hutchins 0808 55350 Dummer Ridge Rd on MN 55350 3 -030- Jack 646 2 nd Hutchins 646 2nd 82.18 CC: Rt 1 0646 - Krippner Ave SE on MN Ave SE Vicky Box 218 Brownto 0802 55350 Klabunde n MN 55312 3 -075- Harlan 107 5th Hutchins 107 5th 37.83 0107- Schulte Ave NE on MN Ave NE 0603 55350 'fir C m \6e S 3 -210- Tammy 631 Hutchins 631 112.82 CC: 35 0631- Barnes Adams St on MN Adams St Remax Main St Hutchins 0704 SE 55350 SE N on MN 55350 3 -060- Kevin 105 4th Hutchins 105 4th 95.82 CC: 904 0105- Nordberg Ave NW on MN Ave NW Marcella Merrill Hutchins 0503 55350 Anderson on MN 55350 3 -210- Shellie 105 Hutchins 105 131.78 CC: • 0105 - Amelsber Adams on MN Adams St Hutch 1130 Hutchins 0408 g ST SE 55350 SE Iron & Arch Ave on MN Metal SE 55350 3 -210- David 595 Hutchins 595 117.08 CC: 35 0595- Hickle Adams St on MN Adams St Janet Main St Hutchins 0103 SE 55350 SE Valen N on MN 55350 3 -227- Bonnie 711 Hutchins 711 46.03 0711- Dahl Arizona on MN Arizona 0101 St NW 555350 St NW 3 -275- James 605 Hutchins 605 18.28 0605- Goebel Cahform on MN Califomi 0103 a St NW 55350 a St NW 14-1 l_ Q 3 3 -285- Deb 594 Hutchins 594 70.56 e m.geS 0594- Bondhus Carlisle on MN Carlisle 0202 St NE 55350 St NE 3- 380 - Christine 446 Erie Hutchins 446 Erie 125.20 0446- Fox on MN 0603 55350 3 -505- Diane 251 Hwy Hutchins 251 Hwy 46.65 0251- Berry 7E on MN 7E 0002 55350 • 3 -275- Jason 510 Hutchins 510 367.96 ACCT BNAME BADDR BCrrY SrrEAD AMOUN OWNER OADDR OWNER • ESS DRESS TDUE ESS CITY 0510 - Knacke Califomi on MN Califomi 0506 a St NW 55350 a St NW 3 -275- Kelly 752 Hutchins 752 36.38 ?jom\5eS 4-\S 0752- Walker Califomi on MN Califortu 0203 aStNW 55350 aStNW 3- 330 - Rachael 219 Hutchins 219 40.79 CC: Carl 0219- Vanderha College on MN College Beatrez 18967 Hutchins 0208 gen Ave NE 55350 Ave NE Nickel on MN Ave 55350 3 -375- Vernon 744 Elm Hutchins 744 Elm 121.74 0744 Reese St NE on MN St NE 0201 55350 3-435- Jeff 920 Golf Hutchins 920 Golf 87.68 0920- Borkenha Course on MN Course 0602 gen RdNW 55350 Rd NW 3 -530- Vince 712 Hutchins 712 538.05 CC: 656 0712- Jahner Hilltop on MN Hilltop James Juul Rd Hutchins 0201 Dr NE 55350 Dr NE Schlagel on MN 55350 3 -680- Todd 735 Main Hutchins 735 Main 92.68 CC: 825 0735- Meyer St N DN on MN St N DN Dave 2nd Ave Hutchins 1101 55350 Schmpp SW on MN • 55350 3 -735- Advance PO BOx Northom 15 27.75 0015- d Metal 151 e, MN Monroe 0905 Ref 56661 St SE 3 -745- Bradley 26 North Hutchins 26 North 57.07 0026- Rasmuss High Dr on MN High Dr 0402 en 55350 3 -745- Dave 126 Hutchins 126 71.23 PROMIS 0126- Hunstad North on MN North ES 0306 High Dr 55350 High Dr 4/15/98 3 -795- Tom 105 Pauls Hutchins 105 Pawls 133.14 0105 - Carrigan Rd on MN Rd 0701 55350 3 -680- Shannon 725 Main Hutchins 725 Main 93.44 0725- Shoen St N on MN St N 0504 55350 3- 680 - Rick's 1201 Hutchins 1201 188.42 1201 - Castaway Main St on MN Main St 0603 N 55350 N 3 -735- Kevin 544 Hutchins 544 46.05 0544- Burich Monroe on MN Monroe 0901 St SE 55350 St SE 3 -745- Mary 116 Hutchins 116 112.48 CC: 0116- Givens North on MN North John 7544 Richfield • 0504 High Dr 55350 High Dr McNabs Vincent MN Dr NE 55423 ACCT BNAME BADDR BCITY SITEAD AMOUN OWNER OADDR OWNER ESS DRESS TDUE ESS CITY • 3 -800- Rodney 575 Hutchins 575 157.42 0575- Markgraf Peterson on MN Peterson 55350 0102 Cir NE 55350 CIr NE 3- 823 - Ridgedal 650 Howard 715 207.02 0715- e Sq Apts Shoreline Lake Ridge Syverson 0501 on MN Dr #306 MN Ave NE 0102 55349 St SE 55350 3 -823- Jeff 650 Howard 725 284.34 0725- Gaften Shoreline Lake Mn Ridge 157.48 0301 Dr #306 55349 Ave NE Peterson 1-480- Tom 830 Hutchins 830 97.57 0830- Moses Hassan on MN Hassan 0304 St Se 55350 St SE 1-480- Deborah 840 Hutchins 840 45.20 0840- Syverson Hassan on MN Hassan 0102 St SE 55350 St SE 1 -550- Barbara 723 Ivy Hutchins 723Ivy 157.48 0723- Peterson LN on MN LN 0806 55350 1 -550- Ron 7361vy Hutchins 736Ivy 111.66 0736- Wibstad LN on MN IN • 0302 55350 1 -570- Mabel 234 Hutchins 234 90.56 0234- Baseman Jefferson on MN Jefferson 0601 St SE 55350 St SE 1 -570- Stan 525 4th Hutchins 525 4th 80.94 0345- Knci Ave SW on MN Ave SW 0202 55350 1 -065- Bruce 460 Htuchins 135 4th 34.41 CC: PO 0135- Daniels Californi on MN Ave SE Citizen box 339 Hutchins 0803 a St #43 55350 Bank on MN 55350 3 -210- Reuben 700 Hwy Hutchins 607 259.53 CC: 35 607- Garcia 7E on MN Adams St Remax Main St Hutchins 0708 55350 SE N on MN 55350 • Report Listing 14- APR -1998 (13:48 -------------------------------------------------- -- -- ------- -- ---- --- -- -- --- --- 1- 270- 0706 -0803 1- 395 - 0565 -0806 D JAHN JUDY KOPESKY 7 BROWN ST SW BOX 606 HUTCHINSON MN 55350- HUTCHINSON MN 55350- 706 BROWN ST SW 565 FRANKLIN ST SW 97.47 107.34 1- 395 - 0587 -0201 DAVID JENSEN 587 FRANKLIN ST HUTCHINSON MN 5; 587 FRANKLIN ST 107.76 1- 395 - 0606 -0902 NOELLE LAABS SW 606 FRANKLIN ST SW 5350- HUTCHINSON MN 55350 - SW 606 FRANKLIN ST SW 125.14 1- 395 - 0705 -0903 1- 420 - 0125 -0002 BRIAN BLEEKE DAN SALAS 940 CARMEL CT 125 GLEN ST SW SHOREVIEW MN 55126- HUTCHINSON MN 55350- 705 FRANKLIN ST SW 125 GLEN ST SW 44.12 97.87 1- 455- 0546 -0902 1 -455- 0725 -0202 LORI REYNOLDS BEV KOSEK 546 GROVE ST SW 725 GROVE ST SW HUTCHINSON MN 55350- HUTCHINSON MN 55350- GROVE ST SW 725 GROVE ST SW 64 85.29 1- 685 - 0556 -0802 JUDY KOPESKY BOX 606 HUTCHINSON MN 55350- 556 MAIN ST S 113.64 • Report Listing 14- APR -1998 (13:40 2- 070 - 0524 -0804 2- 070 - 0706 -0804 TIM EGGERSGLUESS JIM DYKSTRA • 524 4TH AVE SW 706 4TH AVE SW HUTCHINSON MN 55350- HUTCHINSON MN 55350- 524 4TH AVE SW 706 4TH AVE SW 298.84 73.63 2- 070 - 0728 -0205 2- 310 - 0934 -0202 MARK CARRIGAN WM HERDINA 728 4TH AVE SW 934 CHURCH ST SW HUTCHINSON MN 55350- HUTCHINSON MN 55350- 728 4TH AVE SW 934 CHURCH ST SW 70.94 168.90 2- 345- 0805 -0705 2- 350 - 0505 -0201 DAVE GRAF RICHARD MATTSON 805 CRAIG AVE SW 505 DALE ST SW HUTCHINSON MN 55350- HUTCHINSON MN 55350- 805 CRAIG AVE SW 505 DALE ST SW 86.48 '?'am'ses 80.76 2 -465- 0626 -0801 2- 555 - 0515 -0301 CHRIS JOHNSON GARY KASTEN 626 HARMONY LN SW 515 JACKSON ST SW HUTCHINSON MN 55350- HUTCHINSON MN 55350- 626 HARMONY LN SW 515 JACKSON ST SW • 92.25 115.25 2 -555- 0530 -0401 2- 670 - 0400 -0109 ANGELA BIEHLER JOHN SANDAHL 530 JACKSON ST SW 400 LYNN RD SW HUTCHINSON MN 55350- HUTCHINSON MN 55350- 530 JACKSON ST SW 400 LYNN RD SW 138.24 118.71 2- 670 - 0585 -0804 ROBERT STONE 585 LYNN RD SW HUTCHINSON MN 55350- 585 LYNN RD SW 115.25 • 0 n U ARNOLD, ANDERSON & DOVE PROFE551ONAL LIMITED LIABILITY PARTNERSHIP ATTORNEYS AT LAW DAVID B. ARNOLD' STEVEN A. ANDERSON G. BARRY ANDERSON" LAURA K. FRETLAND PAUL D. DOVE "" JANE VAN VALKENBURG RICHARD G. McGEE CATHRYN D. REHER WALTER P. MICHELS. III JAMES UTLEY 101 PARK PLACE HUTCHINSON, MINNESOTA 55350 -2563 (3 20) 5877575 FAX 1320) 5674096 RESIDENT ATTORNEY G. BARRY ANDERSON IAIRO ADMITTED IN TEXAS AND NEW YORK Ms. Marilyn Swanson Hutchinson City Center 111 Hassan Street SE Hutchinson, Mn. 55350 Re: City Council Meeting Our File No. 3188 -87001 Dear Marilyn: April 14, 1998 APR 14 1498 CITY OF HUTCHINSON OF COUNSEL ARTHUR L. DOTEN Baal CEDAR LAKE ROAD MINNEAPOLIS. MINNESOTA 55416 (612) 545 -9000 FAX (612) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (451 2) 350 - 2214 FAX (01 2) 389 - 5500 I am enclosing herewith a revised Tobacco Ordinance that contains two changes f rom the draft previously approved by the City Council. I have changed the period of time for the license so that it conforms with most of the rest of the City's (! licensing provisions; ie., t he license period will run from January 1 to December 31. Second I included language in Subd 8(C) that allows tobacco sales within an enclosed facility which must be under continuous supervision by an employee. der the a e of 18 years of age is prohibited and a fully functioning door must also be a portion of the premises. This has the effect of allowing the 'smoke shops — ci rty. er or not t e Counc wrs es two o iFrs is, of course, a matter of public policy and is something that can be discussed at this evening's City Council meeting. I am also requesting that we consider as a post - agenda item the requ from Sam and Shari Colvin for reimbumement for certain expenses relating to water damage occurring on June 29 1997. T he Council may or may not wish to act on this request this evening but I am providing the background information for your consideration. In discussing the matter with the insurance carrier, the claims representative handling this claim indicated that the League Trust was willing to make a payment of approximately one -half of the amount in dispute. Mr. and Mrs. Colvin have requested that the Council consider reimbursement of the full amount of $550.82. There is some history here of difficulties with water in the area although the problems experienced by Mr. and Mrs. Colvin, while real, are related to developmental issues and not to any errors on the part of the City as far as I can tell. Nonetheless, their situation does seem unique. I did indicate in visiting with Mr. and Mrs. Colvin that they are certainly entitled to have the matter placed before the City Council and they are requesting that this claim be paid. I would recommend payment of this claim as long as Mr. and Mrs. Colvin are willing to enter into a formal Release of All Claims which will recite that the City is not responsible for payment of damages and that this claim along with all prior Claims are now considered satisfied and paid in full. The benefit to the City would be that with respect to these individuals the issue would be resolved. 'CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION 7 Ms. Marilyn Swanson April 14, 1998 page 2 In any event, I did indicate to Mr. and Mrs. Colvin that I would bring the matter at their request back to the Council and I have now done so. If you have any questions or need additional information, please feel free to either contact myself or the city engineer. GBA:jm enc. E E • 04/10/98 11:19 3M HUTCH TRPE BLDG. 31 001 • rex Note 7671 0SW Y/Wr 1 pages"' 3 s Fo C olvt - f ( Z - z. 735 Shady Ridge Road F�. Hutchinson, MN 55350 September 2, 1997 Mr. Ken Merrill Finance Director - City of Hutchinson City Center Hutchinson, Mn 55350 Dear Mr. Merrill, Per the attached letter to the Hutchinson City Council (7/15/97), we request reimbursement from the City of Hutchinson for damages incurred by water entering our home on the morning of June 29, 1997. We have expended 38 hours of personal time cleaning after the water entry to our home. Additionally, we incurred a bill of $265.82 with ServiceMaster for professional cleaning services due to the same event. We request reimbursement for our time at a rate of $7.50 per hour, and a total reimbursement for this event of $550.82. 38 hours x $7.50 /hour $285.00 ServiceMaster bill $65.82 i Total $550.82 If necessary, please forward this request to the appropriate persons for handling such claims. We request a response by September 16, 1997. Thank you in advance for your assistance in handling this problem situation. Sincerely, Sam & Shari Colvin attachments cc: Marlin Torgerson, Mayor - City of Hutchinson John Rodeberg, Engineer - City of Hutchinson r� �J 9 -/6- To: Members of the Hutchinson City Council From: Sam & Shari Colvin Date: July 18. 1997 Problem: Development of "North Oak Ridge and associated storm sewer Installations have resulted In water entering our house at 735 Shady Ridge Rd _ ° Storm water from 7th Ave on the East side of Shady Ridge Rd (south of the house); frof:l the top of the circle on the Fast side of Shady Ridge Rd (north of the house), from the housesand yards directly to the east of our property, and from the overnow of the catch basin of the storm sewer lines serving the North School Road area all drain into our yard and must flow through an 19" by 250 it long culvert that goes from our yard, under Shady Ridge Rd, and on down to Campbell Lake. A culvert of that diameter and length Is unable to handle that much water from that many sources, and consequently we have had water come close to the house numerous times and actually enter the house 4 different times (May e, 1993, June 16, 1993, and twice on June 29, 1997). Communication with the City to express concerns and seek possible solution(s): • Visit to Mr. Rodeberg's office prior to March 19,1991 Planning Commission Meeting • Attended Planning Commission Meeting on March 19. 1991 • Letter to Mr. Rodeberg on June 26, 1992 • visit to Mr. Rodeberg's office on May 7, 1993 • Letter to Mr. Rodeb org on May 22, 1893 • 1Asit to Mr. Rodeberg's office an June 10, 1993 • Letter to Mr. Rodeberg (cc: Gary Pkriz, City Administrator) on June 18, 1993 • Loner to Mr. Ken Merrill, Finance Director (cc! John Rodeberg & Gary Plotz) on June 18, 1993 Loner to Allied Adjusters (cc: Jonn Hodeoerg, Gary Plotz & Ken Merrill) on September 1, 1993 ° Letter to Berkley Insurance Services, inc. (cc: John Rodeberg, Gary PI01:2 & Ken Merrill) on December 4, 1993 ° Additional undocumented visits to Mr. Rodebero's office in 1993 and 1994 • Letter to Mr. Rodeberg on September 24, 1995 ° Short discussion with a city maintenance worker (Dave) on the morning of June 26, 1997 to ask the status of reconstruction of Shady Ridge 'Circle" • Phone call to City Engineering office the morning of June 26, 1997 to make an appointment to meet with Mr. Rodeberg - Informed that Mr. Rodeberg would be on vacation until July 14, 1997 CommunlcatlorJObservatlon Initiated by the City: City Maintenance workers observed water entering our home on June 16, 1993 and spoke with us on the morning of June 17, 1993 ° City truck observed driving by house at midnight and 3:00 am on June 29, 1997 AS water wee entering our home Sources of Frustration: • No written oorespondence from the city in reply to any of our letters, visits, questions or concerns • Only known correepondenoe to come from a city office was a loner dated June 20, 1993 sent to Thomas Hell of Allied Adjusters. Inc. In an attempt to absolve the city of Hutchinson of any responsibility for the storm water that entered our home (we received a copy of that letter from Mr. Heil) • Told'exper& would be boking at the situation & suggesting solutions - have not seen or heard from any - experts ° Told a beehive cover to alleviate culvert pressure would be placed on the culvert on the west We of Shady Ridge Rd - the cover was dropped off in Auguat of 1893 - never Installed - removed the Spring of 1984 • Told the Planning Commission would make decisions as to what would be done & who would bear the costs beginning In January of 1994 - have heard nothing concerning this issue • Informed we could lose insurance coverage (and be uninsurable in the future) a there are further claims of this type • Possible unseen structural damage with Increased potential Tor structural damage each time water enters the house through the patio door, the sump hole and/or the south facing foundational wall • Loss of personal items that cannot be replaced each lime water has entered the house • In excess of 40 hours of cleanup by family members each time water enters the house ° toss of sleep during storms having the potential to blood our yard and enter our house ° Concern that continued and additional development/conatruotion on and in the vicinity of North School Road will increase problems Action Sought: " The City of Hutchinson's engineering department has had more than six years to study, assess and address the omo5aive storm water problem. We ask that the Cdty Courrull take action to alleviate Ine problem within the next 4 months `VM , %*Ahstlthe aftY9 for damages inOWed byWater aftle" awivin mthermomtng dl Juste 29, 1897 10 04/10/98 11:20 3M HUTCH TAPE BLDG. 31 003 SERVICEMASTER Invoice I P.O. BOX 128 • HUTCHIN90N, MN 653730 a (320) 587.3939 7/18/97 3963 I Sam & Shari Colvin 735 Shady Ridge Road Hutchinson, MN 55350 P.O. NUMBEH TERMS PROJr_CT a JNT I After Hours S4rviw Call 1 ExWWA and Smiti�a 1 R=W of TU% Pars 2 Drya I Cleanlog of Area Rug 2 -20 1 acering of Arts Rog 2 -2x4 t Clwreinb ofAror Rub 1 - 9x9 1 Climint of Arc* Rut I Ilx8 Salsa Tax 50.00 50.00 50.00 20.00 16.00 16.20 47.40 6.50% 10.00T 50.00T 50.00T 20.00T 16,OO 16.20T 47.40T 16.22 • .,—I* TOTAL $265.82 ,OPEN -HOLD COUNCIL REPORT 14- APR- 1998page 1 1990 TIDS FIRSTAR BANK OF MINNESOTA ------------------------------------------------- INTEREST PAYMENT $141,756.25 < *> $141,756.25* 0 8 IMPR. CONST OTTERSTATTER, DAVID M. SERVICE FEES -ARCH ST PROPERTY $40.00 < -> $40.00* CENTRAL GARAGE BRANDON TIRE CO MOUNT /DISMNT, PATCH $13.26 CARQUEST AUTO PARTS SHOP SUPPLIES $1,487.24 CHAMPION AUTO PARTS $11.99 CITY OF HUTCHINSON APRIL MEDICAL $432.09 COAST TO COAST HDWE $44.80 COUNTRYSIDE RV SALES MULTI- PURPOSE LEVELS $9.92 FORTIS BENEFITS APRIL LTD $20.36 G & K SERVICES TOWELS $78.12 HART'S AUTO SUPPLY FRONT PADS $42.70 HOLT MOTORS INC AXLE PART $29.73 HUTCHINSON WHOLESALE SHOP SUPPLIES $534.29 MACQUEEN EQUIP INC HOSE, HOSE GUIDE $246.66 MN MUTUAL LIFE APRIL LIFE $7.14 NO STATES SUPPLY INC BENCH VISE $456.62 PLOWMANS TAX ON INVOICE $707.58 RUNNING'S SUPPLY PLBG PARTS $4.86 SNAP ON TOOLS CORP SCREWDRIVER $49.53 US POSTAL SERVICE MARCH POSTAGE $14.08 VALLEY SALES OF HUTCHINSON PARTS $32.25 ZARNOTH BRUSH WORKS BROOM PARTS $1,367.09 < *> $5,590.31* GENERAL FUND AAGARD WEST APRIL SERVICE $852.95 AMERICINN MOTEL LODGING CHARGES - HARRIS $129.00 ARNOLD & MCDOWELL MARCH COMPENSATION $7,066.00 ASQC DUES RENEWAL $87.00 BAASEN, EUGENE REIMS- SAFETY BOOTS $59.99 BAUERLY BROS INC. SIDEWALK SAND $47.93 BENAGE, JODEE REFUND- SOCCER CANCELLED $15.00 BENNETT OFFICE SUP. COPIER READINGS $181.40 BIG BEAR POPET SYTLE HALE $11.69 • BOODRY, JEFF GAMES WORKED $120.00 BOOR, SUSAN REFUND- SOCCER CANCELLED $15.00 BRANDON TIRE CO TIRE TUBE, MOUNT /DISMNT $15.85 BRANDT GARMET LETTERING UNIFORMS $167.00 13RINKMAN STUDIO EKTACHROME $23.69 BRODD, JIM REIMB- LODGING, PER DIEM $661.44 BROWN, JANET MEAL EXPENSES $200.00 BUSINESSWARE SOLUTIONS SUPERSTACK II $2,109.78 CADD /ENGINEERING SUPPLY METRIC SCALE, PENS $101.34 CARLSON, GARY PER DIEM, LODGING $260.48 CASH WISE PHOTOS $41.45 CDI OFFICE PRODUCTS LTD PROJECTOR LAMP $341.45 CENTRAL GARAGE MARCH REPAIRS $6,672.44 CITY OF HUTCHINSON MARCH FUEL $32,484.44 COAST TO COAST UPS $545.77 CRARY, MICHAEL REFUND- SOCCER CANCELLED $15.00 CROW RIVER GLASS DOOR CLOSER $104.88 CROW RIVER PRESS INC BUSINESS CARDS $184.64 CROW RIVER VET CLINIC ANIMAL BOARDING $224.71 DAAK REFRIGERATION LABOR, PARTS- DISHWASHER REPAIR $118.16 DEPT NATURAL RESOURCES DNR FEES TO STATE $1,506.00 DOMINO'S PIZZA PIZZAS $64.00 DUENOW, RUSSELL REIMB- MILEAGE, LODGE, PER DIEM $402.98 ECOLAB PEST ELIM MARCH SERVICES $22.37 EMANS, BRAD REIMB- MILEAGE, PER DIEM $260.26 ERLANDSON, BEN REIMB- MEALS, MILEAGE $71.17 FAMILY REXALL DRUG PHOTOS $62.08 FEDERAL SIGNAL CORP ROTATING SIREN $11,864.69 FORCIER, GARY REIMB - MEALS, PER DIEM, PARK $194.65 FORTIS BENEFITS APRIL LTD $1,585.53 FOURNIER, JULIE REFUND -CLASS CANCELLED $15.00 G & K SERVICES UNIFORMS $624.57 GANDER, CURT & JOAN REFUND- SOCCER CANCELLED $15.00 GASSMAN, REBECCA REFUND- SOCCER CANCELLED $20.00 GEE ELECTRICAL INC MATERIALS, LABOR $411.25 GENERAL OFFICE PRODUCTS DICTAPHONE RENTAL $138.09 F_ 1 L J OPEN -HOLD COUNCIL REPORT 14- APR- 1998page 2 --------- ---- --- ------------------ GENERAL FUND GIFFERSON, TOM - -- --- REIMB -BOOTS - $100.00 GOPHER SIGN CO SIGNS $78.34 GOVERNMENT INFORMATION SERVICE GUIDE TO FED FUND $353.50 GRINA, LISA REIMB- TRAVEL EXPENSES $62.29 GROEHLER, FLOYD REIMB- MILEAGE - SAFETY COUNCIL $43.40 GROUNDS MAINTENANCE SERVICES TRAINING FIELDS -JOHN ARLT $59.00 H & B SPECIALIZED PRODUCTS VOLLEYBALL NET $86.15 HAGER JEWELRY ENGRAVED PLATE $152.64 HAMMOND- JOHNSON, MICHELLE REIMB- UNIFORM PANTS $57.00 HEIUS, SINCLAIR GAMES WORKED $150.00 HIGGINBOTHAM, RUTH BUILDING ATTEND $30.00 HILLYARD FLOOR CARE / HUTCHINSON TISSUE $876.94 HOLIDAY INN- EXPRESS LODGING EXPENSES $420.36 HOLIDAY INN- EXPRESS BANDANA SQ LODGING CHARGES $89.27 HR DIRECT LABOR LAW POSTER $44.85 HUTCH CONVENTION & FEB LODGING TAX $4,558.11 HUTCH COOP CENEX LP GAS & KEROSENE $110.38 HUTCH FIRE & SAFETY EXTING RECHARGE $70.12 HUTCH MEDICAL CENTER EXAM CHARGES & LAB $128.50 HUTCH PLBG & HTG CO PARTS, LABOR- REPAIR FAN $378.62 HUTCHINSON JUNIOR LEAGUE BASEB BASEBALL REGISTRATION $25,159.35 HUTCHINSON LEADER ADV $2,387.96 HUTCHINSON TEL CO REIMB WORK COMP CHARGES $10,300.27 HUTCHINSON UTILITIES STREET LIGHT POLES $14,586.18 HUTCHINSON WHOLESALE FILTER $257.66 JACK'S UNIFORMS & EQUIPMENT BADGES $473.00 JOES SPORT SHOP POOL PLAQUES $157.50 KARG, LARRY REIMB -MEALS $22.99 KARP RADIO RADIO ADS $112.00 KILIAN, AMY REIMB- FOOTWEAR $100.00 KOELLN, KENT PER DIEM $60.00 LEAGUE OF MN CITIES QTR 2 WORK COMP $28,745.52 LEMKE, KOREEN REIMB -ICE SHOW EXPENSES $167.70 LINDER BUS COMPANY BUS TRIPS FOR SKI CLUB $690.00 LOGIS MARCH SERVICE $7,591.46 MAIN STREET SPORTS BAR PIZZAS $68.69 MARKA, JAMES REIMB- MILEAGE $9.30 MCGARVEY COFFEE INC COFFEE $142.52 MCLEOD COUNTY TREASURER PARCEL LISTING $120.50 MEYER, ANN REFUND - SOCCER CANCELLED $20.00 MIDWEST WIRELESS COMM. APRIL SERVICE $497.96 MINNCOMM PAGING APRIL SERVICE $276.83 • MINNESOTA COUNSELING CENTER PSYCHOL EVALUATION $225.00 MINNESOTA REC & PARK FOUNDATIO 1998 ANNUAL MEMBERSHIP DUES $20.00 MN ELEVATOR INC. MARCH ELEVATOR SERVICE $71.02 MN MUTUAL LIFE APRIL LIFE - COBRA- MATTSFIELD $548.94 MN SAFETY COUNCIL REG -F GROEHLER, M WEIS $300.00 MN SOCIETY OF ARBORICULTURE RETESTING FEE $50.00 MODERN MAZDA TOW $34.08 MOON, DOLF REIMB -MEALS $23.41 MOORE, ANDREA REFUND - SOCCER CANCELLED $30.00 MORE 4 BAKERY $85.62 MR. MOVIES VIDEO RENTAL $5.98 MURPHY, VALERIE REFUND - SOCCER CANCELLED $20.00 MUSIC STORE, THE SPEAKER REPAIR $165.00 NADA APPRAISAL GUIDES SUBSCRIPTION RENEWAL $52.00 NIES, JEFF PER DIEM $60.00 NO STATES SUPPLY INC HANDSAW, LEVEL $182.63 NTOA 1998 MEMBERSHIP DUES $30.00 OLSON, KAREN REFUND -CLASS CANCELLED $45.00 PEDERSON, RYAN PER DIEM $60.00 PEREZ, JONNIE REFUND- SOCCER CANCELLED $15.00 PHILLIPS, PAUL PER DIEM $60.00 PIONEER LINE -MATE $241.87 PIONEERLAND LIBRARY SYSTEM QTR 2 PAYMENT $20,108.75 PLOTZ, GARY D. REIMB- MEALS, PARKING $49.50 POPP, CONNIE REFUND -CLASS CANCELLED $8.00 POPP, JIM REIMB- LODGING, PER DIEM $635.43 PRINTS CHARMING T- SHIRTS, SCREENS $1,346.60 PRO AUTO CLEAN CLEAN SQUAD CAR #8 $15.00 QUADE ELECTRIC THERMOSTAT $254.55 REECE, JASON PER DIEM $60.00 RIDER BENNETT EGAN & ARUNDEL PROFESS SERVICES $203.70 RUNNING'S SUPPLY SCREWDRIVERS $507.65 SCHMELING, CHRIS REFUND OVERPAYMENT BASEBALL $5.00 SCHNOBRICH, MARK REIMB- LODGING $69.18 u OPEN -HOLD COUNCIL REPORT GENERAL FUND SERVICEMASTER SEVEN WEST WASH & DRY S IERRA T SIERRA DIGITAL SILVERNALE, MICHAEL SIMONSON LUMBER CO SORENSEN FARM SUPPLY SR.CENTER ADVISORY BD STANDARD PRINTING STATE TREASURER STETZ, LANA STREICHERS STURGES, JASON SUBWAY TAB PRODUCTS TRI CO WATER COND TRIPLE G DISTRIBUTING INC TWO WAY COMM INC UNITED BLDG CENTERS US POSTAL SERVICE US WEST COMMUN VEDDER, TODD VIKING COCA COLA VIKING OFFICE PRODUCTS VIKING SIGNS VOSTINAR, JOE WAL -MART WALKER, LISA WEST CENTRAL IND. WEST GROUP WIEWECK, WENDY WILLMAR CIVIC CENTER WINZER CORP WOLTER, KARLA XEROX YORK INTERNATIONAL CORP STRIP & RECOAT FLOOR & BUFF LAUNDER MOPS SHREDDING RECWARE SOFTWARE SUBSC RENEW REFUND- CANCEL FROM GOLF LUMBER PARTS FOR BLOWER REIMB -APRIL NEWSCASTER TAGBOARD QTR 1 SURCHARGES REFUND - CANCELLED FROM CLASS FREIGHT PER DIEM PORTION PLATTER, CHIPS 2 DRWR SALT POP PURCHASE CHARGER HINGE CORNER MARCH POSTAGE APRIL SERVICE REFUND- SWITCHED LEAGUES POP PURCHASE JP LASER CARTRIDGE AD SIGN REIMB- SAFETY BOOTS LIGHTING, MOUNT, CLIP REFUND - SOCCER CANCELLED 36" LATH BUNDLES PAMPHLETS REFUND - OVERPAYMENT BASEBALL STAGE RENTAL GREASE, FLASHLIGHT REFUND- CANCELLED FROM CLASS MONTHLY LEASE PAYMENT LABOR, MILEAGE, PARTS 14- APR- 1998page 3 -------------------- $639.00 $7.99 $79.92 $99.00 $35.00 $606.98 $29.45 $144.00 $26.19 $1,486.37 $23.00 $21.95 $60.00 $45.88 $1,874.14 $183.88 $50.40 $292.88 $16.10 $844.15 $654.70 $5.00 $124.20 $81.72 $126.12 $59.97 $52.89 $15.00 $1,218.16 $251.87 $5.00 $420.00 $115.07 $13.00 $283.75 $1,690.32 $207,184.96* H COMM DEV.0 BUSINESSWARE SOLUTIONS TRANSPARANCIES $39.42 CITY OF HUTCHINSON APRIL MEDICAL $432.D9 CROW RIVER PRESS INC NEWSLETTERS $409.99 FORTIS BENEFITS APRIL LTD $15.10 GENERAL OFFICE PRODUCTS CREDIT MINI CASSETTES $9.51 HAGER JEWELRY ENGRAVING $90.91 HUTCHINSON LEADER MARCH ADS $286.68 HUTCHINSON TEL CO APRIL SERVICE $145.03 IMPRESSIONS INC BROCHURE $975.00 LENNES, RICHARD REIMB -BOOKS $2,597.37 MIDWEST WIRELESS COMM. APRIL SERVICE $38.42 MN MUTUAL LIFE APRIL LIFE $5.25 MORE 4 GROCERIES $3.17 PRO COMMUNIQUE 2 NEWSLETTERS FOR 1997 $300.00 STAR TRIBUNE ADS SUN -SAT $251.75 SUBWAY PORTION PLATTER, CHIPS, POP $79.21 US POSTAL SERVICE MARCH POSTAGE $70.57 < > $5,749.47* HUTCH TRANS FAC. CITY OF HUTCHINSON MARCH WATER /SEWER $392.19 COAST TO COAST HDWE $31.84 G & K SERVICES UNIFORMS $229.20 HUTCHINSON TEL CO APRIL SERVICE $304.47 HUTCHINSON UTILITIES MARCH GAS & ELEC $3,827.87 RUNNING'S SUPPLY MAT $15.94 SORENSEN FARM SUPPLY CORE DRILL & BIT RENTAL $76.68 UNITED BLDG CENTERS STUD ANCHOR $4.21 < > $4,882.40* INSURANCE FUNDS CASH WISE GIFT CERTIFICATES $200.00 < *> $200.00* LIQUOR STORE AAGARD WEST APRIL PICKUP $46.80 AM.LINEN SUPPLY CO MARCH DELIVERIES $227.34 0 OPEN -HOLD COUNCIL REPORT 14- APR- 1998page 4 ---------------------------------------------------------------------------------------------------- LIQUOR STORE BERNICKS PEPSI COLA MARCH BEER PURCHASE - $704.80 CITY OF HUTCHINSON LOTTERY PAYMENT $1,385.46 COAST TO COAST UPS $24.61 COLLINS BROTHERS MARCH MISC PURCHASE $469.10 CROW RIVER PRESS INC BUSINESS CARDS $36.00 ED PHILLIPS & SONS CO. MARCH LIQUOR PURCHASE $4,866.47 EL QUEENO CIGAR CO TOBACCO PURCHASE $166.05 FORTIS BENEFITS APRIL LTD $51.06 GLENCOE ENTERPRISE MARCH ADS $48.00 GRIGGS & COOPER TOBACCO DIV MARCH TOBACCO PURCHASE $187.69 GRIGGS COOPER & CO MARCH LIQUOR PURCHASE $7,416.14 HENRYS FOODS INC MARCH MISC PURCHASE $1,695.48 HERMEL WHOLESALE MARCH MISC PURCHASE $360.96 HR DIRECT LABOR LAW POSTER $14.95 HUTCHINSON LEADER MARCH ADS $391.21 HUTCHINSON TEL CO APRIL SERVICE $146.94 HUTCHINSON UTILITIES MARCH GAS & ELEC $889.10 JOHNSON BROTHERS LIQUOR CO. MARCH WINE PURCHASE $19,319.52 K D U Z MARCH ADS $49.00 KOEHLER,LYLE REIMB -SHELF TAGS $6.01 KYRS MARCH ADS $50.00 LEAGUE OF MN CITIES QTR 2 WORK COMP $625.47 LENNEMAN BEVERAGE DIST. INC MARCH BEER PURCHASE $3,367.20 LOCHER BROS INC CREDIT $14,553.30 LUNDHOLM, LORI CLEAN WINDOWS $42.60 MCGARVEY COFFEE INC COFFEE $33.25 MN MUTUAL LIFE APRIL LIFE 18.06 MORE 4 SUPPLIES 55.87 PARTIES PLUS DECORATIONS $46.38 PAUSTIS & SONS MARCH WINE PURCHASE $2,521.48 OUADE ELECTRIC EXIT LIGHTS $6.28 QUALITY WASH TRIP TO NEW UL4 $213.00 QUALITY WINE & SPIRITS CO. APRIL LIQUOR PURCHASE $2,031.33 SHOPKO ALBUM $17.02 ST. CLOUD RESTAURANT SUPPLY MARCH SUPPLIES $243.26 TRI CO WATER COND WATER $57.99 TRIPLE G DISTRIBUTING INC MARCH BEER PURCHASE $16,692.60 US POSTAL SERVICE MARCH POSTAGE $68.51 VIKING COCA COLA MARCH MISC PURCHASE $355.10 WINE COMPANY, THE MARCH WINE PURCHASE $88.00 < *> $79,591.59* • PUBLIC SITES MCLEOD COOP POWER 5 ELECTRIC HOOK UPS $4,000.00 < *> $4,000.00* RURAL F. D. BRODD, JIM QTR 1 MILEAGE $7.20 CITY OF HUTCHINSON MARCH FUEL $74.64 EMANS, BRAD QTR 1 MILEAGE $15.90 GLAESER, TOM QTR 1 MILEAGE $6.60 HAGEN, ROBERT QTR 1 MILEAGE $3.60 HOESCHENS, DUANE QTR 1 MILEAGE $4.80 HOMAN, ED QTR 1 MILEAGE $1.80 REDMAN, RANDY QTR 1 MILEAGE $3.60 RUNNING'S SUPPLY HDWE $8.18 SCHRAMM, STEVE QTR 1 MILEAGE $17.10 STEELE, DAN QTR 1 MILEAGE $7.20 < *> $150.62* SCDP 97 Hsg Reh HRA ADMINISTRATION $15,000.00 < *> $15,000.00* WATER /SEWER FUND AAGARD WEST MARCH PICKUP $30,002.73 BUSINESSWARE SOLUTIONS PRACTICAL PERIPH $94.23 CDI OFFICE PRODUCTS LTD BINDERS $122.90 CENTRAL GARAGE MARCH REPAIRS $1,907.26 CITY OF HUTCHINSON MARCH FUEL $5,247.50 COAST TO COAST WD40 $171.31 CORNELL UNIVERSITY MEDIA SERVICE $35.00 CROW RIVER PRESS INC BUSINESS CARDS $18.77 CULLIGAN WATER COND RENTAL $62.88 D2 SERVICES LABOR, TRAVEL, REPAIR BENCH $1,648.01 DATASTREAM SYSTEMS SALES TAX ON INVOICE $15.58 I -OPEN -HOLD COUNCIL REPORT WATER /SEWER FUND 0 • c *> DEVRIES, RANDY DOBRATZ ESTATE, MRS. O. FLEXIBLE PIPE CO FORTIS BENEFITS G & K SERVICES GENERAL OFFICE PRODUCTS GRAHAM, MARION HENRY & ASSOCIATES HILLYARD FLOOR CARE / HUTCHINSON HR DIRECT HUTCH COOP CENEX HUTCH MEDICAL CENTER HUTCHINSON LEADER HUTCHINSON TEL CO HUTCHINSON UTILITIES HUTCHINSON WHOLESALE IMPERIAL PORTA THRONES INFRATECH JEFF'S ELECTRIC JUUL CONTRACTING CO L & P SUPPLY CO LEAGUE OF MN CITIES LOGIS MIDWEST WIRELESS COMM. MINNCOMM PAGING MN DEPT OF HEALTH MN MUTUAL LIFE MN VALLEY TESTING LAB NALCO CHEMICAL CO. NCL NOTCH'S METALS QUADE ELECTRIC RUNNING'S SUPPLY SAFETY FIRST SCHMELING OIL CO SCHRAMM IMPLEMENT SORENSEN FARM SUPPLY STANDARD PRINTING TRI CO WATER COND US FILTER /ENVIREX US FILTER /WATERPRO US POSTAL SERVICE VWR SCIENTIFIC INC WALDOR PUMP & EQUIP WELCOME NEIGHBOR LIQUOR FUND LIQUOR SALES TAX REIMB -MEALS REFUND OVERPAYMENT -813 ELM ST RADIAL NOZZLE APRIL LTD UNIFORMS CALCULATOR REIMB - MILEAGE BRONZE METER CONNECTIONS SHRINK WRAP LABOR LAW POSTER UREA EXAM CHARGES & LAB ADS APRIL SERVICE APPLY TO "99" ACCOUNT REPAIR & MAINTENANCE SUPPLIES FEB UNIT RENTAL MIXED CAL -GAS LABOR SDR 35 PVC L & G TRACTOR QTR 2 WORK COMP MARCH SERVICE APRIL SERVICE APRIL - JUNE RENTAL QTR 1 CONNECT FEES APRIL LIFE WATER TESTS WATER STABI LAB SUPPLIES REPAIR PUMP COVER BULBS HAND TRUCK, HOSE SAFETY TRAINING #4 KEROSENE PTO SHAFT FOR MIXER GENT GENERATOR DIVIDERS, CARDSTOCK SALT INSPECT DAMAGES DRIVE ECR METER 10000 MARCH POSTAGE FUNNEL, CONTAINERS REPLACEMENT ACCESS COVER FEB LISTING 14- APR- 1998page 5 ------------------ $44.61 $127.29 $214.16 $406.94 $54.91 $58.28 $499.51 $200.54 $14.95 $37.50 $128.50 $387.24 $738.89 $22,276.63 $67.82 $117.43 $371.01 $220.36 $1,944.00 $13,461.60 $2,677.51 $3,017.78 $20.05 $32.27 $5,163.00 $74.97 $100.00 $5,327.66 $910.96 $27.00 $6.92 $94.73 $300.00 $14.00 $345.89 $69.23 $46.14 $32.58 $4,938.01 $1,420.09 $996.69 $208.44 $575.50 $120.00 $107,239.76* $571,385.36* $15,461.00 0 IMMEDIATE PAY COUNCIL REPORT 14- APR- 1998page 1, ---- ------ -------- --- - -- _ __ GENERAL FUND DEPT NATURAL RESOURCES _ - _----- _-- - - - - -_ DNR FEES TO STATE ____--- $1,716.00 -_ - - -- DULUTH CONVENTION & VISITORS B LODGING DEPOSIT - COUNCIL $948.00 SRF BLANK, RIBBONS ELECTRO RENT CORP RENTAL OF COMPUTER EQUIPMENT $3,533.02 CITY OF HUTCHINSON GE CAPITAL TRAINING, LODGING $13,255.90 HUTCHINSON JAYCEES WATER CARNIVAL PARADE DONATE $500.00 MINNESOTA DEPT OF PUBLIC SAFET DRIVING RECORD FEES $9.00 $89.3B MPCA NPDES ANNUAL FEE $210.00 EXTING INSPECTION URBAN COMMUNICATIONS LAMP HOURS, HEADSET $855.38 JORDON BEVERAGE INC. HUTCH COMM DEV.0 US POSTAL SERVICE $21,027.30* NEWSLETTER MAILING $176.11 $176.11* LIQUOR STORE BROWNS FLORAL ROSES, VASES $108.63 CDI OFFICE PRODUCTS LTD SRF BLANK, RIBBONS $29.71 CITY OF HUTCHINSON MARCH LOTTERY $1,052.00 CITY OF HUTCHINSON- GENERAL FUN PAYROLL 3/27/98 $7,145.11 GRIGGS & COOPER TOBACCO DIV TOBACCO PURCHASE $89.3B HUTCH FIRE & SAFETY EXTING INSPECTION $17.50 JORDON BEVERAGE INC. MARCH BEER PURCHASE $1,350.85 QUALITY WINE & SPIRITS CO. MARCH WINE PURCHASE $1,210.53 STANDARD PRINTING CASSETTES, NAME TAGS $117.18 < *> $11,120.89* PAYROLL FUND AETNA VARIABLE LIFE ASS. CO. EE CONTRIB 3/21 $575.00 AMERICAN FAMILY INS CO. EE CONTRIB 3/21 $87.36 GREAT WEST LIFE INS. CO. EE CONTRIB 3/21 $100.00 H.R.L.A.P.R. EE CONTRIB 3/21 $170.08 ICMA RETIREMENT TRUST EE CONTRIB 3/21 $2,601.17 PERA LIFE INS CO. EE CONTRIB 3/21 $114.00 PERA- D.C.P. EE CONTRIB 3/21 $52.02 PRUDENTIAL EE CONTRIB 3/21 $180.00 PRUDENTIAL MUTUAL FUNDS EE CONTRIB 3/21 $30.00 PUBLIC EMPLOYEES EE CONTRIB 3/21 $16,558.73 TEMPLETON INC EE CONTRIB 3/21 $480.20 WADELL & REED BE CONTRIB 3/21 $150.00 < *> $21,098.56* WATER /SEWER FUND CAREERTRACK SEMINARS MS2 REG -RANDY DEVRIES $99.00 CONSOLIDATED FREIGHTWAYS FREIGHT -SKID MACHINES $298.96 DULUTH CONVENTION & VISITORS B LODGING DEPOSIT - WATER /WASTEWTR $79.00 MPCA REG - MARION GRAHAM $150.00 TECH SALES REG - MARION GRAHAM $25.00 < *> $651.96* $54,074.82* • A C • TO: Mayor and Council Hutchinson Fire Department 205 Third Avenue SE Hutchinson. MN 55350 -2673 320 - 587- 2506/Fax 320 -234 -4469 FROM: Brad Emans, Fire Chief MONTHLY CITY COUNCIL UPDATE March, 1998 The fire department responded to 33 calls for service in March. Breakdown of the Citv calls 7 - Residential 2 - Commercial /Industrial 3 - Multi Family 2 - Rescue 2 - Vehicle 6 Carbon Monoxide _ Is 1 Goodwill Breakdown of the Rural calls 1 - Residential 4 - Rescue 1 - Grass 4 - Medical Drills /Meetinos for the month • SCBA Maintenance • CPR Testing • Haz -Mat Update • Officer Tour of New Buildings (Pre -Plan) /bb KTIRE\CCUPDATE. Printed on mcycled poper- 0 HUTCHINSON SAFETY COUNCIL MEETING JANUARY 26, 1998 The Hutchinson Safety Council met at the Elks Lodge on Monday, January 26, 1998 at noon. Members in attendance were: Leslie Smith, Frank Murphy, Myron Johnson, Dick Higgins, Kay Peterson, Dave Conrad, Greg Curry and Vi Viesselman. Wayne Micka attended as a guest. Due to the illness of Casey Stotts, the meeting was conducted by Les Smith. The minutes from the last meeting were read , corrected and accepted as corrected. A motion to cast a group[ vote for the slate of officers as proposed was made by Myron Johnson and passed by the membership. The officers for 1998 will be President Dick Higgins Vice President Frank Murphy See/Tres Vi Viesselman It was voted to include as members at large: Casey Stotts (Past President) and Myron Johnson. OLD BUSINESS It was reported that the letter requesting fund donations for the Safety Council is still in process. A recommendation was made to have Norm Bohn and the Lite -a -Bike program as conducted by the VFW be part of the Bike - Safety Event. There was as expression of interest by the people from • the American Legion that were present in also contributing to this event. It was also recommended that the TPA program of Watch for Children stickers be included in the Fair Booth. After discussion it was decided to table the discussion of the traffic concerns on Century Avenue until further developments. NEW BUSINESS The Program Schedule for the year was set up as follows. February - -- School Safety Patrol Presentation April - - -- Overview of the Safety Program at HTI June - - -- Presentation by a representative from the Minnesota Safety Council September -- -Casey to give Fire Safety presentation November - - -- Hospital Safety Greg Curry expressed a concern about traffic/pedestrian safety at the Middle School during student drop -off and student pick -up times. After discussion Kay Peterson volunteered to contact City Planners as to when School Road will be improved. There was a discussion about the automobile driver confusion surrounding the Bike Lanes in the city. A question about snow- mobile traffic rules was brought forth. It was suggested that next year the snowmobile traffic rules could be published in the city news letter. The next meeting will be on February 23, 1998. • 0 HUTCHINSON SAFETY COUNCIL MEETING FEBRUARY 23, 1998 The Hutchinson Safety Council met at noon in the Elks Lodge on February 23,1998. Members present were; Lucille Smith, Les Smith, Dave Conrad, Dick Higgins, Myron Johnson, Joyce Rix, June Wick, Frank Murphy, Mark Schnobrich, and Vi Viesselman. Dick Higgins, President, chaired the meeting. The minutes were read by the members and approved. OLD BUSINESS Dick Higgins reported that he had contacted Carol Bufton, President of the Minnesota Safety Council and she will make a presentation at our June 29th meeting. He expressed a desire to have more members present at that meeting. Les Smith reported that the Bike/Blade Safety Event will be on Saturday, May 9, 1998. NEW BUSINESS June Wick expressed concern about the lack of sidewalks in the more newly developed areas of • the city. A general concern was expressed concerning pedestrian safety. Myron Johnson reported that the present plan for summer is to put new walkways in the School Road and Roberts Road areas. There are also plans for a sidewalk from the Fairgrounds to highway #15. Myron volunteered to check on what guidelines are used to determine where new sidewalks should go. A presentation on the School Patrol was presented by Dave Conrad and Myron Johnson. The school patrol program is presently in place at Park Elementary and St. Anastasia's School. There are ninety-eight fourth and fifth graders at Park School involved. Every year, about fifteen patrol captains from Hutchinson attend the camp sponsored by the American Legion. In addition to creating a safer environment for the student community this program builds responsibility and leadership skills. • • Hutchinson Fire Department Regular Meeting Monday March 2, 1998 The meeting opened at 8:05 PM. The minutes from the previous month's meetings were read and approved. Committees Dance - Tim Huiras stated that the dance date is April 18'" at Cedars Edge in Cedar Mills with Clover playing. Everything is ready. Banquet - Brian Koelln stated that the banquet will be on May 9"' at the Country Club. Uniforms - Contact Rob Carlson if you need uniforms or coveralls. Membership - Tom Glaeser stated that there would be a meeting on March 9 th . Fire Prevention — Casey Stotts stated that there are two dates at the Mall in April. signup sheet in the control room. There is also a station tour on March 9 at 9:30 A.M. Bills • General Account Legion Post 98 $880.00 Triax Cablevision $3.03 Cash $30.00 McLeod Co. Sheriffs Dept. $100.00 Surplus Services $40.00 Jason Reece $40.37 Cashwise $91.85 Liquor Hutch $69.55 TOTAL CO Officer Only 2 -24 $1254.80 Runs 2 -1 CO Officer Only 2 -20 Chimney — Hutchinson Twsp. 2 -2 Mufti- Residential - 435 California 2 -21 Vehicle 2 -3 Gas Smell — Officer Only 2 -23 Alarm — Plaza 15 2-6 Multi - Residential — Prince of Peace 2 -23 CO Officer Only — Acoma Twsp. 2 -7 CO Officer Only 2 -24 10-52 — Lynn Twsp. 2 -7 CO Officer Only 2 -24 Commercial — CRCC 2 -8 Medical — Acoma Twsp. 2 -26 Alarm — High School 2 -9 Residential — 718 Juul 2 -2 Drill & Meeting 2 -12 Smoke Smell — Officer Only 2 -9 SCBA's 2 -15 Commercial — Little Dukes 2 -9 Drill 2 -15 CO Officer Only 2 -11 County Chiefs Meeting 2 -17 Goodwill — Officer Only 2 -16 Drill 2 -20 CO Officer Only — Hassan Valley 2 -19 Townboard . 2 -20 Medical — Hutchinson Twsp. 2 -23 Drill MMS to approve the bills and runs as read. Motion Passed Old Business Duane Hoeschen asked that everyone make a copy of their 1 x Responder card to put in the personnel file. New Business Chief Brad Emans stated that at the County Chiefs Meeting it was decided to start a county dive team. Scott Stumff from Glencoe will head this up. Brad took names and qualifications of those interested. Chief Brad Emans then asked for qualifications of members on Hazmat. Brad took names and qualifications. Chief Brad Emans then stated that the Hutch utilities had a spill. In the future, only the Fire Dept. will respond and no other city crews unless requested. Chief Brad Emans is working on getting a personal service contract with Mark Schoutz & K9. If a K9 is needed, call the county Sheriffs office direct. A thank you was given to Brian Koelln ans Lunch Committee for the Town Board meeting Meeting Adjourned at 9:15 P.M. Jim Brodd Secretary 0 11 CITY OF HVHINSON LIQUOR STORE COMPARISON MARCH 1997 LIQUOR BEER WINE MISC. TOTAL TOTAL BY WEEK 1 3,302 5,106 1,140 312 9,860 LIQUOR STORE COMPARISON 9,860 3 1,482 2,197 403 176 4,258 4 1,192 1,747 423 146 3,508 - 5 1,759 2,282 775 174 4,990 6 2,270 2,872 639 236 6,017 7 3,239 5,525 1,253 547 10,564 8 3,084 4,970 1,491 461 10,006 4,137 4 1,663 2,570 497 39,343 10 1,330 1,893 506 141 3,870 823 11 1,625 1,962 312 210 4,109 6,531 12 1,914 1,975 526 154 4,569 3,278 13 1,737 2,423 572 156 4,888 14 3,149 5,367 1,163 378 10,057 15 3,528 5,436 1,165 345 10,474 10 1,402 2,198 523 174 37,967 17 1,709 2,246 366 149 4,470 140 18 1,215 1,869 449 146 3,679 686 19 1,272 1,914 373 114 3,673 5,183 20 2,040 3,419 687 279 6,425 3,478 21 3,039 5,587 906 321 9,853 22 3,137 6,124 1,180 398 10,839 16 1,602 2,013 491 187 4,293 38,939 1,674 2,272 564 166 4,676 4,576 25 1,322 2,078 899 147 4,446 211 26 1,870 2,448 1,074 296 5,688 851 27 1,786 3,190 942 190 6,108 5,825 28 3,763 5,772 1,809 366 11,710 3,394 29 4,119 8,604 2,981 603 16,307 41,104 48,935 31 1,444 1,978 441 127 3,990 24 1,304 2,226 436 213 3,990 TOTAL 58,001 91,256 23,039 6,738 676 179,034 96TOTALS 55,257 87,957 17,963 6,036 3,702 167,213 % OF SALE 32 51 13 4 3,383 100 SALES INC OR DEC 9,955 11,821 7 % CITY OF HUTCHINSON LIQUOR STORE COMPARISON !ARCH 1998 - -- -- -- - - -- --- - - - - - -- TOTAL LIQUOR BEER WINE MISC. TOTAL - -- BY WEEK --- - ----- - - - - - -- 2 -- - - - - -- -- 1,584 - - - - -- 2,098 -- - - - - -- 311 - - - - - -- 151 -- --- 4,144 3 1,474 1,928 499 236 4,137 4 1,663 2,570 497 238 4,968 5 2,382 3,238 823 204 6,647 6 4,182 6,531 1,211 477 12,401 7 3,278 5,318 1,585 319 10,500 42,797 9 1,400 2,288 643 158 4,489 10 1,402 2,198 523 174 4,298 11 1,859 2,264 526 140 4,789 12 1,661 2,991 686 245 5,583 13 3,518 5,183 1,217 398 10,316 14 3,478 5,252 995 319 10,044 39,519 16 1,602 2,013 491 187 4,293 17 1,727 2,280 428 141 4,576 18 1,547 1,923 683 211 4,364 19 2,198 2,676 851 233 5,958 20 3,413 5,825 1,276 491 11,005 21 3,394 5,946 1,042 526 10,908 41,104 23 1,436 2,347 555 198 4,535 24 1,304 2,226 436 213 4,179 25 1,647 2,419 676 252 4,995 26 2,335 3,702 833 319 7,189 27 3,383 5,281 882 409 9,955 28 3,846 6,556 1,333 519 12,254 43,107 30 1,396 2,486 466 163 4,531 31 1,579 2,159 444 264 4,446 8,977 58,688 89,699 19,932 7,185 175,504 97 TOTAL 58,001 91,256 23,039 6,738 179,034 Y OF SAL 33 51 11 4 100 SALES INC OR DEC (3,530) (2) 6 b 001112 1 V � A %.g � �NNESOT �� 4 TE LOttE� ' Iln6 b.N pr Vw .,1 F:ewi C..T..,R April 10, 1998 Dear Retailer: Over the past few years, the lotteries in this country have been working with the National Association of Convenience Stores (NAGS) to study a host of issues surrounding the sale of lottery tickets. One of the main objectives of the study was to determine what could be done to improve the efficiency of the lottery transaction. The study reviewed various aspects, from delivery to accounting. Minnesota, as you know, has state of the art systems, delivery and accounting in place and makes changes that benefit retailers on a regular basis. We will continue to do so. The NACS study found that the sale of lottery tickets is profitable to retailers. Add to that the repeat traffic of customers, and lottery sales are a significant means of improving overall sales at any store. As a part of the NACS review, it was evident that the profit Ievetwas not at the average profit margin for stores, although in Minnesota it was higher than in most states. Therefore, the Lottery determined that it would seek • legislative approval to increase retailer compensation. In addition, we proposed to increase the Lottery's advertising budget, capped at 2.75% of sales (ad rate increases have reduced our ad volume by nearly one - half), and to reauthorize holiday - themed games. Other minor technical changes were also introduced. We received bi- partisan support in the committees overseeing the Lottery. Despite opposition from some surprising quarters, the bill, minus the advertising increase and the holiday themed games, passed and was signed into law with an effective date of July 1, 1998. This new law provides ,that , your. mission _+nnll mcre{ase l from ; 5 *�, to 5.5% prd each ticket you sell You,*11 also receive a 1 cashing` commission on all lottery tickes� .„ 'redeemed ad your The bill also allows a possible bonus commission if total lottery sales increase over the prior year. Further, the Lottery is required to review the commission rates each year for any adverse effect on beneficiary proceeds. With these changes, Minnesota State Lottery retailer commission rates will be at the top end of rates across the country. You work hard for us, and you deserve both the recognition and compensation. We appreciate your continuing efforts selling our products. Lottery sales benefit all of us, now more than ever. Very truly yours,__,' --I._ George R. Andersen Director . _* • . ..� , . I - ­_. —: � n__J O. .11. AA:.... _,sec„] IAl2)Al] .1/ 1 CAV11111 5 DEPARTMENT OF HEALTH & HUMAN SERVICES Public Health Service D Food and Drug Administration Rockville MD 20867 FO R YOUR I Nr ORMATJOAf OWNER April 6, 1998 Liquor Hutch 245 Washington Ave E Hutchinson, MN 55350 -2612 Congratulations! You or one of your salesclerks followed the new rules and did not sell tobacco to an underage teenager. In February 1997, FDA rules took effect making it against the law to sell cigarettes and smokeless tobacco to kids younger than 18 years old. These rules also require retailers to verify the age of custom9rs who are younger than 27 years'old by'checking their photo ID.' FDA has been visiting retailers in your state to make sure that they are following the rules. As part of this effort, an underage teenager tried to buy cigarettes or smokeless tobacco at your store. You or one of your salesclerks followed the new rules by refusing to sell to the • teenager. A copy of the form that FDA used during its visit to your store is printed on the back of this letter. By not selling cigarettes and smokeless tobacco to underage children, you are helping to protect them from tobacco use. More than 80 percent of people who smoke had their first cigarette before their 18th birthday. Sadly, of the nearly 3,000 children who become regular smokers every day, 1,000 will die prematurely because of their smoking. FDA wishes to thank you for helping us to prevent kids from using cigarettes and smokeless tobacco. We realize that you may wish to congratulate your employee. The form on the back of this letter tells you whether the salesclerk involved in the check is a male or female, and the date and time of our visit. We hope this is helpful. We do not have any more information about your employee. If you would like to speak to someone about this letter, please call Ms. Mary Lyda at (301) 827 -0353. Sincerely, �U� pt Mitchell Zeller Associate Commissioner Office of Policy APR In � �� RELIVED ��g 0 Tobacco Compliance Check Retailer Information (Please use the Tobacco Compliance Check Correction Fonn to report changed information): Liquor Hutch ID Number 245 Washington Ave E 25004079 Hutchinson, MN 55350 -2612 Result of Previous Cheeks: _) _en Merch SM1Grocery Conven Cony/Gas G Gas '_' D rug Toba t Othe it unabM to =npkte the Comprence Check, please 0 in the appropriate dicle: U Does Not Sell Tobacco O Business Closed I-) Out of Business Unsatisfactory Conditions �--' Business Name Change O Owner Changd (reVislt only) (D Address Change Date of Check: 0 3 1 7 9 8 rz n 9 !♦ 3 _7 4 , i 4, ,4. (6) O (5( L71 J J, ts) O L �9; 19 (9 77me of Cheek (Military): 1 7 5 7 4 r( (o; (o (1 ( ,z (j) i 7 (1 '21 '3l (2) r2). n alral( a „5. iJ U (3) (J O iii O 3' r�( �i� v4,G f4' y �?©O005:( ;e, s) 000 Minor ID: r 0 0 1 6 5 2 1 4) 4 r( (o; (o (1 ( ,z (j) i 7 (1 (31 i 3. ;. 4 4 14 14` 1 4 41 J a „5. iJ U (3) (1 11 (3� 3' r�( �i� (4' f4' �?©O005:( s) 000 CO) (_i)i U V V i7� U {7( O le (J te' 0 0 C9. C, `g( i91 L, l8' Officer ID: 0 0 6 5 0 1 (b i .o' ?� ri, , T, ril 'i� 'i ( ,z (j) i 7 (1 (31 i 3. ;. 4 4 14 14` 1 4 41 J a „5. iJ U L �e Ce (e; L' ID Requested: Age Asked: Sale Completed. Retail Clerk: L( Yes G Yes Yes O Male No ! No i No Female Officer witnessed Attempted purchase Item: sale to minor. Yes Cigarettes No Smokeless Tobacco Computer Reproduction of Inspection Results From FDA Form 3447 (7197) ( 1 fiI N 1 111 it i ,r • ARNOLD, ANDERSON & DOVE PROFESSIONAL LIMITED LIABILITY PARTNERSHIP DAVID B ARNOLD' STEVEN A ANDERSON G. BARRY ANDERSON' LAURA K. FRETLAND PAUL D. DOVE" JANE VAN VALKENBURG RICHARD G. McGEE CATHRYN D. REHER WALTER P. MICHELS, III JAMES UTLEY 'ALSO ADMITTED IN TEXAS ANO NEW YORK (612) 389 -2214 FAX(612)389 -5506 METRO LINE (612) 545 -6018 RESIDENT ATTORNEY STEVEN A. ANDERSON March 24, 1998 Reply to Hutchinson Office Gary D. Plotz Hutchinson City Administrator Hutchinson City Center 111 Hassen Street S.E. Hutchinson, MN 55350 RoCsIVED MAR 2 71996 CIn of tiuiCHASON OF COUNSEL ARTHUR L. DOTEN 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545 -9000 FAX (612) 545 -1793 101 PARK PLACE HUTCHINSON, MINNESOTA 55350 (320) 587 -7575 FAX (320) 587 -4096 FOR YOUR INFORMATION Re: CATV /City of Hutchinson • Dear Gary: I'm enclosing herewith a copy of correspondence received from Bernick and Lifson dated March 16, 1998. I would appreciate it if you would provide a copy of this correspondence, along with a copy of my letter, to the Hutchinson City Council in the next city council packet so that they are up to date on the status of these matters. I have received in recent days some additional complaints regarding outages but it appears that most of those problems were corrected the next day. I've had at least two instances where outages occurred, in other words no cable service was present, and the parties complaining about the absence of cable service were told they were wrong, they did have cable service because "no outages had been reported ". I'm not certain how this conclusion can be reached in view of the reported complaint, but I pass it along for whatever it might be worth. Thank you. Best regards. Very truly yours, ARNOLD, ANDERSON & DOVE, P.L.L.P. G. Bang Anderson Attorney at Law • GBA:ln Enclosure ATTORNEYS AT LAW 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 -2005 'CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION 'CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION 03 -16 -1998 17:01 NfAL J. -JNA /IRO SAUL A. ■ZRNICM' TNOM" 1. CREIONTON SCOTT A. LIFO*. OAVIO N. NIONTINOALLt RAU L J. O UAOT ROBERT J. V� VORi WILLIAM A. FORSf CRO 6125461003 BERNICK 8 LIFSON BEF,NICK AND U FSON A FROF[771011ALA22 OC1ATIOM A'rTOANCY2 AT LAW •UITL I[OO. THE C060MN..6 9960 wAV ATA BOULNARS MINNCAPOLIB. MINNESOTA 10 841e - 1170 TCLCRNO (01-1 ■. .ACSIMILC (0125 6 March 16, 1998 via facsimile to 320- 587AO96 and U.S. Mail Mr, G. Barry Anderson, Esq. Arnold, Anderson & Dove 101 Park Place Hutchinson, MN 55350 -2563 Re: City of Hutchinson Dear Barry: P.01 fwL[p "O+.Tf[O �N byGOnhw 'AU{O CtRTITIm MJfLJE AE[EUMAM • Y.fE AfMRT[S IN RD•IN "AAL ASSISTANT NATNRVN O. MA*TCRMAN In response to your telephone call to our Office last week, please be advised that the cable franchise ordinance (No. 95 -131) requires that the cable system be upgraded to 550 MHz and be capable of delivering a minimum of 60 channels on or before April 25, 1998. In addition, the franchise clarifies that the upgrade contemplated by the City was to incorporate fiber optic te:hnology into the cable plant, • including fiber optic ttunk line. By copy of this letter, I request that Triax provide a written update as to the status of the system rebuild. This update should include detail regarding work completed, work undativay, and the expected date of completion of the upgrade. In addition, this information should include the expected system capacity upon completion of the upgrade, information regarding the total number of video programmed channels offered currently and upon completion of the upgrade, sad any information concerning the introduction of new services as a result of the upgrade to the extent this information is applicable. Finally, I intend to begin work in earnest on development of custome service standards to address issues such as late fee charges and other potential billing problems. In this regain I expect that the first step will be to initiate some dialogue regarding the nature of the customer service problems perceived by the City and Triax's position or proposal regarding correction of such problems. Please do not hesitate to contact the with any questions. Yours truly, BE AND / IFSON, Y.A. Robert J. V. j .' se cc: Ms. Jane E. Bremer, Attorney at Law • Mr. Thomas D. Creighton, Attorney at Law RasMsntlal Site Acqulshrion Report Hutchinson Flood Recovery 9 Property Address Owners) Name Completed Written Offer Date Contract Accepted . Closing Date Comments Notified of Interest Appraisal Com etc Pre -Offer Interview Forms Package Date Amount 225 Huron Street Nathan Bassett x x 10-Feb as 19Fab E 275,000 I 24-Feb "r Not likely to sett 126 Erie Street James Btomm it x x Not likely to sell 421 First Avenue Hwry/BftWw x x 29Jen yes 26 -Feb E 80,000 16-Mar signed contract 116 Huron Street Richard Carlson x x es 18-Feb E 87,500 21-Feb 27 -Mar CLOSED 116 Erie Street Tom d Terri Goldschmidt x x 27Jan es 3/3 11-Mar E 78,500 unsure 330 Ontario Street Scott Henson x x 29-Jan 18 -Feb E 57,000 23-Fab 13-Apr olgrwd contract 630 Second Avenue Brett &Victoria Ktabunde x x 29-Jan es 19-Fab E 50,500 27 -Feb sigined contract 518 Second Street Dwaine Lutrke x x 29-Jan umure 136 Ontario Street Zapp Bank do Daryl Moritko Trustee for Dorothy Schram x x phone yes 26 -Feb E 42,000 5-Mar signed contract 103 Erie Street PulkrebeWEridrson x x Not likely to betl 126 Huron Street Reinhardt Ouast x x phone sent 2123 2- E 48,000 Meeting April 2nd 605&607 Third Ave. Kurt & Pony Rischmilier x x 27Ja2 es 19Feb E 57,500 11,ar signed conct s tra 118&126 Ontario Str. SandstedeNaien x x 29Jan es 18-Feb E 6Q000 23Feb 13 -ktar CLOSED 915 Third Avenue Grace Shoen x x 30-Jan es 18-Feb E 30 000 23 -Feb signed contract 1861196 Third Ave.NE Norm & Lorraine Wright verbal x - recently added/unaure Total E under contrwL E 557,000 Commercial Sib Acqulsiflon Report Property Address Omer(s) Name Completed Written Offer Date Contract Accepted Closing Date Comments No86ed of Interest Appraisal Complete Pre1Mer Interview Forms I Package Date Amount Fahey Sates Btd . Jim Fahey x x 10-Feb as 19Fab E 275,000 I 24-Feb "r Ready to Clow Chamber of Com. Chamber of Commerce x x getting 2nd appraisal Simonson Lumber Simonson Properties x x 19-Feb S 345,000 getting 2nd appmisal Total E under contract: E 275,000 V Complete the relevant sections and fax report to John Cosgrove, DTED, (612) 296 -5287 by the 3rd day of each month. Local Entity City of Hutchinson Date April 1, 1998 DTED Grant Number (if applicable) FLOD -97- 0089- W -FY97 Report Completed by Rebecca Steen, Mid- Minnesota Development Commission Phone Number (320) 235 -8504 1) REHAB - RESIDENTIAL /COMMERCIAL 2) BUYOUTS Expected Number of Buyouts 18 (15 Residential, 3 Commer Owner-Occupied Rental Units Commercial Current Month To Date Current Month To Date Current Month To Date .ATdirnher of Applications Taken Number of Contracts Awarded Number of Self Help Number of Rehabs Completed Number of Houses Moved 2) BUYOUTS Expected Number of Buyouts 18 (15 Residential, 3 Commer Current Month To Date Number of Signed Purchase Agreements 4 9 Number Closed 2 2 Number of Purchase Offers Made C , J 3) INCENTIVE PROGRAMS Number of Applications Taken - Lot Number Processed - Lot Number of Applications Taken - (Gap) Equity Loan Number Processed - (Gap) Equity Loan Other Current Month To Date q) INFRASTRUCTURE Goal I Plans tSpecs Complete Date Contract Start Date % Physical Work Complete Distribution System Treatment Plant Collection System Treatment Plant Levee/Flood Drainage Other Infrastructure S) BUSIN FINANCE PROTECTS (NON - RE HAB) Expec N o f L Number of Applications Received Loans Approved Current Month I To Date COMMENTS: One of the commercial properties, Falvey Sales, is scheduled to close April 13, 1998. The two other commercial properties have both decided to get a second appraisal. Six residential properties are ready to close and seven are undecided at this point; I am continuing to meet with tenants for relocation counse E \J • BUSINESS In 1996 America rewrote radio and television lawforthe firsttime in 62 years. The reform has failed to promote the competition it promised I N HIS first speech to America's television bosses on January 19th, Martin Luther King day, the new chairman of the Federal Communications Commission, Bill Kenn- ard celebrated the industry. Without televi- sion, he said, King's great speech in front of the Lincoln Memorial might have been a footnote in history, without television, black people like himself would not have seen the growing power of the civil -rights movement in the 196os It was a friendly introduction, but also a reminder of Mr Kennard's attitude to the media: they are to serve society, not the other way round. That is more radical than it sounds. The 1996 Telecommunications Act (which was not just about telephones, but was also a thorough rewriting oftvand radio law) has served the media companies well. The free- doms that it introduced have helped their share prices to soar after languishing for most of the 199os. That of Tc1, the biggest cable-Tv company, has more than doubled in value since the beginning of 1997; Time Warner's has risen by 60%. But the new act has been a disappointment to television audiences. The competition it sought to promote has not materialised. Instead, con- sumers seem to be paying more to watch the same old service. All this is the result of two main liberalisations. The first allowed more con- centration in the ownership of radio sta- tions. Companies had been allowed to own no more than seven FM and seven Am sta- tions nationally. That cap was raised before the act, and lifted altogether when it be- came law. It has been replaced with a cap on the number of stations that may be owned in any one market — between two and eight, depending on the market's size. Horizontal hold, vertical hold As a result, the radio industry has changed dramatically. According to Paul Kagan As- sociates, a media consultancy, out of lo,000 radio stations some 4,000 have changed hands since the act was passed, in deals worth around $32 billion. "This has far outpaced what was expected," says Larry Irving, an assistant secretary of commerce Fred Reynolds, chief financial officer at cas, says that radio has benefited from this change, because instead of dealing with dozens of stations, as before, an advertiser can now select a single broa[tcaster that ix [ [COx OM,si )n uuwxr x {ix s99R owns a stable of stations. In New York for instance, cas now offers advertisers a pack- age of two all -news stations, two all- sports stations, one that plays oldies, one album rock and one easy - listening. This worries both the administration and the Fcc, because some advertisers claim (nobody has yet compiled the num- bers to prove it) that concentration ofown- ership is driving up advertising rates. in ad- dition, there is a fear that concentration may reduce choice and create a series of "McRadio" chains across the country. An indication of disappearing diversity that worries Mr Irving who, like Mr Kennard, is black, is that the already small number of stations owned by blacks and Hispania has fallen by 10 % since the act. The second great liberalisation of the 1996 act was to give cable television more freedom to set prices. At the time, cable firms were threatened by satellite broad- casters, and there seemed less reason to continue regulating them Accordingly, regulation was relaxed before the act, and again when it became law. Full deregula- tion was promised for 1999. unfortunately, the promised compe- tition has not materialised. Cable still owns 87% of the subscription - television market in America, down from 89% in September 1996. Satellite has been hampered both by costs —a satellite system is still roughly twice as expensive as a cable system to a consumer —and by its inability to broad- cast the local programmes that consumers want, because of both technical and legal constraints. Rupert Murdoch, who was planning a satellite - broadcasting system to compete with cable, has given up the idea and —Fcc permitting —plans to sell his business to the cable companies, which al- ready own one of the satellite broadcasters. Free of both competition and heavy regulation, cable rates shot up at four times the rate of inflation in the year from July 1996, according to the FcCs price survey, published on January 15th. The cable com- panies blame the need to invest in thei r ca- ble systems, and dearer programming. Certainly, the cost of television pro- gramming has rocketed, with stars from such programmes as "Seinfeld" charging huge fees. But since Tcr and Time Warner, the two biggest cable companies, make e.3% and 12% of cable programming respec- tively, their plea sounds self - serving. In- deed the regulators worry that pro- gramme-making cable companies, which are obliged to make their programming available to their competitors, are loading system costs on to their production arms, Cable's hold on America BUSINESS thereby passing them on to satellite broad- casters and othercable operators The price of programming made by the cable compa- nies rose by 16% last year, whereas the price of programmes made by the broadcasters rose by only 4%. Moreover, in the few areas of America where one cable company has built over a rival's existing system, where a telephone company has set up an experimental sys- tem to deliver television signals, or where there is an old, municipally owned cable system as well as a private one, competition has led to lower prices (see chart} So what, if anything, is the government going to do? The FCC must review its regula- tions every two years, and can change or modify anything that it considers not to be in the public interest. This year will see the first review since the act was passed. The revolution in the radio business is unlikely to be stopped in the absence of compelling evidence of abuse. However, the politicians' and regulators' concerns will probably affect television's future The FCC is supposed to be considering whether to change the law that bans ownership of more than one television station in any market —a law which the 1996 act left in place despite much lobbying from the me- dia companies With the fuss about radio, the chances of that rule being relaxed in the near future are shrinking. Cable is more complicated. On the one hand deregulated cable prices have consis- tently grown more quickly than inflation. on the other, the proponents of deregula- tion made a strong case when the act was Set profits m the us, 1997, r O u u .s n 9O n aea Herr h runpWlbn fianl: 1. rle ta n4wi pWva cable aanidpr cable. canpv _ Q1 198"l DD 24O I 7n zm j eo Cable TV �� I Si ul i i SCI Ib in All berm 1W 1S as IS W 12 9• 96 97 rdaon.w.wtt rcc � �: signed in 1996. In the past decade techno- logical change has bred new ways of dis- seminating information — including satel- lite television, wireless television, high- speed telephone lines and the Internet More means of distribution should lead to more competition. If this is right, time and technology could yet undermine the cable monopoly. This would be more likely if the law were changed to help satellite carry local pro- gramming, and if cable firms were obliged to sell their interests in satellite-broadcast- ing, which could potentially compete against them. And if cable rates continue to increase, what then? Reopening a piece of legislation that was as hard to nail down as the 1996 act should be the last resort But if say, by Martin Luther King day in two years' time cable remains unbowed, Mr Kennard must be prepared to deliver an altogether harsher message. Russian oil Look see, It's Yu k sl MOSCOW C ONSOLIDATION is the order of the day in the Russian oil industry. The government is pleased: it says it wants to see more home - grown, world -class firms. No less a figure than the prime minister, Viktor Chemomyrdin, tumed up at a sign- ing ceremony on January 19th to bless the proposed merger of Yukos and Sibneft, re- spectively Russia's second- and fifth -rank- ing oil producers, into a new national top - dog. The merged firm will be called "Yuksi ", unless good taste intervenes. It will control 22% of all Russian oil production and 21% of refining capacity. Lukoil, the next - biggest, controls 2e.% of production and 8% of refining capacity. But, there was talk this week that Lukoil might merge with Sidanco, the country's sixth -biggest pro- ducer. If so, that would create a colossus with 26% of Russian production. If the Russian government wanted four or five giant oil firs, why on earth did it break the industry into so many bits when privatising it in 1992 -96? The answer is that there were too many Russian tycoons who wanted their share, and all of them had to be satisfied. So the industry was broken into 16 main pieces and parcelled out to the powerful. For the past year or two the new owners have been Icaming the business and squeezing out any inherited minority shareholders with all the vigour that an ab- sence of Russian law allows. Yukos was swallowed by the Menatep banking group, which got its first 33 %of ttg company for E15om in 1995, This was one of several transactions known collectively as "loans for shares" in which favoured companies made very small loans to the government and received very large assets from the state in exchange. And Sib - neft... well, most people say one thing, and Sibneft says something different Most people say Sibneft is controlled by Boris Berezovsky, a finance and media tycoon who served until November as a national security adviser to President Boris Yeltsin. Sibneft, on the other hand, says Mr Berezovsky has never held a single one of its shares, "directly or indirectly'. Its main in- vestment-banking adviser, Salomon Smith Barney, agrees. And Mr Berezovskyhas said as much himself. There the matter would rest —save that it seems Mr Berezovsky is somehow going to emerge as a shareholder in YuksL The current plan seems to be to issue him a tranche of shares in Yuksi after the merger has been effected, on the grounds that he gave Sibneft useful advice in its formative years. The merger is good for Sibnefi,whoever owns it Running an oil company is not easy, and the boss ofYukos, Mikhail Khod- orkovsky, a chemical engineer by training, has shown something of a flair for it. He will be chief executive ofYuksi. An eminent outsider is promised as chairman. Yukos and Sibneft should both gain from com- bining their assets. Yukos produces more oil than it can refine, whereas Sibneft needs crude for its main refinery at Omsk, the big- gest and best- equipped in Russia. A determined effort to launch the new oil company as a transparent, investor - friendly beast — qualities rarely imputed to Yukos or Sibneft in the past could also make it easier to raise money overseas. Mr Khodorkovsky has pencilled in plans to raise about $9 billion in the coming five years. Some form of equity issue is likely in the for of depositary receipts, because Yuksi wants to broaden a shareholding New kid on the block Oil and gar output-, 1996 br of oll eglivalent, bn ! e.4 0.6 e.e to u u Gszp n, 1 r, Royal vulW Shall0 Bunn ■%W O op Char 0 near UL"I O Tn 0 Elf Moo surgoaletapas 1924 souma 4,I.g9 lmww..+ue,n +Ica 'Eahtlq n..amem,a bra aN1.w„o ,�� THE ECONOM I ST )A NOARY 24TH 1998 i P 0 L JP FRl DAYFAX Vol. 3. No. 14 w A weekly legislative update from the League of Minnesota Clues April e, 1998 The end is near.. a Early this morning, the Tax Confer- ence Committee nearly completed work on the 1998 omnibus tax bill. The compromise includes a tax rebate of approximately million, property tax reforms that will coat $427 million, levy limits fortaxes payable in 1999, and a host of city specific provisions ranging from local sales taxes to special tax increment financing legislation. The committee will meet again this afternoon to put final touches on the compromise and the bill is expected to be signed by the conferees later today. The property tax reform includes the governor's class rate compression immedwely implemented for Wes payable in 1999. Commercial and industrial property class rates will be reduced to 3.5 percent from the current percent Other class rate changes are listed in the table below. The property tax shtfts thal would otherwise occur are buffered by an expanded education homestead credit, reduced school levies, a new fiscal disparity hornesued and aggr cultural Credit aid, county family preservation aid and a modest $3 million increase per year for the Local Government Aid program. Despite an attempt by the house and governor to extend levy limits, the fatal compromise mirrors current law. Levy tirnits will be in place fortaxes Impact of Last Year's Tax Reforms & Conference Committee Proposed Class Rates • Taxes Taxes Proposed payable payable payable Property class 1987 1998 1988 Homestead 475.000 Homestead >$75,000 Qualifying low income rental Single -unit rental <$75,000 Single -unit rental >S75,000 2-3 unit rental 4* unit rental CorrvnerciaVndust ial <S150.000 CommerciWridustrial >$150,000 and utility Cabins .475,000 Cabins;- Education homestead credit %/maximum 1% 1% 1% 2 1.85 1.7 various rates various rates 1 2.3 1.9 125 2.3 2.1 1.7 2.3 2.1 1.7 3.4 29 2.5 3 2.7 2.45 4.6 4 3.5 1.5 14 1.25 2.5 2.5 22 none 32 68 0 /o1$320 payable in 1999. However, the law was also amended to allow for an ackk- tional growth fador based on new ootut Xkcbon of commercial and exiustrial property. Therefore, the levy limitation for each city will include three acfjustrnents: inflation growth, household growth end Commercial and industrial growth. The final compromise does not include a highly Controversial limited marketvekie provision thatwa9 origin* included in the House bill. That proposal would have rmitedthe market value growth of all property by the lesser of 5 percent or the con- sumer price index The current law limited market value pmvWuw that apply to homesteads, agricultural homesteads and cabins remain in place. Also Included In the bill are aulhonzations for locel general sel takes for Rochester, Owatonna, Hutchinson Two Harbors, Winona. Samidji, Detroit Lakes, Fergus Falb, and the St. Cloud area cities of Sartel, Sauk Rapids, St. Joseph, Waite Park, and St. Cloud. The committee added one laft amendment that would dodlcatefWire budget surpluses for lash payment for capital projects that would otherwise be funded through state bond pro- ceeds- The amendment was critic¢ed by the Comm wskxwof Revenue as an unnecessary restriction on suture legislatures and the new governor. The Commissioner suggested thel this provision could be a deal breakerfor the governor and could possibly force a veto. We will know more this after- noon. For more rafersadon on city (r6Lt"" ism ", contact "Y member of the tee~fJWM nO o cider laurAOwrnmM(d Rdadont rear. APR 10 '98 01 :08PM LEAGUE OF MN CITIES LML FRIDAYFAx 1,6"w of Mmaaaar Cwm C's.+ °- & ±�- -- A weeldy legislative update flan the League of Afinnesota Cities Legislature adjourns The I 9 legit ative session came to a dose at 3:30 this morning. Many ma- jor bills were passed in the lest two days including taxes, capital improve- ments (bonding), K-12 education, higher education finanoe, state de- partmenls, agricullum and natural re- sources, and others. The following is a quids summary of some of the action: Taxes (H. F. 3840) As we reported in the special Wednesday fax, agreement was reached on the major provisions of the omnbis tax biz. Highlights include class rate compression for taxes pay- able in 1999, reduced school levies and other protections for home own- ers, one more year of levy limits for cities over 2,500 in population and all counties, local sales taxes for 13 cit- ies, and another $500 million property tax rebate for home owners and rent- ers. Also included is a provision which will dedicate the first $200 million of a state budget surplus to income tax re- ductions, and the next $400 nWlion to pay cash for state capital improvement projects thatwould otherwise be paid through bonding. A last- minute adds lion to the bill is $10 million in housing money thet was originally contained in the economic development bill vetoed by the governor. In response to potential problems in TIF districts caused by property tax class rate compression, cities are granted authority to create special tax- ing districts within existing TIF dis- tricts. The autority is limited to TT districts for which the request for cer- tification was made before June 2, 1997, and applies only to property subject to an assessment agreement or development agreement To qualify for this authority, the city must have a TI F district deficit caused by the 1997 or 19% class rate change ( - deW means an inability to pay ob- ligations issued or contracts entered into before June 2,1997); and, ex- hausted any available increments from other TIF districts in the city. Cities that do not have actual deficits are also authorized to create special tax- ing districts, but the special tax may only be used to pay pre - existing obli- gations and the TI F district is required to be decertified when the obligations are paid. TIF disclosure and reporting deadines are extended from July 1 to Aug. 1, and a penally is established for failure to report on time. Environment & Agriculture Supplemental Appropriation (S. F. 3353) The Legislature approved $17.8 million from the general fund and $500,000 from the natural resources fund for supplemental environment and agricul- lure funding. Projects funded under the bill include $1.5 million for flood hazard mitigetim, $100,000 for brownfields, and $1 million for feedlot water quality grants. Significant policy changes in the bill include increased feedlot regula- tions with a two -year moratorium on open -air swine Lagoons, nhodfied indi- vidual septictreetment systems laws, and a now water quality cost- benefit model scoping task force. State Departments Supplemental Appropriation (Chapter 368IS. F. 3354) The governor signed into law Chapter 366, a $33 rnl9on state department supplemental appropriation for the op- eration of state agencies. In addnh'on to the funding provisions, the bill con- tains changes to the community -based planning law, establishes a copstruc P.1 Vol. 3, No. 1 April 10, 1 ti«, codes advisory oow:al including IJdC mernbershlp, requires the de• parlmentof adrninistralm to develop rwnvisuel technology standards for fu- ture procurement of techhrology by the state and political subdivisions, directs the attorney general to educate the public on telemarketing fraud, and amends statules to accommodate the state's telecommunications infrastruo- lure projects. Bonding (HF3843) The Legislature passed and the gover- nor is expected to sign the neatly $1 billion capital investments bill. Among the projects with statewide impact are $44 million to the pubic facilities au- thority to assist local governments with water and wastewater treatment projects, $34 million for local bridge replacement and rehabilitation, and $6 million to the housing finance agency for transitional housing bans and pub - lidyowned reel housing. The big also contains funding for the St Paul RiverCentre project, hence securing professional hockey in St Paul, and funding for planning and Construction of light rail transit and commuter rail An interesting polity change requires notification to local governments of proposed wastewater treatment projects within 10 miles of the project area. This provision may encourage better land use and other infrastrua lure planning. League staff is preparing more de- tailed summaries of these and other laws of interest to city officials for the annual legislative summary, which" appear in the April 22 issue of the Cit- ies Bulletin. And if that isn't enough information for you, take heart; there are only 270 days coil the 1999 ses- sion. a 0 04-09 -1998 11:49 P.O1 Coalition of Greater Minnesota Cities April 9, 1998 Contact: John Hofland 612.225.8840 CAPITOL FAX Inside the Capitol The Tax Conference Committee is always amusing, and this year's meetings am no exception, Senator Doug Johnson (DFL- Tower) and Son. Juba Elotfinger (DFL- Mankato) tried in vain to repeal levy limits. Unfortunately, their effort was beaten back by Rap, Ted Winter (DFL- Falda) and Rep. Dee Long (DFL.Mph) - loyal foot soldiers of Speaker Phil Carruthers (DFL•Brooklyn Center), who is a supporter of levy limits .... Early this morning, the Bonding Bill Conference Committee agreed to the funding for nearly $l billion worth of capital projects around the state. The whole bill will be passed out of the committee today and taken up on the Senate and House floors. The CGMC supported Greater Minnesota bonding bill projects in general. Thanks to the leadership of bonding bill co -chair Son. Keith Langseth (DFL- Glyndort), this year's bonding bill is the fairest ever for Greater Minnesota. CGMC Wins an The CGMC was successful on a number of fronts in the tax bill, securing Increase in LGA an increase in LGA and killing a number of provisions that were bad for cities. Thanks to the efforts of Son. Doug Johnson, the CGMC was succenful In adding an additional S6 million increase in the LGA base over the next biennium - a $3 million increase each year. This increase will be in addition to yearly increases for inflation. CGMC was also guecessfui in killing the limited market value increase provision, which would have been deadly for cities. An attempt to extend levy limits an additional two years was also defeated in the committee. Therefore, levy limits will continue only through next year, Big Business Wins Big The governor end the Minnesota Chember of Commerce got their way in in Tax Debate the tax bill. The bill contains S427 million for permanent property tax rate reductions. This money greatly benefits big business by reducing the commercial/industrial class rate to 3.5 percent next year. As always, Minneapolis and St. Paul cleaned up in the tax bill by offering last minute provisions that give them millions of dollars. The deal on the tax bill was sealed when the tax conferee's agreed to the governor's request that the first $200 million of any future projected budget surplus be earmarked for a Tax Reduction and Reform Account, which could be used for cuts in income, sales, or property taxes. Taxpayers will receive 5500 million in property tax rebates next year, a 20Ye reduction for homeowners, which is the same amount as last year's rebate. CGMC Cities Do Well Thirteen Greater Minnesota cities were granted authadMition in the tax bill this Legislative Session to impose or increase a local -option sales tax, pending voter approval, to pay for infrastructure projects. A number of cities also had their bonding bill projects funded. More information on the bonding bill will be provided next week. Pr9Pared by Flaherty & Koebek for the Coeidon of orester Minnesota Cities STATE REPRESENTATIVE L BOB NESS a e uttice ui mg, onstituuon Ave., St. Faui, 4 For Immediate Release March 27, 1998 To the Editor: Recently there's been a lot of interest and misinformation regarding important legislative initiatives related to capital investments, the budget surplus and tax cuts. I think it is necessary to provide additional information about each of these issues and explain my position on each. The Capital Investment Bill, better known as the bonding bill, provides for $679 million in state - issued bonds and a one -time $250 million from the budget surplus for state - supported projects. The Hutchinson Campus of Ridgewater College has not had any building additions in over 20 years. There has been significant growth in the community and in the area which it serves and, given the partnership with the area business community and the customized training programs, the campus will continue to increase in its service and mission to train skilled workers for good paying jobs in the future. There are many people, myself included, who have worked long and hard for over a number of years for the addition to the Hutchinson Campus. I voted for the bonding bill because it provided $7.6 million for this needed addition to the Hutchinson campus. A "No" vote would have virtually eliminated it for funding and perhaps for any consideration in the foreseeable future. The bonding bill also contained provisions for medical research at the University of Minnesota, flood relief for the people who have been devastated and are trying to rebuild their lives in the Western and Northwestern part of the State, money for bridge and road repair in our area, wastewater treatment, Luce Line Trail, and other comparatively smaller projects in my legislative district. A special interest group, the Taxpayers League, has been writing form letters to individuals and newspaper editors around the state bashing only Republicans who voted for the bonding bill. The "Taxpayers League" and "Citizens for Fiscal Responsibility" are part of a phenomena this legislative session of about a half -dozen self - appointed advocates with no physical presence at the Capitol. These groups disguise their agenda by claiming that they are at the Capitol fighting for the taxpayer or pressing legislators to be fiscally conservative. However, unlike established organizations such as the Minnesota Family Council, Farm Bureau, Farmers Union, Association of Minnesota Counties, the Minnesota Medical Society or the League of Minnesota Cities and hundreds of others, their main mission is to pick and choose certain amendments and bills, and either applaud or criticize legislators for their vote. The bonding bill is primarily funded through state bonds. No matter how I voted on the House bonding bill, the surplus is available to either spend on gO state government programs, add to the rainy day fund or to return to hard- working Minnesotans. The Omnibus Tax Bill, as passed by the House, provides a $1.3 billion return to the Minnesota taxpayers through a combination of permanent property tax relief through classification changes, rebates, repayment of the "shift" to schools that was borrowed during budget shortfalls, compliance of the federal tax code and several other complex provisions in a 300 -page bill. We offered 33 amendments to the tax bill to return the rest of the budget surplus to the taxpayers. We fought to reduce income tax rates; reduce the sales tax by %: percent; eliminate the sales tax paid on their purchases by counties, cities, and townships; and eliminate the marriage tax penalty. All these amendments were defeated on a straight party line vote. It's important to recognize the great differences between the House and Senate approach to both the Tax and Bonding bills. The Senate would use more of the budget surplus to pay for state .projects without committing long term debt and interest. The House has a much better balance and mix of tax relief and bonding. I am committed to return as much of the surplus as we possibly can to the taxpayers while also protecting our infrastructure, maintaining a vibrant state economy, and adequate reserves for unknown fiscal and economic changes in the future. I also believe the Governor should be commended for his strong leadership on fiscal matters. He has brought this state from a $1.9 billion deficit to a $1.9 billion surplus during his two terms. I trust he will exercise his veto authority often and wisely to ensure continued economic stability for Minnesota. There are a lot of complex issues. I work hard at doing my homework and try to analyze and consider all the factors in making informed decisions on voting on any legislation. I also try to maintain my integrity and vote my district to the best of my ability. I believe I've exercised more "backbone" in the positions that I've taken to represent our district, than those who just "go along -get along" or else never become players in the process because they take such extreme positions on virtually every legislative initiative. Sincerely, Bob Ness, State Representative District 20A E ROD GRAMS MINNESOTA COMMITTEES. ANKING. FC.91%0. ANC LREAN AFFAIRS ENEPG• ANC NATURAL RESOURCES FORE ON RE _A - IONS United $ tates $mate WASHINGTON, DC 20510 JOINT ECONOMIC March 17, 1998 The Honorable Marlin Torgerson Mayor City of Hutchinson 111 Hassan Street SE Hutchinson, MN 55350 -2522 Dear Mayor Torgerson: WASHINGTON OFFICE: x.202- 224 -321. FAX 002 -22B -0956 INTERNET: "IL_GRA S®GRAMS. SENATE. C- MINNESOTA OFFICE: 2013 SECONC A+ENUE NORTH ANONA, MN 55303 �. E12 -47 -592' FAX 812 - 427-9012 APR 8 1998 CITl uF HUTCHINSON I am writing to update you about the President Clinton's FY 1999 budget. First of all, the good news is that if the economy stays as strong as expected we may soon enjoy a budget surplus for the first time since 1969. It is the economy, not the government, that balances the budget for Washington. The American economy has produced an unprecedented revenue windfall for the federal government, and this unexpected revenue has come directly from taxpayers like you 41 in higher taxes. However, while it looks like we may have a budget surplus, this is not the real story. We have borrowed from the Social Security trust funds to fund government programs, if we count these IOUs to the trust funds, the real federal deficit could reach $600 billion over five years. The total deficit will reach a trillion in the next 10 years. This means we really do not have a balanced budget - -or a surplus many are eager to spend. The President's budget continues tax - and -spend policies which have been the hallmark of the Clinton Administration. No big surprise. _ It includes $115 billion in new taxes and $150 billion in new spending for social programs, and it is full of smoke and mirrors to look like we have a balanced budget. Under Clinton's plan, annual government spending will grow from $100 billion in 1962 to $1.73 trillion next year, an increase of 17 times over. It will continue to climb to nearly $2 trillion by 2003. This is a disciplined budget? My biggest concern is, as I said on the Senate floor recently, if this is a race to prove who can be the most "compassionate" with taxpayers' dollars, it's a race nobody will win, and one the . taxpayers most certainly will lose. The truth is simple: you PIIEPARFD, MIRLISHH) AND MAII.FD.AT TA%PATER MPENSE FIR N - EC ON RECYCLED PAPER can't buy compassion. The best way we can improve current programs is to streamline them and make them work better. Clinton's budget also does nothing to shrink the size of the government by eliminating wasteful and unnecessary federal programs. It instead increases the size of the government. To add insult to injuries, there are new taxes in Clinton's budget that will adversely affect the insurance, financial, agricultural sectors, and state and local governments as well. It will hurt working Americans the most. Congress has already rejected many of these tax increases in the past, but again they raise their ugly heads. There is no reasonable way to finance all of his new spending in his budget that violates earlier spending agreements. The question is -- will we really see a surplus this year. It is a tragedy that this budget fails to address our long -term fiscal problems. The President's Medicare proposal in this budget does more harm than good. The President has claimed that his number one priority is to save Social Security and he would use budget surplus to fund Social Security. But the truth is not only does he have no specific plan to reform Social Security, but he has already spent most of the surplus in his budget. Moreover, in the next five rob over $400 billion from for his costly government Social Security, he should Social Security recipients ensure its solvency. years, the President will continue to current Social Security funds to pay programs. If he is serious about saving first stop spending funds for future and help us reform the program to As a first step to address the future Social Security liability, I have introduced a bill to require statements providing the American people with key information on their future Social Security benefits. It will give us a better idea of what our Social Security benefits will be at retirement age as well as a comparison to what they would get if their Social Security was invested privately. Shortly the Congress will consider the President's budget and work on its own FY 1999 budget resolution. I intend to work with my colleagues on the Budget Committee and exercise fiscal discipline through the budget process to ensure that the federal budget will be balanced and stay balanced. My priorities are as follows: 1. Promote balancing the budget in this current fiscal year (1998) through rescinding $5 billion funding for current government programs; 2. Ensure that Congress and the Administration stay within the agreed -upon spending limits; 3. Ensure that the FY 99 budget resolution includes no tax increases. 4. Ensure that no new spending should be included in the budget resolution without cutting other government programs. 5. Ensure that there will be meaningful tax relief for American taxpayers. it will probably not surprise you that since we heard of a possible budget surplus, there has been a feeding frenzy about how to spend it. I believe Washington should not think about spending any projected budget surplus until it is materialized. If there is a surplus, it is only moral and fair to return it to the American people in the form of tax relief, debt reduction or on fundamental Social Security reform. Even some of my colleagues in the Republican leadership are waffling on our commitment to allow working Americans to keep a little more of their own money. On February 19, i sent a terse letter to Senator Lott urging Republicans not to abandon our pro - taxpayer agenda and to continue meaningful tax cuts for working Americans again this year to follow our successful $500 per child tax relief of last year. As you know, tax cuts will not solve the problems we have with the outdated tax code itself. We must end the tax code as we know it and replace it with a simpler, fairer and more taxpayer - friendly tax system. That's why I recently joined with Senator Hutchinson introducing a bill to call for termination of the tax code by 2001. Without a deadline, it will be difficult to achieve reform in the near future. I intend to continue my promise to the taxpayers to be the conscience of the Republican Party on tax relief. Your advice and counsel on important budget issues is always appreciated. If you have any questions regarding the budget, or any other issue, please feel free to contact me. Sincerely, ) Lrl Rod Grams United States Senator RG:lh