cp01-02-1998 cL
AGENDA
SPECIAL ORGANIZATIONAL MEETING - HUTCHINSON CITY COUNCIL
FRIDAY, JANUARY 2, 1998
1. CALL TO ORDER - 5:00 P.M.
2. INSTALLATION OF NEWLY ELECTED MAYOR MARLIN TORGERSON AND
COUNCIL MEMBER JOHN MLINAR
(a) RESOLUTION NO. 10961 - DESIGNATING OFFICIAL NEWSPAPER
(b) RESOLUTION NO. 10962 - APPOINTING OF LEGAL COUNSEL
(c) RESOLUTION NO. 10963 - APPOINTING CITY ADMINISTRATOR FOR 1.998
(d) RESOLUTION NO. 10964 - DESIGNATION OF DEPOSITORIES OF CITY
FUNDS IN COMMERCIAL BANKS AND INSTITUTIONS
(e) RESOLUTION NO. 10965 - DESIGNATION OF DEPOSITORY OF CITY
FUNDS, FEDERAL SAVINGS AND LOAN ASSOCIATIONS
(f) RESOLUTION NO. 10966 - RESOLUTION APPROVING SECURITIES FOR
COLLATERAL FROM CITIZENS BANK AND TRUST CO. OF HUTCHINSON,
MINNESOTA
(g) RESOLUTION NO. 10967 - RESOLUTION APPROVING SECURITIES FOR
COLLATERAL FROM MARQUETTE BANKS OF HUTCHINSON, MINNESOTA
(h) RESOLUTION NO. 10968 - RESOLUTION APPROVING SECURITIES FOR
COLLATERAL FROM FIRST FEDERAL FSB OF HUTCHINSON, MINNESOTA
Action - Motion to reject - Motion to waive readings and adopt Resolutions
(a) CREATION OF ECONOMIC DEVELOPMENT AUTHORITY IN CITY OF
HUTCHINSON, MINNESOTA
Action - Motion to reject - Motion to approve EDA, adopt Resolution No. 10969
and appoint seven commissioners
3
5. NEW
BUSINESS
(a)
SELECTION OF COUNCIL'S VICE PRESIDENT - JOHN MLINAR
Action - Motion to elect
(b)
DESIGNATION OF COUNCIL REPRESENTATIVES:
1. AIRPORT COMMISSION - Marlin Torgerson
2. HUTCHINSON AREA HEALTH CARE BOARD - Don Erickson
3. HUTCHINSON COMMUNITY DEVELOPMENT CORP. BOARD
(HCDC) - Jeff Haag
4. HUTCHINSON HOUSING, INC. (HRA) - Don Erickson
5. LIBRARY BOARD - Kay Peterson
6. MID- MINNESOTA COMMISSION - John Mlinar
7. PARKS, RECREATION, COMMUNITY EDUCATION ADVISORY
.
BOARD - John Mlinar
8. PLANNING COMMISSION - Jeff Haag
9. SAFETY COUNCIL - Kay Peterson
10. LIGHT TRAFFIC ADVISORY BOARD - Kay Peterson
11. TELECOMMUNICATIONS COMMISSION - Marlin Torgerson
Action - Motion to ratify Mayor's appointments
(c)
APPOINTMENTS TO HEALTH BOARD
1. DR. JAMES ALLEN
2. DR. DAVID BYRON
3. DR. DENNIS MURPHY
Action - Motion to ratify Mayor's appointments
i (d) RENEWAL OF CIGARETTE LICENSES FOR 1998
► AMERICAN LEGION POST 96
► AMOCO FOOD SHOP
► CROW RIVER OUTDOORS INC.
► ELKS LODGE NO. 2427
► ERICKSON FREEDOM STATION: 11 FOURTH AVE. NE
1100 HWY. 15 S.
► JONNY'S RESTAURANT & LOUNGE
► MAIN STREET SPORTS BAR
► VFW POST 906
Action - Motion to reject - Motion to approve and issue licenses
(e) CONSIDERATION OF RECOMMENDATION FROM ADMINISTRATOR AND
DIRECTORS TO HOLD FULL -DAY PLANNING WORKSHOP
Action - Motion to establish date for workshop
0 RESOLUTION NO. 10961
DESIGNATING OFFICIAL NEWSPAPER
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
THAT, The Hutchinson Leader be designated the official
newspaper during the calendar year of 1998 for the City of
Hutchinson.
Adopted by the City Council this 2nd day of January, 1998.
Marlin Torgerson
Mayor
ATTEST:
Gary D. Plotz
City Administrator
r 1
is RESOLUTION NO. 10962
APPOINTING OF LEGAL COUNSEL
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA.
THAT G. Barry Anderson, and the law firm of Arnold, Anderson & Dove, PLLP are hereby
appointed as City Attorneys in exchange for payment of a retainer for a one year period from January
1, 1998 to December 31, 1998. Legal services included within the agreed upon retainer are:
prosecution of police department cases, attendance at all City Council and Planning Commission
meetings, preparation of resolutions and ordinances and other customary legal services in the normal
course of City business.
Matters such as appearances in state or federal district court, economic development legal
work or appearances in the court of appeals or state supreme court will be billed as additional legal
services outside of the retainer agreement and at the usual and customary hourly rate to be approved
by the City Administrator. All such non retainer matters shall be approved by the City Administrator.
In addition, collection actions may be billed on a contingent fee basis and any amounts received for
such actions shall be considered apart from the retainer arrangement described above.
Adopted by the City Council this 2' day of January, 1998.
• CITY OF HUTCIUNSON
Marlin Torgerson, Mayor
Attest:
Gary D. Plotz, City Administrator
0
_,.
Y'� IZ
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
1 A 30 ADMITTED IN TE AND NEW TORN
Mr. Gary D. Plotz
City Administrator
Hutchinson City Center
11 I Hassan Street S.E.
Hutchinson, Mn. 55350
101 PARK PLACE
HUTCHINSON, MINNESOTA 55350 -2563
(320) 587 -7575
FAX (320) 567 -4096
RESIDENT ATTORNEY
G. BARRY ANDERSON
December 10, 1997
Re: Appointment of Attorney Resolution
Dear Gary:
DEC 1 0 1997
Crn OF HUTCHINSON
OF COUNSEL
ARTHUR L. DOTEN
TERRI A. BLOMFELT
5861 CEDAR LAKE ROAD
MINNEAPOLIS, MINNESOTA 55416
(6 12) 545 -9000
FAX (612) 345 -1793
FAX (6121542 -9210
501 SOUTH FOURTH STREET
PRINCETON, MINNESOTA 55371
(612) 369 -2214
FAX(612)389 -5506
Enclosed herewith please find the revised Resolution appointing legal counsel. Some years ago I noted in
the resolution that the firm has been appointed as City Attorney for the purpose of eliminating any challenge •
to the authority of other members of our firm to represent the interests of the City in, for example,
prosecution matters or other court appearances. For some reasons, the 1997 resolution dropped this
language. I have reinstated it.
Second, I have included language that references that economic development work is specifically excluded
from the retainer agreement and I have also provided that as to non retainer matters, they should be
approved by your office to eliminate any surprises or concerns.
It should be noted that most other communities, including for example, Glencoe, charge for prosecution
services on a hourly basis. However, our office is satisfied with the present arrangement and we do not
anticipate requesting a change.
Finally, I do want to note that as of last year, our hourly rate for municipal matters remains at $100 per
hour. I do not anticipate a change in the hourly rate in calendar year 1998.
If you should have any questions regarding any of the foregoing, please do not hesitate to contact me.
Thank you. Best regards.
Very truly
PLLP
GBA:lm
Enclosure
•
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
0
RESOLUTION NO. 10963
APPOINTING CITY ADMINISTRATOR FOR 1998
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
THAT, the following appointment to the indicated executive
office of the City of Hutchinson is made for the period of one
year. Compensation shall be continued as agreed upon by separate
Council action:
City Administrator Gary D. Plotz
Adopted by the City Council this 2nd day of January, 1998.
F - - I
LJ
0
Marlin Torgerson
Mayor
ATTEST:
Gary D. Plotz
City Administrator
• RESOLUTION NO. 10964
DESIGNATION OF DEPOSITORIES OF CITY FUNDS
IN COMMERCIAL BANKS AND INSTITUTIONS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
THAT the following named banks and institutions, 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 January 1, 1998 for one year:
CITIZENS BANK & TRUST COMPANY, HUTCHINSON, MN
THE FIRST BANK OF MINNESOTA, HUTCHINSON, MN
MARQUETTE BANKS OF HUTCHINSON, HUTCHINSON, MN
• FIRST AMERICAN BANK, HUTCHINSON, MN
NORWEST BANK, HUTCHINSON, MN
FIRST BANK, MINNEAPOLIS, MN
FIRST BANK ST. PAUL, ST. PAUL, MN
AMERICAN NATIONAL BANK, ST. PAUL, MN
FIDELITY BANK AND TRUST COMPANY
MERRILL LYNCH, DAIN BOSWORTH, INC.
PIPER JAFFRAY & HOPWOOD, INC.
SHEARSON LEHMAN BROTHERS
n
U
SMITH BARNEY SHEARSON
PRUDENTIAL SECURITIES
r
RESOLUTION
NO.
10964
16
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
THAT the use of these depositories other than those located in
the City of Hutchinson shall be for monies from the proceeds of
bond sales or grant reimbursement monies only. The interest rate
from these institutions must exceed the interest rate of City
financial institutions by more than .5 %.
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 2nd day of January, 1998.
Marlin Torgerson
Mayor
ATTEST:
Gary D. Plotz
City Administrator
i
•
RESOLUTION NO. 10965
DESIGNATION OF DEPOSITORY OF CITY FUNDS
FEDERAL SAVINGS AND LOAN ASSOCIATIONS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
THAT First Federal FSB, Minnesota is hereby designated as an
official depository of and for funds of the City of Hutchinson up
to the maximum designated by law.
Adopted by the City Council this 2nd day of January, 1998.
Marlin Torgerson
Mayor
ATTEST:
Gary D. Plotz
City Administrator
0
RESOLUTION NO. 10966
RESOLUTION APPROVING SECURITIES FOR
COLLATERAL FROM CITIZENS BANK AND TRUST CO.
OF HUTCHINSON, MINNESOTA
WHEREAS, the Citizens Bank & Trust Co. of Hutchinson, a City
Depository, has presented collateral as follows for the City of
Hutchinson and Hutchinson Utilities:
Federal Home Loan
Federal Home Loan
Fed. Home Loan Bank
Fed. Natl. Mort. Assoc
Fed. Natl. Mort. Assoc
Fed. Natl. Mort. Assoc
TOTAL
AMOUNT
RATE
MATURITY
$1,000,000.00
7.89
12 -23
-97
1,000,000.00
6.50
03 -19
-01
500,000.00
5.20
08 -04
-97
1,000,000.00
6.00
01 -12
-98
1,000,000.00
6.75
08 -24
-00
1,000,000.00
6.75
08 -24
-00
$5,500,000.00
• BE IT RESOLVED by the City Council of the City of Hutchinson,
Minnesota that the Treasurer be authorized to accept said
securities as collateral and that said collateral be deposited for
safekeeping.
Adopted by the City Council this 2nd day of January, 1998.
ATTEST:
Gary D. Plotz
City Administrator
Marlin Torgerson
Mayor
0
RESOLUTION NO. 10967
RESOLUTION APPROVING SECURITIES FOR
COLLATERAL FROM MARQUETTE BANK
OF HUTCHINSON, MINNESOTA
C J
WHEREAS, the Marquette Bank of Hutchinson, a City Depository,
has presented collateral as follows for the City of Hutchinson and
Burns Manor Nursing Home:
SECURITY
AMOUNT
MATURITY
Stillwater MN GO IMPR
200,000.00
02 -01 -00
Stillwater MN GO IMPR
100,000.00
02 -01 -02
Issaquah, WA King Co.
100,000.00
12 -01 -04
Hudson NH SCD
125,000.00
12 -15 -03
Superior WI UT GO
100,000.00
12 -01 -06
Centerville, TX ISD
150,000.00
08 -15 -04
Decorah, IA SCH DIS
150,000.00
06 -01 -02
Woodhaven Mich Sch Dist
100,000.00
05 -01 -02
FNMA Pool series 1992
866,453.76
09 -25 -14
FNMA Pool #102248
8,631.78
05 -01 -20
FNMA Pool #226554
487,735.27
08 -01 -03
FT Bend TX ISD
100,000.00
02 -15 -03
TOTAL
$2,487,820.81
BE IT RESOLVED by the City Council of the City of Hutchinson,
Minnesota that the Treasurer be authorized to accept said
securities as collateral and that said collateral be deposited for
safekeeping.
Adopted by the City Council this 2nd day of January, 1998.
Marlin Torgerson
Mayor
ATTEST:
Gary D. Plotz
City Administrator
i _
11
RESOLUTION NO. 10968
RESOLUTION APPROVING SECURITIES FOR COLLATERAL
FROM FIRST FEDERAL fsb
OF HUTCHINSON, MINNESOTA
•
WHEREAS, the First Federal, fsb of Hutchinson, a City
Depository, has presented collateral as follows for the City of
Hutchinson, Hutchinson Utilities, and Hutchinson Community
Hospital:
U.S. Treasury 4890811034
FNMA Rem 12FA #920130001
FHLB F/R Note 4930818001
FNMA 93 -138F #930830004
FNMA 93 -142F #931027007
FHLMC 1535FA 4930628023
TOTAL
$1,000,000.00 02 -15 -16
2,000,000.00 01 -25 -22
2,000,000.00 08 -18 -05
1,000,000.00 08 -25 -23
1,243,908.00 08 -25 -23
31000.000.00 12 -15 -22
$10,243,908.00
BE IT RESOLVED by the City Council of the City of Hutchinson,
Minnesota, that the Treasurer be authorized to accept said
securities as collateral and that said collateral be deposited for
safekeeping.
Adopted by the City Council this 2th day of January, 1998.
Marlin Torgerson
Mayor
ATTEST:
• Gary D. Plotz
City Administrator
i
PUBLISHED IN THE HUTCHINSON LEADER
TUESDAY, DECEMBER 16, 1997 AND
TUESDAY, DECEMBER 23, 1997
• PUBLICATION NO. 5131
NOTICE OF PUBLIC HEARING
ON CREATION OF ECONOMIC DEVELOPMENT AUTHORITY
CITY OF HUTCHINSON, MINNESOTA
NOTICE IS HEREBY GIVEN that the City Council of the City of Hutchinson.
Minnesota (the 'City') will meet on Friday, January 2, 1998, at S- 1 S p.m., in the Council
Chambers at the Hutchinson City Center, 111 Hassan Street, Hutchinson, Minnesota, to conduct
a public heating on the proposal that the City create an Economic Development Authority
('EDAn p ursuan t to the provisions of Minnesota Statutes, Sections 469.090 to 469.108, by the
adoption by the City Council of an enabling resolution (the 'Enabling Resolution' in
compliance with Minnesota Statutes, Section 469.093. Under the Enabling Resolution the EDA
shall have the powers contained in Minnesota Statutes, Sections 469.090 to 469.108, subject to
the limitations contained in the Enabling Resolution. The Enabling Resolution will provide that
the governing body of the EDA will consist of seven commissioners composed of two members
of the City Council and five members of the Hutchinson Community Development Corporation,
with all seven commissioners appointed by the Mayor and confirmed by the City Council.
The Enabling Resolution provides that the following limitations shall apply to the EDA
and its operations:
A.
The sale of bonds by the EDA must be approved by the City Council;
• B.
The EDA must follow the budget process for City departments and shall
comply with all City's policies, ordinances and resolutions, including but
not limited to any such policies, ordinances or resolutions governing
budgeting issues. Any nonbudgeted obligations or commitments by the
EDA exceeding Five Thousand and no /100 Dollars (55,000.00) must be
approved by the City Council, unless otherwise empowered by policy.
C.
Any development or redevelopment actions of the EDA that are not in
conformance with the City Comprehensive Plan and official controls,
including but not limited to zoning ordinance, implementing the
Comprehensive Plan, must be approved by the City Council.
D.
The EDA must submit its plans for development and reevelopment to the
City Council for aproval in accordance with City Planning Procedures and
law.
E.
All policies and guidelines of the EDA must be approved by the City
Council.
F.
No tax may be levied by the EDA without the consent and approval of the
City Council.
• G.
The City Council retains its authority to establish tax increment, economic
development and other financial districts and nothing to the Enabling
Resolution shall be construed tom any way limit the authority of the City •
Council to create and tr r unate such districts.
All persons may appear and be heard at the time and place set forth above, or may
file written comments with the City Administrator prior to the date of the hearing set forth above.
•
-2-
•
•
•
MINNESOTA DEPARTMENT OF
TRADE AND ECONOMIC DEVELOPMENT
500 Metro Square
121 Seventh Place East
Saint Paul. MN 55101 -2146 USA
Date: December 19. 1997
To: Dick Lennes. Director
Hutchinson Community Development Commission
From: Eugene E. Goddard
Office of Regional Initiatives
(612 -296 -7102)
Re: Economic Development Authority
�,tANESOT
Bade & —
Economic
Dt'4FIO
euwnenm cot ry
Devebp=t
After. meeting with you and reviewing the draft Enabling Resolution, I believe that the
recommended structure of the new Economic Development Authority (EDA) would be the best
option. By utilizing both the Hutchinson Community Development Corporation (HCDC) non-
profit corporation and the EDA for their specific functions, you will be able to have a very
effective development program.
As I stated in the meeting there are several reasons why the City of Hutchinson should create an
Economic Development Authority. First, the current level of funding given to the HCDC by the
city for managing economic development activities is not in compliance with current Minnesota
statute. By creating the EDA, the city can fund the EDA at any level it deems appropriate.
Second, the additional powers that an EDA will bring to the table will allow the community more
options and flexibility when working with business expansions.
I would also like to reiterate, that one of the unique aspects about an EDA is the "cross
fertilization" authorization. Cross fertilization allows an EDA to exercise the powers granted to
other government bodies for economic development purposes. This authorization makes an
EDA very flexible in carrying out its duties. However, this authority will effect the existing
Housing and Redevelopment Authority (HRA) in the community. I would recommend that the
EDA be granted the authority to exercise HRA powers, because it needs the specific powers in
this section of statute to truly carry out its duties and be effective.
You do have the option of consolidating the EDA and HRA into one organization or to keep
them separate. If you choose to keep the economic development and housing development
functions separated and to limit any conflict between the two agencies. the management plan for
the EDA can include a statement limiting its application of HRA powers to economic
development purposes only.
If you have any further questions regarding the creation of an EDA please feel free to contact me
at 1 -800- 657 -3858.
4 _/- I
RESOLLTION NO. 10969
• RESOLUTION ENABLING THE CREATION OF AN ECONOMIC DEVELOPMENT
AUTHORITY IN THE CITY OF HUTCHINSON, MINNESOTA
THIS RESOLUTION is made and entered this _ day of January, 1998, by the City Councti of
and for the City of Hutchinson. Minnesota,
RECITALS:
I. The City is authorized, by Minnesota Statutes, Chapter 469 to establish economic development
authority (EDA) to coordinate and administer economic development and redevelopment plans and
programs of the City.
2. The City Council for the City of Hutchinson has found and determined that the encouragement
and financial support of economic development and redevelopment in the City is vital to the orderly
development and financing of the City and in the best interests of the health, safety, prosperity and general
welfare of the residents of the Citv.
3. It is further found and determined by the Citv Council for the City of Hutchinson that the
economic development and redevelopment of the City can best be accomplished by the establishment of
an EDA as authorized by the Act.
4. The City Council has, in accordance with the Act, provided public notice and conducted a
public hearing concerning the establishment of an EDA at which all persons wishing to be heard expressed
their views. The public hearing was held on January 2, 1998.
• NOW THEREFORE BE IT RESOLVED by the City Council for the City of Hutchinson as
follows:
1. The economic development authority of the City of Hutchinson is hereby established. The EDA
is a public body corporate in politic and a political subdivision of the State of Minnesota. The EDA shall
henceforth be known as Hutchinson Community Development Commission. an EDA.
'_. The governing body of the EDA shall consist of seven (7) commissioners composed of two
members of the City Council and five (5) Hutchinson Community Development Corporation members with
all seven (7) commissioners appointed by the Mayor and confirmed by the City Council. The terms of
initial appointments shall be for one (l), two (2), three (3), four (4), five (5) and two (2) members for six
(6) years. Following their expiration of each individual original term, each Board member shall be
appointed for a six (6) year term. The EDA shall have all the powers and duties set forth in law, except
as limited by this resolution.
3. The following limits shall apply to the EDA and its operation:
A. The sale of bonds must be approved by the City Councti;
B. The EDA must follow the budget process for City departments and shall comply with all
City's policies, ordinances and resolutions. including but not limited to anv such policies,
ordinances or resolutions governing budgeting issues. Any non budgeted obligations or
is commitments by the EDA exceeding Five Thousand and not 100 Dollars (S5,000.00) must
be approved by the Citv Council, unless otherwise empowered by poiicy.
C. Any development or redeveiopment actions of the EDA that are not to conformance with
the City Comprehensive Plan and official controls, including but not limited to zoning
ordinance, implementing the Comprehensive Plan, must be approved by the City Council.
D. The EDA must submit its plans for development and redevelopment to the City Council
for approval in accordance with City planning procedures and law
E. All policies and guidelines of the EDA must be approved by the City Council.
F. No tax may be levied by the EDA without the consent and approval of the City Council.
G. The City Council retains its authority to establish tax increment, economic development
and other financial districts and nothing herein shall be construed to in any way limit the
authority of the City Council to create and terminate such districts.
H. The City Council expressly retains all authority to commence and complete eminent
domain actions under Chapter 117 of Minnesota law unless the EDA is specifically
empowered to conduct such proceedings by separate City Council resolution.
Commissioners will be paid One Dollar ($1.00) per year.
4. Nothing in this resolution nor any of the activities of the EDA are to be construed to in any way
impair the obligations of the City under any of its contracts or to affect in any detrimental manner the rights
and privileges of a holder of a bond or other obligation previously issued by the City.
5. Nothing in this resolution prevents or in any way limits the City from modifying this enabling
resolution to impose new or different limitations on the EDA as authorized by the Act or to terminate the
EDA if, in the sole discretion of the City Council, such action is desired.
6. The Mayor, City Administrator and other appropriate City officials are authorized and directed
to take the actions and execute and deliver the documents necessary to give full effect to this enabling
resolution.
1998.
Passed and duly adopted by the City Council of the City of Hutchinson this _ day of January,
CITY OF HUTCHINSON
By,
Marlin Torgerson, Mayor
Attest
Gary D_ Plotz, Citv Administrator •
6
DATE: December 18, 1997
TO: Mayor Marlin Torgerson
FROM: Dick Lennes - HCDC Executive Director
CC: City Council Members, and City Administrator - Gary Plotz
RE: January 2, 1998 City Council meeting and EDA hearing
Dear MayorTorgerson,
January 2, 1998 is the established date for the Economic Development Authority hearing. After the
hearing if their is the acceptance of the Enabling Agreement, another action should also take place.
That would be the appointment of the seven commissioners.
The seven commissioners are to be appointed by the Mayor and confirmed by the City Council.
Five of these members are recommended by HCDC, (their names are in bold below). Please
consider for your appointments the following five individuals that the HCDC membership is recom-
mending.
• Terms
• Council Member
1 Year
• Sheldon Nies
2 Years
• Don Wlaser
3Years
• Council Member
4Years
-Tim Ulrich
5Years
• Bob Windel
6Years
• Jim Haugen
6Years
NOTE: The length of these terms relate to longevity left on the HCDC Board.
The remaining two members on the commission are to be City Council members of which you also
are to appoint and request confirmation of the City Council.
It would be appropriate to obtain this action during the meeting of January 2nd. If everything is
approved that evening by the Council the first commission meeting is scheduled for Friday, January
16th.
Sincere)
ck Lennes
Executive Director
DL /mbs iC�
C7
MEMORANDUM
January 2, 1998
To: Mayor & City Council
From: Marilyn J. Swanson, Administrative Secretary
Subject: ADDITION TO ITEM 54dl —1998 CIGARETTE LICENSES
The following cigarette license payments were received after the City Council packet was
distributed on December 30, 1997:
► Hi Tops Bar & Grill
0
0
► K Mart Corporation
A lchard Nelson, Mayor
Lee A. Mattson, Clerk/Treasurer
Clarice M. Demeyere, Deputy Clerk
6 .1218) 745 -5343
Fax (218) 745 -5344
December 5, 1997
RECEIVED
DEC 2 21997
CIT\ JF HUTCHA80N
0
Mayor Marlin Torgerson
111 Hassan St. SE
Hutchinson, MN 55350
Dear Mayor Torgerson:
The City of Warren would like to extend our appreciation for your contribution to the LMC
Flood Fund. The grant was used to repair sidewalks damaged by the floods. Your help will
always be remembered by our city. Thank you.
Sincerely:
k C ^ l-�
Mayor
Richard Nelson
am
CITY OF WARREN
Robert Miner, Council
James Bjorgaard, Council
126 W. Johnson Ave.
David Maurstad, Council
Warren, NIN 56762 -1197
John Carlson. Council
Floyd Larler, Council
Office of City Clerk
Calvin Melgard, Council
FOR YOUR
INFURMALOR
0
FOR YOUR INFORMATION
TRIAX MIDWEST ASSOCIATES, L.P.
TOM BORDWELL, GOVERNMENT RELATIONS MANAGER
2105 129TM Avenue Northwest, Coon Rapids, Minnesota 55448
Telephone • Facsimile (812) 754 -5070
RECEIVED
December 31, 1997 JAN 9 1998
CITY OF HLITCHiNSON
Dear Friend:
On behalf of Triax Midwest Associates, L.P. d/b /a Triax Cablevision, I would like to wish you a
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As public officials, I am sure you are keenly aware of the need for businesses to operate as
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few years. New technology and new market challenges present cable operators with the task of
providing new products and services at a reasonable cost to the consumer. Triax Cablevision is
meeting this challenge by investing in new technology through system upgrades and rebuilds.
By making improvements in our operations, we will be ready to provide our customers with the
next generation of cable services.
We also need to respond to the market by adjusting our rates. Many of Triax Cablevision's
systems will be receiving rate notices over the next few weeks. The enclosed fact sheet provides
you with information about the factors that help determine rate structures. It is our hope that this
information will provide you with an understanding of this important aspect of the cable industry
and how it affects our customers and your constituents.
We are always interested in expanding our communication efforts. Your ideas and additions to
our mailing list are appreciated and can be faxed to my attention at (612) 896 -3278. My direct
telephone is (612) 754 -5070. Thank you!
Sincerely,
Tom ordwell
Government Relations Manager
0 0359144A1
A Message to Our Friends in Government Regarding Rate Increases: 16
Triax Cablevision continues to work diligently to provide our customers with quality services
and optional new programming choices. We are excited about the completion of the first year of
our ten -year plan to improve our cable systems, and look forward to meeting the challenges in
the ever - changing telecommunications industry.
We understand our market and the importance of listening to the needs of our customers. The
competition to provide increased programming choices and advanced products is very keen.
Triax Cablevision's goal is to provide our customers the highest value possible at an affordable
price.
We do not take rate increases lightly, as we are well aware of the need to balance those increases
with enhancements to our system. We try very hard to make improvements in our operation
without increasing costs. Our management team and employees in the field are continually
finding better and more efficient ways to operate, but several factors affect our ability to control
rates.
As a highly regulated industry, we face costs which other providers, such as direct broadcast
satellite (DBS /satellite) systems, do not. For example, Triax Cablevision collects and returns up
to 5% of its customers' rates directly back to the communities we serve in the form of a franchise
fee. We also pay property leases, pole attachment fees, and other fees which are unique to cable
providers.
However, the biggest cost increase we face is in programming. Programming costs include
the fees we must pay program providers, such as Showtime, TBS, ESPN, etc. Between 1984
and 1993, cable providers industry-wide paid an average yearly increase in programming
costs of 9.2 %. In 1995, that number increased to 13.5 %, and in 1996 another huge increase
to 14 %! In 1998, we expect our programming expenses to increase by an additional 19 %.
Increases in programming fees put incredible pressure on our ability to add choices and
channels for our customers at a reasonable cost.
While rate increases will be necessary in 1998, we believe they are in line with the improvements
we are providing. Triax Cablevision is committed to bringing you the next generation of cable
services and we have made significant investments not only in our capital rebuilding program,
but also in our operational improvements designed to provide better customer service. We
appreciate the opportunity to serve your community and look forward to our continuing
partnership.
0359332.01
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TRIA?X
FOR YOUR INFORMATION
1504 2nd St. S.E., P.O. Box 110, Waseca, MN 56093
5071835 -5975 FAX 507.835.4567
RECEilAiD
December 29, 1997
JAN 2 1998
CITY OF HUTCH:NSON
17J
Mayor Marlin Torgerson
City of Hutchinson
111 Hassan St. SE
Hutchinson MN 55350
Dear Mayor Torgerson:
Effective February 1, 1998, Triax Cablevision is adjusting rates for Premium Services
and our Home Wire Line Plan as outlined on the attached notification letter which has
been mailed to all customers.
These rate changes reflect increases in programming expenses and operating cost
associated with these services.
Mayor Torgerson, on behalf of the entire Triax Cablevision team of employees we
appreciate the opportunity to provide service to the City of Hutchinson. Should you
have any questions regarding this information, please feel free to contact me at any
time at (507) 835 -5975.
Sincerely,
Ada.
Paul R. Pecora
Regional Manager
40
r
"ORTANT CUSTOMER NOTICE
Effective February 1, 1998, Triax Cablevision is adjusting rates for the following premium
services; HBO, Showtime and The Movie Channel will now be $11.95 per month, an increase of
$.95. Our Home Wire Line Plan will be adjusted to $1.25 per month, an increase of $.15 per
month. Cinemax will now be $7.95 per month, a decrease of $3.05, and Disney remains $7.00
per month.
As a result of these changes, Triax Cablevision offers many cost saving premium channel
packages. HBO /Cinemax is only $17.95, Showtime/TMC for only $12.95 per month and
HBO /Cinemax/Disney is only $19.00 per month. Call today for prices on many other discounted
premium channel packages.
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