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cp01-02-1992 cr AGENDA SPECIAL ORGANIZATIONAL MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JANUARY 2, 1992 1. Call Meeting to Order - 4:30 P.M. 2. Installation of Newly Elected Mayor And Council Members 3. RESOLUTIONS AND ORDINANCES (a) Resolution - Designating Official Newspaper (b) Resolution - Appointing Legal Counsel (c) Resolution - Appointing City Administrator for 1992 (d) Resolution - Entering Agreement With Pioneerland Library System Board For Calendar Year 1992 (e) Resolution - Designation of Depositories Of City Funds In Commercial Banks And Institutions (f) Resolution Federal Sav (g) Resolution Collateral Hutchinson, - Designation Of Depository Of City Funds, ings And Loan Associations - Resolution Approving Securities For From Citizens Bank And Trust Co. Of Minnesota (h) Resolution - Resolution Approving Securities For Collateral From Marquette Banks Of Hutchinson, Minnesota (i) Resolution - Resolution Approving Securities For Collateral From First Bank Of Minnesota Of Hutchinson, Minnesota (j) Resolution - Resolution Approving Securities For Collateral From First State Federal Savings & Loan Association Of Hutchinson, Minnesota Action - Motion to reject - Motion to waive readings and adopt Resolutions 4. NEW BUSINESS (a) Selection of Council's Vice - President - John Mlinar Action - Motion to elect I* (b) Designation of Council Representatives: 1. Airport Commission - Paul L. Acklad CITY COUNCIL AGENDA - JA14UARY 2, 1992 • 2. Community Education Advisory Committee - Paul L. Ackland 3. Hospital /Nursing Home Board - Marlin Torgerson 4. Hutchinson Housing, Inc. (HRA) - Don Erickson 5. Library Board - Craig Lenz 6. Park & Recreation Board - John Mlinar 7. Planning Commission - Craig Lenz, 8. Safety Council - Marlin Torgerson 9. Hutchinson Community Development Corp. Board - John Mlinar Action - Motion to ratify Mayor's appointments (c) Appointments to Health Board 1. Dr. Robert Hegrenes 2. Dr. Thomas Kleinkauf 3. Dr. George Smith Action - Motion to ratify Mayor's appointments (d) Appointment of Brad Emans As Fire Chief Action - Motion to approve appointment (e) Discussion of Petro Fund And Agreement with Omar Collis Action - 5. ADJOURNMENT 0 RESOLUTION NO. • DESIGNATING OFFICIAL NEWSPAPER BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT, The Hutchinson Leader be designated the official news- paper during the calendar year of 1992 for the City of Hutchinson. Adopted by the City Council this 2nd day of January, 1992. Paul L. Ackland Mayor • ATTEST: Gary D. Plotz City Administrator 0 RESOLUTION NO. APPOINTING LEGAL COUNSEL BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT G. Barry Anderson be appointed as City Attorney at a retainer fee for a one year period from January 1, 1992 to Decem- ber 31, 1992. Services to be included within the retainer fee are: prosecution of Police Department cases; attendance at all City Council and Planning Commission meetings; preparation of Resolu- tions and Ordinances; negotiating property acquisition and counsel- ing property owners on relocation law and benefits; legal services for all bond issues, except legal services for industrial revenue and tax increment bond /note issues and other customary legal serv- ices in the normal cause of City business. • Matters such as appearance in county, state district, or fed- eral district court will be billed separately, with an annual ceil- ing for such legal expenditures as determined by the City Council. State Supreme Court and Court of Appeals will be billed as extra legal services outside of the retainer fee and aforementioned ceil- • ing. Legal action initiated to collect obligations owing the City or its agencies may be billed on a contingent fee basis and any amounts received for such actions shall not be included in any aforementioned ceiling. Adopted by the City Council this 2nd day of January, 1992. Paul L. Ackland Mayor ATTEST: Gary D. Plotz City Administrator CJ RESOLUTION NO. • APPOINTING CITY ADMINISTRATOR FOR 1992 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, 1992. ATTEST: Gary D. Plotz City Administrator • Paul L. Ackland Mayor RESOLUTION NO. ENTERING AGREEMENT WITH PIONEERLAND LIBRARY SYSTEM FOR CALENDAR YEAR 1992 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT the City of Hutchinson will enter into agreement with the Pioneerland Library System Board for a period of one year beginning January 1, 1992. Adopted by the City Council this 2nd day of January, 1992. Paul L. Ackland Mayor C ATTEST: Gary D. Plotz City Administrator C, RESOLUTION NO. • 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 2, 1992 for one year: CITIZENS BANK & TRUST COMPANY, HUTCHINSON, MN THE FIRST BANK OF MINNESOTA, HUTCHINSON, MN MARQUETTE BANKS OF HUTCHINSON, HUTCHINSON, MN THE FIRST NATIONAL BANK OF MINNEAPOLIS, MINNEAPOLIS, MN NORTHWESTERN NATIONAL BANK OF MINNEAPOLIS, MINNEAPOLIS, MN • FIRST BANK ST. PAUL AMERICAN NATIONAL BANK OF ST. PAUL NATIONAL CITY BANK OF MINNEAPOLIS FIDELITY BANK AND TRUST COMPANY MARQUETTE NATIONAL BANK OF MINNEAPOLIS MERRILL LYNCH, DAIN BOSWORTH, INC. PIPER JAFFRAY & HOPWOOD, INC. SHEARSON LEHMAN BROTHERS 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 accord- ing 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 shall be for monies from the proceeds of bond sales or grant reimbursement monies only. The RESOLUTION NO. interest rate from these institutions must exceed the interest rate of City financial institutions by more than .005. BE IT FURTHER RESOLVED: THAT the City Administrator of the City of Hutchinson is here- by authorized and directed to deposit in said banks and institu- tions 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 Adminis- trator and each of the banks and institutions so designated. Adopted by the City Council this 2nd day of January, 1992. Paul L. Ackland • Mayor ATTEST: Gary D. Plotz City Administrator • RESOLUTION NO. • 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 State Federal Savings and Loan Association, Hutch- inson, Minnesota and Midwest Federal Savings and Loan, Minneapolis, Minnesota are 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, 1992. Paul L. Ackland • Mayor ATTEST: Gary D. Plotz City Administrator • i RESOLUTION NO. • L� • 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: RECEIPT DESCRIPTION RATE MATURITY AMOUNT U.S. Treasury Note 9.125 02 -15 -92 $ 500,000.00 U.S. Treasury Note 9.125 02 -15 -92 500,000.00 U.S. Treasury Note 9.000 05 -15 -92 500,000.00 U.S. Treasury Note 8.250 06 -30 -92 500,000.00 U.S. Treasury Note 7.750 10 -31 -92 500,000.00 U.S. Treasury Note 7.000 01 -31 -93 500,000.00 U.S. Treasury Note 8.250 02 -15 -93 500,000.00 U.S. Treasury Note 8.250 02 -15 -93 500,000.00 U.S. Treasury Note 8.375 02 -15 -93 500,000.00 U.S. Treasury Note 7.250 07 -15 -93 500,000.00 U.S. Treasury Note 8.750 08 -15 -93 500,000.00 U.S. Treasury Note 7.125 10 -15 -93 500,000.00 U.S. Treasury Note 7.750 11 -15 -93 1,000,000.00 U.S. Treasury Note 7.750 11 -15 -93 500,000.00 U.S. Treasury Note 8.875 02 -15 -94 500,000.00 Fed. Home Loan Banks 8.375 07 -27 -92 500,000.00 Fed. Home Loan Banks 8.300 01 -25 -93 500,000.00 Fed. Home Loan Banks 8.100 03 -25 -93 500,000.00 Fed. Home Loan Banks 7.550 04 -26 -93 500,000.00 Fed. Home Loan Banks 7.550 04 -26 -93 500,000.00 Fed. Home Loan Banks 7.750 07 -26 -93 500,000.00 Fed. Home Loan Banks 8.180 08 -25 -93 500,000.00 Fed. Farm Credit Bank. 8.960 04 -18 -94 500,000.00 Fed. Natl. Mtg. Assn. 8.200 11 -10 -92 500,000.00 Fed. Natl. Mtg. Assn. 7.900 03 -10 -93 500,000.00 Fed. Natl. Mtg. Assn. 7.375 12 -10 -93 1,000,000.00 Arlington MN Improv. 8.500 01 -01 -95 Cambridge, MN G.O. 8.500 03 -01 -95 Hutchinson, MN 8.000 03 -01 -96 New Hope, MN G.O. 9.750 02 -01 -96 Owatonna,.MN ISD #761 6.600 02 -01 -97 TOTAL 50,000.00 50,000.00 80,000.00 100,000.00 100,000.00 $14,380,000.00 • BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota that the Treasurer be authorized to accept said securi- ties as collateral and that said collateral be deposited for safe- keeping. Adopted by the City Council this 2nd day of January, 1992. Paul L. Ackland Mayor ATTEST: Gary D. Plotz City Administrator • • RESOLUTION NO. • RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM MARQUETTE BANKS OF HUTCHINSON, MINNESOTA WHEREAS, the Marquette Banks of Hutchinson, a City Depository, has presented collateral as follows for the City of Hutchinson and Burns Manor Nursing Home: PLEDGE DESCRIPTION MATURITY AMOUNT 492095 FHLB 92C 4 -27 -92 $ 400,000.00 503923 U.S. Treasury Note N92 6 -30 -92 105,000.00 U.S. Treasury Note E93 1 -15 -93 200,000.00 587055 U.S. Treasury Note T93 5 -15 -93 500,000.00 592249 U.S. Treasury Note N94 6 -30 -94 500,000.00 402729 Denver Co. Airport Ref. 12 -01 -2000 100,000.00 • Rev. Bond 537090 Burnsville MN GO UT BQ 2 -01 -2001 125,000.00 TOTAL $1,930,000.00 BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota that the Treasurer be authorized to accept said securi- ties as collateral and that said collateral be deposited for safe- keeping. Adopted by the City Council this 2nd day of January, 1992. Paul L. Ackland Mayor • ATTEST: Gary D. Plotz City Administrator • RESOLUTION NO. RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM FIRST BANK OF MINNESOTA OF HUTCHINSON, MINNESOTA WHEREAS, the First Bank of Minnesota of Hutchinson, a City depository, has presented as collateral $100,074.04 as follows: DESCRIPTION RATE MATURITY AMOUNT Fed. Home Loan Bank 10.0 03 -25 -92 $100,074.04 BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, that the Treasurer be authorized to accept said securi- ties as collateral and that said collateral be deposited for safe- keeping. Adopted by the City Council this 2nd day of January, 1992. • Paul L. Ackland Mayor ATTEST: Gary D. Plotz City Administrator 0 RESOLUTION NO. • RESOLUTION APPROVING SECURITIES FOR COLLATERAL FROM FIRST STATE FEDERAL SAVINGS & LOAN ASSOCIATION OF HUTCHINSON, MINNESOTA WHEREAS, the First State Federal Savings & Loan Association of Hutchinson, a City Depository, has presented collateral as follows for the City of Hutchinson, Hutchinson Utilities, and Hutchinson Community Hospital: DESCRIPTION MATURITY AMOUNT U.S. Treasury 2 -15 -16 $1,000,000.00 U.S. Treasury 3 -19 -92 1,980,000.00 U.S. Treasury 3 -26 -92 5,945,625.00 FNMA 155 FB 11 -25 -21 1,550,000.00 TOTAL $10,475,625,00 • 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, 1992. Paul L. Ackland Mayor ATTEST: Gary D. Plotz City Administrator • r- � December 5, 1991 AAA OLD Sc MCD IVELL ATTORNEYS AT T� < 101 PARK PLACE �� v HUTCHINSON, MINN - ] TA 0 -2563 (612) 587 - 757 FAX ( 612) 587 6 RESIDENT ATT RNEY G. BARRY I I ERSO VV r Mr. Gary D. Plotz City Administrator 37 Washington Avenue West / Hutchinson, Mn. 55350 Re: Omar Collis MPC4 Site ID. No. Leak -2716 Our File No. 3244 -89031 (Collis subfile) Dear Gary: OF COUNSEL CHARLES R. CARMICHAEL WILLIAM W. CAMERON 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545-9000 MN TOLL FREE 800 FAX (61:!) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 389 -2214 FAX (612) 389-5506 RE C!7 v ��E'Z cZ ti I thought I would update you on the status of our Petro Fund • application, as well as my recent conference with Omar Collis. Enclosed is a copy of correspondence from the State of Minnesota dated November 4, 1991 regarding our application and announcing the meeting which was held on November 19, 1991. I have not received official notification of the results of the hearing, but I did discuss the matter with Jan Matheson, and while she did not recall the specifics, she did not recall that any problems were presented by the Hutchinson application. The total amount of our application was $73,724.80 and as you can see, the recommendation is for the full amount of the application, rather than the 90% figure previously discussed. I do want to direct your attention to the agreement between Mr. Collis and the City of Hutchinson. Under paragraph 2 of that agreement, the City is obligated to pay Mr. Collis the sum of $123,500 less the responsible party's share of environmental clean up as required by the MPCA. Under paragraph 3 of the agreement, 20% of the purchase price was retained and escrowed because of potential clean up costs. I believe the amount escrowed was $24,700. However, I believe $10,000 was released to Mr. Collis because the tanks were successfully removed leaving a remaining balance of $14,700 plus • interest at the rate of 7% from and after the date of closing which was, I believe, January 11, 1991. CERTIFIED AS A CIVIL TRI_AL SPECIALIST BY THE MINNESOTA STATE B.AR ASSOCIATION ` "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION n `- -X l It DAVID B. ARNOLD GARY D. McDOWELL • STEVEN A. ANDERSON G. BARRY A N STEVEN S. HOGE LAURA K. FRETLAND D&' ID A. BRUEGGEMA.NN PAUL D. DOVE JOSEPH DI. PAIEMENT JAMES UTLEY JULIA A. CHRISTIANS RICHARD G. McGEE TIMOTHY W. PA1 December 5, 1991 AAA OLD Sc MCD IVELL ATTORNEYS AT T� < 101 PARK PLACE �� v HUTCHINSON, MINN - ] TA 0 -2563 (612) 587 - 757 FAX ( 612) 587 6 RESIDENT ATT RNEY G. BARRY I I ERSO VV r Mr. Gary D. Plotz City Administrator 37 Washington Avenue West / Hutchinson, Mn. 55350 Re: Omar Collis MPC4 Site ID. No. Leak -2716 Our File No. 3244 -89031 (Collis subfile) Dear Gary: OF COUNSEL CHARLES R. CARMICHAEL WILLIAM W. CAMERON 5881 CEDAR LAKE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 545-9000 MN TOLL FREE 800 FAX (61:!) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 389 -2214 FAX (612) 389-5506 RE C!7 v ��E'Z cZ ti I thought I would update you on the status of our Petro Fund • application, as well as my recent conference with Omar Collis. Enclosed is a copy of correspondence from the State of Minnesota dated November 4, 1991 regarding our application and announcing the meeting which was held on November 19, 1991. I have not received official notification of the results of the hearing, but I did discuss the matter with Jan Matheson, and while she did not recall the specifics, she did not recall that any problems were presented by the Hutchinson application. The total amount of our application was $73,724.80 and as you can see, the recommendation is for the full amount of the application, rather than the 90% figure previously discussed. I do want to direct your attention to the agreement between Mr. Collis and the City of Hutchinson. Under paragraph 2 of that agreement, the City is obligated to pay Mr. Collis the sum of $123,500 less the responsible party's share of environmental clean up as required by the MPCA. Under paragraph 3 of the agreement, 20% of the purchase price was retained and escrowed because of potential clean up costs. I believe the amount escrowed was $24,700. However, I believe $10,000 was released to Mr. Collis because the tanks were successfully removed leaving a remaining balance of $14,700 plus • interest at the rate of 7% from and after the date of closing which was, I believe, January 11, 1991. CERTIFIED AS A CIVIL TRI_AL SPECIALIST BY THE MINNESOTA STATE B.AR ASSOCIATION ` "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION n `- -X l It Mr. Gary D. Plotz December 5, 1991 Page 2 At the time of our application, which was June of 1991, I show a total amount billed to the City of Hutchinson by Twin City Testing of $87,205.31, which would include all invoices through April 30, 1991. Assuming that the Petro Fund offers 100% reimbursement rather than 90% reimbursement, the total amount to be paid (probably within 90 days of November 19) will be $73,724.80. This leaves a remaining balance of $13,480.51 which was paid by the City. However, as Twin City Testing pointed out in its analysis of its bills, many of these charges related to environmental site work generally and were not necessarily associated with the Petro Fund problems specifically. I mention all of these issues because we will need to decide how we are going to treat Mr. Collis under the terms of the Option Agreement. I would recommend that Ken work up an analysis showing total bills receive , payments made and the names o ndors -- f environmental work to date. I w ill need this information anay or su Sequent Petro Fund applications, and I would suggest that this matter be placed on the agenda for the last meeting in December, because Mr. Collis will be expecting payment around the first of the year and we should know at that time the final outcome -�� of discussions with the Petro Fund. If you have any questions regarding this matter, please contact me. Thank you. Best regards. Very t�y,, y - 1 4 - %-Wi G.✓Ba -- fry Ahderson GBA:lm Enclosure • • ;r1 OFFICE OF THE COMMISSIONER • November 4, 1991 STATE OF MINNESOTA DEPARTMENT OF COMMERCE G. Barry Anderson City of Hutchinson 37 Washington Avenue WEst Hutchinson, MN 55350 Re: Leak 12801 Dear Mr. Anderson: The Petrofund Board will consider your reimbursemen' next meeting which will take place on November 19 a.m. The meeting will be held in Room 10, State O 100 Constitution Avenue, St. Paul, MN. 133 EAST 7th STREET ST. PAUL, MN 55101 612/296-4026 FAX: 612/296 -4328 C' request at its 1991, at 8 fice Building, Reimbursement of $73,724.80 will be recommended to the Board. You will be notified, in writing, within ten days of the Board's decision. We are enclosing for your review a copy of the MPCA Site Report. The Board will base its decision on your application, your written correspondence and on the MPCA Site Report. Your attendance at the • Petrofund Board meeting is permitted but is not required; if you wish to speak at the Board meeting, please contact the undersigned prior to the meeting. Please note that the Board may limit the time allowed for speaking. If you have questions, please contact the undersigned. Very truly yours, a Matheson Commerce Consumer Liaison 612/296 -2990 JKM:cjs enclosure AN EQUAL OPPORTUNITY EMPLOYER REMOVAL � APPLICATION FORJH2� ----------------- P ERMIT - TO the ....... ....CITY COUNCIL .............................. ............................... I .......................... I ........................................ . 1z ....... ...... • 't 57 C\j f ....................................................... o f ............................................................................................... L9 .... 11 Unty 0 o the ........... UTY . LEOD 'gk' to, I ................. . . .............................. .' State of Minnesota: The undersigned owner whose name and address is .... . ........ ....... .. .. ............ ...... I . ....................... . .... ...... ........... l ies for a permit to ... ................... .... I .......... acl ' I PLOW AND .... REMOVE SNO WTH ., .......... �her app .. ... ... ':�� ..... 1 ..... . . . ...... ...................................................................... I ............. ......... upon that certain tract of land described as follows: Lot ............................................... ; Block .................... ............... . — .... plator addition ................ ............ ......................... ... ..... .... .... ; address ... ............................................................................ ... .. which i8 of the following size and area; width ........... length ............... feet; WITHIN THE CITY LIMITS area ..... .. --- I — .......... ...... I ......................... I .................. .................... ................... and hereby agrees that, in case such permit is granted, that all work which shall be done and all materials which Shall be u.8ed shall comply with the plans and specifications therefor herewith submitted and with all the ordinances of said .......... C.ITY ... OF ... H.UTCH.. I.... N.SON .. .. .............................. ......................................................... ... ........ applicable thereto. .applicant further agrees to pay fees or aasemmenU at the time and in the amounts Specified as follows: .................................................................. ........................................................................................................................ ...... ... ........ .. I ..................... ................................................................................................................................................... ......... ............. ...... --.- . . ........ ...�� .. ............................... ...... .. ........ Owner • ABNOLD & MCDOWELL ATTORNEYS AT LAW 101 PARR PLACE H UTCHINSON,IMINNESOTA 55350-2563 OF COUNSEL WILLIAM W. CAMERON RAYMOND C. LALLIER PAUL M. BEGICH CHARLES R.CARMICHAEL" (612) 567 -7575 FAX (612) 587 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON ,5 l 5881 CEDAR LAHE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 5459000 MN TOLL FREE 800-343-4545 FAX ( 612 ) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 389-2214 FAX (612) 389-5506 Gary D. Plotz Hutchinson City Administrator 37 Washington Avenue West Hutchinson, Mn. 55350 Re: Asbestos Study Our File No. 3244 -91046 Dear Gary: • I am writing to you with regard to the asbestos research presently being conducted by Twin City Testing in connection with the Phase II Downtown Redevelopment Project. On Tuesday, December 31, 1991, I did have a telephone conversation with Eric Simonson, who is the environmental engineer conducting the asbestos survey. He indicated to me that to do an a sbestos inspection of the More 4 b uilding would cost approximately $1,500 and that an additional $500 w ould be required to conduct such a survey o_f the Wige building. As you may recall, a review of the testing that was done in connec- tion with Phase I revealed that while an environmental transfer study was done of the Wigen block, no asbestos work was done on that building. (As I recall, we hired PACE Laboratories to do the asbestos work and since it was not necessary to do any research relative to the Wigen block at that time, they did not complete a study of the Wigen building). In any event, it appears to me that this kind of testing will be required and I would recommend that the Council go ahead and authorize the additional work to be performed by Twin City Testing. While a case could be made to hold up on the testing of the More 4 building, I think we need to know whether or not we will have a problem in remodeling of that structure before we go ahead with the • executed development agreement with Erickson's Diversified because, obviously, if there is a problem with that building, that may affect our willingness to go ahead with the project as a whole. 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 DAVID B. ARNOLD • GARY D. McDOWELL STEVEN A. ANDERSON G. BARRY ANDERSON STEVEN S. HOGE LAURA H. FRETLAND DAVID A. BRUEGGEMANN PAUL D. DOVE JOSEPH M. PAIEMENT JAMES UTLEY RICHARD G. McGEE TIMOTHY W. FAFINSHI MARY E. HORROCHS CATHRYN D. REHER January 2, 1992 ABNOLD & MCDOWELL ATTORNEYS AT LAW 101 PARR PLACE H UTCHINSON,IMINNESOTA 55350-2563 OF COUNSEL WILLIAM W. CAMERON RAYMOND C. LALLIER PAUL M. BEGICH CHARLES R.CARMICHAEL" (612) 567 -7575 FAX (612) 587 -4096 RESIDENT ATTORNEY G. BARRY ANDERSON ,5 l 5881 CEDAR LAHE ROAD MINNEAPOLIS, MINNESOTA 55416 (612) 5459000 MN TOLL FREE 800-343-4545 FAX ( 612 ) 545 -1793 501 SOUTH FOURTH STREET PRINCETON, MINNESOTA 55371 (612) 389-2214 FAX (612) 389-5506 Gary D. Plotz Hutchinson City Administrator 37 Washington Avenue West Hutchinson, Mn. 55350 Re: Asbestos Study Our File No. 3244 -91046 Dear Gary: • I am writing to you with regard to the asbestos research presently being conducted by Twin City Testing in connection with the Phase II Downtown Redevelopment Project. On Tuesday, December 31, 1991, I did have a telephone conversation with Eric Simonson, who is the environmental engineer conducting the asbestos survey. He indicated to me that to do an a sbestos inspection of the More 4 b uilding would cost approximately $1,500 and that an additional $500 w ould be required to conduct such a survey o_f the Wige building. As you may recall, a review of the testing that was done in connec- tion with Phase I revealed that while an environmental transfer study was done of the Wigen block, no asbestos work was done on that building. (As I recall, we hired PACE Laboratories to do the asbestos work and since it was not necessary to do any research relative to the Wigen block at that time, they did not complete a study of the Wigen building). In any event, it appears to me that this kind of testing will be required and I would recommend that the Council go ahead and authorize the additional work to be performed by Twin City Testing. While a case could be made to hold up on the testing of the More 4 building, I think we need to know whether or not we will have a problem in remodeling of that structure before we go ahead with the • executed development agreement with Erickson's Diversified because, obviously, if there is a problem with that building, that may affect our willingness to go ahead with the project as a whole. 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 Gary D. Plotz January 2, 1992 Page 2 Thank you. Best personal regards. Very truly yours, ARNOLD & OW LL G. Barry Anderson GBA:mb • • • • r1 LJ SPECIAL COUNCIL MEETING DECEMBER 30, 1991 WATER & SEWER FUND *Withhold Tax Acct CENTRAL GARAGE *Withhold Tax Acct GENERAL FUND *Youth Center *DNR *DNR *Withhold Tax Acct *MN Dept of Revenue *Mark Kitchenmaster *US Postmaster *DNR *DNR *PERA -DCP *DNR *DNR *US Postmaster employer contribution employer contribution transfer of funds registration fees title registrations employer contribution Nov arena sales tax mileage & phone calls 1991 bulk rate permit registration fees title registration fees employer contribution title registrations registration fees Jan newsletter postage TOTAL BOND FUNDS --------------------------- --------------------------- YOUTH CENTER *Withhold Tax Acct *Jane Meyer 1980 TAX INC DEBT SERV *ISD #423 1990 TAX INC CONST • *Myron Wigen *Michael Commerford *Gary Peterson *B. & J. Menton employer contribution DJ TOTAL tax inc adjustment option to purchase debt retirement relocation expense option to purchase TOTAL 746.85 10,500.00 1,225.00 29.00 5,022.43 487.84 637.84 75.00 833.00 58.00 24.84 29.00 906.00 207.28 $20,035.23 76.91 150.00 $226.91 7,483.00 500.00 10,000.00 4,998.00 100.00 $15,598.00 �rQ' LIQUOR FUND • Johnson Bros wine & liquor 11,874.54 Griggs Cooper wine & liquor 10,319.86 Ed Phillips & Sons wine & liquor 14,178.79 Quality Wines wine & liquor 13,242.59 City of Hutchinson lottery sales 492.00 City of Hutchinson fund transfer 55,000.00 City of Hutchinson lottery sales 602.00 Withhold Tax Acct employer contribution 322.01 PERA employer contribution 173.11 MN Dept of Revenue Nov sales tax 11,198.78 City of Hutch lottery sales 724.00 JC Penney smocks 380.37 City of Hutch due to general fund 9,379.32 City of Hutch lottery sales 102.00 Northland Bev supplies 316.15 Floor Care ice melt 40.50 Junker refuse charges 166.77 Coast to Coast supplies 93.10 Diamond Ice ice 133.50 TOTAL $128,739.39 0 0 • 12/23/91 HUTCHINSON UTILIO COMMISSION BALANCE SHEET NOVEMBER 30, 1991 ASSETS UTILITY PLANT — AT COST LAND & LAND RIGHTS DEPRECIARL_E UTILITY F'LANT TOTAL UTILITY PLANT LESS ACCUMULATED DEPRECIATION TOTAL ACCUMULATED DEPRECIATION CONSTRUCTION IN PROGRESS TOTAL CONSTRUCTION IN PROGRESS TOTAL UTILITY PLANT DEPREC VALUE RESTRICTED FUNDS & ACCOUNTS FUTURE EXPANSION & DEVELOPMENT MEDICAL INSURANCE POND 6 INTEREST PAYMENT 1986 1986 BOND RESERVE CATASTROPHIC FAILURE FUND TOTAL RESTRICTED FUNDS 6 ACCOUNTS CURRENT h ACCRUED ASSETS CASH IN BANK INVESTMENTS 6 SAVINGS ACCOUNTS ACCOUNTS RECEIVABLE INVENTORIES P'REP'AID INSURANCE ACCRUED INTEREST RECEIVABLE TREASURY BILL DISCOUNT TOTAL CURRENT 6 ACCRUED ASSETS DEFERRED CHARGE BOND DISCOUNT 1986 CLEARING ACCOUNT TOTAL DEFERRED CHARGE TOTAL ASSETS PAGE i • FOR YOUR INFORMATION it ar * it 'i OTAL * * + r 790,012.25 5,912,930.79 6,702,943.04 (14,iS7,156.34) (14,i87,i56.3A) 1,280,694.24 l,2BO,694.24 13,796,480.94 6,353,000.00 100,000.00 4$,305.81 392,000.00 — 750,000.00 7,638,305.81 5,023,139.80 80,077.61 1,353,887.26 546,760.72 58,277.14 117,821.88 (60,980.95) 7,1iB,983.46 60,661.93 421.28 61,083.21 28,614,853.42 12/23/91 HUTCHINSON UTILITIES COMMISSION PAGE 2 BALANCE SHEET NOVEMBER 30, 1991 * * * * TOTAL MUNICIPAL EQUITY h LIABILITIES MUNICIPAL EQUITY MUNICIPAL EQUITY 3,163,216.53 UNAPPROPRIATED RETAINED EARNINGS 2,602,804.86 CONTRIBUTION TO CITY (412,500.00) TOTAL MUNICIPAL EQUITY 25,353,521.39 LONG TERM LIABILITIES -NET OF CURRENT MATURITIES r 1986 BONDS 2,165,000.00 TOTAL LONG TERM LIABILITIES 2,165,000.00 CONSTR CONTRACTS & ACCTS PAY RETAIN TOTAL CONSTRUCTION & ACCTS PAY .00 CURRENT h ACCRUED LIABILITIES NOTE PAYABLE - LEASE PAYABLE 1,832.85 ACCOUNTS PAYABLE 827,620.54 INTEREST ACCRUED 67.50 ACCRUED PAYROLL 54,902.47 ACCRUED VACATION PAYABLE 107,201.24 ACCRUED MEDICAL FUND 52,271.93 CUSTOMER DEPOSITS 52,647.86 OTHER CURRENT 6 ACCRUED LIABILITIES (212.36) TOTAL CURRENT & ACCRUED LIAR 1,096,332.03 TOTAL MUNICIPAL EQUITY & LIAR 28,614,653.42 l • 12/23/91 HUTCHINSON UTILI COMMISSION HUTCHINSON, AESOTA STATEMENT OF INCOME 6 EXPENSES NOVEMBER 30, 1991 PREVIOUS CURRENT YEAR TO DATE YEAR TO DATE INCOME STATEMENT OPERATING REVENUE SALES — ELECTRIC ENERGY SALES FOR RESALE NET INCOME FROM OTHER SOURCES SECURITY LIGHTS POLE RENTAL SALES — GAS TOTAL OPERATING REVENUE OPERATING EXPENSES PRODUCTION OPERATION PRODUCTION MAINTENANCE PURCHASED POWER TRANSMISSION OPERATION TRANSMISSION MAINTENANCE ELECTRIC DISTRIBUTION OPERATION ELECTRIC DISTRIBUTION MAINTENANCE MFG GAS PRODUCTION OPERATION MFG GAS PRODUCTION MAINTENANCE PURCHASED GAS EXPENSE GAS DISTRIBUTION OPERATION GAS DISTRIBUTION MAINTENANCE CUSTOMER EXPENSES CUSTOMER SERVICES ADMINISTRATIVE & GENERAL EXPENSES DEPRECIATION TOTAL OPERATING EXPENSES OPERATING INCOME OTHER INCOME OTHER — NET INTEREST INCOME MISC INCOME TOTAL OTHER INCOME OTHER EXPENSES MISC EXPENSES INTEREST EXPENSE TOTAL OTHER EXPENSES NON— OPERATING INCOME NET INCOME PAGE 1 • FOR YOUR INFORMATION BUDGETED BUDGET ANNUAL YEAR TO DATE DEVIATION BUDGET 8,665,448.15 8,730,331.73 8,492,297.50 238,034.23 9,153,250.00 3,267.26 57,2iO.00 .00 57,210.00 .00 48,272.51 53,625.07 32,913.80 20,711.27 38,461.54 12,296.00 11,764.50 13,800.00 (2,035.50) 15,000.00 3,83.50 1,564.50 1 564.50 4,000.00 3,6'6,932.74 4,018,379.40 3 259,179.40 4,330,000.00 12,360,049.16 12,872,875.20 12,299,211.30 573,663.90 13,540,711.54 507,885.94 574,77 500,260.26 (74,514.77) 537,588.00 58,411.66 143,858.19 129,701.00 (14,157.19) 314,050.00 4,434,ii8.79 4,388,340.65 4,048,493.54 (339,847.11) 4,448,894.00 1,762.54 910.74 1,100.00 189.26 3,600.00 30,100.44 44,241.71 18,000.00 (26,41.71) 18,000.00 143,807.32 146,168.73 138,324.20 (7,844.53) 153,190.00 90,003.95 110,119.42 94.548.00 (15,571.42) 106,600.00 1,707.10 3,029.21 1,642.00 (1,387.21) 3,200.00 .00 850.31 .00 (850.31) 500.00 3,135,627.65 3,516,362.98 3,203,200.00 (313,162.98) 3,960,000.00 181,44.16 171,199.56 171,361.20 161.64 193,870.00 19,467.05 27,283.ii 27,728.00 444.89 55,200.00 113,695.96 115,986.97 110,728.08 (5,258.89) 128,154.00 16,739.54 16,221.76 17,298.00 1,076.24 18,600.00 824,385.30 929,748.26 889,400.86 (40,347.40) 982,318.00 700,700.00 733,975.00 800,700.00 66,725.00 800,700.00 10,259,657.40 10,93,071.63 10,152,485.14 (770,586.49) 11,724,464.00 2,100,391.76 1,949,803.57 2,146,726.16 (196,922.59) i,816,247.54 119,695.37 60,263.56 121,50.00 (60,986.44) 123,500.00 606,735.77 741,108.73 648,524.16 92,584.57 876,384.00 47,180.03 5,706.44 3,990.00 1,716.44 10,500.00 773,811.17 807,078.73 773,764.16 33,314.57 1,010,384.00 105,811.01 24,445.89 100,040.00 75,594.11 116,000.00 150,523.15 129,631.55 127,384.64 (2,246.91) 138,746.00 256,334.16 154,077.44 227,424.64 73,347.20 254,748.00 517,477.01 653,001.29 546o339.52 106,661.77 755,636.00 2,617,868.77 2,602,804.86 2,693,065.68 (90,260.82) 2,571,883.54 n LJ • Hutchinson Community Development Corporation Board of Directors Meeting 7:00 AM, Friday, December 6,1991 Chamber Meeting Room Directors Present James Bullard - Chairman Phil Graves Larry Fraser William Craig John Mlinar C FOR YOUR INFORMATION Others Present John Bernhagen - Exec Dir Kathleen Skarvan - Chamber Pres Minutes Meeting was called to order by Chairman Bullard. Motion by Mlinar, seconded by Craig and carried to approve the minutes of November 6, 1991. Motion by Graves, seconded by Fraser and carried to approve the Treasurers report. Bernhagen reported on the activities of.the Public Information committee. The "Planning Your Future Business" seminar is scheduled for January 23 - February 20, 1992. The committee has planned for an upgrade of a very successful seminar last year. The advertising program is underway and has shown some response. One business proposal presented to John Bernhagen and Jim Young is being reviewed. Bill Craig and Larry Fraser reviewed a program on which the Business Location and Contact committee is working. A program of work is being developed as well as reviewing the committee's mission statement. The committee members will be individually active in the Business Retention and Expansion Survey. Bernhagen reported on a meeting he attended along with Jim Young on a business seeking a sight to do newsprint shredding to be used for insulation and mulch for grass seeding. Finance committee members are reviewing this further. Bullard reported the reports due from New Dimension Plating are being completed. There is continued progress on Phase II. Bernhagen, Bullard and Haukos have been attending meetings along with the other Acquisition committee members. Bernhagen suggested the city apply for a state grant to clean up the apartment units east of Town & Country Tire and possible removal of two or three rental homes in the flood plain by Tartan Park. We asked for other suggestions along this line. He • and Connie Mangan will be preparing their preliminary application. There being no further business the meeting was adjourned. JB /tv 0 • 0 Hutchinson Community Development Corporation Board of Directors Tuesday, December 17, 1991 James Bullard Home Directors Present James Bullard - Chairman John Mlinar Larry Graf Larry Fraser Other Present John Bernhagen - Exec Dir Minutes Chairman Bullard called the meeting to order. Motion by Graf, seconded by Mlinar, to authorize the President or Vice President to • sign Option to Purchase agreements that are fully assignable from Hutchinson Community Development Corporation to the City of Hutchinson and /or to any redevelopment authority established by the City of Hutchinson for property located in the City of Hutchinson in Block 47 North. (Authorization was given on July 6, 1990 for Blocks 43, 44, 45, 48 & 49.) In addition it is understood these options have been authorized by the Mayor's Acquisition committee and options will be subsequently paid for by the Phase I and II downtown development project funds. Motion carried. There being no further business the meeting was adjourned. JB /tv 0 AB` OLD & McDONVELL DAVID B. ARNOLD ATTORNEYS AT LAW OF COUNSEL • GARY D. Mc DOWELL STEVEN A. ANDERSON I01 PARK PLACE WILLIAM W. CAMERON RAYMOND C. LAS. LIER 0. BARRY ANDERSON 11UTCHINSOti, MINNESOTA 53:350 PAUL M. BEGICH STEVEN S. HOGS CHARLES R.CARMICHAEL" (612) 587-7575 LAURA K. FRETLA.ND DAVID A. BRCEGGEMANN FAX (612) 587 -4096 5881 CEDAR LAKE ROAD PALL D. DOVE" MINNEAPOLIS, MINNESOTA 55416 (612) 545-9000 JOSEPH M. PAIEMENT RESIDENT ATTORNEY MN TOLL FREE 800-343-4545 JAMES UTLEY G. BARRY ANDERSON PAX(612)545-1793 RICHARD O. McGEE TIMOTHY W. PAFINSKI 501 SOUTH FOURTH STREET MARY E. HORROCKS PRINCETON, MINNESOTA 55371 (612) 389 -2214 CATHRYN D. REHER FAX (612) 389-5506 December 31, 1991 t YOUR I1 �FO��ti'�A � ��r� rnr�.1 a Mr. Tim Nelson r- Everest Group, Ltd. _ 2685 Long Lake Road P.O. Box 13292 =..� Roseville, Mn. 55113 C_ is 'c Re: Downtown Redevelopment Matter /Shopko Phase II Our File No. 3244 -91046 Dear Tim: • This is just a short note advising you that the asbestos assess- ment has been completed. Enclosed is a copy. The Elevator has advised us that the earliest they can be out of their building is June 1, at least officially (they hope to be done before that date). It looks like the targeted transfer date will need to be July 1, 1992 or thereabouts. I understand you will be reviewing the first draft of the Develop- ment Agreement and getting back to me early next week. The City Council will meet on January 14, 1992 and I would like to have the Agreement's final form by that date. Thank you. Very t� yours, c D,OW,ELL C 7 Anderson GBA:mb • cc: Paul Ackland John Bernhagen Gary D. Plotz Council Members 'CERTIFIED AS A CIVIL TRIAL SPECIALIST BY THE MINNESOTA STATE BAR ASSOCIATION "CERTIFIED AS A REAL PROPERTY LAW SPECIALIST BY THE MINNESOTA STATE BAR ASSOCLATION TO MAYOR AND CITY COUNCIL FROM HAZEL SITZ, TRANSIT COORDINATOR S RE HUTCHMOBILE SERVICE - NEW YEARS EVE AND THE YEAR 1991 M E M 0 R A N D U M FOR YOUR INFOR''IATION • • The Hutchmobile provided free service for 7 hours on New Years Eve (7 p.m. to 2 a.m.) as it has in past years. Ridership for the evening was the lowest ever, for a total of 22 passengers. New Years Eve history is shown: 1986 108 (first year) 1987 84 1988 69 1989 (no service - a Sunday evening) 1990 31 1991 22 By contrast, the year 1991 was the busiest in 10 years for the Hutchmobiles, with a total of 27,641 passengers. Only the year 1980 with its 'energy crisis' surpassed the year 1991. Attached for your information is selected survey data prepared by MN /DDT, based on State -wide on -board surveys conducted in 1991. I Please let me know if you have any comments or suggestions. Cit» Hell 3711'esll ngton A ucizzie I1'est (b12) 55,5151 Parks & Recreation 900 Herrington Strcct (612) 547 -2975 Police Dg171't117eut 10 Franklin Strect South (0 12) 5 -2232 Hutchinson, Afinnesota 55350 Printed on recwh-d piper - Minnesota On —Board Survey Abe Distribution s 41, a,,kt, ) 21.0 %) - 21 - 40 years old Under 21 i Over 90 years old (24.5 %) (34.4%) Gender Male (20.E _.4 %) 1. Female Annual Household Income $30,000 =$39,999 i m ver $40,000 520,000 - $ 29,999 6.9% 20.0 %) $10,000 - $19 Under $10,000 "L\ /D0T 11/22/91